II 

110TH CONGRESS 

1ST SESSION S. 1370 

To amend the Internal Revenue Code of 1986 to ensure more investment 

and innovation in clean energy technologies. 

IN THE SENATE OF THE UNITED STATES 

MAY 11, 2007 

Ms. CANTWELL (for herself, Mr. SMITH, and Mr. KERRY) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to ensure 

more investment and innovation in clean energy technologies. 

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; ETC. 

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

5 ‘‘Clean Energy Investment Assurance Act of 2007’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

9 to, or repeal of, a section or other provision, the reference 


pwalker on PROD1PC71 with BILLS
2 

•S 1370 IS

1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 (c) TABLE OF CONTENTS.—The table of contents of 

4 this Act is as follows: 

Sec. 1. Short title; etc. 

Sec. 2. Expansion and modification of renewable electricity production credit. 

Sec. 3. Extension and expansion of credit to holders of clean renewable energy 

bonds. 

Sec. 4. Extension and modification of residential energy efficient property credit. 

Sec. 5. Extension and modification of energy credit. 

Sec. 6. Extension and modification of nonbusiness energy property credit. 

Sec. 7. Extension of new energy efficient home credit. 

Sec. 8. Extension and modification of deduction for energy efficient commercial 

buildings. 

Sec. 9. Five-year applicable recovery period for depreciation of qualified energy 

management devices. 

5 SEC. 2. EXPANSION AND MODIFICATION OF RENEWABLE 

6 ELECTRICITY PRODUCTION CREDIT. 

7 (a) CREDIT TO INCLUDE PRODUCTION OF THERMAL

8 ENERGY.— 

9 (1) IN GENERAL.—Section 45 is amended by 

10 adding at the end the following new subsection: 

11 ‘‘(f) CREDIT FOR PRODUCTION OF THERMAL EN12 ERGY.— 

13 ‘‘(1) IN GENERAL.—In the case of a taxpayer 

14 who— 

15 ‘‘(A) produces thermal energy from closed16 loop biomass, open-loop biomass, or geothermal 

17 energy at a qualified facility, and 

18 ‘‘(B) makes an election under this sub19 section with respect to such facility, 


pwalker on PROD1PC71 with BILLS
3 

•S 1370 IS

1 subsection (a) shall be applied by substituting ‘each 

2 3,413 Btus of thermal energy (or fraction thereof)’ 

3 for ‘the kilowatt hours of electricity’ in paragraph 

4 (2) thereof. 

5 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—If an elec6 tion under this subsection is in effect with respect 

7 to any facility, no credit shall be allowed under sub8 section (a) with respect to the production of elec9 tricity at such facility. 

10 ‘‘(3) ELECTION.— 

11 ‘‘(A) IN GENERAL.—An election under this 

12 subsection shall specify the facility to which the 

13 election applies and shall be in such manner as 

14 the Secretary may by regulations prescribe. 

15 ‘‘(B) ELECTION IRREVOCABLE.—Any elec16 tion made under this subsection may not be re17 voked except with the consent of the Sec18 retary.’’. 

19 (2) CONFORMING AMENDMENTS.— 

20 (A) Section 45(c)(2) is amended by insert21 ing ‘‘or thermal energy’’ after ‘‘electricity’’. 

22 (B) Section 45(d) is amended by inserting 

23 ‘‘or thermal energy’’ after ‘‘electricity’’ each 

24 place it appears in paragraphs (2), (3), and (4). 


pwalker on PROD1PC71 with BILLS
4 

•S 1370 IS

1 (C) Section 45(e) is amended by inserting 

2 ‘‘or thermal energy’’ after ‘‘electricity’’ each 

3 place it appears in paragraphs (1) and (4). 

4 (D) The heading of section 45 is amended 

5 by inserting ‘‘AND THERMAL ENERGY’’ after 

6 ‘‘ELECTRICITY’’. 

7 (E) The item relating to section 45 in the 

8 table of sections for subpart D of part IV of 

9 subchapter A of chapter 1 is amended by in10 serting ‘‘and thermal energy’’ after ‘‘Elec11 tricity’’. 

12 (b) EXTENSION.—Paragraphs (1), (2), (3), (4), (5), 

13 (6), (7), and (9) of section 45(d) (relating to qualified fa14 cilities) is amended by striking ‘‘January 1, 2009’’ each 

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

16 (c) CREDIT ALLOWED FOR ZERO-CARBON EMISSIONS

17 RESOURCE FACILITIES.— 

18 (1) IN GENERAL.—Section 45(c)(1) (defining 

19 qualified energy resources) is amended by striking 

20 ‘‘and’’ at the end of subparagraph (G), by striking 

21 the period at the end of subparagraph (H) and in22 serting ‘‘, and’’, and by adding at the end the fol23 lowing new subparagraph: 

24 ‘‘(I) zero-carbon emissions resources.’’. 


pwalker on PROD1PC71 with BILLS
5 

•S 1370 IS

1 (2) DEFINITION OF RESOURCES.—Section 45(c) 

2 is amended by adding at the end the following new 

3 paragraph: 

4 ‘‘(10) ZERO-CARBON EMISSIONS RESOURCE.— 

5 The term ‘zero-carbon emission resource’ means any 

6 resource— 

7 ‘‘(A) not described in paragraphs (2) 

8 through (9), 

9 ‘‘(B) from which electricity can be pro10 duced without producing carbon emissions, and 

11 ‘‘(C) which is approved by the Secretary.’’. 

12 (3) FACILITIES.—Section 45(d) is amended by 

13 adding at the end the following new paragraph: 

14 ‘‘(11) ZERO-CARBON EMISSIONS RESOURCE FA15 CILITY.—In the case of a facility using a zero-carbon 

16 emissions resource to produce electricity, the term 

17 ‘qualified facility’ means any facility owned by the 

18 taxpayer which is originally placed in service after 

19 the date of the enactment of this paragraph and be20 fore January 1, 2014.’’. 

21 (d) REPEAL OF REDUCTION FOR GRANTS, TAX-EX22 EMPT BONDS, SUBSIDIZED ENERGY FINANCING, ETC.— 

23 Subsection (b) of section 45 is amended by striking para24 graph (3) and by redesignating paragraph (4) as para25 graph (3). 


pwalker on PROD1PC71 with BILLS
6 

•S 1370 IS

1 (e) ELIMINATION OF REDUCED CREDIT RATE FOR

2 ELECTRICITY PRODUCED AND SOLD FROM CERTAIN FA3 CILITIES.—Paragraph (3) of section 45(b), as redesig4 nated by subsection (d), is amended to read as follows: 

5 ‘‘(3) CREDIT PERIOD FOR ELECTRICITY PRO6 DUCED AND SOLD FROM CERTAIN FACILITIES.— 

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

8 subparagraph (B) or subparagraph (C), in the 

9 case of any facility described in paragraph (3), 

10 (4), (5), (6), or (7) of subsection (d), the 5-year 

11 period beginning on the date the facility was 

12 originally placed in service shall be substituted 

13 for the 10-year period in subsection 

14 (a)(2)(A)(ii). 

15 ‘‘(B) CERTAIN OPEN-LOOP BIOMASS FA16 CILITIES.—In the case of any facility described 

17 in subsection (d)(3)(A)(ii) placed in service be18 fore October 22, 2004, the 5-year period begin19 ning on January 1, 2005, shall be substituted 

20 for the 10-year period in subsection 

21 (a)(2)(A)(ii). 

22 ‘‘(C) TERMINATION.—Subparagraph (A) 

23 shall not apply to any facility placed in service 

24 after August 8, 2005.’’. 


pwalker on PROD1PC71 with BILLS
7 

•S 1370 IS

1 (f) MODIFICATION OF DEFINITION OF CLOSED-LOOP

2 BIOMASS.—Paragraph (2) of section 45(c), as amended 

3 by subsection (a)(2)(A), is amended by adding at the end 

4 the following new sentence: ‘‘For purposes of the pre5 ceding sentence, a plant shall not fail to be considered as 

6 having been planted exclusively for purposes of being used 

7 at a qualified facility to produce electricity or thermal en8 ergy solely because any portion of such plant is used to 

9 produce alcohol (as defined in section 40(d)(1)), biodiesel 

10 (as defined in section 40A(d)(1)), or a fuel described in 

11 section 6426(d)(2)(F).’’. 

12 (g) MODIFICATION TO QUALIFIED HYDROPOWER FA13 CILITIES.— 

14 (1) NONHYDROELECTRIC DAMS.—Clause (iii) of 

15 section 45(c)(8)(C) is amended to read as follows: 

16 ‘‘(iii) turbines or other generating de17 vices are to be added to the facility after 

18 such date to produce hydroelectric power, 

19 but only if any enlargement of the diver20 sion structure, or construction or enlarge21 ment of a bypass channel, is completed in 

22 compliance with the Federal Energy Regu23 latory Commission license of the facility 

24 and there is no additional impoundment or 


pwalker on PROD1PC71 with BILLS
8 

•S 1370 IS

1 any withholding of any additional water 

2 from the natural stream channel.’’. 

3 (2) QUALIFIED HYDROPOWER FACILITY.—Para4 graph (9) of section 45(d), as amended by sub5 section (b), is amended to read as follows: 

6 ‘‘(9) QUALIFIED HYDROPOWER FACILITY.— 

7 ‘‘(A) IN GENERAL.—In the case of a facil8 ity producing qualified hydroelectric production 

9 described in subsection (c)(8), the term ‘quali10 fied facility’ means— 

11 ‘‘(i) in the case of any facility pro12 ducing incremental hydropower production, 

13 such facility but only to the extent of its 

14 incremental hydropower production attrib15 utable to efficiency improvements or addi16 tions of capacity described in subsection 

17 (c)(8)(B) placed in service after August 8, 

18 2005, and before January 1, 2014, and 

19 ‘‘(ii) any other facility placed in serv20 ice after August 8, 2005, and before Janu21 ary 1, 2014. 

22 ‘‘(B) CREDIT PERIOD.—In the case of a 

23 qualified facility described in subparagraph 

24 (A)(i), the 10-year period referred to in sub25 section (a) shall be treated as beginning on the 


pwalker on PROD1PC71 with BILLS
9 

•S 1370 IS

1 date the efficiency improvements or additions of 

2 capacity are placed in service.’’. 

3 (h) REPEAL OF NETTING RULE FOR SIMULTANEOUS

4 SALES AND PURCHASES OF ELECTRICITY PRODUCED

5 FROM OPEN-LOOP BIOMASS.—Subsection (e) of section 

6 45 is amended by adding at the end the following new 

7 paragraph: 

8 ‘‘(12) SPECIAL RULE RELATING TO SIMULTA9 NEOUS SALE AND PURCHASE OF ELECTRICITY PRO10 DUCED FROM OPEN-LOOP BIOMASS.—Electricity or 

11 thermal energy produced from open-loop biomass by 

12 the taxpayer at any location and sold to an unre13 lated party shall be taken into account under sub14 section (a) notwithstanding whether such taxpayer 

15 simultaneously purchased electricity or thermal en16 ergy from an unrelated person for use at the same 

17 location.’’. 

18 (i) EFFECTIVE DATES.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendments made by this section 

21 shall apply to electricity and thermal energy pro22 duced and sold after the date of the enactment of 

23 this Act, in taxable years ending after such date. 

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

25 by subsection (c) shall apply to electricity produced 


pwalker on PROD1PC71 with BILLS
10 

•S 1370 IS

1 and sold after December 31, 2008, in taxable years 

2 ending after such date. 

3 SEC. 3. EXTENSION AND EXPANSION OF CREDIT TO HOLD4 ERS OF CLEAN RENEWABLE ENERGY BONDS. 

5 (a) EXTENSION.—Section 54(m) (relating to termi6 nation) is amended by striking ‘‘2008’’ and inserting 

7 ‘‘2013’’. 

8 (b) ANNUAL VOLUME CAP FOR BONDS ISSUED DUR9 ING EXTENSION PERIOD.—Paragraph (1) of section 54(f) 

10 (relating to limitation on amount of bonds designated) is 

11 amended to read as follows: 

12 ‘‘(1) NATIONAL LIMITATION.— 

13 ‘‘(A) INITIAL NATIONAL LIMITATION.— 

14 With respect to bonds issued after December 

15 31, 2005, and before January 1, 2009, there is 

16 a national clean renewable energy bond limita17 tion of $1,200,000,000. 

18 ‘‘(B) ANNUAL NATIONAL LIMITATION.— 

19 With respect to bonds issued after December 

20 31, 2008, and before January 1, 2014, there is 

21 a national clean renewable energy bond limita22 tion for each calendar year of 

23 $5,000,000,000.’’. 


pwalker on PROD1PC71 with BILLS
11 

•S 1370 IS

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

2 this section shall apply to bonds issued after December 

3 31, 2007. 

4 SEC. 4. EXTENSION AND MODIFICATION OF RESIDENTIAL 

5 ENERGY EFFICIENT PROPERTY CREDIT. 

6 (a) EXTENSION.—Subsection (g) of section 25D (re7 lating to termination) is amended by striking ‘‘December 

8 31, 2008’’ and inserting ‘‘December 31, 2016’’. 

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

10 section 25D(a) is amended by striking ‘‘30 percent of’’. 

11 (c) INCLUSION OF ENERGY STORAGE AIR CONDI12 TIONER PROPERTY.— 

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

14 25D is amended by striking ‘‘and’’ at the end of 

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

16 paragraph (3) and inserting ‘‘, and’’, and by adding 

17 at the end the following new paragraph: 

18 ‘‘(4) 30 percent of the qualified energy storage 

19 air conditioner property expenditures made by the 

20 taxpayer during such year.’’. 

21 (2) QUALIFIED ENERGY STORAGE AIR CONDI22 TIONER PROPERTY EXPENDITURE.—Section 25D(d) 

23 is amended by adding at the end the following new 

24 paragraph: 


pwalker on PROD1PC71 with BILLS
12 

•S 1370 IS

1 ‘‘(4) QUALIFIED ENERGY STORAGE AIR CONDI2 TIONER PROPERTY EXPENDITURE.—The term 

3 ‘qualified energy storage air conditioner property ex4 penditure’ means an expenditure for qualified energy 

5 storage air conditioner property (as defined in sec6 tion 48(d)) installed on or in connection with a 

7 dwelling unit located in the United States and used 

8 as a principal residence (within the meaning of sec9 tion 121) by the taxpayer.’’. 

10 (d) MODIFICATION OF MAXIMUM CREDIT.— 

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

12 25D(b) is amended to read as follows: 

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

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

15 exceed— 

16 ‘‘(A) $1,500 with respect to each half kilo17 watt of direct current of installed capacity of 

18 qualified solar electric property for which quali19 fied solar electric property expenditures are 

20 made, 

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

22 solar heating and cooling property expenditures, 

23 ‘‘(C) $500 with respect to each half kilo24 watt of capacity of qualified fuel cell property 

25 (as defined in section 48(c)(1)) for which qualiVerDate Aug 31 2005 22:55 May 11, 2007 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1370.IS S1370

pwalker on PROD1PC71 with BILLS
13 

•S 1370 IS

1 fied fuel cell property expenditures are made, 

2 and 

3 ‘‘(D) $500 with respect to each half kilo4 watt hour of peak reduction of qualified energy 

5 storage air conditioner property (as defined in 

6 section 48(d)) for which qualified energy stor7 age air conditioner expenditures are made.’’. 

8 (2) CONFORMING AMENDMENTS.—Section 

9 25D(e)(4)(A) is amended— 

10 (A) by striking ‘‘$6,667 in the case of any 

11 qualified solar electric property expenditures’’ 

12 in clause (i) and inserting ‘‘$5,000 in the case 

13 of each half kilowatt of direct current of in14 stalled capacity of qualified solar electric prop15 erty for which qualified electric solar property 

16 expenditures are made’’, 

17 (B) by striking ‘‘and’’ at the end of clause 

18 (ii), 

19 (C) by striking the period at the end of 

20 clause (iii) and inserting ‘‘, and’’, and 

21 (D) by adding at the end the following new 

22 clause: 

23 ‘‘(iv) $1,667 in the case of each half 

24 kilowatt hour of peak reduction of qualified 

25 energy storage air conditioner property (as 


pwalker on PROD1PC71 with BILLS
14 

•S 1370 IS

1 defined in section 48(d)) for which quali2 fied energy storage air conditioner expendi3 tures are made.’’. 

4 (e) DEFINITION OF QUALIFIED SOLAR HEATING AND

5 COOLING PROPERTY EXPENDITURE.— 

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

7 25D(d) is amended to read as follows: 

8 ‘‘(1) QUALIFIED SOLAR HEATING AND COOLING

9 PROPERTY EXPENDITURE.—The term ‘qualified 

10 solar heating and cooling property expenditure’ 

11 means an expenditure for property to heat or cool 

12 (or provide hot water for use in) a dwelling unit lo13 cated in the United States and used as a residence 

14 by the taxpayer if at least half of the energy used 

15 by such property for such purpose is derived from 

16 the sun. Such term shall not include an expenditure 

17 which is a qualified solar electric property expendi18 ture.’’. 

19 (2) CONFORMING AMENDMENTS.—Subsections 

20 (a)(2) and (e)(4)(A)(ii) of section 25D are each 

21 amended by striking ‘‘qualified solar water heating’’ 

22 and inserting ‘‘qualified solar heating and cooling’’ 

23 (f) DEFINITION OF QUALIFIED PHOTOVOLTAIC

24 PROPERTY EXPENDITURE.—Paragraph (2) of section 

25 25D(d) is amended by inserting ‘‘, including advanced enVerDate Aug 31 2005 22:55 May 11, 2007 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S1370.IS S1370

pwalker on PROD1PC71 with BILLS
15 

•S 1370 IS

1 ergy storage systems installed as an integrated component 

2 of the foregoing’’ after ‘‘taxpayer’’. 

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

5 (1) IN GENERAL.—Section 25D(b) is amended 

6 by adding at the end the following 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 is 

20 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 22:55 May 11, 2007 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S1370.IS S1370

pwalker on PROD1PC71 with BILLS
16 

•S 1370 IS

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) is amended by in4 serting ‘‘and section 25D’’ after ‘‘this section’’. 

5 (C) Section 24(b)(3)(B) is amended by 

6 striking ‘‘sections 23 and 25B’’ and inserting 

7 ‘‘sections 23, 25B, and 25D’’. 

8 (D) Section 26(a)(1) is amended by strik9 ing ‘‘and 25B’’ and inserting ‘‘25B, and 25D’’. 

10 (h) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to expenditures made in taxable 

12 years beginning after December 31, 2006. 

13 SEC. 5. EXTENSION AND MODIFICATION OF ENERGY CRED14 IT. 

15 (a) SOLAR PROPERTY.— 

16 (1) EXTENSION.—Paragraphs (2)(A)(i)(II) and 

17 (3)(A)(ii) of section 48(a) are each amended by 

18 striking ‘‘2009’’ and inserting ‘‘2017’’. 

19 (2) SOLAR PHOTOVOLTAIC ENERGY PROPERTY

20 CREDIT DETERMINED SOLELY BY KILOWATT CAPAC21 ITY.— 

22 (A) IN GENERAL.—Subsection (a) of sec23 tion 48 is amended by redesignating paragraph 

24 (4) as paragraph (5) and by inserting after 

25 paragraph (3) the following new paragraph: 


pwalker on PROD1PC71 with BILLS
17 

•S 1370 IS

1 ‘‘(4) SPECIAL RULE FOR ENERGY CREDIT FOR

2 SOLAR PHOTOVOLTAIC ENERGY PROPERTY.— 

3 ‘‘(A) IN GENERAL.—For purposes of sec4 tion 46, the energy credit for any taxable year 

5 for solar photovoltaic energy property described 

6 in paragraph (3)(A)(i) which is used to gen7 erate electricity and which is placed in service 

8 during the taxable year shall not exceed $1,500 

9 with respect to each half kilowatt of direct cur10 rent of installed capacity of such property. 

11 Paragraph (2)(A)(ii) shall not apply to property 

12 to which the preceding sentence applies. 

13 ‘‘(B) APPLICATION OF SPECIAL RULES FOR

14 REHABILITATED OR SUBSIDIZED PROPERTY.— 

15 Rules similar to the rules of paragraphs (2)(B) 

16 and (5) shall apply to property to which this 

17 paragraph applies.’’. 

18 (B) CONFORMING AMENDMENT.—Sub19 clause (II) of section 48(a)(2)(A)(i) is amended 

20 by striking ‘‘described in paragraph (3)(A)(i)’’ 

21 and inserting ‘‘which is described in paragraph 

22 (3)(A)(i) and to which paragraph (4) does not 

23 apply’’. 

24 (b) QUALIFIED FUEL CELL PROPERTY.— 


pwalker on PROD1PC71 with BILLS
18 

•S 1370 IS

1 (1) EXTENSION.—Subparagraph (E) of section 

2 48(c)(1) is amended by striking ‘‘2008’’ and insert3 ing ‘‘2016’’. 

4 (2) REPEAL OF LIMITATION.—Paragraph (1) of 

5 section 48(c), as amended by paragraph (1), is 

6 amended by striking subparagraph (B) and by re7 designating subparagraphs (C), (D), and (E) as sub8 paragraphs (B), (C), and (D), respectively. 

9 (c) ENERGY CREDIT ALLOWED FOR ENERGY STOR10 AGE AIR CONDITIONER PROPERTY.— 

11 (1) IN GENERAL.—Clause (i) of section 

12 48(a)(2)(A) is amended by striking ‘‘and’’ at the end 

13 of subclause (II) and by inserting after subclause 

14 (III) the following new subclause: 

15 ‘‘(IV) qualified energy storage air 

16 conditioner property, and’’. 

17 (2) QUALIFIED ENERGY STORAGE AIR CONDI18 TIONER PROPERTY.—Section 48 is amended by add19 ing at the end the following new subsection: 

20 ‘‘(d) QUALIFIED ENERGY STORAGE AIR CONDI21 TIONER PROPERTY.—For the purposes of this section— 

22 ‘‘(1) IN GENERAL.—The term ‘qualified energy 

23 storage air conditioner property’ means a cooling 

24 system consisting of components which create, store, 

25 and supply cooling energy to reduce peak electricity 


pwalker on PROD1PC71 with BILLS
19 

•S 1370 IS

1 demand by displacing the electrical demand of con2 ventional mechanical cooling equipment, and all sec3 ondary components to integrate with the conven4 tional cooling system, including equipment and con5 trols for operation and performance measuring and 

6 reporting, provided that such cooling system— 

7 ‘‘(A) has a nameplate operational capa8 bility to deliver a minimum of 36,000 Btu and 

9 maximum of 120,000 Btu of cooling capacity 

10 for a minimum continuous period of 4 hours, 

11 available daily from May 1 through September 

12 30 coincident with local utility designated peak 

13 load periods, 

14 ‘‘(B) is designed so as to reduce kilowatt 

15 demand by 90 percent for the cooling load 

16 served, and 

17 ‘‘(C) is designed so as not to exceed the 24 

18 hour energy consumption of conventional cool19 ing equipment. 

20 ‘‘(2) LIMITATION.—In the case of qualified en21 ergy storage air conditioning property placed in serv22 ice during the taxable year, the credit otherwise de23 termined under this section for such year with re24 spect to such property shall not exceed an amount 


pwalker on PROD1PC71 with BILLS
20 

•S 1370 IS

1 equal to $500 for each 0.5 kilowatt of peak reduc2 tion capacity of such property. 

3 ‘‘(3) TERMINATION.—The term ‘energy storage 

4 air conditioner property’ shall not include any prop5 erty for any period after January 1, 2016.’’. 

6 (d) REPEAL OF PUBLIC UTILITY PROPERTY EXCLU7 SION.— 

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

9 48(a) is amended by striking the first sentence 

10 which follows subparagraph (D). 

11 (2) CONFORMING AMENDMENTS.— 

12 (A) Section 48(c)(1), as amended by sub13 section (b), is amended by striking subpara14 graph (C) and by redesignating subparagraph 

15 (D) as subparagraph (C). 

16 (B) Section 48(c)(2) is amended by strik17 ing subparagraph (D) and by redesignating 

18 subparagraph (E) as subparagraph (D). 

19 (e) CREDITS ALLOWED AGAINST THE ALTERNATIVE

20 MINIMUM TAX.—Section 38(c)(4)(B) is amended by strik21 ing ‘‘and’’ at the end of clause (i), by striking the period 

22 at the end of clause (ii)(II) and inserting ‘‘, and’’, and 

23 by adding at the end the following new clause: 


pwalker on PROD1PC71 with BILLS
21 

•S 1370 IS

1 ‘‘(iii) the portion of the investment 

2 credit under section 46 which is deter3 mined under section 48(a).’’. 

4 (f) EFFECTIVE DATES.— 

5 (1) IN GENERAL.—Except as provided in para6 graph (2), the amendments made by this section 

7 shall apply to taxable years beginning after the date 

8 of the enactment of this Act. 

9 (2) REPEAL OF PUBLIC UTILITY PROPERTY EX10 CLUSION.—The amendments made by subsection (d) 

11 shall apply to periods after December 31, 2006, in 

12 taxable years ending after such date, under rules 

13 similar to the rules of section 48(m) of the Internal 

14 Revenue Code of 1986 (as in effect on the day be15 fore the date of the enactment of the Revenue Rec16 onciliation Act of 1990). 

17 SEC. 6. EXTENSION AND MODIFICATION OF NONBUSINESS 

18 ENERGY PROPERTY CREDIT. 

19 (a) IN GENERAL.—Subsection (g) of section 25C (re20 lating to termination) is amended by striking ‘‘2007’’ and 

21 inserting ‘‘2012’’. 

22 (b) LABOR COSTS FOR QUALIFIED ENERGY EFFI23 CIENCY IMPROVEMENTS.—Section 25C(c)(1) is amended 

24 by adding at the end the following new flush sentence: 


pwalker on PROD1PC71 with BILLS
22 

•S 1370 IS

1 ‘‘The amount taken into account under subsection 

2 (a)(1) with respect to qualified energy efficiency im3 provements shall include expenditures for labor costs 

4 properly allocable to the onsite preparation, assem5 bly, or original installation of any component de6 scribed in this paragraph.’’. 

7 (c) MODIFICATIONS FOR RESIDENTIAL ENERGY EF8 FICIENCY PROPERTY EXPENDITURES.— 

9 (1) INCREASED LIMITATION FOR OIL FURNACES

10 AND NATURAL GAS, PROPANE, AND OIL HOT WATER

11 BOILERS.— 

12 (A) IN GENERAL.—Subparagraphs (B) and 

13 (C) of section 25C(b)(3) are amended to read 

14 as follows: 

15 ‘‘(B) $150 for any qualified natural gas 

16 furnace or qualified propane furnace, and 

17 ‘‘(C) $300 for— 

18 ‘‘(i) any item of energy-efficient build19 ing property, and 

20 ‘‘(ii) any qualified oil furnace, quali21 fied natural gas hot water boiler, qualified 

22 propane hot water boiler, or qualified oil 

23 hot water boiler.’’. 


pwalker on PROD1PC71 with BILLS
23 

•S 1370 IS

1 (B) CONFORMING AMENDMENT.—Clause 

2 (ii) of section 25C(d)(2)(A) is amended to read 

3 as follows: 

4 ‘‘(ii) any qualified natural gas fur5 nace, qualified propane furnace, qualified 

6 oil furnace, qualified natural gas hot water 

7 boiler, qualified propane hot water boiler, 

8 or qualified oil hot water boiler, or’’. 

9 (2) MODIFICATIONS OF STANDARDS FOR EN10 ERGY-EFFICIENT BUILDING PROPERTY.— 

11 (A) ELECTRIC HEAT PUMPS.—Subpara12 graph (B) of section 25C(d)(3) is amended to 

13 read as follows: 

14 ‘‘(A) an electric heat pump which achieves 

15 the highest efficiency tier established by the 

16 Consortium for Energy Efficiency, as in effect 

17 on January 1, 2008.’’. 

18 (B) CENTRAL AIR CONDITIONERS.—Sec19 tion 25C(d)(3)(D) is amended by striking 

20 ‘‘2006’’ and inserting ‘‘2008’’. 

21 (C) WATER HEATERS.—Subparagraph (E) 

22 of section 25C(d) is amended to read as follows: 

23 ‘‘(E) a natural gas, propane, or oil water 

24 heater which has either an energy factor of at 


pwalker on PROD1PC71 with BILLS
24 

•S 1370 IS

1 least 0.80 or a thermal efficiency of at least 90 

2 percent.’’. 

3 (D) OIL FURNACES AND HOT WATER BOIL4 ERS.—Paragraph (4) of section 25C(d) is 

5 amended to read as follows: 

6 ‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND

7 OIL FURNACES AND HOT WATER BOILERS.— 

8 ‘‘(A) QUALIFIED NATURAL GAS FUR9 NACE.—The term ‘qualified natural gas fur10 nace’ means any natural gas furnace which 

11 achieves an annual fuel utilization efficiency 

12 rate of not less than 95. 

13 ‘‘(B) QUALIFIED NATURAL GAS HOT

14 WATER BOILER.—The term ‘qualified natural 

15 gas hot water boiler’ means any natural gas hot 

16 water boiler which achieves an annual fuel utili17 zation efficiency rate of not less than 90. 

18 ‘‘(C) QUALIFIED PROPANE FURNACE.— 

19 The term ‘qualified propane furnace’ means any 

20 propane furnace which achieves an annual fuel 

21 utilization efficiency rate of not less than 95. 

22 ‘‘(D) QUALIFIED PROPANE HOT WATER

23 BOILER.—The term ‘qualified propane hot 

24 water boiler’ means any propane hot water boilVerDate Aug 31 2005 22:55 May 11, 2007 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S1370.IS S1370

pwalker on PROD1PC71 with BILLS
25 

•S 1370 IS

1 er which achieves an annual fuel utilization effi2 ciency rate of not less than 90. 

3 ‘‘(E) QUALIFIED OIL FURNACES.—The 

4 term ‘qualified oil furnace’ means any oil fur5 nace which achieves an annual fuel utilization 

6 efficiency rate of not less than 90. 

7 ‘‘(F) QUALIFIED OIL HOT WATER BOIL8 ER.—The term ‘qualified oil hot water boiler’ 

9 means any oil hot water boiler which achieves 

10 an annual fuel utilization efficiency rate of not 

11 less than 90.’’. 

12 (3) ELIMINATION OF LIFETIME LIMITATION.— 

13 Paragraph (1) of section 25C(b) is amended by in14 serting ‘‘by reason of subsection (a)(1)’’ after 

15 ‘‘under this section’’. 

16 (d) MODIFICATION OF QUALIFIED ENERGY EFFI17 CIENCY IMPROVEMENTS.— 

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

19 25C(c) is amended by inserting ‘‘, or an asphalt roof 

20 with appropriate cooling granules,’’ before ‘‘which 

21 meet the Energy Star program requirements’’. 

22 (2) BUILDING ENVELOPE COMPONENT.—Sub23 paragraph (D) of section 25C(c)(2) is amended— 

24 (A) by inserting ‘‘or asphalt roof’’ after 

25 ‘‘metal roof’’, and 


pwalker on PROD1PC71 with BILLS
26 

•S 1370 IS

1 (B) by inserting ‘‘or cooling granules’’ 

2 after ‘‘pigmented coatings’’. 

3 (e) NATURAL GAS FIRED HEAT PUMPS.—Section 

4 25C(d)(3), as amended by this section, is amended by 

5 striking ‘‘and’’ at the end of subparagraph (D), by strik6 ing the period at the end of subparagraph (E) and insert7 ing ‘‘, and’’, and by adding at the end the following new 

8 subparagraph: 

9 ‘‘(F) a natural gas fired heat pump with a 

10 heating coefficient of performance (COP) of at 

11 least 1.1.’’. 

12 (f) ELIMINATION OF CREDIT FOR QUALIFIED EN13 ERGY EFFICIENCY IMPROVEMENTS IN 2010.— 

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

15 25C is amended to read as follows: 

16 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in17 dividual, there shall be allowed as a credit against the tax 

18 imposed by this chapter for the taxable year an amount 

19 equal to the amount of residential energy property expend20 itures paid or incurred by the taxpayer during the taxable 

21 year.’’. 

22 (2) CONFORMING AMENDMENTS.— 

23 (A) Section 25C(b), as amended by sub24 section (b), is amended by striking paragraphs 


pwalker on PROD1PC71 with BILLS
27 

•S 1370 IS

1 (1) and (2) and by redesignating paragraph (3) 

2 as paragraph (1). 

3 (B) Section 25C(b)(1), as redesignated by 

4 subparagraph (A), is amended by striking ‘‘by 

5 reason of subsection (a)(2)’’. 

6 (C) Section 25C is amended by striking 

7 subsection (c). 

8 (g) CLARIFICATION OF ELIGIBILITY OF STANDARDS

9 FOR QUALIFIED ENERGY PROPERTY.—Section 

10 25C(d)(2)(C) is amended by striking ‘‘and’’ at the end of 

11 clause (i), by striking the period at the end of clause (ii) 

12 and inserting ‘‘, and’’, and by adding at the end the fol13 lowing new clause: 

14 ‘‘(iii) shall allow for the testing of 

15 products regardless of the size or capacity 

16 of the product.’’. 

17 (h) EFFECTIVE DATES.— 

18 (1) IN GENERAL.—Except as provided in para19 graphs (2) and (3), the amendments made by this 

20 section shall apply to property placed in service after 

21 the date of the enactment of this Act. 

22 (2) STANDARDS FOR ELECTRIC HEAT PUMPS

23 AND CENTRAL AIR CONDITIONERS.—The amend24 ments made by subparagraphs (A) and (B) subVerDate Aug 31 2005 22:55 May 11, 2007 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S1370.IS S1370

pwalker on PROD1PC71 with BILLS
28 

•S 1370 IS

1 section (c)(2) shall apply to property placed in serv2 ice after December 31, 2007. 

3 (3) ELIMINATION OF CREDIT FOR QUALIFIED

4 ENERGY EFFICIENCY IMPROVEMENTS.—The amend5 ments made by subsection (f) shall apply to property 

6 placed in service after December 31, 2009. 

7 SEC. 7. EXTENSION OF NEW ENERGY EFFICIENT HOME 

8 CREDIT. 

9 (a) IN GENERAL.—Subsection (g) of section 45L (re10 lating to termination) is amended by striking ‘‘2008’’ and 

11 inserting ‘‘2013’’. 

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

13 subsection (a) shall apply for qualified new energy efficient 

14 homes acquired after the date of the enactment of this 

15 Act, in taxable years ending after such date. 

16 SEC. 8. EXTENSION AND MODIFICATION OF DEDUCTION 

17 FOR ENERGY EFFICIENT COMMERCIAL 

18 BUILDINGS. 

19 (a) EXTENSION.—Subsection (h) of section 179D 

20 (relating to termination) is amended to read as follows: 

21 ‘‘(h) TERMINATION.—This section shall not apply 

22 with respect to property— 

23 ‘‘(1) which is certified under subsection (d)(6) 

24 after December 31, 2012, or 


pwalker on PROD1PC71 with BILLS
29 

•S 1370 IS

1 ‘‘(2) which is placed in service after December 

2 31, 2014. 

3 A provisional certification shall be treated as meeting the 

4 requirements of paragraph (1) if it is based on the build5 ing plans, subject to inspection and testing after installa6 tion.’’. 

7 (b) INCREASE IN MAXIMUM AMOUNT OF DEDUC8 TION.— 

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

10 179D(b)(1) is amended by striking ‘‘$1.80’’ and in11 serting ‘‘$2.25’’. 

12 (2) PARTIAL ALLOWANCE.—Paragraph (1) of 

13 section 179D(d) is amended— 

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

15 ‘‘$0.75’’, and 

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

17 ‘‘$2.25’’. 

18 (c) MODIFICATIONS TO CERTAIN SPECIAL RULES.— 

19 (1) METHODS OF CALCULATING ENERGY SAV20 INGS.— 

21 (A) IN GENERAL.—Paragraph (2) of sec22 tion 179D(d) is amended— 

23 (i) by striking ‘‘based on’’ and insert24 ing ‘‘in accordance with’’, 


pwalker on PROD1PC71 with BILLS
30 

•S 1370 IS

1 (ii) by inserting ‘‘, except as necessary 

2 to carry out the requirements of this sec3 tion, to accommodate a reference to Stand4 ard 90.1–2001, to extend the applicability 

5 of such manual to national conditions, or 

6 to update technical standards based on 

7 new information’’ before the period at the 

8 end, and 

9 (iii) by adding at the end the fol10 lowing new sentence: ‘‘The calculation 

11 methods contained in such regulations 

12 shall also provide for the calculation of ap13 propriate energy savings for design meth14 ods and technologies not otherwise credited 

15 in such manual or standard, including en16 ergy savings associated with natural ven17 tilation, evaporative cooling, automatic 

18 lighting controls (such as occupancy sen19 sors, photocells, and timeclocks), 

20 daylighting, designs utilizing semi-condi21 tioned spaces which maintain adequate 

22 comfort conditions without air conditioning 

23 or without heating, improved fan system 

24 efficiency (including reductions in static 

25 pressure), advanced unloading mechanisms 


pwalker on PROD1PC71 with BILLS
31 

•S 1370 IS

1 for mechanical cooling (such as multiple or 

2 variable speed compressors), on-site gen3 eration of electricity (including combined 

4 heat and power systems, fuel cells, and re5 newable energy generation such as solar 

6 energy), and wiring with lower energy 

7 losses than wiring satisfying Standard 

8 90.1–2001 requirements for building power 

9 distribution systems.’’. 

10 (B) REQUIREMENTS FOR COMPUTER SOFT11 WARE USED IN CALCULATING ENERGY AND

12 POWER CONSUMPTION COSTS.—Paragraph 

13 (3)(B) of section 179D(d) is amended by strik14 ing ‘‘and’’ at the end of clause (ii), by striking 

15 the period at the end of clause (iii) and insert16 ing ‘‘, and’’, and by adding at the end the fol17 lowing: 

18 ‘‘(iv) which automatically— 

19 ‘‘(I) generates the features, en20 ergy use, and energy and power con21 sumption costs of a reference building 

22 which meets Standard 90.1–2001, 

23 ‘‘(II) generates the features, en24 ergy use, and energy and power con25 sumption costs of a compliant buildVerDate Aug 31 2005 22:55 May 11, 2007 Jkt 059200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S1370.IS S1370

pwalker on PROD1PC71 with BILLS
32 

•S 1370 IS

1 ing or system which reduces the an2 nual energy and power costs by 50 

3 percent compared to Standard 90.1– 

4 2001, and 

5 ‘‘(III) compares such features, 

6 energy use, and consumption costs to 

7 the features, energy use, and con8 sumption costs of the building or sys9 tem with respect to which the calcula10 tion is being made.’’. 

11 (2) TARGETS FOR PARTIAL ALLOWANCE OF

12 CREDIT.—Paragraph (1)(B) of section 179D(d) is 

13 amended— 

14 (A) by striking ‘‘The Secretary’’ and in15 serting the following: 

16 ‘‘(i) IN GENERAL.—The Secretary’’, 

17 and 

18 (B) by adding at the end the following: 

19 ‘‘(ii) ADDITIONAL REQUIREMENTS.— 

20 For purposes of clause (i)— 

21 ‘‘(I) the Secretary shall deter22 mine prescriptive criteria that can be 

23 modeled explicitly for reference build24 ings which meet the requirements of 


pwalker on PROD1PC71 with BILLS
33 

•S 1370 IS

1 subsection (c)(1)(D) for different 

2 building types and regions, 

3 ‘‘(II) a system may be certified 

4 as meeting the target under subpara5 graph (A)(ii) if the appropriate ref6 erence building either meets the re7 quirements of subsection (c)(1)(D) 

8 with such system rather than the 

9 comparable reference system (using 

10 the calculation under paragraph (2)) 

11 or meets the relevant prescriptive cri12 teria under subclause (I), and 

13 ‘‘(III) the lighting system target 

14 shall be based on lighting power den15 sity, except that it shall allow lighting 

16 controls credits that trade off for 

17 lighting power density savings based 

18 on Section 3.2.2 of the 2005 Cali19 fornia Nonresidential Alternative Cal20 culation Method Approval Manual. 

21 ‘‘(iii) PUBLICATION.—The Secretary 

22 shall publish in the Federal Register the 

23 bases for the target levels established in 

24 the regulations under clause (i).’’. 


pwalker on PROD1PC71 with BILLS
34 

•S 1370 IS

1 (d) ALTERNATIVE STANDARDS.—Section 179D(d) is 

2 amended by adding at the end the following new para3 graph: 

4 ‘‘(7) ALTERNATIVE STANDARDS PENDING

5 FINAL REGULATIONS.—Until such time as the Sec6 retary issues final regulations under paragraph 

7 (1)(B)— 

8 ‘‘(A) in the case of property which is part 

9 of a building envelope, the building envelope 

10 system target under paragraph (1)(A)(ii) shall 

11 be a 7 percent reduction in total annual energy 

12 and power costs (determined in the same man13 ner as under subsection (c)(1)(D)), and 

14 ‘‘(B) in the case of property which is part 

15 of the heating, cooling, ventilation, and hot 

16 water systems, the heating, cooling, ventilation, 

17 and hot water system shall be treated as meet18 ing the target under paragraph (1)(A)(ii) if it 

19 would meet the requirement in subsection 

20 (c)(1)(D) if combined with a building envelope 

21 system and lighting system which met their re22 spective targets under paragraph(1)(A)(ii) (in23 cluding interim targets in effect under sub24 sections (f) and subparagraph (A)).’’. 

25 (e) MODIFICATIONS TO LIGHTING STANDARDS.— 


pwalker on PROD1PC71 with BILLS
35 

•S 1370 IS

1 (1) STANDARDS TO BE ALTERNATE STAND2 ARDS.—Subsection (f) of section 179D is amended 

3 by— 

4 (A) striking ‘‘INTERIM’’ in the heading and 

5 inserting ‘‘ALTERNATIVE’’, and 

6 (B) inserting ‘‘, or, if the taxpayer elects, 

7 in lieu of the target set forth in such final regu8 lations’’ after ‘‘lighting system’’ at the end of 

9 the matter preceding paragraph (1). 

10 (2) QUALIFIED INDIVIDUALS.—Section 

11 179D(d)(6)(C) is amended by adding at the end the 

12 following: ‘‘For purposes of certification of whether 

13 the alternative target for lighting systems under 

14 subsection (f) is met, individuals qualified to deter15 mine compliance shall include individuals who are 

16 certified as Lighting Certified (LC) by the National 

17 Council on Qualifications for the Lighting Profes18 sions, Certified Energy Managers (CEM) by the As19 sociation of Energy Engineers, and LEED Accred20 ited Professionals (AP) by the U.S. Green Buildings 

21 Council.’’. 

22 (3) REQUIREMENT FOR BILEVEL SWITCHING.— 

23 Section 179D(f)(2) is amended by adding at the end 

24 the following new subparagraph: 


pwalker on PROD1PC71 with BILLS
36 

•S 1370 IS

1 ‘‘(3) APPLICATION OF SUBSECTION TO BILEVEL

2 SWITCHING.— 

3 ‘‘(A) IN GENERAL.—Notwithstanding para4 graph (2)(C)(i), this subsection shall apply to a 

5 system which does not include provisions for 

6 bilevel switching if the reduction in lighting 

7 power density is at least 37.5 percent of the 

8 minimum requirements in Table 9.3.1.1 or 

9 Table 9.3.1.2. (not including additional interior 

10 lighting allowances) of Standard 90.1–2001. 

11 ‘‘(B) REDUCTION IN DEDUCTION.—In the 

12 case of a system to which this subsection ap13 plies by reason of subparagraph (A), paragraph 

14 (2) shall be applied— 

15 ‘‘(i) by substituting ‘50 percent’ for 

16 ‘40 percent’ in subparagraph (A) thereof, 

17 and 

18 ‘‘(ii) in subparagraph (B)(ii) there19 of— 

20 ‘‘(I) by substituting ‘37.5 per21 centage points’ for ‘25 percentage 

22 points’, and 

23 ‘‘(II) by substituting ‘12.5’ for 

24 ‘15’.’’. 


pwalker on PROD1PC71 with BILLS
37 

•S 1370 IS

1 (f) PUBLIC PROPERTY.—Paragraph (4) of section 

2 179(d) is amended by striking ‘‘the Secretary shall pro3 mulgate a regulation to allow the allocation of the deduc4 tion’’ and inserting ‘‘the deduction under this section shall 

5 be allowed’’. 

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

7 this section shall apply to property placed in service in 

8 taxable years beginning after the date of the enactment 

9 of this Act. 

10 SEC. 9. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR 

11 DEPRECIATION OF QUALIFIED ENERGY MAN12 AGEMENT DEVICES. 

13 (a) IN GENERAL.—Section 168(e)(3)(B) (defining 5- 

14 year property) is amended by striking ‘‘and’’ at the end 

15 of clause (v), by striking the period at the end of clause 

16 (vi)(III) and inserting ‘‘, and’’, and by inserting after 

17 clause (vi) the following new clause: 

18 ‘‘(vii) any qualified energy manage19 ment device.’’. 

20 (b) DEFINITION OF QUALIFIED ENERGY MANAGE21 MENT DEVICE.—Section 168(i) (relating to definitions 

22 and special rules) is amended by inserting at the end the 

23 following new paragraph: 

24 ‘‘(18) QUALIFIED ENERGY MANAGEMENT DE25 VICE.— 


pwalker on PROD1PC71 with BILLS
38 

•S 1370 IS

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

2 energy management device’ means any energy 

3 management device which is placed in service 

4 before January 1, 2012, by a taxpayer who is 

5 a supplier of electric energy or a provider of 

6 electric energy services. 

7 ‘‘(B) ENERGY MANAGEMENT DEVICE.— 

8 For purposes of subparagraph (A), the term 

9 ‘energy management device’ means any two-way 

10 communications network and associated equip11 ment, including equipment installed on the 

12 premises of a consumer, which is used by the 

13 taxpayer— 

14 ‘‘(i) to measure and record electricity 

15 usage data on a time-differentiated basis 

16 of at least 10 minutes, and 

17 ‘‘(ii) to provide such data on demand 

18 to both consumers and the taxpayer.’’. 

Æ 


pwalker on PROD1PC71 with BILLS