ing after paragraph (4) the following new para-
graph: 
‘‘(5) LIMITATION TO FUELS WITH CONNECTION 
TO THE UNITED STATES.—No amount shall be pay-
able under paragraph (1) or (2) with respect to any 
mixture or alternative fuel if credit is not allowed 
with respect to such mixture or alternative fuel by 
reason of section 6426(i).’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to fuel produced, and sold or used, after the 
date of the enactment of this Act. 
(2) PROVISIONS
CLARIFYING
TREATMENT
OF 
FUELS WITH NO NEXUS TO THE UNITED STATES.— 
(A) IN GENERAL.—Except as otherwise pro-
vided in this paragraph, the amendments made 
by subsection (c) shall take effect as if included 
in section 301 of the American Jobs Creation Act 
of 2004. 
(B) 
ALTERNATIVE
FUEL
CREDITS.—So 
much of the amendments made by subsection (c) 
as relate to the alternative fuel credit or the al-
ternative fuel mixture credit shall take effect as 
if included in section 11113 of the Safe, Account-
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able, Flexible, Efficient Transportation Equity 
Act: A Legacy for Users. 
(C) RENEWABLE DIESEL.—So much of the 
amendments made by subsection (c) as relate to 
renewable diesel shall take effect as if included in 
section 1346 of the Energy Policy Act of 2005. 
TITLE IV—OTHER PROVISIONS 
Subtitle A—Studies 
SEC. 401. CARBON AUDIT OF THE TAX CODE. 
(a) STUDY.—The Secretary of the Treasury shall enter 
into an agreement with the National Academy of Sciences 
to undertake a comprehensive review of the Internal Rev-
enue Code of 1986 to identify the types of and specific tax 
provisions that have the largest effects on carbon and other 
greenhouse gas emissions and to estimate the magnitude of 
those effects. 
(b) REPORT.—Not later than 2 years after the date 
of enactment of this Act, the National Academy of Sciences 
shall submit to Congress a report containing the results of 
study authorized under this section. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$1,500,000 for the period of fiscal years 2008 and 2009. 
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SEC. 402. COMPREHENSIVE STUDY OF BIOFUELS. 
(a) STUDY.—The Secretary of the Treasury, in con-
sultation with the Secretary of Agriculture, the Secretary 
of Energy, and the Administrator of the Environmental 
Protection Agency, shall enter into an agreement with the 
National Academy of Sciences to produce an analysis of 
current scientific findings to determine— 
(1) current biofuels production, as well as projec-
tions for future production, 
(2) the maximum amount of biofuels production 
capable on United States farmland, 
(3) the domestic effects of a dramatic increase in 
biofuels production on, for example— 
(A) the price of fuel, 
(B) the price of land in rural and suburban 
communities, 
(C) crop acreage and other land use, 
(D) the environment, due to changes in crop 
acreage, fertilizer use, runoff, water use, emis-
sions from vehicles utilizing biofuels, and other 
factors, 
(E) the price of feed, 
(F) the selling price of grain crops, 
(G) exports and imports of grains, 
(H) taxpayers, through cost or savings to 
commodity crop payments, and 
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100 
(I) the expansion of refinery capacity, 
(4) the ability to convert corn ethanol plants for 
other uses, such as cellulosic ethanol or biodiesel, 
(5) a comparative analysis of corn ethanol 
versus other biofuels and renewable energy sources, 
considering cost, energy output, and ease of imple-
mentation, and 
(6) the need for additional scientific inquiry, 
and specific areas of interest for future research. 
(b) REPORT.—The National Academy of Sciences shall 
submit an initial report of the findings of the report re-
quired under subsection (a) to the Congress not later than 
3 months after the date of the enactment of this Act, and 
a final report not later than 6 months after such date of 
enactment. 
Subtitle B—Application of Certain 
Labor Standards on Projects Fi-
nanced Under Tax Credit Bonds 
SEC. 411. APPLICATION OF CERTAIN LABOR STANDARDS ON 
PROJECTS FINANCED UNDER TAX CREDIT 
BONDS. 
Subchapter IV of chapter 31 of title 40, United States 
Code, shall apply to projects financed with the proceeds of 
any tax credit bond (as defined in section 54A of the Inter-
nal Revenue Code of 1986). 
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Union Calendar No. 130 
110TH CONGRESS 
1ST SESSION 
H. R. 2776 
[Report No. 110–214] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
provide tax incentives for the production of re-
newable energy and energy conservation. 
JUNE 27, 2007 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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