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of Sciences under which the National Academy of Sciences 
shall conduct a study to define and evaluate the health, en-
vironmental, security, and infrastructure external costs and 
benefits associated with the production and consumption of 
energy that are not or may not be fully incorporated into 
the market price of such energy, or into the Federal tax 
or fee or other applicable revenue measure related to such 
production or consumption. 
(b) REPORT.—Not later than 2 years after the date 
on which the agreement under subsection (a) is entered into, 
the National Academy of Sciences shall submit to Congress 
a report on the study conducted under subsection (a). 
SEC. 1552. INCOME TAX EXCLUSION FOR CERTAIN FUEL 
COSTS OF RURAL CARPOOLS. 
(a) IN GENERAL.—Section 132(f)(1) of the Internal 
Revenue Code of 1986 (defining qualified transportation 
fringe) is amended by adding at the end the following new 
subparagraph: 
‘‘(D) Fuel expenses for a highway vehicle of 
any employee who meets the rural carpool re-
quirements of paragraph (8).’’. 
(b) LIMITATION ON EXCLUSION.—Section 132(f)(2) of 
such Code (relating to limitation on exclusion) is amended 
by striking ‘‘and’’ at the end of subparagraph (A), by strik-
ing the period at the end of subparagraph (B) and inserting
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‘‘, and’’, and by adding at the end the following new sub-
paragraph: 
‘‘(C) $50 per month in the case of the ben-
efit described in subparagraph (D).’’. 
(c) RURAL CARPOOL REQUIREMENTS.—Section 132(f) 
of such Code is amended by adding at the end the following 
new paragraph: 
‘‘(8) REQUIREMENTS FOR EMPLOYEES PARTICI-
PATING IN RURAL CARPOOLS.— 
‘‘(A) IN
GENERAL.—The requirements of 
this paragraph are met if an employee— 
‘‘(i) is an employee of an employer de-
scribed in subparagraph (B), 
‘‘(ii) certifies to such employer that— 
‘‘(I) such employee resides in a 
rural area (as defined by the Bureau of 
the Census), 
‘‘(II) such employee is not eligible 
to claim any qualified transportation 
fringe described in subparagraph (A) 
or (B) of paragraph (1) if provided by 
such employer, 
‘‘(III) such employee uses the em-
ployee’s highway vehicle when trav-
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eling between the employee’s residence 
and place of employment, and 
‘‘(IV) for at least 75 percent of the 
total mileage of such travel, the em-
ployee is accompanied by 1 or more 
employees of such employer, and 
‘‘(iii) agrees to notify such employer 
when any subclause of clause (ii) no longer 
applies. 
‘‘(B) EMPLOYER DESCRIBED.—An employer 
is described in this subparagraph if the business 
premises of such employer which serve as the 
place of employment of the employee are located 
in an area which is not accessible by a transit 
system designed primarily to provide daily work 
trips within a local commuting area.’’. 
(d) NO EXCLUSION FOR EMPLOYMENT TAXES.—Sec-
tion 3121(a)(20) of such Code (defining wages) is amended 
by inserting ‘‘(except by reason of subsection (f)(1)(D) there-
of)’’ after ‘‘or 132’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to expenses incurred on and after the 
date of the enactment of this Act and before January 1, 
2007.
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SEC. 1553. 3-YEAR APPLICABLE RECOVERY PERIOD FOR DE-
PRECIATION OF QUALIFIED ENERGY MAN-
AGEMENT DEVICES. 
(a) IN GENERAL.—Section 168(e)(3)(A) (defining 3- 
year property) is amended by striking ‘‘and’’ at the end 
of clause (ii), by striking the period at the end of clause 
(iii) and inserting ‘‘, and’’, and by adding at the end the 
following new clause: 
‘‘(iv) any qualified energy manage-
ment device.’’. 
(b) DEFINITION OF QUALIFIED ENERGY MANAGEMENT 
DEVICE.—Section 168(i) (relating to definitions and spe-
cial rules), as amended by this Act, is amended by inserting 
at the end the following new paragraph: 
‘‘(18) QUALIFIED
ENERGY
MANAGEMENT
DE-
VICE.— 
‘‘(A) IN GENERAL.—The term ‘qualified en-
ergy management device’ means any energy 
management device— 
‘‘(1) which is placed in service before January 1, 
2008, by a taxpayer who is a supplier of electric en-
ergy or a provider of electric energy services, 
‘‘(2) the original use of which commences with 
the taxpayer, and 
‘‘(3) the purchase of which is subject to a bind-
ing contract entered into after June 23, 2005, but
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only if there was no written binding contract entered 
into on or before such date. 
‘‘(B) ENERGY MANAGEMENT DEVICE.—For 
purposes of subparagraph (A), the term ‘energy 
management device’ means any meter or meter-
ing device which is used by the taxpayer— 
‘‘(i) to measure and record electricity 
usage data on a time-differentiated basis in 
at least 4 separate time segments per day, 
and 
‘‘(ii) to provide such data on at least 
a monthly basis to both consumers and the 
taxpayer.’’. 
(c) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) is amended by inserting after the item 
relating to subparagraph (A)(iii) the following: 
‘‘(A)(iv) ..............................................................................................................
20’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after De-
cember 31, 2005, in taxable years ending after such date. 
SEC. 1554. EXCEPTION FROM VOLUME CAP FOR CERTAIN 
COOLING FACILITIES. 
(a) IN GENERAL.—Section 146 (relating to volume 
cap) is amended by redesignating subsections (i) through 
(n) as subsections (j) through (o), respectively, and by in-
serting after subsection (h) the following: