[DISCUSSION DRAFT] OCTOBER 22, H. R. ll

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1 F:\M\BLUMEN\BLUMEN_0.XML TH CONGRESS ST SESSION [DISCUSSION DRAFT] OCTOBER, 0 H. R. ll To amend the Internal Revenue Code of to modify and extend certain tax incentives relating to energy. IN THE HOUSE OF REPRESENTATIVES Mr. BLUMENAUER introduced the following bill; which was referred to the Committee on llllllllllllll A BILL To amend the Internal Revenue Code of to modify and extend certain tax incentives relating to energy. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION. SHORT TITLE, ETC. (a) SHORT TITLE. This Act may be cited as the Bridge to a Clean Energy Future Act of 0. (b) AMENDMENT OF CODE. Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

2 F:\M\BLUMEN\BLUMEN_0.XML to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of. (c) TABLE OF CONTENTS. The table of contents for this Act is as follows: Sec.. Short title, etc. TITLE I EXTENSION AND MODIFICATION OF ENERGY TAX PROVISIONS Sec. 0. Extension and modification of credit for nonbusiness energy property. Sec. 0. Extension of credit for new qualified fuel cell motor vehicles. Sec. 0. Extension of credit for alternative fuel vehicle refueling property. Sec. 0. Extension of second generation biofuel producer credit. Sec. 0. Extension and reform of biodiesel tax incentives. Sec. 0. Extension of credits with respect to facilities producing energy from certain renewable resources. Sec. 0. Extension of credit for energy-efficient new homes. Sec. 0. Extension of special allowance for second generation biofuel plant property. Sec. 0. Extension and modification of energy efficient commercial buildings deduction. Sec. 0. Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities. Sec.. Extension of excise tax credits relating to alternative fuels. TITLE II ADDITIONAL PROVISIONS Sec. 0. Extension of energy credit for certain property under construction. Sec. 0. Modifications in credit for combined heat and power system property. Sec. 0. Energy credit for waste heat to power property. Sec. 0. Investment tax credit for community wind projects having generation capacity of not more than 0 megawatts. Sec. 0. Extension of publicly traded partnership ownership structure to energy power generation projects, transportation fuels, and related energy activities. Sec. 0. Additional advanced energy manufacturing credit allocations. TITLE III ENDING OIL AND GAS TAX SUBSIDIES Sec. 0. Amortization of geological and geophysical expenditures. Sec. 0. Producing oil and gas from marginal wells. Sec. 0. Enhanced oil recovery credit. Sec. 0. Intangible drilling and development costs in the case of oil and gas wells. Sec. 0. Repeal of percentage depletion for oil and gas wells. Sec. 0. Repeal of deduction for tertiary injectants. Sec. 0. Repeal of exception to passive loss limitations for working interests in oil and gas properties. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

3 F:\M\BLUMEN\BLUMEN_0.XML 0 0 Sec. 0. Deduction for income attributable to domestic production activities not allowed with respect to oil and gas activities. Sec. 0. Prohibition on using last-in, first-out accounting for oil and gas companies. Sec. 0. Modifications of foreign tax credit rules applicable to dual capacity taxpayers. TITLE I EXTENSION AND MODI- FICATION OF ENERGY TAX PROVISIONS SEC. 0. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY. (a) IN GENERAL. Paragraph () of section C(g) is amended by striking December, 0 and insert- ing December, 0. (b) UPDATED ENERGY STAR REQUIREMENTS FOR WINDOWS, DOORS, SKYLIGHTS, AND ROOFING. () IN GENERAL. Paragraph () of section C(c) is amended by striking which meets and all that follows through requirements). () ENERGY EFFICIENT BUILDING ENVELOPE COMPONENT. Subsection (c) of section C is amended by redesignating paragraphs () and () as paragraphs () and (), respectively, and by insert- ing after paragraph () the following new para- graph: () ENERGY EFFICIENT BUILDING ENVELOPE COMPONENT. The term energy efficient building f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

4 F:\M\BLUMEN\BLUMEN_0.XML 0 0 envelope component means a building envelope component which meets (A) applicable Energy Star program requirements, in the case of a roof or roof products, (B) version.0 Energy Star program requirements, in the case of an exterior window, a skylight, or an exterior door, and (C) the prescriptive criteria for such component established by the 00 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 00, in the case of any other component.. () CONFORMING AMENDMENT. Subparagraph (D) of section C(c)(), as so redesignated, is amended to read as follows: (D) any roof or roof products which are installed on a dwelling unit and are specifically and primarily designed to reduce the heat gain of such dwelling unit.. (c) SEPARATE STANDARDS FOR TANKLESS AND STORAGE WATER HEATERS. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

5 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () IN GENERAL. Subparagraph (D) of section C(d)() is amended by striking which has either and all that follows and inserting which has either (i) in the case of a storage water heater, an energy factor of at least 0.0 or a thermal efficiency of at least 0 percent, and (ii) in the case of any other water heater, an energy factor of at least 0.0 or a thermal efficiency of at least 0 percent, and. () STORAGE WATER HEATERS. Paragraph () of section C(d) is amended by adding at the end the following flush sentence: For purposes of subparagraph (D)(i), the term storage water heater means a water heater that has a water storage capacity of more than 0 gallons but not more than gallons.. (d) MODIFICATION OF TESTING STANDARDS FOR BIOMASS STOVES. Subparagraph (E) of section C(d)() is amended by inserting before the period the following:, when tested using the higher heating value of the fuel and in accordance with the Canadian Standards Administration B. test protocol. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

6 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (e) SEPARATE STANDARD FOR OIL HOT WATER BOILERS. Paragraph () of section C(d) is amended by striking and inserting (0 in the case of an oil hot water boiler). (f) INSTALLATION COSTS FOR QUALIFIED ENERGY EFFICIENCY IMPROVEMENTS. Paragraph () of sub- section (c) of section C is amended by adding at the end the following flush sentence: Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the component.. (g) EFFECTIVE DATE. The amendments made by this section shall apply to property placed in service after December, 0. SEC. 0. EXTENSION OF CREDIT FOR NEW QUALIFIED FUEL CELL MOTOR VEHICLES. (a) IN GENERAL. Paragraph () of section 0B(k) is amended by striking December, 0 and inserting December, 0. (b) EFFECTIVE DATE. The amendment made by this section shall apply to property purchased after December, 0. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

7 F:\M\BLUMEN\BLUMEN_0.XML 0 0 SEC. 0. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY. (a) IN GENERAL. Subsection (g) of section 0C is amended by striking December, 0 and inserting December, 0. (b) EFFECTIVE DATE. The amendment made by this section shall apply to property placed in service after December, 0. SEC. 0. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER CREDIT. (a) IN GENERAL. Clause (i) of section 0(b)()(J) is amended by striking January, 0 and inserting January, 0. (b) EFFECTIVE DATE. The amendment made by this subsection shall apply to qualified second generation biofuel production after December, 0. SEC. 0. EXTENSION AND REFORM OF BIODIESEL TAX IN- CENTIVES. (a) INCOME TAX CREDIT. () EXTENSION. (A) CREDITS FOR BIODIESEL AND RENEW- ABLE DIESEL USED AS FUEL. Subsection (g) of section 0A is amended by striking December, 0 and inserting December, 0. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

8 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (B) EFFECTIVE DATE. The amendment made by this paragraph shall apply to fuel sold or used after December, 0. () REFORM OF INCOME TAX CREDIT. (A) IN GENERAL. So much of section 0A as precedes subsection (c) is amended to read as follows: SEC. 0A. BIODIESEL FUELS CREDIT. (a) IN GENERAL. For purposes of section, in the case of an eligible taxpayer, the biodiesel fuels credit determined under this section for the taxable year is $.00 for each gallon of biodiesel produced by the taxpayer which during the taxable year () is sold by the producer of such biodiesel to another person (A) for use by such other person s trade or business as a fuel or in the production of a biodiesel mixture (other than casual off-farm production), or (B) who sells such biodiesel at retail to another person and places such biodiesel in the fuel tank of such other person, or () is used by such producer for any purpose described in paragraph (). (b) INCREASED CREDIT FOR SMALL PRODUCERS. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

9 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () IN GENERAL. In the case of any eligible small biodiesel producer, subsection (a) shall be applied by increasing the dollar amount contained therein by 0 cents. () LIMITATION. Paragraph () shall only apply with respect to the first,000,000 gallons of biodiesel produced by any eligible small biodiesel producer during any taxable year.. (B) DEFINITIONS AND SPECIAL RULES. Section 0A(d) is amended by striking all that follows paragraph () and inserting the following: () ELIGIBLE TAXPAYER. (A) IN GENERAL. The term eligible taxpayer means, with respect to any gallon of biodiesel, the producer of such gallon if such producer has paid the tax imposed by section 0 on such biodiesel. (B) SPECIAL RULE FOR ELIGIBLE DIS- CRETIONARY BLENDERS. For purposes of this section (other than subsection (b)), an eligible discretionary blender shall be treated as the producer of any gallon of biodiesel which is used to make a qualified biodiesel mixture if f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

10 F:\M\BLUMEN\BLUMEN_0.XML (i) the producer of such biodiesel (determined without regard to this subparagraph) (I) did not pay the tax imposed under section 0 with respect to such gallon, and (II) assigns the credit allowed under this section to the eligible discretionary blender in such form and manner as provided by the Secretary, and (ii) such eligible discretionary blender pays the tax imposed under section 0 with respect to such gallon. For purposes of the preceding sentence, an eligible discretionary blender shall be treated as producing a gallon of biodiesel in the taxable year in which the sale or use of the qualified biodiesel mixture occurs. (C) ELIGIBLE DISCRETIONARY BLEND- ER. For purposes of subparagraph (B), the term eligible discretionary blender means any person who f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

11 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (i) is registered under section 0 as a blender of qualified biodiesel mixtures, and (ii) has used 0,000,000 or more gallons of biodiesel in the production of qualified biodiesel mixtures in the preceding taxable year. () BIODIESEL MIXTURE; QUALIFIED BIO- DIESEL MIXTURE. (A) BIODIESEL MIXTURE. The term biodiesel mixture means a mixture which consists of biodiesel and diesel fuel (as defined in section 0(a)()), determined without regard to any use of kerosene. (B) QUALIFIED BIODIESEL MIXTURE. (i) IN GENERAL. The term qualified biodiesel mixture means a biodiesel mixture which is produced by an eligible discretionary blender and (I) sold by such eligible discretionary blender to any person for use as a fuel, or (II) used by such eligible discretionary blender as a fuel. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

12 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (ii) SALE OR USE MUST BE IN TRADE OR BUSINESS, ETC. A biodiesel mixture shall not be treated as a qualified biodiesel mixture unless the sale or use described in clause (i) is in a trade or business of the eligible discretionary blender. () BIODIESEL NOT USED FOR A QUALIFIED PURPOSE. If (A) any credit was determined with respect to any biodiesel under this section, and (B) any person uses such biodiesel for a purpose not described in subsection (a), then there is hereby imposed on such person a tax equal to the product of the rate applicable under subsection (a) and the number of gallons of such biodiesel. () PASS-THRU IN THE CASE OF ESTATES AND TRUSTS. Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section shall apply. () LIMITATION TO BIODIESEL WITH CONNEC- TION TO THE UNITED STATES. No credit shall be determined under subsection (a) with respect to biodiesel unless such biodiesel is produced in the United States. For purposes of this paragraph, the term f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

13 F:\M\BLUMEN\BLUMEN_0.XML 0 0 United States includes any possession of the United States.. (C) RULES FOR SMALL BIODIESEL PRO- DUCERS. (i) IN GENERAL. Section 0A(e) is amended (I) by striking agri-biodiesel each place it appears in paragraphs () and ()(A) and inserting biodiesel, (II) by striking subsection (b)()(c) each place it appears in paragraphs () and () and inserting subsection (b)(), and (III) by striking subsection (a)() each place it appears in paragraphs ()(A), ()(A)(i), and ()(B)(i) and inserting subsection (b). (ii) The heading for subsection (e) of section 0A is amended by striking AGRI- BIODIESEL and inserting BIODIESEL. (iii) The headings for paragraphs () and () of section 0A(e) are each amended by striking AGRI-BIODIESEL and in- serting BIODIESEL. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

14 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (D) CONFORMING AMENDMENTS RELATED TO RENEWABLE DIESEL. Section 0A(f) is amended (i) by striking Subsection (b)() and inserting Subsection (b), and (ii) by striking paragraph () and inserting the following: () CERTAIN AVIATION FUEL. Except as provided in the last sentences of paragraph (), the term renewable diesel shall include fuel derived from biomass which meets the requirements of a Department of Defense specification for military jet fuel or an American Society of Testing and Materials specification for aviation turbine fuel.. TIONARY (E) REGISTRATION OF ELIGIBLE DISCRE- BLENDERS. Section 0(a)() is amended (i) by striking and before every person producing second generation biofuel, and (ii) by inserting, and every person producing qualified biodiesel mixtures (as defined in section 0A(d)()) 0,000,000 or more gallons per year after section 0(b)()(E)). f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

15 F:\M\BLUMEN\BLUMEN_0.XML (F) CLERICAL AMENDMENT. The table of sections for subpart D of part IV of subchapter A of chapter is amended by striking the item relating to section 0A and inserting the following new item: Sec. 0A. Biodiesel fuels credit (G) EFFECTIVE DATE. The amendments made by this paragraph shall apply to fuel sold or used after December, 0. (b) EXCISE TAX INCENTIVES. () EXTENSION. (A) IN GENERAL. Paragraph () of section (c) is amended by striking December, 0 and inserting December, 0. (B) PAYMENTS. Subparagraph (B) of section (e)() is amended by striking December, 0 and inserting December, 0. (C) EFFECTIVE DATE. The amendments made by this paragraph shall apply to fuel sold or used after December, 0. (D) SPECIAL RULE FOR CERTAIN PERIODS DURING 0. Notwithstanding any other provision of law, in the case of any biodiesel mixture credit properly determined under section (c) of the Internal Revenue Code of f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

16 F:\M\BLUMEN\BLUMEN_0.XML 0 0 for periods after December, 0, and on or before the last day of the first calendar quarter ending after the date of the enactment of this Act, such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section (e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary s delegate) shall provide. Such Secretary shall issue guidance within 0 days after the date of the enactment of this Act providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 0-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 0 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 0 days after receipt. If such Secretary has not paid pursuant to a claim filed under this subsection within 0 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section of such Code. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

17 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () REFORM OF EXCISE TAX CREDIT. (A) IN GENERAL. Subsection (c) of section is amended (i) by striking all that precedes paragraph () and inserting the following: (c) BIODIESEL PRODUCTION CREDIT. () IN GENERAL. For purposes of this section, in the case of an eligible taxpayer, the biodiesel production credit is $.00 for each gallon of biodiesel produced by the taxpayer and which (A) is sold by such producer to another person (i) for use by such other person s trade or business as a fuel or in the production of a biodiesel mixture (other than casual off-farm production), or (ii) who sells such biodiesel at retail to another person and places such biodiesel in the fuel tank of such other person, or (B) is used by such producer for any purpose described in subparagraph (A). TIONARY () SPECIAL RULE FOR ELIGIBLE DISCRE- BLENDERS. For purposes of this sub- section and section (e)(), an eligible discretionary blender shall be treated as the producer of f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

18 F:\M\BLUMEN\BLUMEN_0.XML 0 0 any gallon of biodiesel which is used to make a qualified biodiesel mixture if (A) the producer of such biodiesel (determined without regard to this subparagraph) (i) did not pay the tax imposed under section 0 with respect to such gallon, and (ii) assigns the credit allowed under this section to the eligible discretionary blender in such form and manner as provided by the Secretary, and (B) such eligible discretionary blender pays the tax imposed under section 0 with respect to such gallon. For purposes of the preceding sentence, an eligible discretionary blender shall not be treated as producing a gallon of biodiesel before the date on which the sale or use of the qualified biodiesel mixture occurs. () DEFINITIONS. Any term used in this subsection which is also used in section 0A shall have the meaning given such term by section 0A., and (ii) by redesignating paragraph (), as amended by paragraph ()(A), as paragraph (). f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

19 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (B) PRODUCER REGISTRATION REQUIRE- MENT. Subsection (a) of section is amended by striking subsections (d) and (e) in the flush sentence at the end and inserting subsections (c), (d), and (e). (C) RECAPTURE. (i) IN GENERAL. Subsection (f) of section is amended (I) by striking or biodiesel each place it appears in subparagraphs (A) and (B)(i) of paragraph (), (II) by striking or biodiesel mixture in paragraph ()(A), and (III) by redesignating paragraph () as paragraph () and by inserting after paragraph () the following new paragraph: () BIODIESEL. If any credit was determined under this section or paid pursuant to section (e) with respect to the production of any biodiesel and any person uses such biodiesel for a purpose not described in subsection (c)(), then there is hereby imposed on such person a tax equal to $ for each gallon of such biodiesel.. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

20 F:\M\BLUMEN\BLUMEN_0.XML (ii) CONFORMING AMENDMENTS. (I) Paragraph () of section (f), as redesignated by clause (i)(iii), is amended by inserting or () after paragraph (). (II) The heading for paragraph () of section (f) is amended by striking IMPOSITION OF TAX and inserting IN GENERAL. (D) LIMITATION. Section (i) is amended (i) in paragraph () (I) by striking biodiesel or, and (II) by striking BIODIESEL AND in the heading, and (ii) by inserting after paragraph () the following new paragraph: () BIODIESEL. No credit shall be determined under this section with respect to biodiesel unless such biodiesel is produced in the United States.. (E) CLERICAL AMENDMENTS. (i) The heading of section is amended by striking ALCOHOL FUEL, BIODIESEL, AND ALTERNATIVE FUEL f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

21 F:\M\BLUMEN\BLUMEN_0.XML 0 0 MIXTURES and inserting ALCOHOL FUEL MIXTURES, BIODIESEL PRODUC- TION, AND ALTERNATIVE FUEL MIX- TURES. (ii) The item relating to section in the table of sections for subchapter B of chapter is amended by striking alcohol fuel, biodiesel, and alternative fuel mixtures and inserting alcohol fuel mixtures, biodiesel production, and alternative fuel mixtures. (F) EFFECTIVE DATE. The amendments made by this paragraph shall apply to fuel sold or used after December, 0. () REFORM OF EXCISE PAYMENTS OF CRED- IT. (A) IN GENERAL. Subsection (e) of section, as amended by paragraph ()(B), is amended (i) by striking or the biodiesel mixture credit in paragraph (), (ii) by redesignating paragraphs () through () as paragraphs () through (), respectively, and by inserting after paragraph () the following new paragraph: f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

22 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () BIODIESEL PRODUCTION CREDIT. If any person produces biodiesel and sells or uses such biodiesel as provided in section (c)(), the Secretary shall pay (without interest) to such person an amount equal to the biodiesel production credit with respect to such biodiesel., (iii) by striking paragraph () or () each place it appears in paragraphs () and (), as redesignated by paragraph (), and inserting paragraph (), (), or (), (iv) by striking alternative fuel each place it appears in paragraphs () and (), as redesignated by paragraph (), and inserting fuel, and (v) by striking biodiesel mixture (as defined in section (c)()) in paragraph ()(B), as so redesignated, and inserting biodiesel (within the meaning of section 0A). (B) EFFECTIVE DATE. The amendments made by this paragraph shall apply to fuel sold or used after December, 0. (c) TREATMENT OF BIODIESEL AS A TAXABLE FUEL. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

23 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () IN GENERAL. (A) TAXABLE FUEL INCLUDES BIO- DIESEL. Paragraph () of section 0(a) is amended by striking and at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting, and, and by adding at the end the following new subparagraph: (D) biodiesel.. (B) BIODIESEL DEFINED. Subsection (a) of section 0 is amended by adding at the end the following new paragraph: () BIODIESEL. The term biodiesel has the meaning given such term under section 0A(d)(), determined without regard to the last sentence thereof.. () BIODIESEL PRODUCTION FACILITIES TREATED AS REFINERIES. (A) IN GENERAL. Subsection (a) of section 0 is amended by adding at the end the following new paragraph: () BIODIESEL PRODUCTION FACILITIES AND BLENDING FACILITIES TREATED AS REFINERIES. For purposes of this part f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

24 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (A) any facility which is used to produce biodiesel, and (B) any biodiesel blending facility, shall be treated as a refinery with respect to biodiesel.. (B) BIODIESEL BLENDING FACILITY DE- FINED. Section 0 is amended by adding at the end the following new subsection: (e) BIODIESEL BLENDING FACILITY. For purposes of this subpart, the term biodiesel blending facility means any facility that is operated by an eligible discretionary blender (as defined in section 0A(d)()(C)).. (C) BULK TRANSFERS. Subparagraph (B) of section 0(a)() is amended by adding at the end the following new clause: (iii) SPECIAL RULES FOR BIO- DIESEL. The tax imposed by this paragraph shall not apply to the removal or entry of biodiesel to any refinery or terminal if the person removing or entering the biodiesel and the operator of the refinery or terminal are registered under section 0.. () RATE OF TAX. Subparagraph (A)(iii) of section 0(a)() is amended by striking diesel f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

25 F:\M\BLUMEN\BLUMEN_0.XML 0 0 fuel or kerosene and inserting diesel fuel, kerosene, or biodiesel. () EXEMPTIONS. (A) IN GENERAL. Section 0 is amended by striking diesel fuel and kerosene each place it appears in subsections (a), (c), and (g) and inserting diesel fuel, kerosene, and biodiesel. (B) CONFORMING AMENDMENT. Subparagraph (A) of section 0(d)() is amended by inserting biodiesel, after diesel fuel,. () OTHER CONFORMING AMENDMENTS. (A) The heading for paragraph () of section 0(a) is amended by striking DIESEL FUEL AND KEROSENE and inserting DIESEL FUEL, KEROSENE, AND BIODIESEL. (B) Paragraph () of section (b) is amended by striking diesel fuel or kerosene and inserting diesel fuel, kerosene, or biodiesel. (C) Section (l) is amended (i) by striking diesel fuel or kerosene each place it appears in paragraph () and ()(A) and inserting diesel fuel, kerosene, or biodiesel, f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

26 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (ii) by striking DIESEL FUEL AND KEROSENE in the heading and inserting DIESEL FUEL, KEROSENE, AND BIO- DIESEL, and (iii) by striking DIESEL FUEL OR KEROSENE in the heading of paragraph () and inserting DIESEL FUEL, KER- OSENE, OR BIODIESEL. (D) Section (c)() is amended by striking diesel fuel or kerosene and inserting diesel fuel, kerosene, or biodiesel. () EFFECTIVE DATE. The amendments made by this subsection shall apply to biodiesel sold or used after December, 0. SEC. 0. EXTENSION OF CREDITS WITH RESPECT TO FA- CILITIES PRODUCING ENERGY FROM CER- TAIN RENEWABLE RESOURCES. (a) IN GENERAL. The following provisions of section (d) are each amended by striking January, 0 each place it appears and inserting January, 0 : () Paragraph (). () Paragraph ()(A). () Paragraph ()(A). () Paragraph ()(B). f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

27 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () Paragraph (). () Paragraph (). () Paragraph (). () Paragraph ()(B). (b) EXTENSION OF ELECTION TO TREAT QUALIFIED FACILITIES AS ENERGY PROPERTY. Clause (ii) of section (a)()(c) is amended by striking January, 0 and inserting January, 0. (c) EFFECTIVE DATES. The amendments made by this section shall take effect on January, 0. SEC. 0. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES. (a) IN GENERAL. Subsection (g) of section L is amended by striking December, 0 and inserting December, 0. (b) EFFECTIVE DATE. The amendment made by this section shall apply to homes acquired after December, 0. SEC. 0. EXTENSION OF SPECIAL ALLOWANCE FOR SEC- OND GENERATION BIOFUEL PLANT PROP- ERTY. (a) IN GENERAL. Subparagraph (D) of section (l)() is amended by striking January, 0 and inserting January, 0. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

28 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (b) EFFECTIVE DATE. The amendment made by this section shall apply to property placed in service after December, 0. SEC. 0. EXTENSION AND MODIFICATION OF ENERGY EF- FICIENT COMMERCIAL BUILDINGS DEDUC- TION. (a) IN GENERAL. Subsection (h) of section D is amended by striking December, 0 and inserting December, 0. (b) ALLOCATIONS TO INDIAN TRIBAL GOVERN- MENTS. Paragraph () of section D(d) is amended by striking or local and inserting local, or Indian tribal. (c) ALLOCATIONS TO CERTAIN NONPROFIT ORGANI- ZATIONS. () IN GENERAL. Paragraph () of section D(d), as amended by subsection (b), is amended by inserting or by an organization that is described in section 0(c)() and exempt from tax under section 0(a), after political subdivision thereof,. () CLERICAL AMENDMENT. The heading of paragraph () of section D(d) is amended by in- serting AND PROPERTY HELD BY CERTAIN NON- PROFITS after PUBLIC PROPERTY. (d) UPDATED ASHRAE STANDARDS FOR 0. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

29 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () IN GENERAL. Paragraph () of section D(c) is amended by striking Standard each place it appears and inserting Standard () CONFORMING AMENDMENTS. (A) Paragraph () of section D(c) is amended to read as follows: () STANDARD The term Standard means Standard of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America (as in effect on the day before the date of the adoption of Standard of such Societies).. (B) Subsection (f) of section D is amended by striking Standard each place it appears in paragraphs () and ()(C)(i) and inserting Standard (C) Paragraph () of section D(f) is amended (i) by striking Table... and inserting Table.., and (ii) by striking Table... and inserting Table... f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

30 F:\M\BLUMEN\BLUMEN_0.XML () EFFECTIVE DATE. The amendments made by this subsection shall apply to property placed in service after December, 0. (e) EFFECTIVE DATE. Except as provided in subsection (d)(), the amendments made by this section shall apply to property placed in service after December, 0. SEC. 0. EXTENSION OF SPECIAL RULE FOR SALES OR DIS- POSITIONS TO IMPLEMENT FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR QUALIFIED ELECTRIC UTILITIES. (a) IN GENERAL. Paragraph () of section (i) is amended by striking January, 0 and inserting January, 0. (b) EFFECTIVE DATE. The amendment made by this section shall apply to dispositions after December, 0. SEC.. EXTENSION OF EXCISE TAX CREDITS RELATING TO ALTERNATIVE FUELS. (a) EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS. () IN GENERAL. Sections (d)() and (e)() are each amended by striking December, 0 and inserting December, 0. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

31 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () OUTLAY PAYMENTS FOR ALTERNATIVE FUELS. Subparagraph (C) of section (e)(), as redesignated by section (b)()(a)(ii), is amended by striking December, 0 and inserting December, 0. (b) EFFECTIVE DATE. The amendments made by this section shall apply to fuel sold or used after December, 0. (c) SPECIAL RULE FOR CERTAIN PERIODS DURING 0. Notwithstanding any other provision of law, in the case of any alternative fuel credit properly determined under section (d) of such Code for such periods, such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section (e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary s delegate) shall provide. Such Secretary shall issue guidance within 0 days after the date of the enactment of this Act providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 0-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 0 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 0 days after receipt. If such Secretary has not f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

32 F:\M\BLUMEN\BLUMEN_0.XML 0 0 paid pursuant to a claim filed under this subsection within 0 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section of such Code. TITLE II ADDITIONAL PROVISIONS SEC. 0. EXTENSION OF ENERGY CREDIT FOR CERTAIN PROPERTY UNDER CONSTRUCTION. (a) SOLAR ENERGY PROPERTY. Paragraphs ()(A)(i)(II) and ()(A)(ii) of section (a) are each amended by striking periods ending and inserting property the construction of which begins. (b) QUALIFIED FUEL CELL PROPERTY. Section (c)()(d) is amended by striking for any period after December, 0 and inserting the construction of which does not begin before January, 0. (c) QUALIFIED MICROTURBINE PROPERTY. Section (c)()(d) is amended by striking for any period after December, 0 and inserting the construction of which does not begin before January, 0. (d) COMBINED HEAT AND POWER SYSTEM PROP- ERTY. Section (c)()(a)(iv) is amended by striking which is placed in service and inserting construction of which begins. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

33 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (e) QUALIFIED SMALL WIND ENERGY PROPERTY. Section (c)()(c) is amended by striking for any period after December, 0 and inserting the construction of which does not begin before January, 0. (f) THERMAL ENERGY PROPERTY. Section (a)()(a)(vii) is amended by striking periods ending and inserting property the construction of which begins. (g) EFFECTIVE DATE. The amendments made by this section shall take effect on the date of the enactment of this Act. SEC. 0. MODIFICATIONS IN CREDIT FOR COMBINED HEAT AND POWER SYSTEM PROPERTY. (a) INCREASED ENERGY PERCENTAGE. Section (a)()(a)(i) is amended by striking and at the end of subclause (III), by redesignating subclause (IV) as subclause (V), and by inserting after subclause (III) the following new subclause: (IV) energy property described in paragraph ()(A)(v), and. (b) MODIFICATION OF CERTAIN CAPACITY LIMITA- TIONS. Section (c)()(b) is amended () by striking megawatts in clause (ii) and inserting megawatts, f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

34 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () by striking 0,000 horsepower in clause (ii) and inserting,000 horsepower, and () by striking clause (iii). (c) EFFECTIVE DATE. The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section (m) of the Internal Revenue Code of (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 0). SEC. 0. ENERGY CREDIT FOR WASTE HEAT TO POWER PROPERTY. (a) IN GENERAL. Section (a)()(a) is amended by striking or at the end of clause (vi), by inserting or at the end of clause (vii), and by adding at the end the following new clause: (viii) waste heat to power property,. (b) WASTE HEAT TO POWER PROPERTY. Section (c) is amended by adding at the end the following new paragraph: () WASTE HEAT TO POWER PROPERTY. (A) WASTE HEAT TO POWER PROP- ERTY. The term waste heat to power property means property comprising a system which generates electricity through the recovery of a qualified waste heat resource. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

35 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (B) QUALIFIED WASTE HEAT RESOURCE DEFINED. The term qualified waste heat resource means (i) exhaust heat or flared gas from any industrial process, (ii) waste gas or industrial tail gas that would otherwise be flared, incinerated, or vented, (iii) a pressure drop in any gas for an industrial or commercial process, or (iv) such other forms of waste heat resources as the Secretary may determine. (C) EXCEPTION. The term qualified waste heat resource does not include any heat resource from a process whose primary purpose is the generation of electricity utilizing a fossil fuel or nuclear energy. (D) TERMINATION. The term waste heat to power property shall not include any property placed in service after December, 0.. (c) INCREASED ENERGY PERCENTAGE. Section (a)()(a)(i), as amended by section 0, is amended by striking and at the end of subclause (IV) and by inserting after subclause (V) the following new subclause: f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

36 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (VI) energy property described in paragraph ()(A)(viii), and. (d) EFFECTIVE DATE. The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section (m) of the Internal Revenue Code of (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 0). SEC. 0. INVESTMENT TAX CREDIT FOR COMMUNITY WIND PROJECTS HAVING GENERATION CAPACITY OF NOT MORE THAN 0 MEGAWATTS. (a) IN GENERAL. Paragraph () of section (c) is amended () by striking subparagraph (A) and inserting the following new subparagraph: (A) IN GENERAL. The term qualified small wind energy property means (i) property which uses a qualifying small wind turbine to generate electricity, or (ii) property which uses or more wind turbines with an aggregate nameplate capacity of more than 00 kilowatts but not more than 0 megawatts., and f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

37 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph: (C) REGULATIONS. The Secretary shall prescribe such regulations as may be appropriate to prevent improper division of property to attempt to meet the limitation under subparagraph (A)(ii).. (b) 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. 0. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP STRUCTURE TO ENERGY POWER GENERATION PROJECTS, TRANSPORTATION FUELS, AND RELATED ENERGY ACTIVITIES. (a) IN GENERAL. Subparagraph (E) of section 0(d)() is amended () by striking income and gains derived from the exploration and inserting income and gains derived from the following: (i) MINERALS, NATURAL RE- SOURCES, ETC. The exploration, () by inserting or before industrial source, f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

38 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () by inserting a period after carbon dioxide, and () by striking, or the transportation or storage and all that follows and inserting the following: (ii) RENEWABLE ENERGY. The generation of electric power (including the leasing of tangible personal property used for such generation) exclusively utilizing any resource described in section (c)() or energy property described in section (determined without regard to any termination date), or in the case of a facility described in paragraph () or () of section (d) (determined without regard to any placed in service date or date by which construction of the facility is required to begin), the accepting or processing of such resource. (iii) ELECTRICITY STORAGE DE- VICES. The receipt and sale of electric power that has been stored in a device directly connected to the grid.. (b) EFFECTIVE DATE. The amendments made by this section shall take effect on the date of the enactment of this Act, in taxable years ending after such date. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

39 F:\M\BLUMEN\BLUMEN_0.XML 0 0 SEC. 0. ADDITIONAL ADVANCED ENERGY MANUFAC- TURING CREDIT ALLOCATIONS. (a) ADDITIONAL ALLOCATION OF CREDITS. Section C(d) is amended by adding at the end the following: () ADDITIONAL ALLOCATION. (A) IN GENERAL. In addition to credits allocated under paragraph (), the Secretary, in consultation with the Secretary of Energy, is authorized to conduct an additional program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors pursuant to applications from such sponsors received after December, 0. (B) LIMITATION. The total amount of credits that may be allocated under subparagraph (A) shall not exceed $,00,000,000. (C) MODIFICATIONS TO APPLICABLE RULES. For purposes of this paragraph (i) APPLICATION PERIOD. The - year period described in paragraph () shall begin on January, 0. (ii) REALLOCATION. The -year period described in paragraph () shall begin the date of the enactment of this paragraph.. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

40 F:\M\BLUMEN\BLUMEN_0.XML (b) EFFECTIVE DATE. The amendment made by subsection (a) shall apply to periods beginning after December, 0. TITLE III ENDING OIL AND GAS TAX SUBSIDIES SEC. 0. AMORTIZATION OF GEOLOGICAL AND GEO- PHYSICAL EXPENDITURES. (a) IN GENERAL. Section (h) is amended () by striking -month period in paragraph () and inserting -year period, and () by striking paragraph (). (b) EFFECTIVE DATE. The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December, 0. SEC. 0. PRODUCING OIL AND GAS FROM MARGINAL WELLS. (a) IN GENERAL. Subpart D of part IV of subchapter A of chapter is amended by striking section I (and by striking the item relating to such section in the table of sections for such subpart). (b) CONFORMING amended by striking paragraph (). (c) EFFECTIVE AMENDMENT. Section (b) is DATE. The amendment made by subsection (a) shall apply to credits determined for taxable years beginning after December, 0. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 0000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

41 F:\M\BLUMEN\BLUMEN_0.XML 0 0 SEC. 0. ENHANCED OIL RECOVERY CREDIT. (a) IN GENERAL. Subpart D of part IV of subchapter A of chapter is amended by striking section (and by striking the item relating to such section in the table of sections for such subpart). (b) CONFORMING AMENDMENT. Section (b) is amended by striking paragraph (). (c) EFFECTIVE DATE. The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December, 0. SEC. 0. INTANGIBLE DRILLING AND DEVELOPMENT COSTS IN THE CASE OF OIL AND GAS WELLS. (a) IN GENERAL. Subsection (c) of section is amended by adding at the end the following new sentence: This subsection shall not apply to amounts paid or incurred by a taxpayer with respect to an oil or gas well after December, 0.. (b) EFFECTIVE DATE. The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December, 0. SEC. 0. REPEAL OF PERCENTAGE DEPLETION FOR OIL AND GAS WELLS. (a) IN GENERAL. Part I of subchapter I of chapter is amended by striking section A (and the table of sections of such part is amended by striking the item relating to such section). f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

42 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (b) CONFORMING AMENDMENTS. () Subsection (d) of section H is amended (A) by striking For purposes this section and inserting the following: () IN GENERAL. For purposes of this section, (B) by striking (within the meaning of section A(d)()), and (C) by adding at the end the following new paragraph: () RELATED PERSON. For purposes of this subsection, a person is a related person with respect to the taxpayer if a significant ownership interest in either the taxpayer or such person is held by the other, or if a third person has a significant ownership interest in both the taxpayer and such person. For purposes of the preceding sentence, the term significant ownership interest means (A) with respect to any corporation, percent or more in value of the outstanding stock of such corporation, (B) with respect to a partnership, percent or more interest in the profits or capital of such partnership, and f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

43 F:\M\BLUMEN\BLUMEN_0.XML 0 0 (C) with respect to an estate or trust, percent or more of the beneficial interests in such estate or trust. For purposes of determining a significant ownership interest, an interest owned by or for a corporation, partnership, trust, or estate shall be considered as owned directly both by itself and proportionately by its shareholders, partners, or beneficiaries, as the case may be.. () Section (g)()(f) is amended to read as follows: (F) DEPLETION. The allowance for depletion with respect to any property placed in service in a taxable year beginning after December,, shall be cost depletion determined under section.. () Section (a)() is amended by striking the last sentence. () Section (b)() is amended by adding at the end the following: Any reference in the preceding sentence to section A shall be treated as a reference to such section as in effect prior to the date of the enactment of the Bridge to a Clean Energy Future Act of 0.. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~

44 F:\M\BLUMEN\BLUMEN_0.XML 0 0 () Section (d) is amended by striking Except as provided in section A, in the case of and inserting In the case of. () Section (e) is amended (A) by striking or section A in paragraph (), and (B) by striking any amount described in section A(d)() in paragraph () and inserting any lease bonus, advance royalty, or other amount payable without regard to production from property. () Section 0(a) is amended (A) by inserting and at the end of paragraph ()(C), (B) by striking ; and at the end of paragraph ()(B) and inserting a period, and (C) by striking paragraph (). () Section is amended by striking subsection (a) and by redesignating subsection (b) as subsection (a). () Section (g)()(d) is amended by inserting (as in effect before the date of the enactment of the Bridge to a Clean Energy Future Act of 0) after section A. f:\vhlc\0\0..xml ( 0) October, 0 (: p.m.) VerDate Nov 00 : Oct, 0 Jkt PO Frm 000 Fmt Sfmt 0 C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\.0\GEN\C\BLUMEN~