II 

112TH CONGRESS 

1ST SESSION S. 1220 

To lessen the dependence of the United States on foreign energy, to promote 

clean sources of energy, to strengthen the economy of the United States, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 16, 2011 

Mr. CONRAD introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To lessen the dependence of the United States on foreign 

energy, to promote clean sources of energy, to strengthen 

the economy of the United States, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Fulfilling U.S. Energy Leadership Act of 2011’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 


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TITLE I—ADVANCED VEHICLE DEPLOYMENT 

Subtitle A—Energy Provisions 

Sec. 101. Research and development program for alternative fuel vehicle technologies. 

Sec. 102. Federal fleet requirements. 

Sec. 103. Refueling infrastructure corridors. 

Sec. 104. Federal Government petroleum consumption. 

Sec. 105. Determination of standards by Secretary of Energy for idling reduction devices. 

Subtitle B—Promoting Electric Vehicles 

Sec. 111. Definitions. 

PART I—NATIONAL PLUG-IN ELECTRIC DRIVE VEHICLE DEPLOYMENT

PROGRAM. 

Sec. 121. National Plug-In Electric Drive Vehicle Deployment Program. 

Sec. 122. National assessment and plan. 

Sec. 123. Technical assistance. 

Sec. 124. Workforce training. 

Sec. 125. Federal fleets. 

Sec. 126. Targeted Plug-In Electric Drive Vehicle Deployment Communities 

Program. 

PART II—RESEARCH AND DEVELOPMENT

Sec. 131. Research and development program. 

Sec. 132. Advanced batteries for tomorrow prize. 

Sec. 133. Study on the supply of raw materials. 

Sec. 134. Study on the collection and preservation of data collected from plugin electric drive vehicles. 

PART III—MISCELLANEOUS

Sec. 141. Utility planning for plug-in electric drive vehicles. 

Sec. 142. Loan guarantees. 

Sec. 143. Prohibition on disposing of advanced batteries in landfills. 

Sec. 144. Plug-In Electric Drive Vehicle Technical Advisory Committee. 

Sec. 145. Plug-In Electric Drive Vehicle Interagency Task Force. 

Subtitle C—Tax Provisions 

Sec. 151. Consumer tax credits for advanced vehicles. 

Sec. 152. Credit for fuel-efficient motor vehicles. 

Sec. 153. Idling reduction tax credit. 

TITLE II—OIL AND GAS DEVELOPMENT 

Sec. 201. Production of oil and gas on outer Continental Shelf. 

Sec. 202. Implementation of inventory of outer Continental Shelf resources. 

Sec. 203. Offshore safety bureau. 

TITLE III—ALTERNATIVE FUEL DEPLOYMENT 

Subtitle A—Energy Provisions 


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Sec. 301. Bioenergy research and development. 

Sec. 302. Alternative fueled automobile production requirement. 

Sec. 303. Definition of renewable biomass. 

Sec. 304. Loan guarantees for renewable fuel pipelines. 

Subtitle B—Tax Provisions 

Sec. 311. Variable VEETC rate based on price of crude oil. 

Sec. 312. Extension of cellulosic biofuel producer credit through 2016. 

Sec. 313. Extension and modification of alternative fuel vehicle refueling property credit. 

Sec. 314. Extension of special depreciation allowance for cellulosic biofuel plant 

property. 

Sec. 315. Incentives for biodiesel and renewable diesel. 

Sec. 316. Alternative fuels excise tax credits. 

TITLE IV—CLEANER SOURCES OF ELECTRICITY 

Subtitle A—Energy Provisions 

Sec. 401. Clean energy standard. 

Sec. 402. Large-scale carbon storage program. 

Sec. 403. Loan guarantees for nuclear power and other innovative sources. 

Sec. 404. Nuclear energy workforce. 

Sec. 405. Interagency Working Group to promote domestic manufacturing base 

for nuclear components and equipment. 

Subtitle B—Tax Provisions 

Sec. 411. Seven-year amortization for certain systems installed on coal-fired 

electric generation units. 

Sec. 412. Credit for carbon sequestration from coal facilities. 

Sec. 413. Modifications to credit for carbon dioxide sequestration. 

Sec. 414. Clean energy coal bonds. 

Sec. 415. New clean renewable energy bonds. 

Sec. 416. Seven-year accelerated depreciation for new nuclear power facilities. 

Sec. 417. Long term extension of renewable electricity production credit. 

TITLE V—DOMESTIC ENERGY DEPLOYMENT 

Subtitle A—Clean Energy Financing 

Sec. 501. Purpose. 

Sec. 502. Definitions. 

Sec. 503. Improvements to existing programs. 

Sec. 504. Energy technology deployment goals. 

Sec. 505. Clean Energy Deployment Administration. 

Sec. 506. Administration functions. 

Sec. 507. Federal Credit Authority. 

Sec. 508. General provisions. 

Subtitle B—Tax Provisions 

Sec. 511. Advanced energy manufacturing credit. 

Sec. 512. Special rule for sales of electric transmission property. 

Sec. 513. Depreciation of natural gas distribution lines. 

Sec. 514. Credit for steel industry fuel. 

Sec. 515. Credit for producing fuel from coke or coke gas. 


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TITLE VI—ENERGY EFFICIENCY 

Subtitle A—Rural Energy Savings Program 

Sec. 601. Rural energy savings program. 

Subtitle B—Tax Provisions 

Sec. 611. Energy-efficient commercial buildings. 

Sec. 612. Energy-efficient new homes. 

Sec. 613. Energy-efficient existing homes. 

Sec. 614. Energy-efficient appliances. 

TITLE VII—ENERGY RESEARCH AND DEVELOPMENT 

Sec. 701. Next Step Energy Storage Research Center. 

Sec. 702. Nuclear power initiatives. 

TITLE VIII—BUDGETARY EFFECTS 

Sec. 801. Budgetary effects. 

1 SEC. 2. DEFINITIONS. 

2 Except as otherwise provided in this Act, in this Act: 

3 (1) ALTERNATIVE FUEL.—The term ‘‘alter4 native fuel’’ has the meaning given the term in sec5 tion 32901(a) of title 49, United States Code. 

6 (2) ALTERNATIVE FUELED AUTOMOBILE.—The 

7 term ‘‘alternative fueled automobile’’ has the mean8 ing given the term in section 32901(a) of title 49, 

9 United States Code. 

10 (3) MOTOR VEHICLE.—The term ‘‘motor vehi11 cle’’ means any vehicle that is manufactured pri12 marily for use on public streets, roads, and highways 

13 (not including a vehicle operated exclusively on 1 or 

14 more rails) and that has at least 4 wheels. 

15 (4) SECRETARY.—The term ‘‘Secretary’’ means 

16 the Secretary of Energy. 


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1 TITLE I—ADVANCED VEHICLE 

2 DEPLOYMENT 

3 Subtitle A—Energy Provisions 

4 SEC. 101. RESEARCH AND DEVELOPMENT PROGRAM FOR 

5 ALTERNATIVE FUEL VEHICLE TECH6 NOLOGIES. 

7 (a) PURPOSES.—The purposes of this section are— 

8 (1) to enable and promote, in partnership with 

9 industry, comprehensive development, demonstra10 tion, and commercialization of a wide range of alter11 native fuel components, systems, and vehicles using 

12 diverse transportation technologies; 

13 (2) to make critical public investments to help 

14 private industry, institutions of higher education, 

15 National Laboratories, and research institutions to 

16 expand innovation, industrial growth, and jobs in the 

17 United States; 

18 (3) to expand the availability of the existing al19 ternative fuel infrastructure for fueling light-duty 

20 transportation vehicles and other on-road and 

21 nonroad vehicles that are using petroleum and are 

22 mobile sources of emissions, with the goals of— 

23 (A) enhancing the energy security of the 

24 United States; 


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1 (B) reducing dependence on imported oil; 

2 and 

3 (C) reducing emissions through the expan4 sion of alternative fuel supported mobility; 

5 (4) to accelerate the widespread commercializa6 tion of alternative fuel vehicle technology into all 

7 sizes and applications of vehicles, including commer8 cialization of alternative fuel vehicles; and 

9 (5) to improve the energy efficiency of and re10 duce the petroleum use in surface transportation. 

11 (b) PROGRAM.—The Secretary shall conduct a pro12 gram of research, development, demonstration, and com13 mercial application for alternative fuel transportation 

14 technology, including— 

15 (1) high capacity, high-efficiency storage de16 vices; 

17 (2) high-efficiency on-board and off-board alter18 native fuel components; 

19 (3) high-powered alternative fuel systems for 

20 passenger and commercial vehicles and for nonroad 

21 equipment; 

22 (4) control system development and power train 

23 development and integration for alternative fuel ve24 hicles, including— 


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1 (A) development of efficient cooling sys2 tems; 

3 (B) analysis and development of control 

4 systems that minimize the emissions profile 

5 when clean diesel engines are part of an alter6 native fuel system; and 

7 (C) development of different control sys8 tems that optimize for different goals, includ9 ing— 

10 (i) storage life; 

11 (ii) reduction of petroleum consump12 tion; and 

13 (iii) greenhouse gas reduction; 

14 (5) nanomaterial technology applied to both al15 ternative fuel components and systems; 

16 (6) large-scale demonstrations, testing, and 

17 evaluation of alternative fuel vehicles in different ap18 plications with different storage and control systems, 

19 including— 

20 (A) the incremental cost of alternative fuel 

21 vehicles and alternative fuel systems; 

22 (B) military applications; 

23 (C) mass market passenger and light-duty 

24 truck applications; 

25 (D) private fleet applications; and 


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1 (E) medium- and heavy-duty applications; 

2 (7) advancement of alternative fuel transpor3 tation technologies in mobile source applications 

4 by— 

5 (A) improvement in alternative fuel tech6 nologies; and 

7 (B) working with industry and the Admin8 istrator of the Environmental Protection Agen9 cy to— 

10 (i) understand and inventory markets; 

11 and 

12 (ii) identify and implement methods of 

13 removing barriers for existing and emerg14 ing applications; and 

15 (8) lightweight materials. 

16 (c) FUNDING.— 

17 (1) IN GENERAL.—Out of any funds in the 

18 Treasury not otherwise appropriated, the Secretary 

19 of the Treasury shall transfer to the Secretary to 

20 carry out this section, to remain available until ex21 pended— 

22 (A) on October 1, 2011, and each October 

23 1 thereafter through October 1, 2015, 

24 $1,000,000,000; and 


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1 (B) on October 1, 2016, and each October 

2 1 thereafter through October 1, 2020, 

3 $500,000,000. 

4 (2) RECEIPT AND ACCEPTANCE.—The Sec5 retary shall be entitled to receive, shall accept, and 

6 shall use to carry out this section the funds trans7 ferred under paragraph (1), without further appro8 priation. 

9 SEC. 102. FEDERAL FLEET REQUIREMENTS. 

10 (a) DEFINITION OF ALTERNATIVE FUELED VEHI11 CLE.—Section 301(3) of the Energy Policy Act of 1992 

12 (42 U.S.C. 13211(3)) is amended by adding at the end 

13 the following: 

14 ‘‘(C) EXCLUSION.—The term ‘alternative 

15 fueled vehicle’ does not include a dedicated ve16 hicle that operates exclusively on gasoline or 

17 diesel fuel.’’. 

18 (b) MINIMUM FEDERAL FLEET REQUIREMENT.— 

19 Section 303(b)(1) of the Energy Policy Act of 1992 (42 

20 U.S.C. 13212(b)(1)) is amended— 

21 (1) in subparagraph (C), by striking ‘‘and’’ 

22 after the semicolon at the end; and 

23 (2) by striking subparagraph (D) through the 

24 period at the end and inserting the following: 


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1 ‘‘(D) 75 percent in each of fiscal years 1999 

2 through 2012; 

3 ‘‘(E) 80 percent in each of fiscal years 2013 

4 through 2015; 

5 ‘‘(F) 90 percent in each of fiscal years 2016 

6 through 2019; and 

7 ‘‘(G) 100 percent in fiscal year 2020 and each 

8 fiscal year thereafter; 

9 shall be alternative fueled vehicles.’’. 

10 (c) FLEXIBLE FUEL VEHICLES; COMPLIANCE.—Sec11 tion 303(b) of the Energy Policy Act of 1992 (42 U.S.C. 

12 13212(b)) is amended— 

13 (1) by redesignating paragraph (3) as para14 graph (6); and 

15 (2) by inserting after paragraph (2) the fol16 lowing: 

17 ‘‘(3) FLEXIBLE FUEL VEHICLES.— 

18 ‘‘(A) DEFINITION OF FLEXIBLE FUEL VE19 HICLE.—In this paragraph, the term ‘flexible 

20 fuel vehicle’ means an automobile that has been 

21 warranted by the manufacturer of the auto22 mobile to operate on gasoline and fuel mixtures 

23 containing 15 percent gasoline and 85 percent 

24 ethanol or methanol. 


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1 ‘‘(B) MAXIMUM PERCENTAGE.—For model 

2 year 2015 and each model year thereafter, the 

3 Secretary shall, to the maximum extent prac4 ticable, ensure that not more than 75 percent 

5 of vehicles acquired by a Federal fleet are flexi6 ble fuel vehicles. 

7 ‘‘(4) COMPLIANCE.—The Secretary shall mon8 itor and report to Congress on the compliance of 

9 Federal agencies with the requirements of this sub10 section, including the number and reasons for waiv11 ers or reductions of percentages under this sub12 section.’’. 

13 SEC. 103. REFUELING INFRASTRUCTURE CORRIDORS. 

14 (a) NUMBER OF ELIGIBLE PROJECTS.—Section 

15 244(d)(1) of the Energy Independence and Security Act 

16 of 2007 (42 U.S.C. 17052(d)(1)) is amended by striking 

17 ‘‘10’’ and inserting ‘‘20’’. 

18 (b) REPORT.—Section 244 of the Energy Independ19 ence and Security Act of 2007 (42 U.S.C. 17052) is 

20 amended— 

21 (1) by redesignating subsection (f) as sub22 section (g); and 

23 (2) by inserting after subsection (e) the fol24 lowing: 


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1 ‘‘(f) REPORT.—Not later than 2 years after the date 

2 on which grants are awarded under subsection (d), the 

3 Secretary shall submit to Congress a report on the feasi4 bility and desirability of— 

5 ‘‘(1) establishing a refueling infrastructure cor6 ridor for each highway on the Interstate System (as 

7 defined in section 101(a) of title 23, United States 

8 Code); and 

9 ‘‘(2) expanding the scope of this section to 

10 cover alternative fuels.’’. 

11 SEC. 104. FEDERAL GOVERNMENT PETROLEUM CONSUMP12 TION. 

13 (a) IN GENERAL.—Section 303(b) of the Energy Pol14 icy Act of 1992 (42 U.S.C. 13212(b)) (as amended by sec15 tion 102(c)) is amended by adding at the end the fol16 lowing: 

17 ‘‘(5) PETROLEUM CONSUMPTION.—The Sec18 retary shall promulgate regulations for Federal 

19 fleets subject to this title requiring that, not later 

20 than fiscal year 2013, each Federal agency achieve 

21 at least a 5-percent reduction in petroleum consump22 tion, as calculated from the baseline established by 

23 the Secretary for fiscal year 2011.’’. 

24 (b) ADDITIONAL GASOLINE REDUCTION MEAS25 URES.— 


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1 (1) STUDY.—The Comptroller General of the 

2 United States shall conduct a study to determine 

3 whether additional gasoline reduction measures by 

4 Federal departments, agencies, and Congress are 

5 technically feasible. 

6 (2) REPORT.—Not later than 180 days after 

7 the date of enactment of this Act, the Comptroller 

8 General shall submit to Congress a report that de9 scribes the results of the study, including any rec10 ommendations. 

11 SEC. 105. DETERMINATION OF STANDARDS BY SECRETARY 

12 OF ENERGY FOR IDLING REDUCTION DE13 VICES. 

14 Not later than 180 days after the date of the enact15 ment of this Act and in order to reduce air pollution and 

16 fuel consumption, the Administrator of the Environmental 

17 Protection Agency, in consultation with the Secretary of 

18 Energy and the Secretary of Transportation, shall publish 

19 the standards under which the Administrator, in consulta20 tion with the Secretary of Energy and the Secretary of 

21 Transportation, will, for purposes of section 45Q of the 

22 Internal Revenue Code of 1986 (as added by this Act), 

23 determine the idling reduction devices which will reduce 

24 long-duration idling of vehicles at motor vehicle rest stops 

25 or other locations where such vehicles are temporarily 


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1 parked or remain stationary in order to reduce air pollu2 tion and fuel consumption. 

3 Subtitle B—Promoting Electric 

4 Vehicles 

5 SEC. 111. DEFINITIONS. 

6 In this subtitle: 

7 (1) AGENCY.—The term ‘‘agency’’ has the 

8 meaning given the term ‘‘Executive agency’’ in sec9 tion 105 of title 5, United States Code. 

10 (2) CHARGING INFRASTRUCTURE.—The term 

11 ‘‘charging infrastructure’’ means any property (not 

12 including a building) if the property is used for the 

13 recharging of plug-in electric drive vehicles, includ14 ing electrical panel upgrades, wiring, conduit, 

15 trenching, pedestals, and related equipment. 

16 (3) COMMITTEE.—The term ‘‘Committee’’ 

17 means the Plug-In Electric Drive Vehicle Technical 

18 Advisory Committee established by section 144. 

19 (4) DEPLOYMENT COMMUNITY.—The term ‘‘de20 ployment community’’ means a community selected 

21 by the Secretary to be part of the targeted plug-in 

22 electric drive vehicles deployment communities pro23 gram under section 126. 

24 (5) ELECTRIC UTILITY.—The term ‘‘electric 

25 utility’’ has the meaning given the term in section 


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1 3 of the Public Utility Regulatory Policies Act of 

2 1978 (16 U.S.C. 2602). 

3 (6) FEDERAL-AID SYSTEM OF HIGHWAYS.—The 

4 term ‘‘Federal-aid system of highways’’ means a 

5 highway system described in section 103 of title 23, 

6 United States Code. 

7 (7) PLUG-IN ELECTRIC DRIVE VEHICLE.— 

8 (A) IN GENERAL.—The term ‘‘plug-in elec9 tric drive vehicle’’ has the meaning given the 

10 term in section 131(a)(5) of the Energy Inde11 pendence and Security Act of 2007 (42 U.S.C. 

12 17011(a)(5)). 

13 (B) INCLUSIONS.—The term ‘‘plug-in elec14 tric drive vehicle’’ includes— 

15 (i) low speed plug-in electric drive ve16 hicles that meet the Federal Motor Vehicle 

17 Safety Standards described in section 

18 571.500 of title 49, Code of Federal Regu19 lations (or successor regulations); and 

20 (ii) any other electric drive motor ve21 hicle that can be recharged from an exter22 nal source of motive power and that is au23 thorized to travel on the Federal-aid sys24 tem of highways. 


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1 (8) PRIZE.—The term ‘‘Prize’’ means the Ad2 vanced Batteries for Tomorrow Prize established by 

3 section 132. 

4 (9) SECRETARY.—The term ‘‘Secretary’’ means 

5 the Secretary of Energy. 

6 (10) TASK FORCE.—The term ‘‘Task Force’’ 

7 means the Plug-in Electric Drive Vehicle Inter8 agency Task Force established by section 145. 

9 PART I—NATIONAL PLUG-IN ELECTRIC DRIVE 

10 VEHICLE DEPLOYMENT PROGRAM. 

11 SEC. 121. NATIONAL PLUG-IN ELECTRIC DRIVE VEHICLE 

12 DEPLOYMENT PROGRAM. 

13 (a) IN GENERAL.—There is established within the 

14 Department of Energy a national plug-in electric drive ve15 hicle deployment program for the purpose of assisting in 

16 the deployment of plug-in electric drive vehicles. 

17 (b) GOALS.—The goals of the national program de18 scribed in subsection (a) include— 

19 (1) the reduction and displacement of petro20 leum use by accelerating the deployment of plug-in 

21 electric drive vehicles in the United States; 

22 (2) the reduction of greenhouse gas emissions 

23 by accelerating the deployment of plug-in electric 

24 drive vehicles in the United States; 


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1 (3) the facilitation of the rapid deployment of 

2 plug-in electric drive vehicles; 

3 (4) the achievement of significant market pene4 trations by plug-in electric drive vehicles nationally; 

5 (5) the establishment of models for the rapid 

6 deployment of plug-in electric drive vehicles nation7 ally, including models for the deployment of residen8 tial, private, and publicly available charging infra9 structure; 

10 (6) the increase of consumer knowledge and ac11 ceptance of plug-in electric drive vehicles; 

12 (7) the encouragement of the innovation and in13 vestment necessary to achieve mass market deploy14 ment of plug-in electric drive vehicles; 

15 (8) the facilitation of the integration of plug-in 

16 electric drive vehicles into electricity distribution sys17 tems and the larger electric grid while maintaining 

18 grid system performance and reliability; 

19 (9) the provision of technical assistance to com20 munities across the United States to prepare for 

21 plug-in electric drive vehicles; and 

22 (10) the support of workforce training across 

23 the United States relating to plug-in electric drive 

24 vehicles. 


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1 (c) DUTIES.—In carrying out this subtitle, the Sec2 retary shall— 

3 (1) provide technical assistance to State, local, 

4 and tribal governments that want to create deploy5 ment programs for plug-in electric drive vehicles in 

6 the communities over which the governments have 

7 jurisdiction; 

8 (2) perform national assessments of the poten9 tial deployment of plug-in electric drive vehicles 

10 under section 122; 

11 (3) synthesize and disseminate data from the 

12 deployment of plug-in electric drive vehicles; 

13 (4) develop best practices for the successful de14 ployment of plug-in electric drive vehicles; 

15 (5) carry out workforce training under section 

16 124; 

17 (6) establish the targeted plug-in electric drive 

18 vehicle deployment communities program under sec19 tion 126; and 

20 (7) in conjunction with the Task Force, make 

21 recommendations to Congress and the President on 

22 methods to reduce the barriers to plug-in electric 

23 drive vehicle deployment. 

24 (d) REPORT.—Not later than 18 months after the 

25 date of enactment of this Act and biennially thereafter, 


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1 the Secretary shall submit to the appropriate committees 

2 of Congress a report on the progress made in imple3 menting the national program described in subsection (a) 

4 that includes— 

5 (1) a description of the progress made by— 

6 (A) the technical assistance program under 

7 section 123; and 

8 (B) the workforce training program under 

9 section 124; and 

10 (2) any updated recommendations of the Sec11 retary for changes in Federal programs to promote 

12 the purposes of this subtitle. 

13 (e) NATIONAL INFORMATION CLEARINGHOUSE.— 

14 The Secretary shall make available to the public, in a 

15 timely manner, information regarding— 

16 (1) the cost, performance, usage data, and tech17 nical data regarding plug-in electric drive vehicles 

18 and associated infrastructure, including information 

19 from the deployment communities established under 

20 section 126; and 

21 (2) any other educational information that the 

22 Secretary determines to be appropriate. 

23 (f) AUTHORIZATION OF APPROPRIATIONS.—For the 

24 period of fiscal years 2011 through 2016, there are auVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 thorized to be appropriated $100,000,000 to carry out sec2 tions 121 through 123. 

3 SEC. 122. NATIONAL ASSESSMENT AND PLAN. 

4 (a) IN GENERAL.—Not later than 2 years after the 

5 date of enactment of this Act, the Secretary shall carry 

6 out a national assessment and develop a national plan for 

7 plug-in electric drive vehicle deployment that includes— 

8 (1) an assessment of the maximum feasible de9 ployment of plug-in electric drive vehicles by 2020 

10 and 2030; 

11 (2) the establishment of national goals for mar12 ket penetration of plug-in electric drive vehicles by 

13 2020 and 2030; 

14 (3) a plan for integrating the successes and 

15 barriers to deployment identified by the deployment 

16 communities program established under section 126 

17 to prepare communities across the Nation for the 

18 rapid deployment of plug-in electric drive vehicles; 

19 (4) a plan for providing technical assistance to 

20 communities across the United States to prepare for 

21 plug-in electric drive vehicle deployment; 

22 (5) a plan for quantifying the reduction in pe23 troleum consumption and the net impact on green24 house gas emissions due to the deployment of plug25 in electric drive vehicles; and 


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1 (6) in consultation with the Task Force, any 

2 recommendations to the President and to Congress 

3 for changes in Federal programs (including laws, 

4 regulations, and guidelines)— 

5 (A) to better promote the deployment of 

6 plug-in electric drive vehicles; and 

7 (B) to reduce barriers to the deployment of 

8 plug-in electric drive vehicles. 

9 (b) UPDATES.—Not later than 2 years after the date 

10 of development of the plan described in subsection (a), and 

11 not less frequently than once every 2 years thereafter, the 

12 Secretary shall use market data and information from the 

13 targeted plug-in electric drive vehicle deployment commu14 nities program established under section 126 and other 

15 relevant data to update the plan to reflect real world mar16 ket conditions. 

17 SEC. 123. TECHNICAL ASSISTANCE. 

18 (a) TECHNICAL ASSISTANCE TO STATE, LOCAL, AND

19 TRIBAL GOVERNMENTS.— 

20 (1) IN GENERAL.—In carrying out this subtitle, 

21 the Secretary shall provide, at the request of the 

22 Governor, Mayor, county executive, or the designee 

23 of such an official, technical assistance to State, 

24 local, and tribal governments to assist with the de25 ployment of plug-in electric drive vehicles. 


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1 (2) REQUIREMENTS.—The technical assistance 

2 described in paragraph (1) shall include— 

3 (A) training on codes and standards for 

4 building and safety inspectors; 

5 (B) training on best practices for expe6 diting permits and inspections; 

7 (C) education and outreach on frequently 

8 asked questions relating to the various types of 

9 plug-in electric drive vehicles and associated in10 frastructure, battery technology, and disposal; 

11 and 

12 (D) the dissemination of information re13 garding best practices for the deployment of 

14 plug-in electric drive vehicles. 

15 (3) PRIORITY.—In providing technical assist16 ance under this subsection, the Secretary shall give 

17 priority to— 

18 (A) communities that have established 

19 public and private partnerships, including part20 nerships comprised of— 

21 (i) elected and appointed officials 

22 from each of the participating State, local, 

23 and tribal governments; 

24 (ii) relevant generators and distribu25 tors of electricity; 


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1 (iii) public utility commissions; 

2 (iv) departments of public works and 

3 transportation; 

4 (v) owners and operators of property 

5 that will be essential to the deployment of 

6 a sufficient level of publicly available 

7 charging infrastructure (including privately 

8 owned parking lots or structures and com9 mercial entities with public access loca10 tions); 

11 (vi) plug-in electric drive vehicle man12 ufacturers or retailers; 

13 (vii) third-party providers of charging 

14 infrastructure or services; 

15 (viii) owners of any major fleet that 

16 will participate in the program; 

17 (ix) as appropriate, owners and opera18 tors of regional electric power distribution 

19 and transmission facilities; and 

20 (x) other existing community coali21 tions recognized by the Department of En22 ergy; 

23 (B) communities that, as determined by 

24 the Secretary, have best demonstrated that the 

25 public is likely to embrace plug-in electric drive 


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1 vehicles, giving particular consideration to com2 munities that— 

3 (i) have documented waiting lists to 

4 purchase plug-in electric drive vehicles; 

5 (ii) have developed projections of the 

6 quantity of plug-in electric drive vehicles 

7 supplied to dealers; and 

8 (iii) have assessed the quantity of 

9 charging infrastructure installed or for 

10 which permits have been issued; 

11 (C) communities that have shown a com12 mitment to serving diverse consumer charging 

13 infrastructure needs, including the charging in14 frastructure needs for single- and multi-family 

15 housing and public and privately owned com16 mercial infrastructure; and 

17 (D) communities that have established reg18 ulatory and educational efforts to facilitate con19 sumer acceptance of plug-in electric drive vehi20 cles, including by— 

21 (i) adopting (or being in the process 

22 of adopting) streamlined permitting and 

23 inspections processes for residential charg24 ing infrastructure; and 


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1 (ii) providing customer informational 

2 resources, including providing plug-in elec3 tric drive information on community or 

4 other Web sites. 

5 (4) BEST PRACTICES.—The Secretary shall col6 lect and disseminate information to State, local, and 

7 tribal governments creating plans to deploy plug-in 

8 electric drive vehicles on best practices (including 

9 codes and standards) that uses data from— 

10 (A) the program established by section 

11 126; 

12 (B) the activities carried out by the Task 

13 Force; and 

14 (C) existing academic and industry studies 

15 of the factors that contribute to the successful 

16 deployment of new technologies, particularly 

17 studies relating to alternative fueled vehicles. 

18 (5) GRANTS.— 

19 (A) IN GENERAL.—The Secretary shall es20 tablish a program to provide grants to State, 

21 local, and tribal governments or to partnerships 

22 of government and private entities to assist the 

23 governments and partnerships— 

24 (i) in preparing a community deploy25 ment plan under section 126; and 


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1 (ii) in preparing and implementing 

2 programs that support the deployment of 

3 plug-in electric drive vehicles. 

4 (B) APPLICATION.—A State, local, or trib5 al government that seeks to receive a grant 

6 under this paragraph shall submit to the Sec7 retary an application for the grant at such 

8 time, in such form, and containing such infor9 mation as the Secretary may prescribe. 

10 (C) USE OF FUNDS.—A State, local, or 

11 tribal government receiving a grant under this 

12 paragraph shall use the funds— 

13 (i) to develop a community deploy14 ment plan that shall be submitted to the 

15 next available competition under section 

16 126; and 

17 (ii) to carry out activities that encour18 age the deployment of plug-in electric drive 

19 vehicles including— 

20 (I) planning for and installing 

21 charging infrastructure, particularly 

22 to develop and demonstrate diverse 

23 and cost-effective planning, installa24 tion, and operations options for de25 ployment of single family and multiVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 family residential, workplace, and 

2 publicly available charging infrastruc3 ture; 

4 (II) updating building, zoning, or 

5 parking codes and permitting or in6 spection processes; 

7 (III) workforce training, includ8 ing the training of permitting offi9 cials; 

10 (IV) public education described 

11 in the proposed marketing plan; 

12 (V) shifting State, local, or tribal 

13 government fleets to plug-in electric 

14 drive vehicles, at a rate in excess of 

15 the existing alternative fueled fleet ve16 hicles acquisition requirements for 

17 Federal fleets under section 

18 303(b)(1)(D) of the Energy Policy 

19 Act of 1992 (42 U.S.C. 

20 13212(b)(1)(D)); and 

21 (VI) any other activities, as de22 termined to be necessary by the Sec23 retary. 

24 (D) CRITERIA.—The Secretary shall de25 velop and publish criteria for the selection of 


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1 technical assistance grants, including require2 ments for the submission of applications under 

3 this paragraph. 

4 (E) AUTHORIZATION OF APPROPRIA5 TIONS.—There are authorized to be appro6 priated such sums as are necessary to carry out 

7 this paragraph. 

8 (b) UPDATING MODEL BUILDING CODES, PERMIT9 TING AND INSPECTION PROCESSES, AND ZONING OR

10 PARKING RULES.— 

11 (1) IN GENERAL.—Not later than 1 year after 

12 the date of enactment of this Act, the Secretary, in 

13 consultation with the American Society of Heating, 

14 Refrigerating and Air-Conditioning Engineers, the 

15 International Code Council, and any other organiza16 tions that the Secretary determines to be appro17 priate, shall develop and publish guidance for— 

18 (A) model building codes for the inclusion 

19 of separate circuits for charging infrastructure, 

20 as appropriate, in new construction and major 

21 renovations of private residences, buildings, or 

22 other structures that could provide publicly 

23 available charging infrastructure; 

24 (B) model construction permitting or in25 spection processes that allow for the expedited 


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1 installation of charging infrastructure for pur2 chasers of plug-in electric drive vehicles (includ3 ing a permitting process that allows a vehicle 

4 purchaser to have charging infrastructure in5 stalled not later than 1 week after a request); 

6 and 

7 (C) model zoning, parking rules, or other 

8 local ordinances that— 

9 (i) facilitate the installation of pub10 licly available charging infrastructure, in11 cluding commercial entities that provide 

12 public access to infrastructure; and 

13 (ii) allow for access to publicly avail14 able charging infrastructure. 

15 (2) OPTIONAL ADOPTION.—An applicant for se16 lection for technical assistance under this section or 

17 as a deployment community under section 126 shall 

18 not be required to use the model building codes, per19 mitting and inspection processes, or zoning, parking 

20 rules, or other ordinances included in the report 

21 under paragraph (1). 

22 (3) SMART GRID INTEGRATION.—In developing 

23 the model codes or ordinances described in para24 graph (1), the Secretary shall consider smart grid 

25 integration. 


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1 SEC. 124. WORKFORCE TRAINING. 

2 (a) MAINTENANCE AND SUPPORT.— 

3 (1) IN GENERAL.—The Secretary, in consulta4 tion with the Committee and the Task Force, shall 

5 award grants to institutions of higher education and 

6 other qualified training and education institutions 

7 for the establishment of programs to provide train8 ing and education for vocational workforce develop9 ment through centers of excellence. 

10 (2) PURPOSE.—Training funded under this 

11 subsection shall be intended to ensure that the work12 force has the necessary skills needed to work on and 

13 maintain plug-in electric drive vehicles and the infra14 structure required to support plug-in electric drive 

15 vehicles. 

16 (3) SCOPE.—Training funded under this sub17 section shall include training for— 

18 (A) first responders; 

19 (B) electricians and contractors who will 

20 be installing infrastructure; 

21 (C) engineers; 

22 (D) code inspection officials; and 

23 (E) dealers and mechanics. 

24 (b) DESIGN.—The Secretary shall award grants to 

25 institutions of higher education and other qualified train26 ing and education institutions for the establishment of 


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1 programs to provide training and education in designing 

2 plug-in electric drive vehicles and associated components 

3 and infrastructure to ensure that the United States can 

4 lead the world in this field. 

5 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

6 authorized to be appropriated $150,000,000 to carry out 

7 this section. 

8 SEC. 125. FEDERAL FLEETS. 

9 (a) IN GENERAL.—Electricity consumed by Federal 

10 agencies to fuel plug-in electric drive vehicles— 

11 (1) is an alternative fuel (as defined in section 

12 301 of the Energy Policy Act of 1992 (42 U.S.C. 

13 13218)); and 

14 (2) shall be accounted for under Federal fleet 

15 management reporting requirements, not under Fed16 eral building management reporting requirements. 

17 (b) ASSESSMENT AND REPORT.—Not later than 180 

18 days after the date of enactment of this Act and every 

19 3 years thereafter, the Federal Energy Management Pro20 gram and the General Services Administration, in con21 sultation with the Task Force, shall complete an assess22 ment of Federal Government fleets, including the Postal 

23 Service and the Department of Defense, and submit a re24 port to Congress that describes— 


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1 (1) for each Federal agency, which types of ve2 hicles the agency uses that would or would not be 

3 suitable for near-term and medium-term conversion 

4 to plug-in electric drive vehicles, taking into account 

5 the types of vehicles for which plug-in electric drive 

6 vehicles could provide comparable functionality and 

7 lifecycle costs; 

8 (2) how many plug-in electric drive vehicles 

9 could be deployed by the Federal Government in 5 

10 years and in 10 years, assuming that plug-in electric 

11 drive vehicles are available and are purchased when 

12 new vehicles are needed or existing vehicles are re13 placed; 

14 (3) the estimated cost to the Federal Govern15 ment for vehicle purchases under paragraph (2); and 

16 (4) a description of any updates to the assess17 ment based on new market data. 

18 (c) INVENTORY AND DATA COLLECTION.— 

19 (1) IN GENERAL.—In carrying out the assess20 ment and report under subsection (b), the Federal 

21 Energy Management Program, in consultation with 

22 the General Services Administration, shall— 

23 (A) develop an information request for 

24 each agency that operates a fleet of at least 20 

25 motor vehicles; and 


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1 (B) establish guidelines for each agency to 

2 use in developing a plan to deploy plug-in elec3 tric drive vehicles. 

4 (2) AGENCY RESPONSES.—Each agency that 

5 operates a fleet of at least 20 motor vehicles shall— 

6 (A) collect information on the vehicle fleet 

7 of the agency in response to the information re8 quest described in paragraph (1); and 

9 (B) develop a plan to deploy plug-in elec10 tric drive vehicles. 

11 (3) ANALYSIS OF RESPONSES.—The Federal 

12 Energy Management Program shall— 

13 (A) analyze the information submitted by 

14 each agency under paragraph (2); 

15 (B) approve or suggest amendments to the 

16 plan of each agency to ensure that the plan is 

17 consistent with the goals and requirements of 

18 this Act; and 

19 (C) submit a plan to Congress and the 

20 General Services Administration to be used in 

21 developing the pilot program described in sub22 section (e). 

23 (d) BUDGET REQUEST.—Each agency of the Federal 

24 Government shall include plug-in electric drive vehicle pur25 chases identified in the report under subsection (b) in the 


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1 budget of the agency to be included in the budget of the 

2 United States Government submitted by the President 

3 under section 1105 of title 31, United States Code. 

4 (e) PILOT PROGRAM TO DEPLOY PLUG-IN ELECTRIC

5 DRIVE VEHICLES IN THE FEDERAL FLEET.— 

6 (1) IN GENERAL.—The Administrator of Gen7 eral Services shall acquire plug-in electric drive vehi8 cles and the requisite charging infrastructure to be 

9 deployed in a range of locations in Federal Govern10 ment fleets, which may include the United States 

11 Postal Service and the Department of Defense, dur12 ing the 5-year period beginning on the date of enact13 ment of this Act. 

14 (2) DATA COLLECTION.—The Administrator of 

15 General Services shall collect data regarding— 

16 (A) the cost, performance, and use of plug17 in electric drive vehicles in the Federal fleet; 

18 (B) the deployment and integration of 

19 plug-in electric drive vehicles in the Federal 

20 fleet; and 

21 (C) the contribution of plug-in electric 

22 drive vehicles in the Federal fleet toward reduc23 ing the use of fossil fuels and greenhouse gas 

24 emissions. 


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1 (3) REPORT.—Not later than 6 years after the 

2 date of enactment of this Act, the Administrator of 

3 General Services shall submit to the appropriate 

4 committees of Congress a report that— 

5 (A) describes the status of plug-in electric 

6 drive vehicles in the Federal fleet; and 

7 (B) includes an analysis of the data col8 lected under this subsection. 

9 (4) PUBLIC WEB SITE.—The Federal Energy 

10 Management Program shall maintain and regularly 

11 update a publicly available Web site that provides in12 formation on the status of plug-in electric drive vehi13 cles in the Federal fleet. 

14 (f) ACQUISITION PRIORITY.—Section 507(g) of the 

15 Energy Policy Act of 1992 (42 U.S.C. 13257(g)) is 

16 amended by adding at the end the following: 

17 ‘‘(5) PRIORITY.—The Secretary shall, to the 

18 maximum extent practicable, prioritize the acquisi19 tion of plug-in electric drive vehicles (as defined in 

20 section 131(a) of the Energy Independence and Se21 curity Act of 2007 (42 U.S.C. 17011(a)) over non22 electric alternative fueled vehicles.’’. 

23 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

24 authorized to be appropriated for the Federal Government 

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1 in electric drive vehicles and the requisite charging infra2 structure for Federal fleets $25,000,000. 

3 SEC. 126. TARGETED PLUG-IN ELECTRIC DRIVE VEHICLE 

4 DEPLOYMENT COMMUNITIES PROGRAM. 

5 (a) ESTABLISHMENT.— 

6 (1) IN GENERAL.—There is established within 

7 the national plug-in electric drive deployment pro8 gram established under section 121 a targeted plug9 in electric drive vehicle deployment communities pro10 gram (referred to in this section as the ‘‘Program’’). 

11 (2) EXISTING ACTIVITIES.—In carrying out the 

12 Program, the Secretary shall coordinate and supple13 ment, not supplant, any ongoing plug-in electric 

14 drive deployment activities under section 131 of the 

15 Energy Independence and Security Act of 2007 (42 

16 U.S.C. 17011). 

17 (3) PHASE 1.— 

18 (A) IN GENERAL.—The Secretary shall es19 tablish a competitive process to select phase 1 

20 deployment communities for the Program. 

21 (B) ELIGIBLE ENTITIES.—In selecting 

22 participants for the Program under paragraph 

23 (1), the Secretary shall only consider applica24 tions submitted by State, tribal, or local governVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 ment entities (or groups of State, tribal, or 

2 local government entities). 

3 (C) SELECTION.—Not later than 1 year 

4 after the date of enactment of this Act and not 

5 later than 1 year after the date on which any 

6 subsequent amounts are appropriated for the 

7 Program, the Secretary shall select the phase 1 

8 deployment communities under this paragraph. 

9 (D) TERMINATION.—Phase 1 of the Pro10 gram shall be carried out for a 3-year period 

11 beginning on the date funding under this sub12 title is first provided to the deployment commu13 nity. 

14 (4) PHASE 2.—Not later than 3 years after the 

15 date of enactment of this Act, the Secretary shall 

16 submit to Congress a report that analyzes the les17 sons learned in phase I and, if, based on the phase 

18 I analysis, the Secretary determines that a phase II 

19 program is warranted, makes recommendations and 

20 describes a plan for phase II, including— 

21 (A) recommendations regarding— 

22 (i) options for the number of addi23 tional deployment communities that should 

24 be selected; 


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1 (ii) the manner in which criteria for 

2 selection should be updated; 

3 (iii) the manner in which incentive 

4 structures for phase 2 deployment should 

5 be changed; and 

6 (iv) whether other forms of onboard 

7 energy storage for electric drive vehicles, 

8 such as fuel cells, should be included in 

9 phase 2; and 

10 (B) a request for appropriations to imple11 ment phase 2 of the Program. 

12 (b) GOALS.—The goals of the Program are— 

13 (1) to facilitate the rapid deployment of plug14 in electric drive vehicles, including— 

15 (A) the deployment of 400,000 plug-in 

16 electric drive vehicles in phase 1 in the deploy17 ment communities selected under paragraph 

18 (2); 

19 (B) the near-term achievement of signifi20 cant market penetration in deployment commu21 nities; and 

22 (C) supporting the achievement of signifi23 cant market penetration nationally; 

24 (2) to establish models for the rapid deployment 

25 of plug-in electric drive vehicles nationally, including 


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1 for the deployment of single-family and multifamily 

2 residential, workplace, and publicly available charg3 ing infrastructure; 

4 (3) to increase consumer knowledge and accept5 ance of, and exposure to, plug-in electric drive vehi6 cles; 

7 (4) to encourage the innovation and investment 

8 necessary to achieve mass market deployment of 

9 plug-in electric drive vehicles; 

10 (5) to demonstrate the integration of plug-in 

11 electric drive vehicles into electricity distribution sys12 tems and the larger electric grid while maintaining 

13 or improving grid system performance and reli14 ability; 

15 (6) to demonstrate protocols and communica16 tion standards that facilitate vehicle integration into 

17 the grid and provide seamless charging for con18 sumers traveling through multiple utility distribution 

19 systems; 

20 (7) to investigate differences among deployment 

21 communities and to develop best practices for imple22 menting vehicle electrification in various commu23 nities, including best practices for planning for and 

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1 place, and publicly available infrastructure to sup2 port plug-in electric drive vehicles; 

3 (8) to collect comprehensive data on the pur4 chase and use of plug-in electric drive vehicles, in5 cluding charging profile data at unit and aggregate 

6 levels, to inform best practices for rapidly deploying 

7 plug-in electric drive vehicles in other locations, in8 cluding for the installation of charging infrastruc9 ture; 

10 (9) to reduce and displace petroleum use and 

11 reduce greenhouse gas emissions by accelerating the 

12 deployment of plug-in electric drive vehicles in the 

13 United States; and 

14 (10) to increase domestic manufacturing capac15 ity and commercialization in a manner that will es16 tablish the United States as a world leader in plug17 in electric drive vehicle technologies. 

18 (c) PHASE 1 DEPLOYMENT COMMUNITY SELECTION

19 CRITERIA.— 

20 (1) IN GENERAL.—The Secretary shall ensure, 

21 to the maximum extent practicable, that selected de22 ployment communities in phase 1 serve as models of 

23 deployment for various communities across the 

24 United States. 


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1 (2) SELECTION.—In selecting communities 

2 under this section, the Secretary— 

3 (A) shall ensure, to the maximum extent 

4 practicable, that— 

5 (i) the combination of selected com6 munities is diverse in population density, 

7 demographics, urban and suburban com8 position, typical commuting patterns, cli9 mate, and type of utility (including inves10 tor-owned, publicly owned, cooperatively 

11 owned, distribution-only, and vertically in12 tegrated utilities); 

13 (ii) the combination of selected com14 munities is diverse in geographic distribu15 tion, and at least 1 deployment community 

16 is located in each Petroleum Administra17 tion for Defense District; 

18 (iii) at least 1 community selected has 

19 a population of less than 125,000; 

20 (iv) grants are of a sufficient amount 

21 such that each deployment community will 

22 achieve significant market penetration; and 

23 (v) the deployment communities are 

24 representative of other communities across 

25 the United States; 


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1 (B) is encouraged to select a combination 

2 of deployment communities that includes mul3 tiple models or approaches for deploying plug4 in electric drive vehicles that the Secretary be5 lieves are reasonably likely to be effective, in6 cluding multiple approaches to the deployment 

7 of charging infrastructure; 

8 (C) in addition to the criteria described in 

9 subparagraph (A), may give preference to appli10 cants proposing a greater non-Federal cost 

11 share; and 

12 (D) when considering deployment commu13 nity plans, shall take into account previous De14 partment of Energy and other Federal invest15 ments to ensure that the maximum domestic 

16 benefit from Federal investments is realized. 

17 (3) CRITERIA.— 

18 (A) IN GENERAL.—Not later than 120 

19 days after the date of enactment of this Act, 

20 and not later than 90 days after the date on 

21 which any subsequent amounts are appro22 priated for the Program, the Secretary shall 

23 publish criteria for the selection of deployment 

24 communities that include requirements that ap25 plications be submitted by a State, tribal, or 


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1 local government entity (or groups of State, 

2 tribal, or local government entities). 

3 (B) APPLICATION REQUIREMENTS.—The 

4 criteria published by the Secretary under sub5 paragraph (A) shall include application require6 ments that, at a minimum, include— 

7 (i) goals for— 

8 (I) the number of plug-in electric 

9 drive vehicles to be deployed in the 

10 community; 

11 (II) the expected percentage of 

12 light-duty vehicle sales that would be 

13 sales of plug-in electric drive vehicles; 

14 and 

15 (III) the adoption of plug-in elec16 tric drive vehicles (including medium17 or heavy-duty vehicles) in private and 

18 public fleets during the 3-year dura19 tion of the Program; 

20 (ii) data that demonstrate that— 

21 (I) the public is likely to embrace 

22 plug-in electric drive vehicles, which 

23 may include— 

24 (aa) the quantity of plug-in 

25 electric drive vehicles purchased; 


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1 (bb) the number of individ2 uals on a waiting list to purchase 

3 a plug-in electric drive vehicle; 

4 (cc) projections of the quan5 tity of plug-in electric drive vehi6 cles supplied to dealers; and 

7 (dd) any assessment of the 

8 quantity of charging infrastruc9 ture installed or for which per10 mits have been issued; and 

11 (II) automobile manufacturers 

12 and dealers will be able to provide and 

13 service the targeted number of plug-in 

14 electric drive vehicles in the commu15 nity for the duration of the program; 

16 (iii) clearly defined geographic bound17 aries of the proposed deployment area; 

18 (iv) a community deployment plan for 

19 the deployment of plug-in electric drive ve20 hicles, charging infrastructure, and serv21 ices in the deployment community; 

22 (v) assurances that a majority of the 

23 vehicle deployments anticipated in the plan 

24 will be personal vehicles authorized to trav25 el on the United States Federal-aid system 


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1 of highways, and secondarily, private or 

2 public sector plug-in electric drive fleet ve3 hicles, but may also include— 

4 (I) medium- and heavy-duty 

5 plug-in hybrid vehicles; 

6 (II) low speed plug-in electric 

7 drive vehicles that meet Federal 

8 Motor Vehicle Safety Standards de9 scribed in section 571.500 of title 49, 

10 Code of Federal Regulations; and 

11 (III) any other plug-in electric 

12 drive vehicle authorized to travel on 

13 the United States Federal-aid system 

14 of highways; and 

15 (vi) any other merit-based criteria, as 

16 determined by the Secretary. 

17 (4) COMMUNITY DEPLOYMENT PLANS.—Plans 

18 for the deployment of plug-in electric drive vehicles 

19 shall include— 

20 (A) a proposed level of cost sharing in ac21 cordance with subsection (d)(2)(C); 

22 (B) documentation demonstrating a sub23 stantial partnership with relevant stakeholders, 

24 including— 


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1 (i) a list of stakeholders that in2 cludes— 

3 (I) elected and appointed officials 

4 from each of the participating State, 

5 local, and tribal governments; 

6 (II) all relevant generators and 

7 distributors of electricity; 

8 (III) State utility regulatory au9 thorities; 

10 (IV) departments of public works 

11 and transportation; 

12 (V) owners and operators of 

13 property that will be essential to the 

14 deployment of a sufficient level of 

15 publicly available charging infrastruc16 ture (including privately owned park17 ing lots or structures and commercial 

18 entities with public access locations); 

19 (VI) plug-in electric drive vehicle 

20 manufacturers or retailers; 

21 (VII) third-party providers of 

22 residential, workplace, private, and 

23 publicly available charging infrastruc24 ture or services; 


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1 (VIII) owners of any major fleet 

2 that will participate in the program; 

3 (IX) as appropriate, owners and 

4 operators of regional electric power 

5 distribution and transmission facili6 ties; and 

7 (X) as appropriate, other existing 

8 community coalitions recognized by 

9 the Department of Energy; 

10 (ii) evidence of the commitment of the 

11 stakeholders to participate in the partner12 ship; 

13 (iii) a clear description of the role and 

14 responsibilities of each stakeholder; and 

15 (iv) a plan for continuing the engage16 ment and participation of the stakeholders, 

17 as appropriate, throughout the implemen18 tation of the deployment plan; 

19 (C) a description of the number of plug-in 

20 electric drive vehicles anticipated to be plug-in 

21 electric drive personal vehicles and the number 

22 of plug-in electric drive vehicles anticipated to 

23 be privately owned fleet or public fleet vehicles; 


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1 (D) a plan for deploying residential, work2 place, private, and publicly available charging 

3 infrastructure, including— 

4 (i) an assessment of the number of 

5 consumers who will have access to private 

6 residential charging infrastructure in sin7 gle-family or multifamily residences; 

8 (ii) options for accommodating plug-in 

9 electric drive vehicle owners who are not 

10 able to charge vehicles at their place of 

11 residence; 

12 (iii) an assessment of the number of 

13 consumers who will have access to work14 place charging infrastructure; 

15 (iv) a plan for ensuring that the 

16 charging infrastructure or plug-in electric 

17 drive vehicle be able to send and receive 

18 the information needed to interact with the 

19 grid and be compatible with smart grid 

20 technologies to the extent feasible; 

21 (v) an estimate of the number and 

22 dispersion of publicly and privately owned 

23 charging stations that will be publicly or 

24 commercially available; 


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1 (vi) an estimate of the quantity of 

2 charging infrastructure that will be pri3 vately funded or located on private prop4 erty; and 

5 (vii) a description of equipment to be 

6 deployed, including assurances that, to the 

7 maximum extent practicable, equipment to 

8 be deployed will meet open, nonproprietary 

9 standards for connecting to plug-in electric 

10 drive vehicles that are either— 

11 (I) commonly accepted by indus12 try at the time the equipment is being 

13 acquired; or 

14 (II) meet the standards developed 

15 by the Director of the National Insti16 tute of Standards and Technology 

17 under section 1305 of the Energy 

18 Independence and Security Act of 

19 2007 (42 U.S.C. 17385); 

20 (E) a plan for effective marketing of and 

21 consumer education relating to plug-in electric 

22 drive vehicles, charging services, and infrastruc23 ture; 

24 (F) descriptions of updated building codes 

25 (or a plan to update building codes before or 


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1 during the grant period) to include charging in2 frastructure or dedicated circuits for charging 

3 infrastructure, as appropriate, in new construc4 tion and major renovations; 

5 (G) descriptions of updated construction 

6 permitting or inspection processes (or a plan to 

7 update construction permitting or inspection 

8 processes) to allow for expedited installation of 

9 charging infrastructure for purchasers of plug10 in electric drive vehicles, including a permitting 

11 process that allows a vehicle purchaser to have 

12 charging infrastructure installed in a timely 

13 manner; 

14 (H) descriptions of updated zoning, park15 ing rules, or other local ordinances as are nec16 essary to facilitate the installation of publicly 

17 available charging infrastructure and to allow 

18 for access to publicly available charging infra19 structure, as appropriate; 

20 (I) a plan to ensure that each resident in 

21 a deployment community who purchases and 

22 registers a new plug-in electric drive vehicle 

23 throughout the duration of the deployment com24 munity receives, in addition to any Federal in25 centives, consumer benefits that may include— 


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1 (i) a rebate of part of the purchase 

2 price of the vehicle; 

3 (ii) reductions in sales taxes or reg4 istration fees; 

5 (iii) rebates or reductions in the costs 

6 of permitting, purchasing, or installing 

7 home plug-in electric drive vehicle charging 

8 infrastructure; and 

9 (iv) rebates or reductions in State or 

10 local toll road access charges; 

11 (J) additional consumer benefits, such as 

12 preferred parking spaces or single-rider access 

13 to high-occupancy vehicle lanes for plug-in elec14 tric drive vehicles; 

15 (K) a proposed plan for making necessary 

16 utility and grid upgrades, including economi17 cally sound and cybersecure information tech18 nology upgrades and employee training, and a 

19 plan for recovering the cost of the upgrades; 

20 (L) a description of utility, grid operator, 

21 or third-party charging service provider, policies 

22 and plans for accommodating the deployment of 

23 plug-in electric drive vehicles, including— 


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1 (i) rate structures or provisions and 

2 billing protocols for the charging of plug3 in electric drive vehicles; 

4 (ii) analysis of potential impacts to 

5 the grid; 

6 (iii) plans for using information tech7 nology or third-party aggregators— 

8 (I) to minimize the effects of 

9 charging on peak loads; 

10 (II) to enhance reliability; and 

11 (III) to provide other grid bene12 fits; 

13 (iv) plans for working with smart grid 

14 technologies or third-party aggregators for 

15 the purposes of smart charging and for al16 lowing 2-way communication; 

17 (M) a deployment timeline; 

18 (N) a plan for monitoring and evaluating 

19 the implementation of the plan, including 

20 metrics for assessing the success of the deploy21 ment and an approach to updating the plan, as 

22 appropriate; and 

23 (O) a description of the manner in which 

24 any grant funds applied for under subsection 


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1 (d) will be used and the proposed local cost 

2 share for the funds. 

3 (d) PHASE 1 APPLICATIONS AND GRANTS.— 

4 (1) APPLICATIONS.— 

5 (A) IN GENERAL.—Not later than 150 

6 days after the date of publication by the Sec7 retary of selection criteria described in sub8 section (c)(3), any State, tribal, or local govern9 ment, or group of State, tribal, or local govern10 ments may apply to the Secretary to become a 

11 deployment community. 

12 (B) JOINT SPONSORSHIP.— 

13 (i) IN GENERAL.—An application sub14 mitted under subparagraph (A) may be 

15 jointly sponsored by electric utilities, auto16 mobile manufacturers, technology pro17 viders, carsharing companies or organiza18 tions, third-party plug-in electric drive ve19 hicle service providers, or other appro20 priated entities. 

21 (ii) DISBURSEMENT OF GRANTS.—A 

22 grant provided under this subsection shall 

23 only be disbursed to a State, tribal, or 

24 local government, or group of State, tribal, 

25 or local governments, regardless of whether 


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1 the application is jointly sponsored under 

2 clause (i). 

3 (2) GRANTS.— 

4 (A) IN GENERAL.—In each application, the 

5 applicant may request up to $250,000,000 in fi6 nancial assistance from the Secretary to fund 

7 projects in the deployment community. 

8 (B) USE OF FUNDS.—Funds provided 

9 through a grant under this paragraph may be 

10 used to help implement the plan for the deploy11 ment of plug-in electric drive vehicles included 

12 in the application, including— 

13 (i) planning for and installing charg14 ing infrastructure, including offering addi15 tional incentives as described in subsection 

16 (c)(4)(I); 

17 (ii) updating building codes, zoning or 

18 parking rules, or permitting or inspection 

19 processes as described in subparagraphs 

20 (F), (G), and (H) of subsection (c)(4); 

21 (iii) reducing the cost and increasing 

22 the consumer adoption of plug-in electric 

23 drive vehicles through incentives as de24 scribed in subsection (c)(4)(I); 


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1 (iv) workforce training, including 

2 training of permitting officials; 

3 (v) public education and marketing 

4 described in the proposed marketing plan; 

5 (vi) shifting State, tribal, or local gov6 ernment fleets to plug-in electric drive ve7 hicles, at a rate in excess of the existing al8 ternative fueled fleet vehicle acquisition re9 quirements for Federal fleets under section 

10 303(b)(1)(D) of the Energy Policy Act of 

11 1992 (42 U.S.C. 13212(b)(1)(D)); and 

12 (vii) necessary utility and grid up13 grades as described in subsection 

14 (c)(4)(K). 

15 (C) COST-SHARING.— 

16 (i) IN GENERAL.—A grant provided 

17 under this paragraph shall be subject to a 

18 minimum non-Federal cost-sharing re19 quirement of 20 percent. 

20 (ii) NON-FEDERAL SOURCES.—The 

21 Secretary shall— 

22 (I) determine the appropriate 

23 cost share for each selected applicant; 

24 and 


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1 (II) require that not less than 20 

2 percent of the cost of an activity fund3 ed by a grant under this paragraph be 

4 provided by a non-Federal source. 

5 (iii) REDUCTION.—The Secretary may 

6 reduce or eliminate the cost-sharing re7 quirement described in clause (i), as the 

8 Secretary determines to be necessary. 

9 (iv) CALCULATION OF AMOUNT.—In 

10 calculating the amount of the non-Federal 

11 share under this section, the Secretary— 

12 (I) may include allowable costs in 

13 accordance with the applicable cost 

14 principles, including— 

15 (aa) cash; 

16 (bb) personnel costs; 

17 (cc) the value of a service, 

18 other resource, or third-party in19 kind contribution determined in 

20 accordance with the applicable 

21 circular of the Office of Manage22 ment and Budget; 

23 (dd) indirect costs or facili24 ties and administrative costs; or 


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1 (ee) any funds received 

2 under the power program of the 

3 Tennessee Valley Authority or 

4 any Power Marketing Adminis5 tration (except to the extent that 

6 such funds are made available 

7 under an annual appropriation 

8 Act); 

9 (II) shall include contributions 

10 made by State, tribal, or local govern11 ment entities and private entities; and 

12 (III) shall not include— 

13 (aa) revenues or royalties 

14 from the prospective operation of 

15 an activity beyond the time con16 sidered in the grant; 

17 (bb) proceeds from the pro18 spective sale of an asset of an ac19 tivity; or 

20 (cc) other appropriated Fed21 eral funds. 

22 (v) REPAYMENT OF FEDERAL

23 SHARE.—The Secretary shall not require 

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1 shared activity under this section as a con2 dition of providing a grant. 

3 (vi) TITLE TO PROPERTY.—The Sec4 retary may vest title or other property in5 terests acquired under projects funded 

6 under this subtitle in any entity, including 

7 the United States. 

8 (3) SELECTION.—Not later than 120 days after 

9 an application deadline has been established under 

10 paragraph (1), the Secretary shall announce the 

11 names of the deployment communities selected under 

12 this subsection. 

13 (e) REPORTING REQUIREMENTS.— 

14 (1) IN GENERAL.—The Secretary, in consulta15 tion with the Committee, shall— 

16 (A) determine what data will be required 

17 to be collected by participants in deployment 

18 communities and submitted to the Department 

19 to allow for analysis of the deployment commu20 nities; 

21 (B) provide for the protection of consumer 

22 privacy, as appropriate; and 

23 (C) develop metrics to evaluate the per24 formance of the deployment communities. 


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1 (2) PROVISION OF DATA.—As a condition of 

2 participation in the Program, a deployment commu3 nity shall provide any data identified by the Sec4 retary under paragraph (1). 

5 (3) REPORTS.—Not later than 3 years after the 

6 date of enactment of this Act and again after the 

7 completion of the Program, the Secretary shall sub8 mit to Congress a report that contains— 

9 (A) a description of the status of— 

10 (i) the deployment communities and 

11 the implementation of the deployment plan 

12 of each deployment community; 

13 (ii) the rate of vehicle deployment and 

14 market penetration of plug-in electric drive 

15 vehicles; and 

16 (iii) the deployment of residential and 

17 publicly available infrastructure; 

18 (B) a description of the challenges experi19 enced and lessons learned from the program to 

20 date, including the activities described in sub21 paragraph (A); and 

22 (C) an analysis of the data collected under 

23 this subsection. 


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1 (f) PROPRIETARY INFORMATION.—The Secretary 

2 shall, as appropriate, provide for the protection of propri3 etary information and intellectual property rights. 

4 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

5 authorized to be appropriated to carry out this section 

6 $2,000,002,000. 

7 (h) CONFORMING AMENDMENT.—Section 166(b)(5) 

8 of title 23, United States Code, is amended— 

9 (1) in subparagraph (A), by striking ‘‘Before 

10 September 30, 2009, the State’’ and inserting ‘‘The 

11 State’’; and 

12 (2) in subparagraph (B), by striking ‘‘Before 

13 September 30, 2009, the State’’ and inserting ‘‘The 

14 State’’. 

15 PART II—RESEARCH AND DEVELOPMENT 

16 SEC. 131. RESEARCH AND DEVELOPMENT PROGRAM. 

17 (a) RESEARCH AND DEVELOPMENT PROGRAM.— 

18 (1) IN GENERAL.—The Secretary, in consulta19 tion with the Committee, shall establish a program 

20 to fund research and development in advanced bat21 teries, plug-in electric drive vehicle components, 

22 plug-in electric drive infrastructure, and other tech23 nologies supporting the development, manufacture, 

24 and deployment of plug-in electric drive vehicles and 

25 charging infrastructure. 


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1 (2) USE OF FUNDS.—The program may include 

2 funding for— 

3 (A) the development of low-cost, smart4 charging and vehicle-to-grid connectivity tech5 nology; 

6 (B) the benchmarking and assessment of 

7 open software systems using nationally estab8 lished evaluation criteria; and 

9 (C) new technologies in electricity storage 

10 or electric drive components for vehicles. 

11 (3) REPORT.—Not later than 4 years after the 

12 date of enactment of this Act, the Secretary shall 

13 submit to Congress a report describing the status of 

14 the program described in paragraph (1). 

15 (b) SECONDARY USE APPLICATIONS PROGRAM.— 

16 (1) IN GENERAL.—The Secretary, in consulta17 tion with the Committee, shall carry out a research, 

18 development, and demonstration program that builds 

19 upon any work carried out under section 915 of the 

20 Energy Policy Act of 2005 (42 U.S.C. 16195) and— 

21 (A) identifies possible uses of a vehicle bat22 tery after the useful life of the battery in a ve23 hicle has been exhausted; 

24 (B) assesses the potential for markets for 

25 uses described in subparagraph (A) to develop, 


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1 as well as any barriers to the development of 

2 the markets; 

3 (C) identifies the infrastructure, tech4 nology, and equipment needed to manage the 

5 charging activity of the batteries used in sta6 tionary sources; and 

7 (D) identifies the potential uses of a vehi8 cle battery— 

9 (i) with the most promise for market 

10 development; and 

11 (ii) for which market development 

12 would be aided by a demonstration project. 

13 (2) REPORT.—Not later than 2 years after the 

14 date of enactment of this Act, the Secretary shall 

15 submit to the appropriate committees of Congress 

16 an initial report on the findings of the program de17 scribed in paragraph (1), including recommendations 

18 for stationary energy storage and other potential ap19 plications for batteries used in plug-in electric drive 

20 vehicles. 

21 (c) SECONDARY USE DEMONSTRATION PROJECTS.— 

22 (1) IN GENERAL.—Based on the results of the 

23 program described in subsection (b), the Secretary, 

24 in consultation with the Committee, shall develop 


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1 guidelines for projects that demonstrate the sec2 ondary uses of vehicle batteries. 

3 (2) PUBLICATION OF GUIDELINES.—Not later 

4 than 30 months after the date of enactment of this 

5 Act, the Secretary shall— 

6 (A) publish the guidelines described in 

7 paragraph (1); and 

8 (B) solicit applications for funding for 

9 demonstration projects. 

10 (3) GRANT PROGRAM.—Not later than 38 

11 months after the date of enactment of this Act, the 

12 Secretary shall select proposals for grant funding 

13 under this section, based on an assessment of which 

14 proposals are mostly likely to contribute to the devel15 opment of a secondary market for batteries. 

16 (d) MATERIALS RECYCLING STUDY.— 

17 (1) IN GENERAL.—The Secretary, in consulta18 tion with the Committee, shall carry out a study on 

19 the recycling of materials from plug-in electric drive 

20 vehicles and the batteries used in plug-in electric 

21 drive vehicles. 

22 (2) REPORT.—Not later than 2 years after the 

23 date of enactment of this Act, the Secretary shall 

24 submit to the appropriate committees of Congress a 


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1 report on the findings of the study described in 

2 paragraph (1). 

3 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $1,535,000,000, including— 

6 (1) $1,500,000,000 for use in conducting the 

7 program described in subsection (a) for fiscal years 

8 2011 through 2020; 

9 (2) $5,000,000 for use in conducting the pro10 gram described in subsection (b) for fiscal years 

11 2011 through 2016; 

12 (3) $25,000,000 for use in providing grants de13 scribed in subsection (c) for fiscal years 2011 

14 through 2020; and 

15 (4) $5,000,000 for use in conducting the study 

16 described in subsection (d) for fiscal years 2011 

17 through 2013. 

18 SEC. 132. ADVANCED BATTERIES FOR TOMORROW PRIZE. 

19 (a) IN GENERAL.—Not later than 1 year after the 

20 date of enactment of this Act, as part of the program de21 scribed in section 1008 of the Energy Policy Act of 2005 

22 (42 U.S.C. 16396), the Secretary shall establish the Ad23 vanced Batteries for Tomorrow Prize to competitively 

24 award cash prizes in accordance with this section to adVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 vance the research, development, demonstration, and com2 mercial application of a 500-mile vehicle battery. 

3 (b) BATTERY SPECIFICATIONS.— 

4 (1) IN GENERAL.—To be eligible for the Prize, 

5 a battery submitted by an entrant shall be— 

6 (A) able to power a plug-in electric drive 

7 vehicle authorized to travel on the United 

8 States Federal-aid system of highways for at 

9 least 500 miles before recharging; 

10 (B) of a size that would not be cost-prohib11 itive or create space constraints, if mass-pro12 duced; and 

13 (C) cost-effective (measured in cost per kil14 owatt hour), if mass-produced. 

15 (2) ADDITIONAL REQUIREMENTS.—The Sec16 retary, in consultation with the Committee, shall es17 tablish any additional battery specifications that the 

18 Secretary and the Committee determine to be nec19 essary. 

20 (c) PRIVATE FUNDS.— 

21 (1) IN GENERAL.—Subject to paragraph (2) 

22 and notwithstanding section 3302 of title 31, United 

23 States Code, the Secretary may accept, retain, and 

24 use funds contributed by any person, government 


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1 entity, or organization for purposes of carrying out 

2 this subsection— 

3 (A) without further appropriation; and 

4 (B) without fiscal year limitation. 

5 (2) RESTRICTION ON PARTICIPATION.—An enti6 ty providing private funds for the Prize may not 

7 participate in the competition for the Prize. 

8 (d) TECHNICAL REVIEW.—The Secretary, in con9 sultation with the Committee, shall establish a technical 

10 review committee composed of non-Federal officers to re11 view data submitted by Prize entrants under this section 

12 and determine whether the data meets the prize specifica13 tions described in subsection (b). 

14 (e) THIRD-PARTY ADMINISTRATION.—The Secretary 

15 may select, on a competitive basis, a third party to admin16 ister awards provided under this section. 

17 (f) ELIGIBILITY.—To be eligible for an award under 

18 this section— 

19 (1) in the case of a private entity, the entity 

20 shall be incorporated in and maintain a primary 

21 place of business in the United States; and 

22 (2) in the case of an individual (whether par23 ticipating as a single individual or in a group), the 

24 individual shall be a citizen or lawful permanent 

25 resident of the United States. 


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1 (g) AWARD AMOUNTS.— 

2 (1) IN GENERAL.—Subject to the availability of 

3 funds to carry out this section, the amount of the 

4 Prize shall be $10,000,000. 

5 (2) BREAKTHROUGH ACHIEVEMENT AWARDS.— 

6 In addition to the award described in paragraph (1), 

7 the Secretary, in consultation with the technical re8 view committee established under subsection (d), 

9 may award cash prizes, in amounts determined by 

10 the Secretary, in recognition of breakthrough 

11 achievements in research, development, demonstra12 tion, and commercial application of— 

13 (A) activities described in subsection (b); 

14 or 

15 (B) advances in battery durability, energy 

16 density, and power density. 

17 (h) 500-MILE BATTERY AWARD FUND.— 

18 (1) ESTABLISHMENT.—There is established in 

19 the Treasury of the United States a fund to be 

20 known as the ‘‘500-mile Battery Fund’’ (referred to 

21 in this section as the ‘‘Fund’’), to be administered 

22 by the Secretary, to be available without fiscal year 

23 limitation and subject to appropriation, to award 

24 amounts under this section. 


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1 (2) TRANSFERS TO FUND.—The Fund shall 

2 consist of— 

3 (A) such amounts as are appropriated to 

4 the Fund under subsection (i); and 

5 (B) such amounts as are described in sub6 section (c) and that are provided for the Fund. 

7 (3) PROHIBITION.—Amounts in the Fund may 

8 not be made available for any purpose other than a 

9 purposes described in subsection (a). 

10 (4) ANNUAL REPORTS.— 

11 (A) IN GENERAL.—Not later than 60 days 

12 after the end of each fiscal year beginning with 

13 fiscal year 2012, the Secretary shall submit a 

14 report on the operation of the Fund during the 

15 fiscal year to— 

16 (i) the Committees on Appropriations 

17 of the House of Representatives and of the 

18 Senate; 

19 (ii) the Committee on Energy and 

20 Natural Resources of the Senate; and 

21 (iii) the Committee on Energy and 

22 Commerce of the House of Representa23 tives. 


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1 (B) CONTENTS.—Each report shall in2 clude, for the fiscal year covered by the report, 

3 the following: 

4 (i) A statement of the amounts depos5 ited into the Fund. 

6 (ii) A description of the expenditures 

7 made from the Fund for the fiscal year, in8 cluding the purpose of the expenditures. 

9 (iii) Recommendations for additional 

10 authorities to fulfill the purpose of the 

11 Fund. 

12 (iv) A statement of the balance re13 maining in the Fund at the end of the fis14 cal year. 

15 (5) SEPARATE APPROPRIATIONS ACCOUNT.— 

16 Section 1105(a) of title 31, United States Code, is 

17 amended— 

18 (A) by redesignating the second paragraph 

19 (37) (relating to lists of plans and reports) as 

20 paragraph (39); and 

21 (B) by adding at the end the following: 

22 ‘‘(40) a separate statement for the 500-mile 

23 Battery Fund established under section 132(h) of 

24 the Fulfilling U.S. Energy Leadership Act of 2011, 

25 which shall include the estimated amount of deposits 


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1 into the Fund, obligations, and outlays from the 

2 Fund.’’. 

3 (i) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated— 

5 (1) $10,000,000 to carry out subsection (g)(1); 

6 and 

7 (2) $1,000,000 to carry out subsection (g)(2). 

8 SEC. 133. STUDY ON THE SUPPLY OF RAW MATERIALS. 

9 (a) IN GENERAL.—The Secretary of the Interior, in 

10 consultation with the Secretary and the Task Force, shall 

11 conduct a study that— 

12 (1) identifies the raw materials needed for the 

13 manufacture of plug-in electric drive vehicles, bat14 teries, and other components for plug-in electric 

15 drive vehicles, and for the infrastructure needed to 

16 support plug-in electric drive vehicles; 

17 (2) describes the primary or original sources 

18 and known reserves and resources of those raw ma19 terials; 

20 (3) assesses, in consultation with the National 

21 Academy of Sciences, the degree of risk to the man22 ufacture, maintenance, deployment, and use of plug23 in electric drive vehicles associated with the supply 

24 of those raw materials; and 


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1 (4) identifies pathways to securing reliable and 

2 resilient supplies of those raw materials. 

3 (b) REPORT.—Not later than 3 years after the date 

4 of enactment of this Act, the Secretary of the Interior 

5 shall submit to Congress a report that describes the re6 sults of the study. 

7 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

8 authorized to be appropriated to carry out this section 

9 $1,500,000. 

10 SEC. 134. STUDY ON THE COLLECTION AND PRESERVATION 

11 OF DATA COLLECTED FROM PLUG-IN ELEC12 TRIC DRIVE VEHICLES. 

13 (a) IN GENERAL.—Not later than 180 days after the 

14 date of enactment of this Act, the Secretary, in consulta15 tion with the Committee, shall enter into an agreement 

16 with the National Academy of Sciences under which the 

17 Academy shall conduct a study that— 

18 (1) identifies— 

19 (A) the data that may be collected from 

20 plug-in electric drive vehicles, including data on 

21 the location, charging patterns, and usage of 

22 plug-in electric drive vehicles; 

23 (B) the scientific, economic, commercial, 

24 security, and historic potential of the data de25 scribed in subparagraph (A); and 


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1 (C) any laws or regulations that relate to 

2 the data described in subparagraph (A); and 

3 (2) analyzes and provides recommendations on 

4 matters that include procedures, technologies, and 

5 rules relating to the collection, storage, and preser6 vation of the data described in paragraph (1)(A). 

7 (b) REPORT.—Not later than 15 months after the 

8 date of an agreement between the Secretary and the Acad9 emy under subsection (a), the National Academy of 

10 Sciences shall submit to the appropriate committees of 

11 Congress a report that describes the results of the study 

12 under subsection (a). 

13 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to carry out this section 

15 $1,000,000. 

16 PART III—MISCELLANEOUS 

17 SEC. 141. UTILITY PLANNING FOR PLUG-IN ELECTRIC 

18 DRIVE VEHICLES. 

19 (a) IN GENERAL.—The Public Utility Regulatory 

20 Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amend21 ed— 

22 (1) in section 111(d) (16 U.S.C. 2621(d)), by 

23 adding at the end the following: 

24 ‘‘(20) PLUG-IN ELECTRIC DRIVE VEHICLE

25 PLANNING.— 


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1 ‘‘(A) UTILITY PLAN FOR PLUG-IN ELEC2 TRIC DRIVE VEHICLES.— 

3 ‘‘(i) IN GENERAL.—Not later than 2 

4 years after the date of enactment of this 

5 paragraph, each electric utility shall de6 velop a plan to support the use of plug-in 

7 electric drive vehicles, including medium8 and heavy-duty hybrid electric vehicles in 

9 the service area of the electric utility. 

10 ‘‘(ii) REQUIREMENTS.—A plan under 

11 clause (i) shall investigate— 

12 ‘‘(I) various levels of potential 

13 penetration of plug-in electric drive 

14 vehicles in the utility service area; 

15 ‘‘(II) the potential impacts that 

16 the various levels of penetration and 

17 charging scenarios (including charging 

18 rates and daily hours of charging) 

19 would have on generation, distribution 

20 infrastructure, and the operation of 

21 the transmission grid; and 

22 ‘‘(III) the role of third parties in 

23 providing reliable and economical 

24 charging services. 

25 ‘‘(iii) WAIVER.— 


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1 ‘‘(I) IN GENERAL.—An electric 

2 utility that determines that the elec3 tric utility will not be impacted by 

4 plug-in electric drive vehicles during 

5 the 5-year period beginning on the 

6 date of enactment of this paragraph 

7 may petition the Secretary to waive 

8 clause (i) for 5 years. 

9 ‘‘(II) APPROVAL.—Approval of a 

10 waiver under subclause (I) shall be in 

11 the sole discretion of the Secretary. 

12 ‘‘(iv) UPDATES.— 

13 ‘‘(I) IN GENERAL.—Each electric 

14 utility shall update the plan of the 

15 electric utility every 5 years. 

16 ‘‘(II) RESUBMISSION OF WAIV17 ER.—An electric utility that received a 

18 waiver under clause (iii) and wants 

19 the waiver to continue after the expi20 ration of the waiver shall be required 

21 to resubmit the waiver. 

22 ‘‘(v) EXEMPTION.—If the Secretary 

23 determines that a plan required by a State 

24 regulatory authority meets the require25 ments of this paragraph, the Secretary 


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1 may accept that plan and exempt the elec2 tric utility submitting the plan from the re3 quirements of clause (i). 

4 ‘‘(B) SUPPORT REQUIREMENTS.—Each 

5 State regulatory authority (in the case of each 

6 electric utility for which the authority has rate7 making authority) and each municipal and co8 operative utility shall— 

9 ‘‘(i) participate in any local plan for 

10 the deployment of recharging infrastruc11 ture in communities located in the foot12 print of the authority or utility; 

13 ‘‘(ii) require that charging infrastruc14 ture deployed is interoperable with prod15 ucts of all auto manufacturers to the max16 imum extent practicable; and 

17 ‘‘(iii) consider adopting minimum re18 quirements for deployment of electrical 

19 charging infrastructure and other appro20 priate requirements necessary to support 

21 the use of plug-in electric drive vehicles. 

22 ‘‘(C) COST RECOVERY.—Each State regu23 latory authority (in the case of each electric 

24 utility for which the authority has ratemaking 

25 authority) and each municipal and cooperative 


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1 utility may consider whether, and to what ex2 tent, to allow cost recovery for plans and imple3 mentation of plans. 

4 ‘‘(D) DETERMINATION.—Not later than 3 

5 years after the date of enactment of this para6 graph, each State regulatory authority (with re7 spect to each electric utility for which the au8 thority has ratemaking authority), and each 

9 municipal and cooperative electric utility, shall 

10 complete the consideration, and shall make the 

11 determination, referred to in subsection (a) with 

12 respect to the standard established by this 

13 paragraph.’’; 

14 (2) in section 112(c) (16 U.S.C. 2622(c))— 

15 (A) in the first sentence, by striking ‘‘Each 

16 State’’ and inserting the following: 

17 ‘‘(1) IN GENERAL.—Each State’’; 

18 (B) in the second sentence, by striking ‘‘In 

19 the case’’ and inserting the following: 

20 ‘‘(2) SPECIFIC STANDARDS.— 

21 ‘‘(A) NET METERING AND FOSSIL FUEL

22 GENERATION EFFICIENCY.—In the case’’; 

23 (C) in the third sentence, by striking ‘‘In 

24 the case’’ and inserting the following: 


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1 ‘‘(B) TIME-BASED METERING AND COMMU2 NICATIONS.—In the case’’; 

3 (D) in the fourth sentence— 

4 (i) by striking ‘‘In the case’’ and in5 serting the following: 

6 ‘‘(C) INTERCONNECTION.—In the case’’; 

7 and 

8 (ii) by striking ‘‘paragraph (15)’’ and 

9 inserting ‘‘paragraph (15) of section 

10 111(d)’’; 

11 (E) in the fifth sentence, by striking ‘‘In 

12 the case’’ and inserting the following: 

13 ‘‘(D) INTEGRATED RESOURCE PLANNING, 

14 RATE DESIGN MODIFICATIONS, SMART GRID IN15 VESTMENTS, SMART GRID INFORMATION.—In 

16 the case’’; and 

17 (F) by adding at the end the following: 

18 ‘‘(E) PLUG-IN ELECTRIC DRIVE VEHICLE

19 PLANNING.—In the case of the standards estab20 lished by paragraph (20) of section 111(d), the 

21 reference contained in this subsection to the 

22 date of enactment of this Act shall be deemed 

23 to be a reference to the date of enactment of 

24 that paragraph.’’; and 


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1 (3) in section 112(d) (16 U.S.C. 2622(d)), in 

2 the matter preceding paragraph (1), by striking 

3 ‘‘(19)’’ and inserting ‘‘(20)’’. 

4 (b) REPORT.— 

5 (1) IN GENERAL.—The Secretary, in consulta6 tion with the Technical Advisory Committee, shall 

7 convene a group of utility stakeholders, charging in8 frastructure providers, third party aggregators, and 

9 others, as appropriate, to discuss and determine the 

10 potential models for the technically and logistically 

11 challenging issues involved in using electricity as a 

12 fuel for vehicles, including— 

13 (A) accommodation for billing for charging 

14 a plug-in electric drive vehicle, both at home 

15 and at publicly available charging infrastruc16 ture; 

17 (B) plans for anticipating vehicle to grid 

18 applications that will allow batteries in cars as 

19 well as banks of batteries to be used for grid 

20 storage, ancillary services provision, and backup 

21 power; 

22 (C) integration of plug-in electric drive ve23 hicles with smart grid, including protocols and 

24 standards, necessary equipment, and informa25 tion technology systems; and 


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1 (D) any other barriers to installing suffi2 cient and appropriate charging infrastructure. 

3 (2) REPORT.—Not later than 2 years after the 

4 date of enactment of this Act and biennially there5 after, the Secretary shall submit to the appropriate 

6 committees of Congress a report that includes— 

7 (A) the issues and model solutions de8 scribed in paragraph (1); and 

9 (B) any other issues that the Task Force 

10 and Secretary determine to be appropriate. 

11 SEC. 142. LOAN GUARANTEES. 

12 (a) LOAN GUARANTEES FOR ADVANCED BATTERY

13 PURCHASES FOR USE IN STATIONARY APPLICATIONS.— 

14 Subtitle B of title I of the Energy Independence and Secu15 rity Act of 2007 (42 U.S.C. 17011 et seq.) is amended 

16 by adding at the end the following: 

17 ‘‘SEC. 137. LOAN GUARANTEES FOR ADVANCED BATTERY 

18 PURCHASES. 

19 ‘‘(a) DEFINITIONS.—In this section: 

20 ‘‘(1) QUALIFIED AUTOMOTIVE BATTERY.—The 

21 term ‘qualified automotive battery’ means a battery 

22 that— 

23 ‘‘(A) has at least 4 kilowatt hours of bat24 tery capacity; and 


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1 ‘‘(B) is designed for use in qualified plug2 in electric drive motor vehicles but is purchased 

3 for nonautomotive applications. 

4 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en5 tity’ means— 

6 ‘‘(A) an original equipment manufacturer; 

7 ‘‘(B) an electric utility; 

8 ‘‘(C) any provider of range extension infra9 structure; or 

10 ‘‘(D) any other qualified entity, as deter11 mined by the Secretary. 

12 ‘‘(b) LOAN GUARANTEES.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall guar14 antee loans made to eligible entities for the aggre15 gate purchase of not less than 200 qualified auto16 motive batteries in a calendar year that have a total 

17 minimum power rating of 1 megawatt and use ad18 vanced battery technology. 

19 ‘‘(2) RESTRICTION.—As a condition of receiving 

20 a loan guarantee under this section, an entity pur21 chasing qualified automotive batteries with loan 

22 funds guaranteed under this section shall comply 

23 with the provisions of the Buy American Act (41 

24 U.S.C. 10a et seq.). 


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1 ‘‘(c) REGULATIONS.—The Secretary shall promulgate 

2 such regulations as are necessary to carry out this section. 

3 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

4 is authorized to be appropriated to carry out this section 

5 $50,000,000.’’. 

6 (b) LOAN GUARANTEES FOR CHARGING INFRA7 STRUCTURE.—Section 1705(a) of the Energy Policy Act 

8 of 2005 (42 U.S.C. 16516(a)) is amended by adding at 

9 the end the following: 

10 ‘‘(4) Charging infrastructure and networks of 

11 charging infrastructure for plug-in drive electric ve12 hicles, if the charging infrastructure will be oper13 ational prior to December 31, 2016.’’. 

14 SEC. 143. PROHIBITION ON DISPOSING OF ADVANCED BAT15 TERIES IN LANDFILLS. 

16 (a) DEFINITION OF ADVANCED BATTERY.— 

17 (1) IN GENERAL.—In this section, the term 

18 ‘‘advanced battery’’ means a battery that is a sec19 ondary (rechargeable) electrochemical energy storage 

20 device that has enhanced energy capacity. 

21 (2) EXCLUSIONS.—The term ‘‘advanced bat22 tery’’ does not include— 

23 (A) a primary (nonrechargeable) battery; 

24 or 


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1 (B) a lead-acid battery that is used to 

2 start or serve as the principal electrical power 

3 source for a plug-in electric drive vehicle. 

4 (b) REQUIREMENT.—An advanced battery from a 

5 plug-in electric drive vehicle shall be disposed of in accord6 ance with the Solid Waste Disposal Act (42 U.S.C. 6901 

7 et seq.) (commonly known as the ‘‘Resource Conservation 

8 and Recovery Act of 1976’’). 

9 SEC. 144. PLUG-IN ELECTRIC DRIVE VEHICLE TECHNICAL 

10 ADVISORY COMMITTEE. 

11 (a) IN GENERAL.—There is established the Plug-in 

12 Electric Drive Vehicle Technical Advisory Committee to 

13 advise the Secretary on the programs and activities under 

14 this subtitle. 

15 (b) MISSION.—The mission of the Committee shall 

16 be to advise the Secretary on technical matters, includ17 ing— 

18 (1) the priorities for research and development; 

19 (2) means of accelerating the deployment of 

20 safe, economical, and efficient plug-in electric drive 

21 vehicles for mass market adoption; 

22 (3) the development and deployment of charg23 ing infrastructure; 


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1 (4) the development of uniform codes, stand2 ards, and safety protocols for plug-in electric drive 

3 vehicles and charging infrastructure; and 

4 (5) reporting on the competitiveness of the 

5 United States in plug-in electric drive vehicle and in6 frastructure research, manufacturing, and deploy7 ment. 

8 (c) MEMBERSHIP.— 

9 (1) MEMBERS.— 

10 (A) IN GENERAL.—The Committee shall 

11 consist of not less than 12, but not more than 

12 25, members. 

13 (B) REPRESENTATION.—The Secretary 

14 shall appoint the members to Committee from 

15 among representatives of— 

16 (i) domestic industry; 

17 (ii) institutions of higher education; 

18 (iii) professional societies; 

19 (iv) Federal, State, and local govern20 mental agencies (including the National 

21 Laboratories); and 

22 (v) financial, transportation, labor, en23 vironmental, electric utility, or other ap24 propriate organizations or individuals with 

25 direct experience in deploying and marVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 keting plug-in electric drive vehicles, as the 

2 Secretary determines to be necessary. 

3 (2) TERMS.— 

4 (A) IN GENERAL.—The term of a Com5 mittee member shall not be longer than 3 years. 

6 (B) STAGGERED TERMS.—The Secretary 

7 may appoint members to the Committee for dif8 fering term lengths to ensure continuity in the 

9 functioning of the Committee. 

10 (C) REAPPOINTMENTS.—A member of the 

11 Committee whose term is expiring may be re12 appointed. 

13 (3) CHAIRPERSON.—The Committee shall have 

14 a chairperson, who shall be elected by and from the 

15 members. 

16 (d) REVIEW.—The Committee shall review and make 

17 recommendations to the Secretary on the implementation 

18 of programs and activities under this subtitle. 

19 (e) RESPONSE.— 

20 (1) IN GENERAL.—The Secretary shall consider 

21 and may adopt any recommendation of the Com22 mittee under subsection (c). 

23 (2) BIENNIAL REPORT.— 

24 (A) IN GENERAL.—Not later than 2 years 

25 after the date of enactment of this Act and 


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1 every 2 years thereafter, the Secretary shall 

2 submit to the appropriate committees of Con3 gress a report describing any new recommenda4 tions of the Committee. 

5 (B) CONTENTS.—The report shall in6 clude— 

7 (i) a description of the manner in 

8 which the Secretary has implemented or 

9 plans to implement the recommendations 

10 of the Committee; or 

11 (ii) an explanation of the reason that 

12 a recommendation of the Committee has 

13 not been implemented. 

14 (C) TIMING.—The report described in this 

15 paragraph shall be submitted by the Secretary 

16 at the same time the President submits the 

17 budget proposal for the Department of Energy 

18 to Congress. 

19 (f) COORDINATION.—The Committee shall— 

20 (1) hold joint annual meetings with the Hydro21 gen and Fuel Cell Technical Advisory Committee es22 tablished by section 807 of the Energy Policy Act of 

23 2005 (42 U.S.C. 16156) to help coordinate the work 

24 and recommendations of the Committees; and 


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1 (2) coordinate efforts, to the maximum extent 

2 practicable, with all existing independent, depart3 mental, and other advisory Committees, as deter4 mined to be appropriate by the Secretary. 

5 (g) SUPPORT.—The Secretary shall provide to the 

6 Committee the resources necessary to carry out this sec7 tion, as determined to be necessary by the Secretary. 

8 SEC. 145. PLUG-IN ELECTRIC DRIVE VEHICLE INTER9 AGENCY TASK FORCE. 

10 (a) IN GENERAL.—Not later than 120 days after the 

11 date of enactment of this Act, the President shall establish 

12 the Plug-in Electric Drive Vehicle Interagency Task 

13 Force, to be chaired by the Secretary and which shall con14 sist of at least 1 representative from each of— 

15 (1) the Office of Science and Technology Policy; 

16 (2) the Council on Environmental Quality; 

17 (3) the Department of Energy; 

18 (4) the Department of Transportation; 

19 (5) the Department of Defense; 

20 (6) the Department of Commerce (including the 

21 National Institute of Standards and Technology); 

22 (7) the Environmental Protection Agency; 

23 (8) the General Services Administration; and 

24 (9) any other Federal agencies that the Presi25 dent determines to be appropriate. 


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1 (b) MISSION.—The mission of the Task Force shall 

2 be to ensure awareness, coordination, and integration of 

3 the activities of the Federal Government relating to plug4 in electric drive vehicles, including— 

5 (1) plug-in electric drive vehicle research and 

6 development (including necessary components); 

7 (2) the development of widely accepted smart8 grid standards and protocols for charging infrastruc9 ture; 

10 (3) the relationship of plug-in electric drive ve11 hicle charging practices to electric utility regulation; 

12 (4) the relationship of plug-in electric drive ve13 hicle deployment to system reliability and security; 

14 (5) the general deployment of plug-in electric 

15 drive vehicles in the Federal, State, and local gov16 ernments and for private use; 

17 (6) the development of uniform codes, stand18 ards, and safety protocols for plug-in electric drive 

19 vehicles and charging infrastructure; and 

20 (7) the alignment of international plug-in elec21 tric drive vehicle standards. 

22 (c) ACTIVITIES.— 

23 (1) IN GENERAL.—In carrying out this section, 

24 the Task Force may— 

25 (A) organize workshops and conferences; 


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1 (B) issue publications; and 

2 (C) create databases. 

3 (2) MANDATORY ACTIVITIES.—In carrying out 

4 this section, the Task Force shall— 

5 (A) foster the exchange of generic, non6 proprietary information and technology among 

7 industry, academia, and the Federal Govern8 ment; 

9 (B) integrate and disseminate technical 

10 and other information made available as a re11 sult of the programs and activities under this 

12 subtitle; 

13 (C) support education about plug-in elec14 tric drive vehicles; 

15 (D) monitor, analyze, and report on the ef16 fects of plug-in electric drive vehicle deployment 

17 on the environment and public health, including 

18 air emissions from vehicles and electricity gen19 erating units; and 

20 (E) review and report on— 

21 (i) opportunities to use Federal pro22 grams (including laws, regulations, and 

23 guidelines) to promote the deployment of 

24 plug-in electric drive vehicles; and 


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1 (ii) any barriers to the deployment of 

2 plug-in electric drive vehicles, including 

3 barriers that are attributable to Federal 

4 programs (including laws, regulations, and 

5 guidelines). 

6 (d) AGENCY COOPERATION.—A Federal agency— 

7 (1) shall cooperate with the Task Force; and 

8 (2) provide, on request of the Task Force, ap9 propriate assistance in carrying out this section, in 

10 accordance with applicable Federal laws (including 

11 regulations). 

12 Subtitle C—Tax Provisions 

13 SEC. 151. CONSUMER TAX CREDITS FOR ADVANCED VEHI14 CLES. 

15 (a) PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE

16 CREDIT.—Section 30D of the Internal Revenue Code of 

17 1986 is amended to read as follows: 

18 ‘‘SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 

19 MOTOR VEHICLES. 

20 ‘‘(a) ALLOWANCE OF CREDIT.— 

21 ‘‘(1) IN GENERAL.—There shall be allowed as a 

22 credit against the tax imposed by this chapter for 

23 the taxable year an amount equal to the applicable 

24 amount with respect to each new qualified plug-in 


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1 electric drive motor vehicle placed in service by the 

2 taxpayer during the taxable year. 

3 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

4 paragraph (1), the applicable amount is sum of— 

5 ‘‘(A) $2,500, plus 

6 ‘‘(B) $400 for each kilowatt hour of trac7 tion battery capacity in excess of 6 kilowatt 

8 hours. 

9 ‘‘(b) LIMITATIONS.— 

10 ‘‘(1) LIMITATION BASED ON WEIGHT.—The 

11 amount of the credit allowed under subsection (a) by 

12 reason of subsection (a)(2) shall not exceed— 

13 ‘‘(A) $7,500, in the case of any new quali14 fied plug-in electric drive motor vehicle with a 

15 gross vehicle weight rating of not more than 

16 10,000 pounds, 

17 ‘‘(B) $10,000, in the case of any new 

18 qualified plug-in electric drive motor vehicle 

19 with a gross vehicle weight rating of more than 

20 10,000 pounds but not more than 14,000 

21 pounds, 

22 ‘‘(C) $12,500, in the case of any new 

23 qualified plug-in electric drive motor vehicle 

24 with a gross vehicle weight rating of more than 


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1 14,000 pounds but not more than 26,000 

2 pounds, and 

3 ‘‘(D) $15,000, in the case of any new 

4 qualified plug-in electric drive motor vehicle 

5 with a gross vehicle weight rating of more than 

6 26,000 pounds. 

7 ‘‘(2) LIMITATION ON NUMBER OF PASSENGER

8 VEHICLES AND LIGHT TRUCKS ELIGIBLE FOR CRED9 IT.— 

10 ‘‘(A) IN GENERAL.—In the case of a new 

11 qualified plug-in electric drive motor vehicle 

12 sold during the phaseout period, only the appli13 cable percentage of the credit otherwise allow14 able under subsection (a) shall be allowed. 

15 ‘‘(B) PHASEOUT PERIOD.—For purposes 

16 of this subsection, the phaseout period is the 

17 period beginning with the second calendar quar18 ter following the calendar quarter which in19 cludes the first date on which the total number 

20 of such new qualified plug-in electric drive 

21 motor vehicles sold for use in the United States 

22 after December 31, 2009, is at least 200,000. 

23 ‘‘(C) APPLICABLE PERCENTAGE.—For 

24 purposes of subparagraph (A), the applicable 

25 percentage is— 


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1 ‘‘(i) 50 percent for the first 2 cal2 endar quarters of the phaseout period, 

3 ‘‘(ii) 25 percent for the 3d and 4th 

4 calendar quarters of the phaseout period, 

5 and 

6 ‘‘(iii) 0 percent for each calendar 

7 quarter thereafter. 

8 ‘‘(D) CONTROLLED GROUPS.—Rules simi9 lar to the rules of section 30B(f)(4) shall apply 

10 for purposes of this subsection. 

11 ‘‘(c) NEW QUALIFIED PLUG-IN ELECTRIC DRIVE

12 MOTOR VEHICLE.—For purposes of this section, the term 

13 ‘new qualified plug-in electric drive motor vehicle’ means 

14 a motor vehicle— 

15 ‘‘(1) which draws propulsion primarily using a 

16 traction battery with at least 6 kilowatt hours of ca17 pacity, 

18 ‘‘(2) which uses an offboard source of energy to 

19 recharge such battery, 

20 ‘‘(3) which, in the case of a passenger vehicle 

21 or light truck which has a gross vehicle weight rat22 ing of not more than 8,500 pounds, has received a 

23 certificate of conformity under the Clean Air Act 

24 and meets or exceeds the equivalent qualifying Cali25 fornia low emission vehicle standard under section 


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1 243(e)(2) of the Clean Air Act for that make and 

2 model year, and 

3 ‘‘(A) in the case of a vehicle having a gross 

4 vehicle weight rating of 6,000 pounds or less, 

5 the Bin 5 Tier II emission standard established 

6 in regulations prescribed by the Administrator 

7 of the Environmental Protection Agency under 

8 section 202(i) of the Clean Air Act for that 

9 make and model year vehicle, and 

10 ‘‘(B) in the case of a vehicle having a gross 

11 vehicle weight rating of more than 6,000 

12 pounds but not more than 8,500 pounds, the 

13 Bin 8 Tier II emission standard which is so es14 tablished, 

15 ‘‘(4) the original use of which commences with 

16 the taxpayer, 

17 ‘‘(5) which is acquired for use or lease by the 

18 taxpayer and not for resale, and 

19 ‘‘(6) which is made by a manufacturer. 

20 ‘‘(d) APPLICATION WITH OTHER CREDITS.— 

21 ‘‘(1) BUSINESS CREDIT TREATED AS PART OF

22 GENERAL BUSINESS CREDIT.—So much of the credit 

23 which would be allowed under subsection (a) for any 

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1 acter subject to an allowance for depreciation shall 

2 be treated as a credit listed in section 38(b) for such 

3 taxable year (and not allowed under subsection (a)). 

4 ‘‘(2) REFUNDABLE PERSONAL CREDIT.— 

5 ‘‘(A) IN GENERAL.—For purposes of this 

6 title, the credit allowed under subsection (a) for 

7 any taxable year (determined after application 

8 of paragraph (1)) shall be treated as a credit 

9 allowable under subpart C for such taxable year 

10 (and not allowed under subsection (a)). 

11 ‘‘(B) REFUNDABLE CREDIT MAY BE

12 TRANSFERRED.— 

13 ‘‘(i) IN GENERAL.—A taxpayer may, 

14 in connection with the purchase of a new 

15 qualified fuel-efficient motor vehicle, trans16 fer any refundable credit described in sub17 paragraph (A) to any person who is in the 

18 trade or business of selling new qualified 

19 fuel-efficient motor vehicles and who sold 

20 such vehicle to the taxpayer, but only if 

21 such person clearly discloses to such tax22 payer, through the use of a window sticker 

23 attached to the new qualified fuel-efficient 

24 vehicle— 


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1 ‘‘(I) the amount of the refund2 able credit described in subparagraph 

3 (A) with respect to such vehicle, and 

4 ‘‘(II) a notification that the tax5 payer will not be eligible for any cred6 it under section 30 or 30B with re7 spect to such vehicle unless the tax8 payer elects not to have this section 

9 apply with respect to such vehicle. 

10 ‘‘(ii) CERTIFICATION.—A transferee 

11 of a refundable credit described in sub12 paragraph (A) may not claim such credit 

13 unless such claim is accompanied by a cer14 tification to the Secretary that the trans15 feree reduced the price the taxpayer paid 

16 for the new qualified fuel-efficient motor 

17 vehicle by the entire amount of such re18 fundable credit. 

19 ‘‘(iii) CONSENT REQUIRED FOR REV20 OCATION.—Any transfer under clause (i) 

21 may be revoked only with the consent of 

22 the Secretary. 

23 ‘‘(iv) REGULATIONS.—The Secretary 

24 may prescribe such regulations as nec25 essary to ensure that any refundable credit 


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1 described in clause (i) is claimed once and 

2 not retransferred by a transferee. 

3 ‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 

4 For purposes of this section— 

5 ‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi6 cle’ has the meaning given such term by section 

7 30(c)(2). 

8 ‘‘(2) OTHER TERMS.—The terms ‘passenger 

9 automobile’, ‘light truck’, and ‘manufacturer’ have 

10 the meanings given such terms in regulations pre11 scribed by the Administrator of the Environmental 

12 Protection Agency for purposes of the administra13 tion of title II of the Clean Air Act (42 U.S.C. 7521 

14 et seq.). 

15 ‘‘(3) TRACTION BATTERY CAPACITY.—Traction 

16 battery capacity shall be measured in kilowatt hours 

17 from a 100 percent state of charge to a zero percent 

18 state of charge. 

19 ‘‘(4) REDUCTION IN BASIS.—For purposes of 

20 this subtitle, the basis of any property for which a 

21 credit is allowable under subsection (a) shall be re22 duced by the amount of such credit so allowed. 

23 ‘‘(5) NO DOUBLE BENEFIT.—The amount of 

24 any deduction or other credit allowable under this 

25 chapter for a new qualified plug-in electric drive 


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1 motor vehicle shall be reduced by the amount of 

2 credit allowed under subsection (a) for such vehicle 

3 for the taxable year. 

4 ‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTI5 TY.—In the case of a vehicle the use of which is de6 scribed in paragraph (3) or (4) of section 50(b) and 

7 which is not subject to a lease, the person who sold 

8 such vehicle to the person or entity using such vehi9 cle shall be treated as the taxpayer that placed such 

10 vehicle in service, but only if such person clearly dis11 closes to such person or entity in a document the 

12 amount of any credit allowable under subsection (a) 

13 with respect to such vehicle (determined without re14 gard to subsection (b)(2)). 

15 ‘‘(7) PROPERTY USED OUTSIDE UNITED

16 STATES, ETC., NOT QUALIFIED.—No credit shall be 

17 allowable under subsection (a) with respect to any 

18 property referred to in section 50(b)(1) or with re19 spect to the portion of the cost of any property 

20 taken into account under section 179. 

21 ‘‘(8) RECAPTURE.—The Secretary shall, by reg22 ulations, provide for recapturing the benefit of any 

23 credit allowable under subsection (a) with respect to 

24 any property which ceases to be property eligible for 

25 such credit (including recapture in the case of a 


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1 lease period of less than the economic life of a vehi2 cle). 

3 ‘‘(9) ELECTION TO NOT TAKE CREDIT.—No 

4 credit shall be allowed under subsection (a) for any 

5 vehicle if the taxpayer elects not to have this section 

6 apply to such vehicle. 

7 ‘‘(10) INTERACTION WITH AIR QUALITY AND

8 MOTOR VEHICLE SAFETY STANDARDS.—Unless oth9 erwise provided in this section, a motor vehicle shall 

10 not be considered eligible for a credit under this sec11 tion unless such vehicle is in compliance with— 

12 ‘‘(A) the applicable provisions of the Clean 

13 Air Act for the applicable make and model year 

14 of the vehicle (or applicable air quality provi15 sions of State law in the case of a State which 

16 has adopted such provision under a waiver 

17 under section 209(b) of the Clean Air Act), and 

18 ‘‘(B) the motor vehicle safety provisions of 

19 sections 30101 through 30169 of title 49, 

20 United States Code. 

21 ‘‘(f) REGULATIONS.— 

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), the Secretary shall promulgate such regu24 lations as necessary to carry out the provisions of 

25 this section. 


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1 ‘‘(2) COORDINATION IN PRESCRIPTION OF CER2 TAIN REGULATIONS.—The Secretary of the Treas3 ury, in coordination with the Secretary of Transpor4 tation and the Administrator of the Environmental 

5 Protection Agency, shall prescribe such regulations 

6 as necessary to determine whether a motor vehicle 

7 meets the requirements to be eligible for a credit 

8 under this section. 

9 ‘‘(g) TERMINATION.—This section shall not apply to 

10 property purchased after December 31, 2016.’’. 

11 (b) CONFORMING AMENDMENT.—Section 6501(m) of 

12 such Code is amended by striking ‘‘30D(e)(4)’’ and insert13 ing ‘‘30D(e)(9)’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 December 31, 2011. 

17 SEC. 152. CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES. 

18 (a) IN GENERAL.—Subpart B of part IV of sub19 chapter A of chapter 1 of the Internal Revenue Code of 

20 1986 is amended by adding at the end the following new 

21 section: 

22 ‘‘SEC. 30E. FUEL-EFFICIENT MOTOR VEHICLE CREDIT. 

23 ‘‘(a) ALLOWANCE OF CREDIT.— 

24 ‘‘(1) IN GENERAL.—There shall be allowed as a 

25 credit against the tax imposed by this chapter for 


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1 the taxable year an amount equal to the amount de2 termined under paragraph (2) with respect to any 

3 new fuel-efficient motor vehicle placed in service by 

4 the taxpayer during the taxable year. 

5 ‘‘(2) CREDIT AMOUNT.—The amount deter6 mined under this paragraph shall be— 

7 ‘‘(A) $500, if the new fuel-efficient motor 

8 vehicle achieves a combined fuel economy which 

9 is greater than 35 miles per gallon but not 

10 greater than 40 miles per gallon, 

11 ‘‘(B) $1,000, if the new fuel-efficient 

12 motor vehicle achieves a combined fuel economy 

13 which is greater than 40 miles per gallon but 

14 less than 45 miles per gallon, 

15 ‘‘(C) $1,500, if the new fuel-efficient motor 

16 vehicle achieves a combined fuel economy which 

17 is greater than 45 miles per gallon but less 

18 than 50 miles per gallon, and 

19 ‘‘(D) $2,500, if the new fuel-efficient 

20 motor vehicle achieves a combined fuel economy 

21 which is greater than 50 miles per gallon. 

22 ‘‘(b) NEW FUEL-EFFICIENT MOTOR VEHICLE.—For 

23 purposes of this section, the term ‘new fuel-efficient motor 

24 vehicle’ means any motor vehicle— 


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1 ‘‘(1) which has a gross vehicle weight rating of 

2 not more than 8,500 pounds, 

3 ‘‘(2) which achieves a combined fuel economy of 

4 at least 35 miles per gallon, 

5 ‘‘(3) the original use of which commences with 

6 the taxpayer, 

7 ‘‘(4) which is acquired by the taxpayer for use 

8 or lease, but not for resale, and 

9 ‘‘(5) which is made by a manufacturer. 

10 ‘‘(c) OTHER DEFINITIONS AND SPECIAL RULES.— 

11 For purposes of this section— 

12 ‘‘(1) COMBINED FUEL ECONOMY.—The com13 bined fuel economy with respect to any gasoline14 fueled vehicle shall be measured in a manner which 

15 is substantially similar to the manner combined fuel 

16 economy is measured in accordance with procedures 

17 under part 600 of subchapter Q of chapter I of title 

18 40, Code of Federal Regulations, as in effect on the 

19 date of the enactment of this section. 

20 ‘‘(2) MANUFACTURER.—The term ‘manufac21 turer’ has the meaning given such term under sec22 tion 30B(h). 

23 ‘‘(3) BASIS REDUCTION.—The basis of any 

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1 section (a) shall be reduced by the amount of such 

2 credit. 

3 ‘‘(4) RECAPTURE; PROPERTY USED OUTSIDE

4 THE UNITED STATES; ELECTION NOT TO TAKE

5 CREDIT.—For purposes of this section, rules similar 

6 to the rules of paragraphs (2), (3), and (4) of sec7 tion 30(d) shall apply. 

8 ‘‘(5) DENIAL OF DOUBLE BENEFIT.—No credit 

9 shall be allowed under this section with respect to 

10 any new fuel-efficient motor vehicle if a credit is al11 lowable with respect to such vehicle under section 

12 30B (determined without regard to subsection (f) 

13 thereof) or 30D (determined without regard to sub14 section (b)(2) thereof). 

15 ‘‘(d) APPLICATION WITH OTHER CREDITS.— 

16 ‘‘(1) BUSINESS CREDIT TREATED AS PART OF

17 GENERAL BUSINESS CREDIT.—So much of the credit 

18 which would be allowed under subsection (a) for any 

19 taxable year (determined without regard to this sub20 section) that is attributable to property of a char21 acter subject to an allowance for depreciation shall 

22 be treated as a credit listed in section 38(b) for such 

23 taxable year (and not allowed under subsection (a)). 

24 ‘‘(2) PERSONAL CREDIT.— 


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1 ‘‘(A) IN GENERAL.—For purposes of this 

2 title, the credit allowed under subsection (a) for 

3 any taxable year (determined after application 

4 of paragraph (1)) shall be treated as a credit 

5 allowable under subpart A for such taxable 

6 year. 

7 ‘‘(B) LIMITATION BASED ON AMOUNT OF

8 TAX.—The credit allowed under subsection (a) 

9 (after the application of paragraph (1)) for any 

10 taxable year shall not exceed the excess (if any) 

11 of— 

12 ‘‘(i) the regular tax liability (as de13 fined in section 26(b)) reduced by the sum 

14 of the credits allowable under subpart A 

15 and sections 27, 30, 30B, and 30D, over 

16 ‘‘(ii) the tentative minimum tax for 

17 the taxable year. 

18 ‘‘(e) LIMITATION ON NUMBER OF NEW FUEL-EFFI19 CIENT MOTOR VEHICLES ELIGIBLE FOR CREDIT.— 

20 ‘‘(1) IN GENERAL.—No credit shall be allowed 

21 under subsection (a) with respect to any new fuel22 efficient motor vehicle sold in any calendar quarter 

23 after the calendar quarter following the calendar 

24 quarter which includes the first date on which the 

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1 tured by such manufacturer and sold for use in the 

2 United States after the date of the enactment of this 

3 section is at least 65,000. 

4 ‘‘(2) CONTROLLED GROUPS.—Rules similar to 

5 the rules of section 30B(f)(4) shall apply for pur6 poses of this subsection. 

7 ‘‘(f) TERMINATION.—This section shall not apply to 

8 property placed in service after December 31, 2013.’’. 

9 (b) CONFORMING AMENDMENTS.— 

10 (1) Section 38(b) of the Internal Revenue Code 

11 of 1986 is amended by striking ‘‘plus’’ at the end of 

12 paragraph (35), by striking the period at the end of 

13 paragraph (36) and inserting ‘‘, plus’’, and by add14 ing at the end the following new paragraph: 

15 ‘‘(37) the portion of the new fuel-efficient motor 

16 vehicle credit to which section 30E(d)(1) applies.’’. 

17 (2) Section 55(c)(3) of such Code is amended 

18 by inserting ‘‘30E(d)(2),’’ after ‘‘30C(d)(2),’’. 

19 (3) Section 1016(a) of such Code is amended 

20 by striking ‘‘and’’ at the end of paragraph (36), by 

21 striking the period at the end of paragraph (37) and 

22 inserting ‘‘, and’’, and by adding at the end the fol23 lowing new paragraph: 

24 ‘‘(38) to the extent provided in section 

25 30E(c)(3).’’. 


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1 (4) Section 6501(m) of such Code, as amended 

2 by this Act, is amended by inserting ‘‘30E(c)(4),’’ 

3 after ‘‘30D(e)(9),’’. 

4 (c) CLERICAL AMENDMENT.—The table of sections 

5 for subpart B of part IV of subchapter A of chapter 1 

6 of the Internal Revenue Code of 1986 is amended by add7 ing at the end the following new item: 

‘‘Sec. 30E. Fuel-efficient motor vehicle credit.’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to property placed in service after 

10 the date of the enactment of this Act. 

11 SEC. 153. IDLING REDUCTION TAX CREDIT. 

12 (a) IN GENERAL.—Subpart D of part IV of sub13 chapter A of chapter 1 of the Internal Revenue Code of 

14 1986 is amended by adding at the end the following new 

15 section: 

16 ‘‘SEC. 45S. IDLING REDUCTION CREDIT. 

17 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

18 the idling reduction tax credit determined under this sec19 tion for the taxable year is an amount equal to 25 percent 

20 of the amount paid or incurred for each qualifying idling 

21 reduction device placed in service by the taxpayer during 

22 the taxable year. 

23 ‘‘(b) LIMITATION.—The maximum amount allowed as 

24 a credit under subsection (a) shall not exceed $1,000 per 

25 device. 


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1 ‘‘(c) DEFINITIONS.—For purposes of subsection 

2 (a)— 

3 ‘‘(1) QUALIFYING IDLING REDUCTION DE4 VICE.—The term ‘qualifying idling reduction device’ 

5 means any device or system of devices that— 

6 ‘‘(A) is installed on a heavy-duty diesel7 powered on-highway vehicle, 

8 ‘‘(B) is designed to provide to such vehicle 

9 those services (such as heat, air conditioning, or 

10 electricity) that would otherwise require the op11 eration of the main drive engine while the vehi12 cle is temporarily parked or remains stationary, 

13 ‘‘(C) the original use of which commences 

14 with the taxpayer, 

15 ‘‘(D) is acquired for use by the taxpayer 

16 and not for resale, and 

17 ‘‘(E) is determined by the Administrator of 

18 the Environmental Protection Agency, in con19 sultation with the Secretary of Energy and the 

20 Secretary of Transportation, to reduce idling of 

21 such vehicle at a motor vehicle rest stop or 

22 other location where such vehicles are tempo23 rarily parked or remain stationary. 

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1 ered on-highway vehicle’ means any vehicle, ma2 chine, tractor, trailer, or semi-trailer propelled or 

3 drawn by mechanical power and used upon the high4 ways in the transportation of passengers or prop5 erty, or any combination thereof determined by the 

6 Federal Highway Administration. Such term in7 cludes any diesel fuel hybrid highway vehicle which 

8 has a gross vehicle weight rating of more than 8,500 

9 pounds. 

10 ‘‘(3) LONG-DURATION IDLING.—The term ‘long11 duration idling’ means the operation of a main drive 

12 engine, for a period greater than 15 consecutive 

13 minutes, where the main drive engine is not engaged 

14 in gear. Such term does not apply to routine stop15 pages associated with traffic movement or conges16 tion. 

17 ‘‘(d) NO DOUBLE BENEFIT.—For purposes of this 

18 section— 

19 ‘‘(1) REDUCTION IN BASIS.—If a credit is de20 termined under this section with respect to any 

21 property by reason of expenditures described in sub22 section (a), the basis of such property shall be re23 duced by the amount of the credit so determined. 

24 ‘‘(2) OTHER DEDUCTIONS AND CREDITS.—No 

25 deduction or credit shall be allowed under any other 


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1 provision of this chapter with respect to the amount 

2 of the credit determined under this section. 

3 ‘‘(e) ELECTION NOT TO CLAIM CREDIT.—This sec4 tion shall not apply to a taxpayer for any taxable year 

5 if such taxpayer elects to have this section not apply for 

6 such taxable year.’’. 

7 (b) CREDIT TO BE PART OF GENERAL BUSINESS

8 CREDIT.—Subsection (b) of section 38 of the Internal 

9 Revenue Code of 1986, as amended by this Act, is amend10 ed by striking ‘‘plus’’ at the end of paragraph (36), by 

11 striking the period at the end of paragraph (37) and in12 serting ‘‘, plus’’, and by adding at the end the following 

13 new paragraph: 

14 ‘‘(38) the idling reduction tax credit determined 

15 under section 45S(a).’’. 

16 (c) CONFORMING AMENDMENTS.— 

17 (1) The table of sections for subpart D of part 

18 IV of subchapter A of chapter 1 of the Internal Rev19 enue Code of 1986 is amended by inserting after the 

20 item relating to section 45R the following new item: 

‘‘Sec. 45S. Idling reduction credit.’’. 

21 (2) Section 1016(a) of such Code, as amended 

22 by this Act, is amended by striking ‘‘and’’ at the end 

23 of paragraph (37), by striking the period at the end 

24 of paragraph (38) and inserting ‘‘, and’’, and by 

25 adding at the end the following: 


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1 ‘‘(39) in the case of a facility with respect to 

2 which a credit was allowed under section 45S, to the 

3 extent provided in section 45S(d)(A).’’. 

4 (3) Section 6501(m) of such Code is amended 

5 by inserting ‘‘45S(e)’’ after ‘‘45C(d)(4)’’. 

6 (d) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2011. 

9 TITLE II—OIL AND GAS 

10 DEVELOPMENT 

11 SEC. 201. PRODUCTION OF OIL AND GAS ON OUTER CONTI12 NENTAL SHELF. 

13 (a) IN GENERAL.—Section 18 of the Outer Conti14 nental Shelf Lands Act (43 U.S.C. 1344) is amended by 

15 adding at the end the following: 

16 ‘‘(i) PRODUCTION OF OIL AND GAS ON OUTER CON17 TINENTAL SHELF.— 

18 ‘‘(1) DEFINITIONS.—In this subsection: 

19 ‘‘(A) COASTAL POLITICAL SUBDIVISION.— 

20 The term ‘coastal political subdivision’ means a 

21 political subdivision of a Gulf producing State 

22 or a Southeastern State any part of which polit23 ical subdivision is— 

24 ‘‘(i) within the coastal zone (as de25 fined in section 304 of the Coastal Zone 


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1 Management Act of 1972 (16 U.S.C. 

2 1453)) of the Gulf producing State as of 

3 the date of enactment of this Act; and 

4 ‘‘(ii) not more than 200 nautical miles 

5 from the geographic center of any leased 

6 tract. 

7 ‘‘(B) GULF PRODUCING STATE.—The term 

8 ‘Gulf producing State’ means each of the States 

9 of Alabama, Florida, Louisiana, Mississippi, 

10 and Texas. 

11 ‘‘(C) MORATORIUM AREA.—The term ‘mor12 atorium area’ means any area of the outer Con13 tinental Shelf with respect to which Congress 

14 has prohibited the use of appropriated funds or 

15 other means for preleasing, leasing, or related 

16 activities. 

17 ‘‘(D) QUALIFIED OUTER CONTINENTAL

18 SHELF REVENUES.— 

19 ‘‘(i) IN GENERAL.—The term ‘quali20 fied outer Continental Shelf revenues’ 

21 means all rentals, royalties, bonus bids, 

22 and other sums due and payable to the 

23 United States from leases entered into 

24 under this subsection. 


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1 ‘‘(ii) EXCLUSIONS.—The term ‘quali2 fied outer Continental Shelf revenues’ does 

3 not include— 

4 ‘‘(I) revenues from the forfeiture 

5 of a bond or other surety securing ob6 ligations other than royalties, civil 

7 penalties, or royalties taken by the 

8 Secretary in-kind and not sold; or 

9 ‘‘(II) revenues generated from 

10 leases subject to section 8(g). 

11 ‘‘(E) SOUTHEASTERN STATE.—The term 

12 ‘Southeastern State’ means the each of the 

13 States of Georgia, North Carolina, South Caro14 lina, and Virginia. 

15 ‘‘(2) OUTER CONTINENTAL SHELF LEASING

16 AREAS.— 

17 ‘‘(A) GULF OF MEXICO.— 

18 ‘‘(i) IN GENERAL.—Not later than 

19 180 days after the date on which any nec20 essary environmental analyses are com21 pleted under the National Environmental 

22 Policy Act of 1969 (42 U.S.C. 4321 et 

23 seq.), the Secretary may offer for leasing, 

24 preleasing, or any related activity under 

25 this Act any moratorium area in the Gulf 


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1 of Mexico that is more than 50 miles off 

2 the coastline of the Gulf of Mexico. 

3 ‘‘(ii) CONSULTATION WITH SEC4 RETARY OF DEFENSE.—The Secretary 

5 shall consult with the Secretary of Defense 

6 to ensure that any activity conducted 

7 under clause (i) is carried out in a manner 

8 that is consistent with national security. 

9 ‘‘(B) SOUTHEASTERN STATES.— 

10 ‘‘(i) IN GENERAL.—The Governor, 

11 with the concurrence of the Legislature, of 

12 a Southeastern State may submit to the 

13 Secretary a petition requesting that the 

14 Secretary make available for leasing any 

15 area in the administrative boundaries of 

16 the Southeastern State that is more than 

17 50 miles off the coastline of the South18 eastern State. 

19 ‘‘(ii) ACTION BY SECRETARY.—Not 

20 later than 90 days after the date of receipt 

21 of a petition under clause (i) and not later 

22 than 180 days after the date on which any 

23 necessary environmental analyses are com24 pleted under the National Environmental 

25 Policy Act of 1969 (42 U.S.C. 4321 et 


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1 seq.), the Secretary shall approve the peti2 tion unless the Secretary determines that 

3 leasing in the affected area presents a sig4 nificant likelihood of incidents associated 

5 with the development of resources that 

6 would cause serious harm or damage to the 

7 marine resources of the covered area or of 

8 an adjacent State. 

9 ‘‘(iii) FAILURE TO ACT.—If the Sec10 retary fails to approve or deny a petition 

11 in accordance with clause (ii), the petition 

12 shall be considered to be approved as of 

13 the later of— 

14 ‘‘(I) the date that is 90 days 

15 after the date of receipt of the peti16 tion; or 

17 ‘‘(II) the date that is 180 days 

18 after the date on which any necessary 

19 environmental analyses are completed 

20 under the National Environmental 

21 Policy Act of 1969 (42 U.S.C. 4321 

22 et seq.). 

23 ‘‘(iv) TREATMENT.—Notwithstanding 

24 any other provision of this section, not 

25 later than 180 days after the date on 


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1 which a petition is approved, or considered 

2 to be approved, under clause (ii) or (iii), 

3 the Secretary shall treat the petition of the 

4 Governor or the Legislature of a South5 eastern State under clause (i) as a pro6 posed revision to a leasing program under 

7 this section. 

8 ‘‘(C) ADMINISTRATION.—Notwithstanding 

9 the omission of any areas made available for 

10 leasing under subparagraph (A) or (B) from 

11 the applicable 5-year plan developed by the Sec12 retary pursuant to this section, the areas shall 

13 be offered for leasing under this section in ac14 cordance with the completed environmental 

15 analyses referred to in subparagraph (A)(i) or 

16 (B)(ii), respectively. 

17 ‘‘(D) INCLUSION IN 5-YEAR PROGRAM.— 

18 ‘‘(i) IN GENERAL.—Except as pro19 vided in clause (ii), if areas are made avail20 able for leasing under subparagraph (A) or 

21 (B), the Secretary shall initiate a new 5- 

22 year outer Continental Shelf oil and gas 

23 leasing program to replace the outer Conti24 nental Shelf oil and gas leasing program in 

25 effect as of that date, which shall include 


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1 any lease sale for any area made available 

2 for leasing under subparagraph (A) or (B). 

3 ‘‘(ii) INCLUSION IN PROGRAM.—If 

4 there are less than 18 months remaining in 

5 the 5-year outer Continental Shelf oil and 

6 gas leasing program described in clause (i), 

7 the Secretary shall include the areas made 

8 available for leasing under subparagraph 

9 (A) or (B) in lease sales under the pro10 posed 5-year outer Continental Shelf oil 

11 and gas leasing program. 

12 ‘‘(iii) ENVIRONMENTAL ASSESS13 MENT.—Before modifying a 5-year outer 

14 Continental Shelf oil and gas leasing pro15 gram for the next 5-year period, the Sec16 retary shall complete an environmental as17 sessment that describes any anticipated en18 vironmental effect of leasing in the areas 

19 made available for leasing under subpara20 graph (A) or (B). 

21 ‘‘(3) DISPOSITION OF QUALIFIED OUTER CONTI22 NENTAL SHELF REVENUES.— 

23 ‘‘(A) GULF OF MEXICO.—Notwithstanding 

24 section 9, qualified outer Continental Shelf rev25 enues derived from leasing moratorium areas in 


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1 the Gulf of Mexico under paragraph (2)(A) 

2 shall be disbursed to Gulf producing States (in3 cluding the State of Florida) and coastal polit4 ical subdivisions of those Gulf producing States 

5 in accordance with section 105 of the Gulf of 

6 Mexico Energy Security Act of 2006 (43 U.S.C. 

7 1331 note; Public Law 109–432). 

8 ‘‘(B) SOUTHEASTERN STATES.— 

9 ‘‘(i) IN GENERAL.—Except as pro10 vided in clause (ii), if the Governor or the 

11 Legislature of a Southeastern State sub12 mits to the Secretary a petition requesting 

13 that the Secretary make available for leas14 ing any portion of a moratorium area in 

15 the administrative boundaries of the 

16 Southeastern State that is more than 50 

17 miles off the coastline of the Southeastern 

18 State and the Secretary approves the peti19 tion, the Secretary shall— 

20 ‘‘(I) disburse to the Southeastern 

21 State 37.5 percent of any qualified 

22 outer Continental Shelf revenues that 

23 are derived from leasing any portion 

24 of a moratorium area in the adminis25 trative boundaries of the Southeastern 


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1 State that is more than 50 miles, but 

2 less than 100 miles, off the coastline 

3 of the Southeastern State; and 

4 ‘‘(II) pay 20 percent of the allo5 cable share of the Southeastern State 

6 to the coastal political subdivisions of 

7 the Southeastern State in accordance 

8 with subparagraphs (B), (C), and (E) 

9 of section 31(b)(4). 

10 ‘‘(ii) CONTIGUOUS STATES.—If 2 or 

11 more contiguous Southeastern States sub12 mit petitions described in clause (i) and 

13 the Secretary approves the petitions, the 

14 Secretary shall— 

15 ‘‘(I) disburse to the contiguous 

16 Southeastern States 50 percent of any 

17 qualified outer Continental Shelf reve18 nues that are derived from leasing any 

19 portion of a moratorium area in the 

20 administrative boundaries of the 

21 Southeastern States that is more than 

22 50 miles, but less than 100 miles, off 

23 the coastline of the Southeastern 

24 States; 


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1 ‘‘(II) allocate the amount made 

2 available under subclause (I) to the 

3 contiguous Southeastern States in 

4 amounts that are inversely propor5 tional to the respective distances be6 tween the point on the coastline of 

7 each Southeastern State that is clos8 est to the geographical center of each 

9 historical lease site and the geo10 graphical center of the historical lease 

11 site, as determined by the Secretary; 

12 and 

13 ‘‘(III) pay 20 percent of the allo14 cable share of each contiguous South15 eastern State to the coastal political 

16 subdivisions of the Southeastern State 

17 in accordance with subparagraphs 

18 (B), (C), and (E) of section 31(b)(4). 

19 ‘‘(4) PROHIBITION ON EXPORT.—All oil and 

20 natural gas produced on the outer Continental Shelf 

21 of the United States under this subsection shall be 

22 made available for refining and sale solely within the 

23 United States. 

24 ‘‘(5) ALTERNATIVE FUEL TRUST FUND.— 


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1 ‘‘(A) ESTABLISHMENT.—There is estab2 lished in the Treasury of the United States a 

3 revolving fund, to be known as the ‘Alternative 

4 Fuel Trust Fund’, consisting of all qualified 

5 outer Continental Shelf revenues payable to the 

6 Federal Government under this subsection (as 

7 determined by the Secretary). 

8 ‘‘(B) EXPENDITURES FROM FUND.—Sub9 ject to appropriations and on request by the 

10 Secretary of Energy, the Secretary of the 

11 Treasury shall transfer from the Fund to the 

12 Secretary of Energy such amounts as the Sec13 retary of Energy determines are necessary to 

14 carry out— 

15 ‘‘(i) research, development, and com16 mercialization programs for alternative 

17 fuels and alternative fuel technologies; and 

18 ‘‘(ii) similar programs established 

19 under the Fulfilling U.S. Energy Leader20 ship Act of 2011 and amendments made 

21 by that Act. 

22 ‘‘(C) TRANSFERS OF AMOUNTS.— 

23 ‘‘(i) IN GENERAL.—The amounts re24 quired to be transferred to the Fund under 

25 this paragraph shall be transferred at least 


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1 monthly from the general fund of the 

2 Treasury to the Fund on the basis of esti3 mates made by the Secretary of the Treas4 ury. 

5 ‘‘(ii) ADJUSTMENTS.—Proper adjust6 ment shall be made in amounts subse7 quently transferred to the extent prior esti8 mates were in excess of or less than the 

9 amounts required to be transferred.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 104 of the Department of the Inte12 rior, Environment, and Related Agencies Appropria13 tions Act, 2008 (Public Law 110–161; 121 Stat. 

14 2118) is amended— 

15 (A) by inserting ‘‘and’’ after ‘‘North Atlan16 tic;’’; and 

17 (B) by striking ‘‘; and the eastern’’ and all 

18 that follows through ‘‘longitude’’. 

19 (2) Section 105 of the Department of the Inte20 rior, Environment, and Related Agencies Appropria21 tions Act, 2008 (Public Law 110–161; 121 Stat. 

22 2118) is repealed. 

23 (3) Section 104 of the Gulf of Mexico Energy 

24 Security Act of 2006 (43 U.S.C. 1331 note; Public 

25 Law 109–432) is amended— 


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1 (A) by striking subsection (a); 

2 (B) in subsection (b), by striking ‘‘Not3 withstanding subsection (a), the’’ and inserting 

4 ‘‘The’’; 

5 (C) in subsection (c)(1), by inserting ‘‘(as 

6 it existed before the amendment made by sec7 tion 201(c)(1) of the Fulfilling U.S. Energy 

8 Leadership Act of 2011)’’ after ‘‘subsection 

9 (a)’’; and 

10 (D) by redesignating subsections (b) and 

11 (c) as subsections (a) and (b), respectively. 

12 SEC. 202. IMPLEMENTATION OF INVENTORY OF OUTER 

13 CONTINENTAL SHELF RESOURCES. 

14 (a) IN GENERAL.—Section 357 of the Energy Policy 

15 Act of 2005 (42 U.S.C. 15912) is amended— 

16 (1) in subsection (a)— 

17 (A) by striking the first sentence of the 

18 matter preceding paragraph (1) and inserting 

19 the following: ‘‘The Secretary shall conduct a 

20 seismic inventory of oil and natural gas, and 

21 prepare a summary (the latter prepared with 

22 the assistance of, and based on information pro23 vided by, the heads of appropriate Federal 

24 agencies) of the information obtained under 

25 paragraph (3), for the waters of the United 


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1 States Outer Continental Shelf (referred to in 

2 this section as the ‘OCS’) in the Atlantic Re3 gion, the Eastern Gulf of Mexico, and the Alas4 ka Region.’’; 

5 (B) in paragraph (2)— 

6 (i) by striking ‘‘3-D’’ and inserting 

7 ‘‘2-D and 3-D’’; and 

8 (ii) by adding ‘‘and’’ at the end; and 

9 (C) by striking paragraphs (3) through (5) 

10 and inserting in the following: 

11 ‘‘(3) use existing inventories and mapping of 

12 marine resources undertaken by the National Ocean13 ographic and Atmospheric Administration and with 

14 the assistance of and based on information provided 

15 by the Department of Defense and other Federal 

16 and State agencies possessing relevant data, and use 

17 any available data regarding alternative energy po18 tential, navigation uses, fisheries, aquaculture uses, 

19 recreational uses, habitat, conservation, and military 

20 uses.’’; and 

21 (2) by striking subsection (b) and inserting the 

22 following: 

23 ‘‘(b) IMPLEMENTATION.—The Secretary shall carry 

24 out the inventory and analysis under subsection (a) in 3 


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1 phases, with priority given to all or part of applicable plan2 ning areas of the outer Continental Shelf— 

3 ‘‘(1) estimated to have the greatest potential for 

4 energy development in barrel of oil equivalent; and 

5 ‘‘(2) outside of any leased area or area sched6 uled for leasing prior to calendar year 2011 under 

7 any outer Continental Shelf 5-year leasing program 

8 or amendment to the program under section 18 of 

9 the Outer Continental Shelf Lands Act (43 U.S.C. 

10 1344). 

11 ‘‘(c) REPORTS.— 

12 ‘‘(1) IN GENERAL.—Not later than 90 days 

13 after the date of enactment of this paragraph, the 

14 Secretary shall submit to the Committee on Energy 

15 and Natural Resources of the Senate and the Com16 mittee on Natural Resources of the House of Rep17 resentatives a report that provides a plan for exe18 cuting the seismic inventories required under this 

19 section, including an estimate of the costs to com20 plete the seismic inventory by region and environ21 mental and permitting activities to facilitate expedi22 tious completion. 

23 ‘‘(2) FIRST PHASE.—Not later than 2 years 

24 after the date of enactment of this paragraph, the 

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1 ing the results of the first phase of the inventory 

2 and analysis under subsection (a). 

3 ‘‘(3) SUBSEQUENT PHASES.—Not later than 2 

4 years after the date on which the report is submitted 

5 under paragraph (2) and 2 years thereafter, the Sec6 retary shall submit to Congress a report describing 

7 the results of the second and third phases, respec8 tively, of the inventory and analysis under subsection 

9 (a). 

10 ‘‘(4) PUBLIC AVAILABILITY.—A report sub11 mitted under paragraph (2) or (3) shall be— 

12 ‘‘(A) made publicly available; and 

13 ‘‘(B) updated not less frequently than once 

14 every 5 years.’’. 

15 (b) RELATIONSHIP TO 5-YEAR PROGRAM.—The re16 quirement that the Secretary of the Interior carry out the 

17 inventory required by the amendment made by subsection 

18 (a) shall not be considered to require, authorize, or provide 

19 a basis or justification for delay by the Secretary of the 

20 Interior or any other agency of the issuance of any outer 

21 Continental Shelf leasing program or amendment to the 

22 program under section 18 of the Outer Continental Shelf 

23 Lands Act (43 U.S.C. 1344), or any lease sale pursuant 

24 to that section. 


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1 (c) PERMITS.—Nothing in this section or an amend2 ment made by this section precludes the issuance by the 

3 Secretary of the Interior of a permit to conduct geological 

4 and geophysical exploration of the outer Continental Shelf 

5 in accordance with the Outer Continental Shelf Lands Act 

6 (43 U.S.C. 1331 et seq.) and other applicable law. 

7 (d) FUNDING.—Section 999H(d) of the Energy Pol8 icy Act of 2005 (42 U.S.C. 16378(d)) is amended— 

9 (1) by striking paragraph (1) and inserting the 

10 following: 

11 ‘‘(1) Thirty-five percent shall be used for activi12 ties under section 999A(b)(1), except that for each 

13 of fiscal years 2010 through 2015 the amount made 

14 available under this paragraph shall be used to carry 

15 out section 357 (for the completion of necessary en16 vironmental analyses under the National Environ17 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.), 

18 with a priority given to completion of programmatic 

19 environmental impact statements necessary to carry 

20 out the seismic inventory or portions of the inven21 tory required by section 357, and the use of seismic 

22 technology to obtain accurate resource estimates).’’; 

23 and 

24 (2) in paragraph (4)— 


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1 (A) by inserting ‘‘(A) except as provided in 

2 subparagraph (B),’’ before ‘‘25’’; and 

3 (B) by adding at the end the following: 

4 ‘‘(B) notwithstanding subparagraph (A), 

5 for each of fiscal years 2010 through 2015— 

6 ‘‘(i) 15 percent shall be used for the 

7 purposes described in subparagraph (A); 

8 and 

9 ‘‘(ii) 10 percent shall be used for the 

10 activities described in paragraph (1).’’. 

11 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to carry out this section 

13 and the amendments made by this section, to remain 

14 available until expended without fiscal year limitation— 

15 (1) $100,000,000 for each of fiscal years 2012 

16 through 2017; and 

17 (2) $50,000,000 for each of fiscal years 2018 

18 through 2020. 

19 SEC. 203. OFFSHORE SAFETY BUREAU. 

20 (a) IN GENERAL.—The Outer Continental Shelf 

21 Lands Act (43 U.S.C. 1331 et seq.) is amended by adding 

22 to the end the following: 

23 ‘‘SEC. 32. OFFSHORE SAFETY BUREAU. 

24 ‘‘(a) ESTABLISHMENT OF BUREAU.— 

25 ‘‘(1) ESTABLISHMENT.— 


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1 ‘‘(A) IN GENERAL.—Subject to the discre2 tion granted by Reorganization Plan Number 3 

3 of 1950 (64 Stat. 1262; 43 U.S.C. 1451 note), 

4 the Secretary shall establish in the Department 

5 of the Interior a bureau to carry out the safety 

6 and environmental regulatory functions vested 

7 in the Secretary by this Act and the Federal Oil 

8 and Gas Royalty Management Act of 1982 (30 

9 U.S.C. 1701 et seq.) related to the outer Conti10 nental Shelf. 

11 ‘‘(B) CONFLICTS OF INTEREST.—In estab12 lishing the bureau under subparagraph (A), the 

13 Secretary shall ensure, to the maximum extent 

14 practicable, that any potential organizational 

15 conflicts of interest related to environmental 

16 protection and safety are eliminated. 

17 ‘‘(2) DIRECTOR.—The bureau shall be headed 

18 by a Director, who shall be appointed by the Presi19 dent, by and with the advice and consent of the Sen20 ate. 

21 ‘‘(3) COMPENSATION.—The Director shall be 

22 compensated at the rate provided for level V of the 

23 Executive Schedule under section 5316 of title 5, 

24 United States Code. 


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1 ‘‘(4) QUALIFICATIONS.—The Director shall be a 

2 person who, by reason of professional background 

3 and demonstrated ability and experience, is specially 

4 qualified to carry out the duties of the office. 

5 ‘‘(b) SPECIAL PERSONNEL AUTHORITIES.— 

6 ‘‘(1) DIRECT HIRING AUTHORITY FOR CRITICAL

7 PERSONNEL.— 

8 ‘‘(A) IN GENERAL.—Notwithstanding sec9 tions 3104, 3304, and 3309 through 3318 of 

10 title 5, United States Code, the Secretary may, 

11 on a determination that there is a severe short12 age of candidates or a critical hiring need for 

13 particular positions, recruit and directly appoint 

14 highly qualified accountants, scientists, engi15 neers, or critical technical personnel into the 

16 competitive service, as officers or employees of 

17 the organizational unit established under this 

18 section. 

19 ‘‘(B) REQUIREMENTS.—In exercising the 

20 authority granted under subparagraph (A), the 

21 Secretary shall ensure that any action taken by 

22 the Secretary— 

23 ‘‘(i) is consistent with the merit prin24 ciples of chapter 23 of title 5, United 

25 States Code; and 


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1 ‘‘(ii) complies with the public notice 

2 requirements of section 3327 of title 5, 

3 United States Code. 

4 ‘‘(2) CRITICAL PAY AUTHORITY.— 

5 ‘‘(A) IN GENERAL.—Notwithstanding sec6 tion 5377 of title 5, United States Code, and 

7 without regard to the provisions of that title 

8 governing appointments in the competitive serv9 ice or the Senior Executive Service and chap10 ters 51 and 53 of that title (relating to classi11 fication and pay rates), the Secretary may es12 tablish, fix the compensation of, and appoint in13 dividuals to critical positions needed to carry 

14 out the functions of the organizational unit es15 tablished under this section, if the Secretary 

16 certifies that— 

17 ‘‘(i) the positions— 

18 ‘‘(I) require expertise of an ex19 tremely high level in a scientific or 

20 technical field; and 

21 ‘‘(II) the organizational unit es22 tablished in this section would not 

23 successfully accomplish an important 

24 mission without such an individual; 

25 and 


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1 ‘‘(ii) exercise of the authority is nec2 essary to recruit an individual exceptionally 

3 well qualified for the position. 

4 ‘‘(B) LIMITATIONS.—The authority grant5 ed under subparagraph (A) shall be subject to 

6 the following conditions: 

7 ‘‘(i) The number of critical positions 

8 authorized by subparagraph (A) may not 

9 exceed 40 at any one time in the bureau 

10 established under this section. 

11 ‘‘(ii) The term of an appointment 

12 under subparagraph (A) may not exceed 4 

13 years. 

14 ‘‘(iii) An individual appointed under 

15 subparagraph (A) may not have been an 

16 employee of the Department of the Interior 

17 during the 2-year period prior to the date 

18 of appointment. 

19 ‘‘(iv) Total annual compensation for 

20 any individual appointed under subpara21 graph (A) may not exceed the highest total 

22 annual compensation payable at the rate 

23 determined under section 104 of title 3, 

24 United States Code. 


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1 ‘‘(v) An individual appointed under 

2 subparagraph (A) may not be considered 

3 to be an employee for purposes of sub4 chapter II of chapter 75 of title 5, United 

5 States Code. 

6 ‘‘(C) NOTIFICATION.—Each year, the Sec7 retary shall submit to Congress a notification 

8 that lists each individual appointed under this 

9 paragraph. 

10 ‘‘(3) REEMPLOYMENT OF CIVILIAN RETIR11 EES.— 

12 ‘‘(A) IN GENERAL.—Notwithstanding part 

13 553 of title 5, Code of Federal Regulations (re14 lating to reemployment of civilian retirees to 

15 meet exceptional employment needs), or suc16 cessor regulations, the Secretary may approve 

17 the reemployment of an individual to a par18 ticular position without reduction or termi19 nation of annuity if the hiring of the individual 

20 is necessary to carry out a critical function of 

21 any of the organizational units established 

22 under this section for which suitably qualified 

23 candidates do not exist. 


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1 ‘‘(B) LIMITATIONS.—An annuitant hired 

2 with full salary and annuities under the author3 ity granted by subparagraph (A)— 

4 ‘‘(i) shall not be considered an em5 ployee for purposes of subchapter III of 

6 chapter 83 and chapter 84 of title 5, 

7 United States Code; 

8 ‘‘(ii) may not elect to have retirement 

9 contributions withheld from the pay of the 

10 annuitant; 

11 ‘‘(iii) may not use any employment 

12 under this paragraph as a basis for a sup13 plemental or recomputed annuity; and 

14 ‘‘(iv) may not participate in the Thrift 

15 Savings Plan under subchapter III of 

16 chapter 84 of title 5, United States Code. 

17 ‘‘(C) LIMITATION ON TERM.—The term of 

18 employment of any individual hired under sub19 paragraph (A) may not exceed an initial term 

20 of 2 years, with an additional 2-year appoint21 ment under exceptional circumstances. 

22 ‘‘(c) CONTINUITY OF AUTHORITY.—Subject to the 

23 discretion granted by Reorganization Plan Number 3 of 

24 1950 (64 Stat. 1262; 43 U.S.C. 1451 note), any reference 

25 in any law, rule, regulation, directive, or instruction, or 


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1 certificate or other official document, in force immediately 

2 prior to the date of enactment of this section— 

3 ‘‘(1) to the Minerals Management Service that 

4 pertains to any of the duties and authorities de5 scribed in this section shall be deemed to refer and 

6 apply to the bureau established under this section; 

7 ‘‘(2) to the Director of the Minerals Manage8 ment Service that pertains to any of the duties and 

9 authorities described in this section shall be consid10 ered to refer and apply to the Director of the bureau 

11 under this section to whom the Secretary has as12 signed the respective duty or authority; and 

13 ‘‘(3) to any other position in the Minerals Man14 agement Service that pertains to any of the duties 

15 and authorities described in this section shall be con16 sidered to refer and apply to that same or equivalent 

17 position in the bureau established under this sec18 tion.’’. 

19 (b) CONFORMING AMENDMENT.—Section 5316 of 

20 title 5, United States Code, is amended by striking ‘‘Direc21 tor, Bureau of Mines, Department of the Interior’’ and 

22 inserting the following: 

23 ‘‘Bureau Directors, Department of the Interior 

24 (2).’’. 


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1 TITLE III—ALTERNATIVE FUEL 

2 DEPLOYMENT 

3 Subtitle A—Energy Provisions 

4 SEC. 301. BIOENERGY RESEARCH AND DEVELOPMENT. 

5 Section 932 of the Energy Policy Act of 2005 (42 

6 U.S.C. 16232) is amended— 

7 (1) by redesignating subsections (g) and (h) as 

8 subsections (f) and (g), respectively; and 

9 (2) by adding at the end the following: 

10 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated to carry out this sec12 tion— 

13 ‘‘(1) $2,898,000,000 for fiscal year 2009, of 

14 which $150,000,000 shall be for subsection (d); and 

15 ‘‘(2) $2,919,000,000 for fiscal year 2010, of 

16 which $150,000,000 shall be for subsection (d).’’. 

17 SEC. 302. ALTERNATIVE FUELED AUTOMOBILE PRODUC18 TION REQUIREMENT. 

19 (a) DEFINITION OF ALTERNATIVE FUELED VEHI20 CLE.—Section 32901 of title 49, United States Code, is 

21 amended by striking paragraph (2) and inserting the fol22 lowing: 

23 ‘‘(2)(A) ‘alternative fueled automobile’ means 

24 an automobile that is a— 

25 ‘‘(i) dedicated automobile; or 


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1 ‘‘(ii) dual fueled automobile. 

2 ‘‘(B) The term ‘alternative fueled automobile’ 

3 does not include a dedicated automobile that oper4 ates exclusively on gasoline or diesel fuel.’’. 

5 (b) REQUIREMENT.—Section 32905 of title 49, 

6 United States Code is amended by adding at the end the 

7 following: 

8 ‘‘(g) ALTERNATIVE FUELED AUTOMOBILES.—Each 

9 manufacturer that manufactures automobiles for sale or 

10 use in the United States shall ensure that— 

11 ‘‘(1) not less than 75 percent of such auto12 mobiles manufactured for each of model years 2016 

13 through 2019 are alternative fueled automobiles; 

14 and 

15 ‘‘(2) 100 percent of such automobiles manufac16 tured for model year 2020 and each subsequent 

17 model year are alternative fueled automobiles.’’. 

18 SEC. 303. DEFINITION OF RENEWABLE BIOMASS. 

19 Section 211(o)(1) of the Clean Air Act (42 U.S.C. 

20 7545(o)(1)) is amended by striking subparagraph (I) and 

21 inserting the following: 

22 ‘‘(I) RENEWABLE BIOMASS.—The term ‘re23 newable biomass’ means— 

24 ‘‘(i) materials, pre-commercial 

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1 tional Forest System land and public lands 

2 (as defined in section 103 of the Federal 

3 Land Policy and Management Act of 1976 

4 (43 U.S.C. 1702)) that— 

5 ‘‘(I) are byproducts of preventive 

6 treatments that are removed— 

7 ‘‘(aa) to reduce hazardous 

8 fuels; 

9 ‘‘(bb) to reduce or contain 

10 disease or insect infestation; or 

11 ‘‘(cc) to restore ecosystem 

12 health; 

13 ‘‘(II) would not otherwise be used 

14 for higher-value products; and 

15 ‘‘(III) are harvested in accord16 ance with— 

17 ‘‘(aa) applicable law and 

18 land management plans; and 

19 ‘‘(bb) the requirements 

20 for— 

21 ‘‘(AA) old-growth main22 tenance, restoration, and 

23 management direction of 

24 paragraphs (2), (3), and (4) 

25 of subsection (e) of section 


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1 102 of the Healthy Forests 

2 Restoration Act of 2003 (16 

3 U.S.C. 6512); and 

4 ‘‘(BB) large-tree reten5 tion of subsection (f) of that 

6 section; or 

7 ‘‘(ii) any organic matter that is avail8 able on a renewable or recurring basis 

9 from non-Federal land or land belonging to 

10 an Indian or Indian tribe that is held in 

11 trust by the United States or subject to a 

12 restriction against alienation imposed by 

13 the United States, including— 

14 ‘‘(I) renewable plant material, in15 cluding— 

16 ‘‘(aa) feed grains; 

17 ‘‘(bb) other agricultural 

18 commodities; 

19 ‘‘(cc) other plants and trees; 

20 and 

21 ‘‘(dd) algae; and 

22 ‘‘(II) waste material, including— 

23 ‘‘(aa) crop residue; 


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1 ‘‘(bb) other vegetative waste 

2 material (including wood waste 

3 and wood residues); 

4 ‘‘(cc) animal waste and by5 products (including fats, oils, 

6 greases, and manure); and 

7 ‘‘(dd) food waste and yard 

8 waste.’’. 

9 SEC. 304. LOAN GUARANTEES FOR RENEWABLE FUEL PIPE10 LINES. 

11 Subtitle C of title II of the Energy Independence and 

12 Security Act of 2007 (42 U.S.C. 17051 et seq.) is amend13 ed by adding at the end the following: 

14 ‘‘SEC. 249. LOAN GUARANTEES FOR RENEWABLE FUEL 

15 PIPELINES. 

16 ‘‘(a) DEFINITIONS.—In this section: 

17 ‘‘(1) COST.—The term ‘cost’ has the meaning 

18 given the term ‘cost of a loan guarantee’ in section 

19 502(5)(C) of the Federal Credit Reform Act of 1990 

20 (2 U.S.C. 661a(5)(C)). 

21 ‘‘(2) ELIGIBLE PROJECT.—The term ‘eligible 

22 project’ means a project described in subsection 

23 (b)(1). 

24 ‘‘(3) GUARANTEE.— 


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1 ‘‘(A) IN GENERAL.—The term ‘guarantee’ 

2 has the meaning given the term ‘loan guar3 antee’ in section 502 of the Federal Credit Re4 form Act of 1990 (2 U.S.C. 661a). 

5 ‘‘(B) INCLUSION.—The term ‘guarantee’ 

6 includes a loan guarantee commitment (as de7 fined in section 502 of the Federal Credit Re8 form Act of 1990 (2 U.S.C. 661a)). 

9 ‘‘(4) RENEWABLE FUEL.—The term ‘renewable 

10 fuel’ means fuel that is produced from renewable 

11 biomass and that is used to replace or reduce the 

12 quantity of fossil fuel present in a transportation 

13 fuel. 

14 ‘‘(5) RENEWABLE FUEL PIPELINE.—The term 

15 ‘renewable fuel pipeline’ means a common carrier 

16 pipeline for transporting renewable fuel. 

17 ‘‘(b) LOAN GUARANTEES.— 

18 ‘‘(1) IN GENERAL.—The Secretary shall make 

19 guarantees under this section for projects that pro20 vide for— 

21 ‘‘(A) the construction of new renewable 

22 fuel pipelines; or 

23 ‘‘(B) the modification of pipelines to trans24 port renewable fuel. 


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1 ‘‘(2) ELIGIBILITY.—In determining the eligi2 bility of a project for a guarantee under this section, 

3 the Secretary shall consider— 

4 ‘‘(A) the volume of renewable fuel to be 

5 moved by the renewable fuel pipeline; 

6 ‘‘(B) the size of the markets to be served 

7 by the renewable fuel pipeline; 

8 ‘‘(C) the existence of sufficient storage to 

9 facilitate access to the markets served by the 

10 renewable fuel pipeline; 

11 ‘‘(D) the proximity of the renewable fuel 

12 pipeline to renewable fuel production facilities; 

13 ‘‘(E) the investment of the entity carrying 

14 out the proposed project in terminal infrastruc15 ture; 

16 ‘‘(F) the experience of the entity carrying 

17 out the proposed project in working with renew18 able fuel; 

19 ‘‘(G) the ability of the entity carrying out 

20 the proposed project to maintain the quality of 

21 the renewable fuel through— 

22 ‘‘(i) the terminal system of the entity; 

23 and 

24 ‘‘(ii) the dedicated pipeline system; 


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1 ‘‘(H) the ability of the entity carrying out 

2 the proposed project to complete the project in 

3 a timely manner; and 

4 ‘‘(I) the ability of the entity carrying out 

5 the proposed project to secure property rights6 of-way in order to move the proposed project 

7 forward in a timely manner. 

8 ‘‘(3) AMOUNT.—Unless otherwise provided by 

9 law, a guarantee by the Secretary under this section 

10 shall not exceed an amount equal to 90 percent of 

11 the eligible project cost of the renewable fuel pipeline 

12 that is the subject of the guarantee, as estimated at 

13 the time at which the guarantee is issued or subse14 quently modified while the eligible project is under 

15 construction. 

16 ‘‘(4) TERMS AND CONDITIONS.—Guarantees 

17 under this section shall be provided in accordance 

18 with section 1702 of the Energy Policy Act of 2005 

19 (42 U.S.C. 16512), except that subsection (c) of 

20 that section shall not apply to guarantees made 

21 under this section. 

22 ‘‘(5) FINAL RULE.—Not later than 90 days 

23 after the date of enactment of this section, the Sec24 retary shall publish in the Federal Register a final 

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1 ergy Loan Guarantee Program Office to initiate the 

2 loan guarantee program under this section in ac3 cordance with this section. 

4 ‘‘(c) FUNDING.— 

5 ‘‘(1) IN GENERAL.—There are authorized to be 

6 appropriated such sums as are necessary to provide 

7 $4,000,000,000 in guarantees under this section. 

8 ‘‘(2) USE OF OTHER APPROPRIATED FUNDS.— 

9 To the extent that the amounts made available 

10 under title XVII of the Energy Policy Act of 2005 

11 (42 U.S.C. 16511 et seq.) have not been disbursed 

12 to programs under that title, the Secretary may use 

13 the amounts to carry out this section.’’. 

14 Subtitle B—Tax Provisions 

15 SEC. 311. VARIABLE VEETC RATE BASED ON PRICE OF 

16 CRUDE OIL. 

17 (a) EXCISE TAX CREDIT.— 

18 (1) IN GENERAL.—Subparagraph (A) of section 

19 6426(b)(2) of the Internal Revenue Code of 1986 is 

20 amended— 

21 (A) by striking ‘‘and’’ at the end of clause 

22 (i), 

23 (B) by striking ‘‘calendar years beginning 

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1 ing ‘‘calendar quarters beginning after 2008 

2 and before July 1, 2011, 45 cents, and’’, and 

3 (C) by adding at the end the following new 

4 clause: 

5 ‘‘(iii) in the case of calendar quarters 

6 beginning after June 30, 2011, the appli7 cable rate determined in accordance with 

8 the following table: 

‘‘If the average price of crude oil The applicable rate for 

during the preceding calendar 

quarter is: 

the calendar quarter is: 

Not more than $50/barrel ............................................................ 30 cents

More than $50 but not more than $60/barrel ............................. 24 cents

More than $60 but not more than $70/barrel ............................. 18 cents

More than $70 but not more than $80/barrel ............................. 12 cents

More than $80 but not more than $90/barrel ............................. 6 cents

More than $90/barrel ................................................................... 0 cents. 

9 For purposes of the preceding table, the 

10 average price of crude oil for any calendar 

11 quarter shall be the average 3-month fu12 tures price on the New York Mercantile 

13 Exchange for light sweet crude oil for such 

14 calendar quarter. Each applicable rate 

15 under the preceding table shall be reduced 

16 by 2 cents for each calendar year begin17 ning after 2011.’’. 

18 (2) EXTENSION OF TAX CREDIT OR PAY19 MENT.—Sections 6426(b)(6) and 6427(e)(6)(A) of 

20 such Code are each amended by striking ‘‘2011’’ and 

21 inserting ‘‘2014’’. 


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1 (b) INCOME TAX CREDIT.— 

2 (1) IN GENERAL.—The table contained in sec3 tion 40(h)(2) of the Internal Revenue Code of 1986 

4 is amended— 

5 (A) by striking ‘‘calendar year’’ in the 

6 heading for the first column, 

7 (B) by inserting ‘‘Calendar year’’ before 

8 ‘‘2001’’, 

9 (C) by inserting ‘‘Calendar year’’ before 

10 ‘‘2003’’, 

11 (D) by inserting ‘‘Calendar year’’ before 

12 ‘‘2005’’, 

13 (E) by inserting ‘‘Calendar years’’ before 

14 ‘‘2009’’, 

15 (F) by striking ‘‘2011’’ and inserting ‘‘the 

16 last calendar quarter beginning before July 1, 

17 2011’’, 

18 (G) by striking the period at the end of the 

19 table, and 

20 (H) by adding at the end the following: 

‘‘Any calendar quarter beginning after June 30, 2011, 

and before 2015.

1st 

applicable 

rate 

2d applicable rate.’’. 

21 (2) APPLICABLE RATES.—Paragraph (3) of sec22 tion 40(h) of such Code is amended to read as fol23 lows: 


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1 ‘‘(3) APPLICABLE RATES.—For purposes of this 

2 subsection, the 1st applicable rate and the 2d appli3 cable rate shall be determined in accordance with 

4 the following table: 

‘‘If the average price of crude 

oil during the preceding calendar quarter is: 

The 1st applicable 

rate for the calendar quarter is: 

The 2d applicable rate 

for the calendar quarter 

is: 

Not more than $50/barrel ....... 30 cents 22.20 cents 

More than $50 but not more 

than $60/barrel.

24 cents 17.76 cents 

More than $60 but not more 

than $70/barrel.

18 cents 13.33 cents 

More than $70 but not more 

than $80/barrel.

12 cents 8.88 cents 

More than $80 but not more 

than $90/barrel.

6 cents 4.44 cents 

More than $90/barrel ............... 0 cents 0 cents. 

5 For purposes of the preceding table, the average 

6 price of crude oil for any calendar quarter shall be 

7 the average 3-month futures price on the New York 

8 Mercantile Exchange for light sweet crude oil for 

9 such calendar quarter. Each 1st applicable rate 

10 under the preceding table shall be reduced by 2 

11 cents for each calendar year beginning after 2011 

12 and each 2d applicable rate under such table shall 

13 be reduced by 1.48 cents for each such year.’’. 

14 (3) EXTENSION OF TAX CREDIT.—Section 40 of 

15 such Code is amended— 

16 (A) by striking ‘‘2011’’ in subsection 

17 (e)(1)(A) and inserting ‘‘2014’’, 

18 (B) by striking ‘‘2012’’ in subsection 

19 (e)(1)(B) and inserting ‘‘2015’’, and 


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1 (C) by striking ‘‘2011’’ in subsection 

2 (h)(1) and inserting ‘‘2014’’. 

3 (c) REPEAL OF DEADWOOD.—Section 6426(b)(2) of 

4 the Internal Revenue Code of 1986 is amended by striking 

5 subparagraph (C). 

6 (d) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to any sale, use, or removal for 

8 any period after June 30, 2011. 

9 SEC. 312. EXTENSION OF CELLULOSIC BIOFUEL PRODUCER 

10 CREDIT THROUGH 2016. 

11 (a) IN GENERAL.—Section 40(b)(6) of the Internal 

12 Revenue Code of 1986 is amended by striking subpara13 graph (H). 

14 (b) CONFORMING AMENDMENT.—Section 40(e) of 

15 the Internal Revenue Code of 1986 is amended by striking 

16 paragraph (3). 

17 SEC. 313. EXTENSION AND MODIFICATION OF ALTER18 NATIVE FUEL VEHICLE REFUELING PROP19 ERTY CREDIT. 

20 (a) EXTENSION.—Subsection (g) of section 30C of 

21 the Internal Revenue Code of 1986 is amended by striking 

22 ‘‘placed in service’’ and all that follows and inserting 

23 ‘‘placed in service after December 31, 2016.’’. 

24 (b) ONLY CERTAIN ETHANOL BLENDS ELIGIBLE

25 FOR CREDIT.—Subparagraph (A) of section 30C(c)(2) of 


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1 the Internal Revenue Code of 1986 is amended to read 

2 as follows: 

3 ‘‘(A) Any fuel— 

4 ‘‘(i) at least 85 percent of the volume 

5 of which consists of one or more of the fol6 lowing: natural gas, compressed natural 

7 gas, liquified natural gas, liquefied petro8 leum gas, or hydrogen, or 

9 ‘‘(ii) at least 85 percent of the volume 

10 of which consists of— 

11 ‘‘(I) ethanol, or 

12 ‘‘(II) ethanol and one or more of 

13 the fuels described in clause (i), but 

14 only if at least 20 percent and not 

15 more than 85 percent of the volume of 

16 such fuel consists of ethanol.’’. 

17 (c) CREDIT FOR DUAL-USE REFUELING PROP18 ERTY.—Subsection (e) of section 30C of the Internal Rev19 enue Code of 1986 is amended by adding at the end the 

20 following new paragraph: 

21 ‘‘(6) DUAL-USE REFUELING PROPERTY.— 

22 ‘‘(A) IN GENERAL.—In the case of any 

23 dual-use refueling property, 100 percent of the 

24 cost of such property shall be treated as quali25 fied alternative fuel refueling property if the 


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1 taxpayer certifies, in such time and manner as 

2 the Secretary shall prescribe, that such prop3 erty will be used in more than a de minimis ca4 pacity for the purposes described in section 

5 179A(d)(3)(A) (applied as specified in sub6 section (c)(2)). 

7 ‘‘(B) RECAPTURE.—If at any time within 

8 5 years after the date of the certification under 

9 subparagraph (A) the dual-use refueling prop10 erty ceases to be used as required under such 

11 subparagraph, 100 percent of the cost of such 

12 property shall be subject to recapture under 

13 paragraph (5). 

14 ‘‘(C) DUAL-USE REFUELING PROPERTY.— 

15 For purposes of this paragraph, the term ‘dual16 use refueling property’ means property that is 

17 both qualified alternative fuel vehicle refueling 

18 property and property used— 

19 ‘‘(i) to store or dispense fuels not de20 scribed in subsection (c)(2), or 

21 ‘‘(ii) to store fuels described in sub22 section (c)(2) for any purpose other than 

23 delivery of such fuel into the fuel tank of 

24 a motor vehicle.’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service after 

3 December 31, 2011. 

4 SEC. 314. EXTENSION OF SPECIAL DEPRECIATION ALLOW5 ANCE FOR CELLULOSIC BIOFUEL PLANT 

6 PROPERTY. 

7 Subparagraph (D) of section 168(l)(2) of the Internal 

8 Revenue Code of 1986 is amended by striking ‘‘January 

9 1, 2013’’ and inserting ‘‘January 1, 2017’’. 

10 SEC. 315. INCENTIVES FOR BIODIESEL AND RENEWABLE 

11 DIESEL. 

12 (a) CREDITS FOR BIODIESEL AND RENEWABLE DIE13 SEL USED AS FUEL.—Subsection (g) of section 40A of 

14 the Internal Revenue Code of 1986 is amended by striking 

15 ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

16 2016’’. 

17 (b) EXCISE TAX CREDITS AND OUTLAY PAYMENTS

18 FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIX19 TURES.— 

20 (1) Paragraph (6) of section 6426(c) is amend21 ed by striking ‘‘December 31, 2011’’ and inserting 

22 ‘‘December 31, 2016’’. 

23 (2) Subparagraph (B) of section 6427(e)(6) is 

24 amended by striking ‘‘December 31, 2011’’ and in25 serting ‘‘December 31, 2016’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to fuel sold or used after December 

3 31, 2011. 

4 SEC. 316. ALTERNATIVE FUELS EXCISE TAX CREDITS. 

5 (a) IN GENERAL.—Sections 6426(d)(5), 6426(e)(3), 

6 and 6427(e)(6)(C) of the Internal Revenue Code of 1986 

7 are each amended by striking ‘‘December 31, 2011’’ and 

8 inserting ‘‘December 31, 2016’’. 

9 (b) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to fuel sold or used after December 

11 31, 2011. 

12 TITLE IV—CLEANER SOURCES 

13 OF ELECTRICITY 

14 Subtitle A—Energy Provisions 

15 SEC. 401. CLEAN ENERGY STANDARD. 

16 (a) IN GENERAL.—The Secretary of Energy shall es17 tablish a clean energy standard that promotes the use of 

18 renewable and other low-carbon sources of electricity. 

19 (b) ADMINISTRATION.—In establishing the clean en20 ergy standard, the Secretary shall, to the maximum extent 

21 practicable, take into account the likely timelines for the 

22 availability of new electricity technologies to ensure that 

23 the standard is technically achievable and affordable for 

24 energy consumers. 


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1 SEC. 402. LARGE-SCALE CARBON STORAGE PROGRAM. 

2 (a) IN GENERAL.—Subtitle F of title IX of the En3 ergy Policy Act of 2005 (42 U.S.C. 16291 et seq.) is 

4 amended by inserting after section 963 (42 U.S.C. 16293) 

5 the following: 

6 ‘‘SEC. 963A. LARGE-SCALE CARBON STORAGE PROGRAM. 

7 ‘‘(a) DEFINITIONS.—In this section: 

8 ‘‘(1) INDUSTRIAL SOURCE.—The term ‘indus9 trial source’ means any source of carbon dioxide that 

10 is not naturally occurring. 

11 ‘‘(2) LARGE-SCALE.—The term ‘large-scale’ 

12 means the injection of over 1,000,000 tons of carbon 

13 dioxide each year from industrial sources into a geo14 logical formation. 

15 ‘‘(3) SECRETARY CONCERNED.—The term ‘Sec16 retary concerned’ means— 

17 ‘‘(A) the Secretary of Agriculture (acting 

18 through the Chief of the Forest Service), with 

19 respect to National Forest System land; and 

20 ‘‘(B) the Secretary of the Interior, with re21 spect to land managed by the Bureau of Land 

22 Management (including land held for the ben23 efit of an Indian tribe). 

24 ‘‘(b) PROGRAM.—In addition to the research, develop25 ment, and demonstration program authorized by section 

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1 onstrate the commercial application of integrated systems 

2 for the capture, injection, monitoring, and long-term geo3 logical storage of carbon dioxide from industrial sources. 

4 ‘‘(c) AUTHORIZED ASSISTANCE.—In carrying out the 

5 program, the Secretary may enter into cooperative agree6 ments to provide financial and technical assistance to up 

7 to 10 demonstration projects. 

8 ‘‘(d) PROJECT SELECTION.—The Secretary shall 

9 competitively select recipients of cooperative agreements 

10 under this section from among applicants that— 

11 ‘‘(1) provide the Secretary with sufficient geo12 logical site information (including hydrogeological 

13 and geophysical information) to establish that the 

14 proposed geological storage unit is capable of long15 term storage of the injected carbon dioxide, includ16 ing— 

17 ‘‘(A) the location, extent, and storage ca18 pacity of the geological storage unit at the site 

19 into which the carbon dioxide will be injected; 

20 ‘‘(B) the principal potential modes of 

21 geomechanical failure in the geological storage 

22 unit; 

23 ‘‘(C) the ability of the geological storage 

24 unit to retain injected carbon dioxide; and 


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1 ‘‘(D) the measurement, monitoring, and 

2 verification requirements necessary to ensure 

3 adequate information on the operation of the 

4 geological storage unit during and after the in5 jection of carbon dioxide; 

6 ‘‘(2) possess the land or interests in land nec7 essary for— 

8 ‘‘(A) the injection and storage of the car9 bon dioxide at the proposed geological storage 

10 unit; and 

11 ‘‘(B) the closure, monitoring, and long12 term stewardship of the geological storage unit; 

13 ‘‘(3) possess or have a reasonable expectation of 

14 obtaining all necessary permits and authorizations 

15 under applicable Federal and State laws (including 

16 regulations); and 

17 ‘‘(4) agree to comply with each requirement of 

18 subsection (e). 

19 ‘‘(e) TERMS AND CONDITIONS.—The Secretary shall 

20 condition receipt of financial assistance pursuant to a co21 operative agreement under this section on the recipient 

22 agreeing to— 

23 ‘‘(1) comply with all applicable Federal and 

24 State laws (including regulations), including a cer25 tification by the appropriate regulatory authority 


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1 that the project will comply with Federal and State 

2 requirements to protect drinking water supplies; 

3 ‘‘(2) in the case of industrial sources subject to 

4 the Clean Air Act (42 U.S.C. 7401 et seq.), inject 

5 only carbon dioxide captured from industrial sources 

6 in compliance with that Act; 

7 ‘‘(3) comply with all applicable construction and 

8 operating requirements for deep injection wells; 

9 ‘‘(4) measure, monitor, and test to verify that 

10 carbon dioxide injected into the injection zone is 

11 not— 

12 ‘‘(A) escaping from or migrating beyond 

13 the confinement zone; or 

14 ‘‘(B) endangering an underground source 

15 of drinking water; 

16 ‘‘(5) comply with applicable well-plugging, post17 injection site care, and site closure requirements, in18 cluding— 

19 ‘‘(A)(i) maintaining financial assurances 

20 during the post-injection closure and monitoring 

21 phase until a certificate of closure is issued by 

22 the Secretary; and 

23 ‘‘(ii) promptly undertaking remediation ac24 tivities for any leak from the geological storage 


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1 unit that would endanger public health or safe2 ty or natural resources; and 

3 ‘‘(B) complying with subsection (f); 

4 ‘‘(6) comply with applicable long-term care re5 quirements; 

6 ‘‘(7) maintain financial protection in a form 

7 and in an amount acceptable to— 

8 ‘‘(A) the Secretary; 

9 ‘‘(B) the Secretary with jurisdiction over 

10 the land; and 

11 ‘‘(C) the Administrator of the Environ12 mental Protection Agency; and 

13 ‘‘(8) provide the assurances described in section 

14 963(c)(4)(B). 

15 ‘‘(f) POST INJECTION CLOSURE AND MONITORING

16 ELEMENTS.—In assessing whether a project complies with 

17 site closure requirements under subsection (e)(5), the Sec18 retary, in consultation with the Administrator of the Envi19 ronmental Protection Agency, shall determine whether the 

20 recipient of financial assistance has demonstrated contin21 uous compliance with each of the following over a period 

22 of not less than 10 consecutive years after the plume of 

23 carbon dioxide has stabilized within the geologic formation 

24 that comprises the geologic storage unit following the ces25 sation of injection activities: 


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1 ‘‘(1) The estimated location and extent of the 

2 project footprint (including the detectable plume of 

3 carbon dioxide and the area of elevated pressure re4 sulting from the project) has not substantially 

5 changed and is contained within the geologic storage 

6 unit. 

7 ‘‘(2) The injection zone formation pressure has 

8 ceased to increase following cessation of carbon diox9 ide injection into the geologic storage unit. 

10 ‘‘(3) There is no leakage of either carbon diox11 ide or displaced formation fluid from the geologic 

12 storage unit that is endangering public health and 

13 safety, including underground sources of drinking 

14 water and natural resources. 

15 ‘‘(4) The injected or displaced formation fluids 

16 are not expected to migrate in the future in a man17 ner that encounters a potential leakage pathway. 

18 ‘‘(5) The injection wells at the site completed 

19 into or through the injection zone or confining zone 

20 are plugged and abandoned in accordance with the 

21 applicable requirements of Federal or State law gov22 erning the wells. 

23 ‘‘(g) INDEMNIFICATION AGREEMENTS.— 


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1 ‘‘(1) DEFINITION OF LIABILITY.—In this sub2 section, the term ‘liability’ means any legal liability 

3 for— 

4 ‘‘(A) bodily injury, sickness, disease, or 

5 death; 

6 ‘‘(B) loss of or damage to property, or loss 

7 of use of property; or 

8 ‘‘(C) injury to or destruction or loss of nat9 ural resources, including fish, wildlife, and 

10 drinking water supplies. 

11 ‘‘(2) AGREEMENTS.—Not later than 1 year 

12 after the date of the receipt by the Secretary of a 

13 completed application for a demonstration project, 

14 the Secretary may agree to indemnify and hold 

15 harmless the recipient of a cooperative agreement 

16 under this section from liability arising out of or re17 sulting from a demonstration project in excess of the 

18 amount of liability covered by financial protection 

19 maintained by the recipient under subsection (e)(7). 

20 ‘‘(3) EXCEPTION FOR GROSS NEGLIGENCE AND

21 INTENTIONAL MISCONDUCT.—Notwithstanding para22 graph (1), the Secretary may not indemnify the re23 cipient of a cooperative agreement under this section 

24 from liability arising out of conduct of a recipient 


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1 that is grossly negligent or that constitutes inten2 tional misconduct. 

3 ‘‘(4) COLLECTION OF FEES.— 

4 ‘‘(A) IN GENERAL.—The Secretary shall 

5 collect a fee from any person with whom an 

6 agreement for indemnification is executed under 

7 this subsection in an amount that is equal to 

8 the net present value of payments made by the 

9 United States to cover liability under the in10 demnification agreement. 

11 ‘‘(B) AMOUNT.—The Secretary shall estab12 lish, by regulation, criteria for determining the 

13 amount of the fee, taking into account— 

14 ‘‘(i) the likelihood of an incident re15 sulting in liability to the United States 

16 under the indemnification agreement; and 

17 ‘‘(ii) other factors pertaining to the 

18 hazard of the indemnified project. 

19 ‘‘(C) USE OF FEES.—Fees collected under 

20 this paragraph shall be deposited in the Treas21 ury and credited to miscellaneous receipts. 

22 ‘‘(5) CONTRACTS IN ADVANCE OF APPROPRIA23 TIONS.— 

24 ‘‘(A) IN GENERAL.—Subject to subpara25 graph (B), the Secretary The Secretary may 


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1 enter into agreements of indemnification under 

2 this subsection in advance of appropriations 

3 and incur obligations without regard to section 

4 1341 of title 31, United States Code (commonly 

5 known as the ‘Anti-Deficiency Act’), or section 

6 11 of title 41, United States Code (commonly 

7 known as the ‘Adequacy of Appropriations 

8 Act’). 

9 ‘‘(B) LIMITATION.—The amount of indem10 nification under this subsection shall not exceed 

11 $10,000,000,000 (adjusted not less than once 

12 during each 5-year period following the date of 

13 enactment of this section, in accordance with 

14 the aggregate percentage change in the Con15 sumer Price Index since the previous adjust16 ment under this subparagraph), in the aggre17 gate, for all persons indemnified in connection 

18 with an agreement and for each project, includ19 ing such legal costs as are approved by the Sec20 retary. 

21 ‘‘(6) CONDITIONS OF AGREEMENTS OF INDEM22 NIFICATION.— 

23 ‘‘(A) IN GENERAL.—An agreement of in24 demnification under this subsection may con25 tain such terms as the Secretary considers apVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00159 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 propriate to carry out the purposes of this sec2 tion. 

3 ‘‘(B) ADMINISTRATION.—The agreement 

4 shall provide that, if the Secretary makes a de5 termination the United States will probably be 

6 required to make indemnity payments under the 

7 agreement, the Attorney General— 

8 ‘‘(i) shall collaborate with the recipi9 ent of an award under this subsection; and 

10 ‘‘(ii) may— 

11 ‘‘(I) approve the payment of any 

12 claim under the agreement of indem13 nification; 

14 ‘‘(II) appear on behalf of the re15 cipient; 

16 ‘‘(III) take charge of an action; 

17 and 

18 ‘‘(IV) settle or defend an action. 

19 ‘‘(C) SETTLEMENT OF CLAIMS.— 

20 ‘‘(i) IN GENERAL.—The Attorney 

21 General shall have final authority on behalf 

22 of the United States to settle or approve 

23 the settlement of any claim under this sub24 section on a fair and reasonable basis with 


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1 due regard for the purposes of this sub2 section. 

3 ‘‘(ii) EXPENSES.—The settlement 

4 shall not include expenses in connection 

5 with the claim incurred by the recipient. 

6 ‘‘(h) FEDERAL LAND.— 

7 ‘‘(1) IN GENERAL.—The Secretary concerned 

8 may authorize the siting of a project on Federal 

9 land under the jurisdiction of the Secretary con10 cerned in a manner consistent with applicable laws 

11 and land management plans and subject to such 

12 terms and conditions as the Secretary concerned de13 termines to be necessary. 

14 ‘‘(2) FRAMEWORK FOR GEOLOGICAL CARBON

15 SEQUESTRATION ON PUBLIC LAND.—In determining 

16 whether to authorize a project on Federal land, the 

17 Secretary concerned shall take into account the 

18 framework for geological carbon sequestration on 

19 public land prepared in accordance with section 714 

20 of the Energy Independence and Security Act of 

21 2007 (Public Law 110–140; 121 Stat. 1715). 

22 ‘‘(i) ACCEPTANCE OF TITLE AND LONG-TERM MONI23 TORING.— 

24 ‘‘(1) IN GENERAL.—As a condition of a cooper25 ative agreement under this section, the Secretary 


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1 may accept title to, or transfer of administrative ju2 risdiction from another Federal agency over, any 

3 land or interest in land necessary for the monitoring, 

4 remediation, or long-term stewardship of a project 

5 site. 

6 ‘‘(2) LONG-TERM MONITORING ACTIVITIES.— 

7 After accepting title to, or transfer of, a site closed 

8 in accordance with this section, the Secretary shall 

9 monitor the site and conduct any remediation activi10 ties to ensure the geological integrity of the site and 

11 prevent any endangerment of public health or safety. 

12 ‘‘(3) FUNDING.—There is appropriated to the 

13 Secretary, out of funds of the Treasury not other14 wise appropriated, such sums as are necessary to 

15 carry out paragraph (2).’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) Section 963 of the Energy Policy Act of 

18 2005 (42 U.S.C. 16293) is amended— 

19 (A) by redesignating subsections (a) 

20 through (d) as subsections (b) through (e), re21 spectively; 

22 (B) by inserting before subsection (b) (as 

23 so redesignated) the following: 

24 ‘‘(a) DEFINITIONS.—In this section: 


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1 ‘‘(1) INDUSTRIAL SOURCE.—The term ‘indus2 trial source’ means any source of carbon dioxide that 

3 is not naturally occurring. 

4 ‘‘(2) LARGE-SCALE.—The term ‘large-scale’ 

5 means the injection of over 1,000,000 tons of carbon 

6 dioxide from industrial sources over the lifetime of 

7 the project.’’; 

8 (C) in subsection (b) (as so redesignated), 

9 by striking ‘‘IN GENERAL’’ and inserting ‘‘PRO10 GRAM’’; 

11 (D) in subsection (c) (as so redesignated), 

12 by striking ‘‘subsection (a)’’ and inserting ‘‘sub13 section (b)’’; and 

14 (E) in subsection (d)(3) (as so redesig15 nated), by striking subparagraph (D). 

16 (2) Sections 703(a)(3) and 704 of the Energy 

17 Independence and Security Act of 2007 (42 U.S.C. 

18 17251(a)(3), 17252) are amended by striking ‘‘sec19 tion 963(c)(3) of the Energy Policy Act of 2005 (42 

20 U.S.C. 16293(c)(3))’’ each place it appears and in21 serting ‘‘section 963(d)(3) of the Energy Policy Act 

22 of 2005 (42 U.S.C. 16293(d)(3))’’. 


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1 SEC. 403. LOAN GUARANTEES FOR NUCLEAR POWER AND 

2 OTHER INNOVATIVE SOURCES. 

3 Section 20320(a) of the Continuing Appropriations 

4 Resolution, 2007 (42 U.S.C. 16515(a)) is amended by 

5 striking ‘‘$4,000,000,000’’ and inserting 

6 ‘‘$40,000,000,000’’. 

7 SEC. 404. NUCLEAR ENERGY WORKFORCE. 

8 Section 1101 of the Energy Policy Act of 2005 (42 

9 U.S.C. 16411) is amended— 

10 (1) in subsection (b)(1)— 

11 (A) in subparagraph (A), by striking 

12 ‘‘and’’ at the end; 

13 (B) in subparagraph (B), by striking the 

14 period and inserting ‘‘; and’’; and 

15 (C) by adding at the end the following: 

16 ‘‘(C) nuclear utility and nuclear energy 

17 product and service industries.’’; 

18 (2) by redesignating subsection (d) as sub19 section (e); and 

20 (3) by inserting after subsection (c) the fol21 lowing: 

22 ‘‘(d) WORKFORCE TRAINING.— 

23 ‘‘(1) IN GENERAL.—The Secretary of Labor, in 

24 cooperation with the Secretary, shall promulgate 

25 regulations to implement a program to provide 

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1 pation in the workforce of the nuclear utility and nu2 clear energy products and services industries for 

3 which a shortage is identified or predicted in the re4 port under subsection (b)(2). 

5 ‘‘(2) CONSULTATION.—In carrying out this sub6 section, the Secretary of Labor shall consult with 

7 representatives of the nuclear utility and nuclear en8 ergy products and services industries, including or9 ganized labor organizations and multiemployer asso10 ciations that jointly sponsor apprenticeship pro11 grams that provide training for skills needed in 

12 those industries. 

13 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

14 There are authorized to be appropriated to the Sec15 retary of Labor, working in coordination with the 

16 Secretary and the Secretary of Education to carry 

17 out this subsection $20,000,000 for each of fiscal 

18 years 2012 through 2016.’’. 

19 SEC. 405. INTERAGENCY WORKING GROUP TO PROMOTE 

20 DOMESTIC MANUFACTURING BASE FOR NU21 CLEAR COMPONENTS AND EQUIPMENT. 

22 (a) PURPOSES.—The purposes of this section are— 

23 (1) to increase the competitiveness of the 

24 United States nuclear energy products and services 

25 industries; 


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1 (2) to identify the stimulus or incentives nec2 essary to cause United States manufacturers of nu3 clear energy products to expand manufacturing ca4 pacity; 

5 (3) to facilitate the export of United States nu6 clear energy products and services; 

7 (4) to reduce the trade deficit of the United 

8 States through the export of United States nuclear 

9 energy products and services; 

10 (5) to retain and create nuclear energy manu11 facturing and related service jobs in the United 

12 States; 

13 (6) to integrate the objectives described in para14 graphs (1) through (5), in a manner consistent with 

15 the interests of the United States, into the foreign 

16 policy of the United States; and 

17 (7) to authorize funds for increasing United 

18 States capacity to manufacture nuclear energy prod19 ucts and supply nuclear energy services. 

20 (b) ESTABLISHMENT.— 

21 (1) IN GENERAL.—There is established an 

22 interagency working group (referred to in this sec23 tion as the ‘‘Working Group’’) that, in consultation 

24 with representative industry organizations and man25 ufacturers of nuclear energy products, shall make 


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1 recommendations to coordinate the actions and pro2 grams of the Federal Government in order to pro3 mote increasing domestic manufacturing capacity 

4 and export of domestic nuclear energy products and 

5 services. 

6 (2) COMPOSITION.—The Working Group shall 

7 be composed of— 

8 (A) the Secretary of Energy (or a des9 ignee), who shall serve as Chairperson of the 

10 Working Group; and 

11 (B) representatives of— 

12 (i) the Department of Energy; 

13 (ii) the Department of Commerce; 

14 (iii) the Department of Defense; 

15 (iv) the Department of Treasury; 

16 (v) the Department of State; 

17 (vi) the Environmental Protection 

18 Agency; 

19 (vii) the United States Agency for 

20 International Development; 

21 (viii) the Export-Import Bank of the 

22 United States; 

23 (ix) the Trade and Development 

24 Agency; 


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1 (x) the Small Business Administra2 tion; 

3 (xi) the Office of the United States 

4 Trade Representative; and 

5 (xii) other Federal agencies, as deter6 mined by the President. 

7 (c) DUTIES OF WORKING GROUP.—The Working 

8 Group shall— 

9 (1) not later than 180 days after the date of 

10 enactment of this Act, identify the actions necessary 

11 to promote the safe development and application in 

12 foreign countries of nuclear energy products and 

13 services— 

14 (A) to increase electricity generation from 

15 nuclear energy sources through development of 

16 new generation facilities; 

17 (B) to improve the efficiency, safety, and 

18 reliability of existing nuclear generating facili19 ties through modifications; and 

20 (C) enhance the safe treatment, handling, 

21 storage, and disposal of used nuclear fuel; 

22 (2) not later than 180 days after the date of 

23 enactment of this Act, identify— 

24 (A) mechanisms (including tax stimuli for 

25 investment, loans and loan guarantees, and 


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1 grants) necessary for United States companies 

2 to increase— 

3 (i) the capacity of the companies to 

4 produce or provide nuclear energy products 

5 and services; and 

6 (ii) exports of nuclear energy products 

7 and services; and 

8 (B) administrative or legislative initiatives 

9 that are necessary— 

10 (i) to encourage United States compa11 nies to increase the manufacturing capac12 ity of the companies for nuclear energy 

13 products; 

14 (ii) to provide technical and financial 

15 assistance and support to small and mid16 sized businesses to establish quality assur17 ance programs in accordance with domestic 

18 and international nuclear quality assurance 

19 code requirements; 

20 (iii) to encourage, through financial 

21 incentives, private sector capital invest22 ment to expand manufacturing capacity; 

23 and 

24 (iv) to provide technical assistance 

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1 sized businesses to develop the workforce 

2 necessary to increase manufacturing capac3 ity and meet domestic and international 

4 nuclear quality assurance code require5 ments; 

6 (3) not later than 270 days after the date of 

7 enactment of this Act, submit to Congress a report 

8 that describes the findings of the Working Group 

9 under paragraphs (1) and (2), including rec10 ommendations for new legislative authority, as nec11 essary; and 

12 (4) encourage the agencies represented by mem13 bership in the Working Group— 

14 (A) to provide technical training and edu15 cation for international development personnel 

16 and local users in other countries; 

17 (B) to provide financial and technical as18 sistance to nonprofit institutions that support 

19 the marketing and export efforts of domestic 

20 companies that provide nuclear energy products 

21 and services; 

22 (C) to develop nuclear energy projects in 

23 foreign countries; 

24 (D) to provide technical assistance and 

25 training materials to loan officers of the World 


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1 Bank, international lending institutions, com2 mercial and energy attaches at embassies of the 

3 United States, and other appropriate personnel 

4 in order to provide information about nuclear 

5 energy products and services to foreign govern6 ments or other potential project sponsors; 

7 (E) to support, through financial incen8 tives, private sector efforts to commercialize 

9 and export nuclear energy products and services 

10 in accordance with the subsidy codes of the 

11 World Trade Organization; and 

12 (F) to augment budgets for trade and de13 velopment programs in order to support 

14 prefeasibility or feasibility studies for projects 

15 that use nuclear energy products and services. 

16 (d) PERSONNEL AND SERVICE MATTERS.—The Sec17 retary and the heads of agencies represented by member18 ship in the Working Group shall detail such personnel and 

19 furnish such services to the Working Group, with or with20 out reimbursement, as are necessary to carry out the func21 tions of the Working Group. 

22 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated to the Secretary to carry 

24 out this section $20,000,000 for each of fiscal years 2012 

25 through 2016. 


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1 Subtitle B—Tax Provisions 

2 SEC. 411. SEVEN-YEAR AMORTIZATION FOR CERTAIN SYS3 TEMS INSTALLED ON COAL-FIRED ELECTRIC 

4 GENERATION UNITS. 

5 (a) IN GENERAL.—Subsection (d) of section 169 of 

6 the Internal Revenue Code of 1986 is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(6) SPECIAL RULE FOR SYSTEMS INSTALLED

9 ON COAL-FIRED ELECTRIC GENERATION UNITS.— 

10 ‘‘(A) IN GENERAL.—Any mechanical or 

11 electronic system— 

12 ‘‘(i) which is installed on a coal-fired 

13 electric generation unit after the date of 

14 the enactment of this paragraph, and 

15 ‘‘(ii) which reduces carbon dioxide 

16 emissions per net megawatt hour of elec17 tricity generation by 1 or more of the 

18 means described in subparagraph (B) or 

19 any other means, 

20 shall be treated for purposes of this section as 

21 a new identifiable treatment facility which 

22 abates or controls atmospheric pollution or con23 tamination by removing, altering, disposing, 

24 storing, or preventing the creation or emission 

25 of pollutants, contaminants, wastes, or heat. 


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1 Paragraph (1)(C) of this subsection, and sub2 section (e), shall not apply to any system which 

3 is so treated. 

4 ‘‘(B) MEANS FOR REDUCING EMISSIONS.— 

5 The means described in this subparagraph 

6 are— 

7 ‘‘(i) optimizing combustion, 

8 ‘‘(ii) optimizing sootblowing and heat 

9 transfer, 

10 ‘‘(iii) upgrading steam temperature 

11 control capabilities, 

12 ‘‘(iv) reducing exit gas temperatures 

13 (air heater modifications), 

14 ‘‘(v) predrying low rank coals using 

15 power plant waste heat, 

16 ‘‘(vi) modifying steam turbines or 

17 change the steam path/blading, 

18 ‘‘(vii) replacing single speed motors 

19 with variable speed drives for fans and 

20 pumps, and 

21 ‘‘(viii) improving operational controls, 

22 including neural networks. 

23 ‘‘(C) SPECIAL RULE FOR MINIMUM TAX.— 

24 Section 56(a)(5) shall not apply to property to 

25 which this paragraph applies.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

4 SEC. 412. CREDIT FOR CARBON SEQUESTRATION FROM 

5 COAL FACILITIES. 

6 (a) IN GENERAL.—Subpart E of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 is amended by inserting after section 48D the fol9 lowing new section: 

10 ‘‘SEC. 48E. QUALIFYING CARBON DIOXIDE CAPTURE, 

11 TRANSPORT, AND STORAGE EQUIPMENT 

12 CREDIT. 

13 ‘‘(a) GENERAL RULE.—For purposes of section 46, 

14 the qualifying carbon dioxide capture, transport, and stor15 age equipment credit for any taxable year is an amount 

16 equal to 30 percent of the qualified investment for such 

17 taxable year. 

18 ‘‘(b) QUALIFIED INVESTMENT.— 

19 ‘‘(1) IN GENERAL.—For purposes of subsection 

20 (a), the qualified investment for any taxable year is 

21 the basis of eligible carbon dioxide capture, trans22 port, and storage property placed in service by the 

23 taxpayer during such taxable year which is part of 

24 a qualifying clean coal project— 


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1 ‘‘(A)(i) the construction, reconstruction, or 

2 erection of which is completed by the taxpayer, 

3 or 

4 ‘‘(ii) which is acquired by the taxpayer if 

5 the original use of such property commences 

6 with the taxpayer, and 

7 ‘‘(B) with respect to which depreciation (or 

8 amortization in lieu of depreciation) is allow9 able. 

10 ‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED

11 PROPERTY.—Rules similar to section 48(a)(4) shall 

12 apply for purposes of this section. 

13 ‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI14 TURES RULES MADE APPLICABLE.—Rules similar to 

15 the rules of subsections (c)(4) and (d) of section 46 

16 (as in effect on the day before the enactment of the 

17 Revenue Reconciliation Act of 1990) shall apply for 

18 purposes of this section. 

19 ‘‘(c) DEFINITIONS.—For purposes of this section— 

20 ‘‘(1) QUALIFYING CLEAN COAL PROJECT.— 

21 ‘‘(A) IN GENERAL.—The term ‘qualifying 

22 clean coal project’ means any project if such 

23 project— 

24 ‘‘(i) uses— 


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1 ‘‘(I) gasification technology (as 

2 defined in section 48B(c)(2)), or 

3 ‘‘(II) the processing of coal, bio4 mass, or both 

5 to produce electricity, qualified transpor6 tation fuels, or substitute natural gas, and 

7 ‘‘(ii)(I) is a new project which is de8 signed to meet the requirements of sub9 paragraphs (B), (C), and (D), as applica10 ble, or 

11 ‘‘(II) consists of retrofits to existing 

12 equipment such that the project meets the 

13 requirements of subparagraphs (B), (C), 

14 and (D), as applicable. 

15 ‘‘(B) REQUIREMENTS FOR ELECTRICITY

16 PRODUCTION.— 

17 ‘‘(i) IN GENERAL.—In the case of a 

18 qualifying clean coal project which is used 

19 to produce electricity, the project shall 

20 meet the emission requirement of clause 

21 (ii) and the carbon capture requirement of 

22 clause (iii). 

23 ‘‘(ii) EMISSION REQUIREMENT.—The 

24 requirement of this clause is met if the 

25 project is designed— 


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1 ‘‘(I) to emit carbon dioxide at an 

2 average annual rate of less than 1,100 

3 pounds per net megawatt hour of elec4 trical generation, or 

5 ‘‘(II) such that the carbon diox6 ide emissions of such project are no 

7 greater than half of the average car8 bon dioxide emissions for facilities 

9 producing electricity during 2005 

10 from the same coal rank as such 

11 project, as determined under regula12 tions prescribed by the Secretary in 

13 consultation with the Secretary of En14 ergy and the Administrator of the En15 vironmental Protection Agency. 

16 ‘‘(iii) CARBON CAPTURE REQUIRE17 MENT.—The requirement of this clause is 

18 met— 

19 ‘‘(I) if such unit is among the 

20 first 1,000 megawatts of electric gen21 eration units certified by the Sec22 retary under subsection (e), to cap23 ture and sequester not less than 

24 500,000 metric tons per year of car25 bon dioxide, 


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1 ‘‘(II) if such unit is among the 

2 next 3,000 megawatts of electric gen3 eration units certified by the Sec4 retary under subsection (e), to cap5 ture and sequester not less than 

6 1,000,000 metric tons per year of car7 bon dioxide, and 

8 ‘‘(III) for any other unit, to cap9 ture and sequester not less than 

10 2,000,000 metric tons per year of car11 bon dioxide. 

12 ‘‘(C) REQUIREMENTS FOR TRANSPOR13 TATION FUELS.— 

14 ‘‘(i) IN GENERAL.—In the case of any 

15 qualifying clean coal project which is used 

16 to produce qualified transportation fuels, 

17 such project shall be designed such that 

18 the cycle-wide carbon dioxide emissions for 

19 such fuels are no greater than half of the 

20 average cycle-wide carbon dioxide emis21 sions for comparable products during 

22 2005, as determined under regulations pre23 scribed by the Secretary in consultation 

24 with the Secretary of Energy and the AdVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00178 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 ministrator of the Environmental Protec2 tion Agency. 

3 ‘‘(ii) CYCLE-WIDE CARBON DIOXIDE

4 EMISSIONS.—For purposes of this subpara5 graph, the term ‘cycle-wide carbon dioxide 

6 emissions’ means the total emissions of 

7 carbon dioxide in production and consump8 tion of a product. 

9 ‘‘(iii) COMPARABLE PRODUCTS.—For 

10 purposes of this subparagraph, the term 

11 ‘comparable product’ means any transpor12 tation fuel derived from crude oil or coal. 

13 ‘‘(D) REQUIREMENTS FOR SUBSTITUTE

14 NATURAL GAS.—In the case of any qualifying 

15 clean coal project which is used to produce sub16 stitute natural gas, such project shall be de17 signed such that the cycle-wide carbon dioxide 

18 emissions for such gas is no greater than half 

19 of the average cycle-wide carbon dioxide emis20 sions for such gas during 2005, as determined 

21 under regulations prescribed by the Secretary in 

22 consultation with the Secretary of Energy and 

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1 sions’ means the total emissions of carbon diox2 ide in production and consumption of a prod3 uct. 

4 ‘‘(2) ELIGIBLE CARBON DIOXIDE CAPTURE, 

5 TRANSPORT, AND STORAGE PROPERTY.—The term 

6 ‘eligible carbon dioxide capture, transport, and stor7 age property’ means any property— 

8 ‘‘(A) which is used to capture, transport, 

9 or store carbon dioxide emitted at a qualifying 

10 clean coal project, including equipment used to 

11 separate and pressurize carbon dioxide for 

12 transport (including equipment to operate such 

13 equipment), 

14 ‘‘(B)(i) the construction, reconstruction, or 

15 erection of which is completed by the taxpayer, 

16 or 

17 ‘‘(ii) which is acquired by the taxpayer if 

18 the original use of such property commences 

19 with the taxpayer, and 

20 ‘‘(C) with respect to which depreciation (or 

21 amortization in lieu of depreciation) is allow22 able. 

23 ‘‘(3) QUALIFIED TRANSPORTATION FUEL.—The 

24 term ‘qualified transportation fuel’ means any liquid 

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1 newable biomass (as defined in section 9001(12) of 

2 the Food, Conservation, and Energy Act of 2008). 

3 ‘‘(4) COAL.—The term ‘coal’ means bituminous 

4 coal, subbituminous coal, and lignite. 

5 ‘‘(d) AGGREGATE CREDITS.— 

6 ‘‘(1) IN GENERAL.—No credit shall be allowed 

7 under this section with respect to any qualifying 

8 clean coal project unless such project is certified by 

9 the Secretary under subsection (e). 

10 ‘‘(2) LIMITATION ON PROJECTS CERTIFIED.— 

11 The Secretary may certify under subsection (e) no 

12 more than— 

13 ‘‘(A) 20 projects described in subsection 

14 (c)(1)(A)(ii)(I), and 

15 ‘‘(B) 20 projects described in subsection 

16 (c)(1)(A)(ii)(II). 

17 ‘‘(e) CERTIFICATION.— 

18 ‘‘(1) CERTIFICATION PROCESS.—The Secretary, 

19 in consultation with the Secretary of Energy and the 

20 Administrator of the Environmental Protection 

21 Agency, shall establish a certification process to de22 termine if a project meets all criteria and other re23 quirements to be recognized as a qualifying clean 

24 coal project. 


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1 ‘‘(2) FEEDSTOCK REQUIREMENTS.—After the 

2 date of publication by the Secretary of the final cer3 tification process referred to in paragraph (1), the 

4 Secretary shall allocate the limitation in subsection 

5 (d)(2) in equal amounts among— 

6 ‘‘(A) projects using bituminous coal as a 

7 primary feedstock, 

8 ‘‘(B) projects using subbituminous coal as 

9 a primary feedstock, and 

10 ‘‘(C) projects using lignite as a primary 

11 feedstock. 

12 ‘‘(3) REDISTRIBUTION.—The Secretary may re13 allocate credits if the Secretary determines that 

14 there is an insufficient quantity of qualifying appli15 cations for certification, pending at the time of re16 view, to comply with the feedstock requirements of 

17 paragraph (2). The Secretary may conduct an addi18 tional program for applications for certification and 

19 reallocate available credits without regard to the 

20 feedstock requirement which was not satisfied as a 

21 result of insufficient applications for certification. 

22 ‘‘(4) REQUIREMENTS FOR APPLICATIONS FOR

23 CERTIFICATION.—An application for certification 

24 shall contain such information as the Secretary may 

25 require in order to make a determination to accept 


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1 or reject the application and establish applicable 

2 credit entitlement. Any information contained in the 

3 application shall be protected as provided in section 

4 552(b)(4) of title 5, United States Code. 

5 ‘‘(f) DENIAL OF DOUBLE BENEFIT.—No credit shall 

6 be allowed under this section for any property for which 

7 credit is allowed under sections 48A, 48B, or 48C.’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Section 46 of such Code (relating to amount 

10 of credit) is amended by striking ‘‘and’’ at the end 

11 of paragraph (5), by striking the period at the end 

12 of paragraph (6) and inserting ‘‘, and’’, and by add13 ing at the end the following new paragraph: 

14 ‘‘(7) the qualifying carbon dioxide capture, 

15 transport, and storage equipment credit.’’. 

16 (2) Subparagraph (C) of section 49(a)(1) of 

17 such Code is amended by striking ‘‘and’’ at the end 

18 of clause (v), by striking the period at the end of 

19 clause (vi) and inserting ‘‘, and’’, and by adding 

20 after clause (vi) the following new clause: 

21 ‘‘(vii) the basis of any qualifying car22 bon dioxide capture, transport, and storage 

23 equipment under section 48E.’’. 

24 (3) The table of sections for subpart E of part 

25 IV of subchapter A of chapter 1 of such Code is 


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1 amended by inserting after the item relating to sec2 tion 48D the following new item: 

‘‘Sec. 48E. Qualifying carbon dioxide capture, transport, and storage equipment credit.’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to periods after the date of the 

5 enactment of this Act under rules similar to the rules of 

6 section 48(m) of the Internal Revenue Code of 1986 (as 

7 in effect on the day before the date of the enactment of 

8 the Revenue Reconciliation Act of 1990). 

9 SEC. 413. MODIFICATIONS TO CREDIT FOR CARBON DIOX10 IDE SEQUESTRATION. 

11 (a) CREDIT ALLOWED FOR USES OTHER THAN TER12 TIARY INJECTANTS.— 

13 (1) IN GENERAL.—Paragraph (2) of section 

14 45Q(a) of the Internal Revenue Code of 1986 is 

15 amended to read as follows: 

16 ‘‘(2) $10 per metric ton of qualified carbon di17 oxide which is— 

18 ‘‘(A) captured by the taxpayer at a quali19 fied facility, and 

20 ‘‘(B) either— 

21 ‘‘(i) used as a tertiary injectant in a 

22 qualified enhanced oil or natural gas recov23 ery project and disposed of in secure geo24 logical storage, or 


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1 ‘‘(ii) converted to a stable form in 

2 which such carbon dioxide is securely and 

3 permanently sequestered and used for a 

4 beneficial economic purpose.’’. 

5 (2) CREDIT ALLOWED FOR OTHER SECURE

6 STORAGE.—Subparagraph (B) of section 45Q(a)(1) 

7 of such Code is amended— 

8 (A) by striking ‘‘by the taxpayer’’ each 

9 place it appears; and 

10 (B) by inserting ‘‘or converted to a stable 

11 form in which it is securely and permanently se12 questered’’ after ‘‘secure geological storage’’. 

13 (3) SECURELY AND PERMANENTLY SEQUES14 TERED.—Paragraph (2) of section 45Q(d) is amend15 ed— 

16 (A) by striking all that precedes ‘‘in con17 sultation with the Administrator’’ and inserting 

18 the following: 

19 ‘‘(2) SECURE GEOLOGICAL STORAGE AND PER20 MANENT SEQUESTRATION.— 

21 ‘‘(A) SECURE GEOLOGICAL STORAGE.—The 

22 Secretary’’; 

23 (B) by striking ‘‘(2)(C)’’ and inserting 

24 ‘‘(2)(B)(i)’’; and 


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1 (C) by adding at the end the following new 

2 subparagraph: 

3 ‘‘(B) SECURE PERMANENT SEQUESTRA4 TION.—The Secretary, in consultation with the 

5 Administrator of the Environmental Protection 

6 Agency, shall establish regulations for deter7 mining adequate security measures for the per8 manent sequestration of carbon dioxide for uses 

9 described in paragraph (1)(B) or (2)(B)(ii) of 

10 subsection (a) such that the carbon dioxide does 

11 not escape into the atmosphere.’’. 

12 (4) CONFORMING AMENDMENT.—Subparagraph 

13 (B) of section 45Q(1) of such Code is amended by 

14 inserting ‘‘or through secure and permanent seques15 tration’’ after ‘‘secure geological storage’’. 

16 (b) MODIFICATION TO DEFINITION OF QUALIFIED

17 CARBON DIOXIDE.—Subparagraph (A) of section 

18 45Q(b)(1) of the Internal Revenue Code of 1986 is 

19 amended by striking ‘‘otherwise’’ and inserting ‘‘, but for 

20 the capture and sequestration or conversion to a stable 

21 form,’’. 

22 (c) PERSON ENTITLED TO CREDIT.— 

23 (1) IN GENERAL.—Paragraph (5) of section 

24 45Q(d) of the Internal Revenue Code of 1986 is 

25 amended to read as follows: 


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1 ‘‘(5) CREDIT ATTRIBUTABLE TO TAXPAYER.— 

2 ‘‘(A) IN GENERAL.—Except as provided in 

3 subparagraph (B), any credit under this section 

4 shall be attributable to the person that captures 

5 and physically or contractually ensures the dis6 posal of or the use as a tertiary injectant of the 

7 qualified carbon dioxide. 

8 ‘‘(B) TRANSFER OF CREDIT.—A taxpayer 

9 may transfer the credit under subsection (a) to 

10 the person responsible for disposing, converting, 

11 or using the qualified carbon dioxide. Such 

12 transfer shall only be effective if the taxpayer 

13 submits to the Secretary, at such time and in 

14 such manner as the Secretary prescribes, a 

15 statement concerning the transfer which con16 tains— 

17 ‘‘(i) the name, address, and taxpayer 

18 identification number of the taxpayer 

19 transferring the credit, 

20 ‘‘(ii) the name, address, and taxpayer 

21 identification number of the taxpayer re22 ceiving the transfer, and 

23 ‘‘(iii) such other information relating 

24 to such transfer as the Secretary may re25 quire.’’. 


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1 (2) RULES.—Not later than 180 days after the 

2 date of the enactment of this Act, the Secretary of 

3 the Treasury shall prescribe rules relating to the 

4 transfer of credits under section 45Q of the Internal 

5 Revenue Code of 1986 pursuant to subparagraph 

6 (B) section 45Q(d)(5) of such Code, as added by 

7 paragraph (1). 

8 (d) EXTENSION OF CREDIT.— 

9 (1) CREDIT ALLOWED FOR 10-YEAR CREDIT PE10 RIOD.—Paragraphs (1)(A) and (2)(A) of section 

11 45Q(a) of the Internal Revenue Code of 1986 are 

12 each amended by inserting ‘‘during the 10-year pe13 riod beginning on the date the carbon capture equip14 ment described in subsection (c)(2) is placed in serv15 ice’’ before the comma at the end. 

16 (2) TERMINATION.—Paragraph (2) of section 

17 45Q(c) of such Code is amended by inserting ‘‘by 

18 the taxpayer before January 1, 2018’’ before the 

19 comma at the end. 

20 (3) CONFORMING AMENDMENT.—Section 45Q 

21 of such Code is amended by striking subsection (e). 

22 (e) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to carbon dioxide captured after 

24 the date of the enactment of this Act. 


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1 SEC. 414. CLEAN ENERGY COAL BONDS. 

2 (a) IN GENERAL.— 

3 (1) TREATMENT AS TAX CREDIT BONDS.—Sub4 part I of part IV of subchapter A of chapter 1 of 

5 the Internal Revenue Code of 1986 is amended by 

6 adding at the end the following new section: 

7 ‘‘SEC. 54G. CLEAN ENERGY COAL BONDS. 

8 ‘‘(a) CLEAN ENERGY COAL BOND.—For purposes of 

9 this subchapter— 

10 ‘‘(1) IN GENERAL.—The term ‘clean energy 

11 coal bond’ means any bond issued as part of an 

12 issue if— 

13 ‘‘(A) the bond is issued by a qualified 

14 issuer pursuant to an allocation by the Sec15 retary to such issuer of a portion of the na16 tional clean energy coal bond limitation under 

17 subsection (b)(2), 

18 ‘‘(B) 100 percent of the available project 

19 proceeds from the sale of such issue are to be 

20 used for capital expenditures incurred by quali21 fied borrowers for 1 or more qualified projects, 

22 ‘‘(C) the qualified issuer designates such 

23 bond for purposes of this section and the bond 

24 is in registered form, and 


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1 ‘‘(D) in lieu of the requirements of section 

2 54A(d)(2), the issue meets the requirements of 

3 subsection (c). 

4 ‘‘(2) QUALIFIED PROJECT; SPECIAL USE

5 RULES.— 

6 ‘‘(A) IN GENERAL.—The term ‘qualified 

7 project’ means a qualified clean coal project (as 

8 defined in subsection (f)(1)) placed in service by 

9 a qualified borrower. 

10 ‘‘(B) REFINANCING RULES.—For purposes 

11 of paragraph (1)(B), a qualified project may be 

12 refinanced with proceeds of a clean energy coal 

13 bond only if the indebtedness being refinanced 

14 (including any obligation directly or indirectly 

15 refinanced by such indebtedness) was originally 

16 incurred by a qualified borrower after the date 

17 of the enactment of this section. 

18 ‘‘(C) REIMBURSEMENT.—For purposes of 

19 paragraph (1)(B), a clean energy coal bond 

20 may be issued to reimburse a qualified borrower 

21 for amounts paid after the date of the enact22 ment of this section with respect to a qualified 

23 project, but only if— 

24 ‘‘(i) prior to the payment of the origi25 nal expenditure, the qualified borrower deVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00190 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 clared its intent to reimburse such expendi2 ture with the proceeds of a clean energy 

3 coal bond, 

4 ‘‘(ii) not later than 60 days after pay5 ment of the original expenditure, the quali6 fied issuer adopts an official intent to re7 imburse the original expenditure with such 

8 proceeds, and 

9 ‘‘(iii) reimbursement is not made later 

10 than 18 months after the date the original 

11 expenditure is paid or the date the project 

12 is placed in service or abandoned, but in 

13 no event more than 3 years after the origi14 nal expenditure is paid. 

15 ‘‘(D) TREATMENT OF CHANGES IN USE.— 

16 For purposes of paragraph (1)(B), the proceeds 

17 of an issue shall not be treated as used for a 

18 qualified project to the extent that a qualified 

19 borrower takes any action within its control 

20 which causes such proceeds not to be used for 

21 a qualified project. The Secretary shall pre22 scribe regulations specifying remedial actions 

23 that may be taken (including conditions to tak24 ing such remedial actions) to prevent an action 

25 described in the preceding sentence from causVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00191 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 ing a bond to fail to be a clean energy coal 

2 bond. 

3 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES4 IGNATED.— 

5 ‘‘(1) NATIONAL LIMITATION.—There is a na6 tional clean energy coal bond limitation of 

7 $5,000,000,000. 

8 ‘‘(2) ALLOCATION BY SECRETARY.—The Sec9 retary shall allocate the amount described in para10 graph (1) among qualified projects in such manner 

11 as the Secretary determines appropriate. 

12 ‘‘(c) SPECIAL RULES RELATING TO EXPENDI13 TURES.— 

14 ‘‘(1) IN GENERAL.—An issue shall be treated as 

15 meeting the requirements of this subsection if, as of 

16 the date of issuance, the qualified issuer reasonably 

17 expects— 

18 ‘‘(A) 100 percent or more of the available 

19 project proceeds from the sale of the issue are 

20 to be spent for 1 or more qualified projects 

21 within the 5-year period beginning on the date 

22 of issuance of the clean energy bond, 

23 ‘‘(B) a binding commitment with a third 

24 party to spend at least 10 percent of such avail25 able project proceeds from the sale of the issue 


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1 will be incurred within the 6-month period be2 ginning on the date of issuance of the clean en3 ergy bond or, in the case of a clean energy bond 

4 the available project proceeds of which are to be 

5 loaned to 2 or more qualified borrowers, such 

6 binding commitment will be incurred within the 

7 6-month period beginning on the date of the 

8 loan of such proceeds to a qualified borrower, 

9 and 

10 ‘‘(C) such projects will be completed with 

11 due diligence and the available project proceeds 

12 from the sale of the issue will be spent with due 

13 diligence. 

14 ‘‘(2) EXTENSION OF PERIOD.—Upon submis15 sion of a request prior to the expiration of the period 

16 described in paragraph (1)(A), the Secretary may 

17 extend such period if the qualified issuer establishes 

18 that the failure to satisfy the 5-year requirement is 

19 due to reasonable cause and the related projects will 

20 continue to proceed with due diligence. 

21 ‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT

22 OF BOND PROCEEDS WITHIN 5 YEARS.—To the ex23 tent that less than 100 percent of the available 

24 project proceeds of such issue are expended by the 

25 close of the 5-year period beginning on the date of 


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1 issuance (or if an extension has been obtained under 

2 paragraph (2), by the close of the extended period), 

3 the qualified issuer shall redeem all of the non4 qualified bonds within 90 days after the end of such 

5 period. For purposes of this paragraph, the amount 

6 of the nonqualified bonds required to be redeemed 

7 shall be determined in the same manner as under 

8 section 142. 

9 ‘‘(d) REDUCED CREDIT AMOUNT.—The annual credit 

10 determined under section 54A(b) with respect to any clean 

11 coal energy bond shall be 70 percent of the amount so 

12 determined without regard to this subsection. 

13 ‘‘(e) COOPERATIVE ELECTRIC COMPANY; QUALIFIED

14 ENERGY TAX CREDIT BOND LENDER; GOVERNMENTAL

15 BODY; QUALIFIED BORROWER.—For purposes of this sec16 tion— 

17 ‘‘(1) COOPERATIVE ELECTRIC COMPANY.—The 

18 term ‘cooperative electric company’ means a mutual 

19 or cooperative electric company described in section 

20 501(c)(12) or section 1381(a)(2)(C), or a not-for21 profit electric utility which has received a loan or 

22 loan guarantee under the Rural Electrification Act. 

23 ‘‘(2) CLEAN ENERGY BOND LENDER.—The 

24 term ‘clean energy bond lender’ means a lender 

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1 standing loans to, 100 or more cooperative electric 

2 companies and is in existence on February 1, 2002, 

3 and shall include any affiliated entity which is con4 trolled by such lender. 

5 ‘‘(3) PUBLIC POWER ENTITY.—The term ‘public 

6 power entity’ means a State utility with a service ob7 ligation, as such terms are defined in section 217 of 

8 the Federal Power Act (as in effect on the date of 

9 enactment of this paragraph). 

10 ‘‘(4) QUALIFIED ISSUER.—The term ‘qualified 

11 issuer’ means— 

12 ‘‘(A) a clean energy bond lender, 

13 ‘‘(B) a cooperative electric company, or 

14 ‘‘(C) a public power entity. 

15 ‘‘(5) QUALIFIED BORROWER.—The term ‘quali16 fied borrower’ means— 

17 ‘‘(A) a mutual or cooperative electric com18 pany described in section 501(c)(12) or 

19 1381(a)(2)(C), or 

20 ‘‘(B) a public power entity. 

21 ‘‘(f) SPECIAL RULES RELATING TO POOL BONDS.— 

22 No portion of a pooled financing bond may be allocable 

23 to any loan unless the borrower has entered into a written 

24 loan commitment for such portion prior to the issue date 

25 of such issue. 


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1 ‘‘(g) OTHER DEFINITIONS AND SPECIAL RULES.— 

2 For purposes of this section— 

3 ‘‘(1) QUALIFIED CLEAN COAL PROJECT.—For 

4 purposes of this section, the term ‘qualified clean 

5 coal project’ means— 

6 ‘‘(A) an atmospheric pollution control facil7 ity (within the meaning of section 169(d)(6)), 

8 ‘‘(B) a qualifying clean coal project (within 

9 the meaning of section 48E(c)(1)), or 

10 ‘‘(C) a qualified facility (within the mean11 ing of section 45Q(c)). 

12 ‘‘(2) POOLED FINANCING BOND.—The term 

13 ‘pooled financing bond’ shall have the meaning given 

14 such term by section 149(f)(4)(A).’’. 

15 (2) BONDS NOT SUBJECT TO MATURITY LIMITA16 TION.—Paragraph (5) of section 54A(d) of such 

17 Code is amended by adding at the end the following 

18 new subparagraph: 

19 ‘‘(C) SPECIAL RULE FOR CLEAN ENERGY

20 COAL BONDS.—The requirements of this para21 graph shall not apply to a clean energy coal 

22 bond under section 54G.’’. 

23 (3) CONFORMING AMENDMENTS.— 

24 (A) Paragraph (1) of section 54A(d) of the 

25 Internal Revenue Code of 1986 is amended by 


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1 striking ‘‘or’’ at the end of subparagraph (D), 

2 by inserting ‘‘or’’ at the end of subparagraph 

3 (E), and by inserting after subparagraph (E) 

4 the following new subparagraph: 

5 ‘‘(F) a clean energy coal bond,’’. 

6 (B) The table of sections for subpart I of 

7 part IV of subchapter A of chapter 1 of the In8 ternal Revenue Code of 1986 is amended by 

9 adding at the end the following new item: 

‘‘Sec. 54G. Clean energy coal bonds.’’. 

10 (b) BONDS TREATED AS SPECIFIED TAX CREDIT

11 BONDS.— 

12 (1) IN GENERAL.—Section 6431(f)(3)(A) of the 

13 Internal Revenue Code of 1986 is amended by strik14 ing ‘‘or’’ at the end of clause (iii), by striking ‘‘and’’ 

15 at the end of clause (iv) and inserting ‘‘or’’, and by 

16 adding at the end the following new clause: 

17 ‘‘(v) a clean energy coal bond (as de18 fined in section 54G), and’’. 

19 (2) SPECIAL RULE.—Paragraph (2) of section 

20 6431(f) of such Code is amended— 

21 (A) by striking ‘‘clause (i) or (ii)’’ and in22 serting ‘‘clause (i), (ii), or (v)’’; and 

23 (B) by striking the heading and inserting 

24 ‘‘SPECIAL RULE FOR CERTAIN BONDS’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to bonds issued after the date of 

3 the enactment of this Act. 

4 SEC. 415. NEW CLEAN RENEWABLE ENERGY BONDS. 

5 (a) IN GENERAL.—Subsection (c) of section 54C of 

6 the Internal Revenue Code of 1986 is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(5) SECOND ADDITIONAL LIMITATION.—Sub9 ject to paragraph (4), the national new clean renew10 able energy bond limitation shall be increased by 

11 $1,600,000,000. Such increase shall be allocated by 

12 the Secretary consistent with the rules of para13 graphs (2) and (3).’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply to allocations after December 31, 

16 2010. 

17 SEC. 416. SEVEN-YEAR ACCELERATED DEPRECIATION FOR 

18 NEW NUCLEAR POWER FACILITIES. 

19 (a) IN GENERAL.—Subparagraph (C) of section 

20 168(e)(3) of the Internal Revenue Code of 1986 (relating 

21 to 7-year property) is amended— 

22 (1) by striking ‘‘and’’ at the end of clause (iv); 

23 (2) by redesignating clause (v) as clause (vi); 

24 and 


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1 (3) by inserting after clause (iv) the following 

2 new clause: 

3 ‘‘(v) any qualified nuclear power facil4 ity the original use of which commences 

5 with the taxpayer.’’. 

6 (b) QUALIFIED NUCLEAR POWER FACILITY.—Sec7 tion 168(e) of the Internal Revenue Code of 1986 is 

8 amended by adding at the end the following new para9 graph: 

10 ‘‘(9) QUALIFIED NUCLEAR POWER FACILITY.— 

11 The term ‘qualified nuclear power facility’ means an 

12 advanced nuclear facility (as defined in section 

13 45J(d)(2))— 

14 ‘‘(A) which, when placed in service, will 

15 use nuclear power to produce electricity, 

16 ‘‘(B) the construction of which is approved 

17 by the Nuclear Regulatory Commission on or 

18 before December 31, 2013, and 

19 ‘‘(C) which is placed in service before Jan20 uary 1, 2021.’’. 

21 (c) CONFORMING AMENDMENT.—Section 

22 168(e)(3)(E)(vii) of the Internal Revenue Code of 1986 

23 is amended by inserting ‘‘and not described in subpara24 graph (C)(v) of this paragraph’’ after ‘‘section 

25 1245(a)(3)’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service in 

3 taxable years beginning after the date of enactment of this 

4 Act. 

5 SEC. 417. LONG TERM EXTENSION OF RENEWABLE ELEC6 TRICITY PRODUCTION CREDIT. 

7 Subsection (d) of section 45 of the Internal Revenue 

8 Code of 1986 is amended— 

9 (1) by striking ‘‘January 1, 2013’’ in paragraph 

10 (1) and inserting ‘‘January 1, 2017’’; and 

11 (2) by striking ‘‘January 1, 2014’’ each place 

12 it appears in paragraphs (2), (3), (4), (6), (7), (9), 

13 and (11) and inserting ‘‘January 1, 2017’’. 

14 TITLE V—DOMESTIC ENERGY 

15 DEPLOYMENT 

16 Subtitle A—Clean Energy 

17 Financing 

18 SEC. 501. PURPOSE. 

19 The purpose of this subtitle is to promote the domes20 tic development and deployment of clean energy tech21 nologies required for the 21st century through the im22 provement of existing programs and the establishment of 

23 a self-sustaining Clean Energy Deployment Administra24 tion that will provide for an attractive investment environ25 ment through partnership with and support of the private 


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1 capital market in order to promote access to affordable 

2 financing for accelerated and widespread deployment of— 

3 (1) clean energy technologies; 

4 (2) advanced or enabling energy infrastructure 

5 technologies; 

6 (3) energy efficiency technologies in residential, 

7 commercial, and industrial applications, including 

8 end-use efficiency in buildings; and 

9 (4) manufacturing technologies for any of the 

10 technologies or applications described in this section. 

11 SEC. 502. DEFINITIONS. 

12 In this subtitle: 

13 (1) ADMINISTRATION.—The term ‘‘Administra14 tion’’ means the Clean Energy Deployment Adminis15 tration established by section 505. 

16 (2) ADMINISTRATOR.—The term ‘‘Adminis17 trator’’ means the Administrator of the Administra18 tion. 

19 (3) ADVISORY COUNCIL.—The term ‘‘Advisory 

20 Council’’ means the Energy Technology Advisory 

21 Council of the Administration. 

22 (4) BREAKTHROUGH TECHNOLOGY.—The term 

23 ‘‘breakthrough technology’’ means a clean energy 

24 technology that— 


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1 (A) presents a significant opportunity to 

2 advance the goals developed under section 504, 

3 as assessed under the methodology established 

4 by the Advisory Council; but 

5 (B) has generally not been considered a 

6 commercially ready technology as a result of 

7 high perceived technology risk or other similar 

8 factors. 

9 (5) CLEAN ENERGY TECHNOLOGY.—The term 

10 ‘‘clean energy technology’’ means a technology re11 lated to the production, use, transmission, storage, 

12 control, or conservation of energy that will— 

13 (A) reduce the need for additional energy 

14 supplies by using existing energy supplies with 

15 greater efficiency or by transmitting, distrib16 uting, or transporting energy with greater effec17 tiveness through the infrastructure of the 

18 United States; 

19 (B) diversify the sources of energy supply 

20 of the United States to strengthen energy secu21 rity and to increase supplies with a favorable 

22 balance of environmental effects if the entire 

23 technology system is considered; or 

24 (C) contribute to a stabilization of atmos25 pheric greenhouse gas concentrations through 


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1 reduction, avoidance, or sequestration of en2 ergy-related emissions. 

3 (6) COST.—The term ‘‘cost’’ has the meaning 

4 given the term in section 502 of the Federal Credit 

5 Reform Act of 1990 (2 U.S.C. 661a). 

6 (7) DIRECT LOAN.—The term ‘‘direct loan’’ has 

7 the meaning given the term in section 502 of the 

8 Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 

9 (8) FUND.—The term ‘‘Fund’’ means the Clean 

10 Energy Investment Fund established by section 

11 503(a). 

12 (9) LOAN GUARANTEE.—The term ‘‘loan guar13 antee’’ has the meaning given the term in section 

14 502 of the Federal Credit Reform Act of 1990 (2 

15 U.S.C. 661a). 

16 (10) NATIONAL LABORATORY.—The term ‘‘Na17 tional Laboratory’’ has the meaning given the term 

18 in section 2 of the Energy Policy Act of 2005 (42 

19 U.S.C. 15801). 

20 (11) SECRETARY.—The term ‘‘Secretary’’ 

21 means the Secretary of Energy. 

22 (12) SECURITY.—The term ‘‘security’’ has the 

23 meaning given the term in section 2 of the Securities 

24 Act of 1933 (15 U.S.C. 77b). 

25 (13) STATE.—The term ‘‘State’’ means— 


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1 (A) a State; 

2 (B) the District of Columbia; 

3 (C) the Commonwealth of Puerto Rico; 

4 and 

5 (D) any other territory or possession of the 

6 United States. 

7 (14) TECHNOLOGY RISK.—The term ‘‘tech8 nology risk’’ means the risks during construction or 

9 operation associated with the design, development, 

10 and deployment of clean energy technologies (includ11 ing the cost, schedule, performance, reliability and 

12 maintenance, and accounting for the perceived risk), 

13 from the perspective of commercial lenders, that 

14 may be increased as a result of the absence of ade15 quate historical construction, operating, or perform16 ance data from commercial applications of the tech17 nology. 

18 SEC. 503. IMPROVEMENTS TO EXISTING PROGRAMS. 

19 (a) CLEAN ENERGY INVESTMENT FUND.— 

20 (1) ESTABLISHMENT.—There is established in 

21 the Treasury of the United States a revolving fund, 

22 to be known as the ‘‘Clean Energy Investment 

23 Fund’’, consisting of— 

24 (A) such amounts as have been appro25 priated for administrative expenses to carry out 


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1 title XVII of the Energy Policy Act of 2005 (42 

2 U.S.C. 16511 et seq.); 

3 (B) such amounts as are deposited in the 

4 Fund under this subtitle and amendments made 

5 by this subtitle; and 

6 (C) such sums as may be appropriated to 

7 supplement the Fund. 

8 (2) EXPENDITURES FROM FUND.— 

9 (A) IN GENERAL.—Notwithstanding sec10 tion 1705(e) of the Energy Policy Act of 2005 

11 (42 U.S.C. 16516(e)), amounts in the Fund 

12 shall be available to the Secretary for obligation 

13 without fiscal year limitation, to remain avail14 able until expended. 

15 (B) ADMINISTRATIVE EXPENSES.— 

16 (i) FEES.—Fees collected for adminis17 trative expenses shall be available without 

18 limitation to cover applicable expenses. 

19 (ii) FUND.—To the extent that ad20 ministrative expenses are not reimbursed 

21 through fees, an amount not to exceed 1.5 

22 percent of the amounts in the Fund as of 

23 the beginning of each fiscal year shall be 

24 available to pay the administrative ex25 penses for the fiscal year necessary to 


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1 carry out title XVII of the Energy Policy 

2 Act of 2005 (42 U.S.C. 16511 et seq.). 

3 (3) TRANSFERS OF AMOUNTS.— 

4 (A) IN GENERAL.—The amounts required 

5 to be transferred to the Fund under this sub6 section shall be transferred at least monthly 

7 from the general fund of the Treasury to the 

8 Fund on the basis of estimates made by the 

9 Secretary of the Treasury. 

10 (B) CASH FLOWS.—Cash flows associated 

11 with costs of the Fund described in section 

12 502(5)(B) of the Federal Credit Reform Act of 

13 1990 (2 U.S.C. 661a(5)(B)) shall be trans14 ferred to appropriate credit accounts. 

15 (C) ADJUSTMENTS.—Proper adjustment 

16 shall be made in amounts subsequently trans17 ferred to the extent prior estimates were in ex18 cess of or less than the amounts required to be 

19 transferred. 

20 (b) REVISIONS TO LOAN GUARANTEE PROGRAM AU21 THORITY.— 

22 (1) DEFINITION OF COMMERCIAL TECH23 NOLOGY.—Section 1701(1) of the Energy Policy Act 

24 of 2005 (42 U.S.C. 16511(1)) is amended by strik25 ing subparagraph (B) and inserting the following: 


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1 ‘‘(B) EXCLUSION.—The term ‘commercial 

2 technology’ does not include a technology if the 

3 sole use of the technology is in connection 

4 with— 

5 ‘‘(i) a demonstration project; or 

6 ‘‘(ii) a project for which the Secretary 

7 approved a loan guarantee.’’. 

8 (2) SPECIFIC APPROPRIATION OR CONTRIBU9 TION.—Section 1702 of the Energy Policy Act of 

10 2005 (42 U.S.C. 16512) is amended by striking sub11 section (b) and inserting the following: 

12 ‘‘(b) SPECIFIC APPROPRIATION OR CONTRIBU13 TION.— 

14 ‘‘(1) IN GENERAL.—No guarantee shall be 

15 made unless sufficient amounts to account for the 

16 cost are available— 

17 ‘‘(A) in unobligated balances within the 

18 Clean Energy Investment Fund established 

19 under section 503(a) of the Fulfilling U.S. En20 ergy Leadership Act of 2011; 

21 ‘‘(B) as a payment from the borrower and 

22 the payment is deposited in the Clean Energy 

23 Investment Fund; or 


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1 ‘‘(C) in any combination of balances and 

2 payments described in subparagraphs (A) and 

3 (B), respectively. 

4 ‘‘(2) LIMITATION.—The source of payments re5 ceived from a borrower under paragraph (1)(B) shall 

6 not be a loan or other debt obligation that is made 

7 or guaranteed by the Federal Government. 

8 ‘‘(3) RELATION TO OTHER LAWS.—Section 

9 504(b) of the Federal Credit Reform Act of 1990 (2 

10 U.S.C. 661c(b)) shall not apply to a loan or loan 

11 guarantee under this section.’’. 

12 (3) SUBROGATION.—Section 1702(g)(2) of the 

13 Energy Policy Act of 2005 (42 U.S.C. 16512(g)(2)) 

14 is amended by striking subparagraphs (B) and (C) 

15 and inserting the following: 

16 ‘‘(B) SUPERIORITY OF RIGHTS.—Except as 

17 provided in subparagraph (C), the rights of the 

18 Secretary, with respect to any property ac19 quired pursuant to a guarantee or related 

20 agreements, shall be superior to the rights of 

21 any other person with respect to the property. 

22 ‘‘(C) TERMS AND CONDITIONS.—A guar23 antee agreement shall include such detailed 

24 terms and conditions as the Secretary deter25 mines appropriate to— 


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1 ‘‘(i) protect the interests of the United 

2 States in the case of default; 

3 ‘‘(ii) have available all the patents and 

4 technology necessary for any person se5 lected, including the Secretary, to complete 

6 and operate the project; 

7 ‘‘(iii) provide for sharing the proceeds 

8 received from the sale of project assets 

9 with other creditors or control the disposi10 tion of project assets if necessary to pro11 tect the interests of the United States in 

12 the case of default; and 

13 ‘‘(iv) provide such lien priority in 

14 project assets as necessary to protect the 

15 interests of the United States in the case 

16 of a default.’’. 

17 (4) FEES.—Section 1702(h) of the Energy Pol18 icy Act of 2005 (42 U.S.C. 16512(h)) is amended by 

19 striking paragraph (2) and inserting the following: 

20 ‘‘(2) AVAILABILITY.—Fees collected under this 

21 subsection shall— 

22 ‘‘(A) be deposited by the Secretary in the 

23 Clean Energy Investment Fund established 

24 under section 503(a) of the Fulfilling U.S. En25 ergy Leadership Act of 2011; and 


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1 ‘‘(B) remain available to the Secretary for 

2 expenditure, without further appropriation or 

3 fiscal year limitation, for administrative ex4 penses incurred in carrying out this title. 

5 ‘‘(3) ADJUSTMENT.—The Secretary may adjust 

6 the amount or manner of collection of fees under 

7 this title as the Secretary determines is necessary to 

8 promote, to the maximum extent practicable, eligible 

9 projects under this title. 

10 ‘‘(4) EXCESS FEES.—Of the amount of a fee 

11 imposed on an applicant at the conditional commit12 ment stage, 75 percent of the amount shall be re13 fundable to the applicant if there is no financial 

14 close on the application, unless the Secretary deter15 mines that the administrative costs of the Depart16 ment have exceeded the amount retained. 

17 ‘‘(5) CREDIT REPORT.—If, in the opinion of the 

18 Secretary, the credit rating of an applicant is not 

19 relevant to the determination of whether or not sup20 port will be provided and the applicant agrees to ac21 cept the credit rating assigned to the applicant by 

22 the Secretary, the Secretary may waive any require23 ment to provide a third-party credit report.’’. 


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1 (5) PROCESSING.—Section 1702 of the Energy 

2 Policy Act of 2005 (42 U.S.C. 16512) is amended 

3 by adding at the end the following: 

4 ‘‘(k) ACCELERATED REVIEWS.—To the maximum ex5 tent practicable and consistent with sound business prac6 tices, the Secretary shall seek to conduct necessary reviews 

7 concurrently of an application for a loan guarantee under 

8 this title such that decisions as to whether to enter into 

9 a commitment on the application can be issued not later 

10 than 180 days after the date of submission of a completed 

11 application.’’. 

12 (6) WAGE RATES.—Section 1705(c) of the En13 ergy Policy Act of 2005 (42 U.S.C. 16516(c)) is 

14 amended by striking ‘‘support under this section’’ 

15 and inserting ‘‘support under this title’’. 

16 SEC. 504. ENERGY TECHNOLOGY DEPLOYMENT GOALS. 

17 (a) GOALS.—Not later than 1 year after the date of 

18 enactment of this Act, the Secretary, after consultation 

19 with the Advisory Council, shall develop and publish for 

20 review and comment in the Federal Register near-, me21 dium-, and long-term goals (including numerical perform22 ance targets at appropriate intervals to measure progress 

23 toward those goals) for the deployment of clean energy 

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1 lished by this subtitle (including an amendment made by 

2 this subtitle) to promote— 

3 (1) sufficient electric generating capacity using 

4 clean energy technologies to meet the energy needs 

5 of the United States; 

6 (2) clean energy technologies in vehicles and 

7 fuels that will substantially reduce the reliance of 

8 the United States on foreign sources of energy and 

9 insulate consumers from the volatility of world en10 ergy markets; 

11 (3) a domestic commercialization and manufac12 turing capacity that will establish the United States 

13 as a world leader in clean energy technologies across 

14 multiple sectors; 

15 (4) installation of sufficient infrastructure to 

16 allow for the cost-effective deployment of clean en17 ergy technologies appropriate to each region of the 

18 United States; 

19 (5) the transformation of the building stock of 

20 the United States to zero net energy consumption; 

21 (6) the recovery, use, and prevention of waste 

22 energy; 

23 (7) domestic manufacturing of clean energy 

24 technologies on a scale that is sufficient to achieve 

25 price parity with conventional energy sources; 


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1 (8) domestic production of commodities and 

2 materials (such as steel, chemicals, polymers, and 

3 cement) using clean energy technologies so that the 

4 United States will become a world leader in environ5 mentally sustainable production of the commodities 

6 and materials; 

7 (9) a robust, efficient, and interactive electricity 

8 transmission grid that will allow for the incorpora9 tion of clean energy technologies, distributed genera10 tion, smart grid functions, and demand-response in 

11 each regional electric grid; 

12 (10) sufficient availability of financial products 

13 to allow owners and users of residential, retail, com14 mercial, and industrial buildings to make energy ef15 ficiency and distributed generation technology in16 vestments with reasonable payback periods; and 

17 (11) such other goals as the Secretary, in con18 sultation with the Advisory Council, determines to be 

19 consistent with the purposes of this subtitle. 

20 (b) REVISIONS.—The Secretary shall revise the goals 

21 established under subsection (a), from time to time as ap22 propriate, to account for advances in technology and 

23 changes in energy policy. 

24 SEC. 505. CLEAN ENERGY DEPLOYMENT ADMINISTRATION. 

25 (a) ESTABLISHMENT.— 


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1 (1) IN GENERAL.—There is established in the 

2 Department of Energy an administration to be 

3 known as the Clean Energy Deployment Administra4 tion, under the direction of the Administrator and 

5 the Board of Directors. 

6 (2) STATUS.— 

7 (A) IN GENERAL.—The Administration 

8 (including officers, employees, and agents of the 

9 Administration) shall not be responsible to, or 

10 subject to the authority, direction, or control of, 

11 any other officer, employee, or agent of the De12 partment of Energy other than the Secretary, 

13 acting through the Administrator. 

14 (B) EXEMPTION FROM REORGANIZA15 TION.—The Administration shall be exempt 

16 from the reorganization authority provided 

17 under section 643 of the Department of Energy 

18 Organization Act (42 U.S.C. 7253). 

19 (C) INSPECTOR GENERAL.—Section 12 of 

20 the Inspector General Act of 1978 (5 U.S.C. 

21 App.) is amended— 

22 (i) in paragraph (1), by inserting ‘‘the 

23 Administrator of the Clean Energy Deploy24 ment Administration;’’ after ‘‘Export-Im25 port Bank;’’; and 


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1 (ii) in paragraph (2), by inserting 

2 ‘‘the Clean Energy Deployment Adminis3 tration,’’ after ‘‘Export-Import Bank,’’. 

4 (3) OFFICES.— 

5 (A) PRINCIPAL OFFICE.—The Administra6 tion shall— 

7 (i) maintain the principal office of the 

8 Administration in the District of Columbia; 

9 and 

10 (ii) for purposes of venue in civil ac11 tions, be considered to be a resident of the 

12 District of Columbia. 

13 (B) OTHER OFFICES.—The Administration 

14 may establish other offices in such other places 

15 as the Administration considers necessary or 

16 appropriate for the conduct of the business of 

17 the Administration. 

18 (b) ADMINISTRATOR.— 

19 (1) IN GENERAL.—The Administrator shall 

20 be— 

21 (A) appointed by the President, with the 

22 advice and consent of the Senate, for a 5-year 

23 term; and 

24 (B) compensated at the annual rate of 

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1 tive Schedule under section 5313 of title 5, 

2 United States Code. 

3 (2) DUTIES.—The Administrator shall— 

4 (A) serve as the Chief Executive Officer of 

5 the Administration and Chairman of the Board; 

6 (B) ensure that— 

7 (i) the Administration operates in a 

8 safe and sound manner, including mainte9 nance of adequate capital and internal con10 trols (consistent with section 404 of the 

11 Sarbanes-Oxley Act of 2002 (15 U.S.C. 

12 7262)); 

13 (ii) the operations and activities of the 

14 Administration foster liquid, efficient, com15 petitive, and resilient energy and energy ef16 ficiency finance markets; 

17 (iii) the Administration carries out the 

18 purposes of this subtitle only through ac19 tivities that are authorized under and con20 sistent with this subtitle; and 

21 (iv) the activities of the Administra22 tion and the manner in which the Adminis23 tration is operated are consistent with the 

24 public interest; 


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1 (C) develop policies and procedures for the 

2 Administration that will— 

3 (i) promote a self-sustaining portfolio 

4 of investments that will maximize the value 

5 of investments to effectively promote clean 

6 energy technologies; 

7 (ii) promote transparency and open8 ness in Administration operations; 

9 (iii) afford the Administration with 

10 sufficient flexibility to meet the purposes of 

11 this subtitle; 

12 (iv) provide for the efficient proc13 essing of applications; 

14 (v) promote, consistent with the pur15 poses of this Act, the participation of pri16 vate financial institutions and other 

17 sources of private capital, on commercially 

18 reasonable terms, if and to the extent the 

19 capital is available; and 

20 (vi) promote the availability of finan21 cial products to small business through 

22 working with entities that have appropriate 

23 expertise extending credit or other relevant 

24 financial services to small companies devel25 oping clean energy technologies; and 


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1 (D) with the concurrence of the Board, set 

2 expected loss reserves for the support provided 

3 by the Administration consistent with section 

4 506(a)(1)(C). 

5 (c) BOARD OF DIRECTORS.— 

6 (1) IN GENERAL.—The Board of Directors of 

7 the Administration shall consist of— 

8 (A) the Secretary or the designee of the 

9 Secretary, who shall serve as an ex-officio vot10 ing member of the Board of Directors; 

11 (B) the Administrator, who shall serve as 

12 the Chairman of the Board of Directors; and 

13 (C) 7 additional members who shall— 

14 (i) be appointed by the President, 

15 with the advice and consent of the Senate, 

16 for staggered 5-year terms; and 

17 (ii) have experience in banking or fi18 nancial services relevant to the operations 

19 of the Administration, including individuals 

20 with substantial experience in the develop21 ment of energy projects, the electricity 

22 generation sector, the transportation sec23 tor, the manufacturing sector, and the en24 ergy efficiency sector. 

25 (2) DUTIES.—The Board of Directors shall— 


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1 (A) oversee the operations of the Adminis2 tration and ensure industry best practices are 

3 followed in all financial transactions involving 

4 the Administration; 

5 (B) consult with the Administrator on the 

6 general policies and procedures of the Adminis7 tration to ensure the interests of the taxpayers 

8 are protected; 

9 (C) ensure the portfolio of investments are 

10 consistent with purposes of this subtitle and 

11 with the long-term financial stability of the Ad12 ministration; 

13 (D) ensure that the operations and activi14 ties of the Administration are consistent with 

15 the development of a robust private sector that 

16 can provide commercial loans or financing prod17 ucts; and 

18 (E) not serve on a full-time basis, except 

19 that the Board of Directors shall meet at least 

20 quarterly to review, as appropriate, applications 

21 for credit support and set policies and proce22 dures as necessary. 

23 (3) REMOVAL.—An appointed member of the 

24 Board of Directors may be removed from office by 

25 the President for good cause. 


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1 (4) VACANCIES.—An appointed seat on the 

2 Board of Directors that becomes vacant shall be 

3 filled by appointment by the President, but only for 

4 the unexpired portion of the term of the vacating 

5 member. 

6 (5) COMPENSATION OF MEMBERS.—An ap7 pointed member of the Board of Directors shall be 

8 compensated at a rate equal to the daily equivalent 

9 of the annual rate of basic pay prescribed for level 

10 III of the Executive Schedule under section 5314 of 

11 title 5, United States Code, for each day (including 

12 travel time) during which the member is engaged in 

13 the performance of the duties of the Board of Direc14 tors. 

15 (d) ENERGY TECHNOLOGY ADVISORY COUNCIL.— 

16 (1) IN GENERAL.—The Administration shall 

17 have an Energy Technology Advisory Council con18 sisting of— 

19 (A) 5 members selected by the Secretary; 

20 and 

21 (B) 3 members selected by the Board of 

22 Directors of the Administration. 

23 (2) QUALIFICATIONS.—The members of the Ad24 visory Council shall— 

25 (A) have relevant scientific expertise; and 


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1 (B) in the case of the members selected by 

2 the Secretary under paragraph (1)(A), include 

3 representatives of— 

4 (i) the academic community; 

5 (ii) the private research community; 

6 (iii) National Laboratories; 

7 (iv) the technology or project develop8 ment community; and 

9 (v) the commercial energy financing 

10 and operations sector. 

11 (3) DUTIES.—The Advisory Council shall— 

12 (A) develop and publish for comment in 

13 the Federal Register a methodology for assess14 ment of clean energy technologies that will 

15 allow the Administration to evaluate projects 

16 based on the progress likely to be achieved per17 dollar invested in maximizing the attributes of 

18 the definition of clean energy technology, taking 

19 into account the extent to which support for a 

20 clean energy technology is likely to accrue sub21 sequent benefits that are attributable to a com22 mercial scale deployment taking place earlier 

23 than that which otherwise would have occurred 

24 without the support; and 


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1 (B) advise on the technological approaches 

2 that should be supported by the Administration 

3 to meet the technology deployment goals estab4 lished by the Secretary pursuant to section 504. 

5 (4) TERM.— 

6 (A) IN GENERAL.—Members of the Advi7 sory Council shall have 5-year staggered terms, 

8 as determined by the Secretary and the Admin9 istrator. 

10 (B) REAPPOINTMENT.—A member of the 

11 Advisory Council may be reappointed. 

12 (5) COMPENSATION.—A member of the Advi13 sory Council, who is not otherwise compensated as 

14 a Federal employee, shall be compensated at a rate 

15 equal to the daily equivalent of the annual rate of 

16 basic pay prescribed for level IV of the Executive 

17 Schedule under section 5315 of title 5, United 

18 States Code, for each day (including travel time) 

19 during which the member is engaged in the perform20 ance of the duties of the Advisory Council. 

21 (e) STAFF.— 

22 (1) IN GENERAL.—The Administrator, in con23 sultation with the Board of Directors, may— 


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1 (A) appoint and terminate such officers, 

2 attorneys, employees, and agents as are nec3 essary to carry out this subtitle; and 

4 (B) vest those personnel with such powers 

5 and duties as the Administrator may determine. 

6 (2) DIRECT HIRE AUTHORITY.— 

7 (A) IN GENERAL.—Notwithstanding sec8 tion 3304 and sections 3309 through 3318 of 

9 title 5, United States Code, the Administrator 

10 may, on a determination that there is a severe 

11 shortage of candidates or a critical hiring need 

12 for particular positions, recruit and directly ap13 point highly qualified critical personnel with 

14 specialized knowledge important to the function 

15 of the Administration into the competitive serv16 ice. 

17 (B) EXCEPTION.—The authority granted 

18 under subparagraph (A) shall not apply to posi19 tions in the excepted service or the Senior Exec20 utive Service. 

21 (C) REQUIREMENTS.—In exercising the 

22 authority granted under subparagraph (A), the 

23 Administrator shall ensure that any action 

24 taken by the Administrator— 


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1 (i) is consistent with the merit prin2 ciples of section 2301 of title 5, United 

3 States Code; and 

4 (ii) complies with the public notice re5 quirements of section 3327 of title 5, 

6 United States Code. 

7 (D) TERMINATION OF EFFECTIVENESS.— 

8 The authority provided by this paragraph ter9 minates effective on the date that is 2 years 

10 after the date of enactment of this Act. 

11 (3) CRITICAL PAY AUTHORITY.— 

12 (A) IN GENERAL.—Notwithstanding sec13 tion 5377 of title 5, United States Code, and 

14 without regard to the provisions of that title 

15 governing appointments in the competitive serv16 ice or the Senior Executive Service and chap17 ters 51 and 53 of that title (relating to classi18 fication and pay rates), the Administrator may 

19 establish, fix the compensation of, and appoint 

20 individuals to critical positions needed to carry 

21 out the functions of the Administration, if the 

22 Administrator certifies that— 

23 (i) the positions require expertise of 

24 an extremely high level in a financial, tech25 nical, or scientific field; 


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1 (ii) the Administration would not suc2 cessfully accomplish an important mission 

3 without such an individual; and 

4 (iii) exercise of the authority is nec5 essary to recruit an individual who is ex6 ceptionally well qualified for the position. 

7 (B) LIMITATIONS.—The authority granted 

8 under subparagraph (A) shall be subject to the 

9 following conditions: 

10 (i) The number of critical positions 

11 authorized by subparagraph (A) may not 

12 exceed 20 at any one time in the Adminis13 tration. 

14 (ii) The term of an appointment 

15 under subparagraph (A) may not exceed 4 

16 years. 

17 (iii) An individual appointed under 

18 subparagraph (A) may not have been an 

19 Administration employee at any time dur20 ing the 2-year period preceding the date of 

21 appointment. 

22 (iv) Total annual compensation for 

23 any individual appointed under subpara24 graph (A) may not exceed the highest total 

25 annual compensation payable at the rate 


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1 determined under section 104 of title 3, 

2 United States Code. 

3 (v) An individual appointed under 

4 subparagraph (A) may not be considered 

5 to be an employee for purposes of sub6 chapter II of chapter 75 of title 5, United 

7 States Code. 

8 (C) NOTIFICATION.—Each year, the Ad9 ministrator shall submit to Congress a notifica10 tion that lists each individual appointed under 

11 this paragraph. 

12 SEC. 506. ADMINISTRATION FUNCTIONS. 

13 (a) OPERATIONAL UNITS.— 

14 (1) DIRECT SUPPORT.— 

15 (A) IN GENERAL.—The Administration 

16 may issue direct loans, letters of credit, loan 

17 guarantees, insurance products, or such other 

18 credit enhancements (including through partici19 pation as a co-lender or a lending member of a 

20 syndication) as the Administrator considers ap21 propriate to deploy clean energy technologies if 

22 the Administrator has determined that deploy23 ment of the technologies would benefit or be ac24 celerated by the support. 


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1 (B) ELIGIBILITY CRITERIA.—In carrying 

2 out this paragraph and awarding credit support 

3 to projects, the Administrator shall account 

4 for— 

5 (i) how the technology rates based on 

6 an evaluation methodology established by 

7 the Advisory Council; 

8 (ii) how the project fits with the goals 

9 established under section 504; and 

10 (iii) the potential for the applicant to 

11 successfully complete the project. 

12 (C) RISK.— 

13 (i) EXPECTED LOAN LOSS RE14 SERVE.—The Administrator shall establish 

15 an expected loan loss reserve to account 

16 for estimated losses attributable to activi17 ties under this section that is consistent 

18 with the purposes of— 

19 (I) developing breakthrough tech20 nologies to the point at which tech21 nology risk is largely mitigated; 

22 (II) achieving widespread deploy23 ment and advancing the commercial 

24 viability of clean energy technologies; 

25 and 


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1 (III) advancing the goals estab2 lished under section 504. 

3 (ii) INITIAL EXPECTED LOAN LOSS

4 RESERVE.—Until such time as the Admin5 istrator determines sufficient data exist to 

6 establish an expected loan loss reserve that 

7 is appropriate, the Administrator shall con8 sider establishing an initial rate of 10 per9 cent for the portfolio of investments under 

10 this subtitle. 

11 (iii) PORTFOLIO INVESTMENT AP12 PROACH.—The Administration shall— 

13 (I) use a portfolio investment ap14 proach to mitigate risk and diversify 

15 investments across technologies; 

16 (II) to the maximum extent prac17 ticable and consistent with long-term 

18 self-sufficiency, weigh the portfolio of 

19 investments in projects to advance the 

20 goals established under section 504; 

21 and 

22 (III) consistent with the expected 

23 loan loss reserve established under 

24 this subparagraph, the purposes of 

25 this subtitle, and section 


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1 505(b)(2)(B), provide the maximum 

2 practicable percentage of support to 

3 promote breakthrough technologies. 

4 (iv) LOSS RATE REVIEW.— 

5 (I) IN GENERAL.—The Board of 

6 Directors shall review on an annual 

7 basis the loss rates of the portfolio to 

8 determine the adequacy of the re9 serves. 

10 (II) REPORT.—Not later than 90 

11 days after the date of the initiation of 

12 the review, the Administrator shall 

13 submit to the Committee on Energy 

14 and Natural Resources of the Senate 

15 and the Committee on Energy and 

16 Commerce of the House of Represent17 atives a report describing the results 

18 of the review and any recommended 

19 policy changes. 

20 (D) APPLICATION REVIEW.— 

21 (i) IN GENERAL.—To the maximum 

22 extent practicable and consistent with 

23 sound business practices, the Administra24 tion shall seek to consolidate reviews of ap25 plications for credit support under this 


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1 subtitle such that final decisions on appli2 cations can generally be issued not later 

3 than 180 days after the date of submission 

4 of a completed application. 

5 (ii) ENVIRONMENTAL REVIEW.—In 

6 carrying out this subtitle, the Administra7 tion shall, to the maximum extent prac8 ticable— 

9 (I) avoid duplicating efforts that 

10 have already been undertaken by 

11 other agencies (including State agen12 cies acting under Federal programs); 

13 and 

14 (II) with the advice of the Coun15 cil on Environmental Quality and any 

16 other applicable agencies, use the ad17 ministrative records of similar reviews 

18 conducted throughout the executive 

19 branch to develop the most expedi20 tious review process practicable. 

21 (E) WAGE RATE REQUIREMENTS.— 

22 (i) IN GENERAL.—No credit support 

23 shall be issued under this section unless 

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1 ers and mechanics employed by contractors 

2 and subcontractors in the performance of 

3 construction work financed in whole or in 

4 part by the Administration will be paid 

5 wages at rates not less than those pre6 vailing on projects of a character similar to 

7 the contract work in the civil subdivision of 

8 the State in which the contract work is to 

9 be performed as determined by the Sec10 retary of Labor in accordance with sub11 chapter IV of chapter 31 of part A of sub12 title II of title 40, United States Code. 

13 (ii) LABOR STANDARDS.—With re14 spect to the labor standards specified in 

15 this section, the Secretary of Labor shall 

16 have the authority and functions set forth 

17 in Reorganization Plan Numbered 14 of 

18 1950 (64 Stat. 1267; 5 U.S.C. App.) and 

19 section 3145 of title 40, United States 

20 Code. 

21 (2) INDIRECT SUPPORT.— 

22 (A) IN GENERAL.—The Administration 

23 shall work to develop financial products and ar24 rangements to both promote the widespread de25 ployment of, and mobilize private sector support 


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1 of credit and investment institutions for, clean 

2 energy technologies by facilitating aggregation 

3 of small projects and by providing indirect cred4 it support, including credit enhancement. 

5 (B) FINANCIAL PRODUCTS.—The Adminis6 tration— 

7 (i) in cooperation with Federal, State, 

8 local, and private sector entities, shall de9 velop debt instruments that provide for the 

10 aggregation of, or directly aggregate, 

11 projects for clean energy technology de12 ployments on a scale appropriate for resi13 dential or commercial applications; and 

14 (ii) may insure, purchase, and make 

15 commitments to purchase, any debt instru16 ment associated with the deployment of 

17 clean energy technologies (including instru18 ments secured by liens or other collateral 

19 related to the funding of clean energy tech20 nology) for the purposes of enhancing the 

21 availability of private financing for clean 

22 energy technology deployments. 

23 (C) DISPOSITION OF DEBT OR INTER24 EST.—The Administration may acquire, hold, 

25 and sell or otherwise dispose of, pursuant to 


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1 commitments or otherwise, any debt associated 

2 with the deployment of clean energy tech3 nologies or interest in the debt. 

4 (D) PRICING.— 

5 (i) IN GENERAL.—The Administrator 

6 may establish requirements, and impose 

7 charges or fees, which may be regarded as 

8 elements of pricing, for different classes of 

9 sellers, servicers, or services. 

10 (ii) CLASSIFICATION OF SELLERS AND

11 SERVICERS.—For the purpose of clause (i), 

12 the Administrator may classify sellers and 

13 servicers as necessary to promote trans14 parency and liquidity and properly charac15 terize the risk of default. 

16 (E) ELIGIBILITY.—The Administrator 

17 shall establish— 

18 (i) eligibility criteria for loan origina19 tors, sellers, and servicers seeking support 

20 for portfolios of financial obligations relat21 ing to clean energy technologies so as to 

22 ensure the capability of the loan origina23 tors, sellers, and servicers to perform the 

24 functions required to maintain the ex25 pected performance of the portfolios; and 


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1 (ii) such criteria, standards, guide2 lines, and mechanisms such that, to the 

3 maximum extent practicable, loan origina4 tors and sellers will be able to determine 

5 the eligibility of loans for resale at the time 

6 of initial lending. 

7 (F) SECONDARY MARKET SUPPORT.— 

8 (i) IN GENERAL.—The Administration 

9 may lend on the security of, and make 

10 commitments to lend on the security of, 

11 any debt that the Administration has 

12 issued or is authorized to purchase under 

13 this section. 

14 (ii) AUTHORIZED ACTIONS.—On such 

15 terms and conditions as the Administrator 

16 may prescribe, the Administration may, 

17 based on the debt and with the concur18 rence of the Board of Directors— 

19 (I) give security or guarantee; 

20 (II) pay interest or other return; 

21 and 

22 (III) issue notes, debentures, 

23 bonds, or other obligations or securi24 ties. 

25 (G) LENDING ACTIVITIES.— 


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1 (i) IN GENERAL.—The Administrator 

2 shall determine— 

3 (I) the volume of the lending ac4 tivities of the Administration; and 

5 (II) the types of loan ratios, risk 

6 profiles, interest rates, maturities, and 

7 charges or fees in the secondary mar8 ket operations of the Administration. 

9 (ii) OBJECTIVES.—Determinations 

10 under clause (i) shall be consistent with 

11 the objectives of— 

12 (I) providing an attractive invest13 ment environment for clean energy 

14 technologies; 

15 (II) making the operations of the 

16 Administration self-supporting over 

17 the long term; and 

18 (III) advancing the goals estab19 lished under section 504. 

20 (H) EXEMPT SECURITIES.—All securities 

21 issued or guaranteed by the Administration 

22 shall, to the same extent as securities that are 

23 direct obligations of or obligations guaranteed 

24 as to principal or interest by the United States, 

25 be considered to be exempt securities within the 


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1 meaning of the laws administered by the Secu2 rities and Exchange Commission. 

3 (b) OTHER AUTHORIZED PROGRAMS.— 

4 (1) IN GENERAL.—The Secretary may delegate 

5 to the Administration the provision of financial serv6 ices and program management for grant, loan, and 

7 other credit enhancement programs authorized 

8 under any other provision of law. 

9 (2) ADMINISTRATION.—In administering any 

10 other program delegated by the Secretary, the Ad11 ministration shall, to the maximum extent prac12 ticable (as determined by the Administrator)— 

13 (A) administer the program in a manner 

14 that is consistent with the terms and conditions 

15 of this subtitle; and 

16 (B) minimize the administrative costs to 

17 the Federal Government. 

18 SEC. 507. FEDERAL CREDIT AUTHORITY. 

19 (a) TRANSFER OF FUNCTIONS AND AUTHORITY.— 

20 (1) IN GENERAL.—Subject to paragraph (2), on 

21 a finding by the Secretary and the Administrator 

22 that the Administration is sufficiently ready to as23 sume the functions and that applicants to those pro24 grams will not be unduly adversely affected but in 

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1 actment of this Act, all of the functions and author2 ity of the Secretary under title XVII of the Energy 

3 Policy Act of 2005 (42 U.S.C. 16511 et seq.) and 

4 authorities established by this subtitle shall be trans5 ferred to the Administration. 

6 (2) FAILURE TO TRANSFER FUNCTIONS.—If the 

7 functions and authorities are not transferred to the 

8 Administration in accordance with paragraph (1), 

9 the Secretary and the Administrator shall submit to 

10 Congress a report on the reasons for delay and an 

11 expected timetable for transfer of the functions and 

12 authorities to the Administration. 

13 (3) EFFECT ON EXISTING RIGHTS AND OBLIGA14 TIONS.—The transfer of functions and authority 

15 under this subsection shall not affect the rights and 

16 obligations of any party that arise under a prede17 cessor program or authority prior to the transfer 

18 under this subsection. 

19 (4) TRANSFER OF FUND AUTHORITY.— 

20 (A) IN GENERAL.—On transfer of func21 tions pursuant to paragraph (1), the Adminis22 tration shall have all authorities to make use of 

23 the Fund reserved for the Secretary before the 

24 transfer. 


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1 (B) ADMINISTRATIVE EXPENSES.—Effec2 tive beginning on the date of enactment of this 

3 Act, the Administrator may make use of up to 

4 1.5 percent of the amounts in the Fund as of 

5 the beginning of each fiscal year to pay admin6 istrative expenses for that fiscal year to carry 

7 out the purposes of this Act. 

8 (5) USE.— 

9 (A) IN GENERAL.—Amounts in the Fund 

10 shall be available for discharge of liabilities and 

11 all other expenses of the Administration, includ12 ing subsequent transfer to the respective credit 

13 accounts. 

14 (B) LIABILITY.—All activities of the Ad15 ministration that could result in a liability for 

16 the United States shall be transparently ac17 counted for and no obligation or liability may 

18 be incurred unless— 

19 (i) the appropriate amounts are trans20 ferred to credit accounts for activities pur21 suant to the Federal Credit Reform Act of 

22 1990 (2 U.S.C. 661a); or 

23 (ii) sufficient amounts are reserved 

24 within the Fund to account for such liabil25 ities. 


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1 (6) INITIAL INVESTMENT.— 

2 (A) IN GENERAL.—On transfer of func3 tions pursuant to paragraph (1), out of any 

4 funds in the Treasury not otherwise appro5 priated, the Secretary of the Treasury shall 

6 transfer to the Fund to carry out this subtitle 

7 $10,000,000,000, to remain available until ex8 pended. 

9 (B) RECEIPT AND ACCEPTANCE.—The 

10 Fund shall be entitled to receive and shall ac11 cept, and shall be used to carry out this sub12 title, the funds transferred to the Fund under 

13 subparagraph (A), without further appropria14 tion. 

15 (7) AUTHORIZATION OF APPROPRIATIONS.—In 

16 addition to funds made available by paragraphs (1) 

17 through (6), there are authorized to be appropriated 

18 to the Fund such sums as are necessary to carry out 

19 this subtitle. 

20 (b) PAYMENTS OF LIABILITIES.— 

21 (1) IN GENERAL.—Any payment to discharge li22 abilities arising from agreements under this subtitle 

23 shall be made exclusively out of the Fund or the as24 sociated credit account, as appropriate. 


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1 (2) SECURITY.—Subject to paragraph (1), the 

2 full faith and credit of the United States is pledged 

3 to the payment of all obligations entered into by the 

4 Administration pursuant to this subtitle. 

5 (c) FEES.— 

6 (1) IN GENERAL.—Consistent with achieving 

7 the purposes of this subtitle, the Administrator shall 

8 charge fees or collect compensation generally in ac9 cordance with commercial rates. 

10 (2) AVAILABILITY OF FEES.—All fees collected 

11 by the Administration may be retained by the Ad12 ministration and placed in the Fund and may re13 main available to the Administration, without fur14 ther appropriation or fiscal year limitation, for use 

15 in carrying out the purposes of this subtitle. 

16 (3) BREAKTHROUGH TECHNOLOGIES.—The Ad17 ministration shall charge the minimum amount in 

18 fees or compensation practicable for breakthrough 

19 technologies, consistent with the long-term viability 

20 of the Administration, unless the Administration 

21 first determines that a higher charge will not impede 

22 the development of the technology. 

23 (4) ALTERNATIVE FEE ARRANGEMENTS.—The 

24 Administration may use such alternative arrange25 ments (such as profit participation, contingent fees, 


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1 and other valuable contingent interests) as the Ad2 ministration considers appropriate to compensate the 

3 Administration for the expenses of the Administra4 tion and the risk inherent in the support of the Ad5 ministration. 

6 (d) COST TRANSFER AUTHORITY.—Amounts col7 lected by the Administration for the cost of a loan or loan 

8 guarantee shall be transferred by the Administration to 

9 the respective credit program accounts. 

10 (e) SUPPLEMENTAL BORROWING AUTHORITY.—In 

11 order to maintain sufficient liquidity for activities author12 ized under section 506(a)(2), the Administration may 

13 issue notes, debentures, bonds, or other obligations for 

14 purchase by the Secretary of the Treasury. 

15 (f) PUBLIC DEBT TRANSACTIONS.—For the purpose 

16 of subsection (e)— 

17 (1) the Secretary of the Treasury may use as 

18 a public debt transaction the proceeds of the sale of 

19 any securities issued under chapter 31 of title 31, 

20 United States Code; and 

21 (2) the purposes for which securities may be 

22 issued under that chapter are extended to include 

23 any purchase under this subsection. 

24 (g) MAXIMUM OUTSTANDING HOLDING.—The Sec25 retary of the Treasury shall purchase instruments issued 


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1 under subsection (e) to the extent that the purchase would 

2 not increase the aggregate principal amount of the out3 standing holdings of obligations under subsection (e) by 

4 the Secretary of the Treasury to an amount that is greater 

5 than $2,000,000,000. 

6 (h) RATE OF RETURN.—Each purchase of obligations 

7 by the Secretary of the Treasury under this section shall 

8 be on terms and conditions established to yield a rate of 

9 return determined by the Secretary of the Treasury to be 

10 appropriate, taking into account the current average rate 

11 on outstanding marketable obligations of the United 

12 States as of the last day of the month preceding the pur13 chase. 

14 (i) SALE OF OBLIGATIONS.—The Secretary of the 

15 Treasury may at any time sell, on terms and conditions 

16 and at prices determined by the Secretary of the Treasury, 

17 any of the obligations acquired by the Secretary of the 

18 Treasury under this section. 

19 (j) PUBLIC DEBT TRANSACTIONS.—All redemptions, 

20 purchases, and sales by the Secretary of the Treasury of 

21 obligations under this section shall be treated as public 

22 debt transactions of the United States. 

23 SEC. 508. GENERAL PROVISIONS. 

24 (a) IMMUNITY FROM IMPAIRMENT, LIMITATION, OR

25 RESTRICTION.— 


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1 (1) IN GENERAL.—All rights and remedies of 

2 the Administration (including any rights and rem3 edies of the Administration on, under, or with re4 spect to any mortgage or any obligation secured by 

5 a mortgage) shall be immune from impairment, limi6 tation, or restriction by or under— 

7 (A) any law (other than a law enacted by 

8 Congress expressly in limitation of this para9 graph) that becomes effective after the acquisi10 tion by the Administration of the subject or 

11 property on, under, or with respect to which the 

12 right or remedy arises or exists or would so 

13 arise or exist in the absence of the law; or 

14 (B) any administrative or other action that 

15 becomes effective after the acquisition. 

16 (2) STATE LAW.—The Administrator may con17 duct the business of the Administration without re18 gard to any qualification or law of any State relating 

19 to incorporation. 

20 (b) USE OF OTHER AGENCIES.—With the consent of 

21 a department, establishment, or instrumentality (including 

22 any field office), the Administration may— 

23 (1) use and act through any department, estab24 lishment, or instrumentality; or 


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1 (2) use, and pay compensation for, information, 

2 services, facilities, and personnel of the department, 

3 establishment, or instrumentality. 

4 (c) PROCUREMENT.—The Administrator shall be the 

5 senior procurement officer for the Administration for pur6 poses of section 16(a) of the Office of Federal Procure7 ment Policy Act (41 U.S.C. 414(a)). 

8 (d) FINANCIAL MATTERS.— 

9 (1) INVESTMENTS.—Funds of the Administra10 tion may be invested in such investments as the 

11 Board of Directors may prescribe. 

12 (2) FISCAL AGENTS.—Any Federal Reserve 

13 bank or any bank as to which at the time of the des14 ignation of the bank by the Administrator there is 

15 outstanding a designation by the Secretary of the 

16 Treasury as a general or other depository of public 

17 money, may be designated by the Administrator as 

18 a depositary or custodian or as a fiscal or other 

19 agent of the Administration. 

20 (e) JURISDICTION.—Notwithstanding section 1349 of 

21 title 28, United States Code, or any other provision of 

22 law— 

23 (1) the Administration shall be considered a 

24 corporation covered by sections 1345 and 1442 of 

25 title 28, United States Code; 


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1 (2) all civil actions to which the Administration 

2 is a party shall be considered to arise under the laws 

3 of the United States, and the district courts of the 

4 United States shall have original jurisdiction of all 

5 such actions, without regard to amount or value; 

6 and 

7 (3) any civil or other action, case or controversy 

8 in a court of a State, or in any court other than a 

9 district court of the United States, to which the Ad10 ministration is a party may at any time before trial 

11 be removed by the Administration, without the giv12 ing of any bond or security and by following any 

13 procedure for removal of causes in effect at the time 

14 of the removal— 

15 (A) to the district court of the United 

16 States for the district and division embracing 

17 the place in which the same is pending; or 

18 (B) if there is no such district court, to the 

19 district court of the United States for the dis20 trict in which the principal office of the Admin21 istration is located. 

22 (f) PERIODIC REPORTS.—Not later than 1 year after 

23 commencement of operation of the Administration and at 

24 least biannually thereafter, the Administrator shall submit 

25 to the Committee on Energy and Natural Resources of 


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1 the Senate and the Committee on Energy and Commerce 

2 of the House of Representatives a report that includes a 

3 description of— 

4 (1) the technologies supported by activities of 

5 the Administration and how the activities advance 

6 the purposes of this subtitle; and 

7 (2) the performance of the Administration on 

8 meeting the goals established under section 504. 

9 (g) AUDITS BY THE COMPTROLLER GENERAL.— 

10 (1) IN GENERAL.—The programs, activities, re11 ceipts, expenditures, and financial transactions of 

12 the Administration shall be subject to audit by the 

13 Comptroller General of the United States under 

14 such rules and regulations as may be prescribed by 

15 the Comptroller General. 

16 (2) ACCESS.—The representatives of the Gov17 ernment Accountability Office shall— 

18 (A) have access to the personnel and to all 

19 books, accounts, documents, records (including 

20 electronic records), reports, files, and all other 

21 papers, automated data, things, or property be22 longing to, under the control of, or in use by 

23 the Administration, or any agent, representa24 tive, attorney, advisor, or consultant retained by 


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1 the Administration, and necessary to facilitate 

2 the audit; 

3 (B) be afforded full facilities for verifying 

4 transactions with the balances or securities held 

5 by depositories, fiscal agents, and custodians; 

6 (C) be authorized to obtain and duplicate 

7 any such books, accounts, documents, records, 

8 working papers, automated data and files, or 

9 other information relevant to the audit without 

10 cost to the Comptroller General; and 

11 (D) have the right of access of the Comp12 troller General to such information pursuant to 

13 section 716(c) of title 31, United States Code. 

14 (3) ASSISTANCE AND COST.— 

15 (A) IN GENERAL.—For the purpose of con16 ducting an audit under this subsection, the 

17 Comptroller General may, in the discretion of 

18 the Comptroller General, employ by contract, 

19 without regard to section 3709 of the Revised 

20 Statutes (41 U.S.C. 5), professional services of 

21 firms and organizations of certified public ac22 countants for temporary periods or for special 

23 purposes. 

24 (B) REIMBURSEMENT.— 


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1 (i) IN GENERAL.—On the request of 

2 the Comptroller General, the Administra3 tion shall reimburse the General Account4 ability Office for the full cost of any audit 

5 conducted by the Comptroller General 

6 under this subsection. 

7 (ii) CREDITING.—Such reimburse8 ments shall— 

9 (I) be credited to the appropria10 tion account entitled ‘‘Salaries and 

11 Expenses, Government Accountability 

12 Office’’ at the time at which the pay13 ment is received; and 

14 (II) remain available until ex15 pended. 

16 (h) ANNUAL INDEPENDENT AUDITS.— 

17 (1) IN GENERAL.—The Administrator shall— 

18 (A) have an annual independent audit 

19 made of the financial statements of the Admin20 istration by an independent public accountant 

21 in accordance with generally accepted auditing 

22 standards; and 

23 (B) submit to the Secretary the results of 

24 the audit. 


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1 (2) CONTENT.—In conducting an audit under 

2 this subsection, the independent public accountant 

3 shall determine and report on whether the financial 

4 statements of the Administration— 

5 (A) are presented fairly in accordance with 

6 generally accepted accounting principles; and 

7 (B) comply with any disclosure require8 ments imposed under this subtitle. 

9 (i) FINANCIAL REPORTS.— 

10 (1) IN GENERAL.—The Administrator shall 

11 submit to the Secretary annual and quarterly re12 ports of the financial condition and operations of the 

13 Administration, which shall be in such form, contain 

14 such information, and be submitted on such dates as 

15 the Secretary shall require. 

16 (2) CONTENTS OF ANNUAL REPORTS.—Each 

17 annual report shall include— 

18 (A) financial statements prepared in ac19 cordance with generally accepted accounting 

20 principles; 

21 (B) any supplemental information or alter22 native presentation that the Secretary may re23 quire; and 

24 (C) an assessment (as of the end of the 

25 most recent fiscal year of the Administration), 


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1 signed by the chief executive officer and chief 

2 accounting or financial officer of the Adminis3 tration, of— 

4 (i) the effectiveness of the internal 

5 control structure and procedures of the 

6 Administration; and 

7 (ii) the compliance of the Administra8 tion with applicable safety and soundness 

9 laws. 

10 (3) SPECIAL REPORTS.—The Secretary may re11 quire the Administrator to submit other reports on 

12 the condition (including financial condition), man13 agement, activities, or operations of the Administra14 tion, as the Secretary considers appropriate. 

15 (4) ACCURACY.—Each report of financial condi16 tion shall contain a declaration by the Administrator 

17 or any other officer designated by the Board of Di18 rectors of the Administration to make the declara19 tion, that the report is true and correct to the best 

20 of the knowledge and belief of the officer. 

21 (5) AVAILABILITY OF REPORTS.—Reports re22 quired under this section shall be published and 

23 made publicly available as soon as is practicable 

24 after receipt by the Secretary. 

25 (j) SCOPE AND TERMINATION OF AUTHORITY.— 


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1 (1) NEW OBLIGATIONS.—The Administrator 

2 shall not initiate any new obligations under this sub3 title on or after January 1, 2029. 

4 (2) REVERSION TO SECRETARY.—The authori5 ties and obligations of the Administration shall re6 vert to the Secretary on January 1, 2029. 

7 Subtitle B—Tax Provisions 

8 SEC. 511. ADVANCED ENERGY MANUFACTURING CREDIT. 

9 (a) IN GENERAL.—Subsection (d) of section 48C of 

10 the Internal Revenue Code of 1986 is amended by adding 

11 at the end the following new paragraph: 

12 ‘‘(6) ADDITIONAL 2011 ALLOCATIONS.— 

13 ‘‘(A) IN GENERAL.—Not later than 180 

14 days after the date of the enactment of this 

15 paragraph, the Secretary, in consultation with 

16 the Secretary of Energy, shall establish a pro17 gram to consider and award certifications for 

18 qualified investments eligible for credits under 

19 this section to qualifying advanced energy 

20 project sponsors with respect to applications re21 ceived on or after the date of the enactment of 

22 this paragraph. 

23 ‘‘(B) LIMITATION.—The total amount of 

24 credits that may be allocated under the pro25 gram described in subparagraph (A) shall not 


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1 exceed the 2011 allocation amount reduced by 

2 so much of the 2011 allocation amount as is 

3 taken into account as an increase in the limita4 tion described in paragraph (1)(B). 

5 ‘‘(C) APPLICATION OF CERTAIN RULES.— 

6 Rules similar to the rules of paragraphs (2), 

7 (3), (4), and (5) shall apply for purposes of the 

8 program described in subparagraph (A), except 

9 that— 

10 ‘‘(i) CERTIFICATION.—Applicants 

11 shall have 2 years from the date that the 

12 Secretary establishes such program to sub13 mit applications. 

14 ‘‘(ii) SELECTION CRITERIA.—For pur15 poses of paragraph (3)(B)(i), the term ‘do16 mestic job creation (both direct and indi17 rect)’ means the creation of direct jobs in 

18 the United States producing the property 

19 manufactured at the manufacturing facility 

20 described under subsection (c)(1)(A)(i), 

21 and the creation of indirect jobs in the 

22 manufacturing supply chain for such prop23 erty in the United States. 

24 ‘‘(iii) REVIEW AND REDISTRIBU25 TION.—The Secretary shall conduct a sepVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00252 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 arate review and redistribution under para2 graph (5) with respect to such program 

3 not later than 4 years after the date of the 

4 enactment of this paragraph. 

5 ‘‘(D) 2011 ALLOCATION AMOUNT.—For 

6 purposes of this subsection, the term ‘2011 allo7 cation amount’ means $5,000,000,000. 

8 ‘‘(E) DIRECT PAYMENTS.—In lieu of any 

9 qualifying advanced energy project credit which 

10 would otherwise be determined under this sec11 tion with respect to an allocation to a taxpayer 

12 under this paragraph, the Secretary shall, upon 

13 the election of the taxpayer, make a grant to 

14 the taxpayer in the amount of such credit as so 

15 determined. Rules similar to the rules of section 

16 50 shall apply with respect to any grant made 

17 under this subparagraph.’’. 

18 (b) PORTION OF 2011 ALLOCATION ALLOCATED TO19 WARD PENDING APPLICATIONS UNDER ORIGINAL PRO20 GRAM.—Subparagraph (B) of section 48C(d)(1) of such 

21 Code is amended by inserting ‘‘(increased by so much of 

22 the 2011 allocation amount (not in excess of 

23 $1,500,000,000) as the Secretary determines necessary to 

24 make allocations to qualified investments with respect to 

25 which qualifying applications were submitted before the 


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1 date of the enactment of paragraph (6))’’ after 

2 ‘‘$2,300,000,000’’. 

3 (c) CONFORMING AMENDMENT.—Paragraph (2) of 

4 section 1324(b) of title 31, United States Code, is amend5 ed by inserting ‘‘48C(d)(6)(E),’’ after ‘‘36C,’’. 

6 SEC. 512. SPECIAL RULE FOR SALES OF ELECTRIC TRANS7 MISSION PROPERTY. 

8 Paragraph (3) of section 451(i) of the Internal Rev9 enue Code of 1986 is amended by striking ‘‘January 1, 

10 2012’’ and inserting ‘‘January 1, 2017’’. 

11 SEC. 513. DEPRECIATION OF NATURAL GAS DISTRIBUTION 

12 LINES. 

13 (a) IN GENERAL.—Clause (viii) of section 

14 168(e)(3)(E) of the Internal Revenue Code of 1986 is 

15 amended by striking ‘‘January 1, 2011’’ and inserting 

16 ‘‘January 1, 2017’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to property placed in service after 

19 December 31, 2010. 

20 SEC. 514. CREDIT FOR STEEL INDUSTRY FUEL. 

21 (a) CREDIT PERIOD.— 

22 (1) IN GENERAL.—Subclause (II) of section 

23 45(e)(8)(D)(ii) is amended to read as follows: 

24 ‘‘(II) CREDIT PERIOD.—In lieu 

25 of the 10-year period referred to in 


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1 clauses (i) and (ii)(II) of subpara2 graph (A), the credit period shall be 

3 the period beginning on the date that 

4 the facility first produces steel indus5 try fuel that is sold to an unrelated 

6 person after September 30, 2008, and 

7 ending 3 years after such date.’’. 

8 (2) CONFORMING AMENDMENT.—Section 

9 45(e)(8)(D) is amended by striking clause (iii) and 

10 by redesignating clause (iv) as clause (iii). 

11 (b) EXTENSION OF PLACED-IN-SERVICE DATE.— 

12 Subparagraph (A) of section 45(d)(8) is amended— 

13 (1) by striking ‘‘(or any modification to a facil14 ity)’’; and 

15 (2) by striking ‘‘2010’’ and inserting ‘‘2017’’. 

16 (c) CLARIFICATIONS.— 

17 (1) STEEL INDUSTRY FUEL.—Subclause (I) of 

18 section 45(c)(7)(C)(i) is amended by inserting ‘‘, a 

19 blend of coal and petroleum coke, or other coke feed20 stock’’ after ‘‘on coal’’. 

21 (2) OWNERSHIP INTEREST.—Section 45(d)(8) 

22 is amended by adding at the end the following new 

23 flush sentence: 

24 ‘‘With respect to a facility producing steel industry 

25 fuel, no person (including a ground lessor, customer, 


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1 supplier, or technology licensor) shall be treated as 

2 having an ownership interest in the facility or as 

3 otherwise entitled to the credit allowable under sub4 section (a) with respect to such facility if such per5 son’s rent, license fee, or other entitlement to net 

6 payments from the owner of such facility is meas7 ured by a fixed dollar amount or a fixed amount per 

8 ton, or otherwise determined without regard to the 

9 profit or loss of such facility.’’. 

10 (3) PRODUCTION AND SALE.—Subparagraph 

11 (D) of section 45(e)(8), as amended by subsection 

12 (a)(2), is amended by redesignating clause (iii) as 

13 clause (iv) and by inserting after clause (ii) the fol14 lowing new clause: 

15 ‘‘(iii) PRODUCTION AND SALE.—The 

16 owner of a facility producing steel industry 

17 fuel shall be treated as producing and sell18 ing steel industry fuel where that owner 

19 manufactures such steel industry fuel from 

20 coal, a blend of coal and petroleum coke, 

21 or other coke feedstock to which it has 

22 title. The sale of such steel industry fuel 

23 by the owner of the facility to a person 

24 who is not the owner of the facility shall 

25 not fail to qualify as a sale to an unrelated 


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1 person solely because such purchaser may 

2 also be a ground lessor, supplier, or cus3 tomer.’’. 

4 (d) SPECIFIED CREDIT FOR PURPOSES OF ALTER5 NATIVE MINIMUM TAX EXCLUSION.—Subclause (II) of 

6 section 38(c)(4)(B)(iii) is amended by inserting ‘‘(in the 

7 case of a refined coal production facility producing steel 

8 industry fuel, during the credit period set forth in section 

9 45(e)(8)(D)(ii)(II))’’ after ‘‘service’’. 

10 (e) EFFECTIVE DATES.— 

11 (1) IN GENERAL.—The amendments made by 

12 subsections (a), (b), and (d) shall apply to fuel pro13 duced and sold after December 31, 2009. 

14 (2) CLARIFICATIONS.—The amendments made 

15 by subsection (c) shall take effect as if included in 

16 the amendments made by the Energy Improvement 

17 and Extension Act of 2008. 

18 SEC. 515. CREDIT FOR PRODUCING FUEL FROM COKE OR 

19 COKE GAS. 

20 (a) IN GENERAL.—Paragraph (1) of section 45K(g) 

21 is amended by striking ‘‘January 1, 2010’’ and inserting 

22 ‘‘January 1, 2017’’. 

23 (b) EFFECTIVE DATE.—The amendment made by 

24 this section shall apply to facilities placed in service after 

25 December 31, 2009. 


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1 TITLE VI—ENERGY EFFICIENCY 

2 Subtitle A—Rural Energy Savings 

3 Program 

4 SEC. 601. RURAL ENERGY SAVINGS PROGRAM. 

5 Title IX of the Farm Security and Rural Investment 

6 Act of 2002 (7 U.S.C. 8101 et seq.) is amended by adding 

7 the following: 

8 ‘‘SEC. 9014. RURAL ENERGY SAVINGS PROGRAM. 

9 ‘‘(a) PURPOSE.—The purpose of this section is to cre10 ate and save jobs by providing loans to qualified con11 sumers that will use the loan proceeds to implement en12 ergy efficiency measures to achieve significant reductions 

13 in energy costs, energy consumption, or carbon emissions. 

14 ‘‘(b) DEFINITIONS.—In this section: 

15 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en16 tity’ means— 

17 ‘‘(A) any public power district, public util18 ity district, or similar entity, or any electric co19 operative described in sections 501(c)(12) or 

20 1381(a)(2)(C) of the Internal Revenue Code of 

21 1986, that borrowed and repaid, prepaid, or is 

22 paying an electric loan made or guaranteed by 

23 the Rural Utilities Service (or any predecessor 

24 agency); or 


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1 ‘‘(B) any entity primarily owned or con2 trolled by an entity or entities described in sub3 paragraph (A). 

4 ‘‘(2) ENERGY EFFICIENCY MEASURES.—The 

5 term ‘energy efficiency measures’ means, for or at 

6 property served by an eligible entity, structural im7 provements and investments in cost-effective, com8 mercial off-the-shelf technologies to reduce home en9 ergy use. 

10 ‘‘(3) QUALIFIED CONSUMER.—The term ‘quali11 fied consumer’ means a consumer served by an eligi12 ble entity that has the ability to repay a loan made 

13 under subsection (d), as determined by an eligible 

14 entity. 

15 ‘‘(4) QUALIFIED ENTITY.—The term ‘qualified 

16 entity’ means a non-governmental, not-for-profit or17 ganization that the Secretary determines has signifi18 cant experience, on a national basis, in providing eli19 gible entities with— 

20 ‘‘(A) energy, environmental, energy effi21 ciency, and information research and tech22 nology; 

23 ‘‘(B) training, education, and consulting; 


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1 ‘‘(C) guidance in energy and operational 

2 issues and rural community and economic de3 velopment; 

4 ‘‘(D) advice in legal and regulatory mat5 ters affecting electric service and the environ6 ment; and 

7 ‘‘(E) other relevant assistance. 

8 ‘‘(5) SECRETARY.—The term ‘Secretary’ means 

9 the Secretary of Agriculture, acting through the 

10 Rural Utilities Service. 

11 ‘‘(c) LOANS AND GRANTS TO ELIGIBLE ENTITIES.— 

12 ‘‘(1) LOANS AUTHORIZED.—Subject to para13 graph (2), the Secretary shall make loans to eligible 

14 entities that agree to use the loan funds to make 

15 loans to qualified consumers as described in sub16 section (d) for the purpose of implementing energy 

17 efficiency measures. 

18 ‘‘(2) LIST, PLAN, AND MEASUREMENT AND

19 VERIFICATION REQUIRED.— 

20 ‘‘(A) IN GENERAL.—As a condition to re21 ceiving a loan or grant under this subsection, 

22 an eligible entity shall— 

23 ‘‘(i) establish a list of energy effi24 ciency measures that is expected to deVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00260 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 crease energy use or costs of qualified con2 sumers; 

3 ‘‘(ii) prepare an implementation plan 

4 for use of the loan funds; and 

5 ‘‘(iii) provide for appropriate measure6 ment and verification to ensure the effec7 tiveness of the energy efficiency loans 

8 made by the eligible entity and that there 

9 is no conflict of interest in the carrying out 

10 of this section. 

11 ‘‘(B) REVISION OF LIST OF ENERGY EFFI12 CIENCY MEASURES.—An eligible entity may up13 date the list required under subparagraph 

14 (A)(i) to account for newly available efficiency 

15 technologies, subject to the approval of the Sec16 retary. 

17 ‘‘(C) EXISTING ENERGY EFFICIENCY PRO18 GRAMS.—An eligible entity that, on or before 

19 the date of the enactment of this section or 

20 within 60 days after such date, has already es21 tablished an energy efficiency program for 

22 qualified consumers may use an existing list of 

23 energy efficiency measures, implementation 

24 plan, or measurement and verification system of 

25 that program to satisfy the requirements of 


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1 subparagraph (A) if the Secretary determines 

2 the list, plans, or systems are consistent with 

3 the purposes of this section. 

4 ‘‘(3) NO INTEREST.—A loan under this sub5 section shall bear no interest. 

6 ‘‘(4) REPAYMENT.—A loan under this sub7 section shall be repaid not more than 10 years from 

8 the date on which an advance on the loan is first 

9 made to the eligible entity. 

10 ‘‘(5) LOAN FUND ADVANCES.—The Secretary 

11 shall provide eligible entities with a schedule of not 

12 more than ten years for advances of loan funds, ex13 cept that any advance of loan funds to an eligible 

14 entity in any single year shall not exceed 50 percent 

15 of the approved loan amount. 

16 ‘‘(6) JUMP-START GRANTS.—The Secretary 

17 shall make grants available to eligible entities se18 lected to receive a loan under this subsection in 

19 order to assist an eligible entity to defray costs, in20 cluding costs of contractors for equipment and labor, 

21 except that no eligible entity may receive a grant 

22 amount that is greater than four percent of the loan 

23 amount. 

24 ‘‘(d) LOANS TO QUALIFIED CONSUMERS.— 


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1 ‘‘(1) TERMS OF LOANS.—Loans made by an eli2 gible entity to qualified consumers using loan funds 

3 provided by the Secretary under subsection (c)— 

4 ‘‘(A) may bear interest, not to exceed three 

5 percent, to be used for purposes that include es6 tablishing a loan loss reserve and to offset per7 sonnel and program costs of eligible entities to 

8 provide the loans; 

9 ‘‘(B) shall finance energy efficiency meas10 ures for the purpose of decreasing energy usage 

11 or costs of the qualified consumer by an 

12 amount such that a loan term of not more than 

13 ten years will not pose an undue financial bur14 den on the qualified consumer, as determined 

15 by the eligible entity; 

16 ‘‘(C) shall not be used to fund energy effi17 ciency measures made to personal property un18 less the personal property— 

19 ‘‘(i) is or becomes attached to real 

20 property as a fixture; or 

21 ‘‘(ii) is a manufactured home; 

22 ‘‘(D) shall be repaid through charges 

23 added to the electric bill of the qualified con24 sumer; and 


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1 ‘‘(E) shall require an energy audit by an 

2 eligible entity to determine the impact of pro3 posed energy efficiency measures on the energy 

4 costs and consumption of the qualified con5 sumer. 

6 ‘‘(2) CONTRACTORS.—In addition to any other 

7 qualified general contractor, eligible entities may 

8 serve as general contractors. 

9 ‘‘(e) CONTRACT FOR MEASUREMENT AND

10 VERIFICATION, TRAINING, AND TECHNICAL ASSIST11 ANCE.— 

12 ‘‘(1) CONTRACT REQUIRED.—Not later than 60 

13 days after the date of enactment of this section, the 

14 Secretary shall enter into one or more contracts with 

15 a qualified entity for the purposes of— 

16 ‘‘(A) providing measurement and 

17 verification activities, including— 

18 ‘‘(i) developing and completing a rec19 ommended protocol for measurement and 

20 verification for the Rural Utilities Service; 

21 ‘‘(ii) establishing a national measure22 ment and verification committee consisting 

23 of representatives of eligible entities to as24 sist the contractor in carrying out this sec25 tion; 


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1 ‘‘(iii) providing measurement and 

2 verification consulting services to eligible 

3 entities that receive loans under this sec4 tion; and 

5 ‘‘(iv) providing training in measure6 ment and verification; and 

7 ‘‘(B) developing a program to provide tech8 nical assistance and training to the employees 

9 of eligible entities to carry out this section. 

10 ‘‘(2) USE OF SUBCONTRACTORS AUTHOR11 IZED.—A qualified entity that enters into a contract 

12 under paragraph (1) may use subcontractors to as13 sist the qualified entity in performing the contract. 

14 ‘‘(f) FAST START DEMONSTRATION PROJECTS.— 

15 ‘‘(1) DEMONSTRATION PROJECTS REQUIRED.— 

16 The Secretary shall enter into agreements with eligi17 ble entities (or groups of eligible entities) that have 

18 energy efficiency programs described in subsection 

19 (c)(2)(C) to establish an energy efficiency loan dem20 onstration projects consistent with the purposes of 

21 this section that— 

22 ‘‘(A) implement approaches to energy au23 dits and investments in energy efficiency meas24 ures that yield measurable and predictable sav25 ings; 


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1 ‘‘(B) use measurement and verification 

2 processes to determine the effectiveness of en3 ergy efficiency loans made by eligible entities; 

4 ‘‘(C) include training for employees of eli5 gible entities, including any contractors of such 

6 entities, to implement or oversee the activities 

7 described in subparagraphs (A) and (B); 

8 ‘‘(D) provide for the participation of a ma9 jority of eligible entities in a State; 

10 ‘‘(E) reduce the need for generating capac11 ity; 

12 ‘‘(F) provide efficiency loans to— 

13 ‘‘(i) not fewer than 20,000 consumers, 

14 in the case of a single eligible entity; or 

15 ‘‘(ii) not fewer than 80,000 con16 sumers, in the case of a group of eligible 

17 entities; and 

18 ‘‘(G) serve areas where a large percentage 

19 of consumers reside— 

20 ‘‘(i) in manufactured homes; or 

21 ‘‘(ii) in housing units that are more 

22 than 50 years old. 

23 ‘‘(2) DEADLINE FOR IMPLEMENTATION.—The 

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1 tered into not later than 90 days after the date of 

2 enactment of this section. 

3 ‘‘(3) EFFECT ON AVAILABILITY OF LOANS NA4 TIONALLY.—Nothing in this subsection shall delay 

5 the availability of loans to eligible entities on a na6 tional basis beginning not later than 180 days after 

7 the date of enactment of this section. 

8 ‘‘(4) ADDITIONAL DEMONSTRATION PROJECT

9 AUTHORITY.—The Secretary may conduct dem10 onstration projects in addition to the project re11 quired by paragraph (1). The additional demonstra12 tion projects may be carried out without regard to 

13 subparagraphs (D), (F), or (G) of paragraph (1). 

14 ‘‘(g) ADDITIONAL AUTHORITY.—The authority pro15 vided in this section is in addition to any authority of the 

16 Secretary to offer loans or grants under any other law. 

17 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— 

18 ‘‘(1) IN GENERAL.—There is authorized to be 

19 appropriated to the Secretary to carry out this sec20 tion $993,000,000 for fiscal year 2012, to remain 

21 available until expended. 

22 ‘‘(2) AMOUNTS FOR LOANS, GRANTS, STAFF23 ING.—Of the amounts appropriated pursuant to the 

24 authorization of appropriations in paragraph (1), the 

25 Secretary shall make available— 


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1 ‘‘(A) $755,000,000 for the purpose of cov2 ering the cost of direct loans to eligible entities 

3 under subsection (c) to subsidize gross obliga4 tions in the principal amount of not to exceed 

5 $4,900,000,000; 

6 ‘‘(B) $25,000,000 for measurement and 

7 verification activities under subsection 

8 (e)(1)(A); 

9 ‘‘(C) $2,000,000 for the contract for train10 ing and technical assistance authorized by sub11 section (e)(1)(B); 

12 ‘‘(D) $200,000,000 for jump-start grants 

13 authorized by subsection (c)(6); and 

14 ‘‘(E) $1,100,000 for each of fiscal years 

15 2012 through 2021 for 10 additional employees 

16 of the Rural Utilities Service to carry out this 

17 section. 

18 ‘‘(i) EFFECTIVE PERIOD.—Subject to subsection 

19 (h)(1) and except as otherwise provided in this section, 

20 the loans, grants, and other expenditures required to be 

21 made under this section are authorized to be made during 

22 each of fiscal years 2012 through 2016. 

23 ‘‘(j) REGULATIONS.— 

24 ‘‘(1) IN GENERAL.—Except as otherwise pro25 vided in this subsection, not later than 120 days 


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1 after the date of enactment of this section, the Sec2 retary shall promulgate such regulations as are nec3 essary to implement this section. 

4 ‘‘(2) PROCEDURE.—The promulgation of the 

5 regulations and administration of this section shall 

6 be made without regard to— 

7 ‘‘(A) chapter 35 of title 44, United States 

8 Code (commonly known as the ‘Paperwork Re9 duction Act’); and 

10 ‘‘(B) the Statement of Policy of the Sec11 retary of Agriculture effective July 24, 1971 

12 (36 Fed. Reg. 13804), relating to notices of 

13 proposed rulemaking and public participation in 

14 rulemaking. 

15 ‘‘(3) CONGRESSIONAL REVIEW OF AGENCY

16 RULEMAKING.—In carrying out this section, the Sec17 retary shall use the authority provided under section 

18 808 of title 5, United States Code. 

19 ‘‘(4) INTERIM REGULATIONS.—Notwithstanding 

20 paragraphs (1) and (2), to the extent regulations are 

21 necessary to carry out any provision of this section, 

22 the Secretary shall implement such regulations 

23 through the promulgation of an interim rule.’’. 


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1 Subtitle B—Tax Provisions 

2 SEC. 611. ENERGY-EFFICIENT COMMERCIAL BUILDINGS. 

3 (a) INCREASE IN DEDUCTION.— 

4 (1) IN GENERAL.—Subparagraph (A) of section 

5 179D(b)(1) of the Internal Revenue Code of 1986 is 

6 amended by striking ‘‘$1.80’’ and inserting ‘‘$3.00’’. 

7 (2) PARTIAL ALLOWANCE.—Clause (ii) of sec8 tion 179D(d)(1)(A) of such Code is amended by 

9 striking ‘‘$.60’’ and inserting ‘‘$1.50’’. 

10 (b) EXTENSION.—Subsection (h) of section 179D of 

11 the Internal Revenue Code of 1986 is amended by striking 

12 ‘‘December 31, 2013’’ and inserting ‘‘December 31, 

13 2016’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to property placed in service after 

16 December 31, 2010. 

17 SEC. 612. ENERGY-EFFICIENT NEW HOMES. 

18 (a) IN GENERAL.—Subsection (g) of section 45L of 

19 the Internal Revenue Code of 1986 is amended by striking 

20 ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

21 2016’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to homes acquired after December 

24 31, 2011. 


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1 SEC. 613. ENERGY-EFFICIENT EXISTING HOMES. 

2 (a) IN GENERAL.—Paragraph (2) of section 25C(g) 

3 of the Internal Revenue Code of 1986 is amended by strik4 ing ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

5 2016’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to property placed in service after 

8 December 31, 2011. 

9 SEC. 614. ENERGY-EFFICIENT APPLIANCES. 

10 (a) IN GENERAL.—Section 45M(b) of the Internal 

11 Revenue Code of 1986 is amended by striking ‘‘2011’’ 

12 each place it appears and inserting ‘‘2011, 2012, 2013, 

13 2014, 2015, or 2016’’. 

14 (b) DIRECT PAYMENT OF CREDIT.— 

15 (1) IN GENERAL.—Within 90 days after the 

16 date of the enactment of this Act, the Secretary of 

17 Energy, in consultation with the Secretary of the 

18 Treasury, shall establish a program under which a 

19 manufacturer of qualified energy efficient appliances 

20 (within the meaning of section 45M of the Internal 

21 Revenue Code of 1986) may apply for, and receive, 

22 direct payment of the reduced credit amount of the 

23 credit which would otherwise be determined under 

24 section 45M of the Internal Revenue Code of 1986 

25 with respect to such appliances. Such request shall 


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1 be approved or denied not later than 90 days after 

2 such request is received. 

3 (2) ADVANCE DETERMINATION.—The Secretary 

4 of Energy shall provide under the program estab5 lished under paragraph (1) that the reduced credit 

6 amount with respect to a manufacturer of qualified 

7 energy efficient appliances may be determined at the 

8 beginning of the taxable year based on the manufac9 turer’s projected production of such appliances for 

10 such year. 

11 (3) PAYMENT.—The Secretary of Energy shall 

12 notify the Secretary of the Treasury of the approval 

13 of a request under paragraph (1), and the Secretary 

14 of the Treasury shall make the direct payment of 

15 the reduced credit amount to the manufacturer, not 

16 later than 90 days after such request is received by 

17 the Secretary of Energy. 

18 (4) RECONCILIATION OF CREDIT AND DIRECT

19 PAYMENT.—The Secretary of the Treasury shall, by 

20 regulations, provide for recapturing the amount of 

21 any direct payments to a manufacturer under this 

22 subsection for a taxable year which exceed the re23 duced credit amount for such manufacturer with re24 spect to such taxable year. 


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1 (5) SECTION 45M CREDIT NOT ALLOWED.—No 

2 credit shall be allowed under section 45M of such 

3 Code with respect to any manufacturer who receives 

4 the direct payment of the reduced credit amount 

5 under this subsection. 

6 (6) REDUCED CREDIT AMOUNT.—For purposes 

7 of this subsection, the reduced credit amount is 85 

8 percent. 

9 TITLE VII—ENERGY RESEARCH 

10 AND DEVELOPMENT 

11 SEC. 701. NEXT STEP ENERGY STORAGE RESEARCH CEN12 TER. 

13 (a) ESTABLISHMENT.—The Secretary shall establish 

14 a center, to be known as the ‘‘Next Step Energy Storage 

15 Research Center’’ (referred to in this section as the ‘‘Cen16 ter’’) to provide for the conduct of research on, and the 

17 development and deployment of advanced energy storage 

18 materials and systems for— 

19 (1) mobile and stationary applications; and 

20 (2) transportation, residential, and commercial 

21 uses. 

22 (b) AUTHORIZED RESEARCH ACTIVITIES.—The Cen23 ter may use amounts made available under this section 

24 for research on— 


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1 (1) innovative concepts that incorporate new 

2 materials and chemical processes in electrochemical 

3 energy storage technologies; 

4 (2) the interactions of materials that control 

5 electrochemical processes in electrical energy storage 

6 technologies; 

7 (3) designing innovative materials and inter8 facial structures to enable improvements in energy 

9 storage technologies, with an emphasis on— 

10 (A) electrode and electrolyte interfaces and 

11 interfacial processes; 

12 (B) innovations in electrolytes; 

13 (C) innovations in cathode and anode tech14 nology; and 

15 (D) nanoscale structures and nanostruc16 tured materials; 

17 (4) innovative characterization tools for energy 

18 storage technologies to assist in understanding key 

19 processes at the atomic level and molecular level; 

20 (5) methods to improve cost and performance 

21 projections for energy storage technologies; 

22 (6) ways in which to increase energy storage ca23 pabilities; 

24 (7) ways in which to develop the capability for 

25 fast recharge cycles in energy storage technologies; 


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1 (8) ways in which to address lifetime concerns 

2 relating to energy storage technologies, including ex3 tending useful lifetimes and end-of-life battery recy4 cling— 

5 (A) to prevent spread of contamination 

6 from used batteries; and 

7 (B) to develop techniques to repurpose 

8 used materials in new batteries; and 

9 (9) requirements for the transition of produc10 tion of energy storage systems in a laboratory set11 ting to the commercial production of energy storage 

12 systems. 

13 (c) LIMITATION ON USE OF FUNDS.—Amounts made 

14 available under this section shall not be used for the con15 struction of new facilities for the Center, but may be ap16 plied toward the cost of leasing facilities, and purchasing 

17 or renting equipment, for the Center. 

18 (d) ANNUAL REPORTS.— 

19 (1) IN GENERAL.—Annually, the Secretary 

20 shall submit to Congress a report that describes the 

21 progress of the Center with respect to meeting the 

22 research goals for the Center established by the Sec23 retary for the fiscal year covered by the report. 

24 (2) PENALTY.—If an annual report submitted 

25 under paragraph (1) indicates that the Center did 


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1 not meet the goal for the fiscal year described in 

2 that paragraph, the amounts to be made available 

3 for the Center for the subsequent fiscal year shall be 

4 reduced by 10 percent. 

5 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to carry out this sec7 tion— 

8 (1) $30,000,000 for fiscal year 2012; and 

9 (2) $25,000,000 for each of fiscal years 2013 

10 through 2017. 

11 SEC. 702. NUCLEAR POWER INITIATIVES. 

12 Section 952 of the Energy Policy Act of 2005 (42 

13 U.S.C. 16272) is amended by adding at the end the fol14 lowing: 

15 ‘‘(f) SMALL MODULAR REACTOR INITIATIVE.— 

16 ‘‘(1) DEFINITIONS.—In this subsection: 

17 ‘‘(A) CHAIRMAN.—The term ‘Chairman’ 

18 means the Chairman of the Commission. 

19 ‘‘(B) COMMISSION.—The term ‘Commis20 sion’ means the Nuclear Regulatory Commis21 sion. 

22 ‘‘(C) SMALL MODULAR REACTOR.—The 

23 term ‘small modular reactor’ means a nuclear 

24 reactor with a rated capacity of less than 300 

25 electrical megawatts. 


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1 ‘‘(2) DUTY OF SECRETARY.—Not later than 10 

2 years after the date of enactment of this subsection, 

3 the Secretary shall carry out, through cooperative 

4 agreements with private sector partners, a pro5 gram— 

6 ‘‘(A) to develop a standard design for 

7 small modular reactors that— 

8 ‘‘(i) satisfies enhanced safety and pro9 liferation controls; and 

10 ‘‘(ii) may be implemented through 

11 cost-efficient manufacturing and construc12 tion; 

13 ‘‘(B) to obtain a design certification from 

14 the Commission for the standard design; 

15 ‘‘(C) to develop a licensing application pro16 cedure for each small modular reactor that is 

17 the subject of the standard design; and 

18 ‘‘(D) to obtain a license from the Commis19 sion for the standard design. 

20 ‘‘(3) REQUIREMENTS.— 

21 ‘‘(A) CONSULTATION WITH CHAIRMAN.— 

22 To ensure that the activities of the Secretary 

23 under this subsection are cost-effective and 

24 compliment the activities of the Commission, in 


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1 carrying out this subsection, the Secretary shall 

2 consult with the Chairman. 

3 ‘‘(B) STANDARD DESIGN.—The standard 

4 design developed under this subsection shall in5 clude a design for optimizing the staffing re6 quirements of the small modular reactor that is 

7 the subject of the standard design— 

8 ‘‘(i) to minimize the cost of electricity 

9 produced by the small modular reactor; 

10 and 

11 ‘‘(ii) to improve overall plant econom12 ics of the small modular reactor without 

13 compromising safety. 

14 ‘‘(C) STAFFING REQUIREMENTS.—In car15 rying out this subsection, the Secretary shall 

16 submit to Congress and the Commission a re17 port that identifies each issue that the Sec18 retary determines— 

19 ‘‘(i) would impact the staffing require20 ments of a small modular reactor that is 

21 the subject of the standard design under 

22 this subsection; and 

23 ‘‘(ii) shall be considered in the devel24 opment and deployment of each small modVerDate Mar 15 2010 01:47 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00278 Fmt 6652 Sfmt 6201 E:\BILLS\S1220.IS S1220

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1 ular reactor that is the subject of the 

2 standard design under this subsection. 

3 ‘‘(g) ADVANCED NUCLEAR FUELS AND FUEL SYS4 TEMS INVESTIGATION PROGRAM.— 

5 ‘‘(1) DUTY OF SECRETARY.—Not later than 

6 180 days after the date of enactment of this sub7 section, the Secretary shall initiate an advanced nu8 clear fuels and fuel systems investigation program to 

9 promote— 

10 ‘‘(A) the investigation of advanced nuclear 

11 fuels that have a higher burn efficiency and 

12 higher proliferation resistance; and 

13 ‘‘(B) the development of nuclear plants 

14 with increased proliferation resistance and 

15 lower capital costs that meet each safety re16 quirement of the Nuclear Regulatory Commis17 sion. 

18 ‘‘(2) REQUIREMENTS.— 

19 ‘‘(A) THORIUM FOCUS.—In carrying out 

20 the program under this subsection, the Sec21 retary shall focus on thorium as a nuclear fuel 

22 with respect to the Fuel Cycle Research and 

23 Development program of the Department of 

24 Energy— 


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1 ‘‘(i) to develop an experimental reac2 tor design; 

3 ‘‘(ii) to designate a location to con4 struct the reactor that is the subject of the 

5 design under clause (i); and 

6 ‘‘(iii) to design a cost and construc7 tion schedule regarding the reactor de8 scribed in clause (ii). 

9 ‘‘(B) 5-YEAR STRATEGY.— 

10 ‘‘(i) IN GENERAL.—In carrying out 

11 the program under this subsection, the 

12 Secretary shall develop a 5-year strategy 

13 for Generation IV System nuclear plant 

14 technology (including nuclear plant tech15 nology more advanced than Generation IV 

16 nuclear energy systems) to provide coordi17 nation with the Advanced Reactor Con18 cepts program of the Department of En19 ergy. 

20 ‘‘(ii) ROADMAP.— 

21 ‘‘(I) IN GENERAL.—In developing 

22 the 5-year strategy under this sub23 paragraph, the Secretary shall include 

24 a roadmap for the long-term funding 

25 that is required— 


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1 ‘‘(aa) to design, construct, 

2 and start operations of an ad3 vanced reactor concept; and 

4 ‘‘(bb) to overcome technical 

5 and scientific challenges pre6 venting commercialization. 

7 ‘‘(II) REQUIREMENTS.—The 

8 roadmap described in subclause (I) 

9 shall include a schedule for commer10 cial implementation of technologies in11 vestigated by the Secretary under the 

12 Advanced Reactor Concepts program 

13 of the Department of Energy. 

14 ‘‘(h) SPENT FUEL RESEARCH PROGRAM.— 

15 ‘‘(1) DEFINITION OF RESEARCH AND DEVELOP16 MENT CENTER.—In this subsection, the term ‘re17 search and development center’ means a spent fuel 

18 recycling research and development center des19 ignated under paragraph (2)(A). 

20 ‘‘(2) SPENT FUEL RECYCLING RESEARCH AND

21 DEVELOPMENT CENTER.— 

22 ‘‘(A) IN GENERAL.—Not later than 90 

23 days after the date of enactment of this sub24 section, the Secretary shall designate a National 


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1 Laboratory as a spent fuel recycling research 

2 and development center. 

3 ‘‘(B) PURPOSE.— 

4 ‘‘(i) IN GENERAL.—In accordance 

5 with clause (ii), the research and develop6 ment center shall serve as the lead site for 

7 continuing research and development of 

8 advanced nuclear fuel cycles and isotope 

9 separation technologies. 

10 ‘‘(ii) RESEARCH INITIATIVES.—In car11 rying out clause (i), the research and de12 velopment center shall provide coordination 

13 with the Secretary regarding the Fuel 

14 Cycle Research and Development program 

15 of the Department of Energy— 

16 ‘‘(I) to minimize any redundancy 

17 of related research programs; 

18 ‘‘(II) to develop a strategic goal 

19 and a plan to attain the strategic 

20 goal; and 

21 ‘‘(III) to maintain the focus of 

22 the research program toward the stra23 tegic goal described in subclause (II). 

24 ‘‘(C) REPORT.—Not later than 180 days 

25 after the date of enactment of this subsection, 


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1 the Secretary shall submit to the appropriate 

2 committees of Congress a report that contains, 

3 for the period covered by the report, a descrip4 tion of each unfulfilled responsibility of the De5 partment of Energy regarding the Nuclear 

6 Waste Policy Act of 1982 (42 U.S.C. 10101 et 

7 seq.). 

8 ‘‘(i) SPENT FUEL STORAGE RESEARCH PROGRAM.— 

9 ‘‘(1) IN GENERAL.—Not later than 180 days 

10 after the date of enactment of this subsection, the 

11 Secretary shall initiate a spent fuel storage research 

12 program, to be carried out as a component of the 

13 Fuel Cycle Research and Development program of 

14 the Department of Energy. 

15 ‘‘(2) REQUIREMENTS.—In carrying out the pro16 gram under this subsection, the Secretary shall— 

17 ‘‘(A) analyze the sustainability of the on18 site pool storage of spent fuel; 

19 ‘‘(B) develop a cost-benefit analysis of re20 racking spent fuel in ponds as compared to dry 

21 cask storage, to be provided to nuclear power 

22 plant owners and operators to assist with fuel 

23 storage decisionmaking; and 

24 ‘‘(C) develop a 15-year strategy for the 

25 storage of the spent nuclear fuel of the United 


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1 States, including recommendations, cost-esti2 mates, and schedules for resolving the accumu3 lation of spent nuclear fuel. 

4 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

5 There is authorized to be appropriated to the Sec6 retary to carry out the program under this sub7 section $300,000,000 for the period of fiscal years 

8 2012 through 2015.’’. 

9 TITLE VIII—BUDGETARY 

10 EFFECTS 

11 SEC. 801. BUDGETARY EFFECTS. 

12 The budgetary effects of this Act, for the purpose of 

13 complying with the Statutory Pay-As-You-Go Act of 2010, 

14 shall be determined by reference to the latest statement 

15 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

16 Act, submitted for printing in the Congressional Record 

17 by the Chairman of the Senate Budget Committee, pro18 vided that such statement has been submitted prior to the 

19 vote on passage. 

Æ 


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