S.Amdt. 4791

SA 4791. Mr. COLEMAN submitted an amendment intended to be proposed
by him to the bill H.R. 5631, making appropriations for the Department
of Defense for the fiscal year ending September 30, 2007, and for other
purposes;

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which was ordered to lie on the table; as follows:

At the end of title VIII, add the following:

SEC. 8109. ENERGY SECURITY.

(a) Short Title.--This section may be cited as the
``Transforming Energy Now Act of 2006''.
(b) Tax Credits.--
(1) Increase in alternative fuel vehicle refueling property
credit.--Section 30C(a) of the Internal Revenue Code of 1986
is amended by striking ``30 percent'' and inserting ``50
percent''.
(2) AMT relief.--
(A) Personal credit.--Paragraph (2) of section 30C(d) of
the Internal Revenue Code of 1986 is amended by striking
``the excess (if any) of'' and all that follows and inserting
``the excess of--
``(A) the sum of the regular tax liability (as defined
under section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under subpart A and
sections 27, 30, and 30B.''.
(B) Business credit amount.--Subparagraph (B) of section
38(c)(4) of the Internal Revenue Code of 1986 is amended--
(i) in clause (i), by striking ``and'' at the end;
(ii) in clause (ii)(II), by striking the period at the end
and inserting ``, and''; and
(iii) by adding at the end the following:
``(iii) the portion of the credit under section 30C which
is treated as a credit under this section by reason of
section 30C(d)(1).''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2005, in taxable years ending after such date.
(c) Use of CAFE Penalties to Build Alternative Fueling
Infrastructure.--Section 32912 of title 49, United States
Code, is amended by adding at the end the following:
``(e) Alternative Fueling Infrastructure Grant Program.--
``(1) Trust fund.--
``(A) Establishment.--There is established in the Treasury
of the United States a trust fund, to be known as the
Alternative Fueling Infrastructure Trust Fund (referred to in
this subsection as the `Trust Fund'), consisting of such
amounts as are deposited into the Trust Fund under
subparagraph (B) and any interest earned on investment of
amounts in the Trust Fund.
``(B) Transfers of civil penalties.--The Secretary of
Transportation shall remit 90 percent of the amount collected
in civil penalties under this section to the Trust Fund.
``(2) Establishment of grant program.--
``(A) In general.--The Secretary of Energy shall obligate
such sums as are available in the Trust Fund to establish a
grant program to increase the number of locations at which
consumers may purchase alternative transportation fuels.
``(B) Allocation to corporate and nonprofit entities.--The
Secretary shall allocate such sums from the Trust Fund as the
Secretary considers appropriate to corporations (including
nonprofit corporations) with demonstrated experience in the
administration of grant funding. Corporations shall use funds
received under this paragraph to award grants to owners and
operators of fueling stations for the purpose of developing
alternative fueling infrastructure for specific types of
alternative fuels that can be used in at least 50,000
vehicles produced in the United States in the prior vehicle
production year.
``(C) Considerations.--In making allocations under
subparagraph (A), the Secretary shall--
``(i) give priority to recognized nonprofit corporations
that have proven experience and demonstrated technical
expertise in the establishment of alternative fueling
infrastructure;
``(ii) consider the number of vehicles produced for sale in
the preceding production year capable of using each specific
type of alternative fuel; and
``(iii) identify 1 primary group per alternative fuel.
``(D) Matching requirement.--The Secretary may not allocate
funds to a corporation under this paragraph unless such
corporation agrees to provide $1 of non-Federal contributions
for every $3 of Federal funding received under this
paragraph.
``(E) Limitation on administrative expenses.--A corporation
may not expend more than 5 percent of the total allocation
provided under this paragraph on administrative expenses.
``(F) Technical and marketing assistance.--Corporations
receiving an allocation under subparagraph (A) shall provide
grant recipients under paragraph (3) with technical and
marketing assistance, including--
``(i) technical advice for compliance with applicable
Federal and State environmental requirements;
``(ii) assistance in identifying alternative fuel supply
sources; and
``(iii) point of sale and labeling materials.
``(3) Administration of grants.--
``(A) Direct grants to fuel station owners and operators.--
The Secretary of Energy shall award grants directly to owners
and operators of fueling stations for the purpose of
installing alternative fuel infrastructure for specific types
of alternative fuels that can be used in fewer that 50,000
vehicles produced in the United States in the prior vehicle
production year.
``(B) Grant recipient.--Corporations receiving an
allocation under paragraph (2), and the Secretary of Energy
under subparagraph (A), shall award grants to owners and
operators of fueling stations in an amount not greater than--
``(i) $150,000 per site; or
``(ii) $500,000 per entity.
``(C) Selection.--Grant recipients under this paragraph
shall be selected on a formal, open, and competitive basis,
based on--
``(i) the public demand for each alternative fuel in a
particular county based on state registration records showing
the number of vehicles that can be operated with alternative
fuel; and
``(ii) the opportunity to create or expand corridors of
alternative fuel stations along interstate or State highways.
``(D) Use of funds.--Grant funds received under this
paragraph may be used to--
``(i) construct new facilities to dispense alternative
fuels;
``(ii) purchase equipment to upgrade, expand, or otherwise
improve existing alternative fuel facilities; or
``(iii) purchase equipment or pay for specific turnkey
fueling services by alternative fuel providers.
``(E) Matching requirement.--A recipient of a grant under
this paragraph shall agree to provide $1 of non-Federal
contributions for every $1 of grant funds received under this
paragraph.
``(F) Limitation on administrative expenses.--A grant
recipient may not expend more than 3 percent of any grant
provided under this paragraph on administrative expenses.
``(4) Operation of alternative fuel stations.--Facilities
constructed or upgraded with grant funds received under this
subsection shall--
``(A) provide alternative fuel available to the public for
a period of not less than 4 years;
``(B) establish a marketing plan to advance the sale and
use of alternative fuels;
``(C) prominently display the price of alternative fuel on
the marquee and in the station;
``(D) provide point of sale materials on alternative fuel;
``(E) clearly label the dispenser with consistent
materials;
``(F) price the alternative fuel at the same margin that is
received for unleaded gasoline; and
``(G) support and use all available tax incentives to
reduce the cost of the alternative fuel to the lowest
possible retail price.
``(5) Notification requirements.--
``(A) Opening.--Not later than the date on which each
alternative fuel station begins to offer alternative fuel to
the public, the grant recipient that used grant funds to
construct such station shall notify the Secretary of Energy
of such opening. The Secretary of Energy shall add each new
alternative fuel station to the alternative fuel station
locator on its Website when it receives notification under
this subparagraph.
``(B) Semi-annual report.--Not later than 6 months after
the receipt of a grant award under this subsection, and every
6 months thereafter, each grant recipient shall submit a
report to the Secretary of Energy that describes--
``(i) the status of each alternative fuel station
constructed with grant funds received under this subsection;
``(ii) the amount of alternative fuel dispensed at each
station during the preceding 6-month period; and
``(iii) the average price per gallon of the alternative
fuel sold at each station during the preceding 6-month
period.
``(6) Alternative fuel defined.--For the purposes of this
subsection, the term `alternative fuel' means--
``(A) any fuel of which at least 85 percent (or such
percentage, but not less than 70 percent, as determined by
the Secretary, by rule, to provide for requirements relating
to cold start, safety, or vehicle functions) of the volume
consists of ethanol, natural gas, compressed natural gas,
liquefied natural gas, liquefied petroleum gas, or hydrogen;
or
``(B) any mixture of biodiesel and diesel fuel determined
without regard to any use of kerosene that contains at least
20 percent biodiesel.''.
(d) Low-Interest Loan and Grant Program for Retail Delivery
of E-85 Fuel.--
(1) Purposes of loans.--Section 312(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1942(a)) is
amended--
(A) in paragraph (9)(B)(ii), by striking ``or'' at the end;
(B) in paragraph (10), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(11) building infrastructure, including pump stations,
for the retail delivery to consumers of any fuel that
contains not less than 85 percent ethanol, by volume.''.
(2) Program.--Subtitle B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941 et seq.) is amended by adding
at the end the following:

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

``(a) In General.--The Secretary shall establish a low-
interest loan and grant program to assist farmer-owned
ethanol producers (including cooperatives and limited
liability corporations) to develop and build infrastructure,
including pump stations, that is directly related to the
retail delivery to consumers of any fuel that contains not
less than 85 percent ethanol, by volume.
``(b) Loan Terms.--

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``(1) Amortization.--The repayment of a loan received under
this section shall be amortized over the expected life of the
infrastructure project that is being financed with the
proceeds of the loan.
``(2) Interest rate.--The annual interest rate of a loan
received under this section shall be fixed at not more than 5
percent.
``(c) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.''.
(3) Regulations.--As soon as practicable after the date of
the enactment of this Act, the Secretary of Agriculture shall
promulgate such regulations as are necessary to carry out the
amendments made by this subsection.
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