HR 5437
110th CONGRESS
2d Session
H. R. 5437
To promote alternative and renewable fuels, domestic energy production,
conservation, and efficiency, to increase American energy independence, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
February 14, 2008
Mr. ROSS (for himself and Mr. NUNES) introduced the following bill; which
was referred to the Committee on Energy and Commerce, and in addition to the
Committees on Science and Technology, Oversight and Government Reform, Armed
Services, Agriculture, Natural Resources, and Ways and Means, for a period
to be subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To promote alternative and renewable fuels, domestic energy production,
conservation, and efficiency, to increase American energy independence, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `American-Made Energy Act of
2008'.
(b) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--TAX INCENTIVES FOR ALTERNATIVE ENERGY AND CONSERVATION
Subtitle A--Alternative Energy
Sec. 101. Credit for investment in cellulosic biomass ethanol projects.
Sec. 102. Investment tax credit for investments in nuclear power facilities.
Sec. 103. Expansion of special allowance to cellulosic biomass alcohol fuel
plant property.
Subtitle B--Electricity and Renewables
Sec. 111. Extension and modification of energy investment tax credit.
Sec. 112. Credit rate parity for all renewable resources under electricity
production credit.
Sec. 113. Extension of credit for producing electricity from certain renewable
resources.
Sec. 114. Expansion of credit for electricity produced from agricultural
livestock waste nutrients.
Sec. 115. Credit for installation of wind energy property including by rural
homeowners, farmers, ranchers, and small businesses.
Sec. 116. 3-year accelerated depreciation period for wind energy property.
Sec. 117. Repeal of dollar limitation and allowance against alternative
minimum tax for residential solar and fuel cell property credit.
Sec. 118. New clean renewable energy bonds.
Sec. 119. Extension and modification of credit for residential energy efficient
property.
Subtitle C--Coal-to-Liquid Fuel
Sec. 121. Extension of alternative fuel credit for fuel derived from coal.
Subtitle D--Energy Efficiency
Sec. 131. Extension of new energy efficient home credit.
Sec. 132. Modification and extension of energy efficient commercial buildings
deduction.
Subtitle E--Alternative Vehicle Fuels
Sec. 141. Consumer credit for purchase of flexible fuel motor vehicle.
Sec. 142. Repeal of prohibition on procurement and acquisition of alternative
fuels.
Subtitle F--Biofuel Production
Sec. 151. Extension and modification of credits for biodiesel and renewable
diesel.
Subtitle G--Oil and Gas Provisions
Sec. 161. Expensing for crude oil refineries.
Sec. 162. Extension of suspension of taxable income limit on percentage
depletion for oil and natural gas produced from marginal properties.
Sec. 163. Increase in depletion rate for marginal oil or gas production.
Sec. 164. Suspension of taxable income limitation on percentage depletion.
Sec. 165. Study on fair and transparent fuel pricing.
Subtitle H--Carbon Capture and Sequestration
Sec. 171. Expansion and modification of advanced coal project investment
credit.
TITLE II--AMERICAN-MADE ENERGY TRUST FUND
Sec. 201. Establishment of American-Made Energy Trust Fund.
TITLE III--DEVELOPMENT OF OIL AND GAS RESOURCES OF THE COASTAL PLAIN OF
ALASKA
Sec. 302. Leasing program for lands within the Coastal Plain.
Sec. 304. Grant of leases by the Secretary.
Sec. 305. Lease terms and conditions.
Sec. 306. Coastal plain environmental protection.
Sec. 307. Expedited judicial review.
Sec. 308. Federal and State distribution of revenues.
Sec. 309. Rights-of-way across the Coastal Plain.
Sec. 311. Local government impact aid and community service assistance.
TITLE IV--COAL-TO-LIQUID FUEL PROMOTION
Sec. 401. Strategic Petroleum Reserve.
Sec. 402. Procurement of unconventional fuels by the Department of Defense.
Sec. 403. Government auction of long term put option contracts on coal-to-liquid
fuel produced by qualified coal-to-liquid facilities.
TITLE V--BIOFUEL PROGRAM
Sec. 501. Grants for cellulosic ethanol production.
Sec. 502. Loan guarantees for biorefineries and biofuel production plants.
Sec. 503. Biomass Research and Development Act of 2000.
Sec. 504. Forest bioenergy research program.
Sec. 505. Early action renewable fuel marketing.
TITLE VI--ALTERNATIVE VEHICLE FUELS
Sec. 601. Credit for plug-in hybrid vehicles.
Sec. 602. Use of credits.
TITLE VII--OFFSHORE OIL AND GAS LEASING
Sec. 701. Termination of prohibitions on expenditures for, and withdrawals
from, offshore leasing.
Sec. 702. Outer Continental Shelf leasing program.
Sec. 703. Sharing of revenues.
TITLE VIII--INCREASING NUCLEAR GENERATED ELECTRIC ENERGY
Sec. 801. Increasing nuclear generated electric energy.
TITLE I--TAX INCENTIVES FOR ALTERNATIVE ENERGY AND CONSERVATION
Subtitle A--Alternative Energy
SEC. 101. CREDIT FOR INVESTMENT IN CELLULOSIC BIOMASS ETHANOL PROJECTS.
(a) Qualifying Cellulosic Biomass Ethanol Project Investment-
(1) IN GENERAL- Subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to rules for computing investment
credit) is amended by inserting after section 48B the following new section:
`SEC. 48C. QUALIFYING CELLULOSIC BIOMASS ETHANOL PROJECT CREDIT.
`(a) In General- For purposes of section 46, the qualifying cellulosic biomass
ethanol project credit for any taxable year is an amount equal to 50 percent
of the qualified investment for such taxable year.
`(b) Dollar Limitation- The amount of the credit determined under this section
for any taxable year shall not exceed $100,000,000.
`(c) Qualified Investment- For purposes of subsection (a), the qualified investment
for any taxable year is the basis of property placed in service by the taxpayer
during the taxable year which is part of a qualifying cellulosic biomass ethanol
project--
`(1)(A) the construction, reconstruction, or erection of which is completed
by the taxpayer, or
`(B) which is acquired by the taxpayer if the original use of such property
commences with the taxpayer, and
`(2) with respect to which depreciation (or amortization in lieu of depreciation)
is allowable.
`(d) Qualifying Cellulosic Biomass Ethanol Project- For purposes of this section,
the term `qualifying cellulosic biomass ethanol project' means any domestic
project which produces not less than 5,000,000 gallons of ethanol per year
by enzymatic hydrolysis of any lignocellulosic or hemicellulosic feedstock
that is available on a renewable or recurring basis, including agricultural
residues, agricultural fibers, dedicated energy crops, grasses, plants, and
wood and wood residues.
`(e) Qualifying Cellulosic Biomass Ethanol Project Program-
`(1) IN GENERAL- The Secretary, in consultation with the Secretary of Energy,
shall establish a qualifying cellulosic biomass ethanol project program
to consider and award certifications for qualified investment eligible for
credits under this section to qualifying cellulosic biomass ethanol project
sponsors under this section. The total amounts of credit that may be allocated
under this program shall not exceed $2,000,000,000.
`(2) SELECTION CRITERIA- The Secretary shall not make a competitive certification
award for qualified investment for credit eligibility under this section
unless the recipient has documented to the satisfaction of the Secretary
that--
`(A) the proposal of the award recipient is financially viable,
`(B) the recipient will provide sufficient information to the Secretary
for the Secretary to ensure that the qualified investment is spent efficiently
and effectively,
`(C) the award recipient's project team is competent in the planning and
construction of cellulosic biomass ethanol facilities, and
`(D) the award recipient has met other criteria established and published
by the Secretary.
`(3) PERIOD OF CERTIFICATION- The Secretary may issue the certifications
described in paragraph (1) during the 10-year period beginning on October
1, 2008.
`(f) Denial of Double Benefit- No deduction or other credit shall be allowed
with respect to the basis of any property taken into account in determining
the credit allowed under this section.'.
(b) Conforming Amendments-
(1) Section 46 of such Code is amended by striking `and' at the end of paragraph
(3), by striking the period at the end of paragraph (4) and inserting `,
and', and by adding at the end the following new paragraph:
`(5) the qualifying cellulosic biomass ethanol project credit.'.
(2) The table of sections for subpart E of part IV of subchapter A of chapter
1 of such Code is amended by inserting after the item relating to section
48B the following new item:
`Sec. 48C. Qualifying cellulosic biomass ethanol project.'.
(c) Effective Date- The amendments made by this section shall apply to qualified
investment made after the date of the enactment of this Act.
SEC. 102. INVESTMENT TAX CREDIT FOR INVESTMENTS IN NUCLEAR POWER FACILITIES.
(a) New Credit for Nuclear Power Facilities- Section 46 of the Internal Revenue
Code of 1986, as amended by this Act, is amended by--
(1) striking `and' at the end of paragraph (4);
(2) striking the period at the end of paragraph (5) and inserting `, and';
and
(3) inserting after paragraph (5) the following new paragraph:
`(6) the nuclear power facility construction credit.'.
(b) Nuclear Power Facility Construction Credit- Subpart E of part IV of subchapter
A of chapter 1 of such Code, as amended by this Act, is amended by inserting
after section 48C the following new section:
`SEC. 48D. NUCLEAR POWER FACILITY CONSTRUCTION CREDIT.
`(a) In General- For purposes of section 46, the nuclear power facility construction
credit for any taxable year is 20 percent of the qualified nuclear power facility
expenditures with respect to a qualified nuclear power facility.
`(b) When Expenditures Taken Into Account-
`(1) IN GENERAL- Qualified nuclear power facility expenditures shall be
taken into account for the taxable year in which the qualified nuclear power
facility is placed in service.
`(2) COORDINATION WITH SUBSECTION (C)- The amount which would (but for this
paragraph) be taken into account under paragraph (1) with respect to any
qualified nuclear power facility shall be reduced (but not below zero) by
any amount of qualified nuclear power facility expenditures taken into account
under subsection (c) by the taxpayer or a predecessor of the taxpayer (or,
in the case of a sale and leaseback described in section 50(a)(2)(C), by
the lessee), to the extent any amount so taken into account has not been
required to be recaptured under section 50(a).
`(c) Progress Expenditures-
`(1) IN GENERAL- A taxpayer may elect to take into account qualified nuclear
power facility expenditures--
`(A) SELF-CONSTRUCTED PROPERTY- In the case of a qualified nuclear power
facility which is a self-constructed facility, in the taxable year for
which such expenditures are properly chargeable to capital account with
respect to such facility.
`(B) ACQUIRED FACILITY- In the case of a qualified nuclear facility which
is not self-constructed property, in the taxable year in which such expenditures
are paid.
`(2) SPECIAL RULES FOR APPLYING PARAGRAPH (1)- For purposes of paragraph
(1)--
`(A) COMPONENT PARTS, ETC- Property which is not self-constructed property
and which is to be a component part of, or is otherwise to be included
in, any facility to which this subsection applies shall be taken into
account in accordance with paragraph (1)(B).
`(B) CERTAIN BORROWING DISREGARDED- Any amount borrowed directly or indirectly
by the taxpayer on a nonrecourse basis from the person constructing the
facility for the taxpayer shall not be treated as an amount expended for
such facility.
`(C) LIMITATION FOR FACILITIES OR COMPONENTS WHICH ARE NOT SELF-CONSTRUCTED-
`(i) IN GENERAL- In the case of a facility or a component of a facility
which is not self-constructed, the amount taken into account under paragraph
(1)(B) for any taxable year shall not exceed the amount which represents
the portion of the overall cost to the taxpayer of the facility or component
of a facility which is properly attributable to the portion of the facility
or component which is completed during such taxable year.
`(ii) CARRY-OVER OF CERTAIN AMOUNTS- In the case of a facility or component
of a facility which is not self-constructed--
`(I) if the amount which (but for clause (i)) would have been taken
into account under paragraph (1)(B) for the taxable year exceeds the
limitation of clause (i), then the amount of such excess shall be
taken into account under paragraph (1)(B) for the succeeding taxable
year, and
`(II) if the limitation of clause (i) for the taxable year exceeds
the amount taken into account under paragraph (1)(B), then the amount
of such excess shall increase the limitation of clause (i) for the
succeeding taxable year.
`(D) DETERMINATION OF PERCENTAGE OF COMPLETION- The determination under
subparagraph (C)(i) of the portion of the overall cost to the taxpayer
of the construction which is properly attributable to construction completed
during any taxable year shall be made on the basis of engineering or architectural
estimates or on the basis of cost accounting records. Unless the taxpayer
establishes otherwise by clear and convincing evidence, the construction
shall be deemed to be completed not more rapidly than ratably over the
normal construction period.
`(E) NO PROGRESS EXPENDITURES FOR CERTAIN PRIOR PERIODS- No qualified
nuclear facility expenditures shall be taken into account under this subsection
for any period before the first day of the first taxable year to which
an election under this subsection applies.
`(F) NO PROGRESS EXPENDITURES FOR PROPERTY FOR YEAR IT IS PLACED IN SERVICE,
ETC- In the case of any qualified nuclear facility, no qualified nuclear
facility expenditures shall be taken into account under this subsection
for the earlier of--
`(i) the taxable year in which the facility is placed in service, or
`(ii) the first taxable year for which recapture is required under section
50(a)(2) with respect to such facility, or for any taxable year thereafter.
`(3) SELF-CONSTRUCTED- For purposes of this subsection--
`(A) The term `self-constructed facility' means any facility if it is
reasonable to believe that more than half of the qualified nuclear facility
expenditures for such facility will be made directly by the taxpayer.
`(B) A component of a facility shall be treated as not self-constructed
if the cost of the component is at least 5 percent of the expected cost
of the facility and the component is acquired by the taxpayer.
`(4) ELECTION- An election shall be made under this section for a qualified
nuclear power facility by claiming the nuclear power facility construction
credit for expenditures described in paragraph (1) on a tax return filed
by the due date for such return (taking into account extensions). Such an
election shall apply to the taxable year for which made and all subsequent
taxable years. Such an election, once made, may be revoked only with the
consent of the Secretary.
`(d) National Limitation on Amount of Investments Designated- Subsection (a)
shall not apply to the extent that the aggregate nuclear power facility construction
credit allowed under such subsection exceeds $2,000,000,000.
`(e) Definitions and Special Rules- For purposes of this section--
`(1) QUALIFIED NUCLEAR POWER FACILITY- The term `qualified nuclear power
facility' means an advanced nuclear power facility (as defined in section
45J), the construction of which was approved by the Nuclear Regulatory Commission
on or before December 31, 2013.
`(2) QUALIFIED NUCLEAR POWER FACILITY EXPENDITURES-
`(A) IN GENERAL- The term `qualified nuclear power facility expenditures'
means any amount properly chargeable to capital account--
`(i) with respect to a qualified nuclear power facility,
`(ii) for which depreciation is allowable under section 168, and
`(iii) which are incurred before the qualified nuclear power facility
is placed in service or in connection with the placement of such facility
in service.
`(B) PRE-EFFECTIVE DATE EXPENDITURES- Qualified nuclear power facility
expenditures do not include any expenditures incurred by the taxpayer
before January 1, 2008, unless such expenditures constitute less than
20 percent of the total qualified nuclear power facility expenditures
(determined without regard to this subparagraph) for the qualified nuclear
power facility.
`(3) DELAYS AND SUSPENSION OF CONSTRUCTION-
`(A) IN GENERAL- For purposes of applying this section and section 50,
a nuclear power facility that is under construction shall cease to be
treated as a facility that will be a qualified nuclear power facility
as of the earlier of--
`(i) the date on which the taxpayer decides to terminate construction
of the facility, or
`(ii) the last day of any 24 month period in which the taxpayer has
failed to incur qualified nuclear power facility expenditures totaling
at least 20 percent of the expected total cost of the nuclear power
facility.
`(B) AUTHORITY TO WAIVE- The Secretary may waive the application of clause
(ii) of subparagraph (A) if the Secretary determines that the taxpayer
intended to continue the construction of the qualified nuclear power facility
and the expenditures were not incurred for reasons outside the control
of the taxpayer.
`(C) RESUMPTION OF CONSTRUCTION- If a nuclear power facility that is under
construction ceases to be a qualified nuclear power facility by reason
of paragraph (2) and work is subsequently resumed on the construction
of such facility--
`(i) the date work is subsequently resumed shall be treated as the date
that construction began for purposes of paragraph (1), and
`(ii) if the facility is a qualified nuclear power facility, the qualified
nuclear power facility expenditures shall be determined without regard
to any delay or temporary termination of construction of the facility.'.
(c) Provisions Relating to Credit Recapture-
(1) PROGRESS EXPENDITURE RECAPTURE RULES-
(A) BASIC RULES- Subparagraph (A) of section 50(a)(2) of such Code is
amended to read as follows:
`(A) IN GENERAL- If during any taxable year any building to which section
47(d) applied or any facility to which section 48D(c) applied ceases (by
reason of sale or other disposition, cancellation or abandonment of contract,
or otherwise) to be, with respect to the taxpayer, property which, when
placed in service, will be a qualified rehabilitated building or a qualified
nuclear power facility, then the tax under this chapter for such taxable
year shall be increased by an amount equal to the aggregate decrease in
the credits allowed under section 38 for all prior taxable years which
would have resulted solely from reducing to zero the credit determined
under this subpart with respect to such building or facility.'.
(B) AMENDMENT TO EXCESS CREDIT RECAPTURE RULE- Subparagraph (B) of section
50(a)(2) of such Code is amended by--
(i) inserting `or paragraph (2) of section 48D(b)' after `paragraph
(2) of section 47(b)',
(ii) inserting `or section 48D(b)(1)' after `section 47(b)(1)', and
(iii) inserting `or facility' after `building'.
(C) AMENDMENT OF SALE AND LEASEBACK RULE- Subparagraph (C) of section
50(a)(2) of such Code is amended by--
(i) inserting `or qualified nuclear power facility expenditures' after
`qualified rehabilitation expenditures', and
(ii) inserting `or section 48D(c)' after `section 47(d)'.
(D) OTHER AMENDMENT- Subparagraph (D) of section 50(a)(2) of such Code
is amended by inserting `or section 48D(c)' after `section 47(d)'.
(d) No Basis Adjustment- Section 50(c) of such Code is amended by inserting
at the end thereof the following new paragraph:
`(6) NUCLEAR POWER FACILITY CONSTRUCTION CREDIT- Paragraphs (1) and (2)
shall not apply to the nuclear power facility construction credit.'.
(e) Technical Amendments- The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by inserting after the item
relating to section 48C the following new item:
`Sec. 48D. Nuclear power facility construction credit.'.
(f) Effective Date- The amendments made by this section shall be effective
for expenditures incurred and property placed in service in taxable years
beginning after the date of the enactment of this Act.
SEC. 103. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC BIOMASS ALCOHOL FUEL
PLANT PROPERTY.
(a) In General- Paragraph (3) of section 168(l) of the Internal Revenue Code
of 1986 (relating to special allowance for cellulosic biomass ethanol plant
property) is amended to read as follows:
`(3) CELLULOSIC BIOMASS ALCOHOL- For purposes of this subsection, the term
`cellulosic biomass alcohol' means any alcohol produced from any lignocellulosic
or hemicellulosic matter that is available on a renewable or recurring basis.'.
(b) Conforming Amendments-
(1) Subsection (l) of section 168 of such Code is amended by striking `cellulosic
biomass ethanol' each place it appears and inserting `cellulosic biomass
alcohol'.
(2) The heading of section 168(l) of such Code is amended by striking `Cellulosic
Biomass Ethanol' and inserting `Cellulosic Biomass Alcohol'.
(3) The heading of paragraph (2) of section 168(l) of such Code is amended
by striking `CELLULOSIC BIOMASS ETHANOL' and inserting `CELLULOSIC BIOMASS
ALCOHOL'.
(c) Effective Date- The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act, in taxable
years ending after such date.
Subtitle B--Electricity and Renewables
SEC. 111. EXTENSION AND MODIFICATION OF ENERGY INVESTMENT TAX CREDIT.
(1) 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 `January 1, 2009' and inserting `January 1, 2017'.
(2) FUEL CELL PROPERTY- Subparagraph (E) of section 48(c)(1) of such Code
(relating to qualified fuel cell property) is amended by striking `December
31, 2008' and inserting `December 31, 2016'.
(b) Allowance of Energy Credit Against Alternative Minimum Tax- 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 striking the period at the
end of clause (iv) and inserting `, and', and by adding at the end the following
new clause:
`(v) the credit determined under section 46 to the extent that such credit
is attributable to the energy credit determined under section 48.'.
(c) Increase of Credit Limitation for Fuel Cell Property- Subparagraph (B)
of section 48(c)(1) of such Code is amended by striking `$500' and inserting
`$1,500'.
(d) Public Electric Utility Property Taken Into Account-
(1) IN GENERAL- Paragraph (3) of section 48(a) of such Code is amended by
striking the second sentence thereof.
(2) CONFORMING AMENDMENTS-
(A) Paragraph (1) of section 48(c) of such Code is amended by striking
subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).
(B) Paragraph (2) of section 48(c) of such Code is amended by striking
subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).
(e) Clerical Amendments- Paragraphs (1)(B) and (2)(B) of section 48(c) of
such Code are each amended by striking `paragraph (1)' and inserting `subsection
(a)'.
(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments
made by this section shall take effect on the date of the enactment of this
Act.
(2) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX- The amendments made by subsection
(b) shall apply to credits determined under section 46 of the Internal Revenue
Code of 1986 in taxable years beginning after the date of the enactment
of this Act and to carrybacks of such credits.
(3) INCREASE IN LIMITATION FOR FUEL CELL PROPERTY- The amendment made by
subsection (c) shall apply to periods after the date of the enactment of
this Act, in taxable years ending after such date, under rules similar to
the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect
on the day before the date of the enactment of the Revenue Reconciliation
Act of 1990).
(4) PUBLIC ELECTRIC UTILITY PROPERTY- The amendments made by subsection
(d) shall apply to periods after June 20, 2008, in taxable years ending
after such date, under rules similar to the rules of section 48(m) of the
Internal Revenue Code of 1986 (as in effect on the day before the date of
the enactment of the Revenue Reconciliation Act of 1990).
SEC. 112. CREDIT RATE PARITY FOR ALL RENEWABLE RESOURCES UNDER ELECTRICITY
PRODUCTION CREDIT.
(a) In General- Section 45(b)(4)(A) of the Internal Revenue Code of 1986 (relating
to credit rate) is amended by inserting `and before 2008' after `2003'.
(b) Effective Date- The amendment made by this section shall apply to electricity
produced and sold after December 31, 2007.
SEC. 113. EXTENSION OF CREDIT FOR PRODUCING ELECTRICITY FROM CERTAIN RENEWABLE
RESOURCES.
Subsection (d) of section 45 of the Internal Revenue Code of 1986 is amended
by striking `January 1, 2009' each place it appears and inserting `January
1, 2014'.
SEC. 114. EXPANSION OF CREDIT FOR ELECTRICITY PRODUCED FROM AGRICULTURAL
LIVESTOCK WASTE NUTRIENTS.
(a) Increase in Credit Rate- Subparagraph (A) of section 45(b)(4) of the Internal
Revenue Code of 1986 (relating to credit rate) is amended by striking `paragraph
(3),' and inserting `paragraph (3) (other than subparagraph (A)(i) thereof),'.
(b) Biogas and Thermal Energy Produced From Agricultural Livestock Waste Nutrients-
Section 45(e) of such Code (relating to definitions and special rules) is
amended by adding at the end the following new paragraph:
`(12) BIOGAS AND THERMAL ENERGY PRODUCED FROM AGRICULTURAL LIVESTOCK WASTE
NUTRIENTS-
`(A) IN GENERAL- In the case of an open-loop biomass facility, the term
`kilowatt hour of electricity' in paragraph (2) of subsection (a) shall
mean kilowatt hours of electricity and kilowatt-equivalent hours of biogas,
synthesis gas, and thermal energy produced from agricultural livestock
waste nutrients.
`(B) CLARIFICATION- Any requirements related to electricity production
under paragraph (3) of subsection (d) shall not cause a facility producing
biogas, synthesis gas, or thermal energy from agricultural livestock waste
nutrients to fail to be treated as a qualified facility under subsection
(d).'.
(c) Credit Allowed for On-Site Use- Section 45(e) of such Code (relating to
definitions and special rules) is amended by adding at the end the following
new paragraph:
`(13) CREDIT ALLOWED FOR ON-SITE USE- In the case of electricity or biogas,
synthesis gas, or thermal energy produced at any facility described in paragraph
(3) of subsection (d) which is equipped with net metering to determine electricity
consumption or sale (such consumption or sale to be verified by a third
party as determined by the Secretary), subsection (a)(2) shall be applied
without regard to subparagraph (B) thereof.'.
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by this section shall apply to taxable years ending after December 31, 2006.
(2) SUBSECTION (c)- The amendment made by subsection (c) shall apply to
facilities placed in service after the date of the enactment of this Act.
SEC. 115. CREDIT FOR INSTALLATION OF WIND ENERGY PROPERTY INCLUDING BY RURAL
HOMEOWNERS, FARMERS, RANCHERS, AND SMALL BUSINESSES.
(a) In General- Subpart B of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new section:
`SEC. 30D. WIND ENERGY PROPERTY.
`(a) Allowance of Credit- There shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to $1,500 with
respect to each half kilowatt of capacity of qualified wind energy property
placed in service or installed by the taxpayer during such taxable year.
`(b) Limitation- No credit shall be allowed under subsection (a) unless at
least 50 percent of the energy produced annually by the qualified wind energy
property is consumed on the site on which the property is placed in service
or installed.
`(c) Qualified Wind Energy Property- For purposes of this section, the term
`qualified wind energy property' means a wind turbine of 100 kilowatts of
rated capacity or less if--
`(1) such turbine is placed in service or installed on or in connection
with property located in the United States,
`(2) in the case of an individual, the property on or in connection with
which such turbine is installed is a dwelling unit, and
`(3) the original use of such turbine commences with the taxpayer.
`(d) Limitation Based on Amount of Tax-
`(1) IN GENERAL- The credit allowed under subsection (a) for any taxable
year shall not exceed the excess of--
`(A) the sum of the regular tax liability (as defined in section 26(b))
plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this part (other than under
this section and subpart C thereof, relating to refundable credits) and
section 1397E.
`(2) CARRYOVER OF UNUSED CREDIT- If the credit allowable under subsection
(a) exceeds the limitation imposed by paragraph (1) for such taxable year,
such excess shall be carried to the succeeding taxable year and added to
the credit allowable under subsection (a) for such taxable year.
`(e) Special Rules- For purposes of this section--
`(1) TENANT-STOCKHOLDER IN COOPERATIVE HOUSING CORPORATION- In the case
of an individual who is a tenant-stockholder (as defined in section 216(b)(2))
in a cooperative housing corporation (as defined in section 216(b)(1)),
such individual shall be treated as having paid his tenant-stockholder's
proportionate share (as defined in section 216(b)(3)) of any expenditures
paid or incurred for qualified wind energy property by such corporation,
and such credit shall be allocated appropriately to such individual.
`(A) IN GENERAL- In the case of an individual who is a member of a condominium
management association with respect to a condominium which he owns, such
individual shall be treated as having paid his proportionate share of
expenditures paid or incurred for qualified wind energy property by such
association, and such credit shall be allocated appropriately to such
individual.
`(B) CONDOMINIUM MANAGEMENT ASSOCIATION- For purposes of this paragraph,
the term `condominium management association' means an organization which
meets the requirements of section 528(c)(2) with respect to a condominium
project of which substantially all of the units are used by individuals
as dwelling units.
`(f) Basis Adjustment- For purposes of this subtitle, if a credit is allowed
under this section for any expenditure with respect to a dwelling unit or
other property, the increase in the basis of such dwelling unit or other property
which would (but for this subsection) result from such expenditure shall be
reduced by the amount of the credit so allowed.
`(g) Application of Credit- The credit allowed under this section shall apply
to property placed in service or installed after December 31, 2007, and before
January 1, 2012.'.
(b) Conforming Amendment- Subsection (a) of section 1016 of the Internal Revenue
Code of 1986 (relating to general rule for adjustments 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) in the case of a dwelling unit or other property with respect to which
a credit was allowed under section 30D, to the extent provided in section
30D(f).'.
(c) Clerical Amendment- The table of sections for subpart B of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended
by inserting after the item relating to section 30C the following new item:
`Sec. 30D. Wind energy property.'.
(d) Effective Date- The amendments made by this section shall apply to taxable
years ending after the date of the enactment of this Act.
SEC. 116. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR WIND ENERGY PROPERTY.
(a) In General- Subparagraph (A) of section 168(e)(3) of the Internal Revenue
Code of 1986 is amended by striking `and' at the end of clause (ii), by striking
the period at the end of clause (iii) and inserting `, and', and by inserting
after clause (iii) the following new clause:
`(iv) any property which would be described in subparagraph (A) of section
48(a)(3) if `wind energy' were substituted for `solar energy' in clause
(i) thereof and the last sentence of such section did not apply to such
subparagraph.'.
(b) Conforming Amendment- Section 168(e)(3)(B)(vi)(I) of such Code is amended
to read as follows:
`(I) is described in subparagraph (A) of section 48(a)(3) if the last
sentence of such section did not apply to such subparagraph,'.
(c) Effective Date- The amendments made by this section shall apply to property
placed in service in taxable years ending after the date of the enactment
of this Act.
SEC. 117. REPEAL OF DOLLAR LIMITATION AND ALLOWANCE AGAINST ALTERNATIVE
MINIMUM TAX FOR RESIDENTIAL SOLAR AND FUEL CELL PROPERTY CREDIT.
(a) Repeal of Maximum Dollar Limitation-
(1) IN GENERAL- Subsection (b) of section 25D of the Internal Revenue Code
of 1986 (relating to limitations) is amended to read as follows:
`(b) Certification of Solar Water Heating Property- No credit shall be allowed
under this section for an item of property described in subsection (d)(1)
unless such property is certified for performance by the non-profit Solar
Rating Certification Corporation or a comparable entity endorsed by the government
of the State in which such property is installed.'.
(2) CONFORMING AMENDMENTS-
(A) Subsection (e) of section 25D of such Code is amended by striking
paragraph (4) and by redesignating paragraphs (5) through (9) as paragraphs
(4) through (8), respectively.
(B) Paragraph (1) of section 25C(e) of such Code is amended by striking
`(8), and (9)' and inserting `and (8) (and paragraph (4) as in effect
before its repeal by the American-Made Energy Act of 2008)'.
(b) Credit Allowed Against Alternative Minimum Tax-
(1) IN GENERAL- Subsection (c) of section 25D of such Code is amended to
read as follows:
`(c) Limitation Based on Amount of Tax; Carryforward of Unused Credit-
`(1) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year to
which section 26(a)(2) does not apply, the credit allowed under subsection
(a) for the taxable year shall not exceed the excess of--
`(A) the sum of the regular tax liability (as defined in section 26(b))
plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this subpart (other than this
section) and section 27 for the taxable year.
`(2) CARRYFORWARD OF UNUSED CREDIT-
`(A) RULE FOR YEARS IN WHICH ALL PERSONAL CREDITS ALLOWED AGAINST REGULAR
AND ALTERNATIVE MINIMUM TAX- In the case of a taxable year to which section
26(a)(2) applies, if the credit allowable under subsection (a) exceeds
the limitation imposed by section 26(a)(2) for such taxable year reduced
by the sum of the credits allowable under this subpart (other than this
section), such excess shall be carried to the succeeding taxable year
and added to the credit allowable under subsection (a) for such succeeding
taxable year.
`(B) RULE FOR OTHER YEARS- In the case of a taxable year to which section
26(a)(2) does not apply, if the credit allowable under subsection (a)
exceeds the limitation imposed by paragraph (1) for such taxable year,
such excess shall be carried to the succeeding taxable year and added
to the credit allowable under subsection (a) for such succeeding taxable
year.'.
(2) CONFORMING AMENDMENTS-
(A) Section 23(b)(4)(B) of such Code is amended by inserting `and section
25D' after `this section'.
(B) Section 24(b)(3)(B) of such Code is amended by striking `and 25B'
and inserting `, 25B, and 25D'.
(C) Section 25B(g)(2) of such Code is amended by striking `section 23'
and inserting `sections 23 and 25D'.
(D) Section 26(a)(1) of such Code is amended by striking `and 25B' and
inserting `25B, and 25D'.
(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments
made by this section shall apply to expenditures made after the date of
the enactment of this Act.
(2) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX-
(A) IN GENERAL- The amendments made by subsection (b) shall apply to taxable
years beginning after the date of the enactment of this Act.
(B) APPLICATION OF EGTRRA SUNSET- The amendments made by subparagraphs
(A) and (B) of subsection (b)(2) shall be subject to title IX of the Economic
Growth and Tax Relief Reconciliation Act of 2001 in the same manner as
the provisions of such Act to which such amendments relate.
SEC. 118. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General- Part IV of subchapter A of chapter 1 of the Internal Revenue
Code of 1986 (relating to credits against tax) is amended by adding at the
end the following new subpart:
`Subpart I--Qualified Tax Credit Bonds
`Sec. 54A. Credit to holders of qualified tax credit bonds.
`Sec. 54B. New clean renewable energy bonds.
`SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.
`(a) Allowance of Credit- If a taxpayer holds a qualified tax credit bond
on one or more credit allowance dates of the bond during any taxable year,
there shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the sum of the credits determined
under subsection (b) with respect to such dates.
`(1) IN GENERAL- The amount of the credit determined under this subsection
with respect to any credit allowance date for a qualified tax credit bond
is 25 percent of the annual credit determined with respect to such bond.
`(2) ANNUAL CREDIT- The annual credit determined with respect to any qualified
tax credit bond is the product of--
`(A) the applicable credit rate, multiplied by
`(B) the outstanding face amount of the bond.
`(3) APPLICABLE CREDIT RATE- For purposes of paragraph (2), the applicable
credit rate is the rate which the Secretary estimates will permit the issuance
of qualified tax credit bonds with a specified maturity or redemption date
without discount and without interest cost to the qualified issuer. The
applicable credit rate with respect to any qualified tax credit bond shall
be determined as of the first day on which there is a binding, written contract
for the sale or exchange of the bond.
`(4) SPECIAL RULE FOR ISSUANCE AND REDEMPTION- In the case of a bond which
is issued during the 3-month period ending on a credit allowance date, the
amount of the credit determined under this subsection with respect to such
credit allowance date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during which the bond
is outstanding. A similar rule shall apply when the bond is redeemed or
matures.
`(c) Limitation Based on Amount of Tax-
`(1) IN GENERAL- The credit allowed under subsection (a) for any taxable
year shall not exceed the excess of--
`(A) the sum of the regular tax liability (as defined in section 26(b))
plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this part (other than subpart
C and this subpart).
`(2) CARRYOVER OF UNUSED CREDIT- If the credit allowable under subsection
(a) exceeds the limitation imposed by paragraph (1) for such taxable year,
such excess shall be carried to the succeeding taxable year and added to
the credit allowable under subsection (a) for such taxable year (determined
before the application of paragraph (1) for such succeeding taxable year).
`(d) Qualified Tax Credit Bond- For purposes of this section--
`(1) QUALIFIED TAX CREDIT BOND- The term `qualified tax credit bond' means
a new clean renewable energy bond which is part of an issue that meets the
requirements of paragraphs (2), (3), (4), (5), and (6).
`(2) SPECIAL RULES RELATING TO EXPENDITURES-
`(A) IN GENERAL- An issue shall be treated as meeting the requirements
of this paragraph if, as of the date of issuance, the issuer reasonably
expects--
`(i) 100 percent or more of the available project proceeds to be spent
for 1 or more qualified purposes within the 3-year period beginning
on such date of issuance, and
`(ii) a binding commitment with a third party to spend at least 10 percent
of such available project proceeds will be incurred within the 6-month
period beginning on such date of issuance.
`(B) FAILURE TO SPEND REQUIRED AMOUNT OF BOND PROCEEDS WITHIN 3 YEARS-
`(i) IN GENERAL- To the extent that less than 100 percent of the available
project proceeds of the issue are expended by the close of the expenditure
period for 1 or more qualified purposes, the issuer shall redeem all
of the nonqualified bonds within 90 days after the end of such period.
For purposes of this paragraph, the amount of the nonqualified bonds
required to be redeemed shall be determined in the same manner as under
section 142.
`(ii) EXPENDITURE PERIOD- For purposes of this subpart, the term `expenditure
period' means, with respect to any issue, the 3-year period beginning
on the date of issuance. Such term shall include any extension of such
period under clause (iii).
`(iii) EXTENSION OF PERIOD- Upon submission of a request prior to the
expiration of the expenditure period (determined without regard to any
extension under this clause), the Secretary may extend such period if
the issuer establishes that the failure to expend the proceeds within
the original expenditure period is due to reasonable cause and the expenditures
for qualified purposes will continue to proceed with due diligence.
`(C) QUALIFIED PURPOSE- For purposes of this paragraph, the term `qualified
purpose' means a purpose specified in section 54B(a)(1).
`(D) REIMBURSEMENT- For purposes of this subtitle, available project proceeds
of an issue shall be treated as spent for a qualified purpose if such
proceeds are used to reimburse the issuer for amounts paid for a qualified
purpose after the date that the Secretary makes an allocation of bond
limitation with respect to such issue, but only if--
`(i) prior to the payment of the original expenditure, the issuer declared
its intent to reimburse such expenditure with the proceeds of a qualified
tax credit bond,
`(ii) not later than 60 days after payment of the original expenditure,
the issuer adopts an official intent to reimburse the original expenditure
with such proceeds, and
`(iii) the reimbursement is made not later than 18 months after the
date the original expenditure is paid.
`(3) REPORTING- An issue shall be treated as meeting the requirements of
this paragraph if the issuer of qualified tax credit bonds submits reports
similar to the reports required under section 149(e).
`(4) SPECIAL RULES RELATING TO ARBITRAGE-
`(A) IN GENERAL- An issue shall be treated as meeting the requirements
of this paragraph if the issuer satisfies the requirements of section
148 with respect to the proceeds of the issue.
`(B) SPECIAL RULE FOR INVESTMENTS DURING EXPENDITURE PERIOD- An issue
shall not be treated as failing to meet the requirements of subparagraph
(A) by reason of any investment of available project proceeds during the
expenditure period.
`(C) SPECIAL RULE FOR RESERVE FUNDS- An issue shall not be treated as
failing to meet the requirements of subparagraph (A) by reason of any
fund which is expected to be used to repay such issue if--
`(i) such fund is funded at a rate not more rapid than equal annual
installments,
`(ii) such fund is funded in a manner that such fund will not exceed
the amount necessary to repay the issue if invested at the maximum rate
permitted under clause (iii), and
`(iii) the yield on such fund is not greater than the discount rate
determined under paragraph (5)(B) with respect to the issue.
`(5) MATURITY LIMITATION-
`(A) IN GENERAL- An issue shall not be treated as meeting the requirements
of this paragraph if the maturity of any bond which is part of such issue
exceeds the maximum term determined by the Secretary under subparagraph
(B).
`(B) MAXIMUM TERM- During each calendar month, the Secretary shall determine
the maximum term permitted under this paragraph for bonds issued during
the following calendar month. Such maximum term shall be the term which
the Secretary estimates will result in the present value of the obligation
to repay the principal on the bond being equal to 50 percent of the face
amount of such bond. Such present value shall be determined using as a
discount rate the average annual interest rate of tax-exempt obligations
having a term of 10 years or more which are issued during the month. If
the term as so determined is not a multiple of a whole year, such term
shall be rounded to the next highest whole year.
`(6) PROHIBITION ON FINANCIAL CONFLICTS OF INTEREST- An issue shall be treated
as meeting the requirements of this paragraph if the issuer certifies that--
`(A) applicable State and local law requirements governing conflicts of
interest are satisfied with respect to such issue, and
`(B) if the Secretary prescribes additional conflicts of interest rules
governing the appropriate Members of Congress, Federal, State, and local
officials, and their spouses, such additional rules are satisfied with
respect to such issue.
`(e) Other Definitions- For purposes of this subchapter--
`(1) CREDIT ALLOWANCE DATE- The term `credit allowance date' means--
Such term includes the last day on which the bond is outstanding.
`(2) BOND- The term `bond' includes any obligation.
`(3) STATE- The term `State' includes the District of Columbia and any possession
of the United States.
`(4) AVAILABLE PROJECT PROCEEDS- The term `available project proceeds' means--
`(i) the proceeds from the sale of an issue, over
`(ii) the issuance costs financed by the issue (to the extent that such
costs do not exceed 2 percent of such proceeds), and
`(B) the proceeds from any investment of the excess described in subparagraph
(A).
`(f) Credit Treated as Interest- For purposes of this subtitle, the credit
determined under subsection (a) shall be treated as interest which is includible
in gross income.
`(g) S Corporations and Partnerships- In the case of a tax credit bond held
by an S corporation or partnership, the allocation of the credit allowed by
this section to the shareholders of such corporation or partners of such partnership
shall be treated as a distribution.
`(h) Bonds Held by Regulated Investment Companies and Real Estate Investment
Trusts- If any qualified tax credit bond is held by a regulated investment
company or a real estate investment trust, the credit determined under subsection
(a) shall be allowed to shareholders of such company or beneficiaries of such
trust (and any gross income included under subsection (f) with respect to
such credit shall be treated as distributed to such shareholders or beneficiaries)
under procedures prescribed by the Secretary.
`(i) Credits May Be Stripped- Under regulations prescribed by the Secretary--
`(1) IN GENERAL- There may be a separation (including at issuance) of the
ownership of a qualified tax credit bond and the entitlement to the credit
under this section with respect to such bond. In case of any such separation,
the credit under this section shall be allowed to the person who on the
credit allowance date holds the instrument evidencing the entitlement to
the credit and not to the holder of the bond.
`(2) CERTAIN RULES TO APPLY- In the case of a separation described in paragraph
(1), the rules of section 1286 shall apply to the qualified tax credit bond
as if it were a stripped bond and to the credit under this section as if
it were a stripped coupon.
`SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.
`(a) New Clean Renewable Energy Bond- For purposes of this subpart, the term
`new clean renewable energy bond' means any bond issued as part of an issue
if--
`(1) 100 percent of the available project proceeds of such issue are to
be used for capital expenditures incurred by public power providers or cooperative
electric companies for one or more qualified renewable energy facilities,
`(2) the bond is issued by a qualified issuer, and
`(3) the issuer designates such bond for purposes of this section.
`(b) Reduced Credit Amount- The annual credit determined under section 54A(b)
with respect to any new clean renewable energy bond shall be 70 percent of
the amount so determined without regard to this subsection.
`(c) Limitation on Amount of Bonds Designated-
`(1) IN GENERAL- The maximum aggregate face amount of bonds which may be
designated under subsection (a) by any issuer shall not exceed the limitation
amount allocated under this subsection to such issuer.
`(2) NATIONAL LIMITATION ON AMOUNT OF BONDS DESIGNATED- There is a national
new clean renewable energy bond limitation of $2,000,000,000 which shall
be allocated by the Secretary as provided in paragraph (3), except that--
`(A) not more than 60 percent thereof may be allocated to qualified projects
of public power providers, and
`(B) not more than 40 percent thereof may be allocated to qualified projects
of cooperative electric companies.
`(3) METHOD OF ALLOCATION-
`(A) ALLOCATION AMONG PUBLIC POWER PROVIDERS- After the Secretary determines
the qualified projects of public power providers which are appropriate
for receiving an allocation of the national new clean renewable energy
bond limitation, the Secretary shall, to the maximum extent practicable,
make allocations among such projects in such manner that the amount allocated
to each such project bears the same ratio to the cost of such project
as the limitation under subparagraph (2)(A) bears to the cost of all such
projects.
`(B) ALLOCATION AMONG COOPERATIVE ELECTRIC COMPANIES- The Secretary shall
make allocations of the amount of the national new clean renewable energy
bond limitation described in paragraph (2)(B) among qualified projects
of cooperative electric companies in such manner as the Secretary determines
appropriate.
`(d) Definitions- For purposes of this section--
`(1) QUALIFIED RENEWABLE ENERGY FACILITY- The term `qualified renewable
energy facility' means a qualified facility (as determined under section
45(d) without regard to paragraphs (8) and (10) thereof and to any placed
in service date) owned by a public power provider or a cooperative electric
company.
`(2) PUBLIC POWER PROVIDER- The term `public power provider' means a State
utility with a service obligation, as such terms are defined in section
217 of the Federal Power Act (as in effect on the date of the enactment
of this paragraph).
`(3) COOPERATIVE ELECTRIC COMPANY- The term `cooperative electric company'
means a mutual or cooperative electric company described in section 501(c)(12)
or section 1381(a)(2)(C).
`(4) CLEAN RENEWABLE ENERGY BOND LENDER- The term `clean renewable energy
bond lender' means a lender which is a cooperative which is owned by, or
has outstanding loans to, 100 or more cooperative electric companies and
is in existence on February 1, 2002, and shall include any affiliated entity
which is controlled by such lender.
`(5) QUALIFIED ISSUER- The term `qualified issuer' means a public power
provider, a cooperative electric company, a clean renewable energy bond
lender, or a not-for-profit electric utility which has received a loan or
loan guarantee under the Rural Electrification Act.'.
(b) Reporting- Subsection (d) of section 6049 of such Code (relating to returns
regarding payments of interest) is amended by adding at the end the following
new paragraph:
`(9) REPORTING OF CREDIT ON QUALIFIED TAX CREDIT BONDS-
`(A) IN GENERAL- For purposes of subsection (a), the term `interest' includes
amounts includible in gross income under section 54A and such amounts
shall be treated as paid on the credit allowance date (as defined in section
54A(e)(1)).
`(B) REPORTING TO CORPORATIONS, ETC- Except as otherwise provided in regulations,
in the case of any interest described in subparagraph (A) of this paragraph,
subsection (b)(4) of this section shall be applied without regard to subparagraphs
(A), (H), (I), (J), (K), and (L)(i).
`(C) REGULATORY AUTHORITY- The Secretary may prescribe such regulations
as are necessary or appropriate to carry out the purposes of this paragraph,
including regulations which require more frequent or more detailed reporting.'.
(c) Conforming Amendments-
(1) Sections 54(c)(2) and 1400N(l)(3)(B) of such Code are each amended by
striking `subpart C' and inserting `subparts C and I'.
(2) Section 1397E(c)(2) of such Code is amended by striking `subpart H'
and inserting `subparts H and I'.
(3) Section 6401(b)(1) of such Code is amended by striking `and H' and inserting
`H, and I'.
(4) The heading of subpart H of part IV of subchapter A of chapter 1 of
such Code is amended by striking `Certain Bonds' and inserting `Clean
Renewable Energy Bonds'.
(5) The table of subparts for part IV of subchapter A of chapter 1 of such
Code is amended by striking the item relating to subpart H and inserting
the following new items:
`subpart h. nonrefundable credit to holders of clean renewable energy bonds.
`subpart i. qualified tax credit bonds.'.
(d) Effective Dates- The amendments made by this section shall apply to obligations
issued after the date of the enactment of this Act.
SEC. 119. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT
PROPERTY.
(a) Extension- Subsection (g) of section 25D of the Internal Revenue Code
of 1986 (relating to termination) is amended by striking `2008' and inserting
`2016'.
(b) Solar Electric Property- Paragraph (1) of section 25D(a) of such Code
(relating to allowance of credit) is amended by striking `30 percent of'.
(c) Modification of Maximum Credit- Paragraph (1) of section 25D(b) of the
Internal Revenue Code of 1986 (relating to limitations) is amended to read
as follows:
`(1) MAXIMUM CREDIT- The credit allowed under subsection (a) for any taxable
year shall not exceed--
`(A) $1,500 with respect to each half kilowatt of installed capacity of
qualified solar electric property for which qualified solar electric property
expenditures are made,
`(B) $2,000 with respect to any qualified solar water heating property
expenditures, and
`(C) $500 with respect to each half kilowatt of capacity of qualified
fuel cell property (as defined in section 48(c)(1)) for which qualified
fuel cell property expenditures are made.'.
(d) Definition of Qualified Solar Water Heating Property Expenditure- Paragraph
(1) of section 25D(d) of such Code is amended by striking `to heat water for
use in' and inserting `to heat or cool (or provide hot water for use in)'.
(e) Definition of Qualified Photovoltaic Property Expenditure- Paragraph (2)
of section 25D(d) of such Code is amended by inserting `, including advanced
energy storage systems installed as an integrated component of the foregoing'
after `taxpayer'.
(f) Credit Allowed Against Alternative Minimum Tax-
(1) IN GENERAL- Section 25D(b) of the Internal Revenue Code of 1986 (as
amended by subsection (b)) is amended by adding at the end the following
new paragraph:
`(3) CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM TAX- The credit allowed
under subsection (a) for the taxable year shall not exceed the excess of--
`(A) the sum of the regular tax liability (as defined in section 26(b))
plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under subpart A of part IV of subchapter
A (other than this section) and section 27 for the taxable year.'.
(2) CONFORMING AMENDMENTS-
(A) Subsection (c) of section 25D of such Code is amended to read as follows:
`(c) Carryforward of Unused Credit- If the credit allowable under subsection
(a) for any taxable year exceeds the limitation imposed by subsection (b)(3)
for such taxable year, such excess shall be carried to the succeeding taxable
year and added to the credit allowable under subsection (a) for such succeeding
taxable year.'.
(B) Section 23(b)(4)(B) of such Code is amended by inserting `and section
25D' after `this section'.
(C) Section 24(b)(3)(B) of such Code is amended by striking `sections
23 and 25B' and inserting `sections 23, 25B, and 25D'.
(D) Section 26(a)(1) of such Code is amended by striking `and 25B' and
inserting `25B, and 25D'.
(g) Effective Date- The amendments made by this section shall apply to expenditures
made in taxable years beginning after December 31, 2006.
Subtitle C--Coal-to-Liquid Fuel
SEC. 121. EXTENSION OF ALTERNATIVE FUEL CREDIT FOR FUEL DERIVED FROM COAL.
(a) Alternative Fuel Credit- Paragraph (4) of section 6426(d) of the Internal
Revenue Code of 1986 is amended to read as follows:
`(4) TERMINATION- This subsection shall not apply to--
`(A) any sale or use involving liquid fuel derived from a feedstock that
is primarily domestic coal (including peat) for any period after September
30, 2020,
`(B) any sale or use involving liquified hydrogen for any period after
September 30, 2014, and
`(C) any other sale or use for any period after September 30, 2009.'.
(1) IN GENERAL- Paragraph (5) of section 6427(e) of the Internal Revenue
Code of 1986 is amended by striking `and' and the end of subparagraph (C),
by striking the period at the end of subparagraph (D) and inserting `, and',
and by adding at the end the following new subparagraph:
`(E) any alternative fuel or alternative fuel mixture (as so defined)
involving transportation grade liquid fuel derived from coal (including
peat) sold or used after September 30, 2020.'.
(2) CONFORMING AMENDMENT- Section 6427(e)(5)(C) of such Code is amended
by striking `subparagraph (D)' and inserting `subparagraphs (D) and (E)'.
(c) Conforming Amendment- Section 6426(d)(2)(E) of such Code is amended by
inserting `transportation grade' before `liquid fuel' and by striking `through
the Fischer-Tropsch process'.
(d) Effective Date- The amendments made by this section shall apply to any
sale or use for any period after the date of enactment of this Act.
Subtitle D--Energy Efficiency
SEC. 131. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.
(a) In General- Section 45L(g) of the Internal Revenue Code of 1986 is amended
by striking `December 31, 2008' and inserting `December 31, 2013'.
(b) Effective Date- The amendment made by this section shall apply to qualified
new energy efficient homes acquired after the date of enactment of this Act,
in taxable years ending after such date.
SEC. 132. MODIFICATION AND EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.
(a) Increase in Credit Amount-
(1) IN GENERAL- Subparagraph (A) of section 179D(b)(1) of the Internal Revenue
Code of 1986 is amended by striking `$1.80' and inserting `$2.25'.
(2) PARTIAL ALLOWANCE- Subparagraph (A) of section 179D(d)(1) of such Code
is amended--
(A) by striking `$.60' and inserting `$.75', and
(B) by striking `$1.80' and inserting `$2.25'.
(b) Extension- Section 179D(h) of such Code is amended by striking `December
31, 2007' and inserting `December 31, 2013'.
(c) Effective Date- The amendments made by this section shall apply to property
placed in service after December 31, 2006.
Subtitle E--Alternative Vehicle Fuels
SEC. 141. CONSUMER CREDIT FOR PURCHASE OF FLEXIBLE FUEL MOTOR VEHICLE.
(a) In General- Section 30B of the Internal Revenue Code of 1986 (relating
to alternative motor vehicle credit) is amended--
(1) in subsection (a) by striking `and' at the end of paragraph (3), by
striking the period and inserting `, and' at the end of paragraph (4), and
by adding at the end the following new paragraph:
`(5) the qualified flexible fuel motor vehicle credit determined under subsection
(f).', and
(2) by redesignating subsections (f), (g), (h), (i), and (j) as subsections
(g), (h), (i), (j), and (k), respectively, and by inserting after subsection
(e) the following new subsection:
`(f) Qualified Flexible Fuel Motor Vehicle Credit-
`(1) ALLOWANCE OF CREDIT- For purposes of subsection (a), the qualified
flexible fuel motor vehicle credit determined under this subsection for
the taxable year is an amount equal to the sum of--
`(A) $100 for each qualified flexible fuel motor vehicle placed in service
by the taxpayer during the taxable year that is not a new qualified hybrid
motor vehicle (as described in subsection (d)(3)), plus
`(B) $200 for each qualified flexible fuel motor vehicle placed in service
by the taxpayer during the taxable year that is a new qualified hybrid
motor vehicle (as described in subsection (d)(3)).
`(2) QUALIFIED FLEXIBLE FUEL MOTOR VEHICLE- For purposes of this subsection--
`(A) IN GENERAL- The term `qualified flexible fuel motor vehicle' means
a vehicle capable of operating on gasoline and on any mixture containing
gasoline and up to 85 percent ethanol.
`(B) OTHER REQUIREMENTS- A vehicle meets the requirements of this paragraph
if--
`(i) the original use of the vehicle commences with the taxpayer,
`(ii) the vehicle is acquired for use or lease by the taxpayer and not
for resale, and
`(iii) the vehicle is made by a manufacturer in the United States.'.
(b) Termination- Subsection (k) of section 30B of such Code (as redesignated
by subsection (a)) is amended by striking `and' at the end of paragraph (3),
by striking the period and inserting `, and' at the end of paragraph (4),
and by adding at the end the following new paragraph:
`(5) in the case of a qualified flexible fuel motor vehicle (as described
in subsection (f)(2)), December 31, 2012.'.
(c) Conforming Amendments-
(1) Paragraph (4) of section 30B(i) of such Code (as redesignated by subsection
(a)) is amended by striking `subsection (g)' and inserting `subsection (h)'.
(2) Paragraph (6) of section 30B(i) of such Code (as redesignated by subsection
(a)) is amended by striking `subsection (g)' each place it appears and inserting
`subsection (h)'.
(3) Paragraph (25) of section 38(b) of such Code is amended by striking
`section 30B(g)(1)' and inserting `section 30B(h)(1)'.
(4) Paragraph (3) of section 55(c) of such Code is amended by striking `30B(g)(2)'
and inserting `30B(h)(2)'.
(5) Paragraph (36) of section 1016(a) of such Code is amended by striking
`section 30B(h)(4)' and inserting `section 30B(i)(4)'.
(6) Subsection (m) of section 6501 of such Code is amended by striking `30B(h)(9)'
and inserting `30B(i)(9)'.
(d) Effective Date- The amendments made by this section shall apply to purchases
made after the date of the enactment of this Act, in taxable years ending
after such date.
SEC. 142. REPEAL OF PROHIBITION ON PROCUREMENT AND ACQUISITION OF ALTERNATIVE
FUELS.
Section 526 of the Energy Independence and Security Act of 2007 is hereby
repealed.
Subtitle F--Biofuel Production
SEC. 151. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL AND RENEWABLE
DIESEL.
(a) In General- Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of the Internal
Revenue Code of 1986 are each amended by striking `December 31, 2008' and
inserting `December 31, 2010'.
(b) Uniform Treatment of Diesel Produced From Biomass- Paragraph (3) of section
40A(f) of such Code is amended by striking `using a thermal depolymerization
process'.
(c) Eligibility of Certain Aviation Fuel- Section 40A(f)(3) of such Code (defining
renewable diesel) is amended by adding at the end the following new flush
sentence: `The term `renewable diesel' also means fuel derived from biomass
(as defined in section 45K(c)(3)) using a thermal depolymerization process
which meets the requirements of a Department of Defense specification for
military jet fuel or an American Society of Testing and Materials specification
for aviation turbine fuel.'.
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by this section shall apply to fuel produced, and sold or used, after the
date of the enactment of this Act.
(2) UNIFORM TREATMENT OF DIESEL PRODUCED FROM BIOMASS- The amendments made
by subsection (b) shall apply to fuel produced, and sold or used, after
the date which is 30 days after the date of the enactment of this Act.
Subtitle G--Oil and Gas Provisions
SEC. 161. EXPENSING FOR CRUDE OIL REFINERIES.
(a) In General- Subsection (c) of section 179C of the Internal Revenue Code
of 1986 (relating to election to expense certain refineries) is amended by
adding at the end the following new paragraph:
`(4) EXTENSION TO CERTAIN FACILITIES- The term `qualified refinery property'
shall also mean any refinery or portion of a refinery--
`(A) the original use of which commences with the taxpayer,
`(B) the construction of which--
`(i) except as provided in clause (ii), is subject to a binding construction
contract entered into after December 31, 2008, and before January 1,
2015, but only if there was no written binding construction contract
entered into before January 1, 2009, or
`(ii) in the case of self-constructed property, began after December
31, 2008, and
`(C) which is placed in service by the taxpayer after the date of the
enactment of this paragraph and before January 1, 2020.'.
SEC. 162. EXTENSION OF SUSPENSION OF TAXABLE INCOME LIMIT ON PERCENTAGE
DEPLETION FOR OIL AND NATURAL GAS PRODUCED FROM MARGINAL PROPERTIES.
(a) In General- Subparagraph (H) of section 613A(c)(6) is amended by striking
`January 1, 2008' and inserting `January 1, 2012'.
(b) Effective Date- The amendments made by subsection (a) shall apply to taxable
years beginning after December 31, 2007.
SEC. 163. INCREASE IN DEPLETION RATE FOR MARGINAL OIL OR GAS PRODUCTION.
(a) Base Rate- Clause (i) of section 613A(c)(6)(C) of the Internal Revenue
Code of 1986 is amended by striking `15 percent' and inserting `20 percent'.
(b) Maximum Rate- Section 613A(c)(6)(C) of such Code is amended by striking
`25 percent' and inserting `30 percent'.
(c) Reference Price- Section 613A(c)(6)(C)(ii) of such Code is amended by
striking `$20' and inserting `$40'.
(d) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.
SEC. 164. SUSPENSION OF TAXABLE INCOME LIMITATION ON PERCENTAGE DEPLETION.
(a) In General- The first sentence of paragraph (1) of section 613A(d) of
the Internal Revenue Code of 1986 (relating to limitation based on taxable
income) is amended by striking `The deduction' and inserting `In the case
of taxable years beginning before January 1, 2008, or after December 31, 2011,
the deduction'.
(b) Effective Date- The amendment made by subsection (a) shall apply to taxable
years beginning after December 31, 2007.
SEC. 165. STUDY ON FAIR AND TRANSPARENT FUEL PRICING.
(a) Study- The Federal Trade Commission shall conduct a study to determine--
(1) the effects on competitive gasoline pricing of State guaranteed profit
laws, also known as `minimum mark-up' or `below cost sales' statutes; and
(2) the effect of credit card processing fees on gasoline costs to consumers.
(b) Report- Not later than 1 year after the date of enactment of this Act,
the Federal Trade Commission shall transmit to Congress a report on the findings
of the study conducted pursuant to subsection (a) and shall publish such report
on the Commission's Internet website.
Subtitle H--Carbon Capture and Sequestration
SEC. 171. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT INVESTMENT
CREDIT.
(a) Modification of Credit Amount- Section 48A(a) (relating to qualifying
advanced coal project credit) is amended by striking `and' at the end of paragraph
(1), by striking the period at the end of paragraph (2) and inserting `, and',
and by adding at the end the following the paragraph:
`(3) 30 percent of the qualified investment for such taxable year in the
case of projects described in clauses (iii) or (iv) of subsection (d)(3)(B).'.
(b) Expansion of Aggregate Credits- Section 48A(d)(3)(A) (relating to aggregate
credits) is amended by striking `$1,300,000,000' and inserting `$1,500,000,000'.
(c) Authorization of Additional Projects-
(1) IN GENERAL- Subparagraph (B) of section 48A(d)(3) (relating to aggregate
credits) is amended to read as follows:
`(B) PARTICULAR PROJECTS- Of the dollar amount in subparagraph (A), the
Secretary is authorized to certify--
`(i) $500,000,000 for advanced coal electricity projects the application
for which is submitted during the period described in paragraph (2)(A)(i),
`(ii) $500,000,000 for coal gasification projects the application for
which is submitted during the period described in paragraph (2)(A)(i),
and
`(iii) $500,000,000 for coal to liquid facilities which can demonstrate
that the facility would capture and sequester at least 65 percent of
the facility's carbon dioxide emissions, the application for which is
submitted during the period described in paragraph (2)(A)(ii).'.
(2) APPLICATION PERIOD FOR ADDITIONAL PROJECTS- Subparagraph (A) of section
48A(d)(2) (relating to certification) is amended to read as follows:
`(A) APPLICATION PERIOD- Each applicant for certification under this paragraph
shall submit an application meeting the requirements of subparagraph (B).
An applicant may only submit an application--
`(i) for an allocation from the dollar amount specified in clause (i)
or (ii) of paragraph (3)(A) during the 3-year period beginning on the
date the Secretary establishes the program under paragraph (1), and
`(ii) for an allocation from the dollar amount specified in clause (iii)
or (iv) of paragraph (3)(A) during the 3-year period beginning at the
earlier of the termination of the period described in clause (i) or
the date prescribed by the Secretary.'.
(3) CAPTURE AND SEQUESTRATION OF CARBON DIOXIDE EMISSIONS REQUIREMENT-
(A) IN GENERAL- Section 48A(e)(1) (relating to requirements) is amended
by striking `and' at the end of subparagraph (E), by striking the period
at the end of subparagraph (F) and inserting `; and', and by adding at
the end the following new subparagraph:
`(G) in the case of any project the application for which is submitted
during the period described in subsection (d)(2)(A)(ii), the project includes
equipment which separates and sequesters at least 65 percent (70 percent
in the case of an application for reallocated credits under subsection
(d)(4)) of such project's total carbon dioxide emissions.'.
(B) HIGHEST PRIORITY FOR PROJECTS WHICH SEQUESTER CARBON DIOXIDE EMISSIONS-
Section 48A(e)(3) is amended by striking `and' at the end of subparagraph
(A)(iii), by striking the period at the end of subparagraph (B)(3) and
inserting `, and', and by adding at the end the following new subparagraph:
`(C) give highest priority to projects with the greatest separation and
sequestration percentage of total carbon dioxide emissions.'.
(C) RECAPTURE OF CREDIT FOR FAILURE TO SEQUESTER- Section 48A (relating
to qualifying advanced coal project credit) is amended by adding at the
end the following new subsection:
`(h) Recapture of Credit for Failure to Sequester- The Secretary shall provide
for recapturing the benefit of any credit allowable under subsection (a) with
respect to any project which fails to attain or maintain the separation and
sequestration requirements of subsection (e)(1)(G).'.
(4) ADDITIONAL PRIORITY FOR RESEARCH PARTNERSHIPS- Section 48A(e)(3)(B),
as amended by paragraph (3)(B), is amended--
(A) by striking `and' at the end of clause (ii),
(B) by redesignating clause (iii) as clause (iv), and
(C) by inserting after clause (ii) the following new clause:
`(iii) applicant participants who have a research partnership with an
eligible educational institution (as defined in section 529(e)(5)),
and'.
(5) CLERICAL AMENDMENT- Section 48A(e)(3) is amended by striking `INTEGRATED
GASIFICATION COMBINED CYCLE' in the heading and inserting `CERTAIN'.
(d) Competitive Certification Awards Modification Authority- Section 48A (relating
to qualifying advanced coal project credit), as amended by subsection (c)(3),
is amended by adding at the end the following new subsection:
`(i) Competitive Certification Awards Modification Authority- In implementing
this section or section 48B, the Secretary is directed to modify the terms
of any competitive certification award and any associated closing agreement
where such modification--
`(1) is consistent with the objectives of such section,
`(2) is requested by the recipient of the competitive certification award,
and
`(3) involves moving the project site to improve the potential to capture
and sequester carbon dioxide emissions, reduce costs of transporting feedstock,
and serve a broader customer base,
unless the Secretary determines that the dollar amount of tax credits available
to the taxpayer under such section would increase as a result of the modification
or such modification would result in such project not being originally certified.
In considering any such modification, the Secretary shall consult with other
relevant Federal agencies, including the Department of Energy.'.
(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments
made by this section shall apply to credits the application for which is
submitted during the period described in section 48A(d)(2)(A)(ii) of the
Internal Revenue Code of 1986 and which are allocated or reallocated after
the date of the enactment of this Act.
(2) COMPETITIVE CERTIFICATION AWARDS MODIFICATION AUTHORITY- The amendment
made by subsection (d) shall take effect on the date of the enactment of
this Act and is applicable to all competitive certification awards entered
into under section 48A or 48B of the Internal Revenue Code of 1986, whether
such awards were issued before, on, or after such date of enactment.
(3) TECHNICAL AMENDMENT- The amendment made by subsection (c)(5) shall take
effect as if included in the amendment made by section 1307(b) of the Energy
Tax Incentives Act of 2005.
TITLE II--AMERICAN-MADE ENERGY TRUST FUND
SEC. 201. ESTABLISHMENT OF AMERICAN-MADE ENERGY TRUST FUND.
(a) Creation of Trust Fund- Subchapter A of chapter 98 of the Internal Revenue
Code of 1986 is amended by inserting at the end the following new section:
`SEC. 9511. AMERICAN-MADE ENERGY TRUST FUND.
`(a) Establishment of Trust Fund- There is established in the Treasury of
the United States a trust fund to be known as the `American-Made Energy Trust
Fund', consisting of such amounts as may be appropriated or credited to the
American-Made Energy Trust Fund as provided in this section or section 9602(b).
`(b) Transfers to Trust Fund- There are hereby appropriated to the American-Made
Energy Trust Fund amounts required to be transferred under section 308 of
the American-Made Energy Act of 2008 and under section 8(g)(6) of the Outer
Continental Shelf Lands Act (as added by section 703 of the American-Made
Energy Act of 2008).
`(c) Expenditures From American-Made Energy Trust Fund- As provided by appropriation
Acts, amounts in the American-Made Energy Trust Fund shall be available in
any year for transfer to the general fund of the Treasury to offset any reduction
in revenue to the United States that the Secretary estimates results from
the amendments made by the American-Made Energy Act of 2008.'.
(b) Clerical Amendment- The table of sections for subchapter A of chapter
98 of such Code is amended by inserting at the end the following new item:
`Sec. 9511. American-Made Energy Trust Fund.'.
(c) Effective Date- The amendments made by this section shall apply after
the date of the enactment of this Act.
TITLE III--DEVELOPMENT OF OIL AND GAS RESOURCES OF THE COASTAL PLAIN OF
ALASKA
SEC. 301. DEFINITIONS.
(1) COASTAL PLAIN- The term `Coastal Plain' means that area described in
appendix I to part 37 of title 50, Code of Federal Regulations.
(2) SECRETARY- The term `Secretary', except as otherwise provided, means
the Secretary of the Interior or the Secretary's designee.
SEC. 302. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.
(a) In General- The Secretary shall take such actions as are necessary--
(1) to establish and implement, in accordance with this title and acting
through the Director of the Bureau of Land Management in consultation with
the Director of the United States Fish and Wildlife Service, a competitive
oil and gas leasing program that will result in an environmentally sound
program for the exploration, development, and production of the oil and
gas resources of the Coastal Plain; and
(2) to administer the provisions of this title through regulations, lease
terms, conditions, restrictions, prohibitions, stipulations, and other provisions
that ensure the oil and gas exploration, development, and production activities
on the Coastal Plain will result in no significant adverse effect on fish
and wildlife, their habitat, subsistence resources, and the environment,
including, in furtherance of this goal, by requiring the application of
the best commercially available technology for oil and gas exploration,
development, and production to all exploration, development, and production
operations under this title in a manner that ensures the receipt of fair
market value by the public for the mineral resources to be leased.
The Secretary shall not commence leasing under the program described in paragraph
(1) unless a finding has been made that bonus bids for offered leases are
estimated to be not less than $6,000,000,000.
(1) REPEAL- Section 1003 of the Alaska National Interest Lands Conservation
Act of 1980 (16 U.S.C. 3143) is repealed.
(2) CONFORMING AMENDMENT- The table of contents in section 1 of such Act
is amended by striking the item relating to section 1003.
(c) Compliance With Requirements Under Certain Other Laws-
(1) COMPATIBILITY- For purposes of the National Wildlife Refuge System Administration
Act of 1966 (16 U.S.C. 668dd et seq.), the oil and gas leasing program and
activities authorized by this section in the Coastal Plain are deemed to
be compatible with the purposes for which the Arctic National Wildlife Refuge
was established, and no further findings or decisions are required to implement
this determination.
(2) ADEQUACY OF THE DEPARTMENT OF THE INTERIOR'S LEGISLATIVE ENVIRONMENTAL
IMPACT STATEMENT- The `Final Legislative Environmental Impact Statement'
(April 1987) on the Coastal Plain prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3142)
and section 102(2)(C) of the National Environmental Policy Act of 1969 (42
U.S.C. 4332(2)(C)) is deemed to satisfy the requirements under the National
Environmental Policy Act of 1969 that apply with respect to prelease activities,
including actions authorized to be taken by the Secretary to develop and
promulgate the regulations for the establishment of a leasing program authorized
by this title before the conduct of the first lease sale.
(3) COMPLIANCE WITH NEPA FOR OTHER ACTIONS- Before conducting the first
lease sale under this title, the Secretary shall prepare an environmental
impact statement under the National Environmental Policy Act of 1969 with
respect to the actions authorized by this title that are not referred to
in paragraph (2). Notwithstanding any other law, the Secretary is not required
to identify nonleasing alternative courses of action or to analyze the environmental
effects of such courses of action. The Secretary shall only identify a preferred
action for such leasing and a single leasing alternative, and analyze the
environmental effects and potential mitigation measures for those two alternatives.
The identification of the preferred action and related analysis for the
first lease sale under this title shall be completed within 18 months after
the date of enactment of this title. The Secretary shall only consider public
comments that specifically address the Secretary's preferred action and
that are filed within 20 days after publication of an environmental analysis.
Notwithstanding any other law, compliance with this paragraph is deemed
to satisfy all requirements for the analysis and consideration of the environmental
effects of proposed leasing under this title.
(d) Relationship to State and Local Authority- Nothing in this title shall
be considered to expand or limit State and local regulatory authority.
(1) IN GENERAL- The Secretary, after consultation with the State of Alaska,
the city of Kaktovik, and the North Slope Borough, may designate up to a
total of 45,000 acres of the Coastal Plain as a Special Area if the Secretary
determines that the Special Area is of such unique character and interest
so as to require special management and regulatory protection. The Secretary
shall designate as such a Special Area the Sadlerochit Spring area, comprising
approximately 4,000 acres.
(2) MANAGEMENT- Each such Special Area shall be managed so as to protect
and preserve the area's unique and diverse character including its fish,
wildlife, and subsistence resource values.
(3) EXCLUSION FROM LEASING OR SURFACE OCCUPANCY- The Secretary may exclude
any Special Area from leasing. If the Secretary leases a Special Area, or
any part thereof, for purposes of oil and gas exploration, development,
production, and related activities, there shall be no surface occupancy
of the lands comprising the Special Area.
(4) DIRECTIONAL DRILLING- Notwithstanding the other provisions of this subsection,
the Secretary may lease all or a portion of a Special Area under terms that
permit the use of horizontal drilling technology from sites on leases located
outside the Special Area.
(f) Limitation on Closed Areas- The Secretary's sole authority to close lands
within the Coastal Plain to oil and gas leasing and to exploration, development,
and production is that set forth in this title.
(1) IN GENERAL- The Secretary shall prescribe such regulations as may be
necessary to carry out this title, including rules and regulations relating
to protection of the fish and wildlife, their habitat, subsistence resources,
and environment of the Coastal Plain, by no later than 15 months after the
date of enactment of this title.
(2) REVISION OF REGULATIONS- The Secretary shall periodically review and,
if appropriate, revise the rules and regulations issued under subsection
(a) to reflect any significant biological, environmental, or engineering
data that come to the Secretary's attention.
SEC. 303. LEASE SALES.
(a) In General- Lands may be leased pursuant to this title to any person qualified
to obtain a lease for deposits of oil and gas under the Mineral Leasing Act
(30 U.S.C. 181 et seq.).
(b) Procedures- The Secretary shall, by regulation, establish procedures for--
(1) receipt and consideration of sealed nominations for any area in the
Coastal Plain for inclusion in, or exclusion (as provided in subsection
(c)) from, a lease sale;
(2) the holding of lease sales after such nomination process; and
(3) public notice of and comment on designation of areas to be included
in, or excluded from, a lease sale.
(c) Lease Sale Bids- Bidding for leases under this title shall be by sealed
competitive cash bonus bids.
(d) Acreage Minimum in First Sale- In the first lease sale under this ti
