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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4956 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 4956

   To greatly enhance America's path toward energy independence and 
  economic and national security, to conserve energy use, to promote 
innovation, to achieve lower emissions, cleaner air, cleaner water, and 
cleaner land, to rebuild our Nation's aging roads, bridges, locks, and 
                     dams, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 24, 2014

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

_______________________________________________________________________

                                 A BILL

 
   To greatly enhance America's path toward energy independence and 
  economic and national security, to conserve energy use, to promote 
innovation, to achieve lower emissions, cleaner air, cleaner water, and 
cleaner land, to rebuild our Nation's aging roads, bridges, locks, and 
                     dams, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

                      Subtitle A--Offshore Leasing

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

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

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

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

Sec. 301. Extension of renewable energy credit.
Sec. 302. Extension of credit for energy efficient appliances.
Sec. 303. Extension of credit for nonbusiness energy property.
Sec. 304. Extension of credit for residential energy efficient 
                            property.
Sec. 305. Extension of new energy efficient home credit.
Sec. 306. Extension of energy efficient commercial buildings deduction.
Sec. 307. Extension of energy credit.
Sec. 308. Extension of credit for new clean renewable energy bonds.
Sec. 309. Expensing of mechanical insulation property.
    TITLE IV--INCREASE DIVERSIFICATION AND EFFICIENCY OF AMERICA'S 
                   TRANSPORTATION AND ELECTRIC SYSTEM

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

Sec. 401. Minimum Federal fleet requirement.
Sec. 402. Use of HOV facilities by light-duty, plug-in electric drive 
                            vehicles or new qualified alternative fuel 
                            motor vehicles.
Sec. 403. Recharging infrastructure.
Sec. 404. Loan guarantees for advanced battery purchases.
Sec. 405. Study of end-of-useful-life options for motor vehicle 
                            batteries.
Sec. 406. Study and demonstration electrification of postal fleet.
Sec. 407. Study of development of common standards for PHEVs and EVs 
                            between the United States, Europe and Asia.
      Subtitle B--Incentives for Diversification of Transportation

Sec. 420. Amendment of 1986 Code.
Sec. 421. Extension and modification of credit for fuel cell, hybrid, 
                            lean burn, and alternative fuel vehicles.
Sec. 422. Extension and expansion of credit for new qualified plug-in 
                            electric drive motor vehicles.
Sec. 423. Extension of credit for certain plug-in electric vehicles.
Sec. 424. Tax credit for most efficient vehicle in class.
Sec. 425. Extension of credit and extension of temporary increase in 
                            credit for alternative fuel vehicle 
                            refueling property.
Sec. 426. Modification of alternative fuel credit.
Sec. 427. Extension of credits for biodiesel and renewable diesel.
       Subtitle C--Low-Carbon Diversification of Electric System

Sec. 431. Innovative low-carbon loan guarantee program.
Sec. 432. Ensuring revenues are sufficient for implementation of title 
                            IV.

         TITLE I--OFFSHORE LEASING AND OTHER ENERGY PROVISIONS

                      Subtitle A--Offshore Leasing

SEC. 101. LEASING PROGRAM CONSIDERED APPROVED.

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

SEC. 102. LEASE SALES.

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

SEC. 103. SEAWARD BOUNDARIES OF STATES.

    (a) Seaward Boundaries.--Section 4 of the Submerged Lands Act (43 
U.S.C. 1312) is amended by striking ``three geographical miles'' each 
place it appears and inserting ``9 nautical miles''.
    (b) Conforming Amendments.--Section 2 of the Submerged Lands Act 
(43 U.S.C. 1301) is amended--
            (1) in subsection (a)(2), by striking ``three geographical 
        miles'' and inserting ``9 nautical miles''; and
            (2) in subsection (b)--
                    (A) by striking ``three geographical miles'' and 
                inserting ``9 nautical miles''; and
                    (B) by striking ``three marine leagues'' and 
                inserting ``9 nautical miles''.
    (c) Effect of Amendments.--
            (1) In general.--Subject to paragraphs (2) through (4), the 
        amendments made by this section shall not effect Federal oil 
        and gas mineral rights and should not effect the States' 
        current authority within existing State boundaries.
            (2) Existing leases.--The amendments made by this section 
        shall not affect any Federal oil and gas lease in effect on the 
        date of enactment of this Act.
            (3) Taxation.--
                    (A) In general.--A State may exercise all of the 
                sovereign powers of taxation of the State within the 
                entire extent of the seaward boundaries of the State 
                (as extended by the amendments made by this section).
                    (B) Limitation.--Nothing in this paragraph affects 
                the authority of a State to tax any Federal oil and gas 
                lease in effect on the date of enactment of this Act.

SEC. 104. MILITARY OPERATIONS.

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

SEC. 105. COORDINATION WITH ADJACENT STATES.

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

SEC. 106. GULF OF MEXICO OIL AND GAS.

    (a) Repeal.--Section 104 of division C of the Tax Relief and Health 
Care Act of 2006 (Public Law 109-432; 120 Stat. 3003) is repealed.
    (b) Leasing Plan for the Eastern Gulf of Mexico.--Pursuant to 
sections 101 and 102 of this Act, the Secretary of the Interior shall 
issue a final leasing plan for the Eastern Gulf of Mexico within 180 
days after the date of enactment of this Act for all areas where there 
exists commercial interest in purchasing Federal oil and gas leases for 
production.

SEC. 107. SHARING OF REVENUES.

    (a) In General.--Section 8(g) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1337(g)) is amended--
            (1) in paragraph (2) by striking ``Notwithstanding'' and 
        inserting ``Except as provided in paragraph (6), and 
        notwithstanding'';
            (2) by redesignating paragraphs (6) and (7) as paragraphs 
        (8) and (9); and
            (3) by inserting after paragraph (5) the following:
            ``(6) Bonus bids and royalties under qualified leases.--
                    ``(A) New leases.--Of amounts received by the 
                United States as bonus bids, royalties, rentals, and 
                other sums collected under any new qualified lease on 
                submerged lands made available for leasing under this 
                Act by the enactment of the American Energy Opportunity 
                Act of 2014--
                            ``(i) 30 percent shall be paid to the 
                        States that are producing States with respect 
                        to those submerged lands that are located 
                        within the seaward boundaries of such a State 
                        established under section 4(a)(2)(A);
                            ``(ii) 10 percent shall be deposited in the 
                        general fund of the Treasury;
                            ``(iii) 15 percent shall be deposited in 
                        the Renewable Energy and Energy Efficiency 
                        Reserve established by paragraph (7);
                            ``(iv) 20 percent shall be deposited in the 
                        Infrastructure Renewal Reserve established by 
                        paragraph (7);
                            ``(v) 3 percent shall be deposited into the 
                        Clean Water Reserve established by paragraph 
                        (7);
                            ``(vi) 4 percent shall be deposited in the 
                        Environment Restoration Reserve established by 
                        paragraph (7);
                            ``(vii) 3 percent shall be deposited in the 
                        Conservation Reserve established by paragraph 
                        (7);
                            ``(viii) 8 percent shall be deposited in 
                        the Clean Coal Technology Deployment and Carbon 
                        Capture and Sequestration Reserve established 
                        by paragraph (7);
                            ``(ix) 5 percent shall be deposited in the 
                        Carbon Free Technology and Nuclear Energy 
                        Reserve established by paragraph (7); and
                            ``(x) 2 percent shall be available to the 
                        Secretary of Health and Human Services for 
                        carrying out the Low-Income Home Energy 
                        Assistance Act of 1981 (42 U.S.C. 8621, et 
                        seq.).
                    ``(B) Leased tract that lies partially within the 
                seaward boundaries of a state.--In the case of a leased 
                tract that lies partially within the seaward boundaries 
                of a State, the amounts of bonus bids and royalties 
                from such tract that are subject to subparagraph 
                (A)(ii) with respect to such State shall be a 
                percentage of the total amounts of bonus bids and 
                royalties from such tract that is equivalent to the 
                total percentage of surface acreage of the tract that 
                lies within such seaward boundaries.
                    ``(C) Use of payments to states.--Amounts paid to a 
                State under subparagraph (A)(ii) shall be used by the 
                State for one or more of the following:
                            ``(i) Education.
                            ``(ii) Transportation.
                            ``(iii) Coastal restoration, environmental 
                        restoration, and beach replenishment.
                            ``(iv) Energy infrastructure.
                            ``(v) Renewable energy development.
                            ``(vi) Energy efficiency and conservation.
                            ``(vii) Any other purpose determined by 
                        State law.
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Adjacent state.--The term `Adjacent 
                        State' means, with respect to any program, 
                        plan, lease sale, leased tract, or other 
                        activity, proposed, conducted, or approved 
                        pursuant to the provisions of this Act, any 
                        State the laws of which are declared, pursuant 
                        to section 4(a)(2), to be the law of the United 
                        States for the portion of the outer Continental 
                        Shelf on which such program, plan, lease sale, 
                        leased tract, or activity appertains or is, or 
                        is proposed to be, conducted.
                            ``(ii) Adjacent zone.--The term `Adjacent 
                        Zone' means, with respect to any program, plan, 
                        lease sale, leased tract, or other activity, 
                        proposed, conducted, or approved pursuant to 
                        the provisions of this Act, the portion of the 
                        outer Continental Shelf for which the laws of a 
                        particular adjacent State are declared, 
                        pursuant to section 4(a)(2), to be the law of 
                        the United States.
                            ``(iii) Producing state.--The term 
                        `producing State' means an Adjacent State 
                        having an Adjacent Zone containing leased 
                        tracts from which are derived bonus bids and 
                        royalties under a lease under this Act.
                            ``(iv) State.--The term `State' includes 
                        Puerto Rico and the other territories of the 
                        United States.
                            ``(v) Qualified lease.--The term `qualified 
                        lease' means a natural gas or oil lease made 
                        available under this Act granted after the date 
                        of the enactment of the American Energy 
                        Opportunity Act of 2014, for an area that is 
                        available for leasing as a result of enactment 
                        of section 101 of that Act.
                    ``(E) Application.--This paragraph shall apply to 
                bonus bids and royalties received by the United States 
                under qualified leases after implementation of sections 
                105 and 106 of the American Energy Opportunity Act of 
                2014.
                    ``(F) Existing revenues.--All revenues including 
                revenues, including bonus bids, royalties, rentals, and 
                other sums, collected from leases issued under this Act 
                prior to the enactment American Energy Opportunity Act 
                of 2014, shall not be affected by the provisions of 
                that Act.
            ``(7) Establishment of reserve accounts.--
                    ``(A) In general.--For budgetary purposes, there is 
                established as a separate account to receive deposits 
                under paragraph (6)(A)--
                            ``(i) the Renewable Energy and Energy 
                        Efficiency Reserve, which shall be applied--
                                    ``(I) first, to offset the 
                                alternative energy and conservation tax 
                                incentives extended by title III of the 
                                American Energy Opportunity Act of 
                                2014; and
                                    ``(II) to extent not applied under 
                                subclause (I), to offset the cost of 
                                legislation enacted after the date of 
                                the enactment of the American Energy 
                                Opportunity Act of 2014 to accelerate 
                                the use of cleaner domestic energy 
                                resources and alternative fuels; to 
                                promote the utilization of energy-
                                efficient products and practices; to 
                                promote the development and deployment 
                                of smart transportation systems, energy 
                                efficient vehicles, and mass 
                                transportation systems that preserve 
                                the environment and increase energy 
                                efficiency of transportation; and to 
                                increase research, development, and 
                                deployment of clean renewable energy 
                                and efficiency technologies and job 
                                training programs for those purposes;
                            ``(ii) the Infrastructure Renewal Reserve, 
                        which shall be applied to offset the costs of--
                                    ``(I) Federal-aid highway and 
                                highway safety construction programs 
                                carried out by the Secretary of 
                                Transportation;
                                    ``(II) public transportation 
                                programs carried out by the Secretary 
                                of Transportation;
                                    ``(III) water resources development 
                                construction projects carried out by 
                                the Secretary of the Army (acting 
                                through the Chief of Engineers);
                                    ``(IV) Federal support for freight 
                                rail and passenger rail construction 
                                and repair projects;
                                    ``(V) legislation enacted after the 
                                date of the enactment of the American 
                                Energy Opportunity Act of 2014 for 
                                purposes of investment in 
                                transportation infrastructure; and
                            ``(iii) the Clean Water Reserve, to first, 
                        offset the cost of construction programs under 
                        the Clean Water Act or the 1996 Amendments to 
                        the Safe Drinking Water Act that provide 
                        assistance, such as grants, matching grants, 
                        and no- and low-interest loans, to State, 
                        county, and local governments to rebuild and 
                        modernize clean water and sewage 
                        infrastructure.
                            ``(iv) the Environment Restoration Reserve, 
                        to offset the cost of legislation enacted after 
                        the date of the enactment of the American 
                        Energy Opportunity Act of 2014 to conduct 
                        restoration activities to improve the overall 
                        health of the ecosystems primarily or entirely 
                        within wildlife refuges, national parks, lakes, 
                        bays, rivers, and streams, including the Great 
                        Lakes, the Chesapeake and Delaware Bays, the 
                        San Francisco Bay/Sacramento San Joaquin Bay 
                        Delta, the Florida Everglades, New York Harbor, 
                        the Colorado River Basin, the Mississippi River 
                        Basin and tributaries, and Intracoastal 
                        Waterways and inlets that serve them;
                            ``(v) the Conservation Reserve, to offset 
                        the cost of legislation enacted after the date 
                        of the enactment of the American Energy 
                        Opportunity Act of 2014 for conservation 
                        research, development, and deployment programs 
                        to increase commercial energy efficiency, such 
                        as weatherization, conservation and building 
                        technology tax credits for energy efficiency in 
                        the commercial and industrial sectors;
                            ``(vi) the Clean Coal Technology Deployment 
                        and Carbon Capture and Sequestration Reserve, 
                        to--
                                    ``(I) first offset the cost of 
                                programs established under section 133 
                                of this Act;
                                    ``(II) two, offset the cost of 
                                programs in section 1703 of the Energy 
                                Policy Act of 2005 related to loan 
                                guarantees for construction projects 
                                associated with carbon capture and 
                                storage, giving priority to the 
                                construction and modernization of 
                                plants that implement the most advanced 
                                pollution controls to prevent the 
                                release of carbon, particulate matter, 
                                and other pollutants; and
                                    ``(III) third, to offset the cost 
                                of research at the Department of Energy 
                                Office of Fossil Energy that promotes 
                                the production of liquid transportation 
                                fuels, clean-coal electricity, 
                                synthetic natural gas, and chemical 
                                feedstock; and
                            ``(vii) the Carbon Free Technology and 
                        Nuclear Energy Reserve, to--
                                    ``(I) first offset the cost of 
                                programs in title IV of this Act; and
                                    ``(II) two, offset the cost of 
                                legislation enacted after the date of 
                                the enactment of the Rebuilding 
                                America's Infrastructure Through Energy 
                                Independence Act to promote the 
                                deployment of carbon-free technologies, 
                                including through loan guarantees for 
                                commercial nuclear power plants, the 
                                disposition and recycling or 
                                reprocessing of spent fuel from nuclear 
                                power plants, and the financing of 
                                long-term safe storage of spent fuel.
                    ``(B) Procedure for adjustments.--
                            ``(i) Budget committee chairman.--After the 
                        reporting of a bill or joint resolution, or the 
                        offering of an amendment thereto or the 
                        submission of a conference report thereon, 
                        providing funding for the purposes set forth in 
                        clause (i), (ii), (iii), or (iv) of 
                        subparagraph (A) in excess of the amount of the 
                        deposits under paragraph (6)(A) for those 
                        purposes for fiscal year 2014, the chairman of 
                        the Committee on the Budget of the applicable 
                        House of Congress shall make the adjustments 
                        set forth in clause (ii) for the amount of new 
                        budget authority and outlays in that measure 
                        and the outlays flowing from that budget 
                        authority.
                            ``(ii) Matters to be adjusted.--The 
                        adjustments referred to in clause (i) are to be 
                        made to--
                                    ``(I) the discretionary spending 
                                limits, if any, set forth in the 
                                appropriate concurrent resolution on 
                                the budget;
                                    ``(II) the allocations made 
                                pursuant to the appropriate concurrent 
                                resolution on the budget pursuant to 
                                section 302(a) of the Congressional 
                                Budget Act of 1974; and
                                    ``(III) the budget aggregates 
                                contained in the appropriate concurrent 
                                resolution on the budget as required by 
                                section 301(a) of the Congressional 
                                Budget Act of 1974.
                            ``(iii) Amounts of adjustments.--The 
                        adjustments referred to in clauses (i) and (ii) 
                        shall not exceed the receipts estimated by the 
                        Congressional Budget Office that are 
                        attributable to this Act for the fiscal year in 
                        which the adjustments are made.
                    ``(C) Expenditures only by secretary of the 
                interior in consultation.--Legislation shall not be 
                treated as legislation referred to in subparagraph (A) 
                unless any expenditure under such legislation for a 
                purpose referred to in that subparagraph may be made 
                only after consultation with the Administrator of the 
                Environmental Protection Agency, the Administrator of 
                the National Oceanic and Atmospheric Administration, 
                the Secretary of the Army acting through the Corps of 
                Engineers, and, as appropriate, the Secretary of State.
            ``(8) Maintenance of effort by states.--The Secretary of 
        the Interior, the Secretary of Health and Human Services, the 
        Secretary of Energy, and any other Federal official with 
        authority to implement legislation referred to in paragraph 
        (6)(A) shall ensure that financial assistance provided to a 
        State under that legislation for any purpose with amounts made 
        available under this subsection or in any legislation with 
        respect to which paragraph (7) applies supplement, and do not 
        replace, the amounts expended by the State for that purpose 
        before the date of the enactment of theAmerican Energy 
        Opportunity Act of 2014.
            ``(9) Distributions for federal-aid highway or highway 
        safety construction program.--To the extent practicable, 
        amounts made available for a Federal-aid highway or highway 
        safety construction program, the costs of which are offset by 
        application of the Infrastructure Renewal Reserve, shall be 
        distributed using the apportionment formula that applies to 
        that program.''.
    (b) Establishment of State Seaward Boundaries.--Section 4(a)(2)(A) 
of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is 
amended in the first sentence by striking ``, and the President'' and 
all that follows through the end of the sentence and inserting the 
following: ``. Such extended lines are deemed to be as indicated on the 
maps for each Outer Continental Shelf region entitled `Alaska OCS 
Region State Adjacent Zone and OCS Planning Areas', `Pacific OCS Region 
State Adjacent Zones and OCS Planning Areas', `Gulf of Mexico OCS 
Region State Adjacent Zones and OCS Planning Areas', and `Atlantic OCS 
Region State Adjacent Zones and OCS Planning Areas', all of which are 
dated September 2005 and on file in the Office of the Director, 
Minerals Management Service. The preceding sentence shall not apply 
with respect to the treatment under section 105 of the Gulf of Mexico 
Energy Security Act of 2006 (title I of division C of Public Law 109-
432) of qualified outer Continental Shelf revenues deposited and 
disbursed under subsection (a)(2) of that section.''.

SEC. 108. INVENTORY OF OFFSHORE ENERGY RESOURCES.

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

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

    (a) Regulations.--
            (1) In general.--
                    (A) Environmental safeguards.--The Secretary of the 
                Interior shall promulgate regulations that establish 
                appropriate environmental safeguards for the 
                exploration and production of oil and natural gas on 
                the outer Continental Shelf.
                    (B) Safety protocols.--All operations, including 
                under any permit issued pursuant to an application for 
                a permit to drill or an application for a permit to 
                sidetrack, that has been approved by the Minerals 
                Management Service or the Bureau of Ocean Energy 
                Management, Regulation and Enforcement, for purposes of 
                outer Continental Shelf energy exploration or 
                development and production, shall be carried out in 
                accordance with the safety protocols contained in part 
                250 of title 30, Code of Federal Regulations.
            (2) Requirements.--The regulations shall include provisions 
        ensuring that--
                    (A) no surface facility shall be installed for the 
                purpose of production of oil or gas resources in any 
                area that is within 10 miles from the shore of any 
                coastal State, in any area of the outer Continental 
                Shelf that has not previously been made available for 
                oil and gas leasing;
                    (B) only temporary surface facilities are installed 
                for areas that are located--
                            (i) beyond 10 miles from the shore from the 
                        shore of any coastal State, in any area of the 
                        Outer Continental Shelf that has not previously 
                        been made available for oil and gas leasing; 
                        and
                            (ii) not more than 20 miles from the shore;
                    (C) the impact of offshore production facilities on 
                coastal vistas is otherwise mitigated; and
                    (D) onshore facilities that are able to draw upon 
                the resources of the outer Continental Shelf within 10 
                miles of shore are allowed.
    (b) Conforming Amendment.--Section 105 of the Department of the 
Interior, Environment, and Related Agencies Appropriations Act, 2006 
(Public Law 109-54; 119 Stat. 521) (as amended by section 103(d) of the 
Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public 
Law 109-432)) is amended by inserting ``and any other area that the 
Secretary of the Interior may offer for leasing, preleasing, or any 
related activity under section 104 of that Act'' after ``2006)''.

                 Subtitle B--Expedited Judicial Review

SEC. 121. DEFINITIONS.

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

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

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

SEC. 123. TIME FOR FILING PETITION; STANDING.

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

SEC. 124. TIMETABLE.

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

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

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

SEC. 126. PRESIDENTIAL WAIVER.

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

SEC. 127. LEGAL FEES.

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

SEC. 128. EXCLUSION.

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

                  Subtitle C--Other Energy Provisions

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

    (a) Elimination of Other Restrictions on Use of Energy 
Alternatives.--
            (1) Renewable biomass.--Section 211(o)(1)(I) of the Clean 
        Air Act (42 U.S.C. 7545(o)(1)(I)) is amended--
                    (A) in clause (ii), by striking ``non-federal''; 
                and
                    (B) in clause (iv), by striking ``that are from 
                non-federal forestlands, including forestlands'' and 
                inserting ``from forestlands, including those on public 
                lands and those''.
            (2) Alternative fuels.--Section 526 of the Energy 
        Independence and Security Act of 2007 (42 U.S.C. 17142) is 
        repealed.
    (b) New Source Review Under the Clean Air Act.--Part A of title I 
of the Clean Air Act (42 U.S.C. 7401 and following) is amended by 
adding the following at the end:

``SEC. 132. NEW SOURCE REVIEW.

    ``In promulgating regulations respecting any requirement or 
prohibition of this Act relating to the construction of a new source or 
the modification of an existing source, the Administrator shall include 
in such regulations provisions providing that routine maintenance and 
repair shall not constitute a modification of an existing source 
requiring treatment of the source as a new source. Such provisions 
shall provide that equipment replacement shall be considered routine 
maintenance and repair if it meets each of the following:
            ``(1) Such replacement does not increase overall actual 
        emissions of any air pollutant by more than 5 percent.
            ``(2) In the case of a source generating electricity, such 
        replacement does not result in a greater amount of any air 
        pollutant emitted in proportion to the megawatts of electricity 
        generated.
Notwithstanding any other provision of this Act, no State may include 
in any State implementation plan any provisions regarding new source 
review that are more stringent than those contained in the regulations 
of the Administrator under this section.''.

SEC. 132. POLICIES REGARDING BUYING AND BUILDING AMERICAN.

    (a) Intent of Congress.--It is the intent of the Congress that this 
Act, among other things, result in a healthy and growing American 
industrial, manufacturing, transportation, and service sector employing 
the vast talents of America's workforce to assist in the development of 
energy from domestic sources. Moreover, the Congress intends to monitor 
the deployment of personnel and material onshore and offshore to 
encourage the development of American technology and manufacturing to 
enable United States workers to benefit from this Act by good jobs and 
careers, as well as the establishment of important industrial 
facilities to support expanded access to American resources.
    (b) Safeguard for Extraordinary Ability.--Section 30(a) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the 
matter preceding paragraph (1) by striking ``regulations which'' and 
inserting ``regulations that shall be supplemental and complimentary 
with and under no circumstances a substitution for the provisions of 
the Constitution and laws of the United States extended to the subsoil 
and seabed of the outer Continental Shelf pursuant to section 4 of this 
Act, except insofar as such laws would otherwise apply to individuals 
who have extraordinary ability in the sciences, arts, education, or 
business, which has been demonstrated by sustained national or 
international acclaim, and that''.
    (c) Work Standards.--All construction, repair, or alteration of 
public buildings and public works of the Government and buildings or 
works financed or otherwise assisted in whole or in part under this Act 
by a loan, loan guarantee, grant, annual contribution, credit 
enhancement, or any other form of Federal assistance authorized under 
this Act shall be performed in accordance with the standards applicable 
to comparable activity under any other provision of law, without regard 
to the form or type of Federal assistance provided thereunder.

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

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

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

SEC. 201. FINDINGS.

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

SEC. 202. DEFINITIONS.

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

SEC. 203. OBJECTIVES.

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

SEC. 204. MODIFICATION OF THE STRATEGIC PETROLEUM RESERVE.

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

SEC. 205. ENERGY INDEPENDENCE AND SECURITY FUND.

    (a) Establishment.--There is hereby established in the Treasury of 
the United States the ``Energy Independence and Security Fund'' (in 
this section referred to as the ``Fund'').
    (b) Administration.--The Secretary shall be responsible for 
administering the Fund for the purpose of carrying out this section.
    (c) Deposits.--The Secretary shall transfer the balance of funds in 
the SPR Petroleum Account on the date of enactment of this Act in 
excess of $10,000,000 into the Fund.
    (d) Distribution of Funds.--The Secretary shall make amounts from 
the Fund available for obligation, without further appropriation and 
without fiscal year limitation, for the following purposes:
            (1) Advanced research projects agency--energy.--The 
        Secretary may transfer amounts to the account ``Energy 
        Transformation Acceleration Fund'', established under section 
        5012(m) of the America COMPETES Act (42 U.S.C. 16538(m)), 
        including amounts--
                    (A) for university-based research projects; and
                    (B) for program direction expenses.
            (2) Wind energy research and development.--The Secretary 
        may transfer amounts to the account ``Energy Efficiency and 
        Renewable Energy'' for necessary expenses for a program to 
        support the development of next-generation wind turbines, 
        including turbines capable of operating in areas with low wind 
        speeds, as authorized in section 931(a)(2)(B) of the Energy 
        Policy Act of 2005 (42 U.S.C. 16231(a)(2)(B)).
            (3) Solar energy research and development.--The Secretary 
        may transfer amounts to the account ``Energy Efficiency and 
        Renewable Energy'' for necessary expenses for a program to 
        accelerate the research, development, demonstration, and 
        deployment of solar energy technologies, and public education 
        and outreach materials pursuant to such program, as authorized 
        by section 931(a)(2)(A) of the Energy Policy Act of 2005 (42 
        U.S.C. 16231(a)(2)(A)).
            (4) Marine and hydrokinetic renewable electric energy.--The 
        Secretary may transfer amounts to the account ``Energy 
        Efficiency and Renewable Energy'' for necessary expenses for a 
        program to accelerate the research, development, demonstration, 
        and deployment of ocean and wave energy, including hydrokinetic 
        renewable energy, as authorized by section 931 of the Energy 
        Policy Act of 2005 (42 U.S.C. 16231) and section 636 of the 
        Energy Independence and Security Act of 2007 (42 U.S.C. 17215).
            (5) Advanced vehicles research, development, and 
        demonstration.--The Secretary may transfer amounts to the 
        account ``Energy Efficiency and Renewable Energy'' for 
        necessary expenses for research, development, and demonstration 
        on advanced, cost-effective technologies to improve the energy 
        efficiency and environmental performance of vehicles, as 
        authorized in section 911(a)(2)(A) of the Energy Policy Act of 
        2005 (42 U.S.C. 16191(a)(2)(A)).
            (6) Industrial energy efficiency research and 
        development.--The Secretary may transfer amounts to the account 
        ``Energy Efficiency and Renewable Energy'' for necessary 
        expenses for a program to accelerate the research, development, 
        demonstration, and deployment of new technologies to improve 
        the energy efficiency and reduce greenhouse gas emissions from 
        industrial processes, as authorized in section 911(a)(2)(C) of 
        the Energy Policy Act of 2005 (42 U.S.C. 16191(a)(2)(C)) and in 
        section 452 of the Energy Independence and Security Act of 2007 
        (42 U.S.C. 17111).
            (7) Building and lighting energy efficiency research and 
        development.--The Secretary may transfer amounts to the account 
        ``Energy Efficiency and Renewable Energy'' for necessary 
        expenses for a program to accelerate the research, development, 
        demonstration, and deployment of new technologies to improve 
        the energy efficiency of and reduce greenhouse gas emissions 
        from buildings, as authorized in section 321(g) of the Energy 
        Independence and Security Act of 2007 (42 U.S.C. 6295 note), 
        section 422 of the Energy Independence and Security Act of 2007 
        (42 U.S.C. 17082), and section 912 of the Energy Policy Act of 
        2005 (42 U.S.C. 16192).
            (8) Geothermal energy development.--The Secretary may 
        transfer amounts to the account ``Energy Efficiency and 
        Renewable Energy'' for necessary expenses for geothermal 
        research and development activities to be managed by the 
        National Renewable Energy Laboratory, as authorized by sections 
        613, 614, 615, and 616 of the Energy Independence and Security 
        Act of 2007 (42 U.S.C. 17192-95) and section 931(a)(2)(C) of 
        the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(C)).
            (9) Smart grid technology research, development, and 
        demonstration.--The Secretary may transfer amounts to the 
        account ``Energy Efficiency and Renewable Energy'' for 
        necessary expenses for research, development, and demonstration 
        of smart grid technologies, as authorized by section 1304 of 
        the Energy Independence and Security Act of 2007 (42 U.S.C. 
        17384).
            (10) Carbon capture and storage.--The Secretary may 
        transfer amounts to the account ``Fossil Energy Research and 
        Development'' for necessary expenses for a program of 
        demonstration projects of carbon capture and storage, and for a 
        research program to address public health, safety, and 
        environmental impacts, as authorized by section 963 of the 
        Energy Policy Act of 2005 (42 U.S.C. 16293) and sections 703 
        and 707 of the Energy Independence and Security Act of 2007 (42 
        U.S.C. 17251, 17255).
            (11) Nonconventional domestic natural gas production and 
        environmental research.--
                    (A) The Secretary may transfer amounts to the 
                account authorized by section 999H(e) of the Energy 
                Policy Act of 2005 (42 U.S.C. 16378(e)).
                    (B) The Secretary may transfer amounts to the 
                account ``Fossil Energy Research and Development'' for 
                necessary expenses for a program of basin-oriented 
                assessments and public and private partnerships 
                involving States and industry to foster the development 
                of regional advanced technological, regulatory, and 
                economic development strategies for the efficient and 
                environmentally sustainable recovery and market 
                delivery of natural gas and domestic petroleum 
                resources within the United States, and for support for 
                the Stripper Well Consortium.
            (12) Hydrogen research and development.--The Secretary may 
        transfer amounts to the account ``Energy Efficiency and 
        Renewable Energy'' for necessary expenses for the Department of 
        Energy's H-Prize Program, as authorized by section 1008(f) of 
        the Energy Policy Act of 2005 (42 U.S.C. 16396(f)).
            (13) Energy storage for transportation and electric 
        power.--
                    (A) The Secretary may transfer amounts to the 
                account ``Basic Energy Sciences'' for necessary 
                expenses for a program to accelerate basic research on 
                energy storage systems to support electric drive 
                vehicles, stationary applications, and electricity 
                transmission and distribution, as authorized by section 
                641(p)(1) of the Energy Independence and Security Act 
                of 2007 (42 U.S.C. 17231(p)(1)).
                    (B) The Secretary may transfer amounts to the 
                account ``Energy Efficiency and Renewable Energy'' 
                including--
                            (i) amounts for a program to accelerate 
                        applied research on energy storage systems to 
                        support electric drive vehicles, stationary 
                        applications, and electricity transmission and 
                        distribution as authorized by section 641(p)(2) 
                        of the Energy Independence and Security Act of 
                        2007 (42 U.S.C. 17231(p)(2));
                            (ii) amounts for energy storage systems 
                        demonstrations as authorized by section 
                        641(p)(4) of the Energy Independence and 
                        Security Act of 2007 (42 U.S.C. 17231(p)(4)); 
                        and
                            (iii) amounts for vehicle energy storage 
                        systems demonstrations as authorized by section 
                        641(p)(5) of the Energy Independence and 
                        Security Act of 2007 (42 U.S.C. 17231(p)(5)).
    (e) Transfer Procedures.--The Secretary shall make an initial 
transfer from the Fund no later than 30 days after the initial deposit 
of monies into the Fund. The Secretary shall make additional transfers 
no later than 30 days after subsequent deposits.
    (f) Management and Oversight.--
            (1) Additionality of fiscal year 2008 transfers.--All 
        amounts transferred under subsection (d) shall be in addition 
        to, and shall not be substituted for, any funds appropriated 
        for the same or similar purposes in the Consolidated 
        Appropriations Act, 2014 or any other enacted legislation.
            (2) Excess funds.--The total of all amounts transferred 
        under subsection (d) and any funds appropriated for the same or 
        similar purposes in the Consolidated Appropriations Act, 2008 
        or any other enacted legislation may not exceed the amounts 
        authorized in other Acts for such purposes. In the event that 
        amounts made available under this title plus amounts under the 
        Consolidated Appropriations Act, 2014 exceed the cumulative 
        amounts authorized in other Acts for any program funded by this 
        Act, the excess amounts shall be distributed to the other 
        programs funded by this title on a pro rata basis.
            (3) Program plans and performance measures.--The Secretary 
        shall prepare and publish in the Federal Register a plan for 
        the proposed use of all funds authorized in subsection (d). The 
        plan also shall identify how the use of these funds will be 
        additive to, and not displace, annual appropriations. The plans 
        also shall identify performance measures to assess the 
        additional benefits that may be realized from the application 
        of the additional funding provided under this section. The 
        initial plan shall be published in the Federal Register not 
        later than 45 days after the date of enactment of this Act.
            (4) Congressional oversight and review.--Nothing in this 
        section shall limit or restrict the review and oversight of 
        program plans by the appropriate committees of Congress. 
        Nothing in this section shall limit or restrict the authority 
        of Congress to set alternative spending limitations in annual 
        appropriations Acts.
            (5) Apportionment.--All transactions of the Fund shall be 
        exempt from apportionment under the provisions of subchapter II 
        of chapter 15 of title 31, United States Code.

TITLE III--CLEANER ENERGY PRODUCTION AND ENERGY CONSERVATION INCENTIVES

SEC. 301. EXTENSION OF RENEWABLE ENERGY CREDIT.

    (a) In General.--Subsection (d) of section 45 of the Internal 
Revenue Code of 1986 (relating to qualified facilities) is amended by 
striking ``January 1, 2014'' each place it appears and inserting 
``January 1, 2020''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2013.

SEC. 302. EXTENSION OF CREDIT FOR ENERGY EFFICIENT APPLIANCES.

    (a) Dishwashers.--Subsection (b) of section 45M of the Internal 
Revenue Code of 1986 (relating to applicable amount) is amended by 
striking ``2011, 2012, or 2013'' each place it appears and inserting 
``after 2011 and before 2020''.
    (b) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2013.

SEC. 303. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    Section 25C(g) of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking ``December 31, 2013'' and inserting 
``December 31, 2019''.

SEC. 304. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY.

    Section 25D(g) of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking ``December 31, 2016'' and inserting 
``December 31, 2019''.

SEC. 305. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.

    Subsection (g) of section 45L of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ``December 31, 2013'' 
and inserting ``December 31, 2019''.

SEC. 306. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    Section 179D(h) of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking ``December 31, 2013'' and inserting 
``December 31, 2019''.

SEC. 307. EXTENSION OF ENERGY CREDIT.

    (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii) 
of section 48(a) of the Internal Revenue Code of 1986 (relating to 
energy credit) are each amended by striking ``January 1, 2017'' and 
inserting ``January 1, 2020''.
    (b) Fuel Cell Property.--Subparagraph (D) of section 48(c)(1) of 
such Code (relating to qualified fuel cell property) is amended by 
striking ``December 31, 2016'' and inserting ``December 31, 2019''.
    (c) Microturbine Property.--Subparagraph (D) of section 48(c)(2) of 
such Code (relating to qualified microturbine property) is amended by 
striking ``December 31, 2016'' and inserting ``December 31, 2019''.
    (d) Property Using Thermal Energy From Ground or Ground Water.--
Clause (vii) of section 48(a)(3)(A) of such Code is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2019''.
    (e) Combined Heat and Power System Property.--Clause (iv) of 
section 48(c)(3)(A) of such Code is amended by striking ``December 31, 
2017'' and inserting ``December 31, 2019''.
    (f) Small Wind Energy Property.--Subparagraph (C) of section 
48(c)(4) of such Code is amended by striking ``December 31, 2016'' and 
inserting ``December 31, 2019''.

SEC. 308. EXTENSION OF CREDIT FOR NEW CLEAN RENEWABLE ENERGY BONDS.

    Subsection (c) of section 54C of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
            ``(5) Additional annual allocations.--The national new 
        clean renewable energy bond limitation shall be increased 
        annually by 2 percent of the deposits made into the Renewable 
        Energy and Energy Efficiency Reserve under section 8(g)(7) of 
        the Outer Continental Shelf Lands Act with respect to such 
        year. Each such increase shall be allocated by the Secretary 
        consistent with the rules of paragraphs (2) and (3).''.

SEC. 309. EXPENSING OF MECHANICAL INSULATION PROPERTY.

    (a) In General.--Part VI of subchapter B of chapter 1 of subtitle A 
of the Internal Revenue Code of 1986 (relating to itemized deductions 
for individuals and corporations) is amended by inserting after section 
179E the following new section:

``SEC. 179F. MECHANICAL INSULATION PROPERTY.

    ``(a) Treatment as Expenses.--There shall be allowed as a deduction 
an amount equal to the applicable percentage of the cost of mechanical 
insulation property placed in service during the taxable year.
    ``(b) Applicable Percentage.--For purposes of subsection (a)--
            ``(1) In general.--The term `applicable percentage' means 
        the lesser of--
                    ``(A) 30 percent, and
                    ``(B) the excess (if any) of--
                            ``(i) the energy savings (expressed as a 
                        percentage) obtained by placing such mechanical 
                        insulation property in service in connection 
                        with a mechanical system, over
                            ``(ii) the energy savings (expressed as a 
                        percentage) such property is required to meet 
                        by Standard 90.1-2007, developed and published 
                        by the American Society of Heating, 
                        Refrigerating and Air-Conditioning Engineers.
            ``(2) Special rule relating to maintenance.--In the case of 
        mechanical insulation property placed in service as a 
        replacement for insulation property--
                    ``(A) paragraph (1)(B) shall be applied without 
                regard to clause (ii) thereof, and
                    ``(B) the cost of such property shall be treated as 
                an expense for which a deduction is allowed under 
                section 162 instead of being treated as depreciable for 
                purposes of the deduction provided by section 167.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Mechanical insulation property.--The term `mechanical 
        insulation property' means insulation materials, facings, and 
        accessory products--
                    ``(A) placed in service in connection with a 
                mechanical system which--
                            ``(i) is located in the United States, and
                            ``(ii) is of a character subject to an 
                        allowance for depreciation, and
                    ``(B) utilized for thermal, acoustical, and 
                personnel safety requirements for mechanical piping and 
                equipment, hot and cold applications, and heating, 
                venting and air conditioning applications which can be 
                used in a variety of facilities.
            ``(2) Cost.--The cost of mechanical insulation property 
        includes--
                    ``(A) the amounts paid or incurred for the 
                installation of such property,
                    ``(B) in the case of removal and disposal of the 
                old mechanical insulation property, 10 percent of the 
                cost of the new mechanical insulation property 
                (determined without regard to this subparagraph), and
                    ``(C) expenditures for labor costs properly 
                allocable to the preparation, assembly, and 
                installation of mechanical insulation property.
    ``(d) Coordination.--
            ``(1) Section 179d.--Subsection (a) shall not apply to the 
        cost of mechanical insulation property which is taken into 
        account under section 179D or which, but for subsection (b) of 
        section 179D, would be taken into account under such section.
            ``(2) Other deductions and credits.--
                    ``(A) In general.--The amount of any other 
                deduction or credit allowable under this chapter for 
                any cost of mechanical insulation property which is 
                taken into account under subsection (a) shall be 
                reduced by the amount of such cost so taken into 
                account.
                    ``(B) Exception for certain costs.--Subparagraph 
                (A) shall not apply to any amount properly attributable 
                to maintenance.
    ``(e) Allocation of Deduction for Tax-Exempt Property.--In the case 
of mechanical insulation property installed on or in property owned by 
an entity described in paragraph (3) or (4) of section 50(b), the 
person who is the primary contractor for the installation of such 
property shall be treated as the taxpayer that placed such property in 
service.
    ``(f) Certification.--For purposes of this section, energy savings 
shall be certified under regulations or other guidance provided by the 
Secretary, in consultation with the Secretary of Energy.''.
    (b) Deduction for Capital Expenditures.--Section 263(a)(1) of such 
Code (relating to capital expenditures) is amended by striking ``or'' 
at the end of subparagraph (K), by striking the period at the end of 
paragraph (L) and inserting ``, or'', and by adding at the end the 
following new subparagraph:
                    ``(M) expenditures for which a deduction is allowed 
                under section 179F.''.
    (c) Technical and Clerical Amendments.--
            (1) Section 312(k)(3)(B) of such Code is amended by 
        striking ``or 179E'' each place it appears in the text or 
        heading thereof and inserting ``179E, or 179F''.
            (2) Paragraphs (2)(C) and (3)(C) of section 1245(a) of such 
        Code are each amended by inserting ``179F,'' after ``179E,''.
            (3) The table of sections for part VI of subchapter B of 
        chapter 1 of subtitle A of such Code is amended by inserting 
        after the item relating to section 179E the following new item:

``Sec. 179F. Mechanical insulation property.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of enactment of this 
Act.

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

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

SEC. 401. MINIMUM FEDERAL FLEET REQUIREMENT.

    Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is 
amended--
            (1) in subsection (b)--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively;
                    (B) by inserting after paragraph (1) the following:
    ``(2) Of the total number of vehicles acquired by a Federal fleet 
under paragraph (1), at least the following percentage of the vehicles 
shall be plug-in electric drive vehicles (as defined in section 131(a) 
of the Energy Independence and Security Act of 2007 (42 U.S.C. 
17011(a))) or new qualified alternative fuel motor vehicles (as defined 
in section 30B(e)(4) of the Internal Revenue Code of 1986, but 
determined without regard to clauses (ii) and (iii) of subparagraph (A) 
thereof):
            ``(A) 10 percent for fiscal year 2014.
            ``(B) The applicable percentage for the preceding fiscal 
        year increased by 2 percentage points (but not to exceed a 
        total of 50 percent) for fiscal year 2015 and each subsequent 
        fiscal year.''; and
                    (C) in paragraph (3) (as redesignated by 
                subparagraph (A) of this paragraph), by inserting ``or 
                (2)'' after ``paragraph (1)'';
            (2) by striking subsection (c) and inserting the following:
    ``(c) Allocation of Incremental Costs.--Subject to the availability 
of funds appropriated to carry out this subsection (to remain available 
until expended), the General Services Administration shall pay the 
incremental cost of alternative fuel vehicles over the cost of 
comparable gasoline vehicles for vehicles that the Administration 
purchased for the use of the Administration or on behalf of other 
agencies, in a total amount of not to exceed $300,000,000 for any of 
fiscal years 2014 through 2019.'';
            (3) in subsection (f), by adding at the end the following:
            ``(4) Compliance.--Compliance with this subsection shall 
        not relieve a Federal agency of the obligations of the agency 
        under subsection (b).''; and
            (4) in subsection (g), by striking ``fiscal years 1993 
        through 1998'' and inserting ``each fiscal year''.

SEC. 402. USE OF HOV FACILITIES BY LIGHT-DUTY, PLUG-IN ELECTRIC DRIVE 
              VEHICLES OR NEW QUALIFIED ALTERNATIVE FUEL MOTOR 
              VEHICLES.

    Section 166(b)(5) of title 23, United States Code, is amended--
            (1) in subparagraph (A), by striking ``Before'' and 
        inserting ``Except as provided in subparagraph (D), before'';
            (2) in subparagraph (B), by striking ``Before'' and 
        inserting ``Except as provided in subparagraph (D), before''; 
        and
            (3) by adding at the end the following:
                    ``(D) Use by plug-in electric drive vehicles.--
                            ``(i) Definition of plug-in electric drive 
                        vehicle.--In this subparagraph, the term `plug-
                        in electric drive vehicle' has the meaning 
                        given the term in section 131(a) of the Energy 
                        Independence and Security Act of 2007 (42 
                        U.S.C. 17011(a)).
                            ``(ii) Use of hov facilities.--A State 
                        agency--
                                    ``(I) shall allow a vehicle to use 
                                HOV facilities in the State if the 
                                vehicle is, as determined by the 
                                Secretary--
                                            ``(aa) certified as a low-
                                        emission and energy-efficient 
                                        vehicle in accordance with 
                                        subsection (e);
                                            ``(bb) labeled in 
                                        accordance with subsection (e);
                                            ``(cc) a light-duty, plug-
                                        in electric drive vehicle or a 
                                        new qualified alternative fuel 
                                        motor vehicle (as defined in 
                                        section 30B(e)(4) of the 
                                        Internal Revenue Code of 1986, 
                                        but determined without regard 
                                        to clauses (ii) and (iii) of 
                                        subparagraph (A) thereof); and
                                            ``(dd) purchased on or 
                                        before December 31 of the 
                                        calendar year described in 
                                        clause (iii); and
                                    ``(II) shall not impose any toll or 
                                other charge on such a vehicle for use 
                                of an HOV facility in the State.
                            ``(iii) Calendar year.--The calendar year 
                        referred to in clause (ii)(I)(dd) is the 
                        calendar year during which, as determined by 
                        the Secretary, the aggregate number of plug-in 
                        electric drive vehicles sold in the United 
                        States during all calendar years exceeds 
                        2,000,000.
                            ``(iv) Petition.--A State may petition the 
                        Secretary to limit or discontinue the use of an 
                        HOV facility by plug-in electric drive vehicles 
                        if the State demonstrates to the Secretary that 
                        the presence of the plug-in electric drive 
                        vehicles has degraded the operation of the HOV 
                        facility.''.

SEC. 403. RECHARGING INFRASTRUCTURE.

    (a) Definitions.--In this section:
            (1) Local government.--The term ``local government'' has 
        the meaning given the term in section 3371 of title 5, United 
        States Code.
            (2) Plug-in electric drive vehicle.--The term ``plug-in 
        electric drive vehicle'' has the meaning given the term in 
        section 131(a) of the Energy Independence and Security Act of 
        2007 (42 U.S.C. 17011(a)).
            (3) New qualified alternative fueled vehicle.--The term 
        ``new qualified alternative fueled vehicle'' means a new 
        qualified alternative fuel motor vehicle (as defined in section 
        30B(e)(4) of the Internal Revenue Code of 1986, but determined 
        without regard to clauses (ii) and (iii) of subparagraph (A) 
        thereof).
            (4) Range extension infrastructure.--The term ``range 
        extension infrastructure'' includes equipment, products, or 
        services for recharging plug-in electric drive vehicles that--
                    (A) are available to retail consumers of electric 
                drive vehicles on a nondiscriminatory basis;
                    (B) provide for extending driving range through 
                battery exchange or rapid recharging; and
                    (C) are comparable in convenience and price to 
                petroleum-based refueling services.
    (b) Study.--
            (1) In general.--The Secretary of Energy shall conduct a 
        study of--
                    (A) the number and distribution of recharging 
                facilities and alternative vehicle fuel facilities, 
                including range extension infrastructure, that will be 
                required for drivers of plug-in electric drive vehicles 
                in the United States to reliably recharge the electric 
                drive vehicles;
                    (B) minimum technical standards for public 
                recharging facilities, in coordination with the 
                National Institute of Standards and Technology; and
                    (C) the concurrent technical and infrastructure 
                investments that electric utilities and electricity 
                providers will be required to make to support 
                widespread deployment of recharging infrastructure and 
                the estimated costs of the investments.
            (2) Components.--In conducting the study required under 
        this subsection, the Secretary shall analyze--
                    (A) the variety and density of recharging 
                infrastructure options necessary to power plug-in 
                electric drive vehicles under diverse scenarios, 
                including--
                            (i) the ratio of residential, commercial, 
                        and public recharging infrastructure options 
                        necessary to support 10 percent, 20 percent, 
                        and 50 percent penetration of plug-in electric 
                        vehicles on a city fleet basis;
                            (ii) the ratio of residential, commercial, 
                        and public recharging infrastructure options 
                        necessary to support 10 percent, 20 percent, 
                        and 50 percent penetration of plug-in electric 
                        vehicles on a national fleet basis; and
                            (iii) the potential impact of fast charging 
                        on penetration rates and utility power 
                        management requirements;
                    (B) whether use of parking spots with access to 
                recharging facilities should be limited to plug-in 
                electric drive vehicles; and
                    (C) such other issues as the Secretary considers 
                appropriate.
            (3) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall submit to the 
        appropriate committees of Congress a report on the results of 
        the study conducted under this subsection, including any 
        recommendations.
    (c) Grants and Loans to Local Governments for Recharging 
Infrastructure.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall establish a program 
        under which the Secretary shall provide grants and loans to 
        local governments to assist in the installation of recharging 
        facilities for electric drive vehicles in areas under the 
        jurisdiction of the local governments. The Secretary shall 
        provide funding under this section to local governments to pay 
        not more than 50 percent of the recharging infrastructure cost.
            (2) Eligibility.--To be eligible to obtain a grant or loan 
        under this subsection, a local government shall--
                    (A) demonstrate to the Secretary that the local 
                government has taken into consideration the findings of 
                the report submitted under subsection (b)(3), unless 
                the local government demonstrates to the Secretary that 
                an alternative variety and density of recharging 
                infrastructure options would better meet the purposes 
                of this section; and
                    (B) agree not to charge a premium for use of a 
                parking space used to recharge an electric drive 
                vehicle other than a charge for electric energy.
            (3) Guidelines.--The Secretary shall establish guidelines 
        for carrying out this subsection that are consistent with the 
        report submitted under subsection (b)(3).
            (4) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection a total of $250,000,000 for grants and a total of 
        $250,000,000 for loans, to remain available until expended.

SEC. 404. LOAN GUARANTEES FOR ADVANCED BATTERY PURCHASES.

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

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

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

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

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

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

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

SEC. 407. STUDY OF DEVELOPMENT OF COMMON STANDARDS FOR PHEVS AND EVS 
              BETWEEN THE UNITED STATES, EUROPE AND ASIA.

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

      Subtitle B--Incentives for Diversification of Transportation

SEC. 420. AMENDMENT OF 1986 CODE.

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

SEC. 421. EXTENSION AND MODIFICATION OF CREDIT FOR FUEL CELL, HYBRID, 
              LEAN BURN, AND ALTERNATIVE FUEL VEHICLES.

    (a) Extension of Credit.--Subsection (k) of section 30B is amended 
to read as follows:
    ``(k) Termination.--This section shall not apply to any property 
purchased after December 31, 2019.''.
    (b) Application to Bi-Fuel, Duel-Fuel, and Flex-Fuel Vehicles.--
            (1) Bi-fuel and duel-fuel vehicles.--Clause (i) of section 
        30B(e)(4)(A) (relating to definition of new qualified 
        alternative fuel motor vehicle) is amended to read as follows:
                            ``(i) which is a dedicated vehicle, a bi-
                        fuel vehicle, or a duel-fuel vehicle,''.
            (2) Flex-fuel vehicles.--Subparagraph (B) of section 
        30B(e)(4) is amended by inserting ``or ethanol'' after 
        ``methanol''.
            (3) Bi-fuel and duel-fuel vehicles defined.--Paragraph (5) 
        of section 30B(e) is amended to read as follows:
            ``(5) Bi-fuel and duel-fuel vehicles defined.--For purposes 
        of this subsection--
                    ``(A) Bi-fuel vehicle.--The term `bi-fuel vehicle' 
                means a vehicle which is capable of operating on--
                            ``(i) compressed natural gas, liquified 
                        natural gas, or liquified petroleum gas, and
                            ``(ii) gasoline or diesel fuel.
                    ``(B) Duel-fuel vehicle.--The term `duel-fuel 
                vehicle' means a vehicle which is capable of operating 
                on a mixture of--
                            ``(i) compressed natural gas, liquified 
                        natural gas, or liquified petroleum gas, and
                            ``(ii) gasoline or diesel fuel.''.
    (c) Application to Conversions and Repowers of Alternative Fuel 
Vehicles.--Paragraph (4) of section 30B(e) is amended by adding at the 
end the following new subparagraph:
                    ``(C) Conversions and repowers.--
                            ``(i) In general.--The term `new qualified 
                        alternative fuel motor vehicle' includes the 
                        conversion or repower of a new or used vehicle 
                        so that it is capable of operating on an 
                        alternative fuel as it was not previously 
                        capable of operating on an alternative fuel.
                            ``(ii) Treatment as new.--A vehicle which 
                        has been converted to operate on an alternative 
                        fuel shall be treated as new on the date of 
                        such conversion for purposes of this section.
                            ``(iii) Rule of construction.--In the case 
                        of a used vehicle which is converted or 
                        repowered, nothing in this section shall be 
                        construed to require that the motor vehicle be 
                        acquired in the year the credit is claimed 
                        under this section with respect to such 
                        vehicle.''.
    (d) Repeal of Number Limitation on Hybrids and Lean-Burn 
Vehicles.--Section 30B is amended by striking subsection (f).
    (e) Effective Date.--The amendments made by this section shall 
apply to property purchased after December 31, 2013.

SEC. 422. EXTENSION AND EXPANSION OF CREDIT FOR NEW QUALIFIED PLUG-IN 
              ELECTRIC DRIVE MOTOR VEHICLES.

    (a) Extension.--Section 30D is amended by adding at the end the 
following new subsection:
    ``(g) Termination.--This section shall not apply to any property 
purchased after December 31, 2019.''.
    (b) Restoration of Credit for Large New Qualified Plug-In Electric 
Drive Motor Vehicles Weighing Over 14,000 Pounds.--
            (1) In general.--The last sentence of section 30D(b)(3) is 
        amended to read as follows: ``The amount determined under this 
        paragraph shall not exceed--
                    ``(A) $5,000, in the case of any new qualified 
                plug-in electric drive motor vehicle with a gross 
                vehicle weight rating of not more than 14,000 pounds,
                    ``(B) $10,000, in the case of any new qualified 
                plug-in electric drive motor vehicle with a gross 
                vehicle weight rating of more than 14,000 pounds but 
                not more than 26,000 pounds, and
                    ``(C) $12,500, in the case of any new qualified 
                plug-in electric drive motor vehicle with a gross 
                vehicle weight rating of more than 26,000 pounds.''.
            (2) Conforming amendments.--Paragraph (1) of section 30D(d) 
        is amended by adding ``and'' at the end of subparagraph (D), by 
        striking subparagraph (E), and by redesignating subparagraph 
        (F) as subparagraph (E).
    (c) Increase in Per Manufacturer Cap.--Paragraph (2) of section 
30D(e) is amended by striking ``200,000'' and inserting ``400,000''.
    (d) Effective Date.--The amendments made by this section shall 
apply to vehicles acquired after the date of the enactment of this Act.

SEC. 423. EXTENSION OF CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES.

    (a) In General.--Subsection (f) of section 30 is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to vehicles acquired after the date of the enactment of this Act.

SEC. 424. TAX CREDIT FOR MOST EFFICIENT VEHICLE IN CLASS.

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

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

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

SEC. 425. EXTENSION OF CREDIT AND EXTENSION OF TEMPORARY INCREASE IN 
              CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

    (a) Extension of Credit.--Subsection (g) of section 30C is amended 
by striking ``service--'' and all that follows and inserting ``service 
after December 31, 2019.''.
    (b) Extension of Temporary Increase.--Paragraph (6) of section 
30C(e) is amended--
            (1) by striking ``January 1, 2011'' and inserting ``January 
        1, 2020'', and
            (2) by striking ``and 2010'' in the heading and inserting 
        ``through 2019''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.

SEC. 426. MODIFICATION OF ALTERNATIVE FUEL CREDIT.

    (a) Alternative Fuel Credit.--Paragraph (5) of section 6426(d) 
(relating to alternative fuel credit) is amended by inserting ``, and 
December 31, 2019, in the case of any sale or use involving compressed 
or liquefied natural gas or liquified petroleum gas'' after 
``hydrogen''.
    (b) Alternative Fuel Mixture Credit.--Paragraph (3) of section 
6426(e) is amended by inserting ``, and December 31, 2019, in the case 
of any sale or use involving compressed or liquefied natural gas or 
liquified petroleum gas'' after ``hydrogen''.
    (c) Payments Relating to Alternative Fuel or Alternative Fuel 
Mixtures.--Paragraph (6) of section 6427(e) is amended--
            (1) in subparagraph (C)--
                    (A) by striking ``subparagraph (D)'' and inserting 
                ``subparagraphs (D) and (E)'', and
                    (B) by striking ``and'' at the end thereof,
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``, and'', and
            (3) by inserting at the end the following:
                    ``(E) any alternative fuel or alternative fuel 
                mixture (as so defined) involving compressed or 
                liquefied natural gas or liquified petroleum gas sold 
                or used after December 31, 2019.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.

SEC. 427. EXTENSION OF CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(6)(B) are 
each amended by striking ``December 31, 2013'' and inserting ``December 
31, 2019''.
    (b) Effective Date.--The amendments made by this section shall 
apply to fuel produced, and sold or used, after December 31, 2013.

       Subtitle C--Low-Carbon Diversification of Electric System

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

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

SEC. 432. ENSURING REVENUES ARE SUFFICIENT FOR IMPLEMENTATION OF TITLE 
              IV.

    (a) Any programs or directives established by title IV of this Act, 
such as sections 401, 403, and 431, but not extensions of tax credits, 
shall be offset with funds in the Carbon Free Reserve account 
established in section 107.
    (b) Once the reserve account's balance has funds sufficient to 
offset the costs of these provisions, the Secretary of Energy shall 
submit a plan to Congress within 180 days to begin implementation of 
those provisions.
                                 <all>
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