In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

Example Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``End-User Protection Act of 2014''.

SEC. 2. DEFINITIONS.

    (a) In General.--Section 1a of the Commodity Exchange Act (7 U.S.C. 
1a) is amended--
            (1) by redesignating paragraphs (8) through (51) as 
        paragraphs (9) through (52), respectively;
            (2) by inserting after paragraph (7) the following:
            ``(8) Commercial market participant.--The term `commercial 
        market participant' means any producer, processor, merchant, or 
        commercial user of an exempt or agricultural commodity, or the 
        products or by-products of an exempt or agricultural 
        commodity.'';
            (3) in subparagraph (B) of paragraph (48) (as so 
        redesignated), by striking clause (ii) and inserting the 
        following:
                            ``(ii) any purchase or sale of a 
                        nonfinancial commodity or security for deferred 
                        shipment or delivery, so long as the 
                        transaction is intended to be physically 
                        settled, including any stand-alone or embedded 
                        option for which exercise would result in a 
                        physical delivery obligation;''; and
            (4) in paragraph (50) (as redesignated by paragraph (1)), 
        by striking subparagraph (D) and inserting the following:
                    ``(D) De minimis exception.--
                            ``(i) In general.--The Commission shall 
                        exempt from designation as a swap dealer an 
                        entity that engages in a de minimis quantity of 
                        swap dealing (which shall not be less than 
                        $8,000,000,000) in connection with transactions 
                        with or on behalf of its customers.
                            ``(ii) Regulations.--The Commission shall 
                        promulgate regulations to establish the factors 
                        to be used in a determination under clause (i) 
                        to exempt, including any monetary or other 
                        levels established by the Commission, and those 
                        levels shall only be amended or changed through 
                        an affirmative action of the Commission 
                        undertaken by rule or regulation.''.
    (b) Financial Entity.--Section 2(h)(7)(C) of the Commodity Exchange 
Act (7 U.S.C. 2(h)(7)(C)) is amended--
            (1) in clause (iii)--
                    (A) by striking ``an entity whose'' and inserting 
                the following: ``an entity--
                                    ``(I) whose'';
                    (B) by striking the period at the end and inserting 
                a semicolon; and
                    (C) by adding at the end the following:
                                    ``(II) that is--
                                            ``(aa) a commercial market 
                                        participant;
                                            ``(bb) included in clause 
                                        (i)(VIII); and
                                            ``(cc) not supervised by a 
                                        prudential regulator; or
                                    ``(III) that is included in clause 
                                (i)(VIII) because--
                                            ``(aa) the entity regularly 
                                        enters into foreign exchange or 
                                        derivatives transactions on 
                                        behalf of, or to hedge or 
                                        mitigate, whether directly or 
                                        indirectly, the commercial risk 
                                        of 1 or more entities within 
                                        the same commercial enterprise 
                                        as the entity; or
                                            ``(bb) of the making of 
                                        loans to 1 or more entities 
                                        within the same commercial 
                                        enterprise as the entity.''; 
                                        and
            (2) by adding at the end the following:
                            ``(iv) Same commercial enterprise.--For 
                        purposes of clause (iii)(III), an entity shall 
                        be considered to be within the same commercial 
                        enterprise as another entity if--
                                    ``(I) 1 of the entities owns, 
                                directly or indirectly, at least a 
                                majority ownership interest in the 
                                other entity and reports its financial 
                                statements on a consolidated basis and 
                                the consolidated financial statements 
                                include the financial results of both 
                                entities; or
                                    ``(II) a third party owns at least 
                                a majority ownership interest in both 
                                entities and reports its financial 
                                statements on a consolidated basis and 
                                the financial statements of the third 
                                party include the financial results of 
                                both entities.
                            ``(v) Predominantly engaged.--
                                    ``(I) In general.--Not later than 
                                90 days after the date of enactment of 
                                this clause, the Commission shall 
                                promulgate regulations defining the 
                                term `predominantly engaged' for 
                                purposes of clause (i)(VIII).
                                    ``(II) Minimum revenues.--The 
                                regulations shall provide that an 
                                entity shall not be considered to be 
                                predominantly engaged in activities 
                                that are in the business of banking or 
                                financial in nature if the consolidated 
                                revenues of the entity derived from the 
                                activities constitute less than a 
                                percentage (as specified by the 
                                Commission in the regulations) of the 
                                total consolidated revenues of the 
                                entity.
                                    ``(III) Revenues from banking or 
                                financial activities.--In determining 
                                the percentage of the revenues of an 
                                entity that are derived from activities 
                                that are in the business of banking or 
                                financial in nature, the regulations 
                                shall exclude all revenues that are or 
                                result from foreign exchange or 
                                derivatives transactions used to hedge 
                                or mitigate commercial risk (as defined 
                                by the Commission in the 
                                regulations).''.

SEC. 3. REPORTING OF ILLIQUID SWAPS SO AS TO NOT DISADVANTAGE CERTAIN 
              NON-FINANCIAL END USERS.

    Section 2(a)(13) of the Commodity Exchange Act (7 U.S.C. 2(a)(13)) 
is amended--
            (1) in subparagraph (C), by striking ``The Commission'' and 
        inserting ``Except as provided in subparagraph (D), the 
        Commission'';
            (2) by redesignating subparagraphs (D) through (G) as 
        subparagraphs (E) through (H), respectively; and
            (3) by inserting after subparagraph (C) the following:
                    ``(D) Requirements for swap transactions in 
                illiquid markets.--
                            ``(i) Definition of illiquid markets.--In 
                        this subparagraph, the term `illiquid markets' 
                        means any market in which the volume and 
                        frequency of trading in swaps is at such a 
                        level as to allow identification of individual 
                        market participants.
                            ``(ii) Requirements.--Notwithstanding 
                        subparagraph (C), the Commission shall--
                                    ``(I) provide by rule for the 
                                public reporting of swap transactions, 
                                including price and volume data, in 
                                illiquid markets that are not cleared 
                                and entered into by a nonfinancial 
                                entity that is hedging or mitigating 
                                commercial risk in accordance with 
                                subsection (h)(7)(A); and
                                    ``(II) ensure that the swap 
                                transaction information described in 
                                subclause (I) is available to the 
                                public not sooner than 30 days after 
                                the swap transaction has been executed 
                                or at such later date as the Commission 
                                determines appropriate to protect the 
                                identity of participants and positions 
                                in illiquid markets and to prevent the 
                                elimination or reduction of market 
                                liquidity.''.

SEC. 4. TREATMENT OF AFFILIATES.

    Section 2(h)(7)(D)(i) of the Commodity Exchange Act (7 U.S.C. 
2(h)(7)(D)(i)) is amended--
            (1) by striking ``An affiliate'' and inserting ``A person 
        that is a financial entity and is an affiliate'';
            (2) by striking ``(including affiliate entities 
        predominantly engaged in providing financing for the purchase 
        of the merchandise or manufactured goods of the person)''; and
            (3) by striking ``and as an agent''.

SEC. 5. APPLICABILITY TO BONA FIDE HEDGE TRANSACTIONS OR POSITIONS.

    Section 4a(c) of the Commodity Exchange Act (7 U.S.C. 6a(c)) is 
amended--
            (1) in the second sentence of paragraph (1), by striking 
        ``into the future for which'' and inserting ``in the future, to 
        be determined by the Commission, for which either an 
        appropriate swap is available or''; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``subsection (a)(2)'' and all that follows 
                through ``position that--'' and inserting ``paragraphs 
                (2) and (5) of subsection (a) for swaps, contracts of 
                sale for future delivery, or options on the contracts 
                or commodities, a bona fide hedging transaction or 
                position is a transaction or position that--''; and
                    (B) in subparagraph (A)(ii), by striking ``of 
                risks'' and inserting ``or management of current or 
                anticipated risks''; and
            (3) by adding at the end the following:
            ``(3) Commission definition.--The Commission may further 
        define, by rule or regulation, what constitutes a bona fide 
        hedging transaction or position so long as the rule or 
        regulation is consistent with the requirements of subparagraphs 
        (A) and (B) of paragraph (2).''.

SEC. 6. REPORTING AND RECORDKEEPING.

    Section 4g(f) of the Commodity Exchange Act (7 U.S.C. 6g(f)) is 
amended--
            (1) by striking ``(f) Nothing contained in this section'' 
        and inserting the following:
    ``(f) Authority of Commission To Make Separate Determinations 
Unimpaired.--
            ``(1) In general.--Except as provided in paragraph (2), 
        nothing in this section''; and
            (2) by adding at the end the following:
            ``(2) Exception.--If the Commission imposes any requirement 
        under this section on any person that is not registered, or 
        required to be registered, with the Commission in any capacity, 
        that person shall satisfy the requirements of any rule, order, 
        or regulation under this section by maintaining a written 
        record of each cash or forward transaction related to a 
        reportable or hedging commodity interest transaction, futures 
        contract, option on a futures contract, or swap.
            ``(3) Sufficiency.--A written record described in paragraph 
        (2) shall be sufficient if the written record--
                    ``(A) memorializes the final agreement between the 
                parties, including the material economic terms of the 
                transaction; and
                    ``(B) is identifiable and searchable by 
                transaction.''.

SEC. 7. MARGIN REQUIREMENTS.

    (a) Commodity Exchange Act Amendment.--Section 4s(e) of the 
Commodity Exchange Act (7 U.S.C. 6s(e)) is amended by adding at the end 
the following:
            ``(4) Applicability with respect to counterparties.--The 
        requirements of paragraphs (2)(A)(ii) and (2)(B)(ii), including 
        the initial and variation margin requirements imposed by rules 
        adopted pursuant to paragraphs (2)(A)(ii) and (2)(B)(ii), shall 
        not apply to a swap in which a counterparty qualifies for an 
        exception under section 2(h)(7)(A) or 2(h)(7)(D), or an 
        exemption issued under section 4(c)(1) from the requirements of 
        section 2(h)(1)(A) for cooperative entities as defined in that 
        exemption.''.
    (b) Securities Exchange Act Amendment.--Section 15F(e) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78o-10(e)) is amended by 
adding at the end the following:
            ``(4) Applicability with respect to counterparties.--The 
        requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall not 
        apply to a security-based swap in which a counterparty 
        qualifies for an exception under section 3C(g)(1) or satisfies 
        the criteria in section 3C(g)(4).''.
    (c) Implementation.--The amendments made by this section to the 
Commodity Exchange Act (7 U.S.C. 1 et seq.) shall be implemented--
            (1) without regard to--
                    (A) chapter 35 of title 44, United States Code; and
                    (B) the notice and comment provisions of section 
                553 of title 5, United States Code;
            (2) through the promulgation of an interim final rule, 
        pursuant to which public comment is sought before a final rule 
        is issued; and
            (3) such that paragraph (1) shall apply solely to changes 
        to rules and regulations, or proposed rules and regulations, 
        that are limited to and directly a consequence of the 
        amendments.

SEC. 8. ANALYSIS BY THE COMMODITY FUTURES TRADING COMMISSION OF THE 
              COSTS AND BENEFITS OF REGULATIONS AND ORDERS.

    Section 15(a) of the Commodity Exchange Act (7 U.S.C. 19(a)) is 
amended by striking paragraphs (1) and (2) and inserting the following:
            ``(1) In general.--Before promulgating a regulation under 
        this Act or issuing an order (except as provided in paragraph 
        (3)), the Commission, acting through the Office of the Chief 
        Economist, shall--
                    ``(A) state a justification for the regulation or 
                order;
                    ``(B) state the baseline for the cost-benefit 
                analysis and explain how the regulation or order 
                measures costs against the baseline;
                    ``(C) assess the costs and benefits, both 
                qualitative and quantitative, of the intended 
                regulation or order;
                    ``(D) measure, and seek to improve, the actual 
                results of regulatory requirements; and
                    ``(E) propose or adopt a regulation or order only 
                on a reasoned determination that the benefits of the 
                intended regulation or order justify the costs of the 
                intended regulation or order (recognizing that some 
                benefits and costs are difficult to quantify).
            ``(2) Considerations.--In making a reasoned determination 
        of costs and benefits under paragraph (1), the Commission shall 
        consider--
                    ``(A) the protection of market participants and the 
                public;
                    ``(B) the efficiency, competitiveness, and 
                financial integrity of futures and swaps markets;
                    ``(C) the impact on market liquidity in the futures 
                and swaps markets;
                    ``(D) price discovery;
                    ``(E) sound risk management practices;
                    ``(F) the cost of available alternatives to direct 
                regulation;
                    ``(G) the degree and nature of the risks posed by 
                various activities within the scope of the jurisdiction 
                of the Commission;
                    ``(H) whether, consistent with obtaining regulatory 
                objectives, the regulation or order is tailored to 
                impose the least burden on society, including market 
                participants, individuals, businesses of differing 
                sizes, and other entities (including small communities 
                and governmental entities), taking into account, to the 
                extent practicable, the cumulative costs of regulations 
                and orders;
                    ``(I) whether the regulation or order is 
                inconsistent, incompatible, or duplicative of other 
                Federal regulations and orders; and
                    ``(J) whether, in choosing among alternative 
                regulatory approaches, those approaches maximize net 
                benefits (including potential economic, environmental, 
                and other benefits, distributive impacts, and 
                equity).''.
Example Output: End-User Protection Act of 2014 - Amends the Commodity Exchange Act with respect to exceptions to the requirement that any swap be cleared by a derivatives clearing organization either registered under that Act, or exempted from registration, if the swap is required to be cleared. Revises the definition of a financial entity subject to such requirement to exclude one that: (1) is a commercial market participant predominantly engaged in activities in the business of banking, or in activities that are financial in nature, but is not supervised by a prudential regulator; or (2) is considered as predominantly engaged in activities in the business of banking or in financial activities because it regularly enters into foreign exchange or derivatives transactions on behalf of, or to hedge or mitigate the commercial risk of, one or more other entities within the entity's same commercial enterprise, or because of making loans to one or more of such other entities. Directs the Commodity Futures Trading Commission (CFTC) to provide by rule for the public reporting of swap transactions, including price and volume data, in illiquid markets that are not cleared and entered into by a nonfinancial entity that is hedging or mitigating commercial risk. Defines &quot;illiquid&quot; as any market in which the volume and frequency of trading in swaps is at such a level as to allow identification of individual market participants. Requires the CFTC to ensure that such swap transaction information is not available to the public until 30 days after the transaction has been executed, or at an appropriate later date, in order to: (1) protect the identity of participants and positions in illiquid markets, and (2) prevent the elimination or reduction of market liquidity. Accords financial entities exempt from swap-clearing requirements the same treatment as exempted affiliates. Revises the exemption of bona fide hedge transactions or positions from certain trading limitations to set criteria for CFTC rules or regulations treating swaps, contracts of sale for future delivery, or options on the contracts or commodities as bona fide hedge transactions or positions also exempt from those limitations. Declares that, if the CFTC imposes any reporting and recordkeeping requirement on any person that is not registered, or required to be registered, with the CFTC, that person shall satisfy the requirements of any pertinent rule, order, or regulation by maintaining a written record of each cash or forward transaction related to a reportable or hedging commodity interest transaction, futures contract, option on a futures contract, or swap. Makes such a written record sufficient if it: (1) memorializes the final agreement between the parties, including the transaction's material economic terms; and (2) is identifiable and searchable by transaction. States that certain requirements for adoption of rules governing capital and margin requirements for swap dealers and major swap participants, including the initial and variation margin requirements imposed by rules adopted according to such requirements, shall not apply to a swap in which a counterparty qualifies for specified exceptions or exemptions. Revises requirements for a CFTC cost-benefit analysis made before an order is issued. Requires the CFTC, acting through the Office of the Chief Economist, among other things to:  state a justification for the regulation or order; state the baseline for the cost-benefit analysis and explain how the regulation or order measures costs against the baseline; assess the costs and benefits, both qualitative and quantitative, of the intended regulation or order; measure, and seek to improve, the actual results of regulatory requirements; and propose or adopt a regulation or order only on a reasoned determination that the benefits of the intended regulation or order justify its costs. 

Example Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Little Shell Tribe of Chippewa 
Indians Restoration Act of 2007''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the Little Shell Tribe of Chippewa Indians is a 
        political successor to signatories of the Pembina Treaty of 
        1863, under which a large area of land in the State of North 
        Dakota was ceded to the United States;
            (2) the Turtle Mountain Band of Chippewa of North Dakota 
        and the Chippewa-Cree Tribe of the Rocky Boy's Reservation of 
        Montana, which also are political successors to the signatories 
        of the Pembina Treaty of 1863, have been recognized by the 
        Federal Government as distinct Indian tribes;
            (3) the members of the Little Shell Tribe continue to live 
        in the State of Montana, as their ancestors have for more than 
        100 years since ceding land in the State of North Dakota as 
        described in paragraph (1);
            (4) in the 1930s and 1940s, the Tribe repeatedly petitioned 
        the Federal Government for reorganization under the Act of June 
        18, 1934 (25 U.S.C. 461 et seq.) (commonly known as the 
        ``Indian Reorganization Act'');
            (5) Federal agents who visited the Tribe and Commissioner 
        of Indian Affairs John Collier attested to the responsibility 
        of the Federal Government for the Tribe and members of the 
        Tribe, concluding that members of the Tribe are eligible for, 
        and should be provided with, trust land, making the Tribe 
        eligible for reorganization under the Act of June 18, 1934 (25 
        U.S.C. 461 et seq.) (commonly known as the ``Indian 
        Reorganization Act'');
            (6) due to a lack of Federal appropriations during the 
        Depression, the Bureau of Indian Affairs lacked adequate 
        financial resources to purchase land for the Tribe, and the 
        members of the Tribe were denied the opportunity to reorganize;
            (7) in spite of the failure of the Federal Government to 
        appropriate adequate funding to secure land for the Tribe as 
        required for reorganization under the Act of June 18, 1934 (25 
        U.S.C. 461 et seq.) (commonly known as the ``Indian 
        Reorganization Act''), the Tribe continued to exist as a 
        separate community, with leaders exhibiting clear political 
        authority;
            (8) the Tribe, together with the Turtle Mountain Band of 
        Chippewa of North Dakota and the Chippewa-Cree Tribe of the 
        Rocky Boy's Reservation of Montana, filed 2 law suits under the 
        Act of August 13, 1946 (60 Stat. 1049) (commonly known as the 
        ``Indian Claims Commission Act''), to petition for additional 
        compensation for land ceded to the United States under the 
        Pembina Treaty of 1863 and the McCumber Agreement of 1892;
            (9) in 1971 and 1982, pursuant to Acts of Congress, the 
        tribes received awards for the claims described in paragraph 
        (8);
            (10) in 1978, the Tribe submitted to the Bureau of Indian 
        Affairs a petition for Federal recognition, which is still 
        pending as of the date of enactment of this Act; and
            (11) the Federal Government, the State of Montana, and the 
        other federally recognized Indian tribes of the State have had 
        continuous dealings with the recognized political leaders of 
        the Tribe since the 1930s.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Member.--The term ``member'' means an individual who is 
        enrolled in the Tribe pursuant to section 7.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (3) Tribe.--The term ``Tribe'' means the Little Shell Tribe 
        of Chippewa Indians of Montana.

SEC. 4. FEDERAL RECOGNITION.

    (a) In General.--Federal recognition is extended to the Tribe.
    (b) Effect of Federal Laws.--Except as otherwise provided in this 
Act, all Federal laws (including regulations) of general application to 
Indians and Indian tribes, including the Act of June 18, 1934 (25 
U.S.C. 461 et seq.) (commonly known as the ``Indian Reorganization 
Act''), shall apply to the Tribe and members.

SEC. 5. FEDERAL SERVICES AND BENEFITS.

    (a) In General.--Beginning on the date of enactment of this Act, 
the Tribe and each member shall be eligible for all services and 
benefits provided by the United States to Indians and federally 
recognized Indian tribes, without regard to--
            (1) the existence of a reservation for the Tribe; or
            (2) the location of the residence of any member on or near 
        an Indian reservation.
    (b) Service Area.--For purposes of the delivery of services and 
benefits to members, the service area of the Tribe shall be considered 
to be the area comprised of Blaine, Cascade, Glacier, and Hill Counties 
in the State of Montana.

SEC. 6. REAFFIRMATION OF RIGHTS.

    (a) In General.--Nothing in this Act diminishes any right or 
privilege of the Tribe or any member that existed before the date of 
enactment of this Act.
    (b) Claims of Tribe.--Except as otherwise provided in this Act, 
nothing in this Act alters or affects any legal or equitable claim of 
the Tribe to enforce any right or privilege reserved by, or granted to, 
the Tribe that was wrongfully denied to, or taken from, the Tribe 
before the date of enactment of this Act.

SEC. 7. MEMBERSHIP ROLL.

    (a) In General.--As a condition of receiving recognition, services, 
and benefits pursuant to this Act, the Tribe shall submit to the 
Secretary, by not later than 18 months after the date of enactment of 
this Act, a membership roll consisting of the name of each individual 
enrolled as a member of the Tribe.
    (b) Determination of Membership.--The qualifications for inclusion 
on the membership roll of the Tribe shall be determined in accordance 
with sections 1 through 3 of article 5 of the constitution of the Tribe 
dated September 10, 1977 (including amendments to the constitution).
    (c) Maintenance of Roll.--The Tribe shall maintain the membership 
roll under this section.

SEC. 8. TRANSFER OF LAND.

    (a) Homeland.--The Secretary shall acquire, for the benefit of the 
Tribe, trust title to 200 acres of land within the service area of the 
Tribe to be used for a tribal land base.
    (b) Additional Land.--The Secretary may acquire additional land for 
the benefit of the Tribe pursuant to section 5 of the Act of June 18, 
1934 (25 U.S.C. 465) (commonly known as the ``Indian Reorganization 
Act'').
Example Output: Little Shell Tribe of Chippewa Indians Restoration Act of 2007 - Extends federal recognition to the Little Shell Tribe of Chippewa Indians of Montana. Makes the Tribe and each member eligible for all services and benefits provided by the United States to Indians and federally recognized Indian tribes, without regard to the existence of a reservation for the Tribe or the location of the residence of any member on or near an Indian reservation.

Directs the Tribe, as a condition of receiving recognition, services, and benefits pursuant to this Act, to submit to the Secretary of the Interior a membership roll consisting of the name of each individual enrolled as a member of the Tribe. Requires the Tribe to maintain such membership roll.

Directs the Secretary to acquire, for the benefit of the Tribe, trust title to 200 acres of land within the Tribe's service area to be used for a tribal land base.

Example Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Biodiesel Promotion Act of 2003''.

SEC. 2. INCENTIVES FOR BIODIESEL.

    (a) Credit for Biodiesel Used as a Fuel.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 (relating to 
        business related credits) is amended by inserting after section 
        40 the following new section:

``SEC. 40A. BIODIESEL USED AS FUEL.

    ``(a) General Rule.--For purposes of section 38, the biodiesel 
fuels credit determined under this section for the taxable year is an 
amount equal to the biodiesel mixture credit.
    ``(b) Definition of Biodiesel Mixture Credit.--For purposes of this 
section--
            ``(1) Biodiesel mixture credit.--
                    ``(A) In general.--The biodiesel mixture credit of 
                any taxpayer for any taxable year is the sum of the 
                products of the biodiesel mixture rate for each 
                qualified biodiesel mixture and the number of gallons 
                of such mixture of the taxpayer for the taxable year.
                    ``(B) Biodiesel mixture rate.--For purposes of 
                subparagraph (A), the biodiesel mixture rate for each 
                qualified biodiesel mixture shall be--
                            ``(i) in the case of a mixture with only 
                        biodiesel V, 1 cent for each whole percentage 
                        point (not exceeding 20 percentage points) of 
                        biodiesel V in such mixture, and
                            ``(ii) in the case of a mixture with 
                        biodiesel NV, or a combination of biodiesel V 
                        and biodiesel NV, 0.5 cent for each whole 
                        percentage point (not exceeding 20 percentage 
                        points) of such biodiesel in such mixture.
            ``(2) Qualified biodiesel mixture.--
                    ``(A) In general.--The term `qualified biodiesel 
                mixture' means a mixture of diesel and biodiesel V or 
                biodiesel NV which--
                            ``(i) is sold by the taxpayer producing 
                        such mixture to any person for use as a fuel, 
                        or
                            ``(ii) is used as a fuel by the taxpayer 
                        producing such mixture.
                    ``(B) Sale or use must be in trade or business, 
                etc.--
                            ``(i) In general.--Biodiesel V or biodiesel 
                        NV used in the production of a qualified 
                        biodiesel mixture shall be taken into account--
                                    ``(I) only if the sale or use 
                                described in subparagraph (A) is in a 
                                trade or business of the taxpayer, and
                                    ``(II) for the taxable year in 
                                which such sale or use occurs.
                            ``(ii) Certification for biodiesel v.--
                        Biodiesel V used in the production of a 
                        qualified biodiesel mixture shall be taken into 
                        account only if the taxpayer described in 
                        subparagraph (A) obtains a certification from 
                        the producer of the biodiesel V which 
                        identifies the product produced.
                    ``(C) Casual off-farm production not eligible.--No 
                credit shall be allowed under this section with respect 
                to any casual off-farm production of a qualified 
                biodiesel mixture.
    ``(c) Coordination With Exemption From Excise Tax.--The amount of 
the credit determined under this section with respect to any biodiesel 
V shall, under regulations prescribed by the Secretary, be properly 
reduced to take into account any benefit provided with respect to such 
biodiesel V solely by reason of the application of section 4041(n) or 
section 4081(f).
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Biodiesel v defined.--The term `biodiesel V' means 
        the monoalkyl esters of long chain fatty acids derived solely 
        from virgin vegetable oils for use in compressional-ignition 
        (diesel) engines. Such term shall include esters derived from 
        vegetable oils from corn, soybeans, sunflower seeds, 
        cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, 
        rice bran, and mustard seeds.
            ``(2) Biodiesel nv defined.--The term `biodiesel NV' means 
        the monoalkyl esters of long chain fatty acids derived from 
        nonvirgin vegetable oils or animal fats for use in 
        compressional-ignition (diesel) engines.
            ``(3) Registration requirements.--The terms `biodiesel V' 
        and `biodiesel NV' shall only include a biodiesel which meets--
                            ``(i) the registration requirements for 
                        fuels and fuel additives established by the 
                        Environmental Protection Agency under section 
                        211 of the Clean Air Act (42 U.S.C. 7545), and
                            ``(ii) the requirements of the American 
                        Society of Testing and Materials D6751.
            ``(4) Biodiesel mixture not used as a fuel, etc.--
                    ``(A) Imposition of tax.--If--
                            ``(i) any credit was determined under this 
                        section with respect to biodiesel V or 
                        biodiesel NV used in the production of any 
                        qualified biodiesel mixture, and
                            ``(ii) any person--
                                    ``(I) separates such biodiesel from 
                                the mixture, or
                                    ``(II) without separation, uses the 
                                mixture other than as a fuel,
                        then there is hereby imposed on such person a 
                        tax equal to the product of the biodiesel 
                        mixture rate applicable under subsection 
                        (b)(1)(B) and the number of gallons of the 
                        mixture.
                    ``(B) Applicable laws.--All provisions of law, 
                including penalties, shall, insofar as applicable and 
                not inconsistent with this section, apply in respect of 
                any tax imposed under subparagraph (A) as if such tax 
                were imposed by section 4081 and not by this chapter.
            ``(5) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
    ``(e) Election To Have Biodiesel Fuels Credit Not Apply.--
            ``(1) In general.--A taxpayer may elect to have this 
        section not apply for any taxable year.
            ``(2) Time for making election.--An election under 
        paragraph (1) for any taxable year may be made (or revoked) at 
        any time before the expiration of the 3-year period beginning 
        on the last date prescribed by law for filing the return for 
        such taxable year (determined without regard to extensions).
            ``(3) Manner of making election.--An election under 
        paragraph (1) (or revocation thereof) shall be made in such 
        manner as the Secretary may by regulations prescribe.
    ``(f) Termination.--This section shall not apply to any fuel sold 
after December 31, 2005.''.
            (2) Credit treated as part of general business credit.--
        Section 38(b) of the Internal Revenue Code of 1986 is amended 
        by striking ``plus'' at the end of paragraph (14), by striking 
        the period at the end of paragraph (15) and inserting ``, 
        plus'', and by adding at the end the following new paragraph:
            ``(16) the biodiesel fuels credit determined under section 
        40A(a).''.
            (3) Conforming amendments.--
                    (A) Section 39(d) of the Internal Revenue Code of 
                1986 is amended by adding at the end the following new 
                paragraph:
            ``(11) No carryback of biodiesel fuels credit before 
        january 1, 2003.--No portion of the unused business credit for 
        any taxable year which is attributable to the biodiesel fuels 
        credit determined under section 40A may be carried back to a 
        taxable year beginning before January 1, 2003.''.
                    (B) Section 196(c) of such Code is amended by 
                striking ``and'' at the end of paragraph (9), by 
                striking the period at the end of paragraph (10), and 
                by adding at the end the following new paragraph:
            ``(11) the biodiesel fuels credit determined under section 
        40A(a).''.
                    (C) Section 6501(m) of such Code is amended by 
                inserting ``40A(e),'' after ``40(f),''.
                    (D) The table of sections for subpart D of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                adding after the item relating to section 40 the 
                following new item:

                              ``Sec. 40A. Biodiesel used as fuel.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2002.
    (b) Reduction of Motor Fuel Excise Taxes on Biodiesel V Mixtures.--
            (1) In general.--Section 4081 of the Internal Revenue Code 
        of 1986 (relating to manufacturers tax on petroleum products) 
        is amended by adding at the end the following new subsection:
    ``(f) Biodiesel V Mixtures.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--In the case of the removal or entry of a 
        qualified biodiesel mixture with biodiesel V, the rate of tax 
        under subsection (a) shall be the otherwise applicable rate 
        reduced by the biodiesel mixture rate (if any) applicable to 
        the mixture.
            ``(2) Tax prior to mixing.--
                    ``(A) In general.--In the case of the removal or 
                entry of diesel fuel for use in producing at the time 
                of such removal or entry a qualified biodiesel mixture 
                with biodiesel V, the rate of tax under subsection (a) 
                shall be the rate determined under subparagraph (B).
                    ``(B) Determination of rate.--For purposes of 
                subparagraph (A), the rate determined under this 
                subparagraph is the rate determined under paragraph 
                (1), divided by a percentage equal to 100 percent minus 
                the percentage of biodiesel V which will be in the 
                mixture.
            ``(3) Definitions.--For purposes of this subsection, any 
        term used in this subsection which is also used in section 40A 
        shall have the meaning given such term by section 40A.
            ``(4) Certain rules to apply.--Rules similar to the rules 
        of paragraphs (6) and (7) of subsection (c) shall apply for 
        purposes of this subsection.''.
            (2) Conforming amendments.--
                    (A) Section 4041 of the Internal Revenue Code of 
                1986 is amended by adding at the end the following new 
                subsection:
    ``(n) Biodiesel V Mixtures.--Under regulations prescribed by the 
Secretary, in the case of the sale or use of a qualified biodiesel 
mixture (as defined in section 40A(b)(2)) with biodiesel V, the rates 
under paragraphs (1) and (2) of subsection (a) shall be the otherwise 
applicable rates, reduced by any applicable biodiesel mixture rate (as 
defined in section 40A(b)(1)(B)).''.
                    (B) Section 6427 of such Code is amended by 
                redesignating subsection (p) as subsection (q) and by 
                inserting after subsection (o) the following new 
                subsection:
    ``(p) Biodiesel V Mixtures.--Except as provided in subsection (k), 
if any diesel fuel on which tax was imposed by section 4081 at a rate 
not determined under section 4081(f) is used by any person in producing 
a qualified biodiesel mixture (as defined in section 40A(b)(2)) with 
biodiesel V which is sold or used in such person's trade or business, 
the Secretary shall pay (without interest) to such person an amount 
equal to the per gallon applicable biodiesel mixture rate (as defined 
in section 40A(b)(1)(B)) with respect to such fuel.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to any fuel sold after December 31, 2002, and 
        before January 1, 2006.
    (c) Highway Trust Fund Held Harmless.--There are hereby transferred 
(from time to time) from the funds of the Commodity Credit Corporation 
amounts determined by the Secretary of the Treasury to be equivalent to 
the reductions that would occur (but for this subsection) in the 
receipts of the Highway Trust Fund by reason of the amendments made by 
this section.
Example Output:
Biodiesel Promotion Act of 2003 - Amends the Internal Revenue Code to establish a biodiesel fuels credit.