and Conservation Act as, added by subsection (a) of 
this section. 
(d) INDUSTRIAL EQUIPMENT REQUIREMENT.—Sec-
tion 342 of the Energy Policy and Conservation Act (42 
U.S.C. 6313) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(f) STANDBY POWER.— 
‘‘(1) REQUIREMENT.—Except as provided in 
paragraph (2), any final rule adopted after July 1, 
2012, to set a new or revised energy efficiency 
standard for covered equipment shall specify that 
covered equipment manufactured on or after the ef-
fective date of such new or revised standard shall, 
when in standby mode, operate with not more than 
1 watt of electric power. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) EXTENSIONS.—The Secretary may 
provide a single extension of up to 5 years for 
compliance with paragraph (1) with respect to 
a covered equipment if the Secretary finds that 
such extension is appropriate. 
‘‘(B) EXEMPTIONS.—The Secretary may 
provide an exemption from the requirement 
under paragraph (1) for covered equipment, 
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after public notice and opportunity for com-
ment, if the Secretary finds that— 
‘‘(i) achieving the requirement is not 
technologically feasible and economically 
justified for that covered equipment; or 
‘‘(ii) such an exemption is warranted 
for medical or military reasons. 
Any exemption provided under this subpara-
graph shall be reviewed at least once every 5 
years.’’. 
(e) INDUSTRIAL EQUIPMENT TEST PROCEDURES.— 
Section 343(a) of the Energy Policy and Conservation Act 
(42 U.S.C. 6314(a)) is amended by adding at the end the 
following new paragraph: 
‘‘(9) Not later than July 1, 2009, the Secretary shall 
issue a final rule establishing test procedures for standby 
power consumption for all covered equipment, except for 
equipment for which the current test procedure already 
measures standby power consumption.’’. 
SEC. 222. ENERGY STAR CERTIFICATION FOR SOLAR 
WATER HEATERS AND TANKLESS WATER 
HEATERS. 
Not later than January 1, 2009, the Secretary of En-
ergy, in consultation with the Administrator of the Envi-
ronmental Protection Agency, shall adopt regulations es-
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tablishing Energy Star Program requirements and an En-
ergy Star rating program for commercial and residential 
solar water heating devices and tankless water heating de-
vices. 
Subtitle C—Tax Provision 
SEC. 231. ENERGY CREDIT FOR COMBINED HEAT AND 
POWER SYSTEM PROPERTY. 
(a) IN GENERAL.—Section 48(a)(3)(A) of the Inter-
nal Revenue Code of 1986 (defining energy property) is 
by striking ‘‘or’’ at the end of clause (iii), by inserting 
‘‘or’’ at the end of clause (iv), and by adding at the end 
the following new clause: 
‘‘(v) combined heat and power system 
property,’’. 
(b) COMBINED HEAT AND POWER SYSTEM PROP-
ERTY.—Section 48 of such Code (relating to energy cred-
it) is amended by adding at the end the following new sub-
section: 
‘‘(d) COMBINED HEAT AND POWER SYSTEM PROP-
ERTY.—For purposes of subsection (a)— 
‘‘(1) COMBINED
HEAT
AND
POWER
SYSTEM 
PROPERTY.—The term ‘combined heat and power 
system property’ means property comprising a sys-
tem— 
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‘‘(A) which uses the same energy source 
for the simultaneous or sequential generation of 
electrical power, mechanical shaft power, or 
both, in combination with the generation of 
steam or other forms of useful thermal energy 
(including heating and cooling applications), 
‘‘(B) which has an electrical capacity of 
not more than 50 megawatts or a mechanical 
energy capacity of not more than 67,000 horse-
power or an equivalent combination of electrical 
and mechanical energy capacities, 
‘‘(C) which produces— 
‘‘(i) at least 20 percent of its total 
useful energy in the form of thermal en-
ergy which is not used to produce electrical 
or mechanical power (or combination 
thereof), and 
‘‘(ii) at least 20 percent of its total 
useful energy in the form of electrical or 
mechanical power (or combination thereof), 
‘‘(D) the energy efficiency percentage of 
which exceeds 60 percent, and 
‘‘(E) which is placed in service before Jan-
uary 1, 2011. 
‘‘(2) SPECIAL RULES.— 
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‘‘(A) 
ENERGY
EFFICIENCY
PERCENT-
AGE.—For purposes of this subsection, the en-
ergy efficiency percentage of a system is the 
fraction— 
‘‘(i) the numerator of which is the 
total useful electrical, thermal, and me-
chanical power produced by the system at 
normal operating rates, and expected to be 
consumed in its normal application, and 
‘‘(ii) the denominator of which is the 
higher heating value of the primary fuel 
sources for the system. 
‘‘(B) DETERMINATIONS
MADE
ON
BTU 
BASIS.—The energy efficiency percentage and 
the percentages under paragraph (1)(C) shall 
be determined on a Btu basis. 
‘‘(C) INPUT AND OUTPUT PROPERTY NOT 
INCLUDED.—The term ‘combined heat and 
power system property’ does not include prop-
erty used to transport the energy source to the 
facility or to distribute energy produced by the 
facility. 
‘‘(D) 
CERTAIN
EXCEPTION
NOT
TO 
APPLY.—The first sentence of the matter in 
subsection (a)(3) which follows subparagraph 
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(D) thereof shall not apply to combined heat 
and power system property. 
‘‘(3) SYSTEMS USING BAGASSE.—If a system is 
designed to use bagasse for at least 90 percent of 
the energy source— 
‘‘(A) paragraph (1)(D) shall not apply, but 
‘‘(B) the amount of credit determined 
under subsection (a) with respect to such sys-
tem shall not exceed the amount which bears 
the same ratio to such amount of credit (deter-
mined without regard to this subparagraph) as 
the energy efficiency percentage of such system 
bears to 60 percent. 
‘‘(4) NONAPPLICATION OF CERTAIN RULES.— 
For purposes of determining if the term ‘combined 
heat and power system property’ includes tech-
nologies which generate electricity or mechanical 
power using back-pressure steam turbines in place of 
existing pressure-reducing valves or which make use 
of waste heat from industrial processes such as by 
using organic rankine, stirling, or kalina heat engine 
systems, paragraph (1) shall be applied without re-
gard to subparagraphs (C) and (D) thereof .’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
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2007, in taxable years ending after such date, under rules 
similar to the rules of section 48(m) of the Internal Rev-
enue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 
1990). 
TITLE III—TRANSPORTATION 
SECTOR 
SEC. 301. PERFORMANCE GOALS. 
Congress finds this title will: 
(1) Reduce greenhouse gas emissions from the 
use of motor vehicles by 22 percent below currently 
projected levels. 
(2) Prevent 662 million metric tons of carbon 
dioxide from being produced, which is the equivalent 
of taking 96 million of today’s automobiles off the 
road in one year. 
(3) Reduce United States oil consumption by 
3.6 million barrels of oil per day. 
Subtitle A—Plug-in Hybrid Electric 
Vehicles 
SEC. 311. SHORT TITLE. 
This subtitle may be cited as the ‘‘Get Real Incentives 
to Drive Plug-in Act’’. 
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SEC. 312. DEFINITION. 
For purposes of this subtitle, the term ‘‘plug-in hy-
brid electric vehicle’’ means an on-road or nonroad vehicle 
that is propelled by an internal combustion engine or heat 
engine using— 
(1) any combustible fuel; 
(2) an on-board, rechargeable storage device; 
(3) a means of using an off-board source of 
electricity; and 
(4) fuel cell technology. 
SEC. 313. RESEARCH AND DEVELOPMENT GRANTS. 
(a) IN GENERAL.—The Secretary of Transportation 
shall establish a program to make grants to owners of do-
mestic motor vehicle manufacturing or production facili-
ties for research, development, and demonstration on plug- 
in hybrid electric vehicles. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of 
Transportation for carrying out this section $500,000,000 
for the period encompassing fiscal years 2008 through 
2012. 
SEC. 314. PILOT PROJECT. 
The Secretary of Transportation shall establish a 
pilot project to determine how best to integrate plug-in 
hybrid electric vehicles into the electric power grid and 
into the overall transportation infrastructure. 
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SEC. 315. TEST SITE. 
The Secretary of Transportation shall establish a test 
site for the advancement of battery technologies for plug- 
in hybrid electric vehicles, to be modeled after the Depart-
ment of Transportation’s NHTSA Vehicle Research and 
Test Center in Ohio. 
SEC. 316. PLAN. 
Not later than 2 years after the date of enactment 
of this subtitle, the Secretary of Transportation, in col-
laboration with the Secretary of Energy, shall transmit to 
Congress a plan for the introduction and implementation 
of a plug-in hybrid electric vehicle support infrastructure. 
SEC. 317. PLUG-IN HYBRID MOTOR VEHICLE TAX CREDIT. 
(a) IN GENERAL.—Section 30B of the Internal Rev-
enue Code of 1986 is amended by redesignating sub-
sections (i) and (j) as subsections (j) and (k), respectively, 
and by inserting after subsection (h) the following new 
subsection: 
‘‘(i) NEW PLUG-IN HYBRID MOTOR VEHICLE CRED-
IT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the new plug-in hybrid motor vehicle credit de-
termined under this subsection with respect to a new 
qualified plug-in hybrid motor vehicle placed in serv-
ice by the taxpayer during the taxable year is 
$2,500, if such vehicle is a new qualified plug-in hy-
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