TITLE VIII—TAX OFFSETS 
Sec. 801. References. 
Subtitle A—Budget neutrality 
Sec. 811. Tax reductions limited to revenue raised by tax offsets. 
Subtitle B—Denial of treaty benefits 
Sec. 821. Denial of treaty benefits for certain deductible payments. 
Subtitle C—Abusive tax shelter shutdown and taxpayer accountability 
Sec. 831. Findings and purpose. 
Sec. 832. Clarification of economic substance doctrine. 
Sec. 833. Penalty for understatements attributable to transactions lacking eco-
nomic substance, etc. 
Sec. 834. Understatement of taxpayer’s liability by income tax return preparer. 
Sec. 835. Frivolous tax submissions. 
Sec. 836. Expanded authority to disallow tax benefits under section 269.
TITLE I—FINDINGS AND 
PERFORMANCE GOALS 
SEC. 101. FINDINGS. 
(a) FINDINGS.—The Congress finds the following: 
(1) The United States imports over half the oil 
it consumes and consumes about one fourth of the 
world’s daily oil production. 
(2) According to present trends, the United 
States reliance on foreign oil will increase to 68 per-
cent of total consumption by 2025. 
(3) Having only 3 percent of the world’s known 
oil reserves, the health of the United States economy 
is dependent on world oil prices. 
(4) World oil prices are overwhelmingly dictated 
by countries other than the United States, particu-
larly by the member countries of the Organization of 
Petroleum Exporting Countries. 
(5) A major portion of the world’s oil supply is 
controlled by unstable governments and countries 
that are known to finance, harbor, or otherwise sup-
port terrorists and terrorist activities. 
(6) Since World War II, the United States has 
made significant expenditures of American taxpayer 
dollars in attempts to stabilize governments and pro-
tect American interests in the Middle East. 
(7) Countries such as Japan, Germany, Den-
mark, and Great Britain lead the United States in 
manufacturing alternative energy technologies that 
both decrease reliance on fossil fuels and do not con-
tribute to global warming. 
(8) The United States has led the world in the 
development of a wide array of technological ad-
vances and is now poised to lead the world, using its 
unique national genius for innovation, in the devel-
opment of a host of new energy technologies. 
(9) Development of renewable energy resources 
in the United States offers a substantial opportunity 
for economic development in rural, agriculture-de-
pendent areas.
(10) A bold new national energy plan can lead 
to a surge of investment in, development of, and de-
ployment of clean energy and energy efficient tech-
nologies that would result in the creation of millions 
of highly trained manufacturing and technical jobs 
throughout the American economy. 
(11) Innovative uses of tax incentives to encour-
age the manufacturing of new clean energy tech-
nologies in the United States will help create Amer-
ican jobs, decrease America’s dependence on foreign 
oil, and address pressing environmental concerns, 
and are preferable to large tax breaks for the 
wealthiest in society. 
(12) Human activities have caused rapid in-
creases in atmospheric concentrations of carbon di-
oxide and other greenhouse gases in the last century. 
(13) According to the Intergovernmental Panel 
on Climate Change and the National Research 
Council—
(A) the Earth has warmed in the last cen-
tury; and 
(B) the majority of the observed warming 
is attributable to human activities, including 
fossil fuel-generated carbon dioxide emissions.
(14) Despite the fact that many uncertainties 
in climate science remain, the potential impacts from 
human-induced climate change pose a substantial 
risk that should be managed in a responsible man-
ner. 
(15) The United States has ratified the 
UNFCCC (United Nations Framework Convention 
on Climate Change), which states, in part, ‘‘the Par-
ties to the Convention are to implement policies with 
the aim of returning to their 1990 levels anthropo-
genic emissions of carbon dioxide and other green-
house gases’’. 
(16) Global warming poses a significant threat 
to national security, the American economy, public 
health and welfare, and the global environment. Ac-
cording to a report commissioned by the Department 
of Defense in 2003 entitled ‘‘An Abrupt Climate 
Change Scenario and its Implications for United 
States National Security’’, the risk of abrupt climate 
change due to global warming should be elevated be-
yond a scientific debate to a US national security 
concern. 
SEC. 102. PERFORMANCE GOALS. 
(a) NEW
APOLLO
ENERGY
ACT
PERFORMANCE 
GOALS.—In order to ensure that the national energy pol-
icy of the United States is the most effective policy for 
protecting national and homeland security, expanding our 
economy and creating jobs, addressing global warming and 
environmental health concerns, and protecting the inter-
ests of American consumers, Congress establishes the New 
Apollo Energy Act Performance Goals, which the Presi-
dent shall consider when formulating and enforcing na-
tional energy policy. These goals are to—
(1) reduce demand for oil in the United States 
by at least 600,000 barrels per day from the de-
mand for oil projected by the Energy Information 
Administration for 2010, 1,700,000 barrels per day 
from projected demand for oil in 2015, and 
3,000,000 barrels per day from projected demand 
for oil in 2020; 
(2) create and retain 3,000,000 new highly 
skilled, high-waged jobs in the United States by 
2015; 
(3) meet 15 percent of the country’s electricity 
needs from electricity generated from renewable re-
sources by 2015, and 5 percent of the country’s elec-
tricity needs from electricity generated from carbon-
based zero emission carbon dioxide sources by 2015; 
(4) produce 8,100,000,000 gallons per year of 
renewable fuels, including traditional ethanol, cel-
lulose ethanol, and biodiesel by 2013 without cre-
ating regional cost disparities for fuel; 
(5) lower energy costs for consumers by meet-
ing 25 percent of energy supply needs, as projected 
for the year 2013 by the Energy Information Ad-
ministration, through increased conservation and im-
proved energy efficiency; 
(6) maximize long-term production of existing 
domestic marginal and stripper oil reserves; 
(7) encourage stable energy prices and markets 
by promoting energy production and energy infra-
structure modernization, while maintaining existing 
environmental protections; 
(8) reduce total carbon dioxide emissions in the 
United States to 5,806,100,000 metric tons per year 
by 2015; 
(9) encourage domestic manufacturing and pro-
duction of new energy and energy efficient tech-
nologies; 
(10) redevelop and enhance existing industrial 
facilities in areas of the country adversely impacted 
by manufacturing job losses; and 
(11) promote rural economic development.
TITLE II—FEDERAL RESEARCH 
AND 
DEVELOPMENT 
PART-
NERSHIPS 
WITH 
INDUSTRY 
FOR NEW TECHNOLOGY 
Subtitle A—General Provisions 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated for carrying 
out this title $36,000,000,000. 
SEC. 202. PARTICIPATION. 
The Secretary of Energy, in collaboration with the 
Secretary of Commerce, shall coordinate the participation 
of National Laboratories, universities, commercial indus-
try, and other organizations in carrying out this title. 
SEC. 203. COST SHARING. 
(a) IN GENERAL.—Unless otherwise specified, the 
Secretary shall require a commitment from non-Federal 
sources of at least 20 percent of the cost of proposed re-
search and development projects under this title. 
(b) REDUCTION OR ELIMINATION.—The Secretary 
may reduce or eliminate the cost sharing requirement 
under subsection (a)—
(1) if the Secretary determines that the re-
search and development is of a basic or fundamental 
nature; or
(2) for technical analyses, outreach activities, 
and educational programs that the Secretary does 
not expect to result in a marketable product. 
SEC. 204. EDUCATION AND OUTREACH. 
(a) PROGRAM.—The Secretary of Energy shall estab-
lish a program of education and outreach, including inno-
vative education and outreach techniques, on renewable 
energy and energy efficiency technologies to manufactur-
ers, consumers, engineers, architects, builders, energy 
service companies, universities, facility planners and man-
agers, State and local governments, and other appropriate 
entities. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy for carrying out this section $100,000,000 for each 
of the fiscal years 2006 through 2009, and such sums as 
may be necessary for each of the fiscal years 2010 through 
2022. 
SEC. 205. DEFINITION. 
For purposes of this title, the term ‘‘National Lab-
oratory’’ means any of the following laboratories owned 
by the Department of Energy: 
(1) Ames National Laboratory. 
(2) Argonne National Laboratory. 
(3) Brookhaven National Laboratory.
(4) Fermi National Laboratory. 
(5) Idaho National Engineering and Environ-
mental Laboratory. 
(6) Lawrence Berkeley National Laboratory. 
(7) Lawrence Livermore National Laboratory. 
(8) Los Alamos National Laboratory. 
(9) National Energy Technology Laboratory. 
(10) National Renewable Energy Laboratory. 
(11) Oak Ridge National Laboratory. 
(12) Pacific Northwest National Laboratory. 
(13) Princeton Plasma Physics Laboratory. 
(14) Sandia National Laboratories. 
(15) Savannah River National Laboratory. 
(16) Stanford Linear Accelerator Center. 
(17) Thomas Jefferson National Accelerator 
Facility. 
Subtitle B—Clean Energy 
Technology Research Program 
SEC. 211. DEFINITIONS. 
For purposes of this subtitle—
(1) the term ‘‘biomass’’ means any organic 
matter that is available on a renewable or recurring 
basis, including agricultural crops and trees, wood 
and wood wastes and residues, plants (including
aquatic plants), grasses, residues, fibers, animal 
wastes, and municipal wastes; 
(2) the term ‘‘clean energy source’’ means—
(A) wind; 
(B) biomass; 
(C) a geothermal source; 
(D) ocean waves; 
(E) a solar source; 
(F) a photovoltaic source; 
(G) additional hydroelectric generation ca-
pacity achieved from increased efficiency at an 
existing hydroelectric dam; or 
(H) minimal emission coal; and 
(3) the term ‘‘minimal emission coal’’ means 
coal resources that result in zero or near zero emis-
sions of sulfur dioxide, nitrogen oxides, and mercury, 
and 90 percent or more sequestration of carbon di-
oxide emissions. 
SEC. 212. ENHANCED CLEAN ENERGY RESEARCH, DEVEL-
OPMENT, AND DEMONSTRATION. 
(a) GOALS.—In order to achieve the goals stated in 
section 102 of this Act, the United States shall have an 
energy research, development, and demonstration program 
to enhance clean energy with the following goals:
(1) For wind power, the program should reduce 
the cost of wind-generated electricity by 40 percent 
by 2015, compared to the cost as of the date of the 
enactment of this Act, with concentration within the 
program on a variety of advanced wind turbine con-
cepts, manufacturing technologies, and optimal dem-
onstration locations. 
(2) For photovoltaics, the programs should pur-
sue research, development, and demonstration that 
would lead to photovoltaic systems with generation 
costs of 10 cents kWh by 2015, and 7 cents kWh 
by 2020. Program activities should include assisting 
industry in developing manufacturing technologies, 
giving greater attention to balance of system issues, 
and expanding fundamental research on relevant ad-
vanced materials. 
(3) For solar thermal electric systems the pro-
gram should strengthen ongoing research, develop-
ment, and demonstration combining high-efficiency 
and high-temperature receivers with advanced ther-
mal storage and power cycles, with the goal of mak-
ing solar-only power (including baseload solar power) 
widely competitive with fossil fuel power by 2017. 
(4) For geothermal energy, the program should 
continue work on hydrothermal systems, and reac-
tivate research, development, and demonstration of 
advanced concepts, giving top priority to hot dryrock 
geothermal energy. 
(5) For ocean wave energy, the program should 
reactivate and strengthen ongoing research, develop-
ment, and demonstration programs that would lead 
to generating technologies for deriving electrical 
power from the ocean, including tidal power, wave 
power, and ocean thermal energy conversion. 
(6) For stationary power generation, the Sec-
retary shall work with domestic manufacturers and 
the utilities to encourage commercial production of 
cost-competitive, fuel cell power generating facilities. 
The program should provide new technologies that 
achieve an efficiency of 70–80 percent Lower Heat-
ing Value with an average cost of $400 per kilowatt 
by 2015. 
(7) For biomass energy—
(A) the program should enable the United 
States to triple biomass energy use by 2010; 
(B) for biomass-based power systems, the 
program should enable commercialization, with-
in five years after the date of the enactment of 
this Act, of integrated power-generating tech-