A bill to promote the domestic development and deployment of natural gas and clean energy technologies.

Summary: Natural Gas Energy and Alternatives Rewards Act or the NGEAR Act - Amends the Internal Revenue Code to extend through 2016: (1) the excise tax credits for alternative fuels and alternative fuel mixtures; and (2) the tax credit for depreciable property used for alternative fuel vehicle refueling, including property relating to hydrogen.

Amends the Energy Policy and Conservation Act to direct the Secretary of Transportation (DOT) to establish a rebate program through 2016 for the purchase of alternatively fueled buses by: (1) a public or private entity providing transportation exclusively for school students, personnel, and equipment; or (2) a public entity providing mass transit services to the public. Allows such entities a rebate equal to the lesser of 30% of the purchase price of such a bus or $15,000.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Natural Gas Energy and Alternatives 
Rewards Act'' or the ``NGEAR Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to establish clean energy policies 
that--
            (1) provide market certainty to drive private and 
        commercial capital investment in clean energy options;
            (2) promote clean energy technologies that will--
                    (A) lead to increased production, diversity, and 
                dissemination of energy generation; and
                    (B) enable the United States to bridge the gap from 
                foreign energy imports to secure, domestically produced 
                energy; and
            (3) contain clean energy incentives that will--
                    (A) provide for ongoing increases in energy 
                demands;
                    (B) support the growth of jobs and businesses in 
                America; and
                    (C) reduce vehicular petroleum use and emissions.

SEC. 3. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS.

    (a) In General.--Sections 6426(d)(5) and 6426(e)(3) of the Internal 
Revenue Code of 1986 are each amended by striking ``December 31, 2011 
(September 30, 2014, in the case of any sale or use involving liquefied 
hydrogen)'' and inserting ``December 31, 2016''.
    (b) Conforming Amendments for Direct Payments.--Paragraph (6) of 
section 6427(e) of the Internal Revenue Code of 1986 is amended--
            (1) by adding ``and'' at the end of subparagraph (B), and
            (2) by striking subparagraphs (C) and (D) and inserting the 
        following new subparagraph:
                    ``(C) any alternative fuel or alternative fuel 
                mixture (as defined in subsection (d)(2) or (e)(3) of 
                section 6426) sold or used after December 31, 2016.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2011.

SEC. 4. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL VEHICLE 
              REFUELING PROPERTY CREDIT.

    (a) In General.--Paragraph (1) of section 30C(g) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) in the case of property of a character subject to an 
        allowance for depreciation, after December 31, 2016, and''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2011.

SEC. 5. NATURAL GAS ENERGY AND ALTERNATIVES REBATES PROGRAM.

    Section 400CC of the Energy Policy and Conservation Act (42 U.S.C. 
6374b) is amended to read as follows:

``SEC. 400CC. ALTERNATIVE FUELS BUS PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Alternative fuel.--The term `alternative fuel' means 
        natural gas, liquid petroleum gas, hydrogen, or fuel cell.
            ``(2) Alternatively fueled bus.--The term `alternatively 
        fueled bus' means--
                    ``(A) a school bus (as defined in section 390.5 of 
                title 49, Code of Federal Regulations) that operates on 
                alternative fuel;
                    ``(B) a multifunction school activity bus (as 
                defined in section 571.3 of title 49, Code of Federal 
                Regulations) that operates on alternative fuel; or
                    ``(C) a motor vehicle that--
                            ``(i) provides public transportation (as 
                        defined in section 5302(a)(10) of title 49, 
                        United States Code); and
                            ``(ii) operates on alternative fuel.
            ``(3) Eligible entity.--The term eligible entity means--
                    ``(A) a public or private entity providing 
                transportation exclusively for school students, 
                personnel, and equipment; or
                    ``(B) a public entity providing mass transit 
                services to the public.
    ``(b) Rebate Program.--
            ``(1) In general.--The Secretary of Transportation shall 
        establish the Natural Gas Energy and Alternatives Rebates 
        Program (referred to in this section as the `NGEAR Program') to 
        subsidize the purchase of alternatively fueled buses by 
        eligible entities.
            ``(2) Amounts.--An eligible entity that purchases an 
        alternatively fueled bus during the period beginning on the 
        date of the enactment of the NGEAR Act and ending on December 
        31, 2016, is eligible to receive a rebate from the Department 
        of Transportation in an amount equal to the lesser of--
                    ``(A) 30 percent of the purchase price of the 
                alternatively fueled bus; or
                    ``(B) $15,000.
            ``(3) Application.--Eligible entities desiring a rebate 
        under this subsection shall submit an application to the 
        Secretary of Transportation that contains copies of relevant 
        sales invoices and any additional information that the 
        Secretary of Transportation may require.''.