I 

110TH CONGRESS 

1ST SESSION H. R. 1451 

To provide incentives to reduce dependence on foreign oil. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 9, 2007 

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

and Means, and in addition to the Committees on Science and Technology and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To provide incentives to reduce dependence on foreign oil. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘New Options Petro5 leum Energy Conservation Act of 2007’’. 

6 SEC. 2. CLIMATE NEUTRAL COMBUSTION CREDIT. 

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

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

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


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

2 new paragraph: 

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

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

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

6 for computing investment credit) is amended by inserting 

7 after section 48B the following new section: 

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

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

10 climate neutral combustion credit for any taxable year is 

11 an amount equal to 20 percent of the qualified investment 

12 for such taxable year. 

13 ‘‘(b) QUALIFIED INVESTMENT.— 

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

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

16 the basis of any property placed in service by the 

17 taxpayer during such taxable year which is part of 

18 a climate neutral combustion facility— 

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

20 erection of which is completed by the taxpayer, 

21 or 

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

23 the original use of such property commences 

24 with the taxpayer, and 


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

2 amortization in lieu of depreciation) is allow3 able. 

4 ‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED

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

6 apply for purposes of this section. 

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

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

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

11 Revenue Reconciliation Act of 1990) shall apply for 

12 purposes of this section. 

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

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

15 combustion facility’ means any facility which— 

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

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

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

22 form fine particulate, smog, or acid rain. 

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

24 not be allowed under this section for any qualified investVerDate Aug 31 2005 23:16 Mar 10, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1451.IH H1451

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

2 48B.’’. 

3 (c) CONFORMING AMENDMENTS.— 

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

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

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

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

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

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

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

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

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

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

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

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

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

21 the Revenue Reconciliation Act of 1990). 

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

24 (a) IN GENERAL.—Paragraph (2)(A)(i)(II) and para25 graph (3)(A)(ii) of section 48(a) of the Internal Revenue 


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1 Code of 1986 (relating to energy credit) are each amended 

2 by striking ‘‘2009’’ and inserting ‘‘2013’’. 

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

4 this section shall apply to periods after December 31, 

5 2008, in taxable years ending after such date, under rules 

6 similar to the rules of section 48(m) of the Internal Rev7 enue Code of 1986 (as in effect on the day before the date 

8 of the enactment of the Revenue Reconciliation Act of 

9 1990). 

10 SEC. 4. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY 

11 EFFICIENT PROPERTY. 

12 (a) IN GENERAL.—Subsection (g) of section 25D of 

13 the Internal Revenue Code of 1986 is amended by striking 

14 ‘‘2008’’ and inserting ‘‘2012’’. 

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

16 this section shall apply to property placed in service after 

17 December 31, 2008. 

18 SEC. 5. PRIZE PROGRAM. 

19 The Secretary of Energy shall establish a program 

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

21 first automobile manufacturer incorporated in the United 

22 States to manufacture and sell in the United States 

23 60,000 midsized sedan automobiles which operate on gaso24 line and can travel 100 miles per gallon. 


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1 SEC. 6. LITHIUM ION BATTERY TECHNOLOGY. 

2 There are authorized to be appropriated to the Sec3 retary of Energy $30,000,000 for fiscal year 2007 for the 

4 development of advanced lithium ion battery technology. 

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

6 OF ETHANOL, METHANOL, AND BIODIESEL. 

7 (a) IN GENERAL.—Part VI of subchapter B of chap8 ter 1 of the Internal Revenue Code of 1986 (relating to 

9 itemized deductions for individuals and corporations) is 

10 amended by inserting after section 179E the following new 

11 section: 

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

13 USED IN REFINING ETHANOL, METHANOL, 

14 AND BIODIESEL. 

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

16 cost of any qualified biofuel property as an expense which 

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

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

19 which the property is placed in service. 

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

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

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

23 Such election shall be made in such manner as the Sec24 retary may by regulations prescribe. Any election made 

25 under this section may not be revoked except with the con26 sent of the Secretary. 


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

2 of this section— 

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

4 property’ means any property— 

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

6 and 

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

8 with the taxpayer. 

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

10 qualified methanol or ethanol fuel (as defined in sec11 tion 4041(b)(2)(B)) and biodiesel (as defined in sec12 tion 40A(d)). 

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

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

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

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

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

18 property as such other uses bears to all uses of such prop19 erty. 

20 ‘‘(e) COORDINATION WITH 50 PERCENT EXPENSING

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

22 property taken into account under subsection (a). 

23 ‘‘(f) RECAPTURE.—Rules similar to the rules of sec24 tion 179(d)(10) shall apply with respect to any property 

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


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1 (b) CONFORMING AMENDMENTS.— 

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

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

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

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

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

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

8 and inserting ‘‘, or’’, and by inserting after subpara9 graph (L) the following new subparagraph: 

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

11 allowed under section 179F.’’. 

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

13 amended by striking ‘‘or 179E’’ each place it ap14 pears in the heading and text and inserting ‘‘179E, 

15 or 179F’’. 

16 (4) The table of sections for part VI of sub17 chapter B of chapter 1 of such Code is amended by 

18 inserting after the item relating to section 179E the 

19 following new item: 

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

methanol, and biodiesel.’’. 

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

21 this section shall apply to property placed in service after 

22 the date of the enactment of this Act. 

Æ 


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