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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3601 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Oil Independence 
for a Stronger America Act of 2010''.
    (b) Table of Contents.--The table of contents of 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.
                     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.
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.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Council.--The term ``Council'' means the National 
        Energy Security Council established by section 102.
            (3) National oil independence goal.--The term ``national 
        oil independence goal'' means the national oil independence 
        goal established under section 101(c).
            (4) National oil independence plan.--The term ``national 
        oil independence plan'' means the national oil independence 
        plan established under section 101(d).

               TITLE I--NATIONAL ENERGY SECURITY PROGRAM

SEC. 101. NATIONAL ENERGY SECURITY PROGRAM.

    (a) Establishment.--There is established in the Executive Office of 
the President the national energy security program.
    (b) Mission.--The mission of the national energy security program 
shall be to coordinate the activities and policies of the Federal 
Government to ensure, to the maximum extent practicable, that the 
United States meets--
            (1) goals for reducing oil dependence, oil imports, and oil 
        consumption; and
            (2) other energy policy goals, including goals for--
                    (A) enhancing the competitiveness of the United 
                States in clean energy technology;
                    (B) strengthening clean energy technology 
                manufacturing in the United States;
                    (C) reducing greenhouse gas emissions; and
                    (D) reducing other environmental impacts.
    (c) National Oil Independence Goal.--
            (1) In general.--Subject to paragraph (2), it is the goal 
        of the United States to reduce oil consumption by 8,000,000 
        barrels per day by calendar year 2030 (as compared to the rate 
        of oil consumption projected for calendar year 2030 as of the 
        date of enactment of this Act).
            (2) Adjustments.--The President, in consultation with the 
        Council--
                    (A) may adjust the goal established under paragraph 
                (1); and
                    (B) shall ensure that the goal represents the 
                maximum practicable oil savings achievable, taking into 
                account other benefits of reducing oil consumption 
                (including economic, security, and environmental 
                benefits) and costs or other economic effects.
    (d) National Oil Independence Plan.--
            (1) In general.--The President, in coordination with the 
        Council and the Director of the Office of Management and 
        Budget, shall--
                    (A) develop a national oil independence plan that 
                describes programs and activities that will be 
                implemented to meet or exceed the national oil 
                independence goal;
                    (B) submit the national oil independence plan to 
                Congress not later than 180 days after the date of 
                enactment of this Act; and
                    (C) submit an updated national oil independence 
                plan to Congress every 2 years thereafter.
            (2) Review of federal policies, programs, and 
        authorities.--Not later than 120 days after the date of 
        enactment of this Act, the President, in coordination with the 
        Council and the Director of the Office of Management and 
        Budget, shall review existing programs and authorities of the 
        Federal Government and other applicable policies (including tax 
        policies) to determine--
                    (A)(i) which programs, authorities, or policies 
                could be used to accelerate reductions in oil 
                dependence; and
                    (ii) the manner by which the programs, authorities, 
                or policies could be used to maximize reductions in oil 
                dependence; and
                    (B)(i) which programs, authorities, or policies 
                have the effect of increasing oil consumption and oil 
                dependence or otherwise create barriers to reducing oil 
                consumption and oil dependence; and
                    (ii) the manner by which the programs, authorities, 
                or policies--
                            (I) have the effect of encouraging oil 
                        consumption or oil dependence or otherwise 
                        create barriers to reducing oil consumption and 
                        oil dependence; and
                            (II) could be modified or eliminated to 
                        help meet the goal of reducing oil consumption 
                        and oil dependence.
            (3) Contents.--At a minimum, the national oil independence 
        plan shall--
                    (A) cover implementation of the measures and 
                programs established by this Act;
                    (B) describe the results and conclusions of the 
                review conducted under paragraph (2);
                    (C) as appropriate, include--
                            (i) the use of programs, authorities, or 
                        policies described in paragraph (2)(A); and
                            (ii) if existing authority allows, 
                        proposals to modify or eliminate programs, 
                        authorities, or policies described in paragraph 
                        (2)(B);
                    (D) include recommendations to Congress for 
                legislation that would further--
                            (i) promote reductions in oil consumption 
                        and oil dependence;
                            (ii) reduce barriers to reducing oil 
                        consumption and oil dependence; and
                            (iii) help meet the energy policy goals of 
                        the United States;
                    (E) include a timetable for achieving the national 
                oil independence goal, including interim targets on not 
                less than a biennial basis;
                    (F) a plan for coordinating actions across the 
                Federal Government, including measures established 
                under this Act, to ensure, to the maximum extent 
                practicable, that the national oil independence goal is 
                met; and
                    (G) a timeline for issuing rules, Executive orders, 
                or other policy instruments that will implement the 
                recommendations contained the national oil independence 
                plan.
    (e) Annual Requests to Congress.--When submitting annual budget 
requests to Congress, the President shall include--
            (1) requests for sufficient funding for such programs as 
        are necessary to meet the national oil independence goal;
            (2) requests for additional authority or changes to 
        existing laws or authorities to implement the national oil 
        independence plan; and
            (3) a report on the oil consumption and imports of the 
        United States relative to the national oil independence goal 
        and the interim targets and timelines established in the 
        national oil independence plan.

SEC. 102. NATIONAL ENERGY SECURITY COUNCIL.

    (a) Establishment.--There is established in the Executive Office of 
the President a National Energy Security Council.
    (b) Mission.--The mission of the Council shall be to assist and 
advise the President in--
            (1) setting and meeting the national oil independence goal;
            (2) developing the national oil independence plan and the 
        requests described in section 101(e);
            (3) coordinating the policies, programs, and activities of 
        the Federal program in order to implement the national oil 
        independence plan and meet the national oil independence goal; 
        and
            (4) ensuring that policy decisions and programs are 
        consistent with the energy policy goals of the United States.
    (c) Membership.--The membership of the Council shall consist of--
            (1) the Secretary of Energy;
            (2) the Secretary of Transportation;
            (3) the Administrator;
            (4) the Director of the National Economic Council;
            (5) the Secretary of Commerce;
            (6) the Secretary of Labor;
            (7) the Secretary of Agriculture;
            (8) the Chair of the Council on Environmental Quality;
            (9) the Secretary of Housing and Urban Development;
            (10) the Secretary of State;
            (11) the Director of the Office of Management and Budget; 
        and
            (12) the Director of the Office of Science and Technology 
        Policy.
    (d) Chair.--The President shall act as Chair of the Council.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $8,000,000 for each fiscal year.

                     TITLE II--VEHICLE FUEL ECONOMY

SEC. 201. VEHICLE FUEL ECONOMY.

    (a) Light-Duty Vehicles.--The Secretary of Transportation, using 
the authority provided under section 32902 of title 49, United States 
Code, and the Administrator, using the authority provided under the 
Clean Air Act (42 U.S.C. 7401 et seq.), shall--
            (1) not later than 1 year after the date of enactment of 
        this Act, promulgate joint regulations establishing corporate 
        average fuel economy standards and greenhouse gas emissions 
        limitations for light-duty vehicles manufactured for each of 
        model years 2017 through 2030 to maximize reductions in oil 
        consumption and greenhouse gas emissions consistent with the 
        criteria under those authorities; and
            (2) every 3 years thereafter, update the standards and 
        limitations established under paragraph (1) for model years 
        that are not less than 4 years after the date of the update.
    (b) Medium- and Heavy-Duty Vehicles.--The Secretary of 
Transportation, using the authority provided under section 32902 of 
title 49, United States Code, and the Administrator, using the 
authority provided under the Clean Air Act (42 U.S.C. 7401 et seq.), 
shall--
            (1) not later than 18 months after the date of enactment of 
        this Act, promulgate joint regulations establishing corporate 
        average fuel economy standards and greenhouse gas emissions 
        limitations for medium- and heavy-duty vehicles manufactured 
        for each of model years 2017 through 2030 to maximize 
        reductions in oil consumption and greenhouse gas emissions 
        consistent with the criteria under those authorities; and
            (2) every 3 years thereafter, update the standards and 
        limitations established under paragraph (1) for model years 
        that are not less than 4 years after the date of the update.
    (c) Nonroad Vehicles.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary of Transportation, using 
        the authority provided under section 32902 of title 49, United 
        States Code, and the Administrator, using the authority 
        provided under the Clean Air Act (42 U.S.C. 7401 et seq.), 
        shall promulgate joint regulations establishing fuel economy 
        standards and greenhouse gas emissions limitations for nonroad 
        vehicles to maximize reductions in oil consumption and 
        greenhouse gas emissions.
            (2) Inclusions.--The nonroad vehicles described in 
        paragraph (1) shall include, at a minimum--
                    (A) airplanes and aviation vehicles;
                    (B) passenger and freight rail engines;
                    (C) boat and other marine engines; and
                    (D) off-highway construction vehicles.
            (3) Effective date.--The standards and limitations 
        established under paragraph (1) shall take effect not earlier 
        than 2 years after the date on which the applicable regulations 
        are promulgated.
            (4) Updates.--The Secretary of Transportation and the 
        Administrator shall establish a timeline for updating the 
        standards and limitations established under paragraph (1) to 
        maximize reductions in oil consumption and greenhouse gas.

                 TITLE III--ELECTRIC VEHICLE DEPLOYMENT

SEC. 301. FINDINGS.

    Congress finds that--
            (1) the United States is the largest consumer of petroleum 
        in the world, consuming 19,500,000 barrels per day of petroleum 
        products during 2008;
            (2) high and volatile international oil prices represent a 
        significant and ongoing threat to the economic and national 
        security of the United States;
            (3) many of the nations on which the United States relies 
        for petroleum supplies or that significantly affect the world 
        petroleum market share neither the national interest nor the 
        values of the United States;
            (4) the United States imports more than 50 percent of the 
        petroleum needs of the country each day;
            (5) in 2008, the net deficit of the United States in 
        petroleum trade amounted to more than $380,000,000,000, or 
        nearly 60 percent of the total trade deficit;
            (6) the transportation sector of the United States accounts 
        for over \2/3\ of total national petroleum consumption and is 
        94 percent reliant on petroleum;
            (7) the electrification of the light-duty vehicle fleet 
        represents a direct pathway to significant reduction in 
        petroleum dependence, because passenger cars and light trucks 
        account for more than 60 percent of the transportation 
        petroleum demand and more than 40 percent of total petroleum 
        demand in the United States;
            (8) the electrification of the light-duty vehicle fleet 
        promotes national energy security because the electric power 
        sector uses a diverse range of domestic electricity generation 
        sources;
            (9) electric drive cars, when running on electric power, 
        produce no tailpipe emissions;
            (10) the deployment of 700,000 plug-in electric drive 
        vehicles would result in a petroleum savings of approximately 
        10,000,000 barrels per year compared to the annual petroleum 
        consumption as of the date of enactment of this Act;
            (11) in 2030, the United States could feasibly deploy more 
        than 100,000,000 plug-in electric drive vehicles, which would 
        result in a petroleum savings of more than 1,000,000,000 
        barrels of petroleum per year and greenhouse gas reductions of 
        over 300,000,000 tons of carbon dioxide compared to the annual 
        petroleum consumption and greenhouse gas emissions as of the 
        date of enactment of this Act; and
            (12) a targeted deployment program for plug-in electric 
        drive vehicles that is focused on competitively selected 
        deployment communities--
                    (A) represents the best opportunity to introduce 
                plug-in electric drive vehicles to the market; and
                    (B) with the information learned from the 
                deployment communities, will--
                            (i) inform best practices for the wide-
                        scale deployment of plug-in electric drive 
                        vehicles; and
                            (ii) substantially reduce the oil 
                        consumption of the United States.

SEC. 302. DEFINITIONS.

    In this title:
            (1) Agency.--The term ``agency'' has the meaning given the 
        term ``Executive agency'' in section 105 of title 5, United 
        States Code.
            (2) Charging infrastructure.--The term ``charging 
        infrastructure'' means any property (not including a building 
        or the structural components of a building) if the property is 
        used for the recharging of motor vehicles propelled by 
        electricity, including electrical panel upgrades, wiring, 
        conduit, trenching, pedestals, and related equipment.
            (3) Committee.--The term ``Committee'' means the Plug-in 
        Electric Drive Vehicle Technical Advisory Committee established 
        by section 312.
            (4) Deployment community.--The term ``deployment 
        community'' means a community selected by the Secretary to be 
        part of the targeted plug-in electric drive vehicles deployment 
        communities program under section 304.
            (5) Electric drive vehicle.--The term ``electric drive 
        vehicle'' means a vehicle that--
                    (A)(i) is--
                            (I) a light-duty vehicle (as the term is 
                        defined in section 86.1803-01 of title 40, Code 
                        of Federal Regulations, as in effect as of the 
                        date of enactment of this Act) that draws 
                        motive power from a battery with a capacity of 
                        at least 4 kilowatt-hours;
                            (II) a heavy-duty vehicle (as the term is 
                        defined in section 86.1803-01 of title 40, Code 
                        of Federal Regulations, as in effect as of the 
                        date of enactment of this Act) with a gross 
                        vehicle weight rating greater than 8,500 pounds 
                        and less than 14,000 pounds that draws motive 
                        power from a battery with a capacity of at 
                        least 8 kilowatt-hours;
                            (III) a heavy-duty vehicle (as the term is 
                        defined in section 86.1803-01 of title 40, Code 
                        of Federal Regulations, as in effect as of the 
                        date of enactment of this Act) with a gross 
                        vehicle weight rating greater than 14,000 
                        pounds and less than 33,000 pounds that draws 
                        motive power from a battery with a capacity of 
                        at least 15 kilowatt-hours; or
                            (IV) a heavy-duty vehicle (as the term is 
                        defined in section 86.1803-01 of title 40, Code 
                        of Federal Regulations, as in effect as of the 
                        date of enactment of this Act) with a gross 
                        vehicle weight rating greater than 33,000 
                        pounds that draws motive power from a battery 
                        with a capacity of at least 20 kilowatt-hours; 
                        and
                    (ii) can be recharged from an external source of 
                electricity for motive power; or
                    (B) is a motor vehicle (as the term is defined in 
                section 216 of the Clean Air Act (42 U.S.C. 7550)) that 
                draws motive power from a fuel cell (as the term is 
                defined in section 803 of the Spark M. Matsunaga 
                Hydrogen Act of 2005 (42 U.S.C. 16152)).
            (6) Electric utility.--The term ``electric utility'' has 
        the meaning given the term in section 3 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2602).
            (7) Federal-aid system of highways.--The term ``Federal-aid 
        system of highways'' means a highway system described in 
        section 103 of title 23, United States Code.
            (8) Plug-in electric drive vehicle.--
                    (A) In general.--The term ``plug-in electric drive 
                vehicle'' has the meaning given the term in section 
                131(a)(5) of the Energy Independence and Security Act 
                of 2007 (42 U.S.C. 17011(a)(5)).
                    (B) Inclusions.--The term ``plug-in electric drive 
                vehicle'' includes--
                            (i) a low speed plug-in electric drive 
                        vehicles that meet the Federal Motor Vehicle 
                        Safety Standards described in section 571.500 
                        of title 49, Code of Federal Regulations (or 
                        successor regulations); and
                            (ii) any other motor vehicles that can be 
                        recharged from an external source of motive 
                        power and that is authorized to travel on the 
                        Federal-aid system of highways.
            (9) Prize.--The term ``Prize'' means the Advanced Batteries 
        for Tomorrow Prize established by section 309.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (11) Task force.--The term ``Task Force'' means the Plug-in 
        Electric Drive Vehicle Interagency Task Force established by 
        section 313.

SEC. 303. NATIONAL ELECTRIC DRIVE VEHICLE DEPLOYMENT PROGRAM.

    (a) In General.--There is established within the Department of 
Energy a national electric drive vehicle deployment program.
    (b) National Plan.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall develop a national 
        plan for electric drive vehicle deployment that includes--
                    (A) an assessment of the maximum feasible 
                deployment of plug-in electric drive vehicles by 2020 
                and 2030;
                    (B) the establishment of national goals for market 
                penetration of plug-in electric drive vehicles by 2020 
                and 2030;
                    (C) a plan for using the successes and barriers to 
                deployment identified by the deployment communities 
                program established under section 304 to prepare 
                communities across the nation for the rapid deployment 
                of plug-in electric drive vehicles that includes--
                            (i) measures that communities not selected 
                        as deployment communities should implement to 
                        prepare for electric drive vehicle deployment; 
                        and
                            (ii) any recommendations to the President 
                        or Congress on the manner in which the Federal 
                        Government can assist communities not selected 
                        as deployment communities in preparing for 
                        electric vehicle deployment--
                                    (I) to support national plug-in 
                                electric drive vehicle deployment; and
                                    (II) to benefit from the lessons 
                                learned by targeted electric drive 
                                vehicle deployment communities;
                    (D) a plan for providing technical assistance to 
                communities across the United States to prepare for 
                plug-in electric drive vehicle deployment; and
                    (E) in consultation with the Task Force, any 
                recommendations to the President and to Congress for 
                changes in Federal programs (including laws, 
                regulations, and guidelines)--
                            (i) to better promote the deployment of 
                        plug-in electric drive vehicles; and
                            (ii) to reduce barriers to the deployment 
                        of plug-in electric drive vehicles.
            (2) Updates.--The Secretary shall use market data and 
        information from the targeted electric drive vehicle deployment 
        communities program established under section 304 to regularly 
        update the plan to reflect real world market conditions.
    (c) Technical Assistance.--
            (1) In general.--In carrying out this section, the 
        Secretary shall provide, at the request of the applicable local 
        elected official, technical assistance to communities to assist 
        with the deployment of plug-in electric drive vehicles.
            (2) Priority.--In providing technical assistance under this 
        subsection, the Secretary shall give priority to--
                    (A) communities that--
                            (i) applied to participate in the program 
                        described in section 304 but were not selected 
                        to be deployment communities; and
                            (ii) submitted applications that were 
                        evaluated as the most worthy of selection based 
                        on criteria established by the Secretary;
                    (B) communities that have established the most 
                engaged partnerships among stakeholders, including, at 
                a minimum--
                            (i) elected and appointed officials from 
                        each of the participating State, local, and 
                        tribal governments;
                            (ii) all relevant generators and 
                        distributors of electricity;
                            (iii) public utility commissions;
                            (iv) departments of public works and 
                        transportation;
                            (v) owners and operators of property that 
                        will be essential to the deployment of a 
                        sufficient level of publicly available charging 
                        infrastructure (including privately owned 
                        parking lots or structures);
                            (vi) plug-in electric drive vehicle 
                        manufacturers or retailers;
                            (vii) third-party providers of charging 
                        infrastructure or services;
                            (viii) owners of any major fleet that will 
                        participate in the program;
                            (ix) as appropriate, owners and operators 
                        of regional electric power distribution and 
                        transmission facilities; and
                            (x) other existing community coalitions 
                        recognized by the Department of Energy; and
                    (C) communities that have best demonstrated that 
                the public is likely to embrace plug-in electric drive 
                vehicles.
    (d) Report.--The Secretary shall submit biennially to the 
appropriate committees of Congress a report on the progress made in 
implementing the national plan described in subsection (b) that 
includes--
            (1) a description of the progress made by the technical 
        assistance program under subsection (c); and
            (2) any updated recommendations of the Secretary for 
        changes in Federal programs to promote the purposes of this 
        section.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for fiscal years 
2011 through 2016.

SEC. 304. TARGETED ELECTRIC DRIVE VEHICLE DEPLOYMENT COMMUNITIES 
              PROGRAM.

    (a) Establishment.--
            (1) In general.--There is established within the national 
        electric drive deployment program established under section 303 
        a targeted electric drive vehicle deployment communities 
        program (referred to in this section as the ``Program'').
            (2) Phase 1.--
                    (A) In general.--The Secretary shall establish a 
                competitive process to select at least 5 and not more 
                than 15 phase 1 deployment communities for the Program.
                    (B) Eligible entities.--In selecting participants 
                for the Program under paragraph (1), the Secretary 
                shall only consider applications submitted by State, 
                tribal, or local government entities (or groups of 
                State, tribal, or local government entities).
                    (C) Selection.--Not later than 1 year after the 
                date of enactment of this Act, the Secretary shall 
                select the phase 1 deployment communities under this 
                paragraph.
                    (D) Termination.--Phase 1 of the Program shall be 
                carried out for a 5-year period beginning on the date 
                funding under this title is first provided to the 
                deployment community.
            (3) Phase 2.--Not later than 5 years after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        report that analyzes the success of phase I and, if, based on 
        the phase I analysis, the Secretary determines that a phase II 
        program is warranted, makes recommendations and describes a 
        plan for phase II, including--
                    (A) recommendations regarding--
                            (i) the number of additional deployment 
                        communities that should be selected;
                            (ii) the manner in which criteria for 
                        selection should be updated;
                            (iii) the manner in which incentive 
                        structures for phase 2 deployment should be 
                        changed; and
                            (iv) whether other forms of onboard energy 
                        storage for electric drive vehicles should be 
                        included in phase 2; and
                    (B) a request for appropriations to implement phase 
                2 of the Program.
    (b) Goals.--The goals of the Program are--
            (1) to facilitate the rapid deployment of plug-in electric 
        drive vehicles, including--
                    (A) the deployment of 700,000 plug-in electric 
                drive vehicles in phase 1 in the deployment communities 
                selected under paragraph (2);
                    (B) the near-term achievement of significant market 
                penetration in deployment communities; and
                    (C) the achievement of significant market 
                penetration nationally;
            (2) to establish models for the rapid deployment of plug-in 
        electric drive vehicles nationally, including for the 
        deployment of residential and publicly available charging 
        infrastructure;
            (3) to increase consumer knowledge and acceptance of plug-
        in electric drive vehicles;
            (4) to encourage the innovation and investment necessary to 
        achieve mass market deployment of plug-in electric drive 
        vehicles;
            (5) to demonstrate the integration of plug-in electric 
        drive vehicles into electricity distribution systems and the 
        larger electric grid while maintaining grid system performance 
        and reliability;
            (6) to demonstrate protocols and communication standards 
        that facilitate vehicle integration into the grid and provide 
        seamless charging for consumers traveling through multiple 
        utility distribution systems;
            (7) to investigate differences among deployment communities 
        and to develop best practices for implementing vehicle 
        electrification in various communities, including best 
        practices for planning for and facilitating the construction of 
        residential and publicly available infrastructure to support 
        plug-in electric drive vehicles;
            (8) to collect comprehensive data on the purchase and use 
        of plug-in electric vehicles to inform best practices for 
        rapidly deploying plug-in electric drive vehicles in other 
        locations, including for the installation of charging 
        infrastructure; and
            (9) to reduce and displace petroleum use and reduce 
        greenhouse gas emissions by accelerating the deployment of 
        plug-in electric drive vehicles in the United States.
    (c) Phase 1 Deployment Community Selection Criteria.--
            (1) In general.--The Secretary shall ensure, to the maximum 
        extent practicable, that selected deployment communities in 
        phase 1 serve as models of deployment for various communities 
        across the United States.
            (2) Selection.--In selecting communities under this 
        section, the Secretary--
                    (A) shall ensure, to the maximum extent 
                practicable, that--
                            (i) the combination of selected communities 
                        is diverse in population, demographics, urban 
                        and suburban composition, typical commuting 
                        patterns, climate, type of utility (including 
                        regulated, municipal, cooperative, and 
                        vertically integrated utilities), and 
                        geography;
                            (ii) at least 1 community selected has a 
                        population of less than 125,000;
                            (iii) each deployment community will 
                        achieve significant market penetration; and
                            (iv) the deployment communities present a 
                        strong opportunity for replication in other 
                        communities across the United States;
                    (B) is encouraged to select a combination of 
                deployment communities that includes multiple models or 
                approaches for deploying plug-in electric drive 
                vehicles that the Secretary believes are reasonably 
                likely to be effective, including multiple approaches 
                to the deployment of charging infrastructure; and
                    (C) in addition to the criteria described in 
                subparagraph (A), may give preference to applicants 
                proposing a greater non-Federal cost share.
            (3) Criteria.--
                    (A) In general.--Not later than 120 days after the 
                date of enactment of this Act, the Secretary shall 
                publish criteria for the selection of deployment 
                communities that include requirements that applications 
                be submitted by a State, tribal, or local government 
                entity (or groups of State, tribal, or local government 
                entities).
                    (B) Application requirements.--The criteria 
                published by the Secretary under subparagraph (A) shall 
                include application requirements that, at a minimum, 
                include--
                            (i) goals for--
                                    (I) the number of plug-in electric 
                                drive vehicles to be deployed in the 
                                community;
                                    (II) the expected percentage of 
                                light-duty vehicle sales that would be 
                                sales of plug-in electric drive 
                                vehicles; and
                                    (III) the adoption of plug-in 
                                electric drive vehicles (including 
                                medium- or heavy-duty vehicles) in 
                                private and public fleets during the 5-
                                year duration of the Program;
                            (ii) evidence that--
                                    (I) the public is likely to embrace 
                                plug-in electric drive vehicles; and
                                    (II) automobile manufacturers and 
                                dealers will be able to provide and 
                                service the targeted number of plug-in 
                                electric drive vehicles in the 
                                community for the duration of the 
                                program;
                            (iii) clearly defined geographic boundaries 
                        of the proposed deployment area;
                            (iv) a community deployment plan for the 
                        deployment of plug-in electric drive vehicles, 
                        charging infrastructure, and services in the 
                        deployment community;
                            (v) assurances that a majority of the 
                        vehicle deployments anticipated in the plan 
                        will be for personal vehicles authorized to 
                        travel on the United States Federal-aid system 
                        of highways, but may also include--
                                    (I) private or public sector plug-
                                in electric drive fleet vehicles;
                                    (II) medium- and heavy-duty hybrid 
                                vehicles;
                                    (III) low speed plug-in electric 
                                drive vehicles that meet Federal Motor 
                                Vehicle Safety Standards described in 
                                section 571.500 of title 49, Code of 
                                Federal Regulations; and
                                    (IV) any other plug-in electric 
                                drive vehicle authorized to travel on 
                                the United States Federal-aid system of 
                                highways; and
                            (vi) any other merit-based criteria, as 
                        determined by the Secretary.
            (4) Community deployment plans.--Plans for the deployment 
        of plug-in electric drive vehicles shall include--
                    (A) a proposed level of cost sharing in accordance 
                with subsection (d)(2)(C);
                    (B) documentation demonstrating a substantial 
                partnership with relevant stakeholders, including--
                            (i) a list of stakeholders that includes--
                                    (I) elected and appointed officials 
                                from each of the participating State, 
                                local, and tribal governments;
                                    (II) all relevant generators and 
                                distributors of electricity;
                                    (III) State utility regulatory 
                                authorities;
                                    (IV) departments of public works 
                                and transportation;
                                    (V) owners and operators of 
                                property that will be essential to the 
                                deployment of a sufficient level of 
                                publicly available charging 
                                infrastructure (including privately 
                                owned parking lots or structures);
                                    (VI) plug-in electric drive vehicle 
                                manufacturers or retailers;
                                    (VII) third-party providers of 
                                charging infrastructure or services;
                                    (VIII) owners of any major fleet 
                                that will participate in the program;
                                    (IX) as appropriate, owners and 
                                operators of regional electric power 
                                distribution and transmission 
                                facilities; and
                                    (X) as appropriate, other existing 
                                community coalitions recognized by the 
                                Department of Energy;
                            (ii) evidence of the commitment of the 
                        stakeholders to participate in the partnership;
                            (iii) a clear description of the role and 
                        responsibilities of each stakeholder; and
                            (iv) a plan for continuing the engagement 
                        and participation of the stakeholders, as 
                        appropriate, throughout the implementation of 
                        the deployment plan;
                    (C) a description of the number of plug-in electric 
                drive vehicles anticipated to be plug-in electric drive 
                personal vehicles and the number of plug-in electric 
                drive vehicles anticipated to be privately owned fleet 
                or public fleet vehicles;
                    (D) a plan for deploying residential and publicly 
                available charging infrastructure, including--
                            (i) an assessment of the number of 
                        consumers who will have access to private 
                        residential charging infrastructure;
                            (ii) an approach for accommodating 
                        residents who are not able to charge vehicles 
                        at the place of residence;
                            (iii) a plan for ensuring that the charging 
                        infrastructure be able to send and receive the 
                        information needed to interact with the grid 
                        and be compatible with smart grid technologies 
                        to the extent appropriate;
                            (iv) an estimate of how many charging 
                        stations will be needed and where to locate the 
                        stations;
                            (v) a plan for how much publicly available 
                        charging infrastructure will be privately 
                        funded or located on private property; and
                            (vi) a description of equipment to be 
                        deployed, including assurances that, to the 
                        maximum extent practicable, equipment to be 
                        deployed will meet open, nonproprietary 
                        standards for connecting to plug-in electric 
                        drive vehicles that are either--
                                    (I) commonly accepted by industry 
                                at the time the equipment is being 
                                acquired; or
                                    (II) meet the standards developed 
                                by the Director of the National 
                                Institute of Standards and Technology 
                                under section 1305 of the Energy 
                                Independence and Security Act of 2007 
                                (42 U.S.C. 17385);
                    (E) a plan for effective marketing of plug-in 
                electric drive vehicles, charging services, and 
                infrastructure;
                    (F) descriptions of updated building codes (or a 
                plan to update building codes before or during the 
                grant period) to include charging infrastructure or 
                dedicated circuits for charging infrastructure, as 
                appropriate, in new construction and major renovations;
                    (G) descriptions of updated construction permitting 
                or inspection processes (or a plan to update 
                construction permitting or inspection processes) to 
                allow for expedited installation of charging 
                infrastructure for purchasers of plug-in electric drive 
                vehicles, including a permitting process that allows a 
                vehicle purchaser to have charging infrastructure 
                installed within 3 business days;
                    (H) descriptions of updated zoning, parking rules, 
                or other local ordinances as are necessary to 
                facilitate the installation of publicly available 
                charging infrastructure and to allow for access to 
                publicly available charging infrastructure, as 
                appropriate;
                    (I) additional incentives, beyond those established 
                by this title, for the purchasers of plug-in electric 
                drive vehicles, including rebates or reductions in 
                sales taxes or registration fees, preferred parking 
                spaces, and single rider access to high occupancy 
                vehicle lanes for plug-in electric drive vehicles;
                    (J) additional incentives, beyond those established 
                by this title, for the installation of charging 
                infrastructure;
                    (K) a proposed plan for making necessary utility 
                and grid upgrades, including economically sound 
                information technology upgrades and a plan for 
                recovering the cost of the upgrades;
                    (L) a description of utility, grid operator, or 
                third-party charging service provider, policies and 
                plans for accommodating the deployment of plug-in 
                electric drive vehicles, including--
                            (i) rate structures or provisions and 
                        billing protocols for the charging of plug-in 
                        electric drive vehicles, including, as 
                        appropriate--
                                    (I) accommodation for billing for--
                                            (aa) charging at a place of 
                                        residence and at publicly 
                                        available charging 
                                        infrastructure; and
                                            (bb) vehicle owners who 
                                        cannot charge at home by virtue 
                                        of the nature of their 
                                        residence; and
                                    (II) rate structures or provisions 
                                that benefit consumers by 
                                facilitating--
                                            (aa) charging off-peak 
                                        rates;
                                            (bb) load management 
                                        strategies that optimize 
                                        reliable and economical 
                                        operation of the grid;
                                            (cc) utilities, grid 
                                        operators, or third-party 
                                        charging services to draw 
                                        battery charge for use on the 
                                        grid; or
                                            (dd) the offer of other 
                                        benefits to the utility system 
                                        or the grid;
                            (ii) analysis of potential impacts to the 
                        grid;
                            (iii) plans for using information 
                        technology or third-party aggregators to 
                        minimize the effects of charging on peak loads;
                            (iv) plans for working with smart grid 
                        technologies or third-party aggregators for the 
                        purposes of smart charging and for allowing 2-
                        way communication and electricity movement; and
                            (v) plans for anticipating vehicle-to-grid 
                        applications that will allow batteries in cars 
                        as well as banks of batteries to be used for 
                        grid storage, ancillary services provision, and 
                        backup power;
                    (M) a deployment timeline;
                    (N) a plan for monitoring and evaluating the 
                implementation of the plan, including metrics for 
                assessing the success of the deployment and an approach 
                to updating the plan, as appropriate; and
                    (O) a description of the manner in which any grant 
                funds applied for under subsection (d) will be used and 
                the proposed local cost share for the funds.
    (d) Phase 1 Applications and Grants.--
            (1) In general.--Not later than 120 days after the date of 
        publication by the Secretary of the selection criteria 
        described in subsection (c)(3), any State, tribe, or local 
        government, or group of State, tribe, or local governments may 
        apply to the Secretary to become a deployment community.
            (2) Grants.--
                    (A) In general.--In each application, the applicant 
                may request up to $250,000,000 in financial assistance 
                from the Secretary to fund projects in the deployment 
                community.
                    (B) Use of funds.--Funds provided through a grant 
                under this paragraph may be used to help implement the 
                plan for the deployment of plug-in electric drive 
                vehicles included in the application, including--
                            (i) planning for and installing charging 
                        infrastructure, including offering additional 
                        incentives as described in subsection 
                        (c)(4)(J);
                            (ii) updating building codes, zoning or 
                        parking rules, or permitting or inspection 
                        processes as described in subparagraphs (F), 
                        (G), and (H) of subsection (c)(4);
                            (iii) reducing the cost and increasing the 
                        consumer adoption of plug-in electric drive 
                        vehicles through incentives as described in 
                        subsection (c)(4)(I);
                            (iv) workforce training, including training 
                        of permitting officials;
                            (v) public education described in the 
                        proposed marketing plan; and
                            (vi) shifting State, tribal, or local 
                        government fleets to plug-in electric drive 
                        vehicles, at a rate in excess of the existing 
                        Federal alternative fleet vehicle requirements.
                    (C) Cost-sharing.--
                            (i) In general.--A grant provided under 
                        this paragraph shall be subject to a minimum 
                        non-Federal cost-sharing requirement of 20 
                        percent.
                            (ii) Non-federal sources.--The Secretary 
                        shall--
                                    (I) determine the appropriate cost 
                                share for each selected applicant; and
                                    (II) require that not less than 20 
                                percent of the cost of an activity 
                                funded by a grant under this paragraph 
                                be provided by a non-Federal source.
                            (iii) Reduction.--The Secretary may reduce 
                        or eliminate the cost-sharing requirement 
                        described in clause (i), as the Secretary 
                        determines to be necessary.
                            (iv) Calculation of amount.--In calculating 
                        the amount of the non-Federal share under this 
                        section, the Secretary--
                                    (I) may include allowable costs in 
                                accordance with the applicable cost 
                                principles, including--
                                            (aa) cash;
                                            (bb) personnel costs;
                                            (cc) the value of a 
                                        service, other resource, or 
                                        third party in-kind 
                                        contribution determined in 
                                        accordance with the applicable 
                                        circular of the Office of 
                                        Management and Budget;
                                            (dd) indirect costs or 
                                        facilities and administrative 
                                        costs; or
                                            (ee) any funds received 
                                        under the power program of the 
                                        Tennessee Valley Authority or 
                                        any Power Marketing 
                                        Administration (except to the 
                                        extent that such funds are made 
                                        available under an annual 
                                        appropriation Act);
                                    (II) shall include contributions 
                                made by State, tribal, or local 
                                government entities and private 
                                entities; and
                                    (III) shall not include--
                                            (aa) revenues or royalties 
                                        from the prospective operation 
                                        of an activity beyond the time 
                                        considered in the grant, unless 
                                        from a qualified electric drive 
                                        vehicle refueling property bond 
                                        (as defined in section 54G(a) 
                                        of the Internal Revenue Code of 
                                        1986);
                                            (bb) proceeds from the 
                                        prospective sale of an asset of 
                                        an activity; or
                                            (cc) other appropriated 
                                        Federal funds.
                            (v) Repayment of federal share.--The 
                        Secretary shall not require repayment of the 
                        Federal share of a cost-shared activity under 
                        this section as a condition of providing a 
                        grant.
                            (vi) Title to property.--The receipt of 
                        Federal funds under this section shall not 
                        prohibit the purchaser of a vehicle, equipment, 
                        or other property from retaining sole, 
                        permanent title to the vehicle, equipment, or 
                        property at the conclusion of the program.
            (3) Selection.--Not later than 120 days after the 
        application deadline established under paragraph (1), the 
        Secretary shall announce the names of the deployment 
        communities selected under this subsection.
    (e) Reporting Requirements.--
            (1) In general.--The Secretary, in consultation with the 
        Committee, shall--
                    (A) determine what data will be required to be 
                collected by participants in deployment communities and 
                submitted to the Department to allow for analysis of 
                the deployment communities; and
                    (B) develop metrics to determine the success of the 
                deployment communities.
            (2) Provision of data.--As a condition of participation in 
        the Program, a deployment community shall provide any data 
        identified by the Secretary under paragraph (1).
            (3) Reports.--Not later than 3 years after the date of 
        enactment of this Act and again after the completion of the 
        Program, the Secretary shall submit to Congress a report that 
        contains--
                    (A) a description of the status of--
                            (i) the deployment communities and the 
                        implementation of the deployment plan of each 
                        deployment community;
                            (ii) the rate of vehicle manufacturing 
                        deployment and market penetration of plug-in 
                        electric drive vehicles; and
                            (iii) the deployment of residential and 
                        publicly available infrastructure;
                    (B) a description of the challenges experienced and 
                lessons learned from the program to date, including the 
                activities described in subparagraph (A); and
                    (C) an analysis of the data collected under this 
                subsection.
    (f) Information Clearinghouse.--The Secretary shall make available 
to the public, in a timely manner, information regarding the cost, 
performance, usage data, and technical data regarding the deployment 
and integration of plug-in electric drive vehicles in the deployment 
communities.
    (g) Proprietary Information.--The Secretary shall, as appropriate, 
provide for the protection of proprietary information and intellectual 
property rights.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,002,000,000.
    (i) Conforming Amendment.--Section 166(b)(5) of title 23, United 
States Code, is amended--
            (1) in subparagraph (A), by striking ``Before September 30, 
        2009, the State'' and inserting ``The State''; and
            (2) in subparagraph (B), by striking ``Before September 30, 
        2009, the State'' and inserting ``The State''.

SEC. 305. MODIFICATIONS TO TAX CREDITS.

    (a) Credit for New Qualified Plug-In Electric Drive Motor 
Vehicles.--
            (1) Transferability.--
                    (A) In general.--Subsection (c) of section 30D of 
                the Internal Revenue Code of 1986 is amended by adding 
                at the end the following new paragraph:
            ``(3) Refundable personal credit.--
                    ``(A) In general.--For purposes of this title, in 
                the case of a qualified deployment community taxpayer, 
                the credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1) and 
                without regard to paragraph (2)(B)) shall be treated as 
                a credit allowable under subpart C for such taxable 
                year (and not allowed under subsection (a)), and 
                paragraph (2) shall not apply to such credit.
                    ``(B) Qualified deployment community taxpayer.--For 
                purposes of subparagraph (A), the term `qualified 
                deployment community taxpayer' means a taxpayer--
                            ``(i) who purchases a new qualified plug-in 
                        electric drive motor vehicle to which paragraph 
                        (1) does not apply, and
                            ``(ii) who resides within, and registers 
                        such vehicle in, a deployment community 
                        selected by the Secretary under the Targeted 
                        Electric Vehicles Deployment Communities 
                        Program established by the `Oil Independence 
                        for a Stronger America Act of 2010'.
                For purposes of the preceding sentence, such a 
                deployment community shall only be treated as a 
                deployment community after the date on which such 
                community is so selected (without regard to the date on 
                which any funds under such Act are provided with 
                respect to such community) and before the date on which 
                Phase 1 of such program terminates.
                    ``(C) Refundable credit may be transferred.--
                            ``(i) In general.--A qualified deployment 
                        community taxpayer may, in connection with the 
                        purchase of a new qualified plug-in electric 
                        drive motor vehicle, transfer any refundable 
                        credit described in subparagraph (A)--
                                    ``(I) to any person who is in the 
                                trade or business of selling new 
                                qualified plug-in electric drive motor 
                                vehicles and who sold such vehicle to 
                                the taxpayer, or
                                    ``(II) to any person who is in the 
                                trade or business of financing the 
                                sales of new qualified plug-in electric 
                                drive motor vehicles and who financed 
                                the taxpayer's purchase of such 
                                vehicle.
                            ``(ii) Disclosure.--A qualified deployment 
                        community taxpayer may transfer a refundable 
                        credit described in subparagraph (A) to a 
                        person described in clause (i)(I) only if such 
                        person clearly discloses to such taxpayer, 
                        through the use of a window sticker attached to 
                        the new qualified plug-in electric drive motor 
                        vehicle--
                                    ``(I) the amount of the refundable 
                                credit described in subparagraph (A) 
                                with respect to such vehicle, and
                                    ``(II) a notification that the 
                                taxpayer will not be eligible for any 
                                credit under any other section of this 
                                title with respect to such vehicle 
                                unless the taxpayer elects not to have 
                                this section apply with respect to such 
                                vehicle.
                            ``(iii) Certification.--A transferee of a 
                        refundable credit described in subparagraph (A) 
                        may not claim such credit unless such claim is 
                        accompanied by a certification to the Secretary 
                        that the transferee reduced the price the 
                        taxpayer paid or the balance due to the 
                        financier, whichever is applicable, for the new 
                        qualified plug-in electric drive motor vehicle 
                        by the entire amount of such refundable credit.
                            ``(iv) Consent required for revocation.--
                        Any transfer under clause (i) may be revoked 
                        only with the consent of the Secretary.
                            ``(v) Special rule for bulk purchasers.--A 
                        qualified deployment community taxpayer who 
                        purchases 10 or more new qualified plug-in 
                        electric drive motor vehicles during the 
                        taxable year may transfer a refundable credit 
                        described in subparagraph (A) to any person.
                            ``(vi) Regulations.--The Secretary may 
                        prescribe such regulations as necessary--
                                    ``(I) to ensure that any refundable 
                                credit described in clause (i) is 
                                claimed once and not retransferred by a 
                                transferee, and
                                    ``(II) to provide a mechanism by 
                                which the transferee may claim and 
                                receive the credit within 3 months of 
                                the sale of the new qualified plug-in 
                                electric drive motor vehicle.''.
                    (B) Display of credit information.--Section 
                32908(b)(1) of title 49, United States Code, is 
                amended--
                            (i) by redesignating subparagraphs (E) and 
                        (F) as subparagraphs (F) and (G), and
                            (ii) by inserting after subparagraph (D) 
                        the following new subparagraph:
                    ``(E) the amount of the new qualified plug-in 
                electric drive motor vehicle credit allowable with 
                respect to the sale of the automobile under section 30D 
                of the Internal Revenue Code of 1986 (26 U.S.C. 
                30D).''.
            (2) Increased credit for taxpayers in deployment 
        communities.--Subsection (f) of section 30D of such Code is 
        amended by adding at the end the following new paragraph:
            ``(8) Increased credit for taxpayers in deployment 
        communities.--In the case of a qualified deployment community 
        taxpayer (within the meaning of subsection (c)(3)(B)), 
        subsection (b)(2) shall be applied by substituting `$5,000' for 
        `$2,500'.''.
            (3) Increased per manufacturer cap.--Paragraph (2) of 
        section 30(D)(e) of such Code is amended by striking 
        ``200,000'' and inserting ``300,000''.
            (4) Extension and modification of new qualified hybrid 
        motor vehicle credit.--
                    (A) Extension.--Paragraph (3) of section 30B(k) of 
                such Code is amended by striking ``December 31, 2009'' 
                and inserting ``December 31, 2016''.
                    (B) Qualified incremental hybrid cost.--Clause 
                (iii) of section 30B(d)(2)(B) of such Code is amended 
                by striking ``does not exceed--'' and all that follows 
                and inserting ``does not exceed--
                                    ``(I) $15,000, if such vehicle has 
                                a gross vehicle weight rating of not 
                                more than 14,000 pounds,
                                    ``(II) $30,000, if such vehicle has 
                                a gross vehicle weight rating of more 
                                than 14,000 pounds but not more than 
                                26,000 pounds,
                                    ``(III) $60,000, if such vehicle 
                                has a gross vehicle weight rating of 
                                more than 26,000 pounds but not more 
                                than 33,000 pounds, and
                                    ``(IV) $100,000, if such vehicle 
                                has a gross vehicle weight rating of 
                                more than 33,000 pounds.''.
                    (C) Applicable percentage for heavy trucks 
                achieving 20 percent increase in city fuel economy.--
                Clause (ii) of section 30B(d)(2)(B) of such Code is 
                amended by redesignating subclauses (I), (II), and 
                (III) as subclauses (II), (III), and (IV), 
                respectively, and by inserting before subclause (II) 
                (as so redesignated) the following new subclause:
                                    ``(I) 10 percent in the case of a 
                                vehicle to which clause (iii)(IV) 
                                applies if such vehicle achieves an 
                                increase in city fuel economy relative 
                                to a comparable vehicle of at least 20 
                                percent but less than 30 percent.''.
                    (D) Dollar limitation.--Subparagraph (B) of section 
                30B(d)(2) of such Code is amended by adding at the end 
                the following new clause:
                            ``(vi) Limitation.--The amount allowed as a 
                        credit under subsection (a)(3) with respect to 
                        a vehicle by reason of clause (i) of this 
                        subparagraph shall not exceed $24,000.''.
                    (E) Heavy electric vehicles.--Paragraph (3) of 
                section 30B(d) of such Code is amended by redesignating 
                subparagraphs (B), (C), and (D) as subparagraphs (C), 
                (D), and (E), respectively, and by inserting after 
                subparagraph (A) the following new subparagraph:
                    ``(B) Heavy electric vehicles.--In the case of a 
                vehicle with a gross vehicle weight rating of not less 
                than 8,500 pounds, the term `new qualified hybrid motor 
                vehicle' includes a motor vehicle--
                            ``(i) which draws propulsion energy 
                        exclusively from a rechargeable energy storage 
                        system, and
                            ``(ii) which meets the requirements of 
                        clauses (iii), (v), (vi), and (vii) of 
                        subparagraph (A).''.
                    (F) Credits may be transferred.--Subsection (d) of 
                section 30B of such Code is amended by adding at the 
                end the following new paragraph:
            ``(4) Transferability of credit.--
                    ``(A) In general.--A taxpayer who places in service 
                any vehicle may transfer the credit allowed under this 
                subsection with respect to such vehicle through an 
                assignment to the seller of such vehicle. Such transfer 
                may be revoked only with the consent of the Secretary.
                    ``(B) Regulations.--The Secretary shall prescribe 
                such regulations as necessary to ensure that any credit 
                transferred under subparagraph (A) is claimed once and 
                not reassigned by such other person.''.
    (b) Credit for Alternative Fuel Vehicle Refueling Property.--
            (1) Extension of increased credit for electricity.--
                    (A) In general.--Paragraph (6) of section 30C(e) of 
                the Internal Revenue Code of 1986 is amended--
                            (i) by striking ``during 2009 and 2010'' in 
                        the heading and inserting ``during certain 
                        taxable years'',
                            (ii) by striking ``and before January 1, 
                        2011'',
                            (iii) by inserting ``, which is placed in 
                        service before January 1, 2011 (before January 
                        1, 2017, in the case of property which relates 
                        to electricity)'' after ``hydrogen'' in 
                        subparagraph (A), and
                            (iv) by inserting ``, which is placed in 
                        service before January 1, 2011'' after 
                        ``hydrogen'' in subparagraph (B).
                    (B) Extension of credit.--Subsection (g) of section 
                30C of such Code is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (1),
                            (ii) by redesignating paragraph (2) as 
                        paragraph (3), and
                            (iii) by inserting after paragraph (1) the 
                        following new paragraph:
            ``(2) in the case of property relating to electricity, 
        after December 31, 2016, and''.
            (2) Modification of cost provisions.--Subsection (e) of 
        section 30C of such Code is amended by adding at the end the 
        following new paragraph:
            ``(7) Installation of electricity property.--In the case of 
        any qualified alternative fuel vehicle refueling property which 
        relates to electricity, for purposes of subsection (a), the 
        cost of such property shall include the cost of the original 
        installation of such property.''.
            (3) Transferability of credit.--Section 30C(e) of such 
        Code, as amended by paragraph (2), is amended by adding at the 
        end the following new paragraph:
            ``(8) Transferability of credit.--
                    ``(A) In general.--A person who places any 
                qualified alternative fuel vehicle refueling property 
                in service may transfer the credit under this section 
                through an assignment to any other person. Such 
                transfer may be revoked only with the consent of the 
                Secretary.
                    ``(B) Certification.--A transferee of a credit 
                described in subparagraph (A) may not claim such credit 
                unless such claim is accompanied by a certification to 
                the Secretary that the transferee reduced the price the 
                transferor paid for the qualified alternative fuel 
                vehicle refueling property by the entire amount of such 
                credit.
                    ``(C) Regulations.--The Secretary shall prescribe 
                such regulations as necessary to ensure that the credit 
                transferred under subparagraph (A) is claimed once and 
                not reassigned by such other person.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 306. QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE REFUELING 
              PROPERTY BONDS.

    (a) In General.--Paragraph (1) of section 54A(d) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``or'' at the end of subparagraph (D),
            (2) by inserting ``or'' at the end of subparagraph (E), and
            (3) by inserting after subparagraph (E) the following new 
        subparagraph:
                    ``(F) a qualified plug-in electric drive motor 
                vehicle refueling property bond,''.
    (b) Qualified Purpose.--Subparagraph (C) of section 54A(d)(2) of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of clause (iv),
            (2) by striking the period at the end of clause (v) and 
        inserting ``, and'', and
            (3) by adding at the end the following new clause:
                            ``(vi) in the case of a qualified plug-in 
                        electric drive motor vehicle refueling property 
                        bond, a purpose specified in section 
                        54G(a)(1).''.
    (c) Bonds Allowed.--Subpart I of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 54G. QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE REFUELING 
              PROPERTY BONDS.

    ``(a) Qualified Plug-In Electric Drive Motor Vehicle Refueling 
Property Bond.--For purposes of this subpart, the term `qualified plug-
in electric drive motor vehicle refueling property bond' means any bond 
issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for capital expenditures incurred by a 
        qualified issuer for 1 or more qualified plug-in electric drive 
        motor vehicle refueling properties,
            ``(2) the bond is issued by a qualified issuer, and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Reduced Credit Amount.--Notwithstanding paragraph (2) of 
section 54A(b), the annual credit determined with respect to any 
qualified plug-in electric drive motor vehicle refueling property bond 
is 70 percent of the amount which would (but for this subsection) 
otherwise be determined under such paragraph with respect to such bond.
    ``(c) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated to 
such issuer under subsection (e).
    ``(d) National Limitation on Amount of Bonds Designated.--There is 
a national qualified plug-in electric drive motor vehicle refueling 
property bond limitation of $1,000,000,000.
    ``(e) Allocations.--The Secretary shall make allocations of the 
amount of the national qualified plug-in electric drive motor vehicle 
refueling property bond limitation described in subsection (d) among 
purposes described in subsection (a)(1) in such manner as the Secretary 
determines appropriate.
    ``(f) Definitions.--For purposes of this section--
            ``(1) Qualified plug-in electric drive motor vehicle 
        refueling property.--The term `qualified plug-in electric drive 
        motor vehicle refueling property' means any qualified 
        alternative fuel vehicle refueling property (within the meaning 
        of section 30C) which relates to electricity.
            ``(2) Qualified issuer.--
                    ``(A) In general.--The term `qualified issuer' 
                means a public power provider, a cooperative electric 
                company, or a governmental body.
                    ``(B) Denial of double benefit.--With respect to 
                any issue, the term `qualified issuer' shall not 
                include any entity to which a credit under section 30C 
                is allowed for the taxable year in which such issue is 
                issued.
                    ``(C) Governmental body.--The term `governmental 
                body' means any State or Indian tribal government, or 
                any political subdivision thereof.
                    ``(D) Public power provider.--The term `public 
                power provider' means a State utility that has a 
                service obligation to end-users or to a distribution 
                utility (within the meaning of section 217 of the 
                Federal Power Act, as in effect on the date of the 
                enactment of this section).
                    ``(E) Cooperative electric company.--The term 
                `cooperative electric company' means a mutual or 
                cooperative electric company described in section 
                501(c)(12) or an organization described in section 
                1381(a)(2)(C).''.
    (d) Clerical Amendment.--The table of sections for subpart I of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 54G. Qualified plug-in electric drive motor vehicle refueling 
                            property bonds.''.
    (e) Effective Date.--The amendments made by subsections (a), (b), 
(c), and (d) shall apply to obligations issued after the date of the 
enactment of this Act.
    (f) Loan Guarantees.--
            (1) In general.--Section 1705 of the Energy Policy Act of 
        2005 (42 U.S.C. 16516) is amended--
                    (A) in subsection (a), by adding at the end the 
                following:
            ``(4) Charging infrastructure and networks of charging 
        infrastructure for plug-in drive electric vehicles, if such 
        charging infrastructure will be operational prior to December 
        31, 2016.''; and
                    (B) by striking subsection (e) and inserting the 
                following:
    ``(e) Sunset.--The authority to enter into guarantees under this 
section shall expire on September 30, 2011, except that for projects 
described in subsection (a)(4), the authority to enter into guarantees 
shall expire on December 31, 2016.''.

SEC. 307. UTILITY PLANNING FOR PLUG-IN ELECTRIC DRIVE VEHICLES.

    The Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 
et seq.) is amended--
            (1) in section 111(d) (16 U.S.C. 2621(d)), by adding at the 
        end the following:
            ``(20) Plug-in electric drive vehicle planning.--
                    ``(A) Utility plan for plug-in electric drive 
                vehicles.--
                            ``(i) In general.--Not later than 2 years 
                        after the date of enactment of this paragraph, 
                        each electric utility shall develop a plan to 
                        support the use of plug-in electric drive 
                        vehicles, including medium and heavy-duty 
                        hybrid electric vehicles in the service area of 
                        the electric utility.
                            ``(ii) Requirements.--A plan under clause 
                        (i) shall investigate--
                                    ``(I) various levels of potential 
                                penetration of plug-in electric drive 
                                vehicles in the utility service area;
                                    ``(II) the potential impacts that 
                                the various levels would have on 
                                distribution infrastructure and on the 
                                operation of the transmission grid; and
                                    ``(III) the role of third parties 
                                in providing reliable and economical 
                                charging services.
                            ``(iii) Waiver.--An electric utility that 
                        determines that the electric utility will have 
                        no meaningful penetration of plug-in electric 
                        drive vehicles during the 5-year period 
                        beginning on the date of enactment of this 
                        paragraph may petition the Secretary to waive 
                        clause (i) for 5 years.
                            ``(iv) Updates.--
                                    ``(I) In general.--Each electric 
                                utility shall update the plan of the 
                                electric utility every 5 years.
                                    ``(II) Resubmission of waiver.--An 
                                electric utility that received a waiver 
                                under clause (iii) and wants the waiver 
                                to continue after the expiration of the 
                                waiver shall be required to resubmit 
                                the waiver.
                            ``(v) Exemption.--If the Secretary 
                        determines that a plan required by a State 
                        regulatory authority meets the requirements of 
                        this paragraph, the Secretary may accept that 
                        plan and exempt the electric utility submitting 
                        the plan from the requirements of clause (i).
                    ``(B) Support requirements.--Each State regulatory 
                authority (in the case of each electric utility for 
                which the authority has ratemaking authority) and each 
                municipal and cooperative utility shall--
                            ``(i) participate in any local plan for the 
                        deployment of recharging infrastructure in 
                        communities located in the footprint of the 
                        authority or utility;
                            ``(ii) require that charging infrastructure 
                        deployed is interoperable with products of all 
                        auto manufacturers to the maximum extent 
                        practicable; and
                            ``(iii) consider adopting minimum 
                        requirements for deployment of electrical 
                        charging infrastructure and other appropriate 
                        requirements necessary to support the use of 
                        plug-in electric drive vehicles.
                    ``(C) Cost recovery.--Each State regulatory 
                authority (in the case of each electric utility for 
                which the authority has ratemaking authority) and each 
                municipal and cooperative utility may consider whether, 
                and to what extent, to allow cost recovery for plans 
                and implementation of plans.
                    ``(D) Smart grid integration.--The State regulatory 
                authority (in the case of each electric utility for 
                which the authority has ratemaking authority) and each 
                municipal and cooperative utility, in accordance with 
                regulations issued by the Federal Energy Regulatory 
                Commission under section 1305(d) of the Energy 
                Independence and Security Act of 2007 (42 U.S.C. 
                17385), shall--
                            ``(i) establish any appropriate protocols 
                        and standards for integrating plug-in electric 
                        drive vehicles into an electrical distribution 
                        system, including Smart Grid systems and 
                        devices as described in title XIII of the 
                        Energy Independence and Security Act of 2007 
                        (42 U.S.C. 17381 et seq.);
                            ``(ii) develop, to the maximum extent 
                        practicable, the means and methods for 
                        appropriate billing settlements between 
                        utilities, consumers, and third parties in and 
                        across utility territories;
                            ``(iii) identify the smart grid 
                        infrastructure and information technology that 
                        would likely need to be installed to most 
                        efficiently manage plug-in electric vehicles; 
                        and
                            ``(iv) in consideration of this section, 
                        review the determination made under subsection 
                        (a), including whether time-of-use pricing 
                        should be employed to enable the use of plug-in 
                        electric drive vehicles to contribute to 
                        meeting peak-load and ancillary service power 
                        needs.
                    ``(E) Determination.--Not later than 3 years after 
                the date of enactment of this paragraph, each State 
                regulatory authority (with respect to each electric 
                utility for which the authority has ratemaking 
                authority), and each municipal and cooperative electric 
                utility, shall complete the consideration, and shall 
                make the determination, referred to in subsection (a) 
                with respect to the standard established by this 
                paragraph.''
            (2) in section 112(c) (16 U.S.C. 2622(c))--
                    (A) in the first sentence, by striking ``Each 
                State'' and inserting the following:
            ``(1) In general.--Each State'';
                    (B) in the second sentence, by striking ``In the 
                case'' and inserting the following:
            ``(2) Specific standards.--
                    ``(A) Net metering and fossil fuel generation 
                efficiency.--In the case'';
                    (C) in the third sentence, by striking ``In the 
                case'' and inserting the following:
                    ``(B) Time-based metering and communications.--In 
                the case'';
                    (D) in the fourth sentence--
                            (i) by striking ``In the case'' and 
                        inserting the following:
                    ``(C) Interconnection.--In the case''; and
                            (ii) by striking ``paragraph (15)'' and 
                        inserting ``paragraph (15) of section 111(d)'';
                    (E) in the fifth sentence, by striking ``In the 
                case'' and inserting the following:
                    ``(D) Integrated resource planning, rate design 
                modifications, smart grid investments, smart grid 
                information.--In the case''; and
                    (F) by adding at the end the following:
                    ``(E) Plug-in electric drive vehicle planning.--In 
                the case of the standards established by paragraph (20) 
                of section 111(d), the reference contained in this 
                subsection to the date of enactment of this Act shall 
                be deemed to be a reference to the date of enactment of 
                that paragraph.''; and
            (3) in section 112(d) (16 U.S.C. 2622(d)), in the matter 
        preceding paragraph (1), by striking ``(19)'' and inserting 
        ``(20)''.

SEC. 308. FEDERAL FLEETS.

    (a) In General.--Electricity consumed by Federal agencies to fuel 
plug-in electric drive vehicles--
            (1) is an alternative fuel (as defined in section 301 of 
        the Energy Policy Act of 1992 (42 U.S.C. 13218)); and
            (2) shall be accounted for under Federal fleet management 
        reporting requirements, not under Federal building management 
        reporting requirements.
    (b) Assessment and Report.--Not later than 180 days after the date 
of enactment of this Act and at the completion of the Program, the 
Federal Energy Management Program and the General Services 
Administration, in consultation with the Task Force, shall complete an 
assessment of Federal Government fleets, including the Postal Service 
and the Department of Defense, and submit a report to Congress that 
describes--
            (1) for each Federal agency, which types of vehicles the 
        agency uses that would or would not be suitable for near-term 
        and medium-term conversion to plug-in electric drive vehicles, 
        taking into account the types of vehicles for which plug-in 
        electric drive vehicles could provide comparable functionality 
        and lifecycle costs;
            (2) how many plug-in electric drive vehicles could be 
        deployed by the Federal Government in 5 years and in 10 years, 
        assuming that plug-in electric drive vehicles are available and 
        are purchased when new vehicles are needed or existing vehicles 
        are replaced; and
            (3) the estimated cost to the Federal Government for 
        vehicle purchases under paragraph (2) for each fiscal year.
    (c) Inventory and Data Collection.--
            (1) In general.--In carrying out the assessment and report 
        under subsection (b), the Federal Energy Management Program, in 
        consultation with the General Services Administration, shall--
                    (A) develop an information request for each agency 
                that operates a fleet of at least 20 motor vehicles; 
                and
                    (B) establish guidelines for each agency to use in 
                developing a plan to deploy plug-in electric drive 
                vehicles.
            (2) Agency responses.--Each agency that operates a fleet of 
        at least 20 motor vehicles shall--
                    (A) collect information on the vehicle fleet of the 
                agency in response to the information request described 
                in paragraph (1); and
                    (B) develop a plan to deploy plug-in electric drive 
                vehicles.
            (3) Analysis of responses.--The Federal Energy Management 
        Program shall--
                    (A) analyze the information submitted by each 
                agency under paragraph (2);
                    (B) approve or suggest amendments to the plan of 
                each agency to ensure that the plan is consistent with 
                the goals and requirements of this title; and
                    (C) submit a plan to Congress and the General 
                Services Administration to be used in developing the 
                pilot program described in subsection (e).
    (d) Budget Request.--Each agency of the Federal Government shall 
include plug-in electric drive vehicle purchases identified in the 
report under subsection (b) in the budget of the agency to be included 
in the budget of the United States Government submitted by the 
President under section 1105 of title 31, United States Code.
    (e) Pilot Program To Deploy Plug-In Electric Drive Vehicles in the 
Federal Fleet.--
            (1) In general.--The Administrator of General Services 
        shall acquire plug-in electric drive vehicles and the requisite 
        charging infrastructure to be deployed in a range of locations 
        in the Federal fleet during the 5-year period beginning on the 
        date of enactment of this Act.
            (2) Data collection.--The Administrator of General Services 
        shall collect data regarding--
                    (A) the cost, performance, and use of plug-in 
                electric drive vehicles in the Federal fleet;
                    (B) the deployment and integration of plug-in 
                electric drive vehicles in the Federal fleet; and
                    (C) the contribution of plug-in electric drive 
                vehicles in the Federal fleet toward reducing the use 
                of fossil fuels and greenhouse gas emissions.
            (3) Report.--Not later than 6 years after the date of 
        enactment of this Act, the Administrator of General Services 
        shall submit to the appropriate committees of Congress a report 
        that--
                    (A) describes the status of plug-in electric drive 
                vehicles in the Federal fleet; and
                    (B) includes an analysis of the data collected 
                under this subsection.
            (4) Public website.--The Federal Energy Management Program 
        shall maintain and regularly update a publicly available 
        website that provides information on the status of plug-in 
        electric vehicles in the Federal fleet.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated for the Federal Government to pay for incremental costs to 
purchase or lease plug-in electric drive vehicles and the requisite 
charging infrastructure for Federal fleets $25,000,000.

SEC. 309. ADVANCED BATTERIES FOR TOMORROW PRIZE.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, as part of the program described in section 1008 of the 
Energy Policy Act of 2005 (42 U.S.C. 16396), the Secretary shall 
establish the Advanced Batteries for Tomorrow Prize to competitively 
award cash prizes in accordance with this section to advance the 
research, development, demonstration, and commercial application of a 
500-mile vehicle battery.
    (b) Battery Specifications.--
            (1) In general.--To be eligible for the Prize, a battery 
        submitted by an entrant shall be--
                    (A) able to power a plug-in electric drive vehicle 
                authorized to travel on the United States Federal-aid 
                system of highways for at least 500 miles before 
                recharging;
                    (B) of a size that would not be cost-prohibitive or 
                create space constraints, if mass-produced; and
                    (C) cost-effective (measured in cost per kilowatt 
                hour), if mass-produced.
            (2) Additional requirements.--The Secretary, in 
        consultation with the Committee, shall establish any additional 
        battery specifications that the Secretary and the Committee 
        determine to be necessary.
    (c) Private Funds.--
            (1) In general.--Subject to paragraph (2) and 
        notwithstanding section 3302 of title 31, United States Code, 
        the Secretary may accept, retain, and use funds contributed by 
        any person, government entity, or organization for purposes of 
        carrying out this subsection--
                    (A) without further appropriation; and
                    (B) without fiscal year limitation.
            (2) Restriction on participation.--An entity providing 
        private funds for the Prize may not participate in the 
        competition for the Prize.
    (d) Technical Review.--The Secretary, in consultation with the 
Committee, shall establish a technical review committee composed of 
non-Federal officers to review data submitted by Prize entrants under 
this section and determine whether the data meets the prize 
specifications described in subsection (b).
    (e) Third Party Administration.--The Secretary may select, on a 
competitive basis, a third party to administer awards provided under 
this section.
    (f) Eligibility.--To be eligible for an award under this section--
            (1) in the case of a private entity, the entity shall be 
        incorporated in and maintain a primary place of business in the 
        United States; and
            (2) in the case of an individual (whether participating as 
        a single individual or in a group), the individual shall be a 
        citizen or lawful permanent resident of the United States.
    (g) Award Amounts.--
            (1) In general.--Subject to the availability of funds to 
        carry out this section, the amount of the Prize shall be 
        $10,000,000.
            (2) Breakthrough achievement awards.--In addition to the 
        award described in paragraph (1), the Secretary, in 
        consultation with the technical review committee established 
        under subsection (d), may award cash prizes in recognition of 
        breakthrough achievements in research, development, 
        demonstration, and commercial application of activities 
        described in subsection (b).
    (h) 500-Mile Battery Award Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a fund to be known as the ``500-mile Battery 
        Fund'' (referred to in this section as the ``Fund''), to be 
        administered by the Secretary, to be available without fiscal 
        year limitation and subject to appropriation, to award amounts 
        under this section.
            (2) Transfers to fund.--The Fund shall consist of--
                    (A) such amounts as are appropriated to the Fund 
                under subsection (i); and
                    (B) such amounts as are described in subsection (c) 
                and that are provided for the Fund.
            (3) Prohibition.--Amounts in the Fund may not be made 
        available for any purpose other than a purposes described in 
        subsection (a).
            (4) Annual reports.--
                    (A) In general.--Not later than 60 days after the 
                end of each fiscal year beginning with fiscal year 
                2012, the Secretary shall submit a report on the 
                operation of the Fund during the fiscal year to--
                            (i) the Committees on Appropriations of the 
                        House of Representatives and of the Senate;
                            (ii) the Committee on Energy and Natural 
                        Resources of the Senate; and
                            (iii) the Committee on Energy and Commerce 
                        of the House of Representatives.
                    (B) Contents.--Each report shall include, for the 
                fiscal year covered by the report, the following:
                            (i) A statement of the amounts deposited 
                        into the Fund.
                            (ii) A description of the expenditures made 
                        from the Fund for the fiscal year, including 
                        the purpose of the expenditures.
                            (iii) Recommendations for additional 
                        authorities to fulfill the purpose of the Fund.
                            (iv) A statement of the balance remaining 
                        in the Fund at the end of the fiscal year.
            (5) Separate appropriations account.--Section 1105(a) of 
        title 31, United States Code, is amended--
                    (A) by redesignating paragraphs (35) and (36) as 
                paragraphs (36) and (37), respectively;
                    (B) by redesignating the second paragraph (33) 
                (relating to obligational authority and outlays 
                requested for homeland security) as paragraph (35); and
                    (C) by adding at the end the following:
                    ``(LL) a separate statement for the 500-mile 
                Battery Fund established under section 8(h) of the `Oil 
                Independence for a Stronger America Act of 2010', which 
                shall include the estimated amount of deposits into the 
                Fund, obligations, and outlays from the Fund.''.
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000.

SEC. 310. RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Research and Development Program.--
            (1) In general.--The Secretary, in consultation with the 
        Committee, shall establish a program to fund research and 
        development in advanced batteries, electric drive vehicle 
        components, electric drive infrastructure, and other 
        technologies supporting the development, manufacture, and 
        deployment of electric drive vehicles and charging 
        infrastructure.
            (2) Use of funds.--The program may include funding for--
                    (A) the development of low-cost, smart-charging and 
                vehicle-to-grid connectivity technology;
                    (B) the benchmarking and assessment of open 
                software systems using nationally established 
                evaluation criteria; and
                    (C) new technologies in electricity storage for 
                vehicles.
            (3) Report.--Not later than 4 years after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        report describing the status of the program described in 
        paragraph (1).
    (b) Secondary Use Applications Program.--
            (1) In general.--The Secretary, in consultation with the 
        Committee, shall carry out a research, development, and 
        demonstration program that builds upon any work carried out 
        under section 915 of the Energy Policy Act of 2005 (42 U.S.C. 
        16195) and--
                    (A) identifies possible uses of a vehicle battery 
                after the useful life of the battery in a vehicle has 
                been exhausted;
                    (B) assesses the potential for markets for uses 
                described in subparagraph (A) to develop, as well as 
                any barriers to the development of the markets; and
                    (C) identifies the potential uses of a vehicle 
                battery--
                            (i) with the most promise for market 
                        development; and
                            (ii) for which market development would be 
                        aided by a demonstration project.
            (2) Report.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary shall submit to the 
        appropriate committees of Congress an initial report on the 
        findings of the program described in paragraph (1), including 
        recommendations for stationary energy storage and other 
        potential applications for batteries used in plug-in electric 
        drive vehicles.
    (c) Demonstration Projects.--
            (1) In general.--Based on the results of the program 
        described in subsection (b), the Secretary, in consultation 
        with the Committee, shall develop guidelines for projects that 
        demonstrate the secondary uses of vehicle batteries.
            (2) Publication of guidelines.--Not later than 30 months 
        after the date of enactment of this Act, the Secretary shall--
                    (A) publish the guidelines described in paragraph 
                (1); and
                    (B) solicit applications for funding for 
                demonstration projects.
            (3) Grant program.--Not later than 38 months after the date 
        of enactment of this Act, the Secretary shall select proposals 
        for grant funding under this section, based on an assessment of 
        which proposals are mostly likely to contribute to the 
        development of a secondary market for batteries.
    (d) Materials Recycling Study.--
            (1) In general.--The Secretary, in consultation with the 
        Committee, shall carry out a study on the recycling of 
        materials from plug-in electric drive vehicles and the 
        batteries used in plug-in electric drive vehicles.
            (2) Report.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary shall submit to the 
        appropriate committees of Congress a report on the findings of 
        the study described in paragraph (1).
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,530,000,000, including--
            (1) $1,500,000,000 for use in conducting the program 
        described in subsection (a) for fiscal years 2011 through 2020;
            (2) $5,000,000 for use in conducting the program described 
        in subsection (b) for fiscal years 2011 through 2016; and
            (3) $25,000,000 for use in providing grants described in 
        subsection (c) for fiscal years 2011 through 2020.

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

    (a) In General.--The Secretary of the Interior, in consultation 
with the Secretary and the Task Force, shall conduct a study that--
            (1) identifies the raw materials needed for the manufacture 
        of plug-in electric drive vehicles, batteries, and other 
        components for plug-in electric drive vehicles, and for the 
        infrastructure needed to support plug-in electric drive 
        vehicles;
            (2) describes the primary or original sources and known 
        reserves and resources of those raw materials;
            (3) assesses, in consultation with the National Academy of 
        Sciences, the degree of risk to the manufacture, maintenance, 
        deployment, and use of plug-in electric drive vehicles 
        associated with the supply of those raw materials; and
            (4) identifies pathways to securing reliable and resilient 
        supplies of those raw materials.
    (b) Report.--Not later than 3 years after the date of enactment of 
this Act, the Secretary of the Interior shall submit to Congress a 
report that describes the results of the study.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this subsection $1,500,000.

SEC. 312. PLUG-IN ELECTRIC DRIVE VEHICLE TECHNICAL ADVISORY COMMITTEE.

    (a) In General.--There is established the Plug-in Electric Drive 
Vehicle Technical Advisory Committee to advise the Secretary on the 
programs and activities under this title.
    (b) Mission.--The mission of the Committee shall be to advise the 
Secretary on technical matters, including--
            (1) the priorities for research and development;
            (2) means of accelerating the deployment of safe, 
        economical, and efficient plug-in electric drive vehicles for 
        mass market adoption;
            (3) the development and deployment of charging 
        infrastructure;
            (4) the development of uniform codes, standards, and safety 
        protocols for plug-in electric drive vehicles and charging 
        infrastructure; and
            (5) reporting on the competitiveness of the United States 
        in plug-in electric drive vehicle and infrastructure research, 
        manufacturing, and deployment.
    (c) Membership.--
            (1) Members.--
                    (A) In general.--The Committee shall consist of not 
                less than 12, but not more than 25, members.
                    (B) Representation.--The Secretary shall appoint 
                the members to Committee from among representatives 
                of--
                            (i) domestic industry;
                            (ii) institutions of higher education;
                            (iii) professional societies;
                            (iv) Federal, State, and local governmental 
                        agencies (including the National Laboratories); 
                        and
                            (v) financial, transportation, labor, 
                        environmental, or other appropriate 
                        organizations, as the Secretary determines to 
                        be necessary.
            (2) Terms.--
                    (A) In general.--The term of a Committee member 
                shall not be longer than 3 years.
                    (B) Staggered terms.--The Secretary may appoint 
                members to the Committee for differing term lengths to 
                ensure continuity in the functioning of the Committee.
                    (C) Reappointments.--A member of the Committee 
                whose term is expiring may be reappointed.
            (3) Chairperson.--The Committee shall have a chairperson, 
        who shall be elected by and from the members.
    (d) Review.--The Committee shall review and make recommendations to 
the Secretary on the implementation of programs and activities under 
this title.
    (e) Response.--
            (1) In general.--The Secretary shall consider and may adopt 
        any recommendation of the Committee under subsection (c).
            (2) Biennial report.--
                    (A) In general.--Not later than 2 years after the 
                date of enactment of this Act and every 2 years 
                thereafter, the Secretary shall submit to the 
                appropriate committees of Congress a report describing 
                any new recommendations of the Committee.
                    (B) Contents.--The report shall include--
                            (i) a description of the manner in which 
                        the Secretary has implemented or plans to 
                        implement the recommendations of the Committee; 
                        or
                            (ii) an explanation of the reason that a 
                        recommendation of the Committee has not been 
                        implemented.
                    (C) Timing.--The report described in this paragraph 
                shall be submitted by the Secretary at the same time 
                the President submits the budget proposal for the 
                Department of Energy to Congress.
    (f) Coordination.--The Committee shall hold joint annual meetings 
with the Hydrogen and Fuel Cell Technical Advisory Committee 
established by section 807 of the Energy Policy Act of 2005 (42 U.S.C. 
16156) to help coordinate the work and recommendations of the 
Committees.
    (g) Support.--The Secretary shall provide to the Committee the 
resources necessary to carry out this section, as determined to be 
necessary by the Secretary.

SEC. 313. PLUG-IN ELECTRIC DRIVE VEHICLE INTERAGENCY TASK FORCE.

    (a) In General.--Not later than 120 days after the date of 
enactment of this Act, the President shall establish the Plug-in 
Electric Drive Vehicle Interagency Task Force, to be chaired by the 
Secretary and which shall consist of at least 1 representative from 
each of--
            (1) the Office of Science and Technology Policy;
            (2) the Council on Environmental Quality;
            (3) the Department of Energy;
            (4) the Department of Transportation;
            (5) the Department of Defense;
            (6) the Department of Commerce (including the National 
        Institute of Standards and Technology);
            (7) the Environmental Protection Agency;
            (8) the General Services Administration; and
            (9) any other Federal agencies that the President 
        determines to be appropriate.
    (b) Mission.--The mission of the Task Force shall be to ensure 
awareness, coordination, and integration of the activities of the 
Federal Government relating to electric drive vehicles, including--
            (1) plug-in electric drive vehicle research and development 
        (including necessary components);
            (2) the development of widely accepted smart-grid standards 
        and protocols for charging infrastructure;
            (3) the relationship of plug-in electric drive vehicle 
        charging practices to electric utility regulation;
            (4) the relationship of plug-in electric drive vehicle 
        deployment to system reliability and security;
            (5) the general deployment of plug-in electric drive 
        vehicles in the Federal, State, and local governments and for 
        private use;
            (6) the development of uniform codes, standards, and safety 
        protocols for plug-in electric drive vehicles and charging 
        infrastructure; and
            (7) the alignment of international plug-in electric drive 
        vehicle standards.
    (c) Activities.--
            (1) In general.--In carrying out this section, the Task 
        Force may--
                    (A) organize workshops and conferences;
                    (B) issue publications; and
                    (C) create databases.
            (2) Mandatory activities.--In carrying out this section, 
        the Task Force shall--
                    (A) foster the exchange of generic, nonproprietary 
                information and technology among industry, academia, 
                and the Federal Government;
                    (B) integrate and disseminate technical and other 
                information made available as a result of the programs 
                and activities under this title;
                    (C) support education about plug-in electric drive 
                vehicles;
                    (D) monitor, analyze, and report on the effects of 
                plug-in electric drive vehicle deployment on the 
                environment and public health, including air emissions 
                from vehicles and electricity generating units; and
                    (E) review and report on--
                            (i) opportunities to use Federal programs 
                        (including laws, regulations, and guidelines) 
                        to promote the deployment of plug-in electric 
                        drive vehicles; and
                            (ii) any barriers to the deployment of 
                        plug-in electric drive vehicles, including 
                        barriers that are attributable to Federal 
                        programs (including laws, regulations, and 
                        guidelines).
    (d) Agency Cooperation.--A Federal agency--
            (1) shall cooperate with the Task Force; and
            (2) provide, on request of the Task Force, appropriate 
        assistance in carrying out this section, in accordance with 
        applicable Federal laws (including regulations).

SEC. 314. PROHIBITION ON DISPOSING OF ADVANCED BATTERIES IN LANDFILLS.

    An advanced battery from a plug-in electric drive vehicle shall be 
disposed of in accordance with the Mercury-Containing and Rechargeable 
Battery Management Act (42 U.S.C. 14301 et seq.).

SEC. 315. LOAN GUARANTEES FOR ADVANCED BATTERY PURCHASES FOR USE IN 
              STATIONARY APPLICATIONS.

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

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

    ``(a) Definitions.--In this section:
            ``(1) Qualified automotive battery.--The term `qualified 
        automotive battery' means a battery that--
                    ``(A) has at least 4 kilowatt hours of battery 
                capacity; and
                    ``(B) is designed for use in qualified plug-in 
                electric drive motor vehicles but is purchased for 
                nonautomotive applications.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) an original equipment manufacturer;
                    ``(B) an electric utility;
                    ``(C) any provider of range extension 
                infrastructure; or
                    ``(D) any other qualified entity, as determined by 
                the Secretary.
    ``(b) Loan Guarantees.--
            ``(1) In general.--The Secretary shall guarantee loans made 
        to eligible entities for the aggregate purchase of not less 
        than 200 qualified automotive batteries in a calendar year that 
        have a total minimum power rating of 1 megawatt and use 
        advanced battery technology.
            ``(2) Restriction.--As a condition of receiving a loan 
        guarantee under this section, an entity purchasing qualified 
        automotive batteries with loan funds guaranteed under this 
        section shall comply with the provisions of the Buy American 
        Act (41 U.S.C. 10a et seq.).
    ``(c) Regulations.--The Secretary shall promulgate such regulations 
as are necessary to carry out this section.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000.''.

SEC. 316. MODEL UPDATING BUILDING CODES, PERMITTING AND INSPECTION 
              PROCESSES, AND ZONING OR PARKING RULES.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall develop and publish--
            (1) model building codes for the inclusion of separate 
        circuits for charging infrastructure, as appropriate, in new 
        construction and major renovations of private residences, 
        buildings, or other structures that could provide publicly 
        available charging infrastructure;
            (2) model construction permitting or inspection processes 
        that allow for the expedited installation of charging 
        infrastructure for purchasers of electric drive vehicles 
        (including a permitting process that allows a vehicle purchaser 
        to have charging infrastructure installed the same day a 
        vehicle is purchased); and
            (3) model zoning, parking rules, or other local ordinances 
        that--
                    (A) facilitate the installation of publicly 
                available charging infrastructure; and
                    (B) allow for access to publicly available charging 
                infrastructure.
    (b) Optional Adoption.--An applicant for selection as a deployment 
community under section 303 shall not be required to use the model 
building codes, permitting and inspection processes, or zoning, parking 
rules, or other ordinances described in the report published under 
subsection (a).
    (c) Smart Grid Integration.--In developing the model codes or 
ordinances described in subsection (a), the Secretary shall take into 
account smart grid integration.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000.

SEC. 317. WORKFORCE TRAINING.

    (a) Maintenance and Support.--
            (1) In general.--The Secretary, in consultation with the 
        Committee and the Task Force, shall award grants to 
        institutions of higher education and other qualified training 
        and education institutions for the establishment of programs to 
        provide training and education for vocational workforce 
        development through centers of excellence.
            (2) Purpose.--Training funded under this subsection shall 
        be intended to ensure that the workforce has the necessary 
        skills needed to maintain plug-in electric drive vehicles and 
        the infrastructure required to support plug-in electric drive 
        vehicles.
            (3) Scope.--Training funded under this subsection shall 
        include training for--
                    (A) first responders;
                    (B) electricians and contractors who will be 
                installing infrastructure;
                    (C) engineers;
                    (D) code inspection officials; and
                    (E) dealers and mechanics.
    (b) Design.--The Secretary shall award grants to institutions of 
higher education and other qualified training and education 
institutions for the establishment of programs to provide training and 
education in designing plug-in electric drive vehicles and associated 
components and infrastructure to ensure that the United States can lead 
the world in this field.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report on the 
implementation of the training programs under this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated $250,000,000 to carry out this section.

SEC. 318. CREDIT FOR GRID-INTERACTIVE PLUG-IN VEHICLES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30E. QUALIFIED GRID-INTERACTIVE PLUG-IN VEHICLES.

    ``(a) In General.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to the 
lesser of--
            ``(1) 50 percent of the cost of any qualified grid-
        interactive plug-in vehicle placed in service by the taxpayer 
        during the taxable year, or
            ``(2) $25,000.
    ``(b) Limitation on Number of Qualified Grid-Interactive Plug-In 
Vehicles.--No credit shall be allowed with respect to any qualified 
grid-interactive plug-in vehicle placed in service after the calendar 
quarter in which the number of qualified grid-interactive vehicles 
placed in service in the United States after the date of the enactment 
of this section is at least 6,000.
    ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart A 
                for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subsection (a) for 
                any taxable year (determined after application of 
                paragraph (1)) shall not exceed the excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section and 
                        sections 25D, 30, and 30D) and section 27 for 
                        the taxable year.
    ``(d) Qualified Grid-Interactive Plug-In Vehicle.--For purposes of 
this section, the term `qualified grid-interactive plug-in vehicle' 
means any vehicle--
            ``(1) which--
                    ``(A) is made by a manufacturer and originally 
                placed in service by the taxpayer, or
                    ``(B) has been modified to meet the requirements of 
                paragraphs (3) and (4) by a qualified vehicle converter 
                and originally placed in service as a modified vehicle 
                by the taxpayer,
            ``(2) which is acquired for use or lease by the taxpayer 
        and not for resale,
            ``(3) which is propelled to a significant extent by an 
        electric motor which draws electricity from a traction battery 
        which--
                    ``(A) has not less than 20 kilowatt hours of 
                traction battery storage, and
                    ``(B) has not less than 12 kilowatt hours of 
                charging and discharging power capability at 240 volts,
            ``(4) which has hardware and software in place on the 
        vehicle necessary to allow a qualified aggregator to control 
        battery charging from and discharging to the electrical grid, 
        and
            ``(5) with respect to which the taxpayer has entered into a 
        contract or agreement with a qualified aggregator to provide 
        grid services for not less than 3 years.
    ``(e) Other Definitions.--For purposes of this section--
            ``(1) Manufacturer.--The term `manufacturer' has the 
        meaning given such term under section 30B.
            ``(2) Qualified vehicle converter.--The term `qualified 
        vehicle converter' means any person who is in the trade or 
        business of installing electric drive or grid interface 
        components in existing vehicles.
            ``(3) Qualified aggregator.--The term `qualified 
        aggregator' means any person who--
                    ``(A) is in the trade or business of controlling 
                multiple qualified grid-interactive plug-in vehicles to 
                provide valuable grid services and paying owners of 
                those vehicles for the ability to control charging and 
                discharging of vehicle battery storage systems to the 
                grid, and
                    ``(B) is either--
                            ``(i) an Independent System Operator as 
                        defined in section 3 of the Federal Power Act 
                        (16 U.S.C. 796),
                            ``(ii) a Regional Transmission Organization 
                        as defined in such section 3,
                            ``(iii) a load-serving entity, or
                            ``(iv) an independent company who 
                        accumulates grid services from a collection of 
                        qualified grid-interactive plug-in vehicles.
            ``(4) Load-serving entity.--The term `load-serving entity' 
        means an electricity distribution company or utility company 
        that provides distribution and energy services for electricity 
        and electric customer services.
    ``(f) Special Rules.--
            ``(1) Basis reduction.--For purposes of this subtitle, the 
        basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed.
            ``(2) No double benefit.--
                    ``(A) Coordination with credit for new qualified 
                plug-in electric vehicles.--No credit shall be allowed 
                under subsection (a) with respect to any vehicle for 
                which a credit is allowed under section 30D.
                    ``(B) Other provisions.--The amount of any 
                deduction or credit (other than the credit allowed 
                under section 30D) allowable under this chapter for a 
                new qualified grid-interactive plug-in vehicle shall be 
                reduced by the amount of credit allowed under 
                subsection (a) for such vehicle.
            ``(3) Property used outside united states not qualified.--
        No credit shall be allowable under subsection (a) with respect 
        to any property referred to in section 50(b)(1).
            ``(4) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit.
            ``(5) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects to not have this section apply to such vehicle.
    ``(g) Termination.--This section shall not apply to property placed 
in service after December 31, 2015.''.
    (b) Conforming Amendments.--
            (1) Section 38(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``plus'' at the end of paragraph (35), by 
        striking the period at the end of paragraph (36) and inserting 
        ``, plus'', and by adding at the end the following new 
        paragraph:
            ``(37) the portion of the qualified grid-interactive plug-
        in vehicle credit to which section 30E(c)(1) applies.''.
            (2) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(38) to the extent provided in section 30E(f)(1).''.
            (3) Section 6501(m) of such Code is amended by inserting 
        ``30E(f)(5),'' after ``30D(e)(4),''.
            (4) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 30E. Qualified grid-interactive plug-in vehicles.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

                TITLE IV--TRANSPORTATION INFRASTRUCTURE

     Subtitle A--Transportation Options for Families and Businesses

SEC. 401. OIL SAVINGS AND GREENHOUSE GAS EMISSION REDUCTIONS THROUGH 
              TRANSPORTATION EFFICIENCY.

    (a) Environmental Protection Agency.--Part A of title II of the 
Clean Air Act (42 U.S.C. 7521 et seq.) is amended by adding at the end 
the following:

``SEC. 220. OIL SAVINGS AND GREENHOUSE GAS EMISSION REDUCTIONS THROUGH 
              TRANSPORTATION EFFICIENCY.

    ``(a) In General.--The Administrator, in consultation with the 
Secretary of Transportation (referred to in this section as the 
`Secretary'), shall promulgate, and update from time to time, 
regulations to establish--
            ``(1) national transportation-related goals for reducing 
        oil consumption and greenhouse gas emissions that are 
        commensurate with the emission reduction targets established 
        under the Oil Independence for a Stronger America Act of 2010 
        and the amendments made by that Act;
            ``(2) standardized models and related methods, to be used 
        by States, metropolitan planning organizations, and air quality 
        agencies to address oil savings and emission reduction goals, 
        including--
                    ``(A) the development of surface transportation-
                related oil savings and greenhouse gas emission 
                reduction targets pursuant to sections 134 and 135 of 
                title 23, and sections 5303 and 5304 of title 49, 
                United States Code;
                    ``(B) the assessment of projected surface 
                transportation-related oil consumption and greenhouse 
                gas emissions from transportation strategies;
                    ``(C) the assessment of projected surface 
                transportation-related oil consumption and greenhouse 
                gas emissions from State and regional transportation 
                plans;
                    ``(D) the establishment of surface transportation-
                related oil consumption and greenhouse gas emission 
                baselines at national, State, and regional levels; and
                    ``(E) the measurement and assessment of actual 
                surface transportation-related oil consumption and 
                emissions to assess progress toward achievement of oil 
                savings and emission targets at the State and regional 
                levels;
            ``(3) methods for collection of data on transportation-
        related oil consumption and greenhouse gas emissions; and
            ``(4) publication and distribution of successful strategies 
        employed by States, Indian tribes, metropolitan planning 
        organizations, and other entities to reduce transportation-
        related oil consumption and greenhouse gas emissions.
    ``(b) Role of Department of Transportation.--The Secretary, in 
consultation with the Administrator, shall promulgate, and update from 
time to time, regulations--
            ``(1) to improve the ability of transportation planning 
        models and tools, including travel demand models, to address 
        oil consumption and greenhouse gas emissions;
            ``(2) to assess projected surface transportation-related 
        travel activity and transportation strategies from State and 
        regional transportation plans; and
            ``(3) to update transportation planning requirements and 
        approval of transportation plans as necessary to carry out this 
        section.
    ``(c) Consultation and Models.--In promulgating the regulations, 
the Administrator and the Secretary--
            ``(1) shall consult with States, Indian tribes, 
        metropolitan planning organizations, and air quality agencies;
            ``(2) may use existing models and methodologies if the 
        models and methodologies are widely considered to reflect the 
        best practicable modeling or methodological approach for 
        assessing actual and projected transportation-related oil 
        consumption and greenhouse gas emissions from transportation 
        plans and projects; and
            ``(3) shall consider previously developed plans that were 
        based on models and methodologies for reducing oil consumption 
        and greenhouse gas emissions in applying those regulations to 
        the first approvals after promulgation.
    ``(d) Timing.--The Administrator and the Secretary shall--
            ``(1) publish proposed regulations under subsections (a) 
        and (b) not later than 1 year after the date of enactment of 
        this section; and
            ``(2) promulgate final regulations under subsections (a) 
        and (b) not later than 18 months after the date of enactment of 
        this section.
    ``(e) Assessment.--
            ``(1) In general.--At least every 6 years after 
        promulgating final regulations under subsections (a) and (b), 
        the Administrator and the Secretary shall jointly assess 
        current and projected progress in reducing national 
        transportation-related oil consumption and greenhouse gas 
        emissions.
            ``(2) Requirements.--The assessment shall--
                    ``(A) examine the contributions to emission 
                reductions attributable to--
                            ``(i) improvements in vehicle efficiency;
                            ``(ii) greenhouse gas performance of 
                        transportation fuels;
                            ``(iii) reductions in vehicle miles 
                        traveled;
                            ``(iv) changes in consumer demand and use 
                        of transportation management systems; and
                            ``(v) any other greenhouse gas-related 
                        transportation policies enacted by Congress; 
                        and
                    ``(B) include an analysis of the impact of the 
                investments made by each State and metropolitan 
                planning organization through the applicable statewide 
                transportation improvement program and transportation 
                improvement program, respectively, over the most recent 
                6-year period on reducing transportation-related 
                greenhouse gas emissions and oil consumption.
            ``(3) State departments of transportation.--The Secretary 
        shall issue guidance to establish procedures for State 
        departments of transportation to collect and report the data 
        required for the Secretary to carry out the assessment.
            ``(4) Results of assessment.--The Secretary and the 
        Administrator shall consider--
                    ``(A) the results of the assessment conducted under 
                this subsection; and
                    ``(B) based on those results, whether technical or 
                other updates to regulations required under this 
                section and sections 134 and 135 of title 23, and 
                sections 5303 and 5304 of title 49, United States Code, 
                are necessary.''.
    (b) Metropolitan Planning Organizations.--
            (1) Title 23.--Section 134 of title 23, United States Code, 
        is amended--
                    (A) in subsection (a)(1)--
                            (i) by striking ``minimizing'' and 
                        inserting ``reducing''; and
                            (ii) by inserting ``, reliance on oil, 
                        impacts on the environment, transportation-
                        related greenhouse gas emissions,'' after 
                        ``consumption'';
                    (B) in subsection (h)(1)(E)--
                            (i) by inserting ``sustainability, and 
                        livability, reduce surface transportation-
                        related reliance on oil and greenhouse gas 
                        emissions, adapt to the effects of climate 
                        change,'' after ``energy conservation,'';
                            (ii) by inserting ``and public health'' 
                        after ``quality of life''; and
                            (iii) by inserting ``, including housing 
                        and land use patterns'' after ``development 
                        patterns'';
                    (C) in subsection (i)--
                            (i) in paragraph (4)(A)--
                                    (I) by striking ``consult, as 
                                appropriate,'' and inserting 
                                ``cooperate'';
                                    (II) by inserting ``transportation, 
                                public transportation, air quality, 
                                energy, and housing, and shall consult, 
                                as appropriate, with State and local 
                                agencies and Indian tribes responsible 
                                for'' after ``responsible for''; and
                                    (III) by inserting ``public 
                                health,'' after ``conservation,''; and
                            (ii) in paragraph (5)(C)(iii), by inserting 
                        ``and through the website of the metropolitan 
                        planning organization, including oil savings 
                        and emission reduction targets and strategies 
                        developed under subsection (k)(6), including an 
                        analysis of the anticipated effects of the 
                        targets and strategies,'' after ``World Wide 
                        Web'';
                    (D) in subsection (j)(5)(A), by striking 
                ``subsection (k)(4)'' and inserting ``subsection 
                (k)(5)''; and
                    (E) in subsection (k)--
                            (i) by redesignating paragraphs (1) through 
                        (5) as paragraphs (2) through (6), 
                        respectively;
                            (ii) by inserting before paragraph (2) (as 
                        so redesignated) the following:
            ``(1) Definitions.--In this subsection:
                    ``(A) Metropolitan planning organization.--The term 
                `metropolitan planning organization' means a 
                metropolitan planning organization described in clause 
                (i) or (ii) of paragraph (7)(B).
                    ``(B) Scenario analysis.--The term `scenario 
                analysis' means the use of a planning tool that--
                            ``(i) develops a range of scenarios 
                        representing various combinations of 
                        transportation strategies, land use strategies, 
                        and development patterns, estimates of how each 
                        of those scenarios would perform in meeting the 
                        oil savings and greenhouse gas emission 
                        reduction targets based on analysis of various 
                        forces (such as health, transportation, 
                        economic or environmental factors, and land 
                        use) that affect growth;
                            ``(ii) includes features such as--
                                    ``(I) the involvement of the 
                                general public, key stakeholders, and 
                                elected officials on a broad scale;
                                    ``(II) the creation of an 
                                opportunity for those participants to 
                                educate each other as to growth trends 
                                and trade-offs, as a means to 
                                incorporate values and feedback into 
                                future plans; and
                                    ``(III) the use of continuing 
                                efforts and ongoing processes; and
                            ``(iii) may include key elements such as--
                                    ``(I) identification of the 
                                considerations shaping planning 
                                decisions and outcomes;
                                    ``(II) determination of patterns of 
                                interaction;
                                    ``(III) creation of scenarios for 
                                discussion purposes;
                                    ``(IV) analysis of implications;
                                    ``(V) evaluation of scenarios; and
                                    ``(VI) use of monitoring 
                                indicators.''; and
                            (iii) by adding at the end the following:
            ``(7) Transportation oil savings and greenhouse gas 
        reduction efforts.--
                    ``(A) In general.--Within a metropolitan planning 
                area serving a transportation management area, the 
                transportation planning process under this section 
                shall address transportation-related oil consumption 
                and greenhouse gas emissions by including oil savings 
                and emission reduction targets and strategies to meet 
                those targets.
                    ``(B) Eligible organizations.--
                            ``(i) MPOs within tmas.--All provisions and 
                        requirements of this section, including the 
                        requirements for transportation oil savings and 
                        greenhouse gas reduction efforts, shall apply 
                        to metropolitan planning organizations that 
                        also serve as transportation management areas.
                            ``(ii) Other mpos.--A metropolitan planning 
                        organization that does not serve as a 
                        transportation management area--
                                    ``(I) may develop transportation 
                                oil savings and greenhouse gas emission 
                                reduction targets and strategies to 
                                meet those targets; and
                                    ``(II) if those targets and 
                                strategies are developed, shall be 
                                subject to all applicable provisions 
                                and requirements of this section and 
                                the Oil Independence for a Stronger 
                                America Act of 2010 and amendments made 
                                by that Act, including requirements of 
                                the transportation oil savings and 
                                greenhouse gas reduction efforts.
                    ``(C) Establishment of targets and criteria.--
                            ``(i) In general.--Not later than 2 years 
                        after the promulgation of the final regulations 
                        required under section 220 of the Clean Air 
                        Act, each metropolitan planning organization 
                        that also serves as a transportation management 
                        area shall develop surface transportation-
                        related oil savings and greenhouse gas emission 
                        reduction targets, as well as strategies to 
                        meet those targets, in consultation with State 
                        air agencies and Indian tribes as part of the 
                        metropolitan transportation planning process 
                        under this section.
                            ``(ii) Multiple designations.--If more than 
                        1 metropolitan planning organization has been 
                        designated within a metropolitan area, each 
                        metropolitan planning organization shall 
                        coordinate with other metropolitan planning 
                        organizations in the same metropolitan area to 
                        develop the targets and strategies described in 
                        clause (i).
                            ``(iii) Minimum requirements.--Each 
                        metropolitan transportation plan developed by a 
                        metropolitan planning organization under clause 
                        (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related oil consumption and 
                        greenhouse gas emissions so as to contribute to 
                        the achievement of State targets pursuant to 
                        section 135(f)(9).
                            ``(iv) Requirements for targets and 
                        strategies.--The targets and strategies 
                        developed as part of a plan under this 
                        subparagraph shall, at a minimum--
                                    ``(I) be based on the oil 
                                consumption and emission and travel 
                                demand models and related methodologies 
                                established in the final regulations 
                                required under section 220 of the Clean 
                                Air Act;
                                    ``(II) inventory all sources of 
                                surface transportation-related oil 
                                consumption and greenhouse gas 
                                emissions;
                                    ``(III) apply to those modes of 
                                surface transportation that are 
                                addressed in the planning process under 
                                this section;
                                    ``(IV) be integrated and consistent 
                                with regional transportation plans and 
                                transportation improvement programs; 
                                and
                                    ``(V) be selected through scenario 
                                analysis, and include, pursuant to the 
                                requirements of the transportation 
                                planning process under this section, 
                                transportation investment and 
                                management strategies that reduce oil 
                                consumption and greenhouse gas 
                                emissions from the transportation 
                                sector over the life of the plan, such 
                                as--
                                            ``(aa) efforts to increase 
                                        public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;
                                            ``(bb) efforts to increase 
                                        walking, bicycling, and other 
                                        forms of nonmotorized 
                                        transportation;
                                            ``(cc) implementation of 
                                        zoning and other land use 
                                        regulations and plans to 
                                        support infill, transit-
                                        oriented development, 
                                        redevelopment, or mixed use 
                                        development;
                                            ``(dd) travel demand 
                                        management programs (including 
                                        carpool, vanpool, or car-share 
                                        projects), transportation 
                                        pricing measures, parking 
                                        policies, and programs to 
                                        promote telecommuting, flexible 
                                        work schedules, and satellite 
                                        work centers;
                                            ``(ee) highway and transit 
                                        operational improvements, 
                                        including intelligent 
                                        transportation systems or other 
                                        operational improvements to 
                                        reduce long-term oil 
                                        consumption and greenhouse gas 
                                        emissions through reduced 
                                        congestion and improved system 
                                        management;
                                            ``(ff) intercity passenger 
                                        rail improvements;
                                            ``(gg) high-speed rail 
                                        improvements and programs;
                                            ``(hh) intercity bus 
                                        improvements;
                                            ``(ii) freight rail 
                                        improvements;
                                            ``(jj) use of materials or 
                                        equipment associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce oil consumption and 
                                        greenhouse gas emissions;
                                            ``(kk) public facilities 
                                        for supplying electricity to 
                                        electric or plug-in hybrid-
                                        electric vehicles;
                                            ``(ll) local street network 
                                        improvements; and
                                            ``(mm) any other effort 
                                        that demonstrates progress in 
                                        reducing transportation-related 
                                        oil consumption and greenhouse 
                                        gas emissions in each 
                                        metropolitan planning 
                                        organization under this 
                                        subsection.
                            ``(v) Identification of projects and 
                        strategies.--The plan developed under this 
                        section shall include a list of projects and 
                        strategies based on the targets and strategies 
                        identified under clause (iv).
                    ``(D) Review and approval.--Not later than 180 days 
                after the date of submission of a plan under this 
                section--
                            ``(i) the Secretary and the Administrator 
                        shall review the plan; and
                            ``(ii) the Secretary shall make a 
                        determination that the plan submitted by a 
                        metropolitan planning organization meets the 
                        requirements of subparagraph (C) if--
                                    ``(I) the Secretary finds that a 
                                metropolitan planning organization has 
                                developed, submitted, and published the 
                                plan of the metropolitan planning 
                                organization pursuant to this section;
                                    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                metropolitan planning organization 
                                under this subsection; and
                                    ``(III) the development of the plan 
                                complies with the minimum requirements 
                                established under clauses (iii) and 
                                (iv) of subparagraph (C).
                    ``(E) Certification.--
                            ``(i) In general.--Only metropolitan 
                        planning organizations that meet the 
                        requirements of subparagraph (C) shall be 
                        eligible to receive performance grants under 
                        section 402(c) of the Oil Independence for a 
                        Stronger America Act of 2010.
                            ``(ii) Failure to comply.--Failure to 
                        comply with the requirements under subparagraph 
                        (C) shall not impact certification standards 
                        under paragraph (6).''.
            (2) Title 49.--Section 5303 of title 49, United States 
        Code, is amended--
                    (A) in subsection (a)(1)--
                            (i) by striking ``minimizing'' and 
                        inserting ``reducing''; and
                            (ii) by inserting ``, reliance on oil, 
                        impacts on the environment, transportation-
                        related greenhouse gas emissions,'' after 
                        ``consumption'';
                    (B) in subsection (h)(1)(E)--
                            (i) by inserting ``sustainability, and 
                        livability, reduce surface transportation-
                        related reliance on oil and greenhouse gas 
                        emissions, adapt to the effects of climate 
                        change,'' after ``energy conservation,'';
                            (ii) by inserting ``and public health'' 
                        after ``quality of life''; and
                            (iii) by inserting ``, including housing 
                        and land use patterns'' after ``development 
                        patterns'';
                    (C) in subsection (i)--
                            (i) in paragraph (4)(A)--
                                    (I) by striking ``consult, as 
                                appropriate,'' and inserting 
                                ``cooperate'';
                                    (II) by inserting ``transportation, 
                                public transportation, air quality, 
                                energy, and housing, and shall consult, 
                                as appropriate, with State and local 
                                agencies and Indian tribes responsible 
                                for'' after ``responsible for'' and
                                    (III) by inserting ``public 
                                health,'' after ``conservation,''; and
                            (ii) in paragraph (5)(C)(iii), by inserting 
                        ``and through the website of the metropolitan 
                        planning organization, including oil savings 
                        and emission reduction targets and strategies 
                        developed under subsection (k)(6), including an 
                        analysis of the anticipated effects of the 
                        targets and strategies,'' after ``World Wide 
                        Web''; and
                    (D) in subsection (k)--
                            (i) by redesignating paragraphs (1) through 
                        (5) as paragraphs (2) through (6), 
                        respectively;
                            (ii) by inserting before paragraph (2) (as 
                        so redesignated) the following:
            ``(1) Definition of metropolitan planning organization.--In 
        this subsection, the term `metropolitan planning organization' 
        means a metropolitan planning organization described in clause 
        (i) or (ii) of paragraph (7)(B).''; and
                            (iii) by adding at the end the following:
            ``(7) Transportation oil savings and greenhouse gas 
        reduction efforts.--
                    ``(A) In general.--Within a metropolitan planning 
                area serving a transportation management area, the 
                transportation planning process under this section 
                shall address transportation-related oil consumption 
                and greenhouse gas emissions by including oil savings 
                and emission reduction targets and strategies to meet 
                those targets.
                    ``(B) Eligible organizations.--
                            ``(i) In general.--The requirements of the 
                        transportation greenhouse gas reduction efforts 
                        shall apply only to metropolitan planning 
                        organizations within a transportation 
                        management area.
                            ``(ii) Development of plan.--A metropolitan 
                        planning organization that does not serve as a 
                        transportation management area--
                                    ``(I) may develop transportation 
                                oil savings and greenhouse gas emission 
                                reduction targets and strategies to 
                                meet those targets; and
                                    ``(II) if those targets and 
                                strategies are developed, shall be 
                                subject to all provisions and 
                                requirements of this section, including 
                                requirements of the transportation oil 
                                savings and greenhouse gas reduction 
                                efforts.
                    ``(C) Establishment of targets and criteria.--
                            ``(i) In general.--Not later than 2 years 
                        after the promulgation of the final regulations 
                        required under section 220 of the Clean Air 
                        Act, each metropolitan planning organization 
                        shall develop surface transportation-related 
                        oil savings and greenhouse gas emission 
                        reduction targets, as well as strategies to 
                        meet those targets, in consultation with State 
                        air agencies and Indian tribes as part of the 
                        metropolitan transportation planning process 
                        under this section.
                            ``(ii) Multiple designations.--If more than 
                        1 metropolitan planning organization has been 
                        designated within a metropolitan area, each 
                        metropolitan planning organization shall 
                        coordinate with other metropolitan planning 
                        organizations in the same metropolitan area to 
                        develop the targets and strategies described in 
                        clause (i).
                            ``(iii) Minimum requirements.--Each 
                        metropolitan transportation plan developed by a 
                        metropolitan planning organization under clause 
                        (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related oil consumption and 
                        greenhouse gas emissions so as to contribute to 
                        the achievement of State targets pursuant to 
                        section 135(f)(9) of title 23.
                            ``(iv) Requirements for targets and 
                        strategies.--The targets and strategies 
                        developed as part of a plan under this 
                        subparagraph shall, at a minimum--
                                    ``(I) be based on the oil 
                                consumption and emission models and 
                                related methodologies established in 
                                the final regulations required under 
                                section 220 of the Clean Air Act;
                                    ``(II) inventory all sources of 
                                surface transportation-related oil 
                                consumption and greenhouse gas 
                                emissions;
                                    ``(III) apply to those modes of 
                                surface transportation that are 
                                addressed in the planning process under 
                                this section;
                                    ``(IV) be integrated and consistent 
                                with regional transportation plans and 
                                transportation improvement programs; 
                                and
                                    ``(V) be selected through scenario 
                                analysis (as defined in section 
                                134(k)(1) of title 23), and include, 
                                pursuant to the requirements of the 
                                transportation planning process under 
                                this section, transportation investment 
                                and management strategies that reduce 
                                oil consumption and greenhouse gas 
                                emissions from the transportation 
                                sector over the life of the plan, such 
                                as--
                                            ``(aa) efforts to increase 
                                        public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;
                                            ``(bb) efforts to increase 
                                        walking, bicycling, and other 
                                        forms of nonmotorized 
                                        transportation;
                                            ``(cc) implementation of 
                                        zoning and other land use 
                                        regulations and plans to 
                                        support infill, transit-
                                        oriented development, 
                                        redevelopment, or mixed use 
                                        development;
                                            ``(dd) travel demand 
                                        management programs (including 
                                        carpool, vanpool, or car-share 
                                        projects), transportation 
                                        pricing measures, parking 
                                        policies, and programs to 
                                        promote telecommuting, flexible 
                                        work schedules, and satellite 
                                        work centers;
                                            ``(ee) highway and transit 
                                        operational improvements, 
                                        including intelligent 
                                        transportation systems or other 
                                        operational improvements to 
                                        reduce long-term oil 
                                        consumption and greenhouse gas 
                                        emissions through reduced 
                                        congestion and improved system 
                                        management;
                                            ``(ff) intercity passenger 
                                        rail improvements;
                                            ``(gg) high-speed rail 
                                        improvements and programs;
                                            ``(hh) intercity bus 
                                        improvements;
                                            ``(ii) freight rail 
                                        improvements;
                                            ``(jj) use of materials or 
                                        equipment associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce oil consumption and 
                                        greenhouse gas emissions;
                                            ``(kk) public facilities 
                                        for supplying electricity to 
                                        electric or plug-in hybrid-
                                        electric vehicles;
                                            ``(ll) local street network 
                                        improvements; and
                                            ``(mm) any other effort 
                                        that demonstrates progress in 
                                        reducing transportation-related 
                                        oil consumption and greenhouse 
                                        gas emissions in each 
                                        metropolitan planning 
                                        organization under this 
                                        subsection.
                            ``(v) Identification of projects and 
                        strategies.--The plan developed under this 
                        section shall include a list of projects and 
                        strategies based on the targets and strategies 
                        identified under clause (iv).
                    ``(D) Review and approval.--Not later than 180 days 
                after the date of submission of a plan under this 
                section--
                            ``(i) the Secretary and the Administrator 
                        shall review the plan; and
                            ``(ii) the Secretary shall make a 
                        determination that the plan submitted by a 
                        metropolitan planning organization meets the 
                        requirements of subparagraph (C) if--
                                    ``(I) the Secretary finds that a 
                                metropolitan planning organization has 
                                developed, submitted, and published the 
                                plan of the metropolitan planning 
                                organization pursuant to this section;
                                    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                metropolitan planning organization 
                                under this subsection; and
                                    ``(III) the development of the plan 
                                complies with the minimum requirements 
                                established under clauses (iii) and 
                                (iv) of subparagraph (C).
                    ``(E) Certification.--
                            ``(i) In general.--Only metropolitan 
                        planning organizations that meet the 
                        requirements of subparagraph (C) shall be 
                        eligible to receive performance grants under 
                        section 402(c) of the Oil Independence for a 
                        Stronger America Act of 2010.
                            ``(ii) Failure to comply.--Failure to 
                        comply with the requirements under subparagraph 
                        (C) shall not impact certification standards 
                        under paragraph (6).''.
    (c) States.--
            (1) Title 23.--Section 135 of title 23, United States Code, 
        is amended--
                    (A) in subsection (d)(1)(E)--
                            (i) by inserting ``sustainability, and 
                        livability, reduce surface transportation-
                        related oil consumption and greenhouse gas 
                        emissions, adapt to the effects of climate 
                        change,'' after ``energy conservation,'';
                            (ii) by inserting ``and public health'' 
                        after ``quality of life''; and
                            (iii) by inserting ``, including housing 
                        and land use patterns'' after ``development 
                        patterns''; and
                    (B) in subsection (f)--
                            (i) in paragraph (2)(D)(i)--
                                    (I) by striking ``, as appropriate, 
                                in consultation'' and inserting ``in 
                                cooperation'';
                                    (II) by inserting ``State and local 
                                agencies and Indian tribes responsible 
                                for transportation, public 
                                transportation, air quality, energy, 
                                and housing and in consultation with'' 
                                before ``State, tribal''; and
                                    (III) by inserting ``public 
                                health,'' after ``conservation,'';
                            (ii) in paragraph (3)(B)(iii), by inserting 
                        ``and through the website of the State, 
                        including oil savings and emission reduction 
                        targets and strategies developed under 
                        paragraph (9) and an analysis of the 
                        anticipated effects of the targets and 
                        strategies'' after ``World Wide Web''; and
                            (iii) by adding at the end the following:
            ``(9) Transportation oil savings and greenhouse gas 
        reduction efforts.--
                    ``(A) In general.--Within a State, the 
                transportation planning process under this section, 
                shall address transportation-related greenhouse gas 
                emissions by including emission reduction targets and 
                strategies to meet those targets.
                    ``(B) Establishment of targets and criteria.--
                            ``(i) In general.--Not later than 2 years 
                        after the promulgation of the final regulations 
                        required under section 220 of the Clean Air 
                        Act, each State shall develop surface 
                        transportation-related oil savings and 
                        greenhouse gas emission reduction targets, as 
                        well as strategies to meet those targets, in 
                        consultation with State air agencies and Indian 
                        tribes as part of the transportation planning 
                        process under this section.
                            ``(ii) Minimum requirements.--Each 
                        transportation plan developed by a State under 
                        clause (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related oil consumption and 
                        greenhouse gas emissions in the State so as to 
                        contribute to the achievement of national goals 
                        pursuant to section 220(a)(1) of the Clean Air 
                        Act.
                            ``(iii) Requirements for targets and 
                        strategies.--The targets and strategies 
                        developed as part of a plan under this 
                        subparagraph shall, at a minimum--
                                    ``(I) be based on the oil 
                                consumption and emission models and 
                                related methodologies established in 
                                the final regulations required under 
                                section 220 of the Clean Air Act;
                                    ``(II) inventory all sources of 
                                surface transportation-related oil 
                                consumption and greenhouse gas 
                                emissions;
                                    ``(III) apply to those modes of 
                                surface transportation that are 
                                addressed in the planning process under 
                                this section;
                                    ``(IV) be integrated and consistent 
                                with statewide transportation plans and 
                                statewide transportation improvement 
                                programs; and
                                    ``(V) be selected through scenario 
                                analysis (as defined in section 
                                134(k)(1)), and include, pursuant to 
                                the requirements of the transportation 
                                planning process under this section, 
                                transportation investment and 
                                management strategies that reduce oil 
                                consumption and greenhouse gas 
                                emissions from the transportation 
                                sector over the life of the plan, such 
                                as--
                                            ``(aa) efforts to increase 
                                        public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;
                                            ``(bb) efforts to increase 
                                        walking, bicycling, and other 
                                        forms of nonmotorized 
                                        transportation;
                                            ``(cc) implementation of 
                                        zoning and other land use 
                                        regulations and plans to 
                                        support infill, transit-
                                        oriented development, 
                                        redevelopment, or mixed use 
                                        development;
                                            ``(dd) travel demand 
                                        management programs (including 
                                        carpool, vanpool, or car-share 
                                        projects), transportation 
                                        pricing measures, parking 
                                        policies, and programs to 
                                        promote telecommuting, flexible 
                                        work schedules, and satellite 
                                        work centers;
                                            ``(ee) highway and transit 
                                        operational improvements, 
                                        including intelligent 
                                        transportation systems or other 
                                        operational improvements to 
                                        reduce congestion and improve 
                                        system management;
                                            ``(ff) intercity passenger 
                                        rail improvements;
                                            ``(gg) high-speed rail 
                                        improvements and programs;
                                            ``(hh) intercity bus 
                                        improvements;
                                            ``(ii) freight rail 
                                        improvements;
                                            ``(jj) use of materials or 
                                        equipment associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce oil consumption and 
                                        greenhouse gas emissions;
                                            ``(kk) public facilities 
                                        for supplying electricity to 
                                        electric or plug-in hybrid-
                                        electric vehicles;
                                            ``(ll) local street network 
                                        improvements; and
                                            ``(mm) any other effort 
                                        that demonstrates progress in 
                                        reducing transportation-related 
                                        oil consumption and greenhouse 
                                        gas emissions.
                            ``(iv) Identification of projects and 
                        strategies.--The plan developed under this 
                        section shall include a list of projects and 
                        strategies based on the targets and strategies 
                        identified under clause (iii).
                    ``(C) Coordination and consultation with public 
                agencies.--Transportation oil savings and greenhouse 
                gas emission targets and plans pursuant to this section 
                shall be developed--
                            ``(i) in coordination with--
                                    ``(I) all metropolitan planning 
                                organizations covered by this section 
                                within the State; and
                                    ``(II) transportation and air 
                                quality agencies within the State;
                            ``(ii) in consultation with representatives 
                        of State and local housing, economic 
                        development, energy, and land use agencies; and
                            ``(iii) in consultation with Indian tribes 
                        contiguous to the State.
                    ``(D) Enforcement.--Not later than 180 days after 
                the date of submission of a plan under this section--
                            ``(i) the Secretary and the Administrator 
                        shall review the plan; and
                            ``(ii) the Secretary shall make a 
                        determination that the plan submitted by a 
                        State meets the requirements of subparagraph 
                        (B) if--
                                    ``(I) the Secretary finds that a 
                                State has developed, submitted, and 
                                published the plan pursuant to this 
                                section;
                                    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                State under this subsection; and
                                    ``(III) the development of the plan 
                                complies with the minimum requirements 
                                established under clauses (ii) and 
                                (iii) of subparagraph (B).
                    ``(E) Planning finding.--
                            ``(i) In general.--Only States that meet 
                        the requirements of subparagraph (B) shall be 
                        eligible to receive performance grants under 
                        section 402(c) of the Oil Independence for a 
                        Stronger America Act of 2010.
                            ``(ii) Failure to comply.--Failure to 
                        comply with the requirements under subparagraph 
                        (B) shall not impact the planning finding under 
                        subsection (g)(7).''.
            (2) Title 49.--Section 5304 of title 49, United States Code 
        is amended--
                    (A) in subsection (d)(1)(E)--
                            (i) by inserting ``sustainability, and 
                        livability, reduce surface transportation-
                        related oil consumption and greenhouse gas 
                        emissions, adapt to the effects of climate 
                        change,'' after ``energy conservation,'';
                            (ii) by inserting ``and public health'' 
                        after ``quality of life''; and
                            (iii) by inserting ``, including housing 
                        and land use patterns'' after ``development 
                        patterns''; and
                    (B) in subsection (f)--
                            (i) in paragraph (2)(D)(i)--
                                    (I) by striking ``, as appropriate, 
                                in consultation'' and inserting ``in 
                                cooperation'';
                                    (II) by inserting ``State and local 
                                agencies and Indian tribes responsible 
                                for transportation, public 
                                transportation, air quality, and 
                                housing and in consultation with'' 
                                before ``State, tribal''; and
                                    (III) by inserting ``public 
                                health,'' after ``conservation,'';
                            (ii) in paragraph (3)(B)(iii), by inserting 
                        ``and through the website of the State, 
                        including oil savings and emission reduction 
                        targets and strategies developed under 
                        paragraph (9) and an analysis of the 
                        anticipated effects of the targets and 
                        strategies'' after ``World Wide Web''; and
                            (iii) by adding at the end the following:
            ``(9) Transportation oil savings and greenhouse gas 
        reduction efforts.--
                    ``(A) In general.--Within a State, the 
                transportation planning process under this section 
                shall address transportation-related oil consumption 
                and greenhouse gas emissions by including oil savings 
                and emission reduction targets and strategies to meet 
                those targets.
                    ``(B) Establishment of targets and criteria.--
                            ``(i) In general.--Not later than 2 years 
                        after the promulgation of the final regulations 
                        required under section 220 of the Clean Air 
                        Act, each State shall develop surface 
                        transportation-related oil savings and 
                        greenhouse gas emission reduction targets, as 
                        well as strategies to meet those targets, in 
                        consultation with State air agencies and Indian 
                        tribes as part of the transportation planning 
                        process under this section.
                            ``(ii) Minimum requirements.--Each 
                        transportation plan developed by a State under 
                        clause (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related oil consumption and 
                        greenhouse gas emissions in the State so as to 
                        contribute to the achievement of national 
                        targets pursuant to section 220(a)(1) of the 
                        Clean Air Act.
                            ``(iii) Requirements for targets and 
                        strategies.--The targets and strategies 
                        developed as part of a plan under this 
                        subparagraph shall, at a minimum--
                                    ``(I) be based on the oil 
                                consumption and emission models and 
                                related methodologies established in 
                                the final regulations required under 
                                section 220 of the Clean Air Act;
                                    ``(II) inventory all sources of 
                                surface transportation-related oil 
                                consumption and greenhouse gas 
                                emissions;
                                    ``(III) apply to those modes of 
                                surface transportation that are 
                                addressed in the planning process under 
                                this section;
                                    ``(IV) be integrated and consistent 
                                with statewide transportation plans and 
                                statewide transportation improvement 
                                programs; and
                                    ``(V) be selected through scenario 
                                analysis (as defined in section 
                                134(k)(1) of title 23), and include, 
                                pursuant to the requirements of the 
                                transportation planning process under 
                                this section, transportation investment 
                                and management strategies that reduce 
                                oil consumption and greenhouse gas 
                                emissions from the transportation 
                                sector over the life of the plan, such 
                                as--
                                            ``(aa) efforts to increase 
                                        public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;
                                            ``(bb) efforts to increase 
                                        walking, bicycling, and other 
                                        forms of nonmotorized 
                                        transportation;
                                            ``(cc) implementation of 
                                        zoning and other land use 
                                        regulations and plans to 
                                        support infill, transit-
                                        oriented development, 
                                        redevelopment, or mixed use 
                                        development;
                                            ``(dd) travel demand 
                                        management programs (including 
                                        carpool, vanpool, or car-share 
                                        projects), transportation 
                                        pricing measures, parking 
                                        policies, and programs to 
                                        promote telecommuting, flexible 
                                        work schedules, and satellite 
                                        work centers;
                                            ``(ee) highway and transit 
                                        operational improvements, 
                                        including intelligent 
                                        transportation systems or other 
                                        operational improvements to 
                                        reduce congestion and improve 
                                        system management;
                                            ``(ff) intercity passenger 
                                        rail improvements;
                                            ``(gg) high-speed rail 
                                        improvements and programs;
                                            ``(hh) intercity bus 
                                        improvements;
                                            ``(ii) freight rail 
                                        improvements;
                                            ``(jj) use of materials or 
                                        equipment associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce oil consumption and 
                                        greenhouse gas emissions;
                                            ``(kk) public facilities 
                                        for supplying electricity to 
                                        electric or plug-in hybrid-
                                        electric vehicles; and
                                            ``(ll) any other effort 
                                        that demonstrates progress in 
                                        reducing transportation-related 
                                        oil consumption and greenhouse 
                                        gas emissions.
                            ``(iv) Identification of projects and 
                        strategies.--The plan developed under this 
                        section shall include a list of projects and 
                        strategies based on the targets and strategies 
                        identified under clause (iii).
                    ``(C) Coordination and consultation with public 
                agencies.--Transportation oil savings and greenhouse 
                gas targets and plans pursuant to this section shall be 
                developed--
                            ``(i) in coordination with--
                                    ``(I) all metropolitan planning 
                                organizations covered by this section 
                                within the State; and
                                    ``(II) transportation and air 
                                quality agencies within the State;
                            ``(ii) in consultation with representatives 
                        of State and local housing, economic 
                        development, energy, and land use agencies; and
                            ``(iii) in consultation with Indian tribes 
                        contiguous to the State.
                    ``(D) Enforcement.--Not later than 180 days after 
                the date of submission of a plan under this section--
                            ``(i) the Secretary and the Administrator 
                        shall review the plan; and
                            ``(ii) the Secretary shall make a 
                        determination that the plan submitted by a 
                        State meets the requirements of subparagraph 
                        (B) if--
                                    ``(I) the Secretary finds that a 
                                State has developed, submitted, and 
                                published the plan pursuant to this 
                                section;
                                    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                State under this subsection; and
                                    ``(III) the development of the plan 
                                complies with the minimum requirements 
                                established under clauses (ii) and 
                                (iii) of subparagraph (B).
                    ``(E) Planning finding.--
                            ``(i) In general.--Only States that meet 
                        the requirements of subparagraph (B) shall be 
                        eligible to receive performance grants under 
                        section 402(c) of the Oil Independence for a 
                        Stronger America Act of 2010.
                            ``(ii) Failure to comply.--Failure to 
                        comply with the requirements under subparagraph 
                        (B) shall not impact the planning finding under 
                        subsection (g)(7).''.
    (d) Applicability.--Section 304 of the Clean Air Act (42 U.S.C. 
7604) shall not apply to the planning provisions of this section or any 
amendment made by this section.
    (e) Land Use Authority.--Nothing in this section or an amendment 
made by this section--
            (1) infringes on the existing authority of local 
        governments to plan or control land use; or
            (2) provides or transfers authority over land use to any 
        other entity.
    (f) Table of Contents.--The table of contents of title II of the 
Clean Air Act (42 U.S.C. prec. 7401) is amended by adding at the end 
the following:

``Sec. 220. Greenhouse gas emission reductions through transportation 
                            efficiency.''.

SEC. 402. INVESTING IN TRANSPORTATION GREENHOUSE GAS EMISSION REDUCTION 
              PROGRAMS.

    (a) In General.--The Secretary of Transportation (referred to in 
this section as the ``Secretary'') shall distribute funds made 
available to carry out this section to States and metropolitan planning 
organizations to carry out the purposes of this section for each fiscal 
year, including--
            (1) supporting the development and updating of 
        transportation greenhouse gas reduction targets and strategies; 
        and
            (2) providing financial assistance to implement plans 
        approved pursuant to--
                    (A) sections 134(k)(6) and 135(f)(9) of title 23, 
                United States Code; and
                    (B) sections 5303(k)(7) and 5304(f)(9) of title 49, 
                United States Code.
    (b) Allocation for Planning.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall distribute not more than 10 percent of the funds 
        available to carry out this section for a fiscal year for 
        metropolitan planning organizations to develop and update 
        transportation plans, including targets and strategies for 
        greenhouse gas emission reduction under--
                    (A) sections 134(k)(6) and 135(f)(9) of title 23, 
                United States Code; and
                    (B) sections 5303(k)(7) and 5304(f)(9) of title 49, 
                United States Code.
            (2) Eligible organizations.--The Secretary shall distribute 
        the funds available under paragraph (1) to metropolitan 
        planning organizations (as defined in section 134(k)(1) of 
        title 23, United States Code) in the proportion that--
                    (A) the population within such a metropolitan 
                planning organization; bears to
                    (B) the total population of all such metropolitan 
                planning organizations.
    (c) Performance Awards.--
            (1) In general.--After distributing funds pursuant to 
        subsection (b)(1), and subject to subsection (h), the Secretary 
        shall distribute the remainder of the funds made available to 
        carry out this section to provide support to States and 
        metropolitan planning organizations.
            (2) Criteria.--In making distributions under this 
        subsection, the Secretary, in consultation with the 
        Administrator, shall develop criteria for making the 
        distribution, taking into consideration, with respect to areas 
        to be covered by the distributions--
                    (A) the quantity of total oil consumption and 
                greenhouse gas emissions to be reduced as a result of 
                implementation of a plan, within a covered area;
                    (B) the quantity of total oil consumption and 
                greenhouse gas emissions to be reduced per capita as a 
                result of the implementation of a plan, within the 
                covered area;
                    (C) the cost-effectiveness of reducing oil 
                consumption and greenhouse gas emissions during the 
                life of the plan;
                    (D) progress toward achieving oil savings and 
                emission reductions target established under--
                            (i) sections 134(k)(6) and 135(f)(9) of 
                        title 23, United States Code; and
                            (ii) sections 5303(k)(7) and 5304(f)(9) of 
                        title 49, United States Code;
                    (E) reductions in oil consumption and greenhouse 
                gas emissions previously achieved by States and 
                metropolitan planning organizations during the 5-year 
                period beginning on the date of enactment of this Act;
                    (F) the extent to which the plan increases 
                transportation options and mobility, particularly for 
                low-income individuals, minorities, the elderly, 
                households without motor vehicles, cost-burdened 
                households, and the disabled;
                    (G) the extent to which projects funded will 
                facilitate development patterns and strategies that 
                reduce oil consumption and greenhouse gas emissions; 
                and
                    (H) other factors, including innovative approaches, 
                minimization of costs, and consideration of economic 
                development, revenue generation, consumer fuel cost-
                savings, and other economic, environmental, and health 
                benefits, as the Secretary determines to be 
                appropriate.
    (d) Requirement for Reduced Oil Consumption and Emissions.--Funds 
received under subsection (c) may be used only to fund strategies that 
demonstrate reductions in oil consumption and greenhouse gas emissions 
that are sustainable over the life of the applicable transportation 
plan.
    (e) Cost-Sharing.--The Federal share of the costs of a project 
receiving Federal financial assistance under this section shall be 80 
percent.
    (f) Compliance With Applicable Laws.--
            (1) In general.--Subject to paragraph (2), a project 
        receiving funds under this section shall comply with all 
        applicable Federal laws (including regulations), including 
        applicable requirements of titles 23 and 49, United States 
        Code.
            (2) Eligibility.--Project eligibility shall be determined 
        in accordance with this section.
            (3) Determination of applicable modal requirements.--The 
        Secretary shall--
                    (A) have the discretion to designate the specific 
                modal requirements that shall apply to a project; and
                    (B) be guided by the predominant modal 
                characteristics of the project in the event that a 
                project has cross-modal application.
    (g) Additional Requirements.--
            (1) In general.--As a condition of the receipt of funds 
        under this section, the interests of public transportation 
        employees affected by the assistance shall be protected under 
        arrangements that the Secretary of Labor determines--
                    (A) to be fair and equitable; and
                    (B) to provide benefits equal to the benefits 
                established under section 5333(b) of title 49, United 
                States Code.
    (h) Miscellaneous.--
            (1) Road-use and congestion pricing measures.--All projects 
        supported by funds made available under this section shall not 
        be subject to section 301 of title 23, United States Code shall 
        be eligible to receive amounts collected through road-use and 
        congestion pricing measures.
            (2) Limitations.--The Administrator may not approve any 
        transportation plan for a project that would be inconsistent 
        with existing design, procurement, and construction guidelines 
        established by the Department of Transportation.
            (3) Transfers.--With the approval of the Secretary, 
        recipients of funds under this section may enter into 
        agreements providing for the transfer of funds or value to 
        private transportation providers or ineligible public entities 
        (such as local governments, air quality agencies, zoning 
        commissions, special districts, and transit agencies) that have 
        statutory responsibility or authority for actions necessary to 
        implement strategies pursuant to--
                    (A) sections 134(k)(6) and 135(f)(9) of title 23, 
                United States Code; and
                    (B) sections 5303(k)(7) and 5304(f)(9) of title 49, 
                United States Code.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 403. COMMUTER BENEFITS EQUITY.

    (a) Uniform Dollar Limitation for All Types of Transportation 
Fringe Benefits.--
            (1) In general.--Section 132(f)(2) of the Internal Revenue 
        Code of 1986 (relating to limitation on exclusion) is amended--
                    (A) by striking ``$100'' in subparagraph (A) and 
                inserting ``$230'', and
                    (B) by striking ``$175'' in subparagraph (B) and 
                inserting ``$230''.
            (2) Inflation adjustment conforming amendments.--
        Subparagraph (A) of section 132(f)(6) of the Internal Revenue 
        Code of 1986 (relating to inflation adjustment) is amended--
                    (A) by striking the last sentence,
                    (B) by striking ``1999'' and inserting ``2009'', 
                and
                    (C) by striking ``1998'' and inserting ``2008''.
            (3) Effective date.--The amendments made by this section 
        shall apply to taxable years beginning after December 31, 2008.
    (b) Clarification of Federal Employee Benefits.--Section 7905 of 
title 5, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)(C), by inserting ``and'' after 
                the semicolon;
                    (B) in paragraph (3), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking paragraph (4); and
            (2) in subsection (b)(2), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) a qualified transportation fringe as defined 
                in section 132(f)(1) of the Internal Revenue Code of 
                1986;''.

                   Subtitle B--Freight Transportation

SEC. 411. FREIGHT TRANSPORTATION GOAL AND PLAN.

    (a) Freight Transportation Options Goal.--
            (1) In general.--Subject to paragraph (2), it shall be the 
        goal of the United States to shift at least 10 percent of 
        freight shipped by truck to rail or marine shipping by calendar 
        year 2020.
            (2) Increase.--The Secretary of Transportation may increase 
        the goal established under paragraph (1) based on the 
        evaluation of national freight rail and marine shipping 
        infrastructure and the national freight transportation options 
        plan developed pursuant to subsection (b).
    (b) Freight Transportation Plan.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary of Transportation shall 
        develop a national freight transportation options plan.
            (2) Contents.--The plan developed under paragraph (1) shall 
        include--
                    (A) an evaluation of national freight rail and 
                marine shipping infrastructure;
                    (B) an assessment of barriers to increased movement 
                of freight by rail and marine shipping;
                    (C) an identification of areas or corridors in 
                which additional capacity or other infrastructure is 
                needed to allow increased use of freight rail and 
                marine shipping; and
                    (D) a strategic plan for investments in capacity or 
                other measures to encourage increased use of freight 
                rail and marine shipping to meet the goal established 
                under subsection (a).

SEC. 412. FREIGHT RAIL CONGESTION GRANTS.

    (a) In General.--Section 24105 of title 49, United States Code, is 
amended to read as follows:
``Sec. 24105. Freight rail congestion grants
    ``(a) Authority.--The Secretary of Transportation may make grants 
to States for financing the capital costs of facilities, 
infrastructure, and equipment for high priority rail corridor projects 
necessary to reduce congestion in freight rail transportation.
    ``(b) Eligible Projects.--Projects eligible for grants under this 
section shall be covered by a State rail plan and provide public 
benefits (as defined by chapter 27).
    ``(c) Federal Share.--The Federal share of the cost of a project 
financed under this section shall not exceed 80 percent.
    ``(d) Grant Conditions.--The Secretary of Transportation shall 
require each recipient of a grant under this section to comply with the 
applicable grant requirements of section 24405.
    ``(e) Equitable Distribution.--The Secretary shall take such 
measures as are necessary to ensure an equitable geographic 
distribution of funds and an appropriate balance in addressing the 
needs of urban and rural communities.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary.''.
    (b) Table of Sections Amendment.--The table of sections for chapter 
XXX of title 49, United States Code, is amended by striking the item 
relating to section 24105 and inserting the following:

``Sec. 24105. Freight rail congestion grants.''.

SEC. 413. RAIL ELECTRIFICATION STUDY.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study on the benefits and costs of electrification of rail 
corridors, including the role of rail electrification in meeting the 
national oil independence goal established under section 101.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Comptroller General shall submit to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee 
on Transportation and Infrastructure of the House of Representatives a 
report describing the results of the study required under subsection 
(a).

               TITLE V--ALTERNATIVE TRANSPORTATION FUELS

                     Subtitle A--Advanced Biofuels

SEC. 501. ALLOWANCE OF INVESTMENT TAX CREDIT FOR ADVANCED BIOFUEL 
              FACILITIES.

    (a) In General.--Subsection (a) of section 48 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(6) Election to treat qualified advanced biofuel 
        facilities as energy property.--
                    ``(A) In general.--In the case of any qualified 
                property which is part of a qualified advanced biofuel 
                facility investment credit facility--
                            ``(i) such property shall be treated as 
                        energy property for purposes of this section, 
                        and
                            ``(ii) the energy percentage with respect 
                        to such property shall be 30 percent.
                    ``(B) Qualified property.--For purposes of this 
                paragraph, the term `qualified property' means 
                property--
                            ``(i) which is--
                                    ``(I) tangible personal property, 
                                or
                                    ``(II) other tangible property (not 
                                including a building or its structural 
                                components), but only if such property 
                                is used as an integral part of the 
                                qualified investment credit facility, 
                                and
                            ``(ii) with respect to which depreciation 
                        (or amortization in lieu of depreciation) is 
                        allowable.
                    ``(C) Qualified advanced biofuel facility.--For 
                purposes of this paragraph, the term `qualified 
                advanced biofuel facility' means any facility--
                            ``(i) the primary purpose of which is the 
                        production of advanced biofuels which are 
                        transportation-grade fuels,
                            ``(ii) which is originally placed in 
                        service by the taxpayer after the date of the 
                        enactment of this paragraph and before December 
                        31, 2015, and
                            ``(iii) with respect to which the taxpayer 
                        makes an election to have this paragraph apply.
                    ``(D) Advanced biofuels.--For purposes of 
                subparagraph (C), the term `advanced biofuel' means 
                alcohol (as defined in section 40(d)(1)), other than 
                ethanol derived from corn starch, used as a fuel which 
                has lifecycle greenhouse gas emissions (as defined in 
                section 211(o)(1)(H) of the Clean Air Act) at least 50 
                percent less than baseline lifecycle greenhouse gas 
                emissions (as defined in section 211(o)(1)(C) of such 
                Act).''.
    (b) Coordination With Special Allowance for Cellulosic Biofuel 
Plant Property.--Paragraph (8) of section 168(l) of the Internal 
Revenue Code of 1986 is amended by inserting ``or under section 
48(a)(6)'' before the period at the end.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 502. GRANTS FOR ADVANCED BIOFUEL FACILITY PROPERTY.

    Section 1603 of division B of the American Recovery and 
Reinvestment Act of 2009 is amended by adding at the end the following 
new subsection:
    ``(k) Application to Qualified Advanced Biofuel Facility 
Property.--In the case of qualified property (as defined in section 
48(a)(6)(B) of the Internal Revenue Code of 1986) which is part of a 
qualified advanced biofuel facility (within the meaning of section 
48(a)(6)(C) of such Code)--
            ``(1) such qualified property shall be treated as specified 
        energy property for purposes of this section, and
            ``(2) in applying this section to such qualified property--
                    ``(A) subsection (a) shall be applied--
                            ``(i) by substituting `the 2-year period 
                        beginning on the date of the enactment of this 
                        Act' for `2009 or 2010' each place it appears, 
                        and
                            ``(ii) by substituting `after such 2-year 
                        period' for `2010' in paragraph (2) thereof,
                    ``(B) the applicable percentage with respect to 
                such qualified property shall be 30 percent,
                    ``(C) the credit termination date with respect to 
                such qualified property shall be January 1, 2016, and
                    ``(D) subsection (j) shall be applied by 
                substituting `the date which is 9-months after the 2-
                year period described in subsection (k)(2)(A)(i)' for 
                `October 1, 2011'.''.

SEC. 503. INCLUSION OF ALGAE-BASED BIOFUEL IN DEFINITION OF CELLULOSIC 
              BIOFUEL.

    (a) Cellulosic Biofuel Producer Credit.--
            (1) General rule.--Paragraph (4) of section 40(a) of the 
        Internal Revenue Code of 1986 is amended by inserting ``and 
        algae-based'' after ``cellulosic''.
            (2) Definitions.--Paragraph (6) of section 40(b) of such 
        Code is amended--
                    (A) by inserting ``and algae-based'' after 
                ``Cellulosic'' in the heading,
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) In general.--The cellulosic and algae-based 
                biofuel producer credit of any taxpayer is an amount 
                equal to the applicable amount for each gallon of--
                            ``(i) qualified cellulosic biofuel 
                        production, and
                            ``(ii) qualified algae-based biofuel 
                        production.'',
                    (C) by redesignating subparagraphs (F), (G), and 
                (H) as subparagraphs (I), (J), and (K), respectively,
                    (D) by inserting ``and algae-based'' after 
                ``cellulosic'' in the heading of subparagraph (I), as 
                so redesignated,
                    (E) by inserting ``or algae-based biofuel, 
                whichever is appropriate,'' after ``cellulosic 
                biofuel'' in subparagraph (J), as so redesignated,
                    (F) by inserting ``and qualified algae-based 
                biofuel production'' after ``qualified cellulosic 
                biofuel production'' in subparagraph (K), as so 
                redesignated, and
                    (G) by inserting after subparagraph (E) the 
                following new subparagraphs:
                    ``(F) Qualified algae-based biofuel production.--
                For purposes of this section, the term `qualified 
                algae-based biofuel production' means any algae-based 
                biofuel which is produced by the taxpayer, and which 
                during the taxable year--
                            ``(i) is sold by the taxpayer to another 
                        person--
                                    ``(I) for use by such other person 
                                in the production of a qualified algae-
                                based biofuel mixture in such other 
                                person's trade or business (other than 
                                casual off-farm production),
                                    ``(II) for use by such other person 
                                as a fuel in a trade or business, or
                                    ``(III) who sells such algae-based 
                                biofuel at retail to another person and 
                                places such algae-based biofuel in the 
                                fuel tank of such other person, or
                            ``(ii) is used or sold by the taxpayer for 
                        any purpose described in clause (i).
                The qualified algae-based biofuel production of any 
                taxpayer for any taxable year shall not include any 
                alcohol which is purchased by the taxpayer and with 
                respect to which such producer increases the proof of 
                the alcohol by additional distillation.
                    ``(G) Qualified algae-based biofuel mixture.--For 
                purposes of this paragraph, the term `qualified algae-
                based biofuel mixture' means a mixture of algae-based 
                biofuel and gasoline or of algae-based biofuel and a 
                special fuel which--
                            ``(i) is sold by the person producing such 
                        mixture to any person for use as a fuel, or
                            ``(ii) is used as a fuel by the person 
                        producing such mixture.
                    ``(H) Algae-based biofuel.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `algae-based 
                        biofuel' means any liquid fuel, including 
                        gasoline, diesel, aviation fuel, and ethanol, 
                        which--
                                    ``(I) is produced from the biomass 
                                of algal organisms, and
                                    ``(II) meets the registration 
                                requirements for fuels and fuel 
                                additives established by the 
                                Environmental Protection Agency under 
                                section 211 of the Clean Air Act (42 
                                U.S.C. 7545).
                            ``(ii) Algal organism.--The term `algal 
                        organism' means a single- or multi-cellular 
                        organism which is primarily aquatic and 
                        classified as a non-vascular plant, including 
                        microalgae, blue-green algae (cyanobacteria), 
                        and macroalgae (seaweeds).
                            ``(iii) Exclusion of low-proof alcohol.--
                        Such term shall not include any alcohol with a 
                        proof of less than 150. The determination of 
                        the proof of any alcohol shall be made without 
                        regard to any added denaturants.''.
            (3) Conforming amendments.--
                    (A) Subparagraph (D) of section 40(d)(3) of such 
                Code is amended--
                            (i) by inserting ``and algae-based'' after 
                        ``cellulosic'' in the heading,
                            (ii) by inserting ``or (b)(6)(F)'' after 
                        ``(b)(6)(C)'' in clause (ii), and
                            (iii) by inserting ``or algae-based'' after 
                        ``such cellulosic''.
                    (B) Paragraph (6) of section 40(d) of such Code is 
                amended--
                            (i) by inserting ``and algae-based'' after 
                        ``cellulosic'' in the heading, and
                            (ii) by striking the first sentence and 
                        inserting ``No cellulosic and algae-based 
                        biofuel producer credit shall be determined 
                        under subsection (a) with respect to any 
                        cellulosic or algae-based biofuel unless such 
                        cellulosic or algae-based biofuel is produced 
                        in the United States and used as a fuel in the 
                        United States.''
                    (C) Paragraph (3) of section 40(e) of such Code is 
                amended by inserting ``and algae-based'' after 
                ``cellulosic'' in the heading.
                    (D) Paragraph (1) of section 4101(a) of such Code 
                is amended--
                            (i) by inserting ``or algae-based'' after 
                        ``cellulosic'', and
                            (ii) by inserting ``and 40(b)(6)(H), 
                        respectively'' after ``section 40(b)(6)(E)''.
    (b) Special Allowance for Cellulosic Biofuel Plant Property.--
Subsection (l) of section 168 of the Internal Revenue Code of 1986 is 
amended--
            (1) by inserting ``and Algae-based'' after ``Cellulosic'' 
        in the heading,
            (2) by inserting ``and any qualified algae-based biofuel 
        plant property'' after ``qualified cellulosic biofuel plant 
        property'' in paragraph (1),
            (3) by redesignating paragraphs (4) through (8), as amended 
        by section 501, as paragraphs (6) through (10), respectively,
            (4) by inserting ``or qualified algae-based biofuel plant 
        property'' after ``cellulosic biofuel plant property'' in 
        paragraph (7)(C), as so redesignated,
            (5) by striking ``with respect to'' and all that follows in 
        paragraph (9), as so redesignated, and inserting ``with respect 
        to any qualified cellulosic biofuel plant property and any 
        qualified algae-based biofuel plant property which ceases to be 
        such qualified property.'',
            (6) by inserting ``or qualified algae-based biofuel plant 
        property'' after ``cellulosic biofuel plant property'' in 
        paragraph (10), as so redesignated, and
            (7) by inserting after paragraph (3) the following new 
        paragraphs:
            ``(4) Qualified algae-based biofuel plant property.--The 
        term `qualified algae-based biofuel plant property' means 
        property of a character subject to the allowance for 
        depreciation--
                    ``(A) which is used in the United States solely to 
                produce algae-based biofuel,
                    ``(B) the original use of which commences with the 
                taxpayer after the date of the enactment of this 
                paragraph,
                    ``(C) which is acquired by the taxpayer by purchase 
                (as defined in section 179(d)) after the date of the 
                enactment of this paragraph, but only if no written 
                binding contract for the acquisition was in effect on 
                or before such date, and
                    ``(D) which is placed in service by the taxpayer 
                before January 1, 2013.
            ``(5) Algae-based biofuel.--
                    ``(A) In general.--The term `algae-based biofuel' 
                means any liquid fuel which is produced from the 
                biomass of algal organisms.
                    ``(B) Algal organism.--The term `algal organism' 
                means a single- or multi-cellular organism which is 
                primarily aquatic and classified as a non-vascular 
                plant, including microalgae, blue-green algae 
                (cyanobacteria), and macroalgae (seaweeds).''.
    (c) Effective Dates.--
            (1) Cellulosic biofuel producer credit.--The amendments 
        made by subsection (a) shall apply to fuel produced after the 
        date of the enactment of this Act.
            (2) Special allowance for cellulosic biofuel plant 
        property.--The amendments made by subsection (b) shall apply to 
        property purchased and placed in service after the date of the 
        enactment of this Act.

SEC. 504. EXTENSION OF CELLULOSIC BIOFUEL PRODUCER CREDIT.

    (a) In General.--Subparagraph (K) of section 40(b)(6) of the 
Internal Revenue Code of 1986, as redesignated by section 503(a)(2)(C), 
is amended by striking ``January 1, 2013'' and inserting ``January 1, 
2016'',

SEC. 505. EXTENSION OF SPECIAL ALLOWANCE FOR CELLULOSIC BIOFUEL PLANT 
              PROPERTY.

    (a) In General.--Paragraph (2)(D) of section 168(l) of the Internal 
Revenue Code of 1986 is amended by striking ``January 1, 2013'' and 
inserting ``January 1, 2016''.
    (b) Algae-Based Biofuel.--Paragraph (4)(D) of section 168(l) of the 
Internal Revenue Code of 1986, as amended by section 503(b)(7), is 
amended by striking ``January 1, 2013'' and inserting ``January 1, 
2016''.
    (c) Conforming Amendment.--Paragraph (7)(B) of section 168(l) of 
the Internal Revenue Code of 1986, as redesignated by section 
503(b)(3), is amended by striking ``January 1, 2013'' and inserting 
``January 1, 2016''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 506. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A of the Internal Revenue Code of 1986 is 
amended by striking ``December 31, 2009'' and inserting ``December 31, 
2015''.
    (b) Excise Tax Credits and Outlay Payments for Biodiesel and 
Renewable Diesel Fuel Mixtures.--
            (1) Paragraph (6) of section 6426(c) of the Internal 
        Revenue Code of 1986 is amended by striking ``December 31, 
        2009'' and inserting ``December 31, 2015''.
            (2) Subparagraph (B) of section 6427(e)(6) of the Internal 
        Revenue Code of 1986 is amended by striking ``December 31, 
        2009'' and inserting ``December 31, 2015''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2009.

SEC. 507. EXTENSION OF ALCOHOL FUELS TAX CREDITS.

    (a) In General.--Paragraph (1) of section 40(e) of the Internal 
Revenue Code of 1986 is amended--
            (1) in subparagraph (A), by striking ``December 31, 2010'' 
        and inserting ``December 31, 2015'', and
            (2) in subparagraph (B), by striking ``January 1, 2011'' 
        and inserting ``January 1, 2016''.
    (b) Rule for Credit for Ethanol Blenders.--Subsection (h) of 
section 40 of the Internal Revenue Code of 1986 is amended--
            (1) in paragraph (1), by striking ``during calendar years 
        2001 through 2010'' and inserting ``after calendar year 2001'', 
        and
            (2) in paragraph (2), by inserting at the end the following 
        flush sentence:
``In the case of any sale or use after calendar year 2010, the blender 
amount and the low-proof blender amount shall be 0 cents.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to alcohol produced, sold, or used after December 31, 2010.

             Subtitle B--Powering Vehicles With Natural Gas

SEC. 511. CREDIT FOR QUALIFIED NATURAL GAS MOTOR VEHICLES.

    (a) In General.--
            (1) In general.--Subsection (e) of section 30B of the 
        Internal Revenue Code of 1986 (relating to new qualified 
        alternative fuel motor vehicle credit) is amended by adding at 
        the end the following new paragraphs:
            ``(6) Special rules for qualified natural gas motor 
        vehicles.--
                    ``(A) In general.--In the case of a qualified 
                natural gas motor vehicle--
                            ``(i) such motor vehicle shall be treated 
                        as a new qualified alternative fuel motor 
                        vehicle under this subsection,
                            ``(ii) paragraph (3) shall be applied by 
                        multiplying each of the dollar amounts 
                        contained in such paragraph by 2, and
                            ``(iii) the credit allowed under this 
                        subsection shall be transferrable as provided 
                        in subparagraph (B).
                    ``(B) Transferability of credit.--
                            ``(i) In general.--A taxpayer who places in 
                        service qualified natural gas motor vehicle may 
                        transfer the credit allowed under this 
                        subsection with respect to such vehicle through 
                        an assignment to the seller, the manufacturer, 
                        or the lessee of such vehicle. Such transfer 
                        may be revoked only with the consent of the 
                        Secretary.
                            ``(ii) Regulations.--The Secretary shall 
                        prescribe such regulations as necessary to 
                        ensure that any credit transferred under clause 
                        (i) is claimed once and not reassigned by such 
                        other person.
            ``(7) Qualified natural gas motor vehicle.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified natural gas motor vehicle' means 
                any motor vehicle--
                            ``(i) which is described in subparagraph 
                        (B), (C), or (D),
                            ``(ii) the original use of which commences 
                        with the taxpayer,
                            ``(iii) which is acquired by the taxpayer 
                        for use or lease, but not for resale, and
                            ``(iv) which is placed in service before 
                        the date which is 10 years after the date of 
                        the enactment of this paragraph.
                    ``(B) Heavy duty vehicles.--A motor vehicle is 
                described in this subparagraph if such motor vehicle--
                            ``(i) is made by a manufacturer,
                            ``(ii) has a gross vehicle weight rating of 
                        more than 8,500 pounds, and
                            ``(iii) is--
                                    ``(I) only capable of operating on 
                                compressed or liquified natural gas, or
                                    ``(II) capable of operating for 
                                more than 175 miles on 1 fueling of 
                                compressed or liquified natural gas and 
                                is capable of operating on gasoline or 
                                diesel fuel.
                    ``(C) Light and medium duty vehicles.--A motor 
                vehicle is described in this subparagraph if such motor 
                vehicle--
                            ``(i) is made by a manufacturer,
                            ``(ii) has a gross vehicle weight rating of 
                        not more 8,500 pounds,
                            ``(iii) is--
                                    ``(I) only capable of operating on 
                                compressed or liquified natural gas, or
                                    ``(II) capable of operating for 
                                more than 175 miles on 1 fueling of 
                                compressed or liquified natural gas and 
                                is capable of operating on gasoline or 
                                diesel fuel,
                            ``(iv) is of a character subject to 
                        depreciation, and
                            ``(v) is acquired by a taxpayer who--
                                    ``(I) owns and operates not less 
                                than 10 motor vehicles in the course of 
                                a trade or business at the time of the 
                                acquisition, and
                                    ``(II) has placed in service more 
                                than 2 motor vehicles described in 
                                clauses (i) through (iv) or described 
                                in subparagraph (D)(iii) after the date 
                                of the enactment of this paragraph.
                    ``(D) Converted or repowered vehicles.--
                            ``(i) In general.--A motor vehicle is 
                        described in this subparagraph if such motor 
                        vehicle is a motor vehicle described in clause 
                        (ii) or clause (iii) which is converted or 
                        repowered so that it--
                                    ``(I) is only capable of operating 
                                on compressed or liquified natural gas, 
                                or
                                    ``(II) is capable of operating for 
                                more than 175 miles on 1 fueling of 
                                compressed or liquified natural gas and 
                                is capable of operating on gasoline or 
                                diesel fuel, is capable of operating on 
                                compressed or liquefied natural gas.
                            ``(ii) Heavy duty vehicles.--A motor 
                        vehicle is described in this clause if such 
                        motor vehicle--
                                    ``(I) has a gross vehicle weight 
                                rating of more than 8,500 pounds, and
                                    ``(II) was not capable of operating 
                                on compressed or liquified natural gas 
                                before the date of such conversion or 
                                repower.
                            ``(iii) Light and medium duty vehicles.--A 
                        motor vehicle is described in this clause if 
                        such motor vehicle--
                                    ``(I) has a gross vehicle weight 
                                rating of not more 8,500 pounds,
                                    ``(II) was not capable of operating 
                                on compressed or liquified natural gas 
                                before the date of such conversion or 
                                repower,
                                    ``(III) is of a character subject 
                                to depreciation,
                                    ``(IV) is acquired by a taxpayer 
                                who owns and operates not less than 10 
                                motor vehicles in the course of a trade 
                                or business at the time of the 
                                acquisition, and
                                    ``(V) is acquired by a taxpayer who 
                                has placed in service more than 2 motor 
                                vehicles described in subclauses (I) 
                                through (III) or described in 
                                subparagraph (C) after the date of the 
                                enactment of this paragraph.
                            ``(iv) Special rules.--
                                    ``(I) Treatment as new.--For 
                                purposes of this subsection, the 
                                original use of any motor vehicle 
                                described in clause (i) shall be 
                                treated as beginning with the first use 
                                after the date of the conversion or 
                                repower.
                                    ``(II) Rule of construction.--In 
                                the case of a used vehicle which is 
                                converted or repowered, nothing in this 
                                section shall be construed to require 
                                that the motor vehicle be acquired in 
                                the year the credit is claimed under 
                                this section with respect to such 
                                vehicle.
                    ``(E) Special rule.--For purposes of this 
                subsection, in the case of a motor vehicle which--
                            ``(i) is described in subparagraph (C) or 
                        (D)(iii),
                            ``(ii) is placed in service after the date 
                        of the enactment of this paragraph, and
                            ``(iii) is placed in service by a taxpayer 
                        in a taxable year prior to the taxable year in 
                        which such taxpayer places in service the third 
                        such motor vehicle described in subparagraph 
                        (C) or (D)(iii) after such date of enactment.
                such motor vehicle shall be treated as placed in 
                service in the taxable year in which such third motor 
                vehicle is placed in service.''.
            (2) Conforming amendment.--Subparagraph (B) of section 
        30B(e)(5) of such Code is amended by inserting ``(other than a 
        qualified natural gas motor vehicle)'' after ``paragraph (3)''.
    (b) Mixed-Fuel Vehicles.--Subparagraph (C) of section 30B(e)(5) of 
the Internal Revenue Code of 1986 is amended by striking ``a mixed-fuel 
vehicle which operates using'' and all that follows and inserting ``a 
mixed-fuel vehicle which--
                            ``(i) in the case of such a vehicle which 
                        is capable of operating on compressed or 
                        liquified natural gas, operates using at least 
                        65 percent compressed or liquified natural gas 
                        and not more than 35 percent petroleum-based 
                        fuel, and
                            ``(ii) in the case of any other such 
                        vehicle, operates using at least 75 percent 
                        alternative fuel and not more than 25 percent 
                        petroleum-based fuel.''.
    (c) Alternative Minimum Tax Treatment.--Subparagraph (B) of section 
38(c)(4) of the Internal Revenue Code of 1986 is amended by 
redesignating clauses (i) through (ix) as clauses (ii) through (x), 
respectively, and by inserting after before clause (ii) (as so 
redesignated) the following new clause:
                            ``(i) the amount of the credit determined 
                        under section 30B which is attributable to a 
                        qualified natural gas motor vehicle (as defined 
                        in section 30B(e)(7)).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 512. NATURAL GAS VEHICLE BONDS.

    (a) In General.--Subpart I of part IV of subchapter A of chapter 1 
(relating to qualified tax credit bonds) of the Internal Revenue Code 
of 1986, as amended by section 306, is amended by adding at the end the 
following new section:

``SEC. 54H. NATURAL GAS VEHICLE BONDS.

    ``(a) Natural Gas Vehicle Bond.--For purposes of this subpart, the 
term `natural gas vehicle bond' means any bond issued as part of an 
issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for capital expenditures incurred by a 
        governmental body for 1 or more qualified natural gas vehicle 
        projects placed in service by such governmental body primarily 
        for governmental or public use,
            ``(2) the bond is issued by a governmental body,
            ``(3) the issuer designates such bond for purposes of this 
        section, and
            ``(4) in lieu of the requirements of section 54A(d)(2), the 
        issue meets the requirements of subsection (c).
    ``(b) Limitation on Amount of Bonds Designated.--
            ``(1) In general.--The maximum aggregate face amount of 
        bonds which may be designated under subsection (a) by any 
        issuer shall not exceed the limitation amount allocated under 
        this subsection to such issuer.
            ``(2) National limitation on amount of bonds designated.--
        There is a national natural gas vehicle bond limitation of 
        $3,000,000,000.
            ``(3) Allocation by secretary.--The Secretary shall 
        allocate the amount described in paragraph (2) among qualified 
        natural gas vehicle projects in such manner as the Secretary 
        determines appropriate.
    ``(c) Special Rules Relating to Expenditures.--
            ``(1) In general.--An issue shall be treated as meeting the 
        requirements of this subsection if, as of the date of issuance, 
        the issuer reasonably expects--
                    ``(A) 100 percent or more of the available project 
                proceeds of such issue are to be spent for 1 or more 
                qualified natural gas vehicle projects within the 5-
                year period beginning on the date of issuance of the 
                natural gas vehicle bond,
                    ``(B) a binding commitment with a third party to 
                spend at least 10 percent of such available project 
                proceeds will be incurred within the 6-month period 
                beginning on the date of issuance of the natural gas 
                vehicle bond, and
                    ``(C) such projects will be completed with due 
                diligence and such available project proceeds will be 
                spent with due diligence.
            ``(2) Extension of period.--Upon submission of a request 
        prior to the expiration of the period described in paragraph 
        (1)(A), the Secretary may extend such period if the issuer 
        establishes that the failure to satisfy the 5-year requirement 
        is due to reasonable cause and the related projects will 
        continue to proceed with due diligence.
            ``(3) Failure to spend required amount of bond proceeds 
        within 5 years.--To the extent that less than 100 percent of 
        the available project proceeds of such issue are expended by 
        the close of the 5-year period beginning on the date of 
        issuance (or if an extension has been obtained under paragraph 
        (2), by the close of the extended period), the issuer shall 
        redeem all of the nonqualified bonds within 90 days after the 
        end of such period. For purposes of this paragraph, the amount 
        of the nonqualified bonds required to be redeemed shall be 
        determined in the same manner as under section 142.
    ``(d) Governmental Body.--For purposes of this section, the term 
`governmental body' means any State, territory, possession of the 
United States, the District of Columbia, Indian tribal government, and 
any political subdivision thereof.
    ``(e) Qualified Natural Gas Vehicle Project.--For purposes of this 
subpart, the term `qualified natural gas vehicle project' means--
            ``(1) 1 or more qualified natural gas vehicles (as defined 
        in section 30B(e)(7)), or
            ``(2) 1 or more qualified alternative fuel vehicle 
        refueling properties which are used to store and or dispense 
        compressed or liquefied natural gas (within the meaning of 
        section 30C(c)).
    ``(f) Termination.--This section shall not apply with respect to 
any bond issued after December 31, 2019.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) of the Internal Revenue 
        Code of 1986, as amended by section 306, is amended by striking 
        ``or'' at the end of subparagraph (E), by inserting ``or'' at 
        the end of subparagraph (F), and by inserting after 
        subparagraph (F) the following new subparagraph:
                    ``(G) a natural gas vehicle bond,''.
            (2) Subparagraph (C) of section 54A(d)(2) of such Code, as 
        amended by section 306, is amended by striking ``and'' at the 
        end of clause (v), by striking the period at the end of clause 
        (vi) and inserting ``, and'', and by adding at the end the 
        following new clause:
                            ``(vii) in the case of a natural gas 
                        vehicle bond, a purpose specified in section 
                        54H(a)(1).''.
    (c) Clerical Amendment.--The table of sections for subpart I of 
part IV of subchapter A of chapter 1 of such Code, as amended by 
section 306, is amended by adding at the end the following new item:

``Sec. 54H. Natural gas vehicle bonds.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 513. INCENTIVES FOR MANUFACTURING FACILITIES PRODUCING VEHICLES 
              FUELED BY COMPRESSED OR LIQUIFIED NATURAL GAS.

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

``SEC. 179F. EXPENSING FOR MANUFACTURING FACILITIES PRODUCING VEHICLES 
              FUELED BY COMPRESSED NATURAL GAS OR LIQUIFIED NATURAL 
              GAS.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat the 
applicable percentage of the cost of any qualified natural gas vehicle 
manufacturing facility property as an expense which is not chargeable 
to a capital account. Any cost so treated shall be allowed as a 
deduction for the taxable year in which the qualified manufacturing 
facility property is placed in service.
    ``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage is--
            ``(1) 100 percent, in the case of qualified natural gas 
        vehicle manufacturing facility property which is placed in 
        service before January 1, 2015, and
            ``(2) 50 percent, in the case of qualified natural gas 
        vehicle manufacturing facility property which is placed in 
        service after December 31, 2014, and before January 1, 2020.
    ``(c) Election.--
            ``(1) In general.--An election under this section for any 
        taxable year shall be made on the taxpayer's return of the tax 
        imposed by this chapter for the taxable year. Such election 
        shall be made in such manner as the Secretary may by 
        regulations prescribe.
            ``(2) Election irrevocable.--Any election made under this 
        section may not be revoked except with the consent of the 
        Secretary.
    ``(d) Qualified Natural Gas Vehicle Manufacturing Facility 
Property.--For purposes of this section--
            ``(1) In general.--The term `qualified natural gas vehicle 
        manufacturing facility property' means any qualified property--
                    ``(A) the original use of which commences with the 
                taxpayer,
                    ``(B) which is placed in service by the taxpayer 
                after the date of the enactment of this section and 
                before January 1, 2020, and
                    ``(C) no written binding contract for the 
                construction of which was in effect on or before the 
                date of the enactment of this section.
            ``(2) Qualified property.--
                    ``(A) In general.--The term `qualified property' 
                means any property which is a facility or a portion of 
                a facility used for the production of--
                            ``(i) any qualified natural gas vehicles 
                        (as defined in section 30B(e)(7)), or
                            ``(ii) any eligible component.
                    ``(B) Eligible component.--The term `eligible 
                component' means any component which is designed 
                specifically for use in such a qualified natural gas 
                vehicle.
    ``(e) Special Rule for Dual Use Property.--
            ``(1) In general.--In the case of any qualified natural gas 
        vehicle manufacturing facility property which is used to 
        produce both property described in clauses (i) and (ii) of 
        subsection (d)(2)(A) and property which is not so described, 
        the amount of costs taken into account under subsection (a) 
        shall be reduced by an amount equal to--
                    ``(A) the total amount of such costs (determined 
                before the application of this subsection), multiplied 
                by
                    ``(B) the percentage of property expected to be 
                produced which is not so described.
            ``(2) Regulations.--The Secretary shall prescribe such 
        regulations as are necessary to carry out the purpose of this 
        subsection.''.
            (2) Clerical amendment.--The table of sections of part VI 
        of subchapter B of chapter 1 of the Internal Revenue Code of 
        1986 is amended by inserting after the item relating to section 
        179E the following new item:

``Sec. 179F. Expensing for manufacturing facilities producing vehicles 
                            fueled by compressed natural gas or 
                            liquified natural gas.''.
    (b) Refund of Credit for Prior Year Minimum Tax Liability.--Section 
53 of the Internal Revenue Code of 1986 (relating to credit for prior 
year minimum tax liability) is amended by adding at the end the 
following new subsection:
    ``(g) Election To Treat Amounts Attributable to Qualified 
Manufacturing Facility.--
            ``(1) In general.--In the case of an eligible taxpayer, the 
        amount determined under subsection (c) for the taxable year 
        (after the application of subsection (e)) shall be increased by 
        an amount equal to the applicable percentage of any qualified 
        natural gas vehicle manufacturing facility property which is 
        placed in service during the taxable year.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage is--
                    ``(A) 35 percent, in the case of qualified natural 
                gas vehicle manufacturing facility property which is 
                placed in service before January 1, 2015, and
                    ``(B) 17.5 percent, in the case of qualified 
                natural gas vehicle manufacturing facility property 
                which is placed in service after December 31, 2014, and 
                before January 1, 2020.
            ``(3) Eligible taxpayer.--For purposes of this subsection, 
        the term `eligible taxpayer' means any taxpayer--
                    ``(A) who places in service qualified natural gas 
                vehicle manufacturing facility property during the 
                taxable year,
                    ``(B) who does not make an election under section 
                179F(c), and
                    ``(C) who makes an election under this subsection.
            ``(4) Other definitions and special rules.--
                    ``(A) Qualified natural gas vehicle manufacturing 
                facility property.--The term `qualified natural gas 
                vehicle manufacturing facility property' has the 
                meaning given such term under section 179F(d).
                    ``(B) Special rule for dual use property.--In the 
                case of any qualified natural gas vehicle manufacturing 
                facility property which is used to produce both 
                qualified property (as defined in section 179F(d)) and 
                other property which is not qualified property, the 
                amount of costs taken into account under paragraph (1) 
                shall be reduced by an amount equal to--
                            ``(i) the total amount of such costs 
                        (determined before the application of this 
                        subparagraph), multiplied by
                            ``(ii) the percentage of property expected 
                        to be produced which is not qualified property.
                    ``(C) Election.--
                            ``(i) In general.--An election under this 
                        subsection for any taxable year shall be made 
                        on the taxpayer's return of the tax imposed by 
                        this chapter for the taxable year. Such 
                        election shall be made in such manner as the 
                        Secretary may by regulations prescribe.
                            ``(ii) Election irrevocable.--Any election 
                        made under this subsection may not be revoked 
                        except with the consent of the Secretary.
            ``(5) Credit refundable.--For purposes of this title (other 
        than this section), the credit allowed by reason of this 
        subsection shall be treated as if it were allowed under subpart 
        C.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 514. STUDY OF INCREASING NATURAL GAS AND LIQUEFIED PETROLEUM GAS 
              VEHICLES IN FEDERAL FLEET.

    (a) In General.--The Administrator of General Services, in 
consultation with the Administrator and the Secretary, shall conduct a 
study of the means by which the Federal fleet could increase the number 
of light-, medium-, and heavy-duty natural gas and liquefied petroleum 
gas vehicles in the fleet.
    (b) Components.--In conducting the study, the Administrator of 
General Services shall--
            (1) take into consideration Executive Order 13514 (74 Fed. 
        Reg. 52117; relating to Federal leadership in environmental, 
        energy, and economic performance) requiring agencies to meet a 
        30 percent reduction in vehicle fleet petroleum use by 2020;
            (2) assess--
                    (A) the barriers to increasing the number of 
                natural gas and liquefied petroleum gas vehicles in the 
                Federal fleet;
                    (B) the potential for maximizing the use of natural 
                gas and liquefied petroleum gas vehicles in the fleet;
                    (C) the expected reductions in petroleum use and 
                greenhouse gas emissions as part of the potential 
                impacts of increasing natural gas and liquefied 
                petroleum in the fleet; and
                    (D) the lifecycle costs involved in fleet 
                conversions, including the cost savings from reduced 
                fuel consumption;
            (3) provide a separate analysis of the potential costs of 
        installing the specific fueling infrastructure required to 
        increase natural gas and liquefied petroleum gas in the fleet; 
        and
            (4) include feasibility assessments for increasing the 
        number of light-, medium-, and heavy-duty natural gas and 
        liquefied petroleum gas vehicles in the fleet over a base 
        period of 10 years and accelerated periods of 3 and 5 years.
    (c) Report.--Not later than 180 days after the date of enactment of 
this Act, the Administrator of General Services shall submit to the 
appropriate committees of Congress a report on the results of the study 
conducted under this section.

             TITLE VI--HEATING OIL AND PROPANE CONSERVATION

SEC. 601. ENERGY EFFICIENCY IMPROVEMENTS FOR HEATING OIL, PROPANE, AND 
              KEROSENE USE IN HOMES AND COMMERCIAL BUILDINGS.

    (a) Definitions.--In this section:
            (1) Cost-effective.--The term ``cost-effective'', with 
        respect to an energy efficiency program, means that the program 
        meets the total resource cost test, which requires that the net 
        present value of economic benefits over the life of the program 
        or measure (including avoided supply and delivery costs and 
        deferred or avoided investments) is greater than the net 
        present value of the economic costs over the life of the 
        program, including program costs and incremental costs borne by 
        the energy consumer.
            (2) Department.--The term ``Department'' means the 
        Department of Energy.
            (3) NORA.--The term ``NORA'' means a national oilheat 
        research alliance established pursuant to section 704 of the 
        National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 
        note; Public Law 106-469) or a successor entity.
            (4) PERC.--The term ``PERC'' means the Propane Education 
        and Research Council authorized by the Propane Education and 
        Research Act of 1996 (15 U.S.C. 6401 et seq.) or a successor 
        entity.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Energy Efficiency Improvement for Heating Oil, Propane, and 
Kerosene Program.--
            (1) Establishment.--There is established in the Department 
        the Energy Efficiency Improvement for Heating Oil, Propane, and 
        Kerosene Program under which the Secretary shall provide funds 
        to each State that has elected to participate in programs 
        operated by NORA or PERC to carry out cost-effective energy 
        efficiency programs for homes and buildings that use home 
        heating oil, propane, and kerosene.
            (2) Distribution of funds.--The Secretary shall distribute 
        funds under paragraph (1) among the States based on the 
        relative amount of funds collected in each State under the 
        National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 
        note; Public Law 106-469) and the Propane Education and 
        Research Act of 1996 (15 U.S.C. 6401 et seq.).
    (c) Use of Proceeds.--
            (1) In general.--A State shall use the amounts distributed 
        under subsection (b)(2) to carry out cost-effective energy 
        efficiency programs for consumers that use home heating oil, 
        propane, or kerosene for residential or commercial purposes.
            (2) Administration and delivery mechanisms.--In 
        administering a program under this section, a State shall--
                    (A) to the maximum extent practicable, deliver 
                efficiency programs through, or integrated with, 
                existing energy efficiency programs supervised by the 
                State, including, as appropriate, energy efficiency 
                programs administered by parties other than the State;
                    (B) to the maximum extent practicable, coordinate 
                the administration and delivery of energy efficiency 
                programs supported under this section, among other such 
                programs and with existing programs for various fuel 
                types, to deliver comprehensive, fuel-blind, 
                coordinated programs to consumers;
                    (C) ensure that funding provided under this section 
                does not displace or substitute for existing or 
                alternative sources of funding for energy efficiency 
                programs;
                    (D) taking into account subparagraphs (A) through 
                (C), designate 1 or more energy efficiency program 
                administrators for cost-effective home heating oil, 
                propane, and kerosene efficiency programs;
                    (E) designate an existing, or establish a new, 
                stakeholder oversight council or equivalent to review 
                efficiency program designs and efficiency program cost-
                effectiveness and make recommendation for improvement 
                and ensure coordination between efficiency programs for 
                other fuels such as electricity and natural gas;
                    (F) establish methodologies and processes for the 
                manner by which efficiency programs are developed, 
                administered, reviewed, and approved in the State and 
                report to the Secretary annually on the methodologies 
                and processes used to develop, administer, review, and 
                approve home heating oil, propane, and kerosene 
                programs; and
                    (G) ensure that evaluation, monitoring, and 
                verification of the efficiency programs are conducted 
                by an independent third-party annually with reporting 
                to the States, public, and the Secretary.
    (d) Reports.--
            (1) State.--Not later than April 30 of each year, each 
        State that receives funds under this section shall submit to 
        the Secretary a report for the previous calendar year in 
        accordance with such requirements as the Secretary may 
        prescribe that--
                    (A) describes the use by the State of funds 
                provided by this section, including a description of 
                the cost-effective energy efficiency programs funded;
                    (B) demonstrates the consumer savings, cost-
                effectiveness of, and the lifetime and annual energy 
                savings achieved by, energy efficiency programs funded 
                under this section; and
                    (C) includes a report prepared by an independent 
                third party, in accordance with such regulations as the 
                Secretary may issue, evaluating the performance of the 
                cost-effective energy efficiency programs funded under 
                this section, including consumer savings, cost-
                effectiveness of, and the lifetime and annual energy 
                savings of the efficiency programs.
            (2) Secretary.--
                    (A) In general.--Not later than April 30, 2013, and 
                every 2 years thereafter, the Secretary shall submit to 
                Congress a report containing--
                            (i) an evaluation of the consumer savings, 
                        cost-effectiveness of, and the lifetime and 
                        annual energy savings achieved by, energy 
                        efficiency programs funded under this section; 
                        and
                            (ii) recommendations for means of more 
                        effectively achieving consumer savings, cost-
                        effectiveness, and lifetime and annual energy 
                        savings through efficiency programs for home 
                        heating oil, propane, and kerosene consumer for 
                        residential or commercial purposes.
                    (B) Publication.--The Secretary shall make the 
                reports submitted under subparagraph (A) available to 
                the public, including by publishing the reports on the 
                Internet.
    (e) Enforcement.--If the Secretary determines that a State is not 
in compliance with this section, the Secretary may distribute funds 
that would have been distributed to the State under subsection (b)2) 
among the remaining States, on a pro rata basis, for use in carrying 
out programs under this section.

SEC. 602. RENEWABLE BIOMASS THERMAL ENERGY FOR COMMERCIAL BUILDINGS.

    (a) Definitions.--In this section:
            (1) Commercial building.--
                    (A) In general.--The term ``commercial building'' 
                means a building that--
                            (i) is located in the United States; and
                            (ii) was in existence or initially designed 
                        as of December 31, 2009.
                    (B) Exclusions.--The term ``commercial building'' 
                does not include--
                            (i) a federally owned building; or
                            (ii) a residential building.
            (2) Eligible building.--The term ``eligible building'' 
        means a commercial building or multifamily residential building 
        that uses (or, if under development but not yet constructed, is 
        designed to consume) heating oil or another petroleum product 
        as the primary thermal energy source of the building.
            (3) Multifamily residential building.--
                    (A) In general.--The term ``multifamily residential 
                building'' means a structure of 5 or more dwelling 
                units that--
                            (i) is located in the United States; and
                            (ii) was in existence or initially designed 
                        as of December 31, 2009.
                    (B) Exclusion.--The term ``multifamily residential 
                building'' does not include a federally owned building.
            (4) Program.--The term ``program'' means the renewable 
        biomass thermal energy loan program established under this 
        section.
            (5) Qualified boiler.--The term ``qualified boiler'' means 
        a wood or wood-pellet fired boiler or furnace that--
                    (A) has a capacity of not less than 300,000 Btu per 
                hour; and
                    (B) meets or exceeds 60 percent total system 
                efficiency based on lower heating value.
            (6) Qualified program delivery entity.--The term 
        ``qualified program delivery entity'' means a State, political 
        subdivision of a State, tribal government, energy utility, 
        natural gas utility, nonprofit or community-based organization, 
        energy service company, retailer, or any other qualified entity 
        that--
                    (A) meets the eligibility requirements of this 
                section; and
                    (B) is approved by the State that administers the 
                program in the State.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Establishment.--The Secretary shall establish a renewable 
biomass thermal energy loan program under which the Secretary shall 
make grants to States to support financial assistance provided by 
qualified program delivery entities for replacing, in eligible 
buildings, thermal energy systems that use heating oil or another 
petroleum product in qualified boilers.
    (c) Eligibility of Qualified Program Delivery Entities.--To be 
eligible to participate in the program, a qualified program delivery 
entity--
            (1) shall offer a financing product under which eligible 
        participants may pay over time for the cost to the owner of an 
        eligible building (after all applicable Federal, State, local, 
        and other rebates or incentives are applied) of replacing or 
        redesigning a thermal energy system that uses heating oil or 
        another petroleum product with a qualified boiler;
            (2) shall offer an incentive or other strategy for 
        encouraging the owner of an eligible building to make energy 
        efficiency improvements to the thermal energy delivery system 
        of an eligible building at the same time as a qualified boiler 
        is installed;
            (3) shall establish standard underwriting criteria to 
        determine the eligibility of program applicants, which criteria 
        shall be consistent with commercially recognized best practices 
        applicable to the form of financial assistance being provided 
        (as determined by the designated entity administering the 
        program in the State); and
            (4) may establish and offer financing mechanisms to pool 
        the needs of multiple eligible buildings into a single finance 
        package in order to lower transactions costs and enable 
        projects in small or low-income municipalities to participate 
        in the program.
    (d) Allocation.--In making funds available to States for each 
fiscal year under this section, the Secretary shall use the formula 
used to allocate funds to States to carry out State energy conservation 
plans established under part D of title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6321 et seq.).
    (e) Qualified Program Delivery Entities.--Before making a grant to 
a State under this section, the Secretary shall require the Governor of 
the State to provide to the Secretary a letter of assurance that the 
State--
            (1) has 1 or more qualified program delivery entities that 
        meet the requirements of this section;
            (2) has established a loan program mechanism that 
        incorporates an effective repayment mechanism, which may 
        include--
                    (A) on-utility-bill repayment;
                    (B) tax assessment or other form of property 
                assessment financing;
                    (C) municipal service charges;
                    (D) energy or energy efficiency services contracts; 
                or
                    (E) alternative contractual repayment mechanisms 
                that have been demonstrated to have appropriate risk 
                mitigation features; and
            (3) will provide, in a timely manner, all information 
        regarding the administration of the program as the Secretary 
        may require to permit the Secretary to meet the reporting 
        requirements of subsection (h).
    (f) Use of Grant Funds.--Grant funds made available to States under 
the program may be used to support financing products offered by 
qualified program delivery entities to eligible participants, by 
providing--
            (1) interest rate reductions;
            (2) loan loss reserves or other forms of credit 
        enhancement;
            (3) revolving loan funds from which qualified program 
        delivery entities may offer direct loans;
            (4) other debt instruments or financial products 
        necessary--
                    (A) to maximize leverage provided through available 
                funds; and
                    (B) to support widespread deployment of qualified 
                boilers; and
            (5) technical assistance delivered for nonprofit or 
        community based organizations and local governments in 
        economically distressed counties, on financing options or 
        project development and design offered to eligible entities, 
        particularly eligible entities located in low-income 
        communities, HUB zones, or other Federal designations aimed at 
        increasing the participation and benefit from Federal programs 
        of underserved or low-income communities.
    (g) Use of Repayment Funds.--In the case of a revolving loan fund 
established by a State described in subsection (f)(3), a qualified 
program delivery entity may use funds repaid by eligible participants 
under the program to provide financial assistance for additional 
eligible participants to make improvements described in subsection (b) 
in a manner that is consistent with this section or other such criteria 
as are prescribed by the State.
    (h) Program Evaluation.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit to Congress a program 
evaluation that describes--
            (1) how many eligible participants have participated in the 
        program;
            (2) how many jobs have been created through the program, 
        directly and indirectly;
            (3) what steps could be taken to promote further deployment 
        of qualified boilers;
            (4) the quantity of verifiable energy savings, renewable 
        energy deployment, eligible building owner energy bill savings, 
        and other benefits of the program; and
            (5) the performance of the programs carried out by 
        qualified program delivery entities under this section, 
        including information on the rate of default and repayment.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2011 through 2020.
                                 <all>
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