Mr. Lalli, for himself, Mr. James Martin, and Mr. Garwood, submits to the Committee on Energy and Commerce, and the Committee on Appropriations and Finance, 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 encourage the development of alternative and cleaner burning fuels in order to reduce this nation's reliance on imported oil, reduce the effects of burning fossil fuels on the environment, 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. TITLE

This bill may be cited as the "Independence from Foreign Oil Act of 2004".

Section 2. FINDINGS OF CONGRESS

A. The consumption of oil in the United States of America is increasing at a rapid rate.
B. Domestic oil production is dwindling.
C. Findings A and B have led to an increase in importation of oil, especially from countries in the Middle East (Saudi Arabia, Kuwait, Yemen, Iraq, etc.), many of which are supporters of terrorism.
D. Finding C has led to the United States having what many experts call a 'dependence' on these countries, and an inability to take any sort of hard line approach against these countries. (For example, an embargo against Saudi Arabia would be devastating to the US economy).
E. The burning of these fossil fuels is harmful to our environment, at the very least increasing the amount of smog, smoke, and general pollution present in the atmosphere. Some experts even suggest that the burning of fossil fuels is leading to a 'global warming' scenario, though this bill does not officially acknowledge the legitimacy of these claims.
F. The supply of oil in the world is limited, and the scientific consensus is that in a maximum of 40 years, the world's oil demand will begin to outstrip supply.
G. These findings suggest there is a need to curtail the nation's use of oil, and to a lesser extent coal and natural gas, and to implement measures to reduce the pollution resultant from the usage of these fuels. Known, practical methods to achieve this are:

1. Encouragement of the Wind Farm industry
2. Encouragement of Clean Coal technology
3. Encouragement of Hybrid car technology
4. Closing the Light Truck loophole

Section 3. DEFINITIONS

For the purposes of this Act,
(1) Renewable energies means all forms of electricity generation classified as "Renewables" by the Energy Information Administration in addition to hydroelectric power.
(2) SECRETARY- The term `Secretary' means the Secretary of Energy.

TITLE I- FINANCIAL INCENTIVES
Section 101. AMENDMENTS to the Energy Policy Act of 1992
(a) Amendments - Section 1212 of the Energy Policy Act of 1992 is amended-

(1) in subsection (e)(1)-

(A) by striking " the amount of such payment shall be 1.5 cents per kilowatt hour" and inserting in lieu thereof " the amount of such payment shall be 2.4 cents per kilowatt hour"; and

(2) in subsection (e)(2)(f)-
(B) by striking "No payment may be made under this section to any facility after the expiration of the 20-fiscal year period beginning with the first full fiscal year occurring after the enactment of this section, and no payment may be made under this section to any facility after a payment has been made with respect to such facility for a 10-fiscal year period." and inserting in lieu thereof "Starting when renewable energies generate 20% of the total amount of energy generated in the United States, as determined by the Energy Information Administration, the payment outlined in subsection (e)(1) will be reduced by .2 cents per kilowatt hour each year for the next 12 years until the payment is 1 cent per kilowatt hour. Starting when renewable energies generate 50% of the total amount of energy generated in the United States, the payment outlined in subsection (e)(1) will be reduced by .2 cents per kilowatt hour each year for the next 5 fiscal years, after which, the payment will be abolished."

Section 102. DEDUCTION FOR CLEAN-FUEL VEHICLES
(a) Section 179A of Part VI of subchapter B of chapter 1 of the 1986 tax code (relating to itemized deductions for individuals and corporations) is amended:

(1) in subsection (B)(1)(A)(i)

(A) by striking "$2000" and inserting in lieu thereof "$5000"

Section 103- APPROPRIATIONS FOR ADVERTISEMENT
(a) This congress appropriates $10,000,000 to advertise the existence of the deduction outlined in subsection (B)(1)(A)(i) of Section 179A of Part VI of subchapter B of chapter 1 of the 1986 tax code to the public.
(B) The method of advertisement is at the discretion of the Department of Energy.

TITLE II- INCREASED AVERAGE FUEL ECONOMY STANDARD FOR LIGHT TRUCKS.

Section 201- DEFINITION OF LIGHT TRUCK- Section 32901(a) of title 49, United States Code, is amended by adding at the end the following new paragraph:

`(17) `light truck' has the meaning given that term in regulations prescribed by the Secretary of Transportation in the administration of this chapter.

Section 202- REQUIREMENT FOR INCREASED STANDARD- Section 32902(a) of title 49, United States Code, is amended--

(a) by inserting `(1)' after `AUTOMOBILES- ';

(B) by inserting before the period at the end of the third sentence the following: `, subject to paragraph (2)'; and

� by adding at the end the following new paragraph:

`(2) The average fuel economy standard for light trucks manufactured by a manufacturer may not be less than 27.5 miles per gallon, except that the average fuel economy standard for--

`(A) light trucks manufactured by a manufacturer in a model year after model year 2005 and before model year 2008 may not be less than 20.0 miles per gallon; and

`(B) light trucks manufactured by a manufacturer in a model year after model year 2008 and before model year 2011 may not be less than 22.5 miles per gallon; and

`� light trucks manufactured by a manufacturer in a model year after model year 2011 and before model year 2014 may not be less than 25 miles per gallon.'.

Section 203- APPLICABILITY
(a) Paragraph (2) of section 32902(a) of such title does not apply with respect to light trucks manufactured before model year 2005.

TITLE III- CLEAN COAL POWER INITIATIVE

Section 301- PROJECT CRITERIA.

(a) IN GENERAL- The Secretary shall provide funding under this title for coal energy generation projects that advance efficiency, environmental performance, and cost competitiveness well beyond the level of technologies that on a full scale are in operation or have been demonstrated as of the date of enactment of this Act.

(B) TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE-

(1) GASIFICATION-

(A) TECHNOLOGIES- In allocating the funds made available under section 204(a), the Secretary shall ensure that up to 80 percent of the funds are used for coal -based gasification technologies, including gasification combined cycle, gasification fuel cells, gasification coproduction, and hybrid gasification/combustion projects.

(B) TECHNICAL MILESTONES- The Secretary shall set technical milestones specifying emissions levels for projects funded under this paragraph. The milestones shall be designed to increasingly restrict emissions levels through the life of the program. The milestones shall be designed to achieve by 2017 coal gasification projects able--

(i) to remove 99 percent of sulfur dioxide;

(ii) to emit no more than .05 lb of NOX per million Btu;

(iii) to achieve substantial reductions in mercury emissions; and

(iv) to achieve a thermal efficiency of--

(I) 60 percent for coal of more than 9,000 Btu;

(II) 59 percent for coal of 7,000 to 9,000 Btu; and

(III) 50 percent for coal of less than 7,000 Btu.

(2) OTHER PROJECTS- For projects not described in paragraph (1), the Secretary shall set technical milestones specifying emissions levels. The milestones shall be designed to increasingly restrict emissions levels through the life of the program. The milestones shall be designed to achieve by 2009 projects able--

(A) to remove 97 percent of sulfur dioxide;

(B) to emit no more than .08 lb of NOX per million Btu;

� to achieve substantial reductions in mercury emissions; and

(D) except as provided in paragraph (4), to achieve a thermal efficiency of--

(i) 45 percent for coal of more than 9,000 Btu;

(ii) 44 percent for coal of 7,000 to 9,000 Btu; and

(iii) 40 percent for coal of less than 7,000 Btu.

(3) CONSULTATION- Before setting the technical milestones under paragraphs (1)(B) and (2), the Secretary shall consult with the Administrator of the Environmental Protection Agency and interested entities, including coal producers, industries using coal , organizations to promote coal or advanced coal technologies, environmental organizations, and organizations representing workers.

(5) PERMITTED USES- In allocating amounts made available under this title, the Secretary may fund projects that include as part of the project the separation and capture of carbon dioxide.

� FINANCIAL CRITERIA- The Secretary shall not provide a funding award under this title unless the recipient has documented to the satisfaction of the Secretary that--

(1) the award recipient is financially viable without the receipt of additional Federal funding;

(2) the recipient will provide sufficient information to the Secretary for the Secretary to ensure
that the award funds are spent efficiently and effectively; and


(3) a market exists for the technology , as evidenced by statements of interest in writing from potential purchasers of the technology .

(d) FINANCIAL ASSISTANCE- The Secretary shall provide financial assistance to projects that meet the requirements of subsections (a), (B), and � and are likely to--

(1) not greatly increase the costs in the utilization of coal to generate useful forms of energy;

(2) demonstrate methods and equipment that are applicable to 10 percent of the electricity generating facilities that use coal as the primary feedstock as of the date of the enactment of this Act.

Section 302- REPORT.

Not later than 1 year after the date of the enactment of this Act, and once every 2 years thereafter through 2012, the Secretary, in consultation with other appropriate Federal agencies, shall transmit to the Congress a report describing--

(1) the technical milestones set forth in section 201 and how those milestones ensure progress toward meeting the requirements of subsections (B)(1)(B) and (B)(2) of section 201; and

(2) the status of projects funded under this title.

Section 303- CLEAN COAL CENTERS OF EXCELLENCE.

As part of the program authorized under this title, the Secretary shall award competitive, merit-based grants to universities for the establishment of Centers of Excellence for Energy Systems of the Future. The Secretary shall provide grants to universities that can show the greatest potential for advancing new clean coal technologies.

Section 304- AUTHORIZATION OF APPROPRIATIONS.

(a) CLEAN COAL POWER INITIATIVE- Except as provided in subsection (B), there are authorized to be appropriated to the Secretary to carry out the activities authorized by this title $200,000,000 for each of the fiscal years 2005 through 2013, to remain available until expended.

(B) LIMIT ON USE OF FUNDS-

(1) OBLIGATION OF FUNDS- The Secretary is authorized to obligate the use of funds under this section prior to the fiscal year such funds are authorized for under subsection (a), subject to appropriations.

(2) REPORT- The Secretary shall transmit to the Congress a report describing the proposed use of funds which includes--

(A) a detailed assessment of whether the aggregate funding levels provided under subsection (a) are the appropriate funding levels for this title;

(B) a detailed description of how proposals will be solicited and evaluated, including a list of all activities expected to be undertaken.

Aye

aye

AYE

Aye

aye

Aye

Present

Aye

Aye.

aye

disregard my vote....not eligible

Aye

HR 1.232 The Independence from Foreign Oil Act passes with a vote of 9-0-1.