SEC. 204. FUNCTIONS OF COMMISSION. 
The functions of the Commission are— 
(1) to examine, study, and evaluate the tech-
nical obstacles and policy barriers that need to be 
addressed in order for the United States to achieve 
independence from foreign oil through a balanced 
combination of— 
(A) increased domestic production of en-
ergy; 
(B) enhanced energy conservation and effi-
ciency; and 
(C) the accelerated development of alter-
native fuels and technologies to transition the 
United States motor vehicle fleet away from re-
liance on petroleum-based fuels; 
(2) to investigate matters that relate to achiev-
ing independence from foreign oil, such as— 
(A) carbon capture and storage; 
(B) nuclear and renewable energy; and 
(C) 
the 
need 
for 
upgrading 
and 
transitioning the national grid and other energy 
infrastructure; and 
(3) to submit to Congress and the President 
such reports as are required by section 106 con-
taining such findings, conclusions, and recommenda-
tions as the Commission shall determine to be nec-
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essary to advise and assist Congress and the Presi-
dent in developing legislation, procedures, rules, and 
regulations relating to the removal of technical ob-
stacles and policy barriers to achieve independence 
from foreign oil. 
SEC. 205. POWERS OF COMMISSION. 
(a) IN GENERAL.— 
(1) RULES.—The Commission may establish 
such rules and regulations relating to administrative 
procedures as are reasonably necessary to enable the 
Commission to carry out this title. 
(2) HEARINGS AND EVIDENCE.—The Commis-
sion or, on the authority of the Commission, any 
subcommittee or member of the Commission may, 
for the purpose of carrying out this title, hold such 
hearings and sit and act at such times and places, 
take such testimony, receive such evidence, and ad-
minister such oaths as the Commission determines 
to be appropriate. 
(b) CONTRACTING.—To the extent amounts are made 
available in appropriations Acts, the Commission may 
enter into contracts to assist the Commission in carrying 
out the duties of the Commission under this title. 
(c) INFORMATION FROM FEDERAL AGENCIES.— 
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(1) IN GENERAL.—The Commission may secure 
directly from a Federal agency such information, 
suggestions, estimates, and statistics as the Commis-
sion considers to be necessary to carry out this title. 
(2) PROVISION OF INFORMATION.—On request 
of the Commission, the head of the agency shall pro-
vide the information, suggestions, estimates, and 
statistics to the Commission. 
(3) TREATMENT.—Information provided to the 
Commission under this subsection shall be received, 
handled, stored, and disseminated by members and 
staff of the Commission in accordance with applica-
ble law (including regulations) and Executive orders. 
(d) ASSISTANCE FROM FEDERAL AGENCIES.— 
(1) GENERAL
SERVICES
ADMINISTRATION.— 
The Administrator of General Services shall provide 
to the Commission, on a reimbursable basis, admin-
istrative support and other services to assist the 
Commission in carrying out the duties of the Com-
mission under this title. 
(2) OTHER DEPARTMENTS AND AGENCIES.—In 
addition to the assistance described in paragraph 
(1), any other Federal department or agency may 
provide to the Commission such services, funds, fa-
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cilities, staff, and other support as the head of the 
department or agency determines to be appropriate. 
(e) GIFTS.—The Commission may accept, use, and 
dispose of gifts or donations of services or property only 
in accordance with the ethical rules applicable to congres-
sional officers and employees. 
(f) VOLUNTEER SERVICES.— 
(1) IN
GENERAL.—Notwithstanding section 
1342 of title 31, United States Code, the Commis-
sion may accept and use the services of volunteers 
serving without compensation. 
(2) REIMBURSEMENT.—The Commission may 
reimburse a volunteer for office supplies, local travel 
expenses, and other travel expenses, including per 
diem in lieu of subsistence, in accordance with sec-
tion 5703 of title 5, United States Code. 
(3) TREATMENT.—A volunteer of the Commis-
sion shall be considered to be an employee of the 
Federal Government in carrying out activities for 
the Commission, for purposes of— 
(A) chapter 81 of title 5, United States 
Code; 
(B) chapter 11 of title 18, United States 
Code; and 
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(C) chapter 171 of title 28, United States 
Code. 
(g) POSTAL SERVICES.—The Commission may use 
the United States mails in the same manner and under 
the same conditions as other agencies of the Federal Gov-
ernment. 
SEC. 206. REPORTS. 
Not later than 1 year after the date on which all 
members of the Commission are appointed under section 
103 and each year thereafter, the Commission shall sub-
mit to Congress and the President a report that contains 
the findings, conclusions, and recommendations of the 
Commission to remove the technical obstacles and policy 
barriers that need to be addressed in order for the United 
States to achieve independence from foreign oil and ad-
dress related matters in accordance with section 103. 
SEC. 207. STAFF OF COMMISSION. 
(a) IN GENERAL.—The Chairperson of the Commis-
sion (in consultation with the Vice-Chairperson of the 
Commission) may, without regard to the civil service laws 
(including regulations), appoint and terminate a staff di-
rector and such other additional personnel as are nec-
essary to enable the Commission to perform the duties of 
the Commission. 
(b) COMPENSATION.— 
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SEC. 208. COMPENSATION AND TRAVEL EXPENSES. 
(a) COMPENSATION OF MEMBERS.—A member of the 
Commission shall be compensated at a rate equal to the 
daily equivalent of the annual rate of basic pay prescribed 
for level IV of the Executive Schedule under section 5315 
of title 5, United States Code, for each day (including 
travel time) during which the member is engaged in the 
performance of the duties of the Commission. 
(b) TRAVEL EXPENSES.—A member of the Commis-
sion shall be allowed travel expenses, including per diem 
in lieu of subsistence, at rates authorized for an employee 
of an agency under subchapter I of chapter 57 of title 
5, United States Code, while away from the home or reg-
ular place of business of the member in the performance 
of the duties of the Commission. 
SEC. 209. MEETINGS. 
(a) IN GENERAL.—The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Commission. 
(b) PUBLIC MEETINGS AND RELEASE OF PUBLIC 
VERSIONS OF REPORTS.—The Commission shall ensure, 
to the maximum extent practicable, that— 
(1) all hearings of the Commission are available 
to the public, including by— 
(A) providing live and recorded public ac-
cess to hearings on the Internet; and 
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(B) publishing all transcripts and records 
of hearings at such time and in such manner as 
is agreed to by the majority of members of the 
Commission; and 
(2) all reports, findings, and conclusions are 
made public. 
(c) PUBLIC HEARINGS.—Public hearings of the Com-
mission shall be conducted in a manner consistent with 
the protection of information provided to or developed for 
or by the Commission as required by any applicable law 
(including regulations) or Executive order. 
SEC. 210. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Com-
mission such sums as are necessary to carry out this title, 
to remain available until expended. 
TITLE 
III—ESTABLISH 
A 
NA-
TIONAL 
RENEWABLE 
ELEC-
TRICITY STANDARD 
SEC. 301. NATIONAL RENEWABLE ELECTRICITY STANDARD. 
(a) STANDARD.—Title VI of the Public Utility Regu-
latory Policies Act of 1978 is amended by adding at the 
end the following: 
‘‘SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD. 
‘‘(a) DEFINITIONS.—For purposes of this section: 
‘‘(1) BIOMASS.—The term ‘biomass’ means— 
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‘‘(A) cellulosic (plant fiber) organic mate-
rials from a plant that is planted for the pur-
pose of being used to produce energy; 
‘‘(B) nonhazardous, plant or algal matter 
waste materials that is segregated from other 
waste materials and is derived from— 
‘‘(i) an agricultural crop, crop byprod-
uct or residue resource; 
‘‘(ii) waste such as landscape or right- 
of-way trimmings, but not including— 
‘‘(I) municipal solid waste; 
‘‘(II) 
recyclable 
postconsumer 
waste paper; 
‘‘(III) painted, treated, or pres-
surized wood; 
‘‘(IV) wood contaminated with 
plastic or metals; or 
‘‘(iii) gasified animal waste; 
‘‘(iv) landfill methane; and 
‘‘(C) with respect to material removed 
from National Forest System lands the term in-
cludes only organic material from— 
‘‘(i) precommercial thinnings; 
‘‘(ii) slash; 
‘‘(iii) brush; and 
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‘‘(iv) mill residues. 
‘‘(2) ELIGIBLE
FACILITY.—The term ‘eligible 
facility’ means— 
‘‘(A) a facility for the generation of electric 
energy from a renewable energy resource that is 
placed in service on or after the date of enact-
ment of this section or the effective date of the 
applicable State renewable portfolio standard 
program; or 
‘‘(B) a repowering or cofiring increment 
that is placed in service on or after the date of 
enactment of this section or the effective date 
of the applicable State renewable portfolio 
standard program, at a facility for the genera-
tion of electric energy from a renewable energy 
resource that was placed in service before that 
date. 
‘‘(3) EXISTING FACILITY OFFSET.—The term 
‘existing facility offset’ means renewable energy gen-
erated from an existing facility, not classified as an 
eligible facility, that is owned or under contract, di-
rectly or indirectly, to a retail electric supplier on 
the date of enactment of this section. 
‘‘(4) INCREMENTAL HYDROPOWER.—The term 
‘incremental hydropower’ means additional genera-
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tion that is achieved from increased efficiency or ad-
ditions of capacity on or after the date of enactment 
of this section or the effective date of the applicable 
State renewable portfolio standard program, at a hy-
droelectric facility that was placed in service before 
that date. 
‘‘(5) INDIAN
LAND.—The term ‘Indian land’ 
means— 
‘‘(A) any land within the limits of any In-
dian reservation, pueblo, or rancheria; 
‘‘(B) any land not within the limits of any 
Indian reservation, pueblo, or rancheria title to 
which was on the date of enactment of this 
paragraph either held by the United States for 
the benefit of any Indian tribe or individual or 
held by any Indian tribe or individual subject to 
restriction by the United States against alien-
ation; 
‘‘(C) any dependent Indian community; 
and 
‘‘(D) any land conveyed to any Alaska Na-
tive corporation under the Alaska Native 
Claims Settlement Act. 
‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’ 
means any Indian tribe, band, nation, or other orga-
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nized group or community, including any Alaskan 
Native village or regional or village corporation as 
defined in or established pursuant to the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1601 et seq.), 
which is recognized as eligible for the special pro-
grams and services provided by the United States to 
Indians because of their status as Indians. 
‘‘(7) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means electric energy generated by a re-
newable energy resource. 
‘‘(8) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘renewable energy resource’ means solar (in-
cluding solar water heating), wind, ocean, tidal, geo-
thermal energy, biomass, landfill gas, or incremental 
hydropower. 
‘‘(9) REPOWERING OR COFIRING INCREMENT.— 
The 
term 
‘repowering 
or 
cofiring 
increment’ 
means— 
‘‘(A) the additional generation from a 
modification that is placed in service on or after 
the date of enactment of this section or the ef-
fective date of the applicable State renewable 
portfolio standard program, to expand elec-
tricity production at a facility used to generate 
electric energy from a renewable energy re-
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source or to cofire biomass that was placed in 
service before the date of enactment of this sec-
tion or the effective date of the applicable State 
renewable portfolio standard program; or 
‘‘(B) the additional generation above the 
average generation in the 3 years preceding the 
date of enactment of this section or the effec-
tive date of the applicable State renewable port-
folio standard program, to expand electricity 
production at a facility used to generate electric 
energy from a renewable energy resource or to 
cofire biomass that was placed in service before 
the date of enactment of this section or the ef-
fective date of the applicable State renewable 
portfolio standard program. 
‘‘(10) RETAIL ELECTRIC SUPPLIER.—The term 
‘retail electric supplier’ means a person that sells 
electric energy to electric consumers and sold not 
less than 1,000,000 megawatt-hours of electric en-
ergy to electric consumers for purposes other than 
resale during the preceding calendar year; except 
that such term does not include the United States, 
a State or any political subdivision of a State, or any 
agency, authority, or instrumentality of any one or 
more of the foregoing, or a rural electric cooperative. 
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‘‘(11) RETAIL
ELECTRIC
SUPPLIER’S
BASE 
AMOUNT.—The term ‘retail electric supplier’s base 
amount’ means the total amount of electric energy 
sold by the retail electric supplier, expressed in 
terms of kilowatt hours, to electric customers for 
purposes other than resale during the most recent 
calendar year for which information is available, ex-
cluding electric energy generated by a hydroelectric 
facility. 
‘‘(b) MINIMUM RENEWABLE GENERATION REQUIRE-
MENT.—For each calendar year beginning in calendar 
year 2010, each retail electric supplier shall submit to the 
Secretary, not later than April 1 of the following calendar 
year, renewable energy credits in an amount equal to the 
required annual percentage specified in subsection (c). 
‘‘(c) REQUIRED ANNUAL PERCENTAGE.—For cal-
endar years 2010 through 2039, the required annual per-
centage of the retail electric supplier’s base amount that 
shall be generated from renewable energy resources, or 
otherwise credited towards such percentage requirement 
pursuant to subsection (d), shall be the percentage speci-
fied in the following table: 
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Required annual 
‘‘Calendar years: 
percentage: 
2010 ...................................................................................................
2011 ...................................................................................................
2012 ...................................................................................................
2013 ...................................................................................................
2014 ...................................................................................................
2015 ...................................................................................................
2016 ...................................................................................................
2017 ...................................................................................................
2018 ...................................................................................................
2019 ...................................................................................................
2020 and thereafter ...........................................................................
20. 
‘‘(d) RENEWABLE ENERGY CREDITS.—(1) A retail 
electric supplier may satisfy the requirements of sub-
section (b) through the submission of renewable energy 
credits— 
‘‘(A) issued to the retail electric supplier under 
subsection (e); 
‘‘(B) obtained by purchase or exchange under 
subsection (f) or (h); or 
‘‘(C) borrowed under subsection (j). 
‘‘(2) A renewable energy credit may be counted to-
ward compliance with subsection (b) only once. 
‘‘(e) ISSUANCE
OF CREDITS.—(1) The Secretary 
shall establish by rule, not later than 1 year after the date 
of enactment of this section, a program to verify and issue 
renewable energy credits, track their sale, exchange and 
submission, and enforce the requirements of this section. 
‘‘(2) An entity that generates electric energy through 
the use of a renewable energy resource may apply to the 
Secretary for the issuance of renewable energy credits. 
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The applicant must demonstrate that the electric energy 
will be transmitted onto the grid or, in the case of a gen-
eration offset, that the electric energy offset would have 
otherwise been consumed on site. The application shall in-
dicate— 
‘‘(A) the type of renewable energy resource used 
to produce the electricity; 
‘‘(B) the location where the electric energy was 
produced; and 
‘‘(C) any other information the Secretary deter-
mines appropriate. 
‘‘(3)(A) Except as provided in subparagraphs (B), 
(C), and (D), the Secretary shall issue to each entity that 
generates electric energy one renewable energy credit for 
each kilowatt hour of electric energy the entity generates 
from the date of enactment of this section and in each 
subsequent calendar year through the use of a renewable 
energy resource at an eligible facility. 
‘‘(B) For incremental hydropower the renewable en-
ergy credits shall be calculated based on the expected in-
crease in average annual generation resulting from the ef-
ficiency improvements or capacity additions. The number 
of credits shall be calculated using the same water flow 
information used to determine a historic average annual 
generation baseline for the hydroelectric facility and cer-
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tified by the Secretary or the Federal Energy Regulatory 
Commission. The calculation of the renewable energy cred-
its for incremental hydropower shall not be based on any 
operational changes at the hydroelectric facility not di-
rectly associated with the efficiency improvements or ca-
pacity additions. 
‘‘(C) The Secretary shall issue two renewable energy 
credits for each kilowatt hour of electric energy generated 
and supplied to the grid in that calendar year through the 
use of a renewable energy resource at an eligible facility 
located on Indian land. For purposes of this paragraph, 
renewable energy generated by biomass cofired with other 
fuels is eligible for two credits only if the biomass was 
grown on such land. 
‘‘(D) For electric energy generated by a renewable 
energy resource at an on-site eligible facility, used to offset 
part or all of the customer’s requirements for electric en-
ergy, the Secretary shall issue three renewable energy 
credits to such customer for each kilowatt hour generated. 
‘‘(E) In the case of a retail electric supplier that is 
subject to a State renewable standard program that— 
‘‘(i) requires the generation of electricity from 
renewable energy; or 
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‘‘(ii) provides for alternative compliance pay-
ments in satisfaction of applicable State require-
ments under the program, 
the Secretary shall issue an amount of renewable energy 
credits equal to the amount of renewable energy credits 
that the Secretary would have issued had a payment of 
the same amount been made to the Secretary under sub-
section (j). Such renewable energy credits may be applied 
against the retail electric supplier’s own required annual 
percentage or may be transferred for use only by an asso-
ciate company of the retail electric supplier. 
‘‘(f) ELIGIBILITY.—To be eligible for a renewable en-
ergy credit, the unit of electric energy generated through 
the use of a renewable energy resource may be sold or 
may be used by the generator. If both a renewable energy 
resource and a non-renewable energy resource are used to 
generate the electric energy, the Secretary shall issue re-
newable energy credits based on the proportion of the re-
newable energy resources used. The Secretary shall iden-
tify renewable energy credits by type and date of genera-
tion. 
‘‘(g) CONTRACTS UNDER SECTION 210.—When a 
generator sells electric energy generated through the use 
of a renewable energy resource to a retail electric supplier 
under a contract subject to section 210 of this Act, the 
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retail electric supplier is treated as the generator of the 
electric energy for the purposes of this section or the dura-
tion of the contract. 
‘‘(h) EXISTING FACILITY OFFSETS.—The Secretary 
shall issue renewable energy credits for existing facility 
offsets to be applied against a retail electric supplier’s re-
quired annual percentage. Such credits are not tradeable 
and may be used only in the calendar year generation ac-
tually occurs. 
‘‘(i) RENEWABLE ENERGY CREDIT TRADING.—A re-
newable energy credit, may be sold, transferred or ex-
changed by the entity to whom issued or by any other enti-
ty who acquires the renewable energy credit, except for 
those renewable energy credits issued pursuant to sub-
section (e)(3)(E). A renewable energy credit for any year 
that is not used to satisfy the minimum renewable genera-
tion requirement of subsection (a) for that year may be 
carried forward for use within the next 4 years. 
‘‘(j) RENEWABLE ENERGY CREDIT BORROWING.—At 
any time before the end of calendar year 2012, a retail 
electric supplier that has reason to believe it will not have 
sufficient renewable energy credits to comply with sub-
section (b) may— 
‘‘(1) submit a plan to the Secretary dem-
onstrating that the retail electric supplier will earn 
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sufficient credits within the next 3 calendar years 
which, when taken into account, will enable the re-
tail electric supplier to meet the requirements of 
subsection (b) for calendar year 2012 and the subse-
quent calendar years involved; and 
‘‘(2) upon the approval of the plan by the Sec-
retary, apply renewable energy credits that the plan 
demonstrates will be earned within the next 3 cal-
endar years to meet the requirements of subsection 
(b) for each calendar year involved. 
The retail electric supplier must repay all of the borrowed 
renewable energy credits by submitting an equivalent 
number of renewable energy credits, in addition to those 
otherwise required under subsection (b), by calendar year 
2020 or any earlier deadlines specified in the approved 
plan. Failure to repay the borrowed renewable energy 
credits shall subject the retail electric supplier to civil pen-
alties under subsection (k) for violation of the require-
ments of subsection (b) for each calendar year involved. 
‘‘(k) ENFORCEMENT.—A retail electric supplier that 
does not submit renewable energy credits as required 
under subsection (b) shall be liable for the payment of a 
civil penalty. That penalty shall be calculated on the basis 
of the number of renewable energy credits not submitted, 
multiplied by the lesser of 4.5 cents or 300 percent of the 
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average market value of credits for the compliance period. 
Any such penalty shall be due and payable without de-
mand to the Secretary as provided in the regulations 
issued under subsection (e). On January 1 of each year 
following calendar year 2006, the Secretary shall adjust 
for inflation the penalty for such calendar year, based on 
the Gross Domestic Product Implicity Price Deflator. 
‘‘(l) CREDIT COST CAP.—The Secretary shall offer 
renewable energy credits for sale at the lesser of 3 cents 
per kilowatt-hour or 200 percent of the average market 
value of renewable credits for the applicable compliance 
period. On January 1 of each year following calendar year 
2006, the Secretary shall adjust for inflation the price 
charged per credit for such calendar year, based on the 
Gross Domestic Product Implicit Price Deflator. 
‘‘(m) INFORMATION COLLECTION.—The Secretary 
may collect the information necessary to verify and 
audit— 
‘‘(1) the annual electric energy generation and 
renewable energy generation of any entity applying 
for renewable energy credits under this section; 
‘‘(2) the validity of renewable energy credits 
submitted by a retail electric supplier to the Sec-
retary; and 
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‘‘(3) the quantity of electricity sales of all retail 
electric suppliers. 
‘‘(n) ENVIRONMENTAL
SAVINGS
CLAUSE.—Incre-
mental hydropower shall be subject to all applicable envi-
ronmental laws and licensing and regulatory requirements. 
‘‘(o) EXISTING PROGRAMS.—(1) This section does 
not preclude a State from imposing additional renewable 
energy requirements in that State, including specifying eli-
gible technologies under such State requirements. 
‘‘(2) In the rule establishing this program, the Sec-
retary shall incorporate common elements of existing re-
newable energy programs, including State programs, to 
ensure administrative ease, market transparency and ef-
fective enforcement. The Secretary shall work with the 
States to minimize administrative burdens and costs and 
to avoid duplicating compliance charges to retail electric 
suppliers. 
‘‘(p) RECOVERY OF COSTS.—An electric utility whose 
sales of electric energy are subject to rate regulation, in-
cluding any utility whose rates are regulated by the Com-
mission and any State regulated electric utility, shall not 
be denied the opportunity to recover the full amount of 
the prudently incurred incremental cost of renewable en-
ergy obtained to comply with the requirements of sub-
section (b) for sales to electric customers which are subject 
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to rate regulation, notwithstanding any other law, regula-
tion, rule, administrative order or any agreement between 
the electric utility and either the Commission or a State 
regulatory authority. For the purpose of this subsection, 
the term ‘incremental cost of renewable energy’ means— 
‘‘(1) the additional cost to the electric utility for 
the purchase or generation of renewable energy to 
satisfy the minimum renewable generation require-
ment of subsection (b), as compared to the cost of 
the electric energy the electric utility would generate 
or purchase from another source but for the require-
ments of subsection (b); and 
‘‘(2) the cost to the electric utility for acquiring 
by purchase or exchange renewable energy credits to 
satisfy the minimum renewable generation require-
ment of subsection (b). 
For purposes of this subsection, the definitions in section 
3 of this Act shall apply to the terms ‘electric utility’, 
‘State regulated electric utility’, ‘State agency’, ‘Commis-
sion’, and ‘State regulatory authority’. 
‘‘(q) VOLUNTARY PARTICIPATION.—The Secretary 
shall encourage federally owned utilities, municipally 
owned utilities and rural electric cooperatives that sell 
electric energy to electric consumers for purposes other 
than resale to participate in the renewable portfolio stand-
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ard program. A municipally owned utility or rural electric 
cooperative that owns or has under contract a facility for 
the generation of electric energy from a renewable energy 
resource may not sell or trade renewable energy credits 
generated by such resource unless it participates in the 
renewable portfolio standard program under the same 
terms and conditions as retail electric suppliers. 
‘‘(r) PROGRAM REVIEW.—The Secretary shall enter 
into a contract with the National Academy of Sciences to 
conduct a comprehensive evaluation of all aspects of the 
Renewable Portfolio Standard program, within 8 years of 
enactment of this section. The study shall include an eval-
uation of— 
‘‘(1) the effectiveness of the program in increas-
ing the market penetration and lower the cost of the 
eligible renewable technologies; 
‘‘(2) the opportunities for any additional tech-
nologies and sources of renewable energy emerging 
since enactment of this section; 
‘‘(3) the impact on the regional diversity and 
reliability of supply sources, including the power 
quality benefits of distributed generation; 
‘‘(4) the regional resource development relative 
to renewable potential and reasons for any under in-
vestment in renewable resources; and 
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‘‘(5) the net cost/benefit of the renewable port-
folio standard to the national and State economies, 
including retail power costs, economic development 
benefits of investment, avoided costs related to envi-
ronmental and congestion mitigation investments 
that would otherwise have been required, impact on 
natural gas demand and price, effectiveness of green 
marketing programs at reducing the cost of renew-
able resources. 
The Secretary shall transmit the results of the evaluation 
and any recommendations for modifications and improve-
ments to the program to Congress not later than January 
1, 2016. 
‘‘(s) PROGRAM IMPROVEMENTS.—Using the results 
of the evaluation under subsection (p), the Secretary shall 
by rule, within 6 months of the completion of the evalua-
tion, make such modifications to the program as may be 
necessary to improve the efficiency of the program and 
maximize the use of renewable energy under the program. 
‘‘(t) STATE RENEWABLE ENERGY ACCOUNT PRO-
GRAM.—(1) The Secretary shall establish, not later than 
December 31, 2009, a State renewable energy account 
program. 
‘‘(2) All money collected by the Secretary from the 
sale of renewable energy credits shall be deposited into the 
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State renewable energy account established pursuant to 
this subsection. The State renewable energy account shall 
be held by the Secretary and shall not be transferred to 
the Secretary of the Treasury. 
‘‘(3) Proceeds deposited in the State renewable en-
ergy account shall be used by the Secretary, subject to 
annual appropriations, for a program to provide grants to 
the State agency responsible for developing State energy 
conservation plans under section 363 of the Energy Policy 
and Conservation Act (42 U.S.C. 6322) for the purposes 
of promoting renewable energy production and providing 
energy assistance and weatherization services to low-in-
come consumers. 
‘‘(4) The Secretary may issue guidelines and criteria 
for grants awarded under this subsection. At least 75 per-
cent of the funds provided to each State shall be used for 
promoting renewable energy production. The funds shall 
be allocated to the States on the basis of retail electric 
sales subject to the Renewable Portfolio Standard under 
this section or through voluntary participation. To the ex-
tent Federal credits have been issued without payment due 
to reciprocity with State programs under subsection 
(d)(3)(E), deductions shall be made from the relevant 
State’s allocation. State energy offices receiving grants 
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under this section shall maintain such records and evi-
dence of compliance as the Secretary may require.’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
such title is amended by adding the following new item 
at the end: 
‘‘Sec. 610. Federal renewable portfolio standard.’’. 
(c) SUNSET.—Section 610 of such title and the item 
relating to such section 610 in the table of contents for 
such title are each repealed as of December 31, 2039. 
TITLE 
IV—APOLLO 
PROJECT 
FOR CONVERSION OF MOTOR 
VEHICLES TO ALTERNATIVE 
FUELS 
SEC. 401. SENSE OF SENATE ON CONVERSION OF MOTOR 
VEHICLES TO ALTERNATIVE FUELS AND EN-
ERGY INDEPENDENCE. 
It is the sense of the Senate that— 
(1) not later than 20 years after the date of en-
actment of this Act, not less than 85 percent of new 
motor vehicles sold in the United States should run 
primarily on fuels other than petroleum-based fuels; 
and 
(2) not later than calendar year 2030, the 
United States should be energy independent. 
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SEC. 402. CONSUMER TAX CREDITS FOR ADVANCED VEHI-
CLES. 
(a) PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE 
CREDIT.— 
(1) IN GENERAL.—Subpart B of part IV of 
subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 (relating to other credits) is amended 
by adding at the end the following new section: 
‘‘SEC. 30D. PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE 
CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
credit against the tax imposed by this chapter for 
the taxable year an amount equal to the applicable 
amount with respect to each new qualified plug-in 
electric drive motor vehicle placed in service by the 
taxpayer during the taxable year. 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
paragraph (1), the applicable amount is sum of— 
‘‘(A) $2,500, plus 
‘‘(B) $400 for each kilowatt hour of trac-
tion battery capacity in excess of 4 kilowatt 
hours. 
‘‘(b) LIMITATION.—The amount of the credit allowed 
under subsection (a) by reason of subsection (a)(2) shall 
not exceed $7,500. 
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‘‘(c) NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
MOTOR VEHICLE.—For purposes of this section, the term 
‘new qualified plug-in electric drive motor vehicle’ means 
motor vehicle— 
‘‘(1) which draws propulsion using a traction 
battery with at least 4 kilowatt hours of capacity, 
‘‘(2) which uses an offboard source of energy to 
recharge such battery, 
‘‘(3) which, in the case of a passenger vehicle 
or light truck which has a gross vehicle weight rat-
ing of not more than 8,500 pounds, has received a 
certificate of conformity under the Clean Air Act 
and meets or exceeds the equivalent qualifying Cali-
fornia low emission vehicle standard under section 
243(e)(2) of the Clean Air Act for that make and 
model year in the case of a vehicle— 
‘‘(A) having a gross vehicle weight rating 
of 6,000 pounds or less, the Bin 5 Tier II emis-
sion standard established in regulations pre-
scribed by the Administrator of the Environ-
mental Protection Agency under section 202(i) 
of the Clean Air Act for that make and model 
year vehicle, and 
‘‘(B) having a gross vehicle weight rating 
of more than 6,000 pounds but not more than 
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8,500 pounds, the Bin 8 Tier II emission 
standard which is so established, 
‘‘(4) the original use of which commences with 
the taxpayer, 
‘‘(5) which is acquired for use or lease by the 
taxpayer and not for resale, and 
‘‘(6) which is made by a manufacturer. 
‘‘(d) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is attributable to property of a char-
acter subject to an allowance for depreciation shall 
be treated as a credit listed in section 38(b) for such 
taxable year (and not allowed under subsection (a)). 
‘‘(2) PERSONAL
CREDIT.—The credit allowed 
under subsection (a) (after the application of para-
graph (1)) for any taxable year shall not exceed the 
excess (if any) of— 
‘‘(A) the regular tax liability (as defined in 
section 26(b)) reduced by the sum of the credits 
allowable under subpart A and sections 27, 30, 
30B, and 30C, over 
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‘‘(B) the tentative minimum tax for the 
taxable year. 
‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ has the meaning given such term by section 
30(c)(2). 
‘‘(2) OTHER
TERMS.—The terms ‘passenger 
automobile’, ‘light truck’, and ‘manufacturer’ have 
the meanings given such terms in regulations pre-
scribed by the Administrator of the Environmental 
Protection Agency for purposes of the administra-
tion of title II of the Clean Air Act (42 U.S.C. 
7521et seq.). 
‘‘(3) TRACTION BATTERY CAPACITY.—Traction 
battery capacity shall be measured in kilowatt hours 
from a 100 percent state of charge to a zero percent 
state of charge. 
‘‘(4) REDUCTION IN BASIS.—For purposes of 
this subtitle, the basis of any property for which a 
credit is allowable under subsection (a) shall be re-
duced by the amount of such credit so allowed. 
‘‘(5) NO
DOUBLE
BENEFIT.—The amount of 
any deduction or other credit allowable under this 
chapter for a new qualified plug-in electric drive 
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motor vehicle shall be reduced by the amount of 
credit allowed under subsection (a) for such vehicle 
for the taxable year. 
‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTI-
TY.—In the case of a vehicle the use of which is de-
scribed in paragraph (3) or (4) of section 50(b) and 
which is not subject to a lease, the person who sold 
such vehicle to the person or entity using such vehi-
cle shall be treated as the taxpayer that placed such 
vehicle in service, but only if such person clearly dis-
closes to such person or entity in a document the 
amount of any credit allowable under subsection (a) 
with respect to such vehicle (determined without re-
gard to subsection (b)(2)). 
‘‘(7) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No credit shall be 
allowable under subsection (a) with respect to any 
property referred to in section 50(b)(1) or with re-
spect to the portion of the cost of any property 
taken into account under section 179. 
‘‘(8) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit (including recapture in the case of a 
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lease period of less than the economic life of a vehi-
cle). 
‘‘(9) ELECTION
TO
NOT
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
vehicle if the taxpayer elects not to have this section 
apply to such vehicle. 
‘‘(10) INTERACTION
WITH
AIR
QUALITY
AND 
MOTOR VEHICLE SAFETY STANDARDS.—Unless oth-
erwise provided in this section, a motor vehicle shall 
not be considered eligible for a credit under this sec-
tion unless such vehicle is in compliance with— 
‘‘(A) the applicable provisions of the Clean 
Air Act for the applicable make and model year 
of the vehicle (or applicable air quality provi-
sions of State law in the case of a State which 
has adopted such provision under a waiver 
under section 209(b) of the Clean Air Act), and 
‘‘(B) the motor vehicle safety provisions of 
sections 30101 through 30169 of title 49, 
United States Code. 
‘‘(f) REGULATIONS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary shall promulgate such regu-
lations as necessary to carry out the provisions of 
this section. 
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‘‘(2) COORDINATION IN PRESCRIPTION OF CER-
TAIN REGULATIONS.—The Secretary of the Treas-
ury, in coordination with the Secretary of Transpor-
tation and the Administrator of the Environmental 
Protection Agency, shall prescribe such regulations 
as necessary to determine whether a motor vehicle 
meets the requirements to be eligible for a credit 
under this section. 
‘‘(g) TERMINATION.—This section shall not apply to 
property purchased after December 31, 2012.’’. 
(2) COORDINATION WITH OTHER MOTOR VEHI-
CLE CREDITS.— 
(A) NEW QUALIFIED FUEL CELL MOTOR 
VEHICLES.—Paragraph (3) of section 30B(b) of 
such Code is amended by adding at the end the 
following new flush sentence: ‘‘Such term shall 
not include any motor vehicle which is a new 
qualified plug-in electric drive motor vehicle (as 
defined by section 30D(c)).’’. 
(B) NEW QUALIFIED HYBRID MOTOR VEHI-
CLES.—Paragraph (3) of section 30B(d) of 
such Code is amended by adding at the end the 
following new flush sentence: 
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‘‘Such term shall not include any motor vehicle which is 
a new qualified plug-in electric drive motor vehicle (as de-
fined by section 30D(c)).’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph 
(32), by striking the period at the end of para-
graph (33) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(34) the portion of the new qualified plug-in 
electric drive motor vehicle credit to which section 
30D(d)(1) applies.’’. 
(B) Section 55(c)(3) of such Code is 
amended 
by 
inserting 
‘‘30D(d)(2),’’ 
after 
‘‘30C(d)(2),’’. 
(C) Section 1016(a) of such Code is 
amended by striking ‘‘and’’ at the end of para-
graph (35), by striking the period at the end of 
paragraph (36) and inserting ‘‘, and’’, and by 
adding at the end the following new paragraph: 
‘‘(37) to the extent provided in section 
30D(e)(4).’’. 
(D) Section 6501(m) of such Code is 
amended 
by 
inserting 
‘‘30D(e)(9)’’ 
after 
‘‘30C(e)(5)’’. 
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(E) The table of sections for subpart B of 
part IV of subchapter A of chapter 1 is amend-
ed by adding at the end the following new item: 
‘‘Sec. 30D. Plug-in electric drive motor vehicle credit.’’. 
(b) CONVERSION KITS.— 
(1) IN GENERAL.—Section 30B of such Code 
(relating to alternative motor vehicle credit) is 
amended by redesignating subsections (i) and (j) as 
subsections (j) and (k), respectively, and by inserting 
after subsection (h) the following new subsection: 
‘‘(i) PLUG-IN CONVERSION CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the plug-in conversion credit determined under 
this subsection with respect to any motor vehicle 
which is converted to a qualified plug-in electric 
drive motor vehicle is an amount equal to 20 percent 
of the cost of the plug-in traction battery module in-
stalled in such vehicle as part of such conversion. 
‘‘(2) LIMITATIONS.—The amount of the credit 
allowed under this subsection shall not exceed 
$2,500 with respect to the conversion of any motor 
vehicle. 
‘‘(3) DEFINITIONS AND SPECIAL RULES.—For 
purposes of this subsection— 
‘‘(A) QUALIFIED PLUG-IN ELECTRIC DRIVE 
MOTOR VEHICLE.—The term ‘qualified plug-in 
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electric drive motor vehicle’ means any new 
qualified plug-in electric drive motor vehicle (as 
defined in section 30D(c), determined without 
regard to paragraphs (4) and (6) thereof). 
‘‘(B) PLUG-IN
TRACTION
BATTERY
MOD-
ULE.—The term ‘plug-in traction battery mod-
ule’ means an electro-chemical energy storage 
device which— 
‘‘(i) has a traction battery capacity of 
not less than 2.5 kilowatt hours, 
‘‘(ii) is equipped with an electrical 
plug by means of which it can be energized 
and recharged when plugged into an exter-
nal source of electric power, 
‘‘(iii) consists of a standardized con-
figuration and is mass produced, 
‘‘(iv) has been tested and approved by 
the 
National 
Highway 
Transportation 
Safety Administration as compliant with 
applicable motor vehicle and motor vehicle 
equipment safety standards when installed 
by a mechanic with standardized training 
in protocols established by the battery 
manufacturer as part of a nationwide dis-
tribution program, and 
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‘‘(v) is certified by a battery manufac-
turer as meeting the requirements of 
clauses (i) through (iv). 
‘‘(C) CREDIT
ALLOWED
TO
LESSOR
OF 
BATTERY MODULE.—In the case of a plug-in 
traction battery module which is leased to the 
taxpayer, the credit allowed under this sub-
section shall be allowed to the lessor of the 
plug-in traction battery module. 
‘‘(D) CREDIT ALLOWED IN ADDITION TO 
OTHER
CREDITS.—The credit allowed under 
this subsection shall be allowed with respect to 
a motor vehicle notwithstanding whether a cred-
it has been allowed with respect to such motor 
vehicle under this section (other than this sub-
section) in any preceding taxable year. 
‘‘(4) TERMINATION.—This subsection shall not 
apply to conversions made after December 31, 
2012.’’. 
(2) CREDIT
TREATED
AS
PART
OF
ALTER-
NATIVE MOTOR VEHICLE CREDIT.—Section 30B(a) 
of such Code is amended by striking ‘‘and’’ at the 
end of paragraph (3), by striking the period at the 
end of paragraph (4) and inserting ‘‘, and’’, and by 
adding at the end the following new paragraph: 
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‘‘(5) the plug-in conversion credit determined 
under subsection (i).’’. 
(3) NO RECAPTURE FOR VEHICLES CONVERTED 
TO QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VE-
HICLES.—Paragraph (8) of section 30B(h) of such 
Code is amended by adding at the end the following: 
‘‘, except that no benefit shall be recaptured if such 
property ceases to be eligible for such credit by rea-
son of conversion to a qualified plug-in electric drive 
motor vehicle.’’ 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2008, in taxable years beginning after such 
date. 
SEC. 403. RESEARCH AND DEVELOPMENT PROGRAM FOR 
ALTERNATIVE 
FUEL 
VEHICLE 
TECH-
NOLOGIES. 
(a) PURPOSES.—The purposes of this section are— 
(1) to enable and promote, in partnership with 
industry, comprehensive development, demonstra-
tion, and commercialization of a wide range of alter-
native fuel components, systems, and vehicles using 
diverse transportation technologies; 
(2) to make critical public investments to help 
private industry, institutions of higher education, 
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National Laboratories, and research institutions to 
expand innovation, industrial growth, and jobs in the 
United States; 
(3) to expand the availability of the existing al-
ternative fuel infrastructure for fueling light-duty 
transportation vehicles and other on-road and 
nonroad vehicles that are using petroleum and are 
mobile sources of emissions, with the goals of— 
(A) enhancing the energy security of the 
United States; 
(B) reducing dependence on imported oil; 
and 
(C) reducing emissions through the expan-
sion of alternative fuel supported mobility; 
(4) to accelerate the widespread commercializa-
tion of alternative fuel vehicle technology into all 
sizes and applications of vehicles, including commer-
cialization of alternative fuel vehicles; and 
(5) to improve the energy efficiency of and re-
duce the petroleum use in surface transportation. 
(b) PROGRAM.—The Secretary of Energy shall con-
duct a program of research, development, demonstration, 
and commercial application for alternative fuel transpor-
tation technology, including— 
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(1) high capacity, high-efficiency storage de-
vices; 
(2) high-efficiency on-board and off-board alter-
native fuel components; 
(3) high-powered alternative fuel systems for 
passenger and commercial vehicles and for nonroad 
equipment; 
(4) control system development and power train 
development and integration for alternative fuel ve-
hicles, including— 
(A) development of efficient cooling sys-
tems; 
(B) analysis and development of control 
systems that minimize the emissions profile 
when clean diesel engines are part of an alter-
native fuel system; and 
(C) development of different control sys-
tems that optimize for different goals, includ-
ing— 
(i) storage life; 
(ii) reduction of petroleum consump-
tion; and 
(iii) green house gas reduction; 
(5) nanomaterial technology applied to both al-
ternative fuel systems; 
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(6) large-scale demonstrations, testing, and 
evaluation of alternative fuel vehicles in different ap-
plications with different storage and control systems, 
including— 
(A) military applications; 
(B) mass market passenger and light-duty 
truck applications; 
(C) private fleet applications; and 
(D) medium- and heavy-duty applications; 
(7) development, in consultation with the Ad-
ministrator of the Environmental Protection Agency, 
of procedures for testing and certification of criteria 
pollutants, fuel economy, and petroleum use for 
light-, medium-, and heavy-duty vehicle applications, 
including consideration of— 
(A) the vehicle and fuel as a system, not 
just an engine; and 
(B) nightly off-board charging; and 
(8) advancement of alternative fuel transpor-
tation technologies in mobile source applications 
by— 
(A) improvement in alternative fuel tech-
nologies; and 
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(B) working with industry and the Admin-
istrator of the Environmental Protection Agen-
cy to— 
(i) understand and inventory markets; 
and 
(ii) identify and implement methods of 
removing barriers for existing and emerg-
ing applications. 
(c) FUNDING.— 
(1) IN
GENERAL.—Out of any funds in the 
Treasury not otherwise appropriated, the Secretary 
of the Treasury shall transfer to the Secretary of 
Energy to carry out this section, to remain available 
until expended— 
(A) on October 1, 2008, and each October 
thereafter 
through 
October 
1, 
2012, 
$1,000,000,000; and 
(B) on October 1, 2013, and each October 
thereafter 
through 
October 
1, 
2017, 
$500,000,000. 
(2) RECEIPT
AND
ACCEPTANCE.—The Sec-
retary of Energy shall be entitled to receive, shall 
accept, and shall use to carry out this section the 
funds transferred under paragraph (1), without fur-
ther appropriation. 
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SEC. 404. FEDERAL FLEET REQUIREMENTS. 
(a) DEFINITION
OF
ADVANCED
ALTERNATIVE 
FUELED VEHICLE.—Section 301 of the Energy Policy Act 
of 1992 (42 U.S.C. 13211) is amended by inserting after 
paragraph (14) the following: 
‘‘(15) ADVANCED ALTERNATIVE FUELED VEHI-
CLE.— 
‘‘(A) IN GENERAL.—The term ‘advanced 
alternative fueled vehicle’ means an alternative 
fueled vehicle that is powered primarily by a 
nonpetroleum-based fuel. 
‘‘(B) EXCLUSION.—The term ‘advanced al-
ternative fueled vehicle’ does not include a flex 
fuel vehicle.’’. 
(b) ADVANCED ALTERNATIVE FUEL VEHICLES.— 
Section 303(b) of the Energy Policy Act of 1992 (42 
U.S.C. 13212(b)) is amended— 
(1) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) ADVANCED ALTERNATIVE FUEL VEHICLES.— 
Of all vehicles purchased by the Federal Government for 
a model year, at least the following percentage of the vehi-
cles shall be advanced alternative fueled vehicles: 
‘‘(A) 10 percent for each of fiscal years 2013 
and 2014. 
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‘‘(B) 20 percent for each of fiscal years 2015 
and 2016. 
‘‘(C) 30 percent for each of fiscal years 2017 
and 2018. 
‘‘(D) 40 percent for each of fiscal years 2019 
and 2020. 
‘‘(E) 50 percent for each of fiscal years 2021 
and 2022. 
‘‘(F) 60 percent for each of fiscal years 2023 
and 2024. 
‘‘(G) 70 percent for each of fiscal years 2025 
and 2026. 
‘‘(H) 80 percent for each of fiscal years 2027 
and 2028. 
‘‘(I) 90 percent for fiscal year 2029 and each 
fiscal year thereafter.’’; and 
(2) in paragraph (2), by inserting ‘‘or (4)’’ 
after ‘‘paragraph (1)’’. 
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TITLE 
V—ENHANCED 
CON-
SERVATION AND EFFICIENCY 
Subtitle A—Enhancing Efficiency 
of Conventional Vehicles 
PART I—FUEL ECONOMY STANDARDS 
SEC. 501. INCREASE CORPORATE FUEL ECONOMY STAND-
ARDS. 
Section 32902 of title 49, United States Code, is 
amended by striking ‘‘for model year 2020 of at least 35 
miles per gallon’’ and inserting ‘‘for model year 2015 of 
at least 35 miles per gallon and for model year 2030 of 
at least 50 miles per gallon’’. 
SEC. 502. MORE REALISTIC DETERMINATION OF FUEL EFFI-
CIENCY STANDARDS. 
Section 32902 of title 49, United States Code, is 
amended by adding at the end the following: 
‘‘(l) CALCULATION OF MAXIMUM FEASIBLE FUEL 
ECONOMY STANDARDS.— 
‘‘(1) IN GENERAL.—The Secretary shall deter-
mine the maximum feasible fuel economy level 
achievable for passenger automobiles and non-pas-
senger automobiles for each model year for purposes 
of this section based on a projected gasoline price 
that is not less than the applicable high gasoline 
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price projection issued by the Energy Information 
Administration. 
‘‘(2) APPLICABLE HIGH GASOLINE PRICE PRO-
JECTION DEFINED.—In this subsection the term ‘ap-
plicable high gasoline price projection’ means the 
greatest of a range of estimated gasoline prices that 
the Energy Information Administration issues as 
part of its annual energy outlook, short-term energy 
outlook, or similar analyses, for the year or years 
corresponding to the model year or model years for 
which the Secretary is prescribing an average fuel 
economy standard under this section, and for the 
range of years considered by the Secretary in deter-
mining the costs and benefits associated with such 
standard.’’. 
SEC. 503. FUEL EFFICIENCY STANDARDS REVISIONS. 
(a) WEIGHT.—Section 32901(a)(3) of title 49, 
United States Code, is amended by striking ‘‘rated at— 
’’ and all that follows through the period at the end and 
inserting ‘‘rated at not more than 10,000 pounds gross 
vehicle weight.’’. 
(b) 
FUEL
ECONOMY
INFORMATION.—Section 
32908(a) of title 49, United States Code, is amended, by 
striking 8,500 and inserting ‘‘10,000’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to model year 2009 and each sub-
sequent model year. 
SEC. 504. AUTOMOBILE SAFETY. 
Nothing in this Act shall be construed to limit, con-
strain, supercede, or expand the authority of the Secretary 
of Transportation to prescribe motor vehicle safety stand-
ards to reduce traffic accidents and deaths and injuries 
resulting from traffic accidents conferred by chapter 301 
of title 49, United States Code. 
PART II—OTHER PROVISIONS 
SEC. 511. LIGHTWEIGHT MATERIALS RESEARCH AND DE-
VELOPMENT. 
(a) IN GENERAL.—As soon as practicable after the 
date of enactment of this Act, the Secretary shall establish 
a research and development program on lightweight mate-
rials and composites and other innovations to increase the 
fuel efficiency of motor vehicles, including materials, com-
posites, and innovation that will permit— 
(1) the weight of vehicles to be reduced to im-
prove fuel efficiency without compromising pas-
senger safety; and 
(2) the cost of lightweight materials (such as 18 
steel alloys and carbon fibers) required for the con-
struction of lighter-weight vehicles to be reduced. 
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(b) FUNDING.— 
(1) IN GENERAL.—On October 1, 2008, and on 
each October 1 thereafter through October 1, 2017, 
out of any funds in the Treasury not otherwise ap-
propriated, the Secretary of the Treasury shall 
transfer to the Secretary to carry out this subsection 
$500,000,000, to remain available until expended. 
(2) RECEIPT
AND
ACCEPTANCE.—The Sec-
retary shall be entitled to receive, shall accept, and 
shall use to carry out this subsection the funds 
transferred under paragraph (1), without further ap-
propriation. 
SEC. 512. FEDERAL GOVERNMENT GASOLINE CONSUMP-
TION. 
(a) IN GENERAL.—Section 303(b) of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13212(b)) is amended by add-
ing at the end the following: 
‘‘(5) GASOLINE CONSUMPTION.—The Secretary 
shall promulgate regulations for Federal fleets sub-
ject to this title requiring that, not later than fiscal 
year 2010, each Federal agency achieve at least a 5- 
percent reduction in petroleum consumption, as cal-
culated from the baseline established by the Sec-
retary for fiscal year 2008.’’. 
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(b) ADDITIONAL
GASOLINE
REDUCTION
MEAS-
URES.— 
(1) STUDY.—The Comptroller General of the 
United States shall conduct a study to determine 
whether additional gasoline reduction measures by 
Federal departments, agencies, and Congress are 
technically feasible. 
(2) REPORT.—Not later than 180 days after 
the date of enactment of this Act, the Comptroller 
General shall submit to Congress a report that de-
scribes the results of the study, including any rec-
ommendations. 
SEC. 513. CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986, as amended by this Act, is amended by adding at 
the end the following new section: 
‘‘SEC. 30E. FUEL-EFFICIENT MOTOR VEHICLE CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
credit against the tax imposed by this chapter for 
the taxable year an amount equal to the amount de-
termined under paragraph (2) with respect to any 
new fuel-efficient motor vehicle placed in service by 
the taxpayer during the taxable year. 
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‘‘(2) CREDIT
AMOUNT.—The amount deter-
mined under this paragraph shall be— 
‘‘(A) $500, if the new fuel-efficient motor 
vehicle achieves a city fuel economy which is 42 
miles per gallon or less; 
‘‘(B) $1,000, if the new fuel-efficient 
motor vehicle achieves a city fuel economy 
which is greater than 42 miles per gallon but 
less than 45.6 miles per gallon; 
‘‘(C) $1,500, if the new fuel-efficient motor 
vehicle achieves a city fuel economy which is 
greater than 45.5 miles per gallon but less than 
49.1 miles per gallon; 
‘‘(D) $2,000, if the new fuel-efficient 
motor vehicle achieves a city fuel economy 
which is greater than 49 miles per gallon but 
less than 52.6 miles per gallon; and 
‘‘(E) $2,500, if the new fuel-efficient 
motor vehicle achieves a city fuel economy 
which is greater than 52.5 miles per gallon. 
‘‘(b) NEW FUEL-EFFICIENT MOTOR VEHICLE.—For 
purposes of this section, the term ‘new fuel-efficient motor 
vehicle’ means any motor vehicle— 
‘‘(1) which has a gross vehicle weight rating of 
not more than 8,500 pounds, 
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‘‘(2) which achieves a city fuel economy of at 
least 38.5 miles per gallon, 
‘‘(3) the original use of which commences with 
the taxpayer, 
‘‘(4) which is acquired by the taxpayer for use 
or lease, but not for resale, and 
‘‘(5) which is made by a manufacturer. 
‘‘(c) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) CITY FUEL ECONOMY; MANUFACTURER.— 
The terms ‘city fuel economy’ and ‘manufacturer’ 
have the meanings given such terms under section 
30B(h). 
‘‘(2) BASIS
REDUCTION.—The basis of any 
property for which a credit is allowable under sub-
section (a) shall be reduced by the amount of such 
credit. 
‘‘(3) RECAPTURE; PROPERTY
USED
OUTSIDE 
THE
UNITED
STATES; ELECTION
NOT
TO
TAKE 
CREDIT.—For purposes of this section, rules similar 
to the rules of paragraphs (2), (3), and (4) of sec-
tion 30(d) shall apply. 
‘‘(4) DENIAL OF DOUBLE BENEFIT.—No credit 
shall be allowed under this section with respect to 
any new fuel-efficient motor vehicle if a credit is al-
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lowed with respect to such vehicle under section 30, 
30B, or 30D. 
‘‘(d) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is attributable to property of a char-
acter subject to an allowance for depreciation shall 
be treated as a credit listed in section 38(b) for such 
taxable year (and not allowed under subsection (a)). 
‘‘(2) PERSONAL
CREDIT.—The credit allowed 
under subsection (a) (after the application of para-
graph (1)) for any taxable year shall not exceed the 
excess (if any) of— 
‘‘(A) the regular tax liability (as defined in 
section 26(b)) reduced by the sum of the credits 
allowable under subpart A and sections 27, 30, 
30B, and 30D, over 
‘‘(B) the tentative minimum tax for the 
taxable year. 
‘‘(e) TERMINATION.—This section shall not apply to 
property placed in service after December 31, 2010.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 38(b) of the Internal Revenue Code 
of 1986, as amended by this Act, is amended by 
striking ‘‘plus’’ at the end of paragraph (33), by 
striking the period at the end of paragraph (34) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(35) the portion of the new fuel-efficient motor 
vehicle credit to which section 30E(d)(1) applies.’’. 
(2) Section 1016(a) of such Code, as amended 
by this Act, 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) to the extent provided in section 
30E(c)(2).’’. 
(3) Section 6501(m) of such Code, as amended 
by this Act, is amended by inserting ‘‘30E(c)(3),’’ 
after ‘‘30D(e)(9),’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 30E. Fuel-efficient motor vehicle credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
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SEC. 514. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING 
REDUCTION UNITS AND ADVANCED INSULA-
TION. 
(a) IN GENERAL.—Section 4053 of the Internal Rev-
enue Code of 1986 (relating to exemptions) is amended 
by adding at the end the following new paragraphs: 
‘‘(9) IDLING REDUCTION DEVICE.—Any device 
or system of devices which— 
‘‘(A) is designed to provide to a vehicle 
those services (such as heat, air conditioning, or 
electricity) that would otherwise require the op-
eration of the main drive engine while the vehi-
cle is temporarily parked or remains stationary 
using one or more devices affixed to a tractor, 
and 
‘‘(B) is determined by the Administrator of 
the Environmental Protection Agency, in con-
sultation with the Secretary of Energy and the 
Secretary of Transportation, to reduce idling of 
such vehicle at a motor vehicle rest stop or 
other location where such vehicles are tempo-
rarily parked or remain stationary. 
‘‘(10) ADVANCED INSULATION.—Any insulation 
that has an R value of not less than R35 per inch.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to sales or installations after the 
date of the enactment of this Act. 
SEC. 515. IDLING REDUCTION TAX CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45Q. IDLING REDUCTION CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the idling reduction tax credit determined under this sec-
tion for the taxable year is an amount equal to 25 percent 
of the amount paid or incurred for each qualifying idling 
reduction device placed in service by the taxpayer during 
the taxable year. 
‘‘(b) LIMITATION.—The maximum amount allowed as 
a credit under subsection (a) shall not exceed $1,000 per 
device. 
‘‘(c) DEFINITIONS.—For purposes of subsection 
(a)— 
‘‘(1) QUALIFYING
IDLING
REDUCTION
DE-
VICE.—The term ‘qualifying idling reduction device’ 
means any device or system of devices that— 
‘‘(A) is installed on a heavy-duty diesel- 
powered on-highway vehicle; 
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‘‘(B) is designed to provide to such vehicle 
those services (such as heat, air conditioning, or 
electricity) that would otherwise require the op-
eration of the main drive engine while the vehi-
cle is temporarily parked or remains stationary; 
‘‘(C) the original use of which commences 
with the taxpayer; 
‘‘(D) is acquired for use by the taxpayer 
and not for resale; and 
‘‘(E) is certified by the Secretary of En-
ergy, in consultation with the Administrator of 
the Environmental Protection Agency and the 
Secretary of Transportation, to reduce long-du-
ration idling of such vehicle at a motor vehicle 
rest stop or other location where such vehicles 
are temporarily parked or remain stationary. 
‘‘(2) HEAVY-DUTY DIESEL-POWERED ON-HIGH 
WAY
VEHICLE.—The term ‘heavy-duty diesel-pow-
ered on-highway vehicle’ means any vehicle, ma-
chine, tractor, trailer, or semi-trailer propelled or 21 
drawn by mechanical power and used upon the high-
ways in the transportation of passengers or prop-
erty, or any combination thereof determined by the 
Federal Highway Administration. 
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‘‘(3) LONG-DURATION IDLING.—The term ‘long 
duration idling’ means the operation of a main drive 
engine, for a period greater than 15 consecutive 
minutes, where the main drive engine is not engaged 
in gear. Such term does not apply to routine stop 
pages associated with traffic movement or conges-
tion. 
‘‘(d) NO DOUBLE BENEFIT.—For purposes of this 
section— 
‘‘(1) REDUCTION IN BASIS.—If a credit is de-
termined under this section with respect to any 
property by reason of expenditures described in sub-
section (a), the basis of such property shall be re-
duced by the amount of the credit so determined. 
‘‘(2) OTHER DEDUCTIONS AND CREDITS.—No 
deduction or credit shall be allowed under any other 
provision of this chapter with respect to the amount 
of the credit determined under this section. 
‘‘(e) ELECTION NOT TO CLAIM CREDIT.—This sec-
tion shall not apply to a taxpayer for any taxable year 
if such taxpayer elects to have this section not apply for 
such taxable year’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38 of such Code (relating to general 
business credit), as amended by this Act, is amended by 
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striking ‘‘plus’’ at the end of paragraph (34), by striking 
the period at the end of paragraph (35) and inserting ‘‘, 
plus’’, and by adding at the end the following new para-
graph: 
‘‘(36) the idling reduction tax credit determined 
under section 45Q(a).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 45P the following new item: 
‘‘Sec. 45Q. Idling reduction credit.’’. 
(2) Section 1016(a) of such Code, as amended 
by this Act, is amended by striking ‘‘and’’ at the end 
of paragraph (37), by striking the period at the end 
of paragraph (38) and inserting ‘‘, and’’, and by 
adding at the end the following: 
‘‘(39) in the case of a facility with respect to 
which a credit was allowed under section 45Q, to the 
extent provided in section 45Q(d)(A).’’. 
(3) Section 6501(m) of such Code is amended 
by inserting ‘‘45Q(e),’’ after ‘‘45C(d)(4),’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
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SEC. 516. DETERMINATION OF CERTIFICATION STANDARDS 
BY SECRETARY OF ENERGY FOR CERTIFYING 
IDLING REDUCTION DEVICES. 
Not later than 6 months after the date of the enact-
ment of this Act and in order to reduce air pollution and 
fuel consumption, the Secretary of Energy, in consultation 
with the Administrator of the Environmental Protection 
Agency and the Secretary of Transportation, shall publish 
the standards under which the Secretary, in consultation 
with the Administrator of the Environmental Protection 
Agency and the Secretary of Transportation, will, for pur-
poses of section 45Q of the Internal Revenue Code of 1986 
(as added by this Act), certify the idling reduction devices 
which will reduce long-duration idling of vehicles at motor 
vehicle rest stops or other locations where such vehicles 
are temporarily parked or remain stationary in order to 
reduce air pollution and fuel consumption. 
SEC. 517. EXTENSION AND MODIFICATION OF ALTER-
NATIVE MOTOR VEHICLE CREDIT. 
(a) ELIMINATION
OF
MANUFACTURER
LIMITA-
TION.— 
(1) IN GENERAL.—Section 30B of the Internal 
Revenue Code of 1986, as amended by this Act, is 
amended— 
(A) by striking subsection (f), and 
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101 
(1) by striking ‘‘December 31, 2010’’ in para-
graphs (2) and (4) and inserting ‘‘December 31, 
2014’’, and 
(2) by striking ‘‘December 31, 2009’’ in para-
graph (3) and inserting ‘‘December 31, 2012’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of enactment of this Act, in taxable years ending 
after such date. 
Subtitle B—Alternative Fuels and 
Biofuels 
PART I—GENERAL PROVISIONS 
SEC. 521. BIOENERGY RESEARCH AND DEVELOPMENT. 
(a) IN GENERAL.—Section 931 of the Energy Policy 
Act of 2005 (42 U.S.C. 16231) is amended as follows: 
(1) In subsection (b), by striking paragraphs 
(3) and (4) and inserting the following: 
‘‘(3) $3,352,000,000 for fiscal year 2009; and 
‘‘(4) $3,463,000,000 for fiscal year 2010.’’. 
(2) In subsection (c), by striking paragraphs 
(3) and (4) and inserting the following: 
‘‘(3) $2,898,000,000 for fiscal year 2009, of 
which $150,000,000 shall be for section 932(d); and 
‘‘(4) $2,919,000,000 for fiscal year 2010, of 
which $150,000,000 shall be for section 932(d).’’. 
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102 
(b) PIPELINE INFRASTRUCTURE.—Section 212 of the 
Clean Air Act (42 U.S.C. 7546) is amended by adding 
at the end the following: 
‘‘(f) PIPELINE INFRASTRUCTURE.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
provide grants for research into, and development 
and implementation of, the manner in which pipeline 
infrastructure can be retrofitted to accommodate 
biofuels. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as are necessary to carry out this subsection for 
each of fiscal years 2009 through 2014.’’. 
SEC. 522. ALTERNATIVE FUELED AUTOMOBILE PRODUC-
TION REQUIREMENT. 
Section 32905 of title 49, United States Code, as 
amended by section 203 of this Act, is further amended 
by adding at the end the following: 
‘‘(h) ALTERNATIVE FUELED AUTOMOBILES.—Each 
manufacturer that manufactures automobiles for sale or 
use in the United States shall ensure that— 
‘‘(1) not less than 75 percent of such auto-
mobiles manufactured for each of model years 2015 
through 2019 are alternative fueled automobiles; 
and 
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103 
‘‘(2) 100 percent of such automobiles manufac-
tured for model year 2020 and each subsequent 
model year are alternative fueled automobiles.’’. 
SEC. 523. DEFINITION OF RENEWABLE BIOMASS. 
Effective January 1, 2009, section 211(o)(1) of the 
Clean Air Act (42 U.S.C.7545(o)(1)), as amended by sec-
tion 210(c) of the Energy Independence and Security Act 
of 2007 (Public Law 110–140) is amended by striking 
subparagraph (I) and inserting the following: 
‘‘(I) RENEWABLE BIOMASS.—The term ‘re-
newable biomass’ means— 
‘‘(i) 
materials, 
pre-commercial 
thinnings, or invasive species from Na-
tional Forest System land and public lands 
(as defined in section 103 of the Federal 
Land Policy and Management Act of 1976 
(43 U.S.C. 1702)) that— 
‘‘(I) are byproducts of preventive 
treatments that are removed— 
‘‘(aa) to reduce hazardous 
fuels; 
‘‘(bb) to reduce or contain 
disease or insect infestation; or 
‘‘(cc) to restore ecosystem 
health; 
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104 
‘‘(II) would not otherwise be used 
for higher-value products; and 
‘‘(III) are harvested in accord-
ance with— 
‘‘(aa) applicable law and 
land management plans; and 
‘‘(bb) 
the 
requirements 
for— 
‘‘(AA) old-growth main-
tenance, 
restoration, 
and 
management 
direction 
of 
paragraphs (2), (3), and (4) 
of subsection (e) of section 
102 of the Healthy Forests 
Restoration Act of 2003 (16 
U.S.C. 6512); and 
‘‘(BB) large-tree reten-
tion of subsection (f) of that 
section; or 
‘‘(ii) any organic matter that is 
avail1able on a renewable or recurring 
basis from non-Federal land or land be-
longing to an Indian or Indian tribe that 
is held in trust by the United States or 
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105 
subject to a restriction against alienation 
imposed by the United States, including— 
‘‘(I) renewable plant material, in-
cluding— 
‘‘(aa) feed grains; 
‘‘(bb) 
other 
agricultural 
commodities; 
‘‘(cc) other plants and trees; 
and 
‘‘(dd) algae; and 
‘‘(II) waste material, including— 
‘‘(aa) crop residue; 
‘‘(bb) other vegetative waste 
material (including wood waste 
and wood residues); 
‘‘(cc) animal waste and by 
products (including fats, oils, 
greases, and manure); and 
‘‘(dd) food waste and yard 
waste.’’. 
SEC. 524. LOAN GUARANTEES FOR RENEWABLE ENERGY 
PIPELINES. 
Subtitle C of title II of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17051 et seq.) is amend-
ed by adding at the end the following: 
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106 
‘‘SEC. 249. LOAN GUARANTEES FOR RENEWABLE ENERGY 
PIPELINES. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COST.—The term ‘cost’ has the meaning 
given the term ‘cost of a loan guarantee’ in section 
502(5)(C) of the Federal Credit Reform Act of 1990 
(2 U.S.C. 661a(5)(C)). 
‘‘(2) ELIGIBLE
PROJECT.—The term eligible 
project means a project described in subsection 
(b)(1). 
‘‘(3) GUARANTEE.— 
‘‘(A) IN GENERAL.—The term ‘guarantee’ 
has the meaning given the term ‘loan guar-
antee’ in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a). 
‘‘(B) INCLUSION.—The term ‘guarantee’ 
includes a loan guarantee commitment (as de-
fined in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a)). 
‘‘(4) RENEWABLE
ENERGY
PIPELINE.—The 
term ‘renewable energy pipeline’ means a common 
carrier pipeline for transporting renewable energy. 
‘‘(b) LOAN GUARANTEES.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
guarantees under this section for projects that pro-
vide for— 
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‘‘(A) the construction of new renewable en-
ergy pipelines; or 
‘‘(B) the modification of pipelines to trans-
port renewable energy. 
‘‘(2) ELIGIBILITY.—In determining the eligi-
bility of a project for a guarantee under this section, 
the Secretary shall consider— 
‘‘(A) the volume of renewable energy to be 
moved by the renewable energy pipeline; 
‘‘(B) the size of the markets to be served 
by the renewable energy pipeline; 
‘‘(C) the existence of sufficient storage to 
facilitate access to the markets served by the 
renewable energy pipeline; 
‘‘(D) the proximity of the renewable energy 
pipeline to ethanol production facilities; 
‘‘(E) the investment of the entity carrying 
out the proposed project in terminal infrastruc-
ture; 
‘‘(F) the experience of the entity carrying 
out the proposed project in working with renew-
able energy; 
‘‘(G) the ability of the entity carrying out 
the proposed project to maintain the quality of 
the renewable energy through— 
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108 
‘‘(i) the terminal system of the entity; 
and 
‘‘(ii) the dedicated pipeline system; 
‘‘(H) the ability of the entity carrying out 
the proposed project to complete the project in 
a timely manner; and 
‘‘(I) the ability of the entity carrying out 
the proposed project to secure property rights 
of-way in order to move the proposed project 
forward in a timely manner. 
‘‘(3) 
AMOUNT.—Unless 
otherwise 
provided 
bylaw, a guarantee by the Secretary under this sec-
tion shall not exceed an amount equal to 90 percent 
of the eligible project cost of the renewable energy 
pipeline that is the subject of the guarantee, as esti-
mated at the time at which the guarantee is issued 
or subsequently modified while the eligible project is 
under construction. 
‘‘(4) TERMS
AND
CONDITIONS.—Guarantees 
under this section shall be provided in accordance 
with section 1702 of the Energy Policy Act of 2005 
(42 U.S.C. 16512), except that subsections (b) and 
(c) of that section shall not apply to guarantees 
under this section. 
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109 
‘‘(5) EXISTING
FUNDING
AUTHORITY.—The 
Secretary shall make a guarantee under this section 
under an existing funding authority. 
‘‘(6) FINAL
RULE.—Not later than 90 days 
after the date of enactment of this section, the Sec-
retary shall publish in the Federal Register a final 
rule directing the Director of the Department of En-
ergy Loan Guarantee Program Office to initiate the 
loan guarantee program under this section in ac-
cordance with this section. 
‘‘(c) Funding.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated such sums as are necessary to provide 
guarantees under this section. 
‘‘(2) USE OF OTHER APPROPRIATED FUNDS.— 
To the extent that the amounts made available 
under title XVII of the Energy Policy Act of 2005 
(42 U.S.C. 16511 et seq.) have not been disbursed 
to programs under that title, the Secretary may use 
the amounts to carry out this section.’’. 
PART II—TAX PROVISIONS 
SEC. 530. REFERENCE. 
Except as otherwise expressly provided, whenever in 
this part an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
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110 
sion, the reference shall be considered to be made to a 
section or other provision of the Internal Revenue Code 
of 1986. 
SEC. 531. EXPANSION OF SPECIAL ALLOWANCE TO CEL-
LULOSIC BIOMASS ALCOHOL FUEL PLANT 
PROPERTY. 
(a) IN GENERAL.—Paragraph (3) of section 168(l) 
(relating to special allowance for cellulosic biomass ethanol 
plant property) is amended to read as follows: 
‘‘(3) CELLULOSIC
BIOMASS
ALCOHOL.—For 
purposes of this subsection, the term ‘cellulosic bio-
mass alcohol’ means any alcohol produced from any 
lignocellulosic or hemicellulosic matter that is avail-
able on a renewable or recurring basis.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (l) of section 168 is amended by 
striking ‘‘cellulosic biomass ethanol’’ each place it 
appears and inserting ‘‘cellulosic biomass alcohol’’. 
(2) The heading of section 168(l) is amended 
by striking ‘‘CELLULOSIC
BIOMASS
ETHANOL’’ 
and inserting ‘‘CELLULOSIC
BIOMASS
ALCO-
HOL’’. 
(3) The heading of paragraph (2) of section 
168(l) is amended by striking ‘‘CELLULOSIC BIO-
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111 
MASS ETHANOL’’ and inserting ‘‘CELLULOSIC BIO-
MASS ALCOHOL’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
SEC. 532. CREDIT FOR PRODUCERS OF FOSSIL FREE ALCO-
HOL. 
(a) IN GENERAL.—Subsection (a) of section 40 (re-
lating to alcohol used as fuel) is amended by striking 
‘‘plus’’ at the end of paragraph (3), by striking the period 
at the end of paragraph (4) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(5) the small fossil free alcohol producer cred-
it.’’. 
(b) SMALL
FOSSIL
FREE
ALCOHOL
PRODUCER 
CREDIT.— 
(1) IN GENERAL.—Subsection (b) of section 40 
is amended by adding at the end the following new 
paragraph: 
‘‘(7) SMALL FOSSIL FREE ALCOHOL PRODUCER 
CREDIT.— 
‘‘(A) IN
GENERAL.—In addition to any 
other credit allowed under this section, there 
shall be allowed as a credit against the tax im-
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112 
posed by this chapter for the taxable year an 
amount equal to 25 cents for each gallon of 
qualified fossil free alcohol production. 
‘‘(B) QUALIFIED
FOSSIL
FREE
ALCOHOL 
PRODUCTION.—For purposes of this section, 
the term ‘qualified fossil free alcohol produc-
tion’ means alcohol which is produced by an eli-
gible small fossil free alcohol producer at a fos-
sil free alcohol production facility and which 
during the taxable year— 
‘‘(i) is sold by the taxpayer to another 
person— 
‘‘(I) for use by such other person 
in the production of a qualified alco-
hol mixture in such other person’s 
trade or business (other than casual 
off-farm production); 
‘‘(II) for use by such other per-
son as a fuel in a trade or business; 
or 
‘‘(III) who sells such alcohol at 
retail to another person and places 
such alcohol in the fuel tank of such 
other person; or 
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113 
‘‘(ii) is used or sold by the taxpayer 
for any purpose described in clause (i). 
‘‘(C) 
ADDITIONAL
DISTILLATION
EX-
CLUDED.—The qualified fossil free alcohol pro-
duction of any taxpayer for any taxable year 
shall not include any alcohol which is purchased 
by the taxpayer and with respect to which such 
producer increases the proof of the alcohol by 
additional distillation.’’. 
(c) ELIGIBLE SMALL FOSSIL FREE ALCOHOL PRO-
DUCER.—Section 40 is amended by adding at the end the 
following new subsection: 
‘‘(i) DEFINITIONS AND SPECIAL RULES FOR SMALL 
FOSSIL FREE ALCOHOL PRODUCER.—For purposes of 
this section— 
‘‘(1) IN
GENERAL.—The term ‘eligible small 
fossil free alcohol producer’ means a person, who at 
all times during the taxable year, has a productive 
capacity for alcohol from all fossil free alcohol pro-
duction facilities of the taxpayer which is not in ex-
cess of 60,000,000 gallons. 
‘‘(2) FOSSIL
FREE
ALCOHOL
PRODUCTION 
FA2CILITY.—The term ‘fossil free alcohol production 
facility’ means any facility at which 90 percent of 
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114 
fuel used in the production of alcohol is from bio-
mass (as defined in section 45K(c)(3)). 
‘‘(3) AGGREGATION
RULE.—For purposes of 
the 60,000,000 gallon limitation under paragraph 
(1), all members of the same controlled group of cor-
porations (within the meaning of section 267(f)) and 
all persons under common control (within the mean-
ing of section 52(b) but determined by treating an 
interest of more than 50 percent as a controlling in-
terest) shall be treated as 1 person. 
‘‘(4) PARTNERSHIP, S
CORPORATIONS, AND 
OTHER
PASS-THRU
ENTITIES.—In the case of a 
partnership, trust, S corporation, or other pass-thru 
entity, the limitation contained in paragraph (1) 
shall be applied at the entity level and at the partner 
or similar level. 
‘‘(5) ALLOCATION.—For purposes of this sub 
section, in the case of a facility in which more than 
1 person has an interest, productive capacity shall 
be allocated among such persons in such manner as 
the Secretary may prescribe. 
‘‘(6) REGULATIONS.—The Secretary may pre-
scribe such regulations as may be necessary to pre-
vent the credit provided for in subsection (a)(5)25 
from directly or indirectly benefitting any person 
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115 
with a direct or indirect productive capacity of more 
than 60,000,000 gallons of alcohol from fossil free 
alcohol production facilities during the taxable year. 
‘‘(7) ALLOCATION OF SMALL FOSSIL FREE AL-
COHOL PRODUCER CREDIT TO PATRONS OF COOPER-
ATIVE.—Rules similar to the rules under subsection 
(g)(6) shall apply for purposes of this subsection.’’. 
(d) ALCOHOL NOT USED AS A FUEL, ETC.— 
(1) IN
GENERAL.—Paragraph (3) of section 
40(d) is amended by redesignating subparagraph 
(E) as subparagraph (F) and by inserting after sub-
paragraph (D) the following new subparagraph: 
‘‘(E) SMALL FOSSIL FREE ALCOHOL PRO-
DUCER CREDIT.—If— 
‘‘(i) any credit is allowed under sub-
section (a)(5); and 
‘‘(ii) any person does not use such 
fuel for a purpose described in subsection 
(b)(7)(B), then there is hereby imposed on 
such person a tax equal to 25 cents for 
each gallon of such alcohol.’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(F) of section 40(d)(3), as redesignated by para-
graph (1), is amended by striking ‘‘or (D)’’ and in-
serting ‘‘(D), or (E)’’. 
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116 
(e) TERMINATION.—Paragraph (1) of section 40(e) 
is amended— 
(1) in subparagraph (A), by inserting ‘‘(Decem-
ber 31, 2012, in the case of the credit allowed by 
reason of subsection (a)(5))’’ after ‘‘December 31, 
2010’’, and 
(2) in subparagraph (B), by inserting ‘‘(Janu-
ary 1, 2013, in the case of the credit allowed by rea-
son of subsection (a)(5))’’ after ‘‘January 1, 2011’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel produced after the date of 
enactment of this Act. 
SEC. 533. EXTENSION AND MODIFICATION OF CREDIT FOR 
BIODIESEL USED AS FUEL. 
(a) EXTENSION.— 
(1) INCOME TAX CREDITS FOR BIODIESEL AND 
RENEWABLE
DIESEL
AND
SMALL
AGRI-BIODIESEL 
PRODUCER
CREDIT.—Section 40A(g) (relating to 
termination) is amended by striking ‘‘December 31, 
2008’’ and inserting ‘‘December 31, 2012’’. 
(2) EXCISE TAX CREDIT.—Section 6426(c)(6) 
(relating to termination) is amended by striking 
‘‘2008’’ and inserting ‘‘2012’’. 
(3) FUELS
NOT
USED
FOR
TAXABLE
PUR-
POSES.—Section 6427(e)(5)(B) (relating to termi-
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117 
nation) is amended by striking ‘‘2008’’ and inserting 
‘‘2012’’. 
(b) MODIFICATION
OF CREDIT
FOR RENEWABLE 
DIESEL.— 
(1) 
ELIGIBILITY
OF
CERTAIN
AVIATION 
FUEL.—Paragraph (3) of section 40A(f) (defining 
renewable diesel) is amended by adding at the end 
the following: ‘‘The term ‘renewable diesel’ also 
means fuel derived from biomass which meets the re-
quirements of a Department of Defense specification 
for military jet fuel or an American Society of Test-
ing and Materials specification for aviation turbine 
fuel.’’. 
(2) CO-PROCESSED RENEWABLE DIESEL.—Sec-
tion 40A(f) (relating to renewable diesel) is amended 
by adding at the end the following new paragraph: 
‘‘(4) SPECIAL
RULE
FOR
CO-PROCESSED
RE-
NEWABLE DIESEL.—In the case of a taxpayer which 
produces renewable diesel through the co-processing 
of biomass and petroleum at any facility, this sub-
section shall not apply to so much of the renewable 
diesel produced at such facility and sold or used dur-
ing the taxable year in a qualified biodiesel mixture 
as exceeds 60,000,000 gallons.’’. 
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118 
(c) MODIFICATION RELATING
TO DEFINITION
OF 
AGRI-BIODIESEL.—Paragraph (2) of section 40A(d) (re-
lating to agri-biodiesel) is amended by striking ‘‘and mus-
tard seeds’’ and inserting ‘‘mustard seeds, and camelina’’. 
(d) EFFECTIVE DATES.—The amendments made by 
this section shall apply to fuel sold or used after the date 
of the enactment of this Act. 
SEC. 534. EXTENSION AND MODIFICATION OF ALTER-
NATIVE FUEL CREDIT. 
(a) EXTENSION.— 
(1) ALTERNATIVE
FUEL
CREDIT.—Paragraph 
(4) of section 6426(d) (relating to alternative fuel 
credit) is amended by striking ‘‘September 30, 
2009’’ and inserting ‘‘December 31, 2012’’. 
(2) ALTERNATIVE
FUEL
MIXTURE
CREDIT.— 
Paragraph (3) of section 6426(e) (relating to alter-
native fuel mixture credit) is amended by striking 
‘‘September 30, 2009’’ and inserting ‘‘December 31, 
2012’’. 
(3) PAYMENTS.—Subparagraph (C) of section 
6427(e)(5) (relating to termination) is amended by 
striking ‘‘September 30, 2009’’ and inserting ‘‘De-
cember 31, 2012’’. 
(b) MODIFICATIONS.— 
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119 
(1) ALTERNATIVE
FUEL
TO
INCLUDE
COM-
PRESSED OR LIQUIFIED BIOMASS GAS.—Paragraph 
(2) of section 6426(d) (relating to alternative fuel 
credit) is amended by striking ‘‘and’’ at the end of 
subparagraph (E), by redesignating subparagraph 
(F) as subparagraph (G), and by inserting after sub-
paragraph (E) the following new subparagraph: 
‘‘(F) compressed or liquified biomass gas, 
and’’. 
(2) CREDIT ALLOWED FOR AVIATION USE OF 
FUEL.—Paragraph (1) of section 6426(d) is amend-
ed by inserting ‘‘sold by the taxpayer for use as a 
fuel in aviation,’’ after ‘‘motorboat,’’. 
(c) CARBON CAPTURE REQUIREMENT FOR CERTAIN 
FUELS.— 
(1) IN
GENERAL.—Subsection (d) of section 
6426, as amended by subsection (a), is amended by 
redesignating paragraph (4) as paragraph (5) and 
by inserting after paragraph (3) the following new 
paragraph: 
‘‘(4) CARBON
CAPTURE
REQUIREMENT.—The 
requirements of this paragraph are met if the fuel 
is certified, under such procedures as required by 
the Secretary, as having been produced at a facility 
which separates and sequesters not less than 75 per-
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120 
cent of such facility’s total carbon dioxide emis-
sions.’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(E) of section 6426(d)(2) is amended by inserting 
‘‘which meets the requirements of paragraph (4) and 
which is’’ after ‘‘any liquid fuel’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to fuel sold or used after the date of the 
enactment of this Act. 
(2) CARBON
CAPTURE
REQUIREMENTS.—The 
amendments made by subsection (c) shall apply to 
fuel sold or used after December 31, 2008. 
SEC. 535. EXTENSION OF SUSPENSION OF TAXABLE IN-
COME LIMIT ON PERCENTAGE DEPLETION 
FOR OIL AND NATURAL GAS PRODUCED 
FROM MARGINAL PROPERTIES. 
Subparagraph (H) of section 613A(c)(6) (relating to 
oil and gas produced from marginal properties) is amend-
ed by striking ‘‘January 1, 2008’’ and inserting ‘‘January 
1, 2013’’. 
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121 
SEC. 536. EXTENSION AND MODIFICATION OF ELECTION TO 
EXPENSE CERTAIN REFINERIES. 
(a) EXTENSION.—Paragraph (1) of section 179C(c) 
(relating to qualified refinery property) is amended— 
(1) by striking ‘‘January 1, 2012’’ in subpara-
graph (B) and inserting ‘‘January 1, 2013’’, and 
(2) by striking ‘‘January 1, 2008’’ each place 
it appears in subparagraph (F) and inserting ‘‘Janu-
ary 1, 2010’’. 
(b) INCLUSION OF FUEL DERIVED FROM SHALE AND 
TAR SANDS.— 
(1) IN
GENERAL.—Subsection (d) of section 
179C is amended by inserting ‘‘, or directly from 
shale or tar sands’’ after ‘‘(as defined in section 
45K(c))’’. 
(2) CONFORMING AMENDMENT.—Paragraph (2) 
of section 179C(e) is amended by inserting ‘‘shale, 
tar sands, or’’ before ‘‘qualified fuels’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 537. HYDROGEN INSTALLATION, INFRASTRUCTURE, 
AND FUEL COSTS. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 (relating to foreign tax credit, etc.), 
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122 
as amended by this Act, is amended by adding at the end 
the following new section: 
‘‘SEC. 30F. HYDROGEN INSTALLATION, INFRASTRUCTURE, 
AND FUEL COSTS. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of— 
‘‘(1) the hydrogen installation and infrastruc-
ture costs credit determined under subsection (b), 
and 
‘‘(2) the hydrogen fuel costs credit determined 
under subsection (c). 
‘‘(b) HYDROGEN INSTALLATION AND INFRASTRUC-
TURE COSTS CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the hydrogen installation and infrastructure 
costs credit determined under this subsection with 
respect to each eligible hydrogen production and dis-
tribution facility of the taxpayer is an amount equal 
to— 
‘‘(A) 30 percent of so much of the installa-
tion costs which when added to such costs 
taken into account with respect to such facility 
for all preceding taxable years under this sub-
paragraph does not exceed $200,000, plus 
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‘‘(B) 30 percent of so much of the infra-
structure costs for the taxable year as does not 
exceed $200,000 with respect to such facility, 
and which when added to such costs taken into 
account with respect to such facility for all pre-
ceding taxable years under this subparagraph 
does not exceed $600,000. 
Nothing in this section shall permit the same cost to 
be taken into account more than once. 
‘‘(2) ELIGIBLE
HYDROGEN
PRODUCTION
AND 
DISTRIBUTION FACILITY.—For purposes of this sub-
section, the term ‘eligible hydrogen production and 
distribution facility’ means a hydrogen production 
and distribution facility which is placed in service 
after December 31, 2008. 
‘‘(c) HYDROGEN FUEL COSTS CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the hydrogen fuel costs credit determined under 
this subsection with respect to each eligible hydrogen 
device of the taxpayer is an amount equal to the 
qualified hydrogen expenditure amounts with respect 
to such device. 
‘‘(2) QUALIFIED
HYDROGEN
EXPENDITURE 
AMOUNT.—For purposes of this subsection— 
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124 
‘‘(A) IN
GENERAL.—The term ‘qualified 
hydrogen expenditure amount’ means, with re-
spect to each eligible hydrogen energy conver-
sion device of the taxpayer with a production 
capacity of not more than 25 kilowatts of elec-
tricity per year, the lesser of— 
‘‘(i) 30 percent of the amount paid or 
incurred by the taxpayer during the tax-
able year for hydrogen which is consumed 
by such device, and 
‘‘(ii) $2,000. 
In the case of any device which is not owned by 
the taxpayer at all times during the taxable 
year, the $2,000 amount in subparagraph (B) 
shall be reduced by an amount which bears the 
same ratio to $2,000 as the portion of the year 
which such device is not owned by the taxpayer 
bears to the entire year. 
‘‘(B) HIGHER
LIMITATION
FOR
DEVICES 
WITH
MORE
PRODUCTION
CAPACITY.—In the 
case of any eligible hydrogen energy conversion 
device with a production capacity of— 
‘‘(i) more than 25 but less than 100 
kilowatts of electricity per year, subpara-
graph (A) shall be applied by substituting 
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125 
‘$4,000’ for ‘$2,000’ each place it appears; 
and 
‘‘(ii) not less than 100 kilowatts of 
electricity per year, subparagraph (A) shall 
be applied by substituting ‘$6,000’ for 
‘$2,000’ each place it appears. 
‘‘(3) ELIGIBLE
HYDROGEN
ENERGY
CONVER-
SION DEVICES.—For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘eligible hy-
drogen energy conversion device’ means, with 
respect to any taxpayer, any hydrogen energy 
conversion device which— 
‘‘(i) is placed in service after Decem-
ber 31, 2004; and 
‘‘(ii) is wholly owned by the taxpayer 
during the taxable year. 
If an owner of a device (determined without re-
gard to this subparagraph) provides to the pri-
mary user of such device a written statement 
that such user shall be treated as the owner of 
such device for purposes of this section, then 
such user (and not such owner) shall be so 
treated. 
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126 
‘‘(B) HYDROGEN
ENERGY
CONVERSION 
DEVICE.—The term ‘hydrogen energy conver-
sion device’ means— 
‘‘(i) any electrochemical device which 
converts hydrogen into electricity; and 
‘‘(ii) any combustion engine which 
burns hydrogen as a fuel. 
‘‘(d) REDUCTION IN BASIS.—For purposes of this 
subtitle, if a credit is allowed under this section for any 
expenditure with respect to any property, the increase in 
the basis of such property which would (but for this para-
graph) result from such expenditure shall be reduced by 
the amount of the credit so allowed. 
‘‘(e) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is attributable to amounts which (but 
for subsection (g) would be allowed as a deduction 
under section 162 shall be treated as a credit listed 
in section 38(b) for such taxable year (and not al-
lowed under subsection (a)). 
‘‘(2) PERSONAL
CREDIT.—The credit allowed 
under subsection (a) (after the application of para-
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127 
graph (1)) for any taxable year shall not exceed the 
excess (if any) of— 
‘‘(A) the regular tax liability (as defined in 
section 26(b)) reduced by the sum of the credits 
allowable under subpart A and sections 27, 30, 
30B, and 30C, over 
‘‘(B) the tentative minimum tax for the 
taxable year. 
‘‘(f) DENIAL OF DOUBLE BENEFIT.—The amount of 
any deduction or other credit allowable under this chapter 
for any cost taken into account in determining the amount 
of the credit under subsection (a) shall be reduced by the 
amount of such credit attributable to such cost. 
‘‘(g) RECAPTURE.—The Secretary shall, by regula-
tions, provided for recapturing the benefit of any credit 
allowable under subsection (a) with respect to any prop-
erty which ceases to be property eligible for such credit. 
‘‘(h) ELECTION NOT TO TAKE CREDIT.—No credit 
shall be allowed under subsection (a) for any property if 
the taxpayer elects not to have this section apply to such 
property. 
‘‘(i) REGULATIONS.—The Secretary shall prescribe 
such regulations as necessary to carry out the provisions 
of this section. 
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128 
‘‘(j) TERMINATION.—This section shall not apply to 
any costs after December 31, 2012.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b), as amended by this Act, is 
amended by striking ‘‘plus’’ at the end of paragraph 
(35), by striking the period at the end of paragraph 
(36) and inserting ‘‘plus’’, and by adding at the end 
the following new paragraph: 
‘‘(37) the portion of the hydrogen installation, 
infrastructure, and fuel credit to which section 
30F(e)(1) applies.’’. 
(2) Section 55(c)(3), as amended by this Act, is 
amended 
by 
inserting 
‘‘30F(e)(2),’’ 
after 
‘‘30C(d)(2),’’. 
(3) Section 1016(a), as amended by this Act, is 
amended by striking ‘‘and’’ at the end of paragraph 
(38), by striking the period at the end of paragraph 
(39) and inserting ‘‘, and’’, and by adding at the 
end the following new paragraph: 
‘‘(40) to the extent provided in section 
30F(d).’’. 
(4) Section 6501(m), as amended by this Act, 
is 
amended 
by 
inserting 
‘‘30F(h),’’ 
after 
‘‘30E(c)(3),’’. 
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129 
(5) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 30E the fol-
lowing new item: 
‘‘Sec. 30F. Hydrogen installation, infrastructure, and fuel costs.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
SEC. 538. ALTERNATIVE FUEL VEHICLE REFUELING PROP-
ERTY CREDIT. 
(a) INCREASE IN CREDIT AMOUNT.—Section 30C is 
amended— 
(1) by striking ‘‘30 percent’’ in subsection (a) 
and inserting ‘‘50 percent’’, and 
(2) by striking ‘‘$30,000’’ in subsection (b)(1) 
and inserting ‘‘$50,000’’. 
(b) EXTENSION OF CREDIT.—Paragraph (2) of sec-
tion 30C(g) is amended by striking ‘‘December 31, 2009’’ 
and inserting ‘‘December 31, 2012’’. 
(c) INCLUSION OF ELECTRICITY AS A CLEAN-BURN-
ING FUEL.—Section 30C(c)(2) is amended by adding at 
the end the following new subparagraph: 
‘‘(C) Electricity.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
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130 
the date of the enactment of this Act, in taxable years 
ending after such date. 
SEC. 539. CERTAIN INCOME AND GAINS RELATING TO AL-
COHOL FUELS AND MIXTURES, BIODIESEL 
FUELS AND MIXTURES, AND ALTERNATIVE 
FUELS AND MIXTURES TREATED AS QUALI-
FYING 
INCOME 
FOR 
PUBLICLY 
TRADED 
PARTNERSHIPS. 
(a) IN GENERAL.—Subparagraph (E) of section 
7704(d)(1) is amended by inserting ‘‘, or the transpor-
tation, storage, or marketing of any fuel described in sub-
section (b), (c), (d), or (e) of section 6426, or any alcohol 
fuel defined in section 6426(b)(4)(A) or any biodiesel fuel 
as defined in section 40A(d)(1)’’ after ‘‘timber)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act, in taxable years ending after such date. 
Subtitle C—Other Provisions 
PART I—GENERAL PROVISIONS 
SEC. 541. ENERGY EFFICIENCY AND CONSERVATION BLOCK 
GRANTS. 
Section 544 of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17154) is amended— 
(1) in paragraph (13), by striking ‘‘and’’ at the 
end; 
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131 
(2) by redesignating paragraph (14) as para-
graph (15); and 
(3) by inserting after paragraph (13) the fol-
lowing: 
‘‘(14) development, implementation, and instal-
lation of smart grid technologies and smart grid 
functions (as defined in section 1306(d)); and’’. 
SEC. 542. WEATHERIZATION ASSISTANCE PROGRAM FOR 
LOW-INCOME PERSONS. 
(a) IN GENERAL.—Section 422 of the Energy Con-
servation and Production Act (42 U.S.C. 6872) is amend-
ed— 
(1) by striking the section heading and all that 
follows through ‘‘For the purpose’’ and inserting the 
following: 
‘‘SEC. 422 FUNDING. 
‘‘(a) DISCRETIONARY FUNDING.—For the purpose’’; 
(1) by striking ‘‘fiscal year 2008’’ and inserting 
‘‘each of fiscal years 2008 through 2012’’; and 
(2) by adding at the end the following: 
‘‘(b) MANDATORY FUNDING.— 
‘‘(1) IN GENERAL.—In addition to any amounts 
made available under subsection (a), on October 1, 
2008, and on each October 1 thereafter through Oc-
tober 1, 2011, out of any funds in the Treasury not 
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132 
otherwise appropriated, the Secretary of the Treas-
ury shall transfer to the Secretary to carry out this 
part $500,000,000, to remain available until ex-
pended. 
‘‘(2) RECEIPT
AND
ACCEPTANCE.—The Sec-
retary shall be entitled to receive, shall accept, and 
shall use to carry out this part the funds transferred 
under paragraph (1), without further appropria-
tion.’’. 
(b) CONFORMING AMENDMENTS.—Section 415 of the 
Energy Conservation and Production Act (42 U.S.C. 
6865) is amended by striking ‘‘section 422(b)’’ each place 
it appears in subsections (d) and (e)(1)(A) and inserting 
‘‘section 422’’. 
SEC. 543. RENEWABLE ENERGY WORKFORCE. 
Section 1101 of the Energy Policy Act of 2005 (42 
U.S.C. 16411) is amended— 
(1) in subsection (b)(1)— 
(A) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (B), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(D) renewable energy product and service 
industries.’’; 
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153 
designating subparagraph (E) as subparagraph 
(D). 
(f) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall take effect on the date of the en-
actment of this Act. 
(2) ALLOWANCE AGAINST ALTERNATIVE MIN-
IMUM TAX.—The amendments made by subsection 
(b) shall apply to credits determined under section 
46 of the Internal Revenue Code of 1986 in taxable 
years beginning after the date of the enactment of 
this Act and to carrybacks of such credits. 
(3) COMBINED HEAT AND POWER AND FUEL 
CELL PROPERTY.—The amendments made by sub-
sections (c) and (d) shall apply to periods after the 
date of the enactment of this Act, in taxable years 
ending after such date, under rules similar to the 
rules of section 48(m) of the Internal Revenue Code 
of 1986 (as in effect on the day before the date of 
the enactment of the Revenue Reconciliation Act of 
1990). 
(4) PUBLIC UTILITY PROPERTY.—The amend-
ments made by subsection (e) shall apply to periods 
after February 13, 2008, in taxable years ending 
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154 
after such date, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 
(as in effect on the day before the date of the enact-
ment of the Revenue Reconciliation Act of 1990). 
SEC. 554. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
PROPERTY. 
(a) EXTENSION.—Section 25D(g) is amended by 
striking ‘‘December 31, 2008’’ and inserting ‘‘December 
31, 2014’’. 
(b) MAXIMUM CREDIT FOR SOLAR ELECTRIC PROP-
ERTY.— 
(1) IN
GENERAL.—Section 25D(b)(1)(A) is 
amended by striking ‘‘$2,000’’ and inserting 
‘‘$4,000’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
25D(e)(4)(A)(i) is amended by striking ‘‘$6,667’’ 
and inserting ‘‘$13,333’’. 
(c) CREDIT FOR RESIDENTIAL WIND PROPERTY.— 
(1) IN GENERAL.—Section 25D(a) is amended 
by striking ‘‘and’’ at the end of paragraph (2), by 
striking the period at the end of paragraph (3) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
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155 
‘‘(4) 30 percent of the qualified small wind en-
ergy property expenditures made by the taxpayer 
during such year.’’. 
(2) LIMITATION.—Section 25D(b)(1) is amend-
ed by striking ‘‘and’’ at the end of subparagraph 
(B), by striking the period at the end of subpara-
graph (C) and inserting ‘‘, and’’, and by adding at 
the end the following new subparagraph: 
‘‘(D) $500 with respect to each half kilo-
watt of capacity (not to exceed $4,000) of wind 
turbines for which qualified small wind energy 
property expenditures are made.’’. 
(3) QUALIFIED
SMALL
WIND
ENERGY
PROP-
ERTY EXPENDITURES.— 
(A) IN
GENERAL.—Section 25D(d) is 
amended by adding at the end the following 
new paragraph: 
‘‘(4) QUALIFIED SMALL WIND ENERGY PROP-
ERTY
EXPENDITURE.—The term ‘qualified small 
wind energy property expenditure’ means an expend-
iture for property which uses a wind turbine to gen-
erate electricity for use in connection with a dwelling 
unit located in the United States and used as a resi-
dence by the taxpayer.’’. 
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