II
109th CONGRESS
2d Session
S. 2398
IN THE SENATE OF THE UNITED STATES
March 9, 2006
Mr. Baucus introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To establish an Advanced Research Projects Administration-Energy to initiate high risk, innovative energy research to improve the energy security of the United States, to extend certain energy tax incentives, and for other purposes.
Short title; table of contents
Short title
This Act may be cited as the Energy Competitiveness Act of
2006
.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Advanced Research Projects Administration-Energy
Sec. 101. Advanced Research Projects Administration-Energy.
TITLE II—Energy tax incentives
Subtitle A—Energy infrastructure tax incentives
Sec. 201. Extension of credit for electricity produced from certain renewable resources.
Sec. 202. Extension and expansion of credit to holders of clean renewable energy bonds.
Sec. 203. Extension and expansion of qualifying advanced coal project credit.
Sec. 204. Extension and expansion of qualifying gasification project credit.
Subtitle B—Domestic fossil fuel security
Sec. 211. Extension of election to expense certain refineries.
Subtitle C—Conservation and energy efficiency provisions
Sec. 221. Extension of energy efficient commercial buildings deduction.
Sec. 222. Extension of new energy efficient home credit.
Sec. 223. Extension of residential energy efficient property credit.
Sec. 224. Extension of credit for business installation of qualified fuel cells and stationary microturbine power plants.
Sec. 225. Extension of business solar investment tax credit.
Subtitle D—Alternative fuels and vehicles incentives
Sec. 231. Extension of excise tax provisions and income tax credit for biodiesel and alternative fuels.
Sec. 232. Exception from depreciation limitation for certain alternative and electric passenger automobiles.
Advanced Research Projects Administration-Energy
Advanced Research Projects Administration-Energy
Establishment
There
is established the Advanced Research Projects Administration-Energy (referred
to in this section as ARPA–E
).
Goals
The goals of ARPA–E are to reduce the quantity of energy the United States imports from foreign sources and to improve the competitiveness of the United States economy by—
promoting revolutionary changes in the critical technologies that would promote energy competitiveness;
turning cutting-edge science and engineering into technologies for energy and environmental application; and
accelerating innovation in energy and the environment for both traditional and alternative energy sources and in energy efficiency mechanisms to—
reduce energy use;
decrease the reliance of the United States on foreign energy sources; and
improve energy competitiveness.
Director
In general
ARPA–E shall be headed by a Director (referred to in this section as the Director) appointed by the President.
Positions at Level V
Section 5316 of title 5, United States Code, is amended by adding at the end the following:
- Director, Advanced Research Projects Administration-Energy.
.
Duties
In general
In carrying out this section, the Director shall award competitive grants, cooperative agreements, or contracts to institutions of higher education, companies, or consortia of such entities (which may include federally funded research and development centers) to achieve the goal described in subsection (b) through acceleration of—
energy-related research;
development of resultant techniques, processes, and technologies, and related testing and evaluation; and
demonstration and commercial application of the most promising technologies and research applications.
Small-business concerns
The Director shall carry out programs established under this section, to the maximum extent practicable, in a manner that is similar to the Small Business Innovation Research Program established under section 9 of the Small Business Act (15 U.S.C. 638) to ensure that small-business concerns are fully able to participate in the programs.
Personnel
Program managers
Appointment
The Director shall appoint employees to serve as program managers for each of the programs that are established to carry out the duties of ARPA–E under this section.
Duties
Program managers shall be responsible for—
establishing research and development goals for the program, as well as publicizing goals of the program to the public and private sectors;
soliciting applications for specific areas of particular promise, especially areas for which the private sector cannot or will not provide funding;
selecting research projects for support under the program from among applications submitted to ARPA–E, based on—
the scientific and technical merit of the proposed projects;
the demonstrated capabilities of the applicants to successfully carry out the proposed research project; and
such other criteria as are established by the Director; and
monitoring the progress of projects supported under the program.
Other personnel
In general
Subject to subparagraph (B), the Director shall appoint such employees as are necessary to carry out the duties of ARPA–E under this section.
Limitations
The Director shall appoint not more than 250 employees to carry out the duties of ARPA–E under this section, including not less than 180 technical staff, of which—
not less than 20 staff shall be senior technical managers (including program managers designated under paragraph (1)); and
not less than 80 staff shall be technical program managers.
Experimental personnel authority
In appointing personnel for ARPA–E, the Director shall have the hiring and management authorities described in section 1101 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105–261; 5 U.S.C. 3104 note).
Maximum duration of employment
Program managers and senior technical managers
In general
Subject to clause (ii), a program manager and a senior technical manager appointed under this subsection shall serve for a term not to exceed 4 years after the date of appointment.
Extensions
The Director may extend the term of employment of a program manager or a senior technical manager appointed under this subsection for not more than 4 years through 1 or more 2-year terms.
Technical program managers
A technical program manager appointed under this subsection shall serve for a term not to exceed 6 years after the date of appointment.
Location
The office of an officer or employee of ARPA–E shall not be located in the headquarters of the Department of Energy.
Transactions other than contracts and grants
In general
To carry out projects through ARPA–E, the Director may enter into transactions (other than contracts, cooperative agreements, and grants) to carry out advanced research projects under this section under similar terms and conditions as the authority is exercised under section 646(g) of the Department of Energy Organization Act (42 U.S.C. 7256(g)).
Peer review
Peer review shall not be required for 75 percent of the research projects carried out by the Director under this section.
Prizes for advanced technology achievements
The Director may carry out a program to award cash prizes in recognition of outstanding achievements in basic, advanced, and applied research, technology development, and prototype development that have the potential for application to the performance of the mission of ARPA–E under similar terms and conditions as the authority is exercised under section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396).
Coordination of activities
The Director—
shall ensure that the activities of ARPA–E are coordinated with activities of Department of Energy offices and outside agencies; and
may carry out projects jointly with other agencies.
Report
Not later than September 30, 2007, the Director shall submit to Congress a report on the activities of ARPA–E under this section, including a recommendation on whether ARPA–E needs an energy research laboratory.
Authorization of appropriations
There are authorized to be appropriated to carry out this section—
$300,000,000 for fiscal year 2007;
$600,000,000 for fiscal year 2008;
$1,100,000,000 for fiscal year 2009;
$1,500,000,000 for fiscal year 2010; and
$2,000,000,000 for fiscal year 2011.
Energy tax incentives
Energy infrastructure tax incentives
Extension of credit for electricity produced from certain renewable resources
Section 45(d) of the Internal Revenue Code
of 1986 (relating to qualified facilities) is amended by striking
2008
each place it appears and inserting
2011
.
Extension and expansion of credit to holders of clean renewable energy bonds
In general
Section 54(m) of the Internal Revenue Code of 1986
(relating to termination) is amended by striking 2007
and
inserting 2010
.
Annual volume cap for bonds issued during extension period
Paragraph (1) of section 54(f) of the Internal Revenue Code of 1986 (relating to limitation on amount of bonds designated) is amended to read as follows:
National limitation
Initial national limitation
With respect to bonds issued after December 31, 2005, and before January 1, 2008, there is a national clean renewable energy bond limitation of $800,000,000.
Annual national limitation
With respect to bonds issued after December 31, 2007, and before January 1, 2011, there is a national clean renewable energy bond limitation for each calendar year of $800,000,000.
.
Effective date
The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.
Extension and expansion of qualifying advanced coal project credit
In general
Section 48A(d)(3)(A) of the Internal Revenue Code of 1986
(relating to aggregate credits) is amended by striking
$1,300,000,000
and inserting
$1,800,000,000
.
Authorization of additional integrated gasification combined cycle projects
Subparagraph (B) of section 48A(d)(3) of te Internal Revenue Code of 1986 (relating to aggregate credits) is amended to read as follows:
Particular projects
Of the dollar amount in subparagraph (A), the Secretary is authorized to certify—
$800,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph (2)(A)(i),
$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), and
$500,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph (2)(A)(ii).
.
Application period for additional projects
Subparagraph (A) of section 48A(d)(2) of the Internal Revenue Code of 1986 (relating to certification) is amended to read as follows:
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—
for an allocation from the dollar amount specified in clause (i) or (ii) of paragraph (3)(A) during the 3-year period beginning on the date the Secretary establishes the program under paragraph (1), and
for an allocation from the dollar amount specified in paragraph (3)(A)(iii) during the 3-year period beginning at the termination of the period described in clause (i).
.
Effective date
The amendments made by this section shall take effect as if included in the amendments made by section 1307 of the Energy Policy Act of 2005.
Extension and expansion of qualifying gasification project credit
In general
Section 48B(d)(1) of the Internal Revenue Code of 1986
(relating to qualifying gasification project program) is amended by striking
$350,000,000
and inserting $850,000,000
.
Effective date
The amendment made by this section shall take effect as if included in the amendments made by section 1307 of the Energy Policy Act of 2005.
Domestic fossil fuel security
Extension of election to expense certain refineries
In general
Section 179C(c)(1) of the Internal Revenue Code of 1986 (defining qualified refinery property) is amended—
by striking and before January 1,
2012
in subparagraph (B) and inserting and, in the case of any
qualified refinery described in subsection (d)(1), before January 1,
2012
, and
by inserting
if described in subsection (d)(1)
after of which
in subparagraph (F)(i).
Conforming amendment
Subsection (d) of section 179C of the Internal Revenue Code of 1986 is amended to read as follows:
Qualified refinery
For purposes of this section, the term qualified refinery means any refinery located in the United States which is designed to serve the primary purpose of processing liquid fuel from—
crude oil, or
qualified fuels (as defined in section 45K(c)).
.
Effective date
The amendments made by this section shall take effect as if included in the amendment made by section 1323(a) of the Energy Policy Act of 2005.
Conservation and energy efficiency provisions
Extension of energy efficient commercial buildings deduction
Section 179D(h) of the Internal Revenue Code
of 1986 (relating to termination) is amended by striking 2007
and inserting 2010
.
Extension of new energy efficient home credit
In general
Subsection (g) of section 45L of the Internal Revenue Code of 1986 (relating to new energy efficient home credit) is amended to read as follows:
Termination
This section shall not apply to—
any qualified new energy efficient home meeting the energy saving requirements of subsection (c)(1) acquired after December 31, 2010, and
any qualified new energy efficient home meeting the energy saving requirements of paragraph (2) or (3) of subsection (c) acquired after December 31, 2007.
.
Effective date
The amendment made by this section shall take effect as if included in the amendments made by section 1332 of the Energy Policy Act of 2005.
Extension of residential energy efficient property credit
Section 25D(g) of the Internal Revenue Code
of 1986 (relating to termination) is amended by striking 2007
and inserting 2010
.
Extension of credit for business installation of qualified fuel cells and stationary microturbine power plants
Sections 48(c)(1)(E) and 48(c)(2)(E) of the
Internal Revenue Code of 1986 (relating to termination) are each amended by
striking 2007
and inserting 2010
.
Extension of business solar investment tax credit
Sections 48(a)(2)(A)(i)(II) and
48(a)(3)(A)(ii) of the Internal Revenue Code of 1986 (relating to termination)
are each amended by striking 2008
and inserting
2011
.
Alternative fuels and vehicles incentives
Extension of excise tax provisions and income tax credit for biodiesel and alternative fuels
Biodiesel
Sections 40A(g), 6426(c)(6), and
6427(e)(5)(B) of the Internal Revenue Code of 1986 are each amended by striking
2008
and inserting 2010
.
Alternative fuel
Fuels
Sections
6426(d)(4) and 6427(e)(5)(C) of the Internal Revenue Code of 1986 are each
amended by striking September 30, 2009
and inserting
December 31, 2010
.
Refueling property
Section 30C(g) of such Code is amended by striking
2009
and inserting 2010
.
Effective date
The amendments made by this section shall take effect on January 1, 2007.
Exception from depreciation limitation for certain alternative and electric passenger automobiles
In general
Paragraph (1) of section 280F(a) of the Internal Revenue Code of 1986 (relating to limitation) is amended by adding at the end the following new subparagraph:
Special rule for certain alternative motor vehicles and qualified electric vehicles
Subparagraph (A) shall not apply to any motor vehicle for which a credit is allowable under section 30 or 30B.
.
Conforming amendment
Subparagraph (C) of section 280F(a)(1) of the Internal Revenue Code of 1986 is amended by striking clause (ii) and by redesignating clause (iii) as clause (ii).
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.