I
110th CONGRESS
2d Session
H. R. 6385
IN THE HOUSE OF REPRESENTATIVES
June 26, 2008
Mr. Kirk (for himself, Mrs. Biggert, and Mr. Shays) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Science and Technology, Energy and Commerce, Education and Labor, Rules, Natural Resources, Agriculture, Armed Services, and the Budget, 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 provide a large-scale national effort to improve the state of our national security, economy and environment by providing market incentives to produce and deploy alternative energy solutions and reduce our dependence on foreign oil.
Short title, etc
Short title
This Act may be cited
as the Apollo Energy Independence Act
of 2008
.
Amendment of 1986 Code
Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title, etc.
Sec. 2. Findings.
Sec. 3. Purposes.
Title I—Enhancing Development of Alternative and Renewable Energy
Sec. 101. Renewable energy credit made permanent.
Sec. 102. Production credit for electricity produced from marine renewables.
Sec. 103. Energy credit.
Sec. 104. New clean renewable energy bonds.
Sec. 105. Advanced Nuclear Power Production.
Sec. 106. Loan guarantees for construction of advanced nuclear facilities.
Title II—Improving Energy Efficiency
Sec. 201. Make permanent the tax credit for residential energy-efficient property.
Sec. 202. Make permanent the energy efficiency credit for existing homes.
Sec. 203. Make permanent the energy efficiency commercial buildings deduction.
Sec. 204. Make permanent the credit for production of energy-efficient appliances.
Title III—Enhancing Production and Deployment of Alternative Vehicles and Fuels
Sec. 301. Consumer incentives to purchase advanced technology vehicles.
Sec. 302. Advanced technology motor vehicles manufacturing credit.
Sec. 303. Production tax credit for any commercial vehicle that attains an EPA fuel economy standard of 100 mpg.
Sec. 304. Credit for production of cellulosic biofuel.
Sec. 305. Establish a permanent production tax credit for hydrogen fuels.
Sec. 306. Rate of credit for alternative fuel vehicle refueling property increased from 30 to 60 percent.
Sec. 307. Use of CAFÉ penalties to support the Clean Cities Initiative.
Sec. 308. Exclusion from heavy truck tax for idling reduction units and advanced insulation.
Sec. 309. Advanced hydrogen storage technologies.
Sec. 310. Plug-in electric drive vehicle technology program.
Title IV—Reducing Consumer Energy and Gasoline Costs
Sec. 401. Refundable employer credit for providing tax-free transit passes to employees.
Sec. 402. Reduction in number of boutique fuels.
Sec. 403. Green schools grant program.
Sec. 404. Extension and greening of qualified zone academy bonds.
Sec. 405. Study on the reduction of energy costs in public schools.
Sec. 406. Ethanol.
Title V—Offsets
Sec. 501. FY09 cost.
Sec. 502. Conservation of resources fees.
Sec. 503. Reduction in payment acres for direct and counter-cyclical payments under Department of Agriculture commodity programs.
Sec. 504. Reduction in maximum amount of direct, counter-cyclical, and ACRE payments paid to producers under Department of Agriculture commodity programs.
Sec. 505. Consolidation of military exchange stores system.
Sec. 506. Revised pricing structure for depot-level activities of the Department of Defense.
Sec. 507. Restrict Universal Service Fund support to 2 connections per household.
Sec. 508. Improve Treasury payment transaction integrity.
Sec. 509. Modernize Treasury cash investment practices.
Sec. 510. Food Safety and Inspection Service user fees.
Findings
The Congress finds the following:
The United States is the world’s largest per-capita oil consumer and is projected to remain such through at least 2030.
Crude oil prices increased by more than 400 percent in the past 10 years.
The retail price of gasoline increased by nearly 200 percent in the past 10 years.
The retail price of electricity increased by 30 percent in the past 10 years.
On June 10, 2008, the national average cost of gasoline surpassed a record $4.00 per gallon.
Foreign oil accounts for 23.5 percent of United States energy consumption. This represents the largest component of American’s energy profile.
The United States is the world’s largest oil importer, spending over $500 billion per year on foreign oil.
62 percent of the
proved world oil reserves reside in countries considered not
free
by leading human rights organizations.
Oil revenues to dictatorial nations help provide funding for state-sponsored terrorism against America and her allies; the acquisition of weapons of mass destruction; and the sustainability of corrupt political systems which continue to subjugate their citizenry.
America’s dependence on oil is a threat to our national security, economic prosperity and environmental sustainability.
The $20 billion NASA Apollo program was the first and most comprehensive national effort to achieve technological advancement in the history of our Nation. Between 1963 and 1972, the United States spent $19.5 billion to realize one of her most prestigious accomplishments—landing on the moon.
Purposes
The purposes of this Act are—
to establish long-term market incentives in order to spur development, deployment and demand of renewable and alternative energy, vehicles and fuel; and
to provide resources on the scale of the NASA Apollo program, to achieve preeminence in efficient and alternative energy consumption for the United States and to develop America’s capability to live and work without dependence on foreign oil.
Enhancing Development of Alternative and Renewable Energy
Renewable energy credit made permanent
In general
Subsection (d) of section 45 of the Internal Revenue Code of 1986 (relating to qualified facilities) is amended—
by striking
and before January 1, 2009
each place it occurs,
by striking
, and before January 1, 2009
in paragraphs (1) and
(2)(A)(i),
by striking
before January 1, 2009
in paragraphs (2)(A)(ii) and (3)(A)(ii)
and inserting January 1, 2019
, and
by striking
January 1, 2006
in paragraph (4) and inserting January 1,
2019
.
Effective date
The amendments made by subsection (a) shall apply to electricity produced and sold after December 31, 2008, in taxable years ending after such date.
Production credit for electricity produced from marine renewables
In general
Paragraph (1) of section 45(c) is amended by striking
and
at the end of subparagraph (G), by striking the period at
the end of subparagraph (H) and inserting , and
, and by adding
at the end the following new subparagraph:
marine and hydrokinetic renewable energy.
.
Marine renewables
Subsection (c) of section 45 is amended by adding at the end the following new paragraph:
Marine and hydrokinetic renewable energy
In general
The term marine and hydrokinetic renewable energy means energy derived from—
waves, tides, and currents in oceans, estuaries, and tidal areas,
free flowing water in rivers, lakes, and streams,
free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or
differentials in ocean temperature (ocean thermal energy conversion).
Exceptions
Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.
.
Definition of facility
Subsection (d) of section 45 is amended by adding at the end the following new paragraph:
Marine and hydrokinetic renewable energy facilities
In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term qualified facility means any facility owned by the taxpayer—
which has a nameplate capacity rating of at least 150 kilowatts, and
which is originally placed in service on or after the date of the enactment of this paragraph.
.
Credit rate
Subparagraph (A) of section 45(b)(4) is amended by striking
or (9)
and inserting (9), or (11)
.
Coordination with small irrigation power
Paragraph (5) of section 45(d) is
amended by striking January 1, 2009
and inserting the
date of the enactment of paragraph (11)
.
Effective date
The amendments made by this section shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.
Energy credit
Extension of credit
Solar energy property
Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a)
are each amended by striking but only with respect to periods ending
before January 1, 2009
.
Fuel cell property
Paragraph (1) of section 48(c) is amended by striking subparagraph (E).
Microturbine property
Paragraph (2) of section 48(c) is amended by striking subparagraph (E).
Allowance of energy credit against alternative minimum tax
Subparagraph (B) of
section 38(c)(4) is amended by striking and
at the end of clause
(iii), by redesignating clause (iv) as clause (v), and by inserting after
clause (iii) the following new clause:
the credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48, and
.
Energy credit for combined heat and power system property
In general
Section 48(a)(3)(A) (defining energy property) is amended
by striking or
at the end of clause (iii), by inserting
or
at the end of clause (iv), and by adding at the end the
following new clause:
combined heat and power system property,
.
Combined Heat and Power System Property
Section 48 is amended by adding at the end the following new subsection:
Combined Heat and Power System Property
For purposes of subsection (a)(3)(A)(v)—
Combined heat and power system property
The term combined heat and power system property means property comprising a system—
which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications),
which produces—
at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), and
at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof), and
the energy efficiency percentage of which exceeds 60 percent.
Limitation
In general
In the case of combined heat and power system property with an electrical capacity in excess of the applicable capacity placed in service during the taxable year, the credit under subsection (a)(1) (determined without regard to this paragraph) for such year shall be equal to the amount which bears the same ratio to such credit as the applicable capacity bears to the capacity of such property.
Applicable capacity
For purposes of subparagraph (A), the term applicable capacity means 15 megawatts or a mechanical energy capacity of more than 20,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.
Maximum capacity
The term combined heat and power system property shall not include any property comprising a system if such system has a capacity in excess of 50 megawatts or a mechanical energy capacity in excess of 67,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.
Special rules
Energy efficiency percentage
For purposes of this subsection, the energy efficiency percentage of a system is the fraction—
the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and expected to be consumed in its normal application, and
the denominator of which is the lower heating value of the fuel sources for the system.
Determinations made on btu basis
The energy efficiency percentage and the percentages under paragraph (1)(B) shall be determined on a Btu basis.
Input and output property not included
The term combined heat and power system property does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.
Systems using biomass
If a system is designed to use biomass (within the meaning of paragraphs (2) and (3) of section 45(c) without regard to the last sentence of paragraph (3)(A)) for at least 90 percent of the energy source—
paragraph (1)(C) shall not apply, but
the amount of credit determined under subsection (a) with respect to such system shall not exceed the amount which bears the same ratio to such amount of credit (determined without regard to this paragraph) as the energy efficiency percentage of such system bears to 60 percent.
.
Increase of credit limitation for fuel cell property
Subparagraph (B) of
section 48(c)(1) is amended by striking $500
and inserting
$1,500
.
Public utility property taken into account
In general
Paragraph (3) of section 48(a) is amended by striking the second sentence thereof.
Conforming amendments
Paragraph (1) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).
Paragraph (2) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).
Effective date
In general
Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.
Allowance against alternative minimum tax
The amendments made by subsection (b) shall apply to credits determined under section 46 of the Internal Revenue Code of 1986 in taxable years beginning after the date of the enactment of this Act and to carrybacks of such credits.
Combined heat and power and fuel cell property
The amendments made by subsections (c) and (d) shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
Public utility property
The amendments made by subsection (e) shall apply to periods after February 13, 2008, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
New clean renewable energy bonds
Conforming amendments
Section 54A(d)(1)
is amended by inserting and a new clean renewable energy bond,
after qualified forestry conservation bond
.
Section
54A(d)(2)(C) is amended by inserting or 54C(e)
after
54B(e)
.
In general
Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:
New clean renewable energy bonds
New clean renewable energy bond
For purposes of this subpart, the term new clean renewable energy bond means any bond issued as part of an issue if—
100 percent of the available project proceeds of such issue are to be used for a qualified clean renewable energy purpose,
the bond is issued by a qualified issuer, and
the issuer designates such bond for purposes of this section.
Reduced credit amount
The annual credit determined under section 54A(b) with respect to any new clean renewable energy bond shall be 70 percent of the amount so determined without regard to this subsection.
Limitation on amount of bonds designated
In general
The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under this subsection to such issuer.
National limitation on amount of bonds designated
There is a national new clean renewable energy bond limitation of $2,000,000,000 which shall be allocated by the Secretary as provided in paragraph (3), except that—
not more than 331/3 percent thereof may be allocated to qualified projects of public power providers,
not more than 331/3 percent thereof may be allocated to qualified projects of governmental bodies, and
not more than 331/3 percent thereof may be allocated to qualified projects of cooperative electric companies.
Method of allocation
Allocation among public power providers
After the Secretary determines the qualified projects of public power providers which are appropriate for receiving an allocation of the national new clean renewable energy bond limitation, the Secretary shall, to the maximum extent practicable, make allocations among such projects in such manner that the amount allocated to each such project bears the same ratio to the cost of such project as the limitation under paragraph (2)(A) bears to the cost of all such projects.
Allocation among governmental bodies and cooperative electric companies
The Secretary shall make allocations of the amount of the national new clean renewable energy bond limitation described in paragraphs (2)(B) and (2)(C) among qualified projects of governmental bodies and cooperative electric companies, respectively, in such manner as the Secretary determines appropriate.
Definitions
For purposes of this section—
Qualified renewable energy facility
The term qualified renewable energy facility means a qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and to any placed in service date) owned by a public power provider, a governmental body, or a cooperative electric company.
Public power provider
The term public power provider means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of the enactment of this paragraph).
Governmental body
The term governmental body means any State or Indian tribal government, or any political subdivision thereof.
Cooperative electric company
The term cooperative electric company means a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C).
Clean renewable energy bond lender
The term clean renewable energy bond lender means a lender which is a cooperative which is owned by, or has outstanding loans to, 100 or more cooperative electric companies and is in existence on February 1, 2002, and shall include any affiliated entity which is controlled by such lender.
Qualified issuer
The term qualified issuer means a public power provider, a cooperative electric company, a governmental body, a clean renewable energy bond lender, or a not-for-profit electric utility which has received a loan or loan guarantee under the Rural Electrification Act.
Qualified clean renewable energy purpose
For purposes of this section, the term qualified clean renewable energy purpose means capital expenditures incurred by public power providers or cooperative electric companies for one or more qualified renewable energy facilities.
.
Clerical amendment
The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
.
Application of certain labor standards on projects financed under tax credit bonds
Subchapter IV of chapter 31 of title 40, United States Code, shall apply to projects financed with the proceeds of any new clean renewable energy bonds (as defined in section 54C of the Internal Revenue Code of 1986).
Effective dates
The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.
Advanced Nuclear Power Production
Increase in rate
Section 45J(a)(1) is amended by striking 1.8
cents
and inserting 2.25 cents
.
Increase in national limitation
Section 45J(b)(2) is amended by striking
6,000 megawatts
and inserting 12,000
megawatts
.
Increase in annual limitation
Section
45J(c)(1) is amended by striking $125,000,000
and inserting
$160,000,000
.
Extension of placed in service date
Section 45J(d)(1)(B) is amended by
striking and before January 1, 2021
.
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Loan guarantees for construction of advanced nuclear facilities
Section 1702(c) of the Energy Policy Act of
2005 (42 U.S.C. 16512(c)) is amended by inserting , except that 100
percent of the project cost may be guaranteed in the case of an advanced
nuclear energy facility
after guarantee is
issued
.
Improving Energy Efficiency
Make permanent the tax credit for residential energy-efficient property
Section 25D is amended by striking subsection (g).
Make permanent the energy efficiency credit for existing homes
Section 25C is amended by striking subsection (g).
Make permanent the energy efficiency commercial buildings deduction
Section 179D is amended by striking subsection (h).
Make permanent the credit for production of energy-efficient appliances
In general
Paragraph (1) of section 45M(b) is amended to read as follows:
In general
For purposes of subsection (a), the applicable amount in the case of dishwashers, clothes washers, and refrigerators (as the case may be) which meet the requirements of the Energy Star program in effect for the calendar year in which such appliance is manufactured is—
in the case of dishwashers, the energy savings amount,
in the case of clothes washers, $100, and
in the case of refrigerators—
which consume at least 15 percent but not more than 20 percent less kilowatt hours per year than the 2001 energy conservation standards, $75,
which consumes at least 20 percent but not more than 25 percent less kilowatt hours per year than the 2001 energy conservation standards, $125, and
which consumes at least 25 percent less kilowatt hours per year than the 2001 energy conservation standards, $175.
.
Effective date
The amendment made by this section applies to taxable years beginning after December 31, 2007.
Enhancing Production and Deployment of Alternative Vehicles and Fuels
Consumer incentives to purchase advanced technology vehicles
New Qualified Hybrid Motor Vehicles
Extension of Alternative Vehicle Credit
Subsection (i) of section 30B of the Internal Revenue Code of 1986, as amended by subsection (b), is amended by striking paragraph (3).
Increase in credit amount
Subparagraph (A) of section 30B(d)(2) of such Code
is amended by striking the sum of
and inserting 150
percent of the sum of
.
Elimination on Number of New Qualified Hybrid and Advanced Lean Burn Technology Vehicles Eligible for Alternative Motor Vehicle Credit
In general
Section 30B of the Internal Revenue Code of 1986 is amended by striking subsection (f) and by redesignating subsections (g) through (j) as subsections (f) through (i), respectively.
Conforming amendments
Paragraphs (4) and
(6) of section 30B(h) of the Internal Revenue Code of 1986 are each amended by
striking (determined without regard to subsection (g))
and
inserting determined without regard to subsection (f))
.
Section 38(b)(25)
of such Code is amended by striking section 30B(g)(1)
and
inserting section 30B(f)(1)
.
Section 55(c)(2)
of such Code is amended by striking section 30B(g)(2)
and
inserting section 30B(f)(2)
.
Section
1016(a)(36) of such Code is amended by striking section
30B(h)(4)
and inserting section 30B(g)(4)
.
Section 6501(m) of
such Code is amended by striking section 30B(h)(9)
and inserting
section 30B(g)(9)
.
Credit for new qualified plug-in electric drive motor vehicles
In general
Subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:
New qualified plug-in electric drive motor vehicles
Allowance of Credit
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year.
Per Vehicle Dollar Limitation
In general
The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle.
Base amount
The amount determined under this paragraph is $3,000.
Battery capacity
In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $200, plus $400 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $4,000.
Application With Other Credits
Business credit treated as part of general business credit
So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).
Personal credit
In general
For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.
Limitation based on amount of tax
In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of—
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 credits allowable under subpart A (other than this section and sections 23 and 25D) and section 27 for the taxable year.
New Qualified Plug-In Electric Drive Motor Vehicle
For purposes of this section—
In general
The term new qualified plug-in electric drive motor vehicle means a motor vehicle (as defined in section 30(c)(2))—
the original use of which commences with the taxpayer,
which is acquired for use or lease by the taxpayer and not for resale,
which is made by a manufacturer, and
which is propelled to a significant extent by an electric motor which draws electricity from a battery which—
has a capacity of not less than 2.5 kilowatt hours, and
is capable of being recharged from an external source of electricity.
Exception
The term new qualified plug-in electric drive motor vehicle is limited to vehicles meeting relevant Federal safety and emissions standards for on-road use.
Other terms
The terms passenger automobile, light truck, and manufacturer have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).
Battery capacity
The term capacity means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.
Special Rules
Basis reduction
The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (c)).
Recapture
The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
Property used outside united states, etc., not qualified
No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.
Election not To take credit
No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
Property used by tax-exempt entity; interaction with air quality and motor vehicle safety standards
Rules similar to the rules of paragraphs (6) and (10) of section 30B(h) shall apply for purposes of this section.
.
Coordination with alternative motor vehicle credit
Section 30B(d)(3) is amended by adding at the end the following new subparagraph:
Exclusion of plug-in vehicles
Any vehicle with respect to which a credit is allowable under section 30D (determined without regard to subsection (c) thereof) shall not be taken into account under this section.
.
Credit Made Part of General Business Credit
Section 38(b) is amended—
by striking
and
each place it appears at the end of any paragraph,
by striking
plus
each place it appears at the end of any paragraph,
by striking the
period at the end of paragraph (31) and inserting , plus
,
and
by adding at the end the following new paragraph:
the portion of the new qualified plug-in electric drive motor vehicle credit to which section 30D(c)(1) applies.
.
Conforming amendments
Section 24(b)(3)(B), as
amended by section 104, is amended by striking and 25D
and
inserting 25D, and 30D
.
Section 25(e)(1)(C)(ii) is amended
by inserting 30D,
after 25D,
.
Section 25B(g)(2), as amended by
section 104, is amended by striking and 25D
and inserting
, 25D, and 30D
.
Section 26(a)(1), as amended by
section 104, is amended by striking and 25D
and inserting
25D, and 30D
.
Section 1400C(d)(2) is amended by
striking and 25D
and inserting 25D, and
30D
.
Section 1016(a) is
amended by striking and
at the end of paragraph (35), by
striking the period at the end of paragraph (36) and inserting ,
and
, and by adding at the end the following new paragraph:
to the extent provided in section 30D(e)(1).
.
Section 6501(m) is
amended by inserting 30D(f)(4),
after
30C(e)(5),
.
The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
Sec. 30D. New qualified plug-in electric drive motor vehicles.
.
Treatment of alternative motor vehicle credit as a personal credit
In general
Paragraph (2) of section 30B(g) is amended to read as follows:
Personal credit
The credit allowed under subsection (a) for any taxable year (after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.
.
Conforming amendments
Subparagraph (A) of section 30C(d)(2) is
amended by striking sections 27, 30, and 30B
and inserting
sections 27 and 30
.
Paragraph (3) of
section 55(c) is amended by striking 30B(g)(2),
.
Effective date
In general
Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2008.
Treatment of alternative motor vehicle credit as personal credit
The amendments made by paragraph (5) shall apply to taxable years beginning after December 31, 2007.
Flexible fuel vehicle 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.), as amended by this Act, is amended by adding at the end the following new section:
Flexible fuel vehicle credit
Allowance of Credit
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the GEM flexible fuel vehicle credit.
GEM Flexible Fuel Vehicle Credit
In general
For the purposes of subsection (a), the GEM flexible fuel vehicle credit determined under this subsection for the taxable year is the credit amount determined under paragraph (2) with respect to a GEM flexible fuel vehicle placed in service by the taxpayer during the taxable year.
Credit amount
In the case of a new qualified GEM flexible fuel vehicle which is a passenger automobile or light truck and which has a gross vehicle weight rating of not more than 8,500 pounds, the amount shall be $1,000.
Definitions
For purposes of this section—
Gem flexible fuel vehicle
The term GEM flexible fuel vehicle means a motor vehicle warrantied by its manufacturer to operate on any combination of gasoline, E85, M85, biodiesel, and hydrogen and its blends.
E85
The term E85 means a fuel blend containing 85 percent ethanol and 15 percent gasoline by volume.
M85
The term M85 means a fuel blend containing 85 percent methanol and 15 percent gasoline by volume.
.
Clerical amendment
The table of sections for 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 item:
.
Effective Date
The amendments made by this section shall apply to property placed in service after December 31, 2006, in taxable years ending after such date.
Advanced technology 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:
Advanced technology motor vehicles manufacturing credit
Credit Allowed
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—
in the case of a qualified investment of an eligible taxpayer for such taxable year relating to new qualified plug-in electric drive motor vehicles, hybrid and clean burning vehicles, GEM flexible fuel vehicles, and fuel cell vehicles, 50 percent of so much of such qualified investment as does not exceed $150,000,000, and
in the case of any other qualified investment of an eligible taxpayer for such taxable year, 35 percent of so much of such qualified investment as does not exceed $50,000,000.
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, expand, or establish any manufacturing facility of the eligible taxpayer to produce advanced technology motor vehicles or to produce eligible components,
for engineering integration of such vehicles and components as described in subsection (d), and
for research and development related to advanced technology motor vehicles and eligible components.
Attribution rules
In the event a facility of the eligible taxpayer produces both advanced technology motor vehicles and conventional motor vehicles, or eligible and non-eligible components, only the qualified investment attributable to production of advanced technology motor vehicles and eligible components shall be taken into account.
Advanced Technology Motor Vehicles and Eligible Components
For purposes of this section—
Advanced technology motor vehicle
The term advanced technology motor vehicle means—
any new advanced lean burn technology motor vehicle (as defined in section 30B(c)(3)),
any new qualified hybrid motor vehicle (as defined in section 30B(d)(3)(A) and determined without regard to any gross vehicle weight rating),
any new qualified plug-in electric drive motor vehicle (as defined in section 30D),
any new GEM flexible fuel vehicle, or
any new fuel cell vehicle.
New fuel cell vehicle
For purposes of this section, the term new fuel cell vehicle means an on-road or nonroad vehicle that utilizes a fuel cell for propulsion or in combination with an on-board battery system (as defined in section 803 of the Energy Policy Act of 2005 (42 U.S.C. 16152)).
Eligible components
The term eligible component means any component inherent to any advanced technology motor vehicle, including—
with respect to any gasoline or diesel-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 hydraulic new qualified hybrid motor vehicle—
hydraulic accumulator vessel,
hydraulic pump, or
hydraulic pump-motor assembly,
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,
with respect to any new qualified plug-in electric drive motor vehicle—
battery,
electric motor or generator,
any power control unit which is designed specifically for use in a new qualified plug-in electric drive motor vehicle, and
with respect to any advanced technology motor vehicle, any other component submitted for approval by the Secretary.
Engineering Integration Costs
For purposes of subsection (b)(1)(B), costs for engineering integration are costs incurred prior to the market introduction of advanced technology vehicles for engineering tasks related to—
establishing functional, structural, and performance requirements for component and subsystems to meet overall vehicle objectives for a specific application,
designing interfaces for components and subsystems with mating systems within a specific vehicle application,
designing cost effective, efficient, and reliable manufacturing processes to produce components and subsystems for a specific vehicle application, and
validating functionality and performance of components and subsystems for a specific vehicle application.
Eligible Taxpayer
For purposes of this section, the term eligible taxpayer means any taxpayer if more than 50 percent of its 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 and any prior taxable year beginning after 1986 and not taken into account under section 53 for any prior taxable year, over
the sum of the credits allowable under subpart A and sections 27, 30, and 30B 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
Except as provided in paragraph (2), 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 (b)(1)(C) 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 (b)(1)(C) 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 (f) 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.
Special Rules
For purposes of this section, 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.
.
Conforming Amendments
Section 1016(a) of
the Internal Revenue Code of 1986 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 30F(g).
.
Section 6501(m) of
such Code is amended by inserting 30F(k),
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 30E the following new item:
Sec. 30F. Advanced technology motor vehicles manufacturing credit.
.
Effective Date
The amendments made by this section shall apply to amounts incurred in taxable years beginning after December 31, 2006.
Production tax credit for any commercial vehicle that attains an EPA fuel economy standard of 100 mpg
In general
Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:
Vehicles attaining EPA fuel economy standard of 100 mpg
Allowance of Credit
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the cost of manufacturing any motor vehicle placed in service by the taxpayer during the taxable year that achieves a fuel economy standard of 100 miles per gallon, as determined by the Administrator of the Environmental Protection Agency.
Limitation
No credit shall be allowed under subsection (a) to the taxpayer after the 5th taxable year beginning after the taxable year in which the taxpayer manufacturers the first motor vehicle described in subsection (a).
Definitions and special rules
In general
For purposes of this section, rules similar to the rules of section 30B(h) shall apply.
Controlled groups
In general
For purposes of this section, all persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single manufacturer.
Inclusion of foreign corporations
For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.
Motor vehicle
For purposes of this section, the term motor vehicle means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.
Denial of Double Benefit
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.
.
Credit Made Part of General Business Credit
Section 38(b) is amended—
by striking the
period at the end of paragraph (32) and inserting , plus
,
and
by adding at the end the following new paragraph:
the credit to which section 30G applies.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Credit for production of cellulosic biofuel
In general
Subsection (a) of
section 40 is amended by striking plus
at the end of paragraph
(1), by striking plus
at the end of paragraph (2), by striking
the period at the end of paragraph (3) and inserting , plus
, and
by adding at the end the following new paragraph:
the cellulosic biofuel producer credit.
.
Cellulosic biofuel producer credit
In general
Subsection (b) of section 40 is amended by adding at the end the following new paragraph:
Cellulosic biofuel producer credit
In general
The cellulosic biofuel producer credit of any taxpayer is an amount equal to the applicable amount for each gallon of qualified cellulosic biofuel production.
Applicable amount
For purposes of subparagraph (A), the applicable amount means $1.01, except that such amount shall, in the case of cellulosic biofuel which is alcohol, be reduced by the sum of—
the amount of the credit in effect for such alcohol under subsection (b)(1) (without regard to subsection (b)(3)) at the time of the qualified cellulosic biofuel production, plus
in the case of ethanol, the amount of the credit in effect under subsection (b)(4) at the time of such production.
Qualified cellulosic biofuel production
For purposes of this section, the term qualified cellulosic biofuel production means any cellulosic biofuel which is produced by the taxpayer, and which during the taxable year—
is sold by the taxpayer to another person—
for use by such other person in the production of a qualified cellulosic biofuel mixture in such other person’s trade or business (other than casual off-farm production),
for use by such other person as a fuel in a trade or business, or
who sells such cellulosic biofuel at retail to another person and places such cellulosic biofuel in the fuel tank of such other person, or
is used or sold by the taxpayer for any purpose described in clause (i).
Qualified cellulosic biofuel mixture
For purposes of this paragraph, the term qualified cellulosic biofuel mixture means a mixture of cellulosic biofuel and gasoline or of cellulosic biofuel and a special fuel which—
is sold by the person producing such mixture to any person for use as a fuel, or
is used as a fuel by the person producing such mixture.
Cellulosic biofuel
For purposes of this paragraph—
In general
The term cellulosic biofuel means any liquid fuel which—
is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and
meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U.S.C. 7545).
Exclusion of low-proof alcohol
Such term shall not include any alcohol with a proof of less than 150. The determination of the proof of any alcohol shall be made without regard to any added denaturants.
Allocation of cellulosic biofuel producer credit to patrons of cooperative
Rules similar to the rules under subsection (g)(6) shall apply for purposes of this paragraph.
Registration requirement
No credit shall be determined under this paragraph with respect to any taxpayer unless such taxpayer is registered with the Secretary as a producer of cellulosic biofuel under section 4101.
Application of paragraph
This paragraph shall apply with respect to qualified cellulosic biofuel production after December 31, 2008.
.
Termination date not to apply
Subsection (e) of section 40 is amended—
by inserting
or subsection (b)(6)(H)
after by reason of paragraph
(1)
in paragraph (2), and
by adding at the end the following new paragraph:
Exception for cellulosic biofuel producer credit
Paragraph (1) shall not apply to the portion of the credit allowed under this section by reason of subsection (a)(4).
.
Conforming amendments
Paragraph (1) of section 4101(a) is amended—
by
striking and every person
and inserting , every
person
, and
by
inserting , and every person producing cellulosic biofuel (as defined in
section 40(b)(6)(E))
after section
6426(b)(4)(A))
.
The heading of
section 40, and the item relating to such section in the table of sections for
subpart D of part IV of subchapter A of chapter 1, are each amended by
inserting , etc.,
after Alcohol
.
Biofuel not used as a fuel, etc
In general
Paragraph (3) of section 40(d) is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph:
Cellulosic biofuel producer credit
If—
any credit is allowed under subsection (a)(4), and
any person does not use such fuel for a purpose described in subsection (b)(6)(C),
.
Conforming amendments
Subparagraph (C)
of section 40(d)(3) is amended by striking Producer
in the heading
and inserting Small
ethanol producer
.
Subparagraph (E)
of section 40(d)(3), as redesignated by paragraph (1), is amended by striking
or (C)
and inserting (C), or (D)
.
Biofuel produced in the United States
Section 40(d) is amended by adding at the end the following new paragraph:
Special rule for cellulosic biofuel producer credit
No cellulosic biofuel producer credit shall be determined under subsection (a) with respect to any cellulosic biofuel unless such cellulosic biofuel is produced in the United States and used as a fuel in the United States. For purposes of this subsection, the term United States includes any possession of the United States.
.
Waiver of credit limit for cellulosic biofuel production by small ethanol producers
Section 40(b)(4)(C) is amended by inserting
(determined without regard to any qualified cellulosic biofuel
production)
after 15,000,000 gallons
.
Denial of double benefit
Biodiesel
Paragraph (1) of section 40A(d) is amended by adding at the end the following new flush sentence:
Such term shall not include any liquid with respect to which a credit may be determined under section 40.
.
Renewable diesel
Paragraph (3) of section 40A(f) is amended by adding at the end the following new flush sentence:
Such term shall not include any liquid with respect to which a credit may be determined under section 40.
.
Effective date
The amendments made by this section shall apply to fuel produced after December 31, 2008.
Establish a permanent production tax credit for hydrogen fuels
Hydrogen infrastructure and fuel costs
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:
Hydrogen infrastructure and fuel costs
Allowance of Credit
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—
the hydrogen infrastructure costs credit determined under subsection (b), and
the hydrogen fuel costs credit determined under subsection (c).
Hydrogen Infrastructure Costs Credit
In general
For purposes of subsection (a), the hydrogen infrastructure costs credit determined under this subsection with respect to each eligible hydrogen production and distribution facility of the taxpayer is an amount equal to 30 percent of so much of the infrastructure costs for the taxable year as does not exceed $200,000 with respect to such facility.
Eligible hydrogen production and distribution facility
For purposes of this subsection, the term eligible hydrogen production and distribution facility means a hydrogen production and distribution facility which is placed in service after December 31, 2005.
Hydrogen Fuel Costs Credit
In general
For purposes of subsection (a), the hydrogen fuel costs credit determined under this subsection with respect to each eligible hydrogen device of the taxpayer is an amount equal to the qualified hydrogen expenditure amounts with respect to such device.
Qualified hydrogen expenditure amount
For purposes of this subsection—
In general
The term qualified hydrogen expenditure amount means, with respect to each eligible hydrogen energy conversion device of the taxpayer with a production capacity of not more than 25 kilowatts of electricity, the lesser of—
30 percent of the amount paid or incurred by the taxpayer during the taxable year for hydrogen which is consumed by such device, and
$2,000.
Higher limitation for devices with more production capacity
In the case of any eligible hydrogen energy conversion device with a production capacity of—
more than 25 but
less than 100 kilowatts of electricity, subparagraph (A) shall be applied by
substituting $4,000
for $2,000
each place it
appears, and
not less than 100
kilowatts of electricity, subparagraph (A) shall be applied by substituting
$6,000
for $2,000
each place it appears.
Eligible hydrogen energy conversion devices
For purposes of this subsection—
In general
The term eligible hydrogen energy conversion device means, with respect to any taxpayer, any hydrogen energy conversion device which—
is placed in service after December 31, 2004, and
is wholly owned by the taxpayer during the taxable year.
Hydrogen energy conversion device
The term hydrogen energy conversion device means—
any electrochemical device which converts hydrogen into electricity, and
any combustion engine which burns hydrogen as a fuel.
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.
Application With Other Credits
Business credit treated as part of general business credit
So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to amounts which (but for subsection (g) would be allowed as a deduction under section 162 shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).
Personal credit
The credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of—
the regular tax liability (as defined in section 26(b)) reduced by the sum of the credits allowable under subpart A and sections 27, 30, 30B, and 30C, over
the tentative minimum tax for the taxable year.
Denial of Double Benefit
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.
Recapture
The Secretary shall, by regulations, provided for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
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.
.
Conforming amendments
Section 38(b) of
the Internal Revenue Code of 1986 is amended by striking plus
at
the end of paragraph (32), by striking the period at the end of paragraph (33)
and inserting plus
, and by adding at the end the following new
paragraph:
the portion of the hydrogen infrastructure and fuel credit to which section 30D(e)(1) applies.
.
Section 55(c)(3)
of such Code is amended by inserting 30D(e)(2),
after
30C(d)(2),
.
Section 1016(a) of
such Code 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 30G(d).
.
Section 6501(m) of
such Code is amended by inserting 30D(h),
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. 30G. Hydrogen infrastructure and fuel costs.
.
Effective date
The amendments made by this section shall apply to amounts paid or incurred after December 31, 2007, in taxable years ending after such date.
Rate of credit for alternative fuel vehicle refueling property increased from 30 to 60 percent
In general
Subsection (a) of section 30C of such Code is amended by
striking 30 percent
and inserting 60
percent
.
Repeal of termination
Section 30C of such Code is amended by striking subsection (q).
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Use of CAFÉ penalties to support the Clean Cities Initiative
Section 32912 of title 49, United States Code, is amended by adding at the end the following:
Petroleum Reduction Trust Fund
There is established in the Treasury of the United States a trust fund, to be known as the Petroleum Reduction Trust Fund, consisting of such amounts as are deposited into the Trust Fund under paragraph (2) and any interest earned on investment of amounts in the Trust Fund.
The Secretary of Transportation shall remit 90 percent of the amount collected in civil penalties under this section to the Trust Fund.
The Secretary of Energy may obligate such sums as are available in the Trust Fund for the Clean Cities grant program to increase the number of locations at which consumers may purchase fuel containing ethanol, biodiesel, and other alternative fuels.
.
Exclusion from heavy truck tax for idling reduction units and advanced insulation
In general
Section 4053 is amended by adding at the end the following new paragraphs:
Idling reduction device
Any device or system of devices which
is designed to provide to a vehicle those services (such as heat, air conditioning, or electricity) that would otherwise require the operation of the main drive engine while the vehicle is temporarily parked or remains stationary using one or more devices affixed to a tractor, and
is certified by the Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, to reduce idling of such vehicle at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary.
Advanced insulation
Any insulation that has an R value of not less than R35 per inch.
.
Maintenance of trust funds deposits; amounts appropriated to trust fund treated as taxes
In general
There is hereby appropriated (out of any money in the Treasury not otherwise appropriated) to the Highway Trust Fund which would (but for this subsection) receive reduced revenues as a result of the amendment made by subsection (a) an amount equal to such reduction in revenues. Amounts appropriated by the preceding sentence to any trust fund—
shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred had subsection (a) not been enacted, and
shall be treated for all purposes of Federal law as taxes received under section 4051 of the Internal Revenue Code of 1986.
Effective date
The amendment made by this section shall apply to sales or installations after the date of the enactment of this Act.
Advanced hydrogen storage technologies
In General
The Secretary 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.
Plug-in electric drive vehicle technology program
Battery
In this section, the term battery means a device or system for the electrochemical storage of energy.
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 electric drive vehicles 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 electric drive vehicles, flexible fuel vehicles, and hybrid and lean burn 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 Electric Drive 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 electric drive 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 electric drive 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 electric drive 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 2007 through fiscal year 2011.
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 electric drive vehicles declines or the cost of converting a hybrid electric vehicle to a plug-in electric drive 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), $100,000,000 for fiscal year 2008 and such sums as may be necessary for each of the fiscal years 2009 through 2011; and
for carrying out subsection (d), $50,000,000 for fiscal year 2008 and such sums as may be necessary for each of the fiscal years 2009 through 2011.
Reducing Consumer Energy and Gasoline Costs
Refundable employer credit for providing tax-free transit passes to employees
In general
Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 35 the following new section:
Employers providing tax-free transit passes to employees
In general
In the case of an employer, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 50 percent of the amount paid or incurred by the taxpayer during the taxable year—
for transit passes provided to employees of such employer, and
as cash reimbursements made to such employees for transit passes purchased by such employees.
Limitation to tax-free transit passes
Subsection (a) shall apply to a transit pass (or reimbursement) provided to an employee only to the extent that the employer reasonably expects that the value of such pass (or the amount of such reimbursement) is excludable from such employee’s income under section 132.
Exclusion of nontaxpayers
Subsection (a) shall not apply to any employer which is exempt from the tax imposed by this chapter with respect to the activity in which the employee is performing services for the employer.
Definitions
Terms used in this section shall have the respective meanings given such terms by section 132.
.
Denial of double benefit
Section 280C of such Code is amended by adding at the end the following new subsection:
Employer credit for providing tax-free transit passes to employees
No deduction shall be allowed for that portion of the expenses (otherwise allowable as a deduction) taken into account in determining the credit under section 35A for the taxable year which is equal to the amount of the credit allowable for such taxable year under section 35A(a).
.
Clerical amendment
The table of sections for such subpart C is amended by inserting after the item relating to section 35 the following new item:
Sec. 35A. Employers providing
tax-free transit passes to employees.
.
Effective date
The amendments made by this section shall apply to transit passes provided after the date of the enactment of this Act in taxable years ending after such date.
Reduction in number of boutique fuels
Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended as follows:
By redesignating the clause (v) added by section 1541(b) of the Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 1106) as clause (vi).
In clause (vi) (as so redesignated)—
in subclause (I)
by striking approved under this paragraph as of September 1, 2004, in
all State implementation plans
and by inserting in lieu there of
set forth on the list published under subclause (II) (or on the revised
list referred to in subclause (III) if the list has been revised)
;
by amending subclause (III) to read as follows:
The Administrator shall, after notice and opportunity for comment, remove a fuel from the list published under subclause (II) if the Administrator determines that such fuel has ceased to be included in any State implementation plan or is identical to a Federal fuel control or prohibition promulgated and implemented by the Administrator. The Administrator shall publish a revised list reflecting the reduction in the number of fuels.
; and
by amending subclause (IV) to read as follows:
Subclause (I) shall not limit the Administrator's authority to approve a control or prohibition respecting any new fuel under this paragraph in a State implementation plan or revision to a State implementation plan if such new fuel completely replaces a fuel on the list published under subclause (II) (or the revised list referred to in subclause (III) if the list has been revised) and if the Administrator, after consultation with the Secretary of Energy, publishes in the Federal Register after notice and comment a finding that, in the Administrator's judgment, such control or prohibition respecting such new fuel will not cause fuel supply or distribution interruptions or have a significant adverse impact on fuel producibility in the affected area or contiguous areas.
.
Green schools grant program
Establishment
From the amounts appropriated under subsection (c), the Administrator of the Environmental Protection Agency shall establish a program to make grants of not more than $10,000 to local educational agencies that meet the matching-funds requirement in subsection (b) for each green school construction and improvement project.
Matching funds
To be eligible to receive a grant under subsection (a), a local educational agency shall fund at least 50 percent of the costs of the project described in subsection (a) with non-Federal sources.
Authorization of appropriations
There are authorized to be appropriated to the Administrator of the Environmental Protection Agency for carrying out this section, $5,000,000 for each of the fiscal years 2009 through 2013.
Definitions
For purposes of this section—
the term green school construction and improvements means construction methods, systems, technologies, or facility improvements that create a healthy learning environment while saving natural resources and money, including—
sustainable site improvements;
water conservation strategies or systems;
energy conservation strategies or systems;
sustainable materials, including low-emitting, reused, recycled, regionally harvested, and rapidly renewable materials; and
strategies or systems that improve indoor environmental quality, including improvements to acoustics, ventilation, thermal comfort, daylighting, and mold prevention; and
the term local educational agency has the meaning given that term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).
Extension and greening of qualified zone academy bonds
Extension
Paragraph (1) of 1397E(e) of the Internal
Revenue Code of 1986 (relating to limitation on amount of bonds designated) is
amended by striking 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005,
2006, and 2007
and inserting each of calendar years 1998 through
2012
.
Greening
Paragraph (5) of section 1397E(d) of such Code (defining qualified purpose) is amended by adding at the end the following new sentence:
In the case of bonds issued after the date of the enactment of this sentence, any rehabilitation, repair, or provision of equipment shall be treated as a qualified purpose only if such rehabilitation, repair, or provision, as the case may be, is described in section 403(d) of the Apollo Energy Independence Act of 2008, as in effect on such date.
.
Effective date
The amendment made by subsection (a) shall apply to obligations issued after December 31, 2007.
Study on the reduction of energy costs in public schools
Study
Not later than 3 months after the date of enactment of this Act, the Secretary of Energy, in consultation with the Secretary of Education, shall conduct a study to evaluate the daily and seasonal energy costs in public schools and how such schools can best utilize the public school calendar to reduce such energy costs.
Report
Not later than 2 years after the commencement of the study required by subsection (a), the Secretary of Energy, in consultation with the Secretary of Education, shall submit a report to each House of Congress containing the results of such study and recommendations regarding—
the optimal time public schools in each State should start and end the school day based on the geographic locations of, and average monthly temperatures and other climate factors in the areas surrounding, such schools; and
the optimal school calendar for public schools in each State to reduce the energy costs of such schools by at least 5 percent each calendar year.
Authorization of Appropriations
There are authorized to be appropriated to the Secretary of Energy for carrying out this section, $500,000 for fiscal year 2009, and such sums as are necessary for each fiscal year thereafter.
Definition
For purposes of this section, the term public school has the meaning given such term in section 5145 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7217d).
Ethanol
In general
Subchapter II of chapter 99 of the Harmonized Tariff Schedule of the United States is amended by inserting in numerical sequence the following new heading:
| 9902.05.40 | Ethyl alcohol (provided for in subheadings 2207.10.60 and 2207.20) or any mixture containing such ethyl alcohol (provided for in heading 2710 or 3824) if such ethyl alcohol or mixture is to be used as a fuel or in producing a mixture of gasoline and alcohol, a mixture of a special fuel and alcohol, or any other mixture to be used as fuel (including motor fuel provided for in subheading 2710.11.15, 2710.19.15 or 2710.19.21), or is suitable for any such uses | Free | Free | Free | On or before 12/31/2010 |
.
Effective date
The amendment made by subsection (a) applies with respect to goods entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act.
Effect on heading 9901.00.50
During the period beginning on the effective date under subsection (b) and ending on December 31, 2010, heading 9901.00.50 of the Harmonized Tariff Schedule of the United States is not effective.
Offsets
FY09 cost
Moratorium on consideration of earmarks
In the House
In the 110th Congress, it shall not be in order to consider a bill, joint resolution, amendment, or conference report containing a congressional earmark, limited tax benefit, or limited tariff benefit (as such terms are defined by clause 9 of rule XXI of the Rules of the House of Representatives).
Definition
For purposes of this subsection, the term earmark shall include congressional earmarks, congressionally directed spending items, limited tax benefits, or limited tariff benefits as those terms are defined by clause 9 of rule XXI of the Rules of the House of Representatives and rule XLIV of the Standing Rules of the Senate. Nothing in this subsection shall confine the study of the joint select committee or otherwise limit its recommendations.
Revision of concurrent resolution on the budget
Upon the enactment of this Act, the chairmen of the Committees on the Budget of the House and the Senate shall reduce the allocation of new budget authority and the outlays flowing therefrom to the Committees on Appropriations of the House and the Senate set forth pursuant to section 302(a) of the Congressional Budget Act of 1974 for fiscal year 2009 by $14.8 billion.
The chairmen of the Committees on the Budget of the House and the Senate shall make any other necessary and conforming adjustments in the concurrent resolution on the budget for fiscal year 2009.
Conservation of resources fees
Establishment of Fees
In general
Not later than 60 days after the date of enactment of this Act, the Secretary of the Interior by regulation shall establish—
a conservation of resources fee for producing Federal oil and gas leases in the Gulf of Mexico; and
a conservation of resources fee for nonproducing Federal oil and gas leases in the Gulf of Mexico.
Producing lease fee terms
The fee under paragraph (1)(A)—
subject to subparagraph (C), shall apply to covered leases that are producing leases;
shall be set at $9 per barrel for oil and $1.25 per million Btu for gas, respectively, in 2005 dollars; and
shall apply only to production of oil or gas occurring—
in any calendar year in which the arithmetic average of the daily closing prices for light sweet crude oil on the New York Mercantile Exchange (NYMEX) exceeds $34.73 per barrel for oil and $4.34 per million Btu for gas in 2005 dollars; and
on or after October 1, 2006.
Nonproducing lease fee terms
The fee under paragraph (1)(B)—
subject to subparagraph (C), shall apply to leases that are nonproducing leases;
shall be set at $3.75 per acre per year in 2005 dollars; and
shall apply on and after October 1, 2006.
Treatment of receipts
Amounts received by the United States as fees under this subsection shall be treated as offsetting receipts.
Covered Lease Defined
In this section the term covered lease means a lease for oil or gas production in the Gulf of Mexico that is—
in existence on the date of enactment of this Act;
issued by the Department of the Interior under section 304 of the Outer Continental Shelf Deep Water Royalty Relief Act (43 U.S.C. 1337 note; Public Law 104–58); and
not subject to limitations on royalty relief based on market price that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
Royalty Suspension Provisions
The Secretary of the Interior shall agree to a request by any lessee to amend any lease issued for Central and Western Gulf of Mexico tracts during the period of January 1, 1998, through December 31, 1999, to incorporate price thresholds applicable to royalty suspension provisions, or amend existing price thresholds, in the amount of $34.73 per barrel (2005 dollars) for oil and for natural gas of $4.34 per million Btu (2005 dollars).
Reduction in payment acres for direct and counter-cyclical payments under Department of Agriculture commodity programs
Program crops
Section 1001(11) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702(11)) is amended—
in
subparagraph (A), by striking 85 percent
and inserting 84
percent
; and
in subparagraph (B), by striking
83.3 percent
and inserting 82.3 percent
.
Peanuts
Section 1301(5) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8751(5)) is amended—
in subparagraph
(A), by striking 85 percent
and inserting 84
percent
; and
in subparagraph (B), by striking
83.3 percent
and inserting 82.3 percent
.
Reduction in maximum amount of direct, counter-cyclical, and ACRE payments paid to producers under Department of Agriculture commodity programs
Program crops
Section 1001(b) of the Food Security Act of 1985 (7 U.S.C. 1308(b)) is amended—
in paragraph
(1)(A), by striking $40,000
and inserting
$20,000
;
in paragraph (2), by striking
$65,000
and inserting $32,500
; and
in paragraph (3)(A), by striking
$65,000
and inserting $32,500
.
Peanuts
Section 1001(c) of the Food Security Act of 1985 (7 U.S.C. 1308(b)) is amended—
in paragraph
(1)(A), by striking $40,000
and inserting
$20,000
;
in paragraph (2), by striking
$65,000
and inserting $32,500
; and
in paragraph (3)(A), by striking
$65,000
and inserting $32,500
.
Consolidation of military exchange stores system
Consolidation
Section 2487(b) of title 10, United States Code, is amended—
by redesignating paragraph (2) as paragraph (3); and
by inserting after paragraph (1) the following new paragraph:
Not later than two years after the date of the enactment of the Apollo Energy Independence Act of 2008, the Secretary of Defense shall complete the consolidation of the exchange stores system, including the Army and Air Force Exchange Service, the Navy Exchange Service Command, and Marine Corps exchanges, into a single administrative entity to improve efficiencies and enhance customer service.
.
Operating costs
Section 2491(b) of title 10, United States Code, is amended
by adding at the end the following new sentence: Following consolidation
of the exchange stores system, as required by section 2487(b) of this title,
all operating costs of the exchange stores system shall be covered by sales
revenues generated by the system or other nonappropriated fund
instrumentalities of the Department of Defense.
.
Revised pricing structure for depot-level activities of the Department of Defense
Pricing policy
Chapter 146 of title 10, United States Code, is amended by inserting after section 2470 the following new section:
Depot-level activities of the Department of Defense: pricing policy for services rendered
A depot-level activity of the Department of Defense may charge only for the incremental cost of repairs provided by the depot-level activity instead of including charges for components (called depot-level repairables) for labor, materials, and transportation and a share of the fixed costs of overhead. Fixed costs, including overhead, shall be covered by an annual flat fee to customers.
.
Clerical Amendment
The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2470 the following new item:
2471. Depot-level activities of the Department of Defense: pricing policy for services rendered.
.
Restrict Universal Service Fund support to 2 connections per household
In general
Section 254(c) of the Communications Act of 1934 (47 U.S.C. 254(c)) is amended by adding at the end the following new paragraph:
Exception
In carrying out paragraph (1), the Commission shall promulgate regulations to specifically exclude the receipt of universal service support by any eligible telecommunications carrier where such support would provide for more than 2 connections per household.
.
Disposition of savings
Savings calculation
The Commission shall direct the Administrator to determine the amount of the net savings resulting from the implementation of section 254(c)(4) of the Communications Act of 1934 (as added by subsection (a)).
Remission to the Treasury
The Commission shall direct the Administrator to remit to the Treasury of the United States an amount equivalent to the amount determined under paragraph (1).
No recalculation
The Commission shall direct the Administrator to not make any adjustment to the amount of universal service support contributed by telecommunications carriers under section 254(d) of the Communications Act of 1934 (47 U.S.C. 254(d)) to take into account the cost savings resulting from section 254(c)(4) of such Act.
Definitions
In this section:
Administrator
The term Administrator means the Administrator designated by the Commission to administer Federal universal service support programs pursuant to section 254 of the Communications Act of 1934 (47 U.S.C. 254).
Commission
The term Commission means the Federal Communications Commission.
Improve Treasury payment transaction integrity
Section 1113(k)(1) of the Right to Financial
Privacy Act of 1978 (12 U.S.C. 3413(k)(1)) is amended by inserting or
for purposes of tracing or recovering improper payments and collections by the
Secretary of the Treasury
before the period at the end.
Modernize Treasury cash investment practices
Section 323 of title 31, United States Code, is amended by adding at the end the following new subsection:
Repurchase market investments
In addition to the investments authorized under subsection (a), the Secretary may invest any part of the operating cash of the Treasury in repurchase transactions with acceptable parties in the repurchase market.
.
Food Safety and Inspection Service user fees
The Secretary of Agriculture shall establish and collect user fees for inspection services provided under the Federal Meat Inspection Act (21 U.S.C. 601 et seq.), the Poultry Products Inspection Act (21 U.S.C. 451 et seq.), and the Egg Products Inspection Act (21 U.S.C. 1031 et seq.).