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Q: SECTION 1. CAREERS TO CLASSROOMS.

    Title II of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6601 et seq.) is amended--
            (1) by redesignating part E as part F;
            (2) by redesignating sections 2401 and 2402 as sections 
        2601 and 2602, respectively; and
            (3) by adding at the end the following:

                    ``PART G--CAREERS TO CLASSROOMS

``SEC. 2401. CAREERS TO CLASSROOMS.

    ``(a) Definitions.--In this section:
            ``(1) Alternative certification program.--The term 
        `alternative certification program' means a State-approved 
        program that--
                    ``(A) provides the education and training necessary 
                to enable an individual to be eligible for teacher 
                certification in the State within a reduced period of 
                time, compared to the time typically required to 
                receive such certification; and
                    ``(B) relies upon an individual's experience, 
                expertise, academic qualifications, or other factors in 
                lieu of traditional course work for eligibility to 
                receive a degree in the field of education.
            ``(2) Eligible individual.--The term `eligible individual' 
        means an individual--
                    ``(A) who has submitted an application described in 
                subsection (d) to be a certified teacher through a 
                State-approved alternative certification program in an 
                elementary school or secondary school;
                    ``(B) who has an associate, baccalaureate, or 
                advanced degree from an accredited institution of 
                higher education;
                    ``(C) who--
                            ``(i) has substantial, demonstrable career 
                        experience and competence in mathematics, 
                        natural science, computer science, engineering, 
                        foreign language or another field of expertise 
                        determined by the State to be a field for which 
                        there is a significant shortage of qualified 
                        teachers and teacher applicants in that State; 
                        or
                            ``(ii) within 5 years of the date on which 
                        the individual submits an application described 
                        in subparagraph (A)--
                                    ``(I) has received a baccalaureate 
                                or advanced degree from an accredited 
                                institution of higher education in a 
                                field of expertise described in clause 
                                (i); and
                                    ``(II)(aa) has graduated with at 
                                least a 3.0 grade point average (or 
                                equivalent average on a different 
                                scale) in the major or graduate program 
                                for which the individual obtained the 
                                degree;
                                    ``(bb) has graduated at least in 
                                the top 50 percent of the individual's 
                                undergraduate or graduate class;
                                    ``(cc) can demonstrate a high level 
                                of competence through a high level of 
                                academic performance in core academic 
                                coursework and through successful 
                                passage of academic subject tests 
                                required by the State under its 
                                alternative certification program; and
                                    ``(dd) meets any additional 
                                academic or other standards or 
                                qualifications established by the 
                                State;
                    ``(D) in the case of an individual receiving a 
                stipend under this section, who agrees to, in good 
                faith, seek employment and to consider offers of 
                employment in the individual's subject matter of 
                expertise in a high need elementary or secondary school 
                within that State; and
                    ``(E) who meets any additional teacher 
                certification or other requirements that may be 
                established by the State.
            ``(3) High need elementary or secondary school.--The term 
        `high need elementary or secondary school' means a school--
                    ``(A)(i) in which the percentage of students from 
                families below the Federal poverty level (as determined 
                by the Secretary) is 20 percent or more; and
                    ``(ii) that the State determines has experienced a 
                significant period in which teacher vacancies have 
                remained unfilled due to greater than normal difficulty 
                in recruiting or retaining qualified teachers;
                    ``(B) is within the top quartile of schools 
                statewide with regard to the number of unfilled, 
                available teacher positions; or
                    ``(C) is located in an area, other than a 
                metropolitan statistical area, that the State 
                determines has a high percentage of students from low-
                income families or is one that has experienced greater 
                than normal difficulty in recruiting or retaining 
                teachers.
    ``(b) Program Authorized.--The Secretary may award, on a 
competitive basis, grants to States to enable such States to carry out 
the following activities:
            ``(1) Teacher recruitment, education, training, referral, 
        placement, and retention activities to place eligible 
        individuals as certified teachers in public schools through 
        State-approved alternative certification programs.
            ``(2) To award stipends (in an amount not to exceed the 
        lesser of $5,000 per person or an amount equal to the total 
        costs of the types described in paragraphs (1), (2), (3), (8), 
        and (9) of section 472 of the Higher Education Act of 1965 
        incurred by the eligible individual in obtaining alternative 
        certification under this section) to eligible individuals who--
                    ``(A) are enrolled in a State authorized 
                alternative certification program; and
                    ``(B) agree to--
                            ``(i) seek certification through teacher 
                        certification programs in that State; and
                            ``(ii) teach in a high need school in that 
                        State;
        with a preference being given to individuals who are deemed 
        financially in need of such assistance by the State.
            ``(3) To provide grants, in a manner prescribed by the 
        State, in an amount not to exceed $5,000 per eligible 
        individual, per year, to high need elementary or secondary 
        schools to offset the teacher mentoring, alternative 
        certification, and other direct costs associated with accepting 
        eligible individuals under this section.
            ``(4) To develop, or to award grants to accredited 
        institutions of higher education for the development of, 
        alternative certification programs, with preference given to 
        programs tailored to eligible individuals under this section.
            ``(5) Other activities determined by the State to be 
        reasonably necessary to carry-out the purposes of this section.
    ``(c) Criteria for Awarding of Grants.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section a State shall--
                    ``(A) submit to the Secretary an application that 
                contains--
                            ``(i) a description of the manner in which 
                        the State will carry out activities under this 
                        section; and
                            ``(ii) a description of the alternative 
                        certification program of the State or a 
                        description of the manner in which the State is 
                        attempting to implement an alternative 
                        certification program;
                    ``(B) provide assurances to the Secretary that the 
                State will submit to the Secretary, at the end of the 
                grant period, a report on how the activities carried 
                out with funds made available under the grant were 
                utilized, including a description of--
                            ``(i) the manner in which the funds were 
                        used to increase the number of qualified 
                        teachers hired in the State;
                            ``(ii) the manner in which the funds 
                        improved teacher quality;
                            ``(iii) the number of teachers hired under 
                        the grant;
                            ``(iv) the professional experience and 
                        field of expertise of each teacher hired under 
                        the grant; and
                            ``(v) the manner in which the funds were 
                        used to meet other objectives of this section 
                        or other objectives of the State with regard to 
                        teacher hiring, quality, retention, and student 
                        performance;
                    ``(C) provide assurances that amounts received 
                under the grant will be used to supplement and not 
                supplant other Federal, State, and local funds expended 
                to provide services for individuals and entities 
                eligible to receive funds under this section; and
                    ``(D) provide assurances to the Secretary that 
                amounts received under the grants will be expended 
                within 3 years of the receipt of such funds and agree 
                to return unused funds to the Secretary.
            ``(2) Preference.--The Secretary shall give preference in 
        the awarding of grants under this section to States that have 
        developed, or that are developing, alternative certification 
        programs that--
                    ``(A) rapidly place quality certified teachers into 
                the classroom;
                    ``(B) emphasize subject matter content; and
                    ``(C) lead to the certification and placement of a 
                large number of teachers in relation to the number of 
                public elementary school and secondary school teachers 
                in the State.
            ``(3) Limitations.--A grant under this section may be made 
        for a period of up to 3 years, and may not exceed $10,000,000 
        per year.
            ``(4) Geographic diversity.--To the extent practicable, the 
        Secretary shall award grants under this section to support 
        programs in different geographic regions of the United States.
    ``(d) Application by Eligible Individuals.--To be eligible to 
participate as an eligible individual under this section, an individual 
shall submit an application to the State, or to an entity or individual 
designated by the State to receive such applications. Such application 
shall include--
            ``(1) a description of the academic, professional, and 
        other qualifications of the individual, including the academic 
        or professional subject matter expertise of the individual;
            ``(2) a description of the subject matter area, and, if 
        applicable, the grade level, in which the individual desires to 
        teach;
            ``(3)(A) a description of whether the individual is seeking 
        a stipend under this section (if offered by the State); and
            ``(B) if the individual is seeking such a stipend, a 
        description of the willingness of the individual to teach in a 
        high need elementary or secondary school for at least 2 years 
        under this section; and
            ``(4) any other information or documentation that may be 
        required by the State.
    ``(e) Stipends.--
            ``(1) Counted for eligibility purposes.--A stipend received 
        by an eligible individual under this section shall be taken 
        into account in determining the eligibility of the individual 
        for Federal student-based financial assistance.
            ``(2) Repayment.--The recipient of a stipend under this 
        section shall repay amounts received under such stipend to the 
        State from which the stipend was received if--
                    ``(A) the recipient fails to complete the 
                applicable alternative certification program;
                    ``(B) the recipient rejects a bona fide offer of 
                employment during the 1-year period beginning on the 
                date on which the individual completes the applicable 
                alternative certification program; or
                    ``(C) the recipient fails to teach for at least 2 
                years in a public elementary school or secondary school 
                within that State during the 5-year period beginning on 
                the date on which the individual completes the 
                applicable alternative certification program.
            ``(3) Additional procedures.--A State that receives a grant 
        under this section may establish additional procedures and 
        rules with respect to the reimbursement of the State of any 
        stipend funds under paragraph (2), and shall retain such 
        reimbursed funds to carry out activities under this section.
            ``(4) Exceptions.--Paragraphs (2) and (3) shall not apply 
        during the period of time in which an eligible individual is--
                    ``(A) pursuing a full-time course of study;
                    ``(B) serving on active duty as a member of the 
                Armed Forces;
                    ``(C) temporarily totally disabled for a period of 
                time not to exceed 3 years;
                    ``(D) not able to secure employment for a period of 
                not more than 12 months by reason of the care required 
                by a spouse who is disabled; or
                    ``(E) otherwise exempted from the requirements of 
                such paragraphs as may be provided by the Secretary.
    ``(f) Public Awareness.--The Secretary shall disseminate and 
otherwise make available information concerning the program under this 
section, including--
            ``(1) through the posting of a website on the Internet to 
        enable interested persons to easily find information and 
        application material for participation in activities under this 
        section, that contains a nationwide, publicly searchable data 
        bank of all State programs and all available public elementary 
        and secondary teaching positions the Secretary is able to 
        practicably ascertain, and a means by which individuals may 
        apply to, or inquire of, multiple States' alternative 
        certification programs under this section;
            ``(2) providing information to every State about the 
        program under this section, including the criteria for State 
        and individual eligibility; and
            ``(3) conducting other activities, either directly or 
        through contract with other appropriate entities, to broaden 
        awareness and participation in the program under this section.
    ``(g) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated $50,000,000 
in fiscal year 2002, and such sums as may be necessary for each of 
fiscal years 2003 through 2007.''.

A: Careers to Classrooms Act of 2001 - Amends the Elementary and Secondary Education Act of 1965 to establish a Careers to Classrooms program. Authorizes the Secretary of Education to award competitive grants to States for: (1) teacher recruitment, education, training, referral, placement, and retention activities to place eligible individuals as certified teachers in public schools through State-approved alternative certification programs; (2) stipends for eligible individuals enrolled in programs who agree to seek certification through teacher certification programs in that State and teach in a high-need school in that State, with preference for those individuals needing such assistance; (3) grants to high-need elementary or secondary schools to offset the teacher mentoring, alternative certification, and other direct costs associated with accepting eligible individuals under this Act; (4) grants to accredited institutions of higher education to develop alternative certification programs, with preference given to programs tailored to eligible individuals; and (5) other activities determined by the State to be reasonably necessary to carry out the purposes of this Act. Requires preference for such grants to be given to States that have developed, or are developing, alternative certification programs that: (1) rapidly place quality certified teachers into the classroom; (2) emphasize subject matter content; and (3) lead to the certification and placement of a large number of teachers in relation to the number of public elementary school and secondary school teachers in the State.
****
Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Drug Competition Act of 2002''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) prescription drug prices are increasing at an alarming 
        rate and are a major worry of many senior citizens and American 
        families;
            (2) there is a potential for companies with patent rights 
        regarding brand name drugs and companies which could 
        manufacture generic versions of such drugs to enter into 
        financial deals that could tend to restrain trade and greatly 
        reduce competition and increase prescription drug expenditures 
        for American citizens; and
            (3) enhancing competition among these companies can 
        significantly reduce prescription drug expenditures for 
        Americans.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to provide timely notice to the Department of Justice 
        and the Federal Trade Commission regarding agreements between 
        companies with patent rights regarding brand name drugs and 
        companies which could manufacture generic versions of such 
        drugs; and
            (2) by providing timely notice, to enhance the 
        effectiveness and efficiency of the enforcement of the 
        antitrust and competition laws of the United States.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) ANDA.--The term ``ANDA'' means an Abbreviated New Drug 
        Application, as defined under section 201(aa) of the Federal 
        Food, Drug, and Cosmetic Act (21 U.S.C. 321(aa)).
            (2) Assistant attorney general.--The term ``Assistant 
        Attorney General'' means the Assistant Attorney General in 
        charge of the Antitrust Division of the Department of Justice.
            (3) Brand name drug.--The term ``brand name drug'' means a 
        drug approved under section 505(c) of the Federal Food, Drug, 
        and Cosmetic Act (21 U.S.C. 355(c)).
            (4) Brand name drug company.--The term ``brand name drug 
        company'' means the party that received Food and Drug 
        Administration approval to market a brand name drug pursuant to 
        an NDA, where that drug is the subject of an ANDA, or a party 
        owning or controlling enforcement of any patent listed in the 
        Approved Drug Products With Therapeutic Equivalence Evaluations 
        of the Food and Drug Administration for that drug, under 
        section 505(b) of the Federal Food, Drug, and Cosmetic Act (21 
        U.S.C. 355(b)).
            (5) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (6) Generic drug.--The term ``generic drug'' means a 
        product that the Food and Drug Administration has approved 
        under section 505(j) of the Federal Food, Drug, and Cosmetic 
        Act (21 U.S.C. 355(j)).
            (7) Generic drug applicant.--The term ``generic drug 
        applicant'' means a person who has filed or received approval 
        for an ANDA under section 505(j) of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 355(j)).
            (8) NDA.--The term ``NDA'' means a New Drug Application, as 
        defined under section 505(b) et seq. of the Federal Food, Drug, 
        and Cosmetic Act (21 U.S.C. 355(b) et seq.)

SEC. 5. NOTIFICATION OF AGREEMENTS.

    (a) In General.--
            (1) Requirement.--A generic drug applicant that has 
        submitted an ANDA containing a certification under section 
        505(j)(2)(vii)(IV) of the Federal Food, Drug, and Cosmetic Act 
        (21 U.S.C. 355(j)(2)(vii)(IV)) and a brand name drug company 
        that enter into an agreement described in paragraph (2), prior 
        to the generic drug that is the subject of the application 
        entering the market, shall each file the agreement as required 
        by subsection (b).
            (2) Definition.--An agreement described in this paragraph 
        is an agreement regarding--
                    (A) the manufacture, marketing or sale of the brand 
                name drug that is the subject of the generic drug 
                applicant's ANDA;
                    (B) the manufacture, marketing or sale of the 
                generic drug that is the subject of the generic drug 
                applicant's ANDA; or
                    (C) the 180-day period referred to in section 
                505(j)(5)(B)(iv) of the Federal Food, Drug, and 
                Cosmetic Act (21 U.S.C. 355(j)(5)(B)(iv)) as it applies 
                to such ANDA or to any other ANDA based on the same 
                brand name drug.
    (b) Filing.--
            (1) Agreement.--The generic drug applicant and the brand 
        name drug company entering into an agreement described in 
        subsection (a)(2) shall file with the Assistant Attorney 
        General and the Commission the text of any such agreement, 
        except that the generic drug applicant and the brand-name drug 
        company shall not be required to file an agreement that solely 
        concerns--
                    (A) purchase orders for raw material supplies;
                    (B) equipment and facility contracts;
                    (C) employment or consulting contracts; or
                    (D) packaging and labeling contracts.
            (2) Other agreements.--The generic drug applicant and the 
        brand name drug company entering into an agreement described in 
        subsection (a)(2) shall file with the Assistant Attorney 
        General and the Commission the text of any other agreements not 
        described in subsection (a)(2) between the generic drug 
        applicant and the brand name drug company which are contingent 
        upon, provide a contingent condition for, or are otherwise 
        related to an agreement which must be filed under this Act.
            (3) Description.--In the event that any agreement required 
        to be filed by paragraph (1) or (2) has not been reduced to 
        text, both the generic drug applicant and the brand name drug 
        company shall file written descriptions of the non-textual 
        agreement or agreements that must be filed sufficient to reveal 
        all of the terms of the agreement or agreements.

SEC. 6. FILING DEADLINES.

    Any filing required under section 5 shall be filed with the 
Assistant Attorney General and the Commission not later than 10 
business days after the date the agreements are executed.

SEC. 7. DISCLOSURE EXEMPTION.

    Any information or documentary material filed with the Assistant 
Attorney General or the Commission pursuant to this Act shall be exempt 
from disclosure under section 552 of title 5, and no such information 
or documentary material may be made public, except as may be relevant 
to any administrative or judicial action or proceeding. Nothing in this 
section is intended to prevent disclosure to either body of Congress or 
to any duly authorized committee or subcommittee of the Congress.

SEC. 8. ENFORCEMENT.

    (a) Civil Penalty.--Any brand name drug company or generic drug 
applicant which fails to comply with any provision of this Act shall be 
liable for a civil penalty of not more than $11,000, for each day 
during which such entity is in violation of this Act. Such penalty may 
be recovered in a civil action brought by the United States, or brought 
by the Commission in accordance with the procedures established in 
section 16(a)(1) of the Federal Trade Commission Act (15 U.S.C. 56(a)).
    (b) Compliance and Equitable Relief.--If any brand name drug 
company or generic drug applicant fails to comply with any provision of 
this Act, the United States district court may order compliance, and 
may grant such other equitable relief as the court in its discretion 
determines necessary or appropriate, upon application of the Assistant 
Attorney General or the Commission.

SEC. 9. RULEMAKING.

    The Commission, with the concurrence of the Assistant Attorney 
General and by rule in accordance with section 553 of title 5 United 
States Code, consistent with the purposes of this Act--
            (1) may define the terms used in this Act;
            (2) may exempt classes of persons or agreements from the 
        requirements of this Act; and
            (3) may prescribe such other rules as may be necessary and 
        appropriate to carry out the purposes of this Act.

SEC. 10. SAVINGS CLAUSE.

    Any action taken by the Assistant Attorney General or the 
Commission, or any failure of the Assistant Attorney General or the 
Commission to take action, under this Act shall not bar any proceeding 
or any action with respect to any agreement between a brand name drug 
company and a generic drug applicant at any time under any other 
provision of law, nor shall any filing under this Act constitute or 
create a presumption of any violation of any antitrust or competition 
laws.

SEC. 11. EFFECTIVE DATE.

    This Act shall--
            (1) take effect 30 days after the date of enactment of this 
        Act; and
            (2) shall apply to agreements described in section 5 that 
        are entered into 30 days after the date of enactment of this 
        Act.

            Passed the Senate November 18, 2002.

            Attest:

                                                  JERI THOMSON,

                                                             Secretary.

A: Drug Competition Act of 2002 - (Sec. 5) Requires a generic drug applicant that has submitted an Abbreviated New Drug Application (ANDA) and a brand name drug company that enter into an agreement, prior to the generic drug entering the market, regarding the manufacture, marketing, or sale of the brand name or the generic drug, or regarding the 180-day semi-exclusivity period referred to in the Federal Food, Drug, and Cosmetic Act as it applies to such ANDA or any other ANDA based on the same brand name drug, to each file such agreement and any related agreements with the Assistant Attorney General and the Federal Trade Commission (FTC). Makes an exception for agreements that solely concern purchase orders for raw material supplies, equipment and facility contracts, or employment or consulting contracts. Requires such agreements to be filed not later than ten business days after the date they are executed.(Sec. 7) Exempts any such information or documentary material filed from disclosure under the Freedom of Information Act. Prohibits such information or material from being made public, except as relevant to any administrative or judicial action or proceeding.(Sec. 8) Subjects an applicant or company to a civil penalty of up to $11,000 for each day such entity fails to comply with this Act, recoverable in a civil action brought by the United States or the FTC. Authorizes a U.S. district court to order compliance and grant equitable relief.
****
Q: 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.

A:

assistant: Biodiesel Promotion Act of 2003 - Amends the Internal Revenue Code to establish a biodiesel fuels credit.
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