‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this part (other than under this section 
and subpart C thereof, relating to refundable 
credits) and section 1397E. 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) exceeds the 
limitation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year. 
‘‘(f) SPECIAL RULES.—For purposes of this section: 
‘‘(1) TENANT-STOCKHOLDER IN COOPERATIVE 
HOUSING CORPORATION.—In the case of an indi-
vidual who is a tenant-stockholder (as defined in sec-
tion 216(b)(2)) in a cooperative housing corporation 
(as defined in section 216(b)(1)), such individual 
shall be treated as having paid his tenant-stock-
holder’s proportionate share (as defined in section 
216(b)(3)) of any expenditures paid or incurred for 
qualified wind energy property by such corporation, 
and such credit shall be allocated appropriately to 
such individual. 
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‘‘(2) CONDOMINIUMS.— 
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who is a member of a condominium man-
agement association with respect to a condo-
minium which he owns, such individual shall be 
treated as having paid his proportionate share 
of expenditures paid or incurred for qualified 
wind energy property by such association, and 
such credit shall be allocated appropriately to 
such individual. 
‘‘(B) CONDOMINIUM
MANAGEMENT
ASSO-
CIATION.—For purposes of this paragraph, the 
term condominium management association 
means an organization which meets the require-
ments of section 528(c)(2) with respect to a 
condominium project of which substantially all 
of the units are used by individuals as resi-
dences. 
‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section for any ex-
penditure with respect to a residence or other property, 
the basis of such residence or other property shall be re-
duced by the amount of the credit so allowed. 
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‘‘(h) APPLICATION OF CREDIT.—The credit allowed 
under this section shall apply to property placed in service 
or installed after December 31, 2005.’’. 
(b) CONFORMING AMENDMENT.—Subsection (a) of 
section 1016 of such Code (relating to general rule for 
adjustments to basis) is amended by striking ‘‘and’’ at the 
end of paragraph (36), by striking the period at the end 
of paragraph (37) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(38) in the case of a residence or other prop-
erty with respect to which a credit was allowed 
under section 30D, to the extent provided in section 
30D(g).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 30C the following new item: 
‘‘Sec. 30D. Wind energy property.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2005. 
SEC. 11. GEOTHERMAL RESEARCH. 
There are authorized to be appropriated to the Sec-
retary of Energy $32,500,000 for geothermal research. 
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SEC. 12. RENEWABLE PORTFOLIO STANDARD. 
Title VI of the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. 2601 et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD. 
‘‘(a) RENEWABLE ENERGY REQUIREMENT.— 
‘‘(1) IN GENERAL.—Each electric utility that 
sells electricity to electric consumers shall obtain a 
percentage of the base amount of electricity it sells 
to electric consumers in any calendar year from new 
renewable energy or existing renewable energy. The 
percentage obtained in a calendar year shall not be 
less than the amount specified in the following table: 
‘‘Calendar year: 
Minimum annual 
percentage: 
2007 through 2008 ..................................................................
5.0
2009 through 2010 ..................................................................
8.0
2011 through 2012 ..................................................................
11.0
2013 through 2014 ..................................................................
15.0
2015 and thereafter .................................................................
20.0. 
‘‘(2) MEANS OF COMPLIANCE.—An electric util-
ity shall meet the requirements of paragraph (1) 
by— 
‘‘(A) generating electric energy using new 
renewable energy or existing renewable energy; 
‘‘(B) purchasing electric energy generated 
by new renewable energy or existing renewable 
energy; 
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‘‘(C) purchasing renewable energy credits 
issued under subsection (b); or 
‘‘(D) a combination of the foregoing. 
‘‘(b) RENEWABLE ENERGY CREDIT TRADING PRO-
GRAM.—Not later than January 1, 2007, the Secretary 
shall establish a renewable energy credit trading program 
to permit an electric utility that does not generate or pur-
chase enough electric energy from renewable energy to 
meet its obligations under subsection (a)(1) to satisfy such 
requirements by purchasing sufficient renewable energy 
credits. 
‘‘(c) ENFORCEMENT.— 
‘‘(1) CIVIL
PENALTIES.—Any electric utility 
that fails to meet the renewable energy requirements 
of subsection (a) shall be subject to a civil penalty. 
‘‘(2) AMOUNT OF PENALTY.—The amount of 
the civil penalty shall be determined by multiplying 
the number of kilowatt-hours of electric energy sold 
to electric consumers in violation of subsection (a) 
by the greater of 1.5 cents (adjusted for inflation 
under subsection (f)) or 200 percent of the average 
market value of renewable energy credits during the 
year in which the violation occurred. 
‘‘(3) MITIGATION OR WAIVER.—The Secretary 
may mitigate or waive a civil penalty under this sub-
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section if the electric utility was unable to comply 
with subsection (a) for reasons outside of the rea-
sonable control of the utility. The Secretary shall re-
duce the amount of any penalty determined under 
paragraph (2) by an amount paid by the electric 
utility to a State for failure to comply with the re-
quirement of a State renewable energy program if 
the State requirement is greater than the applicable 
requirement of subsection (a). 
‘‘(4) PROCEDURE FOR ASSESSING PENALTY.— 
The Secretary shall assess a civil penalty under this 
subsection in accordance with the procedures pre-
scribed by section 333(d) of the Energy Policy and 
Conservation Act (42 U.S.C. 6303(d)). 
‘‘(d) RULES.—The Secretary shall issue rules imple-
menting this section not later than 1 year after the date 
of enactment of this section. 
‘‘(e) EXEMPTIONS.—This section shall not apply in 
any calendar year to an electric utility— 
‘‘(1) that sold less than 4,000,000 megawatt- 
hours of electric energy to electric consumers during 
the preceding calendar year; or 
‘‘(2) in Hawaii. 
‘‘(f) INFLATION ADJUSTMENT.—Not later than De-
cember 31 of each year beginning in 2008, the Secretary 
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