HR 1945 IH
110th CONGRESS
1st Session
H. R. 1945
To improve the energy efficiency of the United States.
IN THE HOUSE OF REPRESENTATIVES
April 19, 2007
Mr. SHAYS (for himself and Mr. HINCHEY) introduced the following bill; which
was referred to the Committee on Energy and Commerce, and in addition to the
Committees on Ways and Means, Natural Resources, Transportation and
Infrastructure, and Science and Technology, 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 improve the energy efficiency of the United States.
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 `Energy For Our Future
Act'.
(b) Table of Contents- The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SAVE OIL
Sec. 101. Help consumers buy more fuel efficient cars.
Sec. 102. Energy efficient motor vehicles manufacturing credit.
Sec. 103. Transit-oriented development corridors.
Sec. 104. Automobile Fuel Economy Standards.
Sec. 105. Inclusion of sports utility vehicles in limitation on
depreciation of certain luxury automobiles.
Sec. 106. Fuel efficiency standards for replacement tires.
Sec. 107. Heavy duty vehicle fuel economy requirements.
TITLE II--REDUCE HEAT AND ELECTRIC BILLS
Subtitle A--General Programs
Sec. 201. Weatherization assistance.
Sec. 202. Energy Star programs.
Sec. 203. Renewable electricity production credit.
Sec. 204. Efficiency resource standard.
Sec. 205. Federal renewable portfolio standard.
Subtitle B--Energy Efficiency Incentive
Sec. 211. Performance based energy improvements for non-business
property.
Sec. 212. Extension and modification of credit for nonbusiness energy
property.
Sec. 213. Extension and clarification of new energy efficient home
credit.
Sec. 214. Extension and modification of deduction for energy efficient
commercial buildings.
Sec. 215. Deduction for energy efficient low-rise buildings.
Sec. 216. Energy efficient property deduction.
Sec. 217. Credit for energy savings certifications.
TITLE III--SAVE TAX PAYERS MONEY
Sec. 301. Repeal of certain provisions of the Energy Policy Act of
2005.
Sec. 302. Repeal of certain tax provisions of the Energy Policy Act of
2005.
TITLE IV--STATE AND LOCAL AUTHORITY
Sec. 401. State consumer product energy efficiency standards.
Sec. 402. Appeals from consistency determinations under Coastal Zone
Management Act of 1972.
Sec. 403. Siting of interstate electric transmission facilities.
Sec. 404. New natural gas storage facilities.
Sec. 405. Process coordination; hearings; rules of procedure.
Sec. 406. Repeal of preemption of State law relating to automobile fuel
economy standards.
TITLE V--RENEWABLE ENERGY RESEARCH AND DEVELOPMENT
Sec. 501. Advanced biofuel technologies.
Sec. 502. Advanced hydrogen storage technologies.
Sec. 503. Advanced solar photovoltaic technologies.
Sec. 504. Advanced wind energy technologies.
Sec. 505. Continuing programs.
Sec. 506. Plug-in hybrid electric vehicle technology program.
Sec. 507. Photovoltaic demonstration program.
TITLE I--SAVE OIL
SEC. 101. HELP CONSUMERS BUY MORE FUEL EFFICIENT CARS.
(a) Repeal of Limit on Number of Cars Eligible for Credit- Section 30B of
the Internal Revenue Code of 1986 (relating to alternative motor vehicle
credit) is amended by striking subsection (f).
(b) Emissions Standards- Clause (iv) of section 30B(c)(3)(A) of such Code
is amended to read as follows:
`(iv) for 2004 and later model vehicles, has received a certificate
that such vehicle meets or exceeds the Bin 5 Tier II emission standard
established in regulations prescribed by the Administrator of the
Environmental Protection Agency under section 202(i) of the Clean Air
Act for that make and model year vehicle,'.
(c) Effective Date- The amendments made by this section shall take effect
as if included in the amendments made by section 1341(a) of the Energy Tax
Incentives Act of 2005.
SEC. 102. ENERGY EFFICIENT MOTOR VEHICLES MANUFACTURING CREDIT.
(a) In General- Subpart B of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to foreign tax credit, etc.) is
amended by adding at the end the following new section:
`SEC. 30D. ENERGY EFFICIENT MOTOR VEHICLES MANUFACTURING CREDIT.
`(a) Credit Allowed- In the case of an eligible taxpayer, subject to a
credit allocation under subsection (e) to such eligible taxpayer, there shall
be allowed as a credit against the tax imposed by this chapter for the taxable
year to an amount equal to the sum of--
`(1) the initial investment credit determined under subsection (b) for
the taxable year,
`(2) the fuel economy achievement credit determined under subsection (c)
for such taxable year, and
`(3) the eligible components R&D credit determined under subsection
(d) for such taxable year.
`(b) Initial Investment Credit- For purposes of this section, the initial
investment credit is equal to 20 percent of the qualified investment of an
eligible taxpayer with respect to energy efficient motor vehicles during the
taxable year beginning in 2008.
`(c) Fuel Economy Achievement Credit- For purposes of this section--
`(1) IN GENERAL- In the case of an eligible taxpayer who meets the
requirements of paragraph (2) for a model year ending in a taxable year
specified in the table contained in paragraph (3), the fuel economy
achievement credit for such taxable year is equal to 30 percent of the sum
of--
`(A) at the election of the eligible taxpayer, such qualified
investment for any preceding taxable year beginning after 2007 if such
taxable year has not previously been taken into account under this
subsection by such taxpayer, plus
`(B) at the election of the eligible taxpayer, the qualified
investment with respect to energy efficient motor vehicles of the eligible
taxpayer for the taxable year beginning in 2017.
`(2) DEMONSTRATED COMBINED FLEET ECONOMY IMPROVEMENTS- The requirements
of this paragraph are met for any model year ending in a taxable year if the
eligible taxpayer can demonstrate to the satisfaction of the Secretary that
the percentage by which the taxpayer's overall combined fuel economy
standard for the taxpayer's vehicle fleet for such model year exceeds such
standard for such taxpayer's 2007 model year as reported to the National
Highway Traffic Safety Administration under section 32907 of title 49,
United States Code, is not less than the percentage determined for such
model year under paragraph (3).
`(3) PERCENTAGE INCREASE- The percentage determined under this paragraph
for any taxable year is equal to--
`Model year ending in
Percentage
taxable year
increase
2010
--5
2011
--10
2012
--15
2013
--20
2014
--27.5
2015
--35
2016
--42.5
2017
--50.
`(d) Eligible Components R&D Credit- For purposes of this section, the
eligible R&D credit for any taxable year is equal to 30 percent of the
research and development costs paid or incurred by an eligible taxpayer for
such taxable year with respect to eligible components used or to be used in
the manufacture of energy efficient motor vehicles.
`(1) INITIAL INVESTMENT CREDIT AND FUEL ECONOMY ACHIEVEMENT CREDIT-
Subject to paragraph (2), the aggregate amount of initial investment credits
and fuel economy achievement credits allowed under subsection (a) for any
taxable year beginning in a calendar year after 2007 shall be allocated by
the Secretary among all eligible taxpayers--
`(A) based on each eligible taxpayer's percentage of the total
qualified investment of all such taxpayers, and
`(B) such that such aggregate amount does not exceed--
`(i) $1,000,000,000, plus
`(ii) any amount of credit unallocated during any preceding calendar
year.
`(2) ELIGIBLE COMPONENTS R&D CREDIT- Of the dollar amount available
for allocation under paragraph (1) for any taxable year, 10 percent of such
amount shall be allocated in the same manner by the Secretary among all
eligible taxpayers with respect to the eligible components R&D
credit.
`(f) Qualified Investment- For purposes of this section--
`(1) IN GENERAL- The qualified investment for any taxable year is equal
to the incremental costs incurred during such taxable year--
`(A) to re-equip or expand any manufacturing facility of the eligible
taxpayer to produce energy efficient motor vehicles or to produce eligible
components, and
`(B) for engineering integration of such vehicles and components as
described in subsection (h).
`(2) ATTRIBUTION RULES- In the event a facility of the eligible taxpayer
produces both energy efficient motor vehicles and conventional motor
vehicles, or eligible and non-eligible components, only the qualified
investment attributable to production of energy efficient motor vehicles and
the research and development costs attributable to eligible components shall
be taken into account.
`(g) Energy Efficient Motor Vehicles and Eligible Components- For purposes
of this section--
`(1) ENERGY EFFICIENT MOTOR VEHICLE- The term `energy efficient motor
vehicle' means--
`(A) any new advanced lean burn technology motor vehicle (as defined
in section 30B(c)(3) determined without regard to subparagraph (A)(iv)(II)
thereof or the weight limitation under subparagraph (A)(iv)(I)
thereof),
`(B) any new qualified hybrid motor vehicle (as defined in section
30B(d)(3)(A) determined without regard to subparagraph (A)(ii)(II)
thereof, the weight limitation under subparagraph (A)(ii)(I) thereof, and
subparagraph (A)(iv) thereof), or
`(C) any other new technology motor vehicle identified by the
Secretary as offering a substantial increase in fuel economy.
`(2) ELIGIBLE COMPONENTS- The term `eligible component' means any
component inherent to any energy efficient motor vehicle, including--
`(A) with respect to any gasoline-electric new qualified hybrid motor
vehicle--
`(i) electric motor or generator,
`(ii) power split device,
`(iii) power control unit,
`(v) integrated starter generator, or
`(B) with respect to any new advanced lean burn technology motor
vehicle--
`(iii) fuel injection system, or
`(iv) after-treatment system, such as a particle filter or NOx
absorber, and
`(C) with respect to any energy efficient motor vehicle, any other
component approved by the Secretary.
`(h) Engineering Integration Costs- For purposes of subsection (f)(1)(B),
costs for engineering integration are costs incurred prior to the market
introduction of energy efficient vehicles for engineering tasks related
to--
`(1) incorporating eligible components into the design of energy
efficient motor vehicles, and
`(2) designing new tooling and equipment for production facilities which
produce eligible components or energy efficient motor vehicles.
`(i) Eligible Taxpayer- For purposes of this section, the term `eligible
taxpayer' means, with respect to any taxable year, any taxpayer if more than
25 percent of the taxpayer's gross receipts for the taxable year is derived
from the manufacture of motor vehicles or any component parts of such
vehicles.
`(j) Limitation Based on Amount of Tax- The credit allowed under
subsection (a) for the taxable year shall not exceed the excess of--
`(A) the regular tax liability (as defined in section 26(b)) for such
taxable year, plus
`(B) the tax imposed by section 55 for such taxable year,
over
`(2) the sum of the credits allowable under subpart A and sections 27,
30, 30B, and 30C for the taxable year.
`(k) Reduction in Basis- For purposes of this subtitle, if a credit is
allowed under this section for any expenditure with respect to any property,
the increase in the basis of such property which would (but for this
paragraph) result from such expenditure shall be reduced by the amount of the
credit so allowed.
`(1) COORDINATION WITH OTHER DEDUCTIONS AND CREDITS- The amount of any
deduction or other credit allowable under this chapter for any cost taken
into account in determining the amount of the credit under subsection (a)
shall be reduced by the amount of such credit attributable to such
cost.
`(2) RESEARCH AND DEVELOPMENT COSTS-
`(A) IN GENERAL- Except as provided in subparagraph (B), any amount
described in subsection (d) taken into account in determining the amount
of the credit under subsection (a) for any taxable year shall not be taken
into account for purposes of determining the credit under section 41 for
such taxable year.
`(B) COSTS TAKEN INTO ACCOUNT IN DETERMINING BASE PERIOD RESEARCH
EXPENSES- Any amounts described in subsection (d) taken into account in
determining the amount of the credit under subsection (a) for any taxable
year which are qualified research expenses (within the meaning of section
41(b)) shall be taken into account in determining base period research
expenses for purposes of applying section 41 to subsequent taxable
years.
`(m) Business Carryovers Allowed- If the credit allowable under subsection
(a) for a taxable year exceeds the limitation under subsection (j) for such
taxable year, such excess (to the extent of the credit allowable with respect
to property subject to the allowance for depreciation) shall be allowed as a
credit carryback and carryforward under rules similar to the rules of section
39.
`(n) Definitions and Special Rules- For purposes of this section--
`(1) DEFINITIONS- Any term which is used in this section and in chapter
329 of title 49, United States Code, shall have the meaning given such term
by such chapter.
`(2) SPECIAL RULES- Rules similar to the rules of paragraphs (4) and (5)
of section 179A(e) and paragraphs (1) and (2) of section 41(f) shall
apply.
`(o) Election Not To Take Credit- No credit shall be allowed under
subsection (a) for any property if the taxpayer elects not to have this
section apply to such property.
`(p) Regulations- The Secretary shall prescribe such regulations as
necessary to carry out the provisions of this section.
`(q) Termination- This section shall not apply to any qualified investment
made after December 31, 2017.'.
(b) Conforming Amendments-
(1) Section 1016(a) of such Code is amended by striking `and' at the end
of paragraph (36), by striking the period at the end of paragraph (37) and
inserting `, and', and by adding at the end the following new
paragraph:
`(38) to the extent provided in section 30D(k).'.
(2) Section 6501(m) of such Code is amended by inserting `30D(o),' after
`30C(e)(5),'.
(3) The table of sections for subpart B of part IV of subchapter A of
chapter 1 of such Code is amended by inserting after the item relating to
section 30C the following new item:
`Sec. 30D. Energy efficient motor vehicles manufacturing credit.'.
(c) Effective Date- The amendments made by this subsection shall apply to
amounts incurred in taxable years beginning after December 31, 2007.
SEC. 103. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.
(a) Definitions- In this section, the following definitions apply:
(1) DEFINITIONS FROM TITLE 49, UNITED STATES CODE- The terms `capital
project', `local governmental authority', `public transportation', and
`urbanized area' have the meanings such terms have under section 5302(a) of
title 49, United States Code.
(2) STATE- The term `State' means a State of the United States, the
District of Columbia, Puerto Rico, the Northern Mariana Islands, Guam,
American Samoa, and the United States Virgin Islands.
(3) TRANSIT-ORIENTED DEVELOPMENT CORRIDOR- The term `transit-oriented
development corridor' means rights-of-way for fixed-guideway public
transportation facilities, including commercial development that is
connected with any such facility physically and functionally.
(b) In General- In consultation with State transportation departments and
metropolitan planning organizations, the Secretary of Transportation shall
designate, in urbanized areas, at least 20 transit-oriented development
corridors by 2015 and 50 transit-oriented development corridors by 2025.
(c) Transit Grants- The Secretary of Transportation shall award grants to
a State or local governmental authority to construct or improve transit
facilities, bicycle transportation facilities, and pedestrian walkways in a
transit-oriented development corridor, including capital projects.
(d) Research and Development- In order to support effective deployment of
grants and incentives under this section, the Secretary of Transportation
shall establish a transit-oriented development corridors research and
development program for the conduct of research on best practices and
performance criteria for transit-oriented development corridors.
(e) Authorization of Appropriations- There are authorized to be
appropriated to carry out this section $500,000,000 for each of fiscal years
2008 through 2019, of which $2,000,000 per fiscal year is authorized for the
research and development program under subsection (d).
(f) Labor Standards- The Secretary of Transportation shall not provide a
grant under this section unless the Secretary receives reasonable assurances
from a State that laborers and mechanics employed by contractors or
subcontractors in the performance of construction or modernization on the a
transit project will be paid wages not less than those prevailing on similar
construction or modernization in the locality as determined by the Secretary
of Labor under subchapter IV of chapter 31 of title 40, United States Code
(known as the Davis-Bacon Act).
SEC. 104. AUTOMOBILE FUEL ECONOMY STANDARDS.
(a) Phased Increases in Fuel Economy Standards-
(1) PASSENGER AUTOMOBILES-
(A) MINIMUM STANDARDS- Section 32902(b) of title 49, United States
Code, is amended to read as follows:
`(b) Passenger Automobiles- Except as otherwise provided under this
section, the average fuel economy standard for passenger automobiles
manufactured by a manufacturer in a model year--
`(1) after model year 1984 and before model year 2008 shall be 25 miles
per gallon;
`(2) after model year 2007 and before model year 2011 shall be 28 miles
per gallon;
`(3) after model year 2010 and before model year 2014 shall be 32 miles
per gallon;
`(4) after model year 2013 and before model year 2017 shall be 36 miles
per gallon; and
`(5) after model year 2016 shall be 40 miles per gallon.'.
(B) HIGHER STANDARDS SET BY REGULATION- Section 32902(c) of title 49,
United States Code, is amended--
(i) by striking paragraph (2); and
(I) by striking `(1) Subject to paragraph (2) of this subsection,
the' and inserting `The'; and
(II) by striking `amending the standard' and inserting `increasing
the standard otherwise applicable'.
(b) Increased Inclusiveness of Definitions of Automobile and Passenger
Automobile-
(A) IN GENERAL- Section 32901(a)(3) of title 49, United States Code,
is amended--
(i) by striking `6,000 pounds' each place it appears and inserting
`12,000 pounds'; and
(ii) in subparagraph (B)--
(I) by striking `10,000 pounds' and inserting `14,000 pounds';
and
(II) in clause (ii), by striking `an average fuel economy
standard' and all that follows through `conservation
or'.
(B) SPECIAL RULE- Section 32908(a)(1) of such title is amended by
striking `8,500 pounds' and inserting `14,000 pounds'.
(2) PASSENGER AUTOMOBILE- Section 32901(a)(16) of title 49, United
States Code, is amended to read as follows:
`(16) `passenger automobile' means an automobile having a gross vehicle
weight of 10,000 pounds or less that is designed to be used principally for
the transportation of persons;'.
(3) APPLICABILITY- The amendments made by this section shall apply with
respect to automobiles manufactured for model years beginning after the date
of enactment of this Act.
(1) INCREASED PENALTY FOR VIOLATIONS OF FUEL ECONOMY STANDARDS- Section
32912(b) of title 49, United States Code, is amended--
(A) by inserting `(1)' before `Except as provided';
(B) by striking `$5' and inserting `the dollar amount applicable under
paragraph (2)';
(C) by redesignating paragraphs (1), (2), and (3) as subparagraphs
(A), (B), and (C), respectively; and
(D) by adding at the end the following:
`(2)(A) The dollar amount referred to in paragraph (1) is $10, as
increased from time to time under subparagraph (B);
`(B) Effective on October 1 of each year, the dollar amount applicable
under subparagraph (A) shall be increased by the percentage (rounded to the
nearest 1/10 of 1 percent) by which the price index for July of such year
exceeds the price index for July of the preceding year. The amount
calculated under the preceding sentence shall be rounded to the nearest
$0.10.
`(C) In this paragraph, the term `price index' means the Consumer Price
Index for all-urban consumers published monthly by the Department of
Labor.'.
(2) CONFORMING AMENDMENT- Section 32912(c)(1) of title 49, United States
Code, is amended--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraphs (C) and (D) as subparagraphs (B)
and (C), respectively.
(3) APPLICABILITY- The amendments made by subsection (a) shall apply
with respect to automobiles manufactured for model years beginning after the
date of enactment of this Act.
SEC. 105. INCLUSION OF SPORTS UTILITY VEHICLES IN LIMITATION ON DEPRECIATION
OF CERTAIN LUXURY AUTOMOBILES.
(a) In General- Subparagraph (A) of section 280F(d)(5) of the Internal
Revenue Code of 1986 (defining passenger automobile) is amended by striking
clause (ii) and all that follows and inserting the following new clause:
`(ii) (I) except as provided in subclause (II) or (III), which is
rated at 6,000 pounds unloaded gross vehicle weight or less,
`(II) in the case of a truck or van, which is rated at 6,000 pounds
gross vehicle weight or less, or
`(III) in the case of a sports utility vehicle not described in
subclause (I), which is rated at more than 6,000 pounds but not more
than 14,000 pounds gross vehicle weight.'.
(b) Definition- Paragraph (5) of section 280F(d) of such Code is amended
by adding at the end the following new subparagraph:
`(C) SPORTS UTILITY VEHICLES- The term `sports utility vehicle' does
not include any vehicle which--
`(i) does not have the primary load carrying device or container
attached,
`(ii) has a seating capacity of more than 12
individuals,
`(iii) is designed for more than 9 individuals in seating rearward
of the driver's seat,
`(iv) is equipped with an open cargo area, or a covered box not
readily accessible from the passenger compartment, of at least 72.0
inches in interior length, or
`(v) has an integral enclosure, fully enclosing the driver
compartment and load carrying device, does not have seating rearward of
the driver's seat, and has no body section protruding more than 30
inches ahead of the leading edge of the windshield.'.
(c) Conforming Amendment- Section 179(b) of such Code (relating to
limitations) is amended by striking paragraph (6).
(d) Effective Date- The amendments made by this section shall apply to
property placed in service after the date of the enactment of this Act.
SEC. 106. FUEL EFFICIENCY STANDARDS FOR REPLACEMENT TIRES.
(a) Standards for Tires Manufactured for Interstate Commerce- Section
30123 of title 49, United States Code, is amended--
(1) in subsection (b), by inserting after the first sentence the
following: `The grading system shall include standards for rating the fuel
efficiency of tires designed for use on passenger cars and light trucks.';
and
(2) by adding at the end of the following:
`(d) National Tire Fuel Efficiency Program- (1) The Secretary shall
develop and carry out a national tire efficiency program for tires designed
for use on passenger cars and light trucks. The program shall include the
following:
`(A) Policies and procedures for testing and labeling tires for fuel
economy to enable tire buyers to make informed purchasing decisions about
the fuel economy of tires.
`(B) Policies and procedures to promote the purchase of
energy-efficient replacement tires, including purchase incentives, website
listings on the Internet, printed fuel economy guide booklets, and
mandatory requirements for tire retailers to provide tire buyers with
fuel-efficiency information on tires.
`(C) Minimum fuel economy standards for tires, promulgated by the
Secretary.
`(2) The minimum fuel economy standards for tires required under paragraph
(1)(C) shall--
`(A) ensure that, in conjunction with the requirements of paragraph
(2)(B), the average fuel economy of replacement tires is equal to or better
than the average fuel economy of tires sold as original equipment;
`(B) secure the maximum technically feasible and cost-effective fuel
savings;
`(C) not adversely affect tire safety;
`(D) not adversely affect the average tire life of replacement
tires;
`(E) incorporate the results from--
`(i) laboratory testing; and
`(ii) to the extent appropriate and available, on-road fleet testing
programs conducted by manufacturers; and
`(F) not adversely affect efforts to manage scrap tires.
`(3) The policies, procedures, and standards developed under paragraph (1)
shall apply to all tire types and models that are covered by the Uniform Tire
Quality Grading Standards in section 575.104 of title 49, Code of Federal
Regulations (or any successor regulation).
`(4) Not less than every 3 years, the Secretary shall review the minimum
fuel economy standards in effect for tires under this subsection and revise
the standards as necessary to ensure compliance with requirements under
paragraph (2). The Secretary may not reduce the average fuel economy standards
applicable to replacement tires.
`(5) Nothing in this section shall be construed to preempt any provisions
of State law relating to higher fuel economy standards applicable to
replacement tires designed for use on passenger cars and light trucks. Nothing
in this chapter shall apply to--
`(A) a tire or group of tires with the same product identification
number, plant, and year, for which the volume of tires produced or imported
is less than 15,000 annually;
`(B) a deep tread, winter-type snow tire, space-saver tire, or temporary
use spare tire;
`(C) a tire with a normal rim diameter of 12 inches or less;
`(D) a motorcycle tire; or
`(E) a tire manufactured specifically for use in an off-road motorized
recreational vehicle.
`(6) In this subsection, the term `fuel economy', with respect to tires,
means the extent to which the tire contribute to the fuel economy of the motor
vehicles on which the tire are mounted.'.
(b) Conforming Amendment- Section 30103(b)(1) of title 49, United States
Code, is amended by striking `When' and inserting `Except as provided in
section 30123(d) of this title, when'.
(c) Implementation- The Secretary of Transportation shall ensure that the
national tire fuel efficiency program required under section 30123(d) of title
49, United States Code (as added by subsection (a)(2)), is administered so as
to apply the policies, procedures, and standards developed under paragraph (2)
of such subsection beginning not later than March 31, 2008.
SEC. 107. HEAVY DUTY VEHICLE FUEL ECONOMY REQUIREMENTS.
(a) Fuel Economy Standards for Heavy Duty Trucks- Part C of subtitle VI of
title 49, United States Code, is amended by adding after chapter 329 the
following new chapter:
`CHAPTER 330--HEAVY DUTY VEHICLE FUEL ECONOMY REQUIREMENTS
`Sec. 33001. General
`(1) PURPOSE AND POLICY- The purpose of this chapter is to reduce
petroleum consumption by heavy duty motor vehicles to the maximum extent
feasible. Therefore it is necessary to prescribe fuel economy requirements
for heavy duty motor vehicles.
`(2) DEFINITION- In this chapter, `heavy duty motor vehicle' means a
vehicle of greater than 10,000 pounds gross vehicle weight that is driven or
drawn by mechanical power and manufactured primarily for use on public
streets, roads, and highways, but does not include a vehicle operated only
on a rail line.
`Sec. 33002. Requirements
`(1) GENERAL REQUIREMENTS- The Secretary of Transportation shall
prescribe heavy duty motor vehicle fuel economy requirements, which may be
complete vehicle fuel economy standards or some combination of engine fuel
economy standards and requirements for other vehicle components and
accessories. Such requirements shall be established for as many categories
of heavy duty motor vehicle as feasible and at a minimum shall be prescribed
for tractor-trailers of 26,000 lbs. or more gross vehicle weight. The
requirements shall be practicable, meet the need for heavy duty motor
vehicle fuel consumption reduction, and be stated in objective terms.
`(2) TESTING PROTOCOLS- The Administrator of the Environmental
Protection Agency shall prescribe test protocols for determining compliance
with standards and other requirements prescribed by the Secretary.
`(3) CONSIDERATIONS- When prescribing heavy duty motor vehicle fuel
economy standards under paragraph (1), the Secretary shall--
`(A) consider relevant available heavy duty motor vehicle fuel
consumption information;
`(B) consider whether a proposed standard is reasonable, practicable,
and appropriate for the particular type of heavy duty motor vehicle for
which it is prescribed; and
`(C) consider the extent to which the standard will carry out section
33001 of this title.
`(4) COOPERATION- The Secretary may advise, assist, and cooperate with
departments, agencies, and instrumentalities of the Federal government,
States, and other public and private agencies in developing fuel economy
standards for heavy duty motor vehicles.
`(5) EFFECTIVE DATES OF STANDARDS- The Secretary shall specify the
effective date and heavy duty model years of a fuel economy standard
prescribed under this chapter in the order prescribing the standard.
`(6) 5-year PLAN FOR TESTING PROTOCOLS- The Secretary shall establish
and periodically review and update on a continuing basis a 5-year plan for
testing motor vehicle fuel economy requirements prescribed under this
chapter. In developing the plan and establishing testing priorities, the
Secretary shall consider factors the Secretary considers appropriate,
consistent with section 33001 of this title and the Secretary's other duties
and powers under this chapter.'.
(b) Clerical Amendment- The table of sections of subtitle VI of title 49,
United States Code, is amended by inserting after the item relating to chapter
329, the following new item:
`330. Heavy Duty Vehicle Fuel Economy
Requirements...................................33001'.
TITLE II--REDUCE HEAT AND ELECTRIC BILLS
Subtitle A--General Programs
SEC. 201. WEATHERIZATION ASSISTANCE.
Section 422 of the Energy Conservation and Production Act (42 U.S.C. 6872)
is amended--
(1) by striking `$500,000,000' and inserting `$1,000,000,000';
(2) by striking `$600,000,000' and inserting `$1,200,000,000'; and
(3) by striking `$700,000,000' and inserting `$1,400,000,000'.
SEC. 202. ENERGY STAR PROGRAMS.
There are authorized to be appropriated for carrying out the Energy Star
program under section 324A of the Energy Policy and Conservation Act--
(1) to the Administrator of the Environmental Protection Agency
$100,000,000 for each fiscal year; and
(2) to the Secretary of Energy $12,000,000 for each fiscal year.
SEC. 203. RENEWABLE ELECTRICITY PRODUCTION CREDIT.
(a) Extension- Section 45(d) of the Internal Revenue Code of 1986
(relating to qualified facilities) is amended--
(1) by striking `January 1, 2009' each place it appears in paragraphs
(1), (2), (3), (5), (6), and (7) and inserting `January 1, 2014', and
(2) by striking `January 1, 2009 (January 1, 2006, in the case of a
facility using solar energy)' in paragraph (4) and inserting `January 1,
2014 (January 1, 2012, in the case of a facility using solar energy)'.
(b) Extension of Credit for Residential Energy Efficient Property-
Subsection (g) of section 25D of such Code (relating to termination) is
amended by striking `December 31, 2007' and inserting `December 31, 2014'.
SEC. 204. EFFICIENCY RESOURCE STANDARD.
(a) Amendment- Title VII of the Public Utility Regulatory Policies Act of
1978 is amended by adding the following new section at the end thereof:
`SEC. 610. EFFICIENCY RESOURCE STANDARD FOR RETAIL ELECTRICITY AND NATURAL
GAS SUPPLIERS.
`(a) Resource Standard- Each retail electricity and natural gas supplier
shall undertake energy savings measures in each calendar year from 2007
through 2011 and thereafter that produce electricity demand savings and
electricity and natural gas usage savings, as a percentage of the supplier's
base amount as shown in the following table. These targets represent savings
realized from measures installed in the current year, plus cumulative savings
realized from measures installed in all previous years. Each retail
electricity and natural gas supplier subject to this subsection may use any
electricity or natural gas savings measures available to it to achieve
compliance with the performance standard established under this section, so
long as the electricity and natural gas savings achieved by such measures can
be calculated and verified pursuant to the rules promulgated under subsection
(b).
----------------------------------------------------------------------------------------------------------
Year Reductions in peak electricity demand Reductions in electricity and natural gas usage
----------------------------------------------------------------------------------------------------------
2007 0.25% 0.25%
2008 0.75% 0.75%
2009 1.75% 1.5%
2010 2.75% 2.25%
2011 and thereafter 3.75% 3.0%
----------------------------------------------------------------------------------------------------------
`(b) Determination of Compliance- The Secretary shall promulgate rules not
later than one year after the enactment of this section regarding the means to
be used to calculate and verify compliance with the performance standard
established under subsection (a). Each retail electric and natural gas
supplier subject to this section shall calculate its compliance with such
standard in accordance with such rules. The rules shall include each of the
following:
`(1) Procedures and standards for defining and measuring electricity
savings achieved or obtained by electricity and natural gas suppliers
(hereinafter in this section referred to as `electricity and natural gas
savings') from customer facility end-uses that occur in a calendar year from
all measures in place in that year (including measures implemented in
previous years that produce electricity and natural gas savings in such
calendar year).
`(2) Procedures and standards for verification of electricity and
natural gas savings reported by the retail electricity and natural gas
supplier.
`(3) Requirements for the contents and format of a bi-annual report from
each retail electricity and natural gas supplier demonstrating its
compliance with the requirements of subsection (a). The bi-annual report
must include sufficient detail regarding the calculation of electricity and
natural gas savings to enable the regulatory authority to verify and enforce
compliance with the requirements of this section and the regulations under
this section.
`(c) Credit and Trading System- (1) After consultation with the
Administrator of the Environmental Protection Agency, the Secretary shall
promulgate rules establishing a nationwide credit and credit trading system
for electricity and natural gas savings. Under such rules the Secretary may
certify as credits electricity or natural savings achieved by a retail
electricity or natural gas supplier in a given year in excess of the quantity
of electricity or natural gas savings required that calendar year for such
supplier to meet the resource standard, as long as such savings comply with
the rules established under subsection (b). The Secretary shall also certify
as credits customer energy savings created by retail electric or natural gas
suppliers or other entities, as long as such savings comply with the rules
established under subsection (b). An electricity savings credit shall equal
one kilowatt hour; a natural gas savings credit shall constitute one therm.
`(2) The Secretary shall not award credits to any retail electricity or
natural gas supplier subject to State administration and enforcement under
subsection (d) unless the Secretary has determined that such administration
and enforcement are at least equivalent to administration and enforcement by
the Secretary.
`(3) An electricity or natural gas savings credit is not a property right.
Nothing in this or any other provision of law shall be construed to limit the
authority of the United States to terminate or limit such credits.
`(4) A retail electric or natural gas supplier may sell such credit to any
other entity, and other entities may sell such credits to retail electric or
natural gas suppliers, in accordance with the accounting and verification
rules established by the Secretary. Such credit may be used by a purchasing
retail electricity or natural gas supplier for purposes of complying with the
resource standards set forth in subsection (a).
`(5) In order to receive an electricity or natural gas savings credit, the
recipient of an electricity savings credit shall pay a fee, calculated by the
Secretary, in an amount that is equal to the administrative costs of issuing,
recording, monitoring the sale or exchange of, and tracking the credit or does
not exceed five percent of the dollar value of the credit, whichever is lower.
The Secretary shall retain the fee and use it to pay these administrative
costs.
`(6) A credit may be counted toward compliance with subsection (a) only
once. A retail electricity or natural gas supplier may satisfy the
requirements of subsection (a) through the accumulation of--
`(A) electricity or natural gas savings credits obtained by purchase or
exchange under paragraph (7);
`(B) electricity or natural gas savings credits borrowed against future
years under paragraph (8); or
`(C) any combination of credits under subparagraphs (A) and (B).
`(7) An electricity or natural gas savings credit may be sold or exchanged
by the entity to whom issued or by any other entity that acquires the credit.
An energy efficiency credit for any year that is not used to satisfy the
minimum energy savings requirement of subsection (a) for that year may be
carried forward for use within the next 4 years.
`(8) During the first year covered by the standards, a retail electricity
or natural gas supplier that has reason to believe that it will not have
sufficient electricity savings credits to comply with subsection (a) may--
`(A) submit a plan to the Secretary demonstrating that the retail
electricity or natural gas supplier will earn sufficient credits within the
next two calendar years which, when taken into account, will enable the
retail electricity or natural gas supplier to meet the requirements of
subsection (a) for the calendar year involved; and
`(B) upon the approval of the plan by the Secretary, apply credits that
the plan demonstrates will be earned within the next two calendar years to
meet the requirements of subsection (a) for the calendar year
involved.
`(9) Any retail electricity or natural gas supplier may elect to comply
with the requirements of this section in any calendar year by paying a fee of
3 cents per kilowatt hour, and 30 cents per therm, for any portion of the
electricity or natural gas savings it would be obligated to achieve in that
year by not later than March 31 of the following year. Funds produced from
such fees shall be deposited in an escrow account established by the
Secretary, and shall be distributed to the States for their use in creating
electricity or natural gas savings at customer facilities.
`(d) Enforcement of Compliance- (1) If the State regulatory authority with
ratemaking jurisdiction over a State-regulated retail electricity or natural
gas supplier notifies the Secretary that it will enforce compliance by such
supplier with the performance standards under subsection (a) of this section,
such State regulatory authority shall have the authority to administer and
enforce such standards for such supplier under State law. If the State
regulatory authority does not so notify the Secretary, the Secretary shall
exercise such authority until receiving such notice from the State regulatory
authority.
`(2) Not later than July 1 of the calendar years 2008, 2010, 2012, 2014,
and 2016, each retail electricity and natural gas supplier shall submit the
compliance report required under subsection (b) to--
`(A) the appropriate State regulatory authority, if such authority has
notified the Secretary under subsection (d), or
`(B) the Secretary to determine and enforce compliance with the
standards.
`(3) In the case of any retail electricity or natural gas supplier for
which the Secretary is enforcing compliance with the standards under this
section, if such supplier fails to comply with such standards for two
consecutive calendar years, the Secretary shall determine the number of
kilowatt hours of electricity savings, or therms of natural gas savings, by
which the supplier has fallen short of the standards, and, by order, require
such supplier, after notice and opportunity for hearing, to deposit in an
escrow account to be designated by the Secretary an amount equal to 3.5 cents
per kilowatt hour for each such kilowatt hour, and 35 cents per therm for each
such therm. The holder of such escrow account shall annually distribute the
total amount of such account to the States to be used by the States for the
purpose of achieving customer electricity and natural gas savings. Any retail
electricity or natural gas supplier required to make such a payment may,
within 60 calendar days after the issuance of such order, bring an action in
the United States Court of Appeals for the District of Columbia for judicial
review of such order. Such court shall have jurisdiction to enter a judgment
affirming, modifying, or setting aside such order or remanding such order in
whole or in part to the Secretary.
`(e) Information Collection- The Secretary may collect the information
necessary to verify and audit--
`(1) the annual electric energy sales, natural gas sales, electricity
savings, and natural gas savings of any entity applying for electricity or
natural gas savings credits under this section,
`(2) the validity of electricity or natural gas savings credits
submitted by a retail electricity or natural gas supplier to the Secretary,
and
`(3) the quantity of electricity and natural gas sales of all retail
electricity and natural gas suppliers.
`(f) State Law- Nothing in this section shall supersede or otherwise
affect any State or local law requiring or otherwise relating to reductions in
total annual electricity or natural gas energy consumption by or peak power
consumption by electric consumers to the extent that such State or local law
requires more stringent reductions than those required under this section. Any
retail electricity or natural gas supplier that achieves reductions referred
to in this section in accordance with State requirements shall be entitled to
full credit under this section for such reductions to the extent that such
reductions meet the requirements of this section and the regulations under
this section (including verification and monitoring requirements).
`(g) Definitions- For purposes of this section:
`(1) The term `retail electricity or natural supplier' means a person
that sells electric energy or natural gas to consumers and sold not less
than 1,000,000 megawatt-hours of electric energy or 20,000,000 therms of
natural gas to consumers for purposes other than resale during the preceding
calendar year; except that such term does not include the United States, a
State or any political subdivision of a State, or any agency, authority, or
instrumentality of any one or more of the foregoing, or a rural electric
cooperative.
`(2) The term `retail electricity or natural gas supplier's base amount'
means the total amount of electric energy or natural gas sold by the retail
electricity or natural gas supplier to customers during the most recent
calendar year for which information is available.
`(3) The term `electricity savings' means reductions in end-use
electricity consumption in customer facilities relative to consumption at
those same facilities in a base year as defined in rules issued by the
Secretary, or in the case of new facilities, relative to reference
facilities defined in rules issued by the Secretary, or distributed
generation efficiency measures, including fuel cells and combined heat and
power (CHP) technologies, that provide electricity only for onsite customer
use.
`(4) The term `natural gas savings' means reductions in end-use natural
gas consumption in customer facilities relative to consumption at those same
facilities in a base year as defined in rules issued by the Secretary, or in
the case of new facilities, relative to reference facilities defined in
rules issued by the Secretary.'.
(b) Table of Contents- The table of contents for title VII of the Public
Utility Regulatory Policies Act of 1978 is amended by adding the following new
item at the end thereof:
`Sec. 610. Efficiency resource standard for retail electricity and
natural gas suppliers.'.
SEC. 205. FEDERAL RENEWABLE PORTFOLIO STANDARD.
(a) In General- Title VI of the Public Utility Regulatory Policies Act of
1978 is amended by adding at the end the following:
`SEC. 611. FEDERAL RENEWABLE PORTFOLIO STANDARD.
`(a) Minimum Renewable Generation Requirement- For each calendar year
beginning in calendar year 2009, each retail electric supplier shall submit to
the Secretary, not later than April 1 of the following calendar year,
renewable energy credits in an amount equal to the required annual percentage
specified in subsection (b).
`(b) Required Annual Percentage- For calendar years after 2008, the
required annual percentage of the retail electric supplier's base amount that
shall be generated from renewable energy resources, or otherwise credited
towards such percentage requirement pursuant to subsection (c), shall be the
percentage specified in the following table:
Required annual
`Calendar Years
percentage
--1
--2
--4
--6
--8
--10
--12
--14
--16
--18
--20.
`(c) Submission of Credits- (1) A retail electric supplier may satisfy the
requirements of subsection (a) through the submission of renewable energy
credits--
`(A) issued to the retail electric supplier under subsection (d);
`(B) obtained by purchase or exchange under subsection (e); or
`(C) borrowed under subsection (f).
`(2) A renewable energy credit may be counted toward compliance with
subsection (a) only once.
`(d) Issuance of Credits- (1) The Secretary shall establish by rule, not
later than 1 year after the date of enactment of this section, a program to
issue and monitor the sale or exchange of, and track, renewable energy
credits.
`(2) Under the program established by the Secretary, an entity that
generates electric energy through the use of a renewable energy resource may
apply to the Secretary for the issuance of renewable energy credits. The
application shall indicate--
`(A) the type of renewable energy resource used to produce the
electricity;
`(B) the location where the electric energy was produced; and
`(C) any other information the Secretary determines appropriate.
`(3)(A) Except as provided in subparagraphs (B), (C), and (D), the
Secretary shall issue to each entity that generates electric energy one
renewable energy credit for each kilowatt hour of electric energy the entity
generates from the date of enactment of this section and in each subsequent
calendar year through the use of a renewable energy resource at an eligible
facility.
`(B) For incremental hydropower the renewable energy credits shall be
calculated based on the expected increase in average annual generation
resulting from the efficiency improvements or capacity additions. The number
of credits shall be calculated using the same water flow information used to
determine a historic average annual generation baseline for the hydroelectric
facility and certified by the Secretary or the Federal Energy Regulatory
Commission. The calculation of the renewable energy credits for incremental
hydropower shall not be based on any operational changes at the hydroelectric
facility not directly associated with the efficiency improvements or capacity
additions.
`(C) The Secretary shall issue two renewable energy credits for each
kilowatt hour of electric energy generated and supplied to the grid in that
calendar year through the use of a renewable energy resource at an eligible
facility located on Indian land. For purposes of this paragraph, renewable
energy generated by biomass cofired with other fuels is eligible for two
credits only if the biomass was grown on such land.
`(D) For electric energy resources produced from a generation offset, the
Secretary shall issue two renewable energy credits for each kilowatt hour
generated.
`(E) To be eligible for a renewable energy credit, the unit of electric
energy generated through the use of a renewable energy resource may be sold or
may be used by the generator. If both a renewable energy resource and a
non-renewable energy resource are used to generate the electric energy, the
Secretary shall issue renewable energy credits based on the proportion of the
renewable energy resources used. The Secretary shall identify renewable energy
credits by type and date of generation.
`(4) When a generator sells electric energy generated through the use of a
renewable energy resource to a retail electric supplier under a contract
subject to section 210 of this Act, the retail electric supplier is treated as
the generator of the electric energy for the purposes of this section or the
duration of the contract.
`(5) The Secretary shall issue renewable energy credits for existing
facility offsets to be applied against a retail electric supplier's required
annual percentage. Such credits are not tradeable and may be used only in the
calendar year generation actually occurs.
`(e) Credit Trading- A renewable energy credit, may be sold or exchanged
by the entity to whom issued or by any other entity who acquires the renewable
energy credit. A renewable energy credit for any year that is not used to
satisfy the minimum renewable generation requirement of subsection (a) for
that year may be carried forward for use within the next 4 years.
`(f) Credit Borrowing- At any time before the end of calendar year 2009, a
retail electric supplier that has reason to believe it will not have
sufficient renewable energy credits to comply with subsection (a) may--
`(1) submit a plan to the Secretary demonstrating that the retail
electric supplier will earn sufficient credits within the next 3 calendar
years which, when taken into account, will enable the retail electric
supplier to meet the requirements of subsection (a) for calendar year 2009
and the subsequent calendar years involved; and
`(2) upon the approval of the plan by the Secretary, apply renewable
energy credits that the plan demonstrates will be earned within the next 3
calendar years to meet the requirements of subsection (a) for each calendar
year involved.
The retail electric supplier must repay all of the borrowed renewable
energy credits by submitting an equivalent number of renewable energy credits,
in addition to those otherwise required under subsection (a), by calendar year
2010 or any earlier deadlines specified in the approved plan. Failure to repay
the borrowed renewable energy credits shall subject the retail electric
supplier to civil penalties under subsection (h) for violation of the
requirements of subsection (a) for each calendar year involved.
`(g) Credit Cost Cap- The Secretary shall offer renewable energy credits
for sale at the lesser of 3 cents per kilowatt-hour or 200 percent of the
average market value of renewable credits for the applicable compliance
period. On January 1 of each year following calendar year 2008, the Secretary
shall adjust for inflation the price charged per credit for such calendar
year, based on the Gross Domestic Product Implicit Price Deflator.
`(h) Enforcement- The Secretary may bring an action in the appropriate
United States district court to impose a civil penalty on a retail electric
supplier that does not comply with subsection (a), unless the retail electric
supplier was unable to comply with subsection (a) for reasons outside of the
supplier's reasonable control (including weather-related damage, mechanical
failure, lack of transmission capacity or availability, strikes, lockouts,
actions of a governmental authority). A retail electric supplier who does not
submit the required number of renewable energy credits under subsection (a)
shall be subject to a civil penalty of not more than the greater of 3 cents or
200 percent of the average market value of credits for the compliance period
for each renewable energy credit not submitted..
`(i) Information Collection- The Secretary may collect the information
necessary to verify and audit--
`(1) the annual electric energy generation and renewable energy
generation of any entity applying for renewable energy credits under this
section;
`(2) the validity of renewable energy credits submitted by a retail
electric supplier to the Secretary; and
`(3) the quantity of electricity sales of all retail electric
suppliers.
`(j) Environmental Savings Clause- Incremental hydropower shall be subject
to all applicable environmental laws and licensing and regulatory
requirements.
`(k) Existing Programs- This section does not preclude a State from
imposing additional renewable energy requirements in that State, including
specifying eligible technologies under such State requirements.
`(l) Definitions- For purposes of this section:
`(1) BIOMASS- The term `biomass' means any organic material that is
available on a renewable or recurring basis, including dedicated energy
crops, trees grown for energy production, wood waste and wood residues,
plants (including aquatic plants, grasses, and agricultural crops),
residues, fibers, animal wastes and other organic waste materials (but not
including unsegregated municipal solid waste (garbage)), and fats and oils,
except that with respect to material removed from National Forest System
lands the term includes only organic material from--
`(A) thinnings from trees that are less than 12 inches in
diameter;
`(2) ELIGIBLE FACILITY- The term `eligible facility' means--
`(A) a facility for the generation of electric energy from a renewable
energy resource that is placed in service on or after the date of
enactment of this section; or
`(B) a repowering or cofiring increment that is placed in service on
or after the date of enactment of this section at a facility for the
generation of electric energy from a renewable energy resource that was
placed in service before that date.
`(3) ELIGIBLE RENEWABLE ENERGY RESOURCE- The term `renewable energy
resource' means solar, wind, ocean, or geothermal energy, biomass (excluding
solid waste and paper that is commonly recycled), landfill gas, a generation
offset, or incremental hydropower.
`(4) GENERATION OFFSET- The term `generation offset' means reduced
electricity usage metered at a site where a customer consumes energy from a
renewable energy technology.
`(5) EXISTING FACILITY OFFSET- The term `existing facility offset' means
renewable energy generated from an existing facility, not classified as an
eligible facility, that is owned or under contract, directly or indirectly,
to a retail electric supplier on the date of enactment of this
section.
`(6) INCREMENTAL HYDROPOWER- The term `incremental hydropower' means
additional generation that is achieved from increased efficiency or
additions of capacity on or after the date of enactment of this section or
the effective date of the applicable State renewable portfolio standard
program, at a hydroelectric facility that was placed in service before that
date.
`(7) INDIAN LAND- The term `Indian land' means--
`(A) any land within the limits of any Indian reservation, pueblo, or
rancheria;
`(B) any land not within the limits of any Indian reservation, pueblo,
or rancheria title to which was on the date of enactment of this paragraph
either held by the United States for the benefit of any Indian tribe or
individual or held by any Indian tribe or individual subject to
restriction by the United States against alienation;
`(C) any dependent Indian community; and
`(D) any land conveyed to any Alaska Native corporation under the
Alaska Native Claims Settlement Act.
`(8) INDIAN TRIBE- The term `Indian tribe' means any Indian tribe, band,
nation, or other organized group or community, including any Alaskan Native
village or regional or village corporation as defined in or established
pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized as eligible for the special programs and services
provided by the United States to Indians because of their status as
Indians.
`(9) RENEWABLE ENERGY- The term `renewable energy' means electric energy
generated by a renewable energy resource.
`(10) RENEWABLE ENERGY RESOURCE- The term `renewable energy resource'
means solar, wind, ocean, geothermal energy, biomass (not including
municipal solid waste), landfill gas, a generation offset, or incremental
hydropower.
`(11) REPOWERING OR COFIRING INCREMENT- The term `repowering or cofiring
increment' means--
`(A) the additional generation from a modification that is placed in
service on or after the date of enactment of this section to expand
electricity production at a facility used to generate electric energy from
a renewable energy resource or to cofire biomass that was placed in
service before the date of enactment of this section, or
`(B) the additional generation above the average generation in the 3
years preceding the date of enactment of this section to expand
electricity production at a facility used to generate electric energy from
a renewable energy resource or to cofire biomass that was placed in
service before the date of enactment of this section.
`(12) RETAIL ELECTRIC SUPPLIER- The term `retail electric supplier'
means a person that sells electric energy to electric consumers and sold not
less than 1,000,000 megawatt-hours of electric energy to electric consumers
for purposes other than resale during the preceding calendar year; except
that such term does not include the United States, a State or any political
subdivision of a State, or any agency, authority, or instrumentality of any
one or more of the foregoing.
`(13) RETAIL ELECTRIC SUPPLIER'S BASE AMOUNT- The term `retail electric
supplier's base amount' means the total amount of electric energy sold by
the retail electric supplier to electric customers during the most recent
calendar year for which information is available, excluding electric energy
generated by--
`(A) an eligible renewable energy resource; or
`(B) a hydroelectric facility.
`(m) Sunset- This section expires December 31, 2030.'.
(b) Table of Contents- The table of contents for such title is amended by
adding the following new item at the end:
`Sec. 611. Federal renewable portfolio standard.'.
SEC. 206. NET METERING.
(a) Adoption of Standard- Section 111(d)(11) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended to read as
follows:
`(11) NET METERING- (A) Each electric utility shall make available upon
request net metering service to any electric consumer that the electric
utility serves.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each State
regulatory authority may consider and make a determination concerning
whether it is appropriate in the public interest to not implement the
standard set out in subparagraph (A) not later than 1 year after the date of
enactment of this paragraph.
`(D) Nothing in this section shall preclude a State from establishing
additional incentives or to encourage on-site generating facilities and net
metering in addition to that required under this section.
`(E) The Department shall report within 11 months of enactment and
annually thereafter on the public benefit provided by adoption of net
metering and interconnection standards, and the status of state adoption of
such.'.
(b) Special Rules for Net Metering- Section 115 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the
end the following:
`(i) Net Metering- In undertaking the consideration and making the
determination under section 111 with respect to the standard concerning net
metering established by section 111(d)(11), the term net metering service
shall mean a service provided in accordance with the following standards:
`(1) An electric utility--
`(A) shall charge the owner or operator of an on-site generating
facility rates and charges that are identical to those that would be
charged other electric consumers of the electric utility in the same rate
class; and
`(B) shall not charge the owner or operator of an on-site generating
facility any additional standby, capacity, interconnection, or other rate
or charge.
`(2) An electric utility that sells electric energy to the owner or
operator of an on-site generating facility shall measure the quantity of
electric energy produced by the on-site facility and the quantity of
electric energy consumed by the owner or operator of an on-site generating
facility during a billing period with a single bi-directional meter or
otherwise in accordance with reasonable metering practices.
`(3) If the quantity of electric energy sold by the electric utility to
an on-site generating facility exceeds the quantity of electric energy
supplied by the on-site generating facility to the electric utility during
the billing period, the electric utility may bill the owner or operator for
the net quantity of electric energy sold, in accordance with reasonable
metering practices.
`(4) If the quantity of electric energy supplied by the on-site
generating facility to the electric utility exceeds the quantity of electric
energy sold by the electric utility to the on-site generating facility
during the billing period--
`(A) the electric utility may bill the owner or operator of the
on-site generating facility for the appropriate charges for the billing
period in accordance with paragraph; and
`(B) the owner or operator of the on-site generating facility shall be
credited for the excess kilowatt-hours generated during the billing
period, with the kilowatt-hour credit appearing on the bill for the
following billing period.
`(5) An eligible on-site generating facility and net metering system
used by an electric consumer shall meet all applicable safety, performance,
reliability, and interconnection standards established by the National
Electrical Code, the Institute of Electrical and Electronics Engineers, and
Underwriters Laboratories.
`(6) The Commission, after consultation with State regulatory
authorities and unregulated electric utilities and after notice and
opportunity for comment, may adopt, by rule, additional control and testing
and interconnection requirements for on-site generating facilities and net
metering systems that the Commission determines are necessary to protect
public safety and system reliability.
`(7) For purposes of this subsection:
`(A) The term `eligible on-site generating facility' means a facility
on the site of a residential electric consumer with a maximum generating
capacity of 10 kilowatts or less that is fueled by solar energy, wind
energy, or fuel cells; or a facility on the site of a commercial electric
consumer with a maximum generating capacity of 500 1000 kilowatts or less
that is fueled solely by a renewable energy resource, landfill gas, or a
high efficiency system.
`(B) The term `renewable energy resource' means solar, wind, biomass,
micro-freeflow hydro, or geothermal energy.
`(C) The term `high efficiency system' means fuel cells or combined
heat and power.
`(D) The term `net metering service' means service to an electric
consumer under which electric energy generated by that electric consumer
from an eligible on-site generating facility and delivered to the local
distribution facilities may be used to offset electric energy provided by
the electric utility to the electric consumer during the applicable
billing period.'.
Subtitle B--Energy Efficiency Incentive
SEC. 211. PERFORMANCE BASED ENERGY IMPROVEMENTS FOR NON-BUSINESS
PROPERTY.
(a) In General- Subpart A of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section 25D the
following new section:
`SEC. 25E. PERFORMANCE BASED ENERGY IMPROVEMENTS.
`(a) In General- In the case of an individual, there shall be allowed as a
credit against the tax imposed by this chapter for the taxable year an amount
equal to the amount of qualified energy efficiency expenditures paid or
incurred by the taxpayer during the taxable year.
`(1) IN GENERAL- The amount allowed as a credit under subsection (a)
shall not exceed the product of--
`(A) the qualified energy savings achieved, and
`(2) MINIMUM AMOUNT OF QUALIFIED ENERGY SAVINGS- No credit shall be
allowed under subsection (a) with respect to any principal residence which
achieves a qualified energy savings of less than 20 percent.
`(3) LIMITATION BASED ON AMOUNT OF TAX- In the case of taxable years to
which section 26(a)(2) does not apply, 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 credit allowable under this subpart (other than
this section and sections 23, 24, and 25B) and section 27 for the taxable
year.
`(c) Qualified Energy Efficiency Expenditures- For purposes of this
section:
`(1) IN GENERAL- The term `qualified energy efficiency expenditures'
means any amount paid or incurred which is related to producing qualified
energy savings in a principal residence of the taxpayer which is located in
the United States.
`(2) NO DOUBLE BENEFIT FOR CERTAIN EXPENDITURES- The term `qualified
energy efficiency expenditures' shall not include any expenditure for which
a deduction or credit is otherwise allowed to the taxpayer under this
chapter.
`(3) PRINCIPAL RESIDENCE- The term `principal residence' has the same
meaning as when used in section 121, except that--
`(A) no ownership requirement shall be imposed, and
`(B) the period for which a building is treated as used as a principal
residence shall also include the 60-day period ending on the 1st day on
which it would (but for this subparagraph) first be treated as used as a
principal residence.
`(d) Qualified Energy Savings- For purposes of this section--
`(1) IN GENERAL- The term `qualified energy savings' means, with respect
to any principal residence, the amount (measured as a percentage) by
which--
`(A) the annual energy use with respect to the principal residence
after qualified energy efficiency expenditures are made, as certified
under paragraph (2), is less than
`(B) the annual energy use with respect to the principal residence
before the qualified energy efficiency expenditures were made, as
certified under paragraph (2).
In determining annual energy use under subparagraph (B), any energy
efficiency improvements which are not attributable to qualified energy
efficiency expenditures shall be disregarded.
`(A) IN GENERAL- The Secretary, in consultation with the Secretary of
Energy, shall prescribe the procedures and methods for the making of
certifications under this paragraph based on the Residential Energy
Services Network (RESNET) Technical Guidelines in effect on the date of
the enactment of this section.
`(B) QUALIFIED INDIVIDUALS- Any certification made under this
paragraph may only be made by an individual who is recognized by an
organization certified by the Secretary for such purposes.
`(e) Special Rules- For purposes of this section rules similar to the
rules under paragraphs (4), (5), (6), (7), (8), and (9) of section 25D(e) and
section 25C(e)(2) shall apply.
`(f) Basis Adjustments- For purposes of this subtitle, if a credit is
allowed under this section with respect to any expenditure with respect to any
property, the increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the amount of the
credit so allowed.
`(g) Termination- This section shall not apply with respect to any
property placed in service after December 31, 2011.'.
(b) Interim Guidance on Certification-
(1) IN GENERAL- Not later than 90 days after the date of the enactment
of this Act, the Secretary of the Treasury, in consultation with the
Secretary of Energy, shall issue interim guidance on--
(A) the procedures and methods for making certifications under
sections 25E(d)(2)(A) and 179F(d)(2)(A) of the Internal Revenue Code of
1986, as added by subsection (a) and section 203, respectively;
(B) the recognition of qualified individuals under sections
25E(d)(2)(B) and 179F(d)(2)(B) of such Code for the purpose of making such
certifications; and
(C) how participation in State energy efficiency programs can be used
in the procedures and methods described in subparagraph (A).
(2) CONSULTATION WITH STAKEHOLDERS-
(A) IN GENERAL- The Secretary of the Treasury, in issuing guidance
pursuant to paragraph (1), shall consider comments from energy efficiency
experts and other interested parties.
(B) OTHER CONSIDERATIONS- In the case of guidance issued pursuant to
paragraph (1)(B), the Secretary of the Treasury shall also
consider--
(i) the Residential Energy Services Network Technical Guidelines and
other pertinent guidelines for evaluating energy savings;
(ii) energy modeling software, including software accredited through
the Residential Energy Services Network; and
(iii) quality assurance procedures of the Building Performance
Institute, Home Performance through Energy Star, and the Residential
Energy Services Network.
(c) Alternative Certification Methods-
(1) IN GENERAL- The Secretary of the Treasury shall establish a
procedure for individuals and businesses to petition for the approval of
alternative methods of certification under sections 25E(d)(2)(A) and
179F(d)(2)(A) of the Internal Revenue Code of 1986, as added by subsection
(a) and section 203, respectively.
(2) DETERMINATION- The Secretary of the Treasury shall make a
determination on the approval or disapproval of such alternative methods of
certification not later than 90 days after receiving a petition under
paragraph (1).
(d) Conforming Amendments-
(1) Section 1016(a) is amended by striking `and' at the end of paragraph
(36), by striking the period at the end of paragraph (37) and inserting `,
and', and by adding at the end the following new paragraph:
`(38) to the extent provided in section 25E(f).'.
(2) The table of sections for subpart A of part IV of subchapter A
chapter 1 is amended by inserting after the item relating to section 25D the
following new item:
`Sec. 25E. Performance based energy improvements.'.
(e) Effective Date- The amendments made by this section shall apply to
amounts paid or incurred in taxable years beginning after the date of the
enactment of this Act.
SEC. 212. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY
PROPERTY.
(a) Extension- Subsection (g) of section 25C (relating to termination) is
amended by striking `December 31, 2007' and inserting `December 31, 2011'.
(b) Labor Costs for Qualified Energy Efficiency Improvements- Section
25C(c)(1) is amended by adding at the end the following new flush sentence:
`The amount taken into account under subsection (a)(1) with respect to
qualified energy efficiency improvements shall include expenditures for
labor costs properly allocable to the onsite preparation, assembly, or
original installation of any component described in this paragraph.'.
(c) Modifications for Residential Energy Efficiency Property
Expenditures-
(1) INCREASED LIMITATION FOR OIL FURNACES AND NATURAL GAS, PROPANE, AND
OIL HOT WATER BOILERS-
(A) IN GENERAL- Subparagraphs (B) and (C) of section 25C(b)(3) are
amended to read as follows:
`(B) $150 for any qualified natural gas furnace or qualified propane
furnace, and
`(i) any item of energy-efficient building property, and
`(ii) any qualified oil furnace, qualified natural gas hot water
boiler, qualified propane hot water boiler, or qualified oil hot water
boiler.'.
(B) CONFORMING AMENDMENT- Clause (ii) of section 25C(d)(2)(A) is
amended to read as follows:
`(ii) any qualified natural gas furnace, qualified propane furnace,
qualified oil furnace, qualified natural gas hot water boiler, qualified
propane hot water boiler, or qualified oil hot water boiler,
or'.
(2) MODIFICATIONS OF STANDARDS FOR ENERGY-EFFICIENT BUILDING
PROPERTY-
(A) ELECTRIC HEAT PUMPS- Subparagraph (B) of section 25C(d)(3) is
amended to read as follows:
`(A) an electric heat pump which achieves the highest efficiency tier
established by the Consortium for Energy Efficiency, as in effect on
January 1, 2008.'.
(B) CENTRAL AIR CONDITIONERS- Section 25C(d)(3)(D) is amended by
striking `2006' and inserting `2008'.
(C) WATER HEATERS- Subparagraph (E) of section 25C(d) is amended to
read as follows:
`(E) a natural gas, propane, or oil water heater which has either an
energy factor of at least 0.80 or a thermal efficiency of at least 90
percent.'.
(D) OIL FURNACES AND HOT WATER BOILERS- Paragraph (4) of section
25C(d) is amended to read as follows:
`(4) QUALIFIED NATURAL GAS, PROPANE, AND OIL FURNACES AND HOT WATER
BOILERS-
`(A) QUALIFIED NATURAL GAS FURNACE- The term `qualified natural gas
furnace' means any natural gas furnace which achieves an annual fuel
utilization efficiency rate of not less than 95.
`(B) QUALIFIED NATURAL GAS HOT WATER BOILER- The term `qualified
natural gas hot water boiler' means any natural gas hot water boiler which
achieves an annual fuel utilization efficiency rate of not less than
90.
`(C) QUALIFIED PROPANE FURNACE- The term `qualified propane furnace'
means any propane furnace which achieves an annual fuel utilization
efficiency rate of not less than 95.
`(D) QUALIFIED PROPANE HOT WATER BOILER- The term `qualified propane
hot water boiler' means any propane hot water boiler which achieves an
annual fuel utilization efficiency rate of not less than 90.
`(E) QUALIFIED OIL FURNACES- The term `qualified oil furnace' means
any oil furnace which achieves an annual fuel utilization efficiency rate
of not less than 90.
`(F) QUALIFIED OIL HOT WATER BOILER- The term `qualified oil hot water
boiler' means any oil hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than 90.'.
(3) ELIMINATION OF LIFETIME LIMITATION- Paragraph (1) of section 25C(b)
is amended by inserting `by reason of subsection (a)(1)' after `under this
section'.
(d) Modification of Qualified Energy Efficiency Improvements-
(1) IN GENERAL- Paragraph (1) of section 25C(c) is amended by inserting
`, or an asphalt roof with appropriate cooling granules,' before `which meet
the Energy Star program requirements'.
(2) BUILDING ENVELOPE COMPONENT- Subparagraph (D) of section 25C(c)(2)
is amended--
(A) by inserting `or asphalt roof' after `metal roof', and
(B) by inserting `or cooling granules' after `pigmented
coatings'.
(e) Natural Gas Fired Heat Pumps- Section 25C(d)(3), as amended by this
section, is amended by striking `and' at the end of subparagraph (D), by
striking the period at the end of subparagraph (E) and inserting `, and', and
by adding at the end the following new subparagraph:
`(F) a natural gas fired heat pump with a heating coefficient of
performance (COP) of at least 1.1.'.
(f) Elimination of Credit for Qualified Energy Efficiency Improvements in
2010-
(1) IN GENERAL- Subsection (a) of section 25C is amended to read as
follows:
`(a) Allowance of Credit- In the case of an individual, there shall be
allowed as a credit against the tax imposed by this chapter for the taxable
year an amount equal to the amount of residential energy property expenditures
paid or incurred by the taxpayer during the taxable year.'.
(2) CONFORMING AMENDMENTS-
(A) Section 25C(b), as amended by subsection (b), is amended by
striking paragraphs (1) and (2) and by redesignating paragraph (3) as
paragraph (1).
(B) Section 25C(b)(1), as redesignated by subparagraph (A), is amended
by striking `by reason of subsection (a)(2)'.
(C) Section 25C is amended by striking subsection (c).
(g) Clarification of Eligibility of Standards for Qualified Energy
Property- Section 25C(d)(2)(C) is amended by striking `and' at the end of
clause (i), by striking the period at the end of clause (ii) and inserting `,
and', and by adding at the end the following new clause:
`(iii) shall allow for the testing of products regardless of the
size or capacity of the product.'.
(1) IN GENERAL- Except as provided in paragraphs (2) and (3), the
amendments made by this section shall apply to property placed in service
after the date of the enactment of this Act.
(2) STANDARDS FOR ELECTRIC HEAT PUMPS AND CENTRAL AIR CONDITIONERS- The
amendments made by subparagraphs (A) and (B) subsection (c)(2) shall apply
to property placed in service after December 31, 2007.
(3) ELIMINATION OF CREDIT FOR QUALIFIED ENERGY EFFICIENCY IMPROVEMENTS-
The amendments made by subsection (f) shall apply to property placed in
service after December 31, 2009.
SEC. 213. EXTENSION AND CLARIFICATION OF NEW ENERGY EFFICIENT HOME
CREDIT.
(a) Extension- Subsection (g) of section 45L (relating to termination), as
amended by section 205 of division A of the Tax Relief and Health Care Act of
2006, is amended by striking `December 31, 2008' and inserting `December 31,
2011'.
(1) IN GENERAL- Paragraph (1) of section 45L(a) is amended by striking
`and' at the end of subparagraph (A) and by striking subparagraph (B) and
inserting the following:
`(B) acquired by a person from such eligible contractor, and
`(C) used by any person as a residence during the taxable
year.'.
(2) EFFECTIVE DATE- The amendments made by this subsection shall take
effect as if included in section 1332 of the Energy Policy Act of
2005.
SEC. 214. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY EFFICIENT
COMMERCIAL BUILDINGS.
(a) Extension- Subsection (h) of section 179D (relating to termination) is
amended to read as follows:
`(h) Termination- This section shall not apply with respect to
property--
`(1) which is certified under subsection (d)(6) after December 31, 2012,
or
`(2) which is placed in service after December 31, 2014.
A provisional certification shall be treated as meeting the requirements
of paragraph (1) if it is based on the building plans, subject to inspection
and testing after installation.'.
(b) Increase in Maximum Amount of Deduction-
(1) IN GENERAL- Subparagraph (A) of section 179D(b)(1) is amended by
striking `$1.80' and inserting `$2.25'.
(2) PARTIAL ALLOWANCE- Paragraph (1) of section 179D(d) is
amended--
(A) by striking `$.60' and inserting `$0.75', and
(B) by striking `$1.80' and inserting `$2.25'.
(c) Modifications to Certain Special Rules-
(1) METHODS OF CALCULATING ENERGY SAVINGS-
(A) IN GENERAL- Paragraph (2) of section 179D(d) is amended--
(i) by inserting `in detail' after `based',
(ii) by inserting `, except that the Secretary shall use Standard
90.1-2001 in lieu of the California title 24 energy standards and the
tables contained therein and the Secretary may add requirements from
Standard 90.1-2001 (or any successor standard)' before the period at the
end, and
(iii) by adding at the end the following new sentence: `The
calculation methods contained in such regulations shall also provide for
the calculation of appropriate energy savings for design methods and
technologies not otherwise credited in such manual or standard,
including energy savings associated with natural ventilation,
evaporative cooling, automatic lighting controls (such as occupancy
sensors, photocells, and time clocks), day lighting, designs utilizing
semi-conditioned spaces which maintain adequate comfort conditions
without air conditioning or without heating, improved fan system
efficiency (including reductions in static pressure), advanced unloading
mechanisms for mechanical cooling (such as multiple or variable speed
compressors), on-site generation of electricity (including combined heat
and power systems, fuel cells, and renewable energy generation such as
solar energy), and wiring with lower energy losses than wiring
satisfying Standard 90.1-2001 requirements for building power
distribution systems.'.
(B) REQUIREMENTS FOR COMPUTER SOFTWARE USED IN CALCULATING ENERGY AND
POWER CONSUMPTION COSTS- Paragraph (3)(B) of section 179D(d) 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 adding at the end the
following:
`(iv) which automatically--
`(I) generates the features, energy use, and energy and power
consumption costs of a reference building which meets Standard
90.1-2001,
`(II) generates the features, energy use, and energy and power
consumption costs of a compliant building or system which reduces the
annual energy and power costs by 50 percent compared to Standard
90.1-2001, and
`(III) compares such features, energy use, and consumption costs
to the features, energy use, and consumption costs of the building or
system with respect to which the calculation is being
made.'.
(2) TARGETS FOR PARTIAL ALLOWANCE OF CREDIT- Paragraph (1)(B) of section
179D(d) is amended--
(A) by striking `The Secretary' and inserting the following:
`(i) IN GENERAL- The Secretary', and
(B) by adding at the end the following:
`(ii) ADDITIONAL REQUIREMENTS- For purposes of clause
(i)--
`(I) the Secretary shall determine prescriptive criteria that can
be modeled explicitly for reference buildings which meet the
requirements of subsection (c)(1)(D) for different building types and
regions,
`(II) a system may be certified as meeting the target under
subparagraph (A)(ii) if the appropriate reference building either
meets the requirements of subsection (c)(1)(D) with such system rather
than the comparable reference system (using the calculation under
paragraph (2)) or meets the relevant prescriptive criteria under
subclause (I), and
`(III) the lighting system target shall be based on lighting power
density, except that it shall allow lighting controls credits that
trade off for lighting power density savings based on Section 3.2.2 of
the 2005 California Nonresidential Alternative Calculation Method
Approval Manual.
`(iii) PUBLICATION- The Secretary shall publish in the Federal
Register the bases for the target levels established in the regulations
under clause (i).'.
(d) Alternative Standards- Section 179D(d) is amended by adding at the end
the following new paragraph:
`(7) ALTERNATIVE STANDARDS PENDING FINAL REGULATIONS- Until such time as
the Secretary issues final regulations under paragraph (1)(B)--
`(A) in the case of property which is part of a building envelope, the
building envelope system target under paragraph (1)(A)(ii) shall be a 7
percent reduction in total annual energy and power costs (determined in
the same manner as under subsection (c)(1)(D)), and
`(B) in the case of property which is part of the heating, cooling,
ventilation, and hot water systems, the heating, cooling, ventilation, and
hot water system shall be treated as meeting the target under paragraph
(1)(A)(ii) if it would meet the requirement in subsection (c)(1)(D) if
combined with a building envelope system and lighting system which met
their respective targets under paragraph(1)(A)(ii) (including interim
targets in effect under subsections (f) and subparagraph (A)).'.
(e) Modifications to Lighting Standards-
(1) STANDARDS TO BE ALTERNATE STANDARDS- Subsection (f) of section 179D
is amended by--
(A) striking `Interim' in the heading and inserting `Alternative',
and
(B) inserting `, or, if the taxpayer elects, in lieu of the target set
forth in such final regulations' after `lighting system' at the end of the
matter preceding paragraph (1).
(2) QUALIFIED INDIVIDUALS- Section 179D(d)(6)(C) is amended by adding at
the end the following: `For purposes of certification of whether the
alternative target for lighting systems under subsection (f) is met,
individuals qualified to determine compliance shall include individuals who
are certified as Lighting Certified (LC) by the National Council on
Qualifications for the Lighting Professions, Certified Energy Managers (CEM)
by the Association of Energy Engineers, and LEED Accredited Professionals
(AP) by the U.S. Green Buildings Council.'.
(3) REQUIREMENT FOR BILEVEL SWITCHING- Section 179D(f)(2) is amended by
adding at the end the following new subparagraph:
`(3) APPLICATION OF SUBSECTION TO BILEVEL SWITCHING-
`(A) IN GENERAL- Notwithstanding paragraph (2)(C)(i), this subsection
shall apply to a system which does not include provisions for bilevel
switching if the reduction in lighting power density is at least 37.5
percent of the minimum requirements in Table 9.3.1.1 or Table 9.3.1.2 (not
including additional interior lighting allowances) of Standard
90.1-2001.
`(B) REDUCTION IN DEDUCTION- In the case of a system to which this
subsection applies by reason of subparagraph (A), paragraph (2) shall be
applied--
`(i) by substituting `50 percent' for `40 percent' in subparagraph
(A) thereof, and
`(ii) in subparagraph (B)(ii) thereof--
`(I) by substituting `37.5 percentage points' for `25 percentage
points', and
`(II) by substituting `12.5' for `15'.'.
(f) Public Property- Paragraph (4) of section 179(d) is amended by
striking `the Secretary shall promulgate a regulation to allow the allocation
of the deduction' and inserting `the deduction under this section shall be
allowed'.
(g) Effective Date- The amendments made by this section shall apply to
property placed in service in taxable years beginning after the date of the
enactment of this Act.
SEC. 215. DEDUCTION FOR ENERGY EFFICIENT LOW-RISE BUILDINGS.
(a) In General- Part VI of subchapter B of chapter 1, as amended by
section 404 of division A of the Tax Relief and Health Care Act of 2006, is
amended by inserting after section 179E the following new section:
`SEC. 179F. ENERGY EFFICIENT LOW-RISE BUILDINGS DEDUCTION.
`(a) In General- There shall be allowed as a deduction an amount equal to
the amount of qualified energy efficiency expenditures paid or incurred by the
taxpayer during the taxable year.
`(1) IN GENERAL- The amount allowed as a credit under subsection (a)
with respect to any dwelling unit shall not exceed the product of--
`(A) the qualified energy savings achieved, and
`(2) MINIMUM AMOUNT OF QUALIFIED ENERGY SAVINGS- No credit shall be
allowed under subsection (a) with respect to any dwelling unit in a
qualified low-rise building which achieves a qualified energy savings of
less than 20 percent.
`(c) Qualified Energy Efficiency Expenditures- For purposes of this
section--
`(1) IN GENERAL- The term `qualified energy efficiency expenditures'
means any amount paid or incurred which is related to producing qualified
energy savings in any dwelling unit located in a qualified low-rise building
of the taxpayer which is located in the United States.
`(2) NO DOUBLE BENEFIT FOR CERTAIN EXPENDITURES- The term `qualified
energy efficiency expenditures' shall not include any expenditure for any
property for which a deduction has been allowed to the taxpayer under
section 179G.
`(3) QUALIFIED LOW-RISE BUILDING- The term `qualified low-rise building'
means a building--
`(A) with respect to which depreciation is allowable under section
167,
`(B) which is used for multifamily housing, and
`(C) which is not within the scope of Standard 90.1-2001 (as defined
under section 179D(c)(2)).
`(d) Qualified Energy Savings- For purposes of this section--
`(1) IN GENERAL- The term `qualified energy savings' means, with respect
to any dwelling unit in a qualified low-rise building, the amount (measured
as a percentage) by which--
`(A) the annual energy use with respect to such dwelling unit after
qualified energy efficiency expenditures are made, as certified under
paragraph (2), is less than
`(B) the annual energy use with respect to such dwelling unit before
the qualified energy efficiency expenditures were made, as certified under
paragraph (2).
In determining annual energy use under subparagraph (B), any energy
efficiency improvements which are not attributable to qualified energy
efficiency expenditures shall be disregarded.
`(A) IN GENERAL- The Secretary, in consultation with the Secretary of
Energy, shall prescribe the procedures and method for the making of
certifications under this paragraph based on the Residential Energy
Services Network (RESNET) Technical Guidelines in effect on the date of
the enactment of this Act.
`(B) QUALIFIED INDIVIDUALS- Any certification made under this
paragraph may only be made by an individual who is recognized by an
organization certified by the Secretary for such purposes.
`(e) Special Rules- For purposes of this section, rules similar to the
rules under paragraphs (8) and (9) of section 25D(e) shall apply.
`(f) Basis Adjustments- For purposes of this subtitle, if a credit is
allowed under this section with respect to any expenditure with respect to any
property, the increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the amount of the
credit so allowed.
`(g) Termination- This section shall not apply with respect to any
property placed in service after December 31, 2011.'.
(b) Conforming Amendments-
(1) Section 263(a)(1), as amended by section 404 of division A of the
Tax Relief and Health Care Act of 2006, the is amended by striking `or' at
the end of subparagraph (K), by striking the period at the end of
subparagraph (L) and inserting `, or', and by inserting after subparagraph
(L) the following new subparagraph:
`(M) expenditures for which a deduction is allowed under section
179F.'.
(2) Section 312(k)(3)(B) is amended by striking `179, 179A, 179B, 179C,
179D, or 179E' each place it appears in the heading and text and inserting
`179, 179A, 179B, 179C, 179D, 179E, or 179F'.
(3) Section 1016(a), as amended by section 101, is amended by striking
`and' at the end of paragraph (37), by striking the period at the end of
paragraph (38) and inserting `, and', and by adding at the end the following
new paragraph:
`(39) to the extent provided in section 179F(f).'.
(4) Section 1245(a) is amended by inserting `179F,' after `179E,' both
places it appears in paragraphs (2)(C) and (3)(C).
(5) The table of sections for part VI of subchapter B is amended by
inserting after the item relating to section 179E the following new
item:
`Sec. 179F. Energy efficient low-rise buildings deduction.'.
(c) Effective Date- The amendments made by this section shall apply to
amounts paid or incurred in taxable years beginning after the date of the
enactment of this Act.
SEC. 216. ENERGY EFFICIENT PROPERTY DEDUCTION.
(a) In General- Part VI of subchapter B of chapter 1, as amended by
section 203, is amended by inserting after section 179F the following new
section:
`SEC. 179G. ENERGY EFFICIENT PROPERTY.
`(a) In General- There shall be allowed as a deduction an amount equal to
the energy efficient property expenditures paid or incurred by the taxpayer
during the taxable year.
`(b) Limitation- The amount of the deduction allowed under subsection (a)
for any taxable years shall not exceed--
`(1) $150 for any advanced main air circulating fan,
`(2) $450 for any qualified natural gas furnace or qualified propane
furnace, and
`(A) any item of energy-efficient building property, and
`(B) any qualified oil furnace, qualified natural gas hot water
boiler, qualified propane hot water boiler, or qualified oil hot water
boiler.
`(c) Energy Efficient Property Expenditures- For purposes of this
section--
`(1) IN GENERAL- The term `energy efficient property expenditures' means
expenditures paid by the taxpayer for qualified energy property which
is--
`(A) of a character subject to the allowance for depreciation,
and
`(B) originally placed in service by the taxpayer.
`(2) QUALIFIED ENERGY PROPERTY- The term `qualified energy property' has
the meaning given such term by section 25C(d)(2).
`(d) Basis Adjustments- For purposes of this subtitle, if a deduction is
allowed under this section with respect to any expenditure with respect to any
property, the increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the amount of the
deduction so allowed.
`(e) Termination- This section shall not apply with respect to any
property placed in service after December 31, 2011.'.
(b) No Double Benefit- Section 179D(c) is amended by adding at the end the
following new paragraph:
`(3) CERTAIN PROPERTY EXCLUDED- The term `energy efficient commercial
building property' does not include any property with respect to which a
credit has been allowed to the taxpayer under section 179G.'.
(c) Conforming Amendments-
(1) Section 263(a)(1), as amended by section 203, is amended by striking
`or' at the end of subparagraph (K), by striking the period at the end of
subparagraph (L) and inserting `, or', and by inserting after subparagraph
(L) the following new subparagraph:
`(M) expenditures for which a deduction is allowed under section
179G.'.
(2) Section 312(k)(3)(B), as amended by section 203, is amended by
striking `179, 179A, 179B, 179C, 179D, 179E, or 179F' each place it appears
in the heading and text and inserting `179, 179A, 179B, 179C, 179D, 179E,
179F, or 179G'.
(3) Section 1016(a), as amended by section 203, is amended by striking
`and' at the end of paragraph (38), by striking the period at the end of
paragraph (39) and inserting `, and', and by adding at the end the following
new paragraph:
`(40) to the extent provided in section 179G(e).'.
(4) Section 1245(a), as amended by section 203 is amended by inserting
`179G,' after `179F,' both places it appears in paragraphs (2)(C) and
(3)(C).
(5) The table of sections for part VI of subchapter B is amended by
inserting after the item relating to section 179F the following new
item:
`Sec. 179G. Energy efficient property.'.
(d) Effective Date- The amendments made by this section shall apply to
property placed in service in taxable years beginning after the date of the
enactment of this Act.
SEC. 217. CREDIT FOR ENERGY SAVINGS CERTIFICATIONS.
(a) In General- Subpart D of part IV of subchapter A of chapter 1 is
amended by adding at the end the following new section:
`SEC. 45O. ENERGY SAVINGS CERTIFICATION CREDIT.
`(a) In General- For purposes of section 38, the energy savings
certification credit determined under this section for any taxable year is an
amount equal to the sum of--
`(1) the qualified training and certification costs paid or incurred by
the taxpayer which may be taken into account for such taxable year,
plus
`(2) the qualified certification equipment expenditures paid or incurred
by the taxpayer which may be taken into account for such taxable year.
`(b) Qualified Training and Certification Costs-
`(1) IN GENERAL- The term `qualified training and certification costs'
means costs paid or incurred for training which is required for the taxpayer
or employees of the taxpayer to be certified by the Secretary under section
25D(d)(2)(B) or 179F(d)(2)(B) for the purpose of certifying energy
savings.
`(2) LIMITATION- The qualified training and certification costs taken
into account under subsection (a)(1) for the taxable year with respect to
any individual shall not exceed $500 reduced by the amount of the credit
allowed under subsection (a)(1) to the taxpayer (or any predecessor) with
respect to such individual for all prior taxable years.
`(3) YEAR COSTS TAKEN INTO ACCOUNT- Qualified training and
certifications costs with respect to any individual shall not be taken into
account under subsection (a)(1) before the taxable year in which the
individual with respect to whom such costs are paid or incurred has
performed 25 certifications under sections 25E(d)(2)(A) and
179F(d)(2)(A).
`(c) Qualified Certification Equipment Expenditures-
`(1) IN GENERAL- The term `qualified training equipment expenditures'
means costs paid or incurred for--
`(B) duct leakage testing equipment,
`(C) flue gas combustion equipment, and
`(A) IN GENERAL- The qualified certification equipment expenditures
taken into account under subsection (a)(2) with respect to any taxpayer
for any taxable year shall not exceed $1,000.
`(B) LIMITATION ON INDIVIDUAL ITEMS- The qualified certification
equipment expenditures taken into account under subsection (a)(2) shall
not exceed--
`(i) $500 with respect to any blower door or duct leakage testing
equipment, and
`(ii) $100 with respect to any flue gas combustion equipment or
digital manometer.
`(3) YEAR EXPENDITURES TAKEN INTO ACCOUNT- The qualified certification
equipment expenditures of any taxpayer shall not be taken into account under
subsection (a)(2) before the taxable year in which the taxpayer has
performed 25 certifications under sections 25E(d)(2)(A) and
179F(d)(2)(A).
`(1) AGGREGATION RULES- For purposes of this section, all persons
treated as a single employer under subsections (a) and (b) of section 52
shall be treated as 1 person.
`(2) BASIS REDUCTION- The basis of any property shall be reduced by the
portion of the cost of such property taken into account under subsection
(a).
`(3) DENIAL OF DOUBLE BENEFIT-
`(A) IN GENERAL- No deduction shall be allowed for that portion of the
expenses otherwise allowable as a deduction for the taxable year which is
equal to the amount taken into account under subsection (a) for such
taxable year.
`(B) AMOUNT PREVIOUSLY DEDUCTED- No credit shall be allowed under
subsection (a) with respect to any amount for which a deduction has been
allowed in any preceding taxable year.'.
(b) Credit Treated as Part of General Business Credit- Section 38(b) is
amended by striking `plus' at the end of paragraph (30), by striking the
period at the end of paragraph (31) and inserting `plus', and by adding at the
end the following new paragraph:
`(32) the energy savings certification credit determined under section
45O(a).'.
(c) Conforming Amendments-
(1) Section 1016(a), as amended by this Act, is amended by striking
`and' at the end of paragraph (39), by striking the period at the end of
paragraph (40) and inserting `and', and by adding at the end the following
new paragraph:
`(41) to the extent provided in section 45O(d)(2).'.
(2) The table of sections for subpart D of part IV of subchapter A of
chapter 1 is amended by inserting after the item relating to section 45N the
following new item:
`Sec. 45O. Energy savings certification credit.'.
(d) Effective Date- The amendments made by this section shall apply to
amounts paid or incurred after the date of the enactment of this Act.
TITLE III--SAVE TAX PAYERS MONEY
SEC. 301. REPEAL OF CERTAIN PROVISIONS OF THE ENERGY POLICY ACT OF
2005.
(a) Repeals- The following provisions of the Energy Policy Act of 2005,
and the items relating thereto in the table of contents of that Act, are
repealed:
(1) Section 342 (relating to program on oil and gas royalties
in-kind).
(2) Section 343 (relating to marginal property production
incentives).
(3) Section 344 (relating to incentives for natural gas production from
deep wells in the shallow waters of the Gulf of Mexico).
(4) Section 345 (relating to royalty relief for deep water
production).
(5) Section 357 (relating to comprehensive inventory of OCS oil and
natural gas resources).
(6) Subtitle J of title IX (relating to ultra-deepwater and
unconventional natural gas and other petroleum resources).
(b) Repeal of Alaska Offshore Royalty Suspension- Section 8(a)(3)(B) of
the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended by
striking `and in the Planning Areas offshore Alaska'.
SEC. 302. REPEAL OF CERTAIN TAX PROVISIONS OF THE ENERGY POLICY ACT OF
2005.
(a) Repeal- The following provisions, and amendments made by such
provisions, of the Energy Policy Act of 2005 are hereby repealed:
(1) Section 1306 (relating to credit for production from advanced
nuclear power facilities).
(2) Section 1307 (relating to credit for investment in clean coal
facilities).
(3) Section 1308 (relating to electric transmission property treated as
15-year property).
(4) Section 1309 (relating to expansion of amortization for certain
atmospheric pollution control facilities).
(5) Section 1310 (relating to modifications to special rules for nuclear
decommissioning costs).
(6) Section 1321 (relating to extension of credit for producing fuel
from nonconventional source (coke or coke gas).
(7) Section 1323 (relating to temporary expensing for equipment used in
refining of liquid fuels).
(8) Section 1325 (relating to natural gas distribution lines treated as
15-year property).
(9) Section 1326 (relating to natural gas gathering lines treated as
7-year property).
(10) Section 1328 (relating to determination of small refiner exception
to oil depletion deduction).
(11) Section 1329 (relating to amortization of geological and
geophysical expenditures).
(b) Administration of Internal Revenue Code of 1986- The Internal Revenue
Code of 1986 shall be applied and administered as if the provisions, and
amendments, specified in subsection (a) had never been enacted.
TITLE IV--STATE AND LOCAL AUTHORITY
SEC. 401. STATE CONSUMER PRODUCT ENERGY EFFICIENCY STANDARDS.
Section 327 of the Energy Policy and Conservation Act (42 U.S.C. 6297) is
amended by adding at the end the following new subsection:
`(h) Limitation on Preemption- Subsections (a), (b), and (c) shall not
apply with respect to State regulation of energy consumption or water use of
any covered product during any period of time--
`(1) after the expiration of 3 years after the required date of issuance
of a final rule determining whether Federal standards for such consumption
or use will be established or revised, if such rule has not been issued;
and
`(2) before the date on which such rule is issued.'.
SEC. 402. APPEALS FROM CONSISTENCY DETERMINATIONS UNDER COASTAL ZONE
MANAGEMENT ACT OF 1972.
Section 319 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1465) is
amended to read as if section 381 of the Energy Policy Act of 2005 (119 Stat.
737) were not enacted.
SEC. 403. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
Section 216 of the Federal Power Act (16 U.S.C. 824p) is repealed.
SEC. 404. NEW NATURAL GAS STORAGE FACILITIES.
Subsection (f) of section 4 of the Natural Gas Act (15 U.S.C. 717c(f)) is
repealed.
SEC. 405. PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURE.
The amendments to the Natural Gas Act made by section 313 of the Energy
Policy Act of 2005 are repealed, and the Natural Gas Act shall be administered
as if those amendments were never enacted.
SEC. 406. REPEAL OF PREEMPTION OF STATE LAW RELATING TO A