[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3601 Introduced in Senate (IS)]
111th CONGRESS
2d Session
S. 3601
To promote the oil independence of the United States, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 15, 2010
Mr. Merkley (for himself, Mr. Carper, Mr. Udall of New Mexico, and Mr.
Bennet) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To promote the oil independence of the United States, 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 ``Oil Independence
for a Stronger America Act of 2010''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--NATIONAL ENERGY SECURITY PROGRAM
Sec. 101. National energy security program.
Sec. 102. National Energy Security Council.
TITLE II--VEHICLE FUEL ECONOMY
Sec. 201. Vehicle fuel economy.
TITLE III--ELECTRIC VEHICLE DEPLOYMENT
Sec. 301. Findings.
Sec. 302. Definitions.
Sec. 303. National Electric Drive Vehicle Deployment Program.
Sec. 304. Targeted Electric Drive Vehicle Deployment Communities
Program.
Sec. 305. Modifications to tax credits.
Sec. 306. Qualified plug-in electric drive motor vehicle refueling
property bonds.
Sec. 307. Utility planning for plug-in electric drive vehicles.
Sec. 308. Federal fleets.
Sec. 309. Advanced batteries for tomorrow prize.
Sec. 310. Research and development program.
Sec. 311. Study on the supply of raw materials.
Sec. 312. Plug-in Electric Drive Vehicle Technical Advisory Committee.
Sec. 313. Plug-in Electric Drive Vehicle Interagency Task Force.
Sec. 314. Prohibition on disposing of advanced batteries in landfills.
Sec. 315. Loan guarantees for advanced battery purchases for use in
stationary applications.
Sec. 316. Model updating building codes, permitting and inspection
processes, and zoning or parking rules.
Sec. 317. Workforce training.
Sec. 318. Credit for grid-interactive plug-in vehicles.
TITLE IV--TRANSPORTATION INFRASTRUCTURE
Subtitle A--Transportation Options for Families and Businesses
Sec. 401. Oil savings and greenhouse gas emission reductions through
transportation efficiency.
Sec. 402. Investing in transportation greenhouse gas emission reduction
programs.
Sec. 403. Commuter benefits equity.
Subtitle B--Freight Transportation
Sec. 411. Freight transportation goal and plan.
Sec. 412. Freight rail congestion grants.
Sec. 413. Rail electrification study.
TITLE V--ALTERNATIVE TRANSPORTATION FUELS
Subtitle A--Advanced Biofuels
Sec. 501. Allowance of investment tax credit for advanced biofuel
facilities.
Sec. 502. Grants for advanced biofuel facility property.
Sec. 503. Inclusion of algae-based biofuel in definition of cellulosic
biofuel.
Sec. 504. Extension of cellulosic biofuel producer credit.
Sec. 505. Extension of special allowance for cellulosic biofuel plant
property.
Sec. 506. Extension of incentives for biodiesel and renewable diesel.
Sec. 507. Extension of alcohol fuels tax credits.
Subtitle B--Powering Vehicles With Natural Gas
Sec. 511. Credit for qualified natural gas motor vehicles.
Sec. 512. Natural gas vehicle bonds.
Sec. 513. Incentives for manufacturing facilities producing vehicles
fueled by compressed or liquified natural
gas.
Sec. 514. Study of increasing natural gas and liquefied petroleum gas
vehicles in Federal fleet.
TITLE VI--HEATING OIL AND PROPANE CONSERVATION
Sec. 601. Energy efficiency improvements for heating oil, propane, and
kerosene use in homes and commercial
buildings.
Sec. 602. Renewable biomass thermal energy for commercial buildings.
SEC. 2. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Council.--The term ``Council'' means the National
Energy Security Council established by section 102.
(3) National oil independence goal.--The term ``national
oil independence goal'' means the national oil independence
goal established under section 101(c).
(4) National oil independence plan.--The term ``national
oil independence plan'' means the national oil independence
plan established under section 101(d).
TITLE I--NATIONAL ENERGY SECURITY PROGRAM
SEC. 101. NATIONAL ENERGY SECURITY PROGRAM.
(a) Establishment.--There is established in the Executive Office of
the President the national energy security program.
(b) Mission.--The mission of the national energy security program
shall be to coordinate the activities and policies of the Federal
Government to ensure, to the maximum extent practicable, that the
United States meets--
(1) goals for reducing oil dependence, oil imports, and oil
consumption; and
(2) other energy policy goals, including goals for--
(A) enhancing the competitiveness of the United
States in clean energy technology;
(B) strengthening clean energy technology
manufacturing in the United States;
(C) reducing greenhouse gas emissions; and
(D) reducing other environmental impacts.
(c) National Oil Independence Goal.--
(1) In general.--Subject to paragraph (2), it is the goal
of the United States to reduce oil consumption by 8,000,000
barrels per day by calendar year 2030 (as compared to the rate
of oil consumption projected for calendar year 2030 as of the
date of enactment of this Act).
(2) Adjustments.--The President, in consultation with the
Council--
(A) may adjust the goal established under paragraph
(1); and
(B) shall ensure that the goal represents the
maximum practicable oil savings achievable, taking into
account other benefits of reducing oil consumption
(including economic, security, and environmental
benefits) and costs or other economic effects.
(d) National Oil Independence Plan.--
(1) In general.--The President, in coordination with the
Council and the Director of the Office of Management and
Budget, shall--
(A) develop a national oil independence plan that
describes programs and activities that will be
implemented to meet or exceed the national oil
independence goal;
(B) submit the national oil independence plan to
Congress not later than 180 days after the date of
enactment of this Act; and
(C) submit an updated national oil independence
plan to Congress every 2 years thereafter.
(2) Review of federal policies, programs, and
authorities.--Not later than 120 days after the date of
enactment of this Act, the President, in coordination with the
Council and the Director of the Office of Management and
Budget, shall review existing programs and authorities of the
Federal Government and other applicable policies (including tax
policies) to determine--
(A)(i) which programs, authorities, or policies
could be used to accelerate reductions in oil
dependence; and
(ii) the manner by which the programs, authorities,
or policies could be used to maximize reductions in oil
dependence; and
(B)(i) which programs, authorities, or policies
have the effect of increasing oil consumption and oil
dependence or otherwise create barriers to reducing oil
consumption and oil dependence; and
(ii) the manner by which the programs, authorities,
or policies--
(I) have the effect of encouraging oil
consumption or oil dependence or otherwise
create barriers to reducing oil consumption and
oil dependence; and
(II) could be modified or eliminated to
help meet the goal of reducing oil consumption
and oil dependence.
(3) Contents.--At a minimum, the national oil independence
plan shall--
(A) cover implementation of the measures and
programs established by this Act;
(B) describe the results and conclusions of the
review conducted under paragraph (2);
(C) as appropriate, include--
(i) the use of programs, authorities, or
policies described in paragraph (2)(A); and
(ii) if existing authority allows,
proposals to modify or eliminate programs,
authorities, or policies described in paragraph
(2)(B);
(D) include recommendations to Congress for
legislation that would further--
(i) promote reductions in oil consumption
and oil dependence;
(ii) reduce barriers to reducing oil
consumption and oil dependence; and
(iii) help meet the energy policy goals of
the United States;
(E) include a timetable for achieving the national
oil independence goal, including interim targets on not
less than a biennial basis;
(F) a plan for coordinating actions across the
Federal Government, including measures established
under this Act, to ensure, to the maximum extent
practicable, that the national oil independence goal is
met; and
(G) a timeline for issuing rules, Executive orders,
or other policy instruments that will implement the
recommendations contained the national oil independence
plan.
(e) Annual Requests to Congress.--When submitting annual budget
requests to Congress, the President shall include--
(1) requests for sufficient funding for such programs as
are necessary to meet the national oil independence goal;
(2) requests for additional authority or changes to
existing laws or authorities to implement the national oil
independence plan; and
(3) a report on the oil consumption and imports of the
United States relative to the national oil independence goal
and the interim targets and timelines established in the
national oil independence plan.
SEC. 102. NATIONAL ENERGY SECURITY COUNCIL.
(a) Establishment.--There is established in the Executive Office of
the President a National Energy Security Council.
(b) Mission.--The mission of the Council shall be to assist and
advise the President in--
(1) setting and meeting the national oil independence goal;
(2) developing the national oil independence plan and the
requests described in section 101(e);
(3) coordinating the policies, programs, and activities of
the Federal program in order to implement the national oil
independence plan and meet the national oil independence goal;
and
(4) ensuring that policy decisions and programs are
consistent with the energy policy goals of the United States.
(c) Membership.--The membership of the Council shall consist of--
(1) the Secretary of Energy;
(2) the Secretary of Transportation;
(3) the Administrator;
(4) the Director of the National Economic Council;
(5) the Secretary of Commerce;
(6) the Secretary of Labor;
(7) the Secretary of Agriculture;
(8) the Chair of the Council on Environmental Quality;
(9) the Secretary of Housing and Urban Development;
(10) the Secretary of State;
(11) the Director of the Office of Management and Budget;
and
(12) the Director of the Office of Science and Technology
Policy.
(d) Chair.--The President shall act as Chair of the Council.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $8,000,000 for each fiscal year.
TITLE II--VEHICLE FUEL ECONOMY
SEC. 201. VEHICLE FUEL ECONOMY.
(a) Light-Duty Vehicles.--The Secretary of Transportation, using
the authority provided under section 32902 of title 49, United States
Code, and the Administrator, using the authority provided under the
Clean Air Act (42 U.S.C. 7401 et seq.), shall--
(1) not later than 1 year after the date of enactment of
this Act, promulgate joint regulations establishing corporate
average fuel economy standards and greenhouse gas emissions
limitations for light-duty vehicles manufactured for each of
model years 2017 through 2030 to maximize reductions in oil
consumption and greenhouse gas emissions consistent with the
criteria under those authorities; and
(2) every 3 years thereafter, update the standards and
limitations established under paragraph (1) for model years
that are not less than 4 years after the date of the update.
(b) Medium- and Heavy-Duty Vehicles.--The Secretary of
Transportation, using the authority provided under section 32902 of
title 49, United States Code, and the Administrator, using the
authority provided under the Clean Air Act (42 U.S.C. 7401 et seq.),
shall--
(1) not later than 18 months after the date of enactment of
this Act, promulgate joint regulations establishing corporate
average fuel economy standards and greenhouse gas emissions
limitations for medium- and heavy-duty vehicles manufactured
for each of model years 2017 through 2030 to maximize
reductions in oil consumption and greenhouse gas emissions
consistent with the criteria under those authorities; and
(2) every 3 years thereafter, update the standards and
limitations established under paragraph (1) for model years
that are not less than 4 years after the date of the update.
(c) Nonroad Vehicles.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Transportation, using
the authority provided under section 32902 of title 49, United
States Code, and the Administrator, using the authority
provided under the Clean Air Act (42 U.S.C. 7401 et seq.),
shall promulgate joint regulations establishing fuel economy
standards and greenhouse gas emissions limitations for nonroad
vehicles to maximize reductions in oil consumption and
greenhouse gas emissions.
(2) Inclusions.--The nonroad vehicles described in
paragraph (1) shall include, at a minimum--
(A) airplanes and aviation vehicles;
(B) passenger and freight rail engines;
(C) boat and other marine engines; and
(D) off-highway construction vehicles.
(3) Effective date.--The standards and limitations
established under paragraph (1) shall take effect not earlier
than 2 years after the date on which the applicable regulations
are promulgated.
(4) Updates.--The Secretary of Transportation and the
Administrator shall establish a timeline for updating the
standards and limitations established under paragraph (1) to
maximize reductions in oil consumption and greenhouse gas.
TITLE III--ELECTRIC VEHICLE DEPLOYMENT
SEC. 301. FINDINGS.
Congress finds that--
(1) the United States is the largest consumer of petroleum
in the world, consuming 19,500,000 barrels per day of petroleum
products during 2008;
(2) high and volatile international oil prices represent a
significant and ongoing threat to the economic and national
security of the United States;
(3) many of the nations on which the United States relies
for petroleum supplies or that significantly affect the world
petroleum market share neither the national interest nor the
values of the United States;
(4) the United States imports more than 50 percent of the
petroleum needs of the country each day;
(5) in 2008, the net deficit of the United States in
petroleum trade amounted to more than $380,000,000,000, or
nearly 60 percent of the total trade deficit;
(6) the transportation sector of the United States accounts
for over \2/3\ of total national petroleum consumption and is
94 percent reliant on petroleum;
(7) the electrification of the light-duty vehicle fleet
represents a direct pathway to significant reduction in
petroleum dependence, because passenger cars and light trucks
account for more than 60 percent of the transportation
petroleum demand and more than 40 percent of total petroleum
demand in the United States;
(8) the electrification of the light-duty vehicle fleet
promotes national energy security because the electric power
sector uses a diverse range of domestic electricity generation
sources;
(9) electric drive cars, when running on electric power,
produce no tailpipe emissions;
(10) the deployment of 700,000 plug-in electric drive
vehicles would result in a petroleum savings of approximately
10,000,000 barrels per year compared to the annual petroleum
consumption as of the date of enactment of this Act;
(11) in 2030, the United States could feasibly deploy more
than 100,000,000 plug-in electric drive vehicles, which would
result in a petroleum savings of more than 1,000,000,000
barrels of petroleum per year and greenhouse gas reductions of
over 300,000,000 tons of carbon dioxide compared to the annual
petroleum consumption and greenhouse gas emissions as of the
date of enactment of this Act; and
(12) a targeted deployment program for plug-in electric
drive vehicles that is focused on competitively selected
deployment communities--
(A) represents the best opportunity to introduce
plug-in electric drive vehicles to the market; and
(B) with the information learned from the
deployment communities, will--
(i) inform best practices for the wide-
scale deployment of plug-in electric drive
vehicles; and
(ii) substantially reduce the oil
consumption of the United States.
SEC. 302. DEFINITIONS.
In this title:
(1) Agency.--The term ``agency'' has the meaning given the
term ``Executive agency'' in section 105 of title 5, United
States Code.
(2) Charging infrastructure.--The term ``charging
infrastructure'' means any property (not including a building
or the structural components of a building) if the property is
used for the recharging of motor vehicles propelled by
electricity, including electrical panel upgrades, wiring,
conduit, trenching, pedestals, and related equipment.
(3) Committee.--The term ``Committee'' means the Plug-in
Electric Drive Vehicle Technical Advisory Committee established
by section 312.
(4) Deployment community.--The term ``deployment
community'' means a community selected by the Secretary to be
part of the targeted plug-in electric drive vehicles deployment
communities program under section 304.
(5) Electric drive vehicle.--The term ``electric drive
vehicle'' means a vehicle that--
(A)(i) is--
(I) a light-duty vehicle (as the term is
defined in section 86.1803-01 of title 40, Code
of Federal Regulations, as in effect as of the
date of enactment of this Act) that draws
motive power from a battery with a capacity of
at least 4 kilowatt-hours;
(II) a heavy-duty vehicle (as the term is
defined in section 86.1803-01 of title 40, Code
of Federal Regulations, as in effect as of the
date of enactment of this Act) with a gross
vehicle weight rating greater than 8,500 pounds
and less than 14,000 pounds that draws motive
power from a battery with a capacity of at
least 8 kilowatt-hours;
(III) a heavy-duty vehicle (as the term is
defined in section 86.1803-01 of title 40, Code
of Federal Regulations, as in effect as of the
date of enactment of this Act) with a gross
vehicle weight rating greater than 14,000
pounds and less than 33,000 pounds that draws
motive power from a battery with a capacity of
at least 15 kilowatt-hours; or
(IV) a heavy-duty vehicle (as the term is
defined in section 86.1803-01 of title 40, Code
of Federal Regulations, as in effect as of the
date of enactment of this Act) with a gross
vehicle weight rating greater than 33,000
pounds that draws motive power from a battery
with a capacity of at least 20 kilowatt-hours;
and
(ii) can be recharged from an external source of
electricity for motive power; or
(B) is a motor vehicle (as the term is defined in
section 216 of the Clean Air Act (42 U.S.C. 7550)) that
draws motive power from a fuel cell (as the term is
defined in section 803 of the Spark M. Matsunaga
Hydrogen Act of 2005 (42 U.S.C. 16152)).
(6) Electric utility.--The term ``electric utility'' has
the meaning given the term in section 3 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602).
(7) Federal-aid system of highways.--The term ``Federal-aid
system of highways'' means a highway system described in
section 103 of title 23, United States Code.
(8) Plug-in electric drive vehicle.--
(A) In general.--The term ``plug-in electric drive
vehicle'' has the meaning given the term in section
131(a)(5) of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17011(a)(5)).
(B) Inclusions.--The term ``plug-in electric drive
vehicle'' includes--
(i) a low speed plug-in electric drive
vehicles that meet the Federal Motor Vehicle
Safety Standards described in section 571.500
of title 49, Code of Federal Regulations (or
successor regulations); and
(ii) any other motor vehicles that can be
recharged from an external source of motive
power and that is authorized to travel on the
Federal-aid system of highways.
(9) Prize.--The term ``Prize'' means the Advanced Batteries
for Tomorrow Prize established by section 309.
(10) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(11) Task force.--The term ``Task Force'' means the Plug-in
Electric Drive Vehicle Interagency Task Force established by
section 313.
SEC. 303. NATIONAL ELECTRIC DRIVE VEHICLE DEPLOYMENT PROGRAM.
(a) In General.--There is established within the Department of
Energy a national electric drive vehicle deployment program.
(b) National Plan.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop a national
plan for electric drive vehicle deployment that includes--
(A) an assessment of the maximum feasible
deployment of plug-in electric drive vehicles by 2020
and 2030;
(B) the establishment of national goals for market
penetration of plug-in electric drive vehicles by 2020
and 2030;
(C) a plan for using the successes and barriers to
deployment identified by the deployment communities
program established under section 304 to prepare
communities across the nation for the rapid deployment
of plug-in electric drive vehicles that includes--
(i) measures that communities not selected
as deployment communities should implement to
prepare for electric drive vehicle deployment;
and
(ii) any recommendations to the President
or Congress on the manner in which the Federal
Government can assist communities not selected
as deployment communities in preparing for
electric vehicle deployment--
(I) to support national plug-in
electric drive vehicle deployment; and
(II) to benefit from the lessons
learned by targeted electric drive
vehicle deployment communities;
(D) a plan for providing technical assistance to
communities across the United States to prepare for
plug-in electric drive vehicle deployment; and
(E) in consultation with the Task Force, any
recommendations to the President and to Congress for
changes in Federal programs (including laws,
regulations, and guidelines)--
(i) to better promote the deployment of
plug-in electric drive vehicles; and
(ii) to reduce barriers to the deployment
of plug-in electric drive vehicles.
(2) Updates.--The Secretary shall use market data and
information from the targeted electric drive vehicle deployment
communities program established under section 304 to regularly
update the plan to reflect real world market conditions.
(c) Technical Assistance.--
(1) In general.--In carrying out this section, the
Secretary shall provide, at the request of the applicable local
elected official, technical assistance to communities to assist
with the deployment of plug-in electric drive vehicles.
(2) Priority.--In providing technical assistance under this
subsection, the Secretary shall give priority to--
(A) communities that--
(i) applied to participate in the program
described in section 304 but were not selected
to be deployment communities; and
(ii) submitted applications that were
evaluated as the most worthy of selection based
on criteria established by the Secretary;
(B) communities that have established the most
engaged partnerships among stakeholders, including, at
a minimum--
(i) elected and appointed officials from
each of the participating State, local, and
tribal governments;
(ii) all relevant generators and
distributors of electricity;
(iii) public utility commissions;
(iv) departments of public works and
transportation;
(v) owners and operators of property that
will be essential to the deployment of a
sufficient level of publicly available charging
infrastructure (including privately owned
parking lots or structures);
(vi) plug-in electric drive vehicle
manufacturers or retailers;
(vii) third-party providers of charging
infrastructure or services;
(viii) owners of any major fleet that will
participate in the program;
(ix) as appropriate, owners and operators
of regional electric power distribution and
transmission facilities; and
(x) other existing community coalitions
recognized by the Department of Energy; and
(C) communities that have best demonstrated that
the public is likely to embrace plug-in electric drive
vehicles.
(d) Report.--The Secretary shall submit biennially to the
appropriate committees of Congress a report on the progress made in
implementing the national plan described in subsection (b) that
includes--
(1) a description of the progress made by the technical
assistance program under subsection (c); and
(2) any updated recommendations of the Secretary for
changes in Federal programs to promote the purposes of this
section.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for fiscal years
2011 through 2016.
SEC. 304. TARGETED ELECTRIC DRIVE VEHICLE DEPLOYMENT COMMUNITIES
PROGRAM.
(a) Establishment.--
(1) In general.--There is established within the national
electric drive deployment program established under section 303
a targeted electric drive vehicle deployment communities
program (referred to in this section as the ``Program'').
(2) Phase 1.--
(A) In general.--The Secretary shall establish a
competitive process to select at least 5 and not more
than 15 phase 1 deployment communities for the Program.
(B) Eligible entities.--In selecting participants
for the Program under paragraph (1), the Secretary
shall only consider applications submitted by State,
tribal, or local government entities (or groups of
State, tribal, or local government entities).
(C) Selection.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall
select the phase 1 deployment communities under this
paragraph.
(D) Termination.--Phase 1 of the Program shall be
carried out for a 5-year period beginning on the date
funding under this title is first provided to the
deployment community.
(3) Phase 2.--Not later than 5 years after the date of
enactment of this Act, the Secretary shall submit to Congress a
report that analyzes the success of phase I and, if, based on
the phase I analysis, the Secretary determines that a phase II
program is warranted, makes recommendations and describes a
plan for phase II, including--
(A) recommendations regarding--
(i) the number of additional deployment
communities that should be selected;
(ii) the manner in which criteria for
selection should be updated;
(iii) the manner in which incentive
structures for phase 2 deployment should be
changed; and
(iv) whether other forms of onboard energy
storage for electric drive vehicles should be
included in phase 2; and
(B) a request for appropriations to implement phase
2 of the Program.
(b) Goals.--The goals of the Program are--
(1) to facilitate the rapid deployment of plug-in electric
drive vehicles, including--
(A) the deployment of 700,000 plug-in electric
drive vehicles in phase 1 in the deployment communities
selected under paragraph (2);
(B) the near-term achievement of significant market
penetration in deployment communities; and
(C) the achievement of significant market
penetration nationally;
(2) to establish models for the rapid deployment of plug-in
electric drive vehicles nationally, including for the
deployment of residential and publicly available charging
infrastructure;
(3) to increase consumer knowledge and acceptance of plug-
in electric drive vehicles;
(4) to encourage the innovation and investment necessary to
achieve mass market deployment of plug-in electric drive
vehicles;
(5) to demonstrate the integration of plug-in electric
drive vehicles into electricity distribution systems and the
larger electric grid while maintaining grid system performance
and reliability;
(6) to demonstrate protocols and communication standards
that facilitate vehicle integration into the grid and provide
seamless charging for consumers traveling through multiple
utility distribution systems;
(7) to investigate differences among deployment communities
and to develop best practices for implementing vehicle
electrification in various communities, including best
practices for planning for and facilitating the construction of
residential and publicly available infrastructure to support
plug-in electric drive vehicles;
(8) to collect comprehensive data on the purchase and use
of plug-in electric vehicles to inform best practices for
rapidly deploying plug-in electric drive vehicles in other
locations, including for the installation of charging
infrastructure; and
(9) to reduce and displace petroleum use and reduce
greenhouse gas emissions by accelerating the deployment of
plug-in electric drive vehicles in the United States.
(c) Phase 1 Deployment Community Selection Criteria.--
(1) In general.--The Secretary shall ensure, to the maximum
extent practicable, that selected deployment communities in
phase 1 serve as models of deployment for various communities
across the United States.
(2) Selection.--In selecting communities under this
section, the Secretary--
(A) shall ensure, to the maximum extent
practicable, that--
(i) the combination of selected communities
is diverse in population, demographics, urban
and suburban composition, typical commuting
patterns, climate, type of utility (including
regulated, municipal, cooperative, and
vertically integrated utilities), and
geography;
(ii) at least 1 community selected has a
population of less than 125,000;
(iii) each deployment community will
achieve significant market penetration; and
(iv) the deployment communities present a
strong opportunity for replication in other
communities across the United States;
(B) is encouraged to select a combination of
deployment communities that includes multiple models or
approaches for deploying plug-in electric drive
vehicles that the Secretary believes are reasonably
likely to be effective, including multiple approaches
to the deployment of charging infrastructure; and
(C) in addition to the criteria described in
subparagraph (A), may give preference to applicants
proposing a greater non-Federal cost share.
(3) Criteria.--
(A) In general.--Not later than 120 days after the
date of enactment of this Act, the Secretary shall
publish criteria for the selection of deployment
communities that include requirements that applications
be submitted by a State, tribal, or local government
entity (or groups of State, tribal, or local government
entities).
(B) Application requirements.--The criteria
published by the Secretary under subparagraph (A) shall
include application requirements that, at a minimum,
include--
(i) goals for--
(I) the number of plug-in electric
drive vehicles to be deployed in the
community;
(II) the expected percentage of
light-duty vehicle sales that would be
sales of plug-in electric drive
vehicles; and
(III) the adoption of plug-in
electric drive vehicles (including
medium- or heavy-duty vehicles) in
private and public fleets during the 5-
year duration of the Program;
(ii) evidence that--
(I) the public is likely to embrace
plug-in electric drive vehicles; and
(II) automobile manufacturers and
dealers will be able to provide and
service the targeted number of plug-in
electric drive vehicles in the
community for the duration of the
program;
(iii) clearly defined geographic boundaries
of the proposed deployment area;
(iv) a community deployment plan for the
deployment of plug-in electric drive vehicles,
charging infrastructure, and services in the
deployment community;
(v) assurances that a majority of the
vehicle deployments anticipated in the plan
will be for personal vehicles authorized to
travel on the United States Federal-aid system
of highways, but may also include--
(I) private or public sector plug-
in electric drive fleet vehicles;
(II) medium- and heavy-duty hybrid
vehicles;
(III) low speed plug-in electric
drive vehicles that meet Federal Motor
Vehicle Safety Standards described in
section 571.500 of title 49, Code of
Federal Regulations; and
(IV) any other plug-in electric
drive vehicle authorized to travel on
the United States Federal-aid system of
highways; and
(vi) any other merit-based criteria, as
determined by the Secretary.
(4) Community deployment plans.--Plans for the deployment
of plug-in electric drive vehicles shall include--
(A) a proposed level of cost sharing in accordance
with subsection (d)(2)(C);
(B) documentation demonstrating a substantial
partnership with relevant stakeholders, including--
(i) a list of stakeholders that includes--
(I) elected and appointed officials
from each of the participating State,
local, and tribal governments;
(II) all relevant generators and
distributors of electricity;
(III) State utility regulatory
authorities;
(IV) departments of public works
and transportation;
(V) owners and operators of
property that will be essential to the
deployment of a sufficient level of
publicly available charging
infrastructure (including privately
owned parking lots or structures);
(VI) plug-in electric drive vehicle
manufacturers or retailers;
(VII) third-party providers of
charging infrastructure or services;
(VIII) owners of any major fleet
that will participate in the program;
(IX) as appropriate, owners and
operators of regional electric power
distribution and transmission
facilities; and
(X) as appropriate, other existing
community coalitions recognized by the
Department of Energy;
(ii) evidence of the commitment of the
stakeholders to participate in the partnership;
(iii) a clear description of the role and
responsibilities of each stakeholder; and
(iv) a plan for continuing the engagement
and participation of the stakeholders, as
appropriate, throughout the implementation of
the deployment plan;
(C) a description of the number of plug-in electric
drive vehicles anticipated to be plug-in electric drive
personal vehicles and the number of plug-in electric
drive vehicles anticipated to be privately owned fleet
or public fleet vehicles;
(D) a plan for deploying residential and publicly
available charging infrastructure, including--
(i) an assessment of the number of
consumers who will have access to private
residential charging infrastructure;
(ii) an approach for accommodating
residents who are not able to charge vehicles
at the place of residence;
(iii) a plan for ensuring that the charging
infrastructure be able to send and receive the
information needed to interact with the grid
and be compatible with smart grid technologies
to the extent appropriate;
(iv) an estimate of how many charging
stations will be needed and where to locate the
stations;
(v) a plan for how much publicly available
charging infrastructure will be privately
funded or located on private property; and
(vi) a description of equipment to be
deployed, including assurances that, to the
maximum extent practicable, equipment to be
deployed will meet open, nonproprietary
standards for connecting to plug-in electric
drive vehicles that are either--
(I) commonly accepted by industry
at the time the equipment is being
acquired; or
(II) meet the standards developed
by the Director of the National
Institute of Standards and Technology
under section 1305 of the Energy
Independence and Security Act of 2007
(42 U.S.C. 17385);
(E) a plan for effective marketing of plug-in
electric drive vehicles, charging services, and
infrastructure;
(F) descriptions of updated building codes (or a
plan to update building codes before or during the
grant period) to include charging infrastructure or
dedicated circuits for charging infrastructure, as
appropriate, in new construction and major renovations;
(G) descriptions of updated construction permitting
or inspection processes (or a plan to update
construction permitting or inspection processes) to
allow for expedited installation of charging
infrastructure for purchasers of plug-in electric drive
vehicles, including a permitting process that allows a
vehicle purchaser to have charging infrastructure
installed within 3 business days;
(H) descriptions of updated zoning, parking rules,
or other local ordinances as are necessary to
facilitate the installation of publicly available
charging infrastructure and to allow for access to
publicly available charging infrastructure, as
appropriate;
(I) additional incentives, beyond those established
by this title, for the purchasers of plug-in electric
drive vehicles, including rebates or reductions in
sales taxes or registration fees, preferred parking
spaces, and single rider access to high occupancy
vehicle lanes for plug-in electric drive vehicles;
(J) additional incentives, beyond those established
by this title, for the installation of charging
infrastructure;
(K) a proposed plan for making necessary utility
and grid upgrades, including economically sound
information technology upgrades and a plan for
recovering the cost of the upgrades;
(L) a description of utility, grid operator, or
third-party charging service provider, policies and
plans for accommodating the deployment of plug-in
electric drive vehicles, including--
(i) rate structures or provisions and
billing protocols for the charging of plug-in
electric drive vehicles, including, as
appropriate--
(I) accommodation for billing for--
(aa) charging at a place of
residence and at publicly
available charging
infrastructure; and
(bb) vehicle owners who
cannot charge at home by virtue
of the nature of their
residence; and
(II) rate structures or provisions
that benefit consumers by
facilitating--
(aa) charging off-peak
rates;
(bb) load management
strategies that optimize
reliable and economical
operation of the grid;
(cc) utilities, grid
operators, or third-party
charging services to draw
battery charge for use on the
grid; or
(dd) the offer of other
benefits to the utility system
or the grid;
(ii) analysis of potential impacts to the
grid;
(iii) plans for using information
technology or third-party aggregators to
minimize the effects of charging on peak loads;
(iv) plans for working with smart grid
technologies or third-party aggregators for the
purposes of smart charging and for allowing 2-
way communication and electricity movement; and
(v) plans for anticipating vehicle-to-grid
applications that will allow batteries in cars
as well as banks of batteries to be used for
grid storage, ancillary services provision, and
backup power;
(M) a deployment timeline;
(N) a plan for monitoring and evaluating the
implementation of the plan, including metrics for
assessing the success of the deployment and an approach
to updating the plan, as appropriate; and
(O) a description of the manner in which any grant
funds applied for under subsection (d) will be used and
the proposed local cost share for the funds.
(d) Phase 1 Applications and Grants.--
(1) In general.--Not later than 120 days after the date of
publication by the Secretary of the selection criteria
described in subsection (c)(3), any State, tribe, or local
government, or group of State, tribe, or local governments may
apply to the Secretary to become a deployment community.
(2) Grants.--
(A) In general.--In each application, the applicant
may request up to $250,000,000 in financial assistance
from the Secretary to fund projects in the deployment
community.
(B) Use of funds.--Funds provided through a grant
under this paragraph may be used to help implement the
plan for the deployment of plug-in electric drive
vehicles included in the application, including--
(i) planning for and installing charging
infrastructure, including offering additional
incentives as described in subsection
(c)(4)(J);
(ii) updating building codes, zoning or
parking rules, or permitting or inspection
processes as described in subparagraphs (F),
(G), and (H) of subsection (c)(4);
(iii) reducing the cost and increasing the
consumer adoption of plug-in electric drive
vehicles through incentives as described in
subsection (c)(4)(I);
(iv) workforce training, including training
of permitting officials;
(v) public education described in the
proposed marketing plan; and
(vi) shifting State, tribal, or local
government fleets to plug-in electric drive
vehicles, at a rate in excess of the existing
Federal alternative fleet vehicle requirements.
(C) Cost-sharing.--
(i) In general.--A grant provided under
this paragraph shall be subject to a minimum
non-Federal cost-sharing requirement of 20
percent.
(ii) Non-federal sources.--The Secretary
shall--
(I) determine the appropriate cost
share for each selected applicant; and
(II) require that not less than 20
percent of the cost of an activity
funded by a grant under this paragraph
be provided by a non-Federal source.
(iii) Reduction.--The Secretary may reduce
or eliminate the cost-sharing requirement
described in clause (i), as the Secretary
determines to be necessary.
(iv) Calculation of amount.--In calculating
the amount of the non-Federal share under this
section, the Secretary--
(I) may include allowable costs in
accordance with the applicable cost
principles, including--
(aa) cash;
(bb) personnel costs;
(cc) the value of a
service, other resource, or
third party in-kind
contribution determined in
accordance with the applicable
circular of the Office of
Management and Budget;
(dd) indirect costs or
facilities and administrative
costs; or
(ee) any funds received
under the power program of the
Tennessee Valley Authority or
any Power Marketing
Administration (except to the
extent that such funds are made
available under an annual
appropriation Act);
(II) shall include contributions
made by State, tribal, or local
government entities and private
entities; and
(III) shall not include--
(aa) revenues or royalties
from the prospective operation
of an activity beyond the time
considered in the grant, unless
from a qualified electric drive
vehicle refueling property bond
(as defined in section 54G(a)
of the Internal Revenue Code of
1986);
(bb) proceeds from the
prospective sale of an asset of
an activity; or
(cc) other appropriated
Federal funds.
(v) Repayment of federal share.--The
Secretary shall not require repayment of the
Federal share of a cost-shared activity under
this section as a condition of providing a
grant.
(vi) Title to property.--The receipt of
Federal funds under this section shall not
prohibit the purchaser of a vehicle, equipment,
or other property from retaining sole,
permanent title to the vehicle, equipment, or
property at the conclusion of the program.
(3) Selection.--Not later than 120 days after the
application deadline established under paragraph (1), the
Secretary shall announce the names of the deployment
communities selected under this subsection.
(e) Reporting Requirements.--
(1) In general.--The Secretary, in consultation with the
Committee, shall--
(A) determine what data will be required to be
collected by participants in deployment communities and
submitted to the Department to allow for analysis of
the deployment communities; and
(B) develop metrics to determine the success of the
deployment communities.
(2) Provision of data.--As a condition of participation in
the Program, a deployment community shall provide any data
identified by the Secretary under paragraph (1).
(3) Reports.--Not later than 3 years after the date of
enactment of this Act and again after the completion of the
Program, the Secretary shall submit to Congress a report that
contains--
(A) a description of the status of--
(i) the deployment communities and the
implementation of the deployment plan of each
deployment community;
(ii) the rate of vehicle manufacturing
deployment and market penetration of plug-in
electric drive vehicles; and
(iii) the deployment of residential and
publicly available infrastructure;
(B) a description of the challenges experienced and
lessons learned from the program to date, including the
activities described in subparagraph (A); and
(C) an analysis of the data collected under this
subsection.
(f) Information Clearinghouse.--The Secretary shall make available
to the public, in a timely manner, information regarding the cost,
performance, usage data, and technical data regarding the deployment
and integration of plug-in electric drive vehicles in the deployment
communities.
(g) Proprietary Information.--The Secretary shall, as appropriate,
provide for the protection of proprietary information and intellectual
property rights.
(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,002,000,000.
(i) Conforming Amendment.--Section 166(b)(5) of title 23, United
States Code, is amended--
(1) in subparagraph (A), by striking ``Before September 30,
2009, the State'' and inserting ``The State''; and
(2) in subparagraph (B), by striking ``Before September 30,
2009, the State'' and inserting ``The State''.
SEC. 305. MODIFICATIONS TO TAX CREDITS.
(a) Credit for New Qualified Plug-In Electric Drive Motor
Vehicles.--
(1) Transferability.--
(A) In general.--Subsection (c) of section 30D of
the Internal Revenue Code of 1986 is amended by adding
at the end the following new paragraph:
``(3) Refundable personal credit.--
``(A) In general.--For purposes of this title, in
the case of a qualified deployment community taxpayer,
the credit allowed under subsection (a) for any taxable
year (determined after application of paragraph (1) and
without regard to paragraph (2)(B)) shall be treated as
a credit allowable under subpart C for such taxable
year (and not allowed under subsection (a)), and
paragraph (2) shall not apply to such credit.
``(B) Qualified deployment community taxpayer.--For
purposes of subparagraph (A), the term `qualified
deployment community taxpayer' means a taxpayer--
``(i) who purchases a new qualified plug-in
electric drive motor vehicle to which paragraph
(1) does not apply, and
``(ii) who resides within, and registers
such vehicle in, a deployment community
selected by the Secretary under the Targeted
Electric Vehicles Deployment Communities
Program established by the `Oil Independence
for a Stronger America Act of 2010'.
For purposes of the preceding sentence, such a
deployment community shall only be treated as a
deployment community after the date on which such
community is so selected (without regard to the date on
which any funds under such Act are provided with
respect to such community) and before the date on which
Phase 1 of such program terminates.
``(C) Refundable credit may be transferred.--
``(i) In general.--A qualified deployment
community taxpayer may, in connection with the
purchase of a new qualified plug-in electric
drive motor vehicle, transfer any refundable
credit described in subparagraph (A)--
``(I) to any person who is in the
trade or business of selling new
qualified plug-in electric drive motor
vehicles and who sold such vehicle to
the taxpayer, or
``(II) to any person who is in the
trade or business of financing the
sales of new qualified plug-in electric
drive motor vehicles and who financed
the taxpayer's purchase of such
vehicle.
``(ii) Disclosure.--A qualified deployment
community taxpayer may transfer a refundable
credit described in subparagraph (A) to a
person described in clause (i)(I) only if such
person clearly discloses to such taxpayer,
through the use of a window sticker attached to
the new qualified plug-in electric drive motor
vehicle--
``(I) the amount of the refundable
credit described in subparagraph (A)
with respect to such vehicle, and
``(II) a notification that the
taxpayer will not be eligible for any
credit under any other section of this
title with respect to such vehicle
unless the taxpayer elects not to have
this section apply with respect to such
vehicle.
``(iii) Certification.--A transferee of a
refundable credit described in subparagraph (A)
may not claim such credit unless such claim is
accompanied by a certification to the Secretary
that the transferee reduced the price the
taxpayer paid or the balance due to the
financier, whichever is applicable, for the new
qualified plug-in electric drive motor vehicle
by the entire amount of such refundable credit.
``(iv) Consent required for revocation.--
Any transfer under clause (i) may be revoked
only with the consent of the Secretary.
``(v) Special rule for bulk purchasers.--A
qualified deployment community taxpayer who
purchases 10 or more new qualified plug-in
electric drive motor vehicles during the
taxable year may transfer a refundable credit
described in subparagraph (A) to any person.
``(vi) Regulations.--The Secretary may
prescribe such regulations as necessary--
``(I) to ensure that any refundable
credit described in clause (i) is
claimed once and not retransferred by a
transferee, and
``(II) to provide a mechanism by
which the transferee may claim and
receive the credit within 3 months of
the sale of the new qualified plug-in
electric drive motor vehicle.''.
(B) Display of credit information.--Section
32908(b)(1) of title 49, United States Code, is
amended--
(i) by redesignating subparagraphs (E) and
(F) as subparagraphs (F) and (G), and
(ii) by inserting after subparagraph (D)
the following new subparagraph:
``(E) the amount of the new qualified plug-in
electric drive motor vehicle credit allowable with
respect to the sale of the automobile under section 30D
of the Internal Revenue Code of 1986 (26 U.S.C.
30D).''.
(2) Increased credit for taxpayers in deployment
communities.--Subsection (f) of section 30D of such Code is
amended by adding at the end the following new paragraph:
``(8) Increased credit for taxpayers in deployment
communities.--In the case of a qualified deployment community
taxpayer (within the meaning of subsection (c)(3)(B)),
subsection (b)(2) shall be applied by substituting `$5,000' for
`$2,500'.''.
(3) Increased per manufacturer cap.--Paragraph (2) of
section 30(D)(e) of such Code is amended by striking
``200,000'' and inserting ``300,000''.
(4) Extension and modification of new qualified hybrid
motor vehicle credit.--
(A) Extension.--Paragraph (3) of section 30B(k) of
such Code is amended by striking ``December 31, 2009''
and inserting ``December 31, 2016''.
(B) Qualified incremental hybrid cost.--Clause
(iii) of section 30B(d)(2)(B) of such Code is amended
by striking ``does not exceed--'' and all that follows
and inserting ``does not exceed--
``(I) $15,000, if such vehicle has
a gross vehicle weight rating of not
more than 14,000 pounds,
``(II) $30,000, if such vehicle has
a gross vehicle weight rating of more
than 14,000 pounds but not more than
26,000 pounds,
``(III) $60,000, if such vehicle
has a gross vehicle weight rating of
more than 26,000 pounds but not more
than 33,000 pounds, and
``(IV) $100,000, if such vehicle
has a gross vehicle weight rating of
more than 33,000 pounds.''.
(C) Applicable percentage for heavy trucks
achieving 20 percent increase in city fuel economy.--
Clause (ii) of section 30B(d)(2)(B) of such Code is
amended by redesignating subclauses (I), (II), and
(III) as subclauses (II), (III), and (IV),
respectively, and by inserting before subclause (II)
(as so redesignated) the following new subclause:
``(I) 10 percent in the case of a
vehicle to which clause (iii)(IV)
applies if such vehicle achieves an
increase in city fuel economy relative
to a comparable vehicle of at least 20
percent but less than 30 percent.''.
(D) Dollar limitation.--Subparagraph (B) of section
30B(d)(2) of such Code is amended by adding at the end
the following new clause:
``(vi) Limitation.--The amount allowed as a
credit under subsection (a)(3) with respect to
a vehicle by reason of clause (i) of this
subparagraph shall not exceed $24,000.''.
(E) Heavy electric vehicles.--Paragraph (3) of
section 30B(d) of such Code is amended by redesignating
subparagraphs (B), (C), and (D) as subparagraphs (C),
(D), and (E), respectively, and by inserting after
subparagraph (A) the following new subparagraph:
``(B) Heavy electric vehicles.--In the case of a
vehicle with a gross vehicle weight rating of not less
than 8,500 pounds, the term `new qualified hybrid motor
vehicle' includes a motor vehicle--
``(i) which draws propulsion energy
exclusively from a rechargeable energy storage
system, and
``(ii) which meets the requirements of
clauses (iii), (v), (vi), and (vii) of
subparagraph (A).''.
(F) Credits may be transferred.--Subsection (d) of
section 30B of such Code is amended by adding at the
end the following new paragraph:
``(4) Transferability of credit.--
``(A) In general.--A taxpayer who places in service
any vehicle may transfer the credit allowed under this
subsection with respect to such vehicle through an
assignment to the seller of such vehicle. Such transfer
may be revoked only with the consent of the Secretary.
``(B) Regulations.--The Secretary shall prescribe
such regulations as necessary to ensure that any credit
transferred under subparagraph (A) is claimed once and
not reassigned by such other person.''.
(b) Credit for Alternative Fuel Vehicle Refueling Property.--
(1) Extension of increased credit for electricity.--
(A) In general.--Paragraph (6) of section 30C(e) of
the Internal Revenue Code of 1986 is amended--
(i) by striking ``during 2009 and 2010'' in
the heading and inserting ``during certain
taxable years'',
(ii) by striking ``and before January 1,
2011'',
(iii) by inserting ``, which is placed in
service before January 1, 2011 (before January
1, 2017, in the case of property which relates
to electricity)'' after ``hydrogen'' in
subparagraph (A), and
(iv) by inserting ``, which is placed in
service before January 1, 2011'' after
``hydrogen'' in subparagraph (B).
(B) Extension of credit.--Subsection (g) of section
30C of such Code is amended--
(i) by striking ``and'' at the end of
paragraph (1),
(ii) by redesignating paragraph (2) as
paragraph (3), and
(iii) by inserting after paragraph (1) the
following new paragraph:
``(2) in the case of property relating to electricity,
after December 31, 2016, and''.
(2) Modification of cost provisions.--Subsection (e) of
section 30C of such Code is amended by adding at the end the
following new paragraph:
``(7) Installation of electricity property.--In the case of
any qualified alternative fuel vehicle refueling property which
relates to electricity, for purposes of subsection (a), the
cost of such property shall include the cost of the original
installation of such property.''.
(3) Transferability of credit.--Section 30C(e) of such
Code, as amended by paragraph (2), is amended by adding at the
end the following new paragraph:
``(8) Transferability of credit.--
``(A) In general.--A person who places any
qualified alternative fuel vehicle refueling property
in service may transfer the credit under this section
through an assignment to any other person. Such
transfer may be revoked only with the consent of the
Secretary.
``(B) Certification.--A transferee of a credit
described in subparagraph (A) may not claim such credit
unless such claim is accompanied by a certification to
the Secretary that the transferee reduced the price the
transferor paid for the qualified alternative fuel
vehicle refueling property by the entire amount of such
credit.
``(C) Regulations.--The Secretary shall prescribe
such regulations as necessary to ensure that the credit
transferred under subparagraph (A) is claimed once and
not reassigned by such other person.''.
(c) 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. 306. QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE REFUELING
PROPERTY BONDS.
(a) In General.--Paragraph (1) of section 54A(d) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``or'' at the end of subparagraph (D),
(2) by inserting ``or'' at the end of subparagraph (E), and
(3) by inserting after subparagraph (E) the following new
subparagraph:
``(F) a qualified plug-in electric drive motor
vehicle refueling property bond,''.
(b) Qualified Purpose.--Subparagraph (C) of section 54A(d)(2) of
the Internal Revenue Code of 1986 is amended--
(1) by striking ``and'' at the end of clause (iv),
(2) by striking the period at the end of clause (v) and
inserting ``, and'', and
(3) by adding at the end the following new clause:
``(vi) in the case of a qualified plug-in
electric drive motor vehicle refueling property
bond, a purpose specified in section
54G(a)(1).''.
(c) Bonds Allowed.--Subpart I of part IV of subchapter A of chapter
1 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 54G. QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE REFUELING
PROPERTY BONDS.
``(a) Qualified Plug-In Electric Drive Motor Vehicle Refueling
Property Bond.--For purposes of this subpart, the term `qualified plug-
in electric drive motor vehicle refueling property bond' means any bond
issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for capital expenditures incurred by a
qualified issuer for 1 or more qualified plug-in electric drive
motor vehicle refueling properties,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Reduced Credit Amount.--Notwithstanding paragraph (2) of
section 54A(b), the annual credit determined with respect to any
qualified plug-in electric drive motor vehicle refueling property bond
is 70 percent of the amount which would (but for this subsection)
otherwise be determined under such paragraph with respect to such bond.
``(c) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds which may be designated under subsection
(a) by any issuer shall not exceed the limitation amount allocated to
such issuer under subsection (e).
``(d) National Limitation on Amount of Bonds Designated.--There is
a national qualified plug-in electric drive motor vehicle refueling
property bond limitation of $1,000,000,000.
``(e) Allocations.--The Secretary shall make allocations of the
amount of the national qualified plug-in electric drive motor vehicle
refueling property bond limitation described in subsection (d) among
purposes described in subsection (a)(1) in such manner as the Secretary
determines appropriate.
``(f) Definitions.--For purposes of this section--
``(1) Qualified plug-in electric drive motor vehicle
refueling property.--The term `qualified plug-in electric drive
motor vehicle refueling property' means any qualified
alternative fuel vehicle refueling property (within the meaning
of section 30C) which relates to electricity.
``(2) Qualified issuer.--
``(A) In general.--The term `qualified issuer'
means a public power provider, a cooperative electric
company, or a governmental body.
``(B) Denial of double benefit.--With respect to
any issue, the term `qualified issuer' shall not
include any entity to which a credit under section 30C
is allowed for the taxable year in which such issue is
issued.
``(C) Governmental body.--The term `governmental
body' means any State or Indian tribal government, or
any political subdivision thereof.
``(D) Public power provider.--The term `public
power provider' means a State utility that has a
service obligation to end-users or to a distribution
utility (within the meaning of section 217 of the
Federal Power Act, as in effect on the date of the
enactment of this section).
``(E) Cooperative electric company.--The term
`cooperative electric company' means a mutual or
cooperative electric company described in section
501(c)(12) or an organization described in section
1381(a)(2)(C).''.
(d) Clerical Amendment.--The table of sections for subpart I of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 54G. Qualified plug-in electric drive motor vehicle refueling
property bonds.''.
(e) Effective Date.--The amendments made by subsections (a), (b),
(c), and (d) shall apply to obligations issued after the date of the
enactment of this Act.
(f) Loan Guarantees.--
(1) In general.--Section 1705 of the Energy Policy Act of
2005 (42 U.S.C. 16516) is amended--
(A) in subsection (a), by adding at the end the
following:
``(4) Charging infrastructure and networks of charging
infrastructure for plug-in drive electric vehicles, if such
charging infrastructure will be operational prior to December
31, 2016.''; and
(B) by striking subsection (e) and inserting the
following:
``(e) Sunset.--The authority to enter into guarantees under this
section shall expire on September 30, 2011, except that for projects
described in subsection (a)(4), the authority to enter into guarantees
shall expire on December 31, 2016.''.
SEC. 307. UTILITY PLANNING FOR PLUG-IN ELECTRIC DRIVE VEHICLES.
The Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601
et seq.) is amended--
(1) in section 111(d) (16 U.S.C. 2621(d)), by adding at the
end the following:
``(20) Plug-in electric drive vehicle planning.--
``(A) Utility plan for plug-in electric drive
vehicles.--
``(i) In general.--Not later than 2 years
after the date of enactment of this paragraph,
each electric utility shall develop a plan to
support the use of plug-in electric drive
vehicles, including medium and heavy-duty
hybrid electric vehicles in the service area of
the electric utility.
``(ii) Requirements.--A plan under clause
(i) shall investigate--
``(I) various levels of potential
penetration of plug-in electric drive
vehicles in the utility service area;
``(II) the potential impacts that
the various levels would have on
distribution infrastructure and on the
operation of the transmission grid; and
``(III) the role of third parties
in providing reliable and economical
charging services.
``(iii) Waiver.--An electric utility that
determines that the electric utility will have
no meaningful penetration of plug-in electric
drive vehicles during the 5-year period
beginning on the date of enactment of this
paragraph may petition the Secretary to waive
clause (i) for 5 years.
``(iv) Updates.--
``(I) In general.--Each electric
utility shall update the plan of the
electric utility every 5 years.
``(II) Resubmission of waiver.--An
electric utility that received a waiver
under clause (iii) and wants the waiver
to continue after the expiration of the
waiver shall be required to resubmit
the waiver.
``(v) Exemption.--If the Secretary
determines that a plan required by a State
regulatory authority meets the requirements of
this paragraph, the Secretary may accept that
plan and exempt the electric utility submitting
the plan from the requirements of clause (i).
``(B) Support requirements.--Each State regulatory
authority (in the case of each electric utility for
which the authority has ratemaking authority) and each
municipal and cooperative utility shall--
``(i) participate in any local plan for the
deployment of recharging infrastructure in
communities located in the footprint of the
authority or utility;
``(ii) require that charging infrastructure
deployed is interoperable with products of all
auto manufacturers to the maximum extent
practicable; and
``(iii) consider adopting minimum
requirements for deployment of electrical
charging infrastructure and other appropriate
requirements necessary to support the use of
plug-in electric drive vehicles.
``(C) Cost recovery.--Each State regulatory
authority (in the case of each electric utility for
which the authority has ratemaking authority) and each
municipal and cooperative utility may consider whether,
and to what extent, to allow cost recovery for plans
and implementation of plans.
``(D) Smart grid integration.--The State regulatory
authority (in the case of each electric utility for
which the authority has ratemaking authority) and each
municipal and cooperative utility, in accordance with
regulations issued by the Federal Energy Regulatory
Commission under section 1305(d) of the Energy
Independence and Security Act of 2007 (42 U.S.C.
17385), shall--
``(i) establish any appropriate protocols
and standards for integrating plug-in electric
drive vehicles into an electrical distribution
system, including Smart Grid systems and
devices as described in title XIII of the
Energy Independence and Security Act of 2007
(42 U.S.C. 17381 et seq.);
``(ii) develop, to the maximum extent
practicable, the means and methods for
appropriate billing settlements between
utilities, consumers, and third parties in and
across utility territories;
``(iii) identify the smart grid
infrastructure and information technology that
would likely need to be installed to most
efficiently manage plug-in electric vehicles;
and
``(iv) in consideration of this section,
review the determination made under subsection
(a), including whether time-of-use pricing
should be employed to enable the use of plug-in
electric drive vehicles to contribute to
meeting peak-load and ancillary service power
needs.
``(E) Determination.--Not later than 3 years after
the date of enactment of this paragraph, each State
regulatory authority (with respect to each electric
utility for which the authority has ratemaking
authority), and each municipal and cooperative electric
utility, shall complete the consideration, and shall
make the determination, referred to in subsection (a)
with respect to the standard established by this
paragraph.''
(2) in section 112(c) (16 U.S.C. 2622(c))--
(A) in the first sentence, by striking ``Each
State'' and inserting the following:
``(1) In general.--Each State'';
(B) in the second sentence, by striking ``In the
case'' and inserting the following:
``(2) Specific standards.--
``(A) Net metering and fossil fuel generation
efficiency.--In the case'';
(C) in the third sentence, by striking ``In the
case'' and inserting the following:
``(B) Time-based metering and communications.--In
the case'';
(D) in the fourth sentence--
(i) by striking ``In the case'' and
inserting the following:
``(C) Interconnection.--In the case''; and
(ii) by striking ``paragraph (15)'' and
inserting ``paragraph (15) of section 111(d)'';
(E) in the fifth sentence, by striking ``In the
case'' and inserting the following:
``(D) Integrated resource planning, rate design
modifications, smart grid investments, smart grid
information.--In the case''; and
(F) by adding at the end the following:
``(E) Plug-in electric drive vehicle planning.--In
the case of the standards established by paragraph (20)
of section 111(d), the reference contained in this
subsection to the date of enactment of this Act shall
be deemed to be a reference to the date of enactment of
that paragraph.''; and
(3) in section 112(d) (16 U.S.C. 2622(d)), in the matter
preceding paragraph (1), by striking ``(19)'' and inserting
``(20)''.
SEC. 308. FEDERAL FLEETS.
(a) In General.--Electricity consumed by Federal agencies to fuel
plug-in electric drive vehicles--
(1) is an alternative fuel (as defined in section 301 of
the Energy Policy Act of 1992 (42 U.S.C. 13218)); and
(2) shall be accounted for under Federal fleet management
reporting requirements, not under Federal building management
reporting requirements.
(b) Assessment and Report.--Not later than 180 days after the date
of enactment of this Act and at the completion of the Program, the
Federal Energy Management Program and the General Services
Administration, in consultation with the Task Force, shall complete an
assessment of Federal Government fleets, including the Postal Service
and the Department of Defense, and submit a report to Congress that
describes--
(1) for each Federal agency, which types of vehicles the
agency uses that would or would not be suitable for near-term
and medium-term conversion to plug-in electric drive vehicles,
taking into account the types of vehicles for which plug-in
electric drive vehicles could provide comparable functionality
and lifecycle costs;
(2) how many plug-in electric drive vehicles could be
deployed by the Federal Government in 5 years and in 10 years,
assuming that plug-in electric drive vehicles are available and
are purchased when new vehicles are needed or existing vehicles
are replaced; and
(3) the estimated cost to the Federal Government for
vehicle purchases under paragraph (2) for each fiscal year.
(c) Inventory and Data Collection.--
(1) In general.--In carrying out the assessment and report
under subsection (b), the Federal Energy Management Program, in
consultation with the General Services Administration, shall--
(A) develop an information request for each agency
that operates a fleet of at least 20 motor vehicles;
and
(B) establish guidelines for each agency to use in
developing a plan to deploy plug-in electric drive
vehicles.
(2) Agency responses.--Each agency that operates a fleet of
at least 20 motor vehicles shall--
(A) collect information on the vehicle fleet of the
agency in response to the information request described
in paragraph (1); and
(B) develop a plan to deploy plug-in electric drive
vehicles.
(3) Analysis of responses.--The Federal Energy Management
Program shall--
(A) analyze the information submitted by each
agency under paragraph (2);
(B) approve or suggest amendments to the plan of
each agency to ensure that the plan is consistent with
the goals and requirements of this title; and
(C) submit a plan to Congress and the General
Services Administration to be used in developing the
pilot program described in subsection (e).
(d) Budget Request.--Each agency of the Federal Government shall
include plug-in electric drive vehicle purchases identified in the
report under subsection (b) in the budget of the agency to be included
in the budget of the United States Government submitted by the
President under section 1105 of title 31, United States Code.
(e) Pilot Program To Deploy Plug-In Electric Drive Vehicles in the
Federal Fleet.--
(1) In general.--The Administrator of General Services
shall acquire plug-in electric drive vehicles and the requisite
charging infrastructure to be deployed in a range of locations
in the Federal fleet during the 5-year period beginning on the
date of enactment of this Act.
(2) Data collection.--The Administrator of General Services
shall collect data regarding--
(A) the cost, performance, and use of plug-in
electric drive vehicles in the Federal fleet;
(B) the deployment and integration of plug-in
electric drive vehicles in the Federal fleet; and
(C) the contribution of plug-in electric drive
vehicles in the Federal fleet toward reducing the use
of fossil fuels and greenhouse gas emissions.
(3) Report.--Not later than 6 years after the date of
enactment of this Act, the Administrator of General Services
shall submit to the appropriate committees of Congress a report
that--
(A) describes the status of plug-in electric drive
vehicles in the Federal fleet; and
(B) includes an analysis of the data collected
under this subsection.
(4) Public website.--The Federal Energy Management Program
shall maintain and regularly update a publicly available
website that provides information on the status of plug-in
electric vehicles in the Federal fleet.
(f) Authorization of Appropriations.--There is authorized to be
appropriated for the Federal Government to pay for incremental costs to
purchase or lease plug-in electric drive vehicles and the requisite
charging infrastructure for Federal fleets $25,000,000.
SEC. 309. ADVANCED BATTERIES FOR TOMORROW PRIZE.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, as part of the program described in section 1008 of the
Energy Policy Act of 2005 (42 U.S.C. 16396), the Secretary shall
establish the Advanced Batteries for Tomorrow Prize to competitively
award cash prizes in accordance with this section to advance the
research, development, demonstration, and commercial application of a
500-mile vehicle battery.
(b) Battery Specifications.--
(1) In general.--To be eligible for the Prize, a battery
submitted by an entrant shall be--
(A) able to power a plug-in electric drive vehicle
authorized to travel on the United States Federal-aid
system of highways for at least 500 miles before
recharging;
(B) of a size that would not be cost-prohibitive or
create space constraints, if mass-produced; and
(C) cost-effective (measured in cost per kilowatt
hour), if mass-produced.
(2) Additional requirements.--The Secretary, in
consultation with the Committee, shall establish any additional
battery specifications that the Secretary and the Committee
determine to be necessary.
(c) Private Funds.--
(1) In general.--Subject to paragraph (2) and
notwithstanding section 3302 of title 31, United States Code,
the Secretary may accept, retain, and use funds contributed by
any person, government entity, or organization for purposes of
carrying out this subsection--
(A) without further appropriation; and
(B) without fiscal year limitation.
(2) Restriction on participation.--An entity providing
private funds for the Prize may not participate in the
competition for the Prize.
(d) Technical Review.--The Secretary, in consultation with the
Committee, shall establish a technical review committee composed of
non-Federal officers to review data submitted by Prize entrants under
this section and determine whether the data meets the prize
specifications described in subsection (b).
(e) Third Party Administration.--The Secretary may select, on a
competitive basis, a third party to administer awards provided under
this section.
(f) Eligibility.--To be eligible for an award under this section--
(1) in the case of a private entity, the entity shall be
incorporated in and maintain a primary place of business in the
United States; and
(2) in the case of an individual (whether participating as
a single individual or in a group), the individual shall be a
citizen or lawful permanent resident of the United States.
(g) Award Amounts.--
(1) In general.--Subject to the availability of funds to
carry out this section, the amount of the Prize shall be
$10,000,000.
(2) Breakthrough achievement awards.--In addition to the
award described in paragraph (1), the Secretary, in
consultation with the technical review committee established
under subsection (d), may award cash prizes in recognition of
breakthrough achievements in research, development,
demonstration, and commercial application of activities
described in subsection (b).
(h) 500-Mile Battery Award Fund.--
(1) Establishment.--There is established in the Treasury of
the United States a fund to be known as the ``500-mile Battery
Fund'' (referred to in this section as the ``Fund''), to be
administered by the Secretary, to be available without fiscal
year limitation and subject to appropriation, to award amounts
under this section.
(2) Transfers to fund.--The Fund shall consist of--
(A) such amounts as are appropriated to the Fund
under subsection (i); and
(B) such amounts as are described in subsection (c)
and that are provided for the Fund.
(3) Prohibition.--Amounts in the Fund may not be made
available for any purpose other than a purposes described in
subsection (a).
(4) Annual reports.--
(A) In general.--Not later than 60 days after the
end of each fiscal year beginning with fiscal year
2012, the Secretary shall submit a report on the
operation of the Fund during the fiscal year to--
(i) the Committees on Appropriations of the
House of Representatives and of the Senate;
(ii) the Committee on Energy and Natural
Resources of the Senate; and
(iii) the Committee on Energy and Commerce
of the House of Representatives.
(B) Contents.--Each report shall include, for the
fiscal year covered by the report, the following:
(i) A statement of the amounts deposited
into the Fund.
(ii) A description of the expenditures made
from the Fund for the fiscal year, including
the purpose of the expenditures.
(iii) Recommendations for additional
authorities to fulfill the purpose of the Fund.
(iv) A statement of the balance remaining
in the Fund at the end of the fiscal year.
(5) Separate appropriations account.--Section 1105(a) of
title 31, United States Code, is amended--
(A) by redesignating paragraphs (35) and (36) as
paragraphs (36) and (37), respectively;
(B) by redesignating the second paragraph (33)
(relating to obligational authority and outlays
requested for homeland security) as paragraph (35); and
(C) by adding at the end the following:
``(LL) a separate statement for the 500-mile
Battery Fund established under section 8(h) of the `Oil
Independence for a Stronger America Act of 2010', which
shall include the estimated amount of deposits into the
Fund, obligations, and outlays from the Fund.''.
(i) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000.
SEC. 310. RESEARCH AND DEVELOPMENT PROGRAM.
(a) Research and Development Program.--
(1) In general.--The Secretary, in consultation with the
Committee, shall establish a program to fund research and
development in advanced batteries, electric drive vehicle
components, electric drive infrastructure, and other
technologies supporting the development, manufacture, and
deployment of electric drive vehicles and charging
infrastructure.
(2) Use of funds.--The program may include funding for--
(A) the development of low-cost, smart-charging and
vehicle-to-grid connectivity technology;
(B) the benchmarking and assessment of open
software systems using nationally established
evaluation criteria; and
(C) new technologies in electricity storage for
vehicles.
(3) Report.--Not later than 4 years after the date of
enactment of this Act, the Secretary shall submit to Congress a
report describing the status of the program described in
paragraph (1).
(b) Secondary Use Applications Program.--
(1) In general.--The Secretary, in consultation with the
Committee, shall carry out a research, development, and
demonstration program that builds upon any work carried out
under section 915 of the Energy Policy Act of 2005 (42 U.S.C.
16195) and--
(A) identifies possible uses of a vehicle battery
after the useful life of the battery in a vehicle has
been exhausted;
(B) assesses the potential for markets for uses
described in subparagraph (A) to develop, as well as
any barriers to the development of the markets; and
(C) identifies the potential uses of a vehicle
battery--
(i) with the most promise for market
development; and
(ii) for which market development would be
aided by a demonstration project.
(2) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to the
appropriate committees of Congress an initial report on the
findings of the program described in paragraph (1), including
recommendations for stationary energy storage and other
potential applications for batteries used in plug-in electric
drive vehicles.
(c) Demonstration Projects.--
(1) In general.--Based on the results of the program
described in subsection (b), the Secretary, in consultation
with the Committee, shall develop guidelines for projects that
demonstrate the secondary uses of vehicle batteries.
(2) Publication of guidelines.--Not later than 30 months
after the date of enactment of this Act, the Secretary shall--
(A) publish the guidelines described in paragraph
(1); and
(B) solicit applications for funding for
demonstration projects.
(3) Grant program.--Not later than 38 months after the date
of enactment of this Act, the Secretary shall select proposals
for grant funding under this section, based on an assessment of
which proposals are mostly likely to contribute to the
development of a secondary market for batteries.
(d) Materials Recycling Study.--
(1) In general.--The Secretary, in consultation with the
Committee, shall carry out a study on the recycling of
materials from plug-in electric drive vehicles and the
batteries used in plug-in electric drive vehicles.
(2) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to the
appropriate committees of Congress a report on the findings of
the study described in paragraph (1).
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $1,530,000,000, including--
(1) $1,500,000,000 for use in conducting the program
described in subsection (a) for fiscal years 2011 through 2020;
(2) $5,000,000 for use in conducting the program described
in subsection (b) for fiscal years 2011 through 2016; and
(3) $25,000,000 for use in providing grants described in
subsection (c) for fiscal years 2011 through 2020.
SEC. 311. STUDY ON THE SUPPLY OF RAW MATERIALS.
(a) In General.--The Secretary of the Interior, in consultation
with the Secretary and the Task Force, shall conduct a study that--
(1) identifies the raw materials needed for the manufacture
of plug-in electric drive vehicles, batteries, and other
components for plug-in electric drive vehicles, and for the
infrastructure needed to support plug-in electric drive
vehicles;
(2) describes the primary or original sources and known
reserves and resources of those raw materials;
(3) assesses, in consultation with the National Academy of
Sciences, the degree of risk to the manufacture, maintenance,
deployment, and use of plug-in electric drive vehicles
associated with the supply of those raw materials; and
(4) identifies pathways to securing reliable and resilient
supplies of those raw materials.
(b) Report.--Not later than 3 years after the date of enactment of
this Act, the Secretary of the Interior shall submit to Congress a
report that describes the results of the study.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this subsection $1,500,000.
SEC. 312. PLUG-IN ELECTRIC DRIVE VEHICLE TECHNICAL ADVISORY COMMITTEE.
(a) In General.--There is established the Plug-in Electric Drive
Vehicle Technical Advisory Committee to advise the Secretary on the
programs and activities under this title.
(b) Mission.--The mission of the Committee shall be to advise the
Secretary on technical matters, including--
(1) the priorities for research and development;
(2) means of accelerating the deployment of safe,
economical, and efficient plug-in electric drive vehicles for
mass market adoption;
(3) the development and deployment of charging
infrastructure;
(4) the development of uniform codes, standards, and safety
protocols for plug-in electric drive vehicles and charging
infrastructure; and
(5) reporting on the competitiveness of the United States
in plug-in electric drive vehicle and infrastructure research,
manufacturing, and deployment.
(c) Membership.--
(1) Members.--
(A) In general.--The Committee shall consist of not
less than 12, but not more than 25, members.
(B) Representation.--The Secretary shall appoint
the members to Committee from among representatives
of--
(i) domestic industry;
(ii) institutions of higher education;
(iii) professional societies;
(iv) Federal, State, and local governmental
agencies (including the National Laboratories);
and
(v) financial, transportation, labor,
environmental, or other appropriate
organizations, as the Secretary determines to
be necessary.
(2) Terms.--
(A) In general.--The term of a Committee member
shall not be longer than 3 years.
(B) Staggered terms.--The Secretary may appoint
members to the Committee for differing term lengths to
ensure continuity in the functioning of the Committee.
(C) Reappointments.--A member of the Committee
whose term is expiring may be reappointed.
(3) Chairperson.--The Committee shall have a chairperson,
who shall be elected by and from the members.
(d) Review.--The Committee shall review and make recommendations to
the Secretary on the implementation of programs and activities under
this title.
(e) Response.--
(1) In general.--The Secretary shall consider and may adopt
any recommendation of the Committee under subsection (c).
(2) Biennial report.--
(A) In general.--Not later than 2 years after the
date of enactment of this Act and every 2 years
thereafter, the Secretary shall submit to the
appropriate committees of Congress a report describing
any new recommendations of the Committee.
(B) Contents.--The report shall include--
(i) a description of the manner in which
the Secretary has implemented or plans to
implement the recommendations of the Committee;
or
(ii) an explanation of the reason that a
recommendation of the Committee has not been
implemented.
(C) Timing.--The report described in this paragraph
shall be submitted by the Secretary at the same time
the President submits the budget proposal for the
Department of Energy to Congress.
(f) Coordination.--The Committee shall hold joint annual meetings
with the Hydrogen and Fuel Cell Technical Advisory Committee
established by section 807 of the Energy Policy Act of 2005 (42 U.S.C.
16156) to help coordinate the work and recommendations of the
Committees.
(g) Support.--The Secretary shall provide to the Committee the
resources necessary to carry out this section, as determined to be
necessary by the Secretary.
SEC. 313. PLUG-IN ELECTRIC DRIVE VEHICLE INTERAGENCY TASK FORCE.
(a) In General.--Not later than 120 days after the date of
enactment of this Act, the President shall establish the Plug-in
Electric Drive Vehicle Interagency Task Force, to be chaired by the
Secretary and which shall consist of at least 1 representative from
each of--
(1) the Office of Science and Technology Policy;
(2) the Council on Environmental Quality;
(3) the Department of Energy;
(4) the Department of Transportation;
(5) the Department of Defense;
(6) the Department of Commerce (including the National
Institute of Standards and Technology);
(7) the Environmental Protection Agency;
(8) the General Services Administration; and
(9) any other Federal agencies that the President
determines to be appropriate.
(b) Mission.--The mission of the Task Force shall be to ensure
awareness, coordination, and integration of the activities of the
Federal Government relating to electric drive vehicles, including--
(1) plug-in electric drive vehicle research and development
(including necessary components);
(2) the development of widely accepted smart-grid standards
and protocols for charging infrastructure;
(3) the relationship of plug-in electric drive vehicle
charging practices to electric utility regulation;
(4) the relationship of plug-in electric drive vehicle
deployment to system reliability and security;
(5) the general deployment of plug-in electric drive
vehicles in the Federal, State, and local governments and for
private use;
(6) the development of uniform codes, standards, and safety
protocols for plug-in electric drive vehicles and charging
infrastructure; and
(7) the alignment of international plug-in electric drive
vehicle standards.
(c) Activities.--
(1) In general.--In carrying out this section, the Task
Force may--
(A) organize workshops and conferences;
(B) issue publications; and
(C) create databases.
(2) Mandatory activities.--In carrying out this section,
the Task Force shall--
(A) foster the exchange of generic, nonproprietary
information and technology among industry, academia,
and the Federal Government;
(B) integrate and disseminate technical and other
information made available as a result of the programs
and activities under this title;
(C) support education about plug-in electric drive
vehicles;
(D) monitor, analyze, and report on the effects of
plug-in electric drive vehicle deployment on the
environment and public health, including air emissions
from vehicles and electricity generating units; and
(E) review and report on--
(i) opportunities to use Federal programs
(including laws, regulations, and guidelines)
to promote the deployment of plug-in electric
drive vehicles; and
(ii) any barriers to the deployment of
plug-in electric drive vehicles, including
barriers that are attributable to Federal
programs (including laws, regulations, and
guidelines).
(d) Agency Cooperation.--A Federal agency--
(1) shall cooperate with the Task Force; and
(2) provide, on request of the Task Force, appropriate
assistance in carrying out this section, in accordance with
applicable Federal laws (including regulations).
SEC. 314. PROHIBITION ON DISPOSING OF ADVANCED BATTERIES IN LANDFILLS.
An advanced battery from a plug-in electric drive vehicle shall be
disposed of in accordance with the Mercury-Containing and Rechargeable
Battery Management Act (42 U.S.C. 14301 et seq.).
SEC. 315. LOAN GUARANTEES FOR ADVANCED BATTERY PURCHASES FOR USE IN
STATIONARY APPLICATIONS.
Subtitle B of title I of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17011 et seq.) is amended by adding at the end the
following:
``SEC. 137. LOAN GUARANTEES FOR ADVANCED BATTERY PURCHASES.
``(a) Definitions.--In this section:
``(1) Qualified automotive battery.--The term `qualified
automotive battery' means a battery that--
``(A) has at least 4 kilowatt hours of battery
capacity; and
``(B) is designed for use in qualified plug-in
electric drive motor vehicles but is purchased for
nonautomotive applications.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) an original equipment manufacturer;
``(B) an electric utility;
``(C) any provider of range extension
infrastructure; or
``(D) any other qualified entity, as determined by
the Secretary.
``(b) Loan Guarantees.--
``(1) In general.--The Secretary shall guarantee loans made
to eligible entities for the aggregate purchase of not less
than 200 qualified automotive batteries in a calendar year that
have a total minimum power rating of 1 megawatt and use
advanced battery technology.
``(2) Restriction.--As a condition of receiving a loan
guarantee under this section, an entity purchasing qualified
automotive batteries with loan funds guaranteed under this
section shall comply with the provisions of the Buy American
Act (41 U.S.C. 10a et seq.).
``(c) Regulations.--The Secretary shall promulgate such regulations
as are necessary to carry out this section.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000.''.
SEC. 316. MODEL UPDATING BUILDING CODES, PERMITTING AND INSPECTION
PROCESSES, AND ZONING OR PARKING RULES.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall develop and publish--
(1) model building codes for the inclusion of separate
circuits for charging infrastructure, as appropriate, in new
construction and major renovations of private residences,
buildings, or other structures that could provide publicly
available charging infrastructure;
(2) model construction permitting or inspection processes
that allow for the expedited installation of charging
infrastructure for purchasers of electric drive vehicles
(including a permitting process that allows a vehicle purchaser
to have charging infrastructure installed the same day a
vehicle is purchased); and
(3) model zoning, parking rules, or other local ordinances
that--
(A) facilitate the installation of publicly
available charging infrastructure; and
(B) allow for access to publicly available charging
infrastructure.
(b) Optional Adoption.--An applicant for selection as a deployment
community under section 303 shall not be required to use the model
building codes, permitting and inspection processes, or zoning, parking
rules, or other ordinances described in the report published under
subsection (a).
(c) Smart Grid Integration.--In developing the model codes or
ordinances described in subsection (a), the Secretary shall take into
account smart grid integration.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $1,000,000.
SEC. 317. WORKFORCE TRAINING.
(a) Maintenance and Support.--
(1) In general.--The Secretary, in consultation with the
Committee and the Task Force, shall award grants to
institutions of higher education and other qualified training
and education institutions for the establishment of programs to
provide training and education for vocational workforce
development through centers of excellence.
(2) Purpose.--Training funded under this subsection shall
be intended to ensure that the workforce has the necessary
skills needed to maintain plug-in electric drive vehicles and
the infrastructure required to support plug-in electric drive
vehicles.
(3) Scope.--Training funded under this subsection shall
include training for--
(A) first responders;
(B) electricians and contractors who will be
installing infrastructure;
(C) engineers;
(D) code inspection officials; and
(E) dealers and mechanics.
(b) Design.--The Secretary shall award grants to institutions of
higher education and other qualified training and education
institutions for the establishment of programs to provide training and
education in designing plug-in electric drive vehicles and associated
components and infrastructure to ensure that the United States can lead
the world in this field.
(c) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to Congress a report on the
implementation of the training programs under this section.
(d) Authorization of Appropriations.--There are authorized to be
appropriated $250,000,000 to carry out this section.
SEC. 318. CREDIT FOR GRID-INTERACTIVE PLUG-IN VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 30E. QUALIFIED GRID-INTERACTIVE PLUG-IN VEHICLES.
``(a) In General.--There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to the
lesser of--
``(1) 50 percent of the cost of any qualified grid-
interactive plug-in vehicle placed in service by the taxpayer
during the taxable year, or
``(2) $25,000.
``(b) Limitation on Number of Qualified Grid-Interactive Plug-In
Vehicles.--No credit shall be allowed with respect to any qualified
grid-interactive plug-in vehicle placed in service after the calendar
quarter in which the number of qualified grid-interactive vehicles
placed in service in the United States after the date of the enactment
of this section is at least 6,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to property of a
character subject to an allowance for depreciation shall be
treated as a credit listed in section 38(b) for such taxable
year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the
credit allowed under subsection (a) for any taxable
year (determined after application of paragraph (1))
shall be treated as a credit allowable under subpart A
for such taxable year.
``(B) Limitation based on amount of tax.--In the
case of a taxable year to which section 26(a)(2) does
not apply, the credit allowed under subsection (a) for
any taxable year (determined after application of
paragraph (1)) shall not exceed the excess of--
``(i) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax
imposed by section 55, over
``(ii) the sum of the credits allowable
under subpart A (other than this section and
sections 25D, 30, and 30D) and section 27 for
the taxable year.
``(d) Qualified Grid-Interactive Plug-In Vehicle.--For purposes of
this section, the term `qualified grid-interactive plug-in vehicle'
means any vehicle--
``(1) which--
``(A) is made by a manufacturer and originally
placed in service by the taxpayer, or
``(B) has been modified to meet the requirements of
paragraphs (3) and (4) by a qualified vehicle converter
and originally placed in service as a modified vehicle
by the taxpayer,
``(2) which is acquired for use or lease by the taxpayer
and not for resale,
``(3) which is propelled to a significant extent by an
electric motor which draws electricity from a traction battery
which--
``(A) has not less than 20 kilowatt hours of
traction battery storage, and
``(B) has not less than 12 kilowatt hours of
charging and discharging power capability at 240 volts,
``(4) which has hardware and software in place on the
vehicle necessary to allow a qualified aggregator to control
battery charging from and discharging to the electrical grid,
and
``(5) with respect to which the taxpayer has entered into a
contract or agreement with a qualified aggregator to provide
grid services for not less than 3 years.
``(e) Other Definitions.--For purposes of this section--
``(1) Manufacturer.--The term `manufacturer' has the
meaning given such term under section 30B.
``(2) Qualified vehicle converter.--The term `qualified
vehicle converter' means any person who is in the trade or
business of installing electric drive or grid interface
components in existing vehicles.
``(3) Qualified aggregator.--The term `qualified
aggregator' means any person who--
``(A) is in the trade or business of controlling
multiple qualified grid-interactive plug-in vehicles to
provide valuable grid services and paying owners of
those vehicles for the ability to control charging and
discharging of vehicle battery storage systems to the
grid, and
``(B) is either--
``(i) an Independent System Operator as
defined in section 3 of the Federal Power Act
(16 U.S.C. 796),
``(ii) a Regional Transmission Organization
as defined in such section 3,
``(iii) a load-serving entity, or
``(iv) an independent company who
accumulates grid services from a collection of
qualified grid-interactive plug-in vehicles.
``(4) Load-serving entity.--The term `load-serving entity'
means an electricity distribution company or utility company
that provides distribution and energy services for electricity
and electric customer services.
``(f) Special Rules.--
``(1) Basis reduction.--For purposes of this subtitle, the
basis of any property for which a credit is allowable under
subsection (a) shall be reduced by the amount of such credit so
allowed.
``(2) No double benefit.--
``(A) Coordination with credit for new qualified
plug-in electric vehicles.--No credit shall be allowed
under subsection (a) with respect to any vehicle for
which a credit is allowed under section 30D.
``(B) Other provisions.--The amount of any
deduction or credit (other than the credit allowed
under section 30D) allowable under this chapter for a
new qualified grid-interactive plug-in vehicle shall be
reduced by the amount of credit allowed under
subsection (a) for such vehicle.
``(3) Property used outside united states not qualified.--
No credit shall be allowable under subsection (a) with respect
to any property referred to in section 50(b)(1).
``(4) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit.
``(5) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(g) Termination.--This section shall not apply to property placed
in service after December 31, 2015.''.
(b) Conforming Amendments.--
(1) Section 38(a) of the Internal Revenue Code of 1986 is
amended by striking ``plus'' at the end of paragraph (35), by
striking the period at the end of paragraph (36) and inserting
``, plus'', and by adding at the end the following new
paragraph:
``(37) the portion of the qualified grid-interactive plug-
in vehicle credit to which section 30E(c)(1) applies.''.
(2) Section 1016(a) of such Code is amended by striking
``and'' at the end of paragraph (36), by striking the period at
the end of paragraph (37) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(38) to the extent provided in section 30E(f)(1).''.
(3) Section 6501(m) of such Code is amended by inserting
``30E(f)(5),'' after ``30D(e)(4),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code is amended by adding at
the end the following new item:
``Sec. 30E. Qualified grid-interactive plug-in vehicles.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
TITLE IV--TRANSPORTATION INFRASTRUCTURE
Subtitle A--Transportation Options for Families and Businesses
SEC. 401. OIL SAVINGS AND GREENHOUSE GAS EMISSION REDUCTIONS THROUGH
TRANSPORTATION EFFICIENCY.
(a) Environmental Protection Agency.--Part A of title II of the
Clean Air Act (42 U.S.C. 7521 et seq.) is amended by adding at the end
the following:
``SEC. 220. OIL SAVINGS AND GREENHOUSE GAS EMISSION REDUCTIONS THROUGH
TRANSPORTATION EFFICIENCY.
``(a) In General.--The Administrator, in consultation with the
Secretary of Transportation (referred to in this section as the
`Secretary'), shall promulgate, and update from time to time,
regulations to establish--
``(1) national transportation-related goals for reducing
oil consumption and greenhouse gas emissions that are
commensurate with the emission reduction targets established
under the Oil Independence for a Stronger America Act of 2010
and the amendments made by that Act;
``(2) standardized models and related methods, to be used
by States, metropolitan planning organizations, and air quality
agencies to address oil savings and emission reduction goals,
including--
``(A) the development of surface transportation-
related oil savings and greenhouse gas emission
reduction targets pursuant to sections 134 and 135 of
title 23, and sections 5303 and 5304 of title 49,
United States Code;
``(B) the assessment of projected surface
transportation-related oil consumption and greenhouse
gas emissions from transportation strategies;
``(C) the assessment of projected surface
transportation-related oil consumption and greenhouse
gas emissions from State and regional transportation
plans;
``(D) the establishment of surface transportation-
related oil consumption and greenhouse gas emission
baselines at national, State, and regional levels; and
``(E) the measurement and assessment of actual
surface transportation-related oil consumption and
emissions to assess progress toward achievement of oil
savings and emission targets at the State and regional
levels;
``(3) methods for collection of data on transportation-
related oil consumption and greenhouse gas emissions; and
``(4) publication and distribution of successful strategies
employed by States, Indian tribes, metropolitan planning
organizations, and other entities to reduce transportation-
related oil consumption and greenhouse gas emissions.
``(b) Role of Department of Transportation.--The Secretary, in
consultation with the Administrator, shall promulgate, and update from
time to time, regulations--
``(1) to improve the ability of transportation planning
models and tools, including travel demand models, to address
oil consumption and greenhouse gas emissions;
``(2) to assess projected surface transportation-related
travel activity and transportation strategies from State and
regional transportation plans; and
``(3) to update transportation planning requirements and
approval of transportation plans as necessary to carry out this
section.
``(c) Consultation and Models.--In promulgating the regulations,
the Administrator and the Secretary--
``(1) shall consult with States, Indian tribes,
metropolitan planning organizations, and air quality agencies;
``(2) may use existing models and methodologies if the
models and methodologies are widely considered to reflect the
best practicable modeling or methodological approach for
assessing actual and projected transportation-related oil
consumption and greenhouse gas emissions from transportation
plans and projects; and
``(3) shall consider previously developed plans that were
based on models and methodologies for reducing oil consumption
and greenhouse gas emissions in applying those regulations to
the first approvals after promulgation.
``(d) Timing.--The Administrator and the Secretary shall--
``(1) publish proposed regulations under subsections (a)
and (b) not later than 1 year after the date of enactment of
this section; and
``(2) promulgate final regulations under subsections (a)
and (b) not later than 18 months after the date of enactment of
this section.
``(e) Assessment.--
``(1) In general.--At least every 6 years after
promulgating final regulations under subsections (a) and (b),
the Administrator and the Secretary shall jointly assess
current and projected progress in reducing national
transportation-related oil consumption and greenhouse gas
emissions.
``(2) Requirements.--The assessment shall--
``(A) examine the contributions to emission
reductions attributable to--
``(i) improvements in vehicle efficiency;
``(ii) greenhouse gas performance of
transportation fuels;
``(iii) reductions in vehicle miles
traveled;
``(iv) changes in consumer demand and use
of transportation management systems; and
``(v) any other greenhouse gas-related
transportation policies enacted by Congress;
and
``(B) include an analysis of the impact of the
investments made by each State and metropolitan
planning organization through the applicable statewide
transportation improvement program and transportation
improvement program, respectively, over the most recent
6-year period on reducing transportation-related
greenhouse gas emissions and oil consumption.
``(3) State departments of transportation.--The Secretary
shall issue guidance to establish procedures for State
departments of transportation to collect and report the data
required for the Secretary to carry out the assessment.
``(4) Results of assessment.--The Secretary and the
Administrator shall consider--
``(A) the results of the assessment conducted under
this subsection; and
``(B) based on those results, whether technical or
other updates to regulations required under this
section and sections 134 and 135 of title 23, and
sections 5303 and 5304 of title 49, United States Code,
are necessary.''.
(b) Metropolitan Planning Organizations.--
(1) Title 23.--Section 134 of title 23, United States Code,
is amended--
(A) in subsection (a)(1)--
(i) by striking ``minimizing'' and
inserting ``reducing''; and
(ii) by inserting ``, reliance on oil,
impacts on the environment, transportation-
related greenhouse gas emissions,'' after
``consumption'';
(B) in subsection (h)(1)(E)--
(i) by inserting ``sustainability, and
livability, reduce surface transportation-
related reliance on oil and greenhouse gas
emissions, adapt to the effects of climate
change,'' after ``energy conservation,'';
(ii) by inserting ``and public health''
after ``quality of life''; and
(iii) by inserting ``, including housing
and land use patterns'' after ``development
patterns'';
(C) in subsection (i)--
(i) in paragraph (4)(A)--
(I) by striking ``consult, as
appropriate,'' and inserting
``cooperate'';
(II) by inserting ``transportation,
public transportation, air quality,
energy, and housing, and shall consult,
as appropriate, with State and local
agencies and Indian tribes responsible
for'' after ``responsible for''; and
(III) by inserting ``public
health,'' after ``conservation,''; and
(ii) in paragraph (5)(C)(iii), by inserting
``and through the website of the metropolitan
planning organization, including oil savings
and emission reduction targets and strategies
developed under subsection (k)(6), including an
analysis of the anticipated effects of the
targets and strategies,'' after ``World Wide
Web'';
(D) in subsection (j)(5)(A), by striking
``subsection (k)(4)'' and inserting ``subsection
(k)(5)''; and
(E) in subsection (k)--
(i) by redesignating paragraphs (1) through
(5) as paragraphs (2) through (6),
respectively;
(ii) by inserting before paragraph (2) (as
so redesignated) the following:
``(1) Definitions.--In this subsection:
``(A) Metropolitan planning organization.--The term
`metropolitan planning organization' means a
metropolitan planning organization described in clause
(i) or (ii) of paragraph (7)(B).
``(B) Scenario analysis.--The term `scenario
analysis' means the use of a planning tool that--
``(i) develops a range of scenarios
representing various combinations of
transportation strategies, land use strategies,
and development patterns, estimates of how each
of those scenarios would perform in meeting the
oil savings and greenhouse gas emission
reduction targets based on analysis of various
forces (such as health, transportation,
economic or environmental factors, and land
use) that affect growth;
``(ii) includes features such as--
``(I) the involvement of the
general public, key stakeholders, and
elected officials on a broad scale;
``(II) the creation of an
opportunity for those participants to
educate each other as to growth trends
and trade-offs, as a means to
incorporate values and feedback into
future plans; and
``(III) the use of continuing
efforts and ongoing processes; and
``(iii) may include key elements such as--
``(I) identification of the
considerations shaping planning
decisions and outcomes;
``(II) determination of patterns of
interaction;
``(III) creation of scenarios for
discussion purposes;
``(IV) analysis of implications;
``(V) evaluation of scenarios; and
``(VI) use of monitoring
indicators.''; and
(iii) by adding at the end the following:
``(7) Transportation oil savings and greenhouse gas
reduction efforts.--
``(A) In general.--Within a metropolitan planning
area serving a transportation management area, the
transportation planning process under this section
shall address transportation-related oil consumption
and greenhouse gas emissions by including oil savings
and emission reduction targets and strategies to meet
those targets.
``(B) Eligible organizations.--
``(i) MPOs within tmas.--All provisions and
requirements of this section, including the
requirements for transportation oil savings and
greenhouse gas reduction efforts, shall apply
to metropolitan planning organizations that
also serve as transportation management areas.
``(ii) Other mpos.--A metropolitan planning
organization that does not serve as a
transportation management area--
``(I) may develop transportation
oil savings and greenhouse gas emission
reduction targets and strategies to
meet those targets; and
``(II) if those targets and
strategies are developed, shall be
subject to all applicable provisions
and requirements of this section and
the Oil Independence for a Stronger
America Act of 2010 and amendments made
by that Act, including requirements of
the transportation oil savings and
greenhouse gas reduction efforts.
``(C) Establishment of targets and criteria.--
``(i) In general.--Not later than 2 years
after the promulgation of the final regulations
required under section 220 of the Clean Air
Act, each metropolitan planning organization
that also serves as a transportation management
area shall develop surface transportation-
related oil savings and greenhouse gas emission
reduction targets, as well as strategies to
meet those targets, in consultation with State
air agencies and Indian tribes as part of the
metropolitan transportation planning process
under this section.
``(ii) Multiple designations.--If more than
1 metropolitan planning organization has been
designated within a metropolitan area, each
metropolitan planning organization shall
coordinate with other metropolitan planning
organizations in the same metropolitan area to
develop the targets and strategies described in
clause (i).
``(iii) Minimum requirements.--Each
metropolitan transportation plan developed by a
metropolitan planning organization under clause
(i) shall, within the plan, demonstrate
progress in stabilizing and reducing
transportation-related oil consumption and
greenhouse gas emissions so as to contribute to
the achievement of State targets pursuant to
section 135(f)(9).
``(iv) Requirements for targets and
strategies.--The targets and strategies
developed as part of a plan under this
subparagraph shall, at a minimum--
``(I) be based on the oil
consumption and emission and travel
demand models and related methodologies
established in the final regulations
required under section 220 of the Clean
Air Act;
``(II) inventory all sources of
surface transportation-related oil
consumption and greenhouse gas
emissions;
``(III) apply to those modes of
surface transportation that are
addressed in the planning process under
this section;
``(IV) be integrated and consistent
with regional transportation plans and
transportation improvement programs;
and
``(V) be selected through scenario
analysis, and include, pursuant to the
requirements of the transportation
planning process under this section,
transportation investment and
management strategies that reduce oil
consumption and greenhouse gas
emissions from the transportation
sector over the life of the plan, such
as--
``(aa) efforts to increase
public transportation
ridership, including through
service improvements, capacity
expansions, and access
enhancement;
``(bb) efforts to increase
walking, bicycling, and other
forms of nonmotorized
transportation;
``(cc) implementation of
zoning and other land use
regulations and plans to
support infill, transit-
oriented development,
redevelopment, or mixed use
development;
``(dd) travel demand
management programs (including
carpool, vanpool, or car-share
projects), transportation
pricing measures, parking
policies, and programs to
promote telecommuting, flexible
work schedules, and satellite
work centers;
``(ee) highway and transit
operational improvements,
including intelligent
transportation systems or other
operational improvements to
reduce long-term oil
consumption and greenhouse gas
emissions through reduced
congestion and improved system
management;
``(ff) intercity passenger
rail improvements;
``(gg) high-speed rail
improvements and programs;
``(hh) intercity bus
improvements;
``(ii) freight rail
improvements;
``(jj) use of materials or
equipment associated with the
construction or maintenance of
transportation projects that
reduce oil consumption and
greenhouse gas emissions;
``(kk) public facilities
for supplying electricity to
electric or plug-in hybrid-
electric vehicles;
``(ll) local street network
improvements; and
``(mm) any other effort
that demonstrates progress in
reducing transportation-related
oil consumption and greenhouse
gas emissions in each
metropolitan planning
organization under this
subsection.
``(v) Identification of projects and
strategies.--The plan developed under this
section shall include a list of projects and
strategies based on the targets and strategies
identified under clause (iv).
``(D) Review and approval.--Not later than 180 days
after the date of submission of a plan under this
section--
``(i) the Secretary and the Administrator
shall review the plan; and
``(ii) the Secretary shall make a
determination that the plan submitted by a
metropolitan planning organization meets the
requirements of subparagraph (C) if--
``(I) the Secretary finds that a
metropolitan planning organization has
developed, submitted, and published the
plan of the metropolitan planning
organization pursuant to this section;
``(II) the Secretary, in
consultation with the Administrator,
determines that the plan is likely to
achieve the targets established by the
metropolitan planning organization
under this subsection; and
``(III) the development of the plan
complies with the minimum requirements
established under clauses (iii) and
(iv) of subparagraph (C).
``(E) Certification.--
``(i) In general.--Only metropolitan
planning organizations that meet the
requirements of subparagraph (C) shall be
eligible to receive performance grants under
section 402(c) of the Oil Independence for a
Stronger America Act of 2010.
``(ii) Failure to comply.--Failure to
comply with the requirements under subparagraph
(C) shall not impact certification standards
under paragraph (6).''.
(2) Title 49.--Section 5303 of title 49, United States
Code, is amended--
(A) in subsection (a)(1)--
(i) by striking ``minimizing'' and
inserting ``reducing''; and
(ii) by inserting ``, reliance on oil,
impacts on the environment, transportation-
related greenhouse gas emissions,'' after
``consumption'';
(B) in subsection (h)(1)(E)--
(i) by inserting ``sustainability, and
livability, reduce surface transportation-
related reliance on oil and greenhouse gas
emissions, adapt to the effects of climate
change,'' after ``energy conservation,'';
(ii) by inserting ``and public health''
after ``quality of life''; and
(iii) by inserting ``, including housing
and land use patterns'' after ``development
patterns'';
(C) in subsection (i)--
(i) in paragraph (4)(A)--
(I) by striking ``consult, as
appropriate,'' and inserting
``cooperate'';
(II) by inserting ``transportation,
public transportation, air quality,
energy, and housing, and shall consult,
as appropriate, with State and local
agencies and Indian tribes responsible
for'' after ``responsible for'' and
(III) by inserting ``public
health,'' after ``conservation,''; and
(ii) in paragraph (5)(C)(iii), by inserting
``and through the website of the metropolitan
planning organization, including oil savings
and emission reduction targets and strategies
developed under subsection (k)(6), including an
analysis of the anticipated effects of the
targets and strategies,'' after ``World Wide
Web''; and
(D) in subsection (k)--
(i) by redesignating paragraphs (1) through
(5) as paragraphs (2) through (6),
respectively;
(ii) by inserting before paragraph (2) (as
so redesignated) the following:
``(1) Definition of metropolitan planning organization.--In
this subsection, the term `metropolitan planning organization'
means a metropolitan planning organization described in clause
(i) or (ii) of paragraph (7)(B).''; and
(iii) by adding at the end the following:
``(7) Transportation oil savings and greenhouse gas
reduction efforts.--
``(A) In general.--Within a metropolitan planning
area serving a transportation management area, the
transportation planning process under this section
shall address transportation-related oil consumption
and greenhouse gas emissions by including oil savings
and emission reduction targets and strategies to meet
those targets.
``(B) Eligible organizations.--
``(i) In general.--The requirements of the
transportation greenhouse gas reduction efforts
shall apply only to metropolitan planning
organizations within a transportation
management area.
``(ii) Development of plan.--A metropolitan
planning organization that does not serve as a
transportation management area--
``(I) may develop transportation
oil savings and greenhouse gas emission
reduction targets and strategies to
meet those targets; and
``(II) if those targets and
strategies are developed, shall be
subject to all provisions and
requirements of this section, including
requirements of the transportation oil
savings and greenhouse gas reduction
efforts.
``(C) Establishment of targets and criteria.--
``(i) In general.--Not later than 2 years
after the promulgation of the final regulations
required under section 220 of the Clean Air
Act, each metropolitan planning organization
shall develop surface transportation-related
oil savings and greenhouse gas emission
reduction targets, as well as strategies to
meet those targets, in consultation with State
air agencies and Indian tribes as part of the
metropolitan transportation planning process
under this section.
``(ii) Multiple designations.--If more than
1 metropolitan planning organization has been
designated within a metropolitan area, each
metropolitan planning organization shall
coordinate with other metropolitan planning
organizations in the same metropolitan area to
develop the targets and strategies described in
clause (i).
``(iii) Minimum requirements.--Each
metropolitan transportation plan developed by a
metropolitan planning organization under clause
(i) shall, within the plan, demonstrate
progress in stabilizing and reducing
transportation-related oil consumption and
greenhouse gas emissions so as to contribute to
the achievement of State targets pursuant to
section 135(f)(9) of title 23.
``(iv) Requirements for targets and
strategies.--The targets and strategies
developed as part of a plan under this
subparagraph shall, at a minimum--
``(I) be based on the oil
consumption and emission models and
related methodologies established in
the final regulations required under
section 220 of the Clean Air Act;
``(II) inventory all sources of
surface transportation-related oil
consumption and greenhouse gas
emissions;
``(III) apply to those modes of
surface transportation that are
addressed in the planning process under
this section;
``(IV) be integrated and consistent
with regional transportation plans and
transportation improvement programs;
and
``(V) be selected through scenario
analysis (as defined in section
134(k)(1) of title 23), and include,
pursuant to the requirements of the
transportation planning process under
this section, transportation investment
and management strategies that reduce
oil consumption and greenhouse gas
emissions from the transportation
sector over the life of the plan, such
as--
``(aa) efforts to increase
public transportation
ridership, including through
service improvements, capacity
expansions, and access
enhancement;
``(bb) efforts to increase
walking, bicycling, and other
forms of nonmotorized
transportation;
``(cc) implementation of
zoning and other land use
regulations and plans to
support infill, transit-
oriented development,
redevelopment, or mixed use
development;
``(dd) travel demand
management programs (including
carpool, vanpool, or car-share
projects), transportation
pricing measures, parking
policies, and programs to
promote telecommuting, flexible
work schedules, and satellite
work centers;
``(ee) highway and transit
operational improvements,
including intelligent
transportation systems or other
operational improvements to
reduce long-term oil
consumption and greenhouse gas
emissions through reduced
congestion and improved system
management;
``(ff) intercity passenger
rail improvements;
``(gg) high-speed rail
improvements and programs;
``(hh) intercity bus
improvements;
``(ii) freight rail
improvements;
``(jj) use of materials or
equipment associated with the
construction or maintenance of
transportation projects that
reduce oil consumption and
greenhouse gas emissions;
``(kk) public facilities
for supplying electricity to
electric or plug-in hybrid-
electric vehicles;
``(ll) local street network
improvements; and
``(mm) any other effort
that demonstrates progress in
reducing transportation-related
oil consumption and greenhouse
gas emissions in each
metropolitan planning
organization under this
subsection.
``(v) Identification of projects and
strategies.--The plan developed under this
section shall include a list of projects and
strategies based on the targets and strategies
identified under clause (iv).
``(D) Review and approval.--Not later than 180 days
after the date of submission of a plan under this
section--
``(i) the Secretary and the Administrator
shall review the plan; and
``(ii) the Secretary shall make a
determination that the plan submitted by a
metropolitan planning organization meets the
requirements of subparagraph (C) if--
``(I) the Secretary finds that a
metropolitan planning organization has
developed, submitted, and published the
plan of the metropolitan planning
organization pursuant to this section;
``(II) the Secretary, in
consultation with the Administrator,
determines that the plan is likely to
achieve the targets established by the
metropolitan planning organization
under this subsection; and
``(III) the development of the plan
complies with the minimum requirements
established under clauses (iii) and
(iv) of subparagraph (C).
``(E) Certification.--
``(i) In general.--Only metropolitan
planning organizations that meet the
requirements of subparagraph (C) shall be
eligible to receive performance grants under
section 402(c) of the Oil Independence for a
Stronger America Act of 2010.
``(ii) Failure to comply.--Failure to
comply with the requirements under subparagraph
(C) shall not impact certification standards
under paragraph (6).''.
(c) States.--
(1) Title 23.--Section 135 of title 23, United States Code,
is amended--
(A) in subsection (d)(1)(E)--
(i) by inserting ``sustainability, and
livability, reduce surface transportation-
related oil consumption and greenhouse gas
emissions, adapt to the effects of climate
change,'' after ``energy conservation,'';
(ii) by inserting ``and public health''
after ``quality of life''; and
(iii) by inserting ``, including housing
and land use patterns'' after ``development
patterns''; and
(B) in subsection (f)--
(i) in paragraph (2)(D)(i)--
(I) by striking ``, as appropriate,
in consultation'' and inserting ``in
cooperation'';
(II) by inserting ``State and local
agencies and Indian tribes responsible
for transportation, public
transportation, air quality, energy,
and housing and in consultation with''
before ``State, tribal''; and
(III) by inserting ``public
health,'' after ``conservation,'';
(ii) in paragraph (3)(B)(iii), by inserting
``and through the website of the State,
including oil savings and emission reduction
targets and strategies developed under
paragraph (9) and an analysis of the
anticipated effects of the targets and
strategies'' after ``World Wide Web''; and
(iii) by adding at the end the following:
``(9) Transportation oil savings and greenhouse gas
reduction efforts.--
``(A) In general.--Within a State, the
transportation planning process under this section,
shall address transportation-related greenhouse gas
emissions by including emission reduction targets and
strategies to meet those targets.
``(B) Establishment of targets and criteria.--
``(i) In general.--Not later than 2 years
after the promulgation of the final regulations
required under section 220 of the Clean Air
Act, each State shall develop surface
transportation-related oil savings and
greenhouse gas emission reduction targets, as
well as strategies to meet those targets, in
consultation with State air agencies and Indian
tribes as part of the transportation planning
process under this section.
``(ii) Minimum requirements.--Each
transportation plan developed by a State under
clause (i) shall, within the plan, demonstrate
progress in stabilizing and reducing
transportation-related oil consumption and
greenhouse gas emissions in the State so as to
contribute to the achievement of national goals
pursuant to section 220(a)(1) of the Clean Air
Act.
``(iii) Requirements for targets and
strategies.--The targets and strategies
developed as part of a plan under this
subparagraph shall, at a minimum--
``(I) be based on the oil
consumption and emission models and
related methodologies established in
the final regulations required under
section 220 of the Clean Air Act;
``(II) inventory all sources of
surface transportation-related oil
consumption and greenhouse gas
emissions;
``(III) apply to those modes of
surface transportation that are
addressed in the planning process under
this section;
``(IV) be integrated and consistent
with statewide transportation plans and
statewide transportation improvement
programs; and
``(V) be selected through scenario
analysis (as defined in section
134(k)(1)), and include, pursuant to
the requirements of the transportation
planning process under this section,
transportation investment and
management strategies that reduce oil
consumption and greenhouse gas
emissions from the transportation
sector over the life of the plan, such
as--
``(aa) efforts to increase
public transportation
ridership, including through
service improvements, capacity
expansions, and access
enhancement;
``(bb) efforts to increase
walking, bicycling, and other
forms of nonmotorized
transportation;
``(cc) implementation of
zoning and other land use
regulations and plans to
support infill, transit-
oriented development,
redevelopment, or mixed use
development;
``(dd) travel demand
management programs (including
carpool, vanpool, or car-share
projects), transportation
pricing measures, parking
policies, and programs to
promote telecommuting, flexible
work schedules, and satellite
work centers;
``(ee) highway and transit
operational improvements,
including intelligent
transportation systems or other
operational improvements to
reduce congestion and improve
system management;
``(ff) intercity passenger
rail improvements;
``(gg) high-speed rail
improvements and programs;
``(hh) intercity bus
improvements;
``(ii) freight rail
improvements;
``(jj) use of materials or
equipment associated with the
construction or maintenance of
transportation projects that
reduce oil consumption and
greenhouse gas emissions;
``(kk) public facilities
for supplying electricity to
electric or plug-in hybrid-
electric vehicles;
``(ll) local street network
improvements; and
``(mm) any other effort
that demonstrates progress in
reducing transportation-related
oil consumption and greenhouse
gas emissions.
``(iv) Identification of projects and
strategies.--The plan developed under this
section shall include a list of projects and
strategies based on the targets and strategies
identified under clause (iii).
``(C) Coordination and consultation with public
agencies.--Transportation oil savings and greenhouse
gas emission targets and plans pursuant to this section
shall be developed--
``(i) in coordination with--
``(I) all metropolitan planning
organizations covered by this section
within the State; and
``(II) transportation and air
quality agencies within the State;
``(ii) in consultation with representatives
of State and local housing, economic
development, energy, and land use agencies; and
``(iii) in consultation with Indian tribes
contiguous to the State.
``(D) Enforcement.--Not later than 180 days after
the date of submission of a plan under this section--
``(i) the Secretary and the Administrator
shall review the plan; and
``(ii) the Secretary shall make a
determination that the plan submitted by a
State meets the requirements of subparagraph
(B) if--
``(I) the Secretary finds that a
State has developed, submitted, and
published the plan pursuant to this
section;
``(II) the Secretary, in
consultation with the Administrator,
determines that the plan is likely to
achieve the targets established by the
State under this subsection; and
``(III) the development of the plan
complies with the minimum requirements
established under clauses (ii) and
(iii) of subparagraph (B).
``(E) Planning finding.--
``(i) In general.--Only States that meet
the requirements of subparagraph (B) shall be
eligible to receive performance grants under
section 402(c) of the Oil Independence for a
Stronger America Act of 2010.
``(ii) Failure to comply.--Failure to
comply with the requirements under subparagraph
(B) shall not impact the planning finding under
subsection (g)(7).''.
(2) Title 49.--Section 5304 of title 49, United States Code
is amended--
(A) in subsection (d)(1)(E)--
(i) by inserting ``sustainability, and
livability, reduce surface transportation-
related oil consumption and greenhouse gas
emissions, adapt to the effects of climate
change,'' after ``energy conservation,'';
(ii) by inserting ``and public health''
after ``quality of life''; and
(iii) by inserting ``, including housing
and land use patterns'' after ``development
patterns''; and
(B) in subsection (f)--
(i) in paragraph (2)(D)(i)--
(I) by striking ``, as appropriate,
in consultation'' and inserting ``in
cooperation'';
(II) by inserting ``State and local
agencies and Indian tribes responsible
for transportation, public
transportation, air quality, and
housing and in consultation with''
before ``State, tribal''; and
(III) by inserting ``public
health,'' after ``conservation,'';
(ii) in paragraph (3)(B)(iii), by inserting
``and through the website of the State,
including oil savings and emission reduction
targets and strategies developed under
paragraph (9) and an analysis of the
anticipated effects of the targets and
strategies'' after ``World Wide Web''; and
(iii) by adding at the end the following:
``(9) Transportation oil savings and greenhouse gas
reduction efforts.--
``(A) In general.--Within a State, the
transportation planning process under this section
shall address transportation-related oil consumption
and greenhouse gas emissions by including oil savings
and emission reduction targets and strategies to meet
those targets.
``(B) Establishment of targets and criteria.--
``(i) In general.--Not later than 2 years
after the promulgation of the final regulations
required under section 220 of the Clean Air
Act, each State shall develop surface
transportation-related oil savings and
greenhouse gas emission reduction targets, as
well as strategies to meet those targets, in
consultation with State air agencies and Indian
tribes as part of the transportation planning
process under this section.
``(ii) Minimum requirements.--Each
transportation plan developed by a State under
clause (i) shall, within the plan, demonstrate
progress in stabilizing and reducing
transportation-related oil consumption and
greenhouse gas emissions in the State so as to
contribute to the achievement of national
targets pursuant to section 220(a)(1) of the
Clean Air Act.
``(iii) Requirements for targets and
strategies.--The targets and strategies
developed as part of a plan under this
subparagraph shall, at a minimum--
``(I) be based on the oil
consumption and emission models and
related methodologies established in
the final regulations required under
section 220 of the Clean Air Act;
``(II) inventory all sources of
surface transportation-related oil
consumption and greenhouse gas
emissions;
``(III) apply to those modes of
surface transportation that are
addressed in the planning process under
this section;
``(IV) be integrated and consistent
with statewide transportation plans and
statewide transportation improvement
programs; and
``(V) be selected through scenario
analysis (as defined in section
134(k)(1) of title 23), and include,
pursuant to the requirements of the
transportation planning process under
this section, transportation investment
and management strategies that reduce
oil consumption and greenhouse gas
emissions from the transportation
sector over the life of the plan, such
as--
``(aa) efforts to increase
public transportation
ridership, including through
service improvements, capacity
expansions, and access
enhancement;
``(bb) efforts to increase
walking, bicycling, and other
forms of nonmotorized
transportation;
``(cc) implementation of
zoning and other land use
regulations and plans to
support infill, transit-
oriented development,
redevelopment, or mixed use
development;
``(dd) travel demand
management programs (including
carpool, vanpool, or car-share
projects), transportation
pricing measures, parking
policies, and programs to
promote telecommuting, flexible
work schedules, and satellite
work centers;
``(ee) highway and transit
operational improvements,
including intelligent
transportation systems or other
operational improvements to
reduce congestion and improve
system management;
``(ff) intercity passenger
rail improvements;
``(gg) high-speed rail
improvements and programs;
``(hh) intercity bus
improvements;
``(ii) freight rail
improvements;
``(jj) use of materials or
equipment associated with the
construction or maintenance of
transportation projects that
reduce oil consumption and
greenhouse gas emissions;
``(kk) public facilities
for supplying electricity to
electric or plug-in hybrid-
electric vehicles; and
``(ll) any other effort
that demonstrates progress in
reducing transportation-related
oil consumption and greenhouse
gas emissions.
``(iv) Identification of projects and
strategies.--The plan developed under this
section shall include a list of projects and
strategies based on the targets and strategies
identified under clause (iii).
``(C) Coordination and consultation with public
agencies.--Transportation oil savings and greenhouse
gas targets and plans pursuant to this section shall be
developed--
``(i) in coordination with--
``(I) all metropolitan planning
organizations covered by this section
within the State; and
``(II) transportation and air
quality agencies within the State;
``(ii) in consultation with representatives
of State and local housing, economic
development, energy, and land use agencies; and
``(iii) in consultation with Indian tribes
contiguous to the State.
``(D) Enforcement.--Not later than 180 days after
the date of submission of a plan under this section--
``(i) the Secretary and the Administrator
shall review the plan; and
``(ii) the Secretary shall make a
determination that the plan submitted by a
State meets the requirements of subparagraph
(B) if--
``(I) the Secretary finds that a
State has developed, submitted, and
published the plan pursuant to this
section;
``(II) the Secretary, in
consultation with the Administrator,
determines that the plan is likely to
achieve the targets established by the
State under this subsection; and
``(III) the development of the plan
complies with the minimum requirements
established under clauses (ii) and
(iii) of subparagraph (B).
``(E) Planning finding.--
``(i) In general.--Only States that meet
the requirements of subparagraph (B) shall be
eligible to receive performance grants under
section 402(c) of the Oil Independence for a
Stronger America Act of 2010.
``(ii) Failure to comply.--Failure to
comply with the requirements under subparagraph
(B) shall not impact the planning finding under
subsection (g)(7).''.
(d) Applicability.--Section 304 of the Clean Air Act (42 U.S.C.
7604) shall not apply to the planning provisions of this section or any
amendment made by this section.
(e) Land Use Authority.--Nothing in this section or an amendment
made by this section--
(1) infringes on the existing authority of local
governments to plan or control land use; or
(2) provides or transfers authority over land use to any
other entity.
(f) Table of Contents.--The table of contents of title II of the
Clean Air Act (42 U.S.C. prec. 7401) is amended by adding at the end
the following:
``Sec. 220. Greenhouse gas emission reductions through transportation
efficiency.''.
SEC. 402. INVESTING IN TRANSPORTATION GREENHOUSE GAS EMISSION REDUCTION
PROGRAMS.
(a) In General.--The Secretary of Transportation (referred to in
this section as the ``Secretary'') shall distribute funds made
available to carry out this section to States and metropolitan planning
organizations to carry out the purposes of this section for each fiscal
year, including--
(1) supporting the development and updating of
transportation greenhouse gas reduction targets and strategies;
and
(2) providing financial assistance to implement plans
approved pursuant to--
(A) sections 134(k)(6) and 135(f)(9) of title 23,
United States Code; and
(B) sections 5303(k)(7) and 5304(f)(9) of title 49,
United States Code.
(b) Allocation for Planning.--
(1) In general.--Subject to paragraph (2), the Secretary
shall distribute not more than 10 percent of the funds
available to carry out this section for a fiscal year for
metropolitan planning organizations to develop and update
transportation plans, including targets and strategies for
greenhouse gas emission reduction under--
(A) sections 134(k)(6) and 135(f)(9) of title 23,
United States Code; and
(B) sections 5303(k)(7) and 5304(f)(9) of title 49,
United States Code.
(2) Eligible organizations.--The Secretary shall distribute
the funds available under paragraph (1) to metropolitan
planning organizations (as defined in section 134(k)(1) of
title 23, United States Code) in the proportion that--
(A) the population within such a metropolitan
planning organization; bears to
(B) the total population of all such metropolitan
planning organizations.
(c) Performance Awards.--
(1) In general.--After distributing funds pursuant to
subsection (b)(1), and subject to subsection (h), the Secretary
shall distribute the remainder of the funds made available to
carry out this section to provide support to States and
metropolitan planning organizations.
(2) Criteria.--In making distributions under this
subsection, the Secretary, in consultation with the
Administrator, shall develop criteria for making the
distribution, taking into consideration, with respect to areas
to be covered by the distributions--
(A) the quantity of total oil consumption and
greenhouse gas emissions to be reduced as a result of
implementation of a plan, within a covered area;
(B) the quantity of total oil consumption and
greenhouse gas emissions to be reduced per capita as a
result of the implementation of a plan, within the
covered area;
(C) the cost-effectiveness of reducing oil
consumption and greenhouse gas emissions during the
life of the plan;
(D) progress toward achieving oil savings and
emission reductions target established under--
(i) sections 134(k)(6) and 135(f)(9) of
title 23, United States Code; and
(ii) sections 5303(k)(7) and 5304(f)(9) of
title 49, United States Code;
(E) reductions in oil consumption and greenhouse
gas emissions previously achieved by States and
metropolitan planning organizations during the 5-year
period beginning on the date of enactment of this Act;
(F) the extent to which the plan increases
transportation options and mobility, particularly for
low-income individuals, minorities, the elderly,
households without motor vehicles, cost-burdened
households, and the disabled;
(G) the extent to which projects funded will
facilitate development patterns and strategies that
reduce oil consumption and greenhouse gas emissions;
and
(H) other factors, including innovative approaches,
minimization of costs, and consideration of economic
development, revenue generation, consumer fuel cost-
savings, and other economic, environmental, and health
benefits, as the Secretary determines to be
appropriate.
(d) Requirement for Reduced Oil Consumption and Emissions.--Funds
received under subsection (c) may be used only to fund strategies that
demonstrate reductions in oil consumption and greenhouse gas emissions
that are sustainable over the life of the applicable transportation
plan.
(e) Cost-Sharing.--The Federal share of the costs of a project
receiving Federal financial assistance under this section shall be 80
percent.
(f) Compliance With Applicable Laws.--
(1) In general.--Subject to paragraph (2), a project
receiving funds under this section shall comply with all
applicable Federal laws (including regulations), including
applicable requirements of titles 23 and 49, United States
Code.
(2) Eligibility.--Project eligibility shall be determined
in accordance with this section.
(3) Determination of applicable modal requirements.--The
Secretary shall--
(A) have the discretion to designate the specific
modal requirements that shall apply to a project; and
(B) be guided by the predominant modal
characteristics of the project in the event that a
project has cross-modal application.
(g) Additional Requirements.--
(1) In general.--As a condition of the receipt of funds
under this section, the interests of public transportation
employees affected by the assistance shall be protected under
arrangements that the Secretary of Labor determines--
(A) to be fair and equitable; and
(B) to provide benefits equal to the benefits
established under section 5333(b) of title 49, United
States Code.
(h) Miscellaneous.--
(1) Road-use and congestion pricing measures.--All projects
supported by funds made available under this section shall not
be subject to section 301 of title 23, United States Code shall
be eligible to receive amounts collected through road-use and
congestion pricing measures.
(2) Limitations.--The Administrator may not approve any
transportation plan for a project that would be inconsistent
with existing design, procurement, and construction guidelines
established by the Department of Transportation.
(3) Transfers.--With the approval of the Secretary,
recipients of funds under this section may enter into
agreements providing for the transfer of funds or value to
private transportation providers or ineligible public entities
(such as local governments, air quality agencies, zoning
commissions, special districts, and transit agencies) that have
statutory responsibility or authority for actions necessary to
implement strategies pursuant to--
(A) sections 134(k)(6) and 135(f)(9) of title 23,
United States Code; and
(B) sections 5303(k)(7) and 5304(f)(9) of title 49,
United States Code.
(i) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 403. COMMUTER BENEFITS EQUITY.
(a) Uniform Dollar Limitation for All Types of Transportation
Fringe Benefits.--
(1) In general.--Section 132(f)(2) of the Internal Revenue
Code of 1986 (relating to limitation on exclusion) is amended--
(A) by striking ``$100'' in subparagraph (A) and
inserting ``$230'', and
(B) by striking ``$175'' in subparagraph (B) and
inserting ``$230''.
(2) Inflation adjustment conforming amendments.--
Subparagraph (A) of section 132(f)(6) of the Internal Revenue
Code of 1986 (relating to inflation adjustment) is amended--
(A) by striking the last sentence,
(B) by striking ``1999'' and inserting ``2009'',
and
(C) by striking ``1998'' and inserting ``2008''.
(3) Effective date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2008.
(b) Clarification of Federal Employee Benefits.--Section 7905 of
title 5, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (2)(C), by inserting ``and'' after
the semicolon;
(B) in paragraph (3), by striking ``; and'' and
inserting a period; and
(C) by striking paragraph (4); and
(2) in subsection (b)(2), by striking subparagraph (A) and
inserting the following:
``(A) a qualified transportation fringe as defined
in section 132(f)(1) of the Internal Revenue Code of
1986;''.
Subtitle B--Freight Transportation
SEC. 411. FREIGHT TRANSPORTATION GOAL AND PLAN.
(a) Freight Transportation Options Goal.--
(1) In general.--Subject to paragraph (2), it shall be the
goal of the United States to shift at least 10 percent of
freight shipped by truck to rail or marine shipping by calendar
year 2020.
(2) Increase.--The Secretary of Transportation may increase
the goal established under paragraph (1) based on the
evaluation of national freight rail and marine shipping
infrastructure and the national freight transportation options
plan developed pursuant to subsection (b).
(b) Freight Transportation Plan.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary of Transportation shall
develop a national freight transportation options plan.
(2) Contents.--The plan developed under paragraph (1) shall
include--
(A) an evaluation of national freight rail and
marine shipping infrastructure;
(B) an assessment of barriers to increased movement
of freight by rail and marine shipping;
(C) an identification of areas or corridors in
which additional capacity or other infrastructure is
needed to allow increased use of freight rail and
marine shipping; and
(D) a strategic plan for investments in capacity or
other measures to encourage increased use of freight
rail and marine shipping to meet the goal established
under subsection (a).
SEC. 412. FREIGHT RAIL CONGESTION GRANTS.
(a) In General.--Section 24105 of title 49, United States Code, is
amended to read as follows:
``Sec. 24105. Freight rail congestion grants
``(a) Authority.--The Secretary of Transportation may make grants
to States for financing the capital costs of facilities,
infrastructure, and equipment for high priority rail corridor projects
necessary to reduce congestion in freight rail transportation.
``(b) Eligible Projects.--Projects eligible for grants under this
section shall be covered by a State rail plan and provide public
benefits (as defined by chapter 27).
``(c) Federal Share.--The Federal share of the cost of a project
financed under this section shall not exceed 80 percent.
``(d) Grant Conditions.--The Secretary of Transportation shall
require each recipient of a grant under this section to comply with the
applicable grant requirements of section 24405.
``(e) Equitable Distribution.--The Secretary shall take such
measures as are necessary to ensure an equitable geographic
distribution of funds and an appropriate balance in addressing the
needs of urban and rural communities.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary.''.
(b) Table of Sections Amendment.--The table of sections for chapter
XXX of title 49, United States Code, is amended by striking the item
relating to section 24105 and inserting the following:
``Sec. 24105. Freight rail congestion grants.''.
SEC. 413. RAIL ELECTRIFICATION STUDY.
(a) In General.--The Comptroller General of the United States shall
conduct a study on the benefits and costs of electrification of rail
corridors, including the role of rail electrification in meeting the
national oil independence goal established under section 101.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Comptroller General shall submit to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee
on Transportation and Infrastructure of the House of Representatives a
report describing the results of the study required under subsection
(a).
TITLE V--ALTERNATIVE TRANSPORTATION FUELS
Subtitle A--Advanced Biofuels
SEC. 501. ALLOWANCE OF INVESTMENT TAX CREDIT FOR ADVANCED BIOFUEL
FACILITIES.
(a) In General.--Subsection (a) of section 48 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
``(6) Election to treat qualified advanced biofuel
facilities as energy property.--
``(A) In general.--In the case of any qualified
property which is part of a qualified advanced biofuel
facility investment credit facility--
``(i) such property shall be treated as
energy property for purposes of this section,
and
``(ii) the energy percentage with respect
to such property shall be 30 percent.
``(B) Qualified property.--For purposes of this
paragraph, the term `qualified property' means
property--
``(i) which is--
``(I) tangible personal property,
or
``(II) other tangible property (not
including a building or its structural
components), but only if such property
is used as an integral part of the
qualified investment credit facility,
and
``(ii) with respect to which depreciation
(or amortization in lieu of depreciation) is
allowable.
``(C) Qualified advanced biofuel facility.--For
purposes of this paragraph, the term `qualified
advanced biofuel facility' means any facility--
``(i) the primary purpose of which is the
production of advanced biofuels which are
transportation-grade fuels,
``(ii) which is originally placed in
service by the taxpayer after the date of the
enactment of this paragraph and before December
31, 2015, and
``(iii) with respect to which the taxpayer
makes an election to have this paragraph apply.
``(D) Advanced biofuels.--For purposes of
subparagraph (C), the term `advanced biofuel' means
alcohol (as defined in section 40(d)(1)), other than
ethanol derived from corn starch, used as a fuel which
has lifecycle greenhouse gas emissions (as defined in
section 211(o)(1)(H) of the Clean Air Act) at least 50
percent less than baseline lifecycle greenhouse gas
emissions (as defined in section 211(o)(1)(C) of such
Act).''.
(b) Coordination With Special Allowance for Cellulosic Biofuel
Plant Property.--Paragraph (8) of section 168(l) of the Internal
Revenue Code of 1986 is amended by inserting ``or under section
48(a)(6)'' before the period at the end.
(c) 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. 502. GRANTS FOR ADVANCED BIOFUEL FACILITY PROPERTY.
Section 1603 of division B of the American Recovery and
Reinvestment Act of 2009 is amended by adding at the end the following
new subsection:
``(k) Application to Qualified Advanced Biofuel Facility
Property.--In the case of qualified property (as defined in section
48(a)(6)(B) of the Internal Revenue Code of 1986) which is part of a
qualified advanced biofuel facility (within the meaning of section
48(a)(6)(C) of such Code)--
``(1) such qualified property shall be treated as specified
energy property for purposes of this section, and
``(2) in applying this section to such qualified property--
``(A) subsection (a) shall be applied--
``(i) by substituting `the 2-year period
beginning on the date of the enactment of this
Act' for `2009 or 2010' each place it appears,
and
``(ii) by substituting `after such 2-year
period' for `2010' in paragraph (2) thereof,
``(B) the applicable percentage with respect to
such qualified property shall be 30 percent,
``(C) the credit termination date with respect to
such qualified property shall be January 1, 2016, and
``(D) subsection (j) shall be applied by
substituting `the date which is 9-months after the 2-
year period described in subsection (k)(2)(A)(i)' for
`October 1, 2011'.''.
SEC. 503. INCLUSION OF ALGAE-BASED BIOFUEL IN DEFINITION OF CELLULOSIC
BIOFUEL.
(a) Cellulosic Biofuel Producer Credit.--
(1) General rule.--Paragraph (4) of section 40(a) of the
Internal Revenue Code of 1986 is amended by inserting ``and
algae-based'' after ``cellulosic''.
(2) Definitions.--Paragraph (6) of section 40(b) of such
Code is amended--
(A) by inserting ``and algae-based'' after
``Cellulosic'' in the heading,
(B) by striking subparagraph (A) and inserting the
following:
``(A) In general.--The cellulosic and algae-based
biofuel producer credit of any taxpayer is an amount
equal to the applicable amount for each gallon of--
``(i) qualified cellulosic biofuel
production, and
``(ii) qualified algae-based biofuel
production.'',
(C) by redesignating subparagraphs (F), (G), and
(H) as subparagraphs (I), (J), and (K), respectively,
(D) by inserting ``and algae-based'' after
``cellulosic'' in the heading of subparagraph (I), as
so redesignated,
(E) by inserting ``or algae-based biofuel,
whichever is appropriate,'' after ``cellulosic
biofuel'' in subparagraph (J), as so redesignated,
(F) by inserting ``and qualified algae-based
biofuel production'' after ``qualified cellulosic
biofuel production'' in subparagraph (K), as so
redesignated, and
(G) by inserting after subparagraph (E) the
following new subparagraphs:
``(F) Qualified algae-based biofuel production.--
For purposes of this section, the term `qualified
algae-based biofuel production' means any algae-based
biofuel which is produced by the taxpayer, and which
during the taxable year--
``(i) is sold by the taxpayer to another
person--
``(I) for use by such other person
in the production of a qualified algae-
based biofuel mixture in such other
person's trade or business (other than
casual off-farm production),
``(II) for use by such other person
as a fuel in a trade or business, or
``(III) who sells such algae-based
biofuel at retail to another person and
places such algae-based biofuel in the
fuel tank of such other person, or
``(ii) is used or sold by the taxpayer for
any purpose described in clause (i).
The qualified algae-based biofuel production of any
taxpayer for any taxable year shall not include any
alcohol which is purchased by the taxpayer and with
respect to which such producer increases the proof of
the alcohol by additional distillation.
``(G) Qualified algae-based biofuel mixture.--For
purposes of this paragraph, the term `qualified algae-
based biofuel mixture' means a mixture of algae-based
biofuel and gasoline or of algae-based biofuel and a
special fuel which--
``(i) is sold by the person producing such
mixture to any person for use as a fuel, or
``(ii) is used as a fuel by the person
producing such mixture.
``(H) Algae-based biofuel.--For purposes of this
paragraph--
``(i) In general.--The term `algae-based
biofuel' means any liquid fuel, including
gasoline, diesel, aviation fuel, and ethanol,
which--
``(I) is produced from the biomass
of algal organisms, and
``(II) meets the registration
requirements for fuels and fuel
additives established by the
Environmental Protection Agency under
section 211 of the Clean Air Act (42
U.S.C. 7545).
``(ii) Algal organism.--The term `algal
organism' means a single- or multi-cellular
organism which is primarily aquatic and
classified as a non-vascular plant, including
microalgae, blue-green algae (cyanobacteria),
and macroalgae (seaweeds).
``(iii) Exclusion of low-proof alcohol.--
Such term shall not include any alcohol with a
proof of less than 150. The determination of
the proof of any alcohol shall be made without
regard to any added denaturants.''.
(3) Conforming amendments.--
(A) Subparagraph (D) of section 40(d)(3) of such
Code is amended--
(i) by inserting ``and algae-based'' after
``cellulosic'' in the heading,
(ii) by inserting ``or (b)(6)(F)'' after
``(b)(6)(C)'' in clause (ii), and
(iii) by inserting ``or algae-based'' after
``such cellulosic''.
(B) Paragraph (6) of section 40(d) of such Code is
amended--
(i) by inserting ``and algae-based'' after
``cellulosic'' in the heading, and
(ii) by striking the first sentence and
inserting ``No cellulosic and algae-based
biofuel producer credit shall be determined
under subsection (a) with respect to any
cellulosic or algae-based biofuel unless such
cellulosic or algae-based biofuel is produced
in the United States and used as a fuel in the
United States.''
(C) Paragraph (3) of section 40(e) of such Code is
amended by inserting ``and algae-based'' after
``cellulosic'' in the heading.
(D) Paragraph (1) of section 4101(a) of such Code
is amended--
(i) by inserting ``or algae-based'' after
``cellulosic'', and
(ii) by inserting ``and 40(b)(6)(H),
respectively'' after ``section 40(b)(6)(E)''.
(b) Special Allowance for Cellulosic Biofuel Plant Property.--
Subsection (l) of section 168 of the Internal Revenue Code of 1986 is
amended--
(1) by inserting ``and Algae-based'' after ``Cellulosic''
in the heading,
(2) by inserting ``and any qualified algae-based biofuel
plant property'' after ``qualified cellulosic biofuel plant
property'' in paragraph (1),
(3) by redesignating paragraphs (4) through (8), as amended
by section 501, as paragraphs (6) through (10), respectively,
(4) by inserting ``or qualified algae-based biofuel plant
property'' after ``cellulosic biofuel plant property'' in
paragraph (7)(C), as so redesignated,
(5) by striking ``with respect to'' and all that follows in
paragraph (9), as so redesignated, and inserting ``with respect
to any qualified cellulosic biofuel plant property and any
qualified algae-based biofuel plant property which ceases to be
such qualified property.'',
(6) by inserting ``or qualified algae-based biofuel plant
property'' after ``cellulosic biofuel plant property'' in
paragraph (10), as so redesignated, and
(7) by inserting after paragraph (3) the following new
paragraphs:
``(4) Qualified algae-based biofuel plant property.--The
term `qualified algae-based biofuel plant property' means
property of a character subject to the allowance for
depreciation--
``(A) which is used in the United States solely to
produce algae-based biofuel,
``(B) the original use of which commences with the
taxpayer after the date of the enactment of this
paragraph,
``(C) which is acquired by the taxpayer by purchase
(as defined in section 179(d)) after the date of the
enactment of this paragraph, but only if no written
binding contract for the acquisition was in effect on
or before such date, and
``(D) which is placed in service by the taxpayer
before January 1, 2013.
``(5) Algae-based biofuel.--
``(A) In general.--The term `algae-based biofuel'
means any liquid fuel which is produced from the
biomass of algal organisms.
``(B) Algal organism.--The term `algal organism'
means a single- or multi-cellular organism which is
primarily aquatic and classified as a non-vascular
plant, including microalgae, blue-green algae
(cyanobacteria), and macroalgae (seaweeds).''.
(c) Effective Dates.--
(1) Cellulosic biofuel producer credit.--The amendments
made by subsection (a) shall apply to fuel produced after the
date of the enactment of this Act.
(2) Special allowance for cellulosic biofuel plant
property.--The amendments made by subsection (b) shall apply to
property purchased and placed in service after the date of the
enactment of this Act.
SEC. 504. EXTENSION OF CELLULOSIC BIOFUEL PRODUCER CREDIT.
(a) In General.--Subparagraph (K) of section 40(b)(6) of the
Internal Revenue Code of 1986, as redesignated by section 503(a)(2)(C),
is amended by striking ``January 1, 2013'' and inserting ``January 1,
2016'',
SEC. 505. EXTENSION OF SPECIAL ALLOWANCE FOR CELLULOSIC BIOFUEL PLANT
PROPERTY.
(a) In General.--Paragraph (2)(D) of section 168(l) of the Internal
Revenue Code of 1986 is amended by striking ``January 1, 2013'' and
inserting ``January 1, 2016''.
(b) Algae-Based Biofuel.--Paragraph (4)(D) of section 168(l) of the
Internal Revenue Code of 1986, as amended by section 503(b)(7), is
amended by striking ``January 1, 2013'' and inserting ``January 1,
2016''.
(c) Conforming Amendment.--Paragraph (7)(B) of section 168(l) of
the Internal Revenue Code of 1986, as redesignated by section
503(b)(3), is amended by striking ``January 1, 2013'' and inserting
``January 1, 2016''.
(d) 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. 506. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.
(a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A of the Internal Revenue Code of 1986 is
amended by striking ``December 31, 2009'' and inserting ``December 31,
2015''.
(b) Excise Tax Credits and Outlay Payments for Biodiesel and
Renewable Diesel Fuel Mixtures.--
(1) Paragraph (6) of section 6426(c) of the Internal
Revenue Code of 1986 is amended by striking ``December 31,
2009'' and inserting ``December 31, 2015''.
(2) Subparagraph (B) of section 6427(e)(6) of the Internal
Revenue Code of 1986 is amended by striking ``December 31,
2009'' and inserting ``December 31, 2015''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2009.
SEC. 507. EXTENSION OF ALCOHOL FUELS TAX CREDITS.
(a) In General.--Paragraph (1) of section 40(e) of the Internal
Revenue Code of 1986 is amended--
(1) in subparagraph (A), by striking ``December 31, 2010''
and inserting ``December 31, 2015'', and
(2) in subparagraph (B), by striking ``January 1, 2011''
and inserting ``January 1, 2016''.
(b) Rule for Credit for Ethanol Blenders.--Subsection (h) of
section 40 of the Internal Revenue Code of 1986 is amended--
(1) in paragraph (1), by striking ``during calendar years
2001 through 2010'' and inserting ``after calendar year 2001'',
and
(2) in paragraph (2), by inserting at the end the following
flush sentence:
``In the case of any sale or use after calendar year 2010, the blender
amount and the low-proof blender amount shall be 0 cents.''.
(c) Effective Date.--The amendments made by this section shall
apply to alcohol produced, sold, or used after December 31, 2010.
Subtitle B--Powering Vehicles With Natural Gas
SEC. 511. CREDIT FOR QUALIFIED NATURAL GAS MOTOR VEHICLES.
(a) In General.--
(1) In general.--Subsection (e) of section 30B of the
Internal Revenue Code of 1986 (relating to new qualified
alternative fuel motor vehicle credit) is amended by adding at
the end the following new paragraphs:
``(6) Special rules for qualified natural gas motor
vehicles.--
``(A) In general.--In the case of a qualified
natural gas motor vehicle--
``(i) such motor vehicle shall be treated
as a new qualified alternative fuel motor
vehicle under this subsection,
``(ii) paragraph (3) shall be applied by
multiplying each of the dollar amounts
contained in such paragraph by 2, and
``(iii) the credit allowed under this
subsection shall be transferrable as provided
in subparagraph (B).
``(B) Transferability of credit.--
``(i) In general.--A taxpayer who places in
service qualified natural gas motor vehicle may
transfer the credit allowed under this
subsection with respect to such vehicle through
an assignment to the seller, the manufacturer,
or the lessee of such vehicle. Such transfer
may be revoked only with the consent of the
Secretary.
``(ii) Regulations.--The Secretary shall
prescribe such regulations as necessary to
ensure that any credit transferred under clause
(i) is claimed once and not reassigned by such
other person.
``(7) Qualified natural gas motor vehicle.--
``(A) In general.--For purposes of this subsection,
the term `qualified natural gas motor vehicle' means
any motor vehicle--
``(i) which is described in subparagraph
(B), (C), or (D),
``(ii) the original use of which commences
with the taxpayer,
``(iii) which is acquired by the taxpayer
for use or lease, but not for resale, and
``(iv) which is placed in service before
the date which is 10 years after the date of
the enactment of this paragraph.
``(B) Heavy duty vehicles.--A motor vehicle is
described in this subparagraph if such motor vehicle--
``(i) is made by a manufacturer,
``(ii) has a gross vehicle weight rating of
more than 8,500 pounds, and
``(iii) is--
``(I) only capable of operating on
compressed or liquified natural gas, or
``(II) capable of operating for
more than 175 miles on 1 fueling of
compressed or liquified natural gas and
is capable of operating on gasoline or
diesel fuel.
``(C) Light and medium duty vehicles.--A motor
vehicle is described in this subparagraph if such motor
vehicle--
``(i) is made by a manufacturer,
``(ii) has a gross vehicle weight rating of
not more 8,500 pounds,
``(iii) is--
``(I) only capable of operating on
compressed or liquified natural gas, or
``(II) capable of operating for
more than 175 miles on 1 fueling of
compressed or liquified natural gas and
is capable of operating on gasoline or
diesel fuel,
``(iv) is of a character subject to
depreciation, and
``(v) is acquired by a taxpayer who--
``(I) owns and operates not less
than 10 motor vehicles in the course of
a trade or business at the time of the
acquisition, and
``(II) has placed in service more
than 2 motor vehicles described in
clauses (i) through (iv) or described
in subparagraph (D)(iii) after the date
of the enactment of this paragraph.
``(D) Converted or repowered vehicles.--
``(i) In general.--A motor vehicle is
described in this subparagraph if such motor
vehicle is a motor vehicle described in clause
(ii) or clause (iii) which is converted or
repowered so that it--
``(I) is only capable of operating
on compressed or liquified natural gas,
or
``(II) is capable of operating for
more than 175 miles on 1 fueling of
compressed or liquified natural gas and
is capable of operating on gasoline or
diesel fuel, is capable of operating on
compressed or liquefied natural gas.
``(ii) Heavy duty vehicles.--A motor
vehicle is described in this clause if such
motor vehicle--
``(I) has a gross vehicle weight
rating of more than 8,500 pounds, and
``(II) was not capable of operating
on compressed or liquified natural gas
before the date of such conversion or
repower.
``(iii) Light and medium duty vehicles.--A
motor vehicle is described in this clause if
such motor vehicle--
``(I) has a gross vehicle weight
rating of not more 8,500 pounds,
``(II) was not capable of operating
on compressed or liquified natural gas
before the date of such conversion or
repower,
``(III) is of a character subject
to depreciation,
``(IV) is acquired by a taxpayer
who owns and operates not less than 10
motor vehicles in the course of a trade
or business at the time of the
acquisition, and
``(V) is acquired by a taxpayer who
has placed in service more than 2 motor
vehicles described in subclauses (I)
through (III) or described in
subparagraph (C) after the date of the
enactment of this paragraph.
``(iv) Special rules.--
``(I) Treatment as new.--For
purposes of this subsection, the
original use of any motor vehicle
described in clause (i) shall be
treated as beginning with the first use
after the date of the conversion or
repower.
``(II) Rule of construction.--In
the case of a used vehicle which is
converted or repowered, nothing in this
section shall be construed to require
that the motor vehicle be acquired in
the year the credit is claimed under
this section with respect to such
vehicle.
``(E) Special rule.--For purposes of this
subsection, in the case of a motor vehicle which--
``(i) is described in subparagraph (C) or
(D)(iii),
``(ii) is placed in service after the date
of the enactment of this paragraph, and
``(iii) is placed in service by a taxpayer
in a taxable year prior to the taxable year in
which such taxpayer places in service the third
such motor vehicle described in subparagraph
(C) or (D)(iii) after such date of enactment.
such motor vehicle shall be treated as placed in
service in the taxable year in which such third motor
vehicle is placed in service.''.
(2) Conforming amendment.--Subparagraph (B) of section
30B(e)(5) of such Code is amended by inserting ``(other than a
qualified natural gas motor vehicle)'' after ``paragraph (3)''.
(b) Mixed-Fuel Vehicles.--Subparagraph (C) of section 30B(e)(5) of
the Internal Revenue Code of 1986 is amended by striking ``a mixed-fuel
vehicle which operates using'' and all that follows and inserting ``a
mixed-fuel vehicle which--
``(i) in the case of such a vehicle which
is capable of operating on compressed or
liquified natural gas, operates using at least
65 percent compressed or liquified natural gas
and not more than 35 percent petroleum-based
fuel, and
``(ii) in the case of any other such
vehicle, operates using at least 75 percent
alternative fuel and not more than 25 percent
petroleum-based fuel.''.
(c) Alternative Minimum Tax Treatment.--Subparagraph (B) of section
38(c)(4) of the Internal Revenue Code of 1986 is amended by
redesignating clauses (i) through (ix) as clauses (ii) through (x),
respectively, and by inserting after before clause (ii) (as so
redesignated) the following new clause:
``(i) the amount of the credit determined
under section 30B which is attributable to a
qualified natural gas motor vehicle (as defined
in section 30B(e)(7)).''.
(d) 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. 512. NATURAL GAS VEHICLE BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1
(relating to qualified tax credit bonds) of the Internal Revenue Code
of 1986, as amended by section 306, is amended by adding at the end the
following new section:
``SEC. 54H. NATURAL GAS VEHICLE BONDS.
``(a) Natural Gas Vehicle Bond.--For purposes of this subpart, the
term `natural gas vehicle bond' means any bond issued as part of an
issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for capital expenditures incurred by a
governmental body for 1 or more qualified natural gas vehicle
projects placed in service by such governmental body primarily
for governmental or public use,
``(2) the bond is issued by a governmental body,
``(3) the issuer designates such bond for purposes of this
section, and
``(4) in lieu of the requirements of section 54A(d)(2), the
issue meets the requirements of subsection (c).
``(b) Limitation on Amount of Bonds Designated.--
``(1) In general.--The maximum aggregate face amount of
bonds which may be designated under subsection (a) by any
issuer shall not exceed the limitation amount allocated under
this subsection to such issuer.
``(2) National limitation on amount of bonds designated.--
There is a national natural gas vehicle bond limitation of
$3,000,000,000.
``(3) Allocation by secretary.--The Secretary shall
allocate the amount described in paragraph (2) among qualified
natural gas vehicle projects in such manner as the Secretary
determines appropriate.
``(c) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of issuance,
the issuer reasonably expects--
``(A) 100 percent or more of the available project
proceeds of such issue are to be spent for 1 or more
qualified natural gas vehicle projects within the 5-
year period beginning on the date of issuance of the
natural gas vehicle bond,
``(B) a binding commitment with a third party to
spend at least 10 percent of such available project
proceeds will be incurred within the 6-month period
beginning on the date of issuance of the natural gas
vehicle bond, and
``(C) such projects will be completed with due
diligence and such available project proceeds will be
spent with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the issuer
establishes that the failure to satisfy the 5-year requirement
is due to reasonable cause and the related projects will
continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 100 percent of
the available project proceeds of such issue are expended by
the close of the 5-year period beginning on the date of
issuance (or if an extension has been obtained under paragraph
(2), by the close of the extended period), the issuer shall
redeem all of the nonqualified bonds within 90 days after the
end of such period. For purposes of this paragraph, the amount
of the nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(d) Governmental Body.--For purposes of this section, the term
`governmental body' means any State, territory, possession of the
United States, the District of Columbia, Indian tribal government, and
any political subdivision thereof.
``(e) Qualified Natural Gas Vehicle Project.--For purposes of this
subpart, the term `qualified natural gas vehicle project' means--
``(1) 1 or more qualified natural gas vehicles (as defined
in section 30B(e)(7)), or
``(2) 1 or more qualified alternative fuel vehicle
refueling properties which are used to store and or dispense
compressed or liquefied natural gas (within the meaning of
section 30C(c)).
``(f) Termination.--This section shall not apply with respect to
any bond issued after December 31, 2019.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) of the Internal Revenue
Code of 1986, as amended by section 306, is amended by striking
``or'' at the end of subparagraph (E), by inserting ``or'' at
the end of subparagraph (F), and by inserting after
subparagraph (F) the following new subparagraph:
``(G) a natural gas vehicle bond,''.
(2) Subparagraph (C) of section 54A(d)(2) of such Code, as
amended by section 306, is amended by striking ``and'' at the
end of clause (v), by striking the period at the end of clause
(vi) and inserting ``, and'', and by adding at the end the
following new clause:
``(vii) in the case of a natural gas
vehicle bond, a purpose specified in section
54H(a)(1).''.
(c) Clerical Amendment.--The table of sections for subpart I of
part IV of subchapter A of chapter 1 of such Code, as amended by
section 306, is amended by adding at the end the following new item:
``Sec. 54H. Natural gas vehicle bonds.''.
(d) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 513. INCENTIVES FOR MANUFACTURING FACILITIES PRODUCING VEHICLES
FUELED BY COMPRESSED OR LIQUIFIED NATURAL GAS.
(a) Deduction for Manufacturing Facilities.--
(1) In general.--Part VI of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 (relating to itemized
deductions for individuals and corporations) is amended by
inserting after section 179E the following new section:
``SEC. 179F. EXPENSING FOR MANUFACTURING FACILITIES PRODUCING VEHICLES
FUELED BY COMPRESSED NATURAL GAS OR LIQUIFIED NATURAL
GAS.
``(a) Treatment as Expenses.--A taxpayer may elect to treat the
applicable percentage of the cost of any qualified natural gas vehicle
manufacturing facility property as an expense which is not chargeable
to a capital account. Any cost so treated shall be allowed as a
deduction for the taxable year in which the qualified manufacturing
facility property is placed in service.
``(b) Applicable Percentage.--For purposes of subsection (a), the
applicable percentage is--
``(1) 100 percent, in the case of qualified natural gas
vehicle manufacturing facility property which is placed in
service before January 1, 2015, and
``(2) 50 percent, in the case of qualified natural gas
vehicle manufacturing facility property which is placed in
service after December 31, 2014, and before January 1, 2020.
``(c) Election.--
``(1) In general.--An election under this section for any
taxable year shall be made on the taxpayer's return of the tax
imposed by this chapter for the taxable year. Such election
shall be made in such manner as the Secretary may by
regulations prescribe.
``(2) Election irrevocable.--Any election made under this
section may not be revoked except with the consent of the
Secretary.
``(d) Qualified Natural Gas Vehicle Manufacturing Facility
Property.--For purposes of this section--
``(1) In general.--The term `qualified natural gas vehicle
manufacturing facility property' means any qualified property--
``(A) the original use of which commences with the
taxpayer,
``(B) which is placed in service by the taxpayer
after the date of the enactment of this section and
before January 1, 2020, and
``(C) no written binding contract for the
construction of which was in effect on or before the
date of the enactment of this section.
``(2) Qualified property.--
``(A) In general.--The term `qualified property'
means any property which is a facility or a portion of
a facility used for the production of--
``(i) any qualified natural gas vehicles
(as defined in section 30B(e)(7)), or
``(ii) any eligible component.
``(B) Eligible component.--The term `eligible
component' means any component which is designed
specifically for use in such a qualified natural gas
vehicle.
``(e) Special Rule for Dual Use Property.--
``(1) In general.--In the case of any qualified natural gas
vehicle manufacturing facility property which is used to
produce both property described in clauses (i) and (ii) of
subsection (d)(2)(A) and property which is not so described,
the amount of costs taken into account under subsection (a)
shall be reduced by an amount equal to--
``(A) the total amount of such costs (determined
before the application of this subsection), multiplied
by
``(B) the percentage of property expected to be
produced which is not so described.
``(2) Regulations.--The Secretary shall prescribe such
regulations as are necessary to carry out the purpose of this
subsection.''.
(2) Clerical amendment.--The table of sections of part VI
of subchapter B of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section
179E the following new item:
``Sec. 179F. Expensing for manufacturing facilities producing vehicles
fueled by compressed natural gas or
liquified natural gas.''.
(b) Refund of Credit for Prior Year Minimum Tax Liability.--Section
53 of the Internal Revenue Code of 1986 (relating to credit for prior
year minimum tax liability) is amended by adding at the end the
following new subsection:
``(g) Election To Treat Amounts Attributable to Qualified
Manufacturing Facility.--
``(1) In general.--In the case of an eligible taxpayer, the
amount determined under subsection (c) for the taxable year
(after the application of subsection (e)) shall be increased by
an amount equal to the applicable percentage of any qualified
natural gas vehicle manufacturing facility property which is
placed in service during the taxable year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is--
``(A) 35 percent, in the case of qualified natural
gas vehicle manufacturing facility property which is
placed in service before January 1, 2015, and
``(B) 17.5 percent, in the case of qualified
natural gas vehicle manufacturing facility property
which is placed in service after December 31, 2014, and
before January 1, 2020.
``(3) Eligible taxpayer.--For purposes of this subsection,
the term `eligible taxpayer' means any taxpayer--
``(A) who places in service qualified natural gas
vehicle manufacturing facility property during the
taxable year,
``(B) who does not make an election under section
179F(c), and
``(C) who makes an election under this subsection.
``(4) Other definitions and special rules.--
``(A) Qualified natural gas vehicle manufacturing
facility property.--The term `qualified natural gas
vehicle manufacturing facility property' has the
meaning given such term under section 179F(d).
``(B) Special rule for dual use property.--In the
case of any qualified natural gas vehicle manufacturing
facility property which is used to produce both
qualified property (as defined in section 179F(d)) and
other property which is not qualified property, the
amount of costs taken into account under paragraph (1)
shall be reduced by an amount equal to--
``(i) the total amount of such costs
(determined before the application of this
subparagraph), multiplied by
``(ii) the percentage of property expected
to be produced which is not qualified property.
``(C) Election.--
``(i) In general.--An election under this
subsection for any taxable year shall be made
on the taxpayer's return of the tax imposed by
this chapter for the taxable year. Such
election shall be made in such manner as the
Secretary may by regulations prescribe.
``(ii) Election irrevocable.--Any election
made under this subsection may not be revoked
except with the consent of the Secretary.
``(5) Credit refundable.--For purposes of this title (other
than this section), the credit allowed by reason of this
subsection shall be treated as if it were allowed under subpart
C.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 514. STUDY OF INCREASING NATURAL GAS AND LIQUEFIED PETROLEUM GAS
VEHICLES IN FEDERAL FLEET.
(a) In General.--The Administrator of General Services, in
consultation with the Administrator and the Secretary, shall conduct a
study of the means by which the Federal fleet could increase the number
of light-, medium-, and heavy-duty natural gas and liquefied petroleum
gas vehicles in the fleet.
(b) Components.--In conducting the study, the Administrator of
General Services shall--
(1) take into consideration Executive Order 13514 (74 Fed.
Reg. 52117; relating to Federal leadership in environmental,
energy, and economic performance) requiring agencies to meet a
30 percent reduction in vehicle fleet petroleum use by 2020;
(2) assess--
(A) the barriers to increasing the number of
natural gas and liquefied petroleum gas vehicles in the
Federal fleet;
(B) the potential for maximizing the use of natural
gas and liquefied petroleum gas vehicles in the fleet;
(C) the expected reductions in petroleum use and
greenhouse gas emissions as part of the potential
impacts of increasing natural gas and liquefied
petroleum in the fleet; and
(D) the lifecycle costs involved in fleet
conversions, including the cost savings from reduced
fuel consumption;
(3) provide a separate analysis of the potential costs of
installing the specific fueling infrastructure required to
increase natural gas and liquefied petroleum gas in the fleet;
and
(4) include feasibility assessments for increasing the
number of light-, medium-, and heavy-duty natural gas and
liquefied petroleum gas vehicles in the fleet over a base
period of 10 years and accelerated periods of 3 and 5 years.
(c) Report.--Not later than 180 days after the date of enactment of
this Act, the Administrator of General Services shall submit to the
appropriate committees of Congress a report on the results of the study
conducted under this section.
TITLE VI--HEATING OIL AND PROPANE CONSERVATION
SEC. 601. ENERGY EFFICIENCY IMPROVEMENTS FOR HEATING OIL, PROPANE, AND
KEROSENE USE IN HOMES AND COMMERCIAL BUILDINGS.
(a) Definitions.--In this section:
(1) Cost-effective.--The term ``cost-effective'', with
respect to an energy efficiency program, means that the program
meets the total resource cost test, which requires that the net
present value of economic benefits over the life of the program
or measure (including avoided supply and delivery costs and
deferred or avoided investments) is greater than the net
present value of the economic costs over the life of the
program, including program costs and incremental costs borne by
the energy consumer.
(2) Department.--The term ``Department'' means the
Department of Energy.
(3) NORA.--The term ``NORA'' means a national oilheat
research alliance established pursuant to section 704 of the
National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201
note; Public Law 106-469) or a successor entity.
(4) PERC.--The term ``PERC'' means the Propane Education
and Research Council authorized by the Propane Education and
Research Act of 1996 (15 U.S.C. 6401 et seq.) or a successor
entity.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Energy Efficiency Improvement for Heating Oil, Propane, and
Kerosene Program.--
(1) Establishment.--There is established in the Department
the Energy Efficiency Improvement for Heating Oil, Propane, and
Kerosene Program under which the Secretary shall provide funds
to each State that has elected to participate in programs
operated by NORA or PERC to carry out cost-effective energy
efficiency programs for homes and buildings that use home
heating oil, propane, and kerosene.
(2) Distribution of funds.--The Secretary shall distribute
funds under paragraph (1) among the States based on the
relative amount of funds collected in each State under the
National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201
note; Public Law 106-469) and the Propane Education and
Research Act of 1996 (15 U.S.C. 6401 et seq.).
(c) Use of Proceeds.--
(1) In general.--A State shall use the amounts distributed
under subsection (b)(2) to carry out cost-effective energy
efficiency programs for consumers that use home heating oil,
propane, or kerosene for residential or commercial purposes.
(2) Administration and delivery mechanisms.--In
administering a program under this section, a State shall--
(A) to the maximum extent practicable, deliver
efficiency programs through, or integrated with,
existing energy efficiency programs supervised by the
State, including, as appropriate, energy efficiency
programs administered by parties other than the State;
(B) to the maximum extent practicable, coordinate
the administration and delivery of energy efficiency
programs supported under this section, among other such
programs and with existing programs for various fuel
types, to deliver comprehensive, fuel-blind,
coordinated programs to consumers;
(C) ensure that funding provided under this section
does not displace or substitute for existing or
alternative sources of funding for energy efficiency
programs;
(D) taking into account subparagraphs (A) through
(C), designate 1 or more energy efficiency program
administrators for cost-effective home heating oil,
propane, and kerosene efficiency programs;
(E) designate an existing, or establish a new,
stakeholder oversight council or equivalent to review
efficiency program designs and efficiency program cost-
effectiveness and make recommendation for improvement
and ensure coordination between efficiency programs for
other fuels such as electricity and natural gas;
(F) establish methodologies and processes for the
manner by which efficiency programs are developed,
administered, reviewed, and approved in the State and
report to the Secretary annually on the methodologies
and processes used to develop, administer, review, and
approve home heating oil, propane, and kerosene
programs; and
(G) ensure that evaluation, monitoring, and
verification of the efficiency programs are conducted
by an independent third-party annually with reporting
to the States, public, and the Secretary.
(d) Reports.--
(1) State.--Not later than April 30 of each year, each
State that receives funds under this section shall submit to
the Secretary a report for the previous calendar year in
accordance with such requirements as the Secretary may
prescribe that--
(A) describes the use by the State of funds
provided by this section, including a description of
the cost-effective energy efficiency programs funded;
(B) demonstrates the consumer savings, cost-
effectiveness of, and the lifetime and annual energy
savings achieved by, energy efficiency programs funded
under this section; and
(C) includes a report prepared by an independent
third party, in accordance with such regulations as the
Secretary may issue, evaluating the performance of the
cost-effective energy efficiency programs funded under
this section, including consumer savings, cost-
effectiveness of, and the lifetime and annual energy
savings of the efficiency programs.
(2) Secretary.--
(A) In general.--Not later than April 30, 2013, and
every 2 years thereafter, the Secretary shall submit to
Congress a report containing--
(i) an evaluation of the consumer savings,
cost-effectiveness of, and the lifetime and
annual energy savings achieved by, energy
efficiency programs funded under this section;
and
(ii) recommendations for means of more
effectively achieving consumer savings, cost-
effectiveness, and lifetime and annual energy
savings through efficiency programs for home
heating oil, propane, and kerosene consumer for
residential or commercial purposes.
(B) Publication.--The Secretary shall make the
reports submitted under subparagraph (A) available to
the public, including by publishing the reports on the
Internet.
(e) Enforcement.--If the Secretary determines that a State is not
in compliance with this section, the Secretary may distribute funds
that would have been distributed to the State under subsection (b)2)
among the remaining States, on a pro rata basis, for use in carrying
out programs under this section.
SEC. 602. RENEWABLE BIOMASS THERMAL ENERGY FOR COMMERCIAL BUILDINGS.
(a) Definitions.--In this section:
(1) Commercial building.--
(A) In general.--The term ``commercial building''
means a building that--
(i) is located in the United States; and
(ii) was in existence or initially designed
as of December 31, 2009.
(B) Exclusions.--The term ``commercial building''
does not include--
(i) a federally owned building; or
(ii) a residential building.
(2) Eligible building.--The term ``eligible building''
means a commercial building or multifamily residential building
that uses (or, if under development but not yet constructed, is
designed to consume) heating oil or another petroleum product
as the primary thermal energy source of the building.
(3) Multifamily residential building.--
(A) In general.--The term ``multifamily residential
building'' means a structure of 5 or more dwelling
units that--
(i) is located in the United States; and
(ii) was in existence or initially designed
as of December 31, 2009.
(B) Exclusion.--The term ``multifamily residential
building'' does not include a federally owned building.
(4) Program.--The term ``program'' means the renewable
biomass thermal energy loan program established under this
section.
(5) Qualified boiler.--The term ``qualified boiler'' means
a wood or wood-pellet fired boiler or furnace that--
(A) has a capacity of not less than 300,000 Btu per
hour; and
(B) meets or exceeds 60 percent total system
efficiency based on lower heating value.
(6) Qualified program delivery entity.--The term
``qualified program delivery entity'' means a State, political
subdivision of a State, tribal government, energy utility,
natural gas utility, nonprofit or community-based organization,
energy service company, retailer, or any other qualified entity
that--
(A) meets the eligibility requirements of this
section; and
(B) is approved by the State that administers the
program in the State.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Establishment.--The Secretary shall establish a renewable
biomass thermal energy loan program under which the Secretary shall
make grants to States to support financial assistance provided by
qualified program delivery entities for replacing, in eligible
buildings, thermal energy systems that use heating oil or another
petroleum product in qualified boilers.
(c) Eligibility of Qualified Program Delivery Entities.--To be
eligible to participate in the program, a qualified program delivery
entity--
(1) shall offer a financing product under which eligible
participants may pay over time for the cost to the owner of an
eligible building (after all applicable Federal, State, local,
and other rebates or incentives are applied) of replacing or
redesigning a thermal energy system that uses heating oil or
another petroleum product with a qualified boiler;
(2) shall offer an incentive or other strategy for
encouraging the owner of an eligible building to make energy
efficiency improvements to the thermal energy delivery system
of an eligible building at the same time as a qualified boiler
is installed;
(3) shall establish standard underwriting criteria to
determine the eligibility of program applicants, which criteria
shall be consistent with commercially recognized best practices
applicable to the form of financial assistance being provided
(as determined by the designated entity administering the
program in the State); and
(4) may establish and offer financing mechanisms to pool
the needs of multiple eligible buildings into a single finance
package in order to lower transactions costs and enable
projects in small or low-income municipalities to participate
in the program.
(d) Allocation.--In making funds available to States for each
fiscal year under this section, the Secretary shall use the formula
used to allocate funds to States to carry out State energy conservation
plans established under part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321 et seq.).
(e) Qualified Program Delivery Entities.--Before making a grant to
a State under this section, the Secretary shall require the Governor of
the State to provide to the Secretary a letter of assurance that the
State--
(1) has 1 or more qualified program delivery entities that
meet the requirements of this section;
(2) has established a loan program mechanism that
incorporates an effective repayment mechanism, which may
include--
(A) on-utility-bill repayment;
(B) tax assessment or other form of property
assessment financing;
(C) municipal service charges;
(D) energy or energy efficiency services contracts;
or
(E) alternative contractual repayment mechanisms
that have been demonstrated to have appropriate risk
mitigation features; and
(3) will provide, in a timely manner, all information
regarding the administration of the program as the Secretary
may require to permit the Secretary to meet the reporting
requirements of subsection (h).
(f) Use of Grant Funds.--Grant funds made available to States under
the program may be used to support financing products offered by
qualified program delivery entities to eligible participants, by
providing--
(1) interest rate reductions;
(2) loan loss reserves or other forms of credit
enhancement;
(3) revolving loan funds from which qualified program
delivery entities may offer direct loans;
(4) other debt instruments or financial products
necessary--
(A) to maximize leverage provided through available
funds; and
(B) to support widespread deployment of qualified
boilers; and
(5) technical assistance delivered for nonprofit or
community based organizations and local governments in
economically distressed counties, on financing options or
project development and design offered to eligible entities,
particularly eligible entities located in low-income
communities, HUB zones, or other Federal designations aimed at
increasing the participation and benefit from Federal programs
of underserved or low-income communities.
(g) Use of Repayment Funds.--In the case of a revolving loan fund
established by a State described in subsection (f)(3), a qualified
program delivery entity may use funds repaid by eligible participants
under the program to provide financial assistance for additional
eligible participants to make improvements described in subsection (b)
in a manner that is consistent with this section or other such criteria
as are prescribed by the State.
(h) Program Evaluation.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to Congress a program
evaluation that describes--
(1) how many eligible participants have participated in the
program;
(2) how many jobs have been created through the program,
directly and indirectly;
(3) what steps could be taken to promote further deployment
of qualified boilers;
(4) the quantity of verifiable energy savings, renewable
energy deployment, eligible building owner energy bill savings,
and other benefits of the program; and
(5) the performance of the programs carried out by
qualified program delivery entities under this section,
including information on the rate of default and repayment.
(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary for
each of fiscal years 2011 through 2020.
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