119 
(b) OTHER ASSISTANCE.—At the request of a gov-
ernor of a State, or in the case of Native American tribes 
or tribal territories the designated leader of the tribe or 
tribal community, a Federal agency responsible for a Fed-
eral refinery authorization shall provide technical, legal, 
or other nonfinancial assistance to that State or tribe or 
tribal community to facilitate its consideration of Federal 
refinery authorizations. 
SEC. 234. REFINERY PROCESS COORDINATION AND PROCE-
DURES. 
(a) APPOINTMENT OF FEDERAL COORDINATOR.— 
(1) IN GENERAL.—The President shall appoint 
a Federal coordinator to perform the responsibilities 
assigned to the Federal coordinator under this sub-
title. 
(2) OTHER
AGENCIES.—Each Federal and 
State agency or official required to provide a Fed-
eral refinery authorization shall cooperate with the 
Federal coordinator. 
(b) FEDERAL REFINERY AUTHORIZATIONS.— 
(1) MEETING PARTICIPANTS.—Not later than 
30 days after receiving a notification from an appli-
cant that the applicant is seeking a Federal refinery 
authorization pursuant to Federal law, the Federal 
coordinator appointed under subsection (a) shall 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00119
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
120 
convene a meeting of representatives from all Fed-
eral and State agencies responsible for a Federal re-
finery authorization with respect to the refinery. The 
governor of a State shall identify each agency of 
that State that is responsible for a Federal refinery 
authorization with respect to that refinery. 
(2) MEMORANDUM OF AGREEMENT.—(A) Not 
later than 90 days after receipt of a notification de-
scribed in paragraph (1), the Federal coordinator 
and the other participants at a meeting convened 
under paragraph (1) shall establish a memorandum 
of agreement setting forth the most expeditious co-
ordinated schedule possible for completion of all 
Federal refinery authorizations with respect to the 
refinery, consistent with the full substantive and 
procedural review required by Federal law. If a Fed-
eral or State agency responsible for a Federal refin-
ery authorization with respect to the refinery is not 
represented at such meeting, the Federal coordinator 
shall ensure that the schedule accommodates those 
Federal refinery authorizations, consistent with Fed-
eral law. In the event of conflict among Federal re-
finery authorization scheduling requirements, the re-
quirements of the Environmental Protection Agency 
shall be given priority. 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00120
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
121 
(B) Not later than 15 days after completing the 
memorandum of agreement, the Federal coordinator 
shall publish the memorandum of agreement in the 
Federal Register. 
(C) The Federal coordinator shall ensure that 
all parties to the memorandum of agreement are 
working in good faith to carry out the memorandum 
of agreement, and shall facilitate the maintenance of 
the schedule established therein. 
(c) CONSOLIDATED RECORD.—The Federal coordi-
nator shall, with the cooperation of Federal and State ad-
ministrative agencies and officials, maintain a complete 
consolidated record of all decisions made or actions taken 
by the Federal coordinator or by a Federal administrative 
agency or officer (or State administrative agency or officer 
acting under delegated Federal authority) with respect to 
any Federal refinery authorization. Such record shall be 
the record for judicial review under subsection (d) of deci-
sions made or actions taken by Federal and State adminis-
trative agencies and officials, except that, if the Court de-
termines that the record does not contain sufficient infor-
mation, the Court may remand the proceeding to the Fed-
eral coordinator for further development of the consoli-
dated record. 
(d) REMEDIES.— 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00121
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
122 
(1) IN GENERAL.—The United States District 
Court for the district in which the proposed refinery 
is located shall have exclusive jurisdiction over any 
civil action for the review of the failure of an agency 
or official to act on a Federal refinery authorization 
in accordance with the schedule established pursuant 
to the memorandum of agreement. 
(2) STANDING.—If an applicant or a party to 
a memorandum of agreement alleges that a failure 
to act described in paragraph (1) has occurred and 
that such failure to act would jeopardize timely com-
pletion of the entire schedule as established in the 
memorandum of agreement, such applicant or other 
party may bring a cause of action under this sub-
section. 
(3) COURT ACTION.—If an action is brought 
under paragraph (2), the Court shall review whether 
the parties to the memorandum of agreement have 
been acting in good faith, whether the applicant has 
been cooperating fully with the agencies that are re-
sponsible for issuing a Federal refinery authoriza-
tion, and any other relevant materials in the consoli-
dated record. Taking into consideration those fac-
tors, if the Court finds that a failure to act de-
scribed in paragraph (1) has occurred, and that such 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00122
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
123 
failure to act would jeopardize timely completion of 
the entire schedule as established in the memo-
randum of agreement, the Court shall establish a 
new schedule that is the most expeditious coordi-
nated schedule possible for completion of pro-
ceedings, consistent with the full substantive and 
procedural review required by Federal law. The 
court may issue orders to enforce any schedule it es-
tablishes under this paragraph. 
(4) FEDERAL COORDINATOR’S ACTION.—When 
any civil action is brought under this subsection, the 
Federal coordinator shall immediately file with the 
Court the consolidated record compiled by the Fed-
eral coordinator pursuant to subsection (c). 
(5) EXPEDITED REVIEW.—The Court shall set 
any civil action brought under this subsection for ex-
pedited consideration. 
SEC. 235. DESIGNATION OF CLOSED MILITARY BASES. 
(a) DESIGNATION REQUIREMENT.—Not later than 
90 days after the date of enactment of this Act, the Presi-
dent shall designate no less than 3 closed military installa-
tions, or portions thereof, as potentially suitable for the 
construction of a refinery. At least 1 such site shall be 
designated as potentially suitable for construction of a re-
finery to refine biomass in order to produce biofuel. 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00123
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
124 
(b) REDEVELOPMENT AUTHORITY.—The redevelop-
ment authority for each installation designated under sub-
section (a), in preparing or revising the redevelopment 
plan for the installation, shall consider the feasibility and 
practicability of siting a refinery on the installation. 
(c) MANAGEMENT AND DISPOSAL OF REAL PROP-
ERTY.—The Secretary of Defense, in managing and dis-
posing of real property at an installation designated under 
subsection (a) pursuant to the base closure law applicable 
to the installation, shall give substantial deference to the 
recommendations of the redevelopment authority, as con-
tained in the redevelopment plan for the installation, re-
garding the siting of a refinery on the installation. The 
management and disposal of real property at a closed mili-
tary installation or portion thereof found to be suitable 
for the siting of a refinery under subsection (a) shall be 
carried out in the manner provided by the base closure 
law applicable to the installation. 
(d) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘base closure law’’ means the De-
fense Base Closure and Realignment Act of 1990 
(part A of title XXIX of Public Law 101–510; 10 
U.S.C. 2687 note) and title II of the Defense Au-
thorization Amendments and Base Closure and Re-
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00124
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
126 
SEC. 302. GOVERNMENT AUCTION OF LONG TERM PUT OP-
TION CONTRACTS ON COAL-TO-LIQUID FUEL 
PRODUCED BY QUALIFIED COAL-TO-LIQUID 
FACILITIES. 
(a) IN GENERAL.—The Secretary shall, from time to 
time, auction to the public coal-to-liquid fuel put option 
contracts having expiration dates of 5 years, 10 years, 15 
years, or 20 years. 
(b) CONSULTATION
WITH
SECRETARY
OF
EN-
ERGY.—The Secretary shall consult with the Secretary of 
Energy regarding— 
(1) the frequency of the auctions; 
(2) the strike prices specified in the contracts; 
(3) the number of contracts to be auctioned 
with a given strike price and expiration date; and 
(4) the capacity of existing or planned facilities 
to produce coal-to-liquid fuel. 
(c) DEFINITIONS.—In this section: 
(1) COAL-TO-LIQUID FUEL.—The term ‘‘coal-to- 
liquid fuel’’ means any transportation-grade liquid 
fuel derived primarily from coal (including peat) and 
produced at a qualified coal-to-liquid facility. 
(2) COAL-TO-LIQUID PUT OPTION CONTRACT.— 
The term ‘‘coal-to-liquid put option contract’’ means 
a contract, written by the Secretary, which— 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00126
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
127 
(A) gives the holder the right (but not the 
obligation) to sell to the Government of the 
United States a certain quantity of a specific 
type of coal-to-liquid fuel produced by a quali-
fied coal-to-liquid facility specified in the con-
tract, at a strike price specified in the contract, 
on or before an expiration date specified in the 
contract; and 
(B) is transferable by the holder to any 
other entity. 
(3) QUALIFIED
COAL-TO-LIQUID
FACILITY.— 
The term ‘‘qualified coal-to-liquid facility’’ means a 
manufacturing facility that has the capacity to 
produce at least 10,000 barrels per day of transpor-
tation grade liquid fuels from a feedstock that is pri-
marily domestic coal (including peat and any prop-
erty which allows for the capture, transportation, or 
sequestration of by-products resulting from such 
process, including carbon emissions). 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(5) STRIKE PRICE.—The term ‘‘strike price’’ 
means, with respect to a put option contract, the 
price at which the holder of the contract has the 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00127
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
128 
right to sell the fuel which is the subject of the con-
tract. 
(d) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out this 
section. 
(e) EFFECTIVE DATE.—This section shall take effect 
1 year after the date of the enactment of this Act. 
SEC. 303. STANDBY LOANS FOR QUALIFYING COAL-TO-LIQ-
UIDS PROJECTS. 
Section 1702 of the Energy Policy Act of 2005 (42 
U.S.C. 16512) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) STANDBY
LOANS
FOR
QUALIFYING
CTL 
PROJECTS.— 
‘‘(1) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) CAP
PRICE.—The term ‘cap price’ 
means a market price specified in the standby 
loan agreement above which the project is re-
quired to make payments to the United States. 
‘‘(B) FULL TERM.—The term ‘full term’ 
means the full term of a standby loan agree-
ment, as specified in the agreement, which shall 
not exceed the lesser of 30 years or 90 percent 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00128
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
129 
of the projected useful life of the project (as de-
termined by the Secretary). 
‘‘(C) MARKET PRICE.—The term ‘market 
price’ means the average quarterly price of a 
petroleum price index specified in the standby 
loan agreement. 
‘‘(D) MINIMUM
PRICE.—The term ‘min-
imum price’ means a market price specified in 
the standby loan agreement below which the 
United States is obligated to make disburse-
ments to the project. 
‘‘(E) OUTPUT.—The term ‘output’ means 
some or all of the liquid or gaseous transpor-
tation fuels produced from the project, as speci-
fied in the loan agreement. 
‘‘(F) PRIMARY TERM.—The term ‘primary 
term’ means the initial term of a standby loan 
agreement, as specified in the agreement, which 
shall not exceed the lesser of 20 years or 75 
percent of the projected useful life of the 
project (as determined by the Secretary). 
‘‘(G) QUALIFYING
CTL
PROJECT.—The 
term ‘qualifying CTL project’ means— 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00129
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
130 
‘‘(i) a commercial-scale project that 
converts coal to one or more liquid or gas-
eous transportation fuels; or 
‘‘(ii) not more than one project at a 
facility that converts petroleum refinery 
waste products, including petroleum coke, 
into one or more liquids or gaseous trans-
portation fuels, 
that demonstrates the capture, and sequestra-
tion or disposal or use of, the carbon dioxide 
produced in the conversion process, and that, 
on the basis of a carbon dioxide sequestration 
plan prepared by the applicant, is certified by 
the Administrator of the Environmental Protec-
tion Agency, in consultation with the Secretary, 
as producing fuel with life cycle carbon dioxide 
emissions at or below the average life cycle car-
bon dioxide emissions for the same type of fuel 
produced at traditional petroleum based facili-
ties with similar annual capacities. 
‘‘(H) STANDBY
LOAN
AGREEMENT.—The 
term ‘standby loan agreement’ means a loan 
agreement entered into under paragraph (2). 
‘‘(2) STANDBY LOANS.— 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00130
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
131 
‘‘(A) LOAN
AUTHORITY.—The Secretary 
may enter into standby loan agreements with 
not more than six qualifying CTL projects, at 
least one of which shall be a project jointly or 
in part owned by two or more small coal pro-
ducers. Such an agreement— 
‘‘(i) shall provide that the Secretary 
will make a direct loan (within the mean-
ing of section 502(1) of the Federal Credit 
Reform Act of 1990) to the qualifying 
CTL project; and 
‘‘(ii) shall set a cap price and a min-
imum price for the primary term of the 
agreement. 
‘‘(B) LOAN DISBURSEMENTS.—Such a loan 
shall be disbursed during the primary term of 
such agreement whenever the market price falls 
below the minimum price. The amount of such 
disbursements in any calendar quarter shall be 
equal to the excess of the minimum price over 
the market price, times the output of the 
project (but not more than a total level of dis-
bursements specified in the agreement). 
‘‘(C) LOAN REPAYMENTS.—The Secretary 
shall establish terms and conditions, including 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00131
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
133 
ortized (with interest) over the remainder 
of the full term of the agreement. 
‘‘(3) PROFIT-SHARING.—The Secretary is au-
thorized to enter into a profit-sharing agreement 
with the project at the time the standby loan agree-
ment is executed. Under such an agreement, if the 
market price exceeds the cap price in a calendar 
quarter, a profit-sharing payment shall be made for 
that quarter, in an amount equal to— 
‘‘(A) the excess of the market price over 
the cap price, times the output of the project; 
less 
‘‘(B) any loan repayments made for the 
calendar quarter. 
‘‘(4) COMPLIANCE WITH FEDERAL CREDIT RE-
FORM ACT.— 
‘‘(A) UPFRONT
PAYMENT
OF
COST
OF 
LOAN.—No standby loan agreement may be en-
tered into under this subsection unless the 
project makes a payment to the United States 
that the Office of Management and Budget de-
termines is equal to the cost of such loan (de-
termined under 502(5)(B) of the Federal Credit 
Reform Act of 1990). Such payment shall be 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00133
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
134 
made at the time the standby loan agreement is 
executed. 
‘‘(B) MINIMIZATION OF RISK TO THE GOV-
ERNMENT.—In making the determination of the 
cost of the loan for purposes of setting the pay-
ment for a standby loan under subparagraph 
(A), the Secretary and the Office of Manage-
ment and Budget shall take into consideration 
the extent to which the minimum price and the 
cap price reflect historical patterns of volatility 
in actual oil prices relative to projections of fu-
ture oil prices, based upon publicly available 
data from the Energy Information Administra-
tion, and employing statistical methods and 
analyses that are appropriate for the analysis of 
volatility in energy prices. 
‘‘(C) TREATMENT
OF
PAYMENTS.—The 
value to the United States of a payment under 
subparagraph (A) and any profit-sharing pay-
ments under paragraph (3) shall be taken into 
account for purposes of section 502(5)(B)(iii) of 
the Federal Credit Reform Act of 1990 in de-
termining the cost to the Federal Government 
of a standby loan made under this subsection. 
If a standby loan has no cost to the Federal 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00134
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
135 
Government, the requirements of section 504(b) 
of such Act shall be deemed to be satisfied. 
‘‘(5) OTHER PROVISIONS.— 
‘‘(A) NO DOUBLE BENEFIT.—A project re-
ceiving a loan under this subsection may not, 
during the primary term of the loan agreement, 
receive a Federal loan guarantee under sub-
section (a) of this section, or under other laws. 
‘‘(B) 
SUBROGATION, 
ETC.—Subsections 
(g)(2) (relating to subrogation), (h) (relating to 
fees), and (j) (relating to full faith and credit) 
shall apply to standby loans under this sub-
section to the same extent they apply to loan 
guarantees.’’. 
Subtitle B—Tax Provisions 
SEC. 311. EXTENSION OF RENEWABLE ELECTRICITY, RE-
FINED COAL, AND INDIAN COAL PRODUCTION 
CREDIT. 
(a) CREDIT MADE PERMANENT.— 
(1) IN GENERAL.—Subsection (d) of section 45 
of the Internal Revenue Code of 1986 (relating to 
qualified facilities) is amended— 
(A) by striking ‘‘and before January 1, 
2009’’ each place it occurs, 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00135
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
136 
(B) by striking ‘‘, and before January 1, 
2009’’ in paragraphs (1) and (2)(A)(i), and 
(C) by striking ‘‘before January 1, 2009’’ 
in paragraph (10). 
(2) OPEN-LOOP
BIOMASS
FACILITIES.—Sub-
paragraph (A) of section 45(d)(3) of such Code is 
amended to read as follows: 
‘‘(A) IN GENERAL.—In the case of a facil-
ity using open-loop biomass to produce elec-
tricity, the term ‘qualified facility’ means any 
facility owned by the taxpayer which is origi-
nally placed in service after October 22, 2004.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to electricity produced 
and sold after December 31, 2008, in taxable years 
ending after such date. 
(b) SALES OF NET ELECTRICITY TO REGULATED 
PUBLIC UTILITIES TREATED AS SALES TO UNRELATED 
PERSONS.—Paragraph (4) of section 45(e) of such Code 
is amended by adding at the end the following new sen-
tence: ‘‘The net amount of electricity sold by any taxpayer 
to a regulated public utility (as defined in section 
7701(a)(33)) shall be treated as sold to an unrelated per-
son.’’. 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00136
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
137 
(c) ALLOWANCE AGAINST ALTERNATIVE MINIMUM 
TAX.— 
(1) IN
GENERAL.—Clause (ii) of section 
38(c)(4)(B) of such Code (relating to specified cred-
its) is amended by striking ‘‘produced—’’ and all 
that follows and inserting ‘‘produced at a facility 
which is originally placed in service after the date of 
the enactment of this paragraph.’’. 
(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. 
SEC. 312. EXTENSION OF ENERGY CREDIT. 
(a) 
SOLAR
ENERGY
PROPERTY.—Paragraphs 
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal 
Revenue Code of 1986 (relating to energy credit) are each 
amended by striking ‘‘but only with respect to periods end-
ing before January 1, 2009’’. 
(b) FUEL CELL PROPERTY.—Section 48(c)(1) of 
such Code (relating to qualified fuel cell property) is 
amended by striking subparagraph (E). 
(c) MICROTURBINE PROPERTY.—Subparagraph (E) 
of section 48(c)(2) of the Internal Revenue Code of 1986 
(relating to qualified microturbine property) is amended 
by striking ‘‘December 31, 2008’’ and inserting ‘‘Decem-
ber 31, 2013’’. 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00137
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
138 
(d) ALLOWANCE AGAINST ALTERNATIVE MINIMUM 
TAX.— 
(1) IN GENERAL.—Subparagraph (B) of section 
38(c)(4) of such Code (relating to specified credits) 
is amended by striking ‘‘and’’ at the end of clause 
(iii), by redesignating clause (iv) as clause (v), and 
by inserting after clause (iii) the following new 
clause: 
‘‘(iv) the credit determined under sec-
tion 48, and’’. 
(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. 
SEC. 313. EXTENSION AND MODIFICATION OF CREDIT FOR 
CLEAN RENEWABLE ENERGY BONDS. 
(a) EXTENSION.—Section 54(m) of the Internal Rev-
enue Code of 1986 (relating to termination) is amended 
by striking ‘‘December 31, 2008’’ and inserting ‘‘Decem-
ber 31, 2013’’. 
(b) INCREASE IN NATIONAL LIMITATION.—Section 
54(f) of such Code (relating to limitation on amount of 
bonds designated) is amended— 
(1) by striking ‘‘$1,200,000,000’’ in paragraph 
(1) and inserting ‘‘$1,600,000,000’’, and 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00138
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
139 
(2) by striking ‘‘$750,000,000’’ in paragraph 
(2) and inserting ‘‘$1,000,000,000’’. 
(c) MODIFICATION OF RATABLE PRINCIPAL AMORTI-
ZATION REQUIREMENT.— 
(1) IN
GENERAL.—Paragraph (5) of section 
54(l) of such Code is amended to read as follows: 
‘‘(5) RATABLE PRINCIPAL AMORTIZATION RE-
QUIRED.—A bond shall not be treated as a clean re-
newable energy bond unless it is part of an issue 
which provides for an equal amount of principal to 
be paid by the qualified issuer during each 12-month 
period that the issue is outstanding (other than the 
first 12-month period).’’. 
(2) TECHNICAL AMENDMENT.—The third sen-
tence of section 54(e)(2) of such Code is amended 
by striking ‘‘subsection (l)(6)’’ and inserting ‘‘sub-
section (l)(5)’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
SEC. 314. EXTENSION OF CREDITS FOR BIODIESEL AND RE-
NEWABLE DIESEL. 
(a) IN GENERAL.—Sections 40A(g), 6426(c)(6), and 
6427(e)(5)(B) of the Internal Revenue Code of 1986 are 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00139
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
140 
each amended by striking ‘‘December 31, 2008’’ and in-
serting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel produced, and sold or used, 
after December 31, 2008. 
Subtitle C—Nuclear 
SEC. 321. USE OF FUNDS FOR RECYCLING. 
Section 302 of the Nuclear Waste Policy Act of 1982 
(42 U.S.C. 10222) is amended— 
(1) in subsection (d), by striking ‘‘The Sec-
retary may’’ and inserting ‘‘Except as provided in 
subsection (f), the Secretary may’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(f) RECYCLING.— 
‘‘(1) IN
GENERAL.—Amounts in the Waste 
Fund may be used by the Secretary of Energy to 
make grants to or enter into long-term contracts 
with private sector entities for the recycling of spent 
nuclear fuel. 
‘‘(2) COMPETITIVE
SELECTION.—Grants and 
contracts authorized under paragraph (1) shall be 
awarded on the basis of a competitive bidding proc-
ess that— 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00140
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
141 
‘‘(A) maximizes the competitive efficiency 
of the projects funded; 
‘‘(B) best serves the goal of reducing the 
amount of waste requiring disposal under this 
Act; and 
‘‘(C) ensures adequate protection against 
the proliferation of nuclear materials that could 
be used in the manufacture of nuclear weap-
ons.’’. 
SEC. 322. RULEMAKING FOR LICENSING OF SPENT NU-
CLEAR FUEL RECYCLING FACILITIES. 
(a) REQUIREMENT.—The Nuclear Regulatory Com-
mission shall, as expeditiously as possible, but in no event 
later than 2 years after the date of enactment of this Act, 
complete a rulemaking establishing a process for the li-
censing by the Nuclear Regulatory Commission, under the 
Atomic Energy Act of 1954, of facilities for the recycling 
of spent nuclear fuel. 
(b) FUNDING.—Amounts in the Nuclear Waste Fund 
established under section 302 of the Nuclear Waste Policy 
Act of 1982 (42 U.S.C. 10222) shall be made available 
to the Nuclear Regulatory Commission to cover the costs 
of carrying out subsection (a) of this section. 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00141
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
142 
SEC. 323. NUCLEAR WASTE FUND BUDGET STATUS. 
Section 302(e) of the Nuclear Waste Policy Act of 
1982 (42 U.S.C. 10222(e)) is amended by adding at the 
end the following new paragraph: 
‘‘(7) The receipts and disbursements of the 
Waste Fund shall not be counted as new budget au-
thority, outlays, receipts, or deficits or surplus for 
purposes of— 
‘‘(A) the budget of the United States Gov-
ernment as submitted by the President; 
‘‘(B) the congressional budget; or 
‘‘(C) the Balanced Budget and Emergency 
Deficit Control Act of 1985.’’. 
SEC. 324. WASTE CONFIDENCE. 
The Nuclear Regulatory Commission may not deny 
an application for a license, permit, or other authorization 
under the Atomic Energy Act of 1954 on the grounds that 
sufficient capacity does not exist, or will not become avail-
able on a timely basis, for disposal of spent nuclear fuel 
or high-level radioactive waste from the facility for which 
the license, permit, or other authorization is sought. 
SEC. 325. ASME NUCLEAR CERTIFICATION CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 (relating to business related cred-
its) is amended by adding at the end the following new 
section: 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00142
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
143 
‘‘SEC. 45O. ASME NUCLEAR CERTIFICATION CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
ASME Nuclear Certification credit determined under this 
section for any taxable year is an amount equal to 15 per-
cent of the qualified nuclear expenditures paid or incurred 
by the taxpayer. 
‘‘(b) QUALIFIED NUCLEAR EXPENDITURES.—For 
purposes of this section, the term ‘qualified nuclear ex-
penditures’ means any expenditure related to— 
‘‘(1) obtaining a certification under the Amer-
ican Society of Mechanical Engineers Nuclear Com-
ponent Certification program, or 
‘‘(2) increasing the taxpayer’s capacity to con-
struct, fabricate, assemble, or install components— 
‘‘(A) for any facility which uses nuclear en-
ergy to produce electricity, and 
‘‘(B) with respect to the construction, fab-
rication, assembly, or installation of which the 
taxpayer is certified under such program. 
‘‘(c) TIMING OF CREDIT.—The credit allowed under 
subsection (a) for any expenditures shall be allowed— 
‘‘(1) in the case of a qualified nuclear expendi-
ture described in subsection (b)(1), for the taxable 
year of such certification, and 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00143
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
144 
‘‘(2) in the case of any other qualified nuclear 
expenditure, for the taxable year in which such ex-
penditure is paid or incurred. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) BASIS
ADJUSTMENT.—For purposes of 
this subtitle, if a credit is allowed under this section 
for an expenditure, the increase in basis which would 
result (but for this subsection) for such expenditure 
shall be reduced by the amount of the credit allowed 
under this section. 
‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion shall be allowed under this chapter for any 
amount taken into account in determining the credit 
under this section. 
‘‘(e) TERMINATION.—This section shall not apply to 
any expenditures paid or incurred in taxable years begin-
ning after December 31, 2019.’’. 
(b) CONFORMING AMENDMENTS.—(1) Subsection (b) 
of section 38 is amended by striking ‘‘plus’’ at the end 
of paragraph (30), by striking the period at the end of 
paragraph (31) and inserting ‘‘, plus’’, and by adding at 
the end the following new paragraph: 
‘‘(32) the ASME Nuclear Certification credit 
determined under section 45O(a).’’. 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00144
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
145 
(2) Subsection (a) of section 1016 (relating to adjust-
ments to basis) 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 
45O(e)(1).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures paid or incurred 
in taxable years beginning after December 31, 2007. 
Subtitle D—American Renewable 
and Alternative Energy Trust Fund 
SEC. 331. AMERICAN RENEWABLE AND ALTERNATIVE EN-
ERGY TRUST FUND. 
(a) ESTABLISHMENT OF TRUST FUND.—There is es-
tablished in the Treasury of the United States a trust fund 
to be known as the ‘‘American Renewable and Alternative 
Energy Trust Fund’’, consisting of such amounts as may 
be transferred to the American Renewable and Alternative 
Energy Trust Fund as provided in section 149 and the 
amendments made by section 110 of this Act. 
(b) EXPENDITURES FROM AMERICAN RENEWABLE 
AND ALTERNATIVE ENERGY TRUST FUND.— 
(1) IN GENERAL.—Amounts in the American 
Renewable and Alternative Energy Trust Fund shall 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00145
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
146 
be available without further appropriation to carry 
out specified provisions of the Energy Policy Act of 
2005 (Public Law 109–58; in this section referred to 
as ‘‘EPAct2005’’) and the Energy Independence and 
Security Act of 2007 (Public Law 110–140; in this 
section referred to as ‘‘EISAct2007’’), as follows: 
(A) Grants to improve the commercial 
value of forest biomass for electric energy, use-
ful heat, transportation fuels, and other com-
mercial purposes, section 210 of EPAct2005, 3 
percent 
(B) Hydroelectric production incentives, 
section 242 of EPAct2005, 2 percent. 
(C) Oil shale, tar sands, and other stra-
tegic unconventional fuels, section 369 of 
EPAct2005, 3 percent. 
(D) Clean Coal Power Initiative, section 
401 of EPAct2005, 7 percent. 
(E) Solar and wind technologies, section 
812 of EPAct2005, 7 percent. 
(F) Renewable Energy, section 931of 
EPAct2005, 20 percent. 
(G) Production incentives for cellulosic 
biofuels, section 942 of EPAct2005, 2.5 per-
cent. 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00146
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
147 
(H) Coal and related technologies pro-
gram, section 962 of EPAct2005, 4 percent. 
(I) Methane hydrate research, section 968 
of EPAct2005, 2.5 percent. 
(J) Incentives for Innovative Technologies, 
section 1704 of EPAct2005, 7 percent. 
(K) Grants for production of advanced 
biofuels, section 207 of EISAct2007, 16 per-
cent. 
(L) Photovoltaic demonstration program, 
section 607 EISAct2007, 2.5 percent. 
(M) Geothermal Energy, title VI, subtitle 
B of EISAct2007, 4 percent. 
(N) Marine and Hydrokinetic Renewable 
Energy Technologies, title VI, subtitle C of 
EISAct2007, 2.5 percent. 
(O) Energy storage competitiveness, sec-
tion 641 of EISAct2007, 10 percent. 
(P) Smart grid technology research, devel-
opment, and demonstration, section 1304 of 
EISAct2007, 7 percent. 
(2) APPORTIONMENT
OF
EXCESS
AMOUNT.— 
Notwithstanding paragraph (1), any amounts allo-
cated under paragraph (1) that are in excess of the 
amounts authorized in the applicable cited section or 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00147
Fmt 6652
Sfmt 6201
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS
148 
subtitle of EPAct2005 and EISAct2007 shall be re-
allocated to the remaining sections and subtitles 
cited in paragraph (1), up to the amounts otherwise 
authorized by law to carry out such sections and 
subtitles, in proportion to the amounts authorized by 
law to be appropriated for such other sections and 
subtitles. 
Æ 
VerDate Aug 31 2005 
00:58 Jul 24, 2008
Jkt 069200
PO 00000
Frm 00148
Fmt 6652
Sfmt 6301
E:\BILLS\H6566.IH
H6566
jbell on PROD1PC69 with BILLS