CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.

SEC. 202. CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.(a) In General.—Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are each amended by striking “December 31, 2008” and inserting “December 31, 2009”.(b) Increase in Rate of Credit.—(1) Income tax credit.—Paragraphs (1)(A) and (2)(A) of section 40A(b) are each amended by striking “50 cents” and inserting “$1.00”.(2) Excise tax credit.—Paragraph (2) of section 6426(c) is amended to read as follows:“(2) Applicable amount.—For purposes of this subsection, the applicable amount is $1.00.”.(3) Conforming amendments.—(A) Subsection (b) of section 40A is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.(B) Paragraph (2) of section 40A(f) is amended to read as follows:“(2) Exception.—Subsection (b)(4) shall not apply with respect to renewable diesel.”.(C) Paragraphs (2) and (3) of section 40A(e) are each amended by striking “subsection (b)(5)(C)” and inserting “subsection (b)(4)(C)”.(D) Clause (ii) of section 40A(d)(3)(C) is amended by striking “subsection (b)(5)(B)” and inserting “subsection (b)(4)(B)”.(c) Uniform Treatment of Diesel Produced From Biomass.—Paragraph (3) of section 40A(f) is amended—(1) by striking “diesel fuel” and inserting “liquid fuel”,(2) by striking “using a thermal depolymerization process”, and122 STAT. 3833(3) by inserting “, or other equivalent standard approved by the Secretary” after “D396”.(d) Coproduction of Renewable Diesel With Petroleum Feedstock.—(1) In general.—Paragraph (3) of section 40A(f) is amended by adding at the end the following new sentences: “Such term does not include any fuel derived from coprocessing biomass with a feedstock which is not biomass. For purposes of this paragraph, the term ‘biomass’ has the meaning given such term by section 45K(c)(3).”.(2) Conforming amendment.—Paragraph (3) of section 40A(f) is amended by striking “(as defined in section 45K(c)(3))”.(e) Eligibility of Certain Aviation Fuel.—Subsection (f) of section 40A (relating to renewable diesel) is amended by adding at the end the following new paragraph:“(4) Certain aviation fuel.—“(A) In general.—Except as provided in the last 3 sentences of paragraph (3), 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.“(B) Application of mixture credits.—In the case of fuel which is treated as renewable diesel solely by reason of subparagraph (A), subsection (b)(1) and section 6426(c) shall be applied with respect to such fuel by treating kerosene as though it were diesel fuel.”.(f) Modification Relating to Definition of Agri-Biodiesel.—Paragraph (2) of section 40A(d) (relating to agri-biodiesel) is amended by striking “and mustard seeds” and inserting “mustard seeds, and camelina”.(g) Effective Date.—(1) In general.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2008.(2) Coproduction of renewable diesel with petroleum feedstock.—The amendment made by subsection (d) shall apply to fuel produced, and sold or used, after the date of the enactment of this Act.