```

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4426 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 4426

  To promote the domestic development and deployment of clean energy 
              technologies required for the 21st century.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 8, 2014

Ms. Lofgren (for herself, Ms. Matsui, Mr. Honda, Ms. Pingree of Maine, 
Mr. Clay, Ms. Norton, Ms. Chu, Mr. Israel, Mr. Cartwright, Ms. Clark of 
Massachusetts, Mr. Quigley, Mr. Holt, Ms. Tsongas, Ms. Shea-Porter, Mr. 
Cardenas, Mrs. Capps, Mr. George Miller of California, and Mr. Schiff) 
 introduced the following bill; which was referred to the Committee on 
    Ways and Means, and in addition to the Committee on Energy and 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
  To promote the domestic development and deployment of clean energy 
              technologies required for the 21st century.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Clean Energy 
Victory Bond Act of 2014''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
                  TITLE I--CLEAN ENERGY VICTORY BONDS

Sec. 101. Clean Energy Victory Bonds.
                      TITLE II--REVENUE PROVISIONS

Sec. 201. Extension and modification of energy investment tax credit.
Sec. 202. Extension of residential energy efficient property credit.
Sec. 203. Extension and modification of credit for electricity produced 
                            from certain renewable resources.
Sec. 204. Extension of credit for nonbusiness energy property.
Sec. 205. Performance based home energy improvements.
Sec. 206. Extension of new energy efficient home credit.
Sec. 207. Extension and modification of energy efficient commercial 
                            buildings deduction.
Sec. 208. Plug-in electric vehicle grants in lieu of tax credits.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) There is enormous potential for increasing renewable 
        energy production and energy efficiency installation in the 
        United States.
            (2) A major barrier to rapid expansion of renewable energy 
        and energy efficiency is upfront capital costs. Government tax 
        incentives and other assistance programs have proven beneficial 
        in encouraging private sector development, manufacturing and 
        installation of renewable energy and energy efficiency projects 
        nationwide. However, these government incentives are not 
        currently meeting demand from the private sector, and we are 
        not taking full advantage of the potential for clean energy and 
        transportation, as well as energy efficiency in the United 
        States.
            (3) Other nations, including China and Germany are ahead of 
        the United States in manufacturing and deploying various clean 
        energy technologies, even though the United States invented 
        many of these technologies.
            (4) Investments in renewable energy and energy efficiency 
        projects in the United States create green jobs for U.S. 
        citizens across the United States. Hundreds of thousands of 
        jobs could be created through expanded government support for 
        clean energy and energy efficiency.
            (5) As Americans choose energy efficiency and clean energy 
        and transportation, it reduces our dependence on foreign oil 
        and improves our energy security.
            (6) Bonds are a low-cost method for encouraging clean 
        energy, not requiring direct budget allocations or 
        expenditures. The projects supported through Clean Energy 
        Victory Bonds will create jobs and business revenues that will 
        increase Federal tax revenues, while simultaneously reducing 
        health and environmental costs incurred by the Federal 
        Government nationwide.
            (7) In World War II, over 80 percent of American households 
        purchased Victory Bonds to support the war effort, raising over 
        $185 billion, or over $2 trillion in today's dollars.

                  TITLE I--CLEAN ENERGY VICTORY BONDS

SEC. 101. CLEAN ENERGY VICTORY BONDS.

    (a) Initial Capitalization.--The Secretary of the Treasury shall 
issue Clean Energy Victory Bonds in an amount not to exceed 
$7,500,000,000 on the credit of the United States for purposes of 
raising revenue for the extension of certain energy-related tax 
benefits extended by this Act.
    (b) Denominations and Maturity.--Clean Energy Victory Bonds shall 
be in the form of United States Savings Bonds of Series EE or as 
administered by the Bureau of the Public Debt of the Department of the 
Treasury in denominations of $25, and shall mature within such periods 
as determined by the Secretary of the Treasury.
    (c) Interest.--Clean Energy Victory Bonds shall bear interest at 
the rate the Secretary of the Treasury sets for Savings Bonds of Series 
EE and Series I, plus a rate of return determined by the Secretary of 
the Treasury which is based on the valuation of carbon mitigated or 
energy saved through funded projects funded from the proceeds of such 
bonds.
    (d) Promotion.--
            (1) In general.--The Secretary of the Treasury shall take 
        such actions, independently and in conjunction with financial 
        institutions offering Clean Energy Victory Bonds, to promote 
        the purchase of Clean Energy Victory Bonds, including campaigns 
        describing the financial and social benefits of purchasing 
        Clean Energy Victory Bonds.
            (2) Promotional activities.--Such promotional activities 
        may include advertisements, pamphlets, or other promotional 
        materials--
                    (A) in periodicals;
                    (B) on billboards and other outdoor venues;
                    (C) on television;
                    (D) on radio;
                    (E) on the Internet;
                    (F) within financial institutions that offer Clean 
                Energy Victory Bonds; or
                    (G) any other venues or outlets the Secretary of 
                the Treasury may identify.
            (3) Limitation.--There are authorized to be appropriated 
        for such promotional activities not more than--
                    (A) $10,000,000 in the first year after the date of 
                the enactment of this Act, and
                    (B) $2,000,000 in each year thereafter.
    (e) Future Capitalization.--
            (1) In general.--After the initial capitalization limit is 
        reached under subsection (a), the Secretary of the Treasury may 
        issue additional Clean Energy Victory Bonds on the credit of 
        the United States.
            (2) Single issue limitation.--No such additional issue may 
        exceed $7,500,000,000.
            (3) Aggregate limitations.--The aggregate of any such 
        additional issues during the 4-year period beginning on the day 
        after the initial capitalization limit is reached under 
        subsection (a) may not exceed $50,000,000,000. The aggregate of 
        any such additional issues after the expiration of such 4-year 
        period may not exceed $50,000,000,000.
    (f) Lawful Investments.--Clean Energy Victory Bonds shall be lawful 
investments, and may be accepted as security for all fiduciary, trust, 
and public funds, the investment or deposit of which shall be under the 
authority or control of the United States or any officer or officers 
thereof.

                      TITLE II--REVENUE PROVISIONS

SEC. 201. EXTENSION AND MODIFICATION OF ENERGY INVESTMENT TAX CREDIT.

    (a) Extension.--
            (1) Solar energy.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii) 
        of section 48(a) of the Internal Revenue Code of 1986 are each 
        amended by striking ``January 1, 2017'' and inserting ``January 
        1, 2023''.
            (2) Geothermal heat pumps.--Clause (vii) of section 
        48(a)(3)(A) of such Code is amended by striking ``January 1, 
        2017'' and inserting ``January 1, 2023''.
            (3) Fuel cell property.--Subparagraph (D) of section 
        48(c)(1) of such Code is amended by striking ``December 31, 
        2016'' and inserting ``December 31, 2022''.
            (4) Microturbine property.--Subparagraph (D) of section 
        48(c)(2) of such Code is amended by striking ``December 31, 
        2016'' and inserting ``December 31, 2022''.
            (5) Combined heat and power.--Clause (iv) of section 
        48(c)(3) of such Code is amended by striking ``January 1, 
        2017'' and inserting ``January 1, 2023''.
            (6) Small wind.--Subparagraph (C) of section 48(c)(4) of 
        such Code is amended by striking ``December 31, 2016'' and 
        inserting ``December 31, 2022''.
            (7) Offshore wind.--
                    (A) In general.--Clause (ii) of section 48(a)(5)(C) 
                of such Code is amended--
                            (i) by striking ``is placed in service in'' 
                        and inserting the following: ``is--
                                    ``(I) except as provided in 
                                subclause (II), placed in service in'',
                            (ii) by adding at the end the following new 
                        subclause:
                                    ``(II) in the case of an offshore 
                                wind facility, placed in service after 
                                December 31, 2008, and before January 
                                1, 2021, and''.
                    (B) Offshore wind facility.--Paragraph (5) of 
                section 48(a) of such Code is amended by adding at the 
                end the following new subparagraph:
                    ``(E) Offshore wind facility.--The term `offshore 
                wind facility' means any qualified facility described 
                in section 45(d)(1) and located in the inland navigable 
                waters of the United States, including the Great Lakes, 
                or in the coastal waters of the United States, 
                including the territorial seas of the United States, 
                the exclusive economic zone of the United States, and 
                the outer Continental Shelf of the United States.''.
    (b) Modification of Fuel Cell Property.--Paragraph (1) of section 
48(c) of such Code, as amended by this Act, is amended by redesignating 
subparagraph (D) as subparagraph (E) and by inserting after 
subparagraph (C) the following new subparagraph:
                    ``(D) Exception for fuel derived from fossil 
                fuels.--The term `qualified fuel cell powerplant' shall 
                not include any fuel cell powerplant the fuel of which 
                is derived from, or is produced by using, any fossil 
                fuel.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 202. EXTENSION OF RESIDENTIAL ENERGY EFFICIENT PROPERTY CREDIT.

    (a) In General.--Subsection (g) of section 25D of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2016'' and 
inserting ``December 31, 2023''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2016.

SEC. 203. EXTENSION AND MODIFICATION OF CREDIT FOR ELECTRICITY PRODUCED 
              FROM CERTAIN RENEWABLE RESOURCES.

    (a) Extension.--Subsection (d) of section 45 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``January 1, 2013'' in paragraph (1) and 
        inserting ``January 1, 2023'',
            (2) by striking ``January 1, 2014'' each place it appears 
        in paragraphs (2), (3), (4), (9), and (11) and inserting 
        ``January 1, 2023'', and
            (3) by striking ``January 1, 2006'' in paragraph (4) and 
        inserting ``January 1, 2023''.
    (b) Modifications With Respect to Closed-Loop Biomass.--
            (1) In general.--Paragraph (2) of section 45(c) of such 
        Code is amended to read as follows:
            ``(2) Closed-loop biomass.--
                    ``(A) In general.--The term `closed-loop biomass' 
                means any organic matter from a plant which--
                            ``(i) is planted exclusively for purposes 
                        of being used at a qualified facility to 
                        produce electricity, or
                            ``(ii) is a byproduct from harvesting 
                        timber (including tops, branches, crooks) or is 
                        invasive woody vegetation that interferes with 
                        regeneration or the natural growth of the 
                        forest from which timber is harvested.
                    ``(B) Limitation.--For purposes of subparagraph 
                (A)(ii), byproduct from harvesting timber shall not be 
                treated as closed-loop biomass unless--
                            ``(i) such byproduct does not exceed 30 
                        percent (by weight) of the harvested timber to 
                        which it relates, and
                            ``(ii) the percentage byproduct removed (by 
                        weight) does not exceed--
                                    ``(I) 25 percent in the case of 
                                timber harvested from good soil, and
                                    ``(II) 0 percent in the case of 
                                timber harvested from poor soil.
                For purposes of the preceding sentence, soil quality 
                shall be determined by reference to soil 
                classifications by the Natural Resources Conservation 
                Service.''.
            (2) Qualified facility.--Paragraph (2) of section 45(d) of 
        such Code is amended by adding at the end the following new 
        subparagraph:
                    ``(D) Greenhouse gas emissions.--In the case of a 
                facility placed in service after December 31, 2014, 
                such term shall not include any facility unless, with 
                respect to the facility, the taxpayer annually during 
                the 10-year period described in subsection (a) 
                demonstrates to the satisfaction of the Secretary that 
                such facility's use of closed-loop biomass will result 
                in a 50-percent reduction in greenhouse gas emissions 
                compared to a similar facility using natural gas 
                combined-cycle generation.''.
    (c) Modification of Open-Loop Biomass Definition.--The second 
sentence of subparagraph (A) of section 45(c)(3) of such Code is 
amended--
            (1) by striking ``or biomass'' and inserting ``, biomass'', 
        and
            (2) by inserting before the period at the end the 
        following: ``, any biomass which is primarily a food crop, or 
        biomass derived from any crop that displaces any forest 
        existing on the date of the enactment of the Clean Energy 
        Victory Bond Act of 2014''.
    (d) Modification of Biofuel as Qualified Energy Resource.--
            (1) In general.--Paragraph (1) of section 45(c) of such 
        Code is amended by striking ``and'' at the end of subparagraph 
        (H), by striking the period at the end of subparagraph (I) and 
        inserting ``, and'', and by adding at the end the following new 
        subparagraph:
                    ``(J) second generation biomass.''.
            (2) Second generation biomass defined.--Subsection (c) of 
        section 45 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(11) Second generation biomass.--The term `second 
        generation biomass' means any biomass which is composed of 
        lignocellulosic or hemicellulosic matter that is available on a 
        renewable or recurring basis and that does not replace forested 
        land (other than any fuel described in section 
        40(b)(6)(E)(iii)).''.
            (3) Qualified facility.--Subsection (d) of section 45 of 
        such Code is amended by adding at the end the following new 
        paragraph:
            ``(12) Second generation biomass.--In the case of a 
        facility producing electricity from second generation biomass, 
        the term `qualified facility' means any facility owned by the 
        taxpayer which is originally placed in service on or after the 
        date of the enactment of this paragraph and before January 1, 
        2023.''.
            (4) Conforming amendments.--
                    (A) Subsection (d) of section 45 of such Code is 
                amended by striking ``January 1, 2014'' each place it 
                appears in paragraphs (2)(A)(i), (3), (6), and (7) and 
                inserting ``the date of the enactment of the Clean 
                Energy Victory Bond Act of 2014''.
                    (B) Clause (ii) of section 45(d)(2)(A) of such Code 
                is amended by striking ``January 1, 2014,'' and 
                inserting ``the date of the enactment of the Clean 
                Energy Victory Bond Act of 2014''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 204. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    (a) In General.--Paragraph (2) of section 25C(g) of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2013'' and 
inserting ``December 31, 2022''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 205. PERFORMANCE BASED HOME ENERGY IMPROVEMENTS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new section:

``SEC. 25E. PERFORMANCE BASED ENERGY IMPROVEMENTS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year for a qualified whole home energy efficiency retrofit an 
amount determined under subsection (b).
    ``(b) Amount Determined.--
            ``(1) In general.--Subject to paragraph (4), the amount 
        determined under this subsection is equal to--
                    ``(A) the base amount under paragraph (2), 
                increased by
                    ``(B) the amount determined under paragraph (3).
            ``(2) Base amount.--For purposes of paragraph (1)(A), the 
        base amount is $2,000, but only if the energy use for the 
        residence is reduced by at least 20 percent below the baseline 
        energy use for such residence as calculated according to 
        paragraph (5).
            ``(3) Increase amount.--For purposes of paragraph (1)(B), 
        the amount determined under this paragraph is $500 for each 
        additional 5 percentage point reduction in energy use.
            ``(4) Limitation.--In no event shall the amount determined 
        under this subsection exceed the lesser of--
                    ``(A) $5,000 with respect to any residence, or
                    ``(B) 30 percent of the qualified home energy 
                efficiency expenditures paid or incurred by the 
                taxpayer under subsection (c) with respect to such 
                residence.
            ``(5) Determination of energy use reduction.--For purposes 
        of this subsection--
                    ``(A) In general.--The reduction in energy use for 
                any residence shall be determined by modeling the 
                annual predicted percentage reduction in total energy 
                costs for heating, cooling, hot water, and permanent 
                lighting. It shall be modeled using computer modeling 
                software approved under subsection (d)(2) and a 
                baseline energy use calculated according to subsection 
                (d)(1)(C).
                    ``(B) Energy costs.--For purposes of subparagraph 
                (A), the energy cost per unit of fuel for each fuel 
                type shall be determined by dividing the total actual 
                energy bill for the residence for that fuel type for 
                the most recent available 12-month period by the total 
                energy units of that fuel type used over the same 
                period.
    ``(c) Qualified Home Energy Efficiency Expenditures.--For purposes 
of this section, the term `qualified home energy efficiency 
expenditures'--
            ``(1) means any amount paid or incurred by the taxpayer 
        during the taxable year for a qualified whole home energy 
        efficiency retrofit, including the cost of diagnostic 
        procedures, labor, and modeling,
            ``(2) includes only measures that have an average estimated 
        life of 5 years or more as determined by the Secretary, after 
        consultation with the Secretary of Energy,
            ``(3) does not include any amount which is paid or incurred 
        in connection with any expansion of the building envelope of 
        the residence, and
            ``(4) does not include improvements to swimming pools or 
        hot tubs or any other expenditure specifically excluded by the 
        Secretary, after consultation with the Secretary of Energy.
    ``(d) Qualified Whole Home Energy Efficiency Retrofit.--For 
purposes of this section--
            ``(1) In general.--The term `qualified whole home energy 
        efficiency retrofit' means the implementation of measures 
        placed in service during the taxable year intended to reduce 
        the energy use of the principal residence of the taxpayer which 
        is located in the United States. A qualified whole home energy 
        efficiency retrofit shall--
                    ``(A) be designed, implemented, and installed by a 
                contractor which is--
                            ``(i) accredited by the Building 
                        Performance Institute (hereafter in this 
                        section referred to as `BPI') or a preexisting 
                        BPI accreditation-based State certification 
                        program with enhancements to achieve State 
                        energy policy,
                            ``(ii) a Residential Energy Services 
                        Network (hereafter in this section referred to 
                        as `RESNET') accredited Energy Smart Home 
                        Performance Team, or
                            ``(iii) accredited by an equivalent 
                        certification program approved by the 
                        Secretary, after consultation with the 
                        Secretary of Energy, for this purpose,
                    ``(B) install a set of measures modeled to achieve 
                a reduction in energy use of at least 20 percent below 
                the baseline energy use established in subparagraph 
                (C), using computer modeling software approved under 
                paragraph (2),
                    ``(C) establish the baseline energy use by 
                calibrating the model using sections 3 and 4 and Annex 
                D of BPI Standard BPI-2400-S-2011: Standardized 
                Qualification of Whole House Energy Savings Estimates, 
                or an equivalent standard approved by the Secretary, 
                after consultation with the Secretary of Energy, for 
                this purpose,
                    ``(D) document the measures implemented in the 
                residence through photographs taken before and after 
                the retrofit, including photographs of its visible 
                energy systems and envelope as relevant, and
                    ``(E) implement a test-out procedure, following 
                guidelines of the applicable certification program 
                specified under clause (i) or (ii) of subparagraph (A), 
                or equivalent guidelines approved by the Secretary, 
                after consultation with the Secretary of Energy, for 
                this purpose, to ensure--
                            ``(i) the safe operation of all systems 
                        post retrofit, and
                            ``(ii) that all improvements are included 
                        in, and have been installed according to, 
                        standards of the applicable certification 
                        program specified under clause (i) or (ii) of 
                        subparagraph (A), or equivalent standards 
                        approved by the Secretary, after consultation 
                        with the Secretary of Energy, for this purpose.
                For purposes of subparagraph (A)(iii), an organization 
                or State may submit an equivalent certification program 
                for approval by the Secretary, in consultation with the 
                Secretary of Energy. The Secretary shall approve or 
                deny such submission not later than 180 days after 
                receipt, and, if the Secretary fails to respond in that 
                time period, the submitted equivalent certification 
                program shall be considered approved.
            ``(2) Approved modeling software.--For purposes of 
        paragraph (1)(B), the contractor shall use modeling software 
        certified by RESNET as following the software verification test 
        suites in section 4.2.1 of RESNET Publication No. 06-001 or 
        certified by an alternative organization as following an 
        equivalent standard, as approved by the Secretary, after 
        consultation with the Secretary of Energy, for this purpose.
            ``(3) Documentation.--The Secretary, after consultation 
        with the Secretary of Energy, shall prescribe regulations 
        directing what specific documentation is required to be 
        retained or submitted by the taxpayer in order to claim the 
        credit under this section, which shall include, in addition to 
        the photographs under paragraph (1)(D), a form approved by the 
        Secretary that is completed and signed by the qualified whole 
        home energy efficiency retrofit contractor under penalties of 
        perjury. Such form shall include--
                    ``(A) a statement that the contractor followed the 
                specified procedures for establishing baseline energy 
                use and estimating reduction in energy use,
                    ``(B) the name of the software used for calculating 
                the baseline energy use and reduction in energy use, 
                the percentage reduction in projected energy savings 
                achieved, and a statement that such software was 
                certified for this program by the Secretary, after 
                consultation with the Secretary of Energy,
                    ``(C) a statement that the contractor will retain 
                the details of the calculations and underlying energy 
                bills for 5 years and will make such details available 
                for inspection by the Secretary or the Secretary of 
                Energy, if so requested,
                    ``(D) a list of measures installed and a statement 
                that all measures included in the reduction in energy 
                use estimate are included in, and installed according 
                to, standards of the applicable certification program 
                specified under clause (i) or (ii) of subparagraph (A), 
                or equivalent standards approved by the Secretary, 
                after consultation with the Secretary of Energy,
                    ``(E) a statement that the contractor meets the 
                requirements of paragraph (1)(A), and
                    ``(F) documentation of the total cost of the 
                project in order to comply with the limitation under 
                subsection (b)(4)(B).
    ``(e) Additional Rules.--For purposes of this section--
            ``(1) No double benefit.--
                    ``(A) In general.--With respect to any residence, 
                no credit shall be allowed under this section for any 
                taxable year in which the taxpayer claims a credit 
                under section 25C.
                    ``(B) Renewable energy systems and appliances.--In 
                the case of a renewable energy system or appliance that 
                qualifies for another credit under this chapter, the 
                resulting reduction in energy use shall not be taken 
                into account in determining the percentage energy use 
                reductions under subsection (b).
                    ``(C) No double benefit for certain expenditures.--
                The term `qualified home energy efficiency 
                expenditures' shall not include any expenditure for 
                which a deduction or credit is claimed by the taxpayer 
                under this chapter for the taxable year or with respect 
                to which the taxpayer receives any Federal energy 
                efficiency rebate.
            ``(2) Principal residence.--The term `principal residence' 
        has the same meaning as when used in section 121.
            ``(3) Special rules.--Rules similar to the rules under 
        paragraphs (4), (5), (6), (7), and (8) of section 25D(e) and 
        section 25C(e)(2) shall apply, as determined by the Secretary, 
        after consultation with the Secretary of Energy.
            ``(4) Basis adjustments.--For purposes of this subtitle, if 
        a credit is allowed under this section with respect to any 
        expenditure with respect to any property, the increase in the 
        basis of such property which would (but for this paragraph) 
        result from such expenditure shall be reduced by the amount of 
        the credit so allowed.
            ``(5) Election not to claim credit.--No credit shall be 
        determined under subsection (a) for the taxable year if the 
        taxpayer elects not to have subsection (a) apply to such 
        taxable year.
            ``(6) Multiple year retrofits.--If the taxpayer has claimed 
        a credit under this section in a previous taxable year, the 
        baseline energy use for the calculation of reduced energy use 
        must be established after the previous retrofit has been placed 
        in service.
    ``(f) Termination.--This section shall not apply with respect to 
any costs paid or incurred after December 31, 2022.
    ``(g) Secretary Review.--The Secretary, after consultation with the 
Secretary of Energy, shall establish a review process for the retrofits 
performed, including an estimate of the usage of the credit and a 
statistically valid analysis of the average actual energy use 
reductions, utilizing utility bill data collected on a voluntary basis, 
and report to Congress not later than June 30, 2016, any findings and 
recommendations for--
            ``(1) improvements to the effectiveness of the credit under 
        this section, and
            ``(2) expansion of the credit under this section to rental 
        units.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (36),
                    (B) by striking the period at the end of paragraph 
                (37) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(38) to the extent provided in section 25E(e)(4), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 25E.''.
            (2) Section 6501(m) is amended by inserting ``25E(e)(5),'' 
        after ``section''.
            (3) The table of sections for subpart A of part IV of 
        subchapter A chapter 1 is amended by inserting after the item 
        relating to section 25D the following new item:

``Sec. 25E. Performance based energy improvements.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred for a qualified whole home energy 
efficiency retrofit placed in service after December 31, 2013.

SEC. 206. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.

    (a) In General.--Subsection (g) of section 45L of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2013'' and 
inserting ``December 31, 2022''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2013.

SEC. 207. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL 
              BUILDINGS DEDUCTION.

    (a) In General.--Subsection (h) of section 179D of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2013'' and 
inserting ``December 31, 2022''.
    (b) Increase in Deduction Limitations.--
            (1) In general.--Subparagraph (A) of section 179D(b)(1) of 
        such Code is amended by striking ``$1.80'' and inserting 
        ``$3.00''.
            (2) Partial pay.--Subparagraph (A) of section 179D(d)(1) is 
        amended by striking ``substituting `$.60' for `$1.80'.'' and 
        inserting ``substituting `$1.00' for `$3.00'.''.
            (3) Reduced amount for lower efficiency property.--
        Subsection (d) of section 179D of such Code is amended by 
        adding at the end the following new paragraph:
            ``(1) 30 to 50 percent property.--In the case of property 
        which would be energy efficient commercial building property 
        were subsection (c)(1)(D) applied by substituting `more than 30 
        percent and less than 50 percent' for `50 percent or more', 
        subsection (b) shall be applied to such property by 
        substituting `$1.80' for `$3.00'.''.
    (c) Updating Partial Allowance Regulations.--Subparagraph (B) of 
section 179D(d)(1) of such Code is amended by adding at the end the 
following: ``Not later than 1 year after the date of the enactment of 
the Clean Energy Victory Bond Act of 2014, and every three years 
thereafter, the Secretary shall, after consultation with the Secretary 
of Energy, update the targets for such systems in such a manner as the 
Secretary determines will encourage innovation in commercial building 
energy efficiency.''.
    (d) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 208. PLUG-IN ELECTRIC VEHICLE GRANTS IN LIEU OF TAX CREDITS.

    (a) In General.--The Secretary of Energy, in consultation with the 
Secretary of the Treasury, shall establish a voluntary program through 
which the Secretary of Energy shall--
            (1) authorize the issuance of an electronic voucher to 
        offset the purchase price of a qualified plug-in electric 
        vehicle or a new qualified plug-in electric drive motor vehicle 
        purchased from a dealer participating in the program;
            (2) register dealers for participation in the program and 
        require that all dealers so registered accept such vouchers as 
        partial payment or down payment for the purchase of any such 
        vehicle offered for sale by such dealer;
            (3) make electronic payments to dealers for eligible 
        transactions by such dealers; and
            (4) in consultation with the Inspector General of the 
        Department of Transportation establish and provide for the 
        enforcement of measures to prevent and penalize fraud under the 
        program.
    (b) Voucher Limitations.--A voucher issued under the program shall 
have a value that may be applied to offset the purchase price of a 
vehicle by--
            (1) in the case of a qualified plug-in electric vehicle, 
        $2,500; or
            (2) in the case of a new qualified plug-in electric drive 
        motor vehicle, $2,500 plus an amount determined with respect to 
        the vehicle under section 30D(b)(3) of the Internal Revenue 
        Code of 1986.
    (c) Treated as Advance Payment of Credit.--Use of a voucher under 
the program to offset the purchase price of a vehicle shall, for 
purposes of the Internal Revenue Code of 1986, be treated as advance 
payment of the credit allowed under section 30 or 30D of such Code, as 
the case may be, and the amount of credit which would (but for this 
paragraph) be allowable with respect to such vehicle under either such 
section shall be reduced (but not below zero) by the amount of the 
voucher so used.
    (d) Definitions and Special Rules.--For purposes of this section--
            (1) Qualified plug-in electric vehicle.--The term 
        ``qualified plug-in electric vehicle'' shall have the meaning 
        given such term by section 30(d) of the Internal Revenue Code 
        of 1986.
            (2) New qualified plug-in electric drive motor vehicle.--
        The term ``new qualified plug-in electric drive motor vehicle'' 
        shall have the meaning given such term by section 30D(d) of 
        such Code.
            (3) No combination of vouchers.--Only 1 voucher issued 
        under the program may be applied toward the purchase of a 
        single vehicle.
            (4) Combination with other incentives permitted.--The 
        availability or use of a Federal, State, or local incentive or 
        a State-issued voucher for the purchase of any vehicle shall 
        not limit the value or issuance of a voucher under the program 
        to any person otherwise eligible to receive such a voucher.
            (5) No additional fees.--A dealer participating in the 
        program may not charge a person purchasing a vehicle any 
        additional fees associated with the use of a voucher under the 
        program.
            (6) Application of certain rules.--Rules similar to the 
        rules of paragraphs (1), (2), (3), (4), and (5) of section 
        30(e) of such Code shall apply for purposes of this section.
    (e) Termination and Phaseout.--
            (1) Termination for qualified plug-in electric vehicles.--
        This section shall not apply to any qualified plug-in electric 
        vehicle acquired after December 31, 2017.
            (2) Phaseout for new qualified plug-in electric drive motor 
        vehicle.--The amount of any voucher with respect to any new 
        qualified plug in electric drive motor vehicle shall be reduced 
        as provided in section 30D(e) of the Internal Revenue Code of 
        1986.
    (f) Regulations.--The Secretary of Energy, in consultation with the 
Secretary of the Treasury, shall prescribe such regulations as may be 
necessary or appropriate to carry out the purposes of this section.
                                 <all>
```