American-Made Energy Freedom Act of 2006 - Amends the Internal Revenue Code to: (1) increase tax credits for cellulosic biomass ethanol; (2) extend the energy credit for solar and fuel cell property; (3) extend and modify the credits for residential energy efficient property and for certain liquid fuel derived from coal; and (4) establish the American-Made Energy Trust Fund to implement designated sections of the Energy Policy Act of 2005, including climate change technology deployment.
Directs the Secretary of the Interior to undertake a competitive oil and gas leasing program that will result in an environmentally sound program for the exploration, development, and production of the oil and gas resources of the Coastal Plain of Alaska.
Amends the Alaska National Interest Lands Conservation Act of 1980 to repeal the prohibition against production of oil and gas from the Arctic National Wildlife Refuge (ANWR) and any leasing or development leading to such production.
Prescribes procedures for: (1) lease sales; (2) grants of leases; and (3) Coastal Plain environmental protection; (4) rights-of-way and easements for the transportation of oil and gas across the Coastal Plain.
Directs the Secretary to convey: (1) the surface estate of specified lands to the Kaktovik Inupiat Corporation; and (2) the remaining subsurface estate of specified lands to the Arctic Slope Regional Corporation.
Establishes the Coastal Plain Local Government Impact Aid Assistance Fund to provide financial assistance to specified entities directly impacted by oil and gas production and exploration on the Coastal Plain.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5890 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5890
To establish the American-Made Energy Trust Fund, to increase the tax
credits for cellulosic biomass ethanol, to extend tax incentives for
solar and fuel cell property, to promote coal-to-liquid fuel
activities, to direct the Secretary of the Interior to establish and
implement a competitive oil and gas leasing program for the Coastal
Plain of Alaska, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 26, 2006
Mr. Nunes (for himself, Mr. Cardoza, Mr. Shimkus, Mr. Costa, Mr. Pombo,
Mr. Rehberg, Mr. Lewis of Kentucky, Mr. Kingston, Mr. English of
Pennsylvania, Mr. Pickering, Mr. Hall, Mr. Barton of Texas, Mr.
Whitfield, Mr. Cuellar, Mr. Davis of Tennessee, Mr. Ross, Mr. Cramer,
Mr. Boren, Mrs. Capito, Mr. Melancon, Mr. Boozman, Mr. Peterson of
Minnesota, and Mr. Murphy) introduced the following bill; which was
referred to the Committee on Ways and Means, and in addition to the
Committees on Resources, Energy and Commerce, and Science, 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 establish the American-Made Energy Trust Fund, to increase the tax
credits for cellulosic biomass ethanol, to extend tax incentives for
solar and fuel cell property, to promote coal-to-liquid fuel
activities, to direct the Secretary of the Interior to establish and
implement a competitive oil and gas leasing program for the Coastal
Plain of Alaska, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American-Made
Energy Freedom Act of 2006''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--TAX INCENTIVES FOR CELLULOSIC BIOMASS ETHANOL, SOLAR AND FUEL
CELL PROPERTY, AND CERTAIN LIQUID FUEL DERIVED FROM COAL
Sec. 101. Increased tax credits for cellulosic biomass ethanol.
Sec. 102. Extension of energy credit for solar and fuel cell property.
Sec. 103. Extension and modification of credit for residential energy
efficient property.
Sec. 104. Extension and modification of excise tax credits for certain
liquid fuel derived from coal.
TITLE II--AMERICAN-MADE ENERGY TRUST FUND
Sec. 201. Establishment of American-Made Energy Trust Fund.
TITLE III--DEVELOPMENT OF OIL AND GAS RESOURCES OF THE COASTAL PLAIN OF
ALASKA
Sec. 301. Definitions.
Sec. 302. Leasing program for lands within the Coastal Plain.
Sec. 303. Lease sales.
Sec. 304. Grant of leases by the Secretary.
Sec. 305. Lease terms and conditions.
Sec. 306. Coastal plain environmental protection.
Sec. 307. Expedited judicial review.
Sec. 308. Federal and State distribution of revenues.
Sec. 309. Rights-of-way across the Coastal Plain.
Sec. 310. Conveyance.
Sec. 311. Local government impact aid and community service assistance.
TITLE I--TAX INCENTIVES FOR CELLULOSIC BIOMASS ETHANOL, SOLAR AND FUEL
CELL PROPERTY, AND CERTAIN LIQUID FUEL DERIVED FROM COAL
SEC. 101. INCREASED TAX CREDITS FOR CELLULOSIC BIOMASS ETHANOL.
(a) Income Tax Credit.--
(1) In general.--Section 40 of the Internal Revenue Code of
1986 (relating to alcohol used as fuel) is amended by adding at
the end the following new subsection:
``(i) Increased Credit for Cellulosic Biomass Ethanol.--
``(1) In general.--In the case of cellulosic biomass
ethanol--
``(A) subsection (h) shall not apply,
``(B) if such ethanol has a proof of at least 150
but less than 190--
``(i) subsection (b)(3) shall not apply,
and
``(ii) subsections (b)(1)(A), (b)(2)(A),
(d)(3)(A), and (d)(3)(B) shall each be applied
by substituting `the low-proof cellulosic
ethanol amount' for `60 cents', and
``(C) if such alcohol has a proof of at least 190,
subsections (b)(1)(A), (b)(2)(A), (d)(3)(A), and
(d)(3)(B) shall each be applied by substituting `the
cellulosic ethanol amount' for `60 cents'.
``(2) Limitations.--
``(A) Overall dollar limitation.--Paragraph (1)
shall not apply to any cellulosic biomass ethanol which
is sold or used after the date on which the Secretary
certifies that, in the estimation of the Secretary,
more than $1,250,000,000 has been allowed, in the
aggregate, as a credit under this section with respect
to cellulosic biomass ethanol taken into account under
this subsection and subsection (c).
``(B) Per taxpayer maximum.--
``(i) In general.--With respect to any
taxpayer, paragraph (1) shall only apply to the
first 25,000,000 gallons of cellulosic biomass
ethanol sold or used by the taxpayer during any
calendar year.
``(ii) Termination of taxpayer maximum.--
Clause (i) shall not apply with respect to any
calendar year after the first calendar year
with respect to which the Secretary certifies
that, in the estimation of the Secretary, at
least 10 taxpayers sell or use cellulosic
biomass ethanol to which paragraph (1) applies.
``(C) Per taxpayer minimum.--With respect to any
taxpayer, paragraph (1) shall not apply to any
cellulosic biomass ethanol sold or used by the taxpayer
during any calendar year unless the aggregate amount of
cellulosic biomass ethanol sold or used by such
taxpayer during such calendar year exceeds 5,000,000
gallons.
``(3) Cellulosic ethanol amount; low-proof cellulosic
ethanol amount.--
``(A) In general.--The terms `cellulosic ethanol
amount' and `low-proof cellulosic ethanol amount' mean
$1.25 and $1.10, respectively.
``(B) Phase-out based on price of oil.--
``(i) In general.--The $1.25 and $1.10
amounts contained in subparagraph (A) shall
each be reduced (but not below $0.51 and
$0.3778, respectively) by an amount which bears
the same ratio to the amount so contained in
subparagraph (A) (as so increased) as--
``(I) the amount (if any) by which
the price of a barrel of crude oil
exceeds $40, bears to
``(II) $71.
``(ii) Determination by secretary.--The
price of a barrel of crude oil shall be
determined periodically by the Secretary under
such methodology as the Secretary determines
appropriate. The price determined under this
clause and the reduction required by clause (i)
shall apply with respect to cellulosic biomass
ethanol sold or used during the period with
respect to which such determination relates.
``(C) Inflation adjustment of phase-out based on
price of oil.--In the case of any period beginning in a
calendar year after 2007, the dollar amounts contained
in subclauses (I) and (II) of subparagraph (B)(i) shall
be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2006'
for `calendar year 1992' in subparagraph (B)
thereof.
Any increase determined under the preceding sentence
shall be rounded to the nearest multiple of $1.
``(4) Cellulosic biomass ethanol.--The term `cellulosic
biomass ethanol' means ethanol produced by enzymatic hydrolysis
of any lignocellulosic or hemicellulosic feedstock that is
available on a renewable or recurring basis, including
agricultural residues, agricultural fibers, dedicated energy
crops, grasses, plants, and wood and wood residues.
``(5) Application of aggregation, etc., rules.--Rules
similar to the rules of paragraphs (2), (3), and (4) of
subsection (g) shall apply for purposes of the limitations
under subparagraphs (B) and (C) of paragraph (2).''.
(2) Termination.--Subsection (e) of section 40 of such Code
(relating to termination) is amended--
(A) by redesignating paragraph (2) as paragraph
(3),
(B) by inserting after paragraph (1) the following
new paragraph:
``(2) Cellulosic biomass ethanol.--In the case of
cellulosic biomass ethanol with respect to which subsection
(i)(1) applies--
``(A) paragraph (1) shall not apply, and
``(B) this section shall not apply to any sale or
use of such ethanol for any period after the earlier of
the date on which the Secretary makes the certification
described in subsection (i)(2)(A) or December 31,
2023.'', and
(C) by inserting ``or (2)'' after ``paragraph (1)''
in paragraph (3) (as redesignated by this paragraph).
(b) Excise Tax Credit.--
(1) In general.--Paragraph (2) of section 6426(b) of the
Internal Revenue Code of 1986 (relating to applicable amount)
is amended--
(A) by adding at the end the following new
subparagraph:
``(C) Cellulosic biomass ethanol.--In the case of
cellulosic biomass ethanol to which section 40(i)(1)
applies or to which such section would apply but for
subsections (c) and (e) of section 40, the applicable
amount is the cellulosic ethanol amount (as defined in
section 40(i)(3)).'', and
(B) by striking ``subparagraph (B)'' in
subparagraph (A) and inserting ``subparagraphs (B) or
(C)''.
(2) Termination.--Paragraph (5) of section 6426(b) of such
Code (relating to termination) is amended to read as follows:
``(5) Termination.--
``(A) In general.--Except as provided in
subparagraph (B), this subsection shall not apply to
any sale, use, or removal for any period after December
31, 2010.
``(B) Cellulosic biomass ethanol.--In the case of
any cellulosic biomass ethanol with respect to which
paragraph (2)(C) applies--
``(i) subparagraph (A) shall not apply, and
``(ii) this subsection shall not apply to
any sale or use of such ethanol for any period
after the earlier of the date on which the
Secretary makes the certification described in
section 40(i)(2)(A) or December 31, 2023.''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after the date of the enactment of this Act.
SEC. 102. EXTENSION OF ENERGY CREDIT FOR SOLAR AND FUEL CELL PROPERTY.
(a) 30 Percent Credit for Solar.--Subclause (II) of section
48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by
striking ``2008'' and inserting ``2013''.
(b) Qualified Fuel Cell Property.--
(1) In general.--Subparagraph (E) of section 48(c)(1) of
such Code is amended by striking ``2007'' and inserting
``2012''.
(2) Termination of special rule.--Subparagraph (D) of
section 48(c)(1) of such Code is amended by inserting ``placed
in service before January 1, 2008, and'' after ``qualified fuel
cell property which is''.
(c) Fiber-Optic Distributed Sunlight.--Clause (ii) of section
48(a)(3)(A) of such Code is amended by striking ``2008'' and inserting
``2013''.
(d) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 103. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY
EFFICIENT PROPERTY.
(a) In General.--Subsection (g) of section 25D of the Internal
Revenue Code of 1986 is amended by striking ``2007'' and inserting
``2012''.
(b) Modification of Maximum Credit for Qualified Solar Electricity
Property.--Subparagraph (A) of section 25D(b)(1) of such Code is
amended to read as follows:
``(A) $2,000 with respect to each half kilowatt of
capacity of property for which qualified solar
electricity property expenditures are made,''.
(c) Conforming Amendments.--
(1) Paragraph (1) of section 25D(a) of such Code is amended
by striking ``photovoltaic'' and inserting ``solar
electricity''.
(2) Paragraph (2) of section 25D(d) of such Code is amended
in the text and in the heading by striking ``photovoltaic'' and
inserting ``solar electricity''.
(3) Paragraph (4)(A)(i) of section 25D(e) of such Code is
amended by striking ``photovoltaic'' and inserting ``solar
electricity''.
(d) Effective Dates.--
(1) In general.--The amendment made by subsection (a) shall
take effect on the date of the enactment of this Act.
(2) Increase in credit for solar electricity property.--The
amendments made by subsections (b) and (c) shall apply to
taxable years beginning after December 31, 2005.
(3) Hold harmless transition rule.--In the case of any
taxable year beginning after December 31, 2005, and before the
date of the enactment of this Act, the taxpayer may elect (at
such time and in such form and manner as the Secretary of the
Treasury may determine) to apply the limitation under section
25D(b)(1)(A) of the Internal Revenue Code of 1986 which was in
effect immediately before the date of the enactment of this Act
for purposes of determining the credit under section 25D of
such Code for such taxable year in lieu of such limitation as
otherwise in effect for such year.
SEC. 104. EXTENSION AND MODIFICATION OF EXCISE TAX CREDITS FOR CERTAIN
LIQUID FUEL DERIVED FROM COAL.
(a) Modification of Excise Tax Credits.--Section 6426 of the
Internal Revenue Code of 1986 is amended by redesignating subsection
(g) as subsection (h) and by inserting after subsection (f) the
following new subsection:
``(g) Special Rules for Liquid Fuel Derived From Coal.--
``(1) Limitations.--
``(A) Overall dollar limitation.--No liquid coal
fuel shall be taken into account in determining the
alternative fuel credit under subsection (d) or the
alternative fuel mixture credit under subsection (e) if
such fuel is sold or used after the date on which the
Secretary certifies that, in the estimation of the
Secretary, more than $1,500,000,000 has been allowed,
in the aggregate, as a credit under this section with
respect to liquid coal fuel taken into account under
subsections (d) and (e).
``(B) Per taxpayer maximum.--
``(i) In general.--With respect to any
taxpayer, only the first 150,000,000 gallons of
liquid coal fuel which is sold or used by the
taxpayer during any calendar year may be taken
into account under subsection (d) or (e).
``(ii) Termination of taxpayer maximum.--
Clause (i) shall not apply with respect to any
calendar year after the first calendar year
with respect to which the Secretary certifies
that, in the estimation of the Secretary, at
least 5 taxpayers sell or use liquid coal fuel
which is taken into account under subsection
(d) or (e).
``(C) Per taxpayer minimum.--With respect to any
taxpayer, liquid coal fuel sold or used by the taxpayer
during any calendar year shall not be taken into
account in determining the alternative fuel credit
under subsection (d) or the alternative fuel mixture
credit under subsection (e) unless the aggregate amount
of liquid coal fuel sold or used by such taxpayer
during such calendar year exceeds 15,000,000 gallons.
``(2) Adjustment of credit amount.--Solely for purposes of
determining that portion of the alternative fuel credit under
subsection (d) and the alternative fuel mixture credit under
subsection (e) which is allowed with respect to liquid coal
fuel--
``(A) Phase-out based on price of oil.--
``(i) In general.--The 50 cent amounts
contained in subsections (d)(1) and (e)(1)
shall each be reduced (but not below zero) by
an amount which bears the same ratio to the
amount so contained in subsection (d)(1) or
(e)(1) (as so increased) as--
``(I) the amount (if any) by which
the price of a barrel of crude oil
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on Resources, Energy and Commerce, and Science, 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.
Referred to the Committee on Ways and Means, and in addition to the Committees on Resources, Energy and Commerce, and Science, 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.
Referred to the Committee on Ways and Means, and in addition to the Committees on Resources, Energy and Commerce, and Science, 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.
Referred to the Committee on Ways and Means, and in addition to the Committees on Resources, Energy and Commerce, and Science, 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.
Referred to the Committee on Ways and Means, and in addition to the Committees on Resources, Energy and Commerce, and Science, 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.
Referred to the Subcommittee on Energy and Air Quality, for a period to be subsequently determined by the Chairman .
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Executive Comment Requested from Interior.
Referred to the Subcommittee on Energy.