SA 3742. Mrs. LINCOLN submitted an amendment intended to be proposed to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes; which was ordered to lie on the table; as follows:

On page 1491, between lines 11 and 12, insert the following:
SEC. __. ENERGY SAVINGS CERTIFICATION REQUIREMENT WITH RESPECT TO CREDIT FOR ETHANOL FUELS.
(a) Income Tax Credit.--Paragraph (2) of section 40(h) (relating to reduced credit amount for ethanol blenders) is amended--
(1) by striking ``For purposes of paragraph (1), the blender amount'' and inserting ``For purposes of paragraph (1)--
``(A) IN GENERAL.--Except as provided in subparagraph (B), the blender amount'', and
(2) by adding at the end the following new subparagraph:
``(B) SPECIAL RULE WITH RESPECT TO UNCERTIFIED ETHANOL.--
``(i) IN GENERAL.--In the case of any alcohol or alcohol fuel mixture which contains ethanol that does not meet the requirements of clause (ii), the blender amount and the low-proof blender amount shall be zero.
``(ii) CERTIFICATION OF NET ENERGY SAVINGS FOR ETHANOL.--Ethanol meets the requirements of this paragraph if such ethanol has been produced at a facility at which the process for the production of ethanol is certified by the Environmental Protection Agency as resulting in a net energy savings.''.
(b) Excise Tax Credit.--
(1) IN GENERAL.--Paragraph (2) of section 6426(b) is amended to read as follows:
``(2) APPLICABLE AMOUNT.--For purposes of this subsection, the applicable amount is--
``(A) 60 cents in the case of an alcohol fuel mixture in which none of the alcohol is ethanol, and
``(B) in the case of an alcohol fuel mixture which contains ethanol--
``(i) 51 cents if all ethanol used in the alcohol fuel mixture meets the requirement of paragraph (5), and
``(ii) zero in any other case.''.
(2) CERTIFICATION.--Subsection (b) of section 6426 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:
``(5) CERTIFICATION OF NET ENERGY SAVINGS FOR ETHANOL.--Ethanol meets the requirements of this paragraph if such ethanol has been produced at a facility at which the process for the production of ethanol is certified by the Environmental Protection Agency as resulting in a net energy savings.''.
(c) Effective Date.--The amendments made by this section shall apply to any sale or use after the date of the enactment of this Act.


(As printed in the Congressional Record for the Senate on Nov 15, 2007.)