I 
109TH CONGRESS 
2D SESSION 
H. R. 5926 
To provide for the energy independence of the United States. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2006 
Ms. BERKLEY introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Re-
sources, Energy and Commerce, and Science, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To provide for the energy independence of the United States. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Freedom through Re-
newable Energy Expansion (FREE) Act’’. 
SEC. 2. REPEAL OF NUCLEAR SUBSIDIES. 
(a) 
NEXT
GENERATION
NUCLEAR
PLANT 
PROJECT.—Subtitle C of title VI of the Energy Policy Act 
of 2005 (42 U.S.C. 16021 et. seq.) and the items relating 
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thereto in the table of contents in section 1(b) of that Act 
are repealed. 
(b) STANDBY SUPPORT
FOR CERTAIN NUCLEAR 
PLANT DELAYS.—Section 638 of the Energy Policy Act 
of 2005 (42 U.S.C. 16014) and the item relating thereto 
in the table of contents in section 1(b) of that Act are 
repealed. 
(c) REPEAL OF CREDIT FOR PRODUCTION FROM AD-
VANCED NUCLEAR POWER FACILITIES.— 
(1) IN GENERAL.—Subparagraph (B) of section 
45J(d)(1) of the Internal Revenue Code of 1986 (re-
lating to advanced nuclear power facility) is amend-
ed by striking ‘‘January 1, 2021’’ and inserting ‘‘the 
date of the enactment of the Freedom through Re-
newable Energy Expansion (FREE) Act’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to property placed in 
service after the date of the enactment of this Act. 
SEC. 3. REPEAL OF CERTAIN TAX SUBSIDIES FOR THE OIL 
AND GAS INDUSTRY. 
(a) REPEAL OF ELECTION TO EXPENSE CERTAIN 
REFINERIES.— 
(1) IN GENERAL.—Subparagraph (B) of section 
179C(c)(1) of the Internal Revenue Code of 1986 
(relating to qualified refinery property) is amended 
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by striking ‘‘January 1, 2012’’ and inserting ‘‘the 
date of the enactment of the Freedom through Re-
newable Energy Expansion (FREE) Act’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to property placed in 
service after the date of the enactment of this Act. 
(b) REPEAL OF TREATMENT OF NATURAL GAS DIS-
TRIBUTION LINES AS 15-YEAR PROPERTY.— 
(1) IN
GENERAL.—Clause (viii) of section 
168(e)(3)(E) of such Code (relating to 15-year prop-
erty) is amended by striking ‘‘January 1, 2011’’ and 
inserting ‘‘the Freedom through Renewable Energy 
Expansion (FREE) Act’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to property placed in 
service after the date of the enactment of this Act. 
(c) REPEAL
OF TREATMENT
OF NATURAL GAS 
GATHERING LINES AS 7-YEAR PROPERTY.— 
(1) IN
GENERAL.—Clause (iv) of section 
168(e)(3)(C) of such Code (relating to 7-year prop-
erty) is amended by inserting ‘‘and which is placed 
in service before the date of the enactment of the 
Freedom through Renewable Energy Expansion 
(FREE) Act’’ after ‘‘April 11, 2005,’’. 
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(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to property placed in 
service after the date of the enactment of this Act. 
(d) REPEAL
OF NEW RULE
FOR DETERMINING 
SMALL REFINER EXCEPTION TO OIL DEPLETION DEDUC-
TION.— 
(1) IN
GENERAL.—Paragraph (4) of section 
613A(d) of such Code (relating to certain refiners 
excluded) is amended to read as follows: 
‘‘(4) CERTAIN
REFINERS
EXCLUDED.—If the 
taxpayer or a related person engages in the refining 
of crude oil, subsection (c) shall not apply to such 
taxpayer if on any day during the taxable year the 
refinery runs of the taxpayer and such person exceed 
50,000 barrels.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to taxable years begin-
ning after the date of the enactment of this Act. 
(e) REPEAL OF AMORTIZATION OF GEOLOGICAL AND 
GEOPHYSICAL EXPENDITURES.— 
(1) IN GENERAL.—Section 167 of such Code 
(relating to depreciation) is amended by striking 
subsection (h) and redesignating subsection (i) as 
subsection (h). 
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(2) 
CONFORMING
AMENDMENT.—Section 
263A(c)(3) of such Code is amended by striking 
‘‘167(h),’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after the date of the enactment of this Act. 
SEC. 4. REPEAL OF CERTAIN PROVISIONS OF THE ENERGY 
POLICY ACT OF 2005 AND OTHER LAWS PRO-
VIDING INCENTIVES FOR OIL AND GAS PRO-
DUCTION FROM FEDERAL LANDS. 
(a) REPEALS.—The following provisions of the En-
ergy Policy Act of 2005, and the items relating thereto 
in the table of contents in section 1(b) of that Act, are 
repealed: 
(1) Section 343 (relating to marginal property 
production incentives). 
(2) Section 344 (relating to incentives for nat-
ural gas production from deep wells in the shallow 
waters of the Gulf of Mexico). 
(3) Section 345 (relating to royalty relief for 
deep water production). 
(4) Section 357 (relating to comprehensive in-
ventory of OCS oil and natural gas resources). 
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(5) Section 362 (relating to management of 
Federal oil and gas leasing programs, including ex-
pediting leases and permit applications). 
(6) Section 965 (relating to oil and gas re-
search programs). 
(7) Section 966 (relating to low-volume oil and 
gas reservoir research program). 
(8) Subtitle J of title IX (relating to ultra-deep-
water and unconventional natural gas and other pe-
troleum resources). 
(b) REPEAL OF ALASKA OFFSHORE ROYALTY SUS-
PENSION.—Section 8(a)(3)(B) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended 
by striking ‘‘and in the Planning Areas offshore Alaska’’. 
(c) REPEAL OF ROYALTY SUSPENSION WITH RE-
SPECT TO NATIONAL PETROLEUM RESERVE IN ALAS-
KA.—Section 107 of the Naval Petroleum Reserves Pro-
duction Act of 1976 (as amended by section 347(b)(11) 
of the Energy Policy Act of 2005 (119 Stat. 706)) is 
amended by repealing subsection (k). 
(d) CONFORMING AMENDMENT.—Section 961(c) of 
the Energy Policy Act of 2005 (42 U.S.C. 16291(c)) is 
amended by striking paragraph (3) and redesignating 
paragraph (4) as paragraph (3). 
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SEC. 5. REQUIREMENT TO SUSPEND ROYALTY RELIEF. 
(a) REQUIREMENT
TO SUSPEND.—The President 
shall suspend the application of any provision of Federal 
law under which any person is given relief from any re-
quirement to pay royalty for production oil or natural gas 
from Federal lands (including submerge lands), for pro-
duction occurring in any period with respect to which— 
(1) in the case of production of oil, the average 
price of crude oil in the United States over the most 
recent 4 consecutive weeks is greater than $40 per 
barrel, or such lesser amount as applies for such 
purpose under the lease under which such produc-
tion occurs; and 
(2) in the case of production of natural gas, the 
average wellhead price of natural gas in the United 
States over the most recent 4 consecutive weeks is 
greater than $5 per thousand cubic feet, or such 
lesser amount as applies for such purpose under the 
lease under which such production occurs. 
(b) DETERMINATION
OF
MARKET
PRICE.—The 
President shall determine average prices for purposes of 
subsection (a) based on the most recent data reported by 
the Energy Information Administration of the Depart-
ment of Energy. 
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SEC. 6. AVERAGE FUEL ECONOMY STANDARDS. 
(a) IN GENERAL.—Section 32902 of title 49, United 
States Code, is amended— 
(1) in subsection (c)— 
(A) by striking ‘‘(1) Subject to paragraph 
(2) of this subsection, the’’ and inserting 
‘‘The’’; and 
(B) by striking paragraph (2); and 
(2) by redesignating subsections (i) and (j) as 
subsections (j) and (k), respectively, and by inserting 
after subsection (h) the following: 
‘‘(i) STANDARDS FOR MODEL YEARS AFTER 2008.— 
The Secretary of Transportation shall prescribe by regula-
tion average fuel economy standards for passenger auto-
mobiles manufactured by a manufacturer in model years 
after model year 2008, that shall— 
‘‘(1) ensure that the average fuel economy 
achieved by passenger automobiles manufactured by 
a manufacturer in model years after 2015 is no less 
than 33 miles per gallon; 
‘‘(2) ensure that improvements to fuel economy 
standards do not degrade the safety of passenger 
automobiles manufactured by a manufacturer; and 
‘‘(3) maximize the retention of jobs in the auto-
mobile manufacturing sector of the United States.’’. 
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(b) CONFORMING AMENDMENTS.—Section 32902 of 
title 49, United States Code, is further amended— 
(1) in subsection (g)(2), by striking ‘‘(and sub-
mit the amendment to Congress when required 
under subsection (c)(2) of this section)’’; and 
(2) in subsection (k) (as so redesignated) by 
striking ‘‘or (g)’’ and inserting ‘‘(g), or (i)’’. 
SEC. 7. RENEWABLE ELECTRICITY PRODUCTION CREDIT. 
(a) IN GENERAL.—Section 45(d) of the Internal Rev-
enue Code of 1986 (relating to qualified facilities) is 
amended by striking ‘‘January 1, 2008’’ each place it ap-
pears in paragraphs (1), (2), (3), (4), (5), (6), and (7) 
and inserting ‘‘January 1, 2012’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to property placed in service 
after the date of the enactment of this Act. 
SEC. 8. EXTENSION AND MODIFICATION OF INVESTMENT 
TAX CREDIT WITH RESPECT TO SOLAR EN-
ERGY PROPERTY, QUALIFIED FUEL CELL 
PROPERTY, AND GEOTHERMAL PROPERTY. 
(a) 
SOLAR
ENERGY
PROPERTY.—Paragraphs 
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal 
Revenue Code of 1986 are each amended by striking 
‘‘January 1, 2008’’ and inserting ‘‘January 1, 2016’’. 
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(b) ELIGIBLE FUEL CELL PROPERTY.—Paragraph 
(1)(E) of section 48(c) of such Code is amended by strik-
ing ‘‘December 31, 2007’’ and inserting ‘‘December 31, 
2015’’. 
(c) GEOTHERMAL PROPERTY.—Paragraph (2)(A)(i) 
of section 48(a) of such Code is amended by striking 
‘‘and’’ at the end of subclause (II) and by adding at the 
end the following new subclause: 
‘‘(IV) energy property described 
in paragraph (3)(A)(iii) but only with 
respect to periods ending before Janu-
ary 1, 2016, and’’. 
(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. 
SEC. 9. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY 
EFFICIENT PROPERTY. 
(a) EXTENSION.—Subsection (g) of section 25D of 
the Internal Revenue Code of 1986 (relating to termi-
nation) is amended by striking ‘‘December 31, 2007’’ and 
inserting ‘‘December 31, 2015’’. 
(b) 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. 10. CREDIT FOR WIND ENERGY PROPERTY INSTALLED 
IN RESIDENCES AND BUSINESSES. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 30C the fol-
lowing new section: 
‘‘SEC. 30D. WIND ENERGY PROPERTY. 
‘‘(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 30 percent (10 
percent after December 31, 2015) of the amount paid or 
incurred by the taxpayer for qualified wind energy prop-
erty placed in service or installed during such taxable year. 
‘‘(b) LIMITATION.—No credit shall be allowed under 
subsection (a) unless at least 50 percent of the energy pro-
duced annually by the qualified wind energy property is 
consumed on the site on which the property is placed in 
service or installed. 
‘‘(c) QUALIFIED WIND ENERGY PROPERTY.—For 
purposes of this section, the term qualified wind energy 
property means a qualifying wind turbine if— 
‘‘(1) such turbine is placed in service or in-
stalled on or in connection with property located in 
the United States, 
‘‘(2) in the case of an individual, the property 
on or in connection with which such turbine is in-
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stalled is a dwelling unit which is located in the 
United States, 
‘‘(3) the original use of such turbine commences 
with the taxpayer, and 
‘‘(4) such turbine carries at least a 5-year lim-
ited warranty covering defects in design, material, or 
workmanship, and, for property that is not installed 
by the taxpayer, at least a 5-year limited warranty 
covering defects in installation. 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section: 
‘‘(1) QUALIFYING WIND TURBINE.—The term 
qualifying wind turbine means a wind turbine of 100 
kilowatts of rated capacity or less which meets the 
latest performance rating standards published by the 
American Wind Energy Association and which is 
used to generate electricity. 
‘‘(2) PRINCIPAL RESIDENCE.—The term prin-
cipal residence shall have the same meaning as when 
used in section 121. 
‘‘(e) LIMITATION BASED ON AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess of— 
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