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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2227 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2227

   To greatly enhance America's path toward energy independence and 
  economic and national security, to conserve energy use, to promote 
innovation, to achieve lower emissions, cleaner air, cleaner water, and 
                 cleaner land, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 4, 2009

  Mr. Tim Murphy of Pennsylvania (for himself, Mr. Abercrombie, Mrs. 
  Capito, Mr. Costa, Mr. Wilson of South Carolina, Mr. Walz, and Mr. 
    Terry) introduced the following bill; which was referred to the 
 Committee on Natural Resources, and in addition to the Committees on 
 Oversight and Government Reform, Energy and Commerce, Ways and Means, 
 Science and Technology, Transportation and Infrastructure, Education 
  and Labor, the Budget, Rules, and the Judiciary, 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 greatly enhance America's path toward energy independence and 
  economic and national security, to conserve energy use, to promote 
innovation, to achieve lower emissions, cleaner air, cleaner water, and 
                 cleaner land, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American 
Conservation and Clean Energy Independence Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
         TITLE I--OFFSHORE LEASING AND OTHER ENERGY PROVISIONS

                      Subtitle A--Offshore Leasing

Sec. 101. Leasing program considered approved.
Sec. 102. Lease sales.
Sec. 103. Seaward boundaries of States.
Sec. 104. Military operations.
Sec. 105. Coordination with Adjacent States.
Sec. 106. Gulf of Mexico oil and gas.
Sec. 107. Sharing of revenues.
Sec. 108. Inventory of offshore energy resources.
Sec. 109. Prohibitions on surface occupancy and other appropriate 
                            environmental safeguards.
                 Subtitle B--Expedited Judicial Review

Sec. 121. Definitions.
Sec. 122. Exclusive jurisdiction over causes and claims relating to 
                            covered oil and natural gas activities.
Sec. 123. Time for filing petition; standing.
Sec. 124. Timetable.
Sec. 125. Limitation on scope of review and relief.
Sec. 126. Presidential waiver.
Sec. 127. Legal fees.
Sec. 128. Exclusion.
                  Subtitle C--Other Energy Provisions

Sec. 131. Elimination of restriction on energy alternatives and energy 
                            efficiency.
Sec. 132. Policies regarding buying and building American.
Sec. 133. Clean coal technology deployment grant and loan program.
    TITLE II--MODIFYING THE STRATEGIC PETROLEUM RESERVE AND FUNDING 
            CONSERVATION AND ENERGY RESEARCH AND DEVELOPMENT

Sec. 201. Findings.
Sec. 202. Definitions.
Sec. 203. Objectives.
Sec. 204. Modification of the Strategic Petroleum Reserve.
Sec. 205. Energy Independence and Security Fund.
TITLE III--CLEANER ENERGY PRODUCTION AND ENERGY CONSERVATION INCENTIVES

Sec. 301. Extension of renewable energy credit.
Sec. 302. Extension of renewable energy credit.
Sec. 303. Extension of credit for alternative fuel vehicles.
Sec. 304. Extension of alternative fuel vehicle refueling property 
                            credit.
Sec. 305. Extension of credit for energy efficient appliances.
Sec. 306. Extension of credit for nonbusiness energy property.
Sec. 307. Extension of credit for residential energy efficient 
                            property.
Sec. 308. Extension of new energy efficient home credit.
Sec. 309. Extension of energy efficient commercial buildings deduction.
Sec. 310. Extension of energy credit.
Sec. 311. Extension of credit for clean renewable energy bonds.
Sec. 312. Extension of credits for biodiesel and renewable diesel.
    TITLE IV--INCREASE DIVERSIFICATION AND EFFICIENCY OF AMERICA'S 
                   TRANSPORTATION AND ELECTRIC SYSTEM

  Subtitle A--Diversification of Fuel Source for America's Short-Haul 
                         Transportation System

Sec. 401. Minimum Federal fleet requirement.
Sec. 402. Use of HOV facilities by light-duty plug-in electric drive 
                            vehicles.
Sec. 403. Recharging infrastructure.
Sec. 404. Loan guarantees for advanced battery purchases.
Sec. 405. Study of end-of-useful life options for motor vehicle 
                            batteries.
Sec. 406. Study and demonstration electrification of postal fleet.
Sec. 407. Maximum weight study for energy efficiency and safety.
      Subtitle B--Incentives for Diversification of Transportation

Sec. 420. Amendment of 1986 Code.
Sec. 421. Extension of credit for medium and heavy-duty hybrid 
                            vehicles.
Sec. 422. Extension of credit and extension of temporary increase in 
                            credit for alternative fuel vehicle 
                            refueling property.
Sec. 423. Extension and expansion of credit for new qualified plug-in 
                            electric drive motor vehicles.
Sec. 424. Extension of credit for certain plug-in electric vehicles.
Sec. 425. Credit for new qualified plug-in electric drive motor 
                            vehicles.
Sec. 426. Tax credit for most efficient vehicle in class.
Sec. 427. Study of development of common standards for PHEVs and EVs 
                            between the United States, Europe and Asia.
       Subtitle C--Low Carbon Diversification of Electric System

Sec. 431. Innovative low-carbon loan guarantee program.

         TITLE I--OFFSHORE LEASING AND OTHER ENERGY PROVISIONS

                      Subtitle A--Offshore Leasing

SEC. 101. LEASING PROGRAM CONSIDERED APPROVED.

    (a) In General.--The Draft Proposed Outer Continental Shelf Oil and 
Gas Leasing Program 2010-2015 issued by the Secretary of the Interior 
(referred to in this section as the ``Secretary'') under section 18 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is considered to 
have been approved by the Secretary as a final oil and gas leasing 
program under that section, and is considered to be in full compliance 
with and in accordance with all requirements of the Outer Continental 
Shelf Lands Act.
    (b) Final Environmental Impact Statement.--The Secretary is 
considered to have issued a final environmental impact statement for 
the program described in subsection (a) in accordance with all 
requirements under section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(C)).

SEC. 102. LEASE SALES.

    (a) Outer Continental Shelf.--
            (1) In general.--Except as provided in paragraph (2), not 
        later than 30 days after the date of enactment of this Act and 
        every 270 days thereafter, the Secretary of the Interior 
        (referred to in this section as the ``Secretary'') shall 
        conduct a lease sale in each outer Continental Shelf planning 
        area for which the Secretary determines that there is a 
        commercial interest in purchasing Federal oil and gas leases 
        for production on the outer Continental Shelf.
            (2) Subsequent determinations and sales.--If the Secretary 
        determines that there is not a commercial interest in 
        purchasing Federal oil and gas leases for production on the 
        outer Continental Shelf in a planning area under this 
        subsection, not later than 2 years after the date of enactment 
        of the determination and every 2 years thereafter, the 
        Secretary shall--
                    (A) determine whether there is a commercial 
                interest in purchasing Federal oil and gas leases for 
                production on the outer Continental Shelf in the 
                planning area; and
                    (B) if the Secretary determines that there is a 
                commercial interest described in subparagraph (A), 
                conduct a lease sale in the planning area.
    (b) Renewable Energy and Mariculture.--The Secretary may conduct 
commercial lease sales of resources owned by United States--
            (1) to produce renewable energy (as defined in section 
        203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))); 
        or
            (2) to cultivate marine organisms in the natural habitat of 
        the organisms.

SEC. 103. SEAWARD BOUNDARIES OF STATES.

    (a) Seaward Boundaries.--Section 4 of the Submerged Lands Act (43 
U.S.C. 1312) is amended by striking ``three geographical miles'' each 
place it appears and inserting ``12 nautical miles''.
    (b) Conforming Amendments.--Section 2 of the Submerged Lands Act 
(43 U.S.C. 1301) is amended--
            (1) in subsection (a)(2), by striking ``three geographical 
        miles'' and inserting ``12 nautical miles''; and
            (2) in subsection (b)--
                    (A) by striking ``three geographical miles'' and 
                inserting ``12 nautical miles''; and
                    (B) by striking ``three marine leagues'' and 
                inserting ``12 nautical miles''.
    (c) Effect of Amendments.--
            (1) In general.--Subject to paragraphs (2) through (4), the 
        amendments made by this section shall not effect Federal oil 
        and gas mineral rights and should not effect the States' 
        current authority within existing State boundaries.
            (2) Existing leases.--The amendments made by this section 
        shall not affect any Federal oil and gas lease in effect on the 
        date of enactment of this Act.
            (3) Taxation.--
                    (A) In general.--A State may exercise all of the 
                sovereign powers of taxation of the State within the 
                entire extent of the seaward boundaries of the State 
                (as extended by the amendments made by this section).
                    (B) Limitation.--Nothing in this paragraph affects 
                the authority of a State to tax any Federal oil and gas 
                lease in effect on the date of enactment of this Act.

SEC. 104. MILITARY OPERATIONS.

    The Secretary shall consult with the Secretary of Defense regarding 
military operations needs in the Outer Continental Shelf. The Secretary 
shall work with the Secretary of Defense to resolve any conflicts that 
might arise between such operations and leasing under this section. If 
the Secretaries are unable to resolve all such conflicts, any 
unresolved issues shall be referred by the Secretaries to the President 
in a timely fashion for immediate resolution.

SEC. 105. COORDINATION WITH ADJACENT STATES.

    Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1345) is amended--
            (1) in subsection (a) in the first sentence by inserting 
        ``, for any tract located within the Adjacent State's Adjacent 
        Zone,'' after ``government''; and
            (2) by adding the following:
    ``(f)(1) Prior to issuing a permit or approval for the construction 
of a pipeline to transport crude oil, natural gas or associated liquids 
production withdrawn from oil and gas leases on the outer Continental 
Shelf, a Federal agency must seek the concurrence of the Adjacent State 
if the pipeline is to transit the Adjacent State's Adjacent Zone 
between the outer Continental Shelf and landfall. No State may prohibit 
construction of such a pipeline within its Adjacent Zone or its State 
waters. However, an Adjacent State may require routing of such a 
pipeline to one of two alternate landfall locations in the Adjacent 
State, designated by the Adjacent State, located within 60 miles on 
either side of a proposed landfall location.
    ``(2) In this subsection:
            ``(A) The term `Adjacent State' means, with respect to any 
        program, plan, lease sale, leased tract or other activity, 
        proposed, conducted, or approved pursuant to the provisions of 
        this Act, any State the laws of which are declared, pursuant to 
        section 4(a)(2), to be the law of the United States for the 
        portion of the outer Continental Shelf on which such program, 
        plan, lease sale, leased tract or activity appertains or is, or 
        is proposed to be, conducted. For purposes of this 
        subparagraph, the term `State' includes the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        the Virgin Islands, American Samoa, Guam, and the other 
        Territories of the United States.
            ``(B) The term `Adjacent Zone' means, with respect to any 
        program, plan, lease sale, leased tract, or other activity, 
        proposed, conducted, or approved pursuant to the provisions of 
        this Act, the portion of the outer Continental Shelf for which 
        the laws of a particular Adjacent State are declared, pursuant 
        to section 4(a)(2), to be the law of the United States.''.

SEC. 106. GULF OF MEXICO OIL AND GAS.

    Section 104 of division C of the Tax Relief and Health Care Act of 
2006 (Public Law 109-432; 120 Stat. 3003) is repealed.

SEC. 107. SHARING OF REVENUES.

    (a) In General.--Section 8(g) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1337(g)) is amended--
            (1) in paragraph (2) by striking ``Notwithstanding'' and 
        inserting ``Except as provided in paragraph (6), and 
        notwithstanding'';
            (2) by redesignating paragraphs (6) and (7) as paragraphs 
        (8) and (9); and
            (3) by inserting after paragraph (5) the following:
            ``(6) Bonus bids and royalties under qualified leases.--
                    ``(A) New leases.--Of amounts received by the 
                United States as bonus bids, royalties, rentals, and 
                other sums collected under any qualified lease on 
                submerged lands made available for leasing under this 
                Act by the enactment of the American Conservation and 
                Clean Energy Independence Act that are located within 
                the seaward boundaries of a State established under 
                section 4(a)(2)(A)--
                            ``(i) 30 percent shall be paid to the 
                        States that are producing States with respect 
                        to those submerged lands;
                            ``(ii) 10 percent shall be deposited in the 
                        general fund of the Treasury;
                            ``(iii) 20 percent shall be deposited in 
                        the Renewable Energy and Energy Efficiency 
                        Reserve established by paragraph (7);
                            ``(iv) 5 percent shall be deposited into 
                        the Clean Water Reserve established by 
                        paragraph (7);
                            ``(v) 10 percent shall be deposited in the 
                        Environment Restoration Reserve established by 
                        paragraph (7);
                            ``(vi) 8 percent shall be deposited in the 
                        Conservation Reserve established by paragraph 
                        (7);
                            ``(vii) 10 percent shall be deposited in 
                        the Clean Coal Technology Deployment and Carbon 
                        Capture and Sequestration Reserve established 
                        by paragraph (7);
                            ``(viii) 5 percent shall be deposited in 
                        the Carbon Free Technology and Nuclear Energy 
                        Reserve established by paragraph (7); and
                            ``(ix) 2 percent shall be available to the 
                        Secretary of Health and Human Services for 
                        carrying out the Low-Income Home Energy 
                        Assistance Act of 1981 (42 U.S.C. 8621, et 
                        seq.).
                    ``(B) Leased tract that lies partially within the 
                seaward boundaries of a state.--In the case of a leased 
                tract that lies partially within the seaward boundaries 
                of a State, the amounts of bonus bids and royalties 
                from such tract that are subject to subparagraph 
                (A)(ii) with respect to such State shall be a 
                percentage of the total amounts of bonus bids and 
                royalties from such tract that is equivalent to the 
                total percentage of surface acreage of the tract that 
                lies within such seaward boundaries.
                    ``(C) Use of payments to states.--Amounts paid to a 
                State under subparagraph (A)(ii) shall be used by the 
                State for one or more of the following:
                            ``(i) Education.
                            ``(ii) Transportation.
                            ``(iii) Coastal restoration, environmental 
                        restoration, and beach replenishment.
                            ``(iv) Energy infrastructure.
                            ``(v) Renewable energy development.
                            ``(vi) Energy efficiency and conservation.
                            ``(vii) Any other purpose determined by 
                        State law.
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Adjacent state.--The term `Adjacent 
                        State' means, with respect to any program, 
                        plan, lease sale, leased tract or other 
                        activity, proposed, conducted, or approved 
                        pursuant to the provisions of this Act, any 
                        State the laws of which are declared, pursuant 
                        to section 4(a)(2), to be the law of the United 
                        States for the portion of the outer Continental 
                        Shelf on which such program, plan, lease sale, 
                        leased tract, or activity appertains or is, or 
                        is proposed to be, conducted.
                            ``(ii) Adjacent zone.--The term `adjacent 
                        zone' means, with respect to any program, plan, 
                        lease sale, leased tract, or other activity, 
                        proposed, conducted, or approved pursuant to 
                        the provisions of this Act, the portion of the 
                        outer Continental Shelf for which the laws of a 
                        particular adjacent State are declared, 
                        pursuant to section 4(a)(2), to be the law of 
                        the United States.
                            ``(iii) Producing state.--The term 
                        `producing State' means an Adjacent State 
                        having an adjacent zone containing leased 
                        tracts from which are derived bonus bids and 
                        royalties under a lease under this Act.
                            ``(iv) State.--The term `State' includes 
                        Puerto Rico and the other territories of the 
                        United States.
                            ``(v) Qualified lease.--The term `qualified 
                        lease' means a natural gas or oil lease made 
                        available under this Act granted after the date 
                        of the enactment of the American Conservation 
                        and Clean Energy Independence Act, for an area 
                        that is available for leasing as a result of 
                        enactment of section 101 of that Act.
                    ``(E) Application.--This paragraph shall apply to 
                bonus bids and royalties received by the United States 
                under qualified leases after September 30, 2008.
            ``(7) Establishment of reserve accounts.--
                    ``(A) In general.--For budgetary purposes, there is 
                established as a separate account to receive deposits 
                under paragraph (6)(A)--
                            ``(i) the Renewable Energy and Energy 
                        Efficiency Reserve which shall be applied--
                                    ``(I) first, to offset the 
                                alternative energy and conservation tax 
                                incentives extended by title III of the 
                                American Conservation and Clean Energy 
                                Independence Act; and
                                    ``(II) to extent not applied under 
                                subclause (I), to offset the cost of 
                                legislation enacted after the date of 
                                the enactment of the American 
                                Conservation and Clean Energy 
                                Independence Act to accelerate the use 
                                of cleaner domestic energy resources 
                                and alternative fuels; to promote the 
                                utilization of energy-efficient 
                                products and practices; to promote the 
                                development and deployment of smart 
                                transportation systems, energy 
                                efficient vehicles, and mass 
                                transportation systems that preserve 
                                the environment and increase energy 
                                efficiency of transportation; and to 
                                increase research, development, and 
                                deployment of clean renewable energy 
                                and efficiency technologies and job 
                                training programs for those purposes;
                            ``(ii) the Clean Water Reserve, to offset 
                        the cost of legislation enacted after the date 
                        of the enactment of the American Conservation 
                        and Clean Energy Independence Act to provide 
                        assistance, which may include grants, matching 
                        grants, and no- and low-interest loans, to 
                        State, county, and local governments to rebuild 
                        and modernize clean water and sewage 
                        infrastructure;
                            ``(iii) the Environment Restoration 
                        Reserve, to offset the cost of legislation 
                        enacted after the date of the enactment of the 
                        American Conservation and Clean Energy 
                        Independence Act to conduct restoration 
                        activities to improve the overall health of the 
                        ecosystems primarily or entirely within 
                        wildlife refuges, national parks, lakes, bays, 
                        rivers, and streams, including the Great Lakes, 
                        the Chesapeake and Delaware Bays, the San 
                        Francisco Bay/Sacramento San Joaquin Bay Delta, 
                        the Florida Everglades, New York Harbor, the 
                        Colorado River Basin, the Mississippi River 
                        basin and tributaries, and Intracoastal 
                        Waterways and inlets that serve them;
                            ``(iv) the Conservation Reserve, to offset 
                        the cost of legislation enacted after the date 
                        of the enactment of the American Conservation 
                        and Clean Energy Independence Act for 
                        conservation research, development, and 
                        deployment programs to increase residential 
                        home energy efficiency, such as weatherization, 
                        and conservation tax credits and deductions for 
                        energy efficiency in the residential, 
                        commercial, industrial, and public sectors 
                        including Conservation Districts;
                            ``(v) the Clean Coal Technology Deployment 
                        and Carbon Capture and Sequestration Reserve, 
                        to offset the cost of legislation enacted after 
                        the date of the enactment of the American 
                        Conservation and Clean Energy Independence Act 
                        to promote, through grants, loans, and loan 
                        guarantees, research, development, and 
                        construction projects associated with carbon 
                        capture and storage in the production of liquid 
                        transportation fuels, electricity, synthetic 
                        natural gas, and chemical feedstock, giving 
                        priority to the construction and modernization 
                        of plants that implement the most advanced 
                        pollution controls to prevent the release of 
                        carbon, particulate matter, and other 
                        pollutants; and
                            ``(vi) the Carbon Free Technology and 
                        Nuclear Energy Reserve, to offset the cost of 
                        legislation enacted after the date of the 
                        enactment of the American Conservation and 
                        Clean Energy Independence Act to promote the 
                        deployment of carbon free technologies, 
                        including through loan guarantees for 
                        commercial nuclear power plants, the 
                        disposition and recycling or reprocessing of 
                        spent fuel from nuclear power plants, and the 
                        financing of long-term safe storage of spent 
                        fuel.
                    ``(B) Procedure for adjustments.--
                            ``(i) Budget committee chairman.--After the 
                        reporting of a bill or joint resolution, or the 
                        offering of an amendment thereto or the 
                        submission of a conference report thereon, 
                        providing funding for the purposes set forth in 
                        clause (i), (ii), (iii), or (iv) of 
                        subparagraph (A) in excess of the amount of the 
                        deposits under paragraph (6)(A) for those 
                        purposes for fiscal year 2009, the chairman of 
                        the Committee on the Budget of the applicable 
                        House of Congress shall make the adjustments 
                        set forth in clause (ii) for the amount of new 
                        budget authority and outlays in that measure 
                        and the outlays flowing from that budget 
                        authority.
                            ``(ii) Matters to be adjusted.--The 
                        adjustments referred to in clause (i) are to be 
                        made to--
                                    ``(I) the discretionary spending 
                                limits, if any, set forth in the 
                                appropriate concurrent resolution on 
                                the budget;
                                    ``(II) the allocations made 
                                pursuant to the appropriate concurrent 
                                resolution on the budget pursuant to 
                                section 302(a) of the Congressional 
                                Budget Act of 1974; and
                                    ``(III) the budget aggregates 
                                contained in the appropriate concurrent 
                                resolution on the budget as required by 
                                section 301(a) of the Congressional 
                                Budget Act of 1974.
                            ``(iii) Amounts of adjustments.--The 
                        adjustments referred to in clauses (i) and (ii) 
                        shall not exceed the receipts estimated by the 
                        Congressional Budget Office that are 
                        attributable to this Act for the fiscal year in 
                        which the adjustments are made.
                    ``(C) Expenditures only by secretary of the 
                interior in consultation.--Legislation shall not be 
                treated as legislation referred to in subparagraph (A) 
                unless any expenditure under such legislation for a 
                purpose referred to in that subparagraph may be made 
                only after consultation with the Administrator of the 
                Environmental Protection Agency, the Administrator of 
                the National Oceanic and Atmospheric Administration, 
                the Secretary of the Army acting through the Corps of 
                Engineers, and, as appropriate, the Secretary of State.
            ``(8) Maintenance of effort by states.--The Secretary of 
        the Interior, the Secretary of Health and Human Services, the 
        Secretary of Energy, and any other Federal official with 
        authority to implement legislation referred to in paragraph 
        (6)(A) shall ensure that financial assistance provided to a 
        State under that legislation for any purpose with amounts made 
        available under this subsection or in any legislation with 
        respect to which paragraph (7) applies supplement, and do not 
        replace, the amounts expended by the State for that purpose 
        before the date of the enactment of the American Conservation 
        and Clean Energy Independence Act.''.
    (b) Establishment of State Seaward Boundaries.--Section 4(a)(2)(A) 
of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is 
amended in the first sentence by striking ``, and the President'' and 
all that follows through the end of the sentence and inserting the 
following: ``. Such extended lines are deemed to be as indicated on the 
maps for each Outer Continental Shelf region entitled `Alaska OCS 
Region State Adjacent Zone and OCS Planning Areas', `Pacific OCS Region 
State Adjacent Zones and OCS Planning Areas', `Gulf of Mexico OCS 
Region State Adjacent Zones and OCS Planning Areas', and `Atlantic OCS 
Region State Adjacent Zones and OCS Planning Areas', all of which are 
dated September 2005 and on file in the Office of the Director, 
Minerals Management Service. The preceding sentence shall not apply 
with respect to the treatment under section 105 of the Gulf of Mexico 
Energy Security Act of 2006 (title I of division C of Public Law 109-
432) of qualified outer Continental Shelf revenues deposited and 
disbursed under subsection (a)(2) of that section.''.

SEC. 108. INVENTORY OF OFFSHORE ENERGY RESOURCES.

    (a) In General.--The Secretary of the Interior (in this section 
referred to as the ``Secretary'') shall promptly prepare an inventory 
of offshore energy resources of the United States, including through 
conduct of geological and geophysical explorations by private industry 
in all of the United States outer Continental Shelf areas of the 
Atlantic Ocean and the Pacific Ocean under part 251 of title 30, Code 
of Federal Regulations (or successor regulations).
    (b) Environmental Studies.--Not later than 180 days after the date 
of enactment of this Act, the Secretary shall complete any 
environmental studies necessary to gather information essential to an 
accurate inventory, including geological and geophysical explorations 
under part 251 of title 30, Code of Federal Regulations (or successor 
regulations).
    (c) Effect on Oil and Gas Leasing.--No inventory that is conducted 
under this section or any other Federal law (including regulations) 
shall restrict, limit, delay, or otherwise adversely affect--
            (1) the development of any Outer Continental Shelf leasing 
        program under section 18 of the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1344); or
            (2) any leasing, exploration, development, or production of 
        any Federal offshore oil and gas leases.
    (d) Funding.--
            (1) In general.--The Secretary of the Treasury shall make a 
        1-time transfer to the Secretary, without further appropriation 
        and from royalties collected by the United States in 
        conjunction with the production of oil and gas, of such sums as 
        are necessary for the Secretary to carry out this section.
            (2) Limitation.--The amount transferred under paragraph 
        shall not exceed $50,000,000.

SEC. 109. PROHIBITIONS ON SURFACE OCCUPANCY AND OTHER APPROPRIATE 
              ENVIRONMENTAL SAFEGUARDS.

    (a) Regulations.--
            (1) In general.--The Secretary of the Interior shall 
        promulgate regulations that establish appropriate environmental 
        safeguards for the exploration and production of oil and 
        natural gas on the outer Continental Shelf.
            (2) Requirements.--The regulations shall include provisions 
        ensuring that--
                    (A) no surface facility shall be installed for the 
                purpose of production of oil or gas resources in any 
                area that is within 10 miles from the shore of any 
                coastal State, in any area of the outer Continental 
                Shelf that has not previously been made available for 
                oil and gas leasing;
                    (B) only temporary surface facilities are installed 
                for areas that are located--
                            (i) beyond 10 miles from the shore from the 
                        shore of any coastal State, in any area of the 
                        Outer Continental Shelf that has not previously 
                        been made available for oil and gas leasing; 
                        and
                            (ii) not more than 20 miles from the shore;
                    (C) the impact of offshore production facilities on 
                coastal vistas is otherwise mitigated; and
                    (D) onshore facilities that are able to draw upon 
                the resources of the outer Continental Shelf within 10 
                miles of shore are allowed.
    (b) Conforming Amendment.--Section 105 of the Department of the 
Interior, Environment, and Related Agencies Appropriations Act, 2006 
(Public Law 109-54; 119 Stat. 521) (as amended by section 103(d) of the 
Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public 
Law 109-432)) is amended by inserting ``and any other area that the 
Secretary of the Interior may offer for leasing, preleasing, or any 
related activity under section 104 of that Act'' after ``2006)''.

                 Subtitle B--Expedited Judicial Review

SEC. 121. DEFINITIONS.

    In this subtitle:
            (1) Authorizing leasing statute.--The term ``authorizing 
        leasing statute'' means the Outer Continental Shelf Lands Act 
        (43 U.S.C. 1331 et seq.), the Mineral Leasing Act (30 U.S.C. 
        181 et seq.), the Mineral Leasing Act for Acquired Lands (30 
        U.S.C. 351 et seq.), and any other law of the United States 
        directing or authorizing the leasing of Federal lands for oil 
        and gas production or transmission.
            (2) Covered oil and natural gas activity.--The term 
        ``covered oil and natural gas activity'' means--
                    (A) the leasing of any lands pursuant to an 
                authorizing leasing statute for the exploration, 
                development, production, processing, or transmission of 
                oil, natural gas, or associated hydrocarbons, including 
                actions or decisions relating to the selection of which 
                lands may or shall be made available for such leasing; 
                and
                    (B) any activity taken or proposed to be taken 
                pursuant or in relation to such leases, including their 
                suspension, and any environmental analyses relating to 
                such activity.

SEC. 122. EXCLUSIVE JURISDICTION OVER CAUSES AND CLAIMS RELATING TO 
              COVERED OIL AND NATURAL GAS ACTIVITIES.

    Notwithstanding any other provision of law, any Federal action 
approving any covered oil and natural gas activity shall be subject to 
judicial review only--
            (1) in the United States Court of Appeals for the District 
        of Columbia Circuit; and
            (2) after the person filing a petition seeking such 
        judicial review has exhausted all available administrative 
        remedies with respect to such Federal action.

SEC. 123. TIME FOR FILING PETITION; STANDING.

    (a) In General.--All petitions referred to in section 122 must be 
filed within 30 days after the latter of the challenged Federal action 
or the exhaustion of all available administrative remedies with respect 
to such Federal action. A claim or challenge shall be barred unless it 
is filed within the time specified.
    (b) Standing.--No person whose legal rights will not be directly 
and adversely affected by the challenged action, and who is not within 
the zone of interest protected by each Act under which the challenge is 
brought, shall have standing to file any petition referred to in 
section 122.

SEC. 124. TIMETABLE.

    The United States Court of Appeals for the District of Columbia 
Circuit shall complete all judicial review, including rendering a 
judgment, before the end of the 120-day period beginning on the date on 
which a petition referred to in section 122 is filed, unless all 
parties to such proceeding agree to an extension of such period.

SEC. 125. LIMITATION ON SCOPE OF REVIEW AND RELIEF.

    (a) Administrative Findings and Conclusions.--In any judicial 
review referred to in section 122, any administrative findings and 
conclusions relating to the challenged Federal action shall be presumed 
to be correct unless shown otherwise by clear and convincing evidence 
contained in the administrative record.
    (b) Limitation on Prospective Relief.--In any judicial review 
referred to in section 122, the Court shall not grant or approve any 
prospective relief unless the court finds that such relief is narrowly 
drawn, extends no further than necessary to correct the violation of a 
Federal law requirement, and is the least intrusive means necessary to 
correct the violation concerned.

SEC. 126. PRESIDENTIAL WAIVER.

    Notwithstanding any other provision of law, the President may waive 
any legal requirement relating to the approval of any covered oil and 
natural gas activity if the President determines in the President's 
sole discretion that such activity is important to the national 
interest and outweighs such legal requirement.

SEC. 127. LEGAL FEES.

    Any person filing a petition referred to in section 122 who is not 
a prevailing party shall pay to the prevailing parties (including 
intervening parties), other than the United States, fees and other 
expenses incurred by that party in connection with the judicial review, 
unless the Court finds that the position of the person was 
substantially justified or that special circumstances make an award 
unjust.

SEC. 128. EXCLUSION.

    Section 122 shall not apply to disputes between the parties to a 
lease issued pursuant to an authorizing leasing statute regarding the 
obligations of such lease or the alleged breach thereof.

                  Subtitle C--Other Energy Provisions

SEC. 131. ELIMINATION OF RESTRICTION ON ENERGY ALTERNATIVES AND ENERGY 
              EFFICIENCY.

    (a) Elimination of Other Restrictions on Use of Energy 
Alternatives.--
            (1) Renewable biomass.--Section 211(o)(1)(I) of the Clean 
        Air Act (42 U.S.C. 7545(o)(1)(I)) is amended effective January 
        1, 2009--
                    (A) in clause (ii), by striking ``on non-federal 
                land''; and
                    (B) in clause (iv), by striking ``that are from 
                non-federal forestlands, including forestlands'' and 
                inserting ``from forestlands, including those on public 
                lands and those''.
            (2) Alternative fuels.--Section 526 of the Energy 
        Independence and Security Act of 2007 (42 U.S.C. 17142) is 
        repealed.
            (3) Limitation on number of new qualified hybrid advanced 
        lean-burn technology vehicles.--Section 30B of the Internal 
        Revenue Code of 1986 is amended by striking subsection (f).
    (b) New Source Review Under the Clean Air Act.--Part A of title I 
of the Clean Air Act (42 U.S.C. 7401 and following) is amended by 
adding the following new section at the end thereof:

``SEC. 132 NEW SOURCE REVIEW.

    ``In promulgating regulations respecting new source review under 
this Act, the Administrator shall include in such regulations 
provisions providing that routine maintenance and repair shall not 
constitute a modification of an existing source requiring compliance 
with new source review requirements. Such provisions shall provide that 
equipment replacement shall be considered routine maintenance and 
repair if it meets each of the following requirements:
            ``(1) It does not increase actual emissions of any air 
        pollutant by more than 5 percent.
            ``(2) It does not increase actual emissions of any air 
        pollutant by more than 40 tons per year.
Notwithstanding any other provision of this Act, no State may include 
in any State implementation plan any provisions regarding new source 
review that are more stringent than those contained in the regulations 
of the Administrator under this section.''.

SEC. 132. POLICIES REGARDING BUYING AND BUILDING AMERICAN.

    (a) Intent of Congress.--It is the intent of the Congress that this 
Act, among other things, result in a healthy and growing American 
industrial, manufacturing, transportation, and service sector employing 
the vast talents of America's workforce to assist in the development of 
energy from domestic sources. Moreover, the Congress intends to monitor 
the deployment of personnel and material onshore and offshore to 
encourage the development of American technology and manufacturing to 
enable United States workers to benefit from this Act by good jobs and 
careers, as well as the establishment of important industrial 
facilities to support expanded access to American resources.
    (b) Safeguard for Extraordinary Ability.--Section 30(a) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the 
matter preceding paragraph (1) by striking ``regulations which'' and 
inserting ``regulations that shall be supplemental and complimentary 
with and under no circumstances a substitution for the provisions of 
the Constitution and laws of the United States extended to the subsoil 
and seabed of the outer Continental Shelf pursuant to section 4 of this 
Act, except insofar as such laws would otherwise apply to individuals 
who have extraordinary ability in the sciences, arts, education, or 
business, which has been demonstrated by sustained national or 
international acclaim, and that''.

SEC. 133. CLEAN COAL TECHNOLOGY DEPLOYMENT GRANT AND LOAN PROGRAM.

    (a) Purpose.--The purpose of this section is to encourage 
innovative, state of the art energy plants to reduce and eliminate 
emissions of CO<INF>2</INF> and other greenhouse gases.
    (b) DOE Program.--The Secretary Energy shall implement a 
competitive grant and loan program to award funding to qualified 
projects for a 3-year period for the construction or modernization of 
coal fired generation units to enable the use at such units of the most 
viable and cost effective technology to reduce emissions of carbon 
dioxide and other greenhouse gases. In carrying out such program, the 
Secretary shall give priority to the funding of projects that will emit 
the least amount of carbon dioxide and other greenhouse gases.
    (c) Qualified Projects.--(1) Projects for the construction or 
modernization of units with carbon capture and sequestration or storage 
systems shall be qualified for assistance under this section in the 
form of grants of up to $2,000,000,000 per unit up to a maximum grant 
of $2,000,000 per Megawatt (MW) of capacity. Such projects may be 
qualfied for loan guarantees under this section in the amount of up to 
$3,000,000,000 per unit up to a maximum of $3,000,000 per Megawatt of 
capacity.
    (2) The maximum amount of funding assistance under this section for 
construction and modernization costs shall be as follows:
            (A) A grant of 75 percent of such costs and a loan 
        guarantee of 25 percent of such costs for the first year in 
        which assistance is provided.
            (B) A grant of 50 percent of such costs and a loan 
        guarantee of 50 percent of such costs for the second year in 
        which assistance is provided.
            (C) A grant of 25 percent of such costs and a loan 
        guarantee of 75 percent of such costs for the first year in 
        which assistance is provided.
    (d) Minimum Size.--No project shall be qualified for assistance 
under this section for any unit that is less than 250 MW of capacity.

    TITLE II--MODIFYING THE STRATEGIC PETROLEUM RESERVE AND FUNDING 
            CONSERVATION AND ENERGY RESEARCH AND DEVELOPMENT

SEC. 201. FINDINGS.

    Congress finds the following:
            (1) The Strategic Petroleum Reserve (SPR) was created by 
        Congress in 1975, to protect the Nation from any future oil 
        supply disruptions. When the program was established, United 
        States refiners were capable of handling light and medium crude 
        and the make up of the SPR matched this capacity. This is not 
        the case today.
            (2) A GAO analysis found that nearly half of the refineries 
        considered vulnerable to supply disruptions are not compatible 
        with the types of oil currently stored in the SPR and would be 
        unable to maintain normal refining capacity if forced to rely 
        on SPR oil as currently constituted, thereby reducing the 
        effectiveness of the SPR in the event of a supply disruption. 
        GAO concluded that the SPR should be comprised of at least 10 
        percent heavy crude.
            (3) This Act implements the GAO recommendation and 
        dedicates funds received from the transactions to existing 
        energy conservation, research, and assistance programs.

SEC. 202. DEFINITIONS.

    In this title--
            (1) the term ``light grade petroleum'' means crude oil with 
        an API gravity of 35 degrees or higher;
            (2) the term ``heavy grade petroleum'' means crude oil with 
        an API gravity of 26 degrees or lower; and
            (3) the term ``Secretary'' means the Secretary of Energy.

SEC. 203. OBJECTIVES.

    The objectives of this title are as follows:
            (1) To modernize the composition of the Strategic Petroleum 
        Reserve to reflect the current processing capabilities of 
        refineries in the United States.
            (2) To provide increased funding to accelerate 
        conservation, energy research and development, and assistance 
        through existing programs.

SEC. 204. MODIFICATION OF THE STRATEGIC PETROLEUM RESERVE.

    Notwithstanding section 161 of the Energy Policy and Conservation 
Act (42 U.S.C. 6241), the Secretary shall publish a plan not later than 
30 days after the date of enactment of this Act to--
            (1) exchange as soon as possible light grade petroleum from 
        the Strategic Petroleum Reserve, in an amount equal to 10 
        percent of the total number of barrels of crude oil in the 
        Reserve as of the date of enactment of this Act, for an 
        equivalent volume of heavy grade petroleum plus any additional 
        cash bonus bids received that reflect the difference in the 
        market value between light grade petroleum and heavy grade 
        petroleum and the timing of deliveries of the heavy grade 
        petroleum;
            (2) from the gross proceeds of the cash bonus bids, deposit 
        the amount necessary to pay for the direct administrative and 
        operational costs of the exchange into the SPR Petroleum 
        Account established under section 167 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6247); and
            (3) deposit 90 percent of the remaining net proceeds from 
        the exchange into the account established under section 205(a).

SEC. 205. ENERGY INDEPENDENCE AND SECURITY FUND.

    (a) Establishment.--There is hereby established in the Treasury of 
the United States the ``Energy Independence and Security Fund'' (in 
this section referred to as the ``Fund'').
    (b) Administration.--The Secretary shall be responsible for 
administering the Fund for the purpose of carrying out this section.
    (c) Deposits.--The Secretary shall transfer the balance of funds in 
the SPR Petroleum Account on the date of enactment of this Act in 
excess of $10,000,000 into the Fund.
    (d) Distribution of Funds.--The Secretary shall make amounts from 
the Fund available for obligation, without further appropriation and 
without fiscal year limitation, for the following purposes:
            (1) Advanced research projects agency--energy.--The 
        Secretary may transfer amounts to the account ``Energy 
        Transformation Acceleration Fund'', established under section 
        5012(m) of the America COMPETES Act (42 U.S.C. 16538(m)), 
        including amounts--
                    (A) for university-based research projects; and
                    (B) for program direction expenses.
            (2) Wind energy research and development.--The Secretary 
        may transfer amounts to the account ``Energy Efficiency and 
        Renewable Energy'' for necessary expenses for a program to 
        support the development of next-generation wind turbines, 
        including turbines capable of operating in areas with low wind 
        speeds, as authorized in section 931(a)(2)(B) of the Energy 
        Policy Act of 2005 (42 U.S.C. 16231(a)(2)(B)).
            (3) Solar energy research and development.--The Secretary 
        may transfer amounts to the account ``Energy Efficiency and 
        Renewable Energy'' for necessary expenses for a program to 
        accelerate the research, development, demonstration, and 
        deployment of solar energy technologies, and public education 
        and outreach materials pursuant to such program, as authorized 
        by section 931(a)(2)(A) of the Energy Policy Act of 2005 (42 
        U.S.C. 16231(a)(2)(A)).
            (4) Low income weatherization and liheap.--The Secretary 
        may transfer amounts to the account ``Weatherization Assistance 
        Program'' for necessary expenses for a program to weatherize 
        low income housing, as authorized by section 411 of the Energy 
        Independence and Security Act of 2007 (Public Law 110-140). The 
        Secretary may transfer amounts to the Secretary of Health and 
        Human Services for distribution to States under section 2604(a) 
        through (d) of the Low-Income Home Energy Assistance Act of 
        1981 (42 U.S.C. 8623(a)-(d)).
            (5) Marine and hydrokinetic renewable electric energy.--The 
        Secretary may transfer amounts to the account ``Energy 
        Efficiency and Renewable Energy'' for necessary expenses for a 
        program to accelerate the research, development, demonstration, 
        and deployment of ocean and wave energy, including hydrokinetic 
        renewable energy, as authorized by section 931 of the Energy 
        Policy Act of 2005 (42 U.S.C. 16231) and section 636 of the 
        Energy Independence and Security Act of 2007 (42 U.S.C. 17215).
            (6) Advanced vehicles research, development, and 
        demonstration.--The Secretary may transfer amounts to the 
        account ``Energy Efficiency and Renewable Energy'' for 
        necessary expenses for research, development, and demonstration 
        on advanced, cost-effective technologies to improve the energy 
        efficiency and environmental performance of vehicles, as 
        authorized in section 911(a)(2)(A) of the Energy Policy Act of 
        2005 (42 U.S.C. 16191(a)(2)(A)).
            (7) Industrial energy efficiency research and 
        development.--The Secretary may transfer amounts to the account 
        ``Energy Efficiency and Renewable Energy'' for necessary 
        expenses for a program to accelerate the research, development, 
        demonstration, and deployment of new technologies to improve 
        the energy efficiency and reduce greenhouse gas emissions from 
        industrial processes, as authorized in section 911(a)(2)(C) of 
        the Energy Policy Act of 2005 (42 U.S.C. 16191(a)(2)(C)) and in 
        section 452 of the Energy Independence and Security Act of 2007 
        (42 U.S.C. 17111).
            (8) Building and lighting energy efficiency research and 
        development.--The Secretary may transfer amounts to the account 
        ``Energy Efficiency and Renewable Energy'' for necessary 
        expenses for a program to accelerate the research, development, 
        demonstration, and deployment of new technologies to improve 
        the energy efficiency of and reduce greenhouse gas emissions 
        from buildings, as authorized in section 321(g) of the Energy 
        Independence and Security Act of 2007 (42 U.S.C. 6295 note), 
        section 422 of the Energy Independence and Security Act of 2007 
        (42 U.S.C. 17082), and section 912 of the Energy Policy Act of 
        2005 (42 U.S.C. 16192).
            (9) Geothermal energy development.--The Secretary may 
        transfer amounts to the account ``Energy Efficiency and 
        Renewable Energy'' for necessary expenses for geothermal 
        research and development activities to be managed by the 
        National Renewable Energy Laboratory, as authorized by sections 
        613, 614, 615, and 616 of the Energy Independence and Security 
        Act of 2007 (42 U.S.C. 17192-95) and section 931(a)(2)(C) of 
        the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(C)).
            (10) Smart grid technology research, development, and 
        demonstration.--The Secretary may transfer amounts to the 
        account ``Energy Efficiency and Renewable Energy'' for 
        necessary expenses for research, development, and demonstration 
        of smart grid technologies, as authorized by section 1304 of 
        the Energy Independence and Security Act of 2007 (42 U.S.C. 
        17384).
            (11) Carbon capture and storage.--The Secretary may 
        transfer amounts to the account ``Fossil Energy Research and 
        Development'' for necessary expenses for a program of 
        demonstration projects of carbon capture and storage, and for a 
        research program to address public health, safety, and 
        environmental impacts, as authorized by section 963 of the 
        Energy Policy Act of 2005 (42 U.S.C. 16293) and sections 703 
        and 707 of the Energy Independence and Security Act of 2007 (42 
        U.S.C. 17251, 17255).
            (12) Nonconventional domestic natural gas production and 
        environmental research.--
                    (A) The Secretary may transfer amounts to the 
                account authorized by section 999H(e) of the Energy 
                Policy Act of 2005 (42 U.S.C. 16378(e)).
                    (B) The Secretary may transfer amounts to the 
                account ``Fossil Energy Research and Development'' for 
                necessary expenses for a program of basin-oriented 
                assessments and public and private partnerships 
                involving States and industry to foster the development 
                of regional advanced technological, regulatory, and 
                economic development strategies for the efficient and 
                environmentally sustainable recovery and market 
                delivery of natural gas and domestic petroleum 
                resources within the United States, and for support for 
                the Stripper Well Consortium.
            (13) Hydrogen research and development.--The Secretary may 
        transfer amounts to the account ``Energy Efficiency and 
        Renewable Energy'' for necessary expenses for the Department of 
        Energy's H-Prize Program, as authorized by section 1008(f) of 
        the Energy Policy Act of 2005 (42 U.S.C. 16396(f)).
            (14) Energy storage for transportation and electric 
        power.--
                    (A) The Secretary may transfer amounts to the 
                account ``Basic Energy Sciences'' for necessary 
                expenses for a program to accelerate basic research on 
                energy storage systems to support electric drive 
                vehicles, stationary applications, and electricity 
                transmission and distribution, as authorized by section 
                641(p)(1) of the Energy Independence and Security Act 
                of 2007 (42 U.S.C. 17231(p)(1)).
                    (B) The Secretary may transfer amounts to the 
                account ``Energy Efficiency and Renewable Energy'' 
                including--
                            (i) amounts for a program to accelerate 
                        applied research on energy storage systems to 
                        support electric drive vehicles, stationary 
                        applications, and electricity transmission and 
                        distribution as authorized by section 641(p)(2) 
                        of the Energy Independence and Security Act of 
                        2007 (42 U.S.C. 17231(p)(2));
                            (ii) amounts for energy storage systems 
                        demonstrations as authorized by section 
                        641(p)(4) of the Energy Independence and 
                        Security Act of 2007 (42 U.S.C. 17231(p)(4)); 
                        and
                            (iii) amounts for vehicle energy storage 
                        systems demonstrations as authorized by section 
                        641(p)(5) of the Energy Independence and 
                        Security Act of 2007 (42 U.S.C. 17231(p)(5)).
    (e) Transfer Procedures.--The Secretary shall make an initial 
transfer from the Fund no later than 30 days after the initial deposit 
of monies into the Fund. The Secretary shall make additional transfers 
no later than 30 days after subsequent deposits.
    (f) Management and Oversight.--
            (1) Additionality of fiscal year 2008 transfers.--All 
        amounts transferred under subsection (d) shall be in addition 
        to, and shall not be substituted for, any funds appropriated 
        for the same or similar purposes in the Consolidated 
        Appropriations Act, 2008.
            (2) Excess funds.--The total of all amounts transferred 
        under subsection (d) and any funds appropriated for the same or 
        similar purposes in the Consolidated Appropriations Act, 2008 
        may not exceed the amounts authorized in other Acts for such 
        purposes. In the event that amounts made available under this 
        title plus amounts under the Consolidated Appropriations Act, 
        2008 exceed the cumulative amounts authorized in other Acts for 
        any program funded by this Act, the excess amounts shall be 
        distributed to the other programs funded by this title on a pro 
        rata basis.
            (3) Program plans and performance measures.--The Secretary 
        shall prepare and publish in the Federal Register a plan for 
        the proposed use of all funds authorized in subsection (d). The 
        plan also shall identify how the use of these funds will be 
        additive to, and not displace, annual appropriations. The plans 
        also shall identify performance measures to assess the 
        additional benefits that may be realized from the application 
        of the additional funding provided under this section. The 
        initial plan shall be published in the Federal Register not 
        later than 45 days after the date of enactment of this Act.
            (4) Congressional oversight and review.--Nothing in this 
        section shall limit or restrict the review and oversight of 
        program plans by the appropriate committees of Congress. 
        Nothing in this section shall limit or restrict the authority 
        of Congress to set alternative spending limitations in annual 
        appropriations Acts.
            (5) Apportionment.--All transactions of the Fund shall be 
        exempt from apportionment under the provisions of subchapter II 
        of chapter 15 of title 31, United States Code.

TITLE III--CLEANER ENERGY PRODUCTION AND ENERGY CONSERVATION INCENTIVES

SEC. 301. EXTENSION OF RENEWABLE ENERGY CREDIT.

    (a) In General.--Each of the following provisions of section 45(d) 
of the Internal Revenue Code of 1986 (relating to qualified facilities) 
is amended by striking ``January 1, 2014'' and inserting ``January 1, 
2019'':
            (1) Clauses (i) and (ii) of paragraph (2)(A) (relating to 
        closed-loop biomass facility).
            (2) Clauses (i)(I) and (ii) of paragraph (3)(A) (relating 
        to open-loop biomass facility).
            (3) Paragraph (4) (relating to geothermal energy facility).
            (4) Paragraph (6) (relating to landfill gas facilities).
            (5) Paragraph (7) (relating to trash combustion 
        facilities).
            (6) Subparagraphs (A) and (B) of paragraph (9) (relating to 
        qualified hydropower facility).
            (7) Paragraph (11) (relating to marine and hydrokinetic 
        renewable energy facilities).
    (b) Wind Facilities.--Paragraph (1) of section 45(d) of such Code 
is amended by striking ``January 1, 2013'' and inserting ``January 1, 
2019'':
            (1) Paragraph (1) (relating to wind facility).

SEC. 302. EXTENSION OF RENEWABLE ENERGY CREDIT.

    Each of the following provisions of section 45(d) of the Internal 
Revenue Code of 1986 (relating to qualified facilities) is amended by 
striking ``January 1, 2013'' and inserting ``January 1, 2019'':
            (1) Paragraph (1) (relating to wind facility).
            (2) Clauses (i) and (ii) of paragraph (2)(A) (relating to 
        closed-loop biomass facility).
            (3) Clauses (i)(I) and (ii) of paragraph (3)(A) (relating 
        to open-loop biomass facility).
            (4) Paragraph (4) (relating to geothermal energy facility).
            (5) Paragraph (5) (relating to small irrigation power 
        facility).
            (6) Paragraph (6) (relating to landfill gas facilities).
            (7) Paragraph (7) (relating to trash combustion 
        facilities).
            (8) Paragraph (8) (relating to refined coal production 
        facility).
            (9) Subparagraphs (A) and (B) of paragraph (9) (relating to 
        qualified hydropower facility).

SEC. 303. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLES.

    (a) Qualified Fuel Cell Motor Vehicles.--Paragraph (1) of section 
30B(j) of the Internal Revenue Code of 1986 is amended by striking 
``December 31, 2014'' and inserting ``December 31, 2018''.
    (b) New Advanced Lean Burn Technology Motor Vehicle.--Paragraph (2) 
of section 30B(j) of such Code is amended by striking ``December 31, 
2010'' and inserting ``December 31, 2018''.
    (c) New Qualified Hybrid Motor Vehicle.--Paragraph (3) of section 
30B(j) of such Code is amended by striking ``December 31, 2009'' and 
inserting ``December 31, 2018''.
    (d) New Qualified Alternative Fuel Vehicle.--Paragraph (4) of 
section 30B(j) of such Code is amended by striking ``December 31, 
2010'' and inserting ``December 31, 2018''.

SEC. 304. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY 
              CREDIT.

    Subsection (g) of section 30C of the Internal Revenue Code of 1986 
(relating to termination) is amended to read as follows:
    ``(g) Termination.--This section shall not apply to property placed 
in service after December 31, 2018.''.

SEC. 305. EXTENSION OF CREDIT FOR ENERGY EFFICIENT APPLIANCES.

    (a) Dishwashers.--Paragraph (1) of section 45M(b) of the Internal 
Revenue Code of 1986 (relating to applicable amount) is amended by 
striking ``in calendar year 2008, 2009, or 2010'' in subparagraph (B) 
and inserting ``after 2007 and before 2019''.
    (b) Clothes Washers.--Subparagraphs (C) and (D) of section 
45M(b)(2) of such Code is amended by striking ``in calendar year 2008, 
2009, or 2010'' and inserting ``after 2007 and before 2019''.
    (c) Refrigerators.--Subparagraphs (C) and (D) of section 45M(b)(3) 
of such Code is amended by striking ``in calendar year 2008, 2009, or 
2010'' and inserting ``after 2007 and before 2019''.
    (d) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2010.

SEC. 306. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    Section 25C(g) of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking ``December 31, 2010'' and inserting 
``December 31, 2018''.

SEC. 307. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY.

    Section 25D(g) of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking ``December 31, 2016'' and inserting 
``December 31, 2018''.

SEC. 308. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.

    Subsection (g) of section 45L of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ``December 31, 2009'' 
and inserting ``December 31, 2018''.

SEC. 309. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    Section 179D(h) of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking ``December 31, 2013'' and inserting 
``December 31, 2018''.

SEC. 310. EXTENSION OF ENERGY CREDIT.

    (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii) 
of section 48(a) of the Internal Revenue Code of 1986 (relating to 
energy credit) are each amended by striking ``January 1, 2017'' and 
inserting ``January 1, 2019''.
    (b) Fuel Cell Property.--Subparagraph (E) of section 48(c)(1) of 
such Code (relating to qualified fuel cell property) is amended by 
striking ``December 31, 2016'' and inserting ``December 31, 2018''.
    (c) Microturbine Property.--Subparagraph (D) of section 48(c)(2) of 
such Code (relating to qualified microturbine property) is amended by 
striking ``December 31, 2016'' and inserting ``December 31, 2018''.
    (d) Property Using Thermal Energy From Ground or Ground Water.--
Clause (vii) of section 48(a)(3)(A) of such Code is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2018''.
    (e) Combined Heat and Power System Property.--Clause (iv) of 
section 48(c)(3)(A) of such Code is amended by striking ``December 31, 
2017'' and inserting ``December 31, 2018''.
    (f) Small Wind Energy Property.--Subparagraph (C) of section 
48(c)(4) of such Code is amended by striking ``December 31, 2016'' and 
inserting ``December 31, 2018''.

SEC. 311. EXTENSION OF CREDIT FOR CLEAN RENEWABLE ENERGY BONDS.

    (a) Extension.--Section 54(m) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ``December 31, 2009'' 
and inserting ``December 31, 2018''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after December 31, 2009.

SEC. 312. EXTENSION OF CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(6)(B) of 
the Internal Revenue Code of 1986 are each amended by striking 
``December 31, 2009'' and inserting ``December 31, 2018''.
    (b) Effective Date.--The amendments made by this section shall 
apply to fuel produced, and sold or used, after December 31, 2009.

    TITLE IV--INCREASE DIVERSIFICATION AND EFFICIENCY OF AMERICA'S 
                   TRANSPORTATION AND ELECTRIC SYSTEM

  Subtitle A--Diversification of Fuel Source for America's Short-Haul 
                         Transportation System

SEC. 401. MINIMUM FEDERAL FLEET REQUIREMENT.

    Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is 
amended--
            (1) in subsection (b)--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively;
                    (B) by inserting after paragraph (1) the following:
            ``(2) Plug-in electric drive vehicles.--Of the total number 
        of vehicles acquired by a Federal fleet under paragraph (1), at 
        least the following percentage of the vehicles shall be 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))):
                    ``(A) 10 percent for fiscal year 2012.
                    ``(B) The applicable percentage for the preceding 
                fiscal year increased by 5 percentage points (but not 
                to exceed a total of 50 percent) for fiscal year 2013 
                and each subsequent fiscal year.''; and
                    (C) in paragraph (3) (as redesignated by 
                subparagraph (A)), by inserting ``or (2)'' after 
                ``paragraph (1)'';
            (2) by striking subsection (c) and inserting the following:
    ``(c) Allocation of Incremental Costs.--Subject to the availability 
of funds appropriated to carry out this subsection (to remain available 
until expended), the General Services Administration shall pay the 
incremental cost of alternative fueled vehicles over the cost of 
comparable gasoline vehicles for vehicles that the Administration 
purchased for the use of the Administration or on behalf of other 
agencies, in a total amount of not to exceed $300,000,000 for any of 
fiscal years 2012 through 2016.'';
            (3) in subsection (f), by adding at the end the following:
            ``(4) Compliance.--Compliance with this subsection shall 
        not relieve the Federal agency of the obligations of the agency 
        under subsection (b).''; and
            (4) in subsection (g), by striking ``fiscal years 1993 
        through 1998'' and inserting ``each fiscal year''.

SEC. 402. USE OF HOV FACILITIES BY LIGHT-DUTY PLUG-IN ELECTRIC DRIVE 
              VEHICLES.

    Section 166(b)(5) of title 23, United States Code, is amended--
            (1) in subparagraph (A), by striking ``Before'' and 
        inserting ``Except as provided in subparagraph (D), before'';
            (2) in subparagraph (B), by striking ``Before'' and 
        inserting ``Except as provided in subparagraph (D), before''; 
        and
            (3) by adding at the end the following:
                    ``(D) Use by plug-in electric drive vehicles.--
                            ``(i) Definition of plug-in electric drive 
                        vehicle.--In this subparagraph, the term `plug-
                        in electric drive vehicle' has the meaning 
                        given the term in section 131(a) of the Energy 
                        Independence and Security Act of 2007 (42 
                        U.S.C. 17011(a)).
                            ``(ii) Use of hov facilities.--A State 
                        agency--
                                    ``(I) shall permit vehicles that 
                                are certified as low emission and 
                                energy-efficient vehicles in accordance 
                                with subsection (e) that are light-duty 
                                plug-in electric drive vehicles, and 
                                that are purchased on or before 
                                December 31 of the calendar year 
                                described in clause (iii), as 
                                determined by the Secretary, to use HOV 
                                facilities in the State; and
                                    ``(II) shall not impose any toll or 
                                other charge on such a vehicle for use 
                                of an HOV facility in the State.
                            ``(iii) Calendar year.--The calendar year 
                        referred to in clause (ii)(I) is the calendar 
                        year during which, as determined by the 
                        Secretary, the aggregate number of plug-in 
                        electric drive vehicles sold in the United 
                        States during all calendar years exceeds 
                        2,000,000.
                            ``(iv) Petition.--A State may petition the 
                        Secretary to limit or discontinue the use of an 
                        HOV facility by plug-in electric drive vehicles 
                        if the State demonstrates to the Secretary that 
                        the presence of the plug-in electric drive 
                        vehicles has degraded the operation of the HOV 
                        facility.''.

SEC. 403. RECHARGING INFRASTRUCTURE.

    (a) Definitions.--In this section:
            (1) Local government.--The term ``local government'' has 
        the meaning given the term in section 3371 of title 5, United 
        States Code.
            (2) Plug-in electric drive vehicle.--The term ``plug-in 
        electric drive vehicle'' has the meaning given the term in 
        section 131(a) of the Energy Independence and Security Act of 
        2007 (42 U.S.C. 17011(a)).
            (3) Range extension infrastructure.--The term ``range 
        extension infrastructure'' includes equipment, products, or 
        services for recharging plug-in electric drive vehicles that--
                    (A) are available to retail consumers of electric 
                drive vehicles on a nondiscriminatory basis;
                    (B) provide for extending driving range through 
                battery exchange or rapid recharging; and
                    (C) are comparable in convenience and price to 
                petroleum-based refueling services.
    (b) Study.--
            (1) In general.--The Secretary shall conduct a study of--
                    (A) the number and distribution of recharging 
                facilities, including range extension infrastructure, 
                that will be required for drivers of plug-in electric 
                drive vehicles to reliably recharge the electric drive 
                vehicles;
                    (B) minimum technical standards for public 
                recharging facilities in coordination with the National 
                Institute of Standards and Technology; and
                    (C) the concurrent technical and infrastructure 
                investments that electric utilities and electricity 
                providers will be required to make to support 
                widespread deployment of recharging infrastructure and 
                the estimated costs of the investments.
            (2) Components.--In conducting the study required under 
        this subsection, the Secretary shall analyze--
                    (A) the variety and density of recharging 
                infrastructure options necessary to power plug-in 
                electric drive vehicles under diverse scenarios, 
                including--
                            (i) the ratio of residential, commercial, 
                        and public recharging infrastructure options 
                        necessary to support 10 percent, 20 percent, 
                        and 50 percent penetration of plug-in electric 
                        vehicles on a city fleet basis;
                            (ii) the ratio of residential, commercial, 
                        and public recharging infrastructure options 
                        necessary to support 10 percent, 20 percent, 
                        and 50 percent penetration of plug-in electric 
                        vehicles on a national fleet basis; and
                            (iii) the potential impact of fast charging 
                        on penetration rates and utility power 
                        management requirements;
                    (B) whether use of parking spots with access to 
                recharging facilities should be limited to plug-in 
                electric drive vehicles; and
                    (C) such other issues as the Secretary considers 
                appropriate.
            (3) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall submit to the 
        appropriate committees of Congress a report on the results of 
        the study conducted under this subsection, including any 
        recommendations.
    (c) Grants and Loans to State and Local Governments for Recharging 
Infrastructure.--
            (1) In general.--Effective beginning October 1, 2010, the 
        Secretary shall establish a program under which the Secretary 
        shall provide grants and loans to local governments to assist 
        in the installation of recharging facilities for electric drive 
        vehicles in areas under the jurisdiction of the local 
        governments. The Secretary shall provide funding under this 
        section to State or local governments to pay not more than 
        fifty percent of the recharging infrastructure cost.
            (2) Eligibility.--To be eligible to obtain a grant or loan 
        under this subsection, a local government shall--
                    (A) demonstrate to the Secretary that the applicant 
                has taken into consideration the findings of the report 
                submitted under subsection (b)(3), unless the local 
                government demonstrates to the Secretary that an 
                alternative variety and density of recharging 
                infrastructure options would better meet the purposes 
                of this section; and
                    (B) agree not to charge a premium for use of a 
                parking space used to recharge an electric drive 
                vehicle other than a charge for electric energy.
            (3) Guidelines.--The Secretary shall establish guidelines 
        for carrying out this subsection that are consistent with the 
        report submitted under subsection (b)(3).
            (4) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection a total of $250,000,000 for grants and a total of 
        $250,000,000 for loans, to remain available until expended.

SEC. 404. LOAN GUARANTEES FOR ADVANCED BATTERY PURCHASES.

    Subtitle B of title I of the Energy and Independence and Security 
Act of 2007 (42 U.S.C. 17011 et seq.) is amended by adding at the end 
the following:

``SEC. 137. LOAN GUARANTEES FOR ADVANCED BATTERY PURCHASES.

    ``(a) Definitions.--In this section:
            ``(1) Plug-in electric drive vehicle.--The term `plug-in 
        electric drive vehicle' has the meaning given the term in 
        section 131(a).
            ``(2) Range extension infrastructure.--The term `range 
        extension infrastructure' includes equipment, products, or 
        services for recharging plug-in electric drive vehicles that--
                    ``(A) are available to retail consumers of electric 
                drive vehicles on a nondiscriminatory basis;
                    ``(B) provide for extended driving range through 
                battery exchange or rapid recharging; and
                    ``(C) are comparable in convenience and price to 
                petroleum-based refueling services.
    ``(b) Loan Guarantees.--The Secretary shall guarantee loans made to 
eligible entities for the aggregate purchase by an eligible entity of 
not less than 5,000 batteries that use advanced battery technology 
within a calendar year.
    ``(c) Eligible Entities.--To be eligible to obtain a loan guarantee 
under this section, an entity shall be--
            ``(1) an original equipment manufacturer;
            ``(2) a vehicle manufacturer;
            ``(3) an electric utility;
            ``(4) any provider of range extension infrastructure; or
            ``(5) any other qualified entity, as determined by the 
        Secretary.
    ``(d) Regulations.--The Secretary shall promulgate such regulations 
as are necessary to carry out this section.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 405. STUDY OF END-OF-USEFUL LIFE OPTIONS FOR MOTOR VEHICLE 
              BATTERIES.

    (a) In General.--In combination with the research, demonstration, 
and deployment activities conducted under section 641(k) of the Energy 
and Independence and Security Act of 2007 (42 U.S.C. 17231(k)), the 
Secretary shall conduct a study on the end-of-useful life options for 
motor vehicle batteries, including recommendations for stationary 
storage applications and recyclability design specifications.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to the appropriate committees of 
Congress a report on the results of the study conducted under 
subsection (a), including any recommendations.

SEC. 406. STUDY AND DEMONSTRATION ELECTRIFICATION OF POSTAL FLEET.

    (a) In General.--The Postal Service shall conduct a study of what 
portion of its mail delivery vehicles are capable of being replaced 
with plug-in hybrid electric vehicles.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Postal Service shall submit to the appropriate committees 
of Congress a report on the results of the study conducted under 
subsection (a).
    (c) Prototype Plug-In Electric Hybrid Mail Delivery Vehicles.--Not 
later than 2 years after the date of enactment of this Act, the Postal 
One service shall contact for the development of a prototype plug-in 
electric hybrid mail delivery vehicles.

SEC. 407. MAXIMUM WEIGHT STUDY FOR ENERGY EFFICIENCY AND SAFETY.

    (a) In General.--The Secretary of Transportation, in consultation 
with the Administrator of the National Highway Traffic Safety 
Administration, shall conduct a study to investigate whether oil 
savings goals can be achieved in the trucking industry without adverse 
safety consequences by determining the safety impacts and other effects 
of increasing the maximum allowable gross weight for vehicles using the 
Interstate System to allow for larger, more fuel-efficient tractor-
trailers.
    (b) Study Components.--In conducting the study under this section, 
the Secretary of Transportation shall--
            (1) determine whether a vehicle with a supplementary sixth 
        axle and a gross weight of up to 97,000 pounds that is 
        traveling at 60 miles per hour is capable of stopping at a 
        distance of 355 feet or less;
            (2) determine whether the use of the Interstate System by 
        vehicles described in paragraph (1) would require a fundamental 
        alteration of the vehicle architecture that is commonly used 
        for the transportation of goods as of the day before the date 
        of the enactment of this Act;
            (3) analyze the safety impacts of allowing vehicles 
        described in paragraph (1) to use the Interstate System; and
            (4) consider the potential impact on highway safety of 
        applying lower speed limits on such vehicles than the speed 
        limits in effect on the day before the date of the enactment of 
        this Act.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary shall submit a report to Congress that 
contains the results of the study conducted under this section, 
including a determination by the Secretary as to whether permitting 
vehicles with a supplementary sixth axle and a gross weight of not more 
than 97,000 pounds to use the Interstate System would have an adverse 
impact on highway safety.
    (d) Definition.--In this section, the term ``Interstate System'' 
has the meaning given that term in section 101(a) of title 23, United 
States Code.

      Subtitle B--Incentives for Diversification of Transportation

SEC. 420. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this subtitle 
an amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Internal 
Revenue Code of 1986.

SEC. 421. EXTENSION OF CREDIT FOR MEDIUM AND HEAVY-DUTY HYBRID 
              VEHICLES.

    (a) In General.--Paragraph (3) of section 30B(k) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to vehicles acquired after the date of the enactment of this Act.

SEC. 422. EXTENSION OF CREDIT AND EXTENSION OF TEMPORARY INCREASE IN 
              CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

    (a) Extension of Credit.--Subsection (g) of section 30C is amended 
by striking ``service--'' and all that follows and inserting ``service 
after December 31, 2018.''.
    (b) Extension of Temporary Increase.--Paragraph (6) of section 
30C(e) is amended--
            (1) by striking ``January 1, 2011'' and inserting ``January 
        1, 2019'', and
            (2) by striking ``and 2010'' in the heading and inserting 
        ``through 2018''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.

SEC. 423. EXTENSION AND EXPANSION OF CREDIT FOR NEW QUALIFIED PLUG-IN 
              ELECTRIC DRIVE MOTOR VEHICLES.

    (a) Extension.--Section 30D is amended by adding at the end the 
following new subsection:
    ``(g) Termination.--This section shall not apply to any property 
purchased after December 31, 2018.''.
    (b) Restoration of Credit for Large New Qualified Plug-In Electric 
Drive Motor Vehicles Weighing Over 14,000 Pounds.--
            (1) In general.--The last sentence of section 30D(b)(3) is 
        amended to read as follows: ``The amount determined under this 
        paragraph shall not exceed--
                    ``(A) $5,000, in the case of any new qualified 
                plug-in electric drive motor vehicle with a gross 
                vehicle weight rating of not more than 14,000 pounds,
                    ``(B) $10,000, in the case of any new qualified 
                plug-in electric drive motor vehicle with a gross 
                vehicle weight rating of more than 14,000 pounds but 
                not more than 26,000 pounds, and
                    ``(C) $12,500, in the case of any new qualified 
                plug-in electric drive motor vehicle with a gross 
                vehicle weight rating of more than 26,000 pounds.''.
            (2) Conforming amendments.--Paragraph (1) of section 30D(d) 
        is amended by adding ``and'' at the end of subparagraph (D), by 
        striking subparagraph (E), and by redesignating subparagraph 
        (F) as subparagraph (E).
    (c) Increase in Per Manufacturer Cap.--Paragraph (2) of section 
30D(e) is amended by striking ``200,000'' and inserting ``400,000''.
    (d) Effective Date.--The amendments made by this section shall 
apply to vehicles acquired after the date of the enactment of this Act.

SEC. 424. EXTENSION OF CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES.

    (a) In General.--Subsection (f) of section 30 is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2018''.
    (b) Effective Date.--The amendment made by this section shall apply 
to vehicles acquired after the date of the enactment of this Act.

SEC. 425. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
              VEHICLES.

    (a) Plug-In Electric Drive Motor Vehicle Credit.--Subpart B of part 
IV of subchapter A of chapter 1 (relating to other credits) is amended 
as follows:
            (1) Subsection (a) of section 30D is amended to read as 
        follows:
    ``(a) Allowance of Credit.--
            ``(1) 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 applicable amount with respect to--
                    ``(A) each new qualified plug-in electric drive 
                motor vehicle placed in service by the taxpayer during 
                the taxable year, or
                    ``(B) each automotive grade battery purchased by 
                the taxpayer during the taxable year subject to a 
                minimum purchase of 1,000 batteries with a battery 
                capacity no smaller than 5 kilowatt hours.
            ``(2) Applicable amount.--
                    ``(A) For purposes of paragraph (1)(A), the 
                applicable amount is the sum of--
                            ``(i) $2,500, plus
                            ``(ii) $417 for each kilowatt hour of 
                        traction battery capacity in excess of kilowatt 
                        hours.
                    ``(B) For purposes of paragraph (1)(B), the 
                applicable amount is the sum of--
                            ``(i) $1,000, plus
                            ``(ii) $200 for each kilowatt hour of 
                        traction battery capacity in excess of 5 
                        kilowatt hours.''.
            (2) Subsection (c)(6) is amended by striking the the period 
        and inserting ``, and'' and inserting after it:
            ``(7) is not powered by a battery for which any taxpayer 
        received a tax credit pursuant to subsection (a)(1)(B) of this 
        section.''.
            (3) Subsections (d), (e), (f), and (g) are redesignated as 
        subsections (e), (f), (g), and (h) and a new subsection (d) is 
        inserted:
    ``(d) Qualified Automotive Battery.--For purposes of this section, 
the term `qualified automotive battery' means a battery with at least 5 
kilowatt hours of traction battery capacity that is designed for use in 
qualified plug-in electric drive motor vehicles but is purchased for 
non-automotive applications.''.

SEC. 426. TAX CREDIT FOR MOST EFFICIENT VEHICLE IN CLASS.

    Subpart B of part IV of subchapter A of chapter 1 (relating to 
other credits) is amended by adding at the end the following new 
section:

``SEC. 30E. MOST EFFICIENT VEHICLE IN CLASS CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to $2,000 for each car that is determined to be the `most 
efficient vehicle in class' placed in service by the taxpayer during 
the taxable year.
    ``(b) Most Efficient Vehicle in Class.--For purposes of this 
section, the term `most efficient vehicle in class' means the motor 
vehicle identified as the most efficient vehicle in each class of 
vehicle in the Annual Fuel Economy Guide published by the Environmental 
Protection Agency.''.

SEC. 427. STUDY OF DEVELOPMENT OF COMMON STANDARDS FOR PHEVS AND EVS 
              BETWEEN THE UNITED STATES, EUROPE AND ASIA.

    (a) In General.--The Secretary shall conduct a study identifying 
the components of electric vehicles, hybrid-electric vehicles and plug-
in hybrid-electric vehicles for which it is important that there be 
common standards within the United States and between the United 
States, European and Asian automakers and examine the extent to which 
such standards are (or are not) or have been (or have not been) 
developed, and the status of any such efforts to develop such 
standards.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to the appropriate committees of 
Congress a report on the results of the study conducted under 
subsection (a), including any recommendations.

       Subtitle C--Low Carbon Diversification of Electric System

SEC. 431. INNOVATIVE LOW-CARBON LOAN GUARANTEE PROGRAM.

    Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is 
amended--
            (1) in subsection (b), by adding at the end the following:
            ``(11) Innovative low-carbon technology projects in 
        accordance with subsection (f).''; and
            (2) by adding at the end the following:
    ``(f) Innovative Low-Carbon Technology Projects.--
            ``(1) In general.--The Secretary may make guarantees to 
        carry out innovative low-carbon technologies projects.
            ``(2) Funding.--
                    ``(A) In general.--Subject to the Federal Credit 
                Reform Act of 1990 (2 U.S.C. 661 et seq.), the total 
                principal amount of loans guaranteed to carry out 
                projects under this subsection shall not exceed 
                $50,000,000,000, to remain available until committed.
                    ``(B) Additional amounts.--Amounts made available 
                to carry out this subsection shall be in addition to 
                any other authority provided for fiscal year 2010 or 
                any previous fiscal year.
                    ``(C) Source of funds.--
                            ``(i) In general.--Amounts made available 
                        to carry out this subsection shall be--
                                    ``(I) derived from amounts received 
                                from borrowers pursuant to section 
                                1702(b)(2) for fiscal year 2010 or any 
                                previous fiscal year; and
                                    ``(II) collected in accordance with 
                                the Federal Credit Reform Act of 1990 
                                (2 U.S.C. 661 et seq.).
                            ``(ii) Treatment.--The source of payment 
                        received from borrowers described in clause (i) 
                        shall be not considered a loan or other debt 
                        obligation that is guaranteed by the Federal 
                        Government.
                    ``(D) Subsidy cost.--In accordance with section 
                1702(b)(2), no appropriations to carry out this 
                subsection shall be available to pay the subsidy cost 
                of guarantees.''.
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