S 3349 ISCommentsClose CommentsPermalink

To increase energy assistance for low-income persons, to extend energy tax incentives, and for other purposes.CommentsClose CommentsPermalink

July 28, 2008CommentsClose CommentsPermalink

Ms. COLLINS introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To increase energy assistance for low-income persons, to extend energy tax incentives, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Energy Assistance Act of 2008’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--ENERGY ASSISTANCE

Sec. 101. Weatherization assistance.CommentsClose CommentsPermalink





Sec. 102. Energy Assistance Fund.CommentsClose CommentsPermalink

TITLE II--TAX PROVISIONS

Sec. 200. Reference.CommentsClose CommentsPermalink

Subtitle A--Clean Stoves

Sec. 201. Credit for replacement of wood-burning stoves meeting environmental standards.CommentsClose CommentsPermalink

Subtitle B--Renewable Energy Incentives

Sec. 211. Renewable energy credit.CommentsClose CommentsPermalink





Sec. 212. Production credit for electricity produced from marine renewables.CommentsClose CommentsPermalink





Sec. 213. Energy credit.CommentsClose CommentsPermalink





Sec. 214. Credit for residential energy efficient property.CommentsClose CommentsPermalink





Sec. 215. Special rule to implement FERC and State electric restructuring policy.CommentsClose CommentsPermalink





Sec. 216. New clean renewable energy bonds.CommentsClose CommentsPermalink

Subtitle C--Carbon Mitigation Provisions

Sec. 221. Expansion and modification of advanced coal project investment credit.CommentsClose CommentsPermalink





Sec. 222. Expansion and modification of coal gasification investment credit.CommentsClose CommentsPermalink





Sec. 223. Temporary increase in coal excise tax.CommentsClose CommentsPermalink





Sec. 224. Special rules for refund of the coal excise tax to certain coal producers and exporters.CommentsClose CommentsPermalink





Sec. 225. Carbon audit of the tax code.CommentsClose CommentsPermalink

Subtitle D--Transportation and Domestic Fuel Security Provisions

Sec. 231. Inclusion of cellulosic biofuel in bonus depreciation for biomass ethanol plant property.CommentsClose CommentsPermalink





Sec. 232. Credits for biodiesel and renewable diesel.CommentsClose CommentsPermalink





Sec. 233. Clarification that credits for fuel are designed to provide an incentive for United States production.CommentsClose CommentsPermalink





Sec. 234. Credit for new qualified plug-in electric drive motor vehicles.CommentsClose CommentsPermalink





Sec. 235. Exclusion from heavy truck tax for idling reduction units and advanced insulation.CommentsClose CommentsPermalink





Sec. 236. Transportation fringe benefit to bicycle commuters.CommentsClose CommentsPermalink





Sec. 237. Alternative fuel vehicle refueling property credit.CommentsClose CommentsPermalink

Subtitle E--Energy Conservation and Efficiency Provisions

Sec. 241. Qualified energy conservation bonds.CommentsClose CommentsPermalink





Sec. 242. Credit for nonbusiness energy property.CommentsClose CommentsPermalink





Sec. 243. Energy efficient commercial buildings deduction.CommentsClose CommentsPermalink





Sec. 244. Modifications of energy efficient appliance credit for appliances produced after 2007.CommentsClose CommentsPermalink





Sec. 245. Accelerated recovery period for depreciation of smart meters and smart grid systems.CommentsClose CommentsPermalink





Sec. 246. Qualified green building and sustainable design projects.CommentsClose CommentsPermalink

TITLE I--ENERGY ASSISTANCECommentsClose CommentsPermalink

SEC. 101. WEATHERIZATION ASSISTANCE.

Section 422 of the Energy Conservation and Production Act (42 U.S.C. 6872) is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 422. AUTHORIZATION OF APPROPRIATIONS.

‘There are authorized to be appropriated to carry out the weatherization program under this part--CommentsClose CommentsPermalink





‘(1) $1,800,000,000 for fiscal year 2009;CommentsClose CommentsPermalink





‘(2) $2,100,000,000 for fiscal year 2010; andCommentsClose CommentsPermalink





‘(3) $2,400,000,000 for fiscal year 2011.’.CommentsClose CommentsPermalink

SEC. 102. ENERGY ASSISTANCE FUND.

(a) Definitions- In this section:CommentsClose CommentsPermalink





(1) FUND- The term ‘Fund’ means the Energy Assistance Fund established under subsection (b).CommentsClose CommentsPermalink





(2) SECRETARY CONCERNED- The term ‘Secretary concerned’ means, with respect to programs carried out by each Secretary--CommentsClose CommentsPermalink





(A) the Secretary of Agriculture;CommentsClose CommentsPermalink





(B) the Secretary of Energy;CommentsClose CommentsPermalink





(C) the Secretary of Housing and Urban Development;CommentsClose CommentsPermalink





(D) the Secretary of Transportation; andCommentsClose CommentsPermalink





(E) the Administrator of the Small Business Administration.CommentsClose CommentsPermalink





(b) Establishment- There is established in the Treasury of the United States a revolving fund, to be known as the ‘Energy Assistance Fund’, consisting of such amounts as are appropriated to the Fund under subsection (h)(1).CommentsClose CommentsPermalink





(c) Expenditures From Fund-CommentsClose CommentsPermalink





(1) IN GENERAL- Subject to paragraph (2), on request by the Secretary concerned, the Secretary of the Treasury shall transfer from the Fund to the Secretary concerned such amounts as the Secretary concerned determines are necessary to provide to carry out 1 or more qualified purposes described in subsections (d), (e) and (f).CommentsClose CommentsPermalink





(2) ADMINISTRATIVE EXPENSES- An amount not exceeding 10 percent of the amounts in the Fund shall be available for each fiscal year to pay the administrative expenses necessary to carry out this section.CommentsClose CommentsPermalink





(d) Low-Interest Loans for Purchase and Installation of Qualifying Energy Efficient Property-CommentsClose CommentsPermalink





(1) IN GENERAL- To the extent that the Secretary concerned has authority under other law to make loans or grants to persons to purchase and install qualifying property, the Secretary concerned may make available to eligible United States persons loans under this subsection for the purchase and installation of qualifying property.CommentsClose CommentsPermalink





(2) QUALIFYING PROPERTY- For the purpose of paragraph (1), qualifying property means--CommentsClose CommentsPermalink





(A) any component which constitutes a qualified energy efficiency improvement (as defined in section 25C(c) of the Internal Revenue Code of 1986);CommentsClose CommentsPermalink





(B) property to heat water for use in a dwelling unit located in the United States and used a residence by the person if at least half of the energy used by such property for such purpose is derived from the sun;CommentsClose CommentsPermalink





(C) property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used by the person (in the case of an individual) as a residence;CommentsClose CommentsPermalink





(D) qualified fuel cell property (as defined in section 48(c)(1) of that Code) installed on or in connection with a dwelling unit located in the United States and used as a principal residence (within the meaning of section 121 of that Code) by the person (in the case of an individual); orCommentsClose CommentsPermalink





(E) a compliant stove (as defined in section 25E(c)(2) of that Code) which--CommentsClose CommentsPermalink





(i) is installed in a dwelling unit located in the United States; andCommentsClose CommentsPermalink





(ii) replaces a noncompliant stove (as defined in section 25E(c)(3) of that Code) used in such dwelling unit.CommentsClose CommentsPermalink





(3) ELIGIBILITY- To be eligible to receive a loan under this subsection, a person that is an individual shall have a household income of not to exceed 115 percent of the area median household income, as determined by the Secretary concerned.CommentsClose CommentsPermalink





(4) USE OF LOAN- The recipient of a loan under this subsection may use the loan only to fund improvements to property owned by, and for the benefit of, the recipient.CommentsClose CommentsPermalink





(5) AMOUNT- The amount of a loan made to a person under this subsection shall equal the lesser of--CommentsClose CommentsPermalink





(A) 90 percent of the difference between--CommentsClose CommentsPermalink





(i) the cost incurred by the person for the purchase and installation of the qualifying property, as approved by the Secretary; andCommentsClose CommentsPermalink





(ii) the amount of any credit allowable to the person with respect to such property under section 25C, 25D, or 25E, of the Internal Revenue Code of 1986; orCommentsClose CommentsPermalink





(B) $30,000.CommentsClose CommentsPermalink





(6) TERM OF LOANS- A loan under this subsection shall have a term of not to exceed 15 years.CommentsClose CommentsPermalink





(e) Low-Interest Loans for Purchase and Installation of Idling Reduction and Advanced Insulation for Heavy Trucks-CommentsClose CommentsPermalink





(1) IN GENERAL- To the extent that the Secretary concerned has authority under other law to make loans or grants to persons to purchase and install idling reduction devices described in section 4053(9) of the Internal Revenue Code of 1986 or advanced insulation described in section 4053(10) of such Code, the Secretary concerned may make available loans under this subsection to United States persons for the purchase and installation of such idling reduction devices and advanced insulation.CommentsClose CommentsPermalink





(2) USE OF LOAN- The recipient of a loan under this subsection may use the loan only to fund improvements to property owned by, and for the benefit of, the recipient.CommentsClose CommentsPermalink





(3) AMOUNT-CommentsClose CommentsPermalink





(A) IN GENERAL- The amount of a loan made to a person under this subsection shall equal 90 percent of the difference between--CommentsClose CommentsPermalink





(i) the cost incurred by the person for the purchase and installation of the idling reduction devices and advanced insulation described in subsection (a), as approved by the Secretary concerned; andCommentsClose CommentsPermalink





(ii) 12 percent of the amount for which the idling reduction devices or advanced insulation was sold.CommentsClose CommentsPermalink





(B) SPECIAL RULES- In the case of any property described in paragraphs (2), (3), or (4) of section 4051(a) of the Internal Revenue Code of 1986, the amount determined under subparagraph (A) shall be zero.CommentsClose CommentsPermalink





(C) DETERMINATION OF PRICE- Rules similar to the rules of section 4052(b) of the Internal Revenue Code of 1986 shall apply for purposes of subparagraph (B).CommentsClose CommentsPermalink





(4) LOAN TERMS- The Secretary concerned shall establish terms for loans made under this subsection, as determined by the Secretary concerned.CommentsClose CommentsPermalink





(f) Low-Interest Loans for Purchase and Installation of Alternative Refueling Stations-CommentsClose CommentsPermalink





(1) IN GENERAL- To the extent that the Secretary concerned has authority under other law to make loans or grants to persons for the purchase and installation of any qualified alternative fuel vehicle refueling property (as defined in section 30C(c) of the Internal Revenue Code of 1986), the Secretary concerned may make available loans under this subsection to United States persons for the purchase and installation of any such qualified alternative fuel vehicle refueling property placed in service by the person during a taxable year.CommentsClose CommentsPermalink





(2) USE OF LOAN- The recipient of a loan under this subsection may use the loan only to fund improvements to property owned by, and for the benefit of, the recipient.CommentsClose CommentsPermalink





(3) AMOUNT- The amount of a loan made to a person under this subsection shall equal 90 percent of the difference between--CommentsClose CommentsPermalink





(A) the cost incurred by the person for the purchase and installation of the qualified alternative fuel vehicle refueling property described in paragraph (1), as approved by the Secretary concerned; andCommentsClose CommentsPermalink





(B) the amount of any credit allowable to the person under section 30C of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(4) LOAN TERMS- The Secretary concerned shall establish terms for loans made under this subsection, as determined by the Secretary concerned.CommentsClose CommentsPermalink





(g) Transfers of Amounts-CommentsClose CommentsPermalink





(1) IN GENERAL- The amounts required to be transferred to the Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury.CommentsClose CommentsPermalink





(2) 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.CommentsClose CommentsPermalink





(h) Funding-CommentsClose CommentsPermalink





(1) MANDATORY FUNDING-CommentsClose CommentsPermalink





(A) IN GENERAL- Notwithstanding any other provision of law, on October 1, 2008, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Fund for the cost of loans to carry out the purposes of the Fund $1,000,000,000, to remain available until expended.CommentsClose CommentsPermalink





(B) RECEIPT AND ACCEPTANCE- The Fund shall be entitled to receive, shall accept, and shall use to carry out the purposes of the Fund the funds transferred under subparagraph (A), without further appropriation.CommentsClose CommentsPermalink





(2) AUTHORIZATION OF APPROPRIATIONS-CommentsClose CommentsPermalink





(A) IN GENERAL- In addition to the amount made available under paragraph (1), there are authorized to be appropriated to the Fund such sums as are necessary to carry out the purposes of the Fund.CommentsClose CommentsPermalink





(B) ADDITIONAL FUNDING- To the extent that a Secretary described in subsection (a) has authority under other law to make loans or grants described in subsection (d)(1), (e)(1), or (f)(1), in addition to any other funds made available to carry out that authority under any other provision of law, there are authorized to be appropriated to the Secretary such sums as are necessary for the Secretary to provide additional loans or grants under that authority.CommentsClose CommentsPermalink

TITLE II--TAX PROVISIONSCommentsClose CommentsPermalink

SEC. 200. REFERENCE.

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.CommentsClose CommentsPermalink

Subtitle A--Clean StovesCommentsClose CommentsPermalink

SEC. 201. CREDIT FOR REPLACEMENT OF WOOD-BURNING STOVES MEETING ENVIRONMENTAL STANDARDS.

(a) In General- Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:CommentsClose CommentsPermalink

‘SEC. 25E. REPLACEMENT OF WOOD-BURNING STOVES.

‘(a) Allowance of Credit- In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified stove replacement expenditures paid or incurred by the taxpayer for the taxable year.CommentsClose CommentsPermalink





‘(b) Limitation- The amount of the credit under subsection (a) with respect to the replacement of each non-compliant wood stove shall not exceed $500.CommentsClose CommentsPermalink





‘(c) Qualified Stove Replacement Expenditures- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘qualified stove replacement expenditures’ means expenditures made by the taxpayer for the purchase and installation of a compliant stove which--CommentsClose CommentsPermalink





‘(A) is installed in a dwelling unit located in the United States, andCommentsClose CommentsPermalink





‘(B) replaces a noncompliant wood stove used in such dwelling unit.CommentsClose CommentsPermalink





Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the compliant stove.CommentsClose CommentsPermalink





‘(2) COMPLIANT STOVE- The term ‘compliant stove’ means--CommentsClose CommentsPermalink





‘(A) a wood-burning stove which meets the requirements set forth in the ‘Standards of Performance for New Residential Wood Heaters’ issued by the Environmental Protection Agency, andCommentsClose CommentsPermalink





‘(B) a pellet or corn-burning stove.CommentsClose CommentsPermalink





‘(3) NONCOMPLIANT WOOD STOVE- The term ‘noncompliant wood stove’ means any wood-burning stove that is not a compliant stove.CommentsClose CommentsPermalink





‘(d) Joint Occupancy, Cooperative Housing Corporations, and When Expenditure Made- Rules similar to the rules of paragraphs (4), (5), and (8) of section 25D(e) shall apply for purposes of this section.CommentsClose CommentsPermalink





‘(e) Basis Adjustment- For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.CommentsClose CommentsPermalink





‘(f) Termination- This section shall not apply to expenditures made after December 31, 2010.’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Subsection (a) of section 1016 is amended--CommentsClose CommentsPermalink





(A) by striking ‘and’ at the end of paragraph (36),CommentsClose CommentsPermalink





(B) by striking the period at the end of paragraph (37) and inserting ‘, and’, andCommentsClose CommentsPermalink





(C) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(38) to the extent provided in section 25E(e), in the case of amounts with respect to which a credit has been allowed under section 25E.’.CommentsClose CommentsPermalink





(2) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25D the following new item:CommentsClose CommentsPermalink





‘Sec. 25E. Replacement of wood-burning stoves.’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to expenditures for stoves purchased after the date of the enactment of this Act.CommentsClose CommentsPermalink

Subtitle B--Renewable Energy IncentivesCommentsClose CommentsPermalink

SEC. 211. RENEWABLE ENERGY CREDIT.

(a) Extension of Credit-CommentsClose CommentsPermalink





(1) 1-year EXTENSION FOR WIND FACILITIES- Paragraph (1) of section 45(d) is amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink





(2) 3-year EXTENSION FOR CERTAIN OTHER FACILITIES- Each of the following provisions of section 45(d) is amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2012’:CommentsClose CommentsPermalink





(A) Clauses (i) and (ii) of paragraph (2)(A).CommentsClose CommentsPermalink





(B) Clauses (i)(I) and (ii) of paragraph (3)(A).CommentsClose CommentsPermalink





(C) Paragraph (4).CommentsClose CommentsPermalink





(D) Paragraph (5).CommentsClose CommentsPermalink





(E) Paragraph (6).CommentsClose CommentsPermalink





(F) Paragraph (7).CommentsClose CommentsPermalink





(G) Subparagraphs (A) and (B) of paragraph (9).CommentsClose CommentsPermalink





(b) Modification of Credit Phaseout-CommentsClose CommentsPermalink





(1) REPEAL OF PHASEOUT- Subsection (b) of section 45 is amended--CommentsClose CommentsPermalink





(A) by striking paragraph (1), andCommentsClose CommentsPermalink





(B) by striking ‘the 8 cent amount in paragraph (1),’ in paragraph (2) thereof.CommentsClose CommentsPermalink





(2) LIMITATION BASED ON INVESTMENT IN FACILITY- Subsection (b) of section 45 is amended by inserting before paragraph (2) the following new paragraph:CommentsClose CommentsPermalink





‘(1) LIMITATION BASED ON INVESTMENT IN FACILITY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of any qualified facility originally placed in service after December 31, 2009, the amount of the credit determined under subsection (a) for any taxable year with respect to electricity produced at such facility shall not exceed the product of--CommentsClose CommentsPermalink





‘(i) the applicable percentage with respect to such facility, multiplied byCommentsClose CommentsPermalink





‘(ii) the eligible basis of such facility.CommentsClose CommentsPermalink





‘(B) CARRYFORWARD OF UNUSED LIMITATION AND EXCESS CREDIT-CommentsClose CommentsPermalink





‘(i) UNUSED LIMITATION- If the limitation imposed under subparagraph (A) with respect to any facility for any taxable year exceeds the prelimitation credit for such facility for such taxable year, the limitation imposed under subparagraph (A) with respect to such facility for the succeeding taxable year shall be increased by the amount of such excess.CommentsClose CommentsPermalink





‘(ii) EXCESS CREDIT- If the prelimitation credit with respect to any facility for any taxable year exceeds the limitation imposed under subparagraph (A) with respect to such facility for such taxable year, the credit determined under subsection (a) with respect to such facility for the succeeding taxable year (determined before the application of subparagraph (A) for such succeeding taxable year) shall be increased by the amount of such excess. With respect to any facility, no amount may be carried forward under this clause to any taxable year beginning after the 10-year period described in subsection (a)(2)(A)(ii) with respect to such facility.CommentsClose CommentsPermalink





‘(iii) PRELIMITATION CREDIT- The term ‘prelimitation credit’ with respect to any facility for a taxable year means the credit determined under subsection (a) with respect to such facility for such taxable year, determined without regard to subparagraph (A) and after taking into account any increase for such taxable year under clause (ii).CommentsClose CommentsPermalink





‘(C) APPLICABLE PERCENTAGE- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term ‘applicable percentage’ means, with respect to any facility, the appropriate percentage prescribed by the Secretary for the month in which such facility is originally placed in service.CommentsClose CommentsPermalink





‘(ii) METHOD OF PRESCRIBING APPLICABLE PERCENTAGES- The applicable percentages prescribed by the Secretary for any month under clause (i) shall be percentages which yield over a 10-year period amounts of limitation under subparagraph (A) which have a present value equal to 35 percent of the eligible basis of the facility.CommentsClose CommentsPermalink





‘(iii) METHOD OF DISCOUNTING- The present value under clause (ii) shall be determined--CommentsClose CommentsPermalink





‘(I) as of the last day of the 1st year of the 10-year period referred to in clause (ii),CommentsClose CommentsPermalink





‘(II) by using a discount rate equal to the greater of 110 percent of the Federal long-term rate as in effect under section 1274(d) for the month preceding the month for which the applicable percentage is being prescribed, or 4.5 percent, andCommentsClose CommentsPermalink





‘(III) by taking into account the limitation under subparagraph (A) for any year on the last day of such year.CommentsClose CommentsPermalink





‘(D) ELIGIBLE BASIS- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term ‘eligible basis’ means, with respect to any facility, the sum of--CommentsClose CommentsPermalink





‘(I) the basis of such facility determined as of the time that such facility is originally placed in service, andCommentsClose CommentsPermalink





‘(II) the portion of the basis of any shared qualified property which is properly allocable to such facility under clause (ii).CommentsClose CommentsPermalink





‘(ii) RULES FOR ALLOCATION- For purposes of subclause (II) of clause (i), the basis of shared qualified property shall be allocated among all qualified facilities which are projected to be placed in service and which require utilization of such property in proportion to projected generation from such facilities.CommentsClose CommentsPermalink





‘(iii) SHARED QUALIFIED PROPERTY- For purposes of this paragraph, the term ‘shared qualified property’ means, with respect to any facility, any property described in section 168(e)(3)(B)(vi)--CommentsClose CommentsPermalink





‘(I) which a qualified facility will require for utilization of such facility, andCommentsClose CommentsPermalink





‘(II) which is not a qualified facility.CommentsClose CommentsPermalink





‘(iv) SPECIAL RULE RELATING TO GEOTHERMAL FACILITIES- In the case of any qualified facility using geothermal energy to produce electricity, the basis of such facility for purposes of this paragraph shall be determined as though intangible drilling and development costs described in section 263(c) were capitalized rather than expensed.CommentsClose CommentsPermalink





‘(E) SPECIAL RULE FOR FIRST AND LAST YEAR OF CREDIT PERIOD- In the case of any taxable year any portion of which is not within the 10-year period described in subsection (a)(2)(A)(ii) with respect to any facility, the amount of the limitation under subparagraph (A) with respect to such facility shall be reduced by an amount which bears the same ratio to the amount of such limitation (determined without regard to this subparagraph) as such portion of the taxable year which is not within such period bears to the entire taxable year.CommentsClose CommentsPermalink





‘(F) ELECTION TO TREAT ALL FACILITIES PLACED IN SERVICE IN A YEAR AS 1 FACILITY- At the election of the taxpayer, all qualified facilities which are part of the same project and which are placed in service during the same calendar year shall be treated for purposes of this section as 1 facility which is placed in service at the mid-point of such year or the first day of the following calendar year.’.CommentsClose CommentsPermalink





(c) Trash Facility Clarification- Paragraph (7) of section 45(d) is amended--CommentsClose CommentsPermalink





(1) by striking ‘facility which burns’ and inserting ‘facility (other than a facility described in paragraph (6)) which uses’, andCommentsClose CommentsPermalink





(2) by striking ‘COMBUSTION’.CommentsClose CommentsPermalink





(d) Expansion of Biomass Facilities-CommentsClose CommentsPermalink





(1) OPEN-LOOP BIOMASS FACILITIES- Paragraph (3) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:CommentsClose CommentsPermalink





‘(B) EXPANSION OF FACILITY- Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.’.CommentsClose CommentsPermalink





(2) CLOSED-LOOP BIOMASS FACILITIES- Paragraph (2) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following new subparagraph:CommentsClose CommentsPermalink





‘(B) EXPANSION OF FACILITY- Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A)(i), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.’.CommentsClose CommentsPermalink





(e) Sales of Net Electricity to Regulated Public Utilities Treated as Sales to Unrelated Persons- Paragraph (4) of section 45(e) is amended by adding at the end the following new sentence: ‘The net amount of electricity sold by any taxpayer to a regulated public utility (as defined in section 7701(a)(33)) shall be treated as sold to an unrelated person.’.CommentsClose CommentsPermalink





(f) Modification of Rules for Hydropower Production- Subparagraph (C) of section 45(c)(8) is amended to read as follows:CommentsClose CommentsPermalink





‘(C) NONHYDROELECTRIC DAM- For purposes of subparagraph (A), a facility is described in this subparagraph if--CommentsClose CommentsPermalink





‘(i) the hydroelectric project installed on the nonhydroelectric dam is licensed by the Federal Energy Regulatory Commission and meets all other applicable environmental, licensing, and regulatory requirements,CommentsClose CommentsPermalink





‘(ii) the nonhydroelectric dam was placed in service before the date of the enactment of this paragraph and operated for flood control, navigation, or water supply purposes and did not produce hydroelectric power on the date of the enactment of this paragraph, andCommentsClose CommentsPermalink





‘(iii) the hydroelectric project is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license requirements imposed under applicable law that change the water surface elevation for the purpose of improving environmental quality of the affected waterway.CommentsClose CommentsPermalink





The Secretary, in consultation with the Federal Energy Regulatory Commission, shall certify if a hydroelectric project licensed at a nonhydroelectric dam meets the criteria in clause (iii). Nothing in this section shall affect the standards under which the Federal Energy Regulatory Commission issues licenses for and regulates hydropower projects under part I of the Federal Power Act.’.CommentsClose CommentsPermalink





(g) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to property originally placed in service after December 31, 2008.CommentsClose CommentsPermalink





(2) REPEAL OF CREDIT PHASEOUT- The amendments made by subsection (b)(1) shall apply to taxable years ending after December 31, 2008.CommentsClose CommentsPermalink





(3) LIMITATION BASED ON INVESTMENT IN FACILITY- The amendment made by subsection (b)(2) shall apply to property originally placed in service after December 31, 2009.CommentsClose CommentsPermalink





(4) TRASH FACILITY CLARIFICATION; SALES TO RELATED REGULATED PUBLIC UTILITIES- The amendments made by subsections (c) and (e) shall apply to electricity produced and sold after the date of the enactment of this Act.CommentsClose CommentsPermalink





(5) EXPANSION OF BIOMASS FACILITIES- The amendments made by subsection (d) shall apply to property placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 212. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE RENEWABLES.

(a) In General- Paragraph (1) of section 45(c) is amended by striking ‘and’ at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting ‘, and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(I) marine and hydrokinetic renewable energy.’.CommentsClose CommentsPermalink





(b) Marine Renewables- Subsection (c) of section 45 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(10) MARINE AND HYDROKINETIC RENEWABLE ENERGY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘marine and hydrokinetic renewable energy’ means energy derived from--CommentsClose CommentsPermalink





‘(i) waves, tides, and currents in oceans, estuaries, and tidal areas,CommentsClose CommentsPermalink





‘(ii) free flowing water in rivers, lakes, and streams,CommentsClose CommentsPermalink





‘(iii) free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, orCommentsClose CommentsPermalink





‘(iv) differentials in ocean temperature (ocean thermal energy conversion).CommentsClose CommentsPermalink





‘(B) EXCEPTIONS- Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.’.CommentsClose CommentsPermalink





(c) Definition of Facility- Subsection (d) of section 45 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(11) MARINE AND HYDROKINETIC RENEWABLE ENERGY FACILITIES- In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term ‘qualified facility’ means any facility owned by the taxpayer--CommentsClose CommentsPermalink





‘(A) which has a nameplate capacity rating of at least 150 kilowatts, andCommentsClose CommentsPermalink





‘(B) which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2012.’.CommentsClose CommentsPermalink





(d) Credit Rate- Subparagraph (A) of section 45(b)(4) is amended by striking ‘or (9)’ and inserting ‘(9), or (11)’.CommentsClose CommentsPermalink





(e) Coordination With Small Irrigation Power- Paragraph (5) of section 45(d), as amended by section 211, is amended by striking ‘January 1, 2012’ and inserting ‘the date of the enactment of paragraph (11)’.CommentsClose CommentsPermalink





(f) Effective Date- The amendments made by this section shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.CommentsClose CommentsPermalink

SEC. 213. ENERGY CREDIT.

(a) Extension of Credit-CommentsClose CommentsPermalink





(1) SOLAR ENERGY PROPERTY- Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) are each amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2015’.CommentsClose CommentsPermalink





(2) FUEL CELL PROPERTY- Subparagraph (E) of section 48(c)(1) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2014’.CommentsClose CommentsPermalink





(3) MICROTURBINE PROPERTY- Subparagraph (E) of section 48(c)(2) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2014’.CommentsClose CommentsPermalink





(b) Allowance of Energy Credit Against Alternative Minimum Tax- Subparagraph (B) of section 38(c)(4) is amended by striking ‘and’ at the end of clause (iii), by redesignating clause (iv) as clause (v), and by inserting after clause (iii) the following new clause:CommentsClose CommentsPermalink





‘(iv) the credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48, and’.CommentsClose CommentsPermalink





(c) Energy Credit for Combined Heat and Power System Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 48(a)(3)(A) (defining energy property) is amended by striking ‘or’ at the end of clause (iii), by inserting ‘or’ at the end of clause (iv), and by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(v) combined heat and power system property,’.CommentsClose CommentsPermalink





(2) COMBINED HEAT AND POWER SYSTEM PROPERTY- Section 48 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(d) Combined Heat and Power System Property- For purposes of subsection (a)(3)(A)(v)--CommentsClose CommentsPermalink





‘(1) COMBINED HEAT AND POWER SYSTEM PROPERTY- The term ‘combined heat and power system property’ means property comprising a system--CommentsClose CommentsPermalink





‘(A) which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications),CommentsClose CommentsPermalink





‘(B) which produces--CommentsClose CommentsPermalink





‘(i) at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), andCommentsClose CommentsPermalink





‘(ii) at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof),CommentsClose CommentsPermalink





‘(C) the energy efficiency percentage of which exceeds 60 percent, andCommentsClose CommentsPermalink





‘(D) which is placed in service before January 1, 2015.CommentsClose CommentsPermalink





‘(2) LIMITATION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of combined heat and power system property with an electrical capacity in excess of the applicable capacity placed in service during the taxable year, the credit under subsection (a)(1) (determined without regard to this paragraph) for such year shall be equal to the amount which bears the same ratio to such credit as the applicable capacity bears to the capacity of such property.CommentsClose CommentsPermalink





‘(B) APPLICABLE CAPACITY- For purposes of subparagraph (A), the term ‘applicable capacity’ means 15 megawatts or a mechanical energy capacity of more than 20,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.CommentsClose CommentsPermalink





‘(C) MAXIMUM CAPACITY- The term ‘combined heat and power system property’ shall not include any property comprising a system if such system has a capacity in excess of 50 megawatts or a mechanical energy capacity in excess of 67,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.CommentsClose CommentsPermalink





‘(3) SPECIAL RULES-CommentsClose CommentsPermalink





‘(A) ENERGY EFFICIENCY PERCENTAGE- For purposes of this subsection, the energy efficiency percentage of a system is the fraction--CommentsClose CommentsPermalink





‘(i) the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and expected to be consumed in its normal application, andCommentsClose CommentsPermalink





‘(ii) the denominator of which is the lower heating value of the fuel sources for the system.CommentsClose CommentsPermalink





‘(B) DETERMINATIONS MADE ON BTU BASIS- The energy efficiency percentage and the percentages under paragraph (1)(B) shall be determined on a Btu basis.CommentsClose CommentsPermalink





‘(C) INPUT AND OUTPUT PROPERTY NOT INCLUDED- The term ‘combined heat and power system property’ does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.CommentsClose CommentsPermalink





‘(4) SYSTEMS USING BIOMASS- If a system is designed to use biomass (within the meaning of paragraphs (2) and (3) of section 45(c) without regard to the last sentence of paragraph (3)(A)) for at least 90 percent of the energy source--CommentsClose CommentsPermalink





‘(A) paragraph (1)(C) shall not apply, butCommentsClose CommentsPermalink





‘(B) the amount of credit determined under subsection (a) with respect to such system shall not exceed the amount which bears the same ratio to such amount of credit (determined without regard to this paragraph) as the energy efficiency percentage of such system bears to 60 percent.’.CommentsClose CommentsPermalink





(d) Increase of Credit Limitation for Fuel Cell Property- Subparagraph (B) of section 48(c)(1) is amended by striking ‘$500’ and inserting ‘$1,500’.CommentsClose CommentsPermalink





(e) Public Utility Property Taken Into Account-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (3) of section 48(a) is amended by striking the second sentence thereof.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Paragraph (1) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).CommentsClose CommentsPermalink





(B) Paragraph (2) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).CommentsClose CommentsPermalink





(f) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX- The amendments made by subsection (b) shall apply to credits determined under section 46 of the Internal Revenue Code of 1986 in taxable years beginning after the date of the enactment of this Act and to carrybacks of such credits.CommentsClose CommentsPermalink





(3) COMBINED HEAT AND POWER AND FUEL CELL PROPERTY- The amendments made by subsections (c) and (d) 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).CommentsClose CommentsPermalink





(4) PUBLIC UTILITY PROPERTY- The amendments made by subsection (e) shall apply to periods after February 13, 2008, 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).CommentsClose CommentsPermalink

SEC. 214. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

(a) Extension- Section 25D(g) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2014’.CommentsClose CommentsPermalink





(b) Maximum Credit for Solar Electric Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25D(b)(1)(A) is amended by striking ‘$2,000’ and inserting ‘$4,000’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Section 25D(e)(4)(A)(i) is amended by striking ‘$6,667’ and inserting ‘$13,333’.CommentsClose CommentsPermalink





(c) Credit for Residential Wind Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25D(a) is amended by striking ‘and’ at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ‘, and’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) 30 percent of the qualified small wind energy property expenditures made by the taxpayer during such year.’.CommentsClose CommentsPermalink





(2) LIMITATION- Section 25D(b)(1) is amended by striking ‘and’ at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ‘, and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(D) $500 with respect to each half kilowatt of capacity (not to exceed $4,000) of wind turbines for which qualified small wind energy property expenditures are made.’.CommentsClose CommentsPermalink





(3) QUALIFIED SMALL WIND ENERGY PROPERTY EXPENDITURES-CommentsClose CommentsPermalink





(A) IN GENERAL- Section 25D(d) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) QUALIFIED SMALL WIND ENERGY PROPERTY EXPENDITURE- The term ‘qualified small wind energy property expenditure’ means an expenditure for property which uses a wind turbine to generate electricity for use in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.’.CommentsClose CommentsPermalink





(B) NO DOUBLE BENEFIT- Section 45(d)(1) is amended by adding at the end the following new sentence: ‘Such term shall not include any facility with respect to which any qualified small wind energy property expenditure (as defined in subsection (d)(4) of section 25D) is taken into account in determining the credit under such section.’.CommentsClose CommentsPermalink





(4) MAXIMUM EXPENDITURES IN CASE OF JOINT OCCUPANCY- Section 25D(e)(4)(A) is amended by striking ‘and’ at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ‘, and’, and by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(iv) $1,667 in the case of each half kilowatt of capacity (not to exceed $13,333) of wind turbines for which qualified small wind energy property expenditures are made.’.CommentsClose CommentsPermalink





(d) Credit for Geothermal Heat pump Systems-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25D(a), as amended by subsection (c), is amended by striking ‘and’ at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting ‘, and’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(5) 30 percent of the qualified geothermal heat pump property expenditures made by the taxpayer during such year.’.CommentsClose CommentsPermalink





(2) LIMITATION- Section 25D(b)(1), as amended by subsection (c), is amended by striking ‘and’ at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting ‘, and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(E) $2,000 with respect to any qualified geothermal heat pump property expenditures.’.CommentsClose CommentsPermalink





(3) QUALIFIED GEOTHERMAL HEAT PUMP PROPERTY EXPENDITURE- Section 25D(d), as amended by subsection (c), is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(5) QUALIFIED GEOTHERMAL HEAT PUMP PROPERTY EXPENDITURE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualified geothermal heat pump property expenditure’ means an expenditure for qualified geothermal heat pump property installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.CommentsClose CommentsPermalink





‘(B) QUALIFIED GEOTHERMAL HEAT PUMP PROPERTY- The term ‘qualified geothermal heat pump property’ means any equipment which--CommentsClose CommentsPermalink





‘(i) uses the ground or ground water as a thermal energy source to heat the dwelling unit referred to in subparagraph (A) or as a thermal energy sink to cool such dwelling unit, andCommentsClose CommentsPermalink





‘(ii) meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.’.CommentsClose CommentsPermalink





(4) MAXIMUM EXPENDITURES IN CASE OF JOINT OCCUPANCY- Section 25D(e)(4)(A), as amended by subsection (c), is amended by striking ‘and’ at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ‘, and’, and by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(v) $6,667 in the case of any qualified geothermal heat pump property expenditures.’.CommentsClose CommentsPermalink





(e) Credit Allowed Against Alternative Minimum Tax-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (c) of section 25D is amended to read as follows:CommentsClose CommentsPermalink





‘(c) Limitation Based on Amount of Tax; Carryforward of Unused Credit-CommentsClose CommentsPermalink





‘(1) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of--CommentsClose CommentsPermalink





‘(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, overCommentsClose CommentsPermalink





‘(B) the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.CommentsClose CommentsPermalink





‘(2) CARRYFORWARD OF UNUSED CREDIT-CommentsClose CommentsPermalink





‘(A) RULE FOR YEARS IN WHICH ALL PERSONAL CREDITS ALLOWED AGAINST REGULAR AND ALTERNATIVE MINIMUM TAX- In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.CommentsClose CommentsPermalink





‘(B) RULE FOR OTHER YEARS- In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Section 23(b)(4)(B) is amended by inserting ‘and section 25D’ after ‘this section’.CommentsClose CommentsPermalink





(B) Section 24(b)(3)(B) is amended by striking ‘and 25B’ and inserting ‘, 25B, and 25D’.CommentsClose CommentsPermalink





(C) Section 25B(g)(2) is amended by striking ‘section 23’ and inserting ‘sections 23 and 25D’.CommentsClose CommentsPermalink





(D) Section 26(a)(1) is amended by striking ‘and 25B’ and inserting ‘25B, and 25D’.CommentsClose CommentsPermalink





(f) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- The amendments made by this section shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink





(2) APPLICATION OF EGTRRA SUNSET- The amendments made by subparagraphs (A) and (B) of subsection (e)(2) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.CommentsClose CommentsPermalink

SEC. 215. SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING POLICY.

(a) Extension for Qualified Electric Utilities-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (3) of section 451(i) is amended by inserting ‘(before January 1, 2010, in the case of a qualified electric utility)’ after ‘January 1, 2008’.CommentsClose CommentsPermalink





(2) QUALIFIED ELECTRIC UTILITY- Subsection (i) of section 451 is amended by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively, and by inserting after paragraph (5) the following new paragraph:CommentsClose CommentsPermalink





‘(6) QUALIFIED ELECTRIC UTILITY- For purposes of this subsection, the term ‘qualified electric utility’ means a person that, as of the date of the qualifying electric transmission transaction, is vertically integrated, in that it is both--CommentsClose CommentsPermalink





‘(A) a transmitting utility (as defined in section 3(23) of the Federal Power Act (16 U.S.C. 796(23))) with respect to the transmission facilities to which the election under this subsection applies, andCommentsClose CommentsPermalink





‘(B) an electric utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22))).’.CommentsClose CommentsPermalink





(b) Extension of Period for Transfer of Operational Control Authorized by FERC- Clause (ii) of section 451(i)(4)(B) is amended by striking ‘December 31, 2007’ and inserting ‘the date which is 4 years after the close of the taxable year in which the transaction occurs’.CommentsClose CommentsPermalink





(c) Property Located Outside the United States Not Treated as Exempt Utility Property- Paragraph (5) of section 451(i) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(C) EXCEPTION FOR PROPERTY LOCATED OUTSIDE THE UNITED STATES- The term ‘exempt utility property’ shall not include any property which is located outside the United States.’.CommentsClose CommentsPermalink





(d) Effective Dates-CommentsClose CommentsPermalink





(1) EXTENSION- The amendments made by subsection (a) shall apply to transactions after December 31, 2007.CommentsClose CommentsPermalink





(2) TRANSFERS OF OPERATIONAL CONTROL- The amendment made by subsection (b) shall take effect as if included in section 909 of the American Jobs Creation Act of 2004.CommentsClose CommentsPermalink





(3) EXCEPTION FOR PROPERTY LOCATED OUTSIDE THE UNITED STATES- The amendment made by subsection (c) shall apply to transactions after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 216. NEW CLEAN RENEWABLE ENERGY BONDS.

(a) In General- Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 54C. NEW CLEAN RENEWABLE ENERGY BONDS.

‘(a) New Clean Renewable Energy Bond- For purposes of this subpart, the term ‘new clean renewable energy bond’ means any bond issued as part of an issue if--CommentsClose CommentsPermalink





‘(1) 100 percent of the available project proceeds of such issue are to be used for capital expenditures incurred by governmental bodies, public power providers, or cooperative electric companies for one or more qualified renewable energy facilities,CommentsClose CommentsPermalink





‘(2) the bond is issued by a qualified issuer, andCommentsClose CommentsPermalink





‘(3) the issuer designates such bond for purposes of this section.CommentsClose CommentsPermalink





‘(b) Reduced Credit Amount- The annual credit determined under section 54A(b) with respect to any new clean renewable energy bond shall be 70 percent of the amount so determined without regard to this subsection.CommentsClose CommentsPermalink





‘(c) Limitation on Amount of Bonds Designated-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under this subsection to such issuer.CommentsClose CommentsPermalink





‘(2) NATIONAL LIMITATION ON AMOUNT OF BONDS DESIGNATED- There is a national new clean renewable energy bond limitation of $2,000,000,000 which shall be allocated by the Secretary as provided in paragraph (3), except that--CommentsClose CommentsPermalink





‘(A) not more than 33 1/3 percent thereof may be allocated to qualified projects of public power providers,CommentsClose CommentsPermalink





‘(B) not more than 33 1/3 percent thereof may be allocated to qualified projects of governmental bodies, andCommentsClose CommentsPermalink





‘(C) not more than 33 1/3 percent thereof may be allocated to qualified projects of cooperative electric companies.CommentsClose CommentsPermalink





‘(3) METHOD OF ALLOCATION-CommentsClose CommentsPermalink





‘(A) ALLOCATION AMONG PUBLIC POWER PROVIDERS- After the Secretary determines the qualified projects of public power providers which are appropriate for receiving an allocation of the national new clean renewable energy bond limitation, the Secretary shall, to the maximum extent practicable, make allocations among such projects in such manner that the amount allocated to each such project bears the same ratio to the cost of such project as the limitation under paragraph (2)(A) bears to the cost of all such projects.CommentsClose CommentsPermalink





‘(B) ALLOCATION AMONG GOVERNMENTAL BODIES AND COOPERATIVE ELECTRIC COMPANIES- The Secretary shall make allocations of the amount of the national new clean renewable energy bond limitation described in paragraphs (2)(B) and (2)(C) among qualified projects of governmental bodies and cooperative electric companies, respectively, in such manner as the Secretary determines appropriate.CommentsClose CommentsPermalink





‘(d) Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) QUALIFIED RENEWABLE ENERGY FACILITY- The term ‘qualified renewable energy facility’ means a qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and to any placed in service date) owned by a public power provider, a governmental body, or a cooperative electric company.CommentsClose CommentsPermalink





‘(2) PUBLIC POWER PROVIDER- The term ‘public power provider’ 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 the enactment of this paragraph).CommentsClose CommentsPermalink





‘(3) GOVERNMENTAL BODY- The term ‘governmental body’ means any State or Indian tribal government, or any political subdivision thereof.CommentsClose CommentsPermalink





‘(4) COOPERATIVE ELECTRIC COMPANY- The term ‘cooperative electric company’ means a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C).CommentsClose CommentsPermalink





‘(5) CLEAN RENEWABLE ENERGY BOND LENDER- The term ‘clean renewable energy bond lender’ means a lender which is a cooperative which is owned by, or has outstanding loans to, 100 or more cooperative electric companies and is in existence on February 1, 2002, and shall include any affiliated entity which is controlled by such lender.CommentsClose CommentsPermalink





‘(6) QUALIFIED ISSUER- The term ‘qualified issuer’ means a public power provider, a cooperative electric company, a governmental body, a clean renewable energy bond lender, or a not-for-profit electric utility which has received a loan or loan guarantee under the Rural Electrification Act.’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Paragraph (1) of section 54A(d) is amended to read as follows:CommentsClose CommentsPermalink





‘(1) QUALIFIED TAX CREDIT BOND- The term ‘qualified tax credit bond’ means--CommentsClose CommentsPermalink





‘(A) a qualified forestry conservation bond, orCommentsClose CommentsPermalink





‘(B) a new clean renewable energy bond,CommentsClose CommentsPermalink





which is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and (6).’.CommentsClose CommentsPermalink





(2) Subparagraph (C) of section 54A(d)(2) is amended to read as follows:CommentsClose CommentsPermalink





‘(C) QUALIFIED PURPOSE- For purposes of this paragraph, the term ‘qualified purpose’ means--CommentsClose CommentsPermalink





‘(i) in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e), andCommentsClose CommentsPermalink





‘(ii) in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1).’.CommentsClose CommentsPermalink





(3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 54C. Qualified clean renewable energy bonds.’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.CommentsClose CommentsPermalink

Subtitle C--Carbon Mitigation ProvisionsCommentsClose CommentsPermalink

SEC. 221. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT INVESTMENT CREDIT.

(a) Modification of Credit Amount- Section 48A(a) is amended by striking ‘and’ at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ‘, and’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(3) 30 percent of the qualified investment for such taxable year in the case of projects described in clause (iii) of subsection (d)(3)(B).’.CommentsClose CommentsPermalink





(b) Expansion of Aggregate Credits- Section 48A(d)(3)(A) is amended by striking ‘$1,300,000,000’ and inserting ‘$2,550,000,000’.CommentsClose CommentsPermalink





(c) Authorization of Additional Projects-CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (B) of section 48A(d)(3) is amended to read as follows:CommentsClose CommentsPermalink





‘(B) PARTICULAR PROJECTS- Of the dollar amount in subparagraph (A), the Secretary is authorized to certify--CommentsClose CommentsPermalink





‘(i) $800,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph (2)(A)(i),CommentsClose CommentsPermalink





‘(ii) $500,000,000 for projects which use other advanced coal-based generation technologies the application for which is submitted during the period described in paragraph (2)(A)(i), andCommentsClose CommentsPermalink





‘(iii) $1,250,000,000 for advanced coal-based generation technology projects the application for which is submitted during the period described in paragraph (2)(A)(ii).’.CommentsClose CommentsPermalink





(2) APPLICATION PERIOD FOR ADDITIONAL PROJECTS- Subparagraph (A) of section 48A(d)(2) is amended to read as follows:CommentsClose CommentsPermalink





‘(A) APPLICATION PERIOD- Each applicant for certification under this paragraph shall submit an application meeting the requirements of subparagraph (B). An applicant may only submit an application--CommentsClose CommentsPermalink





‘(i) for an allocation from the dollar amount specified in clause (i) or (ii) of paragraph (3)(B) during the 3-year period beginning on the date the Secretary establishes the program under paragraph (1), andCommentsClose CommentsPermalink





‘(ii) for an allocation from the dollar amount specified in paragraph (3)(B)(iii) during the 3-year period beginning at the earlier of the termination of the period described in clause (i) or the date prescribed by the Secretary.’.CommentsClose CommentsPermalink





(3) CAPTURE AND SEQUESTRATION OF CARBON DIOXIDE EMISSIONS REQUIREMENT-CommentsClose CommentsPermalink





(A) IN GENERAL- Section 48A(e)(1) is amended by striking ‘and’ at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ‘; and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(G) in the case of any project the application for which is submitted during the period described in subsection (d)(2)(A)(ii), the project includes equipment which separates and sequesters at least 65 percent (70 percent in the case of an application for reallocated credits under subsection (d)(4)) of such project’s total carbon dioxide emissions.’.CommentsClose CommentsPermalink





(B) HIGHEST PRIORITY FOR PROJECTS WHICH SEQUESTER CARBON DIOXIDE EMISSIONS- Section 48A(e)(3) is amended by striking ‘and’ at the end of subparagraph (A)(iii), by striking the period at the end of subparagraph (B)(iii) and inserting ‘, and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(C) give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions.’.CommentsClose CommentsPermalink





(C) RECAPTURE OF CREDIT FOR FAILURE TO SEQUESTER- Section 48A is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(i) Recapture of Credit for Failure To Sequester- The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements of subsection (e)(1)(G).’.CommentsClose CommentsPermalink





(4) ADDITIONAL PRIORITY FOR RESEARCH PARTNERSHIPS- Section 48A(e)(3)(B), as amended by paragraph (3)(B), is amended--CommentsClose CommentsPermalink





(A) by striking ‘and’ at the end of clause (ii),CommentsClose CommentsPermalink





(B) by redesignating clause (iii) as clause (iv), andCommentsClose CommentsPermalink





(C) by inserting after clause (ii) the following new clause:CommentsClose CommentsPermalink





‘(iii) applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)), and’.CommentsClose CommentsPermalink





(5) CLERICAL AMENDMENT- Section 48A(e)(3) is amended by striking ‘INTEGRATED GASIFICATION COMBINED CYCLE’ in the heading and inserting ‘CERTAIN’.CommentsClose CommentsPermalink





(d) Disclosure of Allocations- Section 48A(d) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(5) DISCLOSURE OF ALLOCATIONS- The Secretary shall, upon making a certification under this subsection or section 48B(d), publicly disclose the identity of the applicant and the amount of the credit certified with respect to such applicant.’.CommentsClose CommentsPermalink





(e) Effective Dates-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to credits the application for which is submitted during the period described in section 48A(d)(2)(A)(ii) of the Internal Revenue Code of 1986 and which are allocated or reallocated after the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) DISCLOSURE OF ALLOCATIONS- The amendment made by subsection (d) shall apply to certifications made after the date of the enactment of this Act.CommentsClose CommentsPermalink





(3) CLERICAL AMENDMENT- The amendment made by subsection (c)(5) shall take effect as if included in the amendment made by section 1307(b) of the Energy Tax Incentives Act of 2005.CommentsClose CommentsPermalink

SEC. 222. EXPANSION AND MODIFICATION OF COAL GASIFICATION INVESTMENT CREDIT.

(a) Modification of Credit Amount- Section 48B(a) is amended by inserting ‘(30 percent in the case of credits allocated under subsection (d)(1)(B))’ after ‘20 percent’.CommentsClose CommentsPermalink





(b) Expansion of Aggregate Credits- Section 48B(d)(1) is amended by striking ‘shall not exceed $350,000,000’ and all that follows and inserting ‘shall not exceed--CommentsClose CommentsPermalink





‘(A) $350,000,000, plusCommentsClose CommentsPermalink





‘(B) $250,000,000 for qualifying gasification projects that include equipment which separates and sequesters at least 75 percent of such project’s total carbon dioxide emissions.’.CommentsClose CommentsPermalink





(c) Recapture of Credit for Failure To Sequester- Section 48B is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(f) Recapture of Credit for Failure To Sequester- The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements for such project under subsection (d)(1).’.CommentsClose CommentsPermalink





(d) Selection Priorities- Section 48B(d) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) SELECTION PRIORITIES- In determining which qualifying gasification projects to certify under this section, the Secretary shall--CommentsClose CommentsPermalink





‘(A) give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions, andCommentsClose CommentsPermalink





‘(B) give high priority to applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)).’.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to credits described in section 48B(d)(1)(B) of the Internal Revenue Code of 1986 which are allocated or reallocated after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 223. TEMPORARY INCREASE IN COAL EXCISE TAX.

Paragraph (2) of section 4121(e) is amended--CommentsClose CommentsPermalink





(1) by striking ‘January 1, 2014’ in subparagraph (A) and inserting ‘December 31, 2018’, andCommentsClose CommentsPermalink





(2) by striking ‘January 1 after 1981’ in subparagraph (B) and inserting ‘December 31 after 2007’.CommentsClose CommentsPermalink

SEC. 224. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN COAL PRODUCERS AND EXPORTERS.

(a) Refund-CommentsClose CommentsPermalink





(1) COAL PRODUCERS-CommentsClose CommentsPermalink





(A) IN GENERAL- Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, if--CommentsClose CommentsPermalink





(i) a coal producer establishes that such coal producer, or a party related to such coal producer, exported coal produced by such coal producer to a foreign country or shipped coal produced by such coal producer to a possession of the United States, or caused such coal to be exported or shipped, the export or shipment of which was other than through an exporter who meets the requirements of paragraph (2),CommentsClose CommentsPermalink





(ii) such coal producer filed an excise tax return on or after October 1, 1990, and on or before the date of the enactment of this Act, andCommentsClose CommentsPermalink





(iii) such coal producer files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act,CommentsClose CommentsPermalink





then the Secretary shall pay to such coal producer an amount equal to the tax paid under section 4121 of such Code on such coal exported or shipped by the coal producer or a party related to such coal producer, or caused by the coal producer or a party related to such coal producer to be exported or shipped.CommentsClose CommentsPermalink





(B) SPECIAL RULES FOR CERTAIN TAXPAYERS- For purposes of this section--CommentsClose CommentsPermalink





(i) IN GENERAL- If a coal producer or a party related to a coal producer has received a judgment described in clause (iii), such coal producer shall be deemed to have established the export of coal to a foreign country or shipment of coal to a possession of the United States under subparagraph (A)(i).CommentsClose CommentsPermalink





(ii) AMOUNT OF PAYMENT- If a taxpayer described in clause (i) is entitled to a payment under subparagraph (A), the amount of such payment shall be reduced by any amount paid pursuant to the judgment described in clause (iii).CommentsClose CommentsPermalink





(iii) JUDGMENT DESCRIBED- A judgment is described in this subparagraph if such judgment--CommentsClose CommentsPermalink





(I) is made by a court of competent jurisdiction within the United States,CommentsClose CommentsPermalink





(II) relates to the constitutionality of any tax paid on exported coal under section 4121 of the Internal Revenue Code of 1986, andCommentsClose CommentsPermalink





(III) is in favor of the coal producer or the party related to the coal producer.CommentsClose CommentsPermalink





(2) EXPORTERS- Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, and a judgment described in paragraph (1)(B)(iii) of this subsection, if--CommentsClose CommentsPermalink





(A) an exporter establishes that such exporter exported coal to a foreign country or shipped coal to a possession of the United States, or caused such coal to be so exported or shipped,CommentsClose CommentsPermalink





(B) such exporter filed a tax return on or after October 1, 1990, and on or before the date of the enactment of this Act, andCommentsClose CommentsPermalink





(C) such exporter files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act,CommentsClose CommentsPermalink





then the Secretary shall pay to such exporter an amount equal to $0.825 per ton of such coal exported by the exporter or caused to be exported or shipped, or caused to be exported or shipped, by the exporter.CommentsClose CommentsPermalink





(b) Limitations- Subsection (a) shall not apply with respect to exported coal if a settlement with the Federal Government has been made with and accepted by, the coal producer, a party related to such coal producer, or the exporter, of such coal, as of the date that the claim is filed under this section with respect to such exported coal. For purposes of this subsection, the term ‘settlement with the Federal Government’ shall not include any settlement or stipulation entered into as of the date of the enactment of this Act, the terms of which contemplate a judgment concerning which any party has reserved the right to file an appeal, or has filed an appeal.CommentsClose CommentsPermalink





(c) Subsequent Refund Prohibited- No refund shall be made under this section to the extent that a credit or refund of such tax on such exported or shipped coal has been paid to any person.CommentsClose CommentsPermalink





(d) Definitions- For purposes of this section--CommentsClose CommentsPermalink





(1) COAL PRODUCER- The term ‘coal producer’ means the person in whom is vested ownership of the coal immediately after the coal is severed from the ground, without regard to the existence of any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. The term includes any person who extracts coal from coal waste refuse piles or from the silt waste product which results from the wet washing (or similar processing) of coal.CommentsClose CommentsPermalink





(2) EXPORTER- The term ‘exporter’ means a person, other than a coal producer, who does not have a contract, fee arrangement, or any other agreement with a producer or seller of such coal to export or ship such coal to a third party on behalf of the producer or seller of such coal and--CommentsClose CommentsPermalink





(A) is indicated in the shipper’s export declaration or other documentation as the exporter of record, orCommentsClose CommentsPermalink





(B) actually exported such coal to a foreign country or shipped such coal to a possession of the United States, or caused such coal to be so exported or shipped.CommentsClose CommentsPermalink





(3) RELATED PARTY- The term ‘a party related to such coal producer’ means a person who--CommentsClose CommentsPermalink





(A) is related to such coal producer through any degree of common management, stock ownership, or voting control,CommentsClose CommentsPermalink





(B) is related (within the meaning of section 144(a)(3) of the Internal Revenue Code of 1986) to such coal producer, orCommentsClose CommentsPermalink





(C) has a contract, fee arrangement, or any other agreement with such coal producer to sell such coal to a third party on behalf of such coal producer.CommentsClose CommentsPermalink





(4) SECRETARY- The term ‘Secretary’ means the Secretary of Treasury or the Secretary’s designee.CommentsClose CommentsPermalink





(e) Timing of Refund- With respect to any claim for refund filed pursuant to this section, the Secretary shall determine whether the requirements of this section are met not later than 180 days after such claim is filed. If the Secretary determines that the requirements of this section are met, the claim for refund shall be paid not later than 180 days after the Secretary makes such determination.CommentsClose CommentsPermalink





(f) Interest- Any refund paid pursuant to this section shall be paid by the Secretary with interest from the date of overpayment determined by using the overpayment rate and method under section 6621 of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(g) Denial of Double Benefit- The payment under subsection (a) with respect to any coal shall not exceed--CommentsClose CommentsPermalink





(1) in the case of a payment to a coal producer, the amount of tax paid under section 4121 of the Internal Revenue Code of 1986 with respect to such coal by such coal producer or a party related to such coal producer, andCommentsClose CommentsPermalink





(2) in the case of a payment to an exporter, an amount equal to $0.825 per ton with respect to such coal exported by the exporter or caused to be exported by the exporter.CommentsClose CommentsPermalink





(h) Application of Section- This section applies only to claims on coal exported or shipped on or after October 1, 1990, through the date of the enactment of this Act.CommentsClose CommentsPermalink





(i) Standing Not Conferred-CommentsClose CommentsPermalink





(1) EXPORTERS- With respect to exporters, this section shall not confer standing upon an exporter to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by a coal producer of any Federal or State tax, fee, or royalty paid by the coal producer.CommentsClose CommentsPermalink





(2) COAL PRODUCERS- With respect to coal producers, this section shall not confer standing upon a coal producer to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by an exporter of any Federal or State tax, fee, or royalty paid by the producer and alleged to have been passed on to an exporter.CommentsClose CommentsPermalink

SEC. 225. CARBON AUDIT OF THE TAX CODE.

(a) Study- The Secretary of the Treasury shall enter into an agreement with the National Academy of Sciences to undertake a comprehensive review of the Internal Revenue Code of 1986 to identify the types of and specific tax provisions that have the largest effects on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects.CommentsClose CommentsPermalink





(b) Report- Not later than 2 years after the date of enactment of this Act, the National Academy of Sciences shall submit to Congress a report containing the results of study authorized under this section.CommentsClose CommentsPermalink





(c) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $1,500,000 for the period of fiscal years 2008 and 2009.CommentsClose CommentsPermalink

Subtitle D--Transportation and Domestic Fuel Security ProvisionsCommentsClose CommentsPermalink

SEC. 231. INCLUSION OF CELLULOSIC BIOFUEL IN BONUS DEPRECIATION FOR BIOMASS ETHANOL PLANT PROPERTY.

(a) In General- Paragraph (3) of section 168(l) is amended to read as follows:CommentsClose CommentsPermalink





‘(3) CELLULOSIC BIOFUEL- The term ‘cellulosic biofuel’ means any liquid fuel which is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis.’.CommentsClose CommentsPermalink





(b) Conforming Amendments- Subsection (l) of section 168 is amended--CommentsClose CommentsPermalink





(1) by striking ‘cellulosic biomass ethanol’ each place it appears and inserting ‘cellulosic biofuel’,CommentsClose CommentsPermalink





(2) by striking ‘Cellulosic Biomass Ethanol’ in the heading of such subsection and inserting ‘Cellulosic Biofuel’, andCommentsClose CommentsPermalink





(3) by striking ‘CELLULOSIC BIOMASS ETHANOL’ in the heading of paragraph (2) thereof and inserting ‘CELLULOSIC BIOFUEL’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.CommentsClose CommentsPermalink

SEC. 232. CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.

(a) In General- Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are each amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Increase in Rate of Credit-CommentsClose CommentsPermalink





(1) INCOME TAX CREDIT- Paragraphs (1)(A) and (2)(A) of section 40A(b) are each amended by striking ‘50 cents’ and inserting ‘$1.00’.CommentsClose CommentsPermalink





(2) EXCISE TAX CREDIT- Paragraph (2) of section 6426(c) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) APPLICABLE AMOUNT- For purposes of this subsection, the applicable amount is $1.00.’.CommentsClose CommentsPermalink





(3) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Subsection (b) of section 40A is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.CommentsClose CommentsPermalink





(B) Paragraph (2) of section 40A(f) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) EXCEPTION- Subsection (b)(4) shall not apply with respect to renewable diesel.’.CommentsClose CommentsPermalink





(C) Paragraphs (2) and (3) of section 40A(e) are each amended by striking ‘subsection (b)(5)(C)’ and inserting ‘subsection (b)(4)(C)’.CommentsClose CommentsPermalink





(D) Clause (ii) of section 40A(d)(3)(C) is amended by striking ‘subsection (b)(5)(B)’ and inserting ‘subsection (b)(4)(B)’.CommentsClose CommentsPermalink





(c) Uniform Treatment of Diesel Produced From Biomass- Paragraph (3) of section 40A(f) is amended--CommentsClose CommentsPermalink





(1) by striking ‘diesel fuel’ and inserting ‘liquid fuel’,CommentsClose CommentsPermalink





(2) by striking ‘using a thermal depolymerization process’, andCommentsClose CommentsPermalink





(3) by striking ‘or D396’ in subparagraph (B) and inserting ‘, D396, or other equivalent standard approved by the Secretary’.CommentsClose CommentsPermalink





(d) Coproduction of Renewable Diesel With Petroleum Feedstock-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (3) of section 40A(f) (defining renewable diesel) is amended by adding at the end the following new sentence: ‘Such term does not include any fuel derived from coprocessing biomass with a feedstock which is not biomass. For purposes of this paragraph, the term ‘biomass’ has the meaning given such term by section 45K(c)(3).’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Paragraph (3) of section 40A(f) is amended by striking ‘(as defined in section 45K(c)(3))’.CommentsClose CommentsPermalink





(e) Eligibility of Certain Aviation Fuel- Paragraph (3) of section 40A(f) (defining renewable diesel) is amended by adding at the end the following: ‘The term ‘renewable diesel’ also means fuel derived from biomass which meets the requirements of a Department of Defense specification for military jet fuel or an American Society of Testing and Materials specification for aviation turbine fuel.’.CommentsClose CommentsPermalink





(f) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2008.CommentsClose CommentsPermalink





(2) COPRODUCTION OF RENEWABLE DIESEL WITH PETROLEUM FEEDSTOCK- The amendments made by subsection (d) shall apply to fuel produced, and sold or used, after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 233. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE AN INCENTIVE FOR UNITED STATES PRODUCTION.

(a) Alcohol Fuels Credit- Paragraph (6) of section 40(d) is amended to read as follows:CommentsClose CommentsPermalink





‘(6) LIMITATION TO ALCOHOL WITH CONNECTION TO THE UNITED STATES- No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph, the term ‘United States’ includes any possession of the United States.’.CommentsClose CommentsPermalink





(b) Biodiesel Fuels Credit- Subsection (d) of section 40A is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(5) LIMITATION TO BIODIESEL WITH CONNECTION TO THE UNITED STATES- No credit shall be determined under this section with respect to any biodiesel which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph, the term ‘United States’ includes any possession of the United States.’.CommentsClose CommentsPermalink





(c) Excise Tax Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 6426 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(i) Limitation to Fuels With Connection to the United States-CommentsClose CommentsPermalink





‘(1) ALCOHOL- No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States.CommentsClose CommentsPermalink





‘(2) BIODIESEL AND ALTERNATIVE FUELS- No credit shall be determined under this section with respect to any biodiesel or alternative fuel which is produced outside the United States for use as a fuel outside the United States.CommentsClose CommentsPermalink





For purposes of this subsection, the term ‘United States’ includes any possession of the United States.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Subsection (e) of section 6427 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:CommentsClose CommentsPermalink





‘(5) LIMITATION TO FUELS WITH CONNECTION TO THE UNITED STATES- No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel if credit is not allowed with respect to such mixture or alternative fuel by reason of section 6426(i).’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to claims for credit or payment made on or after May 15, 2008.CommentsClose CommentsPermalink

SEC. 234. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

(a) In General- Subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

‘(a) Allowance of Credit- There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year.CommentsClose CommentsPermalink





‘(b) Per Vehicle Dollar Limitation-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle.CommentsClose CommentsPermalink





‘(2) BASE AMOUNT- The amount determined under this paragraph is $3,000.CommentsClose CommentsPermalink





‘(3) BATTERY CAPACITY- In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $200, plus $200 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $2,000.CommentsClose CommentsPermalink





‘(c) Application With Other Credits-CommentsClose CommentsPermalink





‘(1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT- So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).CommentsClose CommentsPermalink





‘(2) PERSONAL CREDIT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.CommentsClose CommentsPermalink





‘(B) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of--CommentsClose CommentsPermalink





‘(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, overCommentsClose CommentsPermalink





‘(ii) the sum of the credits allowable under subpart A (other than this section and sections 23 and 25D) and section 27 for the taxable year.CommentsClose CommentsPermalink





‘(d) New Qualified Plug-In Electric Drive Motor Vehicle- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘new qualified plug-in electric drive motor vehicle’ means a motor vehicle (as defined in section 30(c)(2))--CommentsClose CommentsPermalink





‘(A) the original use of which commences with the taxpayer,CommentsClose CommentsPermalink





‘(B) which is acquired for use or lease by the taxpayer and not for resale,CommentsClose CommentsPermalink





‘(C) which is made by a manufacturer,CommentsClose CommentsPermalink





‘(D) which has a gross vehicle weight rating of less than 14,000 pounds,CommentsClose CommentsPermalink





‘(E) which has received a certificate of conformity under the Clean Air Act and meets or exceeds the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle, andCommentsClose CommentsPermalink





‘(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which--CommentsClose CommentsPermalink





‘(i) has a capacity of not less than 4 kilowatt hours, andCommentsClose CommentsPermalink





‘(ii) is capable of being recharged from an external source of electricity.CommentsClose CommentsPermalink





‘(2) EXCEPTION- The term ‘new qualified plug-in electric drive motor vehicle’ shall not include any vehicle which is not a passenger automobile or light truck if such vehicle has a gross vehicle weight rating of less than 8,500 pounds.CommentsClose CommentsPermalink





‘(3) OTHER TERMS- The terms ‘passenger automobile’, ‘light truck’, and ‘manufacturer’ have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).CommentsClose CommentsPermalink





‘(4) BATTERY CAPACITY- The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.CommentsClose CommentsPermalink





‘(e) Limitation on Number of New Qualified Plug-In Electric Drive Motor Vehicles Eligible for Credit-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed.CommentsClose CommentsPermalink





‘(2) PHASEOUT PERIOD- For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after the date of the enactment of this section, is at least 60,000.CommentsClose CommentsPermalink





‘(3) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the applicable percentage is--CommentsClose CommentsPermalink





‘(A) 50 percent for the first 2 calendar quarters of the phaseout period,CommentsClose CommentsPermalink





‘(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, andCommentsClose CommentsPermalink





‘(C) 0 percent for each calendar quarter thereafter.CommentsClose CommentsPermalink





‘(4) CONTROLLED GROUPS- Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.CommentsClose CommentsPermalink





‘(f) Special Rules-CommentsClose CommentsPermalink





‘(1) BASIS REDUCTION- The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (c)).CommentsClose CommentsPermalink





‘(2) RECAPTURE- The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.CommentsClose CommentsPermalink





‘(3) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT QUALIFIED- No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.CommentsClose CommentsPermalink





‘(4) ELECTION NOT TO TAKE CREDIT- No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.CommentsClose CommentsPermalink





‘(5) PROPERTY USED BY TAX-EXEMPT ENTITY; INTERACTION WITH AIR QUALITY AND MOTOR VEHICLE SAFETY STANDARDS- Rules similar to the rules of paragraphs (6) and (10) of section 30B(h) shall apply for purposes of this section.’.CommentsClose CommentsPermalink





(b) Coordination With Alternative Motor Vehicle Credit- Section 30B(d)(3) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(D) EXCLUSION OF PLUG-IN VEHICLES- Any vehicle with respect to which a credit is allowable under section 30D (determined without regard to subsection (c) thereof) shall not be taken into account under this section.’.CommentsClose CommentsPermalink





(c) Credit Made Part of General Business Credit- Section 38(b) is amended by striking ‘plus’ at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting ‘plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(34) the portion of the new qualified plug-in electric drive motor vehicle credit to which section 30D(c)(1) applies.’.CommentsClose CommentsPermalink





(d) Conforming Amendments-CommentsClose CommentsPermalink





(1)(A) Section 24(b)(3)(B), as amended by section 214, is amended by striking ‘and 25D’ and inserting ‘25D, and 30D’.CommentsClose CommentsPermalink





(B) Section 25(e)(1)(C)(ii) is amended by inserting ‘30D,’ after ‘25D,’.CommentsClose CommentsPermalink





(C) Section 25B(g)(2), as amended by section 214, is amended by striking ‘and 25D’ and inserting ‘, 25D, and 30D’.CommentsClose CommentsPermalink





(D) Section 26(a)(1), as amended by section 214, is amended by striking ‘and 25D’ and inserting ‘25D, and 30D’.CommentsClose CommentsPermalink





(E) Section 1400C(d)(2) is amended by striking ‘and 25D’ and inserting ‘25D, and 30D’.CommentsClose CommentsPermalink





(2) Section 1016(a) is amended by striking ‘and’ at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ‘, and’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(37) to the extent provided in section 30D(f)(1).’.CommentsClose CommentsPermalink





(3) Section 6501(m) is amended by inserting ‘30D(f)(4),’ after ‘30C(e)(5),’.CommentsClose CommentsPermalink





(4) The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 30D. New qualified plug-in electric drive motor vehicles.’.CommentsClose CommentsPermalink





(e) Treatment of Alternative Motor Vehicle Credit as a Personal Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (2) of section 30B(g) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) PERSONAL CREDIT- The credit allowed under subsection (a) for any taxable year (after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Subparagraph (A) of section 30C(d)(2) is amended by striking ‘sections 27, 30, and 30B’ and inserting ‘sections 27 and 30’.CommentsClose CommentsPermalink





(B) Paragraph (3) of section 55(c) is amended by striking ‘30B(g)(2),’.CommentsClose CommentsPermalink





(f) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink





(2) TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS PERSONAL CREDIT- The amendments made by subsection (e) shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink





(g) Application of EGTRRA Sunset- The amendment made by subsection (d)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates.CommentsClose CommentsPermalink

SEC. 235. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION UNITS AND ADVANCED INSULATION.

(a) In General- Section 4053 is amended by adding at the end the following new paragraphs:CommentsClose CommentsPermalink





‘(9) IDLING REDUCTION DEVICE- Any device or system of devices which--CommentsClose CommentsPermalink





‘(A) is designed to provide to a vehicle those services (such as heat, air conditioning, or electricity) that would otherwise require the operation of the main drive engine while the vehicle is temporarily parked or remains stationary using one or more devices affixed to a tractor, andCommentsClose CommentsPermalink





‘(B) is determined by the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Energy and the Secretary of Transportation, to reduce idling of such vehicle at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary.CommentsClose CommentsPermalink





‘(10) ADVANCED INSULATION- Any insulation that has an R value of not less than R35 per inch.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to sales or installations after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 236. TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS.

(a) In General- Paragraph (1) of section 132(f) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(D) Any qualified bicycle commuting reimbursement.’.CommentsClose CommentsPermalink





(b) Limitation on Exclusion- Paragraph (2) of section 132(f) is amended by striking ‘and’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ‘, and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(C) the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.’.CommentsClose CommentsPermalink





(c) Definitions- Paragraph (5) of section 132(f) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(F) DEFINITIONS RELATED TO BICYCLE COMMUTING REIMBURSEMENT-CommentsClose CommentsPermalink





‘(i) QUALIFIED BICYCLE COMMUTING REIMBURSEMENT- The term ‘qualified bicycle commuting reimbursement’ means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee’s residence and place of employment.CommentsClose CommentsPermalink





‘(ii) APPLICABLE ANNUAL LIMITATION- The term ‘applicable annual limitation’ means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.CommentsClose CommentsPermalink





‘(iii) QUALIFIED BICYCLE COMMUTING MONTH- The term ‘qualified bicycle commuting month’ means, with respect to any employee, any month during which such employee--CommentsClose CommentsPermalink





‘(I) regularly uses the bicycle for a substantial portion of the travel between the employee’s residence and place of employment, andCommentsClose CommentsPermalink





‘(II) does not receive any benefit described in subparagraph (A), (B), or (C) of paragraph (1).’.CommentsClose CommentsPermalink





(d) Constructive Receipt of Benefit- Paragraph (4) of section 132(f) is amended by inserting ‘(other than a qualified bicycle commuting reimbursement)’ after ‘qualified transportation fringe’.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink

SEC. 237. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

(a) Increase in Credit Amount- Section 30C is amended--CommentsClose CommentsPermalink





(1) by striking ‘30 percent’ in subsection (a) and inserting ‘50 percent’, andCommentsClose CommentsPermalink





(2) by striking ‘$30,000’ in subsection (b)(1) and inserting ‘$50,000’.CommentsClose CommentsPermalink





(b) Extension of Credit- Paragraph (2) of section 30C(g) is amended by striking ‘December 31, 2009’ and inserting ‘December 31, 2010’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.CommentsClose CommentsPermalink

Subtitle E--Energy Conservation and Efficiency ProvisionsCommentsClose CommentsPermalink

SEC. 241. QUALIFIED ENERGY CONSERVATION BONDS.

(a) In General- Subpart I of part IV of subchapter A of chapter 1, as amended by section 216, is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 54D. QUALIFIED ENERGY CONSERVATION BONDS.

‘(a) Qualified Energy Conservation Bond- For purposes of this subchapter, the term ‘qualified energy conservation bond’ means any bond issued as part of an issue if--CommentsClose CommentsPermalink





‘(1) 100 percent of the available project proceeds of such issue are to be used for one or more qualified conservation purposes,CommentsClose CommentsPermalink





‘(2) the bond is issued by a State or local government, andCommentsClose CommentsPermalink





‘(3) the issuer designates such bond for purposes of this section.CommentsClose CommentsPermalink





‘(b) Reduced Credit Amount- The annual credit determined under section 54A(b) with respect to any qualified energy conservation bond shall be 70 percent of the amount so determined without regard to this subsection.CommentsClose CommentsPermalink





‘(c) Limitation on Amount of Bonds Designated- The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated to such issuer under subsection (e).CommentsClose CommentsPermalink





‘(d) National Limitation on Amount of Bonds Designated- There is a national qualified energy conservation bond limitation of $3,000,000,000.CommentsClose CommentsPermalink





‘(e) Allocations-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The limitation applicable under subsection (d) shall be allocated by the Secretary among the States in proportion to the population of the States.CommentsClose CommentsPermalink





‘(2) ALLOCATIONS TO LARGEST LOCAL GOVERNMENTS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of any State in which there is a large local government, each such local government shall be allocated a portion of such State’s allocation which bears the same ratio to the State’s allocation (determined without regard to this subparagraph) as the population of such large local government bears to the population of such State.CommentsClose CommentsPermalink





‘(B) ALLOCATION OF UNUSED LIMITATION TO STATE- The amount allocated under this subsection to a large local government may be reallocated by such local government to the State in which such local government is located.CommentsClose CommentsPermalink





‘(C) LARGE LOCAL GOVERNMENT- For purposes of this section, the term ‘large local government’ means any municipality or county if such municipality or county has a population of 100,000 or more.CommentsClose CommentsPermalink





‘(3) ALLOCATION TO ISSUERS; RESTRICTION ON PRIVATE ACTIVITY BONDS- Any allocation under this subsection to a State or large local government shall be allocated by such State or large local government to issuers within the State in a manner that results in not less than 70 percent of the allocation to such State or large local government being used to designate bonds which are not private activity bonds.CommentsClose CommentsPermalink





‘(f) Qualified Conservation Purpose- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘qualified conservation purpose’ means any of the following:CommentsClose CommentsPermalink





‘(A) Capital expenditures incurred for purposes of--CommentsClose CommentsPermalink





‘(i) reducing energy consumption in publicly-owned buildings by at least 20 percent,CommentsClose CommentsPermalink





‘(ii) implementing green community programs,CommentsClose CommentsPermalink





‘(iii) rural development involving the production of electricity from renewable energy resources, orCommentsClose CommentsPermalink





‘(iv) any qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and without regard to any placed in service date).CommentsClose CommentsPermalink





‘(B) Expenditures with respect to research facilities, and research grants, to support research in--CommentsClose CommentsPermalink





‘(i) development of cellulosic ethanol or other nonfossil fuels,CommentsClose CommentsPermalink





‘(ii) technologies for the capture and sequestration of carbon dioxide produced through the use of fossil fuels,CommentsClose CommentsPermalink





‘(iii) increasing the efficiency of existing technologies for producing nonfossil fuels,CommentsClose CommentsPermalink





‘(iv) automobile battery technologies and other technologies to reduce fossil fuel consumption in transportation, orCommentsClose CommentsPermalink





‘(v) technologies to reduce energy use in buildings.CommentsClose CommentsPermalink





‘(C) Mass commuting facilities and related facilities that reduce the consumption of energy, including expenditures to reduce pollution from vehicles used for mass commuting.CommentsClose CommentsPermalink





‘(D) Demonstration projects designed to promote the commercialization of--CommentsClose CommentsPermalink





‘(i) green building technology,CommentsClose CommentsPermalink





‘(ii) conversion of agricultural waste for use in the production of fuel or otherwise,CommentsClose CommentsPermalink





‘(iii) advanced battery manufacturing technologies,CommentsClose CommentsPermalink





‘(iv) technologies to reduce peak use of electricity, orCommentsClose CommentsPermalink





‘(v) technologies for the capture and sequestration of carbon dioxide emitted from combusting fossil fuels in order to produce electricity.CommentsClose CommentsPermalink





‘(E) Public education campaigns to promote energy efficiency.CommentsClose CommentsPermalink





‘(2) SPECIAL RULES FOR PRIVATE ACTIVITY BONDS- For purposes of this section, in the case of any private activity bond, the term ‘qualified conservation purposes’ shall not include any expenditure which is not a capital expenditure.CommentsClose CommentsPermalink





‘(g) Population-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The population of any State or local government shall be determined for purposes of this section as provided in section 146(j) for the calendar year which includes the date of the enactment of this section.CommentsClose CommentsPermalink





‘(2) SPECIAL RULE FOR COUNTIES- In determining the population of any county for purposes of this section, any population of such county which is taken into account in determining the population of any municipality which is a large local government shall not be taken into account in determining the population of such county.CommentsClose CommentsPermalink





‘(h) Application to Indian Tribal Governments- An Indian tribal government shall be treated for purposes of this section in the same manner as a large local government, except that--CommentsClose CommentsPermalink





‘(1) an Indian tribal government shall be treated for purposes of subsection (e) as located within a State to the extent of so much of the population of such government as resides within such State, andCommentsClose CommentsPermalink





‘(2) any bond issued by an Indian tribal government shall be treated as a qualified energy conservation bond only if issued as part of an issue the available project proceeds of which are used for purposes for which such Indian tribal government could issue bonds to which section 103(a) applies.’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Paragraph (1) of section 54A(d), as amended by section 216, is amended to read as follows:CommentsClose CommentsPermalink





‘(1) QUALIFIED TAX CREDIT BOND- The term ‘qualified tax credit bond’ means--CommentsClose CommentsPermalink





‘(A) a qualified forestry conservation bond,CommentsClose CommentsPermalink





‘(B) a new clean renewable energy bond, orCommentsClose CommentsPermalink





‘(C) a qualified energy conservation bond,CommentsClose CommentsPermalink





which is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and (6).’.CommentsClose CommentsPermalink





(2) Subparagraph (C) of section 54A(d)(2), as amended by section 216, is amended to read as follows:CommentsClose CommentsPermalink





‘(C) QUALIFIED PURPOSE- For purposes of this paragraph, the term ‘qualified purpose’ means--CommentsClose CommentsPermalink





‘(i) in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e),CommentsClose CommentsPermalink





‘(ii) in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1), andCommentsClose CommentsPermalink





‘(iii) in the case of a qualified energy conservation bond, a purpose specified in section 54D(a)(1).’.CommentsClose CommentsPermalink





(3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 54D. Qualified energy conservation bonds.’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.CommentsClose CommentsPermalink