I 

111TH CONGRESS 

1ST SESSION H. R. 1794 

To provide incentives to reduce dependence on foreign oil. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 30, 2009 

Mr. DANIEL E. LUNGREN of California (for himself and Mr. COSTA) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committees on Science and Technology and Energy and Commerce, 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 incentives to reduce dependence on foreign oil. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘New Options Petro5 leum Energy Conservation Act of 2009’’. 

6 SEC. 2. CLIMATE NEUTRAL COMBUSTION CREDIT. 

7 (a) IN GENERAL.—Section 46 of the Internal Rev8 enue Code of 1986 (relating to amount of credit) is 

9 amended by striking ‘‘and’’ at the end of paragraph (3), 

10 by striking the period at the end of paragraph (4) and 


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1 inserting ‘‘, and’’, and by adding at the end the following 

2 new paragraph: 

3 ‘‘(5) the climate neutral combustion credit.’’. 

4 (b) AMOUNT OF CREDIT.—Subpart E of part IV of 

5 subchapter A of chapter 1 of such Code (relating to rules 

6 for computing investment credit) is amended by inserting 

7 after section 48B the following new section: 

8 ‘‘SEC. 48C. CLIMATE NEUTRAL COMBUSTION CREDIT. 

9 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

10 climate neutral combustion credit for any taxable year is 

11 an amount equal to 20 percent of the qualified investment 

12 for such taxable year. 

13 ‘‘(b) QUALIFIED INVESTMENT.— 

14 ‘‘(1) IN GENERAL.—For purposes of subsection 

15 (a), the qualified investment for any taxable year is 

16 the basis of any property placed in service by the 

17 taxpayer during such taxable year which is part of 

18 a climate neutral combustion facility— 

19 ‘‘(A)(i) the construction, reconstruction, or 

20 erection of which is completed by the taxpayer, 

21 or 

22 ‘‘(ii) which is acquired by the taxpayer if 

23 the original use of such property commences 

24 with the taxpayer, and 


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1 ‘‘(B) with respect to which depreciation (or 

2 amortization in lieu of depreciation) is allow3 able. 

4 ‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED

5 PROPERTY.—Rules similar to section 48(a)(4) shall 

6 apply for purposes of this section. 

7 ‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI8 TURES RULES MADE APPLICABLE.—Rules similar to 

9 the rules of subsections (c)(4) and (d) of section 46 

10 (as in effect on the day before the enactment of the 

11 Revenue Reconciliation Act of 1990) shall apply for 

12 purposes of this section. 

13 ‘‘(c) CLIMATE NEUTRAL COMBUSTION FACILITY.— 

14 For purposes of this section, the term ‘climate neutral 

15 combustion facility’ means any facility which— 

16 ‘‘(1) burns matter to produce electricity, 

17 ‘‘(2) captures the carbon dioxide released dur18 ing combustion and uses such carbon dioxide to re19 cover hydrocarbon fuel from below ground, and 

20 ‘‘(3) produces no atmospheric emissions of mer21 cury or greenhouse gasses and no emissions that 

22 form fine particulate, smog, or acid rain. 

23 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—A credit shall 

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1 ment for which a credit is allowed under section 48A or 

2 48B.’’. 

3 (c) CONFORMING AMENDMENTS.— 

4 (1) Section 49(a)(1)(C) of such Code is amend5 ed by striking ‘‘and’’ at the end of clause (iii), by 

6 striking the period at the end of clause (iv) and in7 serting ‘‘, and’’, and by adding at the end the fol8 lowing new clause: 

9 ‘‘(v) the basis of any property which 

10 is part of a qualifying climate neutral com11 bustion facility.’’. 

12 (2) The table of sections for subpart E of part 

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

14 amended by inserting after the item relating to sec15 tion 48B the following new item: 

‘‘Sec. 48C. Climate neutral combustion credit.’’. 

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

17 this section shall apply to periods after the date of the 

18 enactment of this Act, under rules similar to the rules of 

19 section 48(m) of the Internal Revenue Code of 1986 (as 

20 in effect on the day before the date of the enactment of 

21 the Revenue Reconciliation Act of 1990). 

22 SEC. 3. EXTENSION OF ENERGY CREDIT FOR SOLAR EN23 ERGY PROPERTY. 

24 Paragraph (2)(A)(i)(II) and paragraph (3)(A)(ii) of 

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1 ing to energy credit) are each amended by striking ‘‘but 

2 only with respect to periods ending before January 1, 

3 2017’’. 

4 SEC. 4. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY 

5 EFFICIENT PROPERTY. 

6 Section 25D of the Internal Revenue Code of 1986 

7 is amended by striking subsection (g). 

8 SEC. 5. PRIZE PROGRAM. 

9 The Secretary of Energy shall establish a program 

10 to award a prize in the amount of $1,000,000,000 to the 

11 first automobile manufacturer incorporated in the United 

12 States to manufacture and sell in the United States 

13 60,000 midsized sedan automobiles which operate on gaso14 line and can travel 100 miles per gallon. 

15 SEC. 6. LITHIUM ION BATTERY TECHNOLOGY. 

16 There are authorized to be appropriated to the Sec17 retary of Energy $30,000,000 for fiscal year 2010 for the 

18 development of advanced lithium ion battery technology. 

19 SEC. 7. EXPENSING OF PROPERTY USED IN THE REFINING 

20 OF ETHANOL, METHANOL, AND BIODIESEL. 

21 (a) IN GENERAL.—Part VI of subchapter B of chap22 ter 1 of the Internal Revenue Code of 1986 (relating to 

23 itemized deductions for individuals and corporations) is 

24 amended by inserting after section 179E the following new 

25 section: 


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1 ‘‘SEC. 179F. ELECTION TO EXPENSE CERTAIN PROPERTY 

2 USED IN REFINING ETHANOL, METHANOL, 

3 AND BIODIESEL. 

4 ‘‘(a) IN GENERAL.—A taxpayer may elect to treat the 

5 cost of any qualified biofuel property as an expense which 

6 is not chargeable to capital account. Any cost so treated 

7 shall be allowed as a deduction for the taxable year in 

8 which the property is placed in service. 

9 ‘‘(b) ELECTION.—An election under this section for 

10 any taxable year shall be made on the taxpayer’s return 

11 of the tax imposed by this chapter for the taxable year. 

12 Such election shall be made in such manner as the Sec13 retary may by regulations prescribe. Any election made 

14 under this section may not be revoked except with the con15 sent of the Secretary. 

16 ‘‘(c) QUALIFIED BIOFUEL PROPERTY.—For purposes 

17 of this section— 

18 ‘‘(1) IN GENERAL.—The term ‘qualified biofuel 

19 property’ means any property— 

20 ‘‘(A) used for the refining of any biofuel, 

21 and 

22 ‘‘(B) the original use of which commences 

23 with the taxpayer. 

24 ‘‘(2) BIOFUEL.—The term ‘biofuel’ means 

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1 tion 4041(b)(2)(B)) and biodiesel (as defined in sec2 tion 40A(d)). 

3 ‘‘(d) DUAL USE PROPERTY.—In the case of any 

4 property which is used for the refining of any biofuel and 

5 for any other use, the cost of such property taken into 

6 account under subsection (a) shall be reduced by an 

7 amount which bears the same ratio to the cost of such 

8 property as such other uses bears to all uses of such prop9 erty. 

10 ‘‘(e) COORDINATION WITH 50 PERCENT EXPENSING

11 OF REFINERIES.—Section 179C shall not apply to any 

12 property taken into account under subsection (a). 

13 ‘‘(f) RECAPTURE.—Rules similar to the rules of sec14 tion 179(d)(10) shall apply with respect to any property 

15 which ceases to be qualified biofuel property.’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) Section 1245(a) of such Code is amended 

18 by inserting ‘‘179F,’’ after ‘‘179E,’’ both places it 

19 appears in paragraphs (2)(C) and (3)(C). 

20 (2) Section 263(a)(1) of such Code is amended 

21 by striking ‘‘or’’ at the end of subparagraph (K), by 

22 striking the period at the end of subparagraph (L) 

23 and inserting ‘‘, or’’, and by inserting after subpara24 graph (L) the following new subparagraph: 


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1 ‘‘(M) expenditures for which a deduction is 

2 allowed under section 179F.’’. 

3 (3) Section 312(k)(3)(B) of such Code is 

4 amended by striking ‘‘or 179E’’ each place it ap5 pears in the heading and text and inserting ‘‘179E, 

6 or 179F’’. 

7 (4) The table of sections for part VI of sub8 chapter B of chapter 1 of such Code is amended by 

9 inserting after the item relating to section 179E the 

10 following new item: 

‘‘Sec. 179F. Election to expense certain property used in refining ethanol, 

methanol, and biodiesel.’’. 

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

12 this section shall apply to property placed in service after 

13 the date of the enactment of this Act. 

Æ 


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