[Congressional Record (Bound Edition), Volume 153 (2007), Part 11]
[Senate]
[Pages 15644-15666]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 1528. Mr. BINGAMAN (for himself and Mr. Domenici) submitted an 
amendment intended to be proposed to amendment SA 1502 proposed by Mr. 
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign 
oil by investing in clean, renewable, and alternative energy resources, 
promoting new emerging energy technologies, developing greater 
efficiency, and creating a Strategic Energy Efficiency and Renewables 
Reserve to invest in alternative energy, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 126, line 12, strike ``and''.
       On page 126, line 13, strike the period and insert ``; 
     and''.
       On page 126, between lines 13 and 14, insert the following:
       (vi) thermal behavior and life degradation mechanisms.
       On page 126, strike lines 14 through 21, and insert the 
     following:
       (B) Nanoscience centers.--The Secretary, in cooperation 
     with the Council, shall coordinate the activities of the 
     nanoscience centers of the Department to help the nanoscience 
     centers of the Department maintain a globally competitive 
     posture in energy storage systems for motor transportation 
     and electricity transmission and distribution.
       On page 127, line 5, insert ``and battery systems'' after 
     ``batteries''.
       On page 127, line 7, strike ``and''.
       On page 127, line 9, strike the period and insert   ``; 
     and''.
       On page 127, between lines 9 and 10, insert the following:
       (G) thermal management systems.
       On page 127, line 12, insert ``not more than'' before 
     ``4''.
       On page 127, lines 21 and 22, strike ``and the Under 
     Secretary of Energy''.
       Beginning on page 128, strike line 22, and all that follows 
     through page 129, line 2 and insert the following:
       (7) Disclosure.--Section 623 of the Energy Policy Act of 
     1992 (42 U.S.C. 13293) may apply to any project carried out 
     through a grant, contract, or cooperative agreement under 
     this section.
       (8) Intellectual property.--In accordance with section 
     202(a)(ii) of title 35, United States Code, section 152 of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9 
     of the Federal Nonnuclear Research and Development Act of 
     1974 (42 U.S.C. 5908), the Secretary may require, for any new 
     invention developed under paragraph (6)--
       (A) that any industrial participant that is active in a 
     Energy Storage Research Center established under paragraph 
     (6) related to the advancement of energy storage technologies 
     carried out, in whole or in part, with Federal funding, be 
     granted the first option to negotiate with the invention 
     owner, at least in the field of energy storage technologies, 
     nonexclusive licenses and royalties on terms that are 
     reasonable, as determined by the Secretary;
       (B) that, during a 2-year period beginning on the date on 
     which an invention is made, the patent holder shall not 
     negotiate any license or royalty agreement with any entity 
     that is not an industrial participant under paragraph (6);
       (C) that, during the 2-year period described in 
     subparagraph (B), the patent holder shall negotiate 
     nonexclusive licenses and royalties in good faith with any 
     interested industrial participant under paragraph (6); and
       (D) such other terms as the Secretary determines to be 
     necessary to promote the accelerated commercialization of 
     inventions made under paragraph (6) to advance the capability 
     of the United States to successfully compete in global energy 
     storage markets.
       On page 129, line 3, strike ``(7)'' and insert ``(9)''.
       On page 129, line 4, strike ``5 years'' and insert ``3 
     years''.
       On page 129, line 8, strike ``in making'' and all that 
     follows through the end of the paragraph and insert ``in 
     carrying out this section.''.
       On page 129, line 12, strike ``(8)'' and insert ``(10)''.
                                 ______
                                 
  SA 1529. Mr. BINGAMAN (for himself and Mr. Domenici) submitted an 
amendment intended to be proposed to amendment SA 1502 proposed by Mr. 
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign 
oil by investing in clean, renewable, and alternative energy resources, 
promoting new emerging energy technologies, developing greater 
efficiency, and creating a Strategic Energy Efficiency and Renewables 
Reserve to invest in alternative energy, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 73, between lines 4 and 5, insert the following:
       (h) Report.--Not later than 2 years after the date of 
     enactment of this Act, and annually thereafter, the 
     Administrator of General Services shall submit to the Energy 
     Information Agency a report describing the quantity, type, 
     and cost of each lighting product purchased by the Federal 
     Government.
       On page 73, line 5, strike ``(h)'' and insert ``(i)''.
       On page 73, line 16, strike ``(i)'' and insert ``(j)''.
                                 ______
                                 
  SA 1530. Mr. PRYOR submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, develop greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 161, between lines 2 and 3, insert the following:

     SEC. 269. PROMOTION OF ENERGY SAVINGS PERFORMANCE CONTRACTS.

       Section 801 of the National Energy Conservation Policy Act 
     (42 U.S.C. 8287) is amended--
       (1) in subsection (a)(2)--
       (A) in subparagraph (D), by inserting ``beginning on the 
     date of the delivery order'' after ``25 years''; and
       (B) by adding at the end the following:
       ``(E) Promotion of contracts.--In carrying out this 
     section, a Federal agency shall not--

[[Page 15645]]

       ``(i) establish a Federal agency policy that limits the 
     maximum contract term under subparagraph (D) to a period 
     shorter than 25 years; or
       ``(ii) limit the total amount of obligations under energy 
     savings performance contracts or other private financing of 
     energy savings measures.
       ``(F) Measurement and verification requirements for private 
     financing.--
       ``(i) In general.--The evaluations and savings measurement 
     and verification required under paragraphs (1) and (3) of 
     section 543(f) shall be used by a Federal agency to meet the 
     requirements for--

       ``(I) in the case of energy savings performance contracts, 
     the need for energy audits, calculation of energy savings, 
     and any other evaluation of costs and savings needed to 
     implement the guarantee of savings under this section; and
       ``(II) in the case of utility energy service contracts, 
     needs that are similar to the purposes described in subclause 
     (I).

       ``(ii) Modification of existing contracts.--Not later than 
     180 days after the date of enactment of this subparagraph, 
     each Federal agency shall, to the maximum extent practicable, 
     modify any indefinite delivery and indefinite quantity energy 
     savings performance contracts, and other indefinite delivery 
     and indefinite quantity contracts using private financing, to 
     conform to the amendments made by the Renewable Fuels, 
     Consumer Protection, and Energy Efficiency Act of 2007.''; 
     and
       (2) by striking subsection (c).
                                 ______
                                 
  SA 1531. Mr. PRYOR submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, develop greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 153, strike line 24 and insert the following:
       ``under subsection (a)(1).
       ``(g) Use of Energy and Water Efficiency Measures in 
     Federal Buildings.--
       ``(1) Energy and water evaluations.--Not later than 1 year 
     after the date of enactment of this subsection, and every 3 
     years thereafter, each Federal agency shall complete a 
     comprehensive energy and water evaluation for--
       ``(A) each building and other facility of the Federal 
     agency that is larger than a minimum size established by the 
     Secretary; and
       ``(B) any other building or other facility of the Federal 
     agency that meets any other criteria established by the 
     Secretary.
       ``(2) Implementation of identified energy and water 
     efficiency measures.--
       ``(A) In general.--Not later than 2 years after the date of 
     enactment of this subsection, and every 3 years thereafter, 
     each Federal agency--
       ``(i) shall fully implement each energy and water-saving 
     measure that the Federal agency identified in the evaluation 
     conducted under paragraph (1) that has a 15-year simple 
     payback period; and
       ``(ii) may implement any energy or water-saving measure 
     that the Federal agency identified in the evaluation 
     conducted under paragraph (1) that has longer than a 15-year 
     simple payback period.
       ``(B) Payback period.--
       ``(i) In general.--For the purpose of subparagraph (A), a 
     measure shall be considered to have a 15-year simple payback 
     if the quotient obtained under clause (ii) is less than or 
     equal to 15.
       ``(ii) Quotient.--The quotient for a measure shall be 
     obtained by dividing--

       ``(I) the estimated initial implementation cost of the 
     measure (other than financing costs); by
       ``(II) the annual cost savings from the measure.

       ``(C) Cost savings.--For the purpose of subparagraph (B), 
     cost savings shall include net savings in estimated--
       ``(i) energy and water costs; and
       ``(ii) operations, maintenance, repair, replacement, and 
     other direct costs.
       ``(D) Exceptions.--The Secretary may modify or make 
     exceptions to the calculation of a 15-year simple payback 
     under this paragraph in the guidelines issued by the 
     Secretary under paragraph (4).
       ``(3) Follow-up on implemented measures.--For each measure 
     implemented under paragraph (2), each Federal agency shall 
     carry out--
       ``(A) commissioning;
       ``(B) operations, maintenance, and repair; and
       ``(C) measurement and verification of energy and water 
     savings.
       ``(4) Guidelines.--
       ``(A) In general.--The Secretary shall issue guidelines and 
     necessary criteria that each Federal agency shall follow for 
     implementation of--
       ``(i) paragraph (1) not later than 90 days after the date 
     of enactment of this subsection; and
       ``(ii) paragraphs (2) and (3) not later than 180 days after 
     the date of enactment of this subsection.
       ``(B) Relationship to funding source.--The guidelines 
     issued by the Secretary under subparagraph (A) shall be 
     appropriate and uniform for measures funded with each type of 
     funding made available under paragraph (8).
       ``(5) Web-based certification.--
       ``(A) In general.--For each building and other facility 
     that meets the criteria established by the Secretary under 
     paragraph (1), each Federal agency shall use a web-based 
     tracking system to certify compliance with the requirements 
     for--
       ``(i) energy and water evaluations under paragraph (1);
       ``(ii) implementation of identified energy and water 
     measures under paragraph (2); and
       ``(iii) follow-up on implemented measures under paragraph 
     (3).
       ``(B) Deployment.--Not later than 1 year after the date of 
     enactment of this subsection, the Secretary shall deploy the 
     web-based tracking system required under this paragraph in a 
     manner that tracks, at a minimum--
       ``(i) the covered buildings and other facilities;
       ``(ii) the status of evaluations;
       ``(iii) the identified measures, with estimated costs and 
     savings;
       ``(iv) the status of implementing the measures;
       ``(v) the measured savings; and
       ``(vi) the persistence of savings.
       ``(C) Availability.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     shall make the web-based tracking system required under this 
     paragraph available to Congress, other Federal agencies, and 
     the public through the Internet.
       ``(ii) Exemptions.--At the request of a Federal agency, the 
     Secretary may exempt specific data for specific buildings 
     from disclosure under clause (i) for national security 
     purposes.
       ``(6) Benchmarking of federal facilities.--
       ``(A) In general.--Each Federal agency shall enter energy 
     use data for each building and other facility of the Federal 
     agency into a building energy use benchmarking system, such 
     as the Energy Star Portfolio Manager.
       ``(B) System and guidance.--Not later than 1 year after the 
     date of enactment of this subsection, the Secretary shall--
       ``(i) select or develop the building energy use 
     benchmarking system required under this paragraph for each 
     type of building; and
       ``(ii) issue guidance for use of the system.
       ``(7) Federal agency scorecards.--
       ``(A) In general.--The Director of the Office of Management 
     and Budget shall issue quarterly scorecards for energy 
     management activities carried out by each Federal agency that 
     includes--
       ``(i) summaries of the status of--

       ``(I) energy and water evaluations under paragraph (1);
       ``(II) implementation of identified energy and water 
     measures under paragraph (2); and
       ``(III) follow-up on implemented measures under paragraph 
     (3); and

       ``(ii) any other means of measuring performance that the 
     Director considers appropriate.
       ``(B) Availability.--The Director shall make the scorecards 
     required under this paragraph available to Congress, other 
     Federal agencies, and the public through the Internet.
       ``(8) Funding.--
       ``(A) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection.
       ``(B) Funding options.--
       ``(i) In general.--To carry out paragraphs (1) through (3), 
     a Federal agency may use any combination of--

       ``(I) appropriated funds made available under subparagraph 
     (A); and
       ``(II) private financing, including financing available 
     through energy savings performance contracts or utility 
     energy savings contracts.

       ``(ii) Combined funding for same measure.--A Federal agency 
     may use any combination of appropriated funds and private 
     financing described in clause (i) to carry out the same 
     measure under this subsection, with proportional allocation 
     for any energy and water savings.
       ``(iii) Lack of appropriated funds.--Since measures may be 
     carried out using private financing described in clause (i), 
     a lack of available appropriations shall not be considered a 
     sufficient reason for the failure of a Federal agency to 
     comply with paragraphs (1) through (3).''.
                                 ______
                                 
  SA 1532. Mr. THUNE submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, develop greater efficiency, and creating a

[[Page 15646]]

Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 50, between lines 16 and 17, insert the following:
       (d) Approval of Higher Blends of Ethanol.--Not later than 
     180 days after the date on which the report is submitted 
     under subsection (c), the Administrator of the Environmental 
     Protection Agency shall approve the use of higher blends of 
     ethanol fuel for use in non-flex fuel automotive vehicles 
     that received a satisfactory review based on the components 
     of the study under subsection (a) addressing the emissions, 
     materials compatibility, and durability and performance of 
     the approved higher blends of ethanol fuel in on-road and 
     off-road engines.
                                 ______
                                 
  SA 1533. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill H.R. 6, to reduce our Nation's dependency on foreign 
oil by investing in clean, renewable, and alternative energy resources, 
promoting new emerging energy technologies, develop greater efficiency, 
and creating a Strategic Energy Efficiency and Renewables Reserve to 
invest in alternative energy, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the end of subtitle F of title II, insert the following:

     SEC. 2__. DEFINITION OF STATE.

       Section 412 of the Energy Conservation and Production Act 
     (42 U.S.C. 6862) is amended by striking paragraph (8) and 
     inserting the following:
       ``(8) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia; and
       ``(C) the Commonwealth of Puerto Rico.''.
                                 ______
                                 
  SA 1534. Mr. NELSON of Nebraska submitted an amendment intended to be 
proposed to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, 
to reduce our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, develop greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 36, line 17, strike ``Section'' and insert the 
     following:
       (a) In General.--Section
       On page 36, after line 22, add the following:
       (b) Biofuels Investment Trust Fund.--Section 932(d) of the 
     Energy Policy Act of 2005 (42 U.S.C. 16232(d)) is amended by 
     adding at the end the following:
       ``(3) Biofuels investment trust fund.--
       ``(A) Establishment.--
       ``(i) In general.--There is established in the Treasury of 
     the United States a trust fund, to be known as the `Biofuels 
     Investment Trust Fund' (referred to in this paragraph as the 
     `trust fund'), consisting of such amounts as are transferred 
     to the trust fund under clause (ii).
       ``(ii) Transfer.--As soon as practicable after the date of 
     enactment of this paragraph, the Secretary of the Treasury 
     shall transfer to the trust fund, from amounts in the general 
     fund of the Treasury, such amounts as the Secretary of the 
     Treasury determines to be equivalent to the amounts received 
     in the general fund as of January 1, 2007, that are 
     attributable to duties received on articles entered under 
     heading 9901.00.50 of the Harmonized Tariff Schedule of the 
     United States.
       ``(B) Investment of amounts.--
       ``(i) In general.--The Secretary of the Treasury shall 
     invest such portion of the trust fund as is not, in the 
     judgment of the Secretary of the Treasury, required to meet 
     current withdrawals.
       ``(ii) Interest-bearing obligations.--Investments may be 
     made only in interest-bearing obligations of the United 
     States.
       ``(iii) Acquisition of obligations.--For the purpose of 
     investments under clause (i), obligations may be acquired--

       ``(I) on original issue at the issue price; or
       ``(II) by purchase of outstanding obligations at the market 
     price.

       ``(iv) Sale of obligations.--Any obligation acquired by the 
     trust fund may be sold by the Secretary of the Treasury at 
     the market price.
       ``(v) Credits to trust fund.--The interest on, and the 
     proceeds from the sale or redemption of, any obligations held 
     in the trust fund shall be credited to and form a part of the 
     trust fund.
       ``(C) Transfers of amounts.--
       ``(i) In general.--The amounts required to be transferred 
     to the trust fund under subparagraph (A)(ii) shall be 
     transferred at least quarterly from the general fund of the 
     Treasury to the trust fund on the basis of estimates made by 
     the Secretary of the Treasury.
       ``(ii) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
       ``(D) Use of funds.--
       ``(i) In general.--Amounts in the trust fund shall be used 
     to carry out the program under paragraph (1).
       ``(ii) Treatment.--Amounts in the trust fund used under 
     clause (i) shall be in addition to, and shall not be 
     considered to be provided in lieu of, any other funds made 
     available to carry out this subsection.''.
                                 ______
                                 
  SA 1535. Mr. CARDIN (for himself, Ms. Mikulski, Mr. Dodd, Mr. Kerry, 
Mr. Reed, Mr. Kennedy, and Mr. Whitehouse) submitted an amendment 
intended to be proposed to amendment SA 1502 proposed by Mr. Reid to 
the bill H.R. 6, to reduce our Nation's dependency on foreign oil by 
investing in clean, renewable, and alternative energy resources, 
promoting new emerging energy technologies, develop greater efficiency, 
and creating a Strategic Energy Efficiency and Renewables Reserve to 
invest in alternative energy, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. SITING, CONSTRUCTION, EXPANSION, AND OPERATION OF 
                   LNG TERMINALS.

       Section 10 of the Act of March 3, 1899 (33 U.S.C. 403), is 
     amended--
       (1) by striking the section heading and designation and all 
     that follows through ``creation'' and inserting the 
     following:

     ``SEC. 10. OBSTRUCTION OF NAVIGABLE WATERS; WHARVES AND 
                   PIERS; EXCAVATIONS AND FILLING IN.

       ``(a) In General.--The creation''; and
       (2) by adding at the end the following:
       ``(b) Siting, Construction, Expansion, and Operation of LNG 
     Terminals.--The Secretary shall not approve or disapprove an 
     application for the siting, construction, expansion, or 
     operation of a liquefied natural gas terminal pursuant to 
     this section without the express concurrence of each State 
     affected by the application.''.
                                 ______
                                 
  SA 1536. Mr. KERRY (for himself, Mr. Sanders, and Mr. Dodd) submitted 
an amendment intended to be proposed by him to the bill H.R. 6, to 
reduce our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, developing greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 2, strike the table between lines 7 and 8 and 
     insert the following:

Calendar year:                               Minimum annual percentage:
2009 through 2012...................................................  5
2013 through 2016................................................... 10
2017 through 2019................................................... 15
2020 through 2030................................................... 20

       On page 3, line 2, strike ``2009'' and insert ``2008''.
                                 ______
                                 
  SA 1537. Mr. REID (for Mr. Bingaman (for himself, Mr. Reid, Mr. 
Cardin, Mr. Salazar, Ms. Snowe, and Mr. Durbin)) proposed an amendment 
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, develop greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; as follows:

       At the end, add the following:

                TITLE VIII--RENEWABLE PORTFOLIO STANDARD

     SEC. 801. RENEWABLE PORTFOLIO STANDARD.

       (a) In General.--Title VI of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

       ``(a) Renewable Energy Requirement.--
       ``(1) In general.--Each electric utility that sells 
     electricity to electric consumers shall obtain a percentage 
     of the base amount of electricity it sells to electric 
     consumers in any calendar year from new renewable energy or 
     existing renewable energy. The percentage obtained in a 
     calendar year shall not be less than the amount specified in 
     the following table:

``Calendar year:                             Minimum annual percentage:
2010 through 2012..................................................3.75
2013 through 2016..................................................7.50
2017 through 2019.................................................11.25
2020 through 2030.................................................15.0 


[[Page 15647]]

       ``(2) Means of compliance.--An electric utility shall meet 
     the requirements of paragraph (1) by--
       ``(A) submitting to the Secretary renewable energy credits 
     issued under subsection (b);
       ``(B) making alternative compliance payments to the 
     Secretary at the rate of 2 cents per kilowatt hour (as 
     adjusted for inflation under subsection (g)); or
       ``(C) a combination of activities described in 
     subparagraphs (A) and (B).
       ``(3) Special rule.--Nothing in this section authorizes or 
     requires the Tennessee Valley Authority to make any capital 
     expenditure on new generating capacity, except to the extent 
     that budget authority for the expenditure is provided in 
     advance in an appropriations Act.
       ``(b) Federal Renewable Energy Credit Trading Program.--
       ``(1) In general.--Not later than July 1, 2009, the 
     Secretary shall establish a Federal renewable energy credit 
     trading program under which electric utilities shall submit 
     to the Secretary renewable energy credits to certify the 
     compliance of the electric utilities with respect to 
     obligations under subsection (a)(1).
       ``(2) Administration.--As part of the program, the 
     Secretary shall--
       ``(A) issue tradeable renewable energy credits to 
     generators of electric energy from new renewable energy;
       ``(B) issue nontradeable renewable energy credits to 
     generators of electric energy from existing renewable energy;
       ``(C) issue renewable energy credits to electric utilities 
     associated with State renewable portfolio standard compliance 
     mechanisms pursuant to subsection (h);
       ``(D) ensure that a kilowatt hour, including the associated 
     renewable energy credit, shall be used only once for purposes 
     of compliance with this Act;
       ``(E) allow double credits for generation from facilities 
     on Indian land, and triple credits for generation from small 
     renewable distributed generators (meaning those no larger 
     than 1 megawatt); and
       ``(F) ensure that, with respect to a purchaser that, as of 
     the date of enactment of this section, has a purchase 
     agreement from a renewable energy facility placed in service 
     before that date, the credit associated with the generation 
     of renewable energy under the contract is issued to the 
     purchaser of the electric energy to the extent that the 
     contract does not already provide for the allocation of the 
     Federal credit.
       ``(3) Duration.--A credit described in subparagraph (A), 
     (B), or (C) of paragraph (2) may only be used for compliance 
     with this section during the 3-year period beginning on the 
     date of issuance of the credit.
       ``(4) Transfers.--An electric utility that holds credits in 
     excess of the quantity of credits needed to comply with 
     subsection (a) may transfer the credits to another electric 
     utility in the same utility holding company system.
       ``(5) Delegation of market function.--The Secretary may 
     delegate to an appropriate market-making entity the 
     administration of a national tradeable renewable energy 
     credit market for purposes of creating a transparent national 
     market for the sale or trade of renewable energy credits.
       ``(c) Enforcement.--
       ``(1) Civil penalties.--Any electric utility that fails to 
     meet the compliance requirements of subsection (a) shall be 
     subject to a civil penalty.
       ``(2) Amount of penalty.--The amount of the civil penalty 
     shall be determined by multiplying the number of kilowatt-
     hours of electric energy sold to electric consumers in 
     violation of subsection (a) by the greater of--
       ``(A) the value of the alternative compliance payment, as 
     adjusted to reflect changes for the 12-month period ending 
     the preceding November 30 in the Consumer Price Index for All 
     Urban Consumers published by the Bureau of Labor Statistics 
     of the Department of Labor; or
       ``(B) 200 percent of the average market value of renewable 
     energy credits during the year in which the violation 
     occurred.
       ``(3) Mitigation or waiver.--
       ``(A) Penalty.--
       ``(i) In general.--The Secretary may mitigate or waive a 
     civil penalty under this subsection if the electric utility 
     is unable to comply with subsection (a) for a reason outside 
     of the reasonable control of the utility.
       ``(ii) Amount.--The Secretary shall reduce the amount of 
     any penalty determined under paragraph (2) by the amount paid 
     by the electric utility to a State for failure to comply with 
     the requirement of a State renewable energy program if the 
     State requirement is greater than the applicable requirement 
     of subsection (a).
       ``(B) Requirement.--The Secretary may waive the 
     requirements of subsection (a) for a period of up to 5 years 
     with respect to an electric utility if the Secretary 
     determines that the electric utility cannot meet the 
     requirements because of a hurricane, tornado, fire, flood, 
     earthquake, ice storm, or other natural disaster or act of 
     God beyond the reasonable control of the utility.
       ``(4) Procedure for assessing penalty.--The Secretary shall 
     assess a civil penalty under this subsection in accordance 
     with the procedures prescribed by section 333(d) of the 
     Energy Policy and Conservation Act of 1954 (42 U.S.C. 6303).
       ``(d) State Renewable Energy Account Program.--
       ``(1) In general.--There is established in the Treasury a 
     State renewable energy account program.
       ``(2) Deposits.--All money collected by the Secretary from 
     alternative compliance payments and the assessment of civil 
     penalties under this section shall be deposited into the 
     renewable energy account established pursuant to this 
     subsection.
       ``(3) Use.--Proceeds deposited in the State renewable 
     energy account shall be used by the Secretary, subject to 
     appropriations, for a program to provide grants to the State 
     agency responsible for developing State energy conservation 
     plans under section 362 of the Energy Policy and Conservation 
     Act (42 U.S.C. 6322) for the purposes of promoting renewable 
     energy production, including programs that promote 
     technologies that reduce the use of electricity at customer 
     sites such as solar water heating.
       ``(4) Administration.--The Secretary may issue guidelines 
     and criteria for grants awarded under this subsection. State 
     energy offices receiving grants under this section shall 
     maintain such records and evidence of compliance as the 
     Secretary may require.
       ``(5) Preference.--In allocating funds under this program, 
     the Secretary shall give preference--
       ``(A) to States in regions which have a disproportionately 
     small share of economically sustainable renewable energy 
     generation capacity; and
       ``(B) to State programs to stimulate or enhance innovative 
     renewable energy technologies.
       ``(e) Rules.--The Secretary shall issue rules implementing 
     this section not later than 1 year after the date of 
     enactment of this section.
       ``(f) Exemptions.--This section shall not apply in any 
     calendar year to an electric utility--
       ``(1) that sold less than 4,000,000 megawatt-hours of 
     electric energy to electric consumers during the preceding 
     calendar year; or
       ``(2) in Hawaii.
       ``(g) Inflation Adjustment.--Not later than December 31 of 
     each year beginning in 2008, the Secretary shall adjust for 
     inflation the rate of the alternative compliance payment 
     under subsection (a)(2)(B) and the amount of the civil 
     penalty per kilowatt-hour under subsection (c)(2).
       ``(h) State Programs.--
       ``(1) In general.--Nothing in this section diminishes any 
     authority of a State or political subdivision of a State to 
     adopt or enforce any law or regulation respecting renewable 
     energy or the regulation of electric utilities, but, except 
     as provided in subsection (c)(3), no such law or regulation 
     shall relieve any person of any requirement otherwise 
     applicable under this section. The Secretary, in consultation 
     with States having such renewable energy programs, shall, to 
     the maximum extent practicable, facilitate coordination 
     between the Federal program and State programs.
       ``(2) Regulations.--
       ``(A) In general.--The Secretary, in consultation with 
     States, shall promulgate regulations to ensure that an 
     electric utility that is subject to the requirements of this 
     section and is subject to a State renewable energy standard 
     receives renewable energy credits if--
       ``(i) the electric utility complies with State standard by 
     generating or purchasing renewable electric energy or 
     renewable energy certificates or credits; or
       ``(ii) the State imposes or allows other mechanisms for 
     achieving the State standard, including the payment of taxes, 
     fees, surcharges, or other financial obligations.
       ``(B) Amount of credits.--The amount of credits received by 
     an electric utility under this subsection shall equal--
       ``(i) in the case of subparagraph (A)(i), the renewable 
     energy resulting from the generation or purchase by the 
     electric utility of existing renewable energy or new 
     renewable energy; and
       ``(ii) in the case of subparagraph (A)(ii), the pro rata 
     share of the electric utility, based on the contributions to 
     the mechanism made by the electric utility or customers of 
     the electric utility, in the State, of the renewable energy 
     resulting from those mechanisms.
       ``(C) Prohibition on double counting.--The regulations 
     promulgated under this paragraph shall ensure that a 
     kilowatt-hour associated with a renewable energy credit 
     issued pursuant to this subsection shall not be used for 
     compliance with this section more than once.
       ``(i) Definitions.--In this section:
       ``(1) Base amount of electricity.--The term `base amount of 
     electricity' means the total amount of electricity sold by an 
     electric utility to electric consumers in a calendar year, 
     excluding--
       ``(A) electricity generated by a hydroelectric facility 
     (including a pumped storage facility but excluding 
     incremental hydropower); and
       ``(B) electricity generated through the incineration of 
     municipal solid waste.
       ``(2) Distributed generation facility.--The term 
     `distributed generation facility' means a facility at a 
     customer site.

[[Page 15648]]

       ``(3) Existing renewable energy.--The term `existing 
     renewable energy' means, except as provided in paragraph 
     (7)(B), electric energy generated at a facility (including a 
     distributed generation facility) placed in service prior to 
     January 1, 2001, from solar, wind, or geothermal energy, 
     ocean energy, biomass (as defined in section 203(a) of the 
     Energy Policy Act of 2005), or landfill gas.
       ``(4) Geothermal energy.--The term `geothermal energy' 
     means energy derived from a geothermal deposit (within the 
     meaning of section 613(e)(2) of the Internal Revenue Code of 
     1986).
       ``(5) Incremental geothermal production.--
       ``(A) In general.--The term `incremental geothermal 
     production' means for any year the excess of--
       ``(i) the total kilowatt hours of electricity produced from 
     a facility (including a distributed generation facility) 
     using geothermal energy; over
       ``(ii) the average annual kilowatt hours produced at such 
     facility for 5 of the previous 7 calendar years before the 
     date of enactment of this section after eliminating the 
     highest and the lowest kilowatt hour production years in such 
     7-year period.
       ``(B) Special rule.--A facility described in subparagraph 
     (A) that was placed in service at least 7 years before the 
     date of enactment of this section shall, commencing with the 
     year in which such date of enactment occurs, reduce the 
     amount calculated under subparagraph (A)(ii) each year, on a 
     cumulative basis, by the average percentage decrease in the 
     annual kilowatt hour production for the 7-year period 
     described in subparagraph (A)(ii) with such cumulative sum 
     not to exceed 30 percent.
       ``(6) Incremental hydropower.--The term `incremental 
     hydropower' means additional energy generated as a result of 
     efficiency improvements or capacity additions made on or 
     after January 1, 2001, or the effective date of an existing 
     applicable State renewable portfolio standard program at a 
     hydroelectric facility that was placed in service before that 
     date. The term does not include additional energy generated 
     as a result of operational changes not directly associated 
     with efficiency improvements or capacity additions. 
     Efficiency improvements and capacity additions shall be 
     measured on the basis of the same water flow information used 
     to determine a historic average annual generation baseline 
     for the hydroelectric facility and certified by the Secretary 
     or the Federal Energy Regulatory Commission.
       ``(7) New renewable energy.--The term `new renewable 
     energy' means--
       ``(A) electric energy generated at a facility (including a 
     distributed generation facility) placed in service on or 
     after January 1, 2001, from--
       ``(i) solar, wind, or geothermal energy or ocean energy;
       ``(ii) biomass (as defined in section 203(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 15852(b));
       ``(iii) landfill gas; or
       ``(iv) incremental hydropower; and
       ``(B) for electric energy generated at a facility 
     (including a distributed generation facility) placed in 
     service before January 1, 2001--
       ``(i) the additional energy above the average generation 
     during the period beginning on January 1, 1998, and ending on 
     January 1, 2001, at the facility from--

       ``(I) solar or wind energy or ocean energy;
       ``(II) biomass (as defined in section 203(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 15852(b));
       ``(III) landfill gas; or
       ``(IV) incremental hydropower; and

       ``(ii) incremental geothermal production.
       ``(8) Ocean energy.--The term `ocean energy' includes 
     current, wave, tidal, and thermal energy.
       ``(j) Sunset.--This section expires on December 31, 
     2030.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     prec. 2601) is amended by adding at the end of the items 
     relating to title VI the following:

       ``Sec. 610. Federal renewable part folio standard.''.
                                 ______
                                 
  SA 1538. Mr. McCONNELL (for Mr. Domenici (for himself, Mr. Craig, Mr. 
Bennett, Mr. Crapo, Mr. Graham, and Ms. Murkowski)) proposed an 
amendment to be proposed to amendment SA 1537 proposed by Mr. Reid (for 
Mr. Bingaman (for himself, Mr. Reid, Mr. Cardin, Mr. Salazar, Ms. 
Snowe, and Mr. Durbin)) to the amendment SA 1502 proposed by Mr. Reid 
to the bill H.R. 6, to reduce our Nation's dependency on foreign oil by 
investing in clean, renewable, and alternative energy resources, 
promoting new emerging energy technologies, developing greater 
efficiency, and creating a Strategic Energy Efficiency and Renewables 
Reserve to invest in alternative energy, and for other purposes; as 
follows:

       Beginning on page 1 of the amendment, line 2, strike 
     everything after ``TITLE'' and insert the following:

                 VIII--FEDERAL CLEAN PORTFOLIO STANDARD

     SEC. 801. FEDERAL CLEAN PORTFOLIO STANDARD.

       (a) In General.--Title VI of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 610. FEDERAL CLEAN PORTFOLIO STANDARD.

       ``(a) Clean Energy Requirement.--
       ``(1) In general.--Each electric utility that sells 
     electricity to electric consumers shall obtain a percentage 
     of the base amount of electricity it sells to electric 
     consumers in any calendar year from new clean energy or 
     existing clean energy. The percentage obtained in a calendar 
     year shall not be less than the amount specified in the 
     following table:

``Calendar year:                             Minimum annual percentage:
2010 through 2012...................................................  5
2013 through 2016................................................... 10
2017 through 2019................................................... 15
2020 through 2030................................................... 20

       ``(2) Means of compliance.--An electric utility shall meet 
     the requirements of paragraph (1) by--
       ``(A) submitting to the Secretary clean energy credits 
     issued under subsection (b);
       ``(B) making alternative compliance payments to the 
     Secretary at the rate of 2 cents per kilowatt hour (as 
     adjusted for inflation under subsection (g)); or
       ``(C) a combination of activities described in 
     subparagraphs (A) and (B).
       ``(3) Special rule.--Nothing in this section authorizes or 
     requires the Tennessee Valley Authority to make ``any capital 
     expenditure on new generating capacity, except to the extent 
     that budget authority for the expenditure is provided in 
     advance in an appropriations Act''.
       ``(b) Clean Energy Credit Trading Program.--
       ``(1) In general.--Not later than July 1, 2009, the 
     Secretary shall establish a clean energy credit trading 
     program under which electric utilities shall submit to the 
     Secretary clean energy credits to certify the compliance of 
     the electric utilities with respect to obligations under 
     subsection (a)(1).
       ``(2) Administration.--As part of the program, the 
     Secretary shall--
       ``(A) issue tradeable clean energy credits to generators of 
     electric energy from new clean energy;
       ``(B) issue nontradeable clean energy credits to generators 
     of electric energy from existing clean energy;
       ``(C) issue clean energy credits to electric utilities 
     associated with State portfolio standard compliance 
     mechanisms pursuant to paragraph (6);
       ``(D) ensure that a kilowatt hour, including the associated 
     clean energy credit, shall be used only once for purposes of 
     compliance with this Act;
       ``(E) allow double credits for generation from facilities 
     on Indian land, and triple credits for generation from small 
     renewable distributed generators (meaning those no larger 
     than 1 megawatt); and
       ``(F) ensure that, with respect to a purchaser that, as of 
     the date of enactment of this section, has a purchase 
     agreement from a clean energy facility placed in service 
     before that date, the credit associated with the generation 
     of clean energy under the contract is issued to the purchaser 
     of the electric energy, to the extent that the contract does 
     not already provide for the allocation of the credit.
       ``(3) Duration.--A credit described in subparagraph (A), 
     (B), or (C) of paragraph (2) may only be used for compliance 
     with this section during the 3-year period beginning on the 
     date of issuance of the credit.
       ``(4) Transfers.--An electric utility that holds credits in 
     excess of the quantity of credits needed to comply with 
     subsection (a) may transfer the credits to another electric 
     utility in the same utility holding company system.
       ``(5) Delegation of market function.--The Secretary may 
     delegate to an appropriate market-making entity the 
     administration of a national tradeable clean energy credit 
     market for purposes of creating a transparent national market 
     for the sale or trade of clean energy credits.
       ``(6) Credit for state alternative compliance payments and 
     other financial compliance mechanisms.--
       ``(A) In general.--In the case of an electric utility 
     subject to a State portfolio standard program that requires 
     the generation of electricity from clean energy and makes 
     alternative compliance payments under the program in 
     satisfaction of applicable State requirements or complies by 
     other financial mechanisms, the Secretary shall issue clean 
     energy credits to the electric utility in an amount that 
     corresponds to the amount of the State alternative compliance 
     payment or other financial compliance mechanism as though 
     that payment or mechanism had been made to the Secretary 
     under this subsection.
       ``(B) Application.--A clean energy credit issued under 
     subparagraph (A) may be--
       ``(i) applied against the required annual percentage of an 
     electric utility; or
       ``(ii) transferred for use only by an associate company of 
     the electric utility.

[[Page 15649]]

       ``(c) Enforcement.--
       ``(1) Civil penalties.--Any electric utility that fails to 
     meet the compliance requirements of subsection (a) shall be 
     subject to a civil penalty.
       ``(2) Amount of penalty.--The amount of the civil penalty 
     shall be determined by multiplying the number of kilowatt-
     hours of electric energy sold to electric consumers in 
     violation of subsection (a) by the greater of--
       ``(A) the value of the alternative compliance payment, as 
     adjusted to reflect changes for the 12-month period ending 
     the preceding November 30 in the Consumer Price Index for All 
     Urban Consumers published by the Bureau of Labor Statistics 
     of the Department of Labor; or
       ``(B) 200 percent of the average market value of clean 
     energy credits during the year in which the violation 
     occurred.
       ``(3) Procedure for assessing penalty.--Subject to 
     subsection (h)(2), the Secretary shall assess a civil penalty 
     under this subsection in accordance with the procedures 
     prescribed by section 333(d) of the Energy Policy and 
     Conservation Act of 1954 (42 U.S.C. 6303).
       ``(d) State Clean Energy Account Program.--
       ``(1) In general.--There is established in the Treasury a 
     State clean energy account program.
       ``(2) Deposits.--All money collected by the Secretary from 
     the sale of clean energy credits, the provision of 
     alternative compliance payments, and the assessment of civil 
     penalties under this section shall be deposited into the 
     clean energy account established pursuant to this subsection.
       ``(3) Transfer.--Amounts deposited in the State clean 
     energy account shall be transferred, subject to 
     appropriations, to the State in which the amounts were 
     collected.
       ``(4) Use.--Amounts transferred to a State under paragraph 
     (3) shall be used by the State for the purposes of promoting 
     clean energy production, including programs that promote 
     technologies that reduce the use of electricity at customer 
     sites.
       ``(e) Rules.--The Secretary shall issue rules implementing 
     this section not later than 1 year after the date of 
     enactment of this section.
       ``(f) Exemptions.--This section shall not apply in any 
     calendar year to an electric utility--
       ``(1) that sold less than 4,000,000 megawatt-hours of 
     electric energy to electric consumers during the preceding 
     calendar year; or
       ``(2) in Hawaii.
       ``(g) Inflation Adjustment.--Not later than December 31 of 
     each year beginning in 2008, the Secretary shall adjust for 
     inflation the rate of alternative compliance payments under 
     subsection (a)(2)(B) and the amount of the civil penalty per 
     kilowatt-hour under subsection (c)(2).
       ``(h) Waiver.--
       ``(1) In general.--The Secretary may waive the compliance 
     requirements of subsection (a) with respect to an electric 
     utility if the Secretary determines that the electric utility 
     cannot meet the requirements for reason of force majeure in 
     effect on any date after the date that is 5 years before the 
     date of enactment of this section.
       ``(2) Civil penalties.--
       ``(A) In general.--The Secretary may mitigate or waive a 
     civil penalty under subsection (c) if the electric utility 
     was unable to comply with subsection (a) for reasons outside 
     of the reasonable control of the utility in effect after the 
     date of enactment of this section.
       ``(B) Amount of reduction.--The Secretary shall reduce the 
     amount of any penalty determined under subsection (c)(2) by 
     an amount paid by the electric utility to a State for failure 
     to comply with the requirement of a State clean energy 
     program.
       ``(i) Governor Certification.--On submission by the 
     Governor of a State to the Secretary of a notification that 
     the State has in effect, and is enforcing, a State portfolio 
     standard that substantially contributes to the overall goals 
     of the Federal clean portfolio standard under this section, 
     the State may elect not to participate in the program under 
     this section.
       ``(j) Definitions.--In this section:
       ``(1) Base amount of electricity.--The term `base amount of 
     electricity' means the total amount of electricity sold by an 
     electric utility to electric consumers in a calendar year, 
     excluding--
       ``(A) electricity generated by a hydroelectric facility 
     (including a pumped storage facility but excluding 
     incremental hydropower);
       ``(B) electricity generated through the incineration of 
     municipal solid waste; and
       ``(C) except as provided in paragraph (9), electricity 
     generated from nuclear power.
       ``(2) Demand response.--The term `demand response' means a 
     reduction in electricity usage by end-use customers as 
     compared to the normal consumption patterns of the customers, 
     or shifts in electric usage by end-use customers from on-peak 
     hours of an electric utility to off-peak hours of an electric 
     utility that do not result in increased usage, in response to 
     an incentive payment or a program to reduce electricity use 
     at any time at which--
       ``(A) wholesale market prices are high; or
       ``(B) system reliability is jeopardized.
       ``(3) Distributed generation facility.--The term 
     `distributed generation facility' means a facility at a 
     customer site.
       ``(4) Energy efficiency.--The term `energy efficiency' 
     means--
       ``(A) demand response; or
       ``(B) the use of less energy in homes, buildings, or 
     industry through methods such as the installation of more 
     efficient equipment, appliances, or other technologies to 
     achieve the same level of function or economic activity 
     achieved on the date of enactment of this section.
       ``(5) Existing clean energy.--The term `existing clean 
     energy' means, except as provided in paragraph (9)(B), 
     electric energy generated at a facility (including a 
     distributed generation facility) placed in service prior to 
     January 1, 2001, from solar, wind, or geothermal energy, 
     ocean energy, biomass (as defined in section 203(a) of the 
     Energy Policy Act of 2005 (42 U.S.C. 15852(a))), or landfill 
     gas.
       ``(6) Geothermal energy.--The term `geothermal energy' 
     means energy derived from a geothermal deposit (within the 
     meaning of section 613(e)(2) of the Internal Revenue Code of 
     1986).
       ``(7) Incremental geothermal production.--
       ``(A) In general.--The term `incremental geothermal 
     production' means for any year the excess of--
       ``(i) the total kilowatt hours of electricity produced from 
     a facility (including a distributed generation facility) 
     using geothermal energy; over
       ``(ii) the average annual kilowatt hours produced at such 
     facility for 5 of the previous 7 calendar years before the 
     date of enactment of this section after eliminating the 
     highest and the lowest kilowatt hour production years in such 
     7-year period.
       ``(B) Special rule.--A facility described in subparagraph 
     (A) that was placed in service at least 7 years before the 
     date of enactment of this section shall commencing with the 
     year in which such date of enactment occurs, reduce the 
     amount calculated under subparagraph (A)(ii) each year, on a 
     cumulative basis, by the average percentage decrease in the 
     annual kilowatt hour production for the 7-year period 
     described in subparagraph (A)(ii) with such cumulative sum 
     not to exceed 30 percent.
       ``(8) Incremental hydropower.--The term `incremental 
     hydropower' means additional energy generated as a result of 
     efficiency improvements or capacity additions made on or 
     after January 1, 2001, or the effective date of an existing 
     applicable State clean portfolio standard program at a 
     hydroelectric facility that was placed in service before that 
     date. The term does not include additional energy generated 
     as a result of operational changes not directly associated 
     with efficiency improvements or capacity additions. 
     Efficiency improvements and capacity additions shall be 
     measured on the basis of the same water flow information used 
     to determine a historic average annual generation baseline 
     for the hydroelectric facility and certified by the Secretary 
     or the Federal Energy Regulatory Commission.
       ``(9) New clean energy.--The term `new clean energy' 
     means--
       ``(A) electric energy generated at a facility (including a 
     distributed generation facility) placed in service on or 
     after January 1, 2001, from--
       ``(i) solar, wind, or geothermal energy or ocean energy;
       ``(ii) biomass (as defined in section 203(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 15852(b));
       ``(iii) landfill gas;
       ``(iv) new hydropower that does not require the 
     construction of any dam;
       ``(v) new nuclear generation;
       ``(vi) a fuel cell;
       ``(vii) energy efficiency or demand response as result of 
     programs conducted by the electric utility, as measured and 
     verified by a method acceptable to the Secretary;
       ``(viii) an inherently low-emission technology that 
     captures and stores carbon; or
       ``(ix) such other clean energy sources as the Secretary 
     determines, by regulation, will advance the goals of this 
     section; and
       ``(B) for electric energy generated at a facility 
     (including a distributed generation facility) placed in 
     service before January 1, 2001--
       ``(i) the additional energy above the average generation 
     during the period beginning on January 1, 1998, and ending on 
     January 1, 2001, at the facility from--

       ``(I) solar or wind energy or ocean energy;
       ``(II) biomass (as defined in section 203(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 15852(b));
       ``(III) landfill gas;
       ``(IV) incremental hydropower; or
       ``(V) nuclear generation; or

       ``(ii) incremental geothermal production.
       ``(10) Ocean energy.--The term `ocean energy' includes 
     current, wave, tidal, and thermal energy.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     prec. 2601) is amended by adding at the end of the items 
     relating to title VI the following:

``Sec. 610. Federal clean portfolio standard.''.


[[Page 15650]]

                                 ______
                                 
  SA 1539. Mr. AKAKA (for himself, Ms. Murkowski, and Ms. Snowe) 
submitted an amendment intended to be proposed by him to the bill H.R. 
6, to reduce our Nation's dependency on foreign oil by investing in 
clean, renewable, and alternative energy resources, promoting new 
emerging energy technologies, developing greater efficiency, and 
creating a Strategic Energy Efficiency and Renewables Reserve to invest 
in alternative energy, and for other purposes; which was ordered to lie 
on the table; as follows:

       At the appropriate place, insert the following:

      TITLE _--MARINE AND HYDROKINETIC RENEWABLE ENERGY PROMOTION

     SEC. _01. DEFINITION.

       For purposes of this title, the term ``marine and 
     hydrokinetic renewable energy'' means electrical energy 
     from--
       (1) waves, tides, and currents in oceans, estuaries, and 
     tidal areas;
       (2) free flowing water in rivers, lakes, and streams;
       (3) free flowing water in man-made channels, including 
     projects that utilize nonmechanical structures to accelerate 
     the flow of water for electric power production purposes; and
       (4) differentials in ocean temperature (ocean thermal 
     energy conversion).
     The term shall not include energy from any source that 
     utilizes a dam, diversionary structure, or impoundment for 
     electric power purposes, except as provided in paragraph (3).

     SEC. _02. RESEARCH AND DEVELOPMENT.

       (a) Program.--The Secretary of Energy, in consultation with 
     the Secretary of Commerce and the Secretary of the Interior, 
     shall establish a program of marine and hydrokinetic 
     renewable energy research focused on--
       (1) developing and demonstrating marine and hydrokinetic 
     renewable energy technologies;
       (2) reducing the manufacturing and operation costs of 
     marine and hydrokinetic renewable energy technologies;
       (3) increasing the reliability and survivability of marine 
     and hydrokinetic renewable energy facilities;
       (4) integrating marine and hydrokinetic renewable energy 
     into electric grids;
       (5) identifying opportunities for cross fertilization and 
     development of economies of scale between offshore wind and 
     marine and hydrokinetic renewable energy sources;
       (6) identifying, in consultation with the Secretary of 
     Commerce and the Secretary of the Interior, the environmental 
     impacts of marine and hydrokinetic renewable energy 
     technologies and ways to address adverse impacts, and 
     providing public information concerning technologies and 
     other means available for monitoring and determining 
     environmental impacts; and
       (7) standards development, demonstration, and technology 
     transfer for advanced systems engineering and system 
     integration methods to identify critical interfaces.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy for carrying 
     out this section $50,000,000 for each of the fiscal years 
     2008 through 2017.

     SEC. _03. ADAPTIVE MANAGEMENT AND ENVIRONMENTAL FUND.

       (a) Findings.--The Congress finds that--
       (1) the use of marine and hydrokinetic renewable energy 
     technologies can avoid contributions to global warming gases, 
     and such technologies can be produced domestically;
       (2) marine and hydrokinetic renewable energy is a nascent 
     industry; and
       (3) the United States must work to promote new renewable 
     energy technologies that reduce contributions to global 
     warming gases and improve our country's domestic energy 
     production in a manner that is consistent with environmental 
     protection, recreation, and other public values.
       (b) Establishment.--The Secretary of Energy shall establish 
     an Adaptive Management and Environmental Fund, and shall lend 
     amounts from that fund to entities described in subsection 
     (f) to cover the costs of projects that produce marine and 
     hydrokinetic renewable energy. Such costs include design, 
     fabrication, deployment, operation, monitoring, and 
     decommissioning costs. Loans under this section may be 
     subordinate to project-related loans provided by commercial 
     lending institutions to the extent the Secretary of Energy 
     considers appropriate.
       (c) Reasonable Access.--As a condition of receiving a loan 
     under this section, a recipient shall provide reasonable 
     access, to Federal or State agencies and other research 
     institutions as the Secretary considers appropriate, to the 
     project area and facilities for the purposes of independent 
     environmental research.
       (d) Public Availability.--The results of any assessment or 
     demonstration paid for, in whole or in part, with funds 
     provided under this section shall be made available to the 
     public, except to the extent that they contain information 
     that is protected from disclosure under section 552(b) of 
     title 5, United States Code.
       (e) Repayment of Loans.--
       (1) In general.--The Secretary of Energy shall require a 
     recipient of a loan under this section to repay the loan, 
     plus interest at a rate of 2.1 percent per year, over a 
     period not to exceed 20 years, beginning after the commercial 
     generation of electric power from the project commences. Such 
     repayment shall be required at a rate that takes into account 
     the economic viability of the loan recipient and ensures 
     regular and timely repayment of the loan.
       (2) Beginning of repayment period.--No repayments shall be 
     required under this subsection until after the project 
     generates net proceeds. For purposes of this paragraph, the 
     term ``net proceeds'' means proceeds from the commercial sale 
     of electricity after payment of project-related costs, 
     including taxes and regulatory fees that have not been paid 
     using funds from a loan provided for the project under this 
     section.
       (3) Termination.--Repayment of a loan made under this 
     section shall terminate as of the date that the project for 
     which the loan was provided ceases commercial generation of 
     electricity if a governmental permitting authority has 
     ordered the closure of the facility because of a finding that 
     the project has unacceptable adverse environmental impacts, 
     except that the Secretary shall require a loan recipient to 
     continue making loan repayments for the cost of equipment, 
     obtained using funds from the loan that have not otherwise 
     been repaid under rules established by the Secretary, that is 
     utilized in a subsequent project for the commercial 
     generation of electricity.
       (f) Adaptive Management Plan.--In order to receive a loan 
     under this section, an applicant for a Federal license or 
     permit to construct, operate, or maintain a marine or 
     hydrokinetic renewable energy project shall provide to the 
     Federal agency with primary jurisdiction to issue such 
     license or permit an adaptive management plan for the 
     proposed project. Such plan shall--
       (1) be prepared in consultation with other parties to the 
     permitting or licensing proceeding, including all Federal, 
     State, municipal, and tribal agencies with authority under 
     applicable Federal law to require or recommend design or 
     operating conditions, for protection, mitigation, and 
     enhancement of fish and wildlife resources, water quality, 
     navigation, public safety, land reservations, or recreation, 
     for incorporation into the permit or license;
       (2) set forth specific and measurable objectives for the 
     protection, mitigation, and enhancement of fish and wildlife 
     resources, water quality, navigation, public safety, land 
     reservations, or recreation, as required or recommended by 
     governmental agencies described in paragraph (1), and shall 
     require monitoring to ensure that these objectives are met;
       (3) provide specifically for the modification or, if 
     necessary, removal of the marine or hydrokinetic renewable 
     energy project based on findings by the licensing or 
     permitting agency that the marine or hydrokinetic renewable 
     energy project has not attained or will not attain the 
     specific and measurable objectives set forth in paragraph 
     (2); and
       (4) be approved and incorporated in the Federal license or 
     permit.
       (g) Sunset.--The Secretary of Energy shall transmit a 
     report to the Congress when the Secretary of Energy 
     determines that the technologies supported under this title 
     have achieved a level of maturity sufficient to enable the 
     expiration of the programs under this title. The Secretary of 
     Energy shall not make any new loans under this section after 
     the report is transmitted under this subsection.

     SEC. _04. PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT.

       The Secretary of Commerce and the Secretary of the Interior 
     shall, in cooperation with the Federal Energy Regulatory 
     Commission and the Secretary of Energy, and in consultation 
     with appropriate State agencies, jointly prepare programmatic 
     environmental impact statements which contain all the 
     elements of an environmental impact statement under section 
     102 of the National Environmental Policy Act of 1969 (42 
     U.S.C. 4332), regarding the impacts of the deployment of 
     marine and hydrokinetic renewable energy technologies in the 
     navigable waters of the United States. One programmatic 
     environmental impact statement shall be prepared under this 
     section for each of the Environmental Protection Agency 
     regions of the United States. The agencies shall issue the 
     programmatic environmental impact statements under this 
     section not later than 18 months after the date of enactment 
     of this Act. The programmatic environmental impact statements 
     shall evaluate among other things the potential impacts of 
     site selection on fish and wildlife and related habitat. 
     Nothing in this section shall operate to delay consideration 
     of any application for a license or permit for a marine and 
     hydrokinetic renewable energy technology project.

                                 ______
                                 
  SA 1540. Mr. CARPER (for himself and Mr. Biden) submitted an 
amendment intended to be proposed to amendment SA 1502 proposed by Mr. 
Reid to the bill H.R. 6, to reduce our

[[Page 15651]]

Nation's dependency on foreign oil by investing in clean, renewable, 
and alternative energy resources, promoting new emerging energy 
technologies, developing greater efficiency, and creating a Strategic 
Energy Efficiency and Renewables Reserve to invest in alternative 
energy, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 59, after line 21, add the following:

     SEC. 151. STUDY OF OFFSHORE WIND RESOURCES.

       (a) Definitions.--In this section:
       (1) Director.--The term ``Director'' means the Director of 
     the Minerals Management Service.
       (2) Eligible institution.--The term ``eligible 
     institution'' means a college or university that--
       (A) as of the date of enactment of this Act, has an 
     offshore wind power research program; and
       (B) is located in a region of the United States that is in 
     reasonable proximity to the eastern outer Continental Shelf, 
     as determined by the Director.
       (b) Study.--The Director, in cooperation with an eligible 
     institution, as selected by the Director, shall conduct a 
     study to assess each offshore wind resource located in the 
     region of the eastern outer Continental Shelf.
       (c) Report.--Upon completion of the study under subsection 
     (b), the Director shall submit to Congress a report that 
     includes--
       (1) a description of--
       (A) the locations and total power generation resources of 
     the best offshore wind resources located in the region of the 
     eastern outer Continental Shelf, as determined by the 
     Director;
       (B) based on conflicting zones relating to any 
     infrastructure that, as of the date of enactment of this Act, 
     is located in close proximity to any offshore wind resource, 
     the likely exclusion zones of each offshore wind resource 
     described in subparagraph (A);
       (C) the relationship of the temporal variation of each 
     offshore wind resource described in subparagraph (A) with--
       (i) any other offshore wind resource; and
       (ii) with loads and corresponding system operator markets;
       (D) the geological compatibility of each offshore wind 
     resource described in subparagraph (A) with any potential 
     technology relating to sea floor towers; and
       (E) with respect to each area in which an offshore wind 
     resource described in subparagraph (A) is located, the 
     relationship of the authority under any coastal management 
     plan of the State in which the area is located with the 
     Federal Government; and
       (2) recommendations on the manner by which to handle 
     offshore wind intermittence.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000, to 
     remain available until expended.
                                 ______
                                 
  SA 1541. Mr. SMITH (for himself, Ms. Cantwell, Ms. Murkowski, and Mr. 
Wyden) submitted an amendment intended to be proposed to amendment SA 
1502 proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's 
dependency on foreign oil by investing in clean, renewable, and 
alternative energy resources, promoting new emerging energy 
technologies, developing greater efficiency, and creating a Strategic 
Energy Efficiency and Renewables Reserve to invest in alternative 
energy, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 47, after line 23, insert the following:

     SEC. 131. NATIONAL OCEAN ENERGY RESEARCH CENTERS.

       (a) In General.--Subject to the availability of 
     appropriations under subsection (d), the Secretary shall 
     establish not less than 1, and not more than 6, national 
     ocean energy research centers at institutions of higher 
     education for the purpose of conducting research, 
     development, demonstration, and testing of ocean energy 
     technologies and associated equipment.
       (b) Evaluations.--Each Center shall (in consultation with 
     developers, utilities, and manufacturers) conduct evaluations 
     of technologies and equipment described in subsection (a).
       (c) Location.--In establishing centers under this section, 
     the Secretary shall locate the centers in coastal regions of 
     the United State in a manner that, to the maximum extent 
     practicable, is geographically dispersed.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriate such sums as are necessary to carry out 
     this section.
                                 ______
                                 
  SA 1542. Mr. BROWNBACK submitted an amendment intended to be proposed 
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, developing greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 161, between lines 2 and 3, insert the following:

     SEC. 269. AGRICULTURAL BYPRODUCT USE EXPOSITION.

       The Secretary of Agriculture shall establish a program 
     under which the Secretary of Agriculture shall develop, 
     solicit applications for participation in, advertise, and 
     host, at such location as the Secretary determines to be 
     appropriate, an exposition at which entities can demonstrate 
     new products, such as plastics, carpets, disposable dishes, 
     and cosmetics, produced by the entities from agricultural 
     byproducts.
                                 ______
                                 
  SA 1543. Mr. BAYH (for himself, Mr. Brownback, Mr. Lieberman, Mr. 
Coleman, and Mr. Salazar) submitted an amendment intended to be 
proposed to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, 
to reduce our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, developing greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 262, line 16, strike ``(8)'' and insert ``(16)''.
       On page 262, strike lines 17 and 18, and insert the 
     following:
       ``(17) `E85' means a fuel blend containing 85 percent 
     ethanol and 15 percent gasoline by volume.
       ``(18) `flexible fuel automobile' means--
       ``(A) a GEM flex fuel vehicle; or
       ``(B) a vehicle warranted by the manufacturer to operate on 
     biodiesel.
       ``(19) `GEM flex fuel vehicle' means a motor vehicle 
     warranted by the manufacturer to operate on gasoline and E85 
     and M85.
       ``(20) `M85' means a fuel blend containing 85 percent 
     methanol and 15 percent gasoline by volume.''.
                                 ______
                                 
  SA 1544. Mr. CASEY (for himself and Mr. Webb) submitted an amendment 
intended to be proposed to amendment SA 1502 proposed by Mr. Reid to 
the bill H.R. 6, to reduce our Nation's dependency on foreign oil by 
investing in clean, renewable, and alternative energy resources, 
promoting new emerging energy technologies, developing greater 
efficiency, and creating a Strategic Energy Efficiency and Renewables 
Reserve to invest in alternative energy, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

        TITLE VIII--ENERGY SECURITY AND CORPORATE ACCOUNTABILITY

     SEC. 801. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This title may be cited as the ``Energy 
     Security and Corporate Accountability 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.

     SEC. 802. 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 (as 
     defined in section 167(h)(5)(B)) for its last taxable year 
     ending in calendar year 2006, 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.

[[Page 15652]]

       (2) Barrel-of-oil equivalent.--The term ``barrel-of-oil 
     equivalent'' has the meaning given such term by section 45K.
       (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 (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.

     SEC. 803. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES 
                   WHICH ARE DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 (relating to credit for taxes 
     of foreign countries and of possessions of the United States) 
     is amended by redesignating subsection (m) as subsection (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 (as defined 
     in section 167(h)(5)(B)) 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.''.
       (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. 804. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL 
                   EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL 
                   COMPANIES.

       (a) In General.--Subparagraph (A) of section 167(h)(5) 
     (relating to special rule for major integrated oil companies) 
     is amended by striking ``5-year'' and inserting ``7-year''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.

     SEC. 805. SUSPENSION OF ROYALTY RELIEF.

       (a) Repeals.--Sections 344 and 345 of the Energy Policy Act 
     of 2005 (42 U.S.C. 15904, 15905) 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. 806. NATIONAL ENERGY SECURITY RESEARCH AND INVESTMENT 
                   RESERVE.

       (a) Establishment.--For budgetary purposes, for each fiscal 
     year, an amount equal to the total net amount of savings to 
     the Federal Government for the fiscal year resulting from the 
     amendments made by sections 802, 803, 804, and 805, as 
     determined by the Secretary of the Treasury, shall be held in 
     a separate account in the Treasury of the United States, to 
     be known as the ``National Energy Security Research and 
     Investment Reserve'' (referred to in this section as the 
     ``Reserve'').
       (b) Use.--Of the amounts in the Reserve--
       (1) 50 percent shall be available to offset the cost of 
     legislation enacted after the date of enactment of this Act 
     to carry out energy research in the United States, including 
     research relating to--
       (A) ethanol, and
       (B) biodiesel, and
       (2) 50 percent shall be available to offset the cost of 
     legislation enacted after the date of enactment of this Act 
     to carry out the development, purchase, and installation of 
     infrastructure (including new fueling pumps, retrofitting of 
     existing fueling pumps, and equipment necessary for the 
     transportation of biofuels) necessary to deliver new fuels to 
     consumers.
       (c) Procedure for Adjustments.--
       (1) Budget committee chairman.--After the reporting of a 
     bill or joint resolution, or the offering of an amendment to 
     the bill or joint resolution or the submission of a 
     conference report for the bill or joint resolution, providing 
     funding for the purposes described in subsection (b) in 
     excess of the amounts provided for those purposes for fiscal 
     year 2007, the chairman of the Committee on the Budget of the 
     applicable House of Congress shall make the adjustments 
     required under paragraph (2) for the amount of new budget 
     authority and outlays in the measure and the outlays flowing 
     from that budget authority.
       (2) Matters to be adjusted.--The adjustments referred to in 
     paragraph (1) are to be made to--
       (A) the discretionary spending limits, if any, set forth in 
     the appropriate concurrent resolution on the budget,
       (B) the allocations made pursuant to the appropriate 
     concurrent resolution on the budget pursuant to section 
     302(a) of the Congressional Budget Act of 1974 (2 U.S.C. 
     633(a)), and
       (C) the budget aggregates contained in the appropriate 
     concurrent resolution on the budget as required by section 
     301(a) of the Congressional Budget Act of 1974 (2 U.S.C. 
     632(a)).
       (3) Amounts of adjustments.--The adjustments referred to in 
     paragraphs (1) and (2) shall not exceed the receipts 
     estimated by the Congressional Budget Office that are 
     attributable to sections 802, 803, 804, and 805 (and the 
     amendments made by such sections) for the fiscal year in 
     which the adjustments are made.

                                 ______
                                 
  SA 1545. Mr. ENZI submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, developing greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 21, strike lines 7 through 11 and insert the 
     following:
       (B) implementation of the requirement would significantly 
     increase the price of agricultural food products or livestock 
     feed products;
       (C) implementation of the requirement would have a 
     significantly detrimental impact on the deliverability of 
     materials, goods, and products (other than renewable fuel), 
     by rail or truck; or
       (D) extreme and unusual circumstances exist that prevent 
     distribution of an adequate supply of domestically-produced 
     renewable fuel to consumers in the United States.
                                 ______
                                 
  SA 1546. Mr. DeMINT submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, developing greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. LIMITATIONS ON LEGISLATION THAT WOULD INCREASE 
                   NATIONAL AVERAGE FUEL PRICES FOR AUTOMOBILES.

       (a) Point of Order.--
       (1) In general.--If the Senate is considering legislation, 
     upon a point of order being made by any Senator against 
     legislation, or any part of the legislation, that it has been 
     determined in accordance with paragraph (2) that the 
     legislation, if enacted, would result in an increase in the 
     national average fuel price for automobiles, and the point of 
     order is sustained by the Presiding Officer, the Senate shall 
     cease consideration of the legislation.

[[Page 15653]]

       (2) Determination.--The determination described in this 
     paragraph means a determination by the Director of the 
     Congressional Budget Office, in consultation with the Energy 
     Information Administration and other appropriate Government 
     agencies, that is made upon the request of a Senator for 
     review of legislation, that the legislation, or part of the 
     legislation, would, if enacted, result in an increase in the 
     national average fuel price for automobiles.
       (3) Legislation.--In this section the term ``legislation'' 
     means a bill, joint resolution, amendment, motion, or 
     conference report.
       (b) Waivers and Appeals.--
       (1) Waivers.--Before the Presiding Officer rules on a point 
     of order described in subsection (a)(1), any Senator may move 
     to waive the point of order and the motion to waive shall not 
     be subject to amendment. A point of order described in 
     subsection (a)(1) is waived only by the affirmative vote of 
     60 Members of the Senate, duly chosen and sworn.
       (2) Appeals.--After the Presiding Officer rules on a point 
     of order described in subsection (a)(1), any Senator may 
     appeal the ruling of the Presiding Officer on the point of 
     order as it applies to some or all of the provisions on which 
     the Presiding Officer ruled. A ruling of the Presiding 
     Officer on a point of order described in subsection (a)(1) is 
     sustained unless 60 Members of the Senate, duly chosen and 
     sworn, vote not to sustain the ruling.
       (3) Debate.--Debate on the motion to waive under paragraph 
     (1) or on an appeal of the ruling of the Presiding Officer 
     under paragraph (2) shall be limited to 1 hour. The time 
     shall be equally divided between, and controlled by, the 
     Majority leader and the Minority Leader of the Senate, or 
     their designees.

                                 ______
                                 
  SA 1547. Mr. TESTER (for himself, Mr. Bingaman, Mr. Reid, Ms. 
Murkowski, Mr. Stevens, Mr. Salazar, Mr. Akaka, Mr. Sanders, and Ms. 
Snowe) submitted an amendment intended to be proposed to amendment SA 
1502 proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's 
dependency on foreign oil by investing in clean, renewable, and 
alternative energy resources, promoting new emerging energy 
technologies, developing greater efficiency, and creating a Strategic 
Energy Efficiency and Renewables Reserve to invest in alternative 
energy, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end, add the following:

                     TITLE VIII--GEOTHERMAL ENERGY

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``National Geothermal 
     Initiative Act of 2007''.

     SEC. 802. FINDINGS.

       Congress finds that--
       (1) domestic geothermal resources have the potential to 
     provide vast amounts of clean, renewable, and reliable energy 
     to the United States;
       (2) Federal policies and programs are critical to achieving 
     the potential of those resources;
       (3) Federal tax policies should be modified to 
     appropriately support the longer lead-times of geothermal 
     facilities and address the high risks of geothermal 
     exploration and development;
       (4) sustained and expanded research programs are needed--
       (A) to support the goal of increased energy production from 
     geothermal resources;
       (B) to develop and demonstrate the potential for geothermal 
     heat exchange technologies for heating, cooling, and energy 
     efficiency; and
       (C) to develop the technologies that will enable commercial 
     production of energy from more geothermal resources;
       (5) a comprehensive national resource assessment is needed 
     to support policymakers and industry needs;
       (6) a national exploration and development technology and 
     information center should be established to support the 
     achievement of increased geothermal energy production; and
       (7) implementation and completion of geothermal and other 
     renewable initiatives on public land in the United States is 
     critical, consistent with the principles and requirements of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1701 et seq.) and other applicable law.

     SEC. 803. NATIONAL GOAL.

       Congress declares that it shall be a national goal to 
     achieve at least 15 percent of total electrical energy 
     production in the United States from geothermal resources by 
     not later than 2030.

     SEC. 804. DEFINITIONS.

       In this title:
       (1) Initiative.--The term ``Initiative'' means the national 
     geothermal initiative established by section 805(a).
       (2) National goal.--The term ``national goal'' means the 
     national goal of increased energy production from geothermal 
     resources described in section 803.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 805. NATIONAL GEOTHERMAL INITIATIVE.

       (a) Establishment.--There is established a national 
     geothermal initiative under which the Federal Government 
     shall seek to achieve the national goal.
       (b) Federal Support and Coordination.--In carrying out the 
     Initiative, each Federal agency shall give priority to 
     programs and efforts necessary to support achievement of the 
     national goal to the extent consistent with applicable law.
       (c) Energy and Interior Goals.--
       (1) In general.--In carrying out the Initiative, the 
     Secretary and the Secretary of the Interior shall establish 
     and carry out policies and programs--
       (A) to characterize the complete geothermal resource base 
     (including engineered geothermal systems) of the United 
     States by not later than 2010;
       (B) to sustain an annual growth rate in the use of 
     geothermal power, heat, and heat pump applications of at 
     least 10 percent;
       (C) to demonstrate state-of-the-art energy production from 
     the full range of geothermal resources in the United States;
       (D) to achieve new power or commercial heat production from 
     geothermal resources in at least 25 States;
       (E) to develop the tools and techniques to construct an 
     engineered geothermal system power plant; and
       (F) to deploy geothermal heat exchange technologies in 
     Federal buildings for heating, cooling, and energy 
     efficiency.
       (2) Report to congress.--Not later than 1 year after the 
     date of enactment of this Act, and every 3 years thereafter, 
     the Secretary and the Secretary of the Interior shall jointly 
     submit to the appropriate Committees of Congress a report 
     that describes--
       (A) the proposed plan to achieve the goals described in 
     paragraph (1); and
       (B) a description of the progress during the period covered 
     by the report toward achieving those goals.
       (d) Geothermal Research, Development, Demonstration, and 
     Commercial Application.--
       (1) In general.--The Secretary shall carry out a program of 
     geothermal research, development, demonstration, outreach and 
     education, and commercial application to support the 
     achievement of the national goal.
       (2) Requirements of program.--In carrying out the 
     geothermal research program described in paragraph (1), the 
     Secretary shall--
       (A) prioritize funding for the discovery and 
     characterization of geothermal resources;
       (B) expand funding for cost-shared drilling;
       (C)(i) establish, at a national laboratory or university 
     research center selected by the Secretary, a national 
     geothermal exploration research and information center;
       (ii) support development and application of new exploration 
     and development technologies through the center; and
       (iii) in cooperation with the Secretary of the Interior, 
     disseminate geological and geophysical data to support 
     geothermal exploration activities through the center;
       (D) support cooperative programs with and among States, 
     including with the Great Basin Center for Geothermal Energy, 
     the Intermountain West Geothermal Consortium, and other 
     similar State and regional initiatives, to expand knowledge 
     of the geothermal resource base of the United States and 
     potential applications of that resource base;
       (E) improve and advance high-temperature and high-pressure 
     drilling, completion, and instrumentation technologies 
     benefiting geothermal well construction;
       (F) demonstrate geothermal applications in settings that, 
     as of the date of enactment of this Act, are noncommercial;
       (G) research, develop, and demonstrate engineered 
     geothermal systems techniques for commercial application of 
     the technologies, including advances in--
       (i) reservoir stimulation;
       (ii) reservoir characterization, monitoring, and modeling;
       (iii) stress mapping;
       (iv) tracer development;
       (v) 3-dimensional tomography; and
       (vi) understanding seismic effects of deep drilling and 
     reservoir engineering;
       (H) support the development and application of the full 
     range of geothermal technologies and applications; and
       (I)(i) study the potential to apply geothermal heat 
     exchange technologies to new and existing Federal buildings; 
     and
       (ii) in cooperation with the Administrator of General 
     Services, develop and carry out 2 demonstration projects with 
     geothermal heat exchange technologies, of which--
       (I) 1 project shall involve the construction of a new 
     Federal building; and
       (II) 1 project shall involve the renovation of an existing 
     Federal building.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this 
     subsection--
       (A) $75,000,000 for fiscal year 2008;
       (B) $110,000,000 for each of fiscal years 2009 through 
     2012; and
       (C) for fiscal year 2013 and each fiscal year thereafter 
     through fiscal year 2030, such sums as are necessary.
       (e) Geothermal Assessment, Exploration Information, and 
     Priority Activities.--
       (1) Interior.--In carrying out the Initiative, the 
     Secretary of the Interior--

[[Page 15654]]

       (A) acting through the Director of the United States 
     Geological Survey, shall, not later than 2010--
       (i) conduct and complete a comprehensive nationwide 
     geothermal resource assessment that examines the full range 
     of geothermal resources in the United States; and
       (ii) submit to the appropriate committees of Congress a 
     report describing the results of the assessment; and
       (B) in planning and leasing, shall consider the national 
     goal established under this title.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary of the Interior to carry 
     out this subsection--
       (A) $15,000,000 for fiscal year 2008;
       (B) $25,000,000 for each of fiscal years 2009 to 2012; and
       (C) for fiscal year 2013 and each fiscal year thereafter 
     through fiscal year 2030, such sums as are necessary.

     SEC. 806. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM.

       Section 237 of the Energy Policy Act of 2005 (42 U.S.C. 
     15874) is amended by adding at the end the following:
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section--
       ``(1) $5,000,000 for each of fiscal years 2008 through 
     2013; and
       ``(2) such sums as are necessary for each of fiscal years 
     2014 through 2020.''.

     SEC. 807. INTERNATIONAL MARKET SUPPORT FOR GEOTHERMAL ENERGY 
                   DEVELOPMENT.

       (a) United States Agency for International Development.--
     The United States Agency for International Development, in 
     coordination with other appropriate Federal and multilateral 
     agencies, shall support international and regional 
     development to promote the use of geothermal resources, 
     including (as appropriate) the African Rift Geothermal 
     Development Facility.
       (b) United States Trade and Development Agency.--The United 
     States Trade and Development Agency shall support the 
     Initiative by--
       (1) encouraging participation by United States firms in 
     actions taken to carry out subsection (a); and
       (2) providing grants and other financial support for 
     feasibility and resource assessment studies.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 808. ALASKA GEOTHERMAL CENTER.

       (a) In General.--The Secretary may participate in a 
     consortium described in subsection (b) to address science and 
     science policy issues relating to the expanded discovery and 
     use of geothermal energy, including geothermal energy 
     generated from geothermal resources on public land.
       (b) Administration.--The consortium referred to in 
     subsection (a) shall--
       (1) be known as the ``Alaska Geothermal Center'';
       (2) be a regional consortium of institutions and government 
     agencies that focuses on building collaborative efforts 
     among--
       (A) institutions of higher education in the State of 
     Alaska;
       (B) other regional institutions of higher education; and
       (C) State agencies;
       (3) include--
       (A) the Energy Authority of the State of Alaska;
       (B) the Denali Commission established by section 303 of the 
     Denali Commission Act of 1998 (42 U.S.C. 3121 note; Public 
     Law 105-277); and
       (C) the University of Alaska-Fairbanks;
       (4) be hosted and managed by the University of Alaska-
     Fairbanks; and
       (5) have--
       (A) a director appointed by the head of the Energy 
     Authority of the State of Alaska; and
       (B) associate directors appointed by each participating 
     institution.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section for each of fiscal years 2008 through 2013.

                                 ______
                                 
  SA 1548. Mr. DURBIN submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, developing greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 143, after line 23, insert the following:
       ``(3) Legislative branch fleet.--The Architect of the 
     Capitol shall comply with the requirements of paragraph (1) 
     with respect to the fleet of vehicles under the control of 
     the legislative branch, subject to a waiver for security 
     reasons which shall be submitted in writing to the 
     appropriate oversight committees of Congress.
                                 ______
                                 
  SA 1549. Mr. KOHL (for himself, Mr. Feingold, and Mr. Burr) submitted 
an amendment intended to be proposed to amendment SA 1502 proposed by 
Mr. Reid to the bill H.R. 6, to reduce our Nation's dependency on 
foreign oil by investing in clean, renewable, and alternative energy 
resources, promoting new emerging energy technologies, developing 
greater efficiency, and creating a Strategic Energy Efficiency and 
Renewables Reserve to invest in alternative energy, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 161, between lines 2 and 3, insert the following:

     SEC. 269. USE OF HIGHLY ENERGY EFFICIENT COMMERCIAL WATER 
                   HEATING EQUIPMENT IN FEDERAL BUILDINGS.

       (a) In General.--Title 40, United States Code is amended--
       (1) by redesignating sections 3313 through 3315 as sections 
     3314 through 3316, respectively; and
       (2) by inserting after section 3312 the following:

     ``SEC. 3313. USE OF HIGHLY ENERGY-EFFICIENT COMMERCIAL WATER 
                   HEATING EQUIPMENT IN FEDERAL BUILDINGS.

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of General Services.
       ``(2) Highly energy-efficient commercial water heater.--The 
     term `highly energy-efficient commercial water heater' means 
     a commercial water heater that--
       ``(A) meets applicable standards for water heaters under 
     the Energy Star program established by section 324A of the 
     Energy Policy and Conservation Act (42 U.S.C. 6294a);
       ``(B) if installed in a public building, would (as 
     determined by the Administrator) enable the public building 
     to achieve the Leadership in Energy and Environmental Design 
     green building rating standard identified as silver by the 
     United States Green Building Council; or
       ``(C) has thermal efficiencies of not less than--
       ``(i) 90 percent for gas units with inputs of a rate that 
     is not higher than 500,000 British thermal units per hour; or
       ``(ii) 87 percent for gas units with inputs of a rate that 
     is higher than 500,000 British thermal units per hour.
       ``(b) Maintenance of Public Buildings.--Each commercial 
     water heater that is replaced by the Administrator in the 
     normal course of maintenance, or determined by the 
     Administrator to be replaceable to generate substantial 
     energy savings, shall be replaced, to the maximum extent 
     feasible (as determined by the Administrator) with a highly 
     energy-efficient commercial water heater.
       ``(c) Considerations.--In making a determination under this 
     section relating to the installation of a highly energy-
     efficient commercial water heater, the Administrator shall 
     consider--
       ``(1) the life-cycle cost effectiveness of the highly 
     energy-efficient commercial water heater;
       ``(2) the compatibility of the highly energy-efficient 
     commercial water heater with equipment that, on the date on 
     which the Administrator makes the determination, is installed 
     in the public building; and
       ``(3) whether the use of the highly energy-efficient 
     commercial water heater could interfere with the productivity 
     of any activity carried out in the public building.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on the date that is 180 days after the date of 
     enactment of this Act.

                                 ______
                                 
  SA 1550. Mr. WYDEN (for himself and Mr. Chambliss) submitted an 
amendment intended to be proposed to amendment SA 1502 proposed by Mr. 
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign 
oil by investing in clean, renewable, and alternative energy resources, 
promoting new emerging energy technologies, developing greater 
efficiency, and creating a Strategic Energy Efficiency and Renewables 
Reserve to invest in alternative energy, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

                      TITLE VIII--WISE ACT OF 2007

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Weighing Intelligence for 
     Smarter Energy Act of 2007'' or the ``WISE Act of 2007''.

     SEC. 802. FINDINGS.

       Congress makes the following findings:
       (1) The members of the intelligence community in the United 
     States, most notably the National Intelligence Council, the 
     Office of Intelligence and Counterintelligence of the 
     Department of Energy, and the Office of Transnational Issues 
     of the Central Intelligence Agency, possess substantial 
     analytic expertise with regard to global energy issues.

[[Page 15655]]

       (2) Energy policy debates generally do not use, to the 
     fullest extent possible, the expertise available in the 
     intelligence community.

     SEC. 803. REPORT ON ENERGY SECURITY.

       (a) Requirement.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the Director of National 
     Intelligence shall submit to Congress a report on the long-
     term energy security of the United States.
       (2) Form of report.--The report required by subsection (a) 
     shall be submitted in an unclassified form and may include a 
     classified annex.
       (b) Content.--The report submitted pursuant to subsection 
     (a) shall include the following:
       (1) An assessment of key energy issues that have national 
     security or foreign policy implications for the United 
     States.
       (2) An assessment of the future of world energy supplies, 
     including the impact likely and unlikely scenarios may have 
     on world energy supply.
       (3) A description of--
       (A) the policies being pursued, or expected to be pursued, 
     by the major energy producing countries or by the major 
     energy consuming countries, including developing countries, 
     to include policies that utilize renewable resources for 
     electrical and biofuel production;
       (B) an evaluation of the probable outcomes of carrying out 
     such policy options, including--
       (i) the economic and geopolitical impact of the energy 
     policy strategies likely to be pursued by such countries;
       (ii) the likely impact of such strategies on the decision-
     making processes on major energy cartels; and
       (iii) the impact of policies that utilize renewable 
     resources for electrical and biofuel production, including an 
     assessment of the ability of energy consuming countries to 
     reduce dependence on oil using renewable resources, the 
     economic, environmental, and developmental impact of an 
     increase in biofuels production in both developed and 
     developing countries, and the impact of an increase in 
     biofuels production on global food supplies; and
       (C) the potential impact of such outcomes on the energy 
     security and national security of the United States.
                                 ______
                                 
  SA 1551. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, developing greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 161, between lines 2 and 3, insert the following:

     SEC. 269. FEDERAL STANDBY POWER STANDARD.

       (a) Definitions.--In this section:
       (1) Agency.--
       (A) In general.--The term ``Agency'' has the meaning given 
     the term ``Executive agency'' in section 105 of title 5, 
     United States Code.
       (B) Inclusions.--The term ``Agency'' includes military 
     departments, as the term is defined in section 102 of title 
     5, United States Code.
       (2) Eligible product.--The term ``eligible product'' means 
     a commercially available, off-the-shelf product that--
       (A)(i) uses external standby power devices; or
       (ii) contains an internal standby power function; and
       (B) is included on the list compiled under subsection (d).
       (b) Federal Purchasing Requirement.--Subject to subsection 
     (c), if an Agency purchases an eligible product, the Agency 
     shall purchase--
       (1) an eligible product that uses not more than 1 watt in 
     the standby power consuming mode of the eligible product; or
       (2) if an eligible product described in paragraph (1) is 
     not available, the eligible product with the lowest available 
     standby power wattage in the standby power consuming mode of 
     the eligible product.
       (c) Limitation.--The requirements of subsection (b) shall 
     apply to a purchase by an Agency only if--
       (1) the lower-wattage eligible product is--
       (A) lifecycle cost-effective; and
       (B) practicable; and
       (2) the utility and performance of the eligible product is 
     not compromised by the lower wattage requirement.
       (d) Eligible Products.--The Secretary of Energy, in 
     consultation with the Secretary of Defense and the 
     Administrator of General Services, shall compile a publicly 
     accessible list of cost-effective eligible products that 
     shall be subject to the purchasing requirements of subsection 
     (b).

                                 ______
                                 
  SA 1552. Mr. INOUYE (for himself and Mr. Stevens) submitted an 
amendment intended to be proposed by him to the bill S. 1609, to 
provide the necessary authority to the Secretary of Commerce for the 
establishment and implementation of a regulatory system for offshore 
aquaculture in the United States Exclusive Economic Zone, and for other 
purposes; which was referred to the Committee on Commerce, Science, and 
Transportation; as follows:

       Strike paragraph (2)(A) of section 4(b) and insert the 
     following:
       (A) An offshore aquaculture permit holder shall be--
       (i) a citizen or resident of the United States; or
       (ii a corporation, partnership, or other entity organized 
     and existing under the laws of a State or the United States.
                                 ______
                                 
  SA 1553. Mr. INOUYE (for himself and Mr. Stevens) submitted an 
amendment intended to be proposed by him to the bill S. 1609, to 
provide the necessary authority to the Secretary of Commerce for the 
establishment and implementation of a regulatory system for offshore 
aquaculture in the United States Exclusive Economic Zone, and for other 
purposes; which was referred to the Committee on Commerce, Science, and 
Transportation; as follows:

       Strike subparagraph (C) of section 4(a)(1) and insert the 
     following:
       (C) procedures for evaluating and minimizing the potential 
     adverse environmental, socio-economic, and cultural impacts 
     of offshore aquaculture, including the establishment of 
     permit conditions;
       Strike paragraph (2) of section 4(a) and insert the 
     following:
       (2) The Secretary shall prepare a programmatic 
     environmental impact statement under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     with respect to the development and operation of offshore 
     aquaculture facilities. The environmental impact statement 
     required by this paragraph shall be in addition to, and not 
     to the exclusion of, the application of that Act to other 
     aspects of any offshore aquaculture program established under 
     this Act, including with respect to the issuance of 
     individual permits.
       In section 4(A)(4) strike ``aquaculture, to the extent 
     necessary.'' and insert ``aquaculture.''.
       Strike subparagraphs (E) and (F) of section 4(a)(4) and 
     insert the following:
       (E) requirements that marine species propagated and reared 
     through offshore aquaculture be species of the local genotype 
     native to the geographic regions; and
       (F) maintaining record systems to track inventory and 
     movement of fish or other marine species propagated and 
     reared through offshore aquaculture, and, to the maximum 
     extent practicable, tagging, marking or otherwise identifying 
     such fish or other species.
       Strike ``Subject to the provisions of subsection (e),'' in 
     section 4(b) and insert ``Subject to the other provisions of 
     this Act and rulemaking under this Act,''.
                                 ______
                                 
  SA 1554. Mr. INOUYE (for himself and Mr. Stevens) submitted an 
amendment intended to be proposed by him to the bill S. 1609, to 
provide the necessary authority to the Secretary of Commerce for the 
establishment and implementation of a regulatory system for offshore 
aquaculture in the United States Exclusive Economic Zone, and for other 
purposes; which was referred to the Committee on Commerce, Science, and 
Transportation; as follows:

       Strike section 5 and insert the following:

     SEC. 5. RESEARCH AND DEVELOPMENT.

       (a) In General.--The Secretary, in consultation with other 
     Federal agencies, coastal States, regional fishery management 
     councils, academic institutions and other interested 
     stakeholders shall establish and conduct a research and 
     development program to further marine aquaculture 
     technologies that are compatible with the protection of 
     marine ecosystems.
       (b) Components.--The program shall include research to 
     reduce the use of wild fish in offshore aquaculture feeds, 
     engineering innovations to reduce the environmental impacts 
     of offshore aquaculture facilities, non-harmful measures for 
     avoiding interactions with marine mammals, methods for 
     minimizing the use of antibiotics, and improvements in 
     environmental monitoring techniques.
       (c) Eligible Entities.--The Secretary may conduct research 
     and development in partnership with offshore aquaculture 
     permit holders.
                                 ______
                                 
  SA 1555.  Mr. STEVENS (for himself and Mr. Inouye) submitted an 
amendment intended to be proposed by him to the bill S. 1609, to 
provide the necessary authority to the Secretary of Commerce for the 
establishment and implementation of a regulatory system for offshore 
aquaculture in the United

[[Page 15656]]

States Exclusive Economic Zone, and for other purposes; which was 
referred to the Committee on Commerce, Science, and Transportation; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. NO FINFISH AQUACULTURE SEAWARD OF ALASKA.

       (a) In General.--Notwithstanding any other provision of 
     this Act, the Secretary may not issue a permit for finfish 
     acquaculture in Alaska's seaward portion of the Exclusive 
     Economic Zone offshore of Alaska.
       (b) Alaska's Seaward Portion of the Exclusive Economic 
     Zone.--
       (1) In general.--In this section, the term ``Alaska's 
     seaward portion of the Exclusive Economic Zone'' shall be 
     determined by extending the seaward boundary (as defined in 
     section 2(b) of the Submerged Lands Act (43 U.S.C. 1301(b))) 
     of Alaska seaward to the edge of the Exclusive Economic Zone.
       (B) Limitation.--Nothing in paragraph (1) shall be 
     construed to give Alaska any right, title, authority, or 
     jurisdiction over that portion of the Exclusive Economic Zone 
     described in paragraph (1).
                                 ______
                                 
  SA 1556. Mrs. LINCOLN (for herself Mr. Domenici, Mr. Pryor, Mr. 
Craig, and Ms. Landrieu) submitted an amendment intended to be proposed 
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, developing greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. ANIMAL WASTE.

       (a) Findings and Purpose.--
       (1) Findings.--Congress finds that--
       (A) a purpose of this Act is to promote, through consistent 
     policy incentives, the increased commercial use of renewable 
     energy technologies;
       (B) the underlying technologies promoted by those policies 
     include biomass, and specifically animal manure as important 
     renewable energy supplies;
       (C) stores of that useful animal agriculture byproduct--
       (i) are available in all regions of the United States; and
       (ii) could be used to help diversify the energy generation 
     needs of the United States;
       (D) expanded commercial adoption of the technologies 
     described in subparagraph (B) could contribute to the 
     essential reduction over time of United States reliance on 
     fossil fuels for the predominant supply of our energy 
     generation needs;
       (E) the marketplace has been affected by regulatory 
     uncertainty stemming from misinterpretations of punitive, 
     strict, joint, and severable liability regulatory schemes 
     originally formed for purposes of environmental regulation 
     and recovery of damages from industrial pollutants and toxic 
     waste;
       (F) those regulatory schemes specifically exclude from 
     punitive liability petroleum and petroleum byproducts;
       (G) the uncertainty regarding livestock and poultry manure 
     threatens to undermine Federal policy objectives and 
     taxpayer-backed incentives to promote renewable energy 
     production from those sources; and
       (H) misapplication of punitive regulatory schemes threatens 
     to erode commercial and financial market investment to 
     implement the objectives and incentives described in 
     subparagraph (G).
       (2) Purpose.--The purpose of this section is to provide 
     policy and market certainty by clarifying that the regulatory 
     scheme under the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) is not intended to cover the application, 
     transportation, or storage of livestock manure or poultry 
     litter.
       (b) Amendment of Superfund.--Title III of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9651 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 313. EXCEPTION FOR MANURE.

       ``(a) Definition of Manure.--In this section, the term 
     `manure' means--
       ``(1) digestive emissions, feces, urine, urea, and other 
     excrement from livestock (as defined in section 10403 of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8302));
       ``(2) any associated bedding, compost, raw materials, or 
     other materials commingled with such excrement from livestock 
     (as so defined);
       ``(3) any process water associated with any item referred 
     to in paragraph (1) or (2); and
       ``(4) any byproduct, constituent, or substance contained in 
     or originating from, or any emission relating to, an item 
     described in paragraph (1), (2), or (3).
       ``(b) Exemption.--Upon the date of enactment of this 
     section, manure shall not be included in the meaning of--
       ``(1) the term `hazardous substance', as defined in section 
     101(14); or
       ``(2) the term `pollutant or contaminant', as defined in 
     section 101(33).
       ``(c) Effect on Other Law.--Nothing with respect to the 
     enactment of this subsection shall--
       ``(1) impose any liability under the Emergency Planning and 
     Community Right-To-Know Act of 1986 (42 U.S.C. 11001 et seq.) 
     with respect to manure;
       ``(2) abrogate or otherwise affect any provision of the Air 
     Quality Agreement entered into between the Administrator and 
     operators of animal feeding operations (70 Fed. Reg. 4958 
     (January 31, 2005)); or
       ``(3) affect the applicability of any other environmental 
     law as such a law relates to--
       ``(A) the definition of manure; or
       ``(B) the responsibilities or liabilities of any person 
     regarding the treatment, storage, or disposal of manure.''.
       (c) Amendment of SARA.--Section 304(a)(4) of the Superfund 
     Amendments and Reauthorization Act of 1986 (42 U.S.C. 
     11004(a)(4)) is amended--
       (1) by striking ``This section'' and inserting the 
     following:
       ``(A) In general.--This section''; and
       (2) by adding at the end the following:
       ``(B) Manure.--The notification requirements under this 
     subsection do not apply to releases associated with manure 
     (as defined in section 313 of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980).''.
                                 ______
                                 
  SA 1557. Ms. KLOBUCHAR (for herself, Ms. Snowe, and Mr. Bingaman) 
submitted an amendment intended to be proposed by her to the bill H.R. 
6, to reduce our Nation's dependency on foreign oil by investing in 
clean, renewable, and alternative energy resources, promoting, new 
emerging energy technologies, developing greater efficiency, and 
creating a Strategic Energy Efficiency and Renewables Reserve to invest 
in alternative energy, and for other purposes; which was ordered to lie 
on the table; as follows:

       At the end of title I, add the following:

              Subtitle D--National Greenhouse Gas Registry

     SEC. 161. PURPOSE.

       The purpose of this subtitle is to establish a national 
     greenhouse gas registry that--
       (1) is complete, consistent, transparent, and accurate; and
       (2) will provide reliable and accurate data that can be 
     used by public and private entities to design efficient and 
     effective energy security initiatives and greenhouse gas 
     emission reduction strategies.

     SEC. 162. DEFINITIONS.

       In this subtitle:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Affected facility.--
       (A) In general.--The term ``affected facility'' means--
       (i) a major emitting facility (as listed in section 169 of 
     the Clean Air Act (42 U.S.C. 7479));
       (ii) a petroleum refinery;
       (iii) a coal mine that produces more than 10,000 short tons 
     of coal during calendar year 2004 or any subsequent calendar 
     year;
       (iv) a natural gas processing plant;
       (v) an importer of refined petroleum products, residual 
     fuel oil, petroleum coke, liquefied petroleum gas, coal, 
     coke, or natural gas (including liquefied natural gas);
       (vi) a facility that imports or manufactures a greenhouse 
     gas, including a facility that--

       (I) imports or manufactures hydrofluorocarbons, 
     perfluorocarbons, sulfur hexafluoride, or nitrous oxide, or a 
     product containing any of those gases;
       (II) emits nitrous oxide associated with the manufacture of 
     adipic acid or nitric acid; or
       (III) emits hydrofluorocarbon-23 as a byproduct of 
     hydrochlorofluorocarbon-22; and

       (vii) any other facility that emits a greenhouse gas, as 
     determined by the Administrator.
       (B) Exclusions.--The term ``affected facility'' does not 
     include any small business (as described in part 121 of title 
     13, Code of Federal Regulations (or a successor regulation)) 
     that generates fewer than 10,000 metric tons of greenhouse 
     gas emissions during a calendar year, or a facility below the 
     thresholds established by the Administrator under section 
     165(b)(9), unless that small business or facility elects to 
     voluntarily report to the registry under section 163 as an 
     affected facility.
       (3) Carbon content.--The term ``carbon content'' means the 
     quantity of carbon (in carbon dioxide equivalent) contained 
     in a fuel.
       (4) Feedstock fossil fuel.--The term ``feedstock fossil 
     fuel'' means fossil fuel used as raw material in a 
     manufacturing process.
       (5) Greenhouse gas.--The term ``greenhouse gas'' means--
       (A) carbon dioxide;
       (B) methane;
       (C) nitrous oxide;

[[Page 15657]]

       (D) hydrofluorocarbons;
       (E) perfluorocarbons;
       (F) sulfur hexafluoride; and
       (G) any other anthropogenically-emitted gas that the 
     Administrator, after notice and comment, determines to 
     contribute to climate change.
       (6) Process emissions.--The term ``process emissions'' 
     means emissions generated during a manufacturing process.

     SEC. 163. REPORTING REQUIREMENTS.

       (a) In General.--An affected facility shall--
       (1) report the quantity and type of fossil fuels and non-
     carbon dioxide greenhouse gases produced, refined, imported, 
     exported, and consumed;
       (2) report greenhouse gas emissions (in accordance with 
     section 164(a)(1)(C)), in metric tons of each greenhouse gas 
     emitted and in metric tons of carbon dioxide equivalent of 
     each greenhouse gas emitted, measured using monitoring 
     systems for fuel flow or emissions that use--
       (A) continuous emission monitoring; or
       (B) an equivalent system of comparable rigor, accuracy, and 
     quality;
       (3) report the quantity and type of--
       (A) feedstock fossil fuel consumption; and
       (B) process emissions;
       (4) report other data necessary for accurate accounting of 
     greenhouse gas emissions, as determined by the Administrator;
       (5) include an appropriate certification, as determined by 
     the Administrator; and
       (6) report the information required under this section 
     electronically to the Administrator in such form and to such 
     extent as may be required by the Administrator.
       (b) Verification of Report Required.--Before including the 
     information from a report required under this section in the 
     registry, the Administrator shall verify the completeness and 
     accuracy of the report using information provided under this 
     section or under other provisions of law.
       (c) Timing.--
       (1) Calendar years 2004 through 2007.--For a baseline 
     period of calendar years 2004 through 2007, each affected 
     facility shall submit required annual data described in this 
     section to the Administrator not later than March 31, 2009.
       (2) Subsequent calendar years.--For subsequent calendar 
     years, each affected facility shall submit quarterly data 
     described in this section to the Administrator not later than 
     30 days after the end of the applicable quarter.
       (d) No Effect on Other Requirements.--Nothing in this title 
     affects any requirement in effect as of the date of enactment 
     of this Act relating to reporting of--
       (1) fossil fuel production, refining, importation, 
     exportation, or consumption data;
       (2) greenhouse gas emission data; or
       (3) other relevant data.

     SEC. 164. DATA QUALITY AND VERIFICATION.

       (a) Protocols and Methods.--
       (1) In general.--The Administrator shall establish 
     protocols and methods to ensure completeness, consistency, 
     transparency, and accuracy of data on fossil fuel production, 
     refining, importation, exportation, and consumption, and 
     greenhouse gas emissions submitted to the registry that 
     include--
       (A) accounting and reporting standards for fossil fuel 
     production, refining, importation, exportation, and 
     consumption;
       (B) standardized methods for calculating carbon content or 
     greenhouse gas emissions in specific industries from other 
     readily available and reliable information, such as fuel 
     consumption, materials consumption, production data, or other 
     relevant activity data;
       (C) standardized methods of monitoring greenhouse gas 
     emissions (along with information on the accuracy of the 
     data) for cases in which the Administrator determines that 
     rigorous and accurate monitoring is feasible;
       (D) methods to avoid double-counting of greenhouse gas 
     emissions;
       (E) protocols to prevent an affected facility from avoiding 
     the reporting requirements of this title; and
       (F) protocols for verification of data submitted by 
     affected facilities.
       (2) Best practices.--The protocols and methods developed 
     under paragraph (1) shall conform, to the maximum extent 
     practicable, to the best practices available to ensure 
     accuracy and consistency of the data.
       (b) Verification; Information by Reporting Entities.--Each 
     affected facility shall--
       (1) provide information sufficient for the Administrator to 
     verify, in accordance with the protocols and methods 
     developed under subsection (a), that the fossil fuel data and 
     greenhouse gas emission data of the affected facility have 
     been completely and accurately reported; and
       (2) ensure the submission or retention, for the 5-year 
     period beginning on the date of provision of the information, 
     of data sources, information on internal control activities, 
     information on assumptions used in reporting emissions and 
     fuels, uncertainty analyses, and other relevant data and 
     information to facilitate the verification of reports 
     submitted to the registry.
       (c) Waiver of Reporting Requirements.--The Administrator 
     may waive reporting requirements for specific facilities if 
     sufficient data are available under other provisions of law.
       (d) Missing Data.--If information, satisfactory to the 
     Administrator, is not provided for an affected facility, the 
     Administrator shall prescribe methods that create incentives 
     for accurate reporting to estimate emissions for the facility 
     for each quarter for which data are missing.

     SEC. 165. NATIONAL GREENHOUSE GAS REGISTRY.

       (a) Establishment.--The Administrator (in consultation with 
     the Secretary of Energy, the Secretary of Commerce, States, 
     the private sector, and nongovernmental organizations) shall 
     establish a mandatory national greenhouse gas registry.
       (b) Administration.--The Administrator shall--
       (1) design and operate the registry;
       (2) establish an advisory body with that is broadly 
     representative of industry, agriculture, environmental 
     groups, and State and local governments to guide the 
     development and management of the registry;
       (3) provide coordination and technical assistance for the 
     development of proposed protocols and methods to be published 
     by the Administrator;
       (4) develop forms for reporting under guidelines 
     established under section 164(a)(1), and make the forms 
     available to reporting entities;
       (5) verify and audit the data submitted by reporting 
     entities;
       (6) establish consistent policies for calculating carbon 
     content, expressed in units of carbon dioxide equivalent, for 
     each type of fossil fuel reported under section 163;
       (7) calculate carbon content, in units of carbon dioxide 
     equivalent, of fossil fuel data reported by reporting 
     entities;
       (8) ensure coordination, to the maximum extent practicable, 
     between the national greenhouse gas registry and greenhouse 
     gas registries in existence as of the date of the 
     coordination;
       (9) establish, as soon as practicable after the date of 
     enactment of this Act, threshold levels of greenhouse gas 
     emissions from a facility, or sector-specific production 
     levels at a facility, that require reporting under section 
     163 such that, at a minimum, the registry shall cover 80 
     percent of the human-induced greenhouse gas emissions in the 
     United States; and
       (10) publish on the Internet all information contained in 
     the registry, except in any case in which publishing the 
     information would result in a disclosure of--
       (A) information vital to national security, as determined 
     by the Administrator; or
       (B) confidential business information that cannot be 
     derived from information that is otherwise publicly available 
     and that would cause significant calculable competitive harm 
     if published.
       (c) Third-Party Verification.--The Administrator may ensure 
     that reports required under section 163 are certified by a 
     third-party entity.
       (d) Regulations.--The Administrator shall--
       (1) propose regulations to carry out this title not later 
     than 180 days after the date of enactment of this Act; and
       (2) promulgate final regulations to carry out this title 
     not later than December 31, 2008.
       (e) Report to Congress.--Not later than 180 days after the 
     date on which reporting is required under this title, the 
     Administrator shall submit to Congress a report that 
     describes the need for harmonization of legal requirements 
     within the United States relating to greenhouse gas 
     reporting.

     SEC. 166. ENFORCEMENT.

       (a) Civil Actions.--The Administrator may bring a civil 
     action in United States district court against the owner or 
     operator of an affected facility that fails to comply with 
     this title.
       (b) Penalty.--Any person that violates this title shall be 
     subject to a civil penalty of not more than $25,000 for each 
     day the violation continues.
                                 ______
                                 
  SA 1558. Mr. OBAMA submitted an amendment intended to be proposed to 
the bill H.R. 6, to reduce our Nation's dependency on foreign oil by 
investing in clean, renewable, and alternative energy resources, 
promoting new emerging energy technologies, developing greater 
efficiency, and creating a Strategic Energy Efficiency and Renewables 
Reserve to invest in alternative energy, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                    TITLE _--HEALTH CARE FOR HYBRIDS

     SEC. _00. FINDINGS.

       Congress makes the following findings:
       (1) More than 50 percent of the oil consumed in the United 
     States is imported.
       (2) If present trends continue, foreign oil will represent 
     68 percent of the oil consumed in the United States by 2025.
       (3) The United States has only 3 percent of the world's 
     known oil reserves and the Nation's economic health is 
     dependent on world oil prices.
       (4) World oil prices are overwhelmingly dictated by other 
     countries, which endangers

[[Page 15658]]

     the economic and national security of the United States.
       (5) A major portion of the world's oil supply is controlled 
     by unstable governments and countries that are known to 
     finance, harbor, or otherwise support terrorists and 
     terrorist activities.
       (6) American automakers have lagged behind their foreign 
     competitors in producing hybrid and other energy-efficient 
     automobiles.
       (7) Legacy health care costs associated with retiree 
     workers are an increasing burden on the global 
     competitiveness of American industries.
       (8) Innovative uses of new technology in automobiles 
     manufactured in the United States will--
       (A) help retain American jobs;
       (B) support health care obligations for retiring workers in 
     the automotive sector;
       (C) decrease our Nation's dependence on foreign oil; and
       (D) address pressing environmental concerns.

   Subtitle A--Retired Employee Health Benefits Reimbursement Program

     SEC. _01. COORDINATING TASK FORCE.

       (a) Establishment.--Not later than 6 months after the date 
     of the enactment of this Act, the Secretary of Energy, the 
     Secretary of Health and Human Services, the Secretary of 
     Transportation, and the Secretary of the Treasury shall 
     establish a task force (referred to in this title as the 
     ``task force'') to administer the program established under 
     section _02 (referred to in this title as the ``program'').
       (b) Membership.--The task force shall be composed 
     representatives of the departments headed by the officials 
     referred to in subsection (a), who shall be appointed by such 
     officials in equal numbers.

     SEC. _02. ESTABLISHMENT OF PROGRAM.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the task force shall establish a 
     program to reimburse eligible domestic automobile 
     manufacturers for the costs incurred in providing health 
     benefits to their retired employees. The task force shall 
     determine compliance with the assurances under subsection 
     (c)(4) through accepted measurements of fuel savings.
       (b) Consultation.--In establishing the program, the task 
     force shall consult with representatives from--
       (1) eligible domestic automobile manufacturers;
       (2) unions representing employees of such manufacturers; 
     and
       (3) consumer and environmental groups.
       (c) Eligibility Requirements.--A domestic automobile 
     manufacturer seeking reimbursement under the program shall--
       (1) submit an application to the task force at such time, 
     in such manner, and containing such information as the task 
     force shall require;
       (2) certify that such manufacturer is providing full health 
     care coverage to all of its employees;
       (3) provide assurances to the task force that the 
     manufacturer will invest, in an amount equal to not less than 
     50 percent of the amount saved by the manufacturer through 
     the reimbursement of its retiree health care costs under the 
     program, in--
       (A) the domestic manufacture and commercialization of 
     petroleum fuel reduction technologies, including alternative 
     or flexible fuel vehicles, hybrids, and other state-of-the-
     art fuel saving technologies;
       (B) retraining workers and retooling assembly lines for the 
     activities described in subparagraph (A);
       (C) researching, developing, designing, and commercializing 
     high-performance, fuel-efficient vehicles, and other 
     activities related to diversifying the domestic production of 
     automobiles; and
       (D) assisting domestic automobile component suppliers to 
     retool their domestic manufacturing plants to produce 
     components for petroleum fuel reduction technologies, 
     including alternative or flexible fuel vehicles and hybrid, 
     advanced diesel, and other state-of-the-art fuel saving 
     technologies; and
       (4) provide assurances to the task force that average 
     adjusted fuel economy savings achieved under paragraph (3) 
     will not result in fuel economy decreases in other 
     automobiles manufactured in the United States; and
       (5) provide additional assurances and information as the 
     task force may require, including information needed by the 
     task force to audit the manufacturer's compliance with the 
     requirements of the program.
       (d) Limitation.--Not more than 10 percent of the annual 
     retiree health care costs of any domestic automobile 
     manufacturer may be reimbursed under the program in any year.
       (e) Termination of Program.--The program shall terminate on 
     December 31, 2017.

     SEC. _03. REPORTING.

       (a) Reimbursement Reports.--Not later than 6 months after 
     the date of the enactment of this Act, and every 6 months 
     thereafter, the task force shall submit a report to Congress 
     that--
       (1) identifies the reimbursements paid under the program; 
     and
       (2) describes the changes in the manufacture and 
     commercialization of fuel saving technologies implemented by 
     automobile manufacturers as a result of such reimbursements.
       (b) Consumer Incentives.--Not later than 1 year after the 
     date of the enactment of this Act, the task force shall 
     submit a report to Congress that--
       (1) indicates the effectiveness of financial incentives 
     available to consumers for the purchase of hybrid vehicles in 
     encouraging such purchases; and
       (2) recommends whether such incentives should be expanded.

     SEC. _04. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary in each of fiscal years 2008 through 2018 to carry 
     out this subtitle.

                       Subtitle B--Tax Provisions

     SEC. _11. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

       (a) In General.--Section 7701 of the Internal Revenue Code 
     of 1986 is amended--
       (1) by redesignating subsection (p) as subsection (q); and
       (2) by inserting after subsection (o) the following:
       ``(p) Clarification of Economic Substance Doctrine.--
       ``(1) General rules.--
       ``(A) In general.--In any case in which a court determines 
     that the economic substance doctrine is relevant for purposes 
     of this title to a transaction (or series of transactions), 
     such transaction (or series of transactions) shall have 
     economic substance only if the requirements of this paragraph 
     are met.
       ``(B) Definition of economic substance.--For purposes of 
     subparagraph (A):
       ``(i) In general.--A transaction has economic substance 
     only if--

       ``(I) the transaction changes in a meaningful way (apart 
     from Federal tax effects) the taxpayer's economic position, 
     and
       ``(II) the taxpayer has a substantial nontax purpose for 
     entering into such transaction and the transaction is a 
     reasonable means of accomplishing such purpose.

     In applying subclause (II), a purpose of achieving a 
     financial accounting benefit shall not be taken into account 
     in determining whether a transaction has a substantial nontax 
     purpose if the origin of such financial accounting benefit is 
     a reduction of income tax.
       ``(ii) Special rule where taxpayer relies on profit 
     potential.--A transaction shall not be treated as having 
     economic substance by reason of having a potential for profit 
     unless--

       ``(I) the present value of the reasonably expected pre-tax 
     profit from the transaction is substantial in relation to the 
     present value of the expected net tax benefits that would be 
     allowed if the transaction were respected, and
       ``(II) the reasonably expected pre-tax profit from the 
     transaction exceeds a risk-free rate of return.

       ``(C) Treatment of fees and foreign taxes.--Fees and other 
     transaction expenses and foreign taxes shall be taken into 
     account as expenses in determining pre-tax profit under 
     subparagraph (B)(ii).
       ``(2) Special rules for transaction with tax-indifferent 
     parties.--
       ``(A) Special rules for financing transactions.--The form 
     of a transaction which is in substance the borrowing of money 
     or the acquisition of financial capital directly or 
     indirectly from a tax-indifferent party shall not be 
     respected if the present value of the deductions to be 
     claimed with respect to the transaction is substantially in 
     excess of the present value of the anticipated economic 
     returns of the person lending the money or providing the 
     financial capital. A public offering shall be treated as a 
     borrowing, or an acquisition of financial capital, from a 
     tax-indifferent party if it is reasonably expected that at 
     least 50 percent of the offering will be placed with tax-
     indifferent parties.
       ``(B) Artificial income shifting and basis adjustments.--
     The form of a transaction with a tax-indifferent party shall 
     not be respected if--
       ``(i) it results in an allocation of income or gain to the 
     tax-indifferent party in excess of such party's economic 
     income or gain, or
       ``(ii) it results in a basis adjustment or shifting of 
     basis on account of overstating the income or gain of the 
     tax-indifferent party.
       ``(3) Definitions and special rules.--For purposes of this 
     subsection:
       ``(A) Economic substance doctrine.--The term `economic 
     substance doctrine' means the common law doctrine under which 
     tax benefits under subtitle A with respect to a transaction 
     are not allowable if the transaction does not have economic 
     substance or lacks a business purpose.
       ``(B) Tax-indifferent party.--The term `tax-indifferent 
     party' means any person or entity not subject to tax imposed 
     by subtitle A. A person shall be treated as a tax-indifferent 
     party with respect to a transaction if the items taken into 
     account with respect to the transaction have no substantial 
     impact on such person's liability under subtitle A.
       ``(C) Exception for personal transactions of individuals.--
     In the case of an individual, this subsection shall apply 
     only to transactions entered into in connection

[[Page 15659]]

     with a trade or business or an activity engaged in for the 
     production of income.
       ``(D) Treatment of lessors.--In applying paragraph 
     (1)(B)(ii) to the lessor of tangible property subject to a 
     lease--
       ``(i) the expected net tax benefits with respect to the 
     leased property shall not include the benefits of--

       ``(I) depreciation,
       ``(II) any tax credit, or
       ``(III) any other deduction as provided in guidance by the 
     Secretary, and

       ``(ii) subclause (II) of paragraph (1)(B)(ii) shall be 
     disregarded in determining whether any of such benefits are 
     allowable.
       ``(4) Other common law doctrines not affected.--Except as 
     specifically provided in this subsection, the provisions of 
     this subsection shall not be construed as altering or 
     supplanting any other rule of law, and the requirements of 
     this subsection shall be construed as being in addition to 
     any such other rule of law.
       ``(5) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection. Such regulations may include 
     exemptions from the application of this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. _12. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE.

       (a) In General.--Subchapter A of chapter 68 of the Internal 
     Revenue Code of 1986 is amended by inserting after section 
     6662A the following:

     ``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE.

       ``(a) Imposition of Penalty.--If a taxpayer has an 
     noneconomic substance transaction understatement for any 
     taxable year, there shall be added to the tax an amount equal 
     to 40 percent of the amount of such understatement.
       ``(b) Reduction of Penalty for Disclosed Transactions.--
     Subsection (a) shall be applied by substituting `20 percent' 
     for `40 percent' with respect to the portion of any 
     noneconomic substance transaction understatement with respect 
     to which the relevant facts affecting the tax treatment of 
     the item are adequately disclosed in the return or a 
     statement attached to the return.
       ``(c) Noneconomic Substance Transaction Understatement.--
     For purposes of this section--
       ``(1) In general.--The term `noneconomic substance 
     transaction understatement' means any amount which would be 
     an understatement under section 6662A(b)(1) if section 6662A 
     were applied by taking into account items attributable to 
     noneconomic substance transactions rather than items to which 
     section 6662A would apply without regard to this paragraph.
       ``(2) Noneconomic substance transaction.--The term 
     `noneconomic substance transaction' means any transaction 
     if--
       ``(A) there is a lack of economic substance (within the 
     meaning of section 7701(p)(1)) for the transaction giving 
     rise to the claimed benefit or the transaction was not 
     respected under section 7701(p)(2), or
       ``(B) the transaction fails to meet the requirements of any 
     similar rule of law.
       ``(d) Rules Applicable to Compromise of Penalty.--
       ``(1) In general.--If the 1st letter of proposed deficiency 
     which allows the taxpayer an opportunity for administrative 
     review in the Internal Revenue Service Office of Appeals has 
     been sent with respect to a penalty to which this section 
     applies, only the Commissioner of Internal Revenue may 
     compromise all or any portion of such penalty.
       ``(2) Applicable rules.--The rules of paragraphs (2) and 
     (3) of section 6707A(d) shall apply for purposes of paragraph 
     (1).
       ``(e) Coordination With Other Penalties.--Except as 
     otherwise provided in this part, the penalty imposed by this 
     section shall be in addition to any other penalty imposed by 
     this title.
       ``(f) Cross References.--
       ``(1) For coordination of penalty with understatements 
     under section 6662 and other special rules, see section 
     6662A(e).
       ``(2) For reporting of penalty imposed under this section 
     to the Securities and Exchange Commission, see section 
     6707A(e).''.
       (b) Coordination With Other Understatements and 
     Penalties.--
       (1) The second sentence of section 6662(d)(2)(A) of the 
     Internal Revenue Code of 1986 is amended by inserting ``and 
     without regard to items with respect to which a penalty is 
     imposed by section 6662B'' before the period at the end.
       (2) Subsection (e) of section 6662A of the Internal Revenue 
     Code of 1986 is amended--
       (A) in paragraph (1), by inserting ``and noneconomic 
     substance transaction understatements'' after ``reportable 
     transaction understatements'' both places it appears,
       (B) in paragraph (2)(A), by inserting ``and a noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'',
       (C) in paragraph (2)(B), by inserting ``6662B or'' before 
     ``6663'',
       (D) in paragraph (2)(C)(i), by inserting ``or section 
     6662B'' before the period at the end,
       (E) in paragraph (2)(C)(ii), by inserting ``and section 
     6662B'' after ``This section'',
       (F) in paragraph (3), by inserting ``or noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'', and
       (G) by adding at the end the following new paragraph:
       ``(3) Noneconomic substance transaction understatement.--
     For purposes of this subsection, the term `noneconomic 
     substance transaction understatement' has the meaning given 
     such term by section 6662B(c).''.
       (3) Paragraph (2) of section 6707A(e) of the Internal 
     Revenue Code of 1986 is amended--
       (A) by striking ``or'' at the end of subparagraph (B), and
       (B) by striking subparagraph (C) and inserting the 
     following new subparagraphs:
       ``(C) is required to pay a penalty under section 6662B with 
     respect to any noneconomic substance transaction, or
       ``(D) is required to pay a penalty under section 6662(h) 
     with respect to any transaction and would (but for section 
     6662A(e)(2)(C)) have been subject to penalty under section 
     6662A at a rate prescribed under section 6662A(c) or under 
     section 6662B,''.
       (c) Clerical Amendment.--The table of sections for part II 
     of subchapter A of chapter 68 of the Internal Revenue Code of 
     1986 is amended by inserting after the item relating to 
     section 6662A the following:

``Sec. 6662B. Penalty for understatements attributable to transactions 
              lacking economic substance, etc.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. _13. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS 
                   ATTRIBUTABLE TO NONECONOMIC SUBSTANCE 
                   TRANSACTIONS.

       (a) In General.--Section 163(m) of the Internal Revenue 
     Code of 1986 (relating to interest on unpaid taxes 
     attributable to nondisclosed reportable transactions) is 
     amended--
       (1) by striking ``attributable'' and all that follows and 
     inserting the following: ``attributable to--
       ``(1) the portion of any reportable transaction 
     understatement (as defined in section 6662A(b)) with respect 
     to which the requirement of section 6664(d)(2)(A) is not met, 
     or
       ``(2) any noneconomic substance transaction understatement 
     (as defined in section 6662B(c)).''; and
       (2) by inserting ``and noneconomic substance transactions'' 
     after ``transactions''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions after the date of the enactment 
     of this Act in taxable years ending after such date.
                                 ______
                                 
  SA 1559. Mr. HAGEL submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, develop greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of title II, add the following:

              Subtitle F--Energy-Related Regulatory Reform

     SEC. 281. PROCESS COORDINATION AND RULES OF PROCEDURE.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Chairperson.--The term ``Chairperson'' means the 
     Chairperson of the Nuclear Regulatory Commission.
       (3) Federal energy authorization.--
       (A) In general.--The term ``Federal energy authorization'' 
     means any authorization required under Federal law (including 
     regulations), regardless of whether the law is administered 
     by a Federal or State administrative agency or official, with 
     respect to the siting, construction, expansion, or operation 
     of an energy facility, including--
       (i) a coal-fired electric generating plant;
       (ii) a nuclear power electric generating plant;
       (iii) a natural gas-fired electric generating plant;
       (iv) a waste-to-energy facility;
       (v) a geothermal electric generating facility;
       (vi) a wind or solar electric generating facility;
       (vii) a petroleum refinery;
       (viii) a biorefinery;
       (ix) a biogas conversion unit;
       (x) a shale-oil production site; or
       (xi) an oil or gas exploration and production lease.
       (B) Inclusions.--The term ``Federal energy authorization'' 
     includes any permit, special use authorization, 
     certification, opinion, or other approval required under 
     Federal law

[[Page 15660]]

     (including regulations) with respect to the siting, 
     construction, expansion, or operation of an energy facility 
     referred to in subparagraph (A).
       (b) Designation as Lead Agency.--
       (1) In general.--Except as provided in paragraph (2), the 
     Environmental Protection Agency shall act as the lead agency 
     for the purposes of coordinating all Federal energy 
     authorizations and related environmental reviews.
       (2) Exception.--In the case of a nuclear power electric 
     generating facility, the Nuclear Regulatory Commission shall 
     act as the lead agency for purposes of coordinating all 
     Federal nuclear energy authorizations.
       (3) Other agencies.--Each Federal or State agency or 
     official required to provide a Federal energy authorization 
     shall cooperate with the Administrator or the Chairperson, as 
     applicable, including by complying with any applicable 
     deadline relating to the Federal energy authorization 
     established by the Administrator or Chairperson under 
     subsection (c).
       (c) Schedule.--
       (1) Authority of administrator.--The Administrator shall 
     establish a schedule for all Federal energy authorizations as 
     the Administrator determines to be appropriate--
       (A) to ensure expeditious completion of all proceedings 
     relating to Federal energy authorizations; and
       (B) to accommodate any applicable related schedules 
     established by Federal law (including regulations).
       (2) Authority of chairperson.--The Chairperson shall 
     collaborate with the Administrator to establish an 
     appropriate schedule for all environmental authorizations 
     required with respect to facilities described in subsection 
     (b)(2) that--
       (A) takes into consideration the longer lead time required 
     by the permitting process for nuclear power electric 
     generating facilities; and
       (B) allows for simultaneous environmental and security 
     reviews of potential sites to provide for joint authorization 
     of the sites by the Administrator and the Chairperson.
       (3) Failure to meet schedule.--If a Federal or State 
     administrative agency or official fails to complete a 
     proceeding for any approval required for a Federal energy 
     authorization in accordance with the schedule established 
     under paragraph (1) or (2), any affected applicant for the 
     Federal energy authorization may seek judicial review of the 
     failure under subsection (e).
       (d) Consolidated Record.--
       (1) In general.--Except as provided in paragraph (2), the 
     Administrator, in cooperation with Federal and State 
     administrative agencies and officials, shall maintain a 
     complete consolidated record of all decisions made and all 
     actions carried out by the Administrator or a Federal or 
     State administrative agency or officer with respect to any 
     Federal energy authorization.
       (2) Exception.--The Chairperson, in cooperation with the 
     Administrator and other Federal and State administrative 
     agencies and officials, shall maintain a complete 
     consolidated record of all decisions made and all actions 
     carried out by the Commissioner or a Federal or State 
     administrative agency or officer with respect to any Federal 
     authorization of a nuclear power electric generating 
     facility.
       (3) Treatment.--
       (A) In general.--Except as provided in subparagraph (B), 
     the records under paragraphs (1) and (2) shall serve as the 
     record for a decision or action for purposes of judicial 
     review of the decision or action under subsection (e).
       (B) Exception.--If the United States Court of Appeals for 
     the District of Columbia determines that a record under 
     paragraph (1) or (2) contains insufficient information, the 
     court may remand the proceeding to the Administrator for 
     development of the record.
       (e) Judicial Review.--
       (1) In general.--The United States Court of Appeals for the 
     District of Columbia shall have original and exclusive 
     jurisdiction over any civil action for the review of--
       (A) an order or action by a Federal or State administrative 
     agency or official relating to a Federal energy 
     authorization; or
       (B) an alleged failure to act by a Federal or State 
     administrative agency or official with respect to a Federal 
     energy authorization.
       (2) Remand.--
       (A) In general.--The court shall remand a proceeding to the 
     applicable agency or official in any case in which the court 
     determines under paragraph (1) that--
       (i)(I) an order or action described in paragraph (1)(A) is 
     inconsistent with the Federal law applicable to the Federal 
     energy authorization;
       (II) a failure to act described in paragraph (1)(B) has 
     occurred; or
       (III) a Federal or State administrative agency or official 
     failed to meet an applicable deadline under subsection (c) 
     with respect to a Federal energy authorization; and
       (ii) the order, action, or failure to act would prevent the 
     siting, construction, expansion, or operation of an energy 
     facility referred to in subsection (a)(2)(A).
       (B) Schedule.--On remand of an order, action, or failure to 
     act under subparagraph (A), the court shall establish a 
     reasonable schedule and deadline for the agency or official 
     to act with respect to the remand.
       (3) Action by lead agency.--
       (A) In general.--Except as provided in subparagraph (B), 
     for any civil action brought under this subsection, the 
     Administrator shall promptly file with the court the 
     consolidated record compiled by the Administrator pursuant to 
     subsection (d)(1).
       (B) Exception.--For any civil action brought under this 
     subsection with respect to a nuclear power electric 
     generating facility, the Chairperson shall promptly file with 
     the court the consolidated record compiled by the Chairperson 
     pursuant to subsection (d)(2).
       (4) Expedited consideration.--The Court shall provide 
     expedited consideration of any civil action brought under 
     this subsection.
       (5) Attorney's fees.--
       (A) In general.--Except as provided in subparagraph (B), in 
     any action challenging a Federal energy authorization that 
     has been granted, reasonable attorney's fees and other 
     expenses of the litigation shall be awarded to the prevailing 
     party.
       (B) Exception.--Subparagraph (A) shall not apply to any 
     action seeking a remedy for--
       (i) denial of a Federal energy authorization; or
       (ii) failure to act on an application for a Federal energy 
     authorization.

     SEC. 282. ENERGY SECURITY AND REGULATORY REFORM.

       (a) Energy-Related Regulatory Reform.--Title V of the 
     National Energy Conservation Policy Act (42 U.S.C. 8241 et 
     seq.) is amended by adding at the end the following:

               ``PART 5--ENERGY-RELATED REGULATORY REFORM

     ``SEC. 571. DEFINITIONS.

       ``In this part:
       ``(1) Advisory committee.--The term `advisory committee' 
     means an advisory committee established under section 572(a).
       ``(2) Applicable agency.--The term `applicable agency' 
     means any Federal department or agency that, during the 10-
     year period ending on the date on which an advisory committee 
     is established, promulgated a major rule.
       ``(3) Benefit.--The term `benefit', with respect to a rule, 
     means any reasonably identifiable, significant, and favorable 
     effect (whether quantifiable or unquantifiable), including a 
     social, health, safety, environmental, economic, energy, or 
     distributional effect, that is expected to result, directly 
     or indirectly, from the implementation of, or compliance 
     with, the rule.
       ``(4) Cost.--The term `cost', with respect to a rule, means 
     any reasonably identifiable and significant adverse effect 
     (whether quantifiable or unquantifiable), including a social, 
     health, safety, environmental, economic, energy, or 
     distributional effect, that is expected to result, directly 
     or indirectly, from the implementation of, or compliance 
     with, the rule.
       ``(5) Energy rule.--The term `energy rule' means a major 
     rule that has a direct impact on the production, 
     distribution, or consumption of energy, as determined by the 
     Secretary of Energy.
       ``(6) Flexible regulatory option.--
       ``(A) In general.--The term `flexible regulatory option' 
     means an option at a point in the regulatory process that 
     provides flexibility to any person subject to an applicable 
     rule with respect to complying with the rule.
       ``(B) Inclusion.--The term `flexible regulatory option' 
     includes any option described in subparagraph (A) that uses--
       ``(i) a market-based mechanism;
       ``(ii) an outcome-oriented, performance-based standard; or
       ``(iii) any other option that promotes flexibility, as 
     determined by the head of the applicable agency.
       ``(7) Major rule.--The term `major rule' means a rule or 
     group of closely related rules--
       ``(A) the reasonably quantifiable increased direct and 
     indirect costs of which are likely to have a gross annual 
     effect on the United States economy of at least $100,000,000, 
     or that has a significant impact on a sector of the economy, 
     as determined by--
       ``(i) the head of the agency proposing the rule; or
       ``(ii) the President (or a designee); or
       ``(B) that is otherwise designated as a major rule by the 
     head of the agency proposing the rule or the President (or a 
     designee), based on a determination that the rule is likely 
     to result in--
       ``(i) a substantial increase in costs for--

       ``(I) consumers;
       ``(II) an industrial sector;
       ``(III) nonprofit organizations;
       ``(IV) any Federal, State, or local governmental agency; or
       ``(V) a geographical region;

       ``(ii) a significant adverse effect on--

       ``(I) competition, employment, investment, productivity, 
     innovation, health, safety, or the environment; or
       ``(II) the ability of enterprises with principal places of 
     business in the United States to compete in domestic or 
     international markets;

       ``(iii) a serious inconsistency or interference with an 
     action carried out or planned to be carried out by another 
     Federal agency;
       ``(iv) the material alteration of the budgetary impact of--

[[Page 15661]]

       ``(I) entitlements, grants, user fees, or loan programs; or
       ``(II) the rights and obligations of recipients of such a 
     program; or

       ``(v) disproportionate costs to a class of regulated 
     persons, including relatively severe economic consequences 
     for that class.
       ``(8) Rule.--
       ``(A) In general.--The term `rule' has the meaning given 
     the term in section 551 of title 5, United States Code.
       ``(B) Inclusion.--The term `rule' includes any statement of 
     general applicability that alters or creates a right or 
     obligation of a person not employed by the applicable 
     regulatory agency.
       ``(C) Exclusions.--The term `rule' does not include--
       ``(i) a rule of particular applicability that approves or 
     prescribes--

       ``(I) future rates, wages, prices, services, corporate or 
     financial structures, reorganizations, mergers, acquisitions, 
     or accounting practices; or
       ``(II) any disclosure relating to an item described in 
     subclause (I);

       ``(ii) a rule relating to monetary policy or to the safety 
     or soundness of an institution (including any affiliate, 
     branch, agency, commercial lending company, or representative 
     office of the institution (within the meaning of the 
     International Banking Act of 1956 (12 U.S.C. 1841 et seq.)) 
     that is--

       ``(I) a federally-insured depository institution or any 
     affiliate of such an institution (as defined in section 2(k) 
     of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(k));
       ``(II) a credit union;
       ``(III) a Federal home loan bank;
       ``(IV) a government-sponsored housing enterprise;
       ``(V) a farm credit institution; or
       ``(VI) a foreign bank that operates in the United States; 
     or

       ``(iii) a rule relating to--

       ``(I) the payment system; or
       ``(II) the protection of--

       ``(aa) deposit insurance funds; or
       ``(bb) the farm credit insurance fund.

     ``SEC. 572. ADVISORY COMMITTEES FOR ENERGY RULES.

       ``(a) Establishment.--Not later than 90 days after the date 
     of enactment of this part, and every 5 years thereafter, the 
     head of each applicable agency shall establish an advisory 
     committee to review all energy rules promulgated by the 
     applicable agency during the 10-calendar-year period ending 
     on the date on which the advisory committee is established.
       ``(b) Membership.--
       ``(1) In general.--The head of an applicable agency shall 
     appoint not more than 15 members to serve on an advisory 
     committee.
       ``(2) Requirement.--In appointing members to serve on an 
     advisory committee under paragraph (1), the head of the 
     applicable agency shall ensure that the membership of the 
     advisory committee reflects a balanced cross-section of 
     public and private parties affected by energy rules issued by 
     the applicable agency, including--
       ``(A) small businesses;
       ``(B) units of State and local government; and
       ``(C) public interest groups.
       ``(3) Prohibition on federal government employment.--A 
     member of an advisory committee appointed under paragraph (1) 
     shall not be an employee of the applicable agency for which 
     the advisory committee is established.
       ``(c) Term; Vacancies.--
       ``(1) Term.--A member shall be appointed for the life of an 
     advisory committee.
       ``(2) Vacancies.--A vacancy on an advisory committee--
       ``(A) shall not affect the powers of the advisory 
     committee; and
       ``(B) shall be filled in the same manner as the original 
     appointment was made.
       ``(d) Chairperson; Panels.--The head of an applicable 
     agency--
       ``(1) shall select a Chairperson from among the members of 
     an advisory committee; and
       ``(2) may establish such panels as the head determines to 
     be necessary to assist an advisory committee in carrying out 
     duties of the advisory committee.
       ``(e) Duties.--
       ``(1) In general.--An advisory committee shall review all 
     energy rules promulgated by the applicable agency for which 
     the advisory committee is established during the 10-calendar-
     year period ending on the date on which the advisory 
     committee is established, in accordance with section 573.
       ``(2) Public participation.--An advisory committee shall 
     solicit public comment with respect to energy rules reviewed 
     by the advisory committee through appropriate means, 
     including--
       ``(A) hearings;
       ``(B) written comments;
       ``(C) public meetings; and
       ``(D) electronic mail.
       ``(f) Travel Expenses.--A member of an advisory committee 
     shall be allowed travel expenses, including per diem in lieu 
     of subsistence, at rates authorized for an employee of an 
     agency under subchapter I of chapter 57 of title 5, United 
     States Code, while away from the home or regular place of 
     business of the member in the performance of the duties of 
     the advisory committee.
       ``(g) Termination.--An advisory committee shall terminate 
     on the date that is 5 years after the date on which the 
     advisory committee is established.

     ``SEC. 573. REVIEW OF ENERGY RULES.

       ``(a) List.--
       ``(1) In general.--An advisory committee shall develop a 
     list describing each energy rule promulgated during the 
     preceding 10-year period by the applicable agency for which 
     the advisory committee is established that, as determined by 
     the advisory committee--
       ``(A) should be reviewed by the head of the applicable 
     agency; and
       ``(B) reasonably could be subject to such a review during 
     the 5-calendar-year period beginning on the date on which the 
     energy rule is included on the list.
       ``(2) Factors for consideration.--In developing a list 
     under paragraph (1), an advisory committee shall take into 
     consideration--
       ``(A) the cost of an energy rule with respect to energy 
     production or energy efficiency of any individual or entity 
     subject to the energy rule;
       ``(B) the extent to which an energy rule could be revised 
     to substantially increase net benefits of the energy rule, 
     including through flexible regulatory options;
       ``(C) the relative importance of an energy rule, as 
     compared to other energy rules considered for inclusion on 
     the list; and
       ``(D) the discretion of the applicable agency under an 
     applicable authorizing law or regulation to modify or repeal 
     the energy rule.
       ``(3) Submission.--Not later than 1 year after the date on 
     which an advisory committee is established and annually 
     thereafter, the advisory committee shall submit to the head 
     of the applicable agency for which the advisory committee is 
     established the list developed under paragraph (1), with each 
     energy rule represented on the list in descending order of 
     importance, in accordance with the priority assigned to 
     review of the energy rule by the advisory committee.
       ``(4) Action by applicable agency.--As soon as practicable 
     after receipt of a list under paragraph (3), the head of an 
     applicable agency shall--
       ``(A) publish the list in the Federal Register; and
       ``(B) submit to Congress a copy of the list.
       ``(b) Schedules for Review.--
       ``(1) Preliminary schedule.--
       ``(A) In general.--Not later than 60 days after the date of 
     receipt of a list under subsection (a)(3), the head of an 
     applicable agency shall develop and publish in the Federal 
     Register a preliminary schedule for review by the applicable 
     agency of the energy rules included on the list, including an 
     explanation for each modification of the list by the 
     applicable agency.
       ``(B) Notice and comment.--The head of an applicable agency 
     shall provide notice and an opportunity for public comment on 
     a preliminary schedule for a period of not less than 60 days 
     after the date of publication of the preliminary schedule 
     under subparagraph (A).
       ``(2) Final schedule.--
       ``(A) In general.--Not later than 60 days after the date of 
     expiration of the applicable comment period under paragraph 
     (1)(B), the head of the applicable agency shall develop and 
     publish in the Federal Register a final schedule for review 
     of the energy rules by the applicable agency.
       ``(B) Contents.--
       ``(i) In general.--A final schedule under subparagraph (A) 
     shall include a deadline by which the applicable agency shall 
     review each energy rule included on the list.
       ``(ii) Requirement.--A deadline described in clause (i) 
     shall be not later than 5 years after the date of publication 
     of the final schedule.
       ``(3) Requirement.--In developing a preliminary or final 
     schedule under this subsection, the head of an applicable 
     agency--
       ``(A) shall defer, to the maximum extent practicable, to 
     the recommendations of the advisory committee; but
       ``(B) may modify the list of the advisory committee, taking 
     into consideration--
       ``(i) the factors described in subsection (a)(2); and
       ``(ii) any limitation on resources or authority of the 
     applicable agency.
       ``(c) Review.--
       ``(1) Required publications.--For each energy rule included 
     on the final schedule of an applicable agency under 
     subsection (b)(2), the head of the applicable agency shall 
     publish in the Federal Register--
       ``(A) not later than the date that is 2 years before the 
     deadline applicable to the energy rule under the final 
     schedule, a notice that solicits public comment regarding 
     whether the energy rule should be continued in effect, 
     modified, or repealed;
       ``(B) not later than the date that is 1 year before the 
     deadline applicable to the energy rule under the final 
     schedule, a notice that--
       ``(i) addresses public comments received as a result of the 
     notice under subparagraph (A);
       ``(ii) contains a preliminary analysis by the applicable 
     agency relating to the energy rule;
       ``(iii) contains a preliminary determination of the 
     applicable agency regarding whether the energy rule should be 
     continued in effect, modified, or repealed; and

[[Page 15662]]

       ``(iv) solicits public comment on that preliminary 
     determination; and
       ``(C) not later than the date that is 60 days before the 
     deadline applicable to the energy rule under the final 
     schedule, a final notice relating to the energy rule that--
       ``(i) addresses public comments received as a result of the 
     notice under subparagraph (B);
       ``(ii) contains--

       ``(I) a determination of the applicable agency regarding 
     whether to continue in effect, modify, or repeal the energy 
     rule; and
       ``(II) an explanation of the determination; and

       ``(iii) if the applicable agency determines to modify or 
     repeal the energy rule, a notice of proposed rulemaking under 
     section 553 of title 5, United States Code, as applicable.
       ``(2) Determinations.--
       ``(A) In general.--Not later than the deadline applicable 
     to an energy rule under the final schedule under subsection 
     (b)(2), the head of the applicable agency shall make a 
     determination--
       ``(i) to continue the energy rule in effect;
       ``(ii) to modify the energy rule; or
       ``(iii) to repeal the energy rule.
       ``(B) Continuing in effect.--A determination by the head of 
     an applicable agency under subparagraph (A)(i) to continue an 
     energy rule in effect--
       ``(i) shall be published in the Federal Register; and
       ``(ii) shall be considered to be a final agency action 
     effective beginning on the date that is 60 days after the 
     date of publication of the determination.
       ``(C) Modification or repeal.--On a determination by the 
     head of an applicable agency to modify or repeal an energy 
     rule under clause (ii) or (iii) of subparagraph (A), the 
     applicable agency shall complete final agency action with 
     respect to the modification or repeal by not later than 2 
     years after the deadline applicable to the energy rule under 
     the final schedule under subsection (b)(2).
       ``(d) Judicial Review.--
       ``(1) In general.--No preliminary or final schedule under 
     this section shall be subject to judicial review.
       ``(2) Determination to continue in effect.--
       ``(A) Definition of reasonable alternative.--
       ``(i) In general.--In this paragraph, the term `reasonable 
     alternative', with respect to an option at a point in the 
     regulatory process, means an option that--

       ``(I) would achieve the purpose of the applicable rule; and
       ``(II) the head of the applicable Federal agency has the 
     authority to elect.

       ``(ii) Inclusion.--The term `reasonable alternative' 
     includes a flexible regulatory option.
       ``(B) Action by court.--A court of competent jurisdiction 
     may remand a determination to continue an energy rule in 
     effect under subsection (c)(2)(B) only on clear and 
     convincing evidence that a reasonable alternative was 
     available to the energy rule.
       ``(3) Failure to act.--A failure of the head of an 
     applicable agency to carry out an action required under this 
     section shall be subject to judicial review only as provided 
     in section 706(1) of title 5, United States Code.
       ``(e) Effect of Section.--
       ``(1) In general.--Nothing in this section limits the 
     discretion of an applicable agency, on making a determination 
     described in clause (ii) or (iii) of subsection (c)(2)(A), to 
     elect not to modify or repeal the applicable energy rule.
       ``(2) Treatment.--An election of an applicable agency 
     described in paragraph (1) shall be considered to be a final 
     agency action for purposes of judicial review.

     ``SEC. 574. PROSPECTIVE CONSIDERATION OF ENERGY RULES.

       ``(a) Determination.--
       ``(1) In general.--In promulgating any rule, the head of an 
     applicable agency shall determine whether the rule is an 
     energy rule.
       ``(2) Treatment.--The head of an applicable agency may 
     determine under paragraph (1) that a set of related rules 
     proposed to be promulgated by the applicable agency shall be 
     considered to be an energy rule.
       ``(b) Regulatory Impact Analysis.--
       ``(1) In general.--In promulgating an energy rule, the head 
     of an applicable agency shall prepare--
       ``(A) by not later than the date that is 60 days before the 
     date of publication of notice of the proposed rulemaking, a 
     preliminary regulatory impact analysis relating to the energy 
     rule; and
       ``(B) a final regulatory impact analysis relating to the 
     energy rule, which shall be submitted together with the final 
     energy rule by not later than the date that is 30 days before 
     the date of publication of the final energy rule.
       ``(2) Contents.--A preliminary or final regulator impact 
     analysis relating to an energy rule under paragraph (1) shall 
     contain--
       ``(A) a description of the potential benefits of the energy 
     rule, including a description of--
       ``(i) any beneficial effects that cannot be quantified in 
     monetary terms; and
       ``(ii) an identification of individuals and entities likely 
     to receive the benefits;
       ``(B) an explanation of the necessity, legal authority, and 
     reasonableness of the energy rule together with a description 
     of the condition that the energy rule is intended to address;
       ``(C) a description of the potential costs of the energy 
     rule, including a description of--
       ``(i) any costs that cannot be quantified in monetary 
     terms; and
       ``(ii) an identification of the individuals and entities 
     likely to bear the costs;
       ``(D)(i) an analysis of any alternative approach, including 
     market-based mechanisms, that could substantially achieve the 
     regulatory goal of the energy rule at a lower cost; and
       ``(ii) an explanation of the reasons why the alternative 
     approach was not adopted, together with a demonstration that 
     the energy rule provides the least-costly approach with 
     respect to the regulatory goal;
       ``(E)(i) an analysis of the benefits and costs of the 
     energy rule to the national energy supply and national energy 
     security; and
       ``(ii) an explanation in any case in which the energy rule 
     will cause undue harm to the energy stability of any region;
       ``(F) a statement that, as applicable--
       ``(i) the energy rule does not conflict with, or duplicate, 
     any other rule; or
       ``(ii) describes the reasons why such a conflict or 
     duplication exists; and
       ``(G) a statement that describes whether the energy rule 
     will require--
       ``(i) any onsite inspection; or
       ``(ii) any individual or entity--

       ``(I) to maintain records that will be subject to 
     inspection; or
       ``(II) to obtain any license, permit, or other 
     certification, including a description of any associated fees 
     or fines.

       ``(3) Combination with flexibility analysis.--An energy 
     rule regulatory impact analysis under paragraph (1) may be 
     prepared together with the regulatory flexibility analysis 
     relating to the energy rule under sections 603 and 604 of 
     title 5, United States Code.
       ``(c) Review of Regulatory Impact Analyses.--
       ``(1) In general.--The head of an applicable agency shall 
     review, and prepare comments regarding--
       ``(A) each notice of proposed rulemaking relating to an 
     energy rule of the applicable agency;
       ``(B) each preliminary and final regulatory impact analysis 
     relating to an energy rule of the applicable agency under 
     this section; and
       ``(C) each final energy rule of the applicable agency.
       ``(2) Consultation.--On receipt of a request of a head of 
     an applicable agency, any officer or employee of another 
     applicable agency shall consult with the head regarding a 
     review under paragraph (1).
       ``(3) Requirement.--The head of an applicable agency shall 
     not promulgate an energy rule until the date on which the 
     final regulatory impact analysis relating to the energy rule 
     is published in the Federal Register.
       ``(4) Review of other applicable agencies.--
       ``(A) In general.--On receipt of a request of a head of an 
     applicable agency, another applicable agency--
       ``(i) shall permit the head to review, and prepare comments 
     regarding--

       ``(I) a notice of proposed rulemaking relating to an energy 
     rule of the applicable agency; or
       ``(II) a preliminary or final regulatory impact analysis 
     relating to an energy rule of the applicable agency under 
     this section; and

       ``(ii) shall not publish the notice of proposed rulemaking 
     or preliminary or final regulatory impact analysis until the 
     earlier of--

       ``(I) the date on which--

       ``(aa) the head completes the review; and
       ``(bb) the applicable agency submits to the head a response 
     to any comments of the head and includes in the comments of 
     the applicable agency the response, in accordance with 
     subparagraph (B)(ii); and

       ``(II) the expiration of the deadline described in 
     subparagraph (B)(i).

       ``(B) Deadlines.--
       ``(i) Review and comment by head.--A head of an applicable 
     agency shall complete a review of a notice of proposed 
     rulemaking or preliminary or final regulatory impact analysis 
     of another applicable agency under subparagraph (A) by not 
     later than 90 days after the date on which the head submits a 
     request for the review.
       ``(ii) Response by applicable agency.--An applicable agency 
     shall submit to the head of another applicable agency that 
     conducted a review and submitted comments regarding an energy 
     rule under subparagraph (A) a response to those comments by 
     not later than 90 days after the date on which the comments 
     are received.
       ``(d) Plain Language Requirement.--The head of an 
     applicable agency shall ensure, to the maximum extent 
     practicable, that each energy rule and each regulatory impact 
     analysis relating to an energy rule--
       ``(1) is written in plain language; and
       ``(2) provides adequate notice of the requirements of the 
     rule to affected individuals and entities.
       ``(e) Nonapplicability to Certain Rules and Agencies.--
       ``(1) Definition of emergency situation.--In this 
     subsection, the term `emergency situation' means a situation 
     that--

[[Page 15663]]

       ``(A) is immediately impending and extraordinary in nature; 
     or
       ``(B) demands attention due to a condition, circumstance, 
     or practice that, if no action is taken, would be reasonably 
     expected to cause--
       ``(i) death, serious illness, or severe injury to an 
     individual; or
       ``(ii) substantial danger to private property or the 
     environment.
       ``(2) Nonapplicability.--This section shall not apply to--
       ``(A) a major rule promulgated in response to an emergency 
     situation, if a report describing the major rule and the 
     emergency situation is submitted to the head of each affected 
     applicable agency as soon as practicable after promulgation 
     of the major rule;
       ``(B) a major rule proposed or promulgated in connection 
     with the implementation of monetary policy or to ensure the 
     safety and soundness of--
       ``(i) a federally-insured depository institution or an 
     affiliate of such an institution;
       ``(ii) a credit union; or
       ``(iii) a government-sponsored housing enterprise regulated 
     by the Office of Federal Housing Enterprise Oversight;
       ``(C) an action by an applicable agency that the head of 
     the applicable agency certifies is limited to interpreting, 
     implementing, or administering the internal revenue laws of 
     the United States, including any regulation proposed or 
     issued in connection with ensuring the collection of taxes 
     from a subsidiary of a foreign company doing business in the 
     United States; or
       ``(D) a major rule proposed or promulgated pursuant to 
     section 553 of title 5, United States Code, in connection 
     with imposing a trade sanction against any country that 
     engages in illegal trade activities against the United States 
     that are injurious to United States technology, jobs, 
     pensions, or general economic well-being.''.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Director of the Office of 
     Management and Budget shall submit to Congress a report that 
     contains an analysis of--
       (1) rulemaking procedures of Federal departments and 
     agencies; and
       (2) the impact of those procedures on--
       (A) the public; and
       (B) the regulatory process.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply only to final rules of Federal departments and 
     agencies the rulemaking process for which begins after the 
     date of enactment of this Act.
       (d) Other Policies and Goals.--
       (1) Declaration of policy.--Section 101 of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331) is 
     amended--
       (A) by redesignating subsection (c) as subsection (d); and
       (B) by inserting after subsection (b) the following:
       ``(c) Energy Security.--Congress recognizes that, because 
     the production and consumption of energy has a profound 
     impact on the environment, and the availability of affordable 
     energy resources is essential to continued national security 
     and economic security of the United States, it is the policy 
     of the United States to ensure that--
       ``(1) each proposed Federal action should be analyzed with 
     respect to the impact of the proposed Federal action on the 
     energy security of the United States; and
       ``(2) an analysis under paragraph (1) should be taken into 
     consideration in developing Federal plans, rules, programs, 
     and actions.''.
       (2) Reports.--Section 102(2)(C) of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is 
     amended--
       (A) by redesignating clauses (iii) through (v) as clauses 
     (iv) through (vi), respectively; and
       (B) by inserting after clause (ii) the following:
       ``(iii) the impact on the energy security of the United 
     States in terms of the effects to the production, 
     distribution, and consumption of energy of the proposal or 
     Federal action;''.
                                 ______
                                 
  SA 1560. Mr. HAGEL submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, developing greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

  TITLE VIII--TAX INCENTIVES FOR PRODUCTION AND CONSERVATION OF ENERGY

     SEC. 801. INCOME AND GAINS FROM ELECTRICITY TRANSMISSION 
                   SYSTEMS TREATED AS QUALIFYING INCOME FOR 
                   PUBLICLY TRADED PARTNERSHIPS.

       (a) In General.--Section 7704(d)(1) of the Internal Revenue 
     Code of 1986 (defining qualifying income) is amended by 
     redesignating subparagraphs (F) and (G) as subparagraphs (G) 
     and (H), respectively, and by inserting after subparagraph 
     (E) the following new subparagraph:
       ``(F) income and gains from the transmission of electricity 
     at 69 or more kilovolts through any property the original use 
     of which commences after December 31, 2006,''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act, 
     in taxable years ending after such date.

     SEC. 802. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR 
                   DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT 
                   DEVICES.

       (a) In General.--Section 168(e)(3)(B) of the Internal 
     Revenue Code of 1986 (defining 5-year property) is amended by 
     striking ``and'' at the end of clause (v), by striking the 
     period at the end of clause (vi)(III) and inserting ``, 
     and'', and by inserting after clause (vi) the following new 
     clause:
       ``(vii) any qualified energy management device.''.
       (b) Definition of Qualified Energy Management Device.--
     Section 168(i) of such Code (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 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 time-based meter and related communications equipment 
     which is capable of being used by the taxpayer as part of a 
     system that--
       ``(i) measures and records electricity usage data on a 
     time-differentiated basis in at least 24 separate time 
     segments per day,
       ``(ii) provides for the exchange of information between 
     supplier or provider and the customer's energy management 
     device in support of time-based rates or other forms of 
     demand response, and
       ``(iii) provides data to such supplier or provider so that 
     the supplier or provider can provide energy usage information 
     to customers electronically.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service in taxable years 
     ending after the date of the enactment of this Act.

     SEC. 803. SPECIAL DEPRECIATION ALLOWANCE FOR CELLULOSIC 
                   BIOMASS ETHANOL PLANT PROPERTY.

       (a) In General.--Section 168 of the Internal Revenue Code 
     of 1986 (relating to accelerated cost recovery system) is 
     amended by adding at the end the following:
       ``(l) Special Allowance for Cellulosic Biomass Ethanol 
     Plant Property.--
       ``(1) Additional allowance.--In the case of any qualified 
     cellulosic biomass ethanol plant property--
       ``(A) the depreciation deduction provided by section 167(a) 
     for the taxable year in which such property is placed in 
     service shall include an allowance equal to 50 percent of the 
     adjusted basis of such property, and
       ``(B) the adjusted basis of such property shall be reduced 
     by the amount of such deduction before computing the amount 
     otherwise allowable as a depreciation deduction under this 
     chapter for such taxable year and any subsequent taxable 
     year.
       ``(2) Qualified cellulosic biomass ethanol plant 
     property.--
       ``(A) In general.--The term `qualified cellulosic biomass 
     ethanol plant property' means property of a character subject 
     to the allowance for depreciation--
       ``(i) which is used in the United States solely to produce 
     cellulosic biomass ethanol,
       ``(ii) the original use of which commences with the 
     taxpayer after the date of the enactment of this subsection,
       ``(iii) which has a nameplate capacity of 100,000,000 
     gallons per year of cellulosic biomass ethanol,
       ``(iv) which is acquired by the taxpayer by purchase (as 
     defined in section 179(d)) after the date of the enactment of 
     this subsection, but only if no written binding contract for 
     the acquisition was in effect on or before the date of the 
     enactment of this subsection, and
       ``(v) which is placed in service by the taxpayer before 
     January 1, 2013.
       ``(B) Exceptions.--
       ``(i) Alternative depreciation property.--Such term shall 
     not include any property described in section 
     168(k)(2)(D)(i).
       ``(ii) Tax-exempt bond-financed property.--Such term shall 
     not include any property any portion of which is financed 
     with the proceeds of any obligation the interest on which is 
     exempt from tax under section 103.
       ``(iii) Election out.--If a taxpayer makes an election 
     under this subparagraph with respect to any class of property 
     for any taxable year, this subsection shall not apply to all 
     property in such class placed in service during such taxable 
     year.
       ``(3) Cellulosic biomass ethanol.--For purposes of this 
     subsection, the term `cellulosic biomass ethanol'--
       ``(A) means ethanol derived from any lignocellulosic or 
     hemicellulosic matter that

[[Page 15664]]

     is available on a renewable or recurring basis, including--
       ``(i) dedicated energy crops and trees,
       ``(ii) wood and wood residues,
       ``(iii) plants,
       ``(iv) grasses,
       ``(v) agricultural residues,
       ``(vi) fibers,
       ``(vii) animal wastes and other waste materials, and
       ``(viii) municipal and solid waste, and
       ``(B) includes any ethanol produced in facilities where 
     animal wastes or other waste materials are digested or 
     otherwise used to displace 90 percent or more of the fossil 
     fuel normally used in the production of ethanol.
       ``(4) Special rules.--For purposes of this subsection, 
     rules similar to the rules of subparagraph (E) of section 
     168(k)(2) shall apply, except that such subparagraph shall be 
     applied--
       ``(A) by substituting `the date of the enactment of 
     subsection (l)' for `September 10, 2001' each place it 
     appears therein,
       ``(B) by substituting `January 1, 2013' for `January 1, 
     2005' in clause (i) thereof, and
       ``(C) by substituting `qualified cellulosic biomass ethanol 
     plant property' for `qualified property' in clause (iv) 
     thereof.
       ``(5) Allowance against alternative minimum tax.--For 
     purposes of this subsection, rules similar to the rules of 
     section 168(k)(2)(G) shall apply.
       ``(6) Recapture.--For purposes of this subsection, rules 
     similar to the rules under section 179(d)(10) shall apply 
     with respect to any qualified cellulosic biomass ethanol 
     plant property which ceases to be qualified cellulosic 
     biomass ethanol plant property.''.
       (b) Effective Date.--The amendment 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. 804. SPECIAL DEPRECIATION ALLOWANCE FOR COAL-TO-LIQUID 
                   FACILITIES.

       (a) In General.--Section 168 of the Internal Revenue Code 
     of 1986 (relating to accelerated cost recovery system), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(m) Special Allowance for Coal-to-Liquid Plant 
     Property.--
       ``(1) Additional allowance.--In the case of any qualified 
     coal-to-liquid plant property--
       ``(A) the depreciation deduction provided by section 167(a) 
     for the taxable year in which such property is placed in 
     service shall include an allowance equal to 50 percent of the 
     adjusted basis of such property, and
       ``(B) the adjusted basis of such property shall be reduced 
     by the amount of such deduction before computing the amount 
     otherwise allowable as a depreciation deduction under this 
     chapter for such taxable year and any subsequent taxable 
     year.
       ``(2) Qualified coal-to-liquid plant property.--
       ``(A) In general.--The term `qualified coal-to-liquid plant 
     property' means property of a character subject to the 
     allowance for depreciation--
       ``(i) which is part of a commercial-scale project that 
     converts coal to 1 or more liquid or gaseous transportation 
     fuel that demonstrates the capture, and sequestration or 
     disposal or use of, the carbon dioxide produced in the 
     conversion process, and that, on the basis of carbon dioxide 
     sequestration plan prepared by the applicant, is certified by 
     the Administrator of the Environmental Protection Agency, in 
     consultation with the Secretary of Energy, as producing fuel 
     with life cycle carbon dioxide emissions at or below the 
     average life-cycle carbon dioxide emissions for the same type 
     of fuel produced at traditional petroleum based facilities 
     with similar annual capacities,
       ``(ii) which is used in the United States solely to produce 
     coal-to-liquid fuels,
       ``(iii) the original use of which commences with the 
     taxpayer after the date of the enactment of this subsection,
       ``(iv) which has a nameplate capacity of 30,000 barrels per 
     day production of coal-to-liquid fuels;
       ``(v) which is acquired by the taxpayer by purchase (as 
     defined in section 179(d)) after the date of the enactment of 
     this subsection, but only if no written binding contract for 
     the acquisition was in effect on or before the date of the 
     enactment of this subsection, and
       ``(vi) which is placed in service by the taxpayer before 
     January 1, 2013.
       ``(B) Exceptions.--
       ``(i) Alternative depreciation property.--Such term shall 
     not include any property described in section 
     168(k)(2)(D)(i).
       ``(ii) Tax-exempt bond-financed property.--Such term shall 
     not include any property any portion of which is financed 
     with the proceeds of any obligation the interest on which is 
     exempt from tax under section 103.
       ``(iii) Election out.--If a taxpayer makes an election 
     under this subparagraph with respect to any class of property 
     for any taxable year, this subsection shall not apply to all 
     property in such class placed in service during such taxable 
     year.
       ``(3) Special rules.--For purposes of this subsection, 
     rules similar to the rules of subparagraph (E) of section 
     168(k)(2) shall apply, except that such subparagraph shall be 
     applied--
       ``(A) by substituting `the date of the enactment of 
     subsection (l)' for `September 10, 2001' each place it 
     appears therein,
       ``(B) by substituting `January 1, 2013' for `January 1, 
     2005' in clause (i) thereof, and
       ``(C) by substituting `qualified coal-to-liquid plant 
     property' for `qualified property' in clause (iv) thereof.
       ``(4) Allowance against alternative minimum tax.--For 
     purposes of this subsection, rules similar to the rules of 
     section 168(k)(2)(G) shall apply.
       ``(5) Recapture.--For purposes of this subsection, rules 
     similar to the rules under section 179(d)(10) shall apply 
     with respect to any qualified coal-to-liquid plant property 
     which ceases to be qualified coal-to-liquid plant 
     property.''.
       (b) Effective Date.--The amendment made by this subsection 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 805. DEDICATED ETHANOL PIPELINES TREATED AS 15-YEAR 
                   PROPERTY.

       (a) In General.--Section 168(e)(3)(E) of the Internal 
     Revenue Code of 1986 (defining 15-year property), is amended 
     by striking ``and'' at the end of clause (vii), by striking 
     the period at the end of clause (viii) and by inserting ``, 
     and'', and by adding at the end the following new clause:
       ``(ix) any dedicated ethanol distribution line the original 
     use of which commences with the taxpayer after August 1, 
     2007, and which is placed in service before January 1, 
     2013.''.
       (b) Alternative System.--The table contained in section 
     168(g)(3)(B) of such Code (relating to special rule for 
     certain property assigned to classes) is amended by inserting 
     after the item relating to subparagraph (E)(viii) the 
     following new item:

``(E)(ix)........................................................35.''.

       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to property placed in service after August 1, 2007.
       (2) Exception.--The amendments made by this section shall 
     not apply to any property with respect to which the taxpayer 
     or related party has entered into a binding contract for the 
     construction thereof on or before August 1, 2007, or, in the 
     case of self-constructed property, has started construction 
     on or before such date.

     SEC. 806. CREDIT FOR POLLUTION ABATEMENT EQUIPMENT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     inserting after section 45N the following new section:

     ``SEC. 45O. CREDIT FOR POLLUTION ABATEMENT EQUIPMENT.

       ``(a) General Rule.--For purposes of section 38, the 
     pollution abatement equipment credit for any taxable year is 
     an amount equal to 30 percent of the costs of any qualified 
     pollution abatement equipment property placed in service by 
     the taxpayer during the taxable year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     for any taxable year with respect to any qualified pollution 
     abatement equipment property shall not exceed--
       ``(1) $50,000,000 in the case of a property of a character 
     subject an allowance for depreciation provided in section 
     167, and
       ``(2) $30,000,000 in any other case.
       ``(c) Qualified Pollution Abatement Equipment Property.--
     For purposes of this section, the term `qualified pollution 
     abatement equipment property' means pollution abatement 
     equipment--
       ``(1) which is part of a unit or facility which either--
       ``(A) utilizes technologies that meet relevant Federal and 
     State clean air requirements applicable to the unit or 
     facility, including being adequately demonstrated for 
     purposes of section 111 of the Clean Air Act (42 U.S.C. 
     7411), achievable for purposes of section 169 of that Act (42 
     U.S.C. 7479), or achievable in practice for purposes of 
     section 171 of that Act (42 U.S.C. 7501, or
       ``(B) utilizes equipment or processes that exceed relevant 
     Federal or State clean air requirements applicable to the 
     unit or facility by achieving greater efficiency or 
     environmental performance,
       ``(2) which is installed on a voluntary basis and not as a 
     result of an agreement with a Federal or State agency or 
     required as a decree from a judicial decision, and
       ``(3) with respect to which an election under section 169 
     is not in effect.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) of such Code 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 pollution abatement equipment 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 of such Code is 
     amended by inserting after the item relating to section 45N 
     the following new item:

``Sec. 45O. Credit for pollution abatement equipment.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to expenditures made after the date of the 
     enactment of this Act, in taxable years ending after such 
     date.

[[Page 15665]]



     SEC. 807. MODIFICATIONS RELATING TO CLEAN RENEWABLE ENERGY 
                   BONDS.

       (a) Clean Renewable Energy Bond.--Paragraph (1) of section 
     54(d) of the Internal Revenue Code of 1986 (defining clean 
     renewable energy bond) is amended--
       (1) in subparagraph (A), by striking ``pursuant'' and all 
     that follows through ``subsection (f)(2)'',
       (2) in subparagraph (B), by striking ``95 percent or more 
     of the proceeds'' and inserting ``90 percent or more of the 
     net proceeds'', and
       (3) in subparagraph (D), by striking ``subsection (h)'' and 
     inserting ``subsection (g)''.
       (b) Qualified Project.--Subparagraph (A) of section 
     54(d)(2) of such Code (defining qualified project) is amended 
     to read as follows:
       ``(A) In general.--The term `qualified project' means any 
     qualified facility (as determined under section 45(d) without 
     regard to paragraphs (8) and (10) thereof and to any placed 
     in service requirement) owned by a qualified borrower and 
     also without regard to the following:
       ``(i) In the case of a qualified facility described in 
     section 45(d)(9) (regarding incremental hydropower 
     production), any determination of incremental hydropower 
     production and related calculations shall be determined by 
     the qualified borrower based on a methodology that meets 
     Federal Energy Regulatory Commission standards.
       ``(ii) In the case of a qualified facility described in 
     section 45(d)(9) (regarding hydropower production), the 
     facility need not be licensed by the Federal Energy 
     Regulation Commission if the facility, when constructed, will 
     meet Federal Energy Regulatory Commission licensing 
     requirements and other applicable environmental, licensing, 
     and regulatory requirements.''.
       (c) Reimbursement.--Subparagraph (C) of section 54(d)(2) of 
     such Code (relating to reimbursement) is amended to read as 
     follows:
       ``(C) Reimbursement.--For purposes of paragraph (1)(B), 
     proceeds of a clean renewable energy bond may be issued to 
     reimburse a qualified borrower for amounts paid after the 
     date of the enactment of this subparagraph in the same manner 
     as proceeds of State and local government obligations the 
     interest upon which is exempt from tax under section 103.''.
       (d) Change in Use.--Subparagraph (D) of section 54(d)(2) of 
     such Code (relating to treatment of changes in use) is 
     amended by striking ``or qualified issuer''.
       (e) Maximum Term.--Paragraph (2) of section 54(e) of such 
     Code (relating to maximum term) is amended by striking 
     ``without regard to the requirements of subsection (1)(6) 
     and''.
       (f) Repeal of Limitation on Amount of Bonds Designated.--
     Section 54 of such Code is amended by striking subsection (f) 
     (relating to repeal of limitation on amount of bonds 
     designated).
       (g) Special Rules Relating to Expenditures.--Subsection (h) 
     of section 54 of such Code (relating to special rules 
     relating to expenditures) is amended--
       (1) in paragraph (1)(A), by striking ``95 percent of the 
     proceeds'' and inserting ``90 percent of the net proceeds'',
       (2) in paragraph (1)(B)--
       (A) by striking ``10 percent of the proceeds'' and 
     inserting ``5 percent of the net proceeds'', and
       (B) by striking ``the 6-month period beginning on'' both 
     places it appears and inserting ``1 year of'',
       (3) in paragraph (1)(C), by inserting ``net'' before 
     ``proceeds'', and
       (4) in paragraph (3), by striking ``95 percent of the 
     proceeds'' and inserting ``90 percent of the net proceeds''.
       (h) Repeal of Special Rules Relating to Arbitrage.--Section 
     54 of such Code is amended by striking subsection (i) 
     (relating to repeal of special rules relating to arbitrage).
       (i) Public Power Entity.--Subsection (j) of section 54 of 
     such Code (defining cooperative electric company; qualified 
     energy tax credit bond lender; governmental body; qualified 
     borrower) is amended--
       (1) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively,
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Public power entity.--The term `public power entity' 
     means a State utility with a service obligation, as such 
     terms are defined in section 217 of the Federal Power Act (as 
     in effect on the date of enactment of this paragraph).'',
       (3) in paragraph (5), as so redesignated--
       (A) by striking ``or'' at the end of subparagraph (B),
       (B) by striking the period at the end of subparagraph (C) 
     and inserting ``, or'', and
       (C) by adding at the end the following new subparagraph:
       ``(D) a public power entity.'', and
       (4) in paragraph (6), as so redesignated--
       (A) by striking ``or'' at the end of subparagraph (A),
       (B) by striking the period at the end of subparagraph (B) 
     and inserting ``, or'', and
       (C) by adding at the end the following new subparagraph:
       ``(C) a public power entity.''.
       (j) Repeal of Ratable Principal Amortization Requirement.--
     Subsection (l) of section 54 of such Code (relating to other 
     definitions and special rules) is amended by striking 
     paragraph (5) and redesignating paragraph (6) as paragraph 
     (5).
       (k) Net Proceeds.--Subsection (l) of section 54 of such 
     Code (relating to other definitions and special rules), as 
     amended by subsection (j), is amended by redesignating 
     paragraphs (2), (3), (4), and (5) as paragraphs (4), (5), 
     (6), and (7), respectively, and by inserting after paragraph 
     (1) the following new paragraphs:
       ``(2) Net proceeds.--The term `net proceeds' means, with 
     respect to an issue, the proceeds of such issue reduced by 
     amounts in a reasonably required reserve or replacement fund.
       ``(3) Limitation on amount in reserve or replacement fund 
     which may be financed by issue.--A bond issued as part of an 
     issue shall not be treated as a clean renewable energy bond 
     if the amount of the proceeds from the sale of such issue 
     which is part of any reserve or replacement fund exceeds 10 
     percent of the proceeds of the issue (or such higher amount 
     which the issuer establishes is necessary to the satisfaction 
     of the Secretary).''.
       (l) Other Special Rules.--Subsection (l) of section 54 of 
     such Code ((relating to other definitions and special rules), 
     as amended by subsections (j) and (k), is amended by adding 
     at the end the following new paragraphs:
       ``(8) Credits may be separated.--There may be a separation 
     (including at issuance) of the ownership of a clean renewable 
     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 who on the credit allowance date holds the 
     instrument evidencing the entitlement to the credit and not 
     to the holder of the bond.
       ``(9) Treatment for estimated tax purposes.--Solely for the 
     purposes of sections 6654 and 6655, the credit allowed by 
     this section to a taxpayer by reason of holding a qualified 
     energy tax credit bond on a credit allowance date (or the 
     credit in the case of a separation as provided in paragraph 
     (8)) shall be treated as if it were a payment of estimated 
     tax made by the taxpayer on such date.
       ``(10) Carryback and carryforward of unused credits.--If 
     the sum of the credit exceeds the limitation imposed by 
     subsection (c) for any taxable year, any credits may be 
     applied in a manner similar to the rules set forth in section 
     39.''.
       (m) Termination.--Subsection (m) of section 54 of such Code 
     (relating to termination) is amended by striking ``2008'' and 
     inserting ``2013''.
       (n) Clerical Redesignations.--Section 54 of such Code, as 
     amended by the preceding provisions of this section, is 
     amended by redesignating subsections (g), (h), (j), (k), (l), 
     and (m) as subsections (f), (g), (h), (i), (j), and (k), 
     respectively.
       (o) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 808. EXTENSION OF RENEWABLE ENERGY PRODUCTION TAX 
                   CREDIT.

       (a) In General.--Section 45 of the Internal Revenue Code of 
     1986 is amended--
       (1) by striking ``10-year period beginning on the date the 
     facility was originally placed in service,'' in subsection 
     (a)(2)(A)(ii) and inserting ``5-year period beginning on the 
     date the facility was originally placed in service,'',
       (2) by striking ``in subsection (a)(2)(A)(ii).'' in 
     subsection (b)(4)(B)(i) and inserting ``beginning on the date 
     the facility was originally placed in service.'',
       (3) by striking ``in subsection (a)(2)(A)(ii).'' in 
     subsection (b)(4)(B)(ii) and inserting ``beginning on the 
     date the facility was originally placed in service.'', and
       (4) by striking ``January 1, 2009'' each place it appears 
     in subsection (d) and inserting ``January 1, 2014''.
       (b) 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. 809. ENERGY CREDIT EXTENDED TO GREEN BUILDINGS.

       (a) In General.--Section 48(a)(3)(A) of the Internal 
     Revenue Code of 1986 (defining energy property) is amended--
       (1) by striking ``or'' at the end of clause (iii),
       (2) by inserting after clause (iv) the following new 
     clauses:
       ``(v) thermal storage system determined by the Secretary of 
     Energy through a site specific feasibility study which allows 
     for a reduction in energy use of 10 percent per year compared 
     with conventional technologies, or
       ``(vi) daylight dimming technologies determined by the 
     Secretary of Energy,''.
       (b) Credit Rate.--Section 48(a)(2)(A) of such Code 
     (relating to energy percentage) is amended--
       (1) by striking ``and'' at the end of clause (i)(III),
       (2) by redesignating clause (ii) as clause (iii), and
       (3) by inserting after clause (i) the following new clause:
       ``(ii) 50 percent in the case of energy property described 
     in clause (v) or (vi) of paragraph (3)(A), and''.

[[Page 15666]]

       (c) Limitations.--Section 48 of such Code is amended by 
     adding at the end the following new subsection:
       ``(d) Energy Property for Green Buildings.--
       ``(1) Thermal storage unit.--In the case of energy property 
     described in paragraph (3)(A)(v) placed in service during the 
     taxable year, the credit otherwise determined under 
     subsection (a)(1) for such year with respect to such property 
     shall not exceed $500,000.
       ``(2) Daylight dimming technologies.--In the case of energy 
     property described in paragraph (3)(A)(vi) placed in service 
     during the taxable year, the credit otherwise determined 
     under subsection (a)(1) for such year with respect to such 
     property shall not exceed $500,000.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, in taxable years ending after such date, under 
     rules similar to the rules of 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).
                                 ______
                                 
  SA 1561. Mr. KOHL submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce 
our Nation's dependency on foreign oil by investing in clean, 
renewable, and alternative energy resources, promoting new emerging 
energy technologies, developing greater efficiency, and creating a 
Strategic Energy Efficiency and Renewables Reserve to invest in 
alternative energy, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end, add the following:

                       TITLE VIII--MISCELLANEOUS

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Strategic Refinery Reserve 
     Act of 2007''.

     SEC. 802. DEFINITIONS.

       In this title:
       (1) Reserve.--The term ``Reserve'' means the Strategic 
     Refinery Reserve established under section 803.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 803. STRATEGIC REFINERY RESERVE.

       (a) Establishment.--
       (1) In general.--The Secretary shall establish and operate 
     a Strategic Refinery Reserve in the United States.
       (2) Authorities.--To carry out this section, the Secretary 
     may contract for--
       (A) the construction or operation of new refineries; or
       (B) the acquisition or reopening of closed refineries.
       (b) Operation.--The Secretary shall operate the Reserve--
       (1) to provide petroleum products to--
       (A) the Federal Government (including the Department of 
     Defense); and
       (B) any State governments and political subdivisions of 
     States that opt to purchase refined petroleum products from 
     the Reserve; and
       (2) to provide petroleum products to the general public 
     during any period described in subsection (c).
       (c) Emergency Periods.--The Secretary shall make petroleum 
     products from the Reserve available under subsection (b)(2) 
     only if the President determines that--
       (1) there is a severe energy supply interruption (as 
     defined in section 3 of the Energy Policy and Conservation 
     Act (42 U.S.C. 6202)); or
       (2)(A) there is a regional petroleum product supply 
     shortage of significant scope and duration; and
       (B) action taken under subsection (b)(2) would directly and 
     significantly assist in reducing the adverse impact of the 
     shortage.
       (d) Locations.--In determining the location of a refinery 
     for inclusion in the Reserve, the Secretary shall take into 
     account--
       (1) the impact of the refinery on the local community, as 
     determined after requesting and reviewing any comments from 
     State and local governments and the public;
       (2) regional vulnerability to--
       (A) natural disasters; and
       (B) terrorist attacks;
       (3) the proximity of the refinery to the Strategic 
     Petroleum Reserve;
       (4) the accessibility of the refinery to energy 
     infrastructure and Federal facilities (including facilities 
     under the jurisdiction of the Department of Defense);
       (5) the need to minimize adverse public health and 
     environmental impacts; and
       (6) the energy needs of the Federal Government (including 
     the Department of Defense).
       (e) Increased Capacity.--The Secretary shall ensure that 
     refineries in the Reserve are designed to provide a rapid 
     increase in production capacity during periods described in 
     subsection (c).
       (f) Implementation Plan.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a plan for the establishment and operation of the Reserve 
     under this section.
       (2) Requirements.--The plan required under paragraph (1) 
     shall--
       (A)(i)(I) provide for, within 2 years after the date of 
     enactment of this Act, a capacity within the Reserve equal to 
     5 percent of the total United States daily demand for 
     gasoline, diesel, and aviation fuel; and
       (II) provide for a capacity within the Reserve such that 
     not less than 75 percent of the gasoline and diesel fuel 
     produced by the Reserve contain an average of 10 percent 
     renewable fuel (as defined in 211(o)(1) of the Clean Air Act 
     (42 U.S.C. 7545(o)(1))); or
       (ii) if the Secretary finds that achieving the capacity 
     described in subclause (I) or (II) of clause (i) is not 
     feasible within 2 years after the date of enactment of this 
     Act, include--
       (I) an explanation from the Secretary of the reasons why 
     achieving the capacity within the timeframe is not feasible; 
     and
       (II) provisions for achieving the required capacity as soon 
     as practicable; and
       (B) provide for adequate delivery systems capable of 
     providing Reserve product to the entities described in 
     subsection (b)(1).
       (g) Coordination.--The Secretary shall carry out this 
     section in coordination with the Secretary of Defense.
       (h) Compliance With Federal Environmental Requirements.--
     Nothing in this section affects any requirement to comply 
     with Federal or State environmental or other laws.

     SEC. 804. REPORTS ON REFINERY CLOSURES.

       (a) Reports to Secretary.--
       (1) In general.--Not later than 180 days before permanently 
     closing a refinery in the United States, the owner or 
     operator of the refinery shall submit to the Secretary notice 
     of the closing.
       (2) Requirements.--The notice required under paragraph (1) 
     with respect to a refinery to be closed shall include an 
     explanation of the reasons for the closing of the refinery.
       (b) Reports to Congress.--The Secretary shall, in 
     consultation with the Secretary of Defense, the Administrator 
     of the Environmental Protection Agency, and the Federal Trade 
     Commission and as soon as practicable after receipt of a 
     report under subsection (a), submit to Congress--
       (1) the report; and
       (2) an analysis of the effects of the proposed closing 
     covered by the report on--
       (A) in accordance with the Clean Air Act (42 U.S.C. 7401 et 
     seq.), supplies of clean fuel;
       (B) petroleum product prices;
       (C) competition in the refining industry;
       (D) the economy of the United States;
       (E) regional economies;
       (F) regional supplies of refined petroleum products;
       (G) the supply of fuel to the Department of Defense; and
       (H) energy security.

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