[Congressional Record (Bound Edition), Volume 153 (2007), Part 10]
[Senate]
[Pages 14379-14388]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. REID (for himself, Mr. Allard, and Mr. Salazar):
  S. 1531. A bill to amend the Internal Revenue Code of 1986 to provide 
incentives and extend existing incentives for the production and use of 
renewable energy resources, and for other purposes; to the Committee on 
Finance.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1531

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

     SECTION 1. SHORT TITLE; REFERENCES, TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Clean 
     Renewable Energy and Economic Development Incentives Act of 
     2007''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; references, table of contents.

    TITLE I--TAX INCENTIVES FOR ENERGY CONSERVATION AND EXPLORATION

Sec. 101. Extension of renewable electricity production credit.
Sec. 102. Extension and modification of clean renewable energy bond 
              credit.
Sec. 103. Water conservation, reuse and efficiency bonds.
Sec. 104. Credit for geothermal exploration expenditures.
Sec. 105. Credit for wind energy systems.
Sec. 106. Extension and modification of new energy efficient home 
              credit.
Sec. 107. Investment tax credit for advanced battery production.
Sec. 108. Qualified renewable school energy bonds.
Sec. 109. Treatment of bonds issued to finance renewable energy 
              resource facilities.

 TITLE II--INVESTMENT TAX CREDIT WITH RESPECT TO SOLAR ENERGY PROPERTY 
                           AND MANUFACTURING

                   Subtitle A--Solar Energy Property

Sec. 201. Energy credit with respect to solar energy property.
Sec. 202. Repeal of exclusion for solar and geothermal public utility 
              property under energy credit.

[[Page 14380]]

Sec. 203. Permanent extension and modification of credit for 
              residential energy efficient property.
Sec. 204. 3-year accelerated depreciation period for solar energy 
              property.

   Subtitle B--Promotion of Solar Manufacturing in the United States

Sec. 211. Solar manufacturing credit.

    TITLE I--TAX INCENTIVES FOR ENERGY CONSERVATION AND EXPLORATION

     SEC. 101. EXTENSION OF RENEWABLE ELECTRICITY PRODUCTION 
                   CREDIT.

       (a) In General.--Paragraphs (1), (2), (3), (4), (5), (6), 
     (7), and (9) of section 45(d) (relating to qualified 
     facilities) are amended by striking ``January 1, 2009'' each 
     place it appears and inserting ``January 1, 2019''.
       (b) Deemed Placed-in-Service Date for Renewable Electricity 
     Facilities.--Section 45(e) (relating to definitions and 
     special rules) is amended by adding at the end the following 
     new paragraph:
       ``(12) Deemed placed-in-service date for certain 
     facilities.--
       ``(A) In general.--In the case of any facility described in 
     paragraph (1), (2), (3), (4) (respect to geothermal energy), 
     (5), (6), (7), or (9), for purposes of such paragraph, such 
     facility shall be treated as being placed in service before 
     January 1, 2019, if such facility is under construction 
     before such date and is producing and selling electricity 
     within 2 years after such date.
       ``(B) Period of credit.--If a facility is treated as placed 
     in service pursuant to subparagraph (A), the 10-year period 
     referred to in subsection (a) shall be treated as beginning 
     on January 1, 2019.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 102. EXTENSION AND MODIFICATION OF CLEAN RENEWABLE 
                   ENERGY BOND CREDIT.

       (a) Extension.--Subsection 54(m) (relating to termination) 
     is amended by striking ``2008'' and inserting ``2018''.
       (b) Annual Volume Cap for Bonds Issued During Extension 
     Period.--Paragraph (1) of subsection 54(f) (relating to 
     national limitation) is amended to read as follows:
       ``National limitation.--
       ``(A) Initial national limitation.--With respect to bonds 
     issued after December 31, 2005, and before January 1, 2009, 
     there is a national clean renewable energy bond limitation of 
     $1,200,000,000.
       ``(B) Annual national limitation.--With respect to bonds 
     issued after December 31, 2008, and before January 1, 2019, 
     there is a national clean renewable energy bond limitation 
     for each calendar year of $1,000,000,000.''.
       (c) Allocation by Secretary.--Paragraph (2) of subsection 
     54(f) (relating to allocation by Secretary) is amended by 
     striking ``, except that the Secretary'' and inserting ``, 
     except that, in the case of bonds issued under paragraph 
     (1)(A), the Secretary''.
       (d) Publicity Regarding Allocation of Clean Renewable 
     Energy Bonds.--
       (1) In general.--Section 54 is amended by redesignating 
     subsection (m) as subsection (n) and by inserting after 
     subsection (l) the following new subsection:
       ``(m) Publicity Regarding Allocation of Clean Renewable 
     Energy Bonds.--The Secretary shall prepare a report not later 
     than 1 year after each allocation under subsection (f) to 
     Congress, and make such report publicly available, which with 
     respect to such allocation identifies the name of each 
     applicant for such allocation, the name of the borrower (if 
     other than the applicant), the type and location of the 
     project that is the subject of such application, and the 
     amount of the allocation under subsection (f) for such 
     project in the event the project receives such an 
     allocation.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to applications for allocations made after the 
     date of the enactment of this Act.
       (e) Effective Date.--Except as otherwise provided, the 
     amendments made by this section shall apply to bonds issued 
     after December 31, 2007.

     SEC. 103. WATER CONSERVATION, REUSE AND EFFICIENCY BONDS.

       (a) In General.--Subpart H of part IV of subchapter A of 
     chapter 1 (relating to credits against tax) is amended by 
     adding at the end the following new section:

     ``SEC. 54A. CREDIT TO HOLDERS OF WATER CONSERVATION, REUSE 
                   AND EFFICIENCY BONDS.

       ``(a) Allowance of Credit.--If a taxpayer holds a water 
     conservation, reuse and efficiency bond on 1 or more credit 
     allowance dates of the bond occurring during any taxable 
     year, there shall be allowed as a credit against the tax 
     imposed by this chapter for the taxable year an amount equal 
     to the sum of the credits determined under subsection (b) 
     with respect to such dates.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a water conservation, reuse and efficiency bond is 
     25 percent of the annual credit determined with respect to 
     such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any water conservation, reuse and efficiency bond 
     is the product of--
       ``(A) the credit rate determined by the Secretary under 
     paragraph (3) for the day on which such bond was sold, 
     multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Determination.--For purposes of paragraph (2), with 
     respect to any water conservation, reuse and efficiency bond, 
     the Secretary shall determine daily or cause to be determined 
     daily a credit rate which shall apply to the first day on 
     which there is a binding, written contract for the sale or 
     exchange of the bond. The credit rate for any day is the 
     credit rate which the Secretary or the Secretary's designee 
     estimates will permit the issuance of water conservation, 
     reuse and efficiency bonds with a specified maturity or 
     redemption date without discount and without interest cost to 
     the qualified issuer.
       ``(4) Credit allowance date.--For purposes of this section, 
     the term `credit allowance date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.
     Such term also includes the last day on which the bond is 
     outstanding.
       ``(5) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed or matures.
       ``(c) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for any taxable year shall not 
     exceed the excess of--
       ``(1) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over,
       ``(2) the sum of the credits allowable under this part 
     (other than subpart C, section 1400N(l), and this section).
       ``(d) Water Conservation, Reuse and Efficiency Bond.--For 
     purposes of this section--
       ``(1) In general.--The term `water conservation, reuse and 
     efficiency bond' means any bond issued as part of an issue 
     if--
       ``(A) the bond is issued by a qualified issuer pursuant to 
     an allocation by the Secretary to such issuer of a portion of 
     the national water conservation, reuse and efficiency bond 
     limitation under subsection (f)(2),
       ``(B) 95 percent or more of the proceeds of such issue are 
     to be used for capital expenditures incurred by qualified 
     borrowers for 1 or more qualified projects,
       ``(C) the qualified issuer designates such bond for 
     purposes of this section and the bond is in registered form, 
     and
       ``(D) the issue meets the requirements of subsection (h).
       ``(2) Qualified project; special use rules.--
       ``(A) In general.--The term `qualified project' means any 
     rural water supply project (as defined in section 102(9) of 
     the Rural Water Supply Act of 2006), owned by a qualified 
     borrower, and which may include preparation and 
     implementation of water conservation plans, development and 
     deployment of water efficient products and processes, and 
     xeriscaping projects consistent with that section.
       ``(B) Refinancing rules.--For purposes of paragraph (1)(B), 
     a qualified project may be refinanced with proceeds of a 
     water conservation, reuse and efficiency bond only if the 
     indebtedness being refinanced (including any obligation 
     directly or indirectly refinanced by such indebtedness) was 
     originally incurred by a qualified borrower after the date of 
     the enactment of this section.
       ``(C) Reimbursement.--For purposes of paragraph (1)(B), a 
     water conservation, reuse and efficiency bond may be issued 
     to reimburse a qualified borrower for amounts paid after the 
     date of the enactment of this section with respect to a 
     qualified project, but only if--
       ``(i) prior to the payment of the original expenditure, the 
     qualified borrower declared its intent to reimburse such 
     expenditure with the proceeds of a water conservation, reuse 
     and efficiency bond,
       ``(ii) not later than 60 days after payment of the original 
     expenditure, the qualified issuer adopts an official intent 
     to reimburse the original expenditure with such proceeds, and
       ``(iii) the reimbursement is made not later than 18 months 
     after the date the original expenditure is paid.
       ``(D) Treatment of changes in use.--For purposes of 
     paragraph (1)(B), the proceeds of an issue shall not be 
     treated as used for a qualified project to the extent that a 
     qualified borrower or qualified issuer takes any action 
     within its control which causes such proceeds not to be used 
     for a qualified project. The Secretary shall prescribe 
     regulations specifying remedial actions that may be taken 
     (including conditions to taking such remedial actions) to 
     prevent an action described in the preceding sentence from 
     causing a bond to fail to be a water conservation, reuse and 
     efficiency bond.
       ``(e) Maturity Limitations.--

[[Page 14381]]

       ``(1) Duration of term.--A bond shall not be treated as a 
     water conservation, reuse and efficiency bond if the maturity 
     of such bond exceeds the maximum term determined by the 
     Secretary under paragraph (2) with respect to such bond.
       ``(2) Maximum term.--During each calendar month, the 
     Secretary shall determine the maximum term permitted under 
     this paragraph for bonds issued during the following calendar 
     month. Such maximum term shall be the term which the 
     Secretary estimates will result in the present value of the 
     obligation to repay the principal on the bond being equal to 
     50 percent of the face amount of such bond. Such present 
     value shall be determined without regard to the requirements 
     of subsection (l)(6) and using as a discount rate the average 
     annual interest rate of tax-exempt obligations having a term 
     of 10 years or more which are issued during the month. If the 
     term as so determined is not a multiple of a whole year, such 
     term shall be rounded to the next highest whole year.
       ``(f) Limitation on Amount of Bonds Designated.--
       ``(1) National limitation.--There is a national water 
     conservation, reuse and efficiency bond limitation of 
     $500,000,000 for each of the 10 calendar years beginning 
     after the date of enactment of this section.
       ``(2) Allocation by secretary.--The Secretary shall 
     allocate the amount described in paragraph (1) among 
     qualified projects in such manner as the Secretary determines 
     appropriate, except that the Secretary shall allocate the 
     bond limitation for the financing of qualified projects in as 
     geographically diverse a manner as practicable.
       ``(g) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)), and the amount so included shall be treated as interest 
     income.
       ``(h) Special Rules Relating to Expenditures.--
       ``(1) In general.--An issue shall be treated as meeting the 
     requirements of this subsection if, as of the date of 
     issuance, the qualified issuer reasonably expects--
       ``(A) at least 95 percent of the proceeds of such issue are 
     to be spent for 1 or more qualified projects within the 5-
     year period beginning on the date of issuance of the water 
     conservation, reuse and efficiency bond,
       ``(B) a binding commitment with a 3rd party to spend at 
     least 10 percent of the proceeds of such issue will be 
     incurred within the 6-month period beginning on the date of 
     issuance of the water conservation, reuse and efficiency bond 
     or, in the case of a water conservation, reuse and efficiency 
     bond the proceeds of which are to be loaned to 2 or more 
     qualified borrowers, such binding commitment will be incurred 
     within the 6-month period beginning on the date of the loan 
     of such proceeds to a qualified borrower, and
       ``(C) such projects will be completed with due diligence 
     and the proceeds of such issue will be spent with due 
     diligence.
       ``(2) Extension of period.--Upon submission of a request 
     prior to the expiration of the period described in paragraph 
     (1)(A), the Secretary may extend such period if the qualified 
     issuer establishes that the failure to satisfy the 5-year 
     requirement is due to reasonable cause and the related 
     projects will continue to proceed with due diligence.
       ``(3) Failure to spend required amount of bond proceeds 
     within 5 years.--To the extent that less than 95 percent of 
     the proceeds of such issue are expended by the close of the 
     5-year period beginning on the date of issuance (or if an 
     extension has been obtained under paragraph (2), by the close 
     of the extended period), the qualified issuer shall redeem 
     all of the nonqualified bonds within 90 days after the end of 
     such period. For purposes of this paragraph, the amount of 
     the nonqualified bonds required to be redeemed shall be 
     determined in the same manner as under section 142.
       ``(i) Special Rules Relating to Arbitrage.--A bond which is 
     part of an issue shall not be treated as a water 
     conservation, reuse and efficiency bond unless, with respect 
     to the issue of which the bond is a part, the qualified 
     issuer satisfies the arbitrage requirements of section 148 
     with respect to proceeds of the issue.
       ``(j) Municipal Water District; Qualified Water Systems Tax 
     Credit Bond Lender; Governmental Body; Qualified Borrower.--
     For purposes of this section--
       ``(1) Municipal water district.--The term `municipal water 
     district' shall mean a non-profit private or public entity 
     operated for the purpose of implementing rural water supply 
     projects (as defined in section 102(9) of the Rural Water 
     Supply Act of 2006).
       ``(2) Qualified water systems bond lender.--The term 
     `qualified water systems bond lender' means a lender which is 
     a municipal water district or a public water system which is 
     owned by a governmental body, and shall include any 
     affiliated entity which is controlled by such lender.
       ``(3) Governmental body.--The term `governmental body' 
     means any State, territory, or possession of the United 
     States, the District of Columbia, Indian tribal government, 
     and any political subdivision thereof.
       ``(4) Qualified issuer.--The term `qualified issuer' 
     means--
       ``(A) a qualified water systems bond lender,
       ``(B) a municipal water district, or
       ``(C) a governmental body.
       ``(5) Qualified borrower.--The term `qualified borrower' 
     means--
       ``(A) a municipal water district, or
       ``(B) a governmental body.
       ``(k) Special Rules Relating to Pool Bonds.--No portion of 
     a pooled financing bond may be allocable to any loan unless 
     the borrower has entered into a written loan commitment for 
     such portion prior to the issue date of such issue.
       ``(l) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Bond.--The term `bond' includes any obligation.
       ``(2) Pooled financing bond.--The term `pooled financing 
     bond' shall have the meaning given such term by section 
     149(f)(4)(A).
       ``(3) Partnership; s corporation; and other pass-thru 
     entities.--
       ``(A) In general.--Under regulations prescribed by the 
     Secretary, in the case of a partnership, trusts corporation, 
     or other pass-thru entity, rules similar to the rules of 
     section 41(g) shall apply with respect to the credit 
     allowable under subsection (a).
       ``(B) No basis adjustment.--In the case of a bond held by a 
     partnership or and corporation, rules similar to the rules 
     under section 1397E(i) shall apply.
       ``(4) Bonds held by regulated investment companies.--If any 
     water conservation, reuse and efficiency bond is held by a 
     regulated investment company, the credit determined under 
     subsection (a) shall be allowed to shareholders of such 
     company under procedures prescribed by the Secretary.
       ``(5) Ratable principal amortization required.--A bond 
     shall not be treated as a water conservation, reuse and 
     efficiency bond unless it is part of an issue which provides 
     for an equal amount of principal to be paid by the qualified 
     issuer during each calendar year that the issue is 
     outstanding.
       ``(6) Reporting.--Issuers of water conservation, reuse and 
     efficiency bonds shall submit reports similar to the reports 
     required under section 149(e).
       ``(m) Termination.--This section shall not apply with 
     respect to any bond issued after the tenth calendar year 
     beginning after the date of the enactment of this section.''.
       (b) Reporting.--Subsection (d) of section 6049 (relating to 
     returns regarding payments of interest) is amended by adding 
     at the end the following new paragraph:
       ``(9) Reporting of credit on water conservation, reuse and 
     efficiency bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54A(g) and such amounts shall be treated as paid on 
     the credit allowance date (as defined in section 54A(b)(4)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A), subsection (b)(4) shall be 
     applied without regard to subparagraphs (A), (H), (I), (J), 
     (K), and (L)(i) of such subsection.
       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''.
       (c) Conforming Amendment.--The table of sections for 
     subpart H of part IV of subchapter A of chapter 1 is amended 
     by adding at the end the following new item:

Sec. 54A. Credit to holders of water conservation, reuse and efficiency 
              bonds.
       (d) Issuance of Regulations.--The Secretary of the Treasury 
     shall issue regulations required under section 54A (as added 
     by this section) not later than 120 days after the date of 
     the enactment of this Act.
       (e) Report on Use of Bond Authority.--On April 1, 2008, and 
     annually thereafter, the Secretary of Treasury shall submit a 
     report to Congress including the number of applications for 
     bonding authority received, granted and identifying the 
     purposes and expected effects of projects supported by the 
     bonding authority in the previous calendar year.
       (f) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after December 31, 2007.

     SEC. 104. CREDIT FOR GEOTHERMAL EXPLORATION EXPENDITURES.

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

     ``SEC. 45O. CREDIT FOR GEOTHERMAL EXPLORATION EXPENDITURES.

       ``(a) In General.--For purposes of section 38, the 
     geothermal exploration expenditures credit for any taxable 
     year is an amount equal to 10 percent of the qualifying 
     geothermal exploration expenditures paid or incurred by the 
     taxpayer during such taxable year.
       ``(b) Qualifying Geothermal Exploration Expenditures.--For 
     purposes of this section--
       ``(1) In general.--The term `qualifying geothermal 
     exploration expenditures' means expenditures for drilling 
     exploratory wells for geothermal deposits (as defined by 
     section 613(e)(2)).
       ``(2) Exception.--Such term shall not include expenditures 
     for any equipment used

[[Page 14382]]

     to produce, distribute, or use energy derived from a 
     geothermal deposit (as so defined) for which a credit is 
     allowable under section 46 by reason of section 48.
       ``(c) Special Rules.--
       ``(1) Basis reduction.--For purposes of this subtitle, the 
     basis of any property for which a credit is allowed under 
     this section shall be reduced by the amount of the credit so 
     allowed.
       ``(2) Denial of double benefit.--No deduction or credit 
     (other than under section 45) shall be allowed under this 
     subtitle with respect to any expenditures for which a credit 
     is allowed under this section.''.
       (b) Credit Made Part of General Business Credit.--Section 
     38(b) (relating to current year business credit) is amended 
     by striking ``plus'' at the end of paragraph (30), by 
     striking the period at the end of paragraph (31) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(32) the geothermal exploration expenditures credit 
     determined under section 45O(a).''.
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 45N the 
     following new item:

``Sec. 45O. Credit for geothermal exploration expenditures.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to expenditures made in taxable years beginning 
     after the date of the enactment of this Act.

     SEC. 105. CREDIT FOR WIND ENERGY SYSTEMS.

       (a) Residential.--
       (1) In general.--Section 25D(a) is amended by striking 
     ``and'' at the end of paragraph (2), by striking the period 
     at the end of paragraph (3) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(4) 30 percent of the qualified small wind energy 
     property expenditures made by the taxpayer during such 
     year.''.
       (2) Limitation.--Section 25D(b)(1) is amended by striking 
     ``and'' at the end of subparagraph (B), by striking the 
     period at the end of subparagraph (A) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(D) $500 with respect to each half kilowatt of capacity 
     (not to exceed $5,000) of qualifying wind turbines for which 
     qualified small wind energy property expenditures are 
     made.''.
       (3) Qualified small wind energy property expenditures.--
     Section 25D(d) is amended by adding at the end the following 
     new paragraph:
       ``(4) Qualified small wind energy property expenditure.--
       ``(A) In general.--The term `qualified wind energy property 
     expenditure' means an expenditure for property which uses a 
     qualifying wind turbine to generate electricity for use in 
     connection with a dwelling unit located in the United States 
     and used as a residence by the taxpayer.
       ``(B) Qualifying wind turbine.--The term `qualifying wind 
     turbine' means a wind turbine of 100 kilowatts of rated 
     capacity or less which meets the latest performance rating 
     standards published by the American Wind Energy Association 
     and which is used to generate electricity and carries at 
     least a 5-year limited warranty covering defects in design, 
     material, or workmanship, and, for property that is not 
     installed by the taxpayer, at least a 5-year limited warranty 
     covering defects in installation.''.
       (b) Business.--Section 48(a)(3)(A) (defining energy 
     property) is amended by striking ``or'' at the end of clause 
     (iii), by adding ``or'' at the end of clause (iv), and by 
     inserting after clause (iv) the following new clause:
       ``(v) qualifying wind turbine (as defined in section 
     25D(d)(B)),''.
       (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. 106. EXTENSION AND MODIFICATION OF NEW ENERGY EFFICIENT 
                   HOME CREDIT.

       (a) Extension.--Subsection (g) of section 45L (relating to 
     termination) is amended by striking ``2008'' and inserting 
     ``2013''.
       (b) Increase of Credit.--Paragraph (2) of subsection 45L(a) 
     (relating to applicable amount) is amended to read as 
     follows:
       ``(2) Applicable amount.--For purposes of paragraph (1), 
     the applicable amount is an amount equal to, in the case of a 
     dwelling unit described in--
       ``(A) subsection (c)(1), $4,000,
       ``(B) subsection (c)(2), $2,000, and
       ``(C) subsection (c)(3), $1,000.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to qualified new energy efficient homes acquired 
     after the date of the enactment of this Act, in taxable years 
     ending after such date.

     SEC. 107. INVESTMENT TAX CREDIT FOR ADVANCED BATTERY 
                   PRODUCTION.

       (a) In General.--Section 48(a)(3)(A) is amended--
       (1) by striking ``or'' at the end of clause (iii),
       (2) by inserting ``or'' at the end of clause (iv), and
       (3) by inserting after clause (iv) the following new 
     clause:
       ``(v) equipment used to produce at least 75 percent of any 
     advanced battery and related power electronics intended for 
     use in--

       ``(I) any qualified electric vehicle (as defined in section 
     30(c)(1)(A)) or new qualified hybrid motor vehicle (as 
     defined in section 30B(d)(3)(A), without regard to clauses 
     (v) and (vi) thereof), or
       ``(II) any grid-enabled or distributed residential or small 
     commercial application,''.

       (b) Rate of Energy Percentage.--Section 48(a)(2)(A) is 
     amended--
       (1) by striking ``and'' at the end of clause (i)(III),
       (2) by striking ``clause (i)'' in clause (ii) and inserting 
     ``clause (i) or clause (ii)'',
       (3) by redesignating clause (ii) as clause (iii), and
       (4) by inserting after clause (i) the following new clause:
       ``(ii) 20 percent in the case of energy property described 
     in paragraph (3)(A)(v), and''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 108. QUALIFIED RENEWABLE SCHOOL ENERGY BONDS.

       (a) In General.--Subchapter U of chapter 1 (relating to 
     incentives for education zones) is amended by redesignating 
     section 1397F as section 1397G and by adding at the end of 
     part IV of such subchapter the following new section:

     ``SEC. 1397F. QUALIFIED RENEWABLE SCHOOL ENERGY BONDS.

       ``(a) Allowance of Credit.--If a taxpayer holds a qualified 
     renewable school energy bond on 1 or more credit allowance 
     dates of the bond occurring during any taxable year, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to the sum of 
     the credits determined under subsection (b) with respect to 
     such dates.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a qualified renewable school energy bond is 25 
     percent of the annual credit determined with respect to such 
     bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any qualified renewable school energy bond is the 
     product of--
       ``(A) the credit rate determined by the Secretary under 
     paragraph (3) for the day on which such bond was sold, 
     multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Determination.--For purposes of paragraph (2), with 
     respect to any qualified renewable school energy bond, the 
     Secretary shall determine daily or cause to be determined 
     daily a credit rate which shall apply to the first day on 
     which there is a binding, written contract for the sale or 
     exchange of the bond. The credit rate for any day is the 
     credit rate which the Secretary or the Secretary's designee 
     estimates will permit the issuance of qualified renewable 
     school energy bonds with a specified maturity or redemption 
     date without discount and without interest cost to the 
     qualified issuer.
       ``(4) Credit allowance date.--For purposes of this section, 
     the term `credit allowance date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.
     Such term also includes the last day on which the bond is 
     outstanding.
       ``(5) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed or matures.
       ``(c) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for any taxable year shall not 
     exceed the excess of--
       ``(1) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(2) the sum of the credits allowable under part IV of 
     subchapter A (other than subpart C thereof, relating to 
     refundable credits, subpart H thereof, section 1400N(l), and 
     this section).
       ``(d) Qualified Renewable School Energy Bond.--For purposes 
     of this section--
       ``(1) In general.--The term `renewable school energy bond' 
     means any bond issued as part of an issue if--
       ``(A) 95 percent or more of the proceeds of such issue are 
     to be used for a qualified purpose with respect to a 
     qualified school operated by an eligible local education 
     agency,
       ``(B) the bond is issued by a State or local government of 
     an eligible State within the jurisdiction of which such 
     school is located,
       ``(C) the issuer--
       ``(i) designates such bond for purposes of this section, 
     and
       ``(ii) certifies that it has the written approval of the 
     eligible local education agency for such bond issuance, and
       ``(D) the term of each bond which is part of such issue is 
     20 years.

[[Page 14383]]

       ``(2) Qualified school.--The term `qualified school' means 
     any public school or public school system administrative 
     building which is owned by or operated by an eligible local 
     education agency.
       ``(3) Eligible local education agency.--The term `eligible 
     local education agency' means any local educational agency as 
     defined in section 9101 of the Elementary and Secondary 
     Education Act of 1965.
       ``(4) Eligible state.--The term `eligible State' means, 
     with respect to any calendar year, any State described in one 
     of the following:
       ``(A) The 5 States within Region 4 of the United States 
     Census with the greatest percentage population growth change 
     between 2000 and 2006 as determined under the Cumulative 
     Estimates of Population Change for the United States and 
     States, and for Puerto Rico--April 1, 2000 to July 1, 2006, 
     by the Bureau of the Census.
       ``(B) The State with a total percentage population growth 
     change between 2000 and 2006 greater than 4.5 percent but 
     less than 5.0 percent and a total population 19 years of age 
     and younger which is greater than 200,000 but less than 
     250,000 as determined under such Cumulative Estimates and the 
     2005 American Community Survey by the Bureau of the Census.
       ``(5) Qualified purpose.--The term `qualified purpose' 
     means, with respect to any qualified school, the purchase and 
     installation of renewable energy products.
       ``(e) Limitation on Amount of Bonds Designated.--
       ``(1) National limitation.--There is a national renewable 
     school energy bond limitation for each calendar year. Such 
     limitation is $50,000,000 for 2008, $100,000,000 for 2009, 
     $150,000,000 for 2010, and, except as provided in paragraph 
     (4), zero thereafter.
       ``(2) Allocation of limitation.--The national renewable 
     school energy bond limitation for a calendar year shall be 
     allocated by the Secretary--
       ``(A) among the eligible States described in subsection 
     (d)(4)(A), 30 percent to the State with the greatest 
     percentage population growth, 20 percent to each of second 
     and third ranked States, and 10 percent to each of the fourth 
     and fifth ranked States, and
       ``(B) to the State described in subsection (d)(4)(B), 10 
     percent.

     The limitation amount allocated to an eligible State under 
     the preceding sentence shall be allocated by the State 
     education agency to qualified schools within such State.
       ``(3) Designation subject to limitation amount.--The 
     maximum aggregate face amount of bonds issued during any 
     calendar year which may be designated under subsection (d)(1) 
     with respect to any qualified school shall not exceed the 
     limitation amount allocated to such school under paragraph 
     (2) for such calendar year.
       ``(4) Carryover of unused limitation.--If for any calendar 
     year--
       ``(A) the limitation amount for any eligible State, exceeds
       ``(B) the amount of bonds issued during such year which are 
     designated under subsection (d)(1) with respect to qualified 
     schools within such State,

     the limitation amount for such State for the following 
     calendar year shall be increased by the amount of such 
     excess. Any carryforward of a limitation amount may be 
     carried only to the first 2 years following the unused 
     limitation year. For purposes of the preceding sentence, a 
     limitation amount shall be treated as used on a first-in 
     first-out basis.
       ``(f) Other Definitions.--For purposes of this section--
       ``(1) Bond.--The term `bond' includes any obligation.
       ``(2) State.--The term `State' includes the District of 
     Columbia and any possession of the United States.
       ``(g) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)).
       ``(h) Credits May Be Stripped.--Under regulations 
     prescribed by the Secretary--
       ``(1) In general.--There may be a separation (including at 
     issuance) of the ownership of a qualified renewable school 
     energy bond and the entitlement to the credit under this 
     section with respect to such bond. In case of any such 
     separation, the credit under this section shall be allowed to 
     the person which, on the credit allowance date, holds the 
     instrument evidencing the entitlement to the credit and not 
     to the holder of the bond.
       ``(2) Certain rules to apply.--In the case of a separation 
     described in paragraph (1), the rules of section 1286 shall 
     apply to the qualified renewable school energy bond as if it 
     were a stripped bond and to the credit under this section as 
     if it were a stripped coupon.
       ``(i) Credit Treated as Nonrefundable Bondholder Credit.--
     For purposes of this title, the credit allowed by this 
     section shall be treated as a credit allowable under subpart 
     H of part IV of subchapter A of this chapter.
       ``(j) Special Rules.--For purposes of this section, rules 
     similar to the rules under paragraphs (3) and (4) of section 
     54(l) shall apply.''.
       (b) Conforming Amendments.--The table of sections for part 
     V of such subchapter is amended by redesignating section 
     1397F as section 1397G and by adding at the end of the table 
     of sections for part IV of such subchapter the following new 
     item:

``Sec. 1397F. Credit for holders of qualified renewable school energy 
              bonds.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after December 31, 2007.

     SEC. 109. TREATMENT OF BONDS ISSUED TO FINANCE RENEWABLE 
                   ENERGY RESOURCE FACILITIES.

       (a) In General.--Subsection (a) of section 142 (relating to 
     exempt facility bond) is amended--
       (1) by striking ``or'' at the end of paragraph (14),
       (2) by striking the period at the end of paragraph (15) and 
     inserting ``, or'', and
       (3) by inserting at the end the following new paragraph:
       ``(16) renewable energy resource facilities.''.
       (b) Definition.--Section 142 is amended by inserting at the 
     end the following new subsection:
       ``(n) Renewable Energy Resource Facilities.--For purposes 
     of subsection (a)(16)--
       ``(1) In general.--The term `renewable energy resource 
     facility' means any facility used to produce electric or 
     thermal energy (including a distributed generation facility) 
     from--
       ``(A) wind energy,
       ``(B) closed-loop biomass (within the meaning of section 
     45(c(2)),
       ``(C) open-loop biomass (as defined in section 45(c)(3),
       ``(D) geothermal energy (as defined in section 45(c)(4),
       ``(E) solar energy,
       ``(F) land fill gas derived from the biodegradation of 
     municipal solid waste (as defined in section 45(c)(6),
       ``(G) incremental hydropower production (as determined 
     under section 45(c)(8)(B), or
       ``(H) ocean energy.
       ``(2) Ocean energy.--The term `ocean energy' includes 
     current, wave, tidal, and thermal energy.''.
       (c) Coordination With Section 45.--Section 45(b)(3) is 
     amended by adding at the end the following new sentence: 
     ``For purposes of this paragraph, proceeds of an issue used 
     to provide financing for any qualified facility by reason of 
     section 142(a)(16) shall not be taken into account under 
     subparagraph (A)(ii).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to bonds issued on or after the date 
     of the enactment of this Act.

 TITLE II--INVESTMENT TAX CREDIT WITH RESPECT TO SOLAR ENERGY PROPERTY 
                           AND MANUFACTURING

                   Subtitle A--Solar Energy Property

     SEC. 201. ENERGY CREDIT WITH RESPECT TO SOLAR ENERGY 
                   PROPERTY.

       (a) Permanent Extension of Credit for Solar Energy 
     Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 
     48(a) (relating to the energy credit) are each amended by 
     striking ``but only with respect to periods ending before 
     January 1, 2009''.
       (b) Energy Property to Include Excess Energy Storage 
     Device.--Clause (i) of section 48(a)(3)(A) (relating to 
     energy property) is amended to read as follows:
       ``(i) equipment which uses solar energy to generate 
     electricity, to heat or cool (or provide hot water for use 
     in) a structure, or to provide solar process heat, or 
     advanced energy storage systems installed as an integrated 
     component of the foregoing, excepting property used to 
     generate energy for purposes of heating a swimming pool,''.
       (c) Additional Modifications.--
       (1) Solar electric energy property credit determined solely 
     by kilowatt capacity.--
       (A) In general.--Subsection (a) of section 48 (relating to 
     the energy credit) is amended by redesignating paragraph (4) 
     as paragraph (5) and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) Special rule for energy credit for solar electric 
     energy property.--
       ``(A) In general.--For purposes of section 46, the energy 
     credit for any taxable year for solar electric energy 
     property described in paragraph (3)(A)(i) which is used to 
     generate electricity and which is placed in service during 
     the taxable year is $1,500 with respect to each half kilowatt 
     of direct current of installed capacity of such property. 
     Paragraph (2)(A) shall not apply to property to which the 
     preceding sentence applies.
       ``(B) Application of special rules for rehabilitated or 
     subsidized property.--Rules similar to the rules of 
     paragraphs (2)(B) and (5) shall apply to property to which 
     this paragraph applies.''.
       (B) Conforming amendments.--Subsection (a) of section 48 is 
     amended--
       (i) in paragraph (1), by inserting ``in paragraph (4) and'' 
     after ``except as provided'', and
       (ii) in paragraph (2)(A)(i)(II), by striking ``described in 
     paragraph (3)(A)(i)'' and inserting ``which is described in 
     paragraph (3)(A)(i) and to which paragraph (4) does not 
     apply''.
       (d) Credit Allowed Against the Alternative Minimum Tax.--
     Section 38(c)(4)(B) (relating to specified credits) is 
     amended by--

[[Page 14384]]

       (1) striking ``and'' at the end of clause (i),
       (2) striking the period at the end of clause (ii)(II) and 
     inserting ``, and'', and
       (3) adding at the end the following new clause:
       ``(iii) the portion of the investment credit under section 
     46(2) which is determined under clauses (i) and (ii) of 
     section 48(a)(3)(A).''.
       (e) Effective Date.--The amendment made by subsection (a) 
     shall apply to periods after December 31, 2007, in taxable 
     years beginning after such date, under rules similar to the 
     rules of section 48(m) (as in effect on the day before the 
     date of the enactment of the Revenue Reconciliation Act of 
     1990).

     SEC. 202. REPEAL OF EXCLUSION FOR SOLAR AND GEOTHERMAL PUBLIC 
                   UTILITY PROPERTY UNDER ENERGY CREDIT.

       (a) In General.--The second sentence of section 48(a)(3) is 
     amended by inserting ``(other than property described in 
     clause (i) or (iii) of subparagraph (A))'' after ``any 
     property''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to periods after December 31, 2007, in taxable 
     years beginning after such date, under rules similar to the 
     rules of section 48(m) (as in effect on the day before the 
     date of the enactment of the Revenue Reconciliation Act of 
     1990).

     SEC. 203. PERMANENT EXTENSION AND MODIFICATION OF CREDIT FOR 
                   RESIDENTIAL ENERGY EFFICIENT PROPERTY.

       (a) Permanent Extension.--Section 25D is amended by 
     striking subsection (g) (relating to termination).
       (b) Solar Electric Property.--Paragraph (1) of section 
     25D(a) (relating to allowance of credit) is amended by 
     striking ``30 percent of''.
       (c) Modification of Maximum Credit.--Paragraph (1) of 
     section 25D(b) (relating to limitations) is amended to read 
     as follows:
       ``(1) Maximum credit.--The credit allowed under subsection 
     (a) (determined without regard to subsection (c)) for any 
     taxable year shall not exceed--
       ``(A) $1,500 with respect to each half kilowatt of direct 
     current of installed capacity of qualified solar electric 
     property for which qualified solar electric property 
     expenditures are made,
       ``(B) $2,000 with respect to any qualified solar heating 
     and cooling 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.''.
       (d) Definition of Qualified Solar Heating and Cooling 
     Property Expenditure.--
       (1) In general.--Paragraph (1) of section 25D(d) (relating 
     to definitions) is amended to read as follows:
       ``(2) Qualified solar heating and cooling property 
     expenditure.--The term `qualified solar heating and cooling 
     property expenditure' means an expenditure for property to 
     heat or cool (or provide hot water for use in) a dwelling 
     unit located in the United States and used as a residence by 
     the taxpayer if at least half of the energy used by such 
     property for such purpose is derived from the sun. Such term 
     shall not include an expenditure which is a qualified solar 
     electric property expenditure.''.
       (2) Conforming amendments.--Section 25D (relating to 
     residential energy efficient property) is amended--
       (A) by striking ``solar water heating'' in subsections 
     (a)(2) and (e)(4)(A)(ii) and inserting ``solar heating and 
     cooling'', and
       (B) by striking the heading for subsection (b)(2) and 
     inserting the following new heading: ``(2) Certification of 
     solar heating and cooling property.''.
       (e) Credit Allowed Against Alternative Minimum Tax.--
       (1) In general.--Section 25D(b) (relating to limitations), 
     as amended by subsection (c), 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 (other than this section) and section 
     27 for the taxable year.''.
       (2) Conforming amendments.--
       (A) Subsection (c) of section 25D (relating to carryforward 
     of unused credit) 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.''.
       (B) Section 23(b)(4)(B) (relating to limitation based on 
     amount of tax) is amended by inserting ``and section 25D'' 
     after ``this section''.
       (C) Section 24(b)(3)(B) (relating to limitation based on 
     amount of tax) is amended by striking ``sections 23 and 25B'' 
     and inserting ``sections 23, 25B, and 25D''.
       (D) Section 26(a)(1) (relating to limitation based on 
     amount of tax) is amended by striking ``and 25B'' and 
     inserting ``25B, and 25D''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to expenditures made in taxable years beginning 
     after December 31, 2007.

     SEC. 204. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR SOLAR 
                   ENERGY PROPERTY.

       (a) In General.--Subparagraph (A) of section 168(e)(3) 
     (relating to 3-year property) is amended--
       (1) by striking ``and'' at the end of clause (ii),
       (2) by striking the period at the end of clause (iii) and 
     inserting a comma, and
       (3) by inserting after clause (iii) the following new 
     clauses:
       ``(iv) any property which is described in clause (i) or 
     (ii) of section 48(a)(3)(A) (or would be so described if the 
     last sentence of such section did not apply to such clause), 
     and
       ``(v) any property which is described in clause (iv) of 
     section 48(a)(3)(A).''.
       (b) Conforming Amendment.--Subclause (I) of section 
     168(e)(3)(B)(vi) (relating to 5-year property) is amended to 
     read as follows:

       ``(I) would be described in subparagraph (A) of section 
     48(a)(3) if `wind energy' were substituted for `solar energy' 
     in clause (i) thereof and the last sentence of such section 
     did not apply to such subparagraph,''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2007.

   Subtitle B--Promotion of Solar Manufacturing in the United States

     SEC. 211. SOLAR MANUFACTURING CREDIT.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter 1 (relating to rules for computing investment credit) 
     is amended by inserting after section 48B the following new 
     section:

     ``SEC. 48C. SOLAR MANUFACTURING CREDIT.

       ``(a) Credit Allowed.--For purposes of section 46, the 
     solar manufacturing credit for any taxable year is an amount 
     equal to 30 percent of the qualified investment for such 
     taxable year.
       ``(b) Qualified Investment.--For purposes of this section--
       ``(1) In general.--The qualified investment for any taxable 
     year is equal to the incremental costs incurred during such 
     taxable year to re-equip, expand, or establish an eligible 
     manufacturing facility--
       ``(A) to produce polysilicon for use in solar cells, wafers 
     manufactured for solar cells, and solar photovoltaic cells,
       ``(B) to produce or assemble solar photovoltaic modules,
       ``(C) to produce or assemble solar thermal panels and solar 
     thermal storage tanks, or
       ``(D) to produce concentrated solar power equipment.
       ``(2) Exceptions.--The qualified investment for any taxable 
     year shall not include--
       ``(A) assets utilized to produce the materials consumed in 
     the production of solar photovoltaic modules, such as 
     aluminum extrusions, glass, encapsulants, inverters, and 
     mounting hardware, and
       ``(B) assets utilized to produce the materials consumed in 
     the production of solar thermal panels, such as aluminum 
     extrusions, glass, copper, and mounting hardware.
       ``(3) Certain qualified progress expenditures made 
     applicable.--Rules similar to the rules of subsections (c)(4) 
     and (d) of section 46 (as in effect on the day before the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of this section.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Eligible manufacturing facility.--The term `eligible 
     manufacturing facility' means any manufacturing facility for 
     which more than 50 percent of the gross receipts for the 
     taxable year are derived from sales of solar equipment.
       ``(2) Solar photovoltaic cell.--The term `solar 
     photovoltaic cell' means the semiconductor device which 
     converts photons from light into electricity.
       ``(3) Solar photovoltaic module.--The term `solar 
     photovoltaic module' means an assembly of multiple 
     interconnected solar photovoltaic cells that are sized and 
     packaged for installation and deployment in a specific 
     application.''.
       (b) Credit Treated as Part of Investment Credit.--Section 
     46 (relating to amount of credit) is amended by striking 
     ``and'' at the end of paragraph (3), by striking the period 
     at the end of paragraph (4) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(5) the solar manufacturing credit.''.
       (c) Certain Nonrecourse Financing Excluded From Credit 
     Base.--Section 49(a)(1)(C) (defining credit base) 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) the basis of any property which is part of the solar 
     manufacturing credit under section 48C.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2007, in taxable 
     years beginning after such date, under rules similar to the 
     rules of section 48(m) (as in effect on the day before the 
     date of the enactment of the Revenue Reconciliation Act of 
     1990).

[[Page 14385]]


                                 ______
                                 
      By Mrs. FEINSTEIN:
  S. 1536. A bill for the relief of Jose Alberto Martinez Moreno, 
Micaela Lopez Martinez, and Adilene Martinez; to the Committee on the 
Judiciary.
  Mrs. FEINSTEIN. Mr. President, today I offer private immigration 
relief legislation to provide lawful permanent residence status to Jose 
Alberto Martinez Moreno and Micaela Lopez Martinez and their daughter, 
Adilene Martinez; Mexican nationals now living in San Francisco, 
California.
  This family embodies the true American success story and I believe 
they merit Congress' special consideration for such an extraordinary 
form of relief as a private bill.
  Mr. Martinez came to the United States 20 years ago from Mexico. He 
started working as a busboy in restaurants in San Francisco. In 1990, 
he began working as a cook at Palio D'Asti, an award winning Italian 
restaurant in San Francisco.
  According to the people who worked with him, he ``never made 
mistakes, never lost his temper, and never seemed to sweat.''
  Over the past 20 years, Jose Martinez has worked his way through the 
ranks. Today, he is the sous chef at Palio, where he is respected by 
everyone in the restaurant, from dishwashers to cooks, busboys to 
waiters, bartenders to managers.
  Mr. Martinez has unique skills: he is an excellent chef; he is 
bilingual; he is a leader in the workplace. He is described as ``an 
exemplary employee'' who is not only ``good at his job, but is also a 
great boss to his subordinates.''
  He and his wife, Micaela, have made a home in San Francisco. Micaela 
has been working as a housekeeper. They have three daughters, two of 
whom are United States citizens. Their oldest child Adilene, 19, is 
undocumented. Adilene recently graduated from the Immaculate Conception 
Academy and hopes to attend college.
  One of the most compelling reasons for allowing the family to remain 
in the United States is that they are eligible for a green card. 
Unfortunately, there is such a backlog for green cards right now that 
even though he has a work permit, owns a home in San Francisco, works 
two jobs, and has been in the United States for 20 years with a clean 
record, he and his family will be deported.
  Mr. Martinez and his family have applied unsuccessfully for legal 
status several ways:
  In 2000, Mr. and Mrs. Martinez filed for political asylum. Their case 
was denied and a subsequent application for a Cancellation of Removal 
was also denied because the immigration court judge could not find 
``requisite hardship'' required for this relief.
  Ironically, the immigration judge who reviewed their case found that 
Mr. Martinez's culinary ability was a negative factor, as it indicated 
that he could find a job in Mexico.
  In 2001, his sister, who has legal status, petitioned for Mr. 
Martinez to get a green card. Unfortunately, because of the current 
green card backlog, Mr. Martinez has several years to wait before he is 
eligible for a green card.
  Finally, Daniel Scherotter, the executive chef and owner of Palio 
D'Asti, has petitioned for legal status for Mr. Martinez based on Mr. 
Martinez's unique skills as a chef. Although Mr. Martinez's work 
petition was approved by U.S. Citizenship and Immigration Services, 
there is a backlog on these visas, and Mr. Martinez is on a waiting 
list for a green card through this channel, as well.
  Mr. and Mrs. Martinez have no other administrative options available 
to them at this point and if deported, they will face a 5- to 10-year 
ban from returning to the United States.
  The Martinez family has become an important and valued part of their 
community. They are active members of their church, their children's 
school, and Comite de Padres Unido, a grassroots immigrant organization 
in California.
  They volunteer extensively, advocating for safe new parks in the 
community for the children, volunteering at their children's school, 
and working on a voter registration campaign, even though they are 
unable to vote themselves.
  In fact, I have received 46 letters of support from teachers, church 
members, and members of their community who attest to their honesty, 
responsibility, and long-standing commitment to their community. Their 
supporters include San Francisco Mayor Gavin Newsom; former Mayor 
Willie Brown; President of the San Francisco Board of Supervisors, 
Aaron Peskin; and the Director of Immigration Policy at the Immigrant 
Legal Resource Center, Mark Silverman.
  This family has truly embraced the American dream. I believe their 
continued presence in our country would do so much to enhance the 
values we hold dear. Enactment of the legislation I have introduced 
today will enable the Martinez family to continue to make significant 
contributions to their community as well as the United States.
  I ask my colleagues to support this private bill.
  I ask unanimous consent that my statement, the letters of community 
support, and the text of the bill be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1536

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

     SECTION 1. ADJUSTMENT OF STATUS.

       (a) In General.--Notwithstanding any other provision of 
     law, for the purposes of the Immigration and Nationality Act 
     (8 U.S.C. 1101 et seq.), Jose Alberto Martinez Moreno, 
     Micaela Lopez Martinez, and Adilene Martinez shall each be 
     deemed to have been lawfully admitted to, and remained in, 
     the United States, and shall be eligible for adjustment of 
     status to that of an alien lawfully admitted for permanent 
     residence under section 245 of the Immigration and 
     Nationality Act (8 U.S.C. 1255) upon filing an application 
     for such adjustment of status.
       (b) Application and Payment of Fees.--Subsection (a) shall 
     apply only if the application for adjustment of status is 
     filed with appropriate fees not later than 2 years after the 
     date of the enactment of this Act.
       (c) Reduction of Immigrant Visa Numbers.--Upon the granting 
     of permanent resident status to Jose Alberto Martinez Moreno, 
     Micaela Lopez Martinez, and Adilene Martinez, the Secretary 
     of State shall instruct the proper officer to reduce by 3, 
     during the current or subsequent fiscal year, the total 
     number of immigrant visas that are made available to natives 
     of the country of the birth of Jose Alberto Martinez Moreno, 
     Micaela Lopez Martinez, and Adilene Martinez under section 
     202(e) or 203(a) of the Immigration and Nationality Act (8 
     U.S.C. 1152(e), 1153(a)), as applicable.

                                              Office of the Mayor,


                             City and County of San Francisco,

                                                   April 20, 2007.
     Hon. Diane Feinstein,
     U.S. Senator,
     San Francisco, CA.
       Dear Senator Feinstein: I write to express my unequivocal 
     support for your efforts to assist Jose Alberto Martinez and 
     his family regarding immigration challenges that they 
     currently face.
       As you know, Mr. Martinez is a key employee of the highly 
     regarded Palio d'Asti Restaurant here in San Francisco. His 
     current occupation as a Sous Chef at Palio d'Asti is part of 
     a career that spans 20 years in the San Francisco restaurant 
     industry. Mr. Martinez is a San Francisco homeowner with a 
     wife and three children. By all accounts he is a model 
     resident and contributing community member. He exemplifies 
     the hardworking immigrant communities that have made San 
     Francisco what it is over the last 150-plus years.
       I understand that despite Mr. Martinez's sponsorship 
     through the PERM program, and his history as a law-abiding 
     taxpayer in our community, he and his wife face a deportation 
     order. I believe that this order not only threatens the 
     future of his family, but negatively impacts our local 
     restaurant industry and Mexican-American community. I 
     therefore thank you for your efforts to what you can to help 
     allow Mr. Martinez and his family to remain in San Francisco, 
     working hard to achieve the American dream while contributing 
     to our community.
       Should you have any questions about this letter, please 
     contact my Director of Government Affairs, Wade Crowfoot at 
     415-554-6640.
           Sincerely,
     Gavin Newsom.
                                  ____



                                            San Francisco, CA,

                                                   Apri1 19, 2007.
     Hon. Diane Feinstein,
     U.S. Senator,
     San Francisco, CA.
       Dear Senator Feinstein: I write to you to voice my support 
     for Jose Alberto Martinez, Sous Chef of the well established 
     Palio d'Asti Restaurant. Like thousands of San Franciscans 
     and visitors to San Francisco, I have

[[Page 14386]]

     eaten food he has prepared for the last 20 years, Jose has 
     supported the top Chefs, and fed hundreds of thousands of 
     diners, in San Francisco primarily at Stars and Palio d'Asti 
     (though also at the Orchard and Omni hotels) and has 
     maintained a spotless record. Jose runs the kitchen with an 
     even-hand and touch of class. Jose is also a San Francisco 
     homeowner with his wife and their three children.
       Jose's boss, Daniel Scherotter, Palio's longtime chef and 
     Gianni Fassio, the former owner of Palio, have alerted me 
     that this pillar of the restaurant community is facing an 
     imminent deportation order.
       Fassio and Scherotter worked with Jose through the PERM 
     Program to get him a work visa, proving that Jose was an 
     integral, irreplaceable part of their business. I would 
     maintain that Jose is exactly the kind of hardworking 
     immigrant that has always been the bedrock of San Francisco 
     and its restaurant community. Please, I urge you to do 
     anything in your power to help keep Jose and his family 
     together here in San Francisco. Please intervene on Jose's 
     behalf in order to let him stay in line for a green card and 
     not be deported.
           Sincerely,
     Willie L. Brown, Jr.
                                  ____

                                             Board of Supervisors,


                             City and County of San Francisco,

                                    San Francisco, April 18, 2007.
     Hon. Dianne Feinstein,
     U.S. Senator,
     San Francisco, CA.
       Dear Senator Feinstein: I am writing in support of Jose 
     Alberto Martinez, the longtime Sous Chef of Palio d'Asti 
     Restaurant, one of the largest and best known restaurants in 
     my district. Palio has been an exemplary restaurant, both 
     under previous owner Gianni Fassio, and under the chef who 
     eventually bought him out, Daniel Scheratter. Jose makes it 
     possible for Mr. Scherotter to represent his industry in his 
     position as Vice Plesident of the Golden Gate Restaurant 
     Association.
       Mr. Scherotter has brought it to my attention that, despite 
     Fassio's and Scherotter's successful sponsorship for a work 
     permit under the PERM program, and despite a clean record as 
     a lawabiding taxpayer, home owner and family man, Mr. 
     Martinez and his wife are facing a deportation order. I 
     respectfully urge you to do anything possible to help Mr. 
     Martinez stay with his three children, contribute to the 
     economy and the restaurant industry, and continue to live the 
     American Dream,
           Sincerely,
                                                     Aaron Peskin,
     President.
                                  ____

                                                   April 19, 2007.
     Hon. Diane Feinstein,
     U.S. Senator,
     San Francisco, CA.
       Dear Senator Feinstein: Jose Alberto Martinez has worked 
     for me at Palio d'Asti Restaurant as my Sous Chef for over 
     six years. He is my right hand in every way. He always comes 
     to work on time and ready to enjoy getting his job done well, 
     I need only teach him something once, and he gets it, never 
     making the same mistake twice. None of this comes as a 
     surprise, to me though, because I worked with him as a cook 
     here at Palio 13 years ago. When I needed a Sous Chef to run 
     the kitchen at night, I made one phone call, to Jose.
       Jose started working as a cook at Palio in 1990, when it 
     opened. I came along as a cook climbing up the ladder after 
     working in Italy in the fall of 1994, and stayed for a year 
     and a ha1f. Jose and his brother Mauricio were the pillars of 
     dinner service. The nights I got to work with both of them 
     were lessons in how professional cooks cook. Jose never made 
     mistakes, never lost his temper, and never seemed to sweat or 
     really even move. I thought I knew everything and talked 
     about it, but I could never reach the pure, silent efficiency 
     of motion that Jose embodied. At night, the Sous Chef never 
     even had to come into the kitchen, because he had the dream 
     team in charge. About a year after I started, the owner, 
     Gianni Fassio, had bypass surgery, and decided to close 
     dinner service. Jose and I had to leave to move on and up, 
     elsewhere.
       In the late summer of 1999, I was working at the Kimpton 
     Group as an Executive Chef and General Manager at Puccini and 
     Pinetti, when Mr. Fassio approached me about coming back to 
     Palio, this time as the Executive Chef. He was having 
     mangement problems, which translate into cost and quality 
     problems. The hardest part about running a restaurant or any 
     business for that matter, is finding good management. I had 
     to fire 3 sous chefs upon arrival for blatant incompetence, 
     dishonesty, sexual harassment, bad cooking, alcohol abuse and 
     any number of other sins.
       I tried a couple of classically trained Ameican Sous Chefs 
     with extensive education and experience, but one thing after 
     another would pop up--alcoholism, lack of common sense, 
     inability to handle pressure or criticism, big egos, 
     inability to communicate with, train or maintain staff, and I 
     can go on. I thought about what I needed: a great cook, a 
     leader, someone who spoke English and Spanish, someone who 
     could learn and take constructive criticism, someone who 
     would represent what I wanted on the plate and in person when 
     I was elewhere, So I called Jose.
       It took time, Jose was working for a very well respected 
     French Chef as a cook. I offered him more money and a 
     management title, but since dinner had closed on him before, 
     he didn't know if the restaurant would be around for long. He 
     didn't want to bite off more than he could chew, as he was 
     very comfortable slaving away cooking and had never been 
     truly responsible before. Jose is all about stability, which 
     has made my life a dream since he finally started.
       I taught Jose how to order all of the meat, poultry, and 
     fish and produce every night, taking into account the 
     reservations, historical sales figures, catering, parties, 
     prices and seasonality. He maintains a tight ship with single 
     digit turnover on his shift. His staff worships him and his 
     food is flawless. His ordering is precise, and he has learned 
     to think the way I think. Jose dwells in the details and 
     makes sure that everything is done right. When he started, he 
     told me that no matter what, if he did something wrong, that 
     he wanted me to tell him rather than be upset. That being 
     said, the things I have ever needed to correct him on 
     cumulatively amount to a hill of beans. He cooks a station or 
     two at a time, manages the other employees, the inventory and 
     the ordering while still supporting a family, another job and 
     a sense of humor. He has made it possible for me to buy out 
     Gianni Fassio and start out in business for myse1f.
       My goal is to make Jose into my chef, as I use this 
     restaurant as a mother ship to open other restaurants in the 
     city. He's helped me bring his brother Mauricio, the other 
     half of the dynamic duo back to Palio, and with them there, I 
     can feel comfortable growing our business. I need Jose and 
     this restaurant needs Jose. I want to take him to Italy so he 
     can see how it is over there, and so his vision is not just 
     mine. but also authentic in its own right. When he gets 
     enough money together to open his own restaurant, I will 
     invest in it without hesitation because sure things are hard 
     investments to come by and Jose Alberto Martinez is a sure 
     thing.
       I am willing to do anything to keep Jose here and happy. He 
     is the best possible person to run my business at night, and 
     eventually, I believe, all day. He has worked hard and played 
     by the rules since he got here 20 years ago. He is a 
     homeowner in San Francisco and a saint, respected by everyone 
     in the restaurant, from dishwashers to cooks, busboys to 
     waiters, bartenders to managers. He is well on his way to 
     reaching the American dream, and I can't think of anyone who 
     deserves it more, I implore you to appreciate what this man 
     means to me and to Palio.
       Please tell me any way that I can help Jose stay here in 
     San Francisco as a part of the Palio d'Asti family.
     Daniel H. Scherotter,
       Chef, Owner, Palio d'Asti and Palio Paninoteca,
       Vice President, Golden Gate Restaurant Association.
                                  ____

                                                     San Francisco


                                      Unified School District,

                                San Francisco, CA, April 19, 2007.
       Senator Diane Feinstein: I am writing this letter in 
     support of the family of Micaela and Jose Alberto Martinez 
     and their three daughters, Adelina, Jasmine and Karla 
     Martinez.
       I've known Micaela and Jose Alberto Martinez and their 
     three sweet and well mannered daughters Ade1ina, Jasmine and 
     Karla Martinez who have been at different times in our child 
     development program for the past sixteen years. Each daughter 
     has been enrolled in my class. During this time, Micaela and 
     Jose Alberto have aided our program by volunteering in many 
     ways
       They have translated for our Spanish speaking parents 
     during our Center parent meetings. Mr. and Mrs. Martinez have 
     donated gifts toward our center program fundraisers which 
     have helped to make them a great success, raising funds to 
     support class field trips around the Bay area and to purchase 
     additional materials and supplies for the classroom. They 
     have also helped to chaperone these field trips.
       Micaela and Jose Alberto Martinez are outstanding parents 
     who are supportive to their family, their community and to 
     our educational system.
       Please give all positive consideration to this deserving 
     family.
           Repectfully,
                                               Claree Lash-Haynes,
     Lead Teacher.
                                  ____



                            Irish Immigration Pastoral Center,

                                San Francisco, CA, April 18, 2007.
     Re Jose Alberto Martinez Moreno.

       Dear Senator Feinstein: As Director of the Irish 
     Immigration Pastoral Center in San Francisco, I am writing in 
     support of Jose and Micaela Martinez who reside in the Bay 
     Area. Jose and Micaela are both citizens of Mexico and have 
     made every attempt to regularize their status during their 
     time in the United States. He and his wife have made a life 
     for themselves here in the Bay Area

[[Page 14387]]

     and indeed, have given birth to two of their children here.
       Jose and Micaela have been part of the Irish community for 
     over ten years and are well known and respected within our 
     community. They are known as decent, hard working, dedicated 
     people--both to their employers and to their family. They 
     have given their three children every opportunity that they 
     themselves did not have. Both he and his wife are assets to 
     our community.
       Mr. Martinez has indeed realized his own part of the 
     American Dream, working his way from dishwasher to Sous Chef 
     at the renowned Palio d'Asti restaurant in San Francisco. 
     Commitment, dedication and sheer hard work have enabled them 
     to buy their own home in San Francisco, a feat by anyone's 
     standards. They are the epitome of what it means to be 
     American.
       If Jose and Micaela are forced to leave the United States, 
     yet another family will be torn apart. Their three children, 
     aged 10, 14 and 17, will remain in San Francisco as there is 
     nothing for them in Mexico--they have never even been to 
     Mexico. They will grow up without the love, guidance and 
     nurture of their parents--a dire loss to any young persons 
     life.
       The Irish Immigration Pastoral Center, which provides 
     assistance to Irish immigrants in the Bay Area, would be 
     greatfull if You could look favorably on Mr. and Mrs. 
     Martinez in their request to remain in the United States.
           Yours sincerely,
                                                  Celine Kennelly,
     Executive Director.
                                  ____

                                                   April 18, 2007.
       To Whom It May Concern: I have known Jose Alberto Martinez 
     and his wife Micaela since 1991 when Jose and his brother 
     Maricio worked as cooks under my supervision at Palio d'Asti 
     Resturant in San Francisco, We worked together for 
     approximately three years.
       Jose proved himself to be an extremely talented and 
     responsible cook, anchoring the kitchen with little or no 
     supervision. While working for us at Palio, he also held down 
     part time jobs at some of the Bay Area's other top 
     restaurants in order to learn more and move ahead. And 
     although we didn't interact socially, I know he was an active 
     leader active in his church and prioritized time with his 
     family.
       Jose's hard work and commitment to his family, his 
     community and his job make him ideal candidate for U.S. 
     citizenship. Whether as an immigrant or a citizen, Jose 
     Martinez is an upstanding member of our community,
       If you have any question regarding Jose Martinez, please 
     call me.
           Sincerely,
                                                      Craig Stall,

      Proprietor, Delfina Restuarant.
                                  ____



                                       Kelly's Family Daycare,

                                San Francisco, CA, April 18, 2007.
     Re Michela and Jose Alberto Martinez.

       Dear Sir/Madam: Michela Martinez has worked for my family 
     for many years as our housekeeper. I have come to know 
     Michela very well over the course of this time.
       She is a very hardworking, diligent and considerate woman 
     who has a wonderful nature and fantastic work ethic. She has 
     always had a key to our home and we trust her with our 
     property and our children as well.
       Jose Martinez has worked for my husband as a painting 
     subcontractor and is held in high esteem as well.
       I have no reservations about giving this couple a reference 
     and wish them the best wishes and speedy resolution of their 
     immigration issues. Do not hesitate to contact me if you 
     require further assistance.
           Yours Faithfully,
     Kelly Forde.
                                  ____



                                          St. Philip's Church,

                                San Francisco, CA, April 18, 2007.
     Senator Diane Feinstein,
     U.S. Senate,
     Washington, DC.

     Re Micaela & Jose Martinez.

       Dear Senator Feinstein: I am writing on behalf of Jose 
     Alberton Martinez Moreno and his wife, Micaela, in support of 
     their voluntary departure and impending order of deportation. 
     Jose and Micaela are members of St. Peter's parish and their 
     kindness to the less fortunate is well known in the Irish 
     community.
       It was with great dismay that I heard of Jose and Micaela's 
     uncertain future in America. Jose and Micaela have lived in 
     San Francisco for almost twenty years and have raised their 
     three children here, two of whom are U.S. born. They are a 
     dedicated and loving couple and deserve the opportunity to 
     continue to give to the community that has welcomed them so 
     warmly. I know Micaela personally and I know that it would be 
     a very great and excessive burden for her to leave her young 
     family behind in California--there is nothing for them in 
     Mexico. As a priest, I see far too much hurt, when parents 
     are separated from their children.
       My thoughts and prayers are with Jose and Micaela and their 
     family during this difficult time of uncertainty. I would ask 
     that you look favorably on their situation and be 
     compassionate to a family that wants to make America its 
     home.
       Please do not force them to separate and cause the 
     destruction of this family.
       With every best wish and kind regard, I remain.
           Yours in Christ.
                                                  Brendan McBride,
                                              Priest in Residence.
                                 ______
                                 
      By Mr. BIDEN:
  S.J. Res. 15. A joint resolution to revise United States policy on 
Iraq; to the Committee on Foreign Relations.
  Mr. President, I ask unanimous consent that the text of the joint 
resolution be printed in the Record.
  There being no objection, the text of the joint resolution was 
ordered to be printed in the Record, as follows:

                              S.J. Res. 15

       Whereas in October 2002, Congress approved, and the 
     President signed into law, the Authorization for Use of 
     Military Force Against Iraq Resolution of 2002 (Public Law 
     107-243);
       Whereas the preamble of Public Law 107-243 sets forth the 
     threats to the national security of the United States that 
     required the authorization for the use of force, and those 
     threats were the Iraqi regime led by Saddam Hussein, its 
     weapons of mass destruction programs, its past record of 
     using chemical weapons, and its record of harboring and 
     supporting international terrorist organizations;
       Whereas Saddam Hussein has been executed after conviction 
     for committing crimes against humanity, United States 
     intelligence and military units have not discovered weapons 
     of mass destruction in Iraq, and thorough reviews by the Iraq 
     Survey Group and the Special Advisor to the Director of 
     Central Intelligence on Iraq's weapons of mass destruction 
     concluded that Iraq did not have any active weapons of mass 
     destruction programs in the final years of the Saddam Hussein 
     regime;
       Whereas with the removal of the Iraqi regime led by Saddam 
     Hussein, the determination that there were no weapons of mass 
     destruction in Iraq, and the establishment of a democratic 
     constitution and a freely-elected government in Iraq, the 
     United States objectives set forth in Public Law 107-243 are 
     no longer relevant to the current situation;
       Whereas sectarian violence is the primary cause of 
     instability in Iraq;
       Whereas, Iraqis must reach a comprehensive and sustainable 
     political settlement in order to achieve stability, and the 
     failure of the Iraqis to reach such a settlement is a primary 
     cause of increasing violence in Iraq;
       Whereas the responsibility for halting sectarian violence 
     in Iraq must rest primarily with the Government of Iraq and 
     Iraqi security forces, and not United States Armed Forces;
       Now, therefore, be it
       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This joint resolution may be cited as the ``United States 
     Policy in Iraq Resolution of 2007''.

     SEC. 2. PURPOSE.

       It is the purpose of this joint resolution to repeal the 
     authorization for the use of force provided in 2002, to 
     transition United States Armed Forces in Iraq to a more 
     limited mission, and to secure the phased redeployment from 
     Iraq of such forces not essential to that new mission.

     SEC. 3. REPEAL OF 2002 RESOLUTION.

       The Authorization for Use of Military Force Against Iraq 
     Resolution of 2002 (Public Law 107-243) is repealed.

     SEC. 4. AUTHORIZATION FOR THE USE OF UNITED STATES ARMED 
                   FORCES.

       (a) Authorization.--The President is authorized to continue 
     participation by United States Armed Forces in Multi-National 
     Force--Iraq, or as part of a successor force, for the 
     purposes of--
       (1) Protecting United States and coalition personnel and 
     infrastructure;
       (2) Training, equipping, and providing logistical support 
     to Iraqi Security Forces;
       (3) Conducting targeted counter-terrorism operations; and
       (4) Assisting the Government of Iraq to maintain the 
     security of its international borders.
       (b) Transition of Mission.--The President shall promptly 
     transition the mission of United States forces in Iraq from 
     the mission authorized by section 3(a) of the Authorization 
     for Use of Military Force Resolution of 2002 (Public Law 107-
     243) to the limited purposes set forth in subsection (a).
       (c) Commencement of Phased Redeployment from Iraq.--The 
     President shall commence the phased redeployment of United 
     States forces from Iraq not later than 90 days after the date 
     of enactment of this joint resolution, with the goal of 
     redeploying, by March 31, 2008, all United States combat 
     forces from Iraq except for those essential for the limited 
     purposes set forth in subsection (a).
       (d) War Powers Resolution Requirements.--
       (1) Specific statutory authorization.--Consistent with 
     section 8(a)(1) of the War Powers Resolution, the Congress 
     declares that this section is intended to constitute

[[Page 14388]]

     specific statutory authorization within the meaning of 
     section 5(b) of the War Powers Resolution.
       (2) Applicability of other requirements.--Nothing in this 
     joint resolution supersedes any requirement of the War Powers 
     Resolution.

     SEC. 5. CONSTRUCTION.

       Nothing in this joint resolution shall be construed to--
       (a) limit measures necessary to provide for the safety and 
     security of the MultiNational Force-Iraq, including United 
     States Armed Forces;
       (b) authorize offensive combat activities by United States 
     Armed Forces in Iran, Syria, or any other state in the Middle 
     East region.

     SEC. 6. REPORT.

       The President shall submit to Congress not later than 90 
     days after enactment of this joint resolution, and every 90 
     days thereafter, a report outlining the activities of the 
     United States Armed Forces pursuant to this joint resolution, 
     and on the progress that has been made in training the 
     security forces of Iraq and promoting a sustainable political 
     settlement.

     SEC. 7. DURATION OF AUTHORIZATION.

       The authorization under Section 4(a) shall expire on the 
     date that is 12 months after the date of enactment of this 
     joint resolution, unless Congress extends such authorization.

                          ____________________