I 

110TH CONGRESS 

2D SESSION H. R. 5437 

To promote alternative and renewable fuels, domestic energy production, 

conservation, and efficiency, to increase American energy independence, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 14, 2008 

Mr. ROSS (for himself and Mr. NUNES) introduced the following bill; which 

was referred to the Committee on Energy and Commerce, and in addition 

to the Committees on Science and Technology, Oversight and Government Reform, Armed Services, Agriculture, Natural Resources, and Ways 

and Means, 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 promote alternative and renewable fuels, domestic energy 

production, conservation, and efficiency, to increase 

American energy independence, 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, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘American-Made Energy Act of 2008’’. 

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

7 this Act is as follows: 


hsrobinson on PROD1PC76 with BILLS
2 

•HR 5437 IH

Sec. 1. Short title; table of contents. 

TITLE I—TAX INCENTIVES FOR ALTERNATIVE ENERGY AND 

CONSERVATION 

Subtitle A—Alternative Energy 

Sec. 101. Credit for investment in cellulosic biomass ethanol projects. 

Sec. 102. Investment tax credit for investments in nuclear power facilities. 

Sec. 103. Expansion of special allowance to cellulosic biomass alcohol fuel plant 

property. 

Subtitle B—Electricity and Renewables 

Sec. 111. Extension and modification of energy investment tax credit. 

Sec. 112. Credit rate parity for all renewable resources under electricity production credit. 

Sec. 113. Extension of credit for producing electricity from certain renewable 

resources. 

Sec. 114. Expansion of credit for electricity produced from agricultural livestock waste nutrients. 

Sec. 115. Credit for installation of wind energy property including by rural 

homeowners, farmers, ranchers, and small businesses. 

Sec. 116. 3-year accelerated depreciation period for wind energy property. 

Sec. 117. Repeal of dollar limitation and allowance against alternative minimum tax for residential solar and fuel cell property credit. 

Sec. 118. New clean renewable energy bonds. 

Sec. 119. Extension and modification of credit for residential energy efficient 

property. 

Subtitle C—Coal-to-Liquid Fuel 

Sec. 121. Extension of alternative fuel credit for fuel derived from coal. 

Subtitle D—Energy Efficiency 

Sec. 131. Extension of new energy efficient home credit. 

Sec. 132. Modification and extension of energy efficient commercial buildings 

deduction. 

Subtitle E—Alternative Vehicle Fuels 

Sec. 141. Consumer credit for purchase of flexible fuel motor vehicle. 

Sec. 142. Repeal of prohibition on procurement and acquisition of alternative 

fuels. 

Subtitle F—Biofuel Production 

Sec. 151. Extension and modification of credits for biodiesel and renewable diesel. 

Subtitle G—Oil and Gas Provisions 

Sec. 161. Expensing for crude oil refineries. 

Sec. 162. Extension of suspension of taxable income limit on percentage depletion for oil and natural gas produced from marginal properties. 

Sec. 163. Increase in depletion rate for marginal oil or gas production. 

Sec. 164. Suspension of taxable income limitation on percentage depletion. 

Sec. 165. Study on fair and transparent fuel pricing. 


hsrobinson on PROD1PC76 with BILLS
3 

•HR 5437 IH

Subtitle H—Carbon Capture and Sequestration 

Sec. 171. Expansion and modification of advanced coal project investment credit. 

TITLE II—AMERICAN-MADE ENERGY TRUST FUND 

Sec. 201. Establishment of American-Made Energy Trust Fund. 

TITLE III—DEVELOPMENT OF OIL AND GAS RESOURCES OF THE 

COASTAL PLAIN OF ALASKA 

Sec. 301. Definitions. 

Sec. 302. Leasing program for lands within the Coastal Plain. 

Sec. 303. Lease sales. 

Sec. 304. Grant of leases by the Secretary. 

Sec. 305. Lease terms and conditions. 

Sec. 306. Coastal plain environmental protection. 

Sec. 307. Expedited judicial review. 

Sec. 308. Federal and State distribution of revenues. 

Sec. 309. Rights-of-way across the Coastal Plain. 

Sec. 310. Conveyance. 

Sec. 311. Local government impact aid and community service assistance. 

TITLE IV—COAL-TO-LIQUID FUEL PROMOTION 

Sec. 401. Strategic Petroleum Reserve. 

Sec. 402. Procurement of unconventional fuels by the Department of Defense. 

Sec. 403. Government auction of long term put option contracts on coal-to-liquid fuel produced by qualified coal-to-liquid facilities. 

Sec. 404. Definitions. 

TITLE V—BIOFUEL PROGRAM 

Sec. 501. Grants for cellulosic ethanol production. 

Sec. 502. Loan guarantees for biorefineries and biofuel production plants. 

Sec. 503. Biomass Research and Development Act of 2000. 

Sec. 504. Forest bioenergy research program. 

Sec. 505. Early action renewable fuel marketing. 

TITLE VI—ALTERNATIVE VEHICLE FUELS 

Sec. 601. Credit for plug-in hybrid vehicles. 

Sec. 602. Use of credits. 

TITLE VII—OFFSHORE OIL AND GAS LEASING 

Sec. 701. Termination of prohibitions on expenditures for, and withdrawals 

from, offshore leasing. 

Sec. 702. Outer Continental Shelf leasing program. 

Sec. 703. Sharing of revenues. 

TITLE VIII—INCREASING NUCLEAR GENERATED ELECTRIC 

ENERGY 

Sec. 801. Increasing nuclear generated electric energy. 


hsrobinson on PROD1PC76 with BILLS
4 

•HR 5437 IH

1 TITLE I—TAX INCENTIVES FOR 

2 ALTERNATIVE ENERGY AND 

3 CONSERVATION 

4 Subtitle A—Alternative Energy 

5 SEC. 101. CREDIT FOR INVESTMENT IN CELLULOSIC BIO6 MASS ETHANOL PROJECTS. 

7 (a) QUALIFYING CELLULOSIC BIOMASS ETHANOL

8 PROJECT INVESTMENT.— 

9 (1) IN GENERAL.—Subpart E of part IV of 

10 subchapter A of chapter 1 of the Internal Revenue 

11 Code of 1986 (relating to rules for computing invest12 ment credit) is amended by inserting after section 

13 48B the following new section: 

14 ‘‘SEC. 48C. QUALIFYING CELLULOSIC BIOMASS ETHANOL 

15 PROJECT CREDIT. 

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

17 qualifying cellulosic biomass ethanol project credit for any 

18 taxable year is an amount equal to 50 percent of the quali19 fied investment for such taxable year. 

20 ‘‘(b) DOLLAR LIMITATION.—The amount of the cred21 it determined under this section for any taxable year shall 

22 not exceed $100,000,000. 

23 ‘‘(c) QUALIFIED INVESTMENT.—For purposes of sub24 section (a), the qualified investment for any taxable year 

25 is the basis of property placed in service by the taxpayer 


hsrobinson on PROD1PC76 with BILLS
5 

•HR 5437 IH

1 during the taxable year which is part of a qualifying cel2 lulosic biomass ethanol project— 

3 ‘‘(1)(A) the construction, reconstruction, or 

4 erection of which is completed by the taxpayer, or 

5 ‘‘(B) which is acquired by the taxpayer if the 

6 original use of such property commences with the 

7 taxpayer, and 

8 ‘‘(2) with respect to which depreciation (or am9 ortization in lieu of depreciation) is allowable. 

10 ‘‘(d) QUALIFYING CELLULOSIC BIOMASS ETHANOL

11 PROJECT.—For purposes of this section, the term ‘quali12 fying cellulosic biomass ethanol project’ means any domes13 tic project which produces not less than 5,000,000 gallons 

14 of ethanol per year by enzymatic hydrolysis of any 

15 lignocellulosic or hemicellulosic feedstock that is available 

16 on a renewable or recurring basis, including agricultural 

17 residues, agricultural fibers, dedicated energy crops, 

18 grasses, plants, and wood and wood residues. 

19 ‘‘(e) QUALIFYING CELLULOSIC BIOMASS ETHANOL

20 PROJECT PROGRAM.— 

21 ‘‘(1) IN GENERAL.—The Secretary, in consulta22 tion with the Secretary of Energy, shall establish a 

23 qualifying cellulosic biomass ethanol project program 

24 to consider and award certifications for qualified in25 vestment eligible for credits under this section to 


hsrobinson on PROD1PC76 with BILLS
6 

•HR 5437 IH

1 qualifying cellulosic biomass ethanol project sponsors 

2 under this section. The total amounts of credit that 

3 may be allocated under this program shall not ex4 ceed $2,000,000,000. 

5 ‘‘(2) SELECTION CRITERIA.—The Secretary 

6 shall not make a competitive certification award for 

7 qualified investment for credit eligibility under this 

8 section unless the recipient has documented to the 

9 satisfaction of the Secretary that— 

10 ‘‘(A) the proposal of the award recipient is 

11 financially viable, 

12 ‘‘(B) the recipient will provide sufficient 

13 information to the Secretary for the Secretary 

14 to ensure that the qualified investment is spent 

15 efficiently and effectively, 

16 ‘‘(C) the award recipient’s project team is 

17 competent in the planning and construction of 

18 cellulosic biomass ethanol facilities, and 

19 ‘‘(D) the award recipient has met other 

20 criteria established and published by the Sec21 retary. 

22 ‘‘(3) PERIOD OF CERTIFICATION.—The Sec23 retary may issue the certifications described in para24 graph (1) during the 10-year period beginning on 

25 October 1, 2008. 


hsrobinson on PROD1PC76 with BILLS
7 

•HR 5437 IH

1 ‘‘(f) DENIAL OF DOUBLE BENEFIT.—No deduction 

2 or other credit shall be allowed with respect to the basis 

3 of any property taken into account in determining the 

4 credit allowed under this section.’’. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) Section 46 of such Code is amended by 

7 striking ‘‘and’’ at the end of paragraph (3), by strik8 ing the period at the end of paragraph (4) and in9 serting ‘‘, and’’, and by adding at the end the fol10 lowing new paragraph: 

11 ‘‘(5) the qualifying cellulosic biomass ethanol 

12 project credit.’’. 

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

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

15 amended by inserting after the item relating to sec16 tion 48B the following new item: 

‘‘Sec. 48C. Qualifying cellulosic biomass ethanol project.’’. 

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

18 this section shall apply to qualified investment made after 

19 the date of the enactment of this Act. 

20 SEC. 102. INVESTMENT TAX CREDIT FOR INVESTMENTS IN 

21 NUCLEAR POWER FACILITIES. 

22 (a) NEW CREDIT FOR NUCLEAR POWER FACILI23 TIES.—Section 46 of the Internal Revenue Code of 1986, 

24 as amended by this Act, is amended by— 

25 (1) striking ‘‘and’’ at the end of paragraph (4); 


hsrobinson on PROD1PC76 with BILLS
8 

•HR 5437 IH

1 (2) striking the period at the end of paragraph 

2 (5) and inserting ‘‘, and’’; and 

3 (3) inserting after paragraph (5) the following 

4 new paragraph: 

5 ‘‘(6) the nuclear power facility construction 

6 credit.’’. 

7 (b) NUCLEAR POWER FACILITY CONSTRUCTION

8 CREDIT.—Subpart E of part IV of subchapter A of chap9 ter 1 of such Code, as amended by this Act, is amended 

10 by inserting after section 48C the following new section: 

11 ‘‘SEC. 48D. NUCLEAR POWER FACILITY CONSTRUCTION 

12 CREDIT. 

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

14 nuclear power facility construction credit for any taxable 

15 year is 20 percent of the qualified nuclear power facility 

16 expenditures with respect to a qualified nuclear power fa17 cility. 

18 ‘‘(b) WHEN EXPENDITURES TAKEN INTO AC19 COUNT.— 

20 ‘‘(1) IN GENERAL.—Qualified nuclear power fa21 cility expenditures shall be taken into account for 

22 the taxable year in which the qualified nuclear power 

23 facility is placed in service. 

24 ‘‘(2) COORDINATION WITH SUBSECTION (C).— 

25 The amount which would (but for this paragraph) be 


hsrobinson on PROD1PC76 with BILLS
9 

•HR 5437 IH

1 taken into account under paragraph (1) with respect 

2 to any qualified nuclear power facility shall be re3 duced (but not below zero) by any amount of quali4 fied nuclear power facility expenditures taken into 

5 account under subsection (c) by the taxpayer or a 

6 predecessor of the taxpayer (or, in the case of a sale 

7 and leaseback described in section 50(a)(2)(C), by 

8 the lessee), to the extent any amount so taken into 

9 account has not been required to be recaptured 

10 under section 50(a). 

11 ‘‘(c) PROGRESS EXPENDITURES.— 

12 ‘‘(1) IN GENERAL.—A taxpayer may elect to 

13 take into account qualified nuclear power facility ex14 penditures— 

15 ‘‘(A) SELF-CONSTRUCTED PROPERTY.—In 

16 the case of a qualified nuclear power facility 

17 which is a self-constructed facility, in the tax18 able year for which such expenditures are prop19 erly chargeable to capital account with respect 

20 to such facility. 

21 ‘‘(B) ACQUIRED FACILITY.—In the case of 

22 a qualified nuclear facility which is not self-con23 structed property, in the taxable year in which 

24 such expenditures are paid. 


hsrobinson on PROD1PC76 with BILLS
10 

•HR 5437 IH

1 ‘‘(2) SPECIAL RULES FOR APPLYING PARA2 GRAPH (1).—For purposes of paragraph (1)— 

3 ‘‘(A) COMPONENT PARTS, ETC.—Property 

4 which is not self-constructed property and 

5 which is to be a component part of, or is other6 wise to be included in, any facility to which this 

7 subsection applies shall be taken into account in 

8 accordance with paragraph (1)(B). 

9 ‘‘(B) CERTAIN BORROWING DIS10 REGARDED.—Any amount borrowed directly or 

11 indirectly by the taxpayer on a nonrecourse 

12 basis from the person constructing the facility 

13 for the taxpayer shall not be treated as an 

14 amount expended for such facility. 

15 ‘‘(C) LIMITATION FOR FACILITIES OR COM16 PONENTS WHICH ARE NOT SELF-CON17 STRUCTED.— 

18 ‘‘(i) IN GENERAL.—In the case of a 

19 facility or a component of a facility which 

20 is not self-constructed, the amount taken 

21 into account under paragraph (1)(B) for 

22 any taxable year shall not exceed the 

23 amount which represents the portion of the 

24 overall cost to the taxpayer of the facility 

25 or component of a facility which is propVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
11 

•HR 5437 IH

1 erly attributable to the portion of the facil2 ity or component which is completed dur3 ing such taxable year. 

4 ‘‘(ii) CARRY-OVER OF CERTAIN

5 AMOUNTS.—In the case of a facility or 

6 component of a facility which is not self7 constructed— 

8 ‘‘(I) if the amount which (but for 

9 clause (i)) would have been taken into 

10 account under paragraph (1)(B) for 

11 the taxable year exceeds the limitation 

12 of clause (i), then the amount of such 

13 excess shall be taken into account 

14 under paragraph (1)(B) for the suc15 ceeding taxable year, and 

16 ‘‘(II) if the limitation of clause 

17 (i) for the taxable year exceeds the 

18 amount taken into account under 

19 paragraph (1)(B), then the amount of 

20 such excess shall increase the limita21 tion of clause (i) for the succeeding 

22 taxable year. 

23 ‘‘(D) DETERMINATION OF PERCENTAGE OF

24 COMPLETION.—The determination under sub25 paragraph (C)(i) of the portion of the overall 


hsrobinson on PROD1PC76 with BILLS
12 

•HR 5437 IH

1 cost to the taxpayer of the construction which 

2 is properly attributable to construction com3 pleted during any taxable year shall be made on 

4 the basis of engineering or architectural esti5 mates or on the basis of cost accounting 

6 records. Unless the taxpayer establishes other7 wise by clear and convincing evidence, the con8 struction shall be deemed to be completed not 

9 more rapidly than ratably over the normal con10 struction period. 

11 ‘‘(E) NO PROGRESS EXPENDITURES FOR

12 CERTAIN PRIOR PERIODS.—No qualified nuclear 

13 facility expenditures shall be taken into account 

14 under this subsection for any period before the 

15 first day of the first taxable year to which an 

16 election under this subsection applies. 

17 ‘‘(F) NO PROGRESS EXPENDITURES FOR

18 PROPERTY FOR YEAR IT IS PLACED IN SERVICE, 

19 ETC.—In the case of any qualified nuclear facil20 ity, no qualified nuclear facility expenditures 

21 shall be taken into account under this sub22 section for the earlier of— 

23 ‘‘(i) the taxable year in which the fa24 cility is placed in service, or 


hsrobinson on PROD1PC76 with BILLS
13 

•HR 5437 IH

1 ‘‘(ii) the first taxable year for which 

2 recapture is required under section 

3 50(a)(2) with respect to such facility, or 

4 for any taxable year thereafter. 

5 ‘‘(3) SELF-CONSTRUCTED.—For purposes of 

6 this subsection— 

7 ‘‘(A) The term ‘self-constructed facility’ 

8 means any facility if it is reasonable to believe 

9 that more than half of the qualified nuclear fa10 cility expenditures for such facility will be made 

11 directly by the taxpayer. 

12 ‘‘(B) A component of a facility shall be 

13 treated as not self-constructed if the cost of the 

14 component is at least 5 percent of the expected 

15 cost of the facility and the component is ac16 quired by the taxpayer. 

17 ‘‘(4) ELECTION.—An election shall be made 

18 under this section for a qualified nuclear power facil19 ity by claiming the nuclear power facility construc20 tion credit for expenditures described in paragraph 

21 (1) on a tax return filed by the due date for such 

22 return (taking into account extensions). Such an 

23 election shall apply to the taxable year for which 

24 made and all subsequent taxable years. Such an 


hsrobinson on PROD1PC76 with BILLS
14 

•HR 5437 IH

1 election, once made, may be revoked only with the 

2 consent of the Secretary. 

3 ‘‘(d) NATIONAL LIMITATION ON AMOUNT OF INVEST4 MENTS DESIGNATED.—Subsection (a) shall not apply to 

5 the extent that the aggregate nuclear power facility con6 struction credit allowed under such subsection exceeds 

7 $2,000,000,000. 

8 ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For pur9 poses of this section— 

10 ‘‘(1) QUALIFIED NUCLEAR POWER FACILITY.— 

11 The term ‘qualified nuclear power facility’ means an 

12 advanced nuclear power facility (as defined in sec13 tion 45J), the construction of which was approved 

14 by the Nuclear Regulatory Commission on or before 

15 December 31, 2013. 

16 ‘‘(2) QUALIFIED NUCLEAR POWER FACILITY

17 EXPENDITURES.— 

18 ‘‘(A) IN GENERAL.—The term ‘qualified 

19 nuclear power facility expenditures’ means any 

20 amount properly chargeable to capital ac21 count— 

22 ‘‘(i) with respect to a qualified nuclear 

23 power facility, 

24 ‘‘(ii) for which depreciation is allow25 able under section 168, and 


hsrobinson on PROD1PC76 with BILLS
15 

•HR 5437 IH

1 ‘‘(iii) which are incurred before the 

2 qualified nuclear power facility is placed in 

3 service or in connection with the placement 

4 of such facility in service. 

5 ‘‘(B) PRE-EFFECTIVE DATE EXPENDI6 TURES.—Qualified nuclear power facility ex7 penditures do not include any expenditures in8 curred by the taxpayer before January 1, 2008, 

9 unless such expenditures constitute less than 20 

10 percent of the total qualified nuclear power fa11 cility expenditures (determined without regard 

12 to this subparagraph) for the qualified nuclear 

13 power facility. 

14 ‘‘(3) DELAYS AND SUSPENSION OF CONSTRUC15 TION.— 

16 ‘‘(A) IN GENERAL.—For purposes of ap17 plying this section and section 50, a nuclear 

18 power facility that is under construction shall 

19 cease to be treated as a facility that will be a 

20 qualified nuclear power facility as of the earlier 

21 of— 

22 ‘‘(i) the date on which the taxpayer 

23 decides to terminate construction of the fa24 cility, or 


hsrobinson on PROD1PC76 with BILLS
16 

•HR 5437 IH

1 ‘‘(ii) the last day of any 24 month pe2 riod in which the taxpayer has failed to 

3 incur qualified nuclear power facility ex4 penditures totaling at least 20 percent of 

5 the expected total cost of the nuclear 

6 power facility. 

7 ‘‘(B) AUTHORITY TO WAIVE.—The Sec8 retary may waive the application of clause (ii) 

9 of subparagraph (A) if the Secretary deter10 mines that the taxpayer intended to continue 

11 the construction of the qualified nuclear power 

12 facility and the expenditures were not incurred 

13 for reasons outside the control of the taxpayer. 

14 ‘‘(C) RESUMPTION OF CONSTRUCTION.—If 

15 a nuclear power facility that is under construc16 tion ceases to be a qualified nuclear power facil17 ity by reason of paragraph (2) and work is sub18 sequently resumed on the construction of such 

19 facility— 

20 ‘‘(i) the date work is subsequently re21 sumed shall be treated as the date that 

22 construction began for purposes of para23 graph (1), and 

24 ‘‘(ii) if the facility is a qualified nu25 clear power facility, the qualified nuclear 


hsrobinson on PROD1PC76 with BILLS
17 

•HR 5437 IH

1 power facility expenditures shall be deter2 mined without regard to any delay or tem3 porary termination of construction of the 

4 facility.’’. 

5 (c) PROVISIONS RELATING TO CREDIT RECAP6 TURE.— 

7 (1) PROGRESS EXPENDITURE RECAPTURE

8 RULES.— 

9 (A) BASIC RULES.—Subparagraph (A) of 

10 section 50(a)(2) of such Code is amended to 

11 read as follows: 

12 ‘‘(A) IN GENERAL.—If during any taxable 

13 year any building to which section 47(d) applied 

14 or any facility to which section 48D(c) applied 

15 ceases (by reason of sale or other disposition, 

16 cancellation or abandonment of contract, or 

17 otherwise) to be, with respect to the taxpayer, 

18 property which, when placed in service, will be 

19 a qualified rehabilitated building or a qualified 

20 nuclear power facility, then the tax under this 

21 chapter for such taxable year shall be increased 

22 by an amount equal to the aggregate decrease 

23 in the credits allowed under section 38 for all 

24 prior taxable years which would have resulted 

25 solely from reducing to zero the credit deterVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
18 

•HR 5437 IH

1 mined under this subpart with respect to such 

2 building or facility.’’. 

3 (B) AMENDMENT TO EXCESS CREDIT RE4 CAPTURE RULE.—Subparagraph (B) of section 

5 50(a)(2) of such Code is amended by— 

6 (i) inserting ‘‘or paragraph (2) of sec7 tion 48D(b)’’ after ‘‘paragraph (2) of sec8 tion 47(b)’’, 

9 (ii) inserting ‘‘or section 48D(b)(1)’’ 

10 after ‘‘section 47(b)(1)’’, and 

11 (iii) inserting ‘‘or facility’’ after 

12 ‘‘building’’. 

13 (C) AMENDMENT OF SALE AND LEASE14 BACK RULE.—Subparagraph (C) of section 

15 50(a)(2) of such Code is amended by— 

16 (i) inserting ‘‘or qualified nuclear 

17 power facility expenditures’’ after ‘‘quali18 fied rehabilitation expenditures’’, and 

19 (ii) inserting ‘‘or section 48D(c)’’ 

20 after ‘‘section 47(d)’’. 

21 (D) OTHER AMENDMENT.—Subparagraph 

22 (D) of section 50(a)(2) of such Code is amend23 ed by inserting ‘‘or section 48D(c)’’ after ‘‘sec24 tion 47(d)’’. 


hsrobinson on PROD1PC76 with BILLS
19 

•HR 5437 IH

1 (d) NO BASIS ADJUSTMENT.—Section 50(c) of such 

2 Code is amended by inserting at the end thereof the fol3 lowing new paragraph: 

4 ‘‘(6) NUCLEAR POWER FACILITY CONSTRUC5 TION CREDIT.—Paragraphs (1) and (2) shall not 

6 apply to the nuclear power facility construction cred7 it.’’. 

8 (e) TECHNICAL AMENDMENTS.—The table of sec9 tions for subpart E of part IV of subchapter A of chapter 

10 1 of such Code is amended by inserting after the item 

11 relating to section 48C the following new item: 

‘‘Sec. 48D. Nuclear power facility construction credit.’’. 

12 (f) EFFECTIVE DATE.—The amendments made by 

13 this section shall be effective for expenditures incurred and 

14 property placed in service in taxable years beginning after 

15 the date of the enactment of this Act. 

16 SEC. 103. EXPANSION OF SPECIAL ALLOWANCE TO CEL17 LULOSIC BIOMASS ALCOHOL FUEL PLANT 

18 PROPERTY. 

19 (a) IN GENERAL.—Paragraph (3) of section 168(l) 

20 of the Internal Revenue Code of 1986 (relating to special 

21 allowance for cellulosic biomass ethanol plant property) is 

22 amended to read as follows: 

23 ‘‘(3) CELLULOSIC BIOMASS ALCOHOL.—For 

24 purposes of this subsection, the term ‘cellulosic bio25 mass alcohol’ means any alcohol produced from any 


hsrobinson on PROD1PC76 with BILLS
20 

•HR 5437 IH

1 lignocellulosic or hemicellulosic matter that is avail2 able on a renewable or recurring basis.’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) Subsection (l) of section 168 of such Code 

5 is amended by striking ‘‘cellulosic biomass ethanol’’ 

6 each place it appears and inserting ‘‘cellulosic bio7 mass alcohol’’. 

8 (2) The heading of section 168(l) of such Code 

9 is amended by striking ‘‘CELLULOSIC BIOMASS ETH10 ANOL’’ and inserting ‘‘CELLULOSIC BIOMASS ALCO11 HOL’’. 

12 (3) The heading of paragraph (2) of section 

13 168(l) of such Code is amended by striking ‘‘CEL14 LULOSIC BIOMASS ETHANOL’’ and inserting ‘‘CEL15 LULOSIC BIOMASS ALCOHOL’’. 

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

17 this section shall apply to property placed in service after 

18 the date of the enactment of this Act, in taxable years 

19 ending after such date. 

20 Subtitle B—Electricity and 

21 Renewables 

22 SEC. 111. EXTENSION AND MODIFICATION OF ENERGY IN23 VESTMENT TAX CREDIT. 

24 (a) EXTENSION OF CREDIT.— 


hsrobinson on PROD1PC76 with BILLS
21 

•HR 5437 IH

1 (1) SOLAR ENERGY PROPERTY.—Paragraphs 

2 (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the 

3 Internal Revenue Code of 1986 (relating to energy 

4 credit) are each amended by striking ‘‘January 1, 

5 2009’’ and inserting ‘‘January 1, 2017’’. 

6 (2) FUEL CELL PROPERTY.—Subparagraph (E) 

7 of section 48(c)(1) of such Code (relating to quali8 fied fuel cell property) is amended by striking ‘‘De9 cember 31, 2008’’ and inserting ‘‘December 31, 

10 2016’’. 

11 (b) ALLOWANCE OF ENERGY CREDIT AGAINST AL12 TERNATIVE MINIMUM TAX.—Subparagraph (B) of section 

13 38(c)(4) of such Code (relating to specified credits) is 

14 amended by striking ‘‘and’’ at the end of clause (iii), by 

15 striking the period at the end of clause (iv) and inserting 

16 ‘‘, and’’, and by adding at the end the following new 

17 clause: 

18 ‘‘(v) the credit determined under section 46 to the 

19 extent that such credit is attributable to the energy credit 

20 determined under section 48.’’. 

21 (c) INCREASE OF CREDIT LIMITATION FOR FUEL

22 CELL PROPERTY.—Subparagraph (B) of section 48(c)(1) 

23 of such Code is amended by striking ‘‘$500’’ and inserting 

24 ‘‘$1,500’’. 


hsrobinson on PROD1PC76 with BILLS
22 

•HR 5437 IH

1 (d) PUBLIC ELECTRIC UTILITY PROPERTY TAKEN

2 INTO ACCOUNT.— 

3 (1) IN GENERAL.—Paragraph (3) of section 

4 48(a) of such Code is amended by striking the sec5 ond sentence thereof. 

6 (2) CONFORMING AMENDMENTS.— 

7 (A) Paragraph (1) of section 48(c) of such 

8 Code is amended by striking subparagraph (D) 

9 and redesignating subparagraph (E) as sub10 paragraph (D). 

11 (B) Paragraph (2) of section 48(c) of such 

12 Code is amended by striking subparagraph (D) 

13 and redesignating subparagraph (E) as sub14 paragraph (D). 

15 (e) CLERICAL AMENDMENTS.—Paragraphs (1)(B) 

16 and (2)(B) of section 48(c) of such Code are each amend17 ed by striking ‘‘paragraph (1)’’ and inserting ‘‘subsection 

18 (a)’’. 

19 (f) EFFECTIVE DATE.— 

20 (1) IN GENERAL.—Except as otherwise pro21 vided in this subsection, the amendments made by 

22 this section shall take effect on the date of the en23 actment of this Act. 

24 (2) ALLOWANCE AGAINST ALTERNATIVE MIN25 IMUM TAX.—The amendments made by subsection 


hsrobinson on PROD1PC76 with BILLS
23 

•HR 5437 IH

1 (b) shall apply to credits determined under section 

2 46 of the Internal Revenue Code of 1986 in taxable 

3 years beginning after the date of the enactment of 

4 this Act and to carrybacks of such credits. 

5 (3) INCREASE IN LIMITATION FOR FUEL CELL

6 PROPERTY.—The amendment made by subsection 

7 (c) shall apply to periods after the date of the enact8 ment of this Act, in taxable years ending after such 

9 date, under rules similar to the rules of section 

10 48(m) of the Internal Revenue Code of 1986 (as in 

11 effect on the day before the date of the enactment 

12 of the Revenue Reconciliation Act of 1990). 

13 (4) PUBLIC ELECTRIC UTILITY PROPERTY.— 

14 The amendments made by subsection (d) shall apply 

15 to periods after June 20, 2008, in taxable years end16 ing after such date, under rules similar to the rules 

17 of section 48(m) of the Internal Revenue Code of 

18 1986 (as in effect on the day before the date of the 

19 enactment of the Revenue Reconciliation Act of 

20 1990). 


hsrobinson on PROD1PC76 with BILLS
24 

•HR 5437 IH

1 SEC. 112. CREDIT RATE PARITY FOR ALL RENEWABLE RE2 SOURCES UNDER ELECTRICITY PRODUCTION 

3 CREDIT. 

4 (a) IN GENERAL.—Section 45(b)(4)(A) of the Inter5 nal Revenue Code of 1986 (relating to credit rate) is 

6 amended by inserting ‘‘and before 2008’’ after ‘‘2003’’. 

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

8 this section shall apply to electricity produced and sold 

9 after December 31, 2007. 

10 SEC. 113. EXTENSION OF CREDIT FOR PRODUCING ELEC11 TRICITY FROM CERTAIN RENEWABLE RE12 SOURCES. 

13 Subsection (d) of section 45 of the Internal Revenue 

14 Code of 1986 is amended by striking ‘‘January 1, 2009’’ 

15 each place it appears and inserting ‘‘January 1, 2014’’. 

16 SEC. 114. EXPANSION OF CREDIT FOR ELECTRICITY PRO17 DUCED FROM AGRICULTURAL LIVESTOCK 

18 WASTE NUTRIENTS. 

19 (a) INCREASE IN CREDIT RATE.—Subparagraph (A) 

20 of section 45(b)(4) of the Internal Revenue Code of 1986 

21 (relating to credit rate) is amended by striking ‘‘para22 graph (3),’’ and inserting ‘‘paragraph (3) (other than sub23 paragraph (A)(i) thereof),’’. 

24 (b) BIOGAS AND THERMAL ENERGY PRODUCED

25 FROM AGRICULTURAL LIVESTOCK WASTE NUTRIENTS.— 

26 Section 45(e) of such Code (relating to definitions and 


hsrobinson on PROD1PC76 with BILLS
25 

•HR 5437 IH

1 special rules) is amended by adding at the end the fol2 lowing new paragraph: 

3 ‘‘(12) BIOGAS AND THERMAL ENERGY PRO4 DUCED FROM AGRICULTURAL LIVESTOCK WASTE NU5 TRIENTS.— 

6 ‘‘(A) IN GENERAL.—In the case of an 

7 open-loop biomass facility, the term ‘kilowatt 

8 hour of electricity’ in paragraph (2) of sub9 section (a) shall mean kilowatt hours of elec10 tricity and kilowatt-equivalent hours of biogas, 

11 synthesis gas, and thermal energy produced 

12 from agricultural livestock waste nutrients. 

13 ‘‘(B) CLARIFICATION.—Any requirements 

14 related to electricity production under para15 graph (3) of subsection (d) shall not cause a fa16 cility producing biogas, synthesis gas, or ther17 mal energy from agricultural livestock waste 

18 nutrients to fail to be treated as a qualified fa19 cility under subsection (d).’’. 

20 (c) CREDIT ALLOWED FOR ON-SITE USE.—Section 

21 45(e) of such Code (relating to definitions and special 

22 rules) is amended by adding at the end the following new 

23 paragraph: 

24 ‘‘(13) CREDIT ALLOWED FOR ON-SITE USE.—In 

25 the case of electricity or biogas, synthesis gas, or 


hsrobinson on PROD1PC76 with BILLS
26 

•HR 5437 IH

1 thermal energy produced at any facility described in 

2 paragraph (3) of subsection (d) which is equipped 

3 with net metering to determine electricity consump4 tion or sale (such consumption or sale to be verified 

5 by a third party as determined by the Secretary), 

6 subsection (a)(2) shall be applied without regard to 

7 subparagraph (B) thereof.’’. 

8 (d) EFFECTIVE DATES.— 

9 (1) IN GENERAL.—Except as provided in para10 graph (2), the amendments made by this section 

11 shall apply to taxable years ending after December 

12 31, 2006. 

13 (2) SUBSECTION (c).—The amendment made 

14 by subsection (c) shall apply to facilities placed in 

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

16 SEC. 115. CREDIT FOR INSTALLATION OF WIND ENERGY 

17 PROPERTY INCLUDING BY RURAL HOME18 OWNERS, FARMERS, RANCHERS, AND SMALL 

19 BUSINESSES. 

20 (a) IN GENERAL.—Subpart B of part IV of sub21 chapter A of chapter 1 of the Internal Revenue Code of 

22 1986 is amended by adding at the end the following new 

23 section: 


hsrobinson on PROD1PC76 with BILLS
27 

•HR 5437 IH

1 ‘‘SEC. 30D. WIND ENERGY PROPERTY. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al3 lowed as a credit against the tax imposed by this chapter 

4 for the taxable year an amount equal to $1,500 with re5 spect to each half kilowatt of capacity of qualified wind 

6 energy property placed in service or installed by the tax7 payer during such taxable year. 

8 ‘‘(b) LIMITATION.—No credit shall be allowed under 

9 subsection (a) unless at least 50 percent of the energy pro10 duced annually by the qualified wind energy property is 

11 consumed on the site on which the property is placed in 

12 service or installed. 

13 ‘‘(c) QUALIFIED WIND ENERGY PROPERTY.—For 

14 purposes of this section, the term ‘qualified wind energy 

15 property’ means a wind turbine of 100 kilowatts of rated 

16 capacity or less if— 

17 ‘‘(1) such turbine is placed in service or in18 stalled on or in connection with property located in 

19 the United States, 

20 ‘‘(2) in the case of an individual, the property 

21 on or in connection with which such turbine is in22 stalled is a dwelling unit, and 

23 ‘‘(3) the original use of such turbine commences 

24 with the taxpayer. 

25 ‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.— 


hsrobinson on PROD1PC76 with BILLS
28 

•HR 5437 IH

1 ‘‘(1) IN GENERAL.—The credit allowed under 

2 subsection (a) for any taxable year shall not exceed 

3 the excess of— 

4 ‘‘(A) the sum of the regular tax liability 

5 (as defined in section 26(b)) plus the tax im6 posed by section 55, over 

7 ‘‘(B) the sum of the credits allowable 

8 under this part (other than under this section 

9 and subpart C thereof, relating to refundable 

10 credits) and section 1397E. 

11 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

12 credit allowable under subsection (a) exceeds the 

13 limitation imposed by paragraph (1) for such taxable 

14 year, such excess shall be carried to the succeeding 

15 taxable year and added to the credit allowable under 

16 subsection (a) for such taxable year. 

17 ‘‘(e) SPECIAL RULES.—For purposes of this sec18 tion— 

19 ‘‘(1) TENANT-STOCKHOLDER IN COOPERATIVE

20 HOUSING CORPORATION.—In the case of an indi21 vidual who is a tenant-stockholder (as defined in sec22 tion 216(b)(2)) in a cooperative housing corporation 

23 (as defined in section 216(b)(1)), such individual 

24 shall be treated as having paid his tenant-stock25 holder’s proportionate share (as defined in section 


hsrobinson on PROD1PC76 with BILLS
29 

•HR 5437 IH

1 216(b)(3)) of any expenditures paid or incurred for 

2 qualified wind energy property by such corporation, 

3 and such credit shall be allocated appropriately to 

4 such individual. 

5 ‘‘(2) CONDOMINIUMS.— 

6 ‘‘(A) IN GENERAL.—In the case of an indi7 vidual who is a member of a condominium man8 agement association with respect to a condo9 minium which he owns, such individual shall be 

10 treated as having paid his proportionate share 

11 of expenditures paid or incurred for qualified 

12 wind energy property by such association, and 

13 such credit shall be allocated appropriately to 

14 such individual. 

15 ‘‘(B) CONDOMINIUM MANAGEMENT ASSO16 CIATION.—For purposes of this paragraph, the 

17 term ‘condominium management association’ 

18 means an organization which meets the require19 ments of section 528(c)(2) with respect to a 

20 condominium project of which substantially all 

21 of the units are used by individuals as dwelling 

22 units. 

23 ‘‘(f) BASIS ADJUSTMENT.—For purposes of this sub24 title, if a credit is allowed under this section for any ex25 penditure with respect to a dwelling unit or other propVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
30 

•HR 5437 IH

1 erty, the increase in the basis of such dwelling unit or 

2 other property which would (but for this subsection) result 

3 from such expenditure shall be reduced by the amount of 

4 the credit so allowed. 

5 ‘‘(g) APPLICATION OF CREDIT.—The credit allowed 

6 under this section shall apply to property placed in service 

7 or installed after December 31, 2007, and before January 

8 1, 2012.’’. 

9 (b) CONFORMING AMENDMENT.—Subsection (a) of 

10 section 1016 of the Internal Revenue Code of 1986 (relat11 ing to general rule for adjustments to basis) is amended 

12 by striking ‘‘and’’ at the end of paragraph (36), by strik13 ing the period at the end of paragraph (37) and inserting 

14 ‘‘, and’’, and by adding at the end the following new para15 graph: 

16 ‘‘(38) in the case of a dwelling unit or other 

17 property with respect to which a credit was allowed 

18 under section 30D, to the extent provided in section 

19 30D(f).’’. 

20 (c) CLERICAL AMENDMENT.—The table of sections 

21 for subpart B of part IV of subchapter A of chapter 1 

22 of the Internal Revenue Code of 1986 is amended by in23 serting after the item relating to section 30C the following 

24 new item: 

‘‘Sec. 30D. Wind energy property.’’. 


hsrobinson on PROD1PC76 with BILLS
31 

•HR 5437 IH

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

2 this section shall apply to taxable years ending after the 

3 date of the enactment of this Act. 

4 SEC. 116. 3-YEAR ACCELERATED DEPRECIATION PERIOD 

5 FOR WIND ENERGY PROPERTY. 

6 (a) IN GENERAL.—Subparagraph (A) of section 

7 168(e)(3) of the Internal Revenue Code of 1986 is amend8 ed by striking ‘‘and’’ at the end of clause (ii), by striking 

9 the period at the end of clause (iii) and inserting ‘‘, and’’, 

10 and by inserting after clause (iii) the following new clause: 

11 ‘‘(iv) any property which would be de12 scribed in subparagraph (A) of section 

13 48(a)(3) if ‘wind energy’ were substituted 

14 for ‘solar energy’ in clause (i) thereof and 

15 the last sentence of such section did not 

16 apply to such subparagraph.’’. 

17 (b) CONFORMING AMENDMENT.—Section 

18 168(e)(3)(B)(vi)(I) of such Code is amended to read as 

19 follows: 

20 ‘‘(I) is described in subparagraph 

21 (A) of section 48(a)(3) if the last sen22 tence of such section did not apply to 

23 such subparagraph,’’. 

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

25 this section shall apply to property placed in service in 


hsrobinson on PROD1PC76 with BILLS
32 

•HR 5437 IH

1 taxable years ending after the date of the enactment of 

2 this Act. 

3 SEC. 117. REPEAL OF DOLLAR LIMITATION AND ALLOW4 ANCE AGAINST ALTERNATIVE MINIMUM TAX 

5 FOR RESIDENTIAL SOLAR AND FUEL CELL 

6 PROPERTY CREDIT. 

7 (a) REPEAL OF MAXIMUM DOLLAR LIMITATION.— 

8 (1) IN GENERAL.—Subsection (b) of section 

9 25D of the Internal Revenue Code of 1986 (relating 

10 to limitations) is amended to read as follows: 

11 ‘‘(b) CERTIFICATION OF SOLAR WATER HEATING

12 PROPERTY.—No credit shall be allowed under this section 

13 for an item of property described in subsection (d)(1) un14 less such property is certified for performance by the non15 profit Solar Rating Certification Corporation or a com16 parable entity endorsed by the government of the State 

17 in which such property is installed.’’. 

18 (2) CONFORMING AMENDMENTS.— 

19 (A) Subsection (e) of section 25D of such 

20 Code is amended by striking paragraph (4) and 

21 by redesignating paragraphs (5) through (9) as 

22 paragraphs (4) through (8), respectively. 

23 (B) Paragraph (1) of section 25C(e) of 

24 such Code is amended by striking ‘‘(8), and 

25 (9)’’ and inserting ‘‘and (8) (and paragraph (4) 


hsrobinson on PROD1PC76 with BILLS
33 

•HR 5437 IH

1 as in effect before its repeal by the American2 Made Energy Act of 2008)’’. 

3 (b) CREDIT ALLOWED AGAINST ALTERNATIVE MIN4 IMUM TAX.— 

5 (1) IN GENERAL.—Subsection (c) of section 

6 25D of such Code is amended to read as follows: 

7 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX; 

8 CARRYFORWARD OF UNUSED CREDIT.— 

9 ‘‘(1) LIMITATION BASED ON AMOUNT OF

10 TAX.—In the case of a taxable year to which section 

11 26(a)(2) does not apply, the credit allowed under 

12 subsection (a) for the taxable year shall not exceed 

13 the excess of— 

14 ‘‘(A) the sum of the regular tax liability 

15 (as defined in section 26(b)) plus the tax im16 posed by section 55, over 

17 ‘‘(B) the sum of the credits allowable 

18 under this subpart (other than this section) and 

19 section 27 for the taxable year. 

20 ‘‘(2) CARRYFORWARD OF UNUSED CREDIT.— 

21 ‘‘(A) RULE FOR YEARS IN WHICH ALL

22 PERSONAL CREDITS ALLOWED AGAINST REG23 ULAR AND ALTERNATIVE MINIMUM TAX.—In 

24 the case of a taxable year to which section 

25 26(a)(2) applies, if the credit allowable under 


hsrobinson on PROD1PC76 with BILLS
34 

•HR 5437 IH

1 subsection (a) exceeds the limitation imposed by 

2 section 26(a)(2) for such taxable year reduced 

3 by the sum of the credits allowable under this 

4 subpart (other than this section), such excess 

5 shall be carried to the succeeding taxable year 

6 and added to the credit allowable under sub7 section (a) for such succeeding taxable year. 

8 ‘‘(B) RULE FOR OTHER YEARS.—In the 

9 case of a taxable year to which section 26(a)(2) 

10 does not apply, if the credit allowable under 

11 subsection (a) exceeds the limitation imposed by 

12 paragraph (1) for such taxable year, such ex13 cess shall be carried to the succeeding taxable 

14 year and added to the credit allowable under 

15 subsection (a) for such succeeding taxable 

16 year.’’. 

17 (2) CONFORMING AMENDMENTS.— 

18 (A) Section 23(b)(4)(B) of such Code is 

19 amended by inserting ‘‘and section 25D’’ after 

20 ‘‘this section’’. 

21 (B) Section 24(b)(3)(B) of such Code is 

22 amended by striking ‘‘and 25B’’ and inserting 

23 ‘‘, 25B, and 25D’’. 


hsrobinson on PROD1PC76 with BILLS
35 

•HR 5437 IH

1 (C) Section 25B(g)(2) of such Code is 

2 amended by striking ‘‘section 23’’ and inserting 

3 ‘‘sections 23 and 25D’’. 

4 (D) Section 26(a)(1) of such Code is 

5 amended by striking ‘‘and 25B’’ and inserting 

6 ‘‘25B, and 25D’’. 

7 (c) EFFECTIVE DATES.— 

8 (1) IN GENERAL.—Except as otherwise pro9 vided in this subsection, the amendments made by 

10 this section shall apply to expenditures made after 

11 the date of the enactment of this Act. 

12 (2) ALLOWANCE AGAINST ALTERNATIVE MIN13 IMUM TAX.— 

14 (A) IN GENERAL.—The amendments made 

15 by subsection (b) shall apply to taxable years 

16 beginning after the date of the enactment of 

17 this Act. 

18 (B) APPLICATION OF EGTRRA SUNSET.— 

19 The amendments made by subparagraphs (A) 

20 and (B) of subsection (b)(2) shall be subject to 

21 title IX of the Economic Growth and Tax Relief 

22 Reconciliation Act of 2001 in the same manner 

23 as the provisions of such Act to which such 

24 amendments relate. 


hsrobinson on PROD1PC76 with BILLS
36 

•HR 5437 IH

1 SEC. 118. NEW CLEAN RENEWABLE ENERGY BONDS. 

2 (a) IN GENERAL.—Part IV of subchapter A of chap3 ter 1 of the Internal Revenue Code of 1986 (relating to 

4 credits against tax) is amended by adding at the end the 

5 following new subpart: 

6 ‘‘Subpart I—Qualified Tax Credit Bonds 

‘‘Sec. 54A. Credit to holders of qualified tax credit bonds. 

‘‘Sec. 54B. New clean renewable energy bonds. 

7 ‘‘SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CRED8 IT BONDS. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds 

10 a qualified tax credit bond on one or more credit allowance 

11 dates of the bond during any taxable year, there shall be 

12 allowed as a credit against the tax imposed by this chapter 

13 for the taxable year an amount equal to the sum of the 

14 credits determined under subsection (b) with respect to 

15 such dates. 

16 ‘‘(b) AMOUNT OF CREDIT.— 

17 ‘‘(1) IN GENERAL.—The amount of the credit 

18 determined under this subsection with respect to any 

19 credit allowance date for a qualified tax credit bond 

20 is 25 percent of the annual credit determined with 

21 respect to such bond. 

22 ‘‘(2) ANNUAL CREDIT.—The annual credit de23 termined with respect to any qualified tax credit 

24 bond is the product of— 


hsrobinson on PROD1PC76 with BILLS
37 

•HR 5437 IH

1 ‘‘(A) the applicable credit rate, multiplied 

2 by 

3 ‘‘(B) the outstanding face amount of the 

4 bond. 

5 ‘‘(3) APPLICABLE CREDIT RATE.—For purposes 

6 of paragraph (2), the applicable credit rate is the 

7 rate which the Secretary estimates will permit the 

8 issuance of qualified tax credit bonds with a speci9 fied maturity or redemption date without discount 

10 and without interest cost to the qualified issuer. The 

11 applicable credit rate with respect to any qualified 

12 tax credit bond shall be determined as of the first 

13 day on which there is a binding, written contract for 

14 the sale or exchange of the bond. 

15 ‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE16 DEMPTION.—In the case of a bond which is issued 

17 during the 3-month period ending on a credit allow18 ance date, the amount of the credit determined 

19 under this subsection with respect to such credit al20 lowance date shall be a ratable portion of the credit 

21 otherwise determined based on the portion of the 3- 

22 month period during which the bond is outstanding. 

23 A similar rule shall apply when the bond is redeemed 

24 or matures. 

25 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 


hsrobinson on PROD1PC76 with BILLS
38 

•HR 5437 IH

1 ‘‘(1) IN GENERAL.—The credit allowed under 

2 subsection (a) for any taxable year shall not exceed 

3 the excess of— 

4 ‘‘(A) the sum of the regular tax liability 

5 (as defined in section 26(b)) plus the tax im6 posed by section 55, over 

7 ‘‘(B) the sum of the credits allowable 

8 under this part (other than subpart C and this 

9 subpart). 

10 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

11 credit allowable under subsection (a) exceeds the 

12 limitation imposed by paragraph (1) for such taxable 

13 year, such excess shall be carried to the succeeding 

14 taxable year and added to the credit allowable under 

15 subsection (a) for such taxable year (determined be16 fore the application of paragraph (1) for such suc17 ceeding taxable year). 

18 ‘‘(d) QUALIFIED TAX CREDIT BOND.—For purposes 

19 of this section— 

20 ‘‘(1) QUALIFIED TAX CREDIT BOND.—The term 

21 ‘qualified tax credit bond’ means a new clean renew22 able energy bond which is part of an issue that 

23 meets the requirements of paragraphs (2), (3), (4), 

24 (5), and (6). 


hsrobinson on PROD1PC76 with BILLS
39 

•HR 5437 IH

1 ‘‘(2) SPECIAL RULES RELATING TO EXPENDI2 TURES.— 

3 ‘‘(A) IN GENERAL.—An issue shall be 

4 treated as meeting the requirements of this 

5 paragraph if, as of the date of issuance, the 

6 issuer reasonably expects— 

7 ‘‘(i) 100 percent or more of the avail8 able project proceeds to be spent for 1 or 

9 more qualified purposes within the 3-year 

10 period beginning on such date of issuance, 

11 and 

12 ‘‘(ii) a binding commitment with a 

13 third party to spend at least 10 percent of 

14 such available project proceeds will be in15 curred within the 6-month period begin16 ning on such date of issuance. 

17 ‘‘(B) FAILURE TO SPEND REQUIRED

18 AMOUNT OF BOND PROCEEDS WITHIN 3

19 YEARS.— 

20 ‘‘(i) IN GENERAL.—To the extent that 

21 less than 100 percent of the available 

22 project proceeds of the issue are expended 

23 by the close of the expenditure period for 

24 1 or more qualified purposes, the issuer 

25 shall redeem all of the nonqualified bonds 


hsrobinson on PROD1PC76 with BILLS
40 

•HR 5437 IH

1 within 90 days after the end of such pe2 riod. For purposes of this paragraph, the 

3 amount of the nonqualified bonds required 

4 to be redeemed shall be determined in the 

5 same manner as under section 142. 

6 ‘‘(ii) EXPENDITURE PERIOD.—For 

7 purposes of this subpart, the term ‘expend8 iture period’ means, with respect to any 

9 issue, the 3-year period beginning on the 

10 date of issuance. Such term shall include 

11 any extension of such period under clause 

12 (iii). 

13 ‘‘(iii) EXTENSION OF PERIOD.—Upon 

14 submission of a request prior to the expira15 tion of the expenditure period (determined 

16 without regard to any extension under this 

17 clause), the Secretary may extend such pe18 riod if the issuer establishes that the fail19 ure to expend the proceeds within the 

20 original expenditure period is due to rea21 sonable cause and the expenditures for 

22 qualified purposes will continue to proceed 

23 with due diligence. 


hsrobinson on PROD1PC76 with BILLS
41 

•HR 5437 IH

1 ‘‘(C) QUALIFIED PURPOSE.—For purposes 

2 of this paragraph, the term ‘qualified purpose’ 

3 means a purpose specified in section 54B(a)(1). 

4 ‘‘(D) REIMBURSEMENT.—For purposes of 

5 this subtitle, available project proceeds of an 

6 issue shall be treated as spent for a qualified 

7 purpose if such proceeds are used to reimburse 

8 the issuer for amounts paid for a qualified pur9 pose after the date that the Secretary makes an 

10 allocation of bond limitation with respect to 

11 such issue, but only if— 

12 ‘‘(i) prior to the payment of the origi13 nal expenditure, the issuer declared its in14 tent to reimburse such expenditure with 

15 the proceeds of a qualified tax credit bond, 

16 ‘‘(ii) not later than 60 days after pay17 ment of the original expenditure, the issuer 

18 adopts an official intent to reimburse the 

19 original expenditure with such proceeds, 

20 and 

21 ‘‘(iii) the reimbursement is made not 

22 later than 18 months after the date the 

23 original expenditure is paid. 

24 ‘‘(3) REPORTING.—An issue shall be treated as 

25 meeting the requirements of this paragraph if the 


hsrobinson on PROD1PC76 with BILLS
42 

•HR 5437 IH

1 issuer of qualified tax credit bonds submits reports 

2 similar to the reports required under section 149(e). 

3 ‘‘(4) SPECIAL RULES RELATING TO ARBI4 TRAGE.— 

5 ‘‘(A) IN GENERAL.—An issue shall be 

6 treated as meeting the requirements of this 

7 paragraph if the issuer satisfies the require8 ments of section 148 with respect to the pro9 ceeds of the issue. 

10 ‘‘(B) SPECIAL RULE FOR INVESTMENTS

11 DURING EXPENDITURE PERIOD.—An issue shall 

12 not be treated as failing to meet the require13 ments of subparagraph (A) by reason of any in14 vestment of available project proceeds during 

15 the expenditure period. 

16 ‘‘(C) SPECIAL RULE FOR RESERVE

17 FUNDS.—An issue shall not be treated as fail18 ing to meet the requirements of subparagraph 

19 (A) by reason of any fund which is expected to 

20 be used to repay such issue if— 

21 ‘‘(i) such fund is funded at a rate not 

22 more rapid than equal annual installments, 

23 ‘‘(ii) such fund is funded in a manner 

24 that such fund will not exceed the amount 

25 necessary to repay the issue if invested at 


hsrobinson on PROD1PC76 with BILLS
43 

•HR 5437 IH

1 the maximum rate permitted under clause 

2 (iii), and 

3 ‘‘(iii) the yield on such fund is not 

4 greater than the discount rate determined 

5 under paragraph (5)(B) with respect to the 

6 issue. 

7 ‘‘(5) MATURITY LIMITATION.— 

8 ‘‘(A) IN GENERAL.—An issue shall not be 

9 treated as meeting the requirements of this 

10 paragraph if the maturity of any bond which is 

11 part of such issue exceeds the maximum term 

12 determined by the Secretary under subpara13 graph (B). 

14 ‘‘(B) MAXIMUM TERM.—During each cal15 endar month, the Secretary shall determine the 

16 maximum term permitted under this paragraph 

17 for bonds issued during the following calendar 

18 month. Such maximum term shall be the term 

19 which the Secretary estimates will result in the 

20 present value of the obligation to repay the 

21 principal on the bond being equal to 50 percent 

22 of the face amount of such bond. Such present 

23 value shall be determined using as a discount 

24 rate the average annual interest rate of tax-ex25 empt obligations having a term of 10 years or 


hsrobinson on PROD1PC76 with BILLS
44 

•HR 5437 IH

1 more which are issued during the month. If the 

2 term as so determined is not a multiple of a 

3 whole year, such term shall be rounded to the 

4 next highest whole year. 

5 ‘‘(6) PROHIBITION ON FINANCIAL CONFLICTS

6 OF INTEREST.—An issue shall be treated as meeting 

7 the requirements of this paragraph if the issuer cer8 tifies that— 

9 ‘‘(A) applicable State and local law re10 quirements governing conflicts of interest are 

11 satisfied with respect to such issue, and 

12 ‘‘(B) if the Secretary prescribes additional 

13 conflicts of interest rules governing the appro14 priate Members of Congress, Federal, State, 

15 and local officials, and their spouses, such addi16 tional rules are satisfied with respect to such 

17 issue. 

18 ‘‘(e) OTHER DEFINITIONS.—For purposes of this 

19 subchapter— 

20 ‘‘(1) CREDIT ALLOWANCE DATE.—The term 

21 ‘credit allowance date’ means— 

22 ‘‘(A) March 15, 

23 ‘‘(B) June 15, 

24 ‘‘(C) September 15, and 

25 ‘‘(D) December 15. 


hsrobinson on PROD1PC76 with BILLS
45 

•HR 5437 IH

1 Such term includes the last day on which the bond 

2 is outstanding. 

3 ‘‘(2) BOND.—The term ‘bond’ includes any ob4 ligation. 

5 ‘‘(3) STATE.—The term ‘State’ includes the 

6 District of Columbia and any possession of the 

7 United States. 

8 ‘‘(4) AVAILABLE PROJECT PROCEEDS.—The 

9 term ‘available project proceeds’ means— 

10 ‘‘(A) the excess of— 

11 ‘‘(i) the proceeds from the sale of an 

12 issue, over 

13 ‘‘(ii) the issuance costs financed by 

14 the issue (to the extent that such costs do 

15 not exceed 2 percent of such proceeds), 

16 and 

17 ‘‘(B) the proceeds from any investment of 

18 the excess described in subparagraph (A). 

19 ‘‘(f) CREDIT TREATED AS INTEREST.—For purposes 

20 of this subtitle, the credit determined under subsection (a) 

21 shall be treated as interest which is includible in gross in22 come. 

23 ‘‘(g) S CORPORATIONS AND PARTNERSHIPS.—In the 

24 case of a tax credit bond held by an S corporation or part25 nership, the allocation of the credit allowed by this section 


hsrobinson on PROD1PC76 with BILLS
46 

•HR 5437 IH

1 to the shareholders of such corporation or partners of such 

2 partnership shall be treated as a distribution. 

3 ‘‘(h) BONDS HELD BY REGULATED INVESTMENT

4 COMPANIES AND REAL ESTATE INVESTMENT TRUSTS.— 

5 If any qualified tax credit bond is held by a regulated in6 vestment company or a real estate investment trust, the 

7 credit determined under subsection (a) shall be allowed to 

8 shareholders of such company or beneficiaries of such 

9 trust (and any gross income included under subsection (f) 

10 with respect to such credit shall be treated as distributed 

11 to such shareholders or beneficiaries) under procedures 

12 prescribed by the Secretary. 

13 ‘‘(i) CREDITS MAY BE STRIPPED.—Under regula14 tions prescribed by the Secretary— 

15 ‘‘(1) IN GENERAL.—There may be a separation 

16 (including at issuance) of the ownership of a quali17 fied tax credit bond and the entitlement to the credit 

18 under this section with respect to such bond. In case 

19 of any such separation, the credit under this section 

20 shall be allowed to the person who on the credit al21 lowance date holds the instrument evidencing the en22 titlement to the credit and not to the holder of the 

23 bond. 

24 ‘‘(2) CERTAIN RULES TO APPLY.—In the case 

25 of a separation described in paragraph (1), the rules 


hsrobinson on PROD1PC76 with BILLS
47 

•HR 5437 IH

1 of section 1286 shall apply to the qualified tax credit 

2 bond as if it were a stripped bond and to the credit 

3 under this section as if it were a stripped coupon. 

4 ‘‘SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS. 

5 ‘‘(a) NEW CLEAN RENEWABLE ENERGY BOND.—For 

6 purposes of this subpart, the term ‘new clean renewable 

7 energy bond’ means any bond issued as part of an issue 

8 if— 

9 ‘‘(1) 100 percent of the available project pro10 ceeds of such issue are to be used for capital expend11 itures incurred by public power providers or coopera12 tive electric companies for one or more qualified re13 newable energy facilities, 

14 ‘‘(2) the bond is issued by a qualified issuer, 

15 and 

16 ‘‘(3) the issuer designates such bond for pur17 poses of this section. 

18 ‘‘(b) REDUCED CREDIT AMOUNT.—The annual credit 

19 determined under section 54A(b) with respect to any new 

20 clean renewable energy bond shall be 70 percent of the 

21 amount so determined without regard to this subsection. 

22 ‘‘(c) LIMITATION ON AMOUNT OF BONDS DES23 IGNATED.— 

24 ‘‘(1) IN GENERAL.—The maximum aggregate 

25 face amount of bonds which may be designated 


hsrobinson on PROD1PC76 with BILLS
48 

•HR 5437 IH

1 under subsection (a) by any issuer shall not exceed 

2 the limitation amount allocated under this sub3 section to such issuer. 

4 ‘‘(2) NATIONAL LIMITATION ON AMOUNT OF

5 BONDS DESIGNATED.—There is a national new clean 

6 renewable energy bond limitation of $2,000,000,000 

7 which shall be allocated by the Secretary as provided 

8 in paragraph (3), except that— 

9 ‘‘(A) not more than 60 percent thereof 

10 may be allocated to qualified projects of public 

11 power providers, and 

12 ‘‘(B) not more than 40 percent thereof 

13 may be allocated to qualified projects of cooper14 ative electric companies. 

15 ‘‘(3) METHOD OF ALLOCATION.— 

16 ‘‘(A) ALLOCATION AMONG PUBLIC POWER

17 PROVIDERS.—After the Secretary determines 

18 the qualified projects of public power providers 

19 which are appropriate for receiving an alloca20 tion of the national new clean renewable energy 

21 bond limitation, the Secretary shall, to the max22 imum extent practicable, make allocations 

23 among such projects in such manner that the 

24 amount allocated to each such project bears the 

25 same ratio to the cost of such project as the 


hsrobinson on PROD1PC76 with BILLS
49 

•HR 5437 IH

1 limitation under subparagraph (2)(A) bears to 

2 the cost of all such projects. 

3 ‘‘(B) ALLOCATION AMONG COOPERATIVE

4 ELECTRIC COMPANIES.—The Secretary shall 

5 make allocations of the amount of the national 

6 new clean renewable energy bond limitation de7 scribed in paragraph (2)(B) among qualified 

8 projects of cooperative electric companies in 

9 such manner as the Secretary determines ap10 propriate. 

11 ‘‘(d) DEFINITIONS.—For purposes of this section— 

12 ‘‘(1) QUALIFIED RENEWABLE ENERGY FACIL13 ITY.—The term ‘qualified renewable energy facility’ 

14 means a qualified facility (as determined under sec15 tion 45(d) without regard to paragraphs (8) and 

16 (10) thereof and to any placed in service date) 

17 owned by a public power provider or a cooperative 

18 electric company. 

19 ‘‘(2) PUBLIC POWER PROVIDER.—The term 

20 ‘public power provider’ means a State utility with a 

21 service obligation, as such terms are defined in sec22 tion 217 of the Federal Power Act (as in effect on 

23 the date of the enactment of this paragraph). 

24 ‘‘(3) COOPERATIVE ELECTRIC COMPANY.—The 

25 term ‘cooperative electric company’ means a mutual 


hsrobinson on PROD1PC76 with BILLS
50 

•HR 5437 IH

1 or cooperative electric company described in section 

2 501(c)(12) or section 1381(a)(2)(C). 

3 ‘‘(4) CLEAN RENEWABLE ENERGY BOND LEND4 ER.—The term ‘clean renewable energy bond lender’ 

5 means a lender which is a cooperative which is 

6 owned by, or has outstanding loans to, 100 or more 

7 cooperative electric companies and is in existence on 

8 February 1, 2002, and shall include any affiliated 

9 entity which is controlled by such lender. 

10 ‘‘(5) QUALIFIED ISSUER.—The term ‘qualified 

11 issuer’ means a public power provider, a cooperative 

12 electric company, a clean renewable energy bond 

13 lender, or a not-for-profit electric utility which has 

14 received a loan or loan guarantee under the Rural 

15 Electrification Act.’’. 

16 (b) REPORTING.—Subsection (d) of section 6049 of 

17 such Code (relating to returns regarding payments of in18 terest) is amended by adding at the end the following new 

19 paragraph: 

20 ‘‘(9) REPORTING OF CREDIT ON QUALIFIED

21 TAX CREDIT BONDS.— 

22 ‘‘(A) IN GENERAL.—For purposes of sub23 section (a), the term ‘interest’ includes amounts 

24 includible in gross income under section 54A 

25 and such amounts shall be treated as paid on 


hsrobinson on PROD1PC76 with BILLS
51 

•HR 5437 IH

1 the credit allowance date (as defined in section 

2 54A(e)(1)). 

3 ‘‘(B) REPORTING TO CORPORATIONS, 

4 ETC.—Except as otherwise provided in regula5 tions, in the case of any interest described in 

6 subparagraph (A) of this paragraph, subsection 

7 (b)(4) of this section shall be applied without 

8 regard to subparagraphs (A), (H), (I), (J), (K), 

9 and (L)(i). 

10 ‘‘(C) REGULATORY AUTHORITY.—The Sec11 retary may prescribe such regulations as are 

12 necessary or appropriate to carry out the pur13 poses of this paragraph, including regulations 

14 which require more frequent or more detailed 

15 reporting.’’. 

16 (c) CONFORMING AMENDMENTS.— 

17 (1) Sections 54(c)(2) and 1400N(l)(3)(B) of 

18 such Code are each amended by striking ‘‘subpart 

19 C’’ and inserting ‘‘subparts C and I’’. 

20 (2) Section 1397E(c)(2) of such Code is 

21 amended by striking ‘‘subpart H’’ and inserting 

22 ‘‘subparts H and I’’. 

23 (3) Section 6401(b)(1) of such Code is amend24 ed by striking ‘‘and H’’ and inserting ‘‘H, and I’’. 


hsrobinson on PROD1PC76 with BILLS
52 

•HR 5437 IH

1 (4) The heading of subpart H of part IV of 

2 subchapter A of chapter 1 of such Code is amended 

3 by striking ‘‘Certain Bonds’’ and inserting 

4 ‘‘Clean Renewable Energy Bonds’’. 

5 (5) The table of subparts for part IV of sub6 chapter A of chapter 1 of such Code is amended by 

7 striking the item relating to subpart H and inserting 

8 the following new items: 

‘‘SUBPART H. NONREFUNDABLE CREDIT TO HOLDERS OF CLEAN RENEWABLE

ENERGY BONDS. 

‘‘SUBPART I. QUALIFIED TAX CREDIT BONDS.’’. 

9 (d) EFFECTIVE DATES.—The amendments made by 

10 this section shall apply to obligations issued after the date 

11 of the enactment of this Act. 

12 SEC. 119. EXTENSION AND MODIFICATION OF CREDIT FOR 

13 RESIDENTIAL ENERGY EFFICIENT PROP14 ERTY. 

15 (a) EXTENSION.—Subsection (g) of section 25D of 

16 the Internal Revenue Code of 1986 (relating to termi17 nation) is amended by striking ‘‘2008’’ and inserting 

18 ‘‘2016’’. 

19 (b) SOLAR ELECTRIC PROPERTY.—Paragraph (1) of 

20 section 25D(a) of such Code (relating to allowance of cred21 it) is amended by striking ‘‘30 percent of’’. 

22 (c) MODIFICATION OF MAXIMUM CREDIT.—Para23 graph (1) of section 25D(b) of the Internal Revenue Code 


hsrobinson on PROD1PC76 with BILLS
53 

•HR 5437 IH

1 of 1986 (relating to limitations) is amended to read as 

2 follows: 

3 ‘‘(1) MAXIMUM CREDIT.—The credit allowed 

4 under subsection (a) for any taxable year shall not 

5 exceed— 

6 ‘‘(A) $1,500 with respect to each half kilo7 watt of installed capacity of qualified solar elec8 tric property for which qualified solar electric 

9 property expenditures are made, 

10 ‘‘(B) $2,000 with respect to any qualified 

11 solar water heating property expenditures, and 

12 ‘‘(C) $500 with respect to each half kilo13 watt of capacity of qualified fuel cell property 

14 (as defined in section 48(c)(1)) for which quali15 fied fuel cell property expenditures are made.’’. 

16 (d) DEFINITION OF QUALIFIED SOLAR WATER

17 HEATING PROPERTY EXPENDITURE.—Paragraph (1) of 

18 section 25D(d) of such Code is amended by striking ‘‘to 

19 heat water for use in’’ and inserting ‘‘to heat or cool (or 

20 provide hot water for use in)’’. 

21 (e) DEFINITION OF QUALIFIED PHOTOVOLTAIC

22 PROPERTY EXPENDITURE.—Paragraph (2) of section 

23 25D(d) of such Code is amended by inserting ‘‘, including 

24 advanced energy storage systems installed as an inte25 grated component of the foregoing’’ after ‘‘taxpayer’’. 


hsrobinson on PROD1PC76 with BILLS
54 

•HR 5437 IH

1 (f) CREDIT ALLOWED AGAINST ALTERNATIVE MIN2 IMUM TAX.— 

3 (1) IN GENERAL.—Section 25D(b) of the Inter4 nal Revenue Code of 1986 (as amended by sub5 section (b)) is amended by adding at the end the fol6 lowing new paragraph: 

7 ‘‘(3) CREDIT ALLOWED AGAINST ALTERNATIVE

8 MINIMUM TAX.—The credit allowed under subsection 

9 (a) for the taxable year shall not exceed the excess 

10 of— 

11 ‘‘(A) the sum of the regular tax liability 

12 (as defined in section 26(b)) plus the tax im13 posed by section 55, over 

14 ‘‘(B) the sum of the credits allowable 

15 under subpart A of part IV of subchapter A 

16 (other than this section) and section 27 for the 

17 taxable year.’’. 

18 (2) CONFORMING AMENDMENTS.— 

19 (A) Subsection (c) of section 25D of such 

20 Code is amended to read as follows: 

21 ‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If the 

22 credit allowable under subsection (a) for any taxable year 

23 exceeds the limitation imposed by subsection (b)(3) for 

24 such taxable year, such excess shall be carried to the sucVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
55 

•HR 5437 IH

1 ceeding taxable year and added to the credit allowable 

2 under subsection (a) for such succeeding taxable year.’’. 

3 (B) Section 23(b)(4)(B) of such Code is 

4 amended by inserting ‘‘and section 25D’’ after 

5 ‘‘this section’’. 

6 (C) Section 24(b)(3)(B) of such Code is 

7 amended by striking ‘‘sections 23 and 25B’’ 

8 and inserting ‘‘sections 23, 25B, and 25D’’. 

9 (D) Section 26(a)(1) of such Code is 

10 amended by striking ‘‘and 25B’’ and inserting 

11 ‘‘25B, and 25D’’. 

12 (g) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to expenditures made in taxable 

14 years beginning after December 31, 2006. 

15 Subtitle C—Coal-to-Liquid Fuel 

16 SEC. 121. EXTENSION OF ALTERNATIVE FUEL CREDIT FOR 

17 FUEL DERIVED FROM COAL. 

18 (a) ALTERNATIVE FUEL CREDIT.—Paragraph (4) of 

19 section 6426(d) of the Internal Revenue Code of 1986 is 

20 amended to read as follows: 

21 ‘‘(4) TERMINATION.—This subsection shall not 

22 apply to— 

23 ‘‘(A) any sale or use involving liquid fuel 

24 derived from a feedstock that is primarily doVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
56 

•HR 5437 IH

1 mestic coal (including peat) for any period after 

2 September 30, 2020, 

3 ‘‘(B) any sale or use involving liquified hy4 drogen for any period after September 30, 

5 2014, and 

6 ‘‘(C) any other sale or use for any period 

7 after September 30, 2009.’’. 

8 (b) PAYMENTS.— 

9 (1) IN GENERAL.—Paragraph (5) of section 

10 6427(e) of the Internal Revenue Code of 1986 is 

11 amended by striking ‘‘and’’ and the end of subpara12 graph (C), by striking the period at the end of sub13 paragraph (D) and inserting ‘‘, and’’, and by adding 

14 at the end the following new subparagraph: 

15 ‘‘(E) any alternative fuel or alternative fuel 

16 mixture (as so defined) involving transportation 

17 grade liquid fuel derived from coal (including 

18 peat) sold or used after September 30, 2020.’’. 

19 (2) CONFORMING AMENDMENT.—Section 

20 6427(e)(5)(C) of such Code is amended by striking 

21 ‘‘subparagraph (D)’’ and inserting ‘‘subparagraphs 

22 (D) and (E)’’. 

23 (c) CONFORMING AMENDMENT.—Section 

24 6426(d)(2)(E) of such Code is amended by inserting 


hsrobinson on PROD1PC76 with BILLS
57 

•HR 5437 IH

1 ‘‘transportation grade’’ before ‘‘liquid fuel’’ and by strik2 ing ‘‘through the Fischer-Tropsch process’’. 

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

4 this section shall apply to any sale or use for any period 

5 after the date of enactment of this Act. 

6 Subtitle D—Energy Efficiency 

7 SEC. 131. EXTENSION OF NEW ENERGY EFFICIENT HOME 

8 CREDIT. 

9 (a) IN GENERAL.—Section 45L(g) of the Internal 

10 Revenue Code of 1986 is amended by striking ‘‘December 

11 31, 2008’’ and inserting ‘‘December 31, 2013’’. 

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

13 this section shall apply to qualified new energy efficient 

14 homes acquired after the date of enactment of this Act, 

15 in taxable years ending after such date. 

16 SEC. 132. MODIFICATION AND EXTENSION OF ENERGY EF17 FICIENT COMMERCIAL BUILDINGS DEDUC18 TION. 

19 (a) INCREASE IN CREDIT AMOUNT.— 

20 (1) IN GENERAL.—Subparagraph (A) of section 

21 179D(b)(1) of the Internal Revenue Code of 1986 is 

22 amended by striking ‘‘$1.80’’ and inserting ‘‘$2.25’’. 

23 (2) PARTIAL ALLOWANCE.—Subparagraph (A) 

24 of section 179D(d)(1) of such Code is amended— 


hsrobinson on PROD1PC76 with BILLS
58 

•HR 5437 IH

1 (A) by striking ‘‘$.60’’ and inserting 

2 ‘‘$.75’’, and 

3 (B) by striking ‘‘$1.80’’ and inserting 

4 ‘‘$2.25’’. 

5 (b) EXTENSION.—Section 179D(h) of such Code is 

6 amended by striking ‘‘December 31, 2007’’ and inserting 

7 ‘‘December 31, 2013’’. 

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

9 this section shall apply to property placed in service after 

10 December 31, 2006. 

11 Subtitle E—Alternative Vehicle 

12 Fuels 

13 SEC. 141. CONSUMER CREDIT FOR PURCHASE OF FLEXIBLE 

14 FUEL MOTOR VEHICLE. 

15 (a) IN GENERAL.—Section 30B of the Internal Rev16 enue Code of 1986 (relating to alternative motor vehicle 

17 credit) is amended— 

18 (1) in subsection (a) by striking ‘‘and’’ at the 

19 end of paragraph (3), by striking the period and in20 serting ‘‘, and’’ at the end of paragraph (4), and by 

21 adding at the end the following new paragraph: 

22 ‘‘(5) the qualified flexible fuel motor vehicle 

23 credit determined under subsection (f).’’, and 

24 (2) by redesignating subsections (f), (g), (h), 

25 (i), and (j) as subsections (g), (h), (i), (j), and (k), 


hsrobinson on PROD1PC76 with BILLS
59 

•HR 5437 IH

1 respectively, and by inserting after subsection (e) the 

2 following new subsection: 

3 ‘‘(f) QUALIFIED FLEXIBLE FUEL MOTOR VEHICLE

4 CREDIT.— 

5 ‘‘(1) ALLOWANCE OF CREDIT.—For purposes of 

6 subsection (a), the qualified flexible fuel motor vehi7 cle credit determined under this subsection for the 

8 taxable year is an amount equal to the sum of— 

9 ‘‘(A) $100 for each qualified flexible fuel 

10 motor vehicle placed in service by the taxpayer 

11 during the taxable year that is not a new quali12 fied hybrid motor vehicle (as described in sub13 section (d)(3)), plus 

14 ‘‘(B) $200 for each qualified flexible fuel 

15 motor vehicle placed in service by the taxpayer 

16 during the taxable year that is a new qualified 

17 hybrid motor vehicle (as described in subsection 

18 (d)(3)). 

19 ‘‘(2) QUALIFIED FLEXIBLE FUEL MOTOR VEHI20 CLE.—For purposes of this subsection— 

21 ‘‘(A) IN GENERAL.—The term ‘qualified 

22 flexible fuel motor vehicle’ means a vehicle ca23 pable of operating on gasoline and on any mix24 ture containing gasoline and up to 85 percent 

25 ethanol. 


hsrobinson on PROD1PC76 with BILLS
60 

•HR 5437 IH

1 ‘‘(B) OTHER REQUIREMENTS.—A vehicle 

2 meets the requirements of this paragraph if— 

3 ‘‘(i) the original use of the vehicle 

4 commences with the taxpayer, 

5 ‘‘(ii) the vehicle is acquired for use or 

6 lease by the taxpayer and not for resale, 

7 and 

8 ‘‘(iii) the vehicle is made by a manu9 facturer in the United States.’’. 

10 (b) TERMINATION.—Subsection (k) of section 30B of 

11 such Code (as redesignated by subsection (a)) is amended 

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

13 the period and inserting ‘‘, and’’ at the end of paragraph 

14 (4), and by adding at the end the following new para15 graph: 

16 ‘‘(5) in the case of a qualified flexible fuel 

17 motor vehicle (as described in subsection (f)(2)), De18 cember 31, 2012.’’. 

19 (c) CONFORMING AMENDMENTS.— 

20 (1) Paragraph (4) of section 30B(i) of such 

21 Code (as redesignated by subsection (a)) is amended 

22 by striking ‘‘subsection (g)’’ and inserting ‘‘sub23 section (h)’’. 

24 (2) Paragraph (6) of section 30B(i) of such 

25 Code (as redesignated by subsection (a)) is amended 


hsrobinson on PROD1PC76 with BILLS
61 

•HR 5437 IH

1 by striking ‘‘subsection (g)’’ each place it appears 

2 and inserting ‘‘subsection (h)’’. 

3 (3) Paragraph (25) of section 38(b) of such 

4 Code is amended by striking ‘‘section 30B(g)(1)’’ 

5 and inserting ‘‘section 30B(h)(1)’’. 

6 (4) Paragraph (3) of section 55(c) of such Code 

7 is amended by striking ‘‘30B(g)(2)’’ and inserting 

8 ‘‘30B(h)(2)’’. 

9 (5) Paragraph (36) of section 1016(a) of such 

10 Code is amended by striking ‘‘section 30B(h)(4)’’ 

11 and inserting ‘‘section 30B(i)(4)’’. 

12 (6) Subsection (m) of section 6501 of such 

13 Code is amended by striking ‘‘30B(h)(9)’’ and in14 serting ‘‘30B(i)(9)’’. 

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

16 this section shall apply to purchases made after the date 

17 of the enactment of this Act, in taxable years ending after 

18 such date. 

19 SEC. 142. REPEAL OF PROHIBITION ON PROCUREMENT 

20 AND ACQUISITION OF ALTERNATIVE FUELS. 

21 Section 526 of the Energy Independence and Security 

22 Act of 2007 is hereby repealed. 


hsrobinson on PROD1PC76 with BILLS
62 

•HR 5437 IH

1 Subtitle F—Biofuel Production 

2 SEC. 151. EXTENSION AND MODIFICATION OF CREDITS FOR 

3 BIODIESEL AND RENEWABLE DIESEL. 

4 (a) IN GENERAL.—Sections 40A(g), 6426(c)(6), and 

5 6427(e)(5)(B) of the Internal Revenue Code of 1986 are 

6 each amended by striking ‘‘December 31, 2008’’ and in7 serting ‘‘December 31, 2010’’. 

8 (b) UNIFORM TREATMENT OF DIESEL PRODUCED

9 FROM BIOMASS.—Paragraph (3) of section 40A(f) of such 

10 Code is amended by striking ‘‘using a thermal 

11 depolymerization process’’. 

12 (c) ELIGIBILITY OF CERTAIN AVIATION FUEL.—Sec13 tion 40A(f)(3) of such Code (defining renewable diesel) 

14 is amended by adding at the end the following new flush 

15 sentence: ‘‘The term ‘renewable diesel’ also means fuel de16 rived from biomass (as defined in section 45K(c)(3)) using 

17 a thermal depolymerization process which meets the re18 quirements of a Department of Defense specification for 

19 military jet fuel or an American Society of Testing and 

20 Materials specification for aviation turbine fuel.’’. 

21 (d) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendments made by this section 

24 shall apply to fuel produced, and sold or used, after 

25 the date of the enactment of this Act. 


hsrobinson on PROD1PC76 with BILLS
63 

•HR 5437 IH

1 (2) UNIFORM TREATMENT OF DIESEL PRO2 DUCED FROM BIOMASS.—The amendments made by 

3 subsection (b) shall apply to fuel produced, and sold 

4 or used, after the date which is 30 days after the 

5 date of the enactment of this Act. 

6 Subtitle G—Oil and Gas Provisions 

7 SEC. 161. EXPENSING FOR CRUDE OIL REFINERIES. 

8 (a) IN GENERAL.—Subsection (c) of section 179C of 

9 the Internal Revenue Code of 1986 (relating to election 

10 to expense certain refineries) is amended by adding at the 

11 end the following new paragraph: 

12 ‘‘(4) EXTENSION TO CERTAIN FACILITIES.— 

13 The term ‘qualified refinery property’ shall also 

14 mean any refinery or portion of a refinery— 

15 ‘‘(A) the original use of which commences 

16 with the taxpayer, 

17 ‘‘(B) the construction of which— 

18 ‘‘(i) except as provided in clause (ii), 

19 is subject to a binding construction con20 tract entered into after December 31, 

21 2008, and before January 1, 2015, but 

22 only if there was no written binding con23 struction contract entered into before Jan24 uary 1, 2009, or 


hsrobinson on PROD1PC76 with BILLS
64 

•HR 5437 IH

1 ‘‘(ii) in the case of self-constructed 

2 property, began after December 31, 2008, 

3 and 

4 ‘‘(C) which is placed in service by the tax5 payer after the date of the enactment of this 

6 paragraph and before January 1, 2020.’’. 

7 SEC. 162. EXTENSION OF SUSPENSION OF TAXABLE IN8 COME LIMIT ON PERCENTAGE DEPLETION 

9 FOR OIL AND NATURAL GAS PRODUCED 

10 FROM MARGINAL PROPERTIES. 

11 (a) IN GENERAL.—Subparagraph (H) of section 

12 613A(c)(6) is amended by striking ‘‘January 1, 2008’’ and 

13 inserting ‘‘January 1, 2012’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 subsection (a) shall apply to taxable years beginning after 

16 December 31, 2007. 

17 SEC. 163. INCREASE IN DEPLETION RATE FOR MARGINAL 

18 OIL OR GAS PRODUCTION. 

19 (a) BASE RATE.—Clause (i) of section 613A(c)(6)(C) 

20 of the Internal Revenue Code of 1986 is amended by strik21 ing ‘‘15 percent’’ and inserting ‘‘20 percent’’. 

22 (b) MAXIMUM RATE.—Section 613A(c)(6)(C) of such 

23 Code is amended by striking ‘‘25 percent’’ and inserting 

24 ‘‘30 percent’’. 


hsrobinson on PROD1PC76 with BILLS
65 

•HR 5437 IH

1 (c) REFERENCE PRICE.—Section 613A(c)(6)(C)(ii) 

2 of such Code is amended by striking ‘‘$20’’ and inserting 

3 ‘‘$40’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2007. 

7 SEC. 164. SUSPENSION OF TAXABLE INCOME LIMITATION 

8 ON PERCENTAGE DEPLETION. 

9 (a) IN GENERAL.—The first sentence of paragraph 

10 (1) of section 613A(d) of the Internal Revenue Code of 

11 1986 (relating to limitation based on taxable income) is 

12 amended by striking ‘‘The deduction’’ and inserting ‘‘In 

13 the case of taxable years beginning before January 1, 

14 2008, or after December 31, 2011, the deduction’’. 

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

16 subsection (a) shall apply to taxable years beginning after 

17 December 31, 2007. 

18 SEC. 165. STUDY ON FAIR AND TRANSPARENT FUEL PRIC19 ING. 

20 (a) STUDY.—The Federal Trade Commission shall 

21 conduct a study to determine— 

22 (1) the effects on competitive gasoline pricing of 

23 State guaranteed profit laws, also known as ‘‘min24 imum mark-up’’ or ‘‘below cost sales’’ statutes; and 


hsrobinson on PROD1PC76 with BILLS
66 

•HR 5437 IH

1 (2) the effect of credit card processing fees on 

2 gasoline costs to consumers. 

3 (b) REPORT.—Not later than 1 year after the date 

4 of enactment of this Act, the Federal Trade Commission 

5 shall transmit to Congress a report on the findings of the 

6 study conducted pursuant to subsection (a) and shall pub7 lish such report on the Commission’s Internet website. 

8 Subtitle H—Carbon Capture and 

9 Sequestration 

10 SEC. 171. EXPANSION AND MODIFICATION OF ADVANCED 

11 COAL PROJECT INVESTMENT CREDIT. 

12 (a) MODIFICATION OF CREDIT AMOUNT.—Section 

13 48A(a) (relating to qualifying advanced coal project cred14 it) is amended by striking ‘‘and’’ at the end of paragraph 

15 (1), by striking the period at the end of paragraph (2) 

16 and inserting ‘‘, and’’, and by adding at the end the fol17 lowing the paragraph: 

18 ‘‘(3) 30 percent of the qualified investment for 

19 such taxable year in the case of projects described 

20 in clauses (iii) or (iv) of subsection (d)(3)(B).’’. 

21 (b) EXPANSION OF AGGREGATE CREDITS.—Section 

22 48A(d)(3)(A) (relating to aggregate credits) is amended 

23 by striking ‘‘$1,300,000,000’’ and inserting 

24 ‘‘$1,500,000,000’’. 

25 (c) AUTHORIZATION OF ADDITIONAL PROJECTS.— 


hsrobinson on PROD1PC76 with BILLS
67 

•HR 5437 IH

1 (1) IN GENERAL.—Subparagraph (B) of section 

2 48A(d)(3) (relating to aggregate credits) is amended 

3 to read as follows: 

4 ‘‘(B) PARTICULAR PROJECTS.—Of the dol5 lar amount in subparagraph (A), the Secretary 

6 is authorized to certify— 

7 ‘‘(i) $500,000,000 for advanced coal 

8 electricity projects the application for 

9 which is submitted during the period de10 scribed in paragraph (2)(A)(i), 

11 ‘‘(ii) $500,000,000 for coal gasifi12 cation projects the application for which is 

13 submitted during the period described in 

14 paragraph (2)(A)(i), and 

15 ‘‘(iii) $500,000,000 for coal to liquid 

16 facilities which can demonstrate that the 

17 facility would capture and sequester at 

18 least 65 percent of the facility’s carbon di19 oxide emissions, the application for which 

20 is submitted during the period described in 

21 paragraph (2)(A)(ii).’’. 

22 (2) APPLICATION PERIOD FOR ADDITIONAL

23 PROJECTS.—Subparagraph (A) of section 48A(d)(2) 

24 (relating to certification) is amended to read as fol25 lows: 


hsrobinson on PROD1PC76 with BILLS
68 

•HR 5437 IH

1 ‘‘(A) APPLICATION PERIOD.—Each appli2 cant for certification under this paragraph shall 

3 submit an application meeting the requirements 

4 of subparagraph (B). An applicant may only 

5 submit an application— 

6 ‘‘(i) for an allocation from the dollar 

7 amount specified in clause (i) or (ii) of 

8 paragraph (3)(A) during the 3-year period 

9 beginning on the date the Secretary estab10 lishes the program under paragraph (1), 

11 and 

12 ‘‘(ii) for an allocation from the dollar 

13 amount specified in clause (iii) or (iv) of 

14 paragraph (3)(A) during the 3-year period 

15 beginning at the earlier of the termination 

16 of the period described in clause (i) or the 

17 date prescribed by the Secretary.’’. 

18 (3) CAPTURE AND SEQUESTRATION OF CARBON

19 DIOXIDE EMISSIONS REQUIREMENT.— 

20 (A) IN GENERAL.—Section 48A(e)(1) (re21 lating to requirements) is amended by striking 

22 ‘‘and’’ at the end of subparagraph (E), by 

23 striking the period at the end of subparagraph 

24 (F) and inserting ‘‘; and’’, and by adding at the 

25 end the following new subparagraph: 


hsrobinson on PROD1PC76 with BILLS
69 

•HR 5437 IH

1 ‘‘(G) in the case of any project the applica2 tion for which is submitted during the period 

3 described in subsection (d)(2)(A)(ii), the project 

4 includes equipment which separates and seques5 ters at least 65 percent (70 percent in the case 

6 of an application for reallocated credits under 

7 subsection (d)(4)) of such project’s total carbon 

8 dioxide emissions.’’. 

9 (B) HIGHEST PRIORITY FOR PROJECTS

10 WHICH SEQUESTER CARBON DIOXIDE EMIS11 SIONS.—Section 48A(e)(3) is amended by strik12 ing ‘‘and’’ at the end of subparagraph (A)(iii), 

13 by striking the period at the end of subpara14 graph (B)(3) and inserting ‘‘, and’’, and by 

15 adding at the end the following new subpara16 graph: 

17 ‘‘(C) give highest priority to projects with 

18 the greatest separation and sequestration per19 centage of total carbon dioxide emissions.’’. 

20 (C) RECAPTURE OF CREDIT FOR FAILURE

21 TO SEQUESTER.—Section 48A (relating to 

22 qualifying advanced coal project credit) is 

23 amended by adding at the end the following 

24 new subsection: 


hsrobinson on PROD1PC76 with BILLS
70 

•HR 5437 IH

1 ‘‘(h) RECAPTURE OF CREDIT FOR FAILURE TO SE2 QUESTER.—The Secretary shall provide for recapturing 

3 the benefit of any credit allowable under subsection (a) 

4 with respect to any project which fails to attain or main5 tain the separation and sequestration requirements of sub6 section (e)(1)(G).’’. 

7 (4) ADDITIONAL PRIORITY FOR RESEARCH

8 PARTNERSHIPS.—Section 48A(e)(3)(B), as amended 

9 by paragraph (3)(B), is amended— 

10 (A) by striking ‘‘and’’ at the end of clause 

11 (ii), 

12 (B) by redesignating clause (iii) as clause 

13 (iv), and 

14 (C) by inserting after clause (ii) the fol15 lowing new clause: 

16 ‘‘(iii) applicant participants who have 

17 a research partnership with an eligible edu18 cational institution (as defined in section 

19 529(e)(5)), and’’. 

20 (5) CLERICAL AMENDMENT.—Section 48A(e)(3) 

21 is amended by striking ‘‘INTEGRATED GASIFICATION

22 COMBINED CYCLE’’ in the heading and inserting 

23 ‘‘CERTAIN’’. 

24 (d) COMPETITIVE CERTIFICATION AWARDS MODI25 FICATION AUTHORITY.—Section 48A (relating to qualiVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
71 

•HR 5437 IH

1 fying advanced coal project credit), as amended by sub2 section (c)(3), is amended by adding at the end the fol3 lowing new subsection: 

4 ‘‘(i) COMPETITIVE CERTIFICATION AWARDS MODI5 FICATION AUTHORITY.—In implementing this section or 

6 section 48B, the Secretary is directed to modify the terms 

7 of any competitive certification award and any associated 

8 closing agreement where such modification— 

9 ‘‘(1) is consistent with the objectives of such 

10 section, 

11 ‘‘(2) is requested by the recipient of the com12 petitive certification award, and 

13 ‘‘(3) involves moving the project site to improve 

14 the potential to capture and sequester carbon dioxide 

15 emissions, reduce costs of transporting feedstock, 

16 and serve a broader customer base, 

17 unless the Secretary determines that the dollar amount 

18 of tax credits available to the taxpayer under such section 

19 would increase as a result of the modification or such 

20 modification would result in such project not being origi21 nally certified. In considering any such modification, the 

22 Secretary shall consult with other relevant Federal agen23 cies, including the Department of Energy.’’. 

24 (e) EFFECTIVE DATES.— 


hsrobinson on PROD1PC76 with BILLS
72 

•HR 5437 IH

1 (1) IN GENERAL.—Except as otherwise pro2 vided in this subsection, the amendments made by 

3 this section shall apply to credits the application for 

4 which is submitted during the period described in 

5 section 48A(d)(2)(A)(ii) of the Internal Revenue 

6 Code of 1986 and which are allocated or reallocated 

7 after the date of the enactment of this Act. 

8 (2) COMPETITIVE CERTIFICATION AWARDS

9 MODIFICATION AUTHORITY.—The amendment made 

10 by subsection (d) shall take effect on the date of the 

11 enactment of this Act and is applicable to all com12 petitive certification awards entered into under sec13 tion 48A or 48B of the Internal Revenue Code of 

14 1986, whether such awards were issued before, on, 

15 or after such date of enactment. 

16 (3) TECHNICAL AMENDMENT.—The amendment 

17 made by subsection (c)(5) shall take effect as if in18 cluded in the amendment made by section 1307(b) 

19 of the Energy Tax Incentives Act of 2005. 


hsrobinson on PROD1PC76 with BILLS
73 

•HR 5437 IH

1 TITLE II—AMERICAN-MADE 

2 ENERGY TRUST FUND 

3 SEC. 201. ESTABLISHMENT OF AMERICAN-MADE ENERGY 

4 TRUST FUND. 

5 (a) CREATION OF TRUST FUND.—Subchapter A of 

6 chapter 98 of the Internal Revenue Code of 1986 is 

7 amended by inserting at the end the following new section: 

8 ‘‘SEC. 9511. AMERICAN-MADE ENERGY TRUST FUND. 

9 ‘‘(a) ESTABLISHMENT OF TRUST FUND.—There is 

10 established in the Treasury of the United States a trust 

11 fund to be known as the ‘American-Made Energy Trust 

12 Fund’, consisting of such amounts as may be appropriated 

13 or credited to the American-Made Energy Trust Fund as 

14 provided in this section or section 9602(b). 

15 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here16 by appropriated to the American-Made Energy Trust 

17 Fund amounts required to be transferred under section 

18 308 of the American-Made Energy Act of 2008 and under 

19 section 8(g)(6) of the Outer Continental Shelf Lands Act 

20 (as added by section 703 of the American-Made Energy 

21 Act of 2008). 

22 ‘‘(c) EXPENDITURES FROM AMERICAN-MADE EN23 ERGY TRUST FUND.—As provided by appropriation Acts, 

24 amounts in the American-Made Energy Trust Fund shall 

25 be available in any year for transfer to the general fund 


hsrobinson on PROD1PC76 with BILLS
74 

•HR 5437 IH

1 of the Treasury to offset any reduction in revenue to the 

2 United States that the Secretary estimates results from 

3 the amendments made by the American-Made Energy Act 

4 of 2008.’’. 

5 (b) CLERICAL AMENDMENT.—The table of sections 

6 for subchapter A of chapter 98 of such Code is amended 

7 by inserting at the end the following new item: 

‘‘Sec. 9511. American-Made Energy Trust Fund.’’. 

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

9 this section shall apply after the date of the enactment 

10 of this Act. 

11 TITLE III—DEVELOPMENT OF 

12 OIL AND GAS RESOURCES OF 

13 THE COASTAL PLAIN OF 

14 ALASKA 

15 SEC. 301. DEFINITIONS. 

16 In this title: 

17 (1) COASTAL PLAIN.—The term ‘‘Coastal 

18 Plain’’ means that area described in appendix I to 

19 part 37 of title 50, Code of Federal Regulations. 

20 (2) SECRETARY.—The term ‘‘Secretary’’, except 

21 as otherwise provided, means the Secretary of the 

22 Interior or the Secretary’s designee. 


hsrobinson on PROD1PC76 with BILLS
75 

•HR 5437 IH

1 SEC. 302. LEASING PROGRAM FOR LANDS WITHIN THE 

2 COASTAL PLAIN. 

3 (a) IN GENERAL.—The Secretary shall take such ac4 tions as are necessary— 

5 (1) to establish and implement, in accordance 

6 with this title and acting through the Director of the 

7 Bureau of Land Management in consultation with 

8 the Director of the United States Fish and Wildlife 

9 Service, a competitive oil and gas leasing program 

10 that will result in an environmentally sound program 

11 for the exploration, development, and production of 

12 the oil and gas resources of the Coastal Plain; and 

13 (2) to administer the provisions of this title 

14 through regulations, lease terms, conditions, restric15 tions, prohibitions, stipulations, and other provisions 

16 that ensure the oil and gas exploration, development, 

17 and production activities on the Coastal Plain will 

18 result in no significant adverse effect on fish and 

19 wildlife, their habitat, subsistence resources, and the 

20 environment, including, in furtherance of this goal, 

21 by requiring the application of the best commercially 

22 available technology for oil and gas exploration, de23 velopment, and production to all exploration, devel24 opment, and production operations under this title 

25 in a manner that ensures the receipt of fair market 


hsrobinson on PROD1PC76 with BILLS
76 

•HR 5437 IH

1 value by the public for the mineral resources to be 

2 leased. 

3 The Secretary shall not commence leasing under the pro4 gram described in paragraph (1) unless a finding has been 

5 made that bonus bids for offered leases are estimated to 

6 be not less than $6,000,000,000. 

7 (b) REPEAL.— 

8 (1) REPEAL.—Section 1003 of the Alaska Na9 tional Interest Lands Conservation Act of 1980 (16 

10 U.S.C. 3143) is repealed. 

11 (2) CONFORMING AMENDMENT.—The table of 

12 contents in section 1 of such Act is amended by 

13 striking the item relating to section 1003. 

14 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER15 TAIN OTHER LAWS.— 

16 (1) COMPATIBILITY.—For purposes of the Na17 tional Wildlife Refuge System Administration Act of 

18 1966 (16 U.S.C. 668dd et seq.), the oil and gas 

19 leasing program and activities authorized by this 

20 section in the Coastal Plain are deemed to be com21 patible with the purposes for which the Arctic Na22 tional Wildlife Refuge was established, and no fur23 ther findings or decisions are required to implement 

24 this determination. 


hsrobinson on PROD1PC76 with BILLS
77 

•HR 5437 IH

1 (2) ADEQUACY OF THE DEPARTMENT OF THE

2 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT

3 STATEMENT.—The ‘‘Final Legislative Environ4 mental Impact Statement’’ (April 1987) on the 

5 Coastal Plain prepared pursuant to section 1002 of 

6 the Alaska National Interest Lands Conservation 

7 Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) 

8 of the National Environmental Policy Act of 1969 

9 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the re10 quirements under the National Environmental Policy 

11 Act of 1969 that apply with respect to prelease ac12 tivities, including actions authorized to be taken by 

13 the Secretary to develop and promulgate the regula14 tions for the establishment of a leasing program au15 thorized by this title before the conduct of the first 

16 lease sale. 

17 (3) COMPLIANCE WITH NEPA FOR OTHER AC18 TIONS.—Before conducting the first lease sale under 

19 this title, the Secretary shall prepare an environ20 mental impact statement under the National Envi21 ronmental Policy Act of 1969 with respect to the ac22 tions authorized by this title that are not referred to 

23 in paragraph (2). Notwithstanding any other law, 

24 the Secretary is not required to identify nonleasing 

25 alternative courses of action or to analyze the enviVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
78 

•HR 5437 IH

1 ronmental effects of such courses of action. The Sec2 retary shall only identify a preferred action for such 

3 leasing and a single leasing alternative, and analyze 

4 the environmental effects and potential mitigation 

5 measures for those two alternatives. The identifica6 tion of the preferred action and related analysis for 

7 the first lease sale under this title shall be completed 

8 within 18 months after the date of enactment of this 

9 title. The Secretary shall only consider public com10 ments that specifically address the Secretary’s pre11 ferred action and that are filed within 20 days after 

12 publication of an environmental analysis. Notwith13 standing any other law, compliance with this para14 graph is deemed to satisfy all requirements for the 

15 analysis and consideration of the environmental ef16 fects of proposed leasing under this title. 

17 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR18 ITY.—Nothing in this title shall be considered to expand 

19 or limit State and local regulatory authority. 

20 (e) SPECIAL AREAS.— 

21 (1) IN GENERAL.—The Secretary, after con22 sultation with the State of Alaska, the city of 

23 Kaktovik, and the North Slope Borough, may des24 ignate up to a total of 45,000 acres of the Coastal 

25 Plain as a Special Area if the Secretary determines 


hsrobinson on PROD1PC76 with BILLS
79 

•HR 5437 IH

1 that the Special Area is of such unique character 

2 and interest so as to require special management 

3 and regulatory protection. The Secretary shall des4 ignate as such a Special Area the Sadlerochit Spring 

5 area, comprising approximately 4,000 acres. 

6 (2) MANAGEMENT.—Each such Special Area 

7 shall be managed so as to protect and preserve the 

8 area’s unique and diverse character including its 

9 fish, wildlife, and subsistence resource values. 

10 (3) EXCLUSION FROM LEASING OR SURFACE

11 OCCUPANCY.—The Secretary may exclude any Spe12 cial Area from leasing. If the Secretary leases a Spe13 cial Area, or any part thereof, for purposes of oil 

14 and gas exploration, development, production, and 

15 related activities, there shall be no surface occu16 pancy of the lands comprising the Special Area. 

17 (4) DIRECTIONAL DRILLING.—Notwithstanding 

18 the other provisions of this subsection, the Secretary 

19 may lease all or a portion of a Special Area under 

20 terms that permit the use of horizontal drilling tech21 nology from sites on leases located outside the Spe22 cial Area. 

23 (f) LIMITATION ON CLOSED AREAS.—The Sec24 retary’s sole authority to close lands within the Coastal 


hsrobinson on PROD1PC76 with BILLS
80 

•HR 5437 IH

1 Plain to oil and gas leasing and to exploration, develop2 ment, and production is that set forth in this title. 

3 (g) REGULATIONS.— 

4 (1) IN GENERAL.—The Secretary shall pre5 scribe such regulations as may be necessary to carry 

6 out this title, including rules and regulations relating 

7 to protection of the fish and wildlife, their habitat, 

8 subsistence resources, and environment of the Coast9 al Plain, by no later than 15 months after the date 

10 of enactment of this title. 

11 (2) REVISION OF REGULATIONS.—The Sec12 retary shall periodically review and, if appropriate, 

13 revise the rules and regulations issued under sub14 section (a) to reflect any significant biological, envi15 ronmental, or engineering data that come to the Sec16 retary’s attention. 

17 SEC. 303. LEASE SALES. 

18 (a) IN GENERAL.—Lands may be leased pursuant to 

19 this title to any person qualified to obtain a lease for de20 posits of oil and gas under the Mineral Leasing Act (30 

21 U.S.C. 181 et seq.). 

22 (b) PROCEDURES.—The Secretary shall, by regula23 tion, establish procedures for— 

24 (1) receipt and consideration of sealed nomina25 tions for any area in the Coastal Plain for inclusion 


hsrobinson on PROD1PC76 with BILLS
81 

•HR 5437 IH

1 in, or exclusion (as provided in subsection (c)) from, 

2 a lease sale; 

3 (2) the holding of lease sales after such nomina4 tion process; and 

5 (3) public notice of and comment on designa6 tion of areas to be included in, or excluded from, a 

7 lease sale. 

8 (c) LEASE SALE BIDS.—Bidding for leases under 

9 this title shall be by sealed competitive cash bonus bids. 

10 (d) ACREAGE MINIMUM IN FIRST SALE.—In the first 

11 lease sale under this title, the Secretary shall offer for 

12 lease those tracts the Secretary considers to have the 

13 greatest potential for the discovery of hydrocarbons, tak14 ing into consideration nominations received pursuant to 

15 subsection (b)(1), but in no case less than 200,000 acres. 

16 (e) TIMING OF LEASE SALES.—The Secretary 

17 shall— 

18 (1) conduct the first lease sale under this title 

19 within 22 months after the date of the enactment of 

20 this title; and 

21 (2) conduct additional sales so long as sufficient 

22 interest in development exists to warrant, in the Sec23 retary’s judgment, the conduct of such sales. 


hsrobinson on PROD1PC76 with BILLS
82 

•HR 5437 IH

1 SEC. 304. GRANT OF LEASES BY THE SECRETARY. 

2 (a) IN GENERAL.—The Secretary may grant to the 

3 highest responsible qualified bidder in a lease sale con4 ducted pursuant to section 303 any lands to be leased on 

5 the Coastal Plain upon payment by the lessee of such 

6 bonus as may be accepted by the Secretary. 

7 (b) SUBSEQUENT TRANSFERS.—No lease issued 

8 under this title may be sold, exchanged, assigned, sublet, 

9 or otherwise transferred except with the approval of the 

10 Secretary. Prior to any such approval the Secretary shall 

11 consult with, and give due consideration to the views of, 

12 the Attorney General. 

13 SEC. 305. LEASE TERMS AND CONDITIONS. 

14 (a) IN GENERAL.—An oil or gas lease issued pursu15 ant to this title shall— 

16 (1) provide for the payment of a royalty of not 

less than 121 17 ⁄2 percent in amount or value of the 

18 production removed or sold from the lease, as deter19 mined by the Secretary under the regulations appli20 cable to other Federal oil and gas leases; 

21 (2) provide that the Secretary may close, on a 

22 seasonal basis, portions of the Coastal Plain to ex23 ploratory drilling activities as necessary to protect 

24 caribou calving areas and other species of fish and 

25 wildlife; 


hsrobinson on PROD1PC76 with BILLS
83 

•HR 5437 IH

1 (3) require that the lessee of lands within the 

2 Coastal Plain shall be fully responsible and liable for 

3 the reclamation of lands within the Coastal Plain 

4 and any other Federal lands that are adversely af5 fected in connection with exploration, development, 

6 production, or transportation activities conducted 

7 under the lease and within the Coastal Plain by the 

8 lessee or by any of the subcontractors or agents of 

9 the lessee; 

10 (4) provide that the lessee may not delegate or 

11 convey, by contract or otherwise, the reclamation re12 sponsibility and liability to another person without 

13 the express written approval of the Secretary; 

14 (5) provide that the standard of reclamation for 

15 lands required to be reclaimed under this title shall 

16 be, as nearly as practicable, a condition capable of 

17 supporting the uses which the lands were capable of 

18 supporting prior to any exploration, development, or 

19 production activities, or upon application by the les20 see, to a higher or better use as approved by the 

21 Secretary; 

22 (6) contain terms and conditions relating to 

23 protection of fish and wildlife, their habitat, subsist24 ence resources, and the environment as required 

25 pursuant to section 302(a)(2); 


hsrobinson on PROD1PC76 with BILLS
84 

•HR 5437 IH

1 (7) provide that the lessee, its agents, and its 

2 contractors use best efforts to provide a fair share, 

3 as determined by the level of obligation previously 

4 agreed to in the 1974 agreement implementing sec5 tion 29 of the Federal Agreement and Grant of 

6 Right of Way for the Operation of the Trans-Alaska 

7 Pipeline, of employment and contracting for Alaska 

8 Natives and Alaska Native Corporations from 

9 throughout the State; and 

10 (8) contain such other provisions as the Sec11 retary determines necessary to ensure compliance 

12 with the provisions of this title and the regulations 

13 issued under this title. 

14 (b) PROJECT LABOR AGREEMENTS.—The Secretary, 

15 as a term and condition of each lease under this title and 

16 in recognizing the Government’s proprietary interest in 

17 labor stability and in the ability of construction labor and 

18 management to meet the particular needs and conditions 

19 of projects to be developed under the leases issued pursu20 ant to this title and the special concerns of the parties 

21 to such leases, shall require that the lessee and its agents 

22 and contractors negotiate to obtain a project labor agree23 ment for the employment of laborers and mechanics on 

24 production, maintenance, and construction under the 

25 lease. 


hsrobinson on PROD1PC76 with BILLS
85 

•HR 5437 IH

1 SEC. 306. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

2 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

3 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

4 The Secretary shall, consistent with the requirements of 

5 section 302, administer the provisions of this title through 

6 regulations, lease terms, conditions, restrictions, prohibi7 tions, stipulations, and other provisions that— 

8 (1) ensure the oil and gas exploration, develop9 ment, and production activities on the Coastal Plain 

10 will result in no significant adverse effect on fish 

11 and wildlife, their habitat, and the environment; 

12 (2) require the application of the best commer13 cially available technology for oil and gas explo14 ration, development, and production on all new ex15 ploration, development, and production operations; 

16 and 

17 (3) ensure that the maximum amount of sur18 face acreage covered by production and support fa19 cilities, including airstrips and any areas covered by 

20 gravel berms or piers for support of pipelines, does 

21 not exceed 2,000 acres on the Coastal Plain. 

22 (b) SITE-SPECIFIC ASSESSMENT AND MITIGATION.— 

23 The Secretary shall also require, with respect to any pro24 posed drilling and related activities, that— 

25 (1) a site-specific analysis be made of the prob26 able effects, if any, that the drilling or related activiVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00085 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
86 

•HR 5437 IH

1 ties will have on fish and wildlife, their habitat, sub2 sistence resources, and the environment; 

3 (2) a plan be implemented to avoid, minimize, 

4 and mitigate (in that order and to the extent prac5 ticable) any significant adverse effect identified 

6 under paragraph (1); and 

7 (3) the development of the plan shall occur 

8 after consultation with the agency or agencies hav9 ing jurisdiction over matters mitigated by the plan. 

10 (c) REGULATIONS TO PROTECT COASTAL PLAIN

11 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

12 AND THE ENVIRONMENT.—Before implementing the leas13 ing program authorized by this title, the Secretary shall 

14 prepare and promulgate regulations, lease terms, condi15 tions, restrictions, prohibitions, stipulations, and other 

16 measures designed to ensure that the activities undertaken 

17 on the Coastal Plain under this title are conducted in a 

18 manner consistent with the purposes and environmental 

19 requirements of this title. 

20 (d) COMPLIANCE WITH FEDERAL AND STATE ENVI21 RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 

22 proposed regulations, lease terms, conditions, restrictions, 

23 prohibitions, and stipulations for the leasing program 

24 under this title shall require compliance with all applicable 


hsrobinson on PROD1PC76 with BILLS
87 

•HR 5437 IH

1 provisions of Federal and State environmental law, and 

2 shall also require the following: 

3 (1) Standards at least as effective as the safety 

4 and environmental mitigation measures set forth in 

5 items 1 through 29 at pages 167 through 169 of the 

6 ‘‘Final Legislative Environmental Impact State7 ment’’ (April 1987) on the Coastal Plain. 

8 (2) Seasonal limitations on exploration, develop9 ment, and related activities, where necessary, to 

10 avoid significant adverse effects during periods of 

11 concentrated fish and wildlife breeding, denning, 

12 nesting, spawning, and migration. 

13 (3) That exploration activities, except for sur14 face geological studies, be limited to the period be15 tween approximately November 1 and May 1 each 

16 year and that exploration activities shall be sup17 ported, if necessary, by ice roads, winter trails with 

18 adequate snow cover, ice pads, ice airstrips, and air 

19 transport methods, except that such exploration ac20 tivities may occur at other times if the Secretary 

21 finds that such exploration will have no significant 

22 adverse effect on the fish and wildlife, their habitat, 

23 and the environment of the Coastal Plain. 


hsrobinson on PROD1PC76 with BILLS
88 

•HR 5437 IH

1 (4) Design safety and construction standards 

2 for all pipelines and any access and service roads, 

3 that— 

4 (A) minimize, to the maximum extent pos5 sible, adverse effects upon the passage of mi6 gratory species such as caribou; and 

7 (B) minimize adverse effects upon the flow 

8 of surface water by requiring the use of cul9 verts, bridges, and other structural devices. 

10 (5) Prohibitions on general public access and 

11 use on all pipeline access and service roads. 

12 (6) Stringent reclamation and rehabilitation re13 quirements, consistent with the standards set forth 

14 in this title, requiring the removal from the Coastal 

15 Plain of all oil and gas development and production 

16 facilities, structures, and equipment upon completion 

17 of oil and gas production operations, except that the 

18 Secretary may exempt from the requirements of this 

19 paragraph those facilities, structures, or equipment 

20 that the Secretary determines would assist in the 

21 management of the Arctic National Wildlife Refuge 

22 and that are donated to the United States for that 

23 purpose. 

24 (7) Appropriate prohibitions or restrictions on 

25 access by all modes of transportation. 


hsrobinson on PROD1PC76 with BILLS
89 

•HR 5437 IH

1 (8) Appropriate prohibitions or restrictions on 

2 sand and gravel extraction. 

3 (9) Consolidation of facility siting. 

4 (10) Appropriate prohibitions or restrictions on 

5 use of explosives. 

6 (11) Avoidance, to the extent practicable, of 

7 springs, streams, and river system; the protection of 

8 natural surface drainage patterns, wetlands, and ri9 parian habitats; and the regulation of methods or 

10 techniques for developing or transporting adequate 

11 supplies of water for exploratory drilling. 

12 (12) Avoidance or minimization of air traffic-re13 lated disturbance to fish and wildlife. 

14 (13) Treatment and disposal of hazardous and 

15 toxic wastes, solid wastes, reserve pit fluids, drilling 

16 muds and cuttings, and domestic wastewater, includ17 ing an annual waste management report, a haz18 ardous materials tracking system, and a prohibition 

19 on chlorinated solvents, in accordance with applica20 ble Federal and State environmental law. 

21 (14) Fuel storage and oil spill contingency plan22 ning. 

23 (15) Research, monitoring, and reporting re24 quirements. 

25 (16) Field crew environmental briefings. 


hsrobinson on PROD1PC76 with BILLS
90 

•HR 5437 IH

1 (17) Avoidance of significant adverse effects 

2 upon subsistence hunting, fishing, and trapping by 

3 subsistence users. 

4 (18) Compliance with applicable air and water 

5 quality standards. 

6 (19) Appropriate seasonal and safety zone des7 ignations around well sites, within which subsistence 

8 hunting and trapping shall be limited. 

9 (20) Reasonable stipulations for protection of 

10 cultural and archeological resources. 

11 (21) All other protective environmental stipula12 tions, restrictions, terms, and conditions deemed 

13 necessary by the Secretary. 

14 (e) CONSIDERATIONS.—In preparing and promul15 gating regulations, lease terms, conditions, restrictions, 

16 prohibitions, and stipulations under this section, the Sec17 retary shall consider the following: 

18 (1) The stipulations and conditions that govern 

19 the National Petroleum Reserve-Alaska leasing pro20 gram, as set forth in the 1999 Northeast National 

21 Petroleum Reserve-Alaska Final Integrated Activity 

22 Plan/Environmental Impact Statement. 

23 (2) The environmental protection standards 

24 that governed the initial Coastal Plain seismic exploVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
91 

•HR 5437 IH

1 ration program under parts 37.31 to 37.33 of title 

2 50, Code of Federal Regulations. 

3 (3) The land use stipulations for exploratory 

4 drilling on the KIC–ASRC private lands that are set 

5 forth in Appendix 2 of the August 9, 1983, agree6 ment between Arctic Slope Regional Corporation and 

7 the United States. 

8 (f) FACILITY CONSOLIDATION PLANNING.— 

9 (1) IN GENERAL.—The Secretary shall, after 

10 providing for public notice and comment, prepare 

11 and update periodically a plan to govern, guide, and 

12 direct the siting and construction of facilities for the 

13 exploration, development, production, and transpor14 tation of Coastal Plain oil and gas resources. 

15 (2) OBJECTIVES.—The plan shall have the fol16 lowing objectives: 

17 (A) Avoiding unnecessary duplication of fa18 cilities and activities. 

19 (B) Encouraging consolidation of common 

20 facilities and activities. 

21 (C) Locating or confining facilities and ac22 tivities to areas that will minimize impact on 

23 fish and wildlife, their habitat, and the environ24 ment. 


hsrobinson on PROD1PC76 with BILLS
92 

•HR 5437 IH

1 (D) Utilizing existing facilities wherever 

2 practicable. 

3 (E) Enhancing compatibility between wild4 life values and development activities. 

5 (g) ACCESS TO PUBLIC LANDS.—The Secretary 

6 shall— 

7 (1) manage public lands in the Coastal Plain 

8 subject to subsections (a) and (b) of section 811 of 

9 the Alaska National Interest Lands Conservation 

10 Act (16 U.S.C. 3121); and 

11 (2) ensure that local residents shall have rea12 sonable access to public lands in the Coastal Plain 

13 for traditional uses. 

14 SEC. 307. EXPEDITED JUDICIAL REVIEW. 

15 (a) FILING OF COMPLAINT.— 

16 (1) DEADLINE.—Subject to paragraph (2), any 

17 complaint seeking judicial review of any provision of 

18 this title or any action of the Secretary under this 

19 title shall be filed— 

20 (A) except as provided in subparagraph 

21 (B), within the 90-day period beginning on the 

22 date of the action being challenged; or 

23 (B) in the case of a complaint based solely 

24 on grounds arising after such period, within 90 

25 days after the complainant knew or reasonably 


hsrobinson on PROD1PC76 with BILLS
93 

•HR 5437 IH

1 should have known of the grounds for the com2 plaint. 

3 (2) VENUE.—Any complaint seeking judicial re4 view of any provision of this title or any action of 

5 the Secretary under this title may be filed only in 

6 the United States Court of Appeals for the District 

7 of Columbia. 

8 (3) LIMITATION ON SCOPE OF CERTAIN RE9 VIEW.—Judicial review of a Secretarial decision to 

10 conduct a lease sale under this title, including the 

11 environmental analysis thereof, shall be limited to 

12 whether the Secretary has complied with the terms 

13 of this title and shall be based upon the administra14 tive record of that decision. The Secretary’s identi15 fication of a preferred course of action to enable 

16 leasing to proceed and the Secretary’s analysis of 

17 environmental effects under this title shall be pre18 sumed to be correct unless shown otherwise by clear 

19 and convincing evidence to the contrary. 

20 (b) LIMITATION ON OTHER REVIEW.—Actions of the 

21 Secretary with respect to which review could have been 

22 obtained under this section shall not be subject to judicial 

23 review in any civil or criminal proceeding for enforcement. 


hsrobinson on PROD1PC76 with BILLS
94 

•HR 5437 IH

1 SEC. 308. FEDERAL AND STATE DISTRIBUTION OF REVE2 NUES. 

3 (a) IN GENERAL.—Notwithstanding any other provi4 sion of law, of the amount of adjusted bonus, rental, and 

5 royalty revenues from Federal oil and gas leasing and op6 erations authorized under this title— 

7 (1) 50 percent shall be paid to the State of 

8 Alaska; and 

9 (2) except as provided in section 311(d), the 

10 balance shall be transferred to the American-Made 

11 Energy Trust Fund. 

12 (b) PAYMENTS TO ALASKA.—Payments to the State 

13 of Alaska under this section shall be made semiannually. 

14 SEC. 309. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 

15 (a) IN GENERAL.—The Secretary shall issue rights16 of-way and easements across the Coastal Plain for the 

17 transportation of oil and gas— 

18 (1) except as provided in paragraph (2), under 

19 section 28 of the Mineral Leasing Act (30 U.S.C. 

20 185), without regard to title XI of the Alaska Na21 tional Interest Lands Conservation Act (30 U.S.C. 

22 3161 et seq.); and 

23 (2) under title XI of the Alaska National Inter24 est Lands Conservation Act (30 U.S.C. 3161 et 

25 seq.), for access authorized by sections 1110 and 

26 1111 of that Act (16 U.S.C. 3170 and 3171). 


hsrobinson on PROD1PC76 with BILLS
95 

•HR 5437 IH

1 (b) TERMS AND CONDITIONS.—The Secretary shall 

2 include in any right-of-way or easement issued under sub3 section (a) such terms and conditions as may be necessary 

4 to ensure that transportation of oil and gas does not result 

5 in a significant adverse effect on the fish and wildlife, sub6 sistence resources, their habitat, and the environment of 

7 the Coastal Plain, including requirements that facilities be 

8 sited or designed so as to avoid unnecessary duplication 

9 of roads and pipelines. 

10 (c) REGULATIONS.—The Secretary shall include in 

11 regulations under section 302(g) provisions granting 

12 rights-of-way and easements described in subsection (a) 

13 of this section. 

14 SEC. 310. CONVEYANCE. 

15 In order to maximize Federal revenues by removing 

16 clouds on title to lands and clarifying land ownership pat17 terns within the Coastal Plain, the Secretary, notwith18 standing the provisions of section 1302(h)(2) of the Alas19 ka National Interest Lands Conservation Act (16 U.S.C. 

20 3192(h)(2)), shall convey— 

21 (1) to the Kaktovik Inupiat Corporation the 

22 surface estate of the lands described in paragraph 1 

23 of Public Land Order 6959, to the extent necessary 

24 to fulfill the Corporation’s entitlement under sec25 tions 12 and 14 of the Alaska Native Claims SettleVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
96 

•HR 5437 IH

1 ment Act (43 U.S.C. 1611 and 1613) in accordance 

2 with the terms and conditions of the Agreement be3 tween the Department of the Interior, the United 

4 States Fish and Wildlife Service, the Bureau of 

5 Land Management, and the Kaktovik Inupiat Cor6 poration effective January 22, 1993; and 

7 (2) to the Arctic Slope Regional Corporation 

8 the remaining subsurface estate to which it is enti9 tled pursuant to the August 9, 1983, agreement be10 tween the Arctic Slope Regional Corporation and the 

11 United States of America. 

12 SEC. 311. LOCAL GOVERNMENT IMPACT AID AND COMMU13 NITY SERVICE ASSISTANCE. 

14 (a) FINANCIAL ASSISTANCE AUTHORIZED.— 

15 (1) IN GENERAL.—The Secretary may use 

16 amounts available from the Coastal Plain Local Gov17 ernment Impact Aid Assistance Fund established by 

18 subsection (d) to provide timely financial assistance 

19 to entities that are eligible under paragraph (2) and 

20 that are directly impacted by the exploration for or 

21 production of oil and gas on the Coastal Plain under 

22 this title. 

23 (2) ELIGIBLE ENTITIES.—The North Slope 

24 Borough, the City of Kaktovik, and any other bor25 ough, municipal subdivision, village, or other comVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00096 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
97 

•HR 5437 IH

1 munity in the State of Alaska that is directly im2 pacted by exploration for, or the production of, oil 

3 or gas on the Coastal Plain under this title, as de4 termined by the Secretary, shall be eligible for finan5 cial assistance under this section. 

6 (b) USE OF ASSISTANCE.—Financial assistance 

7 under this section may be used only for— 

8 (1) planning for mitigation of the potential ef9 fects of oil and gas exploration and development on 

10 environmental, social, cultural, recreational, and sub11 sistence values; 

12 (2) implementing mitigation plans and main13 taining mitigation projects; 

14 (3) developing, carrying out, and maintaining 

15 projects and programs that provide new or expanded 

16 public facilities and services to address needs and 

17 problems associated with such effects, including fire18 fighting, police, water, waste treatment, medivac, 

19 and medical services; and 

20 (4) establishment of a coordination office, by 

21 the north slope borough, in the city of kaktovik, 

22 which shall— 

23 (A) coordinate with and advise developers 

24 on local conditions, impact, and history of the 

25 areas utilized for development; and 


hsrobinson on PROD1PC76 with BILLS
98 

•HR 5437 IH

1 (B) provide to the Committee on Resources 

2 of the House of Representatives and the Com3 mittee on Energy and Natural Resources of the 

4 Senate an annual report on the status of co5 ordination between developers and the commu6 nities affected by development. 

7 (c) APPLICATION.— 

8 (1) IN GENERAL.—Any community that is eligi9 ble for assistance under this section may submit an 

10 application for such assistance to the Secretary, in 

11 such form and under such procedures as the Sec12 retary may prescribe by regulation. 

13 (2) NORTH SLOPE BOROUGH COMMUNITIES.—A 

14 community located in the North Slope Borough may 

15 apply for assistance under this section either directly 

16 to the Secretary or through the North Slope Bor17 ough. 

18 (3) APPLICATION ASSISTANCE.—The Secretary 

19 shall work closely with and assist the North Slope 

20 Borough and other communities eligible for assist21 ance under this section in developing and submitting 

22 applications for assistance under this section. 

23 (d) ESTABLISHMENT OF FUND.— 


hsrobinson on PROD1PC76 with BILLS
99 

•HR 5437 IH

1 (1) IN GENERAL.—There is established in the 

2 Treasury the Coastal Plain Local Government Im3 pact Aid Assistance Fund. 

4 (2) USE.—Amounts in the fund may be used 

5 only for providing financial assistance under this 

6 section. 

7 (3) DEPOSITS.—Subject to paragraph (4), there 

8 shall be deposited into the fund amounts received by 

9 the United States as revenues derived from rents, 

10 bonuses, and royalties from Federal leases and lease 

11 sales authorized under this title. 

12 (4) LIMITATION ON DEPOSITS.—The total 

13 amount in the fund may not exceed $11,000,000. 

14 (5) INVESTMENT OF BALANCES.—The Sec15 retary of the Treasury shall invest amounts in the 

16 fund in interest bearing government securities. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—To pro18 vide financial assistance under this section there is author19 ized to be appropriated to the Secretary from the Coastal 

20 Plain Local Government Impact Aid Assistance Fund 

21 $5,000,000 for each fiscal year. 


hsrobinson on PROD1PC76 with BILLS
100 

•HR 5437 IH

1 TITLE IV—COAL-TO-LIQUID 

2 FUEL PROMOTION 

3 SEC. 401. STRATEGIC PETROLEUM RESERVE. 

4 (a) DEVELOPMENT, OPERATION, AND MAINTENANCE

5 OF RESERVE.—Section 159 of the Energy Policy and Con6 servation Act (42 U.S.C. 6239) is amended— 

7 (1) by redesignating subsections (f), (g), (j), 

8 (k), and (l) as subsections (a), (b), (e), (f), and (g), 

9 respectively; and 

10 (2) by inserting after subsection (b) (as redesig11 nated by paragraph (1)) the following: 

12 ‘‘(c) STUDY OF MAINTAINING COAL-TO-LIQUID

13 PRODUCTS IN RESERVE.—Not later than 1 year after the 

14 date of enactment of the American-Made Energy Act of 

15 2008, the Secretary and the Secretary of Defense shall— 

16 ‘‘(1) conduct a study of the feasibility and suit17 ability of maintaining coal-to-liquid products in the 

18 Reserve; and 

19 ‘‘(2) submit to the Committee on Energy and 

20 Natural Resources and the Committee on Armed 

21 Services of the Senate and the Committee on Energy 

22 and Commerce and the Committee on Armed Serv23 ices of the House of Representatives a report de24 scribing the results of the study. 


hsrobinson on PROD1PC76 with BILLS
101 

•HR 5437 IH

1 ‘‘(d) CONSTRUCTION OF STORAGE FACILITIES.—As 

2 soon as practicable after the date of enactment of the 

3 American-Made Energy Act of 2008, the Secretary may 

4 construct 1 or more storage facilities— 

5 ‘‘(1) in the vicinity of pipeline infrastructure 

6 and at least 1 military base; but 

7 ‘‘(2) outside the boundaries of any State on the 

8 coast of the Gulf of Mexico.’’. 

9 (b) PETROLEUM PRODUCTS FOR STORAGE IN RE10 SERVE.—Section 160 of the Energy Policy and Conserva11 tion Act (42 U.S.C. 6240) is amended— 

12 (1) in subsection (a)— 

13 (A) in paragraph (1), by inserting a semi14 colon at the end; 

15 (B) in paragraph (2), by striking ‘‘and’’ at 

16 the end; 

17 (C) in paragraph (3), by striking the pe18 riod at the end and inserting ‘‘; and’’; and 

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

20 ‘‘(4) coal-to-liquid fuel (as defined in section 

21 404 of the American-Made Energy Act of 2008), as 

22 the Secretary determines to be appropriate, in a 

23 quantity not to exceed 20 percent of the total quan24 tity of petroleum products in the Reserve.’’; 


hsrobinson on PROD1PC76 with BILLS
102 

•HR 5437 IH

1 (2) in subsection (b), by redesignating para2 graphs (3) through (5) as paragraphs (2) through 

3 (4), respectively; and 

4 (3) by redesignating subsections (f) and (h) as 

5 subsections (d) and (e), respectively. 

6 (c) CONFORMING AMENDMENTS.—Section 167 of the 

7 Energy Policy and Conservation Act (42 U.S.C. 6247) is 

8 amended— 

9 (1) in subsection (b)— 

10 (A) by redesignating paragraphs (2) and 

11 (3) as paragraphs (1) and (2), respectively; and 

12 (B) in paragraph (2) (as redesignated by 

13 subparagraph (A)), by striking ‘‘section 160(f)’’ 

14 and inserting ‘‘section 160(e)’’; and 

15 (2) in subsection (d), in the matter preceding 

16 paragraph (1), by striking ‘‘section 160(f)’’ and in17 serting ‘‘section 160(e)’’. 

18 SEC. 402. PROCUREMENT OF UNCONVENTIONAL FUELS BY 

19 THE DEPARTMENT OF DEFENSE. 

20 Section 2398a of title 10, United States Code, is 

21 amended— 

22 (1) in subsection (b)— 

23 (A) by striking ‘‘The Secretary’’ and in24 serting ‘‘(1) The Secretary’’; 


hsrobinson on PROD1PC76 with BILLS
103 

•HR 5437 IH

1 (B) by inserting after ‘‘covered fuel’’ the 

2 following: ‘‘, biobased fuel, or coal-to-liquid 

3 fuel’’; and 

4 (C) by adding at the end the following: 

5 ‘‘(2)(A) The Secretary of Defense may enter into con6 tracts or other agreements with private companies or other 

7 entities to develop and operate qualified coal-to-liquid fa8 cilities (as defined in section 404 of the American-Made 

9 Energy Act of 2008) on or near military installations. 

10 ‘‘(B) In entering into contracts and other agreements 

11 under subparagraph (A), the Secretary shall consider land 

12 availability, testing opportunities, and proximity to raw 

13 materials.’’; 

14 (2) in subsection (d)— 

15 (A) by inserting after ‘‘covered fuel’’ the 

16 following: ‘‘biobased fuel, or coal-to-liquid fuel’’; 

17 and 

18 (B) by striking ‘‘1 or more years’’ and in19 serting ‘‘up to 25 years’’; and 

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

21 ‘‘(f) DEFINITIONS.—In this section: 

22 ‘‘(1) The term ‘coal-to-liquid fuel’ means a fuel 

23 produced from a coal-to-liquid process or technology 

24 in a qualified coal-to-liquid facility (as defined in 

25 section 404 of American-Made Energy Act of 2008. 


hsrobinson on PROD1PC76 with BILLS
104 

•HR 5437 IH

1 ‘‘(2) The term ‘coal-to-liquid’ means a proces 

2 within the meaning of section 404 of the American3 Made Energy Act of 2008.’’. 

4 SEC. 403. GOVERNMENT AUCTION OF LONG TERM PUT OP5 TION CONTRACTS ON COAL-TO-LIQUID FUEL 

6 PRODUCED BY QUALIFIED COAL-TO-LIQUID 

7 FACILITIES. 

8 (a) IN GENERAL.—The Secretary shall, from time to 

9 time, auction to the public coal-to-liquid fuel put option 

10 contracts having expiration dates of 5 years, 10 years, 15 

11 years, or 20 years. 

12 (b) CONSULTATION WITH SECRETARY OF EN13 ERGY.—The Secretary shall consult with the Secretary of 

14 Energy regarding— 

15 (1) the frequency of the auctions; 

16 (2) the strike prices specified in the contracts; 

17 (3) the number of contracts to be auctioned 

18 with a given strike price and expiration date; and 

19 (4) the capacity of existing or planned facilities 

20 to produce coal-to-liquid fuel. 

21 (c) DEFINITIONS.—In this section: 

22 (1) COAL-TO-LIQUID PUT OPTION CONTRACT.— 

23 The term ‘‘coal-to-liquid put option contract’’ means 

24 a contract, written by the Secretary, which— 


hsrobinson on PROD1PC76 with BILLS
105 

•HR 5437 IH

1 (A) gives the holder the right (but not the 

2 obligation) to sell to the Government of the 

3 United States a certain quantity of a specific 

4 type of coal-to-liquid fuel produced by a quali5 fied coal-to-liquid facility specified in the con6 tract, at a strike price specified in the contract, 

7 on or before an expiration date specified in the 

8 contract; and 

9 (B) is transferable by the holder to any 

10 other entity. 

11 (2) SECRETARY.—The term ‘‘Secretary’’ means 

12 the Secretary of the Treasury. 

13 (3) STRIKE PRICE.—The term ‘‘strike price’’ 

14 means, with respect to a put option contract, the 

15 price at which the holder of the contract has the 

16 right to sell the fuel which is the subject of the con17 tract. 

18 (d) REGULATIONS.—The Secretary shall prescribe 

19 such regulations as may be necessary to carry out this 

20 section. 

21 (e) EFFECTIVE DATE.—This section shall take effect 

22 1 year after the date of the enactment of this Act. 

23 SEC. 404. DEFINITIONS. 

24 For purposes of this title (except as otherwise pro25 vided)— 


hsrobinson on PROD1PC76 with BILLS
106 

•HR 5437 IH

1 (1) COAL-TO-LIQUID FUEL.—The term ‘‘coal-to2 liquid fuel’’ means any transportation-grade liquid 

3 fuel derived primarily from coal (including peat) and 

4 produced at a qualified coal-to-liquid facility. 

5 (2) QUALIFIED COAL-TO-LIQUID FACILITY.— 

6 The term ‘‘qualified coal-to-liquid facility’’ means a 

7 manufacturing facility that has the capacity to 

8 produce at least 10,000 barrels per day of transpor9 tation grade liquid fuels from a feedstock that is pri10 marily domestic coal (including peat and any prop11 erty which allows for the capture, transportation, or 

12 sequestration of by-products resulting from such 

13 process, including carbon emissions). 

14 (3) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Energy. 

16 TITLE V—BIOFUEL PROGRAM 

17 SEC. 501. GRANTS FOR CELLULOSIC ETHANOL PRODUC18 TION. 

19 Subsection (s) of section 211 of the Clean Air Act 

20 (as added by section 1512 of the Energy Policy Act of 

21 2005) (and as redesignated by section 9307 of this Act), 

22 relating to conversion assistance for cellulosic biomass, 

23 waste-derived ethanol, and approved renewable fuels, is 

24 amended as follows: 


hsrobinson on PROD1PC76 with BILLS
107 

•HR 5437 IH

1 (1) By adding the following new subparagraphs 

2 at the end of paragraph (3): 

3 ‘‘(D) $500,000,000 for fiscal year 2009. 

4 ‘‘(E) $500,000,000 for fiscal year 2010.’’. 

5 (2) By adding the following new paragraph at 

6 the end thereof: 

7 ‘‘(5) CRITERIA.—In awarding grants under this 

8 section, the Secretary shall give priority to applica9 tions that promote feedstock diversity and the geo10 graphic dispersion of production facilities.’’. 

11 SEC. 502. LOAN GUARANTEES FOR BIOREFINERIES AND 

12 BIOFUEL PRODUCTION PLANTS. 

13 Section 9003 of the Farm Security and Rural Invest14 ment Act of 2002 (7 U.S.C. 8103) is amended— 

15 (1) in the section heading, by inserting ‘‘; 

16 LOAN GUARANTEES FOR BIOREFINERIES AND

17 BIOFUEL PRODUCTION PLANTS’’ after 

18 ‘‘GRANTS’’; 

19 (2) in subsection (b)(2)(A), by striking ‘‘and’’ 

20 the 1st place it appears and inserting ‘‘or’’; 

21 (3) in subsection (c), by redesignating sub22 section (h ) as subsection (i) and subsections (d) 

23 through (g) as subsections (e) through (h ), respec24 tively, and inserting after subsection (c) the fol25 lowing: 


hsrobinson on PROD1PC76 with BILLS
108 

•HR 5437 IH

1 ‘‘(d) LOAN GUARANTEES.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall make 

3 loan guarantees to eligible entities to assist in pay4 ing the cost of development and construction of bio5 refineries and biofuel production plants (including 

6 retrofitting) to carry out projects to demonstrate the 

7 commercial viability of 1 or more processes for con8 verting biomass to fuels or chemicals. 

9 ‘‘(2) LIMITATIONS.— 

10 ‘‘(A) MAXIMUM PERCENTAGE OF LOAN

11 GUARANTEED.—A loan guarantee under para12 graph (1) shall be for not more than 90 percent 

13 of the principal and interest due on the loan. 

14 ‘‘(B) TOTAL AMOUNTS GUARANTEED.— 

15 The total amount of principal and interest 

16 guaranteed under paragraph (1) shall not ex17 ceed— 

18 ‘‘(i) $600,000,000, in the case of 

19 loans valued at not more than 

20 $100,000,000; or 

21 ‘‘(ii) $1,000,000,000, in the case of 

22 loans valued at more than $100,000,000 

23 but not more than $250,000,000. 

24 ‘‘(C) MAXIMUM TERM OF LOAN GUARAN25 TEED.—The Secretary shall determine the maxVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
109 

•HR 5437 IH

1 imum term of a loan guarantee provided under 

2 paragraph (1).’’; 

3 (4) in subsection (f) (as so redesignated)— 

4 (A) in paragraph (1), by inserting ‘‘and 

5 loan guarantees under subsection (d)’’ after 

6 ‘‘(c)’’; 

7 (B) in paragraph (2)(A), by inserting ‘‘or 

8 loan guarantees under subsection (d)’’ after 

9 ‘‘(c)’’; 

10 (C) in paragraph (2)(B)— 

11 (i) by striking ‘‘and’’ at the end of 

12 clause (viii); 

13 (ii) by striking the period at the end 

14 of clause (ix) and inserting ‘‘; and’’; and 

15 (iii) by adding at the end the fol16 lowing: 

17 ‘‘(x) The level of local ownership.’’; and 

18 (D) by adding at the end the following: 

19 ‘‘(3) PRIORITY IN AWARDING LOAN GUARAN20 TEES.—In selecting projects to receive loan guaran21 tees under subsection (d), the Secretary shall give 

22 priority to projects based on the criteria set forth in 

23 paragraph (2)(B) of this subsection.’’; 

24 (5) in subsection (i), by striking ‘‘2007’’ and in25 serting ‘‘2012’’; and 


hsrobinson on PROD1PC76 with BILLS
110 

•HR 5437 IH

1 (6) by adding at the end the following new sub2 sections: 

3 ‘‘(j) ADDITIONAL FUNDING FOR LOAN GUARAN4 TEES.—Of the funds of the Commodity Credit Corpora5 tion, the Secretary shall use to carry out this section— 

6 ‘‘(1) $50,000,000 for fiscal year 2008; 

7 ‘‘(2) $65,000,000 for fiscal year 2009; 

8 ‘‘(3) $75,000,000 for fiscal year 2010; 

9 ‘‘(4) $150,000,000 for fiscal year 2011; and 

10 ‘‘(5) $250,000,000 for fiscal year 2012. 

11 ‘‘(k) CONTINUATION OF OPERATIONS.— 

12 ‘‘(1) FUNDING.—The Secretary shall continue 

13 to carry out this section at the rate of operation in 

14 effect on September 30, 2012, from sums in the 

15 Treasury not otherwise appropriated, through Sep16 tember 30, 2017. 

17 ‘‘(2) AUTHORITY.—The program and authori18 ties provided under this section shall continue in 

19 force and effect through September 30, 2017.’’. 

20 SEC. 503. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 

21 2000. 

22 (a) RESTATEMENT, EXTENSION, AND INCREASED

23 FUNDING OF ACT.—Section 9008 of the Farm Security 

24 and Rural Investment Act of 2002 (Public Law 107–171; 

25 116 Stat. 486) is amended to read as follows: 


hsrobinson on PROD1PC76 with BILLS
111 

•HR 5437 IH

1 ‘‘SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT 

2 OF 2000. 

3 ‘‘(a) SHORT TITLE.—This section may be cited as the 

4 ‘Biomass Research and Development Act of 2000’. 

5 ‘‘(b) FINDINGS.—Congress finds that— 

6 ‘‘(1) conversion of biomass into biobased indus7 trial products offers outstanding potential for benefit 

8 to the national interest through— 

9 ‘‘(A) improved strategic security and bal10 ance of payments; 

11 ‘‘(B) healthier rural economies; 

12 ‘‘(C) improved environmental quality; 

13 ‘‘(D) near-zero net greenhouse gas emis14 sions; 

15 ‘‘(E) technology export; and 

16 ‘‘(F) sustainable resource supply; 

17 ‘‘(2) the key technical challenges to be overcome 

18 in order for biobased industrial products to be cost19 competitive are finding new technology and reducing 

20 the cost of technology for converting biomass into 

21 desired biobased industrial products; 

22 ‘‘(3) biobased fuels have the clear potential to 

23 be sustainable, low cost, and high performance fuels 

24 that are compatible with both current and future 

25 transportation systems and provide near-zero net 

26 greenhouse gas emissions; 


hsrobinson on PROD1PC76 with BILLS
112 

•HR 5437 IH

1 ‘‘(4) biobased chemicals have the clear potential 

2 for environmentally benign product life cycles; 

3 ‘‘(5) biobased power can— 

4 ‘‘(A) provide environmental benefits; 

5 ‘‘(B) promote rural economic development; 

6 and 

7 ‘‘(C) diversify energy resource options; 

8 ‘‘(6) many biomass feedstocks suitable for in9 dustrial processing show the clear potential for sus10 tainable production, in some cases resulting in im11 proved soil fertility and carbon sequestration; 

12 ‘‘(7)(A) grain processing mills are biorefineries 

13 that produce a diversity of useful food, chemical, 

14 feed, and fuel products; and 

15 ‘‘(B) technologies that result in further diver16 sification of the range of value-added biobased in17 dustrial products can meet a key need for the grain 

18 processing industry; 

19 ‘‘(8)(A) cellulosic feedstocks are attractive be20 cause of their low cost and widespread availability; 

21 and 

22 ‘‘(B) research resulting in cost-effective tech23 nology to overcome the recalcitrance of cellulosic bio24 mass would allow biorefineries to produce fuels and 

25 bulk chemicals on a very large scale, with a commenVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00112 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
113 

•HR 5437 IH

1 surately large realization of the benefit described in 

2 paragraph (1); 

3 ‘‘(9) research into the fundamentals to under4 stand important mechanisms of biomass conversion 

5 can be expected to accelerate the application and ad6 vancement of biomass processing technology by— 

7 ‘‘(A) increasing the confidence and speed 

8 with which new technologies can be scaled up; 

9 and 

10 ‘‘(B) giving rise to processing innovations 

11 based on new knowledge; 

12 ‘‘(10) the added utility of biobased industrial 

13 products developed through improvements in proc14 essing technology would encourage the design of 

15 feedstocks that would meet future needs more effec16 tively; 

17 ‘‘(11) the creation of value-added biobased in18 dustrial products would create new jobs in construc19 tion, manufacturing, and distribution, as well as new 

20 higher-valued exports of products and technology; 

21 ‘‘(12)(A) because of the relatively short-term 

22 time horizon characteristic of private sector invest23 ments, and because many benefits of biomass proc24 essing are in the national interest, it is appropriate 

25 for the Federal Government to provide 


hsrobinson on PROD1PC76 with BILLS
114 

•HR 5437 IH

1 precommercial investment in fundamental research 

2 and research-driven innovation in the biomass proc3 essing area; and 

4 ‘‘(B) such an investment would provide a valu5 able complement to ongoing and past governmental 

6 support in the biomass processing area; and 

7 ‘‘(13) several prominent studies, including stud8 ies by the President’s Committee of Advisors on 

9 Science and Technology and the National Research 

10 Council— 

11 ‘‘(A) support the potential for large re12 search-driven advances in technologies for pro13 duction of biobased industrial products as well 

14 as associated benefits; and 

15 ‘‘(B) document the need for a focused, in16 tegrated, and innovation-driven research effort 

17 to provide the appropriate progress in a timely 

18 manner. 

19 ‘‘(c) DEFINITIONS.—In this section: 

20 ‘‘(1) ADVISORY COMMITTEE.—The term ‘Advi21 sory Committee’ means the Biomass Research and 

22 Development Technical Advisory Committee estab23 lished by this section. 


hsrobinson on PROD1PC76 with BILLS
115 

•HR 5437 IH

1 ‘‘(2) BIOBASED FUEL.—The term ‘biobased 

2 fuel’ means any transportation or heating fuel pro3 duced from biomass. 

4 ‘‘(3) BIOBASED PRODUCT.—The term ‘biobased 

5 product’ means an industrial product (including 

6 chemicals, materials, and polymers) produced from 

7 biomass, or a commercial or industrial product (in8 cluding animal feed and electric power) derived in 

9 connection with the conversion of biomass to fuel. 

10 ‘‘(4) BIOMASS.—The term ‘biomass’ means any 

11 organic matter that is available on a renewable or 

12 recurring basis, including agricultural crops and 

13 trees, wood and wood wastes and residues, plants 

14 (including aquatic plants), grasses, residues, fibers, 

15 and animal wastes, municipal wastes, and other 

16 waste materials. 

17 ‘‘(5) BOARD.—The term ‘Board’ means the 

18 Biomass Research and Development Board estab19 lished by this section. 

20 ‘‘(6) DEMONSTRATION.—The term ‘demonstra21 tion’ means demonstration of technology in a pilot 

22 plant or semi-works scale facility. 

23 ‘‘(7) INITIATIVE.—The term ‘Initiative’ means 

24 the Biomass Research and Development Initiative 

25 established under this section. 


hsrobinson on PROD1PC76 with BILLS
116 

•HR 5437 IH

1 ‘‘(8) INSTITUTION OF HIGHER EDUCATION.— 

2 The term ‘institution of higher education’ has the 

3 meaning given the term in section 102(a) of the 

4 Higher Education Act of 1965 (20 U.S.C. 1002(a)). 

5 ‘‘(9) NATIONAL LABORATORY.—The term ‘Na6 tional Laboratory’ has the meaning given that term 

7 in section 2 of the Energy Policy Act of 2005. 

8 ‘‘(10) POINT OF CONTACT.—The term ‘point of 

9 contact’ means a point of contact designated under 

10 this section. 

11 ‘‘(d) COOPERATION AND COORDINATION IN BIOMASS

12 RESEARCH AND DEVELOPMENT.— 

13 ‘‘(1) IN GENERAL.—The Secretary of Agri14 culture and the Secretary of Energy shall cooperate 

15 with respect to, and coordinate, policies and proce16 dures that promote research and development lead17 ing to the production of biobased fuels and biobased 

18 products. 

19 ‘‘(2) POINTS OF CONTACT.— 

20 ‘‘(A) IN GENERAL.—To coordinate re21 search and development programs and activities 

22 relating to biobased fuels and biobased products 

23 that are carried out by their respective Depart24 ments— 


hsrobinson on PROD1PC76 with BILLS
117 

•HR 5437 IH

1 ‘‘(i) the Secretary of Agriculture shall 

2 designate, as the point of contact for the 

3 Department of Agriculture, an officer of 

4 the Department of Agriculture appointed 

5 by the President to a position in the De6 partment before the date of the designa7 tion, by and with the advice and consent of 

8 the Senate; and 

9 ‘‘(ii) the Secretary of Energy shall 

10 designate, as the point of contact for the 

11 Department of Energy, an officer of the 

12 Department of Energy appointed by the 

13 President to a position in the Department 

14 before the date of the designation, by and 

15 with the advice and consent of the Senate. 

16 ‘‘(B) DUTIES.—The points of contact shall 

17 jointly— 

18 ‘‘(i) assist in arranging interlabora19 tory and site-specific supplemental agree20 ments for research and development 

21 projects relating to biobased fuels and 

22 biobased products; 

23 ‘‘(ii) serve as cochairpersons of the 

24 Board; 

25 ‘‘(iii) administer the Initiative; and 


hsrobinson on PROD1PC76 with BILLS
118 

•HR 5437 IH

1 ‘‘(iv) respond in writing to each rec2 ommendation of the Advisory Committee 

3 made under subsection (f). 

4 ‘‘(e) BIOMASS RESEARCH AND DEVELOPMENT

5 BOARD.— 

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

7 the Biomass Research and Development Board, 

8 which shall supersede the Interagency Council on 

9 Biobased Products and Bioenergy established by Ex10 ecutive Order No. 13134, to coordinate programs 

11 within and among departments and agencies of the 

12 Federal Government for the purpose of promoting 

13 the use of biobased fuels and biobased products by— 

14 ‘‘(A) maximizing the benefits deriving from 

15 Federal grants and assistance; and 

16 ‘‘(B) bringing coherence to Federal stra17 tegic planning. 

18 ‘‘(2) MEMBERSHIP.—The Board shall consist 

19 of— 

20 ‘‘(A) the point of contact of the Depart21 ment of Energy designated under subsection 

22 (d), who shall serve as cochairperson of the 

23 Board; 

24 ‘‘(B) the point of contact of the Depart25 ment of Agriculture designated under subVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
119 

•HR 5437 IH

1 section (d), who shall serve as cochairperson of 

2 the Board; 

3 ‘‘(C) a senior officer of each of the Depart4 ment of the Interior, the Environmental Protec5 tion Agency, the National Science Foundation, 

6 and the Office of Science and Technology Pol7 icy, each of whom shall— 

8 ‘‘(i) be appointed by the head of the 

9 respective agency; and 

10 ‘‘(ii) have a rank that is equivalent to 

11 the rank of the points of contact; and 

12 ‘‘(D) at the option of the Secretary of Ag13 riculture and the Secretary of Energy, other 

14 members appointed by the Secretaries (after 

15 consultation with the members described in sub16 paragraphs (A) through (C)). 

17 ‘‘(3) DUTIES.—The Board shall— 

18 ‘‘(A) coordinate research and development 

19 activities relating to biobased fuels and biobased 

20 products— 

21 ‘‘(i) between the Department of Agri22 culture and the Department of Energy; 

23 and 

24 ‘‘(ii) with other departments and 

25 agencies of the Federal Government; 


hsrobinson on PROD1PC76 with BILLS
120 

•HR 5437 IH

1 ‘‘(B) provide recommendations to the 

2 points of contact concerning administration of 

3 this title; 

4 ‘‘(C) ensure that— 

5 ‘‘(i) solicitations are open and com6 petitive with awards made annually; and 

7 ‘‘(ii) objectives and evaluation criteria 

8 of the solicitations are clearly stated and 

9 minimally prescriptive, with no areas of 

10 special interest; and 

11 ‘‘(D) ensure that the panel of scientific 

12 and technical peers assembled under subsection 

13 (g) to review proposals is composed predomi14 nantly of independent experts selected from out15 side the Departments of Agriculture and En16 ergy. 

17 ‘‘(4) FUNDING.—Each agency represented on 

18 the Board is encouraged to provide funds for any 

19 purpose under this section. 

20 ‘‘(5) MEETINGS.—The Board shall meet at 

21 least quarterly to enable the Board to carry out the 

22 duties of the Board under paragraph (3). 

23 ‘‘(f) BIOMASS RESEARCH AND DEVELOPMENT TECH24 NICAL ADVISORY COMMITTEE.— 


hsrobinson on PROD1PC76 with BILLS
121 

•HR 5437 IH

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

2 the Biomass Research and Development Technical 

3 Advisory Committee, which shall supersede the Advi4 sory Committee on Biobased Products and Bio5 energy established by Executive Order No. 13134— 

6 ‘‘(A) to advise the Secretary of Energy, the 

7 Secretary of Agriculture, and the points of con8 tact concerning— 

9 ‘‘(i) the technical focus and direction 

10 of requests for proposals issued under the 

11 Initiative; and 

12 ‘‘(ii) procedures for reviewing and 

13 evaluating the proposals; 

14 ‘‘(B) to facilitate consultations and part15 nerships among Federal and State agencies, ag16 ricultural producers, industry, consumers, the 

17 research community, and other interested 

18 groups to carry out program activities relating 

19 to the Initiative; and 

20 ‘‘(C) to evaluate and perform strategic 

21 planning on program activities relating to the 

22 Initiative. 

23 ‘‘(2) MEMBERSHIP.— 

24 ‘‘(A) IN GENERAL.—The Advisory Com25 mittee shall consist of— 


hsrobinson on PROD1PC76 with BILLS
122 

•HR 5437 IH

1 ‘‘(i) an individual affiliated with the 

2 biofuels industry; 

3 ‘‘(ii) an individual affiliated with the 

4 biobased industrial and commercial prod5 ucts industry; 

6 ‘‘(iii) an individual affiliated with an 

7 institution of higher education who has ex8 pertise in biobased fuels and biobased 

9 products; 

10 ‘‘(iv) two prominent engineers or sci11 entists from government or academia who 

12 have expertise in biobased fuels and 

13 biobased products; 

14 ‘‘(v) an individual affiliated with a 

15 commodity trade association; 

16 ‘‘(vi) 2 individuals affiliated with an 

17 environmental or conservation organiza18 tion; 

19 ‘‘(vii) an individual associated with 

20 State government who has expertise in 

21 biobased fuels and biobased products; 

22 ‘‘(viii) an individual with expertise in 

23 energy and environmental analysis; 


hsrobinson on PROD1PC76 with BILLS
123 

•HR 5437 IH

1 ‘‘(ix) an individual with expertise in 

2 the economics of biobased fuels and 

3 biobased products; 

4 ‘‘(x) an individual with expertise in 

5 agricultural economics; 

6 ‘‘(xi) an individual with expertise in 

7 agronomy, crop science, or soil science; and 

8 ‘‘(xii) at the option of the points of 

9 contact, other members. 

10 ‘‘(B) APPOINTMENT.—The members of the 

11 Advisory Committee shall be appointed by the 

12 points of contact. 

13 ‘‘(3) DUTIES.—The Advisory Committee 

14 shall— 

15 ‘‘(A) advise the points of contact with re16 spect to the Initiative; and 

17 ‘‘(B) evaluate whether, and make rec18 ommendations in writing to the Board to en19 sure that— 

20 ‘‘(i) funds authorized for the Initiative 

21 are distributed and used in a manner that 

22 is consistent with the objectives, purposes, 

23 and considerations of the Initiative; 

24 ‘‘(ii) solicitations are open and com25 petitive with awards made annually and 


hsrobinson on PROD1PC76 with BILLS
124 

•HR 5437 IH

1 that objectives and evaluation criteria of 

2 the solicitations are clearly stated and 

3 minimally prescriptive, with no areas of 

4 special interest; 

5 ‘‘(iii) the points of contact are funding 

6 proposals under this title that are selected 

7 on the basis of merit, as determined by an 

8 independent panel of scientific and tech9 nical peers predominantly from outside the 

10 Departments of Agriculture and Energy; 

11 and 

12 ‘‘(iv) activities under this section are 

13 carried out in accordance with this section. 

14 ‘‘(4) COORDINATION.—To avoid duplication of 

15 effort, the Advisory Committee shall coordinate its 

16 activities with those of other Federal advisory com17 mittees working in related areas. 

18 ‘‘(5) MEETINGS.—The Advisory Committee 

19 shall meet at least quarterly to enable the Advisory 

20 Committee to carry out the duties of the Advisory 

21 Committee. 

22 ‘‘(6) TERMS.—Members of the Advisory Com23 mittee shall be appointed for a term of 3 years, ex24 cept that— 


hsrobinson on PROD1PC76 with BILLS
125 

•HR 5437 IH

1 ‘‘(A) one-third of the members initially ap2 pointed shall be appointed for a term of 1 year; 

3 and 

4 ‘‘(B) one-third of the members initially ap5 pointed shall be appointed for a term of 2 

6 years. 

7 ‘‘(g) BIOMASS RESEARCH AND DEVELOPMENT INI8 TIATIVE.— 

9 ‘‘(1) IN GENERAL.—The Secretary of Agri10 culture and the Secretary of Energy, acting through 

11 their respective points of contact and in consultation 

12 with the Board, shall establish and carry out a Bio13 mass Research and Development Initiative under 

14 which competitively awarded grants, contracts, and 

15 financial assistance are provided to, or entered into 

16 with, eligible entities to carry out research on, and 

17 development and demonstration of, biobased fuels 

18 and biobased products, and the methods, practices 

19 and technologies, for their production. 

20 ‘‘(2) OBJECTIVES.—The objectives of the Initia21 tive are to develop— 

22 ‘‘(A) technologies and processes necessary 

23 for abundant commercial production of biobased 

24 fuels at prices competitive with fossil fuels; 

25 ‘‘(B) high-value biobased products— 


hsrobinson on PROD1PC76 with BILLS
126 

•HR 5437 IH

1 ‘‘(i) to enhance the economic viability 

2 of biobased fuels and power; 

3 ‘‘(ii) as substitutes for petroleum4 based feedstocks and products; and 

5 ‘‘(iii) to enhance the value of coprod6 ucts arise from such technologies and proc7 esses; and 

8 ‘‘(C) a diversity of sustainable domestic 

9 sources of biomass for conversion to biobased 

10 fuels and biobased products. 

11 ‘‘(3) PURPOSES.—The purposes of the Initiative 

12 are— 

13 ‘‘(A) to increase the energy security of the 

14 United States; 

15 ‘‘(B) to create jobs and enhance the eco16 nomic development of the rural economy; 

17 ‘‘(C) to enhance the environment and pub18 lic health; and 

19 ‘‘(D) to diversify markets for raw agricul20 tural and forestry products. 

21 ‘‘(4) TECHNICAL AREAS.—To advance the ob22 jectives and purposes of the Initiative, the Secretary 

23 of Agriculture and the Secretary of Energy, in con24 sultation with the Administrator of the Environ25 mental Protection Agency and heads of other approVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00126 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
127 

•HR 5437 IH

1 priate departments and agencies (referred to in this 

2 subsection as the ‘Secretaries’), shall direct research, 

3 development, and commercial applications toward— 

4 ‘‘(A) feedstocks and feedstock systems rel5 evant to production of raw materials for conver6 sion to biobased fuels and biobased products, 

7 including— 

8 ‘‘(i) development of advanced and 

9 dedicated crops and other biomass sources 

10 with desired features, including enhanced 

11 productivity, broader site range, low re12 quirements for chemical inputs, and en13 hanced processing; 

14 ‘‘(ii) advanced crop production meth15 ods to achieve the features described in 

16 clause (i); 

17 ‘‘(iii) feedstock harvest, handling, 

18 transport, and storage; 

19 ‘‘(iv) strategies for integrating feed20 stock production into existing managed 

21 land; and 

22 ‘‘(v) improving the value and quality 

23 of coproducts, including materials used for 

24 animal feeding; 


hsrobinson on PROD1PC76 with BILLS
128 

•HR 5437 IH

1 ‘‘(B) overcoming recalcitrance of cellulosic 

2 biomass through developing technologies for 

3 converting cellulosic biomass into intermediates 

4 that can subsequently be converted into 

5 biobased fuels and biobased products, includ6 ing— 

7 ‘‘(i) pretreatment in combination with 

8 enzymatic or microbial hydrolysis; 

9 ‘‘(ii) thermochemical approaches, in10 cluding gasification and pyrolysis; and 

11 ‘‘(iii) self-processing crops that ex12 press enzymes capable of degrading cel13 lulosic biomass; 

14 ‘‘(C) product diversification through tech15 nologies relevant to production of a range of 

16 biobased products (including chemicals, animal 

17 feeds, and cogenerated power) that eventually 

18 can increase the feasibility of fuel production in 

19 a biorefinery, including— 

20 ‘‘(i) catalytic processing, including 

21 thermochemical fuel production; 

22 ‘‘(ii) metabolic engineering, enzyme 

23 engineering, and fermentation systems for 

24 biological production of desired products, 

25 coproducts, or cogeneration of power; 


hsrobinson on PROD1PC76 with BILLS
129 

•HR 5437 IH

1 ‘‘(iii) product recovery; 

2 ‘‘(iv) power production technologies; 

3 ‘‘(v) integration into existing biomass 

4 processing facilities, including starch eth5 anol plants, sugar processing or refining 

6 plants, paper mills, and power plants; and 

7 ‘‘(vi) enhancement of products and co8 products, including dried distillers grains 

9 (including substantially elevated starch 

10 content, increased oil content, improved 

11 fatty acid profiles, and improved resistance 

12 to mold and mycotoxins; 

13 ‘‘(D) analysis that provides strategic guid14 ance for the application of biomass technologies 

15 in accordance with realization of improved sus16 tainability and environmental quality, cost ef17 fectiveness, security, and rural economic devel18 opment, usually featuring system-wide ap19 proaches; 

20 ‘‘(E) the improvement and development of 

21 analytical tools to facilitate the analysis of life22 cycle energy and greenhouse gas emissions, in23 cluding emissions related to direct and indirect 

24 land use changes, attributable to all potential 


hsrobinson on PROD1PC76 with BILLS
130 

•HR 5437 IH

1 biofuel feedstocks and production processes; 

2 and 

3 ‘‘(F) the systematic evaluation of the im4 pact of expanded biofuel production on the envi5 ronment, including forest lands, and on the 

6 food supply for humans and animals. 

7 ‘‘(5) ADDITIONAL CONSIDERATIONS.—Within 

8 the technical areas described in paragraph (4), and 

9 in addition to advancing the purposes described in 

10 paragraph (3) and the objectives described in para11 graph (2), the Secretaries shall support research and 

12 development— 

13 ‘‘(A) to create continuously expanding op14 portunities for participants in existing biofuels 

15 production by seeking synergies and continuity 

16 with current technologies and practices, such as 

17 improvements in dried distillers grains as a 

18 bridge feedstock; 

19 ‘‘(B) to maximize the environmental, eco20 nomic, and social benefits of production of 

21 biobased fuels and biobased products on a large 

22 scale through life-cycle economic and environ23 mental analysis and other means; 

24 ‘‘(C) to assess the potential of Federal 

25 land and land management programs as feedVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00130 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
131 

•HR 5437 IH

1 stock resources for biobased fuels and biobased 

2 products, consistent with the integrity of soil 

3 and water resources and with other environ4 mental considerations; and 

5 ‘‘(D) to facilitate small-scale production, 

6 local, and on-farm use of biofuels, including the 

7 development of small-scale gasification tech8 nologies for production of biofuel from cellulosic 

9 feedstocks. 

10 ‘‘(6) ELIGIBLE ENTITIES.—To be eligible for a 

11 grant, contract, or assistance under this subsection, 

12 an applicant shall be— 

13 ‘‘(A) an institution of higher education; 

14 ‘‘(B) a National Laboratory; 

15 ‘‘(C) a Federal research agency; 

16 ‘‘(D) a State research agency; 

17 ‘‘(E) a private sector entity; 

18 ‘‘(F) a nonprofit organization; or 

19 ‘‘(G) a consortium of two or more entities 

20 described in subparagraphs (A) through (F). 

21 ‘‘(7) ADMINISTRATION.— 

22 ‘‘(A) IN GENERAL.—After consultation 

23 with the Board, the points of contact shall— 

24 ‘‘(i) publish annually one or more 

25 joint requests for proposals for grants, 


hsrobinson on PROD1PC76 with BILLS
132 

•HR 5437 IH

1 contracts, and assistance under this sub2 section; 

3 ‘‘(ii) require that grants, contracts, 

4 and assistance under this section be 

5 awarded competitively, on the basis of 

6 merit, after the establishment of proce7 dures that provide for scientific peer review 

8 by an independent panel of scientific and 

9 technical peers; and 

10 ‘‘(iii) give some preference to applica11 tions that— 

12 ‘‘(I) involve a consortia of experts 

13 from multiple institutions; 

14 ‘‘(II) encourage the integration 

15 of disciplines and application of the 

16 best technical resources; and 

17 ‘‘(III) increase the geographic di18 versity of demonstration projects. 

19 ‘‘(B) DISTRIBUTION OF FUNDING BY

20 TECHNICAL AREA.—Of the funds authorized to 

21 be appropriated for activities described in this 

22 subsection, funds shall be distributed for each 

23 of fiscal years 2007 through 2012 so as to 

24 achieve an approximate distribution of— 


hsrobinson on PROD1PC76 with BILLS
133 

•HR 5437 IH

1 ‘‘(i) 20 percent of the funds to carry 

2 out activities for feedstock production 

3 under paragraph (4)(A); 

4 ‘‘(ii) 45 percent of the funds to carry 

5 out activities for overcoming recalcitrance 

6 of cellulosic biomass under paragraph 

7 (4)(B), of which not less than 10 percent 

8 shall be used for activities referred to in 

9 each clause of paragraph (4)(B); 

10 ‘‘(iii) 30 percent of the funds to carry 

11 out activities for product diversification 

12 under paragraph (4)(C); and 

13 ‘‘(iv) 5 percent of the funds to carry 

14 out activities for strategic guidance under 

15 paragraph (4)(D). 

16 ‘‘(C) DISTRIBUTION OF FUNDING WITHIN

17 EACH TECHNICAL AREA.—Within each technical 

18 area described in subparagraphs (A) through 

19 (C) of paragraph (4), funds shall be distributed 

20 for each of fiscal years 2007 through 2012 so 

21 as to achieve an approximate distribution of— 

22 ‘‘(i) 15 percent of the funds for ap23 plied fundamentals; 

24 ‘‘(ii) 35 percent of the funds for inno25 vation; and 


hsrobinson on PROD1PC76 with BILLS
134 

•HR 5437 IH

1 ‘‘(iii) 50 percent of the funds for dem2 onstration and commercial applications. 

3 ‘‘(D) MATCHING FUNDS.— 

4 ‘‘(i) IN GENERAL.—A minimum 20 

5 percent funding match shall be required 

6 for demonstration projects under this sec7 tion. 

8 ‘‘(ii) COMMERCIAL APPLICATIONS.—A 

9 minimum of 50 percent funding match 

10 shall be required for commercial applica11 tion projects under this section. 

12 ‘‘(E) TECHNOLOGY AND INFORMATION

13 TRANSFER TO AGRICULTURAL USERS.—The Ad14 ministrator of the Cooperative State Research, 

15 Education, and Extension Service and the Chief 

16 of the Natural Resources Conservation Service 

17 shall ensure that applicable research results and 

18 technologies from the Initiative are adapted, 

19 made available, and disseminated through those 

20 services, as appropriate. 

21 ‘‘(h) ADMINISTRATIVE SUPPORT AND FUNDS.— 

22 ‘‘(1) IN GENERAL.—To the extent administra23 tive support and funds are not provided by other 

24 agencies under paragraph (2)(b), the Secretary of 

25 Energy and the Secretary of Agriculture may proVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00134 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
135 

•HR 5437 IH

1 vide such administrative support and funds of the 

2 Department of Energy and the Department of Agri3 culture to the Board and the Advisory Committee as 

4 are necessary to enable the Board and the Advisory 

5 Committee to carry out their duties under this sec6 tion. 

7 ‘‘(2) OTHER AGENCIES.—The heads of the 

8 agencies referred to in subsection (e)(2)(C), and the 

9 other members appointed under subsection 

10 (e)(2)(D), may, and are encouraged to, provide ad11 ministrative support and funds of their respective 

12 agencies to the Board and the Advisory Committee. 

13 ‘‘(3) LIMITATION.—Not more than 4 percent of 

14 the amount appropriated for each fiscal year under 

15 subsection (g)(6) may be used to pay the adminis16 trative costs of carrying out this section. 

17 ‘‘(i) REPORTS.— 

18 ‘‘(1) ANNUAL REPORTS.—For each fiscal year 

19 for which funds are made available to carry out this 

20 section, the Secretary of Energy and the Secretary 

21 of Agriculture shall jointly submit to Congress a de22 tailed report on— 

23 ‘‘(A) the status and progress of the Initia24 tive, including a report from the Advisory Com25 mittee on whether funds appropriated for the 


hsrobinson on PROD1PC76 with BILLS
136 

•HR 5437 IH

1 Initiative have been distributed and used in a 

2 manner that— 

3 ‘‘(i) is consistent with the objectives, 

4 purposes, and additional considerations de5 scribed in paragraphs (2) through (5) of 

6 subsection (g); 

7 ‘‘(ii) uses the set of criteria estab8 lished in the initial report submitted under 

9 title III of the Agricultural Risk Protection 

10 Act of 2000; 

11 ‘‘(iii) achieves the distribution of 

12 funds described in subparagraphs (B) and 

13 (C) of subsection (g)(7); and 

14 ‘‘(iv) takes into account any rec15 ommendations that have been made by the 

16 Advisory Committee; 

17 ‘‘(B) the general status of cooperation and 

18 research and development efforts carried out at 

19 each agency with respect to biobased fuels and 

20 biobased products, including a report from the 

21 Advisory Committee on whether the points of 

22 contact are funding proposals that are selected 

23 under subsection (g)(3)(B)(iii); and 

24 ‘‘(C) the plans of the Secretary of Energy 

25 and the Secretary of Agriculture for addressing 


hsrobinson on PROD1PC76 with BILLS
137 

•HR 5437 IH

1 concerns raised in the report, including con2 cerns raised by the Advisory Committee. 

3 ‘‘(2) UPDATES.—The Secretary and the Sec4 retary of Energy shall update the Vision and Road5 map documents prepared for Federal biomass re6 search and development activities. 

7 ‘‘(3) MANAGEMENT PLAN.—The Secretary shall 

8 every five years, in consultation with the Secretary 

9 of Energy, submit to Congress a detailed manage10 ment plan for the implementation of this section. 

11 The management plan shall include— 

12 ‘‘(A) consideration of the contribution of 

13 the section towards achieving the objectives re14 ferred to in paragraphs (2) and (3) of sub15 section (g) and in achieving the goals of the 

16 biomass program of the Department of Energy; 

17 ‘‘(B) consideration of input solicited from 

18 the Advisory Committee, State, and private 

19 sources; and 

20 ‘‘(C) specific and quantifiable near and 

21 long-term goals. 

22 ‘‘(j) FUNDING.— 

23 ‘‘(1) IN GENERAL.—Of the funds of the Com24 modity Credit Corporation, the Secretary of AgriVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00137 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
138 

•HR 5437 IH

1 culture shall make available to carry out this sec2 tion— 

3 ‘‘(A) $35,000,000 for fiscal year 2008; 

4 ‘‘(B) $60,000,000 for fiscal year 2009; 

5 ‘‘(C) $75,000,000 for fiscal year 2010; 

6 ‘‘(D) $100,000,000 for fiscal year 2011; 

7 and 

8 ‘‘(E) $150,000,000 for fiscal year 2012. 

9 ‘‘(2) ADDITIONAL FUNDING.—In addition to 

10 amounts transferred under paragraph (1), there are 

11 authorized to be appropriated to carry out this sec12 tion $200,000,000 for each of fiscal years 2006 

13 through 2015.’’. 

14 (b) REPEAL.—Title III of the Agricultural Risk Pro15 tection Act of 2000 (Public Law 106–224; 7 U.S.C. 8601 

16 et seq.) is hereby repealed. 

17 (c) MANAGEMENT PLAN SUBMISSION DATE.—The 

18 first management plan required to be submitted under sec19 tion 9008(i)(3) of the Biomass Research and Development 

20 Act of 2000, as added by subsection (a), shall be sub21 mitted not later than 180 days after the date of the enact22 ment of this Act. 


hsrobinson on PROD1PC76 with BILLS
139 

•HR 5437 IH

1 SEC. 504. FOREST BIOENERGY RESEARCH PROGRAM. 

2 Title IX of the Farm Security and Rural Investment 

3 Act of 2002 (7 U.S.C. 8101 et seq.) is further amended 

4 by adding at the end the following new section: 

5 ‘‘SEC. 9013. FOREST BIOENERGY RESEARCH PROGRAM. 

6 ‘‘(a) IN GENERAL.—The Secretary of Agriculture, 

7 working through the Forest Service, in cooperation with 

8 other Federal agencies, land grant colleges and univer9 sities, and private entities, shall conduct a competitive re10 search and development program to encourage new forest11 to-energy technologies. The Secretary may use grants, co12 operative agreements, and other methods to partner with 

13 cooperating entities on projects that the Secretary deter14 mines shall best promote new forest-to-energy tech15 nologies. 

16 ‘‘(b) PRIORITY FOR PROJECT SELECTION.—The Sec17 retary shall give priority to projects that— 

18 ‘‘(1) develop technology and techniques to use 

19 low value forest materials, such as byproducts of for20 est health treatments and hazardous fuel reduction, 

21 for the production of energy; 

22 ‘‘(2) develop processes for the conversion of cel23 lulosic forest materials that integrate production of 

24 energy into existing manufacturing steams or in in25 tegrated forest biorefineries; 


hsrobinson on PROD1PC76 with BILLS
140 

•HR 5437 IH

1 ‘‘(3) develop new transportation fuels that use 

2 forest materials as a feedstock for the production of 

3 such fuels; or 

4 ‘‘(4) improve the of growth and yield of trees 

5 for the purpose of renewable energy and other forest 

6 product use. 

7 ‘‘(c) FUNDING.—Of the funds of the Commodity 

8 Credit Corporation, the Secretary of Agriculture shall 

9 make available to carry out this section— 

10 ‘‘(1) $4,000,000 for fiscal year 2008; 

11 ‘‘(2) $6,000,000 for fiscal year 2009; 

12 ‘‘(3) $7,000,000 for fiscal year 2010; 

13 ‘‘(4) $9,000,000 for fiscal year 2011; and 

14 ‘‘(5) $10,000,000 for fiscal year 2012.’’. 

15 SEC. 505. EARLY ACTION RENEWABLE FUEL MARKETING. 

16 (a) ADMINISTRATION.—Section 211(o)(5) of the 

17 Clean Air Act (as amended by by Public Law 110–140) 

18 is amended by adding the following new subparagraph at 

19 the end thereof: 

20 ‘‘(E) USE OF EARLY RENEWABLE FUEL

21 CREDITS FOR ADVANCED BIOFUEL.—Any per22 son who generates credits for renewable fuel 

23 that exceed it annual obligation for renewable 

24 fuel and its obligation for renewable fuel during 

25 the 12 month period specified in subparagraph 


hsrobinson on PROD1PC76 with BILLS
141 

•HR 5437 IH

1 (C) may retain such credits and use the credits 

2 (on a volume equivalent basis) for the purpose 

3 of complying with such person’s obligation 

4 under paragraph (2) with respect to advanced 

5 biofuel in any future year (notwithstanding the 

6 12-month limitation referred to in subpara7 graph (C)).’’. 

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

9 subsection (a) shall take effect on January 1, 2009. 

10 TITLE VI—ALTERNATIVE 

11 VEHICLE FUELS 

12 SEC. 601. CREDIT FOR PLUG-IN HYBRID VEHICLES. 

13 (a) IN GENERAL.—Subpart B of part IV of sub14 chapter A of chapter 1 of the Internal Revenue Code of 

15 1986 (relating to other credits), as amended by this Act, 

16 is amended by adding at the end the following new section: 

17 ‘‘SEC. 30E. PLUG-IN HYBRID VEHICLES. 

18 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al19 lowed as a credit against the tax imposed by this chapter 

20 for the taxable year an amount equal to the cost of any 

21 qualified plug-in hybrid vehicle placed in service by the 

22 taxpayer during the taxable year. 

23 ‘‘(b) LIMITATIONS.— 


hsrobinson on PROD1PC76 with BILLS
142 

•HR 5437 IH

1 ‘‘(1) LIMITATION PER VEHICLE.—The amount 

2 of the credit allowed under subsection (a) for any ve3 hicle shall not exceed the sum of— 

4 ‘‘(A) $4,000 in the case of a plug-in elec5 tric drive vehicle with 4kWh traction battery, 

6 and 

7 ‘‘(B) $250 for each additional kWh of 

8 traction battery capacity of such vehicle as ex9 ceeds 4 kWh but does not exceed 50 kWh. 

10 ‘‘(2) APPLICATION WITH OTHER CREDITS.— 

11 ‘‘(A) BUSINESS CREDIT TREATED AS PART

12 OF GENERAL BUSINESS CREDIT.—So much of 

13 the credit which would be allowed under sub14 section (a) for any taxable year (determined 

15 without regard to this paragraph) that is attrib16 utable to property of a character subject to an 

17 allowance for depreciation shall be treated as a 

18 credit listed in section 38(b) for such taxable 

19 year (and not allowed under subsection (a)). 

20 ‘‘(B) PERSONAL CREDITS.—The credit al21 lowed by subsection (a) for any taxable year 

22 shall not exceed the excess (if any) of— 

23 ‘‘(i) the sum of the regular tax liabil24 ity (as defined in section 26(b)) plus the 

25 tax imposed by section 55, over 


hsrobinson on PROD1PC76 with BILLS
143 

•HR 5437 IH

1 ‘‘(ii) the sum of the credits allowable 

2 under subpart A and subpart B (other 

3 than this section). 

4 ‘‘(c) QUALIFIED PLUG-IN HYBRID VEHICLE.—For 

5 purposes of this section— 

6 ‘‘(1) IN GENERAL.—The term ‘qualified plug-in 

7 hybrid vehicle’ means a motor vehicle (as defined in 

8 section 30(c)(2))— 

9 ‘‘(A) the original use of which commences 

10 with the taxpayer, 

11 ‘‘(B) which is acquired for use or lease by 

12 the taxpayer and not for resale, 

13 ‘‘(C) which is made by a manufacturer, 

14 ‘‘(D) which has received a certificate of 

15 conformity under the Clean Air Act, and 

16 ‘‘(E) which has not less than 2 onboard 

17 sources of stored energy, different in character 

18 from each other, from which to draw propulsion 

19 energy, where— 

20 ‘‘(i) at least 1 of such sources is ener21 gized by plugging into an external source 

22 of electric power, and 

23 ‘‘(ii) at least 1 of such sources is ener24 gized from an internal combustion engine, 


hsrobinson on PROD1PC76 with BILLS
144 

•HR 5437 IH

1 fuel cell, or other means, and such 

2 source— 

3 ‘‘(I) is utilized to provide me4 chanical propulsion to the vehicle, or 

5 ‘‘(II) is used to recharge the bat6 tery as an on-board recharging system 

7 that is used to maintain charge to the 

8 battery. 

9 ‘‘(2) EXCEPTION.—The term ‘qualified plug-in 

10 hybrid vehicle’ shall not include any vehicle which is 

11 not a passenger automobile or light truck if such ve12 hicle has a gross vehicle weight rating of less than 

13 8,500 pounds. 

14 ‘‘(3) OTHER TERMS.—The terms ‘‘automobile’’, 

15 ‘‘passenger automobile’’, ‘‘light truck’’, and ‘‘manu16 facturer’’ have the meanings given such terms in 

17 regulations prescribed by the Administrator of the 

18 Environmental Protection Agency for purposes of 

19 the administration of title II of the Clean Air Act 

20 (42 U.S.C. 7521 et seq.). 

21 ‘‘(4) Kwh TRACTION BATTERY CAPACITY.—The 

22 term ‘kWh traction battery capacity’ means the size 

23 of an electro chemical storage device, expressed in 

24 kWh, as measured from a 100 percent state of 

25 charge to 0 percent state of charge. 


hsrobinson on PROD1PC76 with BILLS
145 

•HR 5437 IH

1 ‘‘(d) SPECIAL RULES.— 

2 ‘‘(1) BASIS REDUCTION.—The basis of any 

3 property for which a credit is allowable under sub4 section (a) shall be reduced by the amount of such 

5 credit (determined without regard to subsection 

6 (b)(2)). 

7 ‘‘(2) RECAPTURE.—The Secretary shall, by reg8 ulations, provide for recapturing the benefit of any 

9 credit allowable under subsection (a) with respect to 

10 any property which ceases to be property eligible for 

11 such credit. 

12 ‘‘(3) PROPERTY USED OUTSIDE UNITED

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

14 allowed under subsection (a) with respect to any 

15 property referred to in section 50(b) or with respect 

16 to the portion of the cost of any property taken into 

17 account under section 179. 

18 ‘‘(4) DENIAL OF DOUBLE BENEFIT.—No credit 

19 shall be allowed under this section with respect to a 

20 vehicle if a credit or deduction is allowed with re21 spect to such vehicle under any other provision of 

22 this title. 

23 ‘‘(5) ELECTION NOT TO TAKE CREDIT.—No 

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


hsrobinson on PROD1PC76 with BILLS
146 

•HR 5437 IH

1 vehicle if the taxpayer elects to not have this section 

2 apply to such vehicle. 

3 ‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTITY; 

4 INTERACTION WITH AIR QUALITY AND MOTOR VEHI5 CLE SAFETY STANDARDS.—Rules similar to the rules 

6 of paragraphs (6) and (10) of section 30B(h) shall 

7 apply for purposes of this section. 

8 ‘‘(e) TERMINATION.—This section shall not apply to 

9 any property placed in service after December 31, 2014.’’. 

10 (b) PLUG-IN HYBRID VEHICLES NOT COUNTED TO11 WARD LIMITATION ON NUMBER OF NEW QUALIFIED HY12 BRID VEHICLES ELIGIBLE FOR 30B CREDIT.—Section 

13 30B(f)(5) of such Code (defining qualified vehicle) is 

14 amended by adding at the end the following new sentence: 

15 ‘‘Such term shall not include a qualified plug-in hybrid 

16 vehicle (as defined in section 30E(c)).’’. 

17 (c) CREDIT MADE PART OF GENERAL BUSINESS

18 CREDIT.—Section 38(b) of such Code, as amended by this 

19 Act, is amended by striking ‘‘and’’ at the end of paragraph 

20 (31), by striking the period at the end of paragraph (32) 

21 and inserting ‘‘, plus’’, and by adding at the end the fol22 lowing new paragraph: 

23 ‘‘(33) the portion of the plug-in hybrid vehicle 

24 credit to which section 30E(b)(2)(A) applies.’’. 


hsrobinson on PROD1PC76 with BILLS
147 

•HR 5437 IH

1 (d) CONFORMING AMENDMENT.—Section 6501(m) of 

2 such Code is amended by inserting ‘‘30E(d)(5),’’ after 

3 ‘‘30D(e)(5),’’. 

4 (e) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2007. 

7 SEC. 602. USE OF CREDITS. 

8 Section 312(b) of the Energy Policy Act of 1992 (42 

9 U.S.C. 13220(b)) is amended— 

10 (1) by striking ‘‘(b) USE OF CREDITS.—’’ and 

11 all that follows through ‘‘At the request’’ and insert12 ing ‘‘(b) USE OF CREDITS.—At the request’’; and 

13 (2) by striking paragraph (2). 

14 TITLE VII—OFFSHORE OIL AND 

15 GAS LEASING 

16 SEC. 701. TERMINATION OF PROHIBITIONS ON EXPENDI17 TURES FOR, AND WITHDRAWALS FROM, OFF18 SHORE LEASING. 

19 (a) PROHIBITIONS ON EXPENDITURES.—All provi20 sions of Federal law that prohibit the expenditure of ap21 propriated funds to conduct oil or natural gas leasing and 

22 preleasing activities for any area of the Outer Continental 

23 Shelf shall have no force or effect with respect to such 

24 activities. 


hsrobinson on PROD1PC76 with BILLS
148 

•HR 5437 IH

1 (b) REVOCATION WITHDRAWALS.—All withdrawals 

2 of Federal submerged lands of the Outer Continental Shelf 

3 from leasing, including withdrawals by the President 

4 under the authority of section 12(a) of the Outer Conti5 nental Shelf Lands Act (43 U.S.C. 1341(a)), are hereby 

6 revoked and are no longer in effect with respect to the 

7 leasing of areas for exploration for, and development and 

8 production of, oil and natural gas. 

9 SEC. 702. OUTER CONTINENTAL SHELF LEASING PROGRAM. 

10 The Outer Continental Shelf Lands Act (43 U.S.C. 

11 1331 et seq.) is amended by inserting after section 9 the 

12 following: 

13 ‘‘SEC. 10. MORATORIA AREA AND STATE APPROVAL RE14 QUIREMENT WITH RESPECT TO OIL AND NAT15 URAL GAS LEASING. 

16 ‘‘(a) BUFFER ZONE.—The Secretary may not grant 

17 any oil or natural gas lease for any area of the outer Con18 tinental Shelf that is located within 25 miles of the coast19 line of a State. 

20 ‘‘(b) STATE APPROVAL REQUIREMENT.— 

21 ‘‘(1) IN GENERAL.—The Secretary may not 

22 issue any lease authorizing exploration for, or devel23 opment of, natural gas in any area of the outer Con24 tinental Shelf that is located within 50 miles of the 

25 coastline of a State unless the State has enacted a 


hsrobinson on PROD1PC76 with BILLS
149 

•HR 5437 IH

1 law approving of the issuance of such leases by the 

2 Secretary. 

3 ‘‘(2) STATE APPROVAL PERMANENT.—Repeal of 

4 such a law by a State shall have no effect for pur5 poses of paragraph (1). 

6 ‘‘(c) STATE DISAPPROVAL AUTHORITY.— 

7 ‘‘(1) IN GENERAL.—The Secretary may not 

8 issue any lease authorizing exploration for, or devel9 opment of, oil or natural gas in any area of the 

10 outer Continental Shelf that is located more than 50 

11 miles and less than 100 miles from the coastline of 

12 a State if the State has enacted a law disapproving 

13 of the issuance of such leases by the Secretary. 

14 ‘‘(2) REQUIREMENTS FOR STATE LAW.—A law 

15 enacted by a State for purposes of paragraph (1)— 

16 ‘‘(A) shall have no force or effect for pur17 poses of paragraph (1) unless first enacted by 

18 the State within the one-year period beginning 

19 on the date of the enactment of the National 

20 Environment and Energy Development Act; and 

21 ‘‘(B) shall have no force or effect for pur22 poses of paragraph (1) after the end of the 2- 

23 year period beginning on the date it first takes 

24 effect, unless the State, in the 2-year period 

25 preceding the application of the law for purVerDate Aug 31 2005 20:43 Feb 21, 2008 Jkt 069200 PO 00000 Frm 00149 Fmt 6652 Sfmt 6201 E:\BILLS\H5437.IH H5437

hsrobinson on PROD1PC76 with BILLS
150 

•HR 5437 IH

1 poses of paragraph (1), enacted legislation ex2 tending the effectiveness of the law.’’. 

3 SEC. 703. SHARING OF REVENUES. 

4 (a) IN GENERAL.—Section 8(g) of the Outer Conti5 nental Shelf Lands Act (43 U.S.C. 1337(g)) is amended— 

6 (1) in paragraph (2) by striking ‘‘Notwith7 standing’’ and inserting ‘‘Except as provided in 

8 paragraph (6), and notwithstanding’’; 

9 (2) by redesignating paragraphs (6) and (7) as 

10 paragraphs (8) and (9); and 

11 (3) by inserting after paragraph (5) the fol12 lowing: 

13 ‘‘(6) BONUS BIDS AND ROYALTIES UNDER

14 QUALIFIED OIL AND GAS LEASES.— 

15 ‘‘(A) NEW OIL AND GAS LEASES.—Of 

16 amounts received by the United States as bonus 

17 bids and royalties under any qualified oil or gas 

18 lease on submerged lands that are located with19 in the seaward boundaries of a State estab20 lished under section 4(a)(2)(A)— 

21 ‘‘(i) 37.5 percent shall be paid to the 

22 States that are producing States with re23 spect to those submerged lands; and 

24 ‘‘(ii) the remainder shall be trans25 ferred to the American-Made Energy Trust 


hsrobinson on PROD1PC76 with BILLS
151 

•HR 5437 IH

1 Fund established by section 9511 of the 

2 Internal Revenue Code of 1986. 

3 ‘‘(B) LEASED TRACT THAT LIES PAR4 TIALLY WITHIN THE SEAWARD BOUNDARIES OF

5 A STATE.—In the case of a leased tract that lies 

6 partially within the seaward boundaries of a 

7 State, the amounts of bonus bids and royalties 

8 from such tract that are subject to subpara9 graph (A) with respect to such State shall be a 

10 percentage of the total amounts of bonus bids 

11 and royalties from such tract that is equivalent 

12 to the total percentage of surface acreage of the 

13 tract that lies within such seaward boundaries. 

14 ‘‘(C) USE OF PAYMENTS TO STATES.— 

15 Amounts paid to a State under subparagraph 

16 (A)(ii) shall be used by the State for one or 

17 more of the following: 

18 ‘‘(i) Education. 

19 ‘‘(ii) Transportation. 

20 ‘‘(iii) Reducing taxes. 

21 ‘‘(iv) Coastal and environmental res22 toration. 

23 ‘‘(v) Energy infrastructure and 

24 projects. 


hsrobinson on PROD1PC76 with BILLS
152 

•HR 5437 IH

1 ‘‘(vi) State seismic monitoring pro2 grams. 

3 ‘‘(vii) Alternative energy development. 

4 ‘‘(viii) Energy efficiency and conserva5 tion. 

6 ‘‘(ix) Hurricane and natural disaster 

7 insurance programs. 

8 ‘‘(x) Any other purpose determined by 

9 State law. 

10 ‘‘(D) DEFINITIONS.—In this paragraph: 

11 ‘‘(i) ADJACENT STATE.—The term 

12 ‘adjacent State’ means, with respect to any 

13 program, plan, lease sale, leased tract or 

14 other activity, proposed, conducted, or ap15 proved pursuant to the provisions of this 

16 Act, any State the laws of which are de17 clared, pursuant to section 4(a)(2), to be 

18 the law of the United States for the por19 tion of the outer Continental Shelf on 

20 which such program, plan, lease sale, 

21 leased tract, or activity appertains or is, or 

22 is proposed to be, conducted. 

23 ‘‘(ii) ADJACENT ZONE.—The term 

24 ‘adjacent zone’ means, with respect to any 

25 program, plan, lease sale, leased tract, or 


hsrobinson on PROD1PC76 with BILLS
153 

•HR 5437 IH

1 other activity, proposed, conducted, or ap2 proved pursuant to the provisions of this 

3 Act, the portion of the outer Continental 

4 Shelf for which the laws of a particular ad5 jacent State are declared, pursuant to sec6 tion 4(a)(2), to be the law of the United 

7 States. 

8 ‘‘(iii) PRODUCING STATE.—The term 

9 ‘producing State’ means an Adjacent State 

10 having an adjacent zone containing leased 

11 tracts from which are derived bonus bids 

12 and royalties under a lease under this Act. 

13 ‘‘(iv) STATE.—The term ‘State’ in14 cludes Puerto Rico and the other Terri15 tories of the United States. 

16 ‘‘(v) QUALIFIED GAS LEASE.—The 

17 term ‘qualified oil or gas lease’ means a 

18 lease under this Act granted after the date 

19 of the enactment of the National Environ20 ment and Energy Development Act that 

21 authorizes development and production of 

22 oil or natural gas and associated conden23 sate. 


hsrobinson on PROD1PC76 with BILLS
154 

•HR 5437 IH

1 ‘‘(E) APPLICATION.—This paragraph shall 

2 apply to bonus bids and royalties received by 

3 the United States after September 30, 2007. 

4 ‘‘(7) MAINTENANCE OF EFFORT BY STATES.— 

5 The Secretary of the Interior shall ensure that fi6 nancial assistance provided to a State for any pur7 pose with amounts made available under this sub8 section supplement, and do not replace, the amounts 

9 expended by the State for that purpose before the 

10 date of the enactment of this paragraph.’’. 

11 (b) ESTABLISHMENT OF STATE SEAWARD BOUND12 ARIES.—Section 4(a)(2)(A) of the Outer Continental Shelf 

13 Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the 

14 first sentence by striking ‘‘, and the President’’ and all 

15 that follows through the end of the sentence and inserting 

16 the following: ‘‘. Such extended lines are deemed to be as 

17 indicated on the maps for each Outer Continental Shelf 

18 region entitled ‘Alaska OCS Region State Adjacent Zone 

19 and OCS Planning Areas’, ‘Pacific OCS Region State Ad20 jacent Zones and OCS Planning Areas’, ‘Gulf of Mexico 

21 OCS Region State Adjacent Zones and OCS Planning 

22 Areas’, and ‘Atlantic OCS Region State Adjacent Zones 

23 and OCS Planning Areas’, all of which are dated Sep24 tember 2005 and on file in the Office of the Director, Min25 erals Management Service. The preceding sentence shall 


hsrobinson on PROD1PC76 with BILLS
155 

•HR 5437 IH

1 not apply with respect to the treatment under section 105 

2 of the Gulf of Mexico Energy Security Act of 2006 (title 

3 I of division C of Public Law 109–432) of qualified outer 

4 Continental Shelf revenues deposited and disbursed under 

5 subsection (a)(2) of that section.’’. 

6 TITLE VIII—INCREASING NU7 CLEAR GENERATED ELEC8 TRIC ENERGY 

9 SEC. 801. INCREASING NUCLEAR GENERATED ELECTRIC 

10 ENERGY. 

11 Notwithstanding any other provision of law, the 

12 President is authorized to take such steps as are necessary 

13 to increase the share of electricity generated from nuclear 

14 power to 40 percent of the total domestic generation by 

15 the year 2050. 

Æ 


hsrobinson on PROD1PC76 with BILLS