II 

111TH CONGRESS 

2D SESSION S. 3601 

To promote the oil independence of the United States, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 15, 2010 

Mr. MERKLEY (for himself, Mr. CARPER, Mr. UDALL of New Mexico, and Mr. 

BENNET) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To promote the oil independence of the United States, and 

for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Oil Independence for a Stronger America Act of 2010’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—NATIONAL ENERGY SECURITY PROGRAM 

Sec. 101. National energy security program. 

Sec. 102. National Energy Security Council. 


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TITLE II—VEHICLE FUEL ECONOMY 

Sec. 201. Vehicle fuel economy. 

TITLE III—ELECTRIC VEHICLE DEPLOYMENT 

Sec. 301. Findings. 

Sec. 302. Definitions. 

Sec. 303. National Electric Drive Vehicle Deployment Program. 

Sec. 304. Targeted Electric Drive Vehicle Deployment Communities Program. 

Sec. 305. Modifications to tax credits. 

Sec. 306. Qualified plug-in electric drive motor vehicle refueling property bonds. 

Sec. 307. Utility planning for plug-in electric drive vehicles. 

Sec. 308. Federal fleets. 

Sec. 309. Advanced batteries for tomorrow prize. 

Sec. 310. Research and development program. 

Sec. 311. Study on the supply of raw materials. 

Sec. 312. Plug-in Electric Drive Vehicle Technical Advisory Committee. 

Sec. 313. Plug-in Electric Drive Vehicle Interagency Task Force. 

Sec. 314. Prohibition on disposing of advanced batteries in landfills. 

Sec. 315. Loan guarantees for advanced battery purchases for use in stationary 

applications. 

Sec. 316. Model updating building codes, permitting and inspection processes, 

and zoning or parking rules. 

Sec. 317. Workforce training. 

Sec. 318. Credit for grid-interactive plug-in vehicles. 

TITLE IV—TRANSPORTATION INFRASTRUCTURE 

Subtitle A—Transportation Options for Families and Businesses 

Sec. 401. Oil savings and greenhouse gas emission reductions through transportation efficiency. 

Sec. 402. Investing in transportation greenhouse gas emission reduction programs. 

Sec. 403. Commuter benefits equity. 

Subtitle B—Freight Transportation 

Sec. 411. Freight transportation goal and plan. 

Sec. 412. Freight rail congestion grants. 

Sec. 413. Rail electrification study. 

TITLE V—ALTERNATIVE TRANSPORTATION FUELS 

Subtitle A—Advanced Biofuels 

Sec. 501. Allowance of investment tax credit for advanced biofuel facilities. 

Sec. 502. Grants for advanced biofuel facility property. 

Sec. 503. Inclusion of algae-based biofuel in definition of cellulosic biofuel. 

Sec. 504. Extension of cellulosic biofuel producer credit. 

Sec. 505. Extension of special allowance for cellulosic biofuel plant property. 

Sec. 506. Extension of incentives for biodiesel and renewable diesel. 

Sec. 507. Extension of alcohol fuels tax credits. 

Subtitle B—Powering Vehicles With Natural Gas 

Sec. 511. Credit for qualified natural gas motor vehicles. 


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Sec. 512. Natural gas vehicle bonds. 

Sec. 513. Incentives for manufacturing facilities producing vehicles fueled by 

compressed or liquified natural gas. 

Sec. 514. Study of increasing natural gas and liquefied petroleum gas vehicles 

in Federal fleet. 

TITLE VI—HEATING OIL AND PROPANE CONSERVATION 

Sec. 601. Energy efficiency improvements for heating oil, propane, and kerosene use in homes and commercial buildings. 

Sec. 602. Renewable biomass thermal energy for commercial buildings. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) ADMINISTRATOR.—The term ‘‘Adminis4 trator’’ means the Administrator of the Environ5 mental Protection Agency. 

6 (2) COUNCIL.—The term ‘‘Council’’ means the 

7 National Energy Security Council established by sec8 tion 102. 

9 (3) NATIONAL OIL INDEPENDENCE GOAL.—The 

10 term ‘‘national oil independence goal’’ means the na11 tional oil independence goal established under sec12 tion 101(c). 

13 (4) NATIONAL OIL INDEPENDENCE PLAN.—The 

14 term ‘‘national oil independence plan’’ means the na15 tional oil independence plan established under sec16 tion 101(d). 


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1 TITLE I—NATIONAL ENERGY 

2 SECURITY PROGRAM 

3 SEC. 101. NATIONAL ENERGY SECURITY PROGRAM. 

4 (a) ESTABLISHMENT.—There is established in the 

5 Executive Office of the President the national energy secu6 rity program. 

7 (b) MISSION.—The mission of the national energy se8 curity program shall be to coordinate the activities and 

9 policies of the Federal Government to ensure, to the max10 imum extent practicable, that the United States meets— 

11 (1) goals for reducing oil dependence, oil im12 ports, and oil consumption; and 

13 (2) other energy policy goals, including goals 

14 for— 

15 (A) enhancing the competitiveness of the 

16 United States in clean energy technology; 

17 (B) strengthening clean energy technology 

18 manufacturing in the United States; 

19 (C) reducing greenhouse gas emissions; 

20 and 

21 (D) reducing other environmental impacts. 

22 (c) NATIONAL OIL INDEPENDENCE GOAL.— 

23 (1) IN GENERAL.—Subject to paragraph (2), it 

24 is the goal of the United States to reduce oil con25 sumption by 8,000,000 barrels per day by calendar 


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1 year 2030 (as compared to the rate of oil consump2 tion projected for calendar year 2030 as of the date 

3 of enactment of this Act). 

4 (2) ADJUSTMENTS.—The President, in con5 sultation with the Council— 

6 (A) may adjust the goal established under 

7 paragraph (1); and 

8 (B) shall ensure that the goal represents 

9 the maximum practicable oil savings achievable, 

10 taking into account other benefits of reducing 

11 oil consumption (including economic, security, 

12 and environmental benefits) and costs or other 

13 economic effects. 

14 (d) NATIONAL OIL INDEPENDENCE PLAN.— 

15 (1) IN GENERAL.—The President, in coordina16 tion with the Council and the Director of the Office 

17 of Management and Budget, shall— 

18 (A) develop a national oil independence 

19 plan that describes programs and activities that 

20 will be implemented to meet or exceed the na21 tional oil independence goal; 

22 (B) submit the national oil independence 

23 plan to Congress not later than 180 days after 

24 the date of enactment of this Act; and 


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1 (C) submit an updated national oil inde2 pendence plan to Congress every 2 years there3 after. 

4 (2) REVIEW OF FEDERAL POLICIES, PROGRAMS, 

5 AND AUTHORITIES.—Not later than 120 days after 

6 the date of enactment of this Act, the President, in 

7 coordination with the Council and the Director of 

8 the Office of Management and Budget, shall review 

9 existing programs and authorities of the Federal 

10 Government and other applicable policies (including 

11 tax policies) to determine— 

12 (A)(i) which programs, authorities, or poli13 cies could be used to accelerate reductions in oil 

14 dependence; and 

15 (ii) the manner by which the programs, au16 thorities, or policies could be used to maximize 

17 reductions in oil dependence; and 

18 (B)(i) which programs, authorities, or poli19 cies have the effect of increasing oil consump20 tion and oil dependence or otherwise create bar21 riers to reducing oil consumption and oil de22 pendence; and 

23 (ii) the manner by which the programs, au24 thorities, or policies— 


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1 (I) have the effect of encouraging oil 

2 consumption or oil dependence or otherwise 

3 create barriers to reducing oil consumption 

4 and oil dependence; and 

5 (II) could be modified or eliminated to 

6 help meet the goal of reducing oil con7 sumption and oil dependence. 

8 (3) CONTENTS.—At a minimum, the national 

9 oil independence plan shall— 

10 (A) cover implementation of the measures 

11 and programs established by this Act; 

12 (B) describe the results and conclusions of 

13 the review conducted under paragraph (2); 

14 (C) as appropriate, include— 

15 (i) the use of programs, authorities, 

16 or policies described in paragraph (2)(A); 

17 and 

18 (ii) if existing authority allows, pro19 posals to modify or eliminate programs, 

20 authorities, or policies described in para21 graph (2)(B); 

22 (D) include recommendations to Congress 

23 for legislation that would further— 

24 (i) promote reductions in oil consump25 tion and oil dependence; 


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1 (ii) reduce barriers to reducing oil 

2 consumption and oil dependence; and 

3 (iii) help meet the energy policy goals 

4 of the United States; 

5 (E) include a timetable for achieving the 

6 national oil independence goal, including in7 terim targets on not less than a biennial basis; 

8 (F) a plan for coordinating actions across 

9 the Federal Government, including measures 

10 established under this Act, to ensure, to the 

11 maximum extent practicable, that the national 

12 oil independence goal is met; and 

13 (G) a timeline for issuing rules, Executive 

14 orders, or other policy instruments that will im15 plement the recommendations contained the na16 tional oil independence plan. 

17 (e) ANNUAL REQUESTS TO CONGRESS.—When sub18 mitting annual budget requests to Congress, the President 

19 shall include— 

20 (1) requests for sufficient funding for such pro21 grams as are necessary to meet the national oil inde22 pendence goal; 

23 (2) requests for additional authority or changes 

24 to existing laws or authorities to implement the na25 tional oil independence plan; and 


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1 (3) a report on the oil consumption and imports 

2 of the United States relative to the national oil inde3 pendence goal and the interim targets and timelines 

4 established in the national oil independence plan. 

5 SEC. 102. NATIONAL ENERGY SECURITY COUNCIL. 

6 (a) ESTABLISHMENT.—There is established in the 

7 Executive Office of the President a National Energy Secu8 rity Council. 

9 (b) MISSION.—The mission of the Council shall be 

10 to assist and advise the President in— 

11 (1) setting and meeting the national oil inde12 pendence goal; 

13 (2) developing the national oil independence 

14 plan and the requests described in section 101(e); 

15 (3) coordinating the policies, programs, and ac16 tivities of the Federal program in order to imple17 ment the national oil independence plan and meet 

18 the national oil independence goal; and 

19 (4) ensuring that policy decisions and programs 

20 are consistent with the energy policy goals of the 

21 United States. 

22 (c) MEMBERSHIP.—The membership of the Council 

23 shall consist of— 

24 (1) the Secretary of Energy; 

25 (2) the Secretary of Transportation; 


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1 (3) the Administrator; 

2 (4) the Director of the National Economic 

3 Council; 

4 (5) the Secretary of Commerce; 

5 (6) the Secretary of Labor; 

6 (7) the Secretary of Agriculture; 

7 (8) the Chair of the Council on Environmental 

8 Quality; 

9 (9) the Secretary of Housing and Urban Devel10 opment; 

11 (10) the Secretary of State; 

12 (11) the Director of the Office of Management 

13 and Budget; and 

14 (12) the Director of the Office of Science and 

15 Technology Policy. 

16 (d) CHAIR.—The President shall act as Chair of the 

17 Council. 

18 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to carry out this section 

20 $8,000,000 for each fiscal year. 

21 TITLE II—VEHICLE FUEL 

22 ECONOMY 

23 SEC. 201. VEHICLE FUEL ECONOMY. 

24 (a) LIGHT-DUTY VEHICLES.—The Secretary of 

25 Transportation, using the authority provided under secVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 tion 32902 of title 49, United States Code, and the Ad2 ministrator, using the authority provided under the Clean 

3 Air Act (42 U.S.C. 7401 et seq.), shall— 

4 (1) not later than 1 year after the date of en5 actment of this Act, promulgate joint regulations es6 tablishing corporate average fuel economy standards 

7 and greenhouse gas emissions limitations for light8 duty vehicles manufactured for each of model years 

9 2017 through 2030 to maximize reductions in oil 

10 consumption and greenhouse gas emissions con11 sistent with the criteria under those authorities; and 

12 (2) every 3 years thereafter, update the stand13 ards and limitations established under paragraph (1) 

14 for model years that are not less than 4 years after 

15 the date of the update. 

16 (b) MEDIUM- AND HEAVY-DUTY VEHICLES.—The 

17 Secretary of Transportation, using the authority provided 

18 under section 32902 of title 49, United States Code, and 

19 the Administrator, using the authority provided under the 

20 Clean Air Act (42 U.S.C. 7401 et seq.), shall— 

21 (1) not later than 18 months after the date of 

22 enactment of this Act, promulgate joint regulations 

23 establishing corporate average fuel economy stand24 ards and greenhouse gas emissions limitations for 

25 medium- and heavy-duty vehicles manufactured for 


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1 each of model years 2017 through 2030 to maximize 

2 reductions in oil consumption and greenhouse gas 

3 emissions consistent with the criteria under those 

4 authorities; and 

5 (2) every 3 years thereafter, update the stand6 ards and limitations established under paragraph (1) 

7 for model years that are not less than 4 years after 

8 the date of the update. 

9 (c) NONROAD VEHICLES.— 

10 (1) IN GENERAL.—Not later than 2 years after 

11 the date of enactment of this Act, the Secretary of 

12 Transportation, using the authority provided under 

13 section 32902 of title 49, United States Code, and 

14 the Administrator, using the authority provided 

15 under the Clean Air Act (42 U.S.C. 7401 et seq.), 

16 shall promulgate joint regulations establishing fuel 

17 economy standards and greenhouse gas emissions 

18 limitations for nonroad vehicles to maximize reduc19 tions in oil consumption and greenhouse gas emis20 sions. 

21 (2) INCLUSIONS.—The nonroad vehicles de22 scribed in paragraph (1) shall include, at a min23 imum— 

24 (A) airplanes and aviation vehicles; 

25 (B) passenger and freight rail engines; 


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1 (C) boat and other marine engines; and 

2 (D) off-highway construction vehicles. 

3 (3) EFFECTIVE DATE.—The standards and lim4 itations established under paragraph (1) shall take 

5 effect not earlier than 2 years after the date on 

6 which the applicable regulations are promulgated. 

7 (4) UPDATES.—The Secretary of Transpor8 tation and the Administrator shall establish a 

9 timeline for updating the standards and limitations 

10 established under paragraph (1) to maximize reduc11 tions in oil consumption and greenhouse gas. 

12 TITLE III—ELECTRIC VEHICLE 

13 DEPLOYMENT 

14 SEC. 301. FINDINGS. 

15 Congress finds that— 

16 (1) the United States is the largest consumer of 

17 petroleum in the world, consuming 19,500,000 bar18 rels per day of petroleum products during 2008; 

19 (2) high and volatile international oil prices rep20 resent a significant and ongoing threat to the eco21 nomic and national security of the United States; 

22 (3) many of the nations on which the United 

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1 ther the national interest nor the values of the 

2 United States; 

3 (4) the United States imports more than 50 

4 percent of the petroleum needs of the country each 

5 day; 

6 (5) in 2008, the net deficit of the United States 

7 in petroleum trade amounted to more than 

8 $380,000,000,000, or nearly 60 percent of the total 

9 trade deficit; 

10 (6) the transportation sector of the United 

States accounts for over 2 11 ⁄3 of total national petro12 leum consumption and is 94 percent reliant on pe13 troleum; 

14 (7) the electrification of the light-duty vehicle 

15 fleet represents a direct pathway to significant re16 duction in petroleum dependence, because passenger 

17 cars and light trucks account for more than 60 per18 cent of the transportation petroleum demand and 

19 more than 40 percent of total petroleum demand in 

20 the United States; 

21 (8) the electrification of the light-duty vehicle 

22 fleet promotes national energy security because the 

23 electric power sector uses a diverse range of domes24 tic electricity generation sources; 


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1 (9) electric drive cars, when running on electric 

2 power, produce no tailpipe emissions; 

3 (10) the deployment of 700,000 plug-in electric 

4 drive vehicles would result in a petroleum savings of 

5 approximately 10,000,000 barrels per year compared 

6 to the annual petroleum consumption as of the date 

7 of enactment of this Act; 

8 (11) in 2030, the United States could feasibly 

9 deploy more than 100,000,000 plug-in electric drive 

10 vehicles, which would result in a petroleum savings 

11 of more than 1,000,000,000 barrels of petroleum per 

12 year and greenhouse gas reductions of over 

13 300,000,000 tons of carbon dioxide compared to the 

14 annual petroleum consumption and greenhouse gas 

15 emissions as of the date of enactment of this Act; 

16 and 

17 (12) a targeted deployment program for plug-in 

18 electric drive vehicles that is focused on competi19 tively selected deployment communities— 

20 (A) represents the best opportunity to in21 troduce plug-in electric drive vehicles to the 

22 market; and 

23 (B) with the information learned from the 

24 deployment communities, will— 


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1 (i) inform best practices for the wide2 scale deployment of plug-in electric drive 

3 vehicles; and 

4 (ii) substantially reduce the oil con5 sumption of the United States. 

6 SEC. 302. DEFINITIONS. 

7 In this title: 

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

9 meaning given the term ‘‘Executive agency’’ in sec10 tion 105 of title 5, United States Code. 

11 (2) CHARGING INFRASTRUCTURE.—The term 

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

13 including a building or the structural components of 

14 a building) if the property is used for the recharging 

15 of motor vehicles propelled by electricity, including 

16 electrical panel upgrades, wiring, conduit, trenching, 

17 pedestals, and related equipment. 

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

19 means the Plug-in Electric Drive Vehicle Technical 

20 Advisory Committee established by section 312. 

21 (4) DEPLOYMENT COMMUNITY.—The term ‘‘de22 ployment community’’ means a community selected 

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

24 electric drive vehicles deployment communities pro25 gram under section 304. 


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1 (5) ELECTRIC DRIVE VEHICLE.—The term 

2 ‘‘electric drive vehicle’’ means a vehicle that— 

3 (A)(i) is— 

4 (I) a light-duty vehicle (as the term is 

5 defined in section 86.1803–01 of title 40, 

6 Code of Federal Regulations, as in effect 

7 as of the date of enactment of this Act) 

8 that draws motive power from a battery 

9 with a capacity of at least 4 kilowatt10 hours; 

11 (II) a heavy-duty vehicle (as the term 

12 is defined in section 86.1803–01 of title 

13 40, Code of Federal Regulations, as in ef14 fect as of the date of enactment of this 

15 Act) with a gross vehicle weight rating 

16 greater than 8,500 pounds and less than 

17 14,000 pounds that draws motive power 

18 from a battery with a capacity of at least 

19 8 kilowatt-hours; 

20 (III) a heavy-duty vehicle (as the term 

21 is defined in section 86.1803–01 of title 

22 40, Code of Federal Regulations, as in ef23 fect as of the date of enactment of this 

24 Act) with a gross vehicle weight rating 

25 greater than 14,000 pounds and less than 


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1 33,000 pounds that draws motive power 

2 from a battery with a capacity of at least 

3 15 kilowatt-hours; or 

4 (IV) a heavy-duty vehicle (as the term 

5 is defined in section 86.1803–01 of title 

6 40, Code of Federal Regulations, as in ef7 fect as of the date of enactment of this 

8 Act) with a gross vehicle weight rating 

9 greater than 33,000 pounds that draws 

10 motive power from a battery with a capac11 ity of at least 20 kilowatt-hours; and 

12 (ii) can be recharged from an external 

13 source of electricity for motive power; or 

14 (B) is a motor vehicle (as the term is de15 fined in section 216 of the Clean Air Act (42 

16 U.S.C. 7550)) that draws motive power from a 

17 fuel cell (as the term is defined in section 803 

18 of the Spark M. Matsunaga Hydrogen Act of 

19 2005 (42 U.S.C. 16152)). 

20 (6) ELECTRIC UTILITY.—The term ‘‘electric 

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

22 3 of the Public Utility Regulatory Policies Act of 

23 1978 (16 U.S.C. 2602). 

24 (7) FEDERAL-AID SYSTEM OF HIGHWAYS.—The 

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


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1 highway system described in section 103 of title 23, 

2 United States Code. 

3 (8) PLUG-IN ELECTRIC DRIVE VEHICLE.— 

4 (A) IN GENERAL.—The term ‘‘plug-in elec5 tric drive vehicle’’ has the meaning given the 

6 term in section 131(a)(5) of the Energy Inde7 pendence and Security Act of 2007 (42 U.S.C. 

8 17011(a)(5)). 

9 (B) INCLUSIONS.—The term ‘‘plug-in elec10 tric drive vehicle’’ includes— 

11 (i) a low speed plug-in electric drive 

12 vehicles that meet the Federal Motor Vehi13 cle Safety Standards described in section 

14 571.500 of title 49, Code of Federal Regu15 lations (or successor regulations); and 

16 (ii) any other motor vehicles that can 

17 be recharged from an external source of 

18 motive power and that is authorized to 

19 travel on the Federal-aid system of high20 ways. 

21 (9) PRIZE.—The term ‘‘Prize’’ means the Ad22 vanced Batteries for Tomorrow Prize established by 

23 section 309. 

24 (10) SECRETARY.—The term ‘‘Secretary’’ 

25 means the Secretary of Energy. 


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1 (11) TASK FORCE.—The term ‘‘Task Force’’ 

2 means the Plug-in Electric Drive Vehicle Inter3 agency Task Force established by section 313. 

4 SEC. 303. NATIONAL ELECTRIC DRIVE VEHICLE DEPLOY5 MENT PROGRAM. 

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

7 Department of Energy a national electric drive vehicle de8 ployment program. 

9 (b) NATIONAL PLAN.— 

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

11 the date of enactment of this Act, the Secretary 

12 shall develop a national plan for electric drive vehicle 

13 deployment that includes— 

14 (A) an assessment of the maximum fea15 sible deployment of plug-in electric drive vehi16 cles by 2020 and 2030; 

17 (B) the establishment of national goals for 

18 market penetration of plug-in electric drive ve19 hicles by 2020 and 2030; 

20 (C) a plan for using the successes and bar21 riers to deployment identified by the deploy22 ment communities program established under 

23 section 304 to prepare communities across the 

24 nation for the rapid deployment of plug-in elec25 tric drive vehicles that includes— 


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1 (i) measures that communities not se2 lected as deployment communities should 

3 implement to prepare for electric drive ve4 hicle deployment; and 

5 (ii) any recommendations to the Presi6 dent or Congress on the manner in which 

7 the Federal Government can assist commu8 nities not selected as deployment commu9 nities in preparing for electric vehicle de10 ployment— 

11 (I) to support national plug-in 

12 electric drive vehicle deployment; and 

13 (II) to benefit from the lessons 

14 learned by targeted electric drive vehi15 cle deployment communities; 

16 (D) a plan for providing technical assist17 ance to communities across the United States 

18 to prepare for plug-in electric drive vehicle de19 ployment; and 

20 (E) in consultation with the Task Force, 

21 any recommendations to the President and to 

22 Congress for changes in Federal programs (in23 cluding laws, regulations, and guidelines)— 

24 (i) to better promote the deployment 

25 of plug-in electric drive vehicles; and 


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1 (ii) to reduce barriers to the deploy2 ment of plug-in electric drive vehicles. 

3 (2) UPDATES.—The Secretary shall use market 

4 data and information from the targeted electric drive 

5 vehicle deployment communities program established 

6 under section 304 to regularly update the plan to re7 flect real world market conditions. 

8 (c) TECHNICAL ASSISTANCE.— 

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

10 the Secretary shall provide, at the request of the ap11 plicable local elected official, technical assistance to 

12 communities to assist with the deployment of plug13 in electric drive vehicles. 

14 (2) PRIORITY.—In providing technical assist15 ance under this subsection, the Secretary shall give 

16 priority to— 

17 (A) communities that— 

18 (i) applied to participate in the pro19 gram described in section 304 but were not 

20 selected to be deployment communities; 

21 and 

22 (ii) submitted applications that were 

23 evaluated as the most worthy of selection 

24 based on criteria established by the Sec25 retary; 


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1 (B) communities that have established the 

2 most engaged partnerships among stakeholders, 

3 including, at a minimum— 

4 (i) elected and appointed officials 

5 from each of the participating State, local, 

6 and tribal governments; 

7 (ii) all relevant generators and dis8 tributors of electricity; 

9 (iii) public utility commissions; 

10 (iv) departments of public works and 

11 transportation; 

12 (v) owners and operators of property 

13 that will be essential to the deployment of 

14 a sufficient level of publicly available 

15 charging infrastructure (including privately 

16 owned parking lots or structures); 

17 (vi) plug-in electric drive vehicle man18 ufacturers or retailers; 

19 (vii) third-party providers of charging 

20 infrastructure or services; 

21 (viii) owners of any major fleet that 

22 will participate in the program; 

23 (ix) as appropriate, owners and opera24 tors of regional electric power distribution 

25 and transmission facilities; and 


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1 (x) other existing community coali2 tions recognized by the Department of En3 ergy; and 

4 (C) communities that have best dem5 onstrated that the public is likely to embrace 

6 plug-in electric drive vehicles. 

7 (d) REPORT.—The Secretary shall submit biennially 

8 to the appropriate committees of Congress a report on the 

9 progress made in implementing the national plan de10 scribed in subsection (b) that includes— 

11 (1) a description of the progress made by the 

12 technical assistance program under subsection (c); 

13 and 

14 (2) any updated recommendations of the Sec15 retary for changes in Federal programs to promote 

16 the purposes of this section. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out this section 

19 $10,000,000 for fiscal years 2011 through 2016. 

20 SEC. 304. TARGETED ELECTRIC DRIVE VEHICLE DEPLOY21 MENT COMMUNITIES PROGRAM. 

22 (a) ESTABLISHMENT.— 

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

24 the national electric drive deployment program es25 tablished under section 303 a targeted electric drive 


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1 vehicle deployment communities program (referred 

2 to in this section as the ‘‘Program’’). 

3 (2) PHASE 1.— 

4 (A) IN GENERAL.—The Secretary shall es5 tablish a competitive process to select at least 

6 5 and not more than 15 phase 1 deployment 

7 communities for the Program. 

8 (B) ELIGIBLE ENTITIES.—In selecting 

9 participants for the Program under paragraph 

10 (1), the Secretary shall only consider applica11 tions submitted by State, tribal, or local govern12 ment entities (or groups of State, tribal, or 

13 local government entities). 

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

15 after the date of enactment of this Act, the Sec16 retary shall select the phase 1 deployment com17 munities under this paragraph. 

18 (D) TERMINATION.—Phase 1 of the Pro19 gram shall be carried out for a 5-year period 

20 beginning on the date funding under this title 

21 is first provided to the deployment community. 

22 (3) PHASE 2.—Not later than 5 years after the 

23 date of enactment of this Act, the Secretary shall 

24 submit to Congress a report that analyzes the suc25 cess of phase I and, if, based on the phase I analVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 ysis, the Secretary determines that a phase II pro2 gram is warranted, makes recommendations and de3 scribes a plan for phase II, including— 

4 (A) recommendations regarding— 

5 (i) the number of additional deploy6 ment communities that should be selected; 

7 (ii) the manner in which criteria for 

8 selection should be updated; 

9 (iii) the manner in which incentive 

10 structures for phase 2 deployment should 

11 be changed; and 

12 (iv) whether other forms of onboard 

13 energy storage for electric drive vehicles 

14 should be included in phase 2; and 

15 (B) a request for appropriations to imple16 ment phase 2 of the Program. 

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

18 (1) to facilitate the rapid deployment of plug19 in electric drive vehicles, including— 

20 (A) the deployment of 700,000 plug-in 

21 electric drive vehicles in phase 1 in the deploy22 ment communities selected under paragraph 

23 (2); 


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1 (B) the near-term achievement of signifi2 cant market penetration in deployment commu3 nities; and 

4 (C) the achievement of significant market 

5 penetration nationally; 

6 (2) to establish models for the rapid deployment 

7 of plug-in electric drive vehicles nationally, including 

8 for the deployment of residential and publicly avail9 able charging infrastructure; 

10 (3) to increase consumer knowledge and accept11 ance of plug-in electric drive vehicles; 

12 (4) to encourage the innovation and investment 

13 necessary to achieve mass market deployment of 

14 plug-in electric drive vehicles; 

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

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

18 grid system performance and reliability; 

19 (6) to demonstrate protocols and communica20 tion standards that facilitate vehicle integration into 

21 the grid and provide seamless charging for con22 sumers traveling through multiple utility distribution 

23 systems; 

24 (7) to investigate differences among deployment 

25 communities and to develop best practices for impleVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 menting vehicle electrification in various commu2 nities, including best practices for planning for and 

3 facilitating the construction of residential and pub4 licly available infrastructure to support plug-in elec5 tric drive vehicles; 

6 (8) to collect comprehensive data on the pur7 chase and use of plug-in electric vehicles to inform 

8 best practices for rapidly deploying plug-in electric 

9 drive vehicles in other locations, including for the in10 stallation of charging infrastructure; and 

11 (9) to reduce and displace petroleum use and 

12 reduce greenhouse gas emissions by accelerating the 

13 deployment of plug-in electric drive vehicles in the 

14 United States. 

15 (c) PHASE 1 DEPLOYMENT COMMUNITY SELECTION

16 CRITERIA.— 

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

18 to the maximum extent practicable, that selected de19 ployment communities in phase 1 serve as models of 

20 deployment for various communities across the 

21 United States. 

22 (2) SELECTION.—In selecting communities 

23 under this section, the Secretary— 

24 (A) shall ensure, to the maximum extent 

25 practicable, that— 


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1 (i) the combination of selected com2 munities is diverse in population, demo3 graphics, urban and suburban composition, 

4 typical commuting patterns, climate, type 

5 of utility (including regulated, municipal, 

6 cooperative, and vertically integrated utili7 ties), and geography; 

8 (ii) at least 1 community selected has 

9 a population of less than 125,000; 

10 (iii) each deployment community will 

11 achieve significant market penetration; and 

12 (iv) the deployment communities 

13 present a strong opportunity for replication 

14 in other communities across the United 

15 States; 

16 (B) is encouraged to select a combination 

17 of deployment communities that includes mul18 tiple models or approaches for deploying plug19 in electric drive vehicles that the Secretary be20 lieves are reasonably likely to be effective, in21 cluding multiple approaches to the deployment 

22 of charging infrastructure; and 

23 (C) in addition to the criteria described in 

24 subparagraph (A), may give preference to appliVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 cants proposing a greater non-Federal cost 

2 share. 

3 (3) CRITERIA.— 

4 (A) IN GENERAL.—Not later than 120 

5 days after the date of enactment of this Act, 

6 the Secretary shall publish criteria for the selec7 tion of deployment communities that include re8 quirements that applications be submitted by a 

9 State, tribal, or local government entity (or 

10 groups of State, tribal, or local government en11 tities). 

12 (B) APPLICATION REQUIREMENTS.—The 

13 criteria published by the Secretary under sub14 paragraph (A) shall include application require15 ments that, at a minimum, include— 

16 (i) goals for— 

17 (I) the number of plug-in electric 

18 drive vehicles to be deployed in the 

19 community; 

20 (II) the expected percentage of 

21 light-duty vehicle sales that would be 

22 sales of plug-in electric drive vehicles; 

23 and 

24 (III) the adoption of plug-in elec25 tric drive vehicles (including mediumVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 or heavy-duty vehicles) in private and 

2 public fleets during the 5-year dura3 tion of the Program; 

4 (ii) evidence that— 

5 (I) the public is likely to embrace 

6 plug-in electric drive vehicles; and 

7 (II) automobile manufacturers 

8 and dealers will be able to provide and 

9 service the targeted number of plug-in 

10 electric drive vehicles in the commu11 nity for the duration of the program; 

12 (iii) clearly defined geographic bound13 aries of the proposed deployment area; 

14 (iv) a community deployment plan for 

15 the deployment of plug-in electric drive ve16 hicles, charging infrastructure, and serv17 ices in the deployment community; 

18 (v) assurances that a majority of the 

19 vehicle deployments anticipated in the plan 

20 will be for personal vehicles authorized to 

21 travel on the United States Federal-aid 

22 system of highways, but may also in23 clude— 

24 (I) private or public sector plug25 in electric drive fleet vehicles; 


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1 (II) medium- and heavy-duty hy2 brid vehicles; 

3 (III) low speed plug-in electric 

4 drive vehicles that meet Federal 

5 Motor Vehicle Safety Standards de6 scribed in section 571.500 of title 49, 

7 Code of Federal Regulations; and 

8 (IV) any other plug-in electric 

9 drive vehicle authorized to travel on 

10 the United States Federal-aid system 

11 of highways; and 

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

13 determined by the Secretary. 

14 (4) COMMUNITY DEPLOYMENT PLANS.—Plans 

15 for the deployment of plug-in electric drive vehicles 

16 shall include— 

17 (A) a proposed level of cost sharing in ac18 cordance with subsection (d)(2)(C); 

19 (B) documentation demonstrating a sub20 stantial partnership with relevant stakeholders, 

21 including— 

22 (i) a list of stakeholders that in23 cludes— 


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1 (I) elected and appointed officials 

2 from each of the participating State, 

3 local, and tribal governments; 

4 (II) all relevant generators and 

5 distributors of electricity; 

6 (III) State utility regulatory au7 thorities; 

8 (IV) departments of public works 

9 and transportation; 

10 (V) owners and operators of 

11 property that will be essential to the 

12 deployment of a sufficient level of 

13 publicly available charging infrastruc14 ture (including privately owned park15 ing lots or structures); 

16 (VI) plug-in electric drive vehicle 

17 manufacturers or retailers; 

18 (VII) third-party providers of 

19 charging infrastructure or services; 

20 (VIII) owners of any major fleet 

21 that will participate in the program; 

22 (IX) as appropriate, owners and 

23 operators of regional electric power 

24 distribution and transmission facili25 ties; and 


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1 (X) as appropriate, other existing 

2 community coalitions recognized by 

3 the Department of Energy; 

4 (ii) evidence of the commitment of the 

5 stakeholders to participate in the partner6 ship; 

7 (iii) a clear description of the role and 

8 responsibilities of each stakeholder; and 

9 (iv) a plan for continuing the engage10 ment and participation of the stakeholders, 

11 as appropriate, throughout the implemen12 tation of the deployment plan; 

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

14 electric drive vehicles anticipated to be plug-in 

15 electric drive personal vehicles and the number 

16 of plug-in electric drive vehicles anticipated to 

17 be privately owned fleet or public fleet vehicles; 

18 (D) a plan for deploying residential and 

19 publicly available charging infrastructure, in20 cluding— 

21 (i) an assessment of the number of 

22 consumers who will have access to private 

23 residential charging infrastructure; 


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1 (ii) an approach for accommodating 

2 residents who are not able to charge vehi3 cles at the place of residence; 

4 (iii) a plan for ensuring that the 

5 charging infrastructure be able to send and 

6 receive the information needed to interact 

7 with the grid and be compatible with smart 

8 grid technologies to the extent appropriate; 

9 (iv) an estimate of how many charg10 ing stations will be needed and where to lo11 cate the stations; 

12 (v) a plan for how much publicly 

13 available charging infrastructure will be 

14 privately funded or located on private 

15 property; and 

16 (vi) a description of equipment to be 

17 deployed, including assurances that, to the 

18 maximum extent practicable, equipment to 

19 be deployed will meet open, nonproprietary 

20 standards for connecting to plug-in electric 

21 drive vehicles that are either— 

22 (I) commonly accepted by indus23 try at the time the equipment is being 

24 acquired; or 


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1 (II) meet the standards developed 

2 by the Director of the National Insti3 tute of Standards and Technology 

4 under section 1305 of the Energy 

5 Independence and Security Act of 

6 2007 (42 U.S.C. 17385); 

7 (E) a plan for effective marketing of plug8 in electric drive vehicles, charging services, and 

9 infrastructure; 

10 (F) descriptions of updated building codes 

11 (or a plan to update building codes before or 

12 during the grant period) to include charging in13 frastructure or dedicated circuits for charging 

14 infrastructure, as appropriate, in new construc15 tion and major renovations; 

16 (G) descriptions of updated construction 

17 permitting or inspection processes (or a plan to 

18 update construction permitting or inspection 

19 processes) to allow for expedited installation of 

20 charging infrastructure for purchasers of plug21 in electric drive vehicles, including a permitting 

22 process that allows a vehicle purchaser to have 

23 charging infrastructure installed within 3 busi24 ness days; 


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1 (H) descriptions of updated zoning, park2 ing rules, or other local ordinances as are nec3 essary to facilitate the installation of publicly 

4 available charging infrastructure and to allow 

5 for access to publicly available charging infra6 structure, as appropriate; 

7 (I) additional incentives, beyond those es8 tablished by this title, for the purchasers of 

9 plug-in electric drive vehicles, including rebates 

10 or reductions in sales taxes or registration fees, 

11 preferred parking spaces, and single rider ac12 cess to high occupancy vehicle lanes for plug-in 

13 electric drive vehicles; 

14 (J) additional incentives, beyond those es15 tablished by this title, for the installation of 

16 charging infrastructure; 

17 (K) a proposed plan for making necessary 

18 utility and grid upgrades, including economi19 cally sound information technology upgrades 

20 and a plan for recovering the cost of the up21 grades; 

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

23 or third-party charging service provider, policies 

24 and plans for accommodating the deployment of 

25 plug-in electric drive vehicles, including— 


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1 (i) rate structures or provisions and 

2 billing protocols for the charging of plug3 in electric drive vehicles, including, as ap4 propriate— 

5 (I) accommodation for billing 

6 for— 

7 (aa) charging at a place of 

8 residence and at publicly avail9 able charging infrastructure; and 

10 (bb) vehicle owners who can11 not charge at home by virtue of 

12 the nature of their residence; and 

13 (II) rate structures or provisions 

14 that benefit consumers by facili15 tating— 

16 (aa) charging off-peak rates; 

17 (bb) load management strat18 egies that optimize reliable and 

19 economical operation of the grid; 

20 (cc) utilities, grid operators, 

21 or third-party charging services 

22 to draw battery charge for use on 

23 the grid; or 


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1 (dd) the offer of other bene2 fits to the utility system or the 

3 grid; 

4 (ii) analysis of potential impacts to 

5 the grid; 

6 (iii) plans for using information tech7 nology or third-party aggregators to mini8 mize the effects of charging on peak loads; 

9 (iv) plans for working with smart grid 

10 technologies or third-party aggregators for 

11 the purposes of smart charging and for al12 lowing 2-way communication and elec13 tricity movement; and 

14 (v) plans for anticipating vehicle-to15 grid applications that will allow batteries 

16 in cars as well as banks of batteries to be 

17 used for grid storage, ancillary services 

18 provision, and backup power; 

19 (M) a deployment timeline; 

20 (N) a plan for monitoring and evaluating 

21 the implementation of the plan, including 

22 metrics for assessing the success of the deploy23 ment and an approach to updating the plan, as 

24 appropriate; and 


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1 (O) a description of the manner in which 

2 any grant funds applied for under subsection 

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

4 share for the funds. 

5 (d) PHASE 1 APPLICATIONS AND GRANTS.— 

6 (1) IN GENERAL.—Not later than 120 days 

7 after the date of publication by the Secretary of the 

8 selection criteria described in subsection (c)(3), any 

9 State, tribe, or local government, or group of State, 

10 tribe, or local governments may apply to the Sec11 retary to become a deployment community. 

12 (2) GRANTS.— 

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

14 applicant may request up to $250,000,000 in fi15 nancial assistance from the Secretary to fund 

16 projects in the deployment community. 

17 (B) USE OF FUNDS.—Funds provided 

18 through a grant under this paragraph may be 

19 used to help implement the plan for the deploy20 ment of plug-in electric drive vehicles included 

21 in the application, including— 

22 (i) planning for and installing charg23 ing infrastructure, including offering addi24 tional incentives as described in subsection 

25 (c)(4)(J); 


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1 (ii) updating building codes, zoning or 

2 parking rules, or permitting or inspection 

3 processes as described in subparagraphs 

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

5 (iii) reducing the cost and increasing 

6 the consumer adoption of plug-in electric 

7 drive vehicles through incentives as de8 scribed in subsection (c)(4)(I); 

9 (iv) workforce training, including 

10 training of permitting officials; 

11 (v) public education described in the 

12 proposed marketing plan; and 

13 (vi) shifting State, tribal, or local gov14 ernment fleets to plug-in electric drive ve15 hicles, at a rate in excess of the existing 

16 Federal alternative fleet vehicle require17 ments. 

18 (C) COST-SHARING.— 

19 (i) IN GENERAL.—A grant provided 

20 under this paragraph shall be subject to a 

21 minimum non-Federal cost-sharing re22 quirement of 20 percent. 

23 (ii) NON-FEDERAL SOURCES.—The 

24 Secretary shall— 


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1 (I) determine the appropriate 

2 cost share for each selected applicant; 

3 and 

4 (II) require that not less than 20 

5 percent of the cost of an activity fund6 ed by a grant under this paragraph be 

7 provided by a non-Federal source. 

8 (iii) REDUCTION.—The Secretary may 

9 reduce or eliminate the cost-sharing re10 quirement described in clause (i), as the 

11 Secretary determines to be necessary. 

12 (iv) CALCULATION OF AMOUNT.—In 

13 calculating the amount of the non-Federal 

14 share under this section, the Secretary— 

15 (I) may include allowable costs in 

16 accordance with the applicable cost 

17 principles, including— 

18 (aa) cash; 

19 (bb) personnel costs; 

20 (cc) the value of a service, 

21 other resource, or third party in22 kind contribution determined in 

23 accordance with the applicable 

24 circular of the Office of Manage25 ment and Budget; 


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1 (dd) indirect costs or facili2 ties and administrative costs; or 

3 (ee) any funds received 

4 under the power program of the 

5 Tennessee Valley Authority or 

6 any Power Marketing Adminis7 tration (except to the extent that 

8 such funds are made available 

9 under an annual appropriation 

10 Act); 

11 (II) shall include contributions 

12 made by State, tribal, or local govern13 ment entities and private entities; and 

14 (III) shall not include— 

15 (aa) revenues or royalties 

16 from the prospective operation of 

17 an activity beyond the time con18 sidered in the grant, unless from 

19 a qualified electric drive vehicle 

20 refueling property bond (as de21 fined in section 54G(a) of the In22 ternal Revenue Code of 1986); 

23 (bb) proceeds from the pro24 spective sale of an asset of an ac25 tivity; or 


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1 (cc) other appropriated Fed2 eral funds. 

3 (v) REPAYMENT OF FEDERAL

4 SHARE.—The Secretary shall not require 

5 repayment of the Federal share of a cost6 shared activity under this section as a con7 dition of providing a grant. 

8 (vi) TITLE TO PROPERTY.—The re9 ceipt of Federal funds under this section 

10 shall not prohibit the purchaser of a vehi11 cle, equipment, or other property from re12 taining sole, permanent title to the vehicle, 

13 equipment, or property at the conclusion of 

14 the program. 

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

16 the application deadline established under paragraph 

17 (1), the Secretary shall announce the names of the 

18 deployment communities selected under this sub19 section. 

20 (e) REPORTING REQUIREMENTS.— 

21 (1) IN GENERAL.—The Secretary, in consulta22 tion with the Committee, shall— 

23 (A) determine what data will be required 

24 to be collected by participants in deployment 

25 communities and submitted to the Department 


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1 to allow for analysis of the deployment commu2 nities; and 

3 (B) develop metrics to determine the suc4 cess of the deployment communities. 

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

6 participation in the Program, a deployment commu7 nity shall provide any data identified by the Sec8 retary under paragraph (1). 

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

10 date of enactment of this Act and again after the 

11 completion of the Program, the Secretary shall sub12 mit to Congress a report that contains— 

13 (A) a description of the status of— 

14 (i) the deployment communities and 

15 the implementation of the deployment plan 

16 of each deployment community; 

17 (ii) the rate of vehicle manufacturing 

18 deployment and market penetration of 

19 plug-in electric drive vehicles; and 

20 (iii) the deployment of residential and 

21 publicly available infrastructure; 

22 (B) a description of the challenges experi23 enced and lessons learned from the program to 

24 date, including the activities described in sub25 paragraph (A); and 


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1 (C) an analysis of the data collected under 

2 this subsection. 

3 (f) INFORMATION CLEARINGHOUSE.—The Secretary 

4 shall make available to the public, in a timely manner, in5 formation regarding the cost, performance, usage data, 

6 and technical data regarding the deployment and integra7 tion of plug-in electric drive vehicles in the deployment 

8 communities. 

9 (g) PROPRIETARY INFORMATION.—The Secretary 

10 shall, as appropriate, provide for the protection of propri11 etary information and intellectual property rights. 

12 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated to carry out this section 

14 $2,002,000,000. 

15 (i) CONFORMING AMENDMENT.—Section 166(b)(5) 

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

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

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

19 State’’; and 

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

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

22 State’’. 

23 SEC. 305. MODIFICATIONS TO TAX CREDITS. 

24 (a) CREDIT FOR NEW QUALIFIED PLUG-IN ELEC25 TRIC DRIVE MOTOR VEHICLES.— 


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1 (1) TRANSFERABILITY.— 

2 (A) IN GENERAL.—Subsection (c) of sec3 tion 30D of the Internal Revenue Code of 1986 

4 is amended by adding at the end the following 

5 new paragraph: 

6 ‘‘(3) REFUNDABLE PERSONAL CREDIT.— 

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

8 title, in the case of a qualified deployment com9 munity taxpayer, the credit allowed under sub10 section (a) for any taxable year (determined 

11 after application of paragraph (1) and without 

12 regard to paragraph (2)(B)) shall be treated as 

13 a credit allowable under subpart C for such tax14 able year (and not allowed under subsection 

15 (a)), and paragraph (2) shall not apply to such 

16 credit. 

17 ‘‘(B) QUALIFIED DEPLOYMENT COMMU18 NITY TAXPAYER.—For purposes of subpara19 graph (A), the term ‘qualified deployment com20 munity taxpayer’ means a taxpayer— 

21 ‘‘(i) who purchases a new qualified 

22 plug-in electric drive motor vehicle to 

23 which paragraph (1) does not apply, and 

24 ‘‘(ii) who resides within, and registers 

25 such vehicle in, a deployment community 


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1 selected by the Secretary under the Tar2 geted Electric Vehicles Deployment Com3 munities Program established by the ‘Oil 

4 Independence for a Stronger America Act 

5 of 2010’. 

6 For purposes of the preceding sentence, such a 

7 deployment community shall only be treated as 

8 a deployment community after the date on 

9 which such community is so selected (without 

10 regard to the date on which any funds under 

11 such Act are provided with respect to such com12 munity) and before the date on which Phase 1 

13 of such program terminates. 

14 ‘‘(C) REFUNDABLE CREDIT MAY BE

15 TRANSFERRED.— 

16 ‘‘(i) IN GENERAL.—A qualified de17 ployment community taxpayer may, in con18 nection with the purchase of a new quali19 fied plug-in electric drive motor vehicle, 

20 transfer any refundable credit described in 

21 subparagraph (A)— 

22 ‘‘(I) to any person who is in the 

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1 cles and who sold such vehicle to the 

2 taxpayer, or 

3 ‘‘(II) to any person who is in the 

4 trade or business of financing the 

5 sales of new qualified plug-in electric 

6 drive motor vehicles and who financed 

7 the taxpayer’s purchase of such vehi8 cle. 

9 ‘‘(ii) DISCLOSURE.—A qualified de10 ployment community taxpayer may trans11 fer a refundable credit described in sub12 paragraph (A) to a person described in 

13 clause (i)(I) only if such person clearly dis14 closes to such taxpayer, through the use of 

15 a window sticker attached to the new 

16 qualified plug-in electric drive motor vehi17 cle— 

18 ‘‘(I) the amount of the refund19 able credit described in subparagraph 

20 (A) with respect to such vehicle, and 

21 ‘‘(II) a notification that the tax22 payer will not be eligible for any cred23 it under any other section of this title 

24 with respect to such vehicle unless the 

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1 tion apply with respect to such vehi2 cle. 

3 ‘‘(iii) CERTIFICATION.—A transferee 

4 of a refundable credit described in sub5 paragraph (A) may not claim such credit 

6 unless such claim is accompanied by a cer7 tification to the Secretary that the trans8 feree reduced the price the taxpayer paid 

9 or the balance due to the financier, which10 ever is applicable, for the new qualified 

11 plug-in electric drive motor vehicle by the 

12 entire amount of such refundable credit. 

13 ‘‘(iv) CONSENT REQUIRED FOR REV14 OCATION.—Any transfer under clause (i) 

15 may be revoked only with the consent of 

16 the Secretary. 

17 ‘‘(v) SPECIAL RULE FOR BULK PUR18 CHASERS.—A qualified deployment com19 munity taxpayer who purchases 10 or more 

20 new qualified plug-in electric drive motor 

21 vehicles during the taxable year may trans22 fer a refundable credit described in sub23 paragraph (A) to any person. 


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1 ‘‘(vi) REGULATIONS.—The Secretary 

2 may prescribe such regulations as nec3 essary— 

4 ‘‘(I) to ensure that any refund5 able credit described in clause (i) is 

6 claimed once and not retransferred by 

7 a transferee, and 

8 ‘‘(II) to provide a mechanism by 

9 which the transferee may claim and 

10 receive the credit within 3 months of 

11 the sale of the new qualified plug-in 

12 electric drive motor vehicle.’’. 

13 (B) DISPLAY OF CREDIT INFORMATION.— 

14 Section 32908(b)(1) of title 49, United States 

15 Code, is amended— 

16 (i) by redesignating subparagraphs 

17 (E) and (F) as subparagraphs (F) and 

18 (G), and 

19 (ii) by inserting after subparagraph 

20 (D) the following new subparagraph: 

21 ‘‘(E) the amount of the new qualified plug22 in electric drive motor vehicle credit allowable 

23 with respect to the sale of the automobile under 

24 section 30D of the Internal Revenue Code of 

25 1986 (26 U.S.C. 30D).’’. 


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1 (2) INCREASED CREDIT FOR TAXPAYERS IN DE2 PLOYMENT COMMUNITIES.—Subsection (f) of section 

3 30D of such Code is amended by adding at the end 

4 the following new paragraph: 

5 ‘‘(8) INCREASED CREDIT FOR TAXPAYERS IN

6 DEPLOYMENT COMMUNITIES.—In the case of a 

7 qualified deployment community taxpayer (within 

8 the meaning of subsection (c)(3)(B)), subsection 

9 (b)(2) shall be applied by substituting ‘$5,000’ for 

10 ‘$2,500’.’’. 

11 (3) INCREASED PER MANUFACTURER CAP.— 

12 Paragraph (2) of section 30(D)(e) of such Code is 

13 amended by striking ‘‘200,000’’ and inserting 

14 ‘‘300,000’’. 

15 (4) EXTENSION AND MODIFICATION OF NEW

16 QUALIFIED HYBRID MOTOR VEHICLE CREDIT.— 

17 (A) EXTENSION.—Paragraph (3) of sec18 tion 30B(k) of such Code is amended by strik19 ing ‘‘December 31, 2009’’ and inserting ‘‘De20 cember 31, 2016’’. 

21 (B) QUALIFIED INCREMENTAL HYBRID

22 COST.—Clause (iii) of section 30B(d)(2)(B) of 

23 such Code is amended by striking ‘‘does not ex24 ceed—’’ and all that follows and inserting ‘‘does 

25 not exceed— 


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1 ‘‘(I) $15,000, if such vehicle has 

2 a gross vehicle weight rating of not 

3 more than 14,000 pounds, 

4 ‘‘(II) $30,000, if such vehicle has 

5 a gross vehicle weight rating of more 

6 than 14,000 pounds but not more 

7 than 26,000 pounds, 

8 ‘‘(III) $60,000, if such vehicle 

9 has a gross vehicle weight rating of 

10 more than 26,000 pounds but not 

11 more than 33,000 pounds, and 

12 ‘‘(IV) $100,000, if such vehicle 

13 has a gross vehicle weight rating of 

14 more than 33,000 pounds.’’. 

15 (C) APPLICABLE PERCENTAGE FOR HEAVY

16 TRUCKS ACHIEVING 20 PERCENT INCREASE IN

17 CITY FUEL ECONOMY.—Clause (ii) of section 

18 30B(d)(2)(B) of such Code is amended by re19 designating subclauses (I), (II), and (III) as 

20 subclauses (II), (III), and (IV), respectively, 

21 and by inserting before subclause (II) (as so re22 designated) the following new subclause: 

23 ‘‘(I) 10 percent in the case of a 

24 vehicle to which clause (iii)(IV) ap25 plies if such vehicle achieves an inVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 crease in city fuel economy relative to 

2 a comparable vehicle of at least 20 

3 percent but less than 30 percent.’’. 

4 (D) DOLLAR LIMITATION.—Subparagraph 

5 (B) of section 30B(d)(2) of such Code is 

6 amended by adding at the end the following 

7 new clause: 

8 ‘‘(vi) LIMITATION.—The amount al9 lowed as a credit under subsection (a)(3) 

10 with respect to a vehicle by reason of 

11 clause (i) of this subparagraph shall not 

12 exceed $24,000.’’. 

13 (E) HEAVY ELECTRIC VEHICLES.—Para14 graph (3) of section 30B(d) of such Code is 

15 amended by redesignating subparagraphs (B), 

16 (C), and (D) as subparagraphs (C), (D), and 

17 (E), respectively, and by inserting after sub18 paragraph (A) the following new subparagraph: 

19 ‘‘(B) HEAVY ELECTRIC VEHICLES.—In the 

20 case of a vehicle with a gross vehicle weight rat21 ing of not less than 8,500 pounds, the term 

22 ‘new qualified hybrid motor vehicle’ includes a 

23 motor vehicle— 


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1 ‘‘(i) which draws propulsion energy 

2 exclusively from a rechargeable energy 

3 storage system, and 

4 ‘‘(ii) which meets the requirements of 

5 clauses (iii), (v), (vi), and (vii) of subpara6 graph (A).’’. 

7 (F) CREDITS MAY BE TRANSFERRED.— 

8 Subsection (d) of section 30B of such Code is 

9 amended by adding at the end the following 

10 new paragraph: 

11 ‘‘(4) TRANSFERABILITY OF CREDIT.— 

12 ‘‘(A) IN GENERAL.—A taxpayer who places 

13 in service any vehicle may transfer the credit al14 lowed under this subsection with respect to 

15 such vehicle through an assignment to the seller 

16 of such vehicle. Such transfer may be revoked 

17 only with the consent of the Secretary. 

18 ‘‘(B) REGULATIONS.—The Secretary shall 

19 prescribe such regulations as necessary to en20 sure that any credit transferred under subpara21 graph (A) is claimed once and not reassigned 

22 by such other person.’’. 

23 (b) CREDIT FOR ALTERNATIVE FUEL VEHICLE RE24 FUELING PROPERTY.— 


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1 (1) EXTENSION OF INCREASED CREDIT FOR

2 ELECTRICITY.— 

3 (A) IN GENERAL.—Paragraph (6) of sec4 tion 30C(e) of the Internal Revenue Code of 

5 1986 is amended— 

6 (i) by striking ‘‘DURING 2009 AND

7 2010’’ in the heading and inserting ‘‘DUR8 ING CERTAIN TAXABLE YEARS’’, 

9 (ii) by striking ‘‘and before January 

10 1, 2011’’, 

11 (iii) by inserting ‘‘, which is placed in 

12 service before January 1, 2011 (before 

13 January 1, 2017, in the case of property 

14 which relates to electricity)’’ after ‘‘hydro15 gen’’ in subparagraph (A), and 

16 (iv) by inserting ‘‘, which is placed in 

17 service before January 1, 2011’’ after ‘‘hy18 drogen’’ in subparagraph (B). 

19 (B) EXTENSION OF CREDIT.—Subsection 

20 (g) of section 30C of such Code is amended— 

21 (i) by striking ‘‘and’’ at the end of 

22 paragraph (1), 

23 (ii) by redesignating paragraph (2) as 

24 paragraph (3), and 


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1 (iii) by inserting after paragraph (1) 

2 the following new paragraph: 

3 ‘‘(2) in the case of property relating to elec4 tricity, after December 31, 2016, and’’. 

5 (2) MODIFICATION OF COST PROVISIONS.—Sub6 section (e) of section 30C of such Code is amended 

7 by adding at the end the following new paragraph: 

8 ‘‘(7) INSTALLATION OF ELECTRICITY PROP9 ERTY.—In the case of any qualified alternative fuel 

10 vehicle refueling property which relates to electricity, 

11 for purposes of subsection (a), the cost of such prop12 erty shall include the cost of the original installation 

13 of such property.’’. 

14 (3) TRANSFERABILITY OF CREDIT.—Section 

15 30C(e) of such Code, as amended by paragraph (2), 

16 is amended by adding at the end the following new 

17 paragraph: 

18 ‘‘(8) TRANSFERABILITY OF CREDIT.— 

19 ‘‘(A) IN GENERAL.—A person who places 

20 any qualified alternative fuel vehicle refueling 

21 property in service may transfer the credit 

22 under this section through an assignment to 

23 any other person. Such transfer may be revoked 

24 only with the consent of the Secretary. 


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1 ‘‘(B) CERTIFICATION.—A transferee of a 

2 credit described in subparagraph (A) may not 

3 claim such credit unless such claim is accom4 panied by a certification to the Secretary that 

5 the transferee reduced the price the transferor 

6 paid for the qualified alternative fuel vehicle re7 fueling property by the entire amount of such 

8 credit. 

9 ‘‘(C) REGULATIONS.—The Secretary shall 

10 prescribe such regulations as necessary to en11 sure that the credit transferred under subpara12 graph (A) is claimed once and not reassigned 

13 by such other person.’’. 

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

15 this section shall apply to property placed in service after 

16 the date of the enactment of this Act. 

17 SEC. 306. QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VE18 HICLE REFUELING PROPERTY BONDS. 

19 (a) IN GENERAL.—Paragraph (1) of section 54A(d) 

20 of the Internal Revenue Code of 1986 is amended— 

21 (1) by striking ‘‘or’’ at the end of subparagraph 

22 (D), 

23 (2) by inserting ‘‘or’’ at the end of subpara24 graph (E), and 


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1 (3) by inserting after subparagraph (E) the fol2 lowing new subparagraph: 

3 ‘‘(F) a qualified plug-in electric drive 

4 motor vehicle refueling property bond,’’. 

5 (b) QUALIFIED PURPOSE.—Subparagraph (C) of sec6 tion 54A(d)(2) of the Internal Revenue Code of 1986 is 

7 amended— 

8 (1) by striking ‘‘and’’ at the end of clause (iv), 

9 (2) by striking the period at the end of clause 

10 (v) and inserting ‘‘, and’’, and 

11 (3) by adding at the end the following new 

12 clause: 

13 ‘‘(vi) in the case of a qualified plug14 in electric drive motor vehicle refueling 

15 property bond, a purpose specified in sec16 tion 54G(a)(1).’’. 

17 (c) BONDS ALLOWED.—Subpart I of part IV of sub18 chapter A of chapter 1 of the Internal Revenue Code of 

19 1986 is amended by adding at the end the following new 

20 section: 

21 ‘‘SEC. 54G. QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 

22 VEHICLE REFUELING PROPERTY BONDS. 

23 ‘‘(a) QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR

24 VEHICLE REFUELING PROPERTY BOND.—For purposes 

25 of this subpart, the term ‘qualified plug-in electric drive 


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1 motor vehicle refueling property bond’ means any bond 

2 issued as part of an issue if— 

3 ‘‘(1) 100 percent of the available project pro4 ceeds of such issue are to be used for capital expend5 itures incurred by a qualified issuer for 1 or more 

6 qualified plug-in electric drive motor vehicle refuel7 ing properties, 

8 ‘‘(2) the bond is issued by a qualified issuer, 

9 and 

10 ‘‘(3) the issuer designates such bond for pur11 poses of this section. 

12 ‘‘(b) REDUCED CREDIT AMOUNT.—Notwithstanding 

13 paragraph (2) of section 54A(b), the annual credit deter14 mined with respect to any qualified plug-in electric drive 

15 motor vehicle refueling property bond is 70 percent of the 

16 amount which would (but for this subsection) otherwise 

17 be determined under such paragraph with respect to such 

18 bond. 

19 ‘‘(c) LIMITATION ON AMOUNT OF BONDS DES20 IGNATED.—The maximum aggregate face amount of 

21 bonds which may be designated under subsection (a) by 

22 any issuer shall not exceed the limitation amount allocated 

23 to such issuer under subsection (e). 

24 ‘‘(d) NATIONAL LIMITATION ON AMOUNT OF BONDS

25 DESIGNATED.—There is a national qualified plug-in elecVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 tric drive motor vehicle refueling property bond limitation 

2 of $1,000,000,000. 

3 ‘‘(e) ALLOCATIONS.—The Secretary shall make allo4 cations of the amount of the national qualified plug-in 

5 electric drive motor vehicle refueling property bond limita6 tion described in subsection (d) among purposes described 

7 in subsection (a)(1) in such manner as the Secretary de8 termines appropriate. 

9 ‘‘(f) DEFINITIONS.—For purposes of this section— 

10 ‘‘(1) QUALIFIED PLUG-IN ELECTRIC DRIVE

11 MOTOR VEHICLE REFUELING PROPERTY.—The term 

12 ‘qualified plug-in electric drive motor vehicle refuel13 ing property’ means any qualified alternative fuel ve14 hicle refueling property (within the meaning of sec15 tion 30C) which relates to electricity. 

16 ‘‘(2) QUALIFIED ISSUER.— 

17 ‘‘(A) IN GENERAL.—The term ‘qualified 

18 issuer’ means a public power provider, a cooper19 ative electric company, or a governmental body. 

20 ‘‘(B) DENIAL OF DOUBLE BENEFIT.—With 

21 respect to any issue, the term ‘qualified issuer’ 

22 shall not include any entity to which a credit 

23 under section 30C is allowed for the taxable 

24 year in which such issue is issued. 


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1 ‘‘(C) GOVERNMENTAL BODY.—The term 

2 ‘governmental body’ means any State or Indian 

3 tribal government, or any political subdivision 

4 thereof. 

5 ‘‘(D) PUBLIC POWER PROVIDER.—The 

6 term ‘public power provider’ means a State util7 ity that has a service obligation to end-users or 

8 to a distribution utility (within the meaning of 

9 section 217 of the Federal Power Act, as in ef10 fect on the date of the enactment of this sec11 tion). 

12 ‘‘(E) COOPERATIVE ELECTRIC COMPANY.— 

13 The term ‘cooperative electric company’ means 

14 a mutual or cooperative electric company de15 scribed in section 501(c)(12) or an organization 

16 described in section 1381(a)(2)(C).’’. 

17 (d) CLERICAL AMENDMENT.—The table of sections 

18 for subpart I of part IV of subchapter A of chapter 1 of 

19 the Internal Revenue Code of 1986 is amended by adding 

20 at the end the following new item: 

‘‘Sec. 54G. Qualified plug-in electric drive motor vehicle refueling property 

bonds.’’. 

21 (e) EFFECTIVE DATE.—The amendments made by 

22 subsections (a), (b), (c), and (d) shall apply to obligations 

23 issued after the date of the enactment of this Act. 

24 (f) LOAN GUARANTEES.— 


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1 (1) IN GENERAL.—Section 1705 of the Energy 

2 Policy Act of 2005 (42 U.S.C. 16516) is amended— 

3 (A) in subsection (a), by adding at the end 

4 the following: 

5 ‘‘(4) Charging infrastructure and networks of 

6 charging infrastructure for plug-in drive electric ve7 hicles, if such charging infrastructure will be oper8 ational prior to December 31, 2016.’’; and 

9 (B) by striking subsection (e) and insert10 ing the following: 

11 ‘‘(e) SUNSET.—The authority to enter into guaran12 tees under this section shall expire on September 30, 

13 2011, except that for projects described in subsection 

14 (a)(4), the authority to enter into guarantees shall expire 

15 on December 31, 2016.’’. 

16 SEC. 307. UTILITY PLANNING FOR PLUG-IN ELECTRIC 

17 DRIVE VEHICLES. 

18 The Public Utility Regulatory Policies Act of 1978 

19 (16 U.S.C. 2601 et seq.) is amended— 

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

21 adding at the end the following: 

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

23 PLANNING.— 

24 ‘‘(A) UTILITY PLAN FOR PLUG-IN ELEC25 TRIC DRIVE VEHICLES.— 


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1 ‘‘(i) IN GENERAL.—Not later than 2 

2 years after the date of enactment of this 

3 paragraph, each electric utility shall de4 velop a plan to support the use of plug-in 

5 electric drive vehicles, including medium 

6 and heavy-duty hybrid electric vehicles in 

7 the service area of the electric utility. 

8 ‘‘(ii) REQUIREMENTS.—A plan under 

9 clause (i) shall investigate— 

10 ‘‘(I) various levels of potential 

11 penetration of plug-in electric drive 

12 vehicles in the utility service area; 

13 ‘‘(II) the potential impacts that 

14 the various levels would have on dis15 tribution infrastructure and on the 

16 operation of the transmission grid; 

17 and 

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

19 providing reliable and economical 

20 charging services. 

21 ‘‘(iii) WAIVER.—An electric utility 

22 that determines that the electric utility will 

23 have no meaningful penetration of plug-in 

24 electric drive vehicles during the 5-year pe25 riod beginning on the date of enactment of 


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1 this paragraph may petition the Secretary 

2 to waive clause (i) for 5 years. 

3 ‘‘(iv) UPDATES.— 

4 ‘‘(I) IN GENERAL.—Each electric 

5 utility shall update the plan of the 

6 electric utility every 5 years. 

7 ‘‘(II) RESUBMISSION OF WAIV8 ER.—An electric utility that received a 

9 waiver under clause (iii) and wants 

10 the waiver to continue after the expi11 ration of the waiver shall be required 

12 to resubmit the waiver. 

13 ‘‘(v) EXEMPTION.—If the Secretary 

14 determines that a plan required by a State 

15 regulatory authority meets the require16 ments of this paragraph, the Secretary 

17 may accept that plan and exempt the elec18 tric utility submitting the plan from the re19 quirements of clause (i). 

20 ‘‘(B) SUPPORT REQUIREMENTS.—Each 

21 State regulatory authority (in the case of each 

22 electric utility for which the authority has rate23 making authority) and each municipal and co24 operative utility shall— 


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

2 the deployment of recharging infrastruc3 ture in communities located in the foot4 print of the authority or utility; 

5 ‘‘(ii) require that charging infrastruc6 ture deployed is interoperable with prod7 ucts of all auto manufacturers to the max8 imum extent practicable; and 

9 ‘‘(iii) consider adopting minimum re10 quirements for deployment of electrical 

11 charging infrastructure and other appro12 priate requirements necessary to support 

13 the use of plug-in electric drive vehicles. 

14 ‘‘(C) COST RECOVERY.—Each State regu15 latory authority (in the case of each electric 

16 utility for which the authority has ratemaking 

17 authority) and each municipal and cooperative 

18 utility may consider whether, and to what ex19 tent, to allow cost recovery for plans and imple20 mentation of plans. 

21 ‘‘(D) SMART GRID INTEGRATION.—The 

22 State regulatory authority (in the case of each 

23 electric utility for which the authority has rate24 making authority) and each municipal and co25 operative utility, in accordance with regulations 


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1 issued by the Federal Energy Regulatory Com2 mission under section 1305(d) of the Energy 

3 Independence and Security Act of 2007 (42 

4 U.S.C. 17385), shall— 

5 ‘‘(i) establish any appropriate proto6 cols and standards for integrating plug-in 

7 electric drive vehicles into an electrical dis8 tribution system, including Smart Grid 

9 systems and devices as described in title 

10 XIII of the Energy Independence and Se11 curity Act of 2007 (42 U.S.C. 17381 et 

12 seq.); 

13 ‘‘(ii) develop, to the maximum extent 

14 practicable, the means and methods for ap15 propriate billing settlements between utili16 ties, consumers, and third parties in and 

17 across utility territories; 

18 ‘‘(iii) identify the smart grid infra19 structure and information technology that 

20 would likely need to be installed to most 

21 efficiently manage plug-in electric vehicles; 

22 and 

23 ‘‘(iv) in consideration of this section, 

24 review the determination made under sub25 section (a), including whether time-of-use 


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1 pricing should be employed to enable the 

2 use of plug-in electric drive vehicles to con3 tribute to meeting peak-load and ancillary 

4 service power needs. 

5 ‘‘(E) DETERMINATION.—Not later than 3 

6 years after the date of enactment of this para7 graph, each State regulatory authority (with re8 spect to each electric utility for which the au9 thority has ratemaking authority), and each 

10 municipal and cooperative electric utility, shall 

11 complete the consideration, and shall make the 

12 determination, referred to in subsection (a) with 

13 respect to the standard established by this 

14 paragraph.’’ 

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

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

17 State’’ and inserting the following: 

18 ‘‘(1) IN GENERAL.—Each State’’; 

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

20 the case’’ and inserting the following: 

21 ‘‘(2) SPECIFIC STANDARDS.— 

22 ‘‘(A) NET METERING AND FOSSIL FUEL

23 GENERATION EFFICIENCY.—In the case’’; 

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

25 the case’’ and inserting the following: 


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

3 (D) in the fourth sentence— 

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

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

7 and 

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

9 inserting ‘‘paragraph (15) of section 

10 111(d)’’; 

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

12 the case’’ and inserting the following: 

13 ‘‘(D) INTEGRATED RESOURCE PLANNING, 

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

16 the case’’; and 

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

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

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

21 reference contained in this subsection to the 

22 date of enactment of this Act shall be deemed 

23 to be a reference to the date of enactment of 

24 that paragraph.’’; and 


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

2 the matter preceding paragraph (1), by striking 

3 ‘‘(19)’’ and inserting ‘‘(20)’’. 

4 SEC. 308. FEDERAL FLEETS. 

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

6 agencies to fuel plug-in electric drive vehicles— 

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

8 301 of the Energy Policy Act of 1992 (42 U.S.C. 

9 13218)); and 

10 (2) shall be accounted for under Federal fleet 

11 management reporting requirements, not under Fed12 eral building management reporting requirements. 

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

14 days after the date of enactment of this Act and at the 

15 completion of the Program, the Federal Energy Manage16 ment Program and the General Services Administration, 

17 in consultation with the Task Force, shall complete an as18 sessment of Federal Government fleets, including the 

19 Postal Service and the Department of Defense, and sub20 mit a report to Congress that describes— 

21 (1) for each Federal agency, which types of ve22 hicles the agency uses that would or would not be 

23 suitable for near-term and medium-term conversion 

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

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


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1 vehicles could provide comparable functionality and 

2 lifecycle costs; 

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

4 could be deployed by the Federal Government in 5 

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

6 drive vehicles are available and are purchased when 

7 new vehicles are needed or existing vehicles are re8 placed; and 

9 (3) the estimated cost to the Federal Govern10 ment for vehicle purchases under paragraph (2) for 

11 each fiscal year. 

12 (c) INVENTORY AND DATA COLLECTION.— 

13 (1) IN GENERAL.—In carrying out the assess14 ment and report under subsection (b), the Federal 

15 Energy Management Program, in consultation with 

16 the General Services Administration, shall— 

17 (A) develop an information request for 

18 each agency that operates a fleet of at least 20 

19 motor vehicles; and 

20 (B) establish guidelines for each agency to 

21 use in developing a plan to deploy plug-in elec22 tric drive vehicles. 

23 (2) AGENCY RESPONSES.—Each agency that 

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


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1 (A) collect information on the vehicle fleet 

2 of the agency in response to the information re3 quest described in paragraph (1); and 

4 (B) develop a plan to deploy plug-in elec5 tric drive vehicles. 

6 (3) ANALYSIS OF RESPONSES.—The Federal 

7 Energy Management Program shall— 

8 (A) analyze the information submitted by 

9 each agency under paragraph (2); 

10 (B) approve or suggest amendments to the 

11 plan of each agency to ensure that the plan is 

12 consistent with the goals and requirements of 

13 this title; and 

14 (C) submit a plan to Congress and the 

15 General Services Administration to be used in 

16 developing the pilot program described in sub17 section (e). 

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

19 Government shall include plug-in electric drive vehicle pur20 chases identified in the report under subsection (b) in the 

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

22 United States Government submitted by the President 

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

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

25 DRIVE VEHICLES IN THE FEDERAL FLEET.— 


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1 (1) IN GENERAL.—The Administrator of Gen2 eral Services shall acquire plug-in electric drive vehi3 cles and the requisite charging infrastructure to be 

4 deployed in a range of locations in the Federal fleet 

5 during the 5-year period beginning on the date of 

6 enactment of this Act. 

7 (2) DATA COLLECTION.—The Administrator of 

8 General Services shall collect data regarding— 

9 (A) the cost, performance, and use of plug10 in electric drive vehicles in the Federal fleet; 

11 (B) the deployment and integration of 

12 plug-in electric drive vehicles in the Federal 

13 fleet; and 

14 (C) the contribution of plug-in electric 

15 drive vehicles in the Federal fleet toward reduc16 ing the use of fossil fuels and greenhouse gas 

17 emissions. 

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

19 date of enactment of this Act, the Administrator of 

20 General Services shall submit to the appropriate 

21 committees of Congress a report that— 

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

23 drive vehicles in the Federal fleet; and 

24 (B) includes an analysis of the data col25 lected under this subsection. 


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1 (4) PUBLIC WEBSITE.—The Federal Energy 

2 Management Program shall maintain and regularly 

3 update a publicly available website that provides in4 formation on the status of plug-in electric vehicles in 

5 the Federal fleet. 

6 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated for the Federal Government 

8 to pay for incremental costs to purchase or lease plug9 in electric drive vehicles and the requisite charging infra10 structure for Federal fleets $25,000,000. 

11 SEC. 309. ADVANCED BATTERIES FOR TOMORROW PRIZE. 

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

13 date of enactment of this Act, as part of the program de14 scribed in section 1008 of the Energy Policy Act of 2005 

15 (42 U.S.C. 16396), the Secretary shall establish the Ad16 vanced Batteries for Tomorrow Prize to competitively 

17 award cash prizes in accordance with this section to ad18 vance the research, development, demonstration, and com19 mercial application of a 500-mile vehicle battery. 

20 (b) BATTERY SPECIFICATIONS.— 

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

22 a battery submitted by an entrant shall be— 

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

24 vehicle authorized to travel on the United 


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1 States Federal-aid system of highways for at 

2 least 500 miles before recharging; 

3 (B) of a size that would not be cost-prohib4 itive or create space constraints, if mass-pro5 duced; and 

6 (C) cost-effective (measured in cost per kil7 owatt hour), if mass-produced. 

8 (2) ADDITIONAL REQUIREMENTS.—The Sec9 retary, in consultation with the Committee, shall es10 tablish any additional battery specifications that the 

11 Secretary and the Committee determine to be nec12 essary. 

13 (c) PRIVATE FUNDS.— 

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

15 and notwithstanding section 3302 of title 31, United 

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

17 use funds contributed by any person, government 

18 entity, or organization for purposes of carrying out 

19 this subsection— 

20 (A) without further appropriation; and 

21 (B) without fiscal year limitation. 

22 (2) RESTRICTION ON PARTICIPATION.—An enti23 ty providing private funds for the Prize may not 

24 participate in the competition for the Prize. 


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1 (d) TECHNICAL REVIEW.—The Secretary, in con2 sultation with the Committee, shall establish a technical 

3 review committee composed of non-Federal officers to re4 view data submitted by Prize entrants under this section 

5 and determine whether the data meets the prize specifica6 tions described in subsection (b). 

7 (e) THIRD PARTY ADMINISTRATION.—The Secretary 

8 may select, on a competitive basis, a third party to admin9 ister awards provided under this section. 

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

11 this section— 

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

13 shall be incorporated in and maintain a primary 

14 place of business in the United States; and 

15 (2) in the case of an individual (whether par16 ticipating as a single individual or in a group), the 

17 individual shall be a citizen or lawful permanent 

18 resident of the United States. 

19 (g) AWARD AMOUNTS.— 

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

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

22 Prize shall be $10,000,000. 

23 (2) BREAKTHROUGH ACHIEVEMENT AWARDS.— 

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

25 the Secretary, in consultation with the technical reVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 view committee established under subsection (d), 

2 may award cash prizes in recognition of break3 through achievements in research, development, 

4 demonstration, and commercial application of activi5 ties described in subsection (b). 

6 (h) 500-MILE BATTERY AWARD FUND.— 

7 (1) ESTABLISHMENT.—There is established in 

8 the Treasury of the United States a fund to be 

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

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

11 by the Secretary, to be available without fiscal year 

12 limitation and subject to appropriation, to award 

13 amounts under this section. 

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

15 consist of— 

16 (A) such amounts as are appropriated to 

17 the Fund under subsection (i); and 

18 (B) such amounts as are described in sub19 section (c) and that are provided for the Fund. 

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

21 not be made available for any purpose other than a 

22 purposes described in subsection (a). 

23 (4) ANNUAL REPORTS.— 

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

25 after the end of each fiscal year beginning with 


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1 fiscal year 2012, the Secretary shall submit a 

2 report on the operation of the Fund during the 

3 fiscal year to— 

4 (i) the Committees on Appropriations 

5 of the House of Representatives and of the 

6 Senate; 

7 (ii) the Committee on Energy and 

8 Natural Resources of the Senate; and 

9 (iii) the Committee on Energy and 

10 Commerce of the House of Representa11 tives. 

12 (B) CONTENTS.—Each report shall in13 clude, for the fiscal year covered by the report, 

14 the following: 

15 (i) A statement of the amounts depos16 ited into the Fund. 

17 (ii) A description of the expenditures 

18 made from the Fund for the fiscal year, in19 cluding the purpose of the expenditures. 

20 (iii) Recommendations for additional 

21 authorities to fulfill the purpose of the 

22 Fund. 

23 (iv) A statement of the balance re24 maining in the Fund at the end of the fis25 cal year. 


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1 (5) SEPARATE APPROPRIATIONS ACCOUNT.— 

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

3 amended— 

4 (A) by redesignating paragraphs (35) and 

5 (36) as paragraphs (36) and (37), respectively; 

6 (B) by redesignating the second paragraph 

7 (33) (relating to obligational authority and out8 lays requested for homeland security) as para9 graph (35); and 

10 (C) by adding at the end the following: 

11 ‘‘(LL) a separate statement for the 500- 

12 mile Battery Fund established under section 

13 8(h) of the ‘Oil Independence for a Stronger 

14 America Act of 2010’, which shall include the 

15 estimated amount of deposits into the Fund, 

16 obligations, and outlays from the Fund.’’. 

17 (i) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out this section 

19 $10,000,000. 

20 SEC. 310. RESEARCH AND DEVELOPMENT PROGRAM. 

21 (a) RESEARCH AND DEVELOPMENT PROGRAM.— 

22 (1) IN GENERAL.—The Secretary, in consulta23 tion with the Committee, shall establish a program 

24 to fund research and development in advanced bat25 teries, electric drive vehicle components, electric 


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1 drive infrastructure, and other technologies sup2 porting the development, manufacture, and deploy3 ment of electric drive vehicles and charging infra4 structure. 

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

6 funding for— 

7 (A) the development of low-cost, smart8 charging and vehicle-to-grid connectivity tech9 nology; 

10 (B) the benchmarking and assessment of 

11 open software systems using nationally estab12 lished evaluation criteria; and 

13 (C) new technologies in electricity storage 

14 for vehicles. 

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

16 date of enactment of this Act, the Secretary shall 

17 submit to Congress a report describing the status of 

18 the program described in paragraph (1). 

19 (b) SECONDARY USE APPLICATIONS PROGRAM.— 

20 (1) IN GENERAL.—The Secretary, in consulta21 tion with the Committee, shall carry out a research, 

22 development, and demonstration program that builds 

23 upon any work carried out under section 915 of the 

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


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1 (A) identifies possible uses of a vehicle bat2 tery after the useful life of the battery in a ve3 hicle has been exhausted; 

4 (B) assesses the potential for markets for 

5 uses described in subparagraph (A) to develop, 

6 as well as any barriers to the development of 

7 the markets; and 

8 (C) identifies the potential uses of a vehicle 

9 battery— 

10 (i) with the most promise for market 

11 development; and 

12 (ii) for which market development 

13 would be aided by a demonstration project. 

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

15 date of enactment of this Act, the Secretary shall 

16 submit to the appropriate committees of Congress 

17 an initial report on the findings of the program de18 scribed in paragraph (1), including recommendations 

19 for stationary energy storage and other potential ap20 plications for batteries used in plug-in electric drive 

21 vehicles. 

22 (c) DEMONSTRATION PROJECTS.— 

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

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

25 in consultation with the Committee, shall develop 


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

3 (2) PUBLICATION OF GUIDELINES.—Not later 

4 than 30 months after the date of enactment of this 

5 Act, the Secretary shall— 

6 (A) publish the guidelines described in 

7 paragraph (1); and 

8 (B) solicit applications for funding for 

9 demonstration projects. 

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

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

12 Secretary shall select proposals for grant funding 

13 under this section, based on an assessment of which 

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

16 (d) MATERIALS RECYCLING STUDY.— 

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

19 the recycling of materials from plug-in electric drive 

20 vehicles and the batteries used in plug-in electric 

21 drive vehicles. 

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

23 date of enactment of this Act, the Secretary shall 

24 submit to the appropriate committees of Congress a 


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1 report on the findings of the study described in 

2 paragraph (1). 

3 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $1,530,000,000, including— 

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

7 program described in subsection (a) for fiscal years 

8 2011 through 2020; 

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

11 2011 through 2016; and 

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

14 through 2020. 

15 SEC. 311. STUDY ON THE SUPPLY OF RAW MATERIALS. 

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

17 consultation with the Secretary and the Task Force, shall 

18 conduct a study that— 

19 (1) identifies the raw materials needed for the 

20 manufacture of plug-in electric drive vehicles, bat21 teries, and other components for plug-in electric 

22 drive vehicles, and for the infrastructure needed to 

23 support plug-in electric drive vehicles; 


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1 (2) describes the primary or original sources 

2 and known reserves and resources of those raw ma3 terials; 

4 (3) assesses, in consultation with the National 

5 Academy of Sciences, the degree of risk to the man6 ufacture, maintenance, deployment, and use of plug7 in electric drive vehicles associated with the supply 

8 of those raw materials; and 

9 (4) identifies pathways to securing reliable and 

10 resilient supplies of those raw materials. 

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

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

13 shall submit to Congress a report that describes the re14 sults of the study. 

15 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this subsection 

17 $1,500,000. 

18 SEC. 312. PLUG-IN ELECTRIC DRIVE VEHICLE TECHNICAL 

19 ADVISORY COMMITTEE. 

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

21 Electric Drive Vehicle Technical Advisory Committee to 

22 advise the Secretary on the programs and activities under 

23 this title. 


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

2 be to advise the Secretary on technical matters, includ3 ing— 

4 (1) the priorities for research and development; 

5 (2) means of accelerating the deployment of 

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

7 vehicles for mass market adoption; 

8 (3) the development and deployment of charg9 ing infrastructure; 

10 (4) the development of uniform codes, stand11 ards, and safety protocols for plug-in electric drive 

12 vehicles and charging infrastructure; and 

13 (5) reporting on the competitiveness of the 

14 United States in plug-in electric drive vehicle and in15 frastructure research, manufacturing, and deploy16 ment. 

17 (c) MEMBERSHIP.— 

18 (1) MEMBERS.— 

19 (A) IN GENERAL.—The Committee shall 

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

21 25, members. 

22 (B) REPRESENTATION.—The Secretary 

23 shall appoint the members to Committee from 

24 among representatives of— 

25 (i) domestic industry; 


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1 (ii) institutions of higher education; 

2 (iii) professional societies; 

3 (iv) Federal, State, and local govern4 mental agencies (including the National 

5 Laboratories); and 

6 (v) financial, transportation, labor, en7 vironmental, or other appropriate organiza8 tions, as the Secretary determines to be 

9 necessary. 

10 (2) TERMS.— 

11 (A) IN GENERAL.—The term of a Com12 mittee member shall not be longer than 3 years. 

13 (B) STAGGERED TERMS.—The Secretary 

14 may appoint members to the Committee for dif15 fering term lengths to ensure continuity in the 

16 functioning of the Committee. 

17 (C) REAPPOINTMENTS.—A member of the 

18 Committee whose term is expiring may be re19 appointed. 

20 (3) CHAIRPERSON.—The Committee shall have 

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

22 members. 

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

24 recommendations to the Secretary on the implementation 

25 of programs and activities under this title. 


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1 (e) RESPONSE.— 

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

3 and may adopt any recommendation of the Com4 mittee under subsection (c). 

5 (2) BIENNIAL REPORT.— 

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

7 after the date of enactment of this Act and 

8 every 2 years thereafter, the Secretary shall 

9 submit to the appropriate committees of Con10 gress a report describing any new recommenda11 tions of the Committee. 

12 (B) CONTENTS.—The report shall in13 clude— 

14 (i) a description of the manner in 

15 which the Secretary has implemented or 

16 plans to implement the recommendations 

17 of the Committee; or 

18 (ii) an explanation of the reason that 

19 a recommendation of the Committee has 

20 not been implemented. 

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

22 paragraph shall be submitted by the Secretary 

23 at the same time the President submits the 

24 budget proposal for the Department of Energy 

25 to Congress. 


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1 (f) COORDINATION.—The Committee shall hold joint 

2 annual meetings with the Hydrogen and Fuel Cell Tech3 nical Advisory Committee established by section 807 of the 

4 Energy Policy Act of 2005 (42 U.S.C. 16156) to help co5 ordinate the work and recommendations of the Commit6 tees. 

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

8 Committee the resources necessary to carry out this sec9 tion, as determined to be necessary by the Secretary. 

10 SEC. 313. PLUG-IN ELECTRIC DRIVE VEHICLE INTER11 AGENCY TASK FORCE. 

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

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

14 the Plug-in Electric Drive Vehicle Interagency Task 

15 Force, to be chaired by the Secretary and which shall con16 sist of at least 1 representative from each of— 

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

18 (2) the Council on Environmental Quality; 

19 (3) the Department of Energy; 

20 (4) the Department of Transportation; 

21 (5) the Department of Defense; 

22 (6) the Department of Commerce (including the 

23 National Institute of Standards and Technology); 

24 (7) the Environmental Protection Agency; 

25 (8) the General Services Administration; and 


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1 (9) any other Federal agencies that the Presi2 dent determines to be appropriate. 

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

4 be to ensure awareness, coordination, and integration of 

5 the activities of the Federal Government relating to elec6 tric drive vehicles, including— 

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

8 development (including necessary components); 

9 (2) the development of widely accepted smart10 grid standards and protocols for charging infrastruc11 ture; 

12 (3) the relationship of plug-in electric drive ve13 hicle charging practices to electric utility regulation; 

14 (4) the relationship of plug-in electric drive ve15 hicle deployment to system reliability and security; 

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

17 drive vehicles in the Federal, State, and local gov18 ernments and for private use; 

19 (6) the development of uniform codes, stand20 ards, and safety protocols for plug-in electric drive 

21 vehicles and charging infrastructure; and 

22 (7) the alignment of international plug-in elec23 tric drive vehicle standards. 

24 (c) ACTIVITIES.— 


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

2 the Task Force may— 

3 (A) organize workshops and conferences; 

4 (B) issue publications; and 

5 (C) create databases. 

6 (2) MANDATORY ACTIVITIES.—In carrying out 

7 this section, the Task Force shall— 

8 (A) foster the exchange of generic, non9 proprietary information and technology among 

10 industry, academia, and the Federal Govern11 ment; 

12 (B) integrate and disseminate technical 

13 and other information made available as a re14 sult of the programs and activities under this 

15 title; 

16 (C) support education about plug-in elec17 tric drive vehicles; 

18 (D) monitor, analyze, and report on the ef19 fects of plug-in electric drive vehicle deployment 

20 on the environment and public health, including 

21 air emissions from vehicles and electricity gen22 erating units; and 

23 (E) review and report on— 

24 (i) opportunities to use Federal pro25 grams (including laws, regulations, and 


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1 guidelines) to promote the deployment of 

2 plug-in electric drive vehicles; and 

3 (ii) any barriers to the deployment of 

4 plug-in electric drive vehicles, including 

5 barriers that are attributable to Federal 

6 programs (including laws, regulations, and 

7 guidelines). 

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

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

10 (2) provide, on request of the Task Force, ap11 propriate assistance in carrying out this section, in 

12 accordance with applicable Federal laws (including 

13 regulations). 

14 SEC. 314. PROHIBITION ON DISPOSING OF ADVANCED BAT15 TERIES IN LANDFILLS. 

16 An advanced battery from a plug-in electric drive ve17 hicle shall be disposed of in accordance with the Mercury18 Containing and Rechargeable Battery Management Act 

19 (42 U.S.C. 14301 et seq.). 

20 SEC. 315. LOAN GUARANTEES FOR ADVANCED BATTERY 

21 PURCHASES FOR USE IN STATIONARY APPLI22 CATIONS. 

23 Subtitle B of title I of the Energy Independence and 

24 Security Act of 2007 (42 U.S.C. 17011 et seq.) is amend25 ed by adding at the end the following: 


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

2 PURCHASES. 

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

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

5 term ‘qualified automotive battery’ means a battery 

6 that— 

7 ‘‘(A) has at least 4 kilowatt hours of bat8 tery capacity; and 

9 ‘‘(B) is designed for use in qualified plug10 in electric drive motor vehicles but is purchased 

11 for nonautomotive applications. 

12 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en13 tity’ means— 

14 ‘‘(A) an original equipment manufacturer; 

15 ‘‘(B) an electric utility; 

16 ‘‘(C) any provider of range extension infra17 structure; or 

18 ‘‘(D) any other qualified entity, as deter19 mined by the Secretary. 

20 ‘‘(b) LOAN GUARANTEES.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall guar22 antee loans made to eligible entities for the aggre23 gate purchase of not less than 200 qualified auto24 motive batteries in a calendar year that have a total 

25 minimum power rating of 1 megawatt and use ad26 vanced battery technology. 


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

2 a loan guarantee under this section, an entity pur3 chasing qualified automotive batteries with loan 

4 funds guaranteed under this section shall comply 

5 with the provisions of the Buy American Act (41 

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

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

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

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

10 is authorized to be appropriated to carry out this section 

11 $50,000,000.’’. 

12 SEC. 316. MODEL UPDATING BUILDING CODES, PERMIT13 TING AND INSPECTION PROCESSES, AND 

14 ZONING OR PARKING RULES. 

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

16 date of enactment of this Act, the Secretary shall develop 

17 and publish— 

18 (1) model building codes for the inclusion of 

19 separate circuits for charging infrastructure, as ap20 propriate, in new construction and major renova21 tions of private residences, buildings, or other struc22 tures that could provide publicly available charging 

23 infrastructure; 

24 (2) model construction permitting or inspection 

25 processes that allow for the expedited installation of 


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1 charging infrastructure for purchasers of electric 

2 drive vehicles (including a permitting process that 

3 allows a vehicle purchaser to have charging infra4 structure installed the same day a vehicle is pur5 chased); and 

6 (3) model zoning, parking rules, or other local 

7 ordinances that— 

8 (A) facilitate the installation of publicly 

9 available charging infrastructure; and 

10 (B) allow for access to publicly available 

11 charging infrastructure. 

12 (b) OPTIONAL ADOPTION.—An applicant for selec13 tion as a deployment community under section 303 shall 

14 not be required to use the model building codes, permit15 ting and inspection processes, or zoning, parking rules, or 

16 other ordinances described in the report published under 

17 subsection (a). 

18 (c) SMART GRID INTEGRATION.—In developing the 

19 model codes or ordinances described in subsection (a), the 

20 Secretary shall take into account smart grid integration. 

21 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

22 authorized to be appropriated to carry out this section 

23 $1,000,000. 

24 SEC. 317. WORKFORCE TRAINING. 

25 (a) MAINTENANCE AND SUPPORT.— 


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1 (1) IN GENERAL.—The Secretary, in consulta2 tion with the Committee and the Task Force, shall 

3 award grants to institutions of higher education and 

4 other qualified training and education institutions 

5 for the establishment of programs to provide train6 ing and education for vocational workforce develop7 ment through centers of excellence. 

8 (2) PURPOSE.—Training funded under this 

9 subsection shall be intended to ensure that the work10 force has the necessary skills needed to maintain 

11 plug-in electric drive vehicles and the infrastructure 

12 required to support plug-in electric drive vehicles. 

13 (3) SCOPE.—Training funded under this sub14 section shall include training for— 

15 (A) first responders; 

16 (B) electricians and contractors who will 

17 be installing infrastructure; 

18 (C) engineers; 

19 (D) code inspection officials; and 

20 (E) dealers and mechanics. 

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

22 institutions of higher education and other qualified train23 ing and education institutions for the establishment of 

24 programs to provide training and education in designing 

25 plug-in electric drive vehicles and associated components 


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1 and infrastructure to ensure that the United States can 

2 lead the world in this field. 

3 (c) REPORT.—Not later than 1 year after the date 

4 of enactment of this Act, the Secretary shall submit to 

5 Congress a report on the implementation of the training 

6 programs under this section. 

7 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated $250,000,000 to carry 

9 out this section. 

10 SEC. 318. CREDIT FOR GRID-INTERACTIVE PLUG-IN VEHI11 CLES. 

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

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

15 section: 

16 ‘‘SEC. 30E. QUALIFIED GRID-INTERACTIVE PLUG-IN VEHI17 CLES. 

18 ‘‘(a) IN GENERAL.—There shall be allowed as a cred19 it against the tax imposed by this chapter for the taxable 

20 year an amount equal to the lesser of— 

21 ‘‘(1) 50 percent of the cost of any qualified 

22 grid-interactive plug-in vehicle placed in service by 

23 the taxpayer during the taxable year, or 

24 ‘‘(2) $25,000. 


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1 ‘‘(b) LIMITATION ON NUMBER OF QUALIFIED GRID2 INTERACTIVE PLUG-IN VEHICLES.—No credit shall be al3 lowed with respect to any qualified grid-interactive plug4 in vehicle placed in service after the calendar quarter in 

5 which the number of qualified grid-interactive vehicles 

6 placed in service in the United States after the date of 

7 the enactment of this section is at least 6,000. 

8 ‘‘(c) APPLICATION WITH OTHER CREDITS.— 

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

10 GENERAL BUSINESS CREDIT.—So much of the credit 

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

12 taxable year (determined without regard to this sub13 section) that is attributable to property of a char14 acter subject to an allowance for depreciation shall 

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

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

17 ‘‘(2) PERSONAL CREDIT.— 

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

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

20 any taxable year (determined after application 

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

22 allowable under subpart A for such taxable 

23 year. 

24 ‘‘(B) LIMITATION BASED ON AMOUNT OF

25 TAX.—In the case of a taxable year to which 


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1 section 26(a)(2) does not apply, the credit al2 lowed under subsection (a) for any taxable year 

3 (determined after application of paragraph (1)) 

4 shall not exceed the excess of— 

5 ‘‘(i) the sum of the regular tax liabil6 ity (as defined in section 26(b)) plus the 

7 tax imposed by section 55, over 

8 ‘‘(ii) the sum of the credits allowable 

9 under subpart A (other than this section 

10 and sections 25D, 30, and 30D) and sec11 tion 27 for the taxable year. 

12 ‘‘(d) QUALIFIED GRID-INTERACTIVE PLUG-IN VEHI13 CLE.—For purposes of this section, the term ‘qualified 

14 grid-interactive plug-in vehicle’ means any vehicle— 

15 ‘‘(1) which— 

16 ‘‘(A) is made by a manufacturer and origi17 nally placed in service by the taxpayer, or 

18 ‘‘(B) has been modified to meet the re19 quirements of paragraphs (3) and (4) by a 

20 qualified vehicle converter and originally placed 

21 in service as a modified vehicle by the taxpayer, 

22 ‘‘(2) which is acquired for use or lease by the 

23 taxpayer and not for resale, 


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1 ‘‘(3) which is propelled to a significant extent 

2 by an electric motor which draws electricity from a 

3 traction battery which— 

4 ‘‘(A) has not less than 20 kilowatt hours 

5 of traction battery storage, and 

6 ‘‘(B) has not less than 12 kilowatt hours 

7 of charging and discharging power capability at 

8 240 volts, 

9 ‘‘(4) which has hardware and software in place 

10 on the vehicle necessary to allow a qualified 

11 aggregator to control battery charging from and dis12 charging to the electrical grid, and 

13 ‘‘(5) with respect to which the taxpayer has en14 tered into a contract or agreement with a qualified 

15 aggregator to provide grid services for not less than 

16 3 years. 

17 ‘‘(e) OTHER DEFINITIONS.—For purposes of this 

18 section— 

19 ‘‘(1) MANUFACTURER.—The term ‘manufac20 turer’ has the meaning given such term under sec21 tion 30B. 

22 ‘‘(2) QUALIFIED VEHICLE CONVERTER.—The 

23 term ‘qualified vehicle converter’ means any person 

24 who is in the trade or business of installing electric 


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1 drive or grid interface components in existing vehi2 cles. 

3 ‘‘(3) QUALIFIED AGGREGATOR.—The term 

4 ‘qualified aggregator’ means any person who— 

5 ‘‘(A) is in the trade or business of control6 ling multiple qualified grid-interactive plug-in 

7 vehicles to provide valuable grid services and 

8 paying owners of those vehicles for the ability 

9 to control charging and discharging of vehicle 

10 battery storage systems to the grid, and 

11 ‘‘(B) is either— 

12 ‘‘(i) an Independent System Operator 

13 as defined in section 3 of the Federal 

14 Power Act (16 U.S.C. 796), 

15 ‘‘(ii) a Regional Transmission Organi16 zation as defined in such section 3, 

17 ‘‘(iii) a load-serving entity, or 

18 ‘‘(iv) an independent company who ac19 cumulates grid services from a collection of 

20 qualified grid-interactive plug-in vehicles. 

21 ‘‘(4) LOAD-SERVING ENTITY.—The term ‘load22 serving entity’ means an electricity distribution com23 pany or utility company that provides distribution 

24 and energy services for electricity and electric cus25 tomer services. 


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1 ‘‘(f) SPECIAL RULES.— 

2 ‘‘(1) BASIS REDUCTION.—For purposes of this 

3 subtitle, the basis of any property for which a credit 

4 is allowable under subsection (a) shall be reduced by 

5 the amount of such credit so allowed. 

6 ‘‘(2) NO DOUBLE BENEFIT.— 

7 ‘‘(A) COORDINATION WITH CREDIT FOR

8 NEW QUALIFIED PLUG-IN ELECTRIC VEHI9 CLES.—No credit shall be allowed under sub10 section (a) with respect to any vehicle for which 

11 a credit is allowed under section 30D. 

12 ‘‘(B) OTHER PROVISIONS.—The amount of 

13 any deduction or credit (other than the credit 

14 allowed under section 30D) allowable under this 

15 chapter for a new qualified grid-interactive 

16 plug-in vehicle shall be reduced by the amount 

17 of credit allowed under subsection (a) for such 

18 vehicle. 

19 ‘‘(3) PROPERTY USED OUTSIDE UNITED STATES

20 NOT QUALIFIED.—No credit shall be allowable under 

21 subsection (a) with respect to any property referred 

22 to in section 50(b)(1). 

23 ‘‘(4) RECAPTURE.—The Secretary shall, by reg24 ulations, provide for recapturing the benefit of any 

25 credit allowable under subsection (a) with respect to 


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1 any property which ceases to be property eligible for 

2 such credit. 

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

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

5 vehicle if the taxpayer elects to not have this section 

6 apply to such vehicle. 

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

8 property placed in service after December 31, 2015.’’. 

9 (b) CONFORMING AMENDMENTS.— 

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

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

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

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

15 ‘‘(37) the portion of the qualified grid-inter16 active plug-in vehicle credit to which section 

17 30E(c)(1) applies.’’. 

18 (2) Section 1016(a) of such Code is amended 

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

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

21 inserting ‘‘, and’’, and by adding at the end the fol22 lowing new paragraph: 

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

24 30E(f)(1).’’. 


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1 (3) Section 6501(m) of such Code is amended 

2 by inserting ‘‘30E(f)(5),’’ after ‘‘30D(e)(4),’’. 

3 (4) The table of sections for subpart B of part 

4 IV of subchapter A of chapter 1 of such Code is 

5 amended by adding at the end the following new 

6 item: 

‘‘Sec. 30E. Qualified grid-interactive plug-in vehicles.’’. 

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

8 this section shall apply to property placed in service after 

9 the date of the enactment of this Act. 

10 TITLE IV—TRANSPORTATION 

11 INFRASTRUCTURE 

12 Subtitle A—Transportation Options 

13 for Families and Businesses 

14 SEC. 401. OIL SAVINGS AND GREENHOUSE GAS EMISSION 

15 REDUCTIONS THROUGH TRANSPORTATION 

16 EFFICIENCY. 

17 (a) ENVIRONMENTAL PROTECTION AGENCY.—Part 

18 A of title II of the Clean Air Act (42 U.S.C. 7521 et seq.) 

19 is amended by adding at the end the following: 

20 ‘‘SEC. 220. OIL SAVINGS AND GREENHOUSE GAS EMISSION 

21 REDUCTIONS THROUGH TRANSPORTATION 

22 EFFICIENCY. 

23 ‘‘(a) IN GENERAL.—The Administrator, in consulta24 tion with the Secretary of Transportation (referred to in 


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1 this section as the ‘Secretary’), shall promulgate, and up2 date from time to time, regulations to establish— 

3 ‘‘(1) national transportation-related goals for 

4 reducing oil consumption and greenhouse gas emis5 sions that are commensurate with the emission re6 duction targets established under the Oil Independ7 ence for a Stronger America Act of 2010 and the 

8 amendments made by that Act; 

9 ‘‘(2) standardized models and related methods, 

10 to be used by States, metropolitan planning organi11 zations, and air quality agencies to address oil sav12 ings and emission reduction goals, including— 

13 ‘‘(A) the development of surface transpor14 tation-related oil savings and greenhouse gas 

15 emission reduction targets pursuant to sections 

16 134 and 135 of title 23, and sections 5303 and 

17 5304 of title 49, United States Code; 

18 ‘‘(B) the assessment of projected surface 

19 transportation-related oil consumption and 

20 greenhouse gas emissions from transportation 

21 strategies; 

22 ‘‘(C) the assessment of projected surface 

23 transportation-related oil consumption and 

24 greenhouse gas emissions from State and re25 gional transportation plans; 


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1 ‘‘(D) the establishment of surface trans2 portation-related oil consumption and green3 house gas emission baselines at national, State, 

4 and regional levels; and 

5 ‘‘(E) the measurement and assessment of 

6 actual surface transportation-related oil con7 sumption and emissions to assess progress to8 ward achievement of oil savings and emission 

9 targets at the State and regional levels; 

10 ‘‘(3) methods for collection of data on transpor11 tation-related oil consumption and greenhouse gas 

12 emissions; and 

13 ‘‘(4) publication and distribution of successful 

14 strategies employed by States, Indian tribes, metro15 politan planning organizations, and other entities to 

16 reduce transportation-related oil consumption and 

17 greenhouse gas emissions. 

18 ‘‘(b) ROLE OF DEPARTMENT OF TRANSPOR19 TATION.—The Secretary, in consultation with the Admin20 istrator, shall promulgate, and update from time to time, 

21 regulations— 

22 ‘‘(1) to improve the ability of transportation 

23 planning models and tools, including travel demand 

24 models, to address oil consumption and greenhouse 

25 gas emissions; 


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1 ‘‘(2) to assess projected surface transportation2 related travel activity and transportation strategies 

3 from State and regional transportation plans; and 

4 ‘‘(3) to update transportation planning require5 ments and approval of transportation plans as nec6 essary to carry out this section. 

7 ‘‘(c) CONSULTATION AND MODELS.—In promul8 gating the regulations, the Administrator and the Sec9 retary— 

10 ‘‘(1) shall consult with States, Indian tribes, 

11 metropolitan planning organizations, and air quality 

12 agencies; 

13 ‘‘(2) may use existing models and methodolo14 gies if the models and methodologies are widely con15 sidered to reflect the best practicable modeling or 

16 methodological approach for assessing actual and 

17 projected transportation-related oil consumption and 

18 greenhouse gas emissions from transportation plans 

19 and projects; and 

20 ‘‘(3) shall consider previously developed plans 

21 that were based on models and methodologies for re22 ducing oil consumption and greenhouse gas emis23 sions in applying those regulations to the first ap24 provals after promulgation. 


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1 ‘‘(d) TIMING.—The Administrator and the Secretary 

2 shall— 

3 ‘‘(1) publish proposed regulations under sub4 sections (a) and (b) not later than 1 year after the 

5 date of enactment of this section; and 

6 ‘‘(2) promulgate final regulations under sub7 sections (a) and (b) not later than 18 months after 

8 the date of enactment of this section. 

9 ‘‘(e) ASSESSMENT.— 

10 ‘‘(1) IN GENERAL.—At least every 6 years after 

11 promulgating final regulations under subsections (a) 

12 and (b), the Administrator and the Secretary shall 

13 jointly assess current and projected progress in re14 ducing national transportation-related oil consump15 tion and greenhouse gas emissions. 

16 ‘‘(2) REQUIREMENTS.—The assessment shall— 

17 ‘‘(A) examine the contributions to emission 

18 reductions attributable to— 

19 ‘‘(i) improvements in vehicle effi20 ciency; 

21 ‘‘(ii) greenhouse gas performance of 

22 transportation fuels; 

23 ‘‘(iii) reductions in vehicle miles trav24 eled; 


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1 ‘‘(iv) changes in consumer demand 

2 and use of transportation management sys3 tems; and 

4 ‘‘(v) any other greenhouse gas-related 

5 transportation policies enacted by Con6 gress; and 

7 ‘‘(B) include an analysis of the impact of 

8 the investments made by each State and metro9 politan planning organization through the appli10 cable statewide transportation improvement 

11 program and transportation improvement pro12 gram, respectively, over the most recent 6-year 

13 period on reducing transportation-related green14 house gas emissions and oil consumption. 

15 ‘‘(3) STATE DEPARTMENTS OF TRANSPOR16 TATION.—The Secretary shall issue guidance to es17 tablish procedures for State departments of trans18 portation to collect and report the data required for 

19 the Secretary to carry out the assessment. 

20 ‘‘(4) RESULTS OF ASSESSMENT.—The Sec21 retary and the Administrator shall consider— 

22 ‘‘(A) the results of the assessment con23 ducted under this subsection; and 

24 ‘‘(B) based on those results, whether tech25 nical or other updates to regulations required 


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1 under this section and sections 134 and 135 of 

2 title 23, and sections 5303 and 5304 of title 49, 

3 United States Code, are necessary.’’. 

4 (b) METROPOLITAN PLANNING ORGANIZATIONS.— 

5 (1) TITLE 23.—Section 134 of title 23, United 

6 States Code, is amended— 

7 (A) in subsection (a)(1)— 

8 (i) by striking ‘‘minimizing’’ and in9 serting ‘‘reducing’’; and 

10 (ii) by inserting ‘‘, reliance on oil, im11 pacts on the environment, transportation12 related greenhouse gas emissions,’’ after 

13 ‘‘consumption’’; 

14 (B) in subsection (h)(1)(E)— 

15 (i) by inserting ‘‘sustainability, and 

16 livability, reduce surface transportation-re17 lated reliance on oil and greenhouse gas 

18 emissions, adapt to the effects of climate 

19 change,’’ after ‘‘energy conservation,’’; 

20 (ii) by inserting ‘‘and public health’’ 

21 after ‘‘quality of life’’; and 

22 (iii) by inserting ‘‘, including housing 

23 and land use patterns’’ after ‘‘development 

24 patterns’’; 

25 (C) in subsection (i)— 


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1 (i) in paragraph (4)(A)— 

2 (I) by striking ‘‘consult, as ap3 propriate,’’ and inserting ‘‘cooperate’’; 

4 (II) by inserting ‘‘transportation, 

5 public transportation, air quality, en6 ergy, and housing, and shall consult, 

7 as appropriate, with State and local 

8 agencies and Indian tribes responsible 

9 for’’ after ‘‘responsible for’’; and 

10 (III) by inserting ‘‘public 

11 health,’’ after ‘‘conservation,’’; and 

12 (ii) in paragraph (5)(C)(iii), by insert13 ing ‘‘and through the website of the metro14 politan planning organization, including oil 

15 savings and emission reduction targets and 

16 strategies developed under subsection 

17 (k)(6), including an analysis of the antici18 pated effects of the targets and strate19 gies,’’ after ‘‘World Wide Web’’; 

20 (D) in subsection (j)(5)(A), by striking 

21 ‘‘subsection (k)(4)’’ and inserting ‘‘subsection 

22 (k)(5)’’; and 

23 (E) in subsection (k)— 


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1 (i) by redesignating paragraphs (1) 

2 through (5) as paragraphs (2) through (6), 

3 respectively; 

4 (ii) by inserting before paragraph (2) 

5 (as so redesignated) the following: 

6 ‘‘(1) DEFINITIONS.—In this subsection: 

7 ‘‘(A) METROPOLITAN PLANNING ORGANI8 ZATION.—The term ‘metropolitan planning or9 ganization’ means a metropolitan planning or10 ganization described in clause (i) or (ii) of para11 graph (7)(B). 

12 ‘‘(B) SCENARIO ANALYSIS.—The term ‘sce13 nario analysis’ means the use of a planning tool 

14 that— 

15 ‘‘(i) develops a range of scenarios rep16 resenting various combinations of transpor17 tation strategies, land use strategies, and 

18 development patterns, estimates of how 

19 each of those scenarios would perform in 

20 meeting the oil savings and greenhouse gas 

21 emission reduction targets based on anal22 ysis of various forces (such as health, 

23 transportation, economic or environmental 

24 factors, and land use) that affect growth; 

25 ‘‘(ii) includes features such as— 


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1 ‘‘(I) the involvement of the gen2 eral public, key stakeholders, and 

3 elected officials on a broad scale; 

4 ‘‘(II) the creation of an oppor5 tunity for those participants to edu6 cate each other as to growth trends 

7 and trade-offs, as a means to incor8 porate values and feedback into future 

9 plans; and 

10 ‘‘(III) the use of continuing ef11 forts and ongoing processes; and 

12 ‘‘(iii) may include key elements such 

13 as— 

14 ‘‘(I) identification of the consid15 erations shaping planning decisions 

16 and outcomes; 

17 ‘‘(II) determination of patterns 

18 of interaction; 

19 ‘‘(III) creation of scenarios for 

20 discussion purposes; 

21 ‘‘(IV) analysis of implications; 

22 ‘‘(V) evaluation of scenarios; and 

23 ‘‘(VI) use of monitoring indica24 tors.’’; and 


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1 (iii) by adding at the end the fol2 lowing: 

3 ‘‘(7) TRANSPORTATION OIL SAVINGS AND

4 GREENHOUSE GAS REDUCTION EFFORTS.— 

5 ‘‘(A) IN GENERAL.—Within a metropolitan 

6 planning area serving a transportation manage7 ment area, the transportation planning process 

8 under this section shall address transportation9 related oil consumption and greenhouse gas 

10 emissions by including oil savings and emission 

11 reduction targets and strategies to meet those 

12 targets. 

13 ‘‘(B) ELIGIBLE ORGANIZATIONS.— 

14 ‘‘(i) MPOS WITHIN TMAS.—All provi15 sions and requirements of this section, in16 cluding the requirements for transpor17 tation oil savings and greenhouse gas re18 duction efforts, shall apply to metropolitan 

19 planning organizations that also serve as 

20 transportation management areas. 

21 ‘‘(ii) OTHER MPOS.—A metropolitan 

22 planning organization that does not serve 

23 as a transportation management area— 

24 ‘‘(I) may develop transportation 

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1 sion reduction targets and strategies 

2 to meet those targets; and 

3 ‘‘(II) if those targets and strate4 gies are developed, shall be subject to 

5 all applicable provisions and require6 ments of this section and the Oil 

7 Independence for a Stronger America 

8 Act of 2010 and amendments made 

9 by that Act, including requirements of 

10 the transportation oil savings and 

11 greenhouse gas reduction efforts. 

12 ‘‘(C) ESTABLISHMENT OF TARGETS AND

13 CRITERIA.— 

14 ‘‘(i) IN GENERAL.—Not later than 2 

15 years after the promulgation of the final 

16 regulations required under section 220 of 

17 the Clean Air Act, each metropolitan plan18 ning organization that also serves as a 

19 transportation management area shall de20 velop surface transportation-related oil sav21 ings and greenhouse gas emission reduc22 tion targets, as well as strategies to meet 

23 those targets, in consultation with State 

24 air agencies and Indian tribes as part of 


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1 the metropolitan transportation planning 

2 process under this section. 

3 ‘‘(ii) MULTIPLE DESIGNATIONS.—If 

4 more than 1 metropolitan planning organi5 zation has been designated within a metro6 politan area, each metropolitan planning 

7 organization shall coordinate with other 

8 metropolitan planning organizations in the 

9 same metropolitan area to develop the tar10 gets and strategies described in clause (i). 

11 ‘‘(iii) MINIMUM REQUIREMENTS.— 

12 Each metropolitan transportation plan de13 veloped by a metropolitan planning organi14 zation under clause (i) shall, within the 

15 plan, demonstrate progress in stabilizing 

16 and reducing transportation-related oil 

17 consumption and greenhouse gas emissions 

18 so as to contribute to the achievement of 

19 State targets pursuant to section 

20 135(f)(9). 

21 ‘‘(iv) REQUIREMENTS FOR TARGETS

22 AND STRATEGIES.—The targets and strat23 egies developed as part of a plan under 

24 this subparagraph shall, at a minimum— 


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1 ‘‘(I) be based on the oil consump2 tion and emission and travel demand 

3 models and related methodologies es4 tablished in the final regulations re5 quired under section 220 of the Clean 

6 Air Act; 

7 ‘‘(II) inventory all sources of sur8 face transportation-related oil con9 sumption and greenhouse gas emis10 sions; 

11 ‘‘(III) apply to those modes of 

12 surface transportation that are ad13 dressed in the planning process under 

14 this section; 

15 ‘‘(IV) be integrated and con16 sistent with regional transportation 

17 plans and transportation improvement 

18 programs; and 

19 ‘‘(V) be selected through scenario 

20 analysis, and include, pursuant to the 

21 requirements of the transportation 

22 planning process under this section, 

23 transportation investment and man24 agement strategies that reduce oil 

25 consumption and greenhouse gas 


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1 emissions from the transportation sec2 tor over the life of the plan, such as— 

3 ‘‘(aa) efforts to increase 

4 public transportation ridership, 

5 including through service im6 provements, capacity expansions, 

7 and access enhancement; 

8 ‘‘(bb) efforts to increase 

9 walking, bicycling, and other 

10 forms of nonmotorized transpor11 tation; 

12 ‘‘(cc) implementation of zon13 ing and other land use regula14 tions and plans to support infill, 

15 transit-oriented development, re16 development, or mixed use devel17 opment; 

18 ‘‘(dd) travel demand man19 agement programs (including 

20 carpool, vanpool, or car-share 

21 projects), transportation pricing 

22 measures, parking policies, and 

23 programs to promote telecom24 muting, flexible work schedules, 

25 and satellite work centers; 


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1 ‘‘(ee) highway and transit 

2 operational improvements, includ3 ing intelligent transportation sys4 tems or other operational im5 provements to reduce long-term 

6 oil consumption and greenhouse 

7 gas emissions through reduced 

8 congestion and improved system 

9 management; 

10 ‘‘(ff) intercity passenger rail 

11 improvements; 

12 ‘‘(gg) high-speed rail im13 provements and programs; 

14 ‘‘(hh) intercity bus improve15 ments; 

16 ‘‘(ii) freight rail improve17 ments; 

18 ‘‘(jj) use of materials or 

19 equipment associated with the 

20 construction or maintenance of 

21 transportation projects that re22 duce oil consumption and green23 house gas emissions; 


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1 ‘‘(kk) public facilities for 

2 supplying electricity to electric or 

3 plug-in hybrid-electric vehicles; 

4 ‘‘(ll) local street network im5 provements; and 

6 ‘‘(mm) any other effort that 

7 demonstrates progress in reduc8 ing transportation-related oil con9 sumption and greenhouse gas 

10 emissions in each metropolitan 

11 planning organization under this 

12 subsection. 

13 ‘‘(v) IDENTIFICATION OF PROJECTS

14 AND STRATEGIES.—The plan developed 

15 under this section shall include a list of 

16 projects and strategies based on the tar17 gets and strategies identified under clause 

18 (iv). 

19 ‘‘(D) REVIEW AND APPROVAL.—Not later 

20 than 180 days after the date of submission of 

21 a plan under this section— 

22 ‘‘(i) the Secretary and the Adminis23 trator shall review the plan; and 

24 ‘‘(ii) the Secretary shall make a deter25 mination that the plan submitted by a metVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00119 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 ropolitan planning organization meets the 

2 requirements of subparagraph (C) if— 

3 ‘‘(I) the Secretary finds that a 

4 metropolitan planning organization 

5 has developed, submitted, and pub6 lished the plan of the metropolitan 

7 planning organization pursuant to this 

8 section; 

9 ‘‘(II) the Secretary, in consulta10 tion with the Administrator, deter11 mines that the plan is likely to achieve 

12 the targets established by the metro13 politan planning organization under 

14 this subsection; and 

15 ‘‘(III) the development of the 

16 plan complies with the minimum re17 quirements established under clauses 

18 (iii) and (iv) of subparagraph (C). 

19 ‘‘(E) CERTIFICATION.— 

20 ‘‘(i) IN GENERAL.—Only metropolitan 

21 planning organizations that meet the re22 quirements of subparagraph (C) shall be 

23 eligible to receive performance grants 

24 under section 402(c) of the Oil Independ25 ence for a Stronger America Act of 2010. 


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1 ‘‘(ii) FAILURE TO COMPLY.—Failure 

2 to comply with the requirements under 

3 subparagraph (C) shall not impact certifi4 cation standards under paragraph (6).’’. 

5 (2) TITLE 49.—Section 5303 of title 49, United 

6 States Code, is amended— 

7 (A) in subsection (a)(1)— 

8 (i) by striking ‘‘minimizing’’ and in9 serting ‘‘reducing’’; and 

10 (ii) by inserting ‘‘, reliance on oil, im11 pacts on the environment, transportation12 related greenhouse gas emissions,’’ after 

13 ‘‘consumption’’; 

14 (B) in subsection (h)(1)(E)— 

15 (i) by inserting ‘‘sustainability, and 

16 livability, reduce surface transportation-re17 lated reliance on oil and greenhouse gas 

18 emissions, adapt to the effects of climate 

19 change,’’ after ‘‘energy conservation,’’; 

20 (ii) by inserting ‘‘and public health’’ 

21 after ‘‘quality of life’’; and 

22 (iii) by inserting ‘‘, including housing 

23 and land use patterns’’ after ‘‘development 

24 patterns’’; 

25 (C) in subsection (i)— 


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1 (i) in paragraph (4)(A)— 

2 (I) by striking ‘‘consult, as ap3 propriate,’’ and inserting ‘‘cooperate’’; 

4 (II) by inserting ‘‘transportation, 

5 public transportation, air quality, en6 ergy, and housing, and shall consult, 

7 as appropriate, with State and local 

8 agencies and Indian tribes responsible 

9 for’’ after ‘‘responsible for’’ and 

10 (III) by inserting ‘‘public 

11 health,’’ after ‘‘conservation,’’; and 

12 (ii) in paragraph (5)(C)(iii), by insert13 ing ‘‘and through the website of the metro14 politan planning organization, including oil 

15 savings and emission reduction targets and 

16 strategies developed under subsection 

17 (k)(6), including an analysis of the antici18 pated effects of the targets and strate19 gies,’’ after ‘‘World Wide Web’’; and 

20 (D) in subsection (k)— 

21 (i) by redesignating paragraphs (1) 

22 through (5) as paragraphs (2) through (6), 

23 respectively; 

24 (ii) by inserting before paragraph (2) 

25 (as so redesignated) the following: 


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1 ‘‘(1) DEFINITION OF METROPOLITAN PLANNING

2 ORGANIZATION.—In this subsection, the term ‘met3 ropolitan planning organization’ means a metropoli4 tan planning organization described in clause (i) or 

5 (ii) of paragraph (7)(B).’’; and 

6 (iii) by adding at the end the fol7 lowing: 

8 ‘‘(7) TRANSPORTATION OIL SAVINGS AND

9 GREENHOUSE GAS REDUCTION EFFORTS.— 

10 ‘‘(A) IN GENERAL.—Within a metropolitan 

11 planning area serving a transportation manage12 ment area, the transportation planning process 

13 under this section shall address transportation14 related oil consumption and greenhouse gas 

15 emissions by including oil savings and emission 

16 reduction targets and strategies to meet those 

17 targets. 

18 ‘‘(B) ELIGIBLE ORGANIZATIONS.— 

19 ‘‘(i) IN GENERAL.—The requirements 

20 of the transportation greenhouse gas re21 duction efforts shall apply only to metro22 politan planning organizations within a 

23 transportation management area. 

24 ‘‘(ii) DEVELOPMENT OF PLAN.—A 

25 metropolitan planning organization that 


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1 does not serve as a transportation manage2 ment area— 

3 ‘‘(I) may develop transportation 

4 oil savings and greenhouse gas emis5 sion reduction targets and strategies 

6 to meet those targets; and 

7 ‘‘(II) if those targets and strate8 gies are developed, shall be subject to 

9 all provisions and requirements of this 

10 section, including requirements of the 

11 transportation oil savings and green12 house gas reduction efforts. 

13 ‘‘(C) ESTABLISHMENT OF TARGETS AND

14 CRITERIA.— 

15 ‘‘(i) IN GENERAL.—Not later than 2 

16 years after the promulgation of the final 

17 regulations required under section 220 of 

18 the Clean Air Act, each metropolitan plan19 ning organization shall develop surface 

20 transportation-related oil savings and 

21 greenhouse gas emission reduction targets, 

22 as well as strategies to meet those targets, 

23 in consultation with State air agencies and 

24 Indian tribes as part of the metropolitan 


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1 transportation planning process under this 

2 section. 

3 ‘‘(ii) MULTIPLE DESIGNATIONS.—If 

4 more than 1 metropolitan planning organi5 zation has been designated within a metro6 politan area, each metropolitan planning 

7 organization shall coordinate with other 

8 metropolitan planning organizations in the 

9 same metropolitan area to develop the tar10 gets and strategies described in clause (i). 

11 ‘‘(iii) MINIMUM REQUIREMENTS.— 

12 Each metropolitan transportation plan de13 veloped by a metropolitan planning organi14 zation under clause (i) shall, within the 

15 plan, demonstrate progress in stabilizing 

16 and reducing transportation-related oil 

17 consumption and greenhouse gas emissions 

18 so as to contribute to the achievement of 

19 State targets pursuant to section 135(f)(9) 

20 of title 23. 

21 ‘‘(iv) REQUIREMENTS FOR TARGETS

22 AND STRATEGIES.—The targets and strat23 egies developed as part of a plan under 

24 this subparagraph shall, at a minimum— 


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1 ‘‘(I) be based on the oil consump2 tion and emission models and related 

3 methodologies established in the final 

4 regulations required under section 

5 220 of the Clean Air Act; 

6 ‘‘(II) inventory all sources of sur7 face transportation-related oil con8 sumption and greenhouse gas emis9 sions; 

10 ‘‘(III) apply to those modes of 

11 surface transportation that are ad12 dressed in the planning process under 

13 this section; 

14 ‘‘(IV) be integrated and con15 sistent with regional transportation 

16 plans and transportation improvement 

17 programs; and 

18 ‘‘(V) be selected through scenario 

19 analysis (as defined in section 

20 134(k)(1) of title 23), and include, 

21 pursuant to the requirements of the 

22 transportation planning process under 

23 this section, transportation investment 

24 and management strategies that re25 duce oil consumption and greenhouse 


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1 gas emissions from the transportation 

2 sector over the life of the plan, such 

3 as— 

4 ‘‘(aa) efforts to increase 

5 public transportation ridership, 

6 including through service im7 provements, capacity expansions, 

8 and access enhancement; 

9 ‘‘(bb) efforts to increase 

10 walking, bicycling, and other 

11 forms of nonmotorized transpor12 tation; 

13 ‘‘(cc) implementation of zon14 ing and other land use regula15 tions and plans to support infill, 

16 transit-oriented development, re17 development, or mixed use devel18 opment; 

19 ‘‘(dd) travel demand man20 agement programs (including 

21 carpool, vanpool, or car-share 

22 projects), transportation pricing 

23 measures, parking policies, and 

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1 muting, flexible work schedules, 

2 and satellite work centers; 

3 ‘‘(ee) highway and transit 

4 operational improvements, includ5 ing intelligent transportation sys6 tems or other operational im7 provements to reduce long-term 

8 oil consumption and greenhouse 

9 gas emissions through reduced 

10 congestion and improved system 

11 management; 

12 ‘‘(ff) intercity passenger rail 

13 improvements; 

14 ‘‘(gg) high-speed rail im15 provements and programs; 

16 ‘‘(hh) intercity bus improve17 ments; 

18 ‘‘(ii) freight rail improve19 ments; 

20 ‘‘(jj) use of materials or 

21 equipment associated with the 

22 construction or maintenance of 

23 transportation projects that re24 duce oil consumption and green25 house gas emissions; 


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1 ‘‘(kk) public facilities for 

2 supplying electricity to electric or 

3 plug-in hybrid-electric vehicles; 

4 ‘‘(ll) local street network im5 provements; and 

6 ‘‘(mm) any other effort that 

7 demonstrates progress in reduc8 ing transportation-related oil con9 sumption and greenhouse gas 

10 emissions in each metropolitan 

11 planning organization under this 

12 subsection. 

13 ‘‘(v) IDENTIFICATION OF PROJECTS

14 AND STRATEGIES.—The plan developed 

15 under this section shall include a list of 

16 projects and strategies based on the tar17 gets and strategies identified under clause 

18 (iv). 

19 ‘‘(D) REVIEW AND APPROVAL.—Not later 

20 than 180 days after the date of submission of 

21 a plan under this section— 

22 ‘‘(i) the Secretary and the Adminis23 trator shall review the plan; and 

24 ‘‘(ii) the Secretary shall make a deter25 mination that the plan submitted by a metVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 ropolitan planning organization meets the 

2 requirements of subparagraph (C) if— 

3 ‘‘(I) the Secretary finds that a 

4 metropolitan planning organization 

5 has developed, submitted, and pub6 lished the plan of the metropolitan 

7 planning organization pursuant to this 

8 section; 

9 ‘‘(II) the Secretary, in consulta10 tion with the Administrator, deter11 mines that the plan is likely to achieve 

12 the targets established by the metro13 politan planning organization under 

14 this subsection; and 

15 ‘‘(III) the development of the 

16 plan complies with the minimum re17 quirements established under clauses 

18 (iii) and (iv) of subparagraph (C). 

19 ‘‘(E) CERTIFICATION.— 

20 ‘‘(i) IN GENERAL.—Only metropolitan 

21 planning organizations that meet the re22 quirements of subparagraph (C) shall be 

23 eligible to receive performance grants 

24 under section 402(c) of the Oil Independ25 ence for a Stronger America Act of 2010. 


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1 ‘‘(ii) FAILURE TO COMPLY.—Failure 

2 to comply with the requirements under 

3 subparagraph (C) shall not impact certifi4 cation standards under paragraph (6).’’. 

5 (c) STATES.— 

6 (1) TITLE 23.—Section 135 of title 23, United 

7 States Code, is amended— 

8 (A) in subsection (d)(1)(E)— 

9 (i) by inserting ‘‘sustainability, and 

10 livability, reduce surface transportation-re11 lated oil consumption and greenhouse gas 

12 emissions, adapt to the effects of climate 

13 change,’’ after ‘‘energy conservation,’’; 

14 (ii) by inserting ‘‘and public health’’ 

15 after ‘‘quality of life’’; and 

16 (iii) by inserting ‘‘, including housing 

17 and land use patterns’’ after ‘‘development 

18 patterns’’; and 

19 (B) in subsection (f)— 

20 (i) in paragraph (2)(D)(i)— 

21 (I) by striking ‘‘, as appropriate, 

22 in consultation’’ and inserting ‘‘in co23 operation’’; 

24 (II) by inserting ‘‘State and local 

25 agencies and Indian tribes responsible 


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1 for transportation, public transpor2 tation, air quality, energy, and hous3 ing and in consultation with’’ before 

4 ‘‘State, tribal’’; and 

5 (III) by inserting ‘‘public 

6 health,’’ after ‘‘conservation,’’; 

7 (ii) in paragraph (3)(B)(iii), by insert8 ing ‘‘and through the website of the State, 

9 including oil savings and emission reduc10 tion targets and strategies developed under 

11 paragraph (9) and an analysis of the an12 ticipated effects of the targets and strate13 gies’’ after ‘‘World Wide Web’’; and 

14 (iii) by adding at the end the fol15 lowing: 

16 ‘‘(9) TRANSPORTATION OIL SAVINGS AND

17 GREENHOUSE GAS REDUCTION EFFORTS.— 

18 ‘‘(A) IN GENERAL.—Within a State, the 

19 transportation planning process under this sec20 tion, shall address transportation-related green21 house gas emissions by including emission re22 duction targets and strategies to meet those 

23 targets. 

24 ‘‘(B) ESTABLISHMENT OF TARGETS AND

25 CRITERIA.— 


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1 ‘‘(i) IN GENERAL.—Not later than 2 

2 years after the promulgation of the final 

3 regulations required under section 220 of 

4 the Clean Air Act, each State shall develop 

5 surface transportation-related oil savings 

6 and greenhouse gas emission reduction tar7 gets, as well as strategies to meet those 

8 targets, in consultation with State air 

9 agencies and Indian tribes as part of the 

10 transportation planning process under this 

11 section. 

12 ‘‘(ii) MINIMUM REQUIREMENTS.— 

13 Each transportation plan developed by a 

14 State under clause (i) shall, within the 

15 plan, demonstrate progress in stabilizing 

16 and reducing transportation-related oil 

17 consumption and greenhouse gas emissions 

18 in the State so as to contribute to the 

19 achievement of national goals pursuant to 

20 section 220(a)(1) of the Clean Air Act. 

21 ‘‘(iii) REQUIREMENTS FOR TARGETS

22 AND STRATEGIES.—The targets and strat23 egies developed as part of a plan under 

24 this subparagraph shall, at a minimum— 


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1 ‘‘(I) be based on the oil consump2 tion and emission models and related 

3 methodologies established in the final 

4 regulations required under section 

5 220 of the Clean Air Act; 

6 ‘‘(II) inventory all sources of sur7 face transportation-related oil con8 sumption and greenhouse gas emis9 sions; 

10 ‘‘(III) apply to those modes of 

11 surface transportation that are ad12 dressed in the planning process under 

13 this section; 

14 ‘‘(IV) be integrated and con15 sistent with statewide transportation 

16 plans and statewide transportation 

17 improvement programs; and 

18 ‘‘(V) be selected through scenario 

19 analysis (as defined in section 

20 134(k)(1)), and include, pursuant to 

21 the requirements of the transportation 

22 planning process under this section, 

23 transportation investment and man24 agement strategies that reduce oil 

25 consumption and greenhouse gas 


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1 emissions from the transportation sec2 tor over the life of the plan, such as— 

3 ‘‘(aa) efforts to increase 

4 public transportation ridership, 

5 including through service im6 provements, capacity expansions, 

7 and access enhancement; 

8 ‘‘(bb) efforts to increase 

9 walking, bicycling, and other 

10 forms of nonmotorized transpor11 tation; 

12 ‘‘(cc) implementation of zon13 ing and other land use regula14 tions and plans to support infill, 

15 transit-oriented development, re16 development, or mixed use devel17 opment; 

18 ‘‘(dd) travel demand man19 agement programs (including 

20 carpool, vanpool, or car-share 

21 projects), transportation pricing 

22 measures, parking policies, and 

23 programs to promote telecom24 muting, flexible work schedules, 

25 and satellite work centers; 


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1 ‘‘(ee) highway and transit 

2 operational improvements, includ3 ing intelligent transportation sys4 tems or other operational im5 provements to reduce congestion 

6 and improve system manage7 ment; 

8 ‘‘(ff) intercity passenger rail 

9 improvements; 

10 ‘‘(gg) high-speed rail im11 provements and programs; 

12 ‘‘(hh) intercity bus improve13 ments; 

14 ‘‘(ii) freight rail improve15 ments; 

16 ‘‘(jj) use of materials or 

17 equipment associated with the 

18 construction or maintenance of 

19 transportation projects that re20 duce oil consumption and green21 house gas emissions; 

22 ‘‘(kk) public facilities for 

23 supplying electricity to electric or 

24 plug-in hybrid-electric vehicles; 


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1 ‘‘(ll) local street network im2 provements; and 

3 ‘‘(mm) any other effort that 

4 demonstrates progress in reduc5 ing transportation-related oil con6 sumption and greenhouse gas 

7 emissions. 

8 ‘‘(iv) IDENTIFICATION OF PROJECTS

9 AND STRATEGIES.—The plan developed 

10 under this section shall include a list of 

11 projects and strategies based on the tar12 gets and strategies identified under clause 

13 (iii). 

14 ‘‘(C) COORDINATION AND CONSULTATION

15 WITH PUBLIC AGENCIES.—Transportation oil 

16 savings and greenhouse gas emission targets 

17 and plans pursuant to this section shall be de18 veloped— 

19 ‘‘(i) in coordination with— 

20 ‘‘(I) all metropolitan planning or21 ganizations covered by this section 

22 within the State; and 

23 ‘‘(II) transportation and air qual24 ity agencies within the State; 


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1 ‘‘(ii) in consultation with representa2 tives of State and local housing, economic 

3 development, energy, and land use agen4 cies; and 

5 ‘‘(iii) in consultation with Indian 

6 tribes contiguous to the State. 

7 ‘‘(D) ENFORCEMENT.—Not later than 180 

8 days after the date of submission of a plan 

9 under this section— 

10 ‘‘(i) the Secretary and the Adminis11 trator shall review the plan; and 

12 ‘‘(ii) the Secretary shall make a deter13 mination that the plan submitted by a 

14 State meets the requirements of subpara15 graph (B) if— 

16 ‘‘(I) the Secretary finds that a 

17 State has developed, submitted, and 

18 published the plan pursuant to this 

19 section; 

20 ‘‘(II) the Secretary, in consulta21 tion with the Administrator, deter22 mines that the plan is likely to achieve 

23 the targets established by the State 

24 under this subsection; and 


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1 ‘‘(III) the development of the 

2 plan complies with the minimum re3 quirements established under clauses 

4 (ii) and (iii) of subparagraph (B). 

5 ‘‘(E) PLANNING FINDING.— 

6 ‘‘(i) IN GENERAL.—Only States that 

7 meet the requirements of subparagraph 

8 (B) shall be eligible to receive performance 

9 grants under section 402(c) of the Oil 

10 Independence for a Stronger America Act 

11 of 2010. 

12 ‘‘(ii) FAILURE TO COMPLY.—Failure 

13 to comply with the requirements under 

14 subparagraph (B) shall not impact the 

15 planning finding under subsection (g)(7).’’. 

16 (2) TITLE 49.—Section 5304 of title 49, United 

17 States Code is amended— 

18 (A) in subsection (d)(1)(E)— 

19 (i) by inserting ‘‘sustainability, and 

20 livability, reduce surface transportation-re21 lated oil consumption and greenhouse gas 

22 emissions, adapt to the effects of climate 

23 change,’’ after ‘‘energy conservation,’’; 

24 (ii) by inserting ‘‘and public health’’ 

25 after ‘‘quality of life’’; and 


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1 (iii) by inserting ‘‘, including housing 

2 and land use patterns’’ after ‘‘development 

3 patterns’’; and 

4 (B) in subsection (f)— 

5 (i) in paragraph (2)(D)(i)— 

6 (I) by striking ‘‘, as appropriate, 

7 in consultation’’ and inserting ‘‘in co8 operation’’; 

9 (II) by inserting ‘‘State and local 

10 agencies and Indian tribes responsible 

11 for transportation, public transpor12 tation, air quality, and housing and in 

13 consultation with’’ before ‘‘State, trib14 al’’; and 

15 (III) by inserting ‘‘public 

16 health,’’ after ‘‘conservation,’’; 

17 (ii) in paragraph (3)(B)(iii), by insert18 ing ‘‘and through the website of the State, 

19 including oil savings and emission reduc20 tion targets and strategies developed under 

21 paragraph (9) and an analysis of the an22 ticipated effects of the targets and strate23 gies’’ after ‘‘World Wide Web’’; and 

24 (iii) by adding at the end the fol25 lowing: 


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1 ‘‘(9) TRANSPORTATION OIL SAVINGS AND

2 GREENHOUSE GAS REDUCTION EFFORTS.— 

3 ‘‘(A) IN GENERAL.—Within a State, the 

4 transportation planning process under this sec5 tion shall address transportation-related oil con6 sumption and greenhouse gas emissions by in7 cluding oil savings and emission reduction tar8 gets and strategies to meet those targets. 

9 ‘‘(B) ESTABLISHMENT OF TARGETS AND

10 CRITERIA.— 

11 ‘‘(i) IN GENERAL.—Not later than 2 

12 years after the promulgation of the final 

13 regulations required under section 220 of 

14 the Clean Air Act, each State shall develop 

15 surface transportation-related oil savings 

16 and greenhouse gas emission reduction tar17 gets, as well as strategies to meet those 

18 targets, in consultation with State air 

19 agencies and Indian tribes as part of the 

20 transportation planning process under this 

21 section. 

22 ‘‘(ii) MINIMUM REQUIREMENTS.— 

23 Each transportation plan developed by a 

24 State under clause (i) shall, within the 

25 plan, demonstrate progress in stabilizing 


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1 and reducing transportation-related oil 

2 consumption and greenhouse gas emissions 

3 in the State so as to contribute to the 

4 achievement of national targets pursuant 

5 to section 220(a)(1) of the Clean Air Act. 

6 ‘‘(iii) REQUIREMENTS FOR TARGETS

7 AND STRATEGIES.—The targets and strat8 egies developed as part of a plan under 

9 this subparagraph shall, at a minimum— 

10 ‘‘(I) be based on the oil consump11 tion and emission models and related 

12 methodologies established in the final 

13 regulations required under section 

14 220 of the Clean Air Act; 

15 ‘‘(II) inventory all sources of sur16 face transportation-related oil con17 sumption and greenhouse gas emis18 sions; 

19 ‘‘(III) apply to those modes of 

20 surface transportation that are ad21 dressed in the planning process under 

22 this section; 

23 ‘‘(IV) be integrated and con24 sistent with statewide transportation 


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1 plans and statewide transportation 

2 improvement programs; and 

3 ‘‘(V) be selected through scenario 

4 analysis (as defined in section 

5 134(k)(1) of title 23), and include, 

6 pursuant to the requirements of the 

7 transportation planning process under 

8 this section, transportation investment 

9 and management strategies that re10 duce oil consumption and greenhouse 

11 gas emissions from the transportation 

12 sector over the life of the plan, such 

13 as— 

14 ‘‘(aa) efforts to increase 

15 public transportation ridership, 

16 including through service im17 provements, capacity expansions, 

18 and access enhancement; 

19 ‘‘(bb) efforts to increase 

20 walking, bicycling, and other 

21 forms of nonmotorized transpor22 tation; 

23 ‘‘(cc) implementation of zon24 ing and other land use regula25 tions and plans to support infill, 


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1 transit-oriented development, re2 development, or mixed use devel3 opment; 

4 ‘‘(dd) travel demand man5 agement programs (including 

6 carpool, vanpool, or car-share 

7 projects), transportation pricing 

8 measures, parking policies, and 

9 programs to promote telecom10 muting, flexible work schedules, 

11 and satellite work centers; 

12 ‘‘(ee) highway and transit 

13 operational improvements, includ14 ing intelligent transportation sys15 tems or other operational im16 provements to reduce congestion 

17 and improve system manage18 ment; 

19 ‘‘(ff) intercity passenger rail 

20 improvements; 

21 ‘‘(gg) high-speed rail im22 provements and programs; 

23 ‘‘(hh) intercity bus improve24 ments; 


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1 ‘‘(ii) freight rail improve2 ments; 

3 ‘‘(jj) use of materials or 

4 equipment associated with the 

5 construction or maintenance of 

6 transportation projects that re7 duce oil consumption and green8 house gas emissions; 

9 ‘‘(kk) public facilities for 

10 supplying electricity to electric or 

11 plug-in hybrid-electric vehicles; 

12 and 

13 ‘‘(ll) any other effort that 

14 demonstrates progress in reduc15 ing transportation-related oil con16 sumption and greenhouse gas 

17 emissions. 

18 ‘‘(iv) IDENTIFICATION OF PROJECTS

19 AND STRATEGIES.—The plan developed 

20 under this section shall include a list of 

21 projects and strategies based on the tar22 gets and strategies identified under clause 

23 (iii). 

24 ‘‘(C) COORDINATION AND CONSULTATION

25 WITH PUBLIC AGENCIES.—Transportation oil 


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1 savings and greenhouse gas targets and plans 

2 pursuant to this section shall be developed— 

3 ‘‘(i) in coordination with— 

4 ‘‘(I) all metropolitan planning or5 ganizations covered by this section 

6 within the State; and 

7 ‘‘(II) transportation and air qual8 ity agencies within the State; 

9 ‘‘(ii) in consultation with representa10 tives of State and local housing, economic 

11 development, energy, and land use agen12 cies; and 

13 ‘‘(iii) in consultation with Indian 

14 tribes contiguous to the State. 

15 ‘‘(D) ENFORCEMENT.—Not later than 180 

16 days after the date of submission of a plan 

17 under this section— 

18 ‘‘(i) the Secretary and the Adminis19 trator shall review the plan; and 

20 ‘‘(ii) the Secretary shall make a deter21 mination that the plan submitted by a 

22 State meets the requirements of subpara23 graph (B) if— 

24 ‘‘(I) the Secretary finds that a 

25 State has developed, submitted, and 


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1 published the plan pursuant to this 

2 section; 

3 ‘‘(II) the Secretary, in consulta4 tion with the Administrator, deter5 mines that the plan is likely to achieve 

6 the targets established by the State 

7 under this subsection; and 

8 ‘‘(III) the development of the 

9 plan complies with the minimum re10 quirements established under clauses 

11 (ii) and (iii) of subparagraph (B). 

12 ‘‘(E) PLANNING FINDING.— 

13 ‘‘(i) IN GENERAL.—Only States that 

14 meet the requirements of subparagraph 

15 (B) shall be eligible to receive performance 

16 grants under section 402(c) of the Oil 

17 Independence for a Stronger America Act 

18 of 2010. 

19 ‘‘(ii) FAILURE TO COMPLY.—Failure 

20 to comply with the requirements under 

21 subparagraph (B) shall not impact the 

22 planning finding under subsection (g)(7).’’. 

23 (d) APPLICABILITY.—Section 304 of the Clean Air 

24 Act (42 U.S.C. 7604) shall not apply to the planning proVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00147 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 visions of this section or any amendment made by this 

2 section. 

3 (e) LAND USE AUTHORITY.—Nothing in this section 

4 or an amendment made by this section— 

5 (1) infringes on the existing authority of local 

6 governments to plan or control land use; or 

7 (2) provides or transfers authority over land 

8 use to any other entity. 

9 (f) TABLE OF CONTENTS.—The table of contents of 

10 title II of the Clean Air Act (42 U.S.C. prec. 7401) is 

11 amended by adding at the end the following: 

‘‘Sec. 220. Greenhouse gas emission reductions through transportation efficiency.’’. 

12 SEC. 402. INVESTING IN TRANSPORTATION GREENHOUSE 

13 GAS EMISSION REDUCTION PROGRAMS. 

14 (a) IN GENERAL.—The Secretary of Transportation 

15 (referred to in this section as the ‘‘Secretary’’) shall dis16 tribute funds made available to carry out this section to 

17 States and metropolitan planning organizations to carry 

18 out the purposes of this section for each fiscal year, includ19 ing— 

20 (1) supporting the development and updating of 

21 transportation greenhouse gas reduction targets and 

22 strategies; and 

23 (2) providing financial assistance to implement 

24 plans approved pursuant to— 


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1 (A) sections 134(k)(6) and 135(f)(9) of 

2 title 23, United States Code; and 

3 (B) sections 5303(k)(7) and 5304(f)(9) of 

4 title 49, United States Code. 

5 (b) ALLOCATION FOR PLANNING.— 

6 (1) IN GENERAL.—Subject to paragraph (2), 

7 the Secretary shall distribute not more than 10 per8 cent of the funds available to carry out this section 

9 for a fiscal year for metropolitan planning organiza10 tions to develop and update transportation plans, in11 cluding targets and strategies for greenhouse gas 

12 emission reduction under— 

13 (A) sections 134(k)(6) and 135(f)(9) of 

14 title 23, United States Code; and 

15 (B) sections 5303(k)(7) and 5304(f)(9) of 

16 title 49, United States Code. 

17 (2) ELIGIBLE ORGANIZATIONS.—The Secretary 

18 shall distribute the funds available under paragraph 

19 (1) to metropolitan planning organizations (as de20 fined in section 134(k)(1) of title 23, United States 

21 Code) in the proportion that— 

22 (A) the population within such a metropoli23 tan planning organization; bears to 

24 (B) the total population of all such metro25 politan planning organizations. 


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1 (c) PERFORMANCE AWARDS.— 

2 (1) IN GENERAL.—After distributing funds pur3 suant to subsection (b)(1), and subject to subsection 

4 (h), the Secretary shall distribute the remainder of 

5 the funds made available to carry out this section to 

6 provide support to States and metropolitan planning 

7 organizations. 

8 (2) CRITERIA.—In making distributions under 

9 this subsection, the Secretary, in consultation with 

10 the Administrator, shall develop criteria for making 

11 the distribution, taking into consideration, with re12 spect to areas to be covered by the distributions— 

13 (A) the quantity of total oil consumption 

14 and greenhouse gas emissions to be reduced as 

15 a result of implementation of a plan, within a 

16 covered area; 

17 (B) the quantity of total oil consumption 

18 and greenhouse gas emissions to be reduced per 

19 capita as a result of the implementation of a 

20 plan, within the covered area; 

21 (C) the cost-effectiveness of reducing oil 

22 consumption and greenhouse gas emissions dur23 ing the life of the plan; 


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1 (D) progress toward achieving oil savings 

2 and emission reductions target established 

3 under— 

4 (i) sections 134(k)(6) and 135(f)(9) of 

5 title 23, United States Code; and 

6 (ii) sections 5303(k)(7) and 

7 5304(f)(9) of title 49, United States Code; 

8 (E) reductions in oil consumption and 

9 greenhouse gas emissions previously achieved by 

10 States and metropolitan planning organizations 

11 during the 5-year period beginning on the date 

12 of enactment of this Act; 

13 (F) the extent to which the plan increases 

14 transportation options and mobility, particularly 

15 for low-income individuals, minorities, the elder16 ly, households without motor vehicles, cost-bur17 dened households, and the disabled; 

18 (G) the extent to which projects funded 

19 will facilitate development patterns and strate20 gies that reduce oil consumption and green21 house gas emissions; and 

22 (H) other factors, including innovative ap23 proaches, minimization of costs, and consider24 ation of economic development, revenue genera25 tion, consumer fuel cost-savings, and other ecoVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00151 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 nomic, environmental, and health benefits, as 

2 the Secretary determines to be appropriate. 

3 (d) REQUIREMENT FOR REDUCED OIL CONSUMP4 TION AND EMISSIONS.—Funds received under subsection 

5 (c) may be used only to fund strategies that demonstrate 

6 reductions in oil consumption and greenhouse gas emis7 sions that are sustainable over the life of the applicable 

8 transportation plan. 

9 (e) COST-SHARING.—The Federal share of the costs 

10 of a project receiving Federal financial assistance under 

11 this section shall be 80 percent. 

12 (f) COMPLIANCE WITH APPLICABLE LAWS.— 

13 (1) IN GENERAL.—Subject to paragraph (2), a 

14 project receiving funds under this section shall com15 ply with all applicable Federal laws (including regu16 lations), including applicable requirements of titles 

17 23 and 49, United States Code. 

18 (2) ELIGIBILITY.—Project eligibility shall be 

19 determined in accordance with this section. 

20 (3) DETERMINATION OF APPLICABLE MODAL

21 REQUIREMENTS.—The Secretary shall— 

22 (A) have the discretion to designate the 

23 specific modal requirements that shall apply to 

24 a project; and 


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1 (B) be guided by the predominant modal 

2 characteristics of the project in the event that 

3 a project has cross-modal application. 

4 (g) ADDITIONAL REQUIREMENTS.— 

5 (1) IN GENERAL.—As a condition of the receipt 

6 of funds under this section, the interests of public 

7 transportation employees affected by the assistance 

8 shall be protected under arrangements that the Sec9 retary of Labor determines— 

10 (A) to be fair and equitable; and 

11 (B) to provide benefits equal to the bene12 fits established under section 5333(b) of title 

13 49, United States Code. 

14 (h) MISCELLANEOUS.— 

15 (1) ROAD-USE AND CONGESTION PRICING

16 MEASURES.—All projects supported by funds made 

17 available under this section shall not be subject to 

18 section 301 of title 23, United States Code shall be 

19 eligible to receive amounts collected through road20 use and congestion pricing measures. 

21 (2) LIMITATIONS.—The Administrator may not 

22 approve any transportation plan for a project that 

23 would be inconsistent with existing design, procure24 ment, and construction guidelines established by the 

25 Department of Transportation. 


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1 (3) TRANSFERS.—With the approval of the Sec2 retary, recipients of funds under this section may 

3 enter into agreements providing for the transfer of 

4 funds or value to private transportation providers or 

5 ineligible public entities (such as local governments, 

6 air quality agencies, zoning commissions, special dis7 tricts, and transit agencies) that have statutory re8 sponsibility or authority for actions necessary to im9 plement strategies pursuant to— 

10 (A) sections 134(k)(6) and 135(f)(9) of 

11 title 23, United States Code; and 

12 (B) sections 5303(k)(7) and 5304(f)(9) of 

13 title 49, United States Code. 

14 (i) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated such sums as are nec16 essary to carry out this section. 

17 SEC. 403. COMMUTER BENEFITS EQUITY. 

18 (a) UNIFORM DOLLAR LIMITATION FOR ALL TYPES

19 OF TRANSPORTATION FRINGE BENEFITS.— 

20 (1) IN GENERAL.—Section 132(f)(2) of the In21 ternal Revenue Code of 1986 (relating to limitation 

22 on exclusion) is amended— 

23 (A) by striking ‘‘$100’’ in subparagraph 

24 (A) and inserting ‘‘$230’’, and 


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1 (B) by striking ‘‘$175’’ in subparagraph 

2 (B) and inserting ‘‘$230’’. 

3 (2) INFLATION ADJUSTMENT CONFORMING

4 AMENDMENTS.—Subparagraph (A) of section 

5 132(f)(6) of the Internal Revenue Code of 1986 (re6 lating to inflation adjustment) is amended— 

7 (A) by striking the last sentence, 

8 (B) by striking ‘‘1999’’ and inserting 

9 ‘‘2009’’, and 

10 (C) by striking ‘‘1998’’ and inserting 

11 ‘‘2008’’. 

12 (3) EFFECTIVE DATE.—The amendments made 

13 by this section shall apply to taxable years beginning 

14 after December 31, 2008. 

15 (b) CLARIFICATION OF FEDERAL EMPLOYEE BENE16 FITS.—Section 7905 of title 5, United States Code, is 

17 amended— 

18 (1) in subsection (a)— 

19 (A) in paragraph (2)(C), by inserting 

20 ‘‘and’’ after the semicolon; 

21 (B) in paragraph (3), by striking ‘‘; and’’ 

22 and inserting a period; and 

23 (C) by striking paragraph (4); and 

24 (2) in subsection (b)(2), by striking subpara25 graph (A) and inserting the following: 


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1 ‘‘(A) a qualified transportation fringe as 

2 defined in section 132(f)(1) of the Internal Rev3 enue Code of 1986;’’. 

4 Subtitle B—Freight Transportation 

5 SEC. 411. FREIGHT TRANSPORTATION GOAL AND PLAN. 

6 (a) FREIGHT TRANSPORTATION OPTIONS GOAL.— 

7 (1) IN GENERAL.—Subject to paragraph (2), it 

8 shall be the goal of the United States to shift at 

9 least 10 percent of freight shipped by truck to rail 

10 or marine shipping by calendar year 2020. 

11 (2) INCREASE.—The Secretary of Transpor12 tation may increase the goal established under para13 graph (1) based on the evaluation of national freight 

14 rail and marine shipping infrastructure and the na15 tional freight transportation options plan developed 

16 pursuant to subsection (b). 

17 (b) FREIGHT TRANSPORTATION PLAN.— 

18 (1) IN GENERAL.—Not later than 18 months 

19 after the date of enactment of this Act, the Sec20 retary of Transportation shall develop a national 

21 freight transportation options plan. 

22 (2) CONTENTS.—The plan developed under 

23 paragraph (1) shall include— 

24 (A) an evaluation of national freight rail 

25 and marine shipping infrastructure; 


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1 (B) an assessment of barriers to increased 

2 movement of freight by rail and marine ship3 ping; 

4 (C) an identification of areas or corridors 

5 in which additional capacity or other infrastruc6 ture is needed to allow increased use of freight 

7 rail and marine shipping; and 

8 (D) a strategic plan for investments in ca9 pacity or other measures to encourage increased 

10 use of freight rail and marine shipping to meet 

11 the goal established under subsection (a). 

12 SEC. 412. FREIGHT RAIL CONGESTION GRANTS. 

13 (a) IN GENERAL.—Section 24105 of title 49, United 

14 States Code, is amended to read as follows: 

15 ‘‘§ 24105. Freight rail congestion grants 

16 ‘‘(a) AUTHORITY.—The Secretary of Transportation 

17 may make grants to States for financing the capital costs 

18 of facilities, infrastructure, and equipment for high pri19 ority rail corridor projects necessary to reduce congestion 

20 in freight rail transportation. 

21 ‘‘(b) ELIGIBLE PROJECTS.—Projects eligible for 

22 grants under this section shall be covered by a State rail 

23 plan and provide public benefits (as defined by chapter 

24 27). 


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1 ‘‘(c) FEDERAL SHARE.—The Federal share of the 

2 cost of a project financed under this section shall not ex3 ceed 80 percent. 

4 ‘‘(d) GRANT CONDITIONS.—The Secretary of Trans5 portation shall require each recipient of a grant under this 

6 section to comply with the applicable grant requirements 

7 of section 24405. 

8 ‘‘(e) EQUITABLE DISTRIBUTION.—The Secretary 

9 shall take such measures as are necessary to ensure an 

10 equitable geographic distribution of funds and an appro11 priate balance in addressing the needs of urban and rural 

12 communities. 

13 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to carry out this section 

15 such sums as are necessary.’’. 

16 (b) TABLE OF SECTIONS AMENDMENT.—The table of 

17 sections for chapter XXX of title 49, United States Code, 

18 is amended by striking the item relating to section 24105 

19 and inserting the following: 

‘‘Sec. 24105. Freight rail congestion grants.’’. 

20 SEC. 413. RAIL ELECTRIFICATION STUDY. 

21 (a) IN GENERAL.—The Comptroller General of the 

22 United States shall conduct a study on the benefits and 

23 costs of electrification of rail corridors, including the role 

24 of rail electrification in meeting the national oil independ25 ence goal established under section 101. 


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1 (b) REPORT.—Not later than 180 days after the date 

2 of enactment of this Act, the Comptroller General shall 

3 submit to the Committee on Commerce, Science, and 

4 Transportation of the Senate and the Committee on 

5 Transportation and Infrastructure of the House of Rep6 resentatives a report describing the results of the study 

7 required under subsection (a). 

8 TITLE V—ALTERNATIVE 

9 TRANSPORTATION FUELS 

10 Subtitle A—Advanced Biofuels 

11 SEC. 501. ALLOWANCE OF INVESTMENT TAX CREDIT FOR 

12 ADVANCED BIOFUEL FACILITIES. 

13 (a) IN GENERAL.—Subsection (a) of section 48 of the 

14 Internal Revenue Code of 1986 is amended by adding at 

15 the end the following new paragraph: 

16 ‘‘(6) ELECTION TO TREAT QUALIFIED AD17 VANCED BIOFUEL FACILITIES AS ENERGY PROP18 ERTY.— 

19 ‘‘(A) IN GENERAL.—In the case of any 

20 qualified property which is part of a qualified 

21 advanced biofuel facility investment credit facil22 ity— 

23 ‘‘(i) such property shall be treated as 

24 energy property for purposes of this sec25 tion, and 


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1 ‘‘(ii) the energy percentage with re2 spect to such property shall be 30 percent. 

3 ‘‘(B) QUALIFIED PROPERTY.—For pur4 poses of this paragraph, the term ‘qualified 

5 property’ means property— 

6 ‘‘(i) which is— 

7 ‘‘(I) tangible personal property, 

8 or 

9 ‘‘(II) other tangible property (not 

10 including a building or its structural 

11 components), but only if such prop12 erty is used as an integral part of the 

13 qualified investment credit facility, 

14 and 

15 ‘‘(ii) with respect to which deprecia16 tion (or amortization in lieu of deprecia17 tion) is allowable. 

18 ‘‘(C) QUALIFIED ADVANCED BIOFUEL FA19 CILITY.—For purposes of this paragraph, the 

20 term ‘qualified advanced biofuel facility’ means 

21 any facility— 

22 ‘‘(i) the primary purpose of which is 

23 the production of advanced biofuels which 

24 are transportation-grade fuels, 


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1 ‘‘(ii) which is originally placed in serv2 ice by the taxpayer after the date of the 

3 enactment of this paragraph and before 

4 December 31, 2015, and 

5 ‘‘(iii) with respect to which the tax6 payer makes an election to have this para7 graph apply. 

8 ‘‘(D) ADVANCED BIOFUELS.—For pur9 poses of subparagraph (C), the term ‘advanced 

10 biofuel’ means alcohol (as defined in section 

11 40(d)(1)), other than ethanol derived from corn 

12 starch, used as a fuel which has lifecycle green13 house gas emissions (as defined in section 

14 211(o)(1)(H) of the Clean Air Act) at least 50 

15 percent less than baseline lifecycle greenhouse 

16 gas emissions (as defined in section 

17 211(o)(1)(C) of such Act).’’. 

18 (b) COORDINATION WITH SPECIAL ALLOWANCE FOR

19 CELLULOSIC BIOFUEL PLANT PROPERTY.—Paragraph 

20 (8) of section 168(l) of the Internal Revenue Code of 1986 

21 is amended by inserting ‘‘or under section 48(a)(6)’’ be22 fore the period at the end. 

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

24 this section shall apply to property placed in service after 

25 the date of the enactment of this Act. 


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1 SEC. 502. GRANTS FOR ADVANCED BIOFUEL FACILITY 

2 PROPERTY. 

3 Section 1603 of division B of the American Recovery 

4 and Reinvestment Act of 2009 is amended by adding at 

5 the end the following new subsection: 

6 ‘‘(k) APPLICATION TO QUALIFIED ADVANCED

7 BIOFUEL FACILITY PROPERTY.—In the case of qualified 

8 property (as defined in section 48(a)(6)(B) of the Internal 

9 Revenue Code of 1986) which is part of a qualified ad10 vanced biofuel facility (within the meaning of section 

11 48(a)(6)(C) of such Code)— 

12 ‘‘(1) such qualified property shall be treated as 

13 specified energy property for purposes of this sec14 tion, and 

15 ‘‘(2) in applying this section to such qualified 

16 property— 

17 ‘‘(A) subsection (a) shall be applied— 

18 ‘‘(i) by substituting ‘the 2-year period 

19 beginning on the date of the enactment of 

20 this Act’ for ‘2009 or 2010’ each place it 

21 appears, and 

22 ‘‘(ii) by substituting ‘after such 2-year 

23 period’ for ‘2010’ in paragraph (2) thereof, 

24 ‘‘(B) the applicable percentage with respect 

25 to such qualified property shall be 30 percent, 


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1 ‘‘(C) the credit termination date with re2 spect to such qualified property shall be Janu3 ary 1, 2016, and 

4 ‘‘(D) subsection (j) shall be applied by sub5 stituting ‘the date which is 9-months after the 

6 2-year period described in subsection 

7 (k)(2)(A)(i)’ for ‘October 1, 2011’.’’. 

8 SEC. 503. INCLUSION OF ALGAE-BASED BIOFUEL IN DEFINI9 TION OF CELLULOSIC BIOFUEL. 

10 (a) CELLULOSIC BIOFUEL PRODUCER CREDIT.— 

11 (1) GENERAL RULE.—Paragraph (4) of section 

12 40(a) of the Internal Revenue Code of 1986 is 

13 amended by inserting ‘‘and algae-based’’ after ‘‘cel14 lulosic’’. 

15 (2) DEFINITIONS.—Paragraph (6) of section 

16 40(b) of such Code is amended— 

17 (A) by inserting ‘‘AND ALGAE-BASED’’ 

18 after ‘‘CELLULOSIC’’ in the heading, 

19 (B) by striking subparagraph (A) and in20 serting the following: 

21 ‘‘(A) IN GENERAL.—The cellulosic and 

22 algae-based biofuel producer credit of any tax23 payer is an amount equal to the applicable 

24 amount for each gallon of— 


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1 ‘‘(i) qualified cellulosic biofuel produc2 tion, and 

3 ‘‘(ii) qualified algae-based biofuel pro4 duction.’’, 

5 (C) by redesignating subparagraphs (F), 

6 (G), and (H) as subparagraphs (I), (J), and 

7 (K), respectively, 

8 (D) by inserting ‘‘AND ALGAE-BASED’’ 

9 after ‘‘CELLULOSIC’’ in the heading of subpara10 graph (I), as so redesignated, 

11 (E) by inserting ‘‘or algae-based biofuel, 

12 whichever is appropriate,’’ after ‘‘cellulosic 

13 biofuel’’ in subparagraph (J), as so redesig14 nated, 

15 (F) by inserting ‘‘and qualified algae-based 

16 biofuel production’’ after ‘‘qualified cellulosic 

17 biofuel production’’ in subparagraph (K), as so 

18 redesignated, and 

19 (G) by inserting after subparagraph (E) 

20 the following new subparagraphs: 

21 ‘‘(F) QUALIFIED ALGAE-BASED BIOFUEL

22 PRODUCTION.—For purposes of this section, 

23 the term ‘qualified algae-based biofuel produc24 tion’ means any algae-based biofuel which is 


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1 produced by the taxpayer, and which during the 

2 taxable year— 

3 ‘‘(i) is sold by the taxpayer to another 

4 person— 

5 ‘‘(I) for use by such other person 

6 in the production of a qualified algae7 based biofuel mixture in such other 

8 person’s trade or business (other than 

9 casual off-farm production), 

10 ‘‘(II) for use by such other per11 son as a fuel in a trade or business, 

12 or 

13 ‘‘(III) who sells such algae-based 

14 biofuel at retail to another person and 

15 places such algae-based biofuel in the 

16 fuel tank of such other person, or 

17 ‘‘(ii) is used or sold by the taxpayer 

18 for any purpose described in clause (i). 

19 The qualified algae-based biofuel production of 

20 any taxpayer for any taxable year shall not in21 clude any alcohol which is purchased by the 

22 taxpayer and with respect to which such pro23 ducer increases the proof of the alcohol by addi24 tional distillation. 


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1 ‘‘(G) QUALIFIED ALGAE-BASED BIOFUEL

2 MIXTURE.—For purposes of this paragraph, the 

3 term ‘qualified algae-based biofuel mixture’ 

4 means a mixture of algae-based biofuel and gas5 oline or of algae-based biofuel and a special fuel 

6 which— 

7 ‘‘(i) is sold by the person producing 

8 such mixture to any person for use as a 

9 fuel, or 

10 ‘‘(ii) is used as a fuel by the person 

11 producing such mixture. 

12 ‘‘(H) ALGAE-BASED BIOFUEL.—For pur13 poses of this paragraph— 

14 ‘‘(i) IN GENERAL.—The term ‘algae15 based biofuel’ means any liquid fuel, in16 cluding gasoline, diesel, aviation fuel, and 

17 ethanol, which— 

18 ‘‘(I) is produced from the bio19 mass of algal organisms, and 

20 ‘‘(II) meets the registration re21 quirements for fuels and fuel additives 

22 established by the Environmental Pro23 tection Agency under section 211 of 

24 the Clean Air Act (42 U.S.C. 7545). 


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1 ‘‘(ii) ALGAL ORGANISM.—The term 

2 ‘algal organism’ means a single- or multi3 cellular organism which is primarily aquat4 ic and classified as a non-vascular plant, 

5 including microalgae, blue-green algae 

6 (cyanobacteria), and macroalgae (sea7 weeds). 

8 ‘‘(iii) EXCLUSION OF LOW-PROOF AL9 COHOL.—Such term shall not include any 

10 alcohol with a proof of less than 150. The 

11 determination of the proof of any alcohol 

12 shall be made without regard to any added 

13 denaturants.’’. 

14 (3) CONFORMING AMENDMENTS.— 

15 (A) Subparagraph (D) of section 40(d)(3) 

16 of such Code is amended— 

17 (i) by inserting ‘‘AND ALGAE-BASED’’ 

18 after ‘‘CELLULOSIC’’ in the heading, 

19 (ii) by inserting ‘‘or (b)(6)(F)’’ after 

20 ‘‘(b)(6)(C)’’ in clause (ii), and 

21 (iii) by inserting ‘‘or algae-based’’ 

22 after ‘‘such cellulosic’’. 

23 (B) Paragraph (6) of section 40(d) of such 

24 Code is amended— 


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1 (i) by inserting ‘‘AND ALGAE-BASED’’ 

2 after ‘‘CELLULOSIC’’ in the heading, and 

3 (ii) by striking the first sentence and 

4 inserting ‘‘No cellulosic and algae-based 

5 biofuel producer credit shall be determined 

6 under subsection (a) with respect to any 

7 cellulosic or algae-based biofuel unless such 

8 cellulosic or algae-based biofuel is produced 

9 in the United States and used as a fuel in 

10 the United States.’’ 

11 (C) Paragraph (3) of section 40(e) of such 

12 Code is amended by inserting ‘‘AND ALGAE13 BASED’’ after ‘‘CELLULOSIC’’ in the heading. 

14 (D) Paragraph (1) of section 4101(a) of 

15 such Code is amended— 

16 (i) by inserting ‘‘or algae-based’’ after 

17 ‘‘cellulosic’’, and 

18 (ii) by inserting ‘‘and 40(b)(6)(H), re19 spectively’’ after ‘‘section 40(b)(6)(E)’’. 

20 (b) SPECIAL ALLOWANCE FOR CELLULOSIC BIOFUEL

21 PLANT PROPERTY.—Subsection (l) of section 168 of the 

22 Internal Revenue Code of 1986 is amended— 

23 (1) by inserting ‘‘AND ALGAE-BASED’’ after 

24 ‘‘CELLULOSIC’’ in the heading, 


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1 (2) by inserting ‘‘and any qualified algae-based 

2 biofuel plant property’’ after ‘‘qualified cellulosic 

3 biofuel plant property’’ in paragraph (1), 

4 (3) by redesignating paragraphs (4) through 

5 (8), as amended by section 501, as paragraphs (6) 

6 through (10), respectively, 

7 (4) by inserting ‘‘or qualified algae-based 

8 biofuel plant property’’ after ‘‘cellulosic biofuel plant 

9 property’’ in paragraph (7)(C), as so redesignated, 

10 (5) by striking ‘‘with respect to’’ and all that 

11 follows in paragraph (9), as so redesignated, and in12 serting ‘‘with respect to any qualified cellulosic 

13 biofuel plant property and any qualified algae-based 

14 biofuel plant property which ceases to be such quali15 fied property.’’, 

16 (6) by inserting ‘‘or qualified algae-based 

17 biofuel plant property’’ after ‘‘cellulosic biofuel plant 

18 property’’ in paragraph (10), as so redesignated, and 

19 (7) by inserting after paragraph (3) the fol20 lowing new paragraphs: 

21 ‘‘(4) QUALIFIED ALGAE-BASED BIOFUEL PLANT

22 PROPERTY.—The term ‘qualified algae-based biofuel 

23 plant property’ means property of a character sub24 ject to the allowance for depreciation— 


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1 ‘‘(A) which is used in the United States 

2 solely to produce algae-based biofuel, 

3 ‘‘(B) the original use of which commences 

4 with the taxpayer after the date of the enact5 ment of this paragraph, 

6 ‘‘(C) which is acquired by the taxpayer by 

7 purchase (as defined in section 179(d)) after 

8 the date of the enactment of this paragraph, 

9 but only if no written binding contract for the 

10 acquisition was in effect on or before such date, 

11 and 

12 ‘‘(D) which is placed in service by the tax13 payer before January 1, 2013. 

14 ‘‘(5) ALGAE-BASED BIOFUEL.— 

15 ‘‘(A) IN GENERAL.—The term ‘algae-based 

16 biofuel’ means any liquid fuel which is produced 

17 from the biomass of algal organisms. 

18 ‘‘(B) ALGAL ORGANISM.—The term ‘algal 

19 organism’ means a single- or multi-cellular or20 ganism which is primarily aquatic and classified 

21 as a non-vascular plant, including microalgae, 

22 blue-green algae (cyanobacteria), and 

23 macroalgae (seaweeds).’’. 

24 (c) EFFECTIVE DATES.— 


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1 (1) CELLULOSIC BIOFUEL PRODUCER CRED2 IT.—The amendments made by subsection (a) shall 

3 apply to fuel produced after the date of the enact4 ment of this Act. 

5 (2) SPECIAL ALLOWANCE FOR CELLULOSIC

6 BIOFUEL PLANT PROPERTY.—The amendments 

7 made by subsection (b) shall apply to property pur8 chased and placed in service after the date of the en9 actment of this Act. 

10 SEC. 504. EXTENSION OF CELLULOSIC BIOFUEL PRODUCER 

11 CREDIT. 

12 (a) IN GENERAL.—Subparagraph (K) of section 

13 40(b)(6) of the Internal Revenue Code of 1986, as redesig14 nated by section 503(a)(2)(C), is amended by striking 

15 ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2016’’, 

16 SEC. 505. EXTENSION OF SPECIAL ALLOWANCE FOR CELLU17 LOSIC BIOFUEL PLANT PROPERTY. 

18 (a) IN GENERAL.—Paragraph (2)(D) of section 

19 168(l) of the Internal Revenue Code of 1986 is amended 

20 by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 

21 2016’’. 

22 (b) ALGAE-BASED BIOFUEL.—Paragraph (4)(D) of 

23 section 168(l) of the Internal Revenue Code of 1986, as 

24 amended by section 503(b)(7), is amended by striking 

25 ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2016’’. 


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1 (c) CONFORMING AMENDMENT.—Paragraph (7)(B) 

2 of section 168(l) of the Internal Revenue Code of 1986, 

3 as redesignated by section 503(b)(3), is amended by strik4 ing ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2016’’. 

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

6 this section shall apply to property placed in service after 

7 the date of the enactment of this Act. 

8 SEC. 506. EXTENSION OF INCENTIVES FOR BIODIESEL AND 

9 RENEWABLE DIESEL. 

10 (a) CREDITS FOR BIODIESEL AND RENEWABLE DIE11 SEL USED AS FUEL.—Subsection (g) of section 40A of 

12 the Internal Revenue Code of 1986 is amended by striking 

13 ‘‘December 31, 2009’’ and inserting ‘‘December 31, 

14 2015’’. 

15 (b) EXCISE TAX CREDITS AND OUTLAY PAYMENTS

16 FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIX17 TURES.— 

18 (1) Paragraph (6) of section 6426(c) of the In19 ternal Revenue Code of 1986 is amended by striking 

20 ‘‘December 31, 2009’’ and inserting ‘‘December 31, 

21 2015’’. 

22 (2) Subparagraph (B) of section 6427(e)(6) of 

23 the Internal Revenue Code of 1986 is amended by 

24 striking ‘‘December 31, 2009’’ and inserting ‘‘De25 cember 31, 2015’’. 


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

2 this section shall apply to fuel sold or used after December 

3 31, 2009. 

4 SEC. 507. EXTENSION OF ALCOHOL FUELS TAX CREDITS. 

5 (a) IN GENERAL.—Paragraph (1) of section 40(e) of 

6 the Internal Revenue Code of 1986 is amended— 

7 (1) in subparagraph (A), by striking ‘‘December 

8 31, 2010’’ and inserting ‘‘December 31, 2015’’, and 

9 (2) in subparagraph (B), by striking ‘‘January 

10 1, 2011’’ and inserting ‘‘January 1, 2016’’. 

11 (b) RULE FOR CREDIT FOR ETHANOL BLENDERS.— 

12 Subsection (h) of section 40 of the Internal Revenue Code 

13 of 1986 is amended— 

14 (1) in paragraph (1), by striking ‘‘during cal15 endar years 2001 through 2010’’ and inserting 

16 ‘‘after calendar year 2001’’, and 

17 (2) in paragraph (2), by inserting at the end 

18 the following flush sentence: 

19 ‘‘In the case of any sale or use after calendar year 2010, 

20 the blender amount and the low-proof blender amount 

21 shall be 0 cents.’’. 

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

23 this section shall apply to alcohol produced, sold, or used 

24 after December 31, 2010. 


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1 Subtitle B—Powering Vehicles 

2 With Natural Gas 

3 SEC. 511. CREDIT FOR QUALIFIED NATURAL GAS MOTOR 

4 VEHICLES. 

5 (a) IN GENERAL.— 

6 (1) IN GENERAL.—Subsection (e) of section 

7 30B of the Internal Revenue Code of 1986 (relating 

8 to new qualified alternative fuel motor vehicle credit) 

9 is amended by adding at the end the following new 

10 paragraphs: 

11 ‘‘(6) SPECIAL RULES FOR QUALIFIED NATURAL

12 GAS MOTOR VEHICLES.— 

13 ‘‘(A) IN GENERAL.—In the case of a quali14 fied natural gas motor vehicle— 

15 ‘‘(i) such motor vehicle shall be treat16 ed as a new qualified alternative fuel motor 

17 vehicle under this subsection, 

18 ‘‘(ii) paragraph (3) shall be applied by 

19 multiplying each of the dollar amounts 

20 contained in such paragraph by 2, and 

21 ‘‘(iii) the credit allowed under this 

22 subsection shall be transferrable as pro23 vided in subparagraph (B). 

24 ‘‘(B) TRANSFERABILITY OF CREDIT.— 


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1 ‘‘(i) IN GENERAL.—A taxpayer who 

2 places in service qualified natural gas 

3 motor vehicle may transfer the credit al4 lowed under this subsection with respect to 

5 such vehicle through an assignment to the 

6 seller, the manufacturer, or the lessee of 

7 such vehicle. Such transfer may be revoked 

8 only with the consent of the Secretary. 

9 ‘‘(ii) REGULATIONS.—The Secretary 

10 shall prescribe such regulations as nec11 essary to ensure that any credit trans12 ferred under clause (i) is claimed once and 

13 not reassigned by such other person. 

14 ‘‘(7) QUALIFIED NATURAL GAS MOTOR VEHI15 CLE.— 

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

17 subsection, the term ‘qualified natural gas 

18 motor vehicle’ means any motor vehicle— 

19 ‘‘(i) which is described in subpara20 graph (B), (C), or (D), 

21 ‘‘(ii) the original use of which com22 mences with the taxpayer, 

23 ‘‘(iii) which is acquired by the tax24 payer for use or lease, but not for resale, 

25 and 


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1 ‘‘(iv) which is placed in service before 

2 the date which is 10 years after the date 

3 of the enactment of this paragraph. 

4 ‘‘(B) HEAVY DUTY VEHICLES.—A motor 

5 vehicle is described in this subparagraph if such 

6 motor vehicle— 

7 ‘‘(i) is made by a manufacturer, 

8 ‘‘(ii) has a gross vehicle weight rating 

9 of more than 8,500 pounds, and 

10 ‘‘(iii) is— 

11 ‘‘(I) only capable of operating on 

12 compressed or liquified natural gas, or 

13 ‘‘(II) capable of operating for 

14 more than 175 miles on 1 fueling of 

15 compressed or liquified natural gas 

16 and is capable of operating on gaso17 line or diesel fuel. 

18 ‘‘(C) LIGHT AND MEDIUM DUTY VEHI19 CLES.—A motor vehicle is described in this sub20 paragraph if such motor vehicle— 

21 ‘‘(i) is made by a manufacturer, 

22 ‘‘(ii) has a gross vehicle weight rating 

23 of not more 8,500 pounds, 

24 ‘‘(iii) is— 


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1 ‘‘(I) only capable of operating on 

2 compressed or liquified natural gas, or 

3 ‘‘(II) capable of operating for 

4 more than 175 miles on 1 fueling of 

5 compressed or liquified natural gas 

6 and is capable of operating on gaso7 line or diesel fuel, 

8 ‘‘(iv) is of a character subject to de9 preciation, and 

10 ‘‘(v) is acquired by a taxpayer who— 

11 ‘‘(I) owns and operates not less 

12 than 10 motor vehicles in the course 

13 of a trade or business at the time of 

14 the acquisition, and 

15 ‘‘(II) has placed in service more 

16 than 2 motor vehicles described in 

17 clauses (i) through (iv) or described in 

18 subparagraph (D)(iii) after the date 

19 of the enactment of this paragraph. 

20 ‘‘(D) CONVERTED OR REPOWERED VEHI21 CLES.— 

22 ‘‘(i) IN GENERAL.—A motor vehicle is 

23 described in this subparagraph if such 

24 motor vehicle is a motor vehicle described 


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1 in clause (ii) or clause (iii) which is con2 verted or repowered so that it— 

3 ‘‘(I) is only capable of operating 

4 on compressed or liquified natural 

5 gas, or 

6 ‘‘(II) is capable of operating for 

7 more than 175 miles on 1 fueling of 

8 compressed or liquified natural gas 

9 and is capable of operating on gaso10 line or diesel fuel, is capable of oper11 ating on compressed or liquefied nat12 ural gas. 

13 ‘‘(ii) HEAVY DUTY VEHICLES.—A 

14 motor vehicle is described in this clause if 

15 such motor vehicle— 

16 ‘‘(I) has a gross vehicle weight 

17 rating of more than 8,500 pounds, 

18 and 

19 ‘‘(II) was not capable of oper20 ating on compressed or liquified nat21 ural gas before the date of such con22 version or repower. 

23 ‘‘(iii) LIGHT AND MEDIUM DUTY VE24 HICLES.—A motor vehicle is described in 

25 this clause if such motor vehicle— 


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1 ‘‘(I) has a gross vehicle weight 

2 rating of not more 8,500 pounds, 

3 ‘‘(II) was not capable of oper4 ating on compressed or liquified nat5 ural gas before the date of such con6 version or repower, 

7 ‘‘(III) is of a character subject to 

8 depreciation, 

9 ‘‘(IV) is acquired by a taxpayer 

10 who owns and operates not less than 

11 10 motor vehicles in the course of a 

12 trade or business at the time of the 

13 acquisition, and 

14 ‘‘(V) is acquired by a taxpayer 

15 who has placed in service more than 2 

16 motor vehicles described in subclauses 

17 (I) through (III) or described in sub18 paragraph (C) after the date of the 

19 enactment of this paragraph. 

20 ‘‘(iv) SPECIAL RULES.— 

21 ‘‘(I) TREATMENT AS NEW.—For 

22 purposes of this subsection, the origi23 nal use of any motor vehicle described 

24 in clause (i) shall be treated as beginVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00179 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 ning with the first use after the date 

2 of the conversion or repower. 

3 ‘‘(II) RULE OF CONSTRUC4 TION.—In the case of a used vehicle 

5 which is converted or repowered, noth6 ing in this section shall be construed 

7 to require that the motor vehicle be 

8 acquired in the year the credit is 

9 claimed under this section with re10 spect to such vehicle. 

11 ‘‘(E) SPECIAL RULE.—For purposes of 

12 this subsection, in the case of a motor vehicle 

13 which— 

14 ‘‘(i) is described in subparagraph (C) 

15 or (D)(iii), 

16 ‘‘(ii) is placed in service after the date 

17 of the enactment of this paragraph, and 

18 ‘‘(iii) is placed in service by a tax19 payer in a taxable year prior to the taxable 

20 year in which such taxpayer places in serv21 ice the third such motor vehicle described 

22 in subparagraph (C) or (D)(iii) after such 

23 date of enactment. 


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1 such motor vehicle shall be treated as placed in 

2 service in the taxable year in which such third 

3 motor vehicle is placed in service.’’. 

4 (2) CONFORMING AMENDMENT.—Subparagraph 

5 (B) of section 30B(e)(5) of such Code is amended 

6 by inserting ‘‘(other than a qualified natural gas 

7 motor vehicle)’’ after ‘‘paragraph (3)’’. 

8 (b) MIXED-FUEL VEHICLES.—Subparagraph (C) of 

9 section 30B(e)(5) of the Internal Revenue Code of 1986 

10 is amended by striking ‘‘a mixed-fuel vehicle which oper11 ates using’’ and all that follows and inserting ‘‘a mixed12 fuel vehicle which— 

13 ‘‘(i) in the case of such a vehicle 

14 which is capable of operating on com15 pressed or liquified natural gas, operates 

16 using at least 65 percent compressed or 

17 liquified natural gas and not more than 35 

18 percent petroleum-based fuel, and 

19 ‘‘(ii) in the case of any other such ve20 hicle, operates using at least 75 percent al21 ternative fuel and not more than 25 per22 cent petroleum-based fuel.’’. 

23 (c) ALTERNATIVE MINIMUM TAX TREATMENT.— 

24 Subparagraph (B) of section 38(c)(4) of the Internal Rev25 enue Code of 1986 is amended by redesignating clauses 


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1 (i) through (ix) as clauses (ii) through (x), respectively, 

2 and by inserting after before clause (ii) (as so redesig3 nated) the following new clause: 

4 ‘‘(i) the amount of the credit deter5 mined under section 30B which is attrib6 utable to a qualified natural gas motor ve7 hicle (as defined in section 30B(e)(7)).’’. 

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

9 this section shall apply to property placed in service after 

10 the date of the enactment of this Act. 

11 SEC. 512. NATURAL GAS VEHICLE BONDS. 

12 (a) IN GENERAL.—Subpart I of part IV of sub13 chapter A of chapter 1 (relating to qualified tax credit 

14 bonds) of the Internal Revenue Code of 1986, as amended 

15 by section 306, is amended by adding at the end the fol16 lowing new section: 

17 ‘‘SEC. 54H. NATURAL GAS VEHICLE BONDS. 

18 ‘‘(a) NATURAL GAS VEHICLE BOND.—For purposes 

19 of this subpart, the term ‘natural gas vehicle bond’ means 

20 any bond issued as part of an issue if— 

21 ‘‘(1) 100 percent of the available project pro22 ceeds of such issue are to be used for capital expend23 itures incurred by a governmental body for 1 or 

24 more qualified natural gas vehicle projects placed in 


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1 service by such governmental body primarily for gov2 ernmental or public use, 

3 ‘‘(2) the bond is issued by a governmental body, 

4 ‘‘(3) the issuer designates such bond for pur5 poses of this section, and 

6 ‘‘(4) in lieu of the requirements of section 

7 54A(d)(2), the issue meets the requirements of sub8 section (c). 

9 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES10 IGNATED.— 

11 ‘‘(1) IN GENERAL.—The maximum aggregate 

12 face amount of bonds which may be designated 

13 under subsection (a) by any issuer shall not exceed 

14 the limitation amount allocated under this sub15 section to such issuer. 

16 ‘‘(2) NATIONAL LIMITATION ON AMOUNT OF

17 BONDS DESIGNATED.—There is a national natural 

18 gas vehicle bond limitation of $3,000,000,000. 

19 ‘‘(3) ALLOCATION BY SECRETARY.—The Sec20 retary shall allocate the amount described in para21 graph (2) among qualified natural gas vehicle 

22 projects in such manner as the Secretary determines 

23 appropriate. 

24 ‘‘(c) SPECIAL RULES RELATING TO EXPENDI25 TURES.— 


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1 ‘‘(1) IN GENERAL.—An issue shall be treated as 

2 meeting the requirements of this subsection if, as of 

3 the date of issuance, the issuer reasonably expects— 

4 ‘‘(A) 100 percent or more of the available 

5 project proceeds of such issue are to be spent 

6 for 1 or more qualified natural gas vehicle 

7 projects within the 5-year period beginning on 

8 the date of issuance of the natural gas vehicle 

9 bond, 

10 ‘‘(B) a binding commitment with a third 

11 party to spend at least 10 percent of such avail12 able project proceeds will be incurred within the 

13 6-month period beginning on the date of 

14 issuance of the natural gas vehicle bond, and 

15 ‘‘(C) such projects will be completed with 

16 due diligence and such available project pro17 ceeds will be spent with due diligence. 

18 ‘‘(2) EXTENSION OF PERIOD.—Upon submis19 sion of a request prior to the expiration of the period 

20 described in paragraph (1)(A), the Secretary may 

21 extend such period if the issuer establishes that the 

22 failure to satisfy the 5-year requirement is due to 

23 reasonable cause and the related projects will con24 tinue to proceed with due diligence. 


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1 ‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT

2 OF BOND PROCEEDS WITHIN 5 YEARS.—To the ex3 tent that less than 100 percent of the available 

4 project proceeds of such issue are expended by the 

5 close of the 5-year period beginning on the date of 

6 issuance (or if an extension has been obtained under 

7 paragraph (2), by the close of the extended period), 

8 the issuer shall redeem all of the nonqualified bonds 

9 within 90 days after the end of such period. For 

10 purposes of this paragraph, the amount of the non11 qualified bonds required to be redeemed shall be de12 termined in the same manner as under section 142. 

13 ‘‘(d) GOVERNMENTAL BODY.—For purposes of this 

14 section, the term ‘governmental body’ means any State, 

15 territory, possession of the United States, the District of 

16 Columbia, Indian tribal government, and any political sub17 division thereof. 

18 ‘‘(e) QUALIFIED NATURAL GAS VEHICLE

19 PROJECT.—For purposes of this subpart, the term ‘quali20 fied natural gas vehicle project’ means— 

21 ‘‘(1) 1 or more qualified natural gas vehicles 

22 (as defined in section 30B(e)(7)), or 

23 ‘‘(2) 1 or more qualified alternative fuel vehicle 

24 refueling properties which are used to store and or 


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1 dispense compressed or liquefied natural gas (within 

2 the meaning of section 30C(c)). 

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

4 with respect to any bond issued after December 31, 

5 2019.’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Paragraph (1) of section 54A(d) of the In8 ternal Revenue Code of 1986, as amended by section 

9 306, is amended by striking ‘‘or’’ at the end of sub10 paragraph (E), by inserting ‘‘or’’ at the end of sub11 paragraph (F), and by inserting after subparagraph 

12 (F) the following new subparagraph: 

13 ‘‘(G) a natural gas vehicle bond,’’. 

14 (2) Subparagraph (C) of section 54A(d)(2) of 

15 such Code, as amended by section 306, is amended 

16 by striking ‘‘and’’ at the end of clause (v), by strik17 ing the period at the end of clause (vi) and inserting 

18 ‘‘, and’’, and by adding at the end the following new 

19 clause: 

20 ‘‘(vii) in the case of a natural gas ve21 hicle bond, a purpose specified in section 

22 54H(a)(1).’’. 

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

24 for subpart I of part IV of subchapter A of chapter 1 of 


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1 such Code, as amended by section 306, is amended by add2 ing at the end the following new item: 

‘‘Sec. 54H. Natural gas vehicle bonds.’’. 

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

4 this section shall apply to bonds issued after the date of 

5 the enactment of this Act. 

6 SEC. 513. INCENTIVES FOR MANUFACTURING FACILITIES 

7 PRODUCING VEHICLES FUELED BY COM8 PRESSED OR LIQUIFIED NATURAL GAS. 

9 (a) DEDUCTION FOR MANUFACTURING FACILI10 TIES.— 

11 (1) IN GENERAL.—Part VI of subchapter B of 

12 chapter 1 of the Internal Revenue Code of 1986 (re13 lating to itemized deductions for individuals and cor14 porations) is amended by inserting after section 

15 179E the following new section: 

16 ‘‘SEC. 179F. EXPENSING FOR MANUFACTURING FACILITIES 

17 PRODUCING VEHICLES FUELED BY COM18 PRESSED NATURAL GAS OR LIQUIFIED NAT19 URAL GAS. 

20 ‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 

21 elect to treat the applicable percentage of the cost of any 

22 qualified natural gas vehicle manufacturing facility prop23 erty as an expense which is not chargeable to a capital 

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1 tion for the taxable year in which the qualified manufac2 turing facility property is placed in service. 

3 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

4 subsection (a), the applicable percentage is— 

5 ‘‘(1) 100 percent, in the case of qualified nat6 ural gas vehicle manufacturing facility property 

7 which is placed in service before January 1, 2015, 

8 and 

9 ‘‘(2) 50 percent, in the case of qualified natural 

10 gas vehicle manufacturing facility property which is 

11 placed in service after December 31, 2014, and be12 fore January 1, 2020. 

13 ‘‘(c) ELECTION.— 

14 ‘‘(1) IN GENERAL.—An election under this sec15 tion for any taxable year shall be made on the tax16 payer’s return of the tax imposed by this chapter for 

17 the taxable year. Such election shall be made in such 

18 manner as the Secretary may by regulations pre19 scribe. 

20 ‘‘(2) ELECTION IRREVOCABLE.—Any election 

21 made under this section may not be revoked except 

22 with the consent of the Secretary. 

23 ‘‘(d) QUALIFIED NATURAL GAS VEHICLE MANUFAC24 TURING FACILITY PROPERTY.—For purposes of this sec25 tion— 


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1 ‘‘(1) IN GENERAL.—The term ‘qualified natural 

2 gas vehicle manufacturing facility property’ means 

3 any qualified property— 

4 ‘‘(A) the original use of which commences 

5 with the taxpayer, 

6 ‘‘(B) which is placed in service by the tax7 payer after the date of the enactment of this 

8 section and before January 1, 2020, and 

9 ‘‘(C) no written binding contract for the 

10 construction of which was in effect on or before 

11 the date of the enactment of this section. 

12 ‘‘(2) QUALIFIED PROPERTY.— 

13 ‘‘(A) IN GENERAL.—The term ‘qualified 

14 property’ means any property which is a facility 

15 or a portion of a facility used for the production 

16 of— 

17 ‘‘(i) any qualified natural gas vehicles 

18 (as defined in section 30B(e)(7)), or 

19 ‘‘(ii) any eligible component. 

20 ‘‘(B) ELIGIBLE COMPONENT.—The term 

21 ‘eligible component’ means any component 

22 which is designed specifically for use in such a 

23 qualified natural gas vehicle. 

24 ‘‘(e) SPECIAL RULE FOR DUAL USE PROPERTY.— 


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1 ‘‘(1) IN GENERAL.—In the case of any qualified 

2 natural gas vehicle manufacturing facility property 

3 which is used to produce both property described in 

4 clauses (i) and (ii) of subsection (d)(2)(A) and prop5 erty which is not so described, the amount of costs 

6 taken into account under subsection (a) shall be re7 duced by an amount equal to— 

8 ‘‘(A) the total amount of such costs (deter9 mined before the application of this subsection), 

10 multiplied by 

11 ‘‘(B) the percentage of property expected 

12 to be produced which is not so described. 

13 ‘‘(2) REGULATIONS.—The Secretary shall pre14 scribe such regulations as are necessary to carry out 

15 the purpose of this subsection.’’. 

16 (2) CLERICAL AMENDMENT.—The table of sec17 tions of part VI of subchapter B of chapter 1 of the 

18 Internal Revenue Code of 1986 is amended by in19 serting after the item relating to section 179E the 

20 following new item: 

‘‘Sec. 179F. Expensing for manufacturing facilities producing vehicles fueled by 

compressed natural gas or liquified natural gas.’’. 

21 (b) REFUND OF CREDIT FOR PRIOR YEAR MINIMUM

22 TAX LIABILITY.—Section 53 of the Internal Revenue 

23 Code of 1986 (relating to credit for prior year minimum 


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1 tax liability) is amended by adding at the end the following 

2 new subsection: 

3 ‘‘(g) ELECTION TO TREAT AMOUNTS ATTRIBUTABLE

4 TO QUALIFIED MANUFACTURING FACILITY.— 

5 ‘‘(1) IN GENERAL.—In the case of an eligible 

6 taxpayer, the amount determined under subsection 

7 (c) for the taxable year (after the application of sub8 section (e)) shall be increased by an amount equal 

9 to the applicable percentage of any qualified natural 

10 gas vehicle manufacturing facility property which is 

11 placed in service during the taxable year. 

12 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

13 of paragraph (1), the applicable percentage is— 

14 ‘‘(A) 35 percent, in the case of qualified 

15 natural gas vehicle manufacturing facility prop16 erty which is placed in service before January 

17 1, 2015, and 

18 ‘‘(B) 17.5 percent, in the case of qualified 

19 natural gas vehicle manufacturing facility prop20 erty which is placed in service after December 

21 31, 2014, and before January 1, 2020. 

22 ‘‘(3) ELIGIBLE TAXPAYER.—For purposes of 

23 this subsection, the term ‘eligible taxpayer’ means 

24 any taxpayer— 


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1 ‘‘(A) who places in service qualified natural 

2 gas vehicle manufacturing facility property dur3 ing the taxable year, 

4 ‘‘(B) who does not make an election under 

5 section 179F(c), and 

6 ‘‘(C) who makes an election under this 

7 subsection. 

8 ‘‘(4) OTHER DEFINITIONS AND SPECIAL

9 RULES.— 

10 ‘‘(A) QUALIFIED NATURAL GAS VEHICLE

11 MANUFACTURING FACILITY PROPERTY.—The 

12 term ‘qualified natural gas vehicle manufac13 turing facility property’ has the meaning given 

14 such term under section 179F(d). 

15 ‘‘(B) SPECIAL RULE FOR DUAL USE PROP16 ERTY.—In the case of any qualified natural gas 

17 vehicle manufacturing facility property which is 

18 used to produce both qualified property (as de19 fined in section 179F(d)) and other property 

20 which is not qualified property, the amount of 

21 costs taken into account under paragraph (1) 

22 shall be reduced by an amount equal to— 

23 ‘‘(i) the total amount of such costs 

24 (determined before the application of this 

25 subparagraph), multiplied by 


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1 ‘‘(ii) the percentage of property ex2 pected to be produced which is not quali3 fied property. 

4 ‘‘(C) ELECTION.— 

5 ‘‘(i) IN GENERAL.—An election under 

6 this subsection for any taxable year shall 

7 be made on the taxpayer’s return of the 

8 tax imposed by this chapter for the taxable 

9 year. Such election shall be made in such 

10 manner as the Secretary may by regula11 tions prescribe. 

12 ‘‘(ii) ELECTION IRREVOCABLE.—Any 

13 election made under this subsection may 

14 not be revoked except with the consent of 

15 the Secretary. 

16 ‘‘(5) CREDIT REFUNDABLE.—For purposes of 

17 this title (other than this section), the credit allowed 

18 by reason of this subsection shall be treated as if it 

19 were allowed under subpart C.’’. 

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

21 this section shall apply to taxable years beginning after 

22 the date of the enactment of this Act. 


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1 SEC. 514. STUDY OF INCREASING NATURAL GAS AND LIQ2 UEFIED PETROLEUM GAS VEHICLES IN FED3 ERAL FLEET. 

4 (a) IN GENERAL.—The Administrator of General 

5 Services, in consultation with the Administrator and the 

6 Secretary, shall conduct a study of the means by which 

7 the Federal fleet could increase the number of light-, me8 dium-, and heavy-duty natural gas and liquefied petroleum 

9 gas vehicles in the fleet. 

10 (b) COMPONENTS.—In conducting the study, the Ad11 ministrator of General Services shall— 

12 (1) take into consideration Executive Order 

13 13514 (74 Fed. Reg. 52117; relating to Federal 

14 leadership in environmental, energy, and economic 

15 performance) requiring agencies to meet a 30 per16 cent reduction in vehicle fleet petroleum use by 

17 2020; 

18 (2) assess— 

19 (A) the barriers to increasing the number 

20 of natural gas and liquefied petroleum gas vehi21 cles in the Federal fleet; 

22 (B) the potential for maximizing the use of 

23 natural gas and liquefied petroleum gas vehicles 

24 in the fleet; 

25 (C) the expected reductions in petroleum 

26 use and greenhouse gas emissions as part of the 


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1 potential impacts of increasing natural gas and 

2 liquefied petroleum in the fleet; and 

3 (D) the lifecycle costs involved in fleet con4 versions, including the cost savings from re5 duced fuel consumption; 

6 (3) provide a separate analysis of the potential 

7 costs of installing the specific fueling infrastructure 

8 required to increase natural gas and liquefied petro9 leum gas in the fleet; and 

10 (4) include feasibility assessments for increas11 ing the number of light-, medium-, and heavy-duty 

12 natural gas and liquefied petroleum gas vehicles in 

13 the fleet over a base period of 10 years and acceler14 ated periods of 3 and 5 years. 

15 (c) REPORT.—Not later than 180 days after the date 

16 of enactment of this Act, the Administrator of General 

17 Services shall submit to the appropriate committees of 

18 Congress a report on the results of the study conducted 

19 under this section. 

20 TITLE VI—HEATING OIL AND 

21 PROPANE CONSERVATION 

22 SEC. 601. ENERGY EFFICIENCY IMPROVEMENTS FOR HEAT23 ING OIL, PROPANE, AND KEROSENE USE IN 

24 HOMES AND COMMERCIAL BUILDINGS. 

25 (a) DEFINITIONS.—In this section: 


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1 (1) COST-EFFECTIVE.—The term ‘‘cost-effec2 tive’’, with respect to an energy efficiency program, 

3 means that the program meets the total resource 

4 cost test, which requires that the net present value 

5 of economic benefits over the life of the program or 

6 measure (including avoided supply and delivery costs 

7 and deferred or avoided investments) is greater than 

8 the net present value of the economic costs over the 

9 life of the program, including program costs and in10 cremental costs borne by the energy consumer. 

11 (2) DEPARTMENT.—The term ‘‘Department’’ 

12 means the Department of Energy. 

13 (3) NORA.—The term ‘‘NORA’’ means a na14 tional oilheat research alliance established pursuant 

15 to section 704 of the National Oilheat Research Alli16 ance Act of 2000 (42 U.S.C. 6201 note; Public Law 

17 106–469) or a successor entity. 

18 (4) PERC.—The term ‘‘PERC’’ means the 

19 Propane Education and Research Council authorized 

20 by the Propane Education and Research Act of 1996 

21 (15 U.S.C. 6401 et seq.) or a successor entity. 

22 (5) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Energy. 

24 (b) ENERGY EFFICIENCY IMPROVEMENT FOR HEAT25 ING OIL, PROPANE, AND KEROSENE PROGRAM.— 


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1 (1) ESTABLISHMENT.—There is established in 

2 the Department the Energy Efficiency Improvement 

3 for Heating Oil, Propane, and Kerosene Program 

4 under which the Secretary shall provide funds to 

5 each State that has elected to participate in pro6 grams operated by NORA or PERC to carry out 

7 cost-effective energy efficiency programs for homes 

8 and buildings that use home heating oil, propane, 

9 and kerosene. 

10 (2) DISTRIBUTION OF FUNDS.—The Secretary 

11 shall distribute funds under paragraph (1) among 

12 the States based on the relative amount of funds col13 lected in each State under the National Oilheat Re14 search Alliance Act of 2000 (42 U.S.C. 6201 note; 

15 Public Law 106–469) and the Propane Education 

16 and Research Act of 1996 (15 U.S.C. 6401 et seq.). 

17 (c) USE OF PROCEEDS.— 

18 (1) IN GENERAL.—A State shall use the 

19 amounts distributed under subsection (b)(2) to carry 

20 out cost-effective energy efficiency programs for con21 sumers that use home heating oil, propane, or ker22 osene for residential or commercial purposes. 

23 (2) ADMINISTRATION AND DELIVERY MECHA24 NISMS.—In administering a program under this sec25 tion, a State shall— 


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1 (A) to the maximum extent practicable, de2 liver efficiency programs through, or integrated 

3 with, existing energy efficiency programs super4 vised by the State, including, as appropriate, 

5 energy efficiency programs administered by par6 ties other than the State; 

7 (B) to the maximum extent practicable, co8 ordinate the administration and delivery of en9 ergy efficiency programs supported under this 

10 section, among other such programs and with 

11 existing programs for various fuel types, to de12 liver comprehensive, fuel-blind, coordinated pro13 grams to consumers; 

14 (C) ensure that funding provided under 

15 this section does not displace or substitute for 

16 existing or alternative sources of funding for 

17 energy efficiency programs; 

18 (D) taking into account subparagraphs (A) 

19 through (C), designate 1 or more energy effi20 ciency program administrators for cost-effective 

21 home heating oil, propane, and kerosene effi22 ciency programs; 

23 (E) designate an existing, or establish a 

24 new, stakeholder oversight council or equivalent 

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1 ciency program cost-effectiveness and make rec2 ommendation for improvement and ensure co3 ordination between efficiency programs for 

4 other fuels such as electricity and natural gas; 

5 (F) establish methodologies and processes 

6 for the manner by which efficiency programs 

7 are developed, administered, reviewed, and ap8 proved in the State and report to the Secretary 

9 annually on the methodologies and processes 

10 used to develop, administer, review, and ap11 prove home heating oil, propane, and kerosene 

12 programs; and 

13 (G) ensure that evaluation, monitoring, 

14 and verification of the efficiency programs are 

15 conducted by an independent third-party annu16 ally with reporting to the States, public, and 

17 the Secretary. 

18 (d) REPORTS.— 

19 (1) STATE.—Not later than April 30 of each 

20 year, each State that receives funds under this sec21 tion shall submit to the Secretary a report for the 

22 previous calendar year in accordance with such re23 quirements as the Secretary may prescribe that— 

24 (A) describes the use by the State of funds 

25 provided by this section, including a description 


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1 of the cost-effective energy efficiency programs 

2 funded; 

3 (B) demonstrates the consumer savings, 

4 cost-effectiveness of, and the lifetime and an5 nual energy savings achieved by, energy effi6 ciency programs funded under this section; and 

7 (C) includes a report prepared by an inde8 pendent third party, in accordance with such 

9 regulations as the Secretary may issue, evalu10 ating the performance of the cost-effective en11 ergy efficiency programs funded under this sec12 tion, including consumer savings, cost-effective13 ness of, and the lifetime and annual energy sav14 ings of the efficiency programs. 

15 (2) SECRETARY.— 

16 (A) IN GENERAL.—Not later than April 

17 30, 2013, and every 2 years thereafter, the Sec18 retary shall submit to Congress a report con19 taining— 

20 (i) an evaluation of the consumer sav21 ings, cost-effectiveness of, and the lifetime 

22 and annual energy savings achieved by, en23 ergy efficiency programs funded under this 

24 section; and 


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1 (ii) recommendations for means of 

2 more effectively achieving consumer sav3 ings, cost-effectiveness, and lifetime and 

4 annual energy savings through efficiency 

5 programs for home heating oil, propane, 

6 and kerosene consumer for residential or 

7 commercial purposes. 

8 (B) PUBLICATION.—The Secretary shall 

9 make the reports submitted under subpara10 graph (A) available to the public, including by 

11 publishing the reports on the Internet. 

12 (e) ENFORCEMENT.—If the Secretary determines 

13 that a State is not in compliance with this section, the 

14 Secretary may distribute funds that would have been dis15 tributed to the State under subsection (b)2) among the 

16 remaining States, on a pro rata basis, for use in carrying 

17 out programs under this section. 

18 SEC. 602. RENEWABLE BIOMASS THERMAL ENERGY FOR 

19 COMMERCIAL BUILDINGS. 

20 (a) DEFINITIONS.—In this section: 

21 (1) COMMERCIAL BUILDING.— 

22 (A) IN GENERAL.—The term ‘‘commercial 

23 building’’ means a building that— 

24 (i) is located in the United States; 

25 and 


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1 (ii) was in existence or initially de2 signed as of December 31, 2009. 

3 (B) EXCLUSIONS.—The term ‘‘commercial 

4 building’’ does not include— 

5 (i) a federally owned building; or 

6 (ii) a residential building. 

7 (2) ELIGIBLE BUILDING.—The term ‘‘eligible 

8 building’’ means a commercial building or multi9 family residential building that uses (or, if under de10 velopment but not yet constructed, is designed to 

11 consume) heating oil or another petroleum product 

12 as the primary thermal energy source of the build13 ing. 

14 (3) MULTIFAMILY RESIDENTIAL BUILDING.— 

15 (A) IN GENERAL.—The term ‘‘multifamily 

16 residential building’’ means a structure of 5 or 

17 more dwelling units that— 

18 (i) is located in the United States; 

19 and 

20 (ii) was in existence or initially de21 signed as of December 31, 2009. 

22 (B) EXCLUSION.—The term ‘‘multifamily 

23 residential building’’ does not include a feder24 ally owned building. 


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1 (4) PROGRAM.—The term ‘‘program’’ means 

2 the renewable biomass thermal energy loan program 

3 established under this section. 

4 (5) QUALIFIED BOILER.—The term ‘‘qualified 

5 boiler’’ means a wood or wood-pellet fired boiler or 

6 furnace that— 

7 (A) has a capacity of not less than 

8 300,000 Btu per hour; and 

9 (B) meets or exceeds 60 percent total sys10 tem efficiency based on lower heating value. 

11 (6) QUALIFIED PROGRAM DELIVERY ENTITY.— 

12 The term ‘‘qualified program delivery entity’’ means 

13 a State, political subdivision of a State, tribal gov14 ernment, energy utility, natural gas utility, nonprofit 

15 or community-based organization, energy service 

16 company, retailer, or any other qualified entity 

17 that— 

18 (A) meets the eligibility requirements of 

19 this section; and 

20 (B) is approved by the State that admin21 isters the program in the State. 

22 (7) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Energy. 

24 (b) ESTABLISHMENT.—The Secretary shall establish 

25 a renewable biomass thermal energy loan program under 


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1 which the Secretary shall make grants to States to support 

2 financial assistance provided by qualified program delivery 

3 entities for replacing, in eligible buildings, thermal energy 

4 systems that use heating oil or another petroleum product 

5 in qualified boilers. 

6 (c) ELIGIBILITY OF QUALIFIED PROGRAM DELIVERY

7 ENTITIES.—To be eligible to participate in the program, 

8 a qualified program delivery entity— 

9 (1) shall offer a financing product under which 

10 eligible participants may pay over time for the cost 

11 to the owner of an eligible building (after all applica12 ble Federal, State, local, and other rebates or incen13 tives are applied) of replacing or redesigning a ther14 mal energy system that uses heating oil or another 

15 petroleum product with a qualified boiler; 

16 (2) shall offer an incentive or other strategy for 

17 encouraging the owner of an eligible building to 

18 make energy efficiency improvements to the thermal 

19 energy delivery system of an eligible building at the 

20 same time as a qualified boiler is installed; 

21 (3) shall establish standard underwriting cri22 teria to determine the eligibility of program appli23 cants, which criteria shall be consistent with com24 mercially recognized best practices applicable to the 

25 form of financial assistance being provided (as deterVerDate Mar 15 2010 03:57 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00204 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 mined by the designated entity administering the 

2 program in the State); and 

3 (4) may establish and offer financing mecha4 nisms to pool the needs of multiple eligible buildings 

5 into a single finance package in order to lower trans6 actions costs and enable projects in small or low-in7 come municipalities to participate in the program. 

8 (d) ALLOCATION.—In making funds available to 

9 States for each fiscal year under this section, the Sec10 retary shall use the formula used to allocate funds to 

11 States to carry out State energy conservation plans estab12 lished under part D of title III of the Energy Policy and 

13 Conservation Act (42 U.S.C. 6321 et seq.). 

14 (e) QUALIFIED PROGRAM DELIVERY ENTITIES.—Be15 fore making a grant to a State under this section, the Sec16 retary shall require the Governor of the State to provide 

17 to the Secretary a letter of assurance that the State— 

18 (1) has 1 or more qualified program delivery 

19 entities that meet the requirements of this section; 

20 (2) has established a loan program mechanism 

21 that incorporates an effective repayment mechanism, 

22 which may include— 

23 (A) on-utility-bill repayment; 

24 (B) tax assessment or other form of prop25 erty assessment financing; 


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1 (C) municipal service charges; 

2 (D) energy or energy efficiency services 

3 contracts; or 

4 (E) alternative contractual repayment 

5 mechanisms that have been demonstrated to 

6 have appropriate risk mitigation features; and 

7 (3) will provide, in a timely manner, all infor8 mation regarding the administration of the program 

9 as the Secretary may require to permit the Secretary 

10 to meet the reporting requirements of subsection (h). 

11 (f) USE OF GRANT FUNDS.—Grant funds made 

12 available to States under the program may be used to sup13 port financing products offered by qualified program deliv14 ery entities to eligible participants, by providing— 

15 (1) interest rate reductions; 

16 (2) loan loss reserves or other forms of credit 

17 enhancement; 

18 (3) revolving loan funds from which qualified 

19 program delivery entities may offer direct loans; 

20 (4) other debt instruments or financial products 

21 necessary— 

22 (A) to maximize leverage provided through 

23 available funds; and 

24 (B) to support widespread deployment of 

25 qualified boilers; and 


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1 (5) technical assistance delivered for nonprofit 

2 or community based organizations and local govern3 ments in economically distressed counties, on financ4 ing options or project development and design of5 fered to eligible entities, particularly eligible entities 

6 located in low-income communities, HUB zones, or 

7 other Federal designations aimed at increasing the 

8 participation and benefit from Federal programs of 

9 underserved or low-income communities. 

10 (g) USE OF REPAYMENT FUNDS.—In the case of a 

11 revolving loan fund established by a State described in 

12 subsection (f)(3), a qualified program delivery entity may 

13 use funds repaid by eligible participants under the pro14 gram to provide financial assistance for additional eligible 

15 participants to make improvements described in sub16 section (b) in a manner that is consistent with this section 

17 or other such criteria as are prescribed by the State. 

18 (h) PROGRAM EVALUATION.—Not later than 180 

19 days after the date of enactment of this Act, the Secretary 

20 shall submit to Congress a program evaluation that de21 scribes— 

22 (1) how many eligible participants have partici23 pated in the program; 

24 (2) how many jobs have been created through 

25 the program, directly and indirectly; 


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1 (3) what steps could be taken to promote fur2 ther deployment of qualified boilers; 

3 (4) the quantity of verifiable energy savings, re4 newable energy deployment, eligible building owner 

5 energy bill savings, and other benefits of the pro6 gram; and 

7 (5) the performance of the programs carried 

8 out by qualified program delivery entities under this 

9 section, including information on the rate of default 

10 and repayment. 

11 (i) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to carry out this section 

13 such sums as are necessary for each of fiscal years 2011 

14 through 2020. 

Æ 


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