II 

110TH CONGRESS 

1ST SESSION S. 875 

To improve energy security of the United States through a 50 percent 

reduction in the oil intensity of the economy of the United States by 

2030 and the prudent expansion of secure oil supplies, to be achieved 

by raising the fuel efficiency of the vehicular transportation fleet, increasing the availability of alternative fuel sources, fostering responsible oil 

exploration and production, and improving international arrangements 

to secure the global oil supply, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 14, 2007 

Mr. DORGAN (for himself and Mr. CRAIG) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To improve energy security of the United States through 

a 50 percent reduction in the oil intensity of the economy 

of the United States by 2030 and the prudent expansion 

of secure oil supplies, to be achieved by raising the 

fuel efficiency of the vehicular transportation fleet, increasing the availability of alternative fuel sources, fostering responsible oil exploration and production, and 

improving international arrangements to secure the global oil supply, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Security and Fuel Efficiency Energy Act of 2007’’ or the 

4 ‘‘SAFE Energy Act of 2007’’. 

5 (b) TABLE OF CONTENTS.—The table of contents of 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—INCREASED FUEL EFFICIENCY OF THE 

TRANSPORTATION SECTOR 

Sec. 101. Definitions. 

Sec. 102. Annual increase in average fuel economy standards. 

Sec. 103. Tax credits for alternative motor vehicles and fuel-efficient motor vehicles. 

Sec. 104. Advanced technology motor vehicles manufacturing credit. 

Sec. 105. Increase in maximum allowable gross weight for vehicles using the 

National System of Interstate and Defense Highways. 

TITLE II—INCREASED USE OF ALTERNATIVE FUELS AND 

INFRASTRUCTURE 

Sec. 201. Renewable fuel standard. 

Sec. 202. Modification of credit for alternative fuel vehicle refueling property. 

Sec. 203. Ethanol-blend fuel infrastructure. 

Sec. 204. Requirement to increase percentage of dual fueled automobiles. 

Sec. 205. Emerging biofuels. 

Sec. 206. Biodiesel. 

Sec. 207. Unconventional fossil fuels. 

Sec. 208. Study of incentives for renewable fuels. 

TITLE III—DEVELOPMENT AND INVENTORY OF CERTAIN OUTER 

CONTINENTAL SHELF RESOURCES 

Sec. 301. Definition. 

Sec. 302. Authorization of activities and exports involving hydrocarbon resources by United States persons. 

Sec. 303. Travel in connection with authorized hydrocarbon exploration and extraction activities. 

Sec. 304. Moratorium of oil and gas leasing in certain areas of the Gulf of 

Mexico. 

Sec. 305. Inventory of outer Continental Shelf oil and natural gas resources off 

southeastern coast of the United States. 

Sec. 306. Enhanced oil recovery. 

TITLE IV—MANAGEMENT OF ENERGY RISKS 

Sec. 401. Bureau of International Energy Policy. 

Sec. 402. Strategic energy infrastructure equipment reserve. 


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1 TITLE I—INCREASED FUEL EFFI2 CIENCY OF THE TRANSPOR3 TATION SECTOR 

4 SEC. 101. DEFINITIONS. 

5 (a) DEFINITION OF AUTOMOBILE.—Section 

6 32901(a)(3) of title 49, United States Code, is amended— 

7 (1) by striking ‘‘4-wheeled’’; and 

8 (2) by striking ‘‘, and rated at—’’ and all that 

9 follows and inserting a period. 

10 (b) DEFINITION OF PASSENGER AUTOMOBILE.—Sec11 tion 32901(a)(16) of such title is amended by striking 

12 ‘‘decides by regulation—’’ and all that follows through the 

13 period and inserting ‘‘determines by regulation, to have 

14 a significant feature (except 4-wheel drive) designed for 

15 off-highway operation.’’. 

16 (c) FUEL ECONOMY INFORMATION.—Section 

17 32908(a) of such title is amended— 

18 (1) in the subsection header, by striking ‘‘DEFI19 NITIONS’’ and inserting ‘‘DEFINITION’’; and 

20 (2) by striking ‘‘section—’’ and all that follows 

21 through ‘‘(2)’’ and inserting ‘‘section, the term’’. 

22 (d) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect on January 1, 2010, and shall 

24 apply to automobiles manufactured for model year 2012 

25 and for each subsequent model year. 


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1 SEC. 102. ANNUAL INCREASE IN AVERAGE FUEL ECONOMY 

2 STANDARDS. 

3 (a) FUEL EFFICIENCY STANDARDS.— 

4 (1) IN GENERAL.—Section 32902 of title 49, 

5 United States Code, is amended by striking sub6 sections (a) through (c) and inserting the following: 

7 ‘‘(a) IN GENERAL.—Not later than 18 months before 

8 the beginning of each model year beginning with model 

9 year 2012, the Secretary of Transportation, by regulation, 

10 shall prescribe average fuel economy standards for auto11 mobiles manufactured by a manufacturer for that model 

12 year in accordance with subsection (b). The Secretary of 

13 Transportation shall prescribe separate average fuel econ14 omy standards for different classes of automobiles. The 

15 Secretary shall establish average fuel economy standards 

16 for medium-duty trucks that are consistent with the pro17 jected benefits of hybridization. In this section, the term 

18 ‘medium-duty truck’ means a truck (as defined in section 

19 30127) with a gross vehicle weight between 10,000 and 

20 26,000 pounds. 

21 ‘‘(b) ANNUAL INCREASES IN FUEL ECONOMY STAND22 ARDS.— 

23 ‘‘(1) FOR MODEL YEAR 2012.—For model year 

24 2012, the average fuel economy standard for each 

25 class of automobiles shall be the average combined 

26 highway and city miles per gallon performance of all 


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1 automobiles within that class of automobiles in 2011 

(rounded to the nearest 1 2 ⁄10 mile per gallon). 

3 ‘‘(2) FOR MODEL YEARS AFTER MODEL YEAR

4 2012.—For each model year beginning with model 

5 year 2013 and ending with model year 2030, the av6 erage fuel economy attained by the fleet of auto7 mobiles manufactured or sold in the United States 

8 shall be at least 4 percent greater than the average 

9 fuel economy standard for the fleet in the previous 

model year (rounded to the nearest 1 10 ⁄10 mile per gal11 lon). 

12 ‘‘(c) AMENDING FUEL ECONOMY STANDARDS.— 

13 ‘‘(1) IN GENERAL.—Notwithstanding sub14 sections (a) and (b), the Secretary of Transportation 

15 may prescribe an average fuel economy standard for 

16 a class of automobiles in a model year that is lower 

17 than the standard required under subsection (b) if 

18 the Secretary of Transportation, in consultation with 

19 the National Academy of Sciences, determines that 

20 the average fuel economy standard prescribed in ac21 cordance with subsections (a) and (b) for that class 

22 of automobiles in that model year— 

23 ‘‘(A) is technologically not achievable; 

24 ‘‘(B) cannot be achieved without materially 

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1 ufactured or sold in the United States and no 

2 offsetting safety improvements can be prac3 ticably implemented for that model year; or 

4 ‘‘(C) is shown not to be cost effective. 

5 ‘‘(2) MAXIMUM STANDARD.—Any average fuel 

6 economy standard prescribed for a class of auto7 mobiles in a model year under paragraph (1) shall 

8 be the maximum standard that— 

9 ‘‘(A) is technologically achievable; 

10 ‘‘(B) can be achieved without materially 

11 reducing the overall safety of automobiles man12 ufactured or sold in the United States; and 

13 ‘‘(C) is cost effective. 

14 ‘‘(3) CONSIDERATIONS IN DETERMINATION OF

15 COST EFFECTIVENESS.—In determining cost effec16 tiveness under paragraph (1)(C), the Secretary of 

17 Transportation shall take into account the total 

18 value to the United States of reduced petroleum use, 

19 including the value of reducing external costs of pe20 troleum use, using a value for such costs equal to 50 

21 percent of the value of 1 gallon of gasoline saved or 

22 the amount determined in an analysis of the external 

23 costs of petroleum use that considers— 

24 ‘‘(A) value to consumers; 

25 ‘‘(B) economic security; 


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1 ‘‘(C) national security; 

2 ‘‘(D) foreign policy; 

3 ‘‘(E) the impact of oil use— 

4 ‘‘(i) on sustained cartel rents paid to 

5 foreign suppliers; 

6 ‘‘(ii) on long-run potential gross do7 mestic product due to higher normal-mar8 ket oil price levels, including inflationary 

9 impacts; 

10 ‘‘(iii) on import costs, wealth trans11 fers, and potential gross domestic product 

12 due to increased trade imbalances; 

13 ‘‘(iv) on import costs and wealth 

14 transfers during oil shocks; 

15 ‘‘(v) on macroeconomic dislocation 

16 and adjustment costs during oil shocks; 

17 ‘‘(vi) on the cost of existing energy se18 curity policies, including the management 

19 of the Strategic Petroleum Reserve; 

20 ‘‘(vii) on the timing and severity of 

21 the oil peaking problem; 

22 ‘‘(viii) on the risk, probability, size, 

23 and duration of oil supply disruptions; 


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1 ‘‘(ix) on the strategic behavior of the 

2 Organization of the Petroleum Exporting 

3 Countries and long-run oil pricing; 

4 ‘‘(x) on the short term elasticity of en5 ergy demand and the magnitude of price 

6 increases resulting from a supply shock; 

7 ‘‘(xi) on oil imports, military costs, 

8 and related security costs, including intel9 ligence, homeland security, sea lane secu10 rity and infrastructure, and other military 

11 activities; 

12 ‘‘(xii) on oil imports, diplomatic and 

13 foreign policy flexibility, and connections to 

14 geopolitical strife, terrorism, and inter15 national development activities; 

16 ‘‘(xiii) all relevant environmental haz17 ards under the jurisdiction of the Environ18 mental Protection Agency; and 

19 ‘‘(xiv) on well-to-wheels urban and 

20 local air emissions of pollutants and their 

21 uninternalized costs; 

22 ‘‘(F) the impact of the oil or energy inten23 sity of the United States economy on the sensi24 tivity of the economy to oil price changes, in25 cluding the magnitude of gross domestic prodVerDate Aug 31 2005 01:45 Mar 20, 2007 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S875.IS S875

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1 uct losses in response to short term price 

2 shocks or long term price increases; 

3 ‘‘(G) the impact of United States pay4 ments for oil imports on political, economic, and 

5 military developments in unstable or unfriendly 

6 oil-exporting countries; 

7 ‘‘(H) the uninternalized costs of pipeline 

8 and storage oil seepage, and for risk of oil spills 

9 from production, handling, and transport, and 

10 related landscape damage; and 

11 ‘‘(I) additional relevant factors, as deter12 mined by the Secretary. 

13 ‘‘(4) MINIMUM VALUATION.—When considering 

14 the value to consumers of a gallon of gasoline saved, 

15 the Secretary of Transportation may not use a value 

16 less than the greatest of— 

17 ‘‘(A) the average national cost of a gallon 

18 of gasoline sold in the United States during the 

19 12-month period ending on the date on which 

20 the new fuel economy standard is proposed; 

21 ‘‘(B) the most recent weekly estimate by 

22 the Energy Information Administration of the 

23 Department of Energy of the average national 

24 cost of a gallon of gasoline (all grades) sold in 

25 the United States; or 


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1 ‘‘(C) the gasoline prices projected by the 

2 Energy Information Administration for the 20- 

3 year period beginning in the year following the 

4 year in which the standards are established.’’. 

5 (2) CONFORMING AMENDMENTS.—Title 49, 

6 United States Code, is amended— 

7 (A) in section 32902— 

8 (i) in subsection (d) by striking ‘‘sub9 section (b) or (c) of this section’’ and in10 serting ‘‘subsection (a), (b), or (c)’’; 

11 (ii) by striking subsection (f); 

12 (iii) in subsection (g)— 

13 (I) by striking ‘‘subsection (a) or 

14 (d)’’ and inserting ‘‘this section’’; and 

15 (II) by striking ‘‘(and submit the 

16 amendment to Congress when re17 quired under subsection (c)(2) of this 

18 section)’’; and 

19 (iv) in subsection (h) by striking 

20 ‘‘subsections (c), (f), and (g) of this sec21 tion’’ and inserting ‘‘subsections (c) and 

22 (g)’’; 

23 (B) in section 32903— 

24 (i) by striking ‘‘section 32902(b)–(d) 

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1 serting ‘‘subsections (a) through (d) of sec2 tion 32902’’; and 

3 (ii) in subsection (e), by striking ‘‘sec4 tion 32902(a) of this title’’ and inserting 

5 ‘‘subsections (a) through (d) of section 

6 32902’’; and 

7 (C) in section 32904— 

8 (i) in subsection (a)— 

9 (I) by striking ‘‘subject to—’’ 

10 and all that follows through ‘‘(B) sec11 tion 32902(a)–(d) of this title’’ and 

12 inserting ‘‘subject to subsections (a) 

13 through (d) of section 32902’’; and 

14 (II) by redesignating clauses (i) 

15 and (ii) as subparagraphs (A) and 

16 (B), respectively; 

17 (ii) by striking subsection (b); and 

18 (iii) by redesignating subsections (c), 

19 (d), and (e) as subsections (b), (c), and 

20 (d), respectively. 

21 (b) REPEAL OF CREDIT FOR DUAL FUELED AUTO22 MOBILES.— 

23 (1) IN GENERAL.—Section 32905 of title 49, 

24 United States Code, is amended— 


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1 (A) by amending subsection (b) to read as 

2 follows: 

3 ‘‘(b) DUAL FUELED AUTOMOBILES.—The Adminis4 trator of the Environmental Protection Agency shall meas5 ure the fuel economy for any model of dual fueled auto6 mobile manufactured in model year 2012 and any model 

7 year thereafter, in accordance with section 32904.’’; and 

8 (B) by amending subsection (d) to read as 

9 follows: 

10 ‘‘(d) GASEOUS FUEL DUAL FUELED AUTO11 MOBILES.—The Administrator of the Environmental Pro12 tection Agency shall measure the fuel economy for any 

13 model of gaseous fuel dual fueled automobile manufac14 tured in model year 2012 and any model year thereafter, 

15 in accordance with section 32904.’’. 

16 (2) CONFORMING AMENDMENTS.—Such section 

17 32905 is further amended— 

18 (A) by repealing subsection (f); and 

19 (B) redesignating subsections (g) and (h) 

20 as subsections (f) and (g), respectively. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall take effect on January 1, 2010. 


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1 SEC. 103. TAX CREDITS FOR ALTERNATIVE MOTOR VEHI2 CLES AND FUEL-EFFICIENT MOTOR VEHI3 CLES. 

4 (a) MODIFICATIONS TO ALTERNATIVE MOTOR VEHI5 CLE CREDIT.— 

6 (1) ELIMINATION OF LIMITATION ON NUMBER

7 OF NEW QUALIFIED HYBRID AND ADVANCED LEAN

8 BURN TECHNOLOGY VEHICLES ELIGIBLE FOR FULL

9 ALTERNATIVE MOTOR VEHICLE TAX CREDIT.— 

10 (A) IN GENERAL.—Section 30B of the In11 ternal Revenue Code of 1986 is amended— 

12 (i) by striking subsection (f); and 

13 (ii) by redesignating subsections (g) 

14 through (j), as amended by subsection (a), 

15 as subsections (f) through (i), respectively. 

16 (B) CONFORMING AMENDMENTS.— 

17 (i) Paragraphs (4) and (6) of section 

18 30B(g) of such Code, as redesignated by 

19 paragraph (1)(B), are each amended by 

20 striking ‘‘(determined without regard to 

21 subsection (g))’’ and inserting ‘‘(deter22 mined without regard to subsection (f))’’. 

23 (ii) Section 38(b)(25) of such Code is 

24 amended by striking ‘‘section 30B(g)(1)’’ 

25 and inserting ‘‘section 30B(f)(1)’’. 


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1 (iii) Section 55(c)(2) of such Code is 

2 amended by striking ‘‘section 30B(g)(2)’’ 

3 and inserting ‘‘section 30B(f)(2)’’. 

4 (iv) Section 1016(a)(36) of such Code 

5 is amended by striking ‘‘section 

6 30B(h)(4)’’ and inserting ‘‘section 

7 30B(g)(4)’’. 

8 (v) Section 6501(m) of such Code is 

9 amended by striking ‘‘section 30B(h)(9)’’ 

10 and inserting ‘‘section 30B(g)(9)’’. 

11 (C) EFFECTIVE DATE.—The amendments 

12 made by this subsection shall apply to property 

13 placed in service after December 31, 2005, in 

14 taxable years ending after such date. 

15 (2) EXTENSION OF NEW QUALIFIED HYBRID

16 MOTOR VEHICLE CREDIT FOR VEHICLES OVER 8,500

17 POUNDS.—Paragraph (3) of section 30B(i), as re18 designated by subsection (a)(1)(B), is amended by 

19 striking ‘‘2009’’ and inserting ‘‘2011’’. 

20 (3) EFFECTIVE DATE.—The amendments made 

21 by this subsection shall apply to vehicles placed in 

22 service after the date of the enactment of this Act. 

23 (b) CREDIT FOR NEW QUALIFIED FUEL-EFFICIENT

24 VEHICLES PRODUCED AFTER 2010.— 


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1 (1) IN GENERAL.—Subpart B of part IV of 

2 subchapter A of chapter 1 of the Internal Revenue 

3 Code of 1986 is amended by adding at the end the 

4 following new section: 

5 ‘‘SEC. 30D. NEW QUALIFIED FUEL-EFFICIENT MOTOR VEHI6 CLE CREDIT. 

7 ‘‘(a) IN GENERAL.—There shall be allowed as a cred8 it against the tax imposed by this chapter for the taxable 

9 year an amount equal to the amount determined under 

10 subsection (b) with respect to each new qualified fuel-effi11 cient motor vehicle placed in service by the taxpayer dur12 ing the taxable year. 

13 ‘‘(b) CREDIT AMOUNT.— 

14 ‘‘(1) FUEL ECONOMY.— 

15 ‘‘(A) IN GENERAL.—The credit amount de16 termined under this paragraph shall be deter17 mined in accordance with the following table: 

‘‘In the case of a vehicle which achieves a fuel economy (expressed as a percentage of the 2012 model year average fuel 

economy standard) of— 

The credit 

amount is— 

At least 125 percent but less than 150 percent ............................. $400

At least 150 percent but less than 175 percent ............................. $800

At least 175 percent but less than 200 percent ............................. $1,200

At least 200 percent but less than 225 percent ............................. $1,600

At least 220 percent but less than 250 percent ............................. $2,000

At least 250 percent ....................................................................... $2,400. 

18 ‘‘(B) 2012 MODEL YEAR AVERAGE FUEL

19 ECONOMY STANDARD.—For purposes of sub20 paragraph (A), the 2012 model year average 


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1 fuel economy standard with respect to a vehicle 

2 shall be the average fuel economy standard (de3 termined on a gasoline gallon equivalent basis) 

4 for such model year, as prescribed by the Sec5 retary of Transportation under section 32902 

6 of title 49, United States Code, with respect to 

7 the class to which such vehicle belongs. 

8 ‘‘(2) CONSERVATION CREDIT.—The amount de9 termined under paragraph (1) with respect to a new 

10 qualified fuel-efficient motor vehicle shall be in11 creased by the conservation credit amount deter12 mined in accordance with the following table: 

‘‘In the case of a vehicle which achieves a lifetime fuel savings expressed in gallons of gasoline) of— 

The conservation 

credit 

amount is— 

At least 1,200 but less than 1,800 ................................................. $250

At least 1,800 but less than 2,400 ................................................. $500

At least 2,400 but less than 3,000 ................................................. $750

At least 3,000 ................................................................................. $1,000. 

13 ‘‘(c) NEW QUALIFIED FUEL-EFFICIENT MOTOR VE14 HICLE.—For purposes of this section, the term ‘new quali15 fied fuel-efficient motor vehicle’ means a passenger auto16 mobile or a light truck— 

17 ‘‘(1) described in subsections (c)(3), (d)(3), or 

18 (e)(3) of section 30B, 

19 ‘‘(2) which has received a certificate of con20 formity under the Clean Air Act and meets or exVerDate Aug 31 2005 01:45 Mar 20, 2007 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S875.IS S875

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1 ceeds the equivalent qualifying California low emis2 sion vehicle standard under section 243(e)(2) of the 

3 Clean Air Act for that make and model year, and 

4 ‘‘(A) in the case of a vehicle having a gross 

5 vehicle weight rating of 6,000 pounds or less, 

6 the Bin 5 Tier II emission standard established 

7 in regulations prescribed by the Administrator 

8 of the Environmental Protection Agency under 

9 section 202(i) of the Clean Air Act for that 

10 make and model year vehicle, and 

11 ‘‘(B) in the case of a vehicle having a gross 

12 vehicle weight rating of more than 6,000 

13 pounds but not more than 8,500 pounds, the 

14 Bin 8 Tier II emission standard which is so es15 tablished, 

16 ‘‘(3) the original use of which commences with 

17 the taxpayer after December 31, 2010, and 

18 ‘‘(4) which is acquired for use or lease by the 

19 taxpayer and not for resale. 

20 ‘‘(d) OTHER DEFINITIONS.—For purposes of this 

21 section— 

22 ‘‘(1) LIFETIME FUEL SAVINGS.—The term ‘life23 time fuel savings’ means, in the case of any new 

24 qualified fuel-efficient motor vehicle, an amount 

25 equal to the excess (if any) of— 


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1 ‘‘(A) 120,000 divided by the 2012 model 

2 year average fuel economy standard for the ve3 hicle class, over 

4 ‘‘(B) 120,000 divided by the fuel economy 

5 for such vehicle. 

6 ‘‘(2) MOTOR VEHICLE.—The term ‘motor vehi7 cle’ has the meaning given such term by section 

8 30(c)(2). 

9 ‘‘(3) FUEL ECONOMY.—The fuel economy with 

10 respect to any vehicle shall be measured in a manner 

11 which is substantially similar to the manner fuel 

12 economy is measured in accordance with procedures 

13 under part 600 of subchapter Q of chapter I of title 

14 40, Code of Federal Regulations, as in effect on the 

15 date of the enactment of this section. 

16 ‘‘(4) OTHER TERMS.—The terms ‘automobile’, 

17 ‘‘passenger automobile’’, ‘‘medium duty passenger 

18 vehicle’’, ‘‘light truck’’, and ‘manufacturer’ have the 

19 meanings given such terms in regulations prescribed 

20 by the Administrator of the Environmental Protec21 tion Agency for purposes of the administration of 

22 title II of the Clean Air Act (42 U.S.C. 7521 et 

23 seq.). 

24 ‘‘(e) SPECIAL RULES.— 


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1 ‘‘(1) REDUCTION IN BASIS.—For purposes of 

2 this subtitle, the basis of any property for which a 

3 credit is allowable under subsection (a) shall be re4 duced by the amount of such credit so allowed. 

5 ‘‘(2) NO DOUBLE BENEFIT.— 

6 ‘‘(A) COORDINATION WITH OTHER VEHI7 CLE CREDITS.—No credit shall be allowed 

8 under subsection (a) with respect to any new 

9 qualified fuel-efficient motor vehicle for any tax10 able year if a credit is allowed with respect to 

11 such motor vehicle for such taxable year under 

12 section 30 or 30B. 

13 ‘‘(B) OTHER TAX BENEFITS.—The amount 

14 of any deduction or credit (other than the credit 

15 allowable under this section and any credit de16 scribed in subparagraph (A)) allowable under 

17 this chapter with respect to any new qualified 

18 fuel-efficient motor vehicle shall be reduced by 

19 the amount of credit allowed under subsection 

20 (a) for such motor vehicle for such taxable year. 

21 ‘‘(3) PROPERTY USED OUTSIDE THE UNITED

22 STATES, ETC., NOT QUALIFIED.—No credit shall be 

23 allowable under subsection (a) with respect to any 

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1 spect to the portion of the cost of any property 

2 taken into account under section 179. 

3 ‘‘(4) ELECTION NOT TO TAKE CREDIT.—No 

4 credit shall be allowed under subsection (a) for any 

5 vehicle if the taxpayer elects not to have this section 

6 apply to such vehicle. 

7 ‘‘(f) APPLICATION WITH OTHER CREDITS.— 

8 ‘‘(1) BUSINESS CREDIT TREATED AS PART OF

9 GENERAL BUSINESS CREDIT.—So much of the credit 

10 which would be allowed under subsection (a) for any 

11 taxable year (determined without regard to this sub12 section) that is attributable to property of a char13 acter subject to an allowance for depreciation shall 

14 be treated as a credit listed in section 38(b) for such 

15 taxable year (and not allowed under subsection (a)). 

16 ‘‘(2) PERSONAL CREDIT.—The credit allowed 

17 under subsection (a) (after the application of para18 graph (1)) for any taxable year shall not exceed the 

19 excess (if any) of— 

20 ‘‘(A) the regular tax liability (as defined in 

21 section 26(b)) reduced by the sum of the credits 

22 allowable under subpart A and sections 27 and 

23 30, over 

24 ‘‘(B) the tentative minimum tax for the 

25 taxable year. 


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1 ‘‘(g) REGULATIONS.— 

2 ‘‘(1) IN GENERAL.—Except as provided in para3 graph (2), the Secretary shall promulgate such regu4 lations as necessary to carry out the provisions of 

5 this section. 

6 ‘‘(2) COORDINATION IN PRESCRIPTION OF CER7 TAIN REGULATIONS.—The Secretary of the Treas8 ury, in coordination with the Secretary of Transpor9 tation and the Administrator of the Environmental 

10 Protection Agency, shall prescribe such regulations 

11 as necessary to determine whether a motor vehicle 

12 meets the requirements to be eligible for a credit 

13 under this section.’’. 

14 (2) CONFORMING AMENDMENTS.— 

15 (A) Section 1016(a) of the Internal Rev16 enue Code of 1986 is amended by striking 

17 ‘‘and’’ at the end of paragraph (36), by striking 

18 the period at the end of paragraph (37) and in19 serting ‘‘, and’’, and by adding at the end the 

20 following new paragraph: 

21 ‘‘(38) to the extent provided in section 

22 30D(e)(1).’’. 

23 (B) Section 6501(m) of such Code is 

24 amended by inserting ‘‘30D(e)(4),’’ after 

25 ‘‘30C(e)(5),’’. 


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1 (C) The table of sections for subpart B of 

2 part IV of subchapter A of chapter 1 of such 

3 Code is amended by adding at the end the fol4 lowing new item: 

‘‘Sec. 30D. New qualified fuel-efficient motor vehicle credit.’’. 

5 (3) EFFECTIVE DATE.—The amendments made 

6 by this subsection shall apply to vehicles placed in 

7 service after December 31, 2010. 

8 SEC. 104. ADVANCED TECHNOLOGY MOTOR VEHICLES MAN9 UFACTURING CREDIT. 

10 (a) IN GENERAL.—Subpart B of part IV of sub11 chapter A of chapter 1 of the Internal Revenue Code of 

12 1986 (relating to foreign tax credit, etc.), as amended by 

13 this Act, is amended by adding at the end the following 

14 new section: 

15 ‘‘SEC. 30E. ADVANCED TECHNOLOGY MOTOR VEHICLES 

16 MANUFACTURING CREDIT. 

17 ‘‘(a) CREDIT ALLOWED.—There shall be allowed as 

18 a credit against the tax imposed by this chapter for the 

19 taxable year an amount equal to 35 percent of so much 

20 of the qualified investment of an eligible taxpayer for such 

21 taxable year as does not exceed $75,000,000. 

22 ‘‘(b) QUALIFIED INVESTMENT.—For purposes of this 

23 section— 


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1 ‘‘(1) IN GENERAL.—The qualified investment 

2 for any taxable year is equal to the incremental costs 

3 incurred during such taxable year— 

4 ‘‘(A) to re-equip, expand, or establish any 

5 manufacturing facility in the United States of 

6 the eligible taxpayer to produce advanced tech7 nology motor vehicles or to produce eligible 

8 components, 

9 ‘‘(B) for engineering integration performed 

10 in the United States of such vehicles and com11 ponents as described in subsection (d), 

12 ‘‘(C) for research and development per13 formed in the United States related to advanced 

14 technology motor vehicles and eligible compo15 nents, and 

16 ‘‘(D) for employee retraining with respect 

17 to the manufacturing of such vehicles or compo18 nents (determined without regard to wages or 

19 salaries of such retrained employees). 

20 ‘‘(2) ATTRIBUTION RULES.—In the event a fa21 cility of the eligible taxpayer produces both advanced 

22 technology motor vehicles and conventional motor 

23 vehicles, or eligible and non-eligible components, only 

24 the qualified investment attributable to production 


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1 of advanced technology motor vehicles and eligible 

2 components shall be taken into account. 

3 ‘‘(c) ADVANCED TECHNOLOGY MOTOR VEHICLES

4 AND ELIGIBLE COMPONENTS.—For purposes of this sec5 tion— 

6 ‘‘(1) ADVANCED TECHNOLOGY MOTOR VEHI7 CLE.—The term ‘advanced technology motor vehicle’ 

8 means— 

9 ‘‘(A) any qualified electric vehicle (as de10 fined in section 30(c)(1)), 

11 ‘‘(B) any new qualified fuel cell motor ve12 hicle (as defined in section 30B(b)(3)), 

13 ‘‘(C) any new advanced lean burn tech14 nology motor vehicle (as defined in section 

15 30B(c)(3)), 

16 ‘‘(D) any new qualified hybrid motor vehi17 cle (as defined in section 30B(d)(2)(A) and de18 termined without regard to any gross vehicle 

19 weight rating), 

20 ‘‘(E) any new qualified alternative fuel 

21 motor vehicle (as defined in section 30B(e)(4), 

22 including any mixed-fuel vehicle (as defined in 

23 section 30B(e)(5)(B)), 


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1 ‘‘(F) any other motor vehicle using electric 

2 drive transportation technology (as defined in 

3 paragraph (3)), and 

4 ‘‘(G) any new qualified fuel-efficient motor 

5 vehicle (as defined in section 30D(c)). 

6 ‘‘(2) ELIGIBLE COMPONENTS.—The term ‘eligi7 ble component’ means any component inherent to 

8 any advanced technology motor vehicle, including— 

9 ‘‘(A) with respect to any gasoline or diesel10 electric new qualified hybrid motor vehicle— 

11 ‘‘(i) electric motor or generator, 

12 ‘‘(ii) power split device, 

13 ‘‘(iii) power control unit, 

14 ‘‘(iv) power controls, 

15 ‘‘(v) integrated starter generator, or 

16 ‘‘(vi) battery, 

17 ‘‘(B) with respect to any hydraulic new 

18 qualified hybrid motor vehicle— 

19 ‘‘(i) hydraulic accumulator vessel, 

20 ‘‘(ii) hydraulic pump, or 

21 ‘‘(iii) hydraulic pump-motor assembly, 

22 ‘‘(C) with respect to any new advanced 

23 lean burn technology motor vehicle— 

24 ‘‘(i) diesel engine, 

25 ‘‘(ii) turbocharger, 


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1 ‘‘(iii) fuel injection system, or 

2 ‘‘(iv) after-treatment system, such as 

3 a particle filter or NOX absorber, and 

4 ‘‘(D) with respect to any advanced tech5 nology motor vehicle, any other component sub6 mitted for approval by the Secretary. 

7 ‘‘(3) ELECTRIC DRIVE TRANSPORTATION TECH8 NOLOGY.—The term ‘electric drive transportation 

9 technology’ means technology used by vehicles that 

10 use an electric motor for all or part of their motive 

11 power and that may or may not use off-board elec12 tricity, such as battery electric vehicles, fuel cell ve13 hicles, engine dominant hybrid electric vehicles, plug14 in hybrid electric vehicles, and plug-in hybrid fuel 

15 cell vehicles. 

16 ‘‘(d) ENGINEERING INTEGRATION COSTS.—For pur17 poses of subsection (b)(1)(B), costs for engineering inte18 gration are costs incurred prior to the market introduction 

19 of advanced technology vehicles for engineering tasks re20 lated to— 

21 ‘‘(1) establishing functional, structural, and 

22 performance requirements for component and sub23 systems to meet overall vehicle objectives for a spe24 cific application, 


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1 ‘‘(2) designing interfaces for components and 

2 subsystems with mating systems within a specific ve3 hicle application, 

4 ‘‘(3) designing cost effective, efficient, and reli5 able manufacturing processes to produce components 

6 and subsystems for a specific vehicle application, 

7 and 

8 ‘‘(4) validating functionality and performance of 

9 components and subsystems for a specific vehicle ap10 plication. 

11 ‘‘(e) ELIGIBLE TAXPAYER.—For purposes of this sec12 tion, the term ‘eligible taxpayer’ means any taxpayer if 

13 more than 50 percent of its gross receipts for the taxable 

14 year is derived from the manufacture of motor vehicles 

15 or any component parts of such vehicles. 

16 ‘‘(f) LIMITATION BASED ON AMOUNT OF TAX.—The 

17 credit allowed under subsection (a) for the taxable year 

18 shall not exceed the excess of— 

19 ‘‘(1) the sum of— 

20 ‘‘(A) the regular tax liability (as defined in 

21 section 26(b)) for such taxable year, plus 

22 ‘‘(B) the tax imposed by section 55 for 

23 such taxable year and any prior taxable year 

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1 count under section 53 for any prior taxable 

2 year, over 

3 ‘‘(2) the sum of the credits allowable under sub4 part A and sections 27, 30, and 30B for the taxable 

5 year. 

6 ‘‘(g) REDUCTION IN BASIS.—For purposes of this 

7 subtitle, if a credit is allowed under this section for any 

8 expenditure with respect to any property, the increase in 

9 the basis of such property which would (but for this para10 graph) result from such expenditure shall be reduced by 

11 the amount of the credit so allowed. 

12 ‘‘(h) NO DOUBLE BENEFIT.— 

13 ‘‘(1) COORDINATION WITH OTHER DEDUCTIONS

14 AND CREDITS.—Except as provided in paragraph 

15 (2), the amount of any deduction or other credit al16 lowable under this chapter for any cost taken into 

17 account in determining the amount of the credit 

18 under subsection (a) shall be reduced by the amount 

19 of such credit attributable to such cost. 

20 ‘‘(2) RESEARCH AND DEVELOPMENT COSTS.— 

21 ‘‘(A) IN GENERAL.—Except as provided in 

22 subparagraph (B), any amount described in 

23 subsection (b)(1)(C) taken into account in de24 termining the amount of the credit under sub25 section (a) for any taxable year shall not be 


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1 taken into account for purposes of determining 

2 the credit under section 41 for such taxable 

3 year. 

4 ‘‘(B) COSTS TAKEN INTO ACCOUNT IN DE5 TERMINING BASE PERIOD RESEARCH EX6 PENSES.—Any amounts described in subsection 

7 (b)(1)(C) taken into account in determining the 

8 amount of the credit under subsection (a) for 

9 any taxable year which are qualified research 

10 expenses (within the meaning of section 41(b)) 

11 shall be taken into account in determining base 

12 period research expenses for purposes of apply13 ing section 41 to subsequent taxable years. 

14 ‘‘(i) BUSINESS CARRYOVERS ALLOWED.—If the cred15 it allowable under subsection (a) for a taxable year exceeds 

16 the limitation under subsection (f) for such taxable year, 

17 such excess (to the extent of the credit allowable with re18 spect to property subject to the allowance for depreciation) 

19 shall be allowed as a credit carryback and carryforward 

20 under rules similar to the rules of section 39. 

21 ‘‘(j) SPECIAL RULES.—For purposes of this section, 

22 rules similar to the rules of section 179A(e)(4) and para23 graphs (1) and (2) of section 41(f) shall apply 

24 ‘‘(k) ELECTION NOT TO TAKE CREDIT.—No credit 

25 shall be allowed under subsection (a) for any property if 


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1 the taxpayer elects not to have this section apply to such 

2 property. 

3 ‘‘(l) REGULATIONS.—The Secretary shall prescribe 

4 such regulations as necessary to carry out the provisions 

5 of this section. 

6 ‘‘(m) TERMINATION.—This section shall not apply to 

7 any qualified investment after December 31, 2010.’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Section 1016(a) of the Internal Revenue 

10 Code of 1986 is amended by striking ‘‘and’’ at the 

11 end of paragraph (36), by striking the period at the 

12 end of paragraph (37) and inserting ‘‘, and’’, and by 

13 adding at the end the following new paragraph: 

14 ‘‘(38) to the extent provided in section 

15 30E(g).’’. 

16 (2) Section 6501(m) of such Code is amended 

17 by inserting ‘‘30E(k),’’ after ‘‘30C(e)(5),’’. 

18 (3) The table of sections for subpart B of part 

19 IV of subchapter A of chapter 1 of such Code is 

20 amended by inserting after the item relating to sec21 tion 30D the following new item: 

‘‘Sec. 30E. Advanced technology motor vehicles manufacturing credit.’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to amounts incurred in taxable 

24 years beginning after December 31, 2006. 


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1 SEC. 105. INCREASE IN MAXIMUM ALLOWABLE GROSS 

2 WEIGHT FOR VEHICLES USING THE NA3 TIONAL SYSTEM OF INTERSTATE AND DE4 FENSE HIGHWAYS. 

5 (a) SPECIAL RULE FOR VEHICLES WITH A SUPPLE6 MENTARY SIXTH AXLE.—Not later than 180 days after 

7 the Secretary of Transportation makes a positive deter8 mination under subsection (d), the Secretary of Transpor9 tation shall promulgate regulations, in accordance with 

10 section 127(a) of title 23, United States Code, that set 

11 the maximum allowable gross weight for a vehicle using 

12 the National System of Interstate and Defense Highways 

13 at 97,000 pounds for vehicles with a supplementary sixth 

14 axle. 

15 (b) CONDITIONS ON REGULATIONS.—The regulations 

16 promulgated under subsection (a)— 

17 (1) shall ensure that a loaded tractor trailer 

18 with a supplementary sixth axle and a gross weight 

19 of not more than 97,000 pounds that is traveling at 

20 60 miles per hour has a stopping distance of not 

21 greater than 355 feet; and 

22 (2) shall not require a fundamental alteration 

23 of the vehicle architecture that is common for use in 

24 the transportation of goods as of the day before the 

25 date of the enactment of this Act. 


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1 (c) STUDY.—The Secretary of Transportation shall 

2 conduct a study that— 

3 (1) analyzes the safety impacts of allowing sig4 nificantly longer and heavier vehicles to use the Na5 tional System of Interstate and Defense Highways 

6 than are allowed under regulations in effect as of 

7 the day before the date of the enactment of this Act; 

8 and 

9 (2) considers the potential impact on highway 

10 safety of applying lower speed limits on such vehicles 

11 than the limits in effect on the day before the date 

12 of the enactment of this Act. 

13 (d) DETERMINATION.—Not later than 180 days after 

14 the date of the enactment of this Act, the Secretary of 

15 Transportation shall determine whether allowing signifi16 cantly longer and heavier vehicles to use the National Sys17 tem of Interstate and Defense Highways than are allowed 

18 as of the day before the date of the enactment of this Act 

19 would have a material impact on highway safety. 

20 TITLE II—INCREASED USE OF 

21 ALTERNATIVE FUELS AND IN22 FRASTRUCTURE 

23 SEC. 201. RENEWABLE FUEL STANDARD. 

24 Section 211(o) of the Clean Air Act (42 U.S.C. 

25 7545(o) is amended— 


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1 (1) in paragraph (2)(B)— 

2 (A) by striking clause (i) and inserting the 

3 following: 

4 ‘‘(i) CALENDAR YEARS 2006 THROUGH

5 2020.— 

6 ‘‘(I) RENEWABLE FUEL.—For 

7 the purpose of subparagraph (A), sub8 ject to subclause (II), the applicable 

9 total volume for any of calendar years 

10 2006 through 2020 shall be deter11 mined in accordance with the fol12 lowing table: 

Applicable total volume of 

renewable fuel 

‘‘Calendar year: (in billions of gallons): 

2006 ................................................................................................... 4.0

2007 ................................................................................................... 4.7

2008 ................................................................................................... 7.1

2009 ................................................................................................... 9.5

2010 ................................................................................................... 12.0

2011 ................................................................................................... 12.6

2012 ................................................................................................... 13.2

2013 ................................................................................................... 13.8

2014 ................................................................................................... 14.4

2015 ................................................................................................... 15.0

2016 ................................................................................................... 18.0

2017 ................................................................................................... 21.0

2018 ................................................................................................... 24.0

2019 ................................................................................................... 27.0

2020 ................................................................................................... 30.0. 

13 ‘‘(II) CELLULOSIC BIOMASS ETH14 ANOL.—For the purpose of paragraph 

15 (1), of the total volume of renewable 

16 fuel required under subclause (I), the 

17 applicable volume for any of calendar 


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1 years 2012 through 2020 for cellulosic 

2 biomass ethanol shall be determined 

3 in accordance with the following table: 

Applicable volume of 

cellulosic biomass ethanol 

‘‘Calendar year: (in billions of gallons): 

2012 ................................................................................................... 0.25

2013 ................................................................................................... 1.0

2014 ................................................................................................... 3.0

2015 ................................................................................................... 5.0

2016 ................................................................................................... 7.0

2017 ................................................................................................... 9.0

2018 ................................................................................................... 11.0

2019 ................................................................................................... 13.0

2020 ................................................................................................... 15.0’’; 

4 (B) in clause (ii)— 

5 (i) in the clause heading, by striking 

6 ‘‘2013’’ and inserting ‘‘2021’’; 

7 (ii) by striking ‘‘2013’’ and inserting 

8 ‘‘2021’’; and 

9 (iii) by striking ‘‘2012’’ and inserting 

10 ‘‘2020’’; 

11 (C) in clause (iii), by striking ‘‘there12 after—’’ and all that follows through ‘‘(II) the’’ 

13 and inserting ‘‘thereafter, the’’; 

14 (D) in clause (iv)— 

15 (i) by striking ‘‘2013’’ and inserting 

16 ‘‘2021’’; and 

17 (ii) in subclause (II)(bb), by striking 

18 ‘‘2012’’ and inserting ‘‘2020’’; 

19 (2) in paragraph (3)— 


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1 (A) in subparagraph (A), by striking 

2 ‘‘2011’’ and inserting ‘‘2019’’; and 

3 (B) in subparagraph (B)(i), by striking 

4 ‘‘2012’’ and inserting ‘‘2020’’; and 

5 (3) in paragraph (6)(A), by striking ‘‘2012’’ 

6 and inserting ‘‘2020’’. 

7 SEC. 202. MODIFICATION OF CREDIT FOR ALTERNATIVE 

8 FUEL VEHICLE REFUELING PROPERTY. 

9 (a) INCREASE IN CREDIT AMOUNT.— 

10 (1) IN GENERAL.—Subsection (a) of section 

11 30C of the Internal Revenue Code of 1986 (relating 

12 to alternative fuel vehicle refueling property credit) 

13 is amended by striking ‘‘30 percent’’ and inserting 

14 ‘‘35 percent’’. 

15 (2) FURTHER INCREASE FOR BLENDER

16 PUMPS.— 

17 (A) IN GENERAL.—Section 30C(a) of such 

18 Code, as amended by paragraph (1), is amend19 ed by inserting ‘‘(40 percent in the case of any 

20 qualified alternative fuel vehicle refueling prop21 erty which is a blender pump)’’ after ‘‘prop22 erty’’. 

23 (B) BLENDER PUMP.—Section 30C(c) of 

24 such Code is amended by adding at the end the 

25 following new paragraph: 


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1 ‘‘(3) BLENDER PUMP.—The term ‘blender 

2 pump’ means any fuel pump which, with respect to 

3 any fuel described in paragraph (1)(A)(i)— 

4 ‘‘(A) sources ethanol and gasoline products 

5 from separate underground storage tanks, 

6 ‘‘(B) incorporates the use of inlet valves 

7 from such tanks to enable varying amounts of 

8 ethanol and gasoline products to be blended 

9 within a chamber in the pump, and 

10 ‘‘(C) dispenses the various blends of eth11 anol and gasoline products through separate 

12 hoses.’’. 

13 (b) CREDIT ALLOWED FOR BLENDED ETHANOL

14 OTHER THAN E85.—Subparagraph (A) of section 

15 30C(c)(1) of the Internal Revenue Code of 1986 (defining 

16 qualified alternative fuel vehicle refueling property) is 

17 amended to read as follows: 

18 ‘‘(A) at least— 

19 ‘‘(i) 11 percent of the volume of which 

20 consists of ethanol, or 

21 ‘‘(ii) 85 percent of the volume of 

22 which consists of one or more of the fol23 lowing: natural gas, compressed natural 

24 gas, liquefied natural gas, liquified petro25 leum gas, or hydrogen, or’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

4 SEC. 203. ETHANOL-BLEND FUEL INFRASTRUCTURE. 

5 Section 211(o) of the Clean Air Act (42 U.S.C. 

6 7545(o)) is amended by adding at the end the following: 

7 ‘‘(11) INSTALLATION OF ETHANOL-BLEND

8 FUEL PUMPS BY COVERED OWNERS AT STATIONS.— 

9 ‘‘(A) DEFINITIONS.—In this paragraph: 

10 ‘‘(i) COVERED OWNER.—The term 

11 ‘covered owner’ means any person that, in12 dividually or together with any other per13 son with respect to which the person has 

14 an affiliate relationship or significant own15 ership interest, owns 10 or more retail sta16 tion outlets, as determined by the Sec17 retary. 

18 ‘‘(ii) ETHANOL-BLEND FUEL.—The 

19 term ‘ethanol-blend fuel’ means a blend of 

20 gasoline not more than 85 percent, nor less 

21 than 80 percent, of the content of which is 

22 derived from ethanol produced in the 

23 United States, as defined by the Secretary 

24 in a manner consistent with applicable 


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1 standards of the American Society for 

2 Testing and Materials. 

3 ‘‘(iii) SECRETARY.—The term ‘Sec4 retary’ means the Secretary of Energy, 

5 acting in consultation with the Adminis6 trator and the Secretary of Agriculture. 

7 ‘‘(B) ASSESSMENT.—Not later than 5 

8 years after the date of enactment of this para9 graph, the Secretary shall make an assessment 

10 of the progress made toward the creation of 

11 adequate infrastructure for the production and 

12 distribution of ethanol-blend fuel (including the 

13 creation of adequate qualified alternative fuel 

14 vehicle refueling property that is a blender 

15 pump). 

16 ‘‘(C) REGULATIONS.—If the Secretary de17 termines (in the assessment made under sub18 paragraph (B)) that adequate progress has not 

19 been made toward the creation of adequate in20 frastructure for the production and distribution 

21 of ethanol-blend fuel, the Secretary shall pro22 mulgate regulations to ensure, to the maximum 

23 extent practicable, that each covered owner in24 stalls or otherwise makes available 1 or more 

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1 ing any other equipment necessary, such as 

2 tanks, to ensure that the pumps function prop3 erly) at not less than the applicable percentage 

4 of the retail station outlets of the covered owner 

5 specified in subparagraph (D). 

6 ‘‘(D) APPLICABLE PERCENTAGES.—For 

7 the purpose of subparagraph (C), the applicable 

8 percentage of the retail station outlets shall 

9 be— 

10 ‘‘(i) during the 10-year period begin11 ning on the date of any determination 

12 made under subparagraph (C), 10 percent; 

13 and 

14 ‘‘(ii) after the 10-year period de15 scribed in clause (i), 20 percent. 

16 ‘‘(E) FINANCIAL RESPONSIBILITY.—In 

17 promulgating regulations under subparagraph 

18 (C), the Secretary shall ensure that each cov19 ered owner described in that subparagraph as20 sumes full financial responsibility for the costs 

21 of installing or otherwise making available the 

22 pumps described in that subparagraph and any 

23 other equipment necessary (including tanks) to 

24 ensure that the pumps function properly. 


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1 ‘‘(F) PRODUCTION CREDITS FOR EXCEED2 ING ETHANOL-BLEND FUEL PUMPS INSTALLA3 TION REQUIREMENT.— 

4 ‘‘(i) EARNING AND PERIOD FOR AP5 PLYING CREDITS.—If the percentage of the 

6 retail station outlets of a covered owner at 

7 which the covered owner installs ethanol8 blend fuel pumps in a particular calendar 

9 year exceeds the percentage required under 

10 subparagraph (D), the covered owner shall 

11 earn credits under this paragraph, which 

12 may be applied to any of the 3 consecutive 

13 calendar years immediately after the cal14 endar year for which the credits are 

15 earned. 

16 ‘‘(ii) TRADING CREDITS.—A covered 

17 owner that has earned credits under clause 

18 (i) may sell credits to another covered 

19 owner to enable the purchaser to meet the 

20 requirement under subparagraph (D).’’. 

21 SEC. 204. REQUIREMENT TO INCREASE PERCENTAGE OF 

22 DUAL FUELED AUTOMOBILES. 

23 (a) IN GENERAL.—Section 32902 of title 49, United 

24 States Code, is amended by inserting after subsection (e) 

25 the following: 


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1 ‘‘(f) REQUIREMENT FOR ANNUAL INCREASE IN DUEL

2 FUELED AUTOMOBILES.—Each manufacturer shall en3 sure that the percentage of automobiles manufactured by 

4 such manufacturer in each of model years 2012 through 

5 2022 that are dual fueled automobiles is not less than 10 

6 percentage points greater than the percentage of auto7 mobiles manufactured by such manufacturer in the pre8 vious model year that are dual fueled automobiles.’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 subsection (a) shall take effect on the date specified in 

11 section 102(c). 

12 SEC. 205. EMERGING BIOFUELS. 

13 (a) ESTABLISHMENT OF INCENTIVE PROGRAM.—The 

14 Secretary of Energy (referred to in this section as the 

15 ‘‘Secretary’’) shall establish a program under which the 

16 Secretary shall provide to eligible entities such incentives 

17 (including grants, tax credits, loans, and loan guarantees) 

18 as the Secretary determines to be appropriate for the pro19 duction of cellulosic ethanol and other emerging biofuels 

20 derived from renewable sources (including municipal solid 

21 waste). 

22 (b) APPLICATION.—To be eligible to receive an incen23 tive under this section, an eligible entity shall submit to 

24 the Secretary an application at such time, in such manner, 


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1 and containing such information as the Secretary may re2 quire, including— 

3 (1) a description of the project for which the in4 centive will be used; 

5 (2) a description of the use by the eligible enti6 ty of the incentive; and 

7 (3) an estimate of the annual production using 

8 the incentive by the eligible entity of cellulosic eth9 anol or another biofuel, expressed on a per-gallon 

10 basis. 

11 (c) SELECTION REQUIREMENTS.— 

12 (1) MINIMUM NUMBER OF INCENTIVES.—The 

13 Secretary shall provide incentives under this section 

14 to not less than 6 biorefineries located in different 

15 regions of the United States. 

16 (2) LEAST-COST INCENTIVES.—The Secretary 

17 shall provide incentives under this section only to eli18 gible entities the applications of which reflect the 

19 least-cost use of the incentives, on a per-gallon basis, 

20 with respect to similar projects. 

21 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

22 authorized to be appropriated to carry out this section 

23 $500,000,000. 


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1 SEC. 206. BIODIESEL. 

2 (a) IN GENERAL.—Not later than 180 days after the 

3 date of enactment of this Act, the Secretary of Energy 

4 shall submit to Congress a report on any research and 

5 development challenges inherent in increasing to 5 percent 

6 the proportion of diesel fuel sold in the United States that 

7 is biodiesel, as defined in section 757 of the Energy Policy 

8 Act of 2005 (42 U.S.C. 16105). 

9 (b) REGULATIONS.—The Administrator of the Envi10 ronmental Protection Agency shall promulgate regulations 

11 providing for the uniform labeling of biodiesel blends that 

12 are certified to meet applicable standards published by the 

13 American Society for Testing and Materials. 

14 SEC. 207. UNCONVENTIONAL FOSSIL FUELS. 

15 (a) IN GENERAL.—The Secretary of Energy shall 

16 carry out a 10-year carbon capture research and develop17 ment program to develop carbon dioxide capture tech18 nologies that can be used in the recovery of liquid fuels 

19 from oil shale and the production of liquid fuels in coal 

20 utilization facilities to minimize the emissions of carbon 

21 dioxide from those processes. 

22 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

23 are authorized to be appropriated to carry out this sec24 tion— 

25 (1) $50,000,000 for the period of fiscal years 

26 2008 through 2012; and 


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1 (2) $100,000,000 for the period of fiscal years 

2 2013 through 2017. 

3 SEC. 208. STUDY OF INCENTIVES FOR RENEWABLE FUELS. 

4 (a) STUDY.—The Secretary of Agriculture (in con5 sultation with the Secretary of Energy, the Secretary of 

6 the Treasury, the Administrator of the Environmental 

7 Protection Agency, representatives of the biofuels indus8 try, the oil industry, and other interested parties) shall 

9 conduct a study of the renewable fuels industry and mar10 kets in the United States, including— 

11 (1) the costs to produce corn-based and cel12 lulosic-based ethanol and biobutanol, biodiesel, and 

13 other emerging biofuels; 

14 (2) the factors affecting the future market 

15 prices for those biofuels, including world oil prices; 

16 and 

17 (3) the level of tax incentives necessary, to the 

18 maximum extent practicable, to grow the biofuels in19 dustry of the United States to reduce the depend20 ence of the United States on foreign oil during cal21 endar years 2011 through 2030. 

22 (b) GOALS.—The study shall include an analysis of 

23 the types and advantages and disadvantages of tax incen24 tive options to, to the maximum extent practicable— 


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1 (1) limit the overall cost of the tax incentives to 

2 the Federal Government; 

3 (2) encourage expansion of the biofuels industry 

4 by ensuring that new plants and recently-built plants 

5 can fully amortize the investments in the plants; 

6 (3) reward energy-efficient and low carbon7 emitting technologies; 

8 (4) ensure that pioneering processes (such as 

9 those that convert cellulosic feedstocks like corn sto10 ver and switch grass to ethanol) are economically 

11 competitive with fossil fuels; 

12 (5) encourage agricultural producer equity par13 ticipation in ethanol plants; and 

14 (6) encourage the development of higher blend 

15 markets, such as E–20, E–30, and E–85. 

16 (c) REPORT.—Not later than 1 year after the date 

17 of enactment of this Act, the Secretary of Agriculture shall 

18 submit a report that describes the results of the study 

19 to— 

20 (1) the Committee on Agriculture, Nutrition, 

21 and Forestry of the Senate; 

22 (2) the Committee on Energy and Natural Re23 sources of the Senate; 

24 (3) the Committee on Environment and Public 

25 Works of the Senate; 


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1 (4) the Committee on Finance of the Senate; 

2 (5) the Committee on Agriculture of the House 

3 of Representatives; 

4 (6) the Committee on Energy and Commerce of 

5 the House of Representatives; and 

6 (7) the Committee on Ways and Means of the 

7 House of Representatives. 

8 TITLE III—DEVELOPMENT AND 

9 INVENTORY OF CERTAIN 

10 OUTER CONTINENTAL SHELF 

11 RESOURCES 

12 SEC. 301. DEFINITION. 

13 In this title, the term ‘‘United States person’’ 

14 means— 

15 (1) any United States citizen or alien lawfully 

16 admitted for permanent residence in the United 

17 States; and 

18 (2) any person other than an individual, if 1 or 

19 more individuals described in paragraph (1) own or 

20 control at least 51 percent of the securities or other 

21 equity interest in the person. 


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1 SEC. 302. AUTHORIZATION OF ACTIVITIES AND EXPORTS 

2 INVOLVING HYDROCARBON RESOURCES BY 

3 UNITED STATES PERSONS. 

4 Notwithstanding any other provision of law (includ5 ing a regulation), United States persons (including agents 

6 and affiliates of those United States persons) may— 

7 (1) engage in any transaction necessary for the 

8 exploration for and extraction of hydrocarbon re9 sources from any portion of any foreign exclusive 

10 economic zone that is contiguous to the exclusive 

11 economic zone of the United States; and 

12 (2) export without license authority all equip13 ment necessary for the exploration for or extraction 

14 of hydrocarbon resources described in paragraph (1). 

15 SEC. 303. TRAVEL IN CONNECTION WITH AUTHORIZED HY16 DROCARBON EXPLORATION AND EXTRAC17 TION ACTIVITIES. 

18 Section 910 of the Trade Sanctions Reform and Ex19 port Enhancement Act of 2000 (22 U.S.C. 7209) is 

20 amended by inserting after subsection (b) the following: 

21 ‘‘(c) GENERAL LICENSE AUTHORITY FOR TRAVEL22 RELATED EXPENDITURES BY PERSONS ENGAGING IN

23 HYDROCARBON EXPLORATION AND EXTRACTION ACTIVI24 TIES.— 

25 ‘‘(1) IN GENERAL.—The Secretary of the 

26 Treasury shall, authorize under a general license the 


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1 travel-related transactions listed in section 

2 515.560(c) of title 31, Code of Federal Regulations, 

3 for travel to, from or within Cuba in connection with 

4 exploration for and the extraction of hydrocarbon re5 sources in any part of a foreign maritime Exclusive 

6 Economic Zone that is contiguous to the United 

7 States’ Exclusive Economic Zone. 

8 ‘‘(2) PERSONS AUTHORIZED.—Persons author9 ized to travel to Cuba under this section include full10 time employees, executives, agents, and consultants 

11 of oil and gas producers, distributors, and ship12 pers.’’. 

13 SEC. 304. MORATORIUM OF OIL AND GAS LEASING IN CER14 TAIN AREAS OF THE GULF OF MEXICO. 

15 (a) IN GENERAL.—Section 104(a) of the Gulf of 

16 Mexico Energy Security Act of 2006 (43 U.S.C. 1331 

17 note; Public Law 109–432) is amended— 

18 (1) by striking paragraph (1); 

19 (2) in paragraph (2), by striking ‘‘125 miles’’ 

20 and inserting ‘‘45 miles’’; 

21 (3) in paragraph (3), by striking ‘‘100 miles’’ 

22 each place it appears and inserting ‘‘45 miles’’; and 

23 (4) by redesignating paragraphs (2) and (3) as 

24 paragraphs (1) and (2), respectively. 

25 (b) REGULATIONS.— 


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1 (1) IN GENERAL.—The Secretary of the Inte2 rior shall promulgate regulations that establish ap3 propriate environmental safeguards for the explo4 ration and production of oil and natural gas on the 

5 outer Continental Shelf. 

6 (2) MINIMUM REQUIREMENTS.—At a minimum, 

7 the regulations shall include— 

8 (A) provisions requiring surety bonds of 

9 sufficient value to ensure the mitigation of any 

10 foreseeable incident; 

11 (B) provisions assigning liability to the 

12 leaseholder in the event of an incident causing 

13 damage or loss, regardless of the negligence of 

14 the leaseholder or lack of negligence; 

15 (C) provisions no less stringent than those 

16 contained in the Spill Prevention, Control, and 

17 Countermeasure regulations promulgated under 

18 the Oil Pollution Act of 1990 (33 U.S.C. 2701 

19 et seq.); 

20 (D) provisions ensuring that— 

21 (i) no facility for the exploration or 

22 production of resources is visible to the un23 assisted eye from any shore of any coastal 

24 State; and 


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1 (ii) the impact of offshore production 

2 facilities on coastal vistas is otherwise miti3 gated; 

4 (E) provisions to ensure, to the maximum 

5 extent practicable, that exploration and produc6 tion activities will result in no significant ad7 verse effect on fish or wildlife (including habi8 tat), subsistence resources, or the environment; 

9 and 

10 (F) provisions that will impose seasonal 

11 limitations on activity to protect breeding, 

12 spawning, and wildlife migration patterns. 

13 (c) CONFORMING AMENDMENT.—Section 105 of the 

14 Department of the Interior, Environment, and Related 

15 Agencies Appropriations Act, 2006 (Public Law 109-54; 

16 119 Stat. 521) (as amended by section 103(d) of the Gulf 

17 of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 

18 note; Public Law 109–432)) is amended by inserting ‘‘and 

19 any other area that the Secretary of the Interior may offer 

20 for leasing, preleasing, or any related activity under sec21 tion 104 of that Act’’ after ‘‘2006)’’. 


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1 SEC. 305. INVENTORY OF OUTER CONTINENTAL SHELF OIL 

2 AND NATURAL GAS RESOURCES OFF SOUTH3 EASTERN COAST OF THE UNITED STATES. 

4 (a) IN GENERAL.—The Secretary of the Interior (re5 ferred to in this section as the ‘‘Secretary’’) may conduct 

6 an inventory of oil and natural gas resources beneath the 

7 waters of the outer Continental Shelf (as defined in sec8 tion 2 of the Outer Continental Shelf Lands Act (43 

9 U.S.C. 1331)) off of the coast of the States of Virginia, 

10 North Carolina, South Carolina, or Georgia in accordance 

11 with this section. 

12 (b) BEST AVAILABLE TECHNOLOGY.—In conducting 

13 the inventory, the Secretary shall use the best technology 

14 available to obtain accurate resource estimates. 

15 (c) REQUEST BY GOVERNOR.—The Secretary may 

16 conduct an inventory under this section off the coast of 

17 a State described in subsection (a) only if the Governor 

18 of the State requests the inventory. 

19 (d) REPORTS.—The Secretary shall submit to Con20 gress and the requesting Governor a report on any inven21 tory conducted under this section. 

22 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

23 are authorized to be appropriated such sums as are nec24 essary to carry out this section. 


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1 SEC. 306. ENHANCED OIL RECOVERY. 

2 Section 354(c)(4)(B) of the Energy Policy Act of 

3 2005 (42 U.S.C. 15910(c)(4)(B)) is amended— 

4 (1) in clause (iii), by striking ‘‘and’’ at the end; 

5 (2) in clause (iv), by striking the period at the 

6 end and inserting ‘‘; and’’; and 

7 (3) by adding at the end the following: 

8 ‘‘(v) are carried out in geologically 

9 challenging fields.’’. 

10 TITLE IV—MANAGEMENT OF 

11 ENERGY RISKS 

12 SEC. 401. BUREAU OF INTERNATIONAL ENERGY POLICY. 

13 Section 101 of the National Security Act of 1947 (50 

14 U.S.C. 402) is amended by adding at the end the fol15 lowing: 

16 (1) by redesignating subsection (i) (as added by 

17 section 301 of Public Law 105–292 (112 Stat. 

18 2800)) as subsection (k); and 

19 (2) by adding at the end the following: 

20 ‘‘(l) BUREAU OF INTERNATIONAL ENERGY POL21 ICY.— 

22 ‘‘(1) ESTABLISHMENT.—There is established 

23 within the National Security Council a Bureau of 

24 International Energy. 

25 ‘‘(2) DUTIES.—The Bureau shall, in conjunc26 tion with the Secretary of Defense, the Secretary of 


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1 State, and the Secretary of Energy, prepare and 

2 submit to Congress an annual energy security re3 port.’’. 

4 SEC. 402. STRATEGIC ENERGY INFRASTRUCTURE EQUIP5 MENT RESERVE. 

6 (a) ESTABLISHMENT.—The Secretary may establish 

7 and operate a strategic energy infrastructure equipment 

8 reserve. 

9 (b) USE.—The reserve shall be used and operated 

10 for— 

11 (1) the protection, conservation, maintenance, 

12 and testing of strategic energy infrastructure equip13 ment; and 

14 (2) the provision of strategic energy infrastruc15 ture equipment whenever and to the extent that— 

16 (A) the Secretary, with the approval of the 

17 President, finds that the equipment is needed 

18 for energy security purposes; and 

19 (B) the provision of the equipment is au20 thorized by a joint resolution of Congress. 

21 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated such sums as are nec23 essary to carry out this section. 

Æ 


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