I
110th CONGRESS
1st Session
H. R. 1945
IN THE HOUSE OF REPRESENTATIVES
April 19, 2007
Mr. Shays (for himself and Mr. Hinchey) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Natural Resources, Transportation and Infrastructure, and Science and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To improve the energy efficiency of the United States.
Short title; table of contents
Short title
This Act may be cited
as the Energy For Our Future
Act
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Save oil
Sec. 101. Help consumers buy more fuel efficient cars.
Sec. 102. Energy efficient motor vehicles manufacturing credit.
Sec. 103. Transit-oriented development corridors.
Sec. 104. Automobile Fuel Economy Standards.
Sec. 105. Inclusion of sports utility vehicles in limitation on depreciation of certain luxury automobiles.
Sec. 106. Fuel efficiency standards for replacement tires.
Sec. 107. Heavy duty vehicle fuel economy requirements.
Title II—Reduce Heat and Electric Bills
Subtitle A—General programs
Sec. 201. Weatherization assistance.
Sec. 202. Energy Star programs.
Sec. 203. Renewable electricity production credit.
Sec. 204. Efficiency resource standard.
Sec. 205. Federal renewable portfolio standard.
Sec. 206. Net metering.
Subtitle B—Energy Efficiency Incentive
Sec. 211. Performance based energy improvements for non-business property.
Sec. 212. Extension and modification of credit for nonbusiness energy property.
Sec. 213. Extension and clarification of new energy efficient home credit.
Sec. 214. Extension and modification of deduction for energy efficient commercial buildings.
Sec. 215. Deduction for energy efficient low-rise buildings.
Sec. 216. Energy efficient property deduction.
Sec. 217. Credit for energy savings certifications.
Title III—Save Tax Payers Money
Sec. 301. Repeal of certain provisions of the Energy Policy Act of 2005.
Sec. 302. Repeal of certain tax provisions of the Energy Policy Act of 2005.
Title IV—State and Local Authority
Sec. 401. State consumer product energy efficiency standards.
Sec. 402. Appeals from consistency determinations under Coastal Zone Management Act of 1972.
Sec. 403. Siting of interstate electric transmission facilities.
Sec. 404. New natural gas storage facilities.
Sec. 405. Process coordination; hearings; rules of procedure.
Sec. 406. Repeal of preemption of State law relating to automobile fuel economy standards.
Title V—Renewable Energy Research and Development
Sec. 501. Advanced biofuel technologies.
Sec. 502. Advanced hydrogen storage technologies.
Sec. 503. Advanced solar photovoltaic technologies.
Sec. 504. Advanced wind energy technologies.
Sec. 505. Continuing programs.
Sec. 506. Plug-in hybrid electric vehicle technology program.
Sec. 507. Photovoltaic demonstration program.
Save oil
Help consumers buy more fuel efficient cars
Repeal of limit on number of cars eligible for credit
Section 30B of the Internal Revenue Code of 1986 (relating to alternative motor vehicle credit) is amended by striking subsection (f).
Emissions standards
Clause (iv) of section 30B(c)(3)(A) of such Code is amended to read as follows:
for 2004 and later model vehicles, has received a certificate that such vehicle 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,
.
Effective date
The amendments made by this section shall take effect as if included in the amendments made by section 1341(a) of the Energy Tax Incentives Act of 2005.
Energy efficient motor vehicles manufacturing credit
In General
Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to foreign tax credit, etc.) is amended by adding at the end the following new section:
Energy efficient motor vehicles manufacturing credit
Credit allowed
In the case of an eligible taxpayer, subject to a credit allocation under subsection (e) to such eligible taxpayer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year to an amount equal to the sum of—
the initial investment credit determined under subsection (b) for the taxable year,
the fuel economy achievement credit determined under subsection (c) for such taxable year, and
the eligible components R&D credit determined under subsection (d) for such taxable year.
Initial investment credit
For purposes of this section, the initial investment credit is equal to 20 percent of the qualified investment of an eligible taxpayer with respect to energy efficient motor vehicles during the taxable year beginning in 2008.
Fuel economy achievement credit
For purposes of this section—
In general
In the case of an eligible taxpayer who meets the requirements of paragraph (2) for a model year ending in a taxable year specified in the table contained in paragraph (3), the fuel economy achievement credit for such taxable year is equal to 30 percent of the sum of—
at the election of the eligible taxpayer, such qualified investment for any preceding taxable year beginning after 2007 if such taxable year has not previously been taken into account under this subsection by such taxpayer, plus
at the election of the eligible taxpayer, the qualified investment with respect to energy efficient motor vehicles of the eligible taxpayer for the taxable year beginning in 2017.
Demonstrated combined fleet economy improvements
The requirements of this paragraph are met for any model year ending in a taxable year if the eligible taxpayer can demonstrate to the satisfaction of the Secretary that the percentage by which the taxpayer's overall combined fuel economy standard for the taxpayer's vehicle fleet for such model year exceeds such standard for such taxpayer's 2007 model year as reported to the National Highway Traffic Safety Administration under section 32907 of title 49, United States Code, is not less than the percentage determined for such model year under paragraph (3).
Percentage increase
The percentage determined under this paragraph for any taxable year is equal to—
| Model year ending in | Percentage |
| taxable year | increase |
| 2010 | 5 |
| 2011 | 10 |
| 2012 | 15 |
| 2013 | 20 |
| 2014 | 27.5 |
| 2015 | 35 |
| 2016 | 42.5 |
| 2017 | 50. |
Eligible components R&D credit
For purposes of this section, the eligible R&D credit for any taxable year is equal to 30 percent of the research and development costs paid or incurred by an eligible taxpayer for such taxable year with respect to eligible components used or to be used in the manufacture of energy efficient motor vehicles.
Limitation
Initial investment credit and fuel economy achievement credit
Subject to paragraph (2), the aggregate amount of initial investment credits and fuel economy achievement credits allowed under subsection (a) for any taxable year beginning in a calendar year after 2007 shall be allocated by the Secretary among all eligible taxpayers—
based on each eligible taxpayer's percentage of the total qualified investment of all such taxpayers, and
such that such aggregate amount does not exceed—
$1,000,000,000, plus
any amount of credit unallocated during any preceding calendar year.
Eligible components R&D credit
Of the dollar amount available for allocation under paragraph (1) for any taxable year, 10 percent of such amount shall be allocated in the same manner by the Secretary among all eligible taxpayers with respect to the eligible components R&D credit.
Qualified investment
For purposes of this section—
In general
The qualified investment for any taxable year is equal to the incremental costs incurred during such taxable year—
to re-equip or expand any manufacturing facility of the eligible taxpayer to produce energy efficient motor vehicles or to produce eligible components, and
for engineering integration of such vehicles and components as described in subsection (h).
Attribution rules
In the event a facility of the eligible taxpayer produces both energy efficient motor vehicles and conventional motor vehicles, or eligible and non-eligible components, only the qualified investment attributable to production of energy efficient motor vehicles and the research and development costs attributable to eligible components shall be taken into account.
Energy efficient motor vehicles and eligible components
For purposes of this section—
Energy efficient motor vehicle
The term energy efficient motor vehicle means—
any new advanced lean burn technology motor vehicle (as defined in section 30B(c)(3) determined without regard to subparagraph (A)(iv)(II) thereof or the weight limitation under subparagraph (A)(iv)(I) thereof),
any new qualified hybrid motor vehicle (as defined in section 30B(d)(3)(A) determined without regard to subparagraph (A)(ii)(II) thereof, the weight limitation under subparagraph (A)(ii)(I) thereof, and subparagraph (A)(iv) thereof), or
any other new technology motor vehicle identified by the Secretary as offering a substantial increase in fuel economy.
Eligible components
The term eligible component means any component inherent to any energy efficient motor vehicle, including—
with respect to any gasoline-electric new qualified hybrid motor vehicle—
electric motor or generator,
power split device,
power control unit,
power controls,
integrated starter generator, or
battery,
with respect to any new advanced lean burn technology motor vehicle—
diesel engine,
turbocharger,
fuel injection system, or
after-treatment system, such as a particle filter or NOx absorber, and
with respect to any energy efficient motor vehicle, any other component approved by the Secretary.
Engineering integration costs
For purposes of subsection (f)(1)(B), costs for engineering integration are costs incurred prior to the market introduction of energy efficient vehicles for engineering tasks related to—
incorporating eligible components into the design of energy efficient motor vehicles, and
designing new tooling and equipment for production facilities which produce eligible components or energy efficient motor vehicles.
Eligible taxpayer
For purposes of this section, the term eligible taxpayer means, with respect to any taxable year, any taxpayer if more than 25 percent of the taxpayer's gross receipts for the taxable year is derived from the manufacture of motor vehicles or any component parts of such vehicles.
Limitation based on amount of tax
The credit allowed under subsection (a) for the taxable year shall not exceed the excess of—
the sum of—
the regular tax liability (as defined in section 26(b)) for such taxable year, plus
the tax imposed by section 55 for such taxable year, over
the sum of the credits allowable under subpart A and sections 27, 30, 30B, and 30C for the taxable year.
Reduction in basis
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 paragraph) result from such expenditure shall be reduced by the amount of the credit so allowed.
No double benefit
Coordination with other deductions and credits
The amount of any deduction or other credit allowable under this chapter for any cost taken into account in determining the amount of the credit under subsection (a) shall be reduced by the amount of such credit attributable to such cost.
Research and development costs
In general
Except as provided in subparagraph (B), any amount described in subsection (d) taken into account in determining the amount of the credit under subsection (a) for any taxable year shall not be taken into account for purposes of determining the credit under section 41 for such taxable year.
Costs taken into account in determining base period research expenses
Any amounts described in subsection (d) taken into account in determining the amount of the credit under subsection (a) for any taxable year which are qualified research expenses (within the meaning of section 41(b)) shall be taken into account in determining base period research expenses for purposes of applying section 41 to subsequent taxable years.
Business carryovers allowed
If the credit allowable under subsection (a) for a taxable year exceeds the limitation under subsection (j) for such taxable year, such excess (to the extent of the credit allowable with respect to property subject to the allowance for depreciation) shall be allowed as a credit carryback and carryforward under rules similar to the rules of section 39.
Definitions and special rules
For purposes of this section—
Definitions
Any term which is used in this section and in chapter 329 of title 49, United States Code, shall have the meaning given such term by such chapter.
Special rules
Rules similar to the rules of paragraphs (4) and (5) of section 179A(e) and paragraphs (1) and (2) of section 41(f) shall apply.
Election not To take credit
No credit shall be allowed under subsection (a) for any property if the taxpayer elects not to have this section apply to such property.
Regulations
The Secretary shall prescribe such regulations as necessary to carry out the provisions of this section.
Termination
This section shall not apply to any qualified investment made after December 31, 2017.
.
Conforming amendments
Section 1016(a) of
such Code is amended by striking and
at the end of paragraph
(36), by striking the period at the end of paragraph (37) and inserting
, and
, and by adding at the end the following new
paragraph:
to the extent provided in section 30D(k).
.
Section 6501(m) of
such Code is amended by inserting 30D(o),
after
30C(e)(5),
.
The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 30C the following new item:
Sec. 30D. Energy efficient motor vehicles manufacturing credit.
.
Effective date
The amendments made by this subsection shall apply to amounts incurred in taxable years beginning after December 31, 2007.
Transit-oriented development corridors
Definitions
In this section, the following definitions apply:
Definitions from title 49, united states code
The terms capital
project
, local governmental authority
, public
transportation
, and urbanized area
have the meanings
such terms have under section 5302(a) of title 49, United States Code.
State
The
term State
means a State of the United States, the District of
Columbia, Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and
the United States Virgin Islands.
Transit-oriented development corridor
The term
transit-oriented development corridor
means rights-of-way for
fixed-guideway public transportation facilities, including commercial
development that is connected with any such facility physically and
functionally.
In general
In consultation with State transportation departments and metropolitan planning organizations, the Secretary of Transportation shall designate, in urbanized areas, at least 20 transit-oriented development corridors by 2015 and 50 transit-oriented development corridors by 2025.
Transit grants
The Secretary of Transportation shall award grants to a State or local governmental authority to construct or improve transit facilities, bicycle transportation facilities, and pedestrian walkways in a transit-oriented development corridor, including capital projects.
Research and development
In order to support effective deployment of grants and incentives under this section, the Secretary of Transportation shall establish a transit-oriented development corridors research and development program for the conduct of research on best practices and performance criteria for transit-oriented development corridors.
Authorization of appropriations
There are authorized to be appropriated to carry out this section $500,000,000 for each of fiscal years 2008 through 2019, of which $2,000,000 per fiscal year is authorized for the research and development program under subsection (d).
Labor standards
The Secretary of Transportation shall not provide a grant under this section unless the Secretary receives reasonable assurances from a State that laborers and mechanics employed by contractors or subcontractors in the performance of construction or modernization on the a transit project will be paid wages not less than those prevailing on similar construction or modernization in the locality as determined by the Secretary of Labor under subchapter IV of chapter 31 of title 40, United States Code (known as the Davis-Bacon Act).
Automobile Fuel Economy Standards
Phased increases in fuel economy standards
Passenger automobiles
Minimum standards
Section 32902(b) of title 49, United States Code, is amended to read as follows:
Passenger automobiles
Except as otherwise provided under this section, the average fuel economy standard for passenger automobiles manufactured by a manufacturer in a model year—
after model year 1984 and before model year 2008 shall be 25 miles per gallon;
after model year 2007 and before model year 2011 shall be 28 miles per gallon;
after model year 2010 and before model year 2014 shall be 32 miles per gallon;
after model year 2013 and before model year 2017 shall be 36 miles per gallon; and
after model year 2016 shall be 40 miles per gallon.
.
Higher standards set by regulation
Section 32902(c) of title 49, United States Code, is amended—
by striking paragraph (2); and
in paragraph (1)—
by striking
(1) Subject to paragraph (2) of this subsection, the
and
inserting The
; and
by striking
amending the standard
and inserting increasing the
standard otherwise applicable
.
Increased inclusiveness of definitions of automobile and passenger automobile
Automobile
In general
Section 32901(a)(3) of title 49, United States Code, is amended—
by
striking 6,000 pounds
each place it appears and inserting
12,000 pounds
; and
in subparagraph (B)—
by striking
10,000 pounds
and inserting 14,000 pounds
;
and
in clause (ii),
by striking an average fuel economy standard
and all that
follows through conservation or
.
Special rule
Section 32908(a)(1) of such title is amended by striking
8,500 pounds
and inserting 14,000 pounds
.
Passenger automobile
Section 32901(a)(16) of title 49, United States Code, is amended to read as follows:
passenger
automobile
means an automobile having a gross vehicle weight of 10,000
pounds or less that is designed to be used principally for the transportation
of
persons;
.
Applicability
The amendments made by this section shall apply with respect to automobiles manufactured for model years beginning after the date of enactment of this Act.
Civil penalties
Increased penalty for violations of fuel economy standards
Section 32912(b) of title 49, United States Code, is amended—
by inserting
(1)
before Except as provided
;
by striking
$5
and inserting the dollar amount applicable under
paragraph (2)
;
by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; and
by adding at the end the following:
The dollar amount referred to in paragraph (1) is $10, as increased from time to time under subparagraph (B);
Effective on October 1 of each year, the dollar amount applicable under subparagraph (A) shall be increased by the percentage (rounded to the nearest 1/10 of 1 percent) by which the price index for July of such year exceeds the price index for July of the preceding year. The amount calculated under the preceding sentence shall be rounded to the nearest $0.10.
In this paragraph, the term
price index
means the Consumer Price Index for all-urban
consumers published monthly by the Department of
Labor.
.
Conforming amendment
Section 32912(c)(1) of title 49, United States Code, is amended—
by striking subparagraph (B); and
by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively.
Applicability
The amendments made by subsection (a) shall apply with respect to automobiles manufactured for model years beginning after the date of enactment of this Act.
Inclusion of sports utility vehicles in limitation on depreciation of certain luxury automobiles
In general
Subparagraph (A) of section 280F(d)(5) of the Internal Revenue Code of 1986 (defining passenger automobile) is amended by striking clause (ii) and all that follows and inserting the following new clause:
except as provided in subclause (II) or (III), which is rated at 6,000 pounds unloaded gross vehicle weight or less,
in the case of a truck or van, which is rated at 6,000 pounds gross vehicle weight or less, or
in the case of a sports utility vehicle not described in subclause (I), which is rated at more than 6,000 pounds but not more than 14,000 pounds gross vehicle weight.
.
Definition
Paragraph (5) of section 280F(d) of such Code is amended by adding at the end the following new subparagraph:
Sports utility vehicles
The term sports utility vehicle
does not
include any vehicle which—
does not have the primary load carrying device or container attached,
has a seating capacity of more than 12 individuals,
is designed for more than 9 individuals in seating rearward of the driver’s seat,
is equipped with an open cargo area, or a covered box not readily accessible from the passenger compartment, of at least 72.0 inches in interior length, or
has an integral enclosure, fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver’s seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.
.
Conforming amendment
Section 179(b) of such Code (relating to limitations) is amended by striking paragraph (6).
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Fuel efficiency standards for replacement tires
Standards for tires manufactured for interstate commerce
Section 30123 of title 49, United States Code, is amended—
in subsection (b),
by inserting after the first sentence the following: The grading system
shall include standards for rating the fuel efficiency of tires designed for
use on passenger cars and light trucks.
; and
by adding at the end of the following:
National tire fuel efficiency program
The Secretary shall develop and carry out a national tire efficiency program for tires designed for use on passenger cars and light trucks. The program shall include the following:
Policies and procedures for testing and labeling tires for fuel economy to enable tire buyers to make informed purchasing decisions about the fuel economy of tires.
Policies and procedures to promote the purchase of energy-efficient replacement tires, including purchase incentives, website listings on the Internet, printed fuel economy guide booklets, and mandatory requirements for tire retailers to provide tire buyers with fuel-efficiency information on tires.
Minimum fuel economy standards for tires, promulgated by the Secretary.
The minimum fuel economy standards for tires required under paragraph (1)(C) shall—
ensure that, in conjunction with the requirements of paragraph (2)(B), the average fuel economy of replacement tires is equal to or better than the average fuel economy of tires sold as original equipment;
secure the maximum technically feasible and cost-effective fuel savings;
not adversely affect tire safety;
not adversely affect the average tire life of replacement tires;
incorporate the results from—
laboratory testing; and
to the extent appropriate and available, on-road fleet testing programs conducted by manufacturers; and
not adversely affect efforts to manage scrap tires.
The policies, procedures, and standards developed under paragraph (1) shall apply to all tire types and models that are covered by the Uniform Tire Quality Grading Standards in section 575.104 of title 49, Code of Federal Regulations (or any successor regulation).
Not less than every 3 years, the Secretary shall review the minimum fuel economy standards in effect for tires under this subsection and revise the standards as necessary to ensure compliance with requirements under paragraph (2). The Secretary may not reduce the average fuel economy standards applicable to replacement tires.
Nothing in this section shall be construed to preempt any provisions of State law relating to higher fuel economy standards applicable to replacement tires designed for use on passenger cars and light trucks. Nothing in this chapter shall apply to—
a tire or group of tires with the same product identification number, plant, and year, for which the volume of tires produced or imported is less than 15,000 annually;
a deep tread, winter-type snow tire, space-saver tire, or temporary use spare tire;
a tire with a normal rim diameter of 12 inches or less;
a motorcycle tire; or
a tire manufactured specifically for use in an off-road motorized recreational vehicle.
In this subsection, the term
fuel economy
, with respect to tires, means the extent to which
the tire contribute to the fuel economy of the motor vehicles on which the tire
are
mounted.
.
Conforming amendment
Section 30103(b)(1)
of title 49, United States Code, is amended by striking When
and
inserting Except as provided in section 30123(d) of this title,
when
.
Implementation
The Secretary of Transportation shall ensure that the national tire fuel efficiency program required under section 30123(d) of title 49, United States Code (as added by subsection (a)(2)), is administered so as to apply the policies, procedures, and standards developed under paragraph (2) of such subsection beginning not later than March 31, 2008.
Heavy Duty Vehicle Fuel Economy Requirements
Fuel economy standards for heavy duty trucks
Part C of subtitle VI of title 49, United States Code, is amended by adding after chapter 329 the following new chapter:
Heavy Duty Vehicle Fuel Economy Requirements
General
Purpose and policy
The purpose of this chapter is to reduce petroleum consumption by heavy duty motor vehicles to the maximum extent feasible. Therefore it is necessary to prescribe fuel economy requirements for heavy duty motor vehicles.
Definition
In
this chapter, heavy duty motor vehicle
means a vehicle of
greater than 10,000 pounds gross vehicle weight that is driven or drawn by
mechanical power and manufactured primarily for use on public streets, roads,
and highways, but does not include a vehicle operated only on a rail
line.
Requirements
General requirements
The Secretary of Transportation shall prescribe heavy duty motor vehicle fuel economy requirements, which may be complete vehicle fuel economy standards or some combination of engine fuel economy standards and requirements for other vehicle components and accessories. Such requirements shall be established for as many categories of heavy duty motor vehicle as feasible and at a minimum shall be prescribed for tractor-trailers of 26,000 lbs. or more gross vehicle weight. The requirements shall be practicable, meet the need for heavy duty motor vehicle fuel consumption reduction, and be stated in objective terms.
Testing Protocols
The Administrator of the Environmental Protection Agency shall prescribe test protocols for determining compliance with standards and other requirements prescribed by the Secretary.
Considerations
When prescribing heavy duty motor vehicle fuel economy standards under paragraph (1), the Secretary shall—
consider relevant available heavy duty motor vehicle fuel consumption information;
consider whether a proposed standard is reasonable, practicable, and appropriate for the particular type of heavy duty motor vehicle for which it is prescribed; and
consider the extent to which the standard will carry out section 33001 of this title.
Cooperation
The Secretary may advise, assist, and cooperate with departments, agencies, and instrumentalities of the Federal government, States, and other public and private agencies in developing fuel economy standards for heavy duty motor vehicles.
Effective dates of standards
The Secretary shall specify the effective date and heavy duty model years of a fuel economy standard prescribed under this chapter in the order prescribing the standard.
5-year plan for testing protocols
The Secretary shall establish and periodically review and update on a continuing basis a 5-year plan for testing motor vehicle fuel economy requirements prescribed under this chapter. In developing the plan and establishing testing priorities, the Secretary shall consider factors the Secretary considers appropriate, consistent with section 33001 of this title and the Secretary’s other duties and powers under this chapter.
.
Clerical Amendment
The table of sections of subtitle VI of title 49, United States Code, is amended by inserting after the item relating to chapter 329, the following new item:
330. Heavy Duty Vehicle Fuel Economy Requirements...................................33001
.
Reduce Heat and Electric Bills
General programs
Weatherization assistance
Section 422 of the Energy Conservation and Production Act (42 U.S.C. 6872) is amended—
by striking
$500,000,000
and inserting $1,000,000,000
;
by striking
$600,000,000
and inserting $1,200,000,000
;
and
by striking
$700,000,000
and inserting $1,400,000,000
.
Energy Star programs
There are authorized to be appropriated for carrying out the Energy Star program under section 324A of the Energy Policy and Conservation Act—
to the Administrator of the Environmental Protection Agency $100,000,000 for each fiscal year; and
to the Secretary of Energy $12,000,000 for each fiscal year.
Renewable electricity production credit
Extension
Section 45(d) of the Internal Revenue Code of 1986 (relating to qualified facilities) is amended—
by striking
January 1, 2009
each place it appears in paragraphs (1), (2),
(3), (5), (6), and (7) and inserting January 1, 2014
, and
by striking
January 1, 2009 (January 1, 2006, in the case of a facility using solar
energy)
in paragraph (4) and inserting January 1, 2014 (January
1, 2012, in the case of a facility using solar energy)
.
Extension of credit for residential energy efficient property
Subsection (g)
of section 25D of such Code (relating to termination) is amended by striking
December 31, 2007
and inserting December 31,
2014
.
Efficiency resource standard
Amendment
Title VII of the Public Utility Regulatory Policies Act of 1978 is amended by adding the following new section at the end thereof:
Efficiency resource standard for retail electricity and natural gas suppliers
Resource standard
Each retail electricity and natural gas supplier shall undertake energy savings measures in each calendar year from 2007 through 2011 and thereafter that produce electricity demand savings and electricity and natural gas usage savings, as a percentage of the supplier’s base amount as shown in the following table. These targets represent savings realized from measures installed in the current year, plus cumulative savings realized from measures installed in all previous years. Each retail electricity and natural gas supplier subject to this subsection may use any electricity or natural gas savings measures available to it to achieve compliance with the performance standard established under this section, so long as the electricity and natural gas savings achieved by such measures can be calculated and verified pursuant to the rules promulgated under subsection (b).
| Year | Reductions in peak electricity demand | Reductions in electricity and natural gas usage |
| 2007 | 0.25% | 0.25% |
| 2008 | 0.75% | 0.75% |
| 2009 | 1.75% | 1.5% |
| 2010 | 2.75% | 2.25% |
| 2011 and thereafter | 3.75% | 3.0% |
Determination of compliance
The Secretary shall promulgate rules not later than one year after the enactment of this section regarding the means to be used to calculate and verify compliance with the performance standard established under subsection (a). Each retail electric and natural gas supplier subject to this section shall calculate its compliance with such standard in accordance with such rules. The rules shall include each of the following:
Procedures and
standards for defining and measuring electricity savings achieved or obtained
by electricity and natural gas suppliers (hereinafter in this section referred
to as electricity and natural gas savings
) from customer
facility end-uses that occur in a calendar year from all measures in place in
that year (including measures implemented in previous years that produce
electricity and natural gas savings in such calendar year).
Procedures and standards for verification of electricity and natural gas savings reported by the retail electricity and natural gas supplier.
Requirements for the contents and format of a bi-annual report from each retail electricity and natural gas supplier demonstrating its compliance with the requirements of subsection (a). The bi-annual report must include sufficient detail regarding the calculation of electricity and natural gas savings to enable the regulatory authority to verify and enforce compliance with the requirements of this section and the regulations under this section.
Credit and trading system
After consultation with the Administrator of the Environmental Protection Agency, the Secretary shall promulgate rules establishing a nationwide credit and credit trading system for electricity and natural gas savings. Under such rules the Secretary may certify as credits electricity or natural savings achieved by a retail electricity or natural gas supplier in a given year in excess of the quantity of electricity or natural gas savings required that calendar year for such supplier to meet the resource standard, as long as such savings comply with the rules established under subsection (b). The Secretary shall also certify as credits customer energy savings created by retail electric or natural gas suppliers or other entities, as long as such savings comply with the rules established under subsection (b). An electricity savings credit shall equal one kilowatt hour; a natural gas savings credit shall constitute one therm.
The Secretary shall not award credits to any retail electricity or natural gas supplier subject to State administration and enforcement under subsection (d) unless the Secretary has determined that such administration and enforcement are at least equivalent to administration and enforcement by the Secretary.
An electricity or natural gas savings credit is not a property right. Nothing in this or any other provision of law shall be construed to limit the authority of the United States to terminate or limit such credits.
A retail electric or natural gas supplier may sell such credit to any other entity, and other entities may sell such credits to retail electric or natural gas suppliers, in accordance with the accounting and verification rules established by the Secretary. Such credit may be used by a purchasing retail electricity or natural gas supplier for purposes of complying with the resource standards set forth in subsection (a).
In order to receive an electricity or natural gas savings credit, the recipient of an electricity savings credit shall pay a fee, calculated by the Secretary, in an amount that is equal to the administrative costs of issuing, recording, monitoring the sale or exchange of, and tracking the credit or does not exceed five percent of the dollar value of the credit, whichever is lower. The Secretary shall retain the fee and use it to pay these administrative costs.
A credit may be counted toward compliance with subsection (a) only once. A retail electricity or natural gas supplier may satisfy the requirements of subsection (a) through the accumulation of—
electricity or natural gas savings credits obtained by purchase or exchange under paragraph (7);
electricity or natural gas savings credits borrowed against future years under paragraph (8); or
any combination of credits under subparagraphs (A) and (B).
An electricity or natural gas savings credit may be sold or exchanged by the entity to whom issued or by any other entity that acquires the credit. An energy efficiency credit for any year that is not used to satisfy the minimum energy savings requirement of subsection (a) for that year may be carried forward for use within the next 4 years.
During the first year covered by the standards, a retail electricity or natural gas supplier that has reason to believe that it will not have sufficient electricity savings credits to comply with subsection (a) may—
submit a plan to the Secretary demonstrating that the retail electricity or natural gas supplier will earn sufficient credits within the next two calendar years which, when taken into account, will enable the retail electricity or natural gas supplier to meet the requirements of subsection (a) for the calendar year involved; and
upon the approval of the plan by the Secretary, apply credits that the plan demonstrates will be earned within the next two calendar years to meet the requirements of subsection (a) for the calendar year involved.
Any retail electricity or natural gas supplier may elect to comply with the requirements of this section in any calendar year by paying a fee of 3 cents per kilowatt hour, and 30 cents per therm, for any portion of the electricity or natural gas savings it would be obligated to achieve in that year by not later than March 31 of the following year. Funds produced from such fees shall be deposited in an escrow account established by the Secretary, and shall be distributed to the States for their use in creating electricity or natural gas savings at customer facilities.
Enforcement of compliance
If the State regulatory authority with ratemaking jurisdiction over a State-regulated retail electricity or natural gas supplier notifies the Secretary that it will enforce compliance by such supplier with the performance standards under subsection (a) of this section, such State regulatory authority shall have the authority to administer and enforce such standards for such supplier under State law. If the State regulatory authority does not so notify the Secretary, the Secretary shall exercise such authority until receiving such notice from the State regulatory authority.
Not later than July 1 of the calendar years 2008, 2010, 2012, 2014, and 2016, each retail electricity and natural gas supplier shall submit the compliance report required under subsection (b) to—
the appropriate State regulatory authority, if such authority has notified the Secretary under subsection (d), or
the Secretary to determine and enforce compliance with the standards.
In the case of any retail electricity or natural gas supplier for which the Secretary is enforcing compliance with the standards under this section, if such supplier fails to comply with such standards for two consecutive calendar years, the Secretary shall determine the number of kilowatt hours of electricity savings, or therms of natural gas savings, by which the supplier has fallen short of the standards, and, by order, require such supplier, after notice and opportunity for hearing, to deposit in an escrow account to be designated by the Secretary an amount equal to 3.5 cents per kilowatt hour for each such kilowatt hour, and 35 cents per therm for each such therm. The holder of such escrow account shall annually distribute the total amount of such account to the States to be used by the States for the purpose of achieving customer electricity and natural gas savings. Any retail electricity or natural gas supplier required to make such a payment may, within 60 calendar days after the issuance of such order, bring an action in the United States Court of Appeals for the District of Columbia for judicial review of such order. Such court shall have jurisdiction to enter a judgment affirming, modifying, or setting aside such order or remanding such order in whole or in part to the Secretary.
Information collection
The Secretary may collect the information necessary to verify and audit—
the annual electric energy sales, natural gas sales, electricity savings, and natural gas savings of any entity applying for electricity or natural gas savings credits under this section,
the validity of electricity or natural gas savings credits submitted by a retail electricity or natural gas supplier to the Secretary, and
the quantity of electricity and natural gas sales of all retail electricity and natural gas suppliers.
State law
Nothing in this section shall supersede or otherwise affect any State or local law requiring or otherwise relating to reductions in total annual electricity or natural gas energy consumption by or peak power consumption by electric consumers to the extent that such State or local law requires more stringent reductions than those required under this section. Any retail electricity or natural gas supplier that achieves reductions referred to in this section in accordance with State requirements shall be entitled to full credit under this section for such reductions to the extent that such reductions meet the requirements of this section and the regulations under this section (including verification and monitoring requirements).
Definitions
For purposes of this section:
The term
retail electricity or natural supplier
means a person that sells
electric energy or natural gas to consumers and sold not less than 1,000,000
megawatt-hours of electric energy or 20,000,000 therms of natural gas to
consumers for purposes other than resale during the preceding calendar year;
except that such term does not include the United States, a State or any
political subdivision of a State, or any agency, authority, or instrumentality
of any one or more of the foregoing, or a rural electric cooperative.
The term
retail electricity or natural gas supplier’s base amount
means
the total amount of electric energy or natural gas sold by the retail
electricity or natural gas supplier to customers during the most recent
calendar year for which information is available.
The term
electricity savings
means reductions in end-use electricity
consumption in customer facilities relative to consumption at those same
facilities in a base year as defined in rules issued by the Secretary, or in
the case of new facilities, relative to reference facilities defined in rules
issued by the Secretary, or distributed generation efficiency measures,
including fuel cells and combined heat and power (CHP) technologies, that
provide electricity only for onsite customer use.
The term
natural gas savings
means reductions in end-use natural gas
consumption in customer facilities relative to consumption at those same
facilities in a base year as defined in rules issued by the Secretary, or in
the case of new facilities, relative to reference facilities defined in rules
issued by the
Secretary.
.
Table of contents
The table of contents for title VII of the Public Utility Regulatory Policies Act of 1978 is amended by adding the following new item at the end thereof:
Sec. 610. Efficiency resource standard for retail electricity and natural gas suppliers.
.
Federal renewable portfolio standard
In general
Title VI of the Public Utility Regulatory Policies Act of 1978 is amended by adding at the end the following:
Federal renewable portfolio standard
Minimum renewable generation requirement
For each calendar year beginning in calendar year 2009, each retail electric supplier shall submit to the Secretary, not later than April 1 of the following calendar year, renewable energy credits in an amount equal to the required annual percentage specified in subsection (b).
Required annual percentage
For calendar years after 2008, the required annual percentage of the retail electric supplier’s base amount that shall be generated from renewable energy resources, or otherwise credited towards such percentage requirement pursuant to subsection (c), shall be the percentage specified in the following table:
| Required annual | |
| Calendar Years | percentage |
| 2009 through 2010 | 1 |
| 2010 through 2011 | 2 |
| 2011 through 2012 | 4 |
| 2012 through 2013 | 6 |
| 2013 through 2015 | 8 |
| 2015 through 2016 | 10 |
| 2016 through 2017 | 12 |
| 2017 through 2018 | 14 |
| 2018 through 2019 | 16 |
| 2019 through 2020 | 18 |
| 2020 and thereafter | 20. |
Submission of credits
A retail electric supplier may satisfy the requirements of subsection (a) through the submission of renewable energy credits—
issued to the retail electric supplier under subsection (d);
obtained by purchase or exchange under subsection (e); or
borrowed under subsection (f).
A renewable energy credit may be counted toward compliance with subsection (a) only once.
Issuance of credits
The Secretary shall establish by rule, not later than 1 year after the date of enactment of this section, a program to issue and monitor the sale or exchange of, and track, renewable energy credits.
Under the program established by the Secretary, an entity that generates electric energy through the use of a renewable energy resource may apply to the Secretary for the issuance of renewable energy credits. The application shall indicate—
the type of renewable energy resource used to produce the electricity;
the location where the electric energy was produced; and
any other information the Secretary determines appropriate.
Except as provided in subparagraphs (B), (C), and (D), the Secretary shall issue to each entity that generates electric energy one renewable energy credit for each kilowatt hour of electric energy the entity generates from the date of enactment of this section and in each subsequent calendar year through the use of a renewable energy resource at an eligible facility.
For incremental hydropower the renewable energy credits shall be calculated based on the expected increase in average annual generation resulting from the efficiency improvements or capacity additions. The number of credits shall be calculated using the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility and certified by the Secretary or the Federal Energy Regulatory Commission. The calculation of the renewable energy credits for incremental hydropower shall not be based on any operational changes at the hydroelectric facility not directly associated with the efficiency improvements or capacity additions.
The Secretary shall issue two renewable energy credits for each kilowatt hour of electric energy generated and supplied to the grid in that calendar year through the use of a renewable energy resource at an eligible facility located on Indian land. For purposes of this paragraph, renewable energy generated by biomass cofired with other fuels is eligible for two credits only if the biomass was grown on such land.
For electric energy resources produced from a generation offset, the Secretary shall issue two renewable energy credits for each kilowatt hour generated.
To be eligible for a renewable energy credit, the unit of electric energy generated through the use of a renewable energy resource may be sold or may be used by the generator. If both a renewable energy resource and a non-renewable energy resource are used to generate the electric energy, the Secretary shall issue renewable energy credits based on the proportion of the renewable energy resources used. The Secretary shall identify renewable energy credits by type and date of generation.
When a generator sells electric energy generated through the use of a renewable energy resource to a retail electric supplier under a contract subject to section 210 of this Act, the retail electric supplier is treated as the generator of the electric energy for the purposes of this section or the duration of the contract.
The Secretary shall issue renewable energy credits for existing facility offsets to be applied against a retail electric supplier’s required annual percentage. Such credits are not tradeable and may be used only in the calendar year generation actually occurs.
Credit trading
A renewable energy credit, may be sold or exchanged by the entity to whom issued or by any other entity who acquires the renewable energy credit. A renewable energy credit for any year that is not used to satisfy the minimum renewable generation requirement of subsection (a) for that year may be carried forward for use within the next 4 years.
Credit borrowing
At any time before the end of calendar year 2009, a retail electric supplier that has reason to believe it will not have sufficient renewable energy credits to comply with subsection (a) may—
submit a plan to the Secretary demonstrating that the retail electric supplier will earn sufficient credits within the next 3 calendar years which, when taken into account, will enable the retail electric supplier to meet the requirements of subsection (a) for calendar year 2009 and the subsequent calendar years involved; and
upon the approval of the plan by the Secretary, apply renewable energy credits that the plan demonstrates will be earned within the next 3 calendar years to meet the requirements of subsection (a) for each calendar year involved.
Credit cost cap
The Secretary shall offer renewable energy credits for sale at the lesser of 3 cents per kilowatt-hour or 200 percent of the average market value of renewable credits for the applicable compliance period. On January 1 of each year following calendar year 2008, the Secretary shall adjust for inflation the price charged per credit for such calendar year, based on the Gross Domestic Product Implicit Price Deflator.
Enforcement
The Secretary may bring an action in the appropriate United States district court to impose a civil penalty on a retail electric supplier that does not comply with subsection (a), unless the retail electric supplier was unable to comply with subsection (a) for reasons outside of the supplier's reasonable control (including weather-related damage, mechanical failure, lack of transmission capacity or availability, strikes, lockouts, actions of a governmental authority). A retail electric supplier who does not submit the required number of renewable energy credits under subsection (a) shall be subject to a civil penalty of not more than the greater of 3 cents or 200 percent of the average market value of credits for the compliance period for each renewable energy credit not submitted..
Information collection
The Secretary may collect the information necessary to verify and audit—
the annual electric energy generation and renewable energy generation of any entity applying for renewable energy credits under this section;
the validity of renewable energy credits submitted by a retail electric supplier to the Secretary; and
the quantity of electricity sales of all retail electric suppliers.
Environmental savings clause
Incremental hydropower shall be subject to all applicable environmental laws and licensing and regulatory requirements.
Existing programs
This section does not preclude a State from imposing additional renewable energy requirements in that State, including specifying eligible technologies under such State requirements.
Definitions
For purposes of this section:
Biomass
The term biomass means any organic material that is available on a renewable or recurring basis, including dedicated energy crops, trees grown for energy production, wood waste and wood residues, plants (including aquatic plants, grasses, and agricultural crops), residues, fibers, animal wastes and other organic waste materials (but not including unsegregated municipal solid waste (garbage)), and fats and oils, except that with respect to material removed from National Forest System lands the term includes only organic material from—
thinnings from trees that are less than 12 inches in diameter;
slash;
brush; and
mill residues.
Eligible facility
The term eligible facility means—
a facility for the generation of electric energy from a renewable energy resource that is placed in service on or after the date of enactment of this section; or
a repowering or cofiring increment that is placed in service on or after the date of enactment of this section at a facility for the generation of electric energy from a renewable energy resource that was placed in service before that date.
Eligible renewable energy resource
The term renewable energy resource means solar, wind, ocean, or geothermal energy, biomass (excluding solid waste and paper that is commonly recycled), landfill gas, a generation offset, or incremental hydropower.
Generation offset
The term generation offset means reduced electricity usage metered at a site where a customer consumes energy from a renewable energy technology.
Existing facility offset
The term existing facility offset means renewable energy generated from an existing facility, not classified as an eligible facility, that is owned or under contract, directly or indirectly, to a retail electric supplier on the date of enactment of this section.
Incremental hydropower
The term incremental hydropower means additional generation that is achieved from increased efficiency or additions of capacity on or after the date of enactment of this section or the effective date of the applicable State renewable portfolio standard program, at a hydroelectric facility that was placed in service before that date.
Indian land
The term Indian land means—
any land within the limits of any Indian reservation, pueblo, or rancheria;
any land not within the limits of any Indian reservation, pueblo, or rancheria title to which was on the date of enactment of this paragraph either held by the United States for the benefit of any Indian tribe or individual or held by any Indian tribe or individual subject to restriction by the United States against alienation;
any dependent Indian community; and
any land conveyed to any Alaska Native corporation under the Alaska Native Claims Settlement Act.
Indian tribe
The term Indian tribe means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.
Renewable energy
The term renewable energy means electric energy generated by a renewable energy resource.
Renewable energy resource
The term renewable energy resource means solar, wind, ocean, geothermal energy, biomass (not including municipal solid waste), landfill gas, a generation offset, or incremental hydropower.
Repowering or cofiring increment
The term repowering or cofiring increment means—
the additional generation from a modification that is placed in service on or after the date of enactment of this section to expand electricity production at a facility used to generate electric energy from a renewable energy resource or to cofire biomass that was placed in service before the date of enactment of this section, or
the additional generation above the average generation in the 3 years preceding the date of enactment of this section to expand electricity production at a facility used to generate electric energy from a renewable energy resource or to cofire biomass that was placed in service before the date of enactment of this section.
Retail electric supplier
The term retail electric supplier means a person that sells electric energy to electric consumers and sold not less than 1,000,000 megawatt-hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year; except that such term does not include the United States, a State or any political subdivision of a State, or any agency, authority, or instrumentality of any one or more of the foregoing.
Retail electric supplier’s base amount
The term retail electric supplier’s base amount means the total amount of electric energy sold by the retail electric supplier to electric customers during the most recent calendar year for which information is available, excluding electric energy generated by—
an eligible renewable energy resource; or
a hydroelectric facility.
Sunset
This section expires December 31, 2030.
.
Table of contents
The table of contents for such title is amended by adding the following new item at the end:
.
Net metering
Adoption of standard
Section 111(d)(11) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended to read as follows:
Net metering
Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves.
For purposes of implementing this paragraph, any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this paragraph.
Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority may consider and make a determination concerning whether it is appropriate in the public interest to not implement the standard set out in subparagraph (A) not later than 1 year after the date of enactment of this paragraph.
Nothing in this section shall preclude a State from establishing additional incentives or to encourage on-site generating facilities and net metering in addition to that required under this section.
The Department shall report within 11 months of enactment and annually thereafter on the public benefit provided by adoption of net metering and interconnection standards, and the status of state adoption of such.
.
Special rules for net metering
Section 115 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the end the following:
Net metering
In undertaking the consideration and making the determination under section 111 with respect to the standard concerning net metering established by section 111(d)(11), the term net metering service shall mean a service provided in accordance with the following standards:
An electric utility—
shall charge the owner or operator of an on-site generating facility rates and charges that are identical to those that would be charged other electric consumers of the electric utility in the same rate class; and
shall not charge the owner or operator of an on-site generating facility any additional standby, capacity, interconnection, or other rate or charge.
An electric utility that sells electric energy to the owner or operator of an on-site generating facility shall measure the quantity of electric energy produced by the on-site facility and the quantity of electric energy consumed by the owner or operator of an on-site generating facility during a billing period with a single bi-directional meter or otherwise in accordance with reasonable metering practices.
If the quantity of electric energy sold by the electric utility to an on-site generating facility exceeds the quantity of electric energy supplied by the on-site generating facility to the electric utility during the billing period, the electric utility may bill the owner or operator for the net quantity of electric energy sold, in accordance with reasonable metering practices.
If the quantity of electric energy supplied by the on-site generating facility to the electric utility exceeds the quantity of electric energy sold by the electric utility to the on-site generating facility during the billing period—
the electric utility may bill the owner or operator of the on-site generating facility for the appropriate charges for the billing period in accordance with paragraph; and
the owner or operator of the on-site generating facility shall be credited for the excess kilowatt-hours generated during the billing period, with the kilowatt-hour credit appearing on the bill for the following billing period.
An eligible on-site generating facility and net metering system used by an electric consumer shall meet all applicable safety, performance, reliability, and interconnection standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories.
The Commission, after consultation with State regulatory authorities and unregulated electric utilities and after notice and opportunity for comment, may adopt, by rule, additional control and testing and interconnection requirements for on-site generating facilities and net metering systems that the Commission determines are necessary to protect public safety and system reliability.
For purposes of this subsection:
The term
eligible on-site generating facility
means a facility on the
site of a residential electric consumer with a maximum generating capacity of
10 kilowatts or less that is fueled by solar energy, wind energy, or fuel
cells; or a facility on the site of a commercial electric consumer with a
maximum generating capacity of 500 1000 kilowatts or less that is fueled solely
by a renewable energy resource, landfill gas, or a high efficiency
system.
The term
renewable energy resource
means solar, wind, biomass,
micro-freeflow hydro, or geothermal energy.
The term
high efficiency system
means fuel cells or combined heat and
power.
The term
net metering service
means service to an electric consumer under
which electric energy generated by that electric consumer from an eligible
on-site generating facility and delivered to the local distribution facilities
may be used to offset electric energy provided by the electric utility to the
electric consumer during the applicable billing
period.
.
Energy Efficiency Incentive
Performance based energy improvements for non-business property
In general
Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:
Performance based energy improvements
In general
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 amount of qualified energy efficiency expenditures paid or incurred by the taxpayer during the taxable year.
Limitations
In general
The amount allowed as a credit under subsection (a) shall not exceed the product of—
the qualified energy savings achieved, and
$4,000.
Minimum amount of qualified energy savings
No credit shall be allowed under subsection (a) with respect to any principal residence which achieves a qualified energy savings of less than 20 percent.
Limitation based on amount of tax
In the case of taxable years to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of—
the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
the sum of the credit allowable under this subpart (other than this section and sections 23, 24, and 25B) and section 27 for the taxable year.
Qualified energy efficiency expenditures
For purposes of this section:
In general
The term qualified energy efficiency expenditures means any amount paid or incurred which is related to producing qualified energy savings in a principal residence of the taxpayer which is located in the United States.
No double benefit for certain expenditures
The term qualified energy efficiency expenditures shall not include any expenditure for which a deduction or credit is otherwise allowed to the taxpayer under this chapter.
Principal residence
The term principal residence has the same meaning as when used in section 121, except that—
no ownership requirement shall be imposed, and
the period for which a building is treated as used as a principal residence shall also include the 60-day period ending on the 1st day on which it would (but for this subparagraph) first be treated as used as a principal residence.
Qualified energy savings
For purposes of this section—
In general
The term qualified energy savings means, with respect to any principal residence, the amount (measured as a percentage) by which—
the annual energy use with respect to the principal residence after qualified energy efficiency expenditures are made, as certified under paragraph (2), is less than
the annual energy use with respect to the principal residence before the qualified energy efficiency expenditures were made, as certified under paragraph (2).
Certification
In general
The Secretary, in consultation with the Secretary of Energy, shall prescribe the procedures and methods for the making of certifications under this paragraph based on the Residential Energy Services Network (RESNET) Technical Guidelines in effect on the date of the enactment of this section.
Qualified individuals
Any certification made under this paragraph may only be made by an individual who is recognized by an organization certified by the Secretary for such purposes.
Special rules
For purposes of this section rules similar to the rules under paragraphs (4), (5), (6), (7), (8), and (9) of section 25D(e) and section 25C(e)(2) shall apply.
Basis adjustments
For purposes of this subtitle, if a credit is allowed under this section with respect to 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.
Termination
This section shall not apply with respect to any property placed in service after December 31, 2011.
.
Interim guidance on certification
In general
Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of Energy, shall issue interim guidance on—
the procedures and methods for making certifications under sections 25E(d)(2)(A) and 179F(d)(2)(A) of the Internal Revenue Code of 1986, as added by subsection (a) and section 203, respectively;
the recognition of qualified individuals under sections 25E(d)(2)(B) and 179F(d)(2)(B) of such Code for the purpose of making such certifications; and
how participation in State energy efficiency programs can be used in the procedures and methods described in subparagraph (A).
Consultation with stakeholders
In general
The Secretary of the Treasury, in issuing guidance pursuant to paragraph (1), shall consider comments from energy efficiency experts and other interested parties.
Other considerations
In the case of guidance issued pursuant to paragraph (1)(B), the Secretary of the Treasury shall also consider—
the Residential Energy Services Network Technical Guidelines and other pertinent guidelines for evaluating energy savings;
energy modeling software, including software accredited through the Residential Energy Services Network; and
quality assurance procedures of the Building Performance Institute, Home Performance through Energy Star, and the Residential Energy Services Network.
Alternative certification methods
In general
The Secretary of the Treasury shall establish a procedure for individuals and businesses to petition for the approval of alternative methods of certification under sections 25E(d)(2)(A) and 179F(d)(2)(A) of the Internal Revenue Code of 1986, as added by subsection (a) and section 203, respectively.
Determination
The Secretary of the Treasury shall make a determination on the approval or disapproval of such alternative methods of certification not later than 90 days after receiving a petition under paragraph (1).
Conforming amendments
Section 1016(a) is
amended by striking and
at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting ,
and
, and by adding at the end the following new paragraph:
to the extent provided in section 25E(f).
.
The table of sections for subpart A of part IV of subchapter A chapter 1 is amended by inserting after the item relating to section 25D the following new item:
.
Effective date
The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.
Extension and modification of credit for nonbusiness energy property
Extension
Subsection
(g) of section 25C (relating to termination) is amended by striking
December 31, 2007
and inserting December 31,
2011
.
Labor costs for qualified energy efficiency improvements
Section 25C(c)(1) is amended by adding at the end the following new flush sentence:
The amount taken into account under subsection (a)(1) with respect to qualified energy efficiency improvements shall include expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of any component described in this paragraph.
.
Modifications for residential energy efficiency property expenditures
Increased limitation for oil furnaces and natural gas, propane, and oil hot water boilers
In general
Subparagraphs (B) and (C) of section 25C(b)(3) are amended to read as follows:
$150 for any qualified natural gas furnace or qualified propane furnace, and
$300 for—
any item of energy-efficient building property, and
any qualified oil furnace, qualified natural gas hot water boiler, qualified propane hot water boiler, or qualified oil hot water boiler.
.
Conforming amendment
Clause (ii) of section 25C(d)(2)(A) is amended to read as follows:
any qualified natural gas furnace, qualified propane furnace, qualified oil furnace, qualified natural gas hot water boiler, qualified propane hot water boiler, or qualified oil hot water boiler, or
.
Modifications of standards for energy-efficient building property
Electric heat pumps
Subparagraph (B) of section 25C(d)(3) is amended to read as follows:
an electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2008.
.
Central air conditioners
Section 25C(d)(3)(D) is amended by striking
2006
and inserting 2008
.
Water Heaters
Subparagraph (E) of section 25C(d) is amended to read as follows:
a natural gas, propane, or oil water heater which has either an energy factor of at least 0.80 or a thermal efficiency of at least 90 percent.
.
Oil furnaces and hot water boilers
Paragraph (4) of section 25C(d) is amended to read as follows:
Qualified natural gas, propane, and oil furnaces and hot water boilers
Qualified natural gas furnace
The term qualified natural gas furnace means any natural gas furnace which achieves an annual fuel utilization efficiency rate of not less than 95.
Qualified natural gas hot water boiler
The term qualified natural gas hot water boiler means any natural gas hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.
Qualified propane furnace
The term qualified propane furnace means any propane furnace which achieves an annual fuel utilization efficiency rate of not less than 95.
Qualified propane hot water boiler
The term qualified propane hot water boiler means any propane hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.
Qualified oil furnaces
The term qualified oil furnace means any oil furnace which achieves an annual fuel utilization efficiency rate of not less than 90.
Qualified oil hot water boiler
The term qualified oil hot water boiler means any oil hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.
.
Elimination of lifetime limitation
Paragraph (1) of section 25C(b) is amended by
inserting by reason of subsection (a)(1)
after under this
section
.
Modification of qualified energy efficiency improvements
In general
Paragraph (1) of section 25C(c) is amended by inserting
, or an asphalt roof with appropriate cooling granules,
before
which meet the Energy Star program requirements
.
Building envelope component
Subparagraph (D) of section 25C(c)(2) is amended—
by inserting
or asphalt roof
after metal roof
, and
by inserting
or cooling granules
after pigmented
coatings
.
Natural gas fired heat pumps
Section 25C(d)(3), as amended by this section,
is amended by striking and
at the end of subparagraph (D), by
striking the period at the end of subparagraph (E) and inserting ,
and
, and by adding at the end the following new subparagraph:
a natural gas fired heat pump with a heating coefficient of performance (COP) of at least 1.1.
.
Elimination of credit for qualified energy efficiency improvements in 2010
In general
Subsection (a) of section 25C is amended to read as follows:
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 amount of residential energy property expenditures paid or incurred by the taxpayer during the taxable year.
.
Conforming amendments
Section 25C(b), as amended by subsection (b), is amended by striking paragraphs (1) and (2) and by redesignating paragraph (3) as paragraph (1).
Section 25C(b)(1),
as redesignated by subparagraph (A), is amended by striking by reason of
subsection (a)(2)
.
Section 25C is amended by striking subsection (c).
Clarification of eligibility of standards for qualified energy property
Section
25C(d)(2)(C) is amended by striking and
at the end of clause
(i), by striking the period at the end of clause (ii) and inserting ,
and
, and by adding at the end the following new clause:
shall allow for the testing of products regardless of the size or capacity of the product.
.
Effective dates
In general
Except as provided in paragraphs (2) and (3), the amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Standards for electric heat pumps and central air conditioners
The amendments made by subparagraphs (A) and (B) subsection (c)(2) shall apply to property placed in service after December 31, 2007.
Elimination of credit for qualified energy efficiency improvements
The amendments made by subsection (f) shall apply to property placed in service after December 31, 2009.
Extension and clarification of new energy efficient home credit
Extension
Subsection (g) of section 45L (relating to
termination), as amended by section 205 of division A of the Tax Relief and
Health Care Act of 2006, is amended by striking December 31,
2008
and inserting December 31, 2011
.
Clarification
In general
Paragraph (1) of section 45L(a) is amended by striking
and
at the end of subparagraph (A) and by striking subparagraph
(B) and inserting the following:
acquired by a person from such eligible contractor, and
used by any person as a residence during the taxable year.
.
Effective date
The amendments made by this subsection shall take effect as if included in section 1332 of the Energy Policy Act of 2005.
Extension and modification of deduction for energy efficient commercial buildings
Extension
Subsection (h) of section 179D (relating to termination) is amended to read as follows:
Termination
This section shall not apply with respect to property—
which is certified under subsection (d)(6) after December 31, 2012, or
which is placed in service after December 31, 2014.
.
Increase in maximum amount of deduction
In general
Subparagraph (A) of section 179D(b)(1) is amended by
striking $1.80
and inserting $2.25
.
Partial allowance
Paragraph (1) of section 179D(d) is amended—
by striking
$.60
and inserting $0.75
, and
by striking
$1.80
and inserting $2.25
.
Modifications to certain special rules
Methods of calculating energy savings
In general
Paragraph (2) of section 179D(d) is amended—
by inserting
in detail
after based
,
by inserting
, except that the Secretary shall use Standard 90.1–2001 in lieu of the
California title 24 energy standards and the tables contained therein and the
Secretary may add requirements from Standard 90.1–2001 (or any successor
standard)
before the period at the end, and
by adding at the
end the following new sentence: The calculation methods contained in
such regulations shall also provide for the calculation of appropriate energy
savings for design methods and technologies not otherwise credited in such
manual or standard, including energy savings associated with natural
ventilation, evaporative cooling, automatic lighting controls (such as
occupancy sensors, photocells, and time clocks), day lighting, designs
utilizing semi-conditioned spaces which maintain adequate comfort conditions
without air conditioning or without heating, improved fan system efficiency
(including reductions in static pressure), advanced unloading mechanisms for
mechanical cooling (such as multiple or variable speed compressors), on-site
generation of electricity (including combined heat and power systems, fuel
cells, and renewable energy generation such as solar energy), and wiring with
lower energy losses than wiring satisfying Standard 90.1–2001 requirements for
building power distribution systems.
.
Requirements for computer software used in calculating energy and power consumption costs
Paragraph (3)(B) of section 179D(d) 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:
which automatically—
generates the features, energy use, and energy and power consumption costs of a reference building which meets Standard 90.1–2001,
generates the features, energy use, and energy and power consumption costs of a compliant building or system which reduces the annual energy and power costs by 50 percent compared to Standard 90.1–2001, and
compares such features, energy use, and consumption costs to the features, energy use, and consumption costs of the building or system with respect to which the calculation is being made.
.
Targets for partial allowance of credit
Paragraph (1)(B) of section 179D(d) is amended—
by striking
The Secretary
and inserting the following:
In general
The Secretary
, and
by adding at the end the following:
Additional requirements
For purposes of clause (i)—
the Secretary shall determine prescriptive criteria that can be modeled explicitly for reference buildings which meet the requirements of subsection (c)(1)(D) for different building types and regions,
a system may be certified as meeting the target under subparagraph (A)(ii) if the appropriate reference building either meets the requirements of subsection (c)(1)(D) with such system rather than the comparable reference system (using the calculation under paragraph (2)) or meets the relevant prescriptive criteria under subclause (I), and
the lighting system target shall be based on lighting power density, except that it shall allow lighting controls credits that trade off for lighting power density savings based on Section 3.2.2 of the 2005 California Nonresidential Alternative Calculation Method Approval Manual.
Publication
The Secretary shall publish in the Federal Register the bases for the target levels established in the regulations under clause (i).
.
Alternative standards
Section 179D(d) is amended by adding at the end the following new paragraph:
Alternative standards pending final regulations
Until such time as the Secretary issues final regulations under paragraph (1)(B)—
in the case of property which is part of a building envelope, the building envelope system target under paragraph (1)(A)(ii) shall be a 7 percent reduction in total annual energy and power costs (determined in the same manner as under subsection (c)(1)(D)), and
in the case of property which is part of the heating, cooling, ventilation, and hot water systems, the heating, cooling, ventilation, and hot water system shall be treated as meeting the target under paragraph (1)(A)(ii) if it would meet the requirement in subsection (c)(1)(D) if combined with a building envelope system and lighting system which met their respective targets under paragraph(1)(A)(ii) (including interim targets in effect under subsections (f) and subparagraph (A)).
.
Modifications to lighting standards
Standards to be alternate standards
Subsection (f) of section 179D is amended by—
striking
Interim
in the heading and inserting
Alternative
, and
inserting ,
or, if the taxpayer elects, in lieu of the target set forth in such final
regulations
after lighting system
at the end of the
matter preceding paragraph (1).
Qualified individuals
Section 179D(d)(6)(C) is amended by adding at the end
the following: For purposes of certification of whether the alternative
target for lighting systems under subsection (f) is met, individuals qualified
to determine compliance shall include individuals who are certified as Lighting
Certified (LC) by the National Council on Qualifications for the Lighting
Professions, Certified Energy Managers (CEM) by the Association of Energy
Engineers, and LEED Accredited Professionals (AP) by the U.S. Green Buildings
Council.
.
Requirement for bilevel switching
Section 179D(f)(2) is amended by adding at the end the following new subparagraph:
Application of subsection to bilevel switching
In general
Notwithstanding paragraph (2)(C)(i), this subsection shall apply to a system which does not include provisions for bilevel switching if the reduction in lighting power density is at least 37.5 percent of the minimum requirements in Table 9.3.1.1 or Table 9.3.1.2 (not including additional interior lighting allowances) of Standard 90.1–2001.
Reduction in deduction
In the case of a system to which this subsection applies by reason of subparagraph (A), paragraph (2) shall be applied—
by substituting 50 percent
for 40 percent
in subparagraph (A) thereof, and
in subparagraph (B)(ii) thereof—
by substituting 37.5 percentage
points
for 25 percentage points
, and
by substituting 12.5
for
15
.
.
Public property
Paragraph (4) of section 179(d) is amended by striking
the Secretary shall promulgate a regulation to allow the allocation of
the deduction
and inserting the deduction under this section
shall be allowed
.
Effective date
The amendments made by this section shall apply to property placed in service in taxable years beginning after the date of the enactment of this Act.
Deduction for energy efficient low-rise buildings
In general
Part VI of subchapter B of chapter 1, as amended by section 404 of division A of the Tax Relief and Health Care Act of 2006, is amended by inserting after section 179E the following new section:
Energy efficient low-rise buildings deduction
In general
There shall be allowed as a deduction an amount equal to the amount of qualified energy efficiency expenditures paid or incurred by the taxpayer during the taxable year.
Limitations
In general
The amount allowed as a credit under subsection (a) with respect to any dwelling unit shall not exceed the product of—
the qualified energy savings achieved, and
$12,000.
Minimum amount of qualified energy savings
No credit shall be allowed under subsection (a) with respect to any dwelling unit in a qualified low-rise building which achieves a qualified energy savings of less than 20 percent.
Qualified energy efficiency expenditures
For purposes of this section—
In general
The term qualified energy efficiency expenditures means any amount paid or incurred which is related to producing qualified energy savings in any dwelling unit located in a qualified low-rise building of the taxpayer which is located in the United States.
No double benefit for certain expenditures
The term qualified energy efficiency expenditures shall not include any expenditure for any property for which a deduction has been allowed to the taxpayer under section 179G.
Qualified low-rise building
The term qualified low-rise building means a building—
with respect to which depreciation is allowable under section 167,
which is used for multifamily housing, and
which is not within the scope of Standard 90.1–2001 (as defined under section 179D(c)(2)).
Qualified energy savings
For purposes of this section—
In general
The term qualified energy savings means, with respect to any dwelling unit in a qualified low-rise building, the amount (measured as a percentage) by which—
the annual energy use with respect to such dwelling unit after qualified energy efficiency expenditures are made, as certified under paragraph (2), is less than
the annual energy use with respect to such dwelling unit before the qualified energy efficiency expenditures were made, as certified under paragraph (2).
Certification
In general
The Secretary, in consultation with the Secretary of Energy, shall prescribe the procedures and method for the making of certifications under this paragraph based on the Residential Energy Services Network (RESNET) Technical Guidelines in effect on the date of the enactment of this Act.
Qualified individuals
Any certification made under this paragraph may only be made by an individual who is recognized by an organization certified by the Secretary for such purposes.
Special rules
For purposes of this section, rules similar to the rules under paragraphs (8) and (9) of section 25D(e) shall apply.
Basis adjustments
For purposes of this subtitle, if a credit is allowed under this section with respect to 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.
Termination
This section shall not apply with respect to any property placed in service after December 31, 2011.
.
Conforming amendments
Section 263(a)(1),
as amended by section 404 of division A of the Tax Relief and Health Care Act
of 2006, the is amended by striking or
at the end of
subparagraph (K), by striking the period at the end of subparagraph (L) and
inserting , or
, and by inserting after subparagraph (L) the
following new subparagraph:
expenditures for which a deduction is allowed under section 179F.
.
Section
312(k)(3)(B) is amended by striking 179, 179A, 179B, 179C, 179D, or
179E
each place it appears in the heading and text and inserting
179, 179A, 179B, 179C, 179D, 179E, or 179F
.
Section 1016(a),
as amended by section 101, is amended by striking and
at the end
of paragraph (37), by striking the period at the end of paragraph (38) and
inserting , and
, and by adding at the end the following new
paragraph:
to the extent provided in section 179F(f).
.
Section 1245(a) is
amended by inserting 179F,
after 179E,
both
places it appears in paragraphs (2)(C) and (3)(C).
The table of sections for part VI of subchapter B is amended by inserting after the item relating to section 179E the following new item:
.
Effective date
The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.
Energy efficient property deduction
In general
Part VI of subchapter B of chapter 1, as amended by section 203, is amended by inserting after section 179F the following new section:
Energy efficient property
In general
There shall be allowed as a deduction an amount equal to the energy efficient property expenditures paid or incurred by the taxpayer during the taxable year.
Limitation
The amount of the deduction allowed under subsection (a) for any taxable years shall not exceed—
$150 for any advanced main air circulating fan,
$450 for any qualified natural gas furnace or qualified propane furnace, and
$900 for—
any item of energy-efficient building property, and
any qualified oil furnace, qualified natural gas hot water boiler, qualified propane hot water boiler, or qualified oil hot water boiler.
Energy efficient property expenditures
For purposes of this section—
In general
The term energy efficient property expenditures means expenditures paid by the taxpayer for qualified energy property which is—
of a character subject to the allowance for depreciation, and
originally placed in service by the taxpayer.
Qualified energy property
The term qualified energy property has the meaning given such term by section 25C(d)(2).
Basis adjustments
For purposes of this subtitle, if a deduction is allowed under this section with respect to 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 deduction so allowed.
Termination
This section shall not apply with respect to any property placed in service after December 31, 2011.
.
No double benefit
Section 179D(c) is amended by adding at the end the following new paragraph:
Certain property excluded
The term energy efficient commercial building property does not include any property with respect to which a credit has been allowed to the taxpayer under section 179G.
.
Conforming amendments
Section 263(a)(1),
as amended by section 203, is amended by striking or
at the end
of subparagraph (K), by striking the period at the end of subparagraph (L) and
inserting , or
, and by inserting after subparagraph (L) the
following new subparagraph:
expenditures for which a deduction is allowed under section 179G.
.
Section
312(k)(3)(B), as amended by section 203, is amended by striking 179,
179A, 179B, 179C, 179D, 179E, or 179F
each place it appears in the
heading and text and inserting 179, 179A, 179B, 179C, 179D, 179E, 179F,
or 179G
.
Section 1016(a),
as amended by section 203, is amended by striking and
at the end
of paragraph (38), by striking the period at the end of paragraph (39) and
inserting , and
, and by adding at the end the following new
paragraph:
to the extent provided in section 179G(e).
.
Section 1245(a),
as amended by section 203 is amended by inserting 179G,
after
179F,
both places it appears in paragraphs (2)(C) and
(3)(C).
The table of sections for part VI of subchapter B is amended by inserting after the item relating to section 179F the following new item:
.
Effective date
The amendments made by this section shall apply to property placed in service in taxable years beginning after the date of the enactment of this Act.
Credit for energy savings certifications
In general
Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:
Energy savings certification credit
In general
For purposes of section 38, the energy savings certification credit determined under this section for any taxable year is an amount equal to the sum of—
the qualified training and certification costs paid or incurred by the taxpayer which may be taken into account for such taxable year, plus
the qualified certification equipment expenditures paid or incurred by the taxpayer which may be taken into account for such taxable year.
Qualified training and certification costs
In general
The term qualified training and certification costs means costs paid or incurred for training which is required for the taxpayer or employees of the taxpayer to be certified by the Secretary under section 25D(d)(2)(B) or 179F(d)(2)(B) for the purpose of certifying energy savings.
Limitation
The qualified training and certification costs taken into account under subsection (a)(1) for the taxable year with respect to any individual shall not exceed $500 reduced by the amount of the credit allowed under subsection (a)(1) to the taxpayer (or any predecessor) with respect to such individual for all prior taxable years.
Year costs taken into account
Qualified training and certifications costs with respect to any individual shall not be taken into account under subsection (a)(1) before the taxable year in which the individual with respect to whom such costs are paid or incurred has performed 25 certifications under sections 25E(d)(2)(A) and 179F(d)(2)(A).
Qualified certification equipment expenditures
In general
The term qualified training equipment expenditures means costs paid or incurred for—
blower doors,
duct leakage testing equipment,
flue gas combustion equipment, and
digital manometers.
Limitation
In general
The qualified certification equipment expenditures taken into account under subsection (a)(2) with respect to any taxpayer for any taxable year shall not exceed $1,000.
Limitation on individual items
The qualified certification equipment expenditures taken into account under subsection (a)(2) shall not exceed—
$500 with respect to any blower door or duct leakage testing equipment, and
$100 with respect to any flue gas combustion equipment or digital manometer.
Year expenditures taken into account
The qualified certification equipment expenditures of any taxpayer shall not be taken into account under subsection (a)(2) before the taxable year in which the taxpayer has performed 25 certifications under sections 25E(d)(2)(A) and 179F(d)(2)(A).
Special rules
Aggregation rules
For purposes of this section, all persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person.
Basis reduction
The basis of any property shall be reduced by the portion of the cost of such property taken into account under subsection (a).
Denial of double benefit
In general
No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount taken into account under subsection (a) for such taxable year.
Amount previously deducted
No credit shall be allowed under subsection (a) with respect to any amount for which a deduction has been allowed in any preceding taxable year.
.
Credit treated as part of general business credit
Section 38(b) is amended by
striking plus
at the end of paragraph (30), by striking the
period at the end of paragraph (31) and inserting plus
, and by
adding at the end the following new paragraph:
the energy savings certification credit determined under section 45O(a).
.
Conforming amendments
Section 1016(a),
as amended by this Act, is amended by striking and
at the end of
paragraph (39), by striking the period at the end of paragraph (40) and
inserting and
, and by adding at the end the following new
paragraph:
to the extent provided in section 45O(d)(2).
.
The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 45N the following new item:
.
Effective date
The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.
Save Tax Payers Money
Repeal of certain provisions of the Energy Policy Act of 2005
Repeals
The following provisions of the Energy Policy Act of 2005, and the items relating thereto in the table of contents of that Act, are repealed:
Section 342 (relating to program on oil and gas royalties in-kind).
Section 343 (relating to marginal property production incentives).
Section 344 (relating to incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico).
Section 345 (relating to royalty relief for deep water production).
Section 357 (relating to comprehensive inventory of OCS oil and natural gas resources).
Subtitle J of title IX (relating to ultra-deepwater and unconventional natural gas and other petroleum resources).
Repeal of Alaska offshore royalty suspension
Section 8(a)(3)(B) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended by striking
and in the Planning Areas offshore Alaska
.
Repeal of certain tax provisions of the Energy Policy Act of 2005
Repeal
The following provisions, and amendments made by such provisions, of the Energy Policy Act of 2005 are hereby repealed:
Section 1306 (relating to credit for production from advanced nuclear power facilities).
Section 1307 (relating to credit for investment in clean coal facilities).
Section 1308 (relating to electric transmission property treated as 15-year property).
Section 1309 (relating to expansion of amortization for certain atmospheric pollution control facilities).
Section 1310 (relating to modifications to special rules for nuclear decommissioning costs).
Section 1321 (relating to extension of credit for producing fuel from nonconventional source (coke or coke gas).
Section 1323 (relating to temporary expensing for equipment used in refining of liquid fuels).
Section 1325 (relating to natural gas distribution lines treated as 15-year property).
Section 1326 (relating to natural gas gathering lines treated as 7-year property).
Section 1328 (relating to determination of small refiner exception to oil depletion deduction).
Section 1329 (relating to amortization of geological and geophysical expenditures).
Administration of Internal Revenue Code of 1986
The Internal Revenue Code of 1986 shall be applied and administered as if the provisions, and amendments, specified in subsection (a) had never been enacted.
State and Local Authority
State consumer product energy efficiency standards
Section 327 of the Energy Policy and Conservation Act (42 U.S.C. 6297) is amended by adding at the end the following new subsection:
Limitation on Preemption
Subsections (a), (b), and (c) shall not apply with respect to State regulation of energy consumption or water use of any covered product during any period of time—
after the expiration of 3 years after the required date of issuance of a final rule determining whether Federal standards for such consumption or use will be established or revised, if such rule has not been issued; and
before the date on which such rule is issued.
.
Appeals from consistency determinations under Coastal Zone Management Act of 1972
Section 319 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1465) is amended to read as if section 381 of the Energy Policy Act of 2005 (119 Stat. 737) were not enacted.
Siting of interstate electric transmission facilities
Section 216 of the Federal Power Act (16 U.S.C. 824p) is repealed.
New natural gas storage facilities
Subsection (f) of section 4 of the Natural Gas Act (15 U.S.C. 717c(f)) is repealed.
Process coordination; hearings; rules of procedure
The amendments to the Natural Gas Act made by section 313 of the Energy Policy Act of 2005 are repealed, and the Natural Gas Act shall be administered as if those amendments were never enacted.
Repeal of preemption of State law relating to automobile fuel economy standards
Section 32919 of title 49, United States Code, is repealed.
Renewable Energy Research and Development
Advanced biofuel technologies
In General
The Secretary of Energy shall carry out a program of research, development, demonstration, and commercial application for production of motor and other fuels from biomass.
Objectives
The Secretary shall design the program under this section to—
develop technologies that would make ethanol produced from cellulosic feedstocks cost competitive with ethanol produced from corn by 2012;
conduct research and development on how to apply advanced genetic engineering and bioengineering techniques to increase the efficiency and lower the cost of industrial-scale production of liquid fuels from cellulosic feedstocks; and
conduct research and development on the production of hydrocarbons other than ethanol from biomass.
Institution of Higher Education Grants
The Secretary shall designate not less than 10 percent of the funds appropriated under subsection (d) for each fiscal year to carry out the program for grants to competitively selected institutions of higher education around the country focused on meeting the objectives stated in subsection (b).
Authorization of Appropriations
From amounts authorized to be appropriated under section 931(c) of the Energy Policy Act of 2005 (42 U.S.C. 16231(c)), there are authorized to be appropriated to the Secretary to carry out this section—
$150,000,000 for fiscal year 2008;
$160,000,000 for fiscal year 2009; and
$175,000,000 for fiscal year 2010.
Advanced hydrogen storage technologies
In General
The Secretary of Energy shall carry out a program of research, development, demonstration, and commercial application for technologies to enable practical onboard storage of hydrogen for use as a fuel for light-duty motor vehicles.
Objective
The Secretary shall design the program under this section to develop practical hydrogen storage technologies that would enable a hydrogen-fueled light-duty motor vehicle to travel 300 miles before refueling.
Advanced solar photovoltaic technologies
In General
The Secretary of Energy shall carry out a program of research, development, demonstration, and commercial application for advanced solar photovoltaic technologies.
Objectives
The Secretary shall design the program under this section to develop technologies that would—
make electricity generated by solar photovoltaic power cost-competitive by 2015; and
enable the widespread use of solar photovoltaic power.
Authorization of Appropriations
There are authorized to be appropriated to the Secretary to carry out this section—
$148,000,000 for fiscal year 2008;
$155,000,000 for fiscal year 2009;
$165,000,000 for fiscal year 2010; and
$180,000,000 for fiscal year 2012.
Advanced wind energy technologies
In General
The Secretary of Energy shall carry out a program of research, development, demonstration, and commercial application for advanced wind energy technologies.
Objectives
The Secretary shall design the program under this section to—
improve the efficiency and lower the cost of wind turbines;
minimize adverse environmental impacts; and
develop new small-scale wind energy technologies for use in low wind speed environments.
Authorization of Appropriations
There are authorized to be appropriated to the Secretary to carry out this section—
$44,000,000 for fiscal year 2008;
$48,400,000 for fiscal year 2009;
$53,240,000 for fiscal year 2010; and
$58,564,000 for fiscal year 2011.
Continuing programs
The Secretary of Energy shall continue to carry out the research, development, demonstration, and commercial application activities authorized in sections 921(b)(1) (for distributed energy), 923 (for micro-cogeneration technology), and 931(a)(2)(C), (D), and (E)(i) (for geothermal energy, hydropower, and ocean energy) of the Energy Policy Act of 2005.
Plug-in hybrid electric vehicle technology program
Short Title
This section may be cited as the Plug-In Hybrid
Electric Vehicle Act of 2007
.
Definitions
In this section:
Battery
The
term battery
means a device or system for the electrochemical
storage of energy.
E85
The
term E85
means a fuel blend containing 85 percent ethanol and 15
percent gasoline by volume.
Electric drive transportation technology
The term electric drive
transportation technology
means—
vehicles that use an electric motor for all or part of their motive power and that may or may not use offboard electricity, including battery electric vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles, flexible fuel plug-in hybrid electric vehicles, and electric rail; and
related equipment, including electric equipment necessary to recharge a plug-in hybrid electric vehicle.
Flexible fuel plug-in hybrid electric vehicle
The term flexible fuel
plug-in hybrid electric vehicle
means a plug-in hybrid electric vehicle
warranted by its manufacturer as capable of operating on any combination of
gasoline or E85 for its onboard internal combustion or heat engine.
Hybrid electric vehicle
The term hybrid electric vehicle
means a
vehicle that—
can be propelled using liquid combustible fuel and electric power provided by an onboard battery; and
utilizes regenerative power capture technology to recover energy expended in braking the vehicle for use in recharging the battery.
Plug-in hybrid electric vehicle
The term plug-in hybrid electric
vehicle
means a hybrid electric onroad light-duty vehicle that can be
propelled solely on electric power for a minimum of 20 miles under city driving
conditions, and that is capable of recharging its battery from an offboard
electricity source.
Program
The Secretary of Energy shall conduct a program of research, development, demonstration, and commercial application on technologies needed for the development of plug-in hybrid electric vehicles and electric drive transportation, including—
high capacity, high efficiency batteries, to—
improve battery life, energy storage capacity, and power delivery capacity, and lower cost; and
minimize waste and hazardous material production in the entire value chain, including after the end of the useful life of the batteries;
high efficiency onboard and offboard charging components;
high power drive train systems for passenger and commercial vehicles and for supporting equipment;
onboard energy management systems, power trains, and systems integration for plug-in hybrid electric vehicles, flexible fuel plug-in hybrid electric vehicles, and hybrid electric vehicles, including efficient cooling systems and systems that minimize the emissions profile of such vehicles; and
lightweight materials, including research, development, demonstration, and commercial application to reduce the cost of materials such as steel alloys and carbon fibers.
Plug-In Hybrid Electric Vehicle Demonstration Program
Establishment
The Secretary shall establish a competitive grant pilot demonstration program to provide not more than 25 grants annually to State governments, local governments and public entities, metropolitan transportation authorities, or combinations thereof to carry out a project or projects for demonstration of plug-in hybrid electric vehicles.
Applications
Requirements
The Secretary shall issue requirements for applying for grants under the demonstration pilot program. The Secretary shall require that applications, at a minimum, include a description of how data will be—
collected on the—
performance of the vehicle or vehicles and the components, including the battery, energy management, and charging systems, under various driving speeds, trip ranges, traffic, and other driving conditions;
costs of the vehicle or vehicles, including acquisition, operating, and maintenance costs, and how the project or projects will be self-sustaining after Federal assistance is completed; and
emissions of the vehicle or vehicles, including greenhouse gases, and the amount of petroleum displaced as a result of the project or projects; and
summarized for dissemination to the Department, other grantees, and the public.
Partners
An applicant under subparagraph (A) may carry out a project or projects under the pilot program in partnership with one or more private or nonprofit entities, which may include institutions of higher education, including Historically Black Colleges and Universities, Hispanic Serving Institutions, and other minority-serving institutions.
Selection criteria
Preference
When making awards under this subsection, the Secretary shall consider each applicant’s previous experience involving plug-in hybrid electric vehicles and shall give preference to proposals that—
provide the greatest demonstration per award dollar, with preference increasing as the number of miles that a plug-in hybrid electric vehicle can be propelled solely on electric power under city driving conditions increases; and
maximize the non-Federal share of project funding and demonstrate the greatest likelihood that each project proposed in the application will be maintained or expanded after Federal assistance under this subsection is completed.
Breadth of demonstrations
In awarding grants under this subsection, the Secretary shall ensure the program will demonstrate plug-in hybrid electric vehicles under various circumstances, including—
driving speeds;
trip ranges;
driving conditions;
climate conditions; and
topography,
Pilot project requirements
Subsequent funding
An applicant that has received a grant in one year may apply for additional funds in subsequent years, but the Secretary shall not provide more than $10,000,000 in Federal assistance under the pilot program to any applicant for the period encompassing fiscal years 2008 through fiscal year 2012.
Information
The Secretary shall establish mechanisms to ensure that the information and knowledge gained by participants in the pilot program are shared among the pilot program participants and are available to other interested parties, including other applicants.
Award amounts
The Secretary shall determine grant amounts, but the maximum size of grants shall decline as the cost of producing plug-in hybrid electric vehicles declines or the cost of converting a hybrid electric vehicle to a plug-in hybrid electric vehicle declines.
Cost Sharing
The Secretary shall carry out the program under this section in compliance with section 988(a) through (d) and section 989 of the Energy Policy Act of 2005 (42 U.S.C. 16352(a) through (d) and 16353).
Authorization of Appropriations
There are authorized to be appropriated to the Secretary—
for carrying out subsection (c), $250,000,000 for each of fiscal years 2008 through 2012, of which up to $50,000,000 may be used for the program described in paragraph (5) of that subsection; and
for carrying out subsection (d), $50,000,000 for each of fiscal years 2008 through 2012.
Photovoltaic demonstration program
Short Title
This section may be cited as the Solar Utilization
Now Demonstration Act of 2007
or the SUN Act of
2007
.
In General
The Secretary of Energy shall establish a program of grants to States to demonstrate advanced photovoltaic technology.
Requirements
Ability to meet requirements
To receive funding under the program under this section, a State must submit a proposal that demonstrates, to the satisfaction of the Secretary, that the State will meet the requirements of subsection (g).
Compliance with requirements
If a State has received funding under this section for the preceding year, the State must demonstrate, to the satisfaction of the Secretary, that it complied with the requirements of subsection (g) in carrying out the program during that preceding year, and that it will do so in the future, before it can receive further funding under this section.
Funding allocation
Except as provided in subsection (d), each State submitting a proposal that meets the requirements under subsection (c) shall receive funding under the program based on the proportion of United States population in the State according to the 2000 census. In each fiscal year, the portion of funds attributable under this paragraph to States that have not submitted proposals that meet the requirements under subsection (c) in the time and manner specified by the Secretary shall be distributed pro rata to the States that have submitted proposals that meet the requirements under subsection (c) in the specified time and manner.
Competition
If more than $80,000,000 is available for the program under this section for any fiscal year, the Secretary shall allocate 75 percent of the total amount of funds available according to subsection (c)(3), and shall award the remaining 25 percent on a competitive basis to the States with the proposals the Secretary considers most likely to encourage the widespread adoption of photovoltaic technologies. In awarding funds under this subsection, the Secretary may give preference to proposals that would demonstrate the use of newer materials or technologies.
Proposals
Not later than 6 months after the date of enactment of this Act, and in each subsequent fiscal year for the life of the program, the Secretary shall solicit proposals from the States to participate in the program under this section.
Competitive Criteria
In awarding funds in a competitive allocation under subsection (d), the Secretary shall consider—
the likelihood of a proposal to encourage the demonstration of, or lower the costs of, advanced photovoltaic technologies; and
the extent to which a proposal is likely to—
maximize the size of photovoltaic installation, based on rated capacity;
maximize the proportion of non-Federal cost share; and
limit State administrative costs.
State Program
A program operated by a State with funding under this section shall provide competitive awards for the demonstration of advanced photovoltaic technologies. Each State program shall—
require a contribution of at least 60 percent per award from non-Federal sources, which may include any combination of State, local, and private funds, except that at least 10 percent of the funding must be supplied by the State;
limit awards for any single project to a maximum of $5,000,000;
prohibit any nongovernmental recipient from receiving more than $1,000,000 per year;
endeavor to fund recipients in the commercial, industrial, institutional, governmental, and residential sectors;
limit State administrative costs to no more than 10 percent of the grant;
report annually to the Secretary on—
the amount of funds disbursed;
the rated capacity of the photovoltaics purchased and installed; and
the results of the monitoring under paragraph (7);
provide for measurement and verification of the output of a representative sample of the photovoltaics systems demonstrated throughout the average working life of the systems, or at least 20 years;
require that applicant buildings must have received an independent energy efficiency audit during the 6-month period preceding the filing of the application; and
encourage Historically Black Colleges and Universities, Hispanic Serving Institutions, and other minority-serving institutions to apply for grants under this program.
Unexpended Funds
If a State fails to expend any funds received under subsection (c) or (d) within 3 years of receipt, such remaining funds shall be returned to the Treasury.
Reports
The Secretary shall report to Congress 5 years after funds are first distributed to the States under this section—
the amount of photovoltaics demonstrated;
the number of projects undertaken;
the administrative costs of the program;
the amount of funds that each State has not received because of a failure to submit a qualifying proposal, as described in subsection (c)(3);
the results of the monitoring under subsection (g)(7); and
the total amount of funds distributed, including a breakdown by State.
Authorization of Appropriations
There are authorized to be appropriated to the Secretary for the purposes of carrying out this section—
$50,000,000 for fiscal year 2008;
$100,000,000 for fiscal year 2009;
$150,000,000 for fiscal year 2010;
$200,000,000 for fiscal year 2011; and
$300,000,000 for fiscal year 2012.