H.R. 6564 (111th): Oil Independence for a Stronger America Act of 2010

111th Congress, 2009–2010. Text as of Dec 21, 2010 (Introduced).

Status & Summary | PDF | Source: GPO

I

111th CONGRESS

2d Session

H. R. 6564

IN THE HOUSE OF REPRESENTATIVES

December 21, 2010

(for himself and Mr. Castle) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, the Budget, Science and Technology, Oversight and Government Reform, and Natural Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To promote the oil independence of the United States, and for other purposes.

1.

Short title

(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.

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. Fuel efficiency standards and greenhouse gas emissions limitations.

Title III—Electric vehicle deployment

Sec. 301. Findings.

Sec. 302. Definitions.

Sec. 303. National electric drive vehicle deployment program.

Sec. 304. National assessment and plan.

Sec. 305. Technical assistance.

Sec. 306. Workforce training.

Sec. 307. Targeted electric drive vehicle deployment communities program.

Sec. 308. Modifications to tax credits.

Sec. 309. Qualified plug-in electric drive motor vehicle refueling property bonds.

Sec. 310. Utility planning for plug-in electric drive vehicles.

Sec. 311. Federal fleets.

Sec. 312. Advanced Batteries for Tomorrow Prize.

Sec. 313. Research and development program.

Sec. 314. Study on the supply of raw materials.

Sec. 315. Plug-in electric drive vehicle technical advisory committee.

Sec. 316. Plug-in electric drive vehicle interagency task force.

Sec. 317. Prohibition on disposing of advanced batteries in landfills.

Sec. 318. Loan guarantees.

Sec. 319. Model updating building codes, permitting and inspection processes, and zoning or parking rules.

Sec. 320. Credit for grid-interactive plug-in vehicles.

Sec. 321. Study on the collection, preservation, and access to data collected from plug-in electric drive 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 next generation biofuel producer credit.

Sec. 505. Modification of special allowance for next generation biofuel plant property.

Sec. 506. Extension of incentives for biodiesel and renewable diesel.

Sec. 507. Extension of alcohol fuels tax credits.

Sec. 508. Excise tax credits and outlay payments for alternative fuel and alternative fuel mixtures.

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. Best management practices.

Sec. 515. 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.

Title VII—Energy grants in lieu of tax credit

Sec. 701. Extension of grants for specified energy property in lieu of tax credits.

Sec. 702. Expansion of grants for specified energy property in lieu of tax credits.

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).

I

National Energy Security Program

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.

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.

II

Vehicle Fuel Economy

201.

Fuel efficiency standards and greenhouse gas emissions limitations

(a)

Automobiles

The Secretary of Transportation, pursuant to the authority provided under chapter 329 of title 49, United States Code, and the Administrator of the Environmental Protection Agency, using the authority provided under the Clean Air Act (42 U.S.C. 7401 et seq.), shall promulgate joint regulations establishing fuel efficiency standards and greenhouse gas emissions limitations for each class of automobiles subject to regulations under such chapter and 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.

(b)

Fuel economy and greenhouse gas emissions for nonroad vehicles

(1)

In general

Not later than 2 years after the date of enactment of this Act, the Secretary of Transportation and the Administrator of the Environmental Protection Agency shall promulgate joint regulations establishing fuel efficiency standards and greenhouse gas emissions limitations for nonroad vehicles to maximize reductions in oil consumption and greenhouse gas emissions.

(2)

Nonroad vehicles

The nonroad vehicles described in paragraph (1) shall include—

(A)

passenger and freight rail engines;

(B)

boat and other marine engines; and

(C)

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)

Revisions and updates to standards

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 emissions.

III

Electric vehicle deployment

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 two-thirds of total national petroleum consumption and is 94 percent reliant on petroleum;

(7)

the electrification of the transportation sector 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 transportation sector promotes national energy security because the electric power sector uses a diverse range of domestic electricity generation sources;

(9)

electric drive vehicles, 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)

is a critical component of a comprehensive effort to speed plug-in electric drive vehicle penetration rates;

(B)

will contribute to the larger national effort to deploy plug-in electric drive vehicles;

(C)

will inform best practices for the wide-scale deployment of plug-in electric drive vehicles; and

(D)

will substantially reduce the oil consumption of the United States.

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) 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 315.

(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 307.

(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 312.

(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 316.

303.

National electric drive vehicle deployment program

(a)

In general

There is established within the Department of Energy a national plug-in electric drive vehicle deployment program for the purpose of assisting in the deployment of plug-in electric drive vehicles.

(b)

Goals

The goals of the national program described in subsection (a) include—

(1)

the reduction and displacement of petroleum use by accelerating the deployment of plug-in electric drive vehicles in the United States;

(2)

the reduction of greenhouse gas emissions by accelerating the deployment of plug-in electric drive vehicles in the United States;

(3)

the facilitation of the rapid deployment of plug-in electric drive vehicles;

(4)

the achievement of significant market penetrations by plug-in electric drive vehicles nationally;

(5)

the establishment of models for the rapid deployment of plug-in electric drive vehicles nationally, including models for the deployment of residential, private, and publicly available charging infrastructure;

(6)

the increase of consumer knowledge and acceptance of plug-in electric drive vehicles;

(7)

the encouragement of the innovation and investment necessary to achieve mass market deployment of plug-in electric drive vehicles;

(8)

the facilitation of the integration of plug-in electric drive vehicles into electricity distribution systems and the larger electric grid while maintaining grid system performance and reliability;

(9)

the provision of technical assistance to communities across the United States to prepare for plug-in electric drive vehicles; and

(10)

the support of workforce training across the United States relating to plug-in electric drive vehicles.

(c)

Duties

In carrying out this title, the Secretary shall—

(1)

provide technical assistance to State, local, and tribal governments that want to create deployment programs for plug-in electric drive vehicles in the communities over which the governments have jurisdiction;

(2)

perform national assessments of the potential deployment of plug-in electric drive vehicles;

(3)

synthesize and disseminate data from the deployment of plug-in electric drive vehicles;

(4)

develop best practices for the successful deployment of plug-in electric drive vehicles;

(5)

carry out workforce training under section 306;

(6)

establish the targeted plug-in electric drive vehicle deployment communities program under section 307; and

(7)

in conjunction with the Task Force, make recommendations to Congress and the President on methods to reduce the barriers to plug-in electric drive vehicle deployment.

(d)

Report

Not later than 18 months after the date of enactment of this Act and biennially thereafter, the Secretary shall submit to the appropriate committees of Congress a report on the progress made in implementing the national program described in subsection (a) that includes—

(1)

a description of the progress made by—

(A)

the technical assistance program under section 305; and

(B)

the workforce training program under section 306; and

(2)

any updated recommendations of the Secretary for changes in Federal programs to promote the purposes of this title.

(e)

National information clearinghouse

The Secretary shall make available to the public, in a timely manner, information regarding—

(1)

the cost, performance, usage data, and technical data regarding plug-in electric drive vehicles and associated infrastructure, including information from the deployment communities established under section 307; and

(2)

any other educational information that the Secretary determines to be appropriate.

(f)

Authorization of appropriations

For the period of fiscal years 2011 through 2016, there are authorized to be appropriated $100,000,000 to carry out sections 303 through 305.

304.

National assessment and plan

(a)

In general

Not later than 2 years after the date of enactment of this Act, the Secretary shall carry out a national assessment and develop a national plan for plug-in electric drive vehicle deployment that includes—

(1)

an assessment of the maximum feasible deployment of plug-in electric drive vehicles by 2020 and 2030;

(2)

the establishment of national goals for market penetration of plug-in electric drive vehicles by 2020 and 2030;

(3)

a plan for integrating the successes and barriers to deployment identified by the deployment communities program established under section 307 to prepare communities across the Nation for the rapid deployment of plug-in electric drive vehicles;

(4)

a plan for providing technical assistance to communities across the United States to prepare for plug-in electric drive vehicle deployment;

(5)

a plan for quantifying the reduction in petroleum consumption and the net impact on greenhouse gas emissions due to the deployment of plug-in electric drive vehicles; and

(6)

in consultation with the Task Force, any recommendations to the President and to Congress for changes in Federal programs (including laws, regulations, and guidelines)—

(A)

to better promote the deployment of plug-in electric drive vehicles; and

(B)

to reduce barriers to the deployment of plug-in electric drive vehicles.

(b)

Updates

Not later than 2 years after the date of development of the plan described in subsection (a), and not less frequently than once every 2 years thereafter, the Secretary shall use market data and information from the targeted plug-in electric drive vehicle deployment communities program established under section 307 and other relevant data to update the plan to reflect real world market conditions.

305.

Technical assistance

(a)

Technical assistance to State, local, and tribal governments

(1)

In general

In carrying out this title, the Secretary shall provide, at the request of a Governor, mayor, county executive, or other appropriate official (or the designee of such an official), technical assistance to a State, local, or tribal government to assist with the deployment of plug-in electric drive vehicles.

(2)

Requirements

The technical assistance described in paragraph (1) shall include—

(A)

training on codes and standards for building and safety inspectors;

(B)

training on best practices for expediting permits and inspections;

(C)

education and outreach on frequently asked questions relating to the various types of plug-in electric drive vehicles and associated infrastructure, battery technology, and disposal; and

(D)

the dissemination of information regarding best practices for the deployment of plug-in electric drive vehicles.

(3)

Priority

In providing technical assistance under this subsection, the Secretary shall give priority to—

(A)

communities that have established public and private partnerships, including partnerships comprised of—

(i)

elected and appointed officials from each of the participating State, local, and tribal governments;

(ii)

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 and commercial entities with public access locations);

(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;

(B)

communities that, as determined by the Secretary, have best demonstrated that the public is likely to embrace plug-in electric drive vehicles, giving particular consideration to communities that—

(i)

have documented waiting lists to purchase plug-in electric drive vehicles;

(ii)

have developed projections of the quantity of plug-in electric drive vehicles supplied to dealers; and

(iii)

have assessed the quantity of charging infrastructure installed or for which permits have been issued;

(C)

communities that have shown a commitment to serving diverse consumer charging infrastructure needs, including the charging infrastructure needs for single-family and multifamily housing and public and privately owned commercial infrastructure; and

(D)

communities that have established regulatory and educational efforts to facilitate consumer acceptance of electric drive vehicles, including by—

(i)

adopting (or being in the process of adopting) streamlined permitting and inspections processes for residential charging infrastructure; and

(ii)

providing customer informational resources, including providing plug-in electric drive information on community or other Web sites.

(4)

Best practices

The Secretary shall collect and disseminate information to State, local, and tribal governments creating plans to deploy plug-in electric drive vehicles on best practices (including codes and standards) that uses data from—

(A)

the program established by section 307;

(B)

the activities carried out by the Task Force; and

(C)

existing academic and industry studies of the factors that contribute to the successful deployment of new technologies, particularly studies relating to alternative fueled vehicles.

(5)

Grants

(A)

In general

The Secretary shall establish a program to provide grants to State, local, and tribal governments to assist the governments—

(i)

in preparing a community deployment plan under section 307; and

(ii)

in preparing and implementing programs that support the deployment of plug-in electric drive vehicles.

(B)

Application

A State, local, or tribal government that seeks to receive a grant under this paragraph shall submit to the Secretary an application for the grant at such time, in such form, and containing such information as the Secretary may prescribe.

(C)

Use of funds

A State, local, or tribal government receiving a grant under this paragraph shall use the funds—

(i)

to develop a community deployment plan that shall be submitted to the next available competition under section 307; and

(ii)

to carry out activities that encourage the deployment of plug-in electric drive vehicles, including—

(I)

planning for and installing charging infrastructure, particularly to develop and demonstrate diverse and cost-effective planning, installation, and operations options for deployment of single family and multifamily residential, workplace, and publicly available charging infrastructure;

(II)

updating building, zoning, or parking codes and permitting or inspection processes;

(III)

workforce training, including the training of permitting officials;

(IV)

public education described in the proposed marketing plan;

(V)

shifting State, local, or tribal government fleets to plug-in electric drive vehicles, at a rate in excess of the existing alternative fueled fleet vehicles acquisition requirements for Federal fleets under section 303(b)(1)(D) of the Energy Policy Act of 1992 (42 U.S.C. 13212(b)(1)(D)); and

(VI)

any other activities, as determined to be necessary by the Secretary.

(D)

Criteria

The Secretary shall develop and publish criteria for the selection of technical assistance grants, including requirements for the submission of applications under this paragraph.

(E)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this paragraph.

(b)

Updating model building codes, permitting and inspection processes, and zoning or parking rules

(1)

In general

Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the American Society of Heating, Refrigerating and Air-Conditioning Engineers, the International Code Council, and any other organizations that the Secretary determines to be appropriate, shall develop and publish guidance for—

(A)

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;

(B)

model construction permitting or inspection processes that allow for the 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 not later than 1 week after a request); and

(C)

model zoning, parking rules, or other local ordinances that—

(i)

facilitate the installation of publicly available charging infrastructure, including commercial entities that provide public access to infrastructure; and

(ii)

allow for access to publicly available charging infrastructure.

(2)

Optional adoption

An applicant for selection for technical assistance under this section or as a deployment community under section 307 shall not be required to use the model building codes, permitting and inspection processes, or zoning, parking rules, or other ordinances included in the report under paragraph (1).

(3)

Smart grid integration

In developing the model codes or ordinances described in paragraph (1), the Secretary shall consider smart grid integration.

306.

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 work on and 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)

Authorization of appropriations

There is authorized to be appropriated $150,000,000 to carry out this section.

307.

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)

Existing activities

In carrying out the Program, the Secretary shall coordinate and supplement, not supplant, any ongoing plug-in electric drive deployment activities under section 131 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17011).

(3)

Phase 1

(A)

In general

The Secretary shall establish a competitive process to select 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 3-year period beginning on the date funding under this title is first provided to the deployment community.

(4)

Phase 2

Not later than 3 years after the date of enactment of this Act, the Secretary shall submit to Congress a report that analyzes the success of phase 1 and, if, based on the phase 1 analysis, the Secretary determines that a phase 2 program is warranted, makes recommendations and describes a plan for phase 2, 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, such as fuel cells, 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 400,000 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 single-family and multifamily residential, workplace, 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 or improving 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, workplace, 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, including charging profile data at unit and aggregate levels, to inform best practices for rapidly deploying plug-in electric drive vehicles in other locations, including for the installation of charging infrastructure;

(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; and

(10)

to increase domestic manufacturing capacity and commercialization in a manner that will establish the United States as a world leader in plug-in electric drive vehicle technologies.

(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 density, demographics, urban and suburban composition, typical commuting patterns, climate, and type of utility (including investor-owned, publicly owned, cooperatively owned, distribution-only, and vertically integrated utilities);

(ii)

the combination of selected communities is diverse in geographic distribution, and at least 1 deployment community is located in each Petroleum Administration for Defense District;

(iii)

at least 1 community selected has a population of less than 125,000;

(iv)

grants are of a sufficient amount such that each deployment community will achieve significant market penetration; and

(v)

the deployment communities are representative of 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;

(C)

in addition to the criteria described in subparagraph (A), may give preference to applicants proposing a greater non-Federal cost share; and

(D)

when considering deployment community plans, shall take into account previous Department of Energy and other Federal investments to ensure that the maximum domestic benefit from Federal investments is realized.

(3)

Criteria

(A)

In general

Not later than 120 days after the date of enactment of this Act, and not later than 90 days after the date on which any subsequent amounts are appropriated for the Program, 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 3-year duration of the Program;

(ii)

data that demonstrate that——

(I)

the public is likely to embrace plug-in electric drive vehicles, which may include—

(aa)

the quantity of plug-in electric drive vehicles purchased;

(bb)

the number of individuals on a waiting list to purchase a plug-in electric drive vehicle;

(cc)

projections of the quantity of plug-in electric drive vehicles supplied to dealers; and

(dd)

any assessment of the quantity of charging infrastructure installed or for which permits have been issued; 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, and secondarily, private, or public sector plug-in electric drive fleet vehicles, but may also include—

(I)

medium- and heavy-duty hybrid vehicles;

(II)

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

(III)

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 and commercial entities with public access locations);

(VI)

plug-in electric drive vehicle manufacturers or retailers;

(VII)

third-party providers of residential, private, and publicly available 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, private, and publicly available charging infrastructure, including—

(i)

an assessment of the number of consumers who will have access to private residential charging infrastructure in single-family or multifamily residences;

(ii)

options for accommodating plug-in electric drive vehicle owners who are not able to charge vehicles at their place of residence;

(iii)

an assessment of the number of consumers who will have access to workplace charging infrastructure;

(iv)

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 feasible;

(v)

an estimate of the number and dispersion of publicly and privately owned charging stations that will be publicly or commercially available;

(vi)

an estimate of the quantity of charging infrastructure that will be privately funded or located on private property; and

(vii)

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 and consumer education relating to 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 in a timely manner;

(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)

a plan to ensure that each resident in a deployment community who purchases and registers a new plug-in electric drive vehicle throughout the duration of the deployment community receives a minimum of $2,500 in consumer benefits, in addition to any Federal incentives, that may include—

(i)

a rebate of part of the purchase price of the vehicle;

(ii)

reductions in sales taxes or registration fees;

(iii)

rebates or reductions in the costs of permitting, purchasing, or installing home plug-in electric drive vehicle charging infrastructure; and

(iv)

rebates or reductions in State or local toll road access charges;

(J)

additional consumer benefits, such as preferred parking spaces or single-rider access to high-occupancy vehicle lanes for plug-in electric drive vehicles;

(K)

a proposed plan for making necessary utility and grid upgrades, including economically sound and cybersecure information technology upgrades and employee training, 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;

(ii)

analysis of potential impacts to the grid;

(iii)

plans for using information technology or third-party aggregators—

(I)

to minimize the effects of charging on peak loads;

(II)

to enhance reliability; and

(III)

to provide other grid benefits;

(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;

(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;

(P)

a plan to ensure that transmission and distribution infrastructure investment costs are minimized for utility customers;

(Q)

a plan to encourage vehicle charging during off peak hours and to minimize the need for new electrical generating capacity builds; and

(R)

a plan to maximize the use of renewable energy in plug-in electric vehicle charging.

(d)

Phase 1 applications and grants

(1)

Applications

(A)

In general

Not later than 150 days after the date of publication by the Secretary of the selection criteria described in subsection (c)(3), any State, tribal, or local government, or group of State, tribal, or local governments, may apply to the Secretary to become a deployment community.

(B)

Joint sponsorship

(i)

In general

An application submitted under subparagraph (A) may be jointly sponsored by electric utilities, automobile manufacturers, technology providers, carsharing companies or organizations, third-party plug-in electric drive vehicle service providers, or other appropriated entities.

(ii)

Disbursement of grants

A grant provided under this subsection shall only be disbursed to a State, tribal, or local government, or group of State, tribal, or local governments, regardless of whether the application is jointly sponsored under clause (i).

(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)(I);

(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 and marketing described in the proposed marketing plan;

(vi)

shifting State, tribal, or local government fleets to plug-in electric drive vehicles, at a rate in excess of the existing alternative fueled fleet vehicle acquisition requirements for Federal fleets under section 303(b)(1)(D) of the Energy Policy Act of 1992 (42 U.S.C. 13212(b)(1)(D)); and

(vii)

necessary utility and grid upgrades as described in subsection (c)(4)(K);

(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;

(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 Secretary may vest title or other property interests acquired under projects funded under this Act in any entity, including the United States.

(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;

(B)

provide for the protection of consumer privacy, as appropriate; and

(C)

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)

Proprietary information

The Secretary shall, as appropriate, provide for the protection of proprietary information and intellectual property rights.

(g)

Authorization of Appropriations

There is authorized to be appropriated to carry out this section $2,000,002,000.

(h)

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.

308.

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 under section 307 of 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 30D(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 such Code 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.

309.

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 such Code 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 such Code is amended by adding at the end the following new section:

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 such Code 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.

.

310.

Utility planning for plug-in electric drive vehicles

(a)

In general

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

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 of penetration and charging scenarios (including charging rates and daily hours of charging) would have on generation, distribution infrastructure, and 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 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 nonregulated 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 be 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 nonregulated utility may consider whether, and to what extent, to allow cost recovery for plans and implementation of plans.

;

(2)

in section 112(b) (16 U.S.C. 2622(b), by adding at the end the following:

(7)
(A)

Not later than 2 years after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standards established by paragraph (20) of section 111(d).

(B)

Not later than 3 years after the date of the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to the standards established by paragraph (20) of section 111(d).

;

(3)

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

(4)

in section 112(d) (16 U.S.C. 2622(d)), in the matter preceding paragraph (1), by striking (19) and inserting (20).

(b)

Report

(1)

In general

The Secretary, in consultation with the Technical Advisory Committee, shall convene a group of utility stakeholders, charging infrastructure providers, third-party aggregators, and others, as appropriate, to discuss and determine the potential models for the technically and logistically challenging issues involved in using electricity as a fuel for vehicles, including—

(A)

accommodation for billing for charging a plug-in electric drive vehicle, both at home and at publicly available charging infrastructure;

(B)

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;

(C)

integration of plug-in electric drive vehicles with smart grid, including protocols and standards, necessary equipment, and information technology systems; and

(D)

any other barriers to installing sufficient and appropriate charging infrastructure.

(2)

Report

Not later than 2 years after the date of enactment of this Act, and biennially thereafter, the Secretary shall submit to the appropriate committees of Congress a report that includes information on—

(A)

the issues and model solutions described in paragraph (1); and

(B)

any other issues that the Task Force and Secretary determine to be appropriate

311.

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 every 3 years thereafter, 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;

(3)

the estimated cost to the Federal Government for vehicle purchases under paragraph (2) for each fiscal year; and

(4)

a description of any updates to the assessment and plan based on new market data.

(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 web site

The Federal Energy Management Program shall maintain and regularly update a publicly available Web site that provides information on the status of plug-in electric vehicles in the Federal fleet.

(f)

Acquisition priority

Section 507(g) of the Energy Policy Act of 1992 (42 U.S.C. 13257(g)) is amended by adding at the end the following:

(5)

Priority

The Secretary, to the maximum extent practicable, shall prioritize the acquisition of plug-in electric drive vehicles (as defined in section 131(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17011(a)) over nonelectric alternative fueled vehicles.

.

(g)

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.

312.

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 amounts determined by the Secretary, in recognition of breakthrough achievements in research, development, demonstration, and commercial application of—

(A)

activities described in subsection (b); or

(B)

advances in battery durability, energy density, and power density.

(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:

(38)

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—

(1)

$10,000,000 to carry out subsection (g)(1); and

(2)

$1,000,000 to carry out subsection (g)(2).

313.

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, plug-in electric drive vehicle components, plug-in electric drive vehicle infrastructure, and other technologies supporting the development, manufacture, and deployment of plug-in 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;

(C)

new technologies in electricity storage for vehicles; and

(D)

new financing or business models that will help reduce the initial costs of energy storage components or ownership costs 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;

(C)

identifies the infrastructure, technology, and equipment needed to manage the charging activity of the batteries used in stationary sources; and

(D)

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)

Secondary Use 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;

(3)

$25,000,000 for use in providing grants described in subsection (c) for fiscal years 2011 through 2020; and

(4)

$5,000,000 for use in conducting the study described in subsection (d) for fiscal years 2011 through 2013.

314.

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.

315.

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 Act.

(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.

316.

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).

317.

Prohibition on disposing of advanced batteries in landfills

(a)

Definition of advanced battery

(1)

In general

In this section, the term advanced battery means a battery that is a secondary (rechargeable) electrochemical energy storage device that has enhanced energy capacity.

(2)

Exclusions

The term advanced battery does not include—

(A)

a primary (nonrechargeable) battery; or

(B)

a lead-acid battery that is used to start or serve as the principal electrical power source for a plug-in electric drive vehicle.

(b)

Requirement

An advanced battery from a plug-in electric drive vehicle shall be disposed of in accordance with the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) (commonly known as the Resource Conservation and Recovery Act of 1976).

318.

Loan guarantees

(a)

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:

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.

.

(b)

Loan guarantees for charging infrastructure

Section 1705(a) of the Energy Policy Act of 2005 (42 U.S.C. 16516(a)) is amended by adding at the end the following:

(4)

Charging infrastructure and networks of charging infrastructure for plug-in drive electric vehicles, if the charging infrastructure will be operational prior to December 31, 2016.

.

319.

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.

320.

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:

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 such Code 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.

321.

Study on the collection, preservation, and access to data collected from plug-in electric drive vehicles

(a)

In general

Not later than 90 days after the date of enactment of this Act, the Secretary, in consultation with the Committee, shall enter into an agreement with the National Academy of Sciences under which the Academy shall conduct a study that—

(1)

identifies—

(A)

the data that may be collected from plug-in electric drive vehicles, including data on the location, charging patterns, and usage of plug-in electric drive vehicles;

(B)

the scientific, economic, commercial, security, and historic potential of the data described in subparagraph (A); and

(C)

any laws or regulations that relate to the data described in subparagraph (A); and

(2)

analyzes and provides recommendations on matters that include procedures, technologies, and rules relating to the collection, storage, and preservation of the data described in paragraph (1)(A).

(b)

Report

Not later than 15 months after the date of an agreement between the Secretary and the Academy under subsection (a), the National Academy of Sciences shall submit to the appropriate committees of Congress a report that describes the results of the study under subsection (a).

(c)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $1,000,000.

IV

Transportation infrastructure

A

Transportation options for families and businesses

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:

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 Web site 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 Web site 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 Web site 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 Web site 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)

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.

(e)

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.

.

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

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—

(1)

to be fair and equitable; and

(2)

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.

403.

Commuter benefits equity

(a)

Uniform Dollar Limitation for All Types of Transportation Fringe Benefits

(1)

In general

(A)

Paragraph (2) of section 132(f) of the Internal Revenue Code of 1986 (relating to limitation on exclusion) is amended—

(i)

by striking $100 in subparagraph (A) and inserting $230,

(ii)

by striking $175 in subparagraph (B) and inserting $230, and

(iii)

by striking and (B) in subparagraph (A) and inserting , (B), and (D).

(B)

Subclause (II) of section 132(f)(5)(F)(iii) of such Code is amended by striking , (B),.

(2)

Repeal of constructive receipt treatment of bicycle commuting reimbursements

Paragraph (4) of section 132(f) of such Code is amended by striking (other than a qualified bicycle commuting reimbursement).

(3)

Inflation adjustment conforming amendments

Subparagraph (A) of section 132(f)(6) of such Code (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.

(4)

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;

.

B

Freight transportation

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).

412.

Freight rail congestion grants

(a)

In general

Section 24105 of title 49, United States Code, is amended to read as follows:

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 241 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.

.

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).

V

Alternative transportation fuels

A

Advanced biofuels

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—

(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 any advanced biofuel (as defined in section 211(o)(1)(B) of the Clean Air Act) which—

(i)

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), and

(ii)

the Secretary of the Treasury determines is produced in commercial quantities of less than 500,000,000 gallons annually.

(E)

Special rule for algal biocrude

For purposes of this paragraph, in the case of a facility which produces fuel which is derived from any cultivated algae, cyanobacteria, or lemna, and which is sold by the taxpayer to another person for refining by such other person into an advanced biofuel—

(i)

such facility shall be treated as a qualified advanced biofuel facility, and

(ii)

except as provided in this subparagraph, such fuel (and any fuel derived from such fuel) shall not be taken into account under this section with respect to the taxpayer or any other person.

(F)

Special rule for conversion of ethanol fuel production facilities

(i)

In general

In the case of a facility which produces ethanol and which is retrofitted to produce biobutanol, the credit determined under this section shall be determined without regard to the cost of the portion of the facility which produced ethanol.

(ii)

Termination

Clause (i) shall not apply to any property placed in service during any taxable year beginning after the first calendar year during which the Secretary determines the annual capacity of biobutanol facilities placed in service in the United States to be 500,000,000 gallons or more.

(iii)

Biobutanol

For purposes of this paragraph, the term biobutanol means butanol produced from renewable biomass (as defined in section 211(o)(1)(I) of the Clean Air Act).

(G)

Coordination with other fuel provisions

No credit shall be allowed under section 40, 40A, or 6426 for any taxable year with respect to any qualified advanced biofuel facility or any fuel produced by such facility.

.

(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.

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

(1)

In general

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)—

(A)

such qualified property shall be treated as specified energy property for purposes of this section, and

(B)

in applying this section to such qualified property—

(i)

subsection (a) shall be applied—

(I)

by substituting the 2-year period beginning on the date of the enactment of this subsection for 2009 or 2010 each place it appears, and

(II)

by substituting after such 2-year period for 2010 in paragraph (2) thereof,

(ii)

the applicable percentage with respect to such qualified property shall be 30 percent,

(iii)

the credit termination date with respect to such qualified property shall be January 1, 2016, and

(iv)

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.

(2)

Coordination with other fuels credit

In the case of any qualified advanced biofuel facility which is treated as specified energy property by reason of paragraph (1), except as provided in paragraph (1), the fuel produced by such facility (and any fuel derived from such fuel) shall not be taken into account with respect to the taxpayer or any other person for purposes of determining any credit under section 40, 40A, or 6426 of the Internal Revenue Code of 1986.

.

503.

Inclusion of algae-based biofuel in definition of cellulosic biofuel

(a)

In general

Subclause (I) of section 40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is amended to read as follows:

(I)

is derived solely from qualified feedstocks, and

.

(b)

Qualified feedstock; special rules for algae

Paragraph (6) of section 40(b) of such Code is amended by redesignating subparagraphs (F), (G), and (H) as subparagraphs (H), (I), and (J), respectively, and by inserting after subparagraph (E) the following new subparagraphs:

(F)

Qualified feedstock

For purposes of this subparagraph—

(i)

In general

The term qualified feedstock means—

(I)

any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and

(II)

any algal organism.

(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).

(G)

Special rule for algal biocrude

For purposes of this paragraph, in the case of a taxpayer who produces fuel which is derived from any cultivated algae, cyanobacteria, or lemna, and which is sold by the taxpayer to another person for refining by such other person into an advanced biofuel (as defined in section 48(a)(6)(C))—

(i)

such fuel shall be treated as a qualified advanced biofuel facility,

(ii)

the production of such fuel shall be treated as meeting the requirements of subparagraph (F)(i), and

(iii)

except as provided in this subparagraph, such fuel (and any fuel derived from such fuel) shall not be taken into account under this section or section 48 with respect to the taxpayer or any other person.

.

(c)

Algae treated as a qualified feedstock for purposes of bonus depreciation for biofuel plant property

(1)

In general

Subparagraph (A) of section 168(l)(2) is amended by striking solely to produce cellulosic biofuel and inserting primarily to produce next generation biofuel (as defined in section 40(b)(6)(E).

(2)

Conforming amendments

Subsection (l) of section 168 is amended—

(A)

by striking cellulosic biofuel each place it appears in the text thereof and inserting next generation biofuel,

(B)

by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively,

(C)

by striking Cellulosic in the heading of such subsection and inserting Next Generation, and

(D)

by striking cellulosic in the heading of paragraph (2) and inserting next generation.

(d)

Conforming amendments

(1)

Section 40, as amended by subsection (b), is amended—

(A)

by striking cellulosic biofuel each place it appears in the text thereof and inserting next generation biofuel,

(B)

by striking Cellulosic in the headings of subsections (b)(6), (b)(6)(E), and (d)(3)(D) and inserting Next generation, and

(C)

by striking cellulosic in the headings of subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), and (e)(3) and inserting next generation.

(2)

Clause (ii) of section 40(b)(6)(E) is amended by striking Such term shall not and inserting The term next generation biofuel shall not.

(3)

Paragraph (1) of section 4101(a) is amended by striking cellulosic biofuel and inserting next generation biofuel.

(e)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to fuels sold or used after the date of the enactment of this Act.

(2)

Application to bonus depreciation

The amendments made by subsection (c) shall apply to property placed in service after the date of the enactment of this Act.

504.

Extension of next generation biofuel producer credit

Subparagraph (J) of section 40(b)(6) of the Internal Revenue Code of 1986, as redesignated by section 503(b), is amended by striking January 1, 2013 and inserting January 1, 2016.

505.

Modification of special allowance for next generation 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)

Clarification of definition of qualified next generation biofuel plant property

Subparagraph (A) of section 168(l)(2) of such Code is amended by striking solely and inserting primarily.

(c)

Conforming amendment

Paragraph (5)(B) of section 168(l) of such Code, 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.

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 such Code is amended by striking December 31, 2009 and inserting December 31, 2015.

(2)

Subparagraph (B) of section 6427(e)(6) of such Code 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.

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

Paragraph (1) of section 40(h) such Code is amended by adding at the end the following flush sentence:

In the case of any other taxable year, such subsections shall not apply.

.

(c)

Effective date

The amendments made by this section shall apply to alcohol produced, sold, or used after December 31, 2010.

508.

Excise tax credits and outlay payments for alternative fuel and alternative fuel mixtures

(a)

Alternative fuel credit

Paragraph (5) of section 6426(d) of the Internal Revenue Code of 1986 is amended by striking after December 31, 2009 and all that follows and inserting the following:

after—

(A)

September 30, 2014, in the case of liquefied hydrogen,

(B)

December 31, 2015, in the case of fuels described in subparagraph (A), (C), (F), or (G) of paragraph (2), and

(C)

December 31, 2009, in any other case.

.

(b)

Alternative fuel mixture credit

Paragraph (3) of section 6426(e) of such Code is amended by striking after December 31, 2009 and all that follows and inserting the following:

after—

(A)

September 30, 2014, in the case of liquefied hydrogen,

(B)

December 31, 2015, in the case of fuels described in subparagraph (A), (C), (F), or (G) of subsection (d)(2), and

(C)

December 31, 2009, in any other case.

.

(c)

Payment authority

(1)

In general

Paragraph (6) of section 6427(e) of such Code is amended by striking and at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting , and, and by adding at the end the following new subparagraph:

(E)

any alternative fuel or alternative fuel mixture (as so defined) involving fuel described in subparagraph (A), (C), (F), or (G) of section 6426(d)(2) sold or used after December 31, 2010.

.

(2)

Conforming amendment

Subparagraph (C) of section 6427(e)(6) of such Code is amended by inserting or (E) after subparagraph (D).

(d)

Exclusion of black liquor from credit eligibility

The last sentence of section 6426(d)(2) of such Code is amended by striking or biodiesel and inserting biodiesel, or any fuel (including lignin, wood residues, or spent pulping liquors) derived from the production of paper or pulp.

(e)

Effective date

The amendments made by this section shall apply to fuel sold or used after December 31, 2010.

B

Powering vehicles with natural gas

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) or (C),

(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)

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)

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.

(D)

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 the following: “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.

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:

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.

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:

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.

514.

Best management practices

Not later than one year after the date of enactment of this Act, the Secretary of the Interior shall promulgate final regulations that require oil and gas operators to use best management practices that ensure the sound, efficient, and environmentally responsible development of oil and gas on Federal lands in a manner that avoids where practical, minimizes, and mitigates actual and anticipated impacts to environmental habitat functions resulting from oil and gas development. Such regulations may allow the Secretary to approve site-specific adjustments to address unique issues and circumstances, on a case-by-case basis. All such regulations shall be consistent with the United States trust responsibility to Indian tribes.

515.

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.

VI

Heating oil and propane conservation

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.

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.

VII

Energy grants in lieu of tax credit

701.

Extension of grants for specified energy property in lieu of tax credits

(a)

In general

Subsection (a) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 is amended—

(1)

in paragraph (1), by striking 2009 or 2010 and inserting 2009, 2010, 2011, 2012, 2013, 2014, or 2014, and

(2)

in paragraph (2)—

(A)

by striking after 2010 and inserting after 2015, and

(B)

by striking 2009 or 2010 and inserting 2009, 2010, 2011, 2012, 2013, 2014, or 2015.

(b)

Conforming Amendment

Subsection (j) of section 1603 of division B of such Act is amended by striking 2011 and inserting 2016.

702.

Expansion of grants for specified energy property in lieu of tax credits

(a)

Grants Allowed for Certain Governmental Units and Cooperative Electric Companies

(1)

In general

Subsection (g) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 is amended—

(A)

in paragraph (1), by inserting other than a governmental unit which is a State utility with a service obligation (as such terms are defined in section 217 of the Federal Power Act, as in effect on the date of the enactment of this paragraph), after thereof),,

(B)

in paragraph (2), by inserting other than a mutual or cooperative electric company described in section 50(c)(12) of such Code after such Code, and

(C)

by striking paragraph (3) and redesignating paragraph (4) as paragraph (3).

(2)

Conforming amendment

Paragraph (3) of section 1603(g) of division B of such Act, as redesignated by paragraph (1)(C), is amended by striking paragraph (1), (2), or (3) and inserting paragraph (1) or (2).

(b)

No Grants for Portion of Property Financed With CREBs or Tax-Exempt Bonds

Section 1603 of division B of such Act, as amended by section 2, is amended by redesignating subsections (h), (i), and (j) as subsections (i), (j), and (k), respectively, and by inserting after subsection (g) the following new subsection:

(h)

Special Rule for Bond Financed Property

The amount of any grant under this section with respect to any specified energy property shall not exceed an amount equal to—

(1)

the basis of such property, over

(2)

the portion of the basis of such property which is allocable to proceeds of any bond which is designated as a new clean renewable energy bond under section 54C of such Code or any bond the interest on which is exempt from tax under section 103 of such Code.

.

(c)

Treatment of Grants for Cooperative Electric Companies

Paragraph (12) of section 501(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(I)

In the case of a mutual or cooperative electric company described in this paragraph or an organization described in section 1381(a)(2)(C), subparagraph (A) shall be applied without taking into account any grant received under section 1603 of division B of the American Recovery and Reinvestment Act of 2009.

.

(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.