American Energy Opportunity Act of 2014

To greatly enhance America’s path toward energy independence and economic and national security, to conserve energy use, to promote innovation, to achieve lower emissions, cleaner air, cleaner water, and cleaner land, to rebuild our Nation’s aging roads, bridges, locks, and dams, and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the American Energy Opportunity Act of 2014 (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—Offshore Leasing and Other Energy Provisions Subtitle A—Offshore Leasing Sec. 101. Leasing program considered approved. Sec. 102. Lease sales. Sec. 103. Seaward boundaries of states. Sec. 104. Military operations. Sec. 105. Coordination with adjacent states. Sec. 106. Gulf of Mexico oil and gas. Sec. 107. Sharing of revenues. Sec. 108. Inventory of offshore energy resources. Sec. 109. Prohibitions on surface occupancy and other Appropriate environmental safeguards. Subtitle B—Expedited Judicial Review Sec. 121. Definitions. Sec. 122. Exclusive jurisdiction over causes and claims relating to covered oil and natural gas activities. Sec. 123. Time for filing petition; standing. Sec. 124. Timetable. Sec. 125. Limitation on scope of review and relief. Sec. 126. Presidential waiver. Sec. 127. Legal fees. Sec. 128. Exclusion. Subtitle C—Other Energy Provisions Sec. 131. Elimination of restriction on energy alternatives and energy efficiency. Sec. 132. Policies regarding buying and building American. Sec. 133. Clean coal technology deployment grant and loan program. Title II—Modifying the Strategic Petroleum Reserve and Funding Conservation and Energy Research and Development Sec. 201. Findings. Sec. 202. Definitions. Sec. 203. Objectives. Sec. 204. Modification of the strategic petroleum reserve. Sec. 205. Energy Independence and Security Fund. Title III—Cleaner Energy Production and Energy Conservation Incentives Sec. 301. Extension of renewable energy credit. Sec. 302. Extension of credit for energy efficient appliances. Sec. 303. Extension of credit for nonbusiness energy property. Sec. 304. Extension of credit for residential energy efficient property. Sec. 305. Extension of new energy efficient home credit. Sec. 306. Extension of energy efficient commercial buildings deduction. Sec. 307. Extension of energy credit. Sec. 308. Extension of credit for new clean renewable energy bonds. Sec. 309. Expensing of mechanical insulation property. Title IV—Increase Diversification and Efficiency of America's Transportation and Electric System Subtitle A—Diversification of Fuel Source for America's Short-Haul Transportation System Sec. 401. Minimum Federal fleet requirement. Sec. 402. Use of HOV facilities by light-duty, plug-in electric drive vehicles or new qualified alternative fuel motor vehicles. Sec. 403. Recharging infrastructure. Sec. 404. Loan guarantees for advanced battery purchases. Sec. 405. Study of end-of-useful-life options for motor vehicle batteries. Sec. 406. Study and demonstration electrification of postal fleet. Sec. 407. Study of development of common standards for PHEVs and EVs between the United States, Europe and Asia. Subtitle B—Incentives for Diversification of Transportation Sec. 420. Amendment of 1986 Code. Sec. 421. Extension and modification of credit for fuel cell, hybrid, lean burn, and alternative fuel vehicles. Sec. 422. Extension and expansion of credit for new qualified plug-in electric drive motor vehicles. Sec. 423. Extension of credit for certain plug-in electric vehicles. Sec. 424. Tax credit for most efficient vehicle in class. Sec. 425. Extension of credit and extension of temporary increase in credit for alternative fuel vehicle refueling property. Sec. 426. Modification of alternative fuel credit. Sec. 427. Extension of credits for biodiesel and renewable diesel. Subtitle C—Low-Carbon Diversification of Electric System Sec. 431. Innovative low-carbon loan guarantee program. Sec. 432. Ensuring revenues are sufficient for implementation of title IV. I Offshore Leasing and Other Energy Provisions A Offshore Leasing 101. Leasing program considered approved (a) In general The Draft Proposed Outer Continental Shelf Oil and Gas Leasing Program 2010–2015 issued by the Secretary of the Interior (referred to in this section as the Secretary 43 U.S.C. 1344 (b) Final environmental impact statement The Secretary is considered to have issued a final environmental impact statement for the program described in subsection (a) in accordance with all requirements under section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). (c) Correction of dates The Secretary of the Interior shall update the dates and deadlines proscribed in the program described in subsection (a) to reflect the time that has passed between the date the program was issued and the date of enactment of this Act. 102. Lease sales (a) Outer continental shelf (1) In general Except as provided in paragraph (2), not later than 30 days after the date of enactment of this Act and every 270 days thereafter, the Secretary of the Interior (referred to in this section as the Secretary (2) Subsequent determinations and sales If the Secretary determines that there is not a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf in a planning area under this subsection, not later than 2 years after the date of enactment of the determination and every 2 years thereafter, the Secretary shall— (A) determine whether there is a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf in the planning area; and (B) if the Secretary determines that there is a commercial interest described in subparagraph (A), conduct a lease sale in the planning area. (b) Renewable energy and mariculture The Secretary may conduct commercial lease sales of resources owned by United States— (1) to produce renewable energy (as defined in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))); or (2) to cultivate marine organisms in the natural habitat of the organisms. 103. Seaward boundaries of states (a) Seaward boundaries Section 4 of the Submerged Lands Act ( 43 U.S.C. 1312 three geographical miles 9 nautical miles (b) Conforming amendments Section 2 of the Submerged Lands Act ( 43 U.S.C. 1301 (1) in subsection (a)(2), by striking three geographical miles 9 nautical miles (2) in subsection (b)— (A) by striking three geographical miles 9 nautical miles (B) by striking three marine leagues 9 nautical miles (c) Effect of amendments (1) In general Subject to paragraphs (2) through (4), the amendments made by this section shall not effect Federal oil and gas mineral rights and should not effect the States’ current authority within existing State boundaries. (2) Existing leases The amendments made by this section shall not affect any Federal oil and gas lease in effect on the date of enactment of this Act. (3) Taxation (A) In general A State may exercise all of the sovereign powers of taxation of the State within the entire extent of the seaward boundaries of the State (as extended by the amendments made by this section). (B) Limitation Nothing in this paragraph affects the authority of a State to tax any Federal oil and gas lease in effect on the date of enactment of this Act. 104. Military operations The Secretary shall consult with the Secretary of Defense regarding military operations needs in the Outer Continental Shelf. The Secretary shall work with the Secretary of Defense to resolve any conflicts that might arise between such operations and leasing under this section. If the Secretaries are unable to resolve all such conflicts, any unresolved issues shall be referred by the Secretaries to the President in a timely fashion for immediate resolution. 105. Coordination with adjacent states Section 19 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1345 (1) in subsection (a) in the first sentence by inserting , for any tract located within the Adjacent State’s Adjacent Zone, government (2) by adding the following: (f) (1) Prior to issuing a permit or approval for the construction of a pipeline to transport crude oil, natural gas or associated liquids production withdrawn from oil and gas leases on the outer Continental Shelf, a Federal agency must seek the concurrence of the Adjacent State if the pipeline is to transit the Adjacent State’s Adjacent Zone between the outer Continental Shelf and landfall. No State may prohibit construction of such a pipeline within its Adjacent Zone or its State waters. However, an Adjacent State may require routing of such a pipeline to one of two alternate landfall locations in the Adjacent State, designated by the Adjacent State, located within 60 miles on either side of a proposed landfall location. (2) In this subsection: (A) The term Adjacent State State (B) The term Adjacent Zone . 106. Gulf of Mexico oil and gas (a) Repeal Section 104 of division C of the Tax Relief and Health Care Act of 2006 ( Public Law 109–432 (b) leasing plan for the Eastern Gulf of Mexico Pursuant to sections 101 and 102 of this Act, the Secretary of the Interior shall issue a final leasing plan for the Eastern Gulf of Mexico within 180 days after the date of enactment of this Act for all areas where there exists commercial interest in purchasing Federal oil and gas leases for production. 107. Sharing of revenues (a) In general Section 8(g) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337(g) (1) in paragraph (2) by striking Notwithstanding Except as provided in paragraph (6), and notwithstanding (2) by redesignating paragraphs (6) and (7) as paragraphs (8) and (9); and (3) by inserting after paragraph (5) the following: (6) Bonus bids and royalties under qualified leases (A) New leases Of amounts received by the United States as bonus bids, royalties, rentals, and other sums collected under any new qualified lease on submerged lands made available for leasing under this Act by the enactment of the American Energy Opportunity Act of 2014 (i) 30 percent shall be paid to the States that are producing States with respect to those submerged lands that are located within the seaward boundaries of such a State established under section 4(a)(2)(A); (ii) 10 percent shall be deposited in the general fund of the Treasury; (iii) 15 percent shall be deposited in the Renewable Energy and Energy Efficiency Reserve established by paragraph (7); (iv) 20 percent shall be deposited in the Infrastructure Renewal Reserve established by paragraph (7); (v) 3 percent shall be deposited into the Clean Water Reserve established by paragraph (7); (vi) 4 percent shall be deposited in the Environment Restoration Reserve established by paragraph (7); (vii) 3 percent shall be deposited in the Conservation Reserve established by paragraph (7); (viii) 8 percent shall be deposited in the Clean Coal Technology Deployment and Carbon Capture and Sequestration Reserve established by paragraph (7); (ix) 5 percent shall be deposited in the Carbon Free Technology and Nuclear Energy Reserve established by paragraph (7); and (x) 2 percent shall be available to the Secretary of Health and Human Services for carrying out the Low-Income Home Energy Assistance Act of 1981 ( 42 U.S.C. 8621 (B) Leased tract that lies partially within the seaward boundaries of a state In the case of a leased tract that lies partially within the seaward boundaries of a State, the amounts of bonus bids and royalties from such tract that are subject to subparagraph (A)(ii) with respect to such State shall be a percentage of the total amounts of bonus bids and royalties from such tract that is equivalent to the total percentage of surface acreage of the tract that lies within such seaward boundaries. (C) Use of payments to states Amounts paid to a State under subparagraph (A)(ii) shall be used by the State for one or more of the following: (i) Education. (ii) Transportation. (iii) Coastal restoration, environmental restoration, and beach replenishment. (iv) Energy infrastructure. (v) Renewable energy development. (vi) Energy efficiency and conservation. (vii) Any other purpose determined by State law. (D) Definitions In this paragraph: (i) Adjacent state The term Adjacent State (ii) Adjacent zone The term Adjacent Zone (iii) Producing state The term producing State (iv) State The term State (v) Qualified lease The term qualified lease American Energy Opportunity Act of 2014 (E) Application This paragraph shall apply to bonus bids and royalties received by the United States under qualified leases after implementation of sections 105 and 106 of the American Energy Opportunity Act of 2014 (F) Existing revenues All revenues including revenues, including bonus bids, royalties, rentals, and other sums, collected from leases issued under this Act prior to the enactment American Energy Opportunity Act of 2014 (7) Establishment of reserve accounts (A) In general For budgetary purposes, there is established as a separate account to receive deposits under paragraph (6)(A)— (i) the Renewable Energy and Energy Efficiency Reserve, which shall be applied— (I) first, to offset the alternative energy and conservation tax incentives extended by title III of the American Energy Opportunity Act of 2014 (II) to extent not applied under subclause (I), to offset the cost of legislation enacted after the date of the enactment of the American Energy Opportunity Act of 2014 (ii) the Infrastructure Renewal Reserve, which shall be applied to offset the costs of— (I) Federal-aid highway and highway safety construction programs carried out by the Secretary of Transportation; (II) public transportation programs carried out by the Secretary of Transportation; (III) water resources development construction projects carried out by the Secretary of the Army (acting through the Chief of Engineers); (IV) Federal support for freight rail and passenger rail construction and repair projects; (V) legislation enacted after the date of the enactment of the American Energy Opportunity Act of 2014 (iii) the Clean Water Reserve, to first, offset the cost of construction programs under the Clean Water Act or the 1996 Amendments to the Safe Drinking Water Act that provide assistance, such as grants, matching grants, and no- and low-interest loans, to State, county, and local governments to rebuild and modernize clean water and sewage infrastructure. (iv) the Environment Restoration Reserve, to offset the cost of legislation enacted after the date of the enactment of the American Energy Opportunity Act of 2014 (v) the Conservation Reserve, to offset the cost of legislation enacted after the date of the enactment of the American Energy Opportunity Act of 2014 (vi) the Clean Coal Technology Deployment and Carbon Capture and Sequestration Reserve, to— (I) first offset the cost of programs established under section 133 of this Act; (II) two, offset the cost of programs in section 1703 of the Energy Policy Act of 2005 related to loan guarantees for construction projects associated with carbon capture and storage, giving priority to the construction and modernization of plants that implement the most advanced pollution controls to prevent the release of carbon, particulate matter, and other pollutants; and (III) third, to offset the cost of research at the Department of Energy Office of Fossil Energy that promotes the production of liquid transportation fuels, clean-coal electricity, synthetic natural gas, and chemical feedstock; and (vii) the Carbon Free Technology and Nuclear Energy Reserve, to— (I) first offset the cost of programs in title IV of this Act; and (II) two, offset the cost of legislation enacted after the date of the enactment of the Rebuilding America’s Infrastructure Through Energy Independence Act to promote the deployment of carbon-free technologies, including through loan guarantees for commercial nuclear power plants, the disposition and recycling or reprocessing of spent fuel from nuclear power plants, and the financing of long-term safe storage of spent fuel. (B) Procedure for adjustments (i) Budget committee chairman After the reporting of a bill or joint resolution, or the offering of an amendment thereto or the submission of a conference report thereon, providing funding for the purposes set forth in clause (i), (ii), (iii), or (iv) of subparagraph (A) in excess of the amount of the deposits under paragraph (6)(A) for those purposes for fiscal year 2014, the chairman of the Committee on the Budget of the applicable House of Congress shall make the adjustments set forth in clause (ii) for the amount of new budget authority and outlays in that measure and the outlays flowing from that budget authority. (ii) Matters to be adjusted The adjustments referred to in clause (i) are to be made to— (I) the discretionary spending limits, if any, set forth in the appropriate concurrent resolution on the budget; (II) the allocations made pursuant to the appropriate concurrent resolution on the budget pursuant to section 302(a) of the Congressional Budget Act of 1974; and (III) the budget aggregates contained in the appropriate concurrent resolution on the budget as required by section 301(a) of the Congressional Budget Act of 1974. (iii) Amounts of adjustments The adjustments referred to in clauses (i) and (ii) shall not exceed the receipts estimated by the Congressional Budget Office that are attributable to this Act for the fiscal year in which the adjustments are made. (C) Expenditures only by secretary of the interior in consultation Legislation shall not be treated as legislation referred to in subparagraph (A) unless any expenditure under such legislation for a purpose referred to in that subparagraph may be made only after consultation with the Administrator of the Environmental Protection Agency, the Administrator of the National Oceanic and Atmospheric Administration, the Secretary of the Army acting through the Corps of Engineers, and, as appropriate, the Secretary of State. (8) Maintenance of effort by states The Secretary of the Interior, the Secretary of Health and Human Services, the Secretary of Energy, and any other Federal official with authority to implement legislation referred to in paragraph (6)(A) shall ensure that financial assistance provided to a State under that legislation for any purpose with amounts made available under this subsection or in any legislation with respect to which paragraph (7) applies supplement, and do not replace, the amounts expended by the State for that purpose before the date of the enactment of the American Energy Opportunity Act of 2014 (9) Distributions for Federal-aid highway or highway safety construction program To the extent practicable, amounts made available for a Federal-aid highway or highway safety construction program, the costs of which are offset by application of the Infrastructure Renewal Reserve, shall be distributed using the apportionment formula that applies to that program. . (b) Establishment of State Seaward Boundaries Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1333(a)(2)(A) , and the President . Such extended lines are deemed to be as indicated on the maps for each Outer Continental Shelf region entitled Alaska OCS Region State Adjacent Zone and OCS Planning Areas Pacific OCS Region State Adjacent Zones and OCS Planning Areas Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas Atlantic OCS Region State Adjacent Zones and OCS Planning Areas Public Law 109–432 108. Inventory of offshore energy resources (a) In general The Secretary of the Interior (in this section referred to as the Secretary (b) Environmental studies Not later than 180 days after the date of enactment of this Act, the Secretary shall complete any environmental studies necessary to gather information essential to an accurate inventory, including geological and geophysical explorations under part 251 of title 30, Code of Federal Regulations (or successor regulations). (c) Effect on oil and gas leasing No inventory that is conducted under this section or any other Federal law (including regulations) shall restrict, limit, delay, or otherwise adversely affect— (1) the development of any Outer Continental Shelf leasing program under section 18 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1344 (2) any leasing, exploration, development, or production of any Federal offshore oil and gas leases. (d) Funding (1) In general The Secretary of the Treasury shall make a 1-time transfer to the Secretary, without further appropriation and from royalties collected by the United States in conjunction with the production of oil and gas, of such sums as are necessary for the Secretary to carry out this section. (2) Limitation The amount transferred under paragraph (1) shall not exceed $50,000,000. 109. Prohibitions on surface occupancy and other Appropriate environmental safeguards (a) Regulations (1) In general (A) environmental safeguards The Secretary of the Interior shall promulgate regulations that establish appropriate environmental safeguards for the exploration and production of oil and natural gas on the outer Continental Shelf. (B) Safety protocols All operations, including under any permit issued pursuant to an application for a permit to drill or an application for a permit to sidetrack, that has been approved by the Minerals Management Service or the Bureau of Ocean Energy Management, Regulation and Enforcement, for purposes of outer Continental Shelf energy exploration or development and production, shall be carried out in accordance with the safety protocols contained in part 250 of title 30, Code of Federal Regulations. (2) Requirements The regulations shall include provisions ensuring that— (A) no surface facility shall be installed for the purpose of production of oil or gas resources in any area that is within 10 miles from the shore of any coastal State, in any area of the outer Continental Shelf that has not previously been made available for oil and gas leasing; (B) only temporary surface facilities are installed for areas that are located— (i) beyond 10 miles from the shore from the shore of any coastal State, in any area of the Outer Continental Shelf that has not previously been made available for oil and gas leasing; and (ii) not more than 20 miles from the shore; (C) the impact of offshore production facilities on coastal vistas is otherwise mitigated; and (D) onshore facilities that are able to draw upon the resources of the outer Continental Shelf within 10 miles of shore are allowed. (b) Conforming amendment Section 105 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2006 ( Public Law 109–54 43 U.S.C. 1331 Public Law 109–432 and any other area that the Secretary of the Interior may offer for leasing, preleasing, or any related activity under section 104 of that Act 2006) B Expedited Judicial Review 121. Definitions In this subtitle: (1) Authorizing leasing statute The term authorizing leasing statute 43 U.S.C. 1331 et seq. (2) Covered oil and natural gas activity The term covered oil and natural gas activity (A) the leasing of any lands pursuant to an authorizing leasing statute for the exploration, development, production, processing, or transmission of oil, natural gas, or associated hydrocarbons, including actions or decisions relating to the selection of which lands may or shall be made available for such leasing; and (B) any activity taken or proposed to be taken pursuant or in relation to such leases, including their suspension, and any environmental analyses relating to such activity. 122. Exclusive jurisdiction over causes and claims relating to covered oil and natural gas activities Notwithstanding any other provision of law, any Federal action approving any covered oil and natural gas activity shall be subject to judicial review only— (1) in the United States Court of Appeals for the District of Columbia Circuit; and (2) after the person filing a petition seeking such judicial review has exhausted all available administrative remedies with respect to such Federal action. 123. Time for filing petition; standing (a) In general All petitions referred to in section 122 must be filed within 30 days after the latter of the challenged Federal action or the exhaustion of all available administrative remedies with respect to such Federal action. A claim or challenge shall be barred unless it is filed within the time specified. (b) Standing No person whose legal rights will not be directly and adversely affected by the challenged action, and who is not within the zone of interest protected by each Act under which the challenge is brought, shall have standing to file any petition referred to in section 122. 124. Timetable The United States Court of Appeals for the District of Columbia Circuit shall complete all judicial review, including rendering a judgment, before the end of the 120-day period beginning on the date on which a petition referred to in section 122 is filed, unless all parties to such proceeding agree to an extension of such period. 125. Limitation on scope of review and relief (a) Administrative findings and conclusions In any judicial review referred to in section 122, any administrative findings and conclusions relating to the challenged Federal action shall be presumed to be correct unless shown otherwise by clear and convincing evidence contained in the administrative record. (b) Limitation on prospective relief In any judicial review referred to in section 122, the Court shall not grant or approve any prospective relief unless the court finds that such relief is narrowly drawn, extends no further than necessary to correct the violation of a Federal law requirement, and is the least intrusive means necessary to correct the violation concerned. 126. Presidential waiver Notwithstanding any other provision of law, the President may waive any legal requirement relating to the approval of any covered oil and natural gas activity if the President determines in the President’s sole discretion that such activity is important to the national interest and outweighs such legal requirement. 127. Legal fees Any person filing a petition referred to in section 122 who is not a prevailing party shall pay to the prevailing parties (including intervening parties), other than the United States, fees and other expenses incurred by that party in connection with the judicial review, unless the Court finds that the position of the person was substantially justified or that special circumstances make an award unjust. 128. Exclusion Section 122 shall not apply to disputes between the parties to a lease issued pursuant to an authorizing leasing statute regarding the obligations of such lease or the alleged breach thereof. C Other Energy Provisions 131. Elimination of restriction on energy alternatives and energy efficiency (a) Elimination of other restrictions on use of energy alternatives (1) Renewable biomass Section 211(o)(1)(I) of the Clean Air Act ( 42 U.S.C. 7545(o)(1)(I) (A) in clause (ii), by striking non-federal (B) in clause (iv), by striking that are from non-federal forestlands, including forestlands from forestlands, including those on public lands and those (2) Alternative fuels Section 526 of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17142 (b) New source review under the clean air act Part A of title I of the Clean Air Act (42 U.S.C. 7401 and following) is amended by adding the following at the end: 132. New source review In promulgating regulations respecting any requirement or prohibition of this Act relating to the construction of a new source or the modification of an existing source, the Administrator shall include in such regulations provisions providing that routine maintenance and repair shall not constitute a modification of an existing source requiring treatment of the source as a new source. Such provisions shall provide that equipment replacement shall be considered routine maintenance and repair if it meets each of the following: (1) Such replacement does not increase overall actual emissions of any air pollutant by more than 5 percent. (2) In the case of a source generating electricity, such replacement does not result in a greater amount of any air pollutant emitted in proportion to the megawatts of electricity generated. Notwithstanding any other provision of this Act, no State may include in any State implementation plan any provisions regarding new source review that are more stringent than those contained in the regulations of the Administrator under this section. . 132. Policies regarding buying and building American (a) Intent of congress It is the intent of the Congress that this Act, among other things, result in a healthy and growing American industrial, manufacturing, transportation, and service sector employing the vast talents of America’s workforce to assist in the development of energy from domestic sources. Moreover, the Congress intends to monitor the deployment of personnel and material onshore and offshore to encourage the development of American technology and manufacturing to enable United States workers to benefit from this Act by good jobs and careers, as well as the establishment of important industrial facilities to support expanded access to American resources. (b) Safeguard for extraordinary ability Section 30(a) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1356(a) regulations which regulations that shall be supplemental and complimentary with and under no circumstances a substitution for the provisions of the Constitution and laws of the United States extended to the subsoil and seabed of the outer Continental Shelf pursuant to section 4 of this Act, except insofar as such laws would otherwise apply to individuals who have extraordinary ability in the sciences, arts, education, or business, which has been demonstrated by sustained national or international acclaim, and that (c) Work standards All construction, repair, or alteration of public buildings and public works of the Government and buildings or works financed or otherwise assisted in whole or in part under this Act by a loan, loan guarantee, grant, annual contribution, credit enhancement, or any other form of Federal assistance authorized under this Act shall be performed in accordance with the standards applicable to comparable activity under any other provision of law, without regard to the form or type of Federal assistance provided thereunder. 133. Clean coal technology deployment grant and loan program (a) Purpose The purpose of this section is to encourage innovative, state-of-the-art energy plants to reduce and eliminate emissions of carbon dioxide and other greenhouse gases. (b) DOE program The Secretary Energy shall implement a competitive grant and loan program to award funding to qualified projects for a 3-year period for the construction or modernization of coal-fired generation units to enable the use at such units of the most viable and cost-effective technology to reduce emissions of carbon dioxide and other greenhouse gases. In carrying out such program, the Secretary shall give priority to the funding of projects that will emit the least amount of carbon dioxide and other greenhouse gases. (c) Qualified projects (1) Projects for the construction or modernization of units with carbon capture and sequestration or storage systems shall be qualified for assistance under this section in the form of grants of up to $2,000,000,000 per unit up to a maximum grant of $2,000,000 per Megawatt (MW) of capacity. Such projects may be qualified for loan guarantees under this section in the amount of up to $3,000,000,000 per unit up to a maximum of $3,000,000 per Megawatt of capacity. (2) The maximum amount of funding assistance under this section for construction and modernization costs shall be as follows: (A) A grant of 75 percent of such costs and a loan guarantee of 25 percent of such costs for the first year in which assistance is provided. (B) A grant of 50 percent of such costs and a loan guarantee of 50 percent of such costs for the second year in which assistance is provided. (C) A grant of 25 percent of such costs and a loan guarantee of 75 percent of such costs for the third year in which assistance is provided. (d) Minimum size No project shall be qualified for assistance under this section for any unit that is less than 250 MW of capacity. II Modifying the Strategic Petroleum Reserve and Funding Conservation and Energy Research and Development 201. Findings Congress finds the following: (1) The Strategic Petroleum Reserve (SPR) was created by Congress in 1975, to protect the Nation from any future oil supply disruptions. When the program was established, United States refiners were capable of handling light crude and medium crude and the makeup of the SPR matched this capacity. This is not the case today. (2) A GAO analysis found that nearly half of the refineries considered vulnerable to supply disruptions are not compatible with the types of oil currently stored in the SPR and would be unable to maintain normal refining capacity if forced to rely on SPR oil as currently constituted, thereby reducing the effectiveness of the SPR in the event of a supply disruption. GAO concluded that the SPR should be comprised of at least 10 percent heavy crude. (3) This Act implements the GAO recommendation and dedicates funds received from the transactions to existing energy conservation, research, and assistance programs. 202. Definitions In this title— (1) the term light grade petroleum (2) the term heavy grade petroleum (3) the term Secretary 203. Objectives The objectives of this title are as follows: (1) To modernize the composition of the Strategic Petroleum Reserve to reflect the current processing capabilities of refineries in the United States. (2) To provide increased funding to accelerate conservation, energy research and development, and assistance through existing programs. 204. Modification of the strategic petroleum reserve Notwithstanding section 161 of the Energy Policy and Conservation Act ( 42 U.S.C. 6241 (1) exchange as soon as possible light grade petroleum from the Strategic Petroleum Reserve, in an amount equal to 10 percent of the total number of barrels of crude oil in the Reserve as of the date of enactment of this Act, for an equivalent volume of heavy grade petroleum plus any additional cash bonus bids received that reflect the difference in the market value between light grade petroleum and heavy grade petroleum and the timing of deliveries of the heavy grade petroleum; (2) from the gross proceeds of the cash bonus bids, deposit the amount necessary to pay for the direct administrative and operational costs of the exchange into the SPR Petroleum Account established under section 167 of the Energy Policy and Conservation Act ( 42 U.S.C. 6247 (3) deposit 90 percent of the remaining net proceeds from the exchange into the account established under section 205(a). 205. Energy Independence and Security Fund (a) Establishment There is hereby established in the Treasury of the United States the Energy Independence and Security Fund Fund (b) Administration The Secretary shall be responsible for administering the Fund for the purpose of carrying out this section. (c) Deposits The Secretary shall transfer the balance of funds in the SPR Petroleum Account on the date of enactment of this Act in excess of $10,000,000 into the Fund. (d) Distribution of funds The Secretary shall make amounts from the Fund available for obligation, without further appropriation and without fiscal year limitation, for the following purposes: (1) Advanced research projects agency—energy The Secretary may transfer amounts to the account Energy Transformation Acceleration Fund 42 U.S.C. 16538(m) (A) for university-based research projects; and (B) for program direction expenses. (2) Wind energy research and development The Secretary may transfer amounts to the account Energy Efficiency and Renewable Energy (3) Solar energy research and development The Secretary may transfer amounts to the account Energy Efficiency and Renewable Energy 42 U.S.C. 16231(a)(2)(A) (4) Marine and hydrokinetic renewable electric energy The Secretary may transfer amounts to the account Energy Efficiency and Renewable Energy 42 U.S.C. 17215 (5) Advanced vehicles research, development, and demonstration The Secretary may transfer amounts to the account Energy Efficiency and Renewable Energy 42 U.S.C. 16191(a)(2)(A) (6) Industrial energy efficiency research and development The Secretary may transfer amounts to the account Energy Efficiency and Renewable Energy 42 U.S.C. 17111 (7) Building and lighting energy efficiency research and development The Secretary may transfer amounts to the account Energy Efficiency and Renewable Energy (8) Geothermal energy development The Secretary may transfer amounts to the account Energy Efficiency and Renewable Energy 42 U.S.C. 16231(a)(2)(C) (9) Smart grid technology research, development, and demonstration The Secretary may transfer amounts to the account Energy Efficiency and Renewable Energy 42 U.S.C. 17384 (10) Carbon capture and storage The Secretary may transfer amounts to the account Fossil Energy Research and Development 42 U.S.C. 17251 (11) Nonconventional domestic natural gas production and environmental research (A) The Secretary may transfer amounts to the account authorized by section 999H(e) of the Energy Policy Act of 2005 ( 42 U.S.C. 16378(e) (B) The Secretary may transfer amounts to the account Fossil Energy Research and Development (12) Hydrogen research and development The Secretary may transfer amounts to the account Energy Efficiency and Renewable Energy 42 U.S.C. 16396(f) (13) Energy storage for transportation and electric power (A) The Secretary may transfer amounts to the account Basic Energy Sciences 42 U.S.C. 17231(p)(1) (B) The Secretary may transfer amounts to the account Energy Efficiency and Renewable Energy (i) amounts for a program to accelerate applied research on energy storage systems to support electric drive vehicles, stationary applications, and electricity transmission and distribution as authorized by section 641(p)(2) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17231(p)(2) (ii) amounts for energy storage systems demonstrations as authorized by section 641(p)(4) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17231(p)(4) (iii) amounts for vehicle energy storage systems demonstrations as authorized by section 641(p)(5) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17231(p)(5) (e) Transfer procedures The Secretary shall make an initial transfer from the Fund no later than 30 days after the initial deposit of monies into the Fund. The Secretary shall make additional transfers no later than 30 days after subsequent deposits. (f) Management and oversight (1) Additionality of fiscal year 2008 transfers All amounts transferred under subsection (d) shall be in addition to, and shall not be substituted for, any funds appropriated for the same or similar purposes in the Consolidated Appropriations Act, 2014 or any other enacted legislation. (2) Excess funds The total of all amounts transferred under subsection (d) and any funds appropriated for the same or similar purposes in the Consolidated Appropriations Act, 2008 or any other enacted legislation may not exceed the amounts authorized in other Acts for such purposes. In the event that amounts made available under this title plus amounts under the Consolidated Appropriations Act, 2014 exceed the cumulative amounts authorized in other Acts for any program funded by this Act, the excess amounts shall be distributed to the other programs funded by this title on a pro rata basis. (3) Program plans and performance measures The Secretary shall prepare and publish in the Federal Register a plan for the proposed use of all funds authorized in subsection (d). The plan also shall identify how the use of these funds will be additive to, and not displace, annual appropriations. The plans also shall identify performance measures to assess the additional benefits that may be realized from the application of the additional funding provided under this section. The initial plan shall be published in the Federal Register not later than 45 days after the date of enactment of this Act. (4) Congressional oversight and review Nothing in this section shall limit or restrict the review and oversight of program plans by the appropriate committees of Congress. Nothing in this section shall limit or restrict the authority of Congress to set alternative spending limitations in annual appropriations Acts. (5) Apportionment All transactions of the Fund shall be exempt from apportionment under the provisions of subchapter II of chapter 15 III Cleaner Energy Production and Energy Conservation Incentives 301. Extension of renewable energy credit (a) In general Subsection (d) of section 45 January 1, 2014 January 1, 2020 (b) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2013. 302. Extension of credit for energy efficient appliances (a) Dishwashers Subsection (b) of section 45M 2011, 2012, or 2013 after 2011 and before 2020 (b) Effective date The amendments made by this section shall apply to appliances produced after December 31, 2013. 303. Extension of credit for nonbusiness energy property Section 25C(g) December 31, 2013 December 31, 2019 304. Extension of credit for residential energy efficient property Section 25D(g) December 31, 2016 December 31, 2019 305. Extension of new energy efficient home credit Subsection (g) of section 45L December 31, 2013 December 31, 2019 306. Extension of energy efficient commercial buildings deduction Section 179D(h) December 31, 2013 December 31, 2019 307. Extension of energy credit (a) Solar energy property Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) January 1, 2017 January 1, 2020 (b) Fuel cell property Subparagraph (D) of section 48(c)(1) of such Code (relating to qualified fuel cell property) is amended by striking December 31, 2016 December 31, 2019 (c) Microturbine property Subparagraph (D) of section 48(c)(2) of such Code (relating to qualified microturbine property) is amended by striking December 31, 2016 December 31, 2019 (d) Property using thermal energy from ground or ground water Clause (vii) of section 48(a)(3)(A) of such Code is amended by striking December 31, 2017 December 31, 2019 (e) Combined heat and power system property Clause (iv) of section 48(c)(3)(A) of such Code is amended by striking December 31, 2017 December 31, 2019 (f) Small wind energy property Subparagraph (C) of section 48(c)(4) of such Code is amended by striking December 31, 2016 December 31, 2019 308. Extension of credit for new clean renewable energy bonds Subsection (c) of section 54C (5) Additional annual allocations The national new clean renewable energy bond limitation shall be increased annually by 2 percent of the deposits made into the Renewable Energy and Energy Efficiency Reserve under section 8(g)(7) of the Outer Continental Shelf Lands Act with respect to such year. Each such increase shall be allocated by the Secretary consistent with the rules of paragraphs (2) and (3). . 309. Expensing of mechanical insulation property (a) In general Part VI of subchapter B of chapter 1 of subtitle A of the Internal Revenue Code of 1986 (relating to itemized deductions for individuals and corporations) is amended by inserting after section 179E the following new section: 179F. Mechanical insulation property (a) Treatment as expenses There shall be allowed as a deduction an amount equal to the applicable percentage of the cost of mechanical insulation property placed in service during the taxable year. (b) Applicable percentage For purposes of subsection (a)— (1) In general The term applicable percentage (A) 30 percent, and (B) the excess (if any) of— (i) the energy savings (expressed as a percentage) obtained by placing such mechanical insulation property in service in connection with a mechanical system, over (ii) the energy savings (expressed as a percentage) such property is required to meet by Standard 90.1–2007, developed and published by the American Society of Heating, Refrigerating and Air-Conditioning Engineers. (2) Special rule relating to maintenance In the case of mechanical insulation property placed in service as a replacement for insulation property— (A) paragraph (1)(B) shall be applied without regard to clause (ii) thereof, and (B) the cost of such property shall be treated as an expense for which a deduction is allowed under section 162 instead of being treated as depreciable for purposes of the deduction provided by section 167. (c) Definitions For purposes of this section— (1) Mechanical insulation property The term mechanical insulation property (A) placed in service in connection with a mechanical system which— (i) is located in the United States, and (ii) is of a character subject to an allowance for depreciation, and (B) utilized for thermal, acoustical, and personnel safety requirements for mechanical piping and equipment, hot and cold applications, and heating, venting and air conditioning applications which can be used in a variety of facilities. (2) Cost The cost of mechanical insulation property includes— (A) the amounts paid or incurred for the installation of such property, (B) in the case of removal and disposal of the old mechanical insulation property, 10 percent of the cost of the new mechanical insulation property (determined without regard to this subparagraph), and (C) expenditures for labor costs properly allocable to the preparation, assembly, and installation of mechanical insulation property. (d) Coordination (1) Section 179D Subsection (a) shall not apply to the cost of mechanical insulation property which is taken into account under section 179D or which, but for subsection (b) of section 179D, would be taken into account under such section. (2) Other deductions and credits (A) In general The amount of any other deduction or credit allowable under this chapter for any cost of mechanical insulation property which is taken into account under subsection (a) shall be reduced by the amount of such cost so taken into account. (B) Exception for certain costs Subparagraph (A) shall not apply to any amount properly attributable to maintenance. (e) Allocation of deduction for tax-Exempt property In the case of mechanical insulation property installed on or in property owned by an entity described in paragraph (3) or (4) of section 50(b), the person who is the primary contractor for the installation of such property shall be treated as the taxpayer that placed such property in service. (f) Certification For purposes of this section, energy savings shall be certified under regulations or other guidance provided by the Secretary, in consultation with the Secretary of Energy. . (b) Deduction for capital expenditures Section 263(a)(1) of such Code (relating to capital expenditures) is amended by striking or , or (M) expenditures for which a deduction is allowed under section 179F. . (c) Technical and clerical amendments (1) Section 312(k)(3)(B) of such Code is amended by striking or 179E 179E, or 179F (2) Paragraphs (2)(C) and (3)(C) of section 1245(a) of such Code are each amended by inserting 179F, 179E, (3) The table of sections for part VI of subchapter B of chapter 1 of subtitle A of such Code is amended by inserting after the item relating to section 179E the following new item: Sec. 179F. Mechanical insulation property. . (d) Effective date The amendments made by this section shall apply to property placed in service after the date of enactment of this Act. IV Increase Diversification and Efficiency of America's Transportation and Electric System A Diversification of Fuel Source for America's Short-Haul Transportation System 401. Minimum Federal fleet requirement Section 303 of the Energy Policy Act of 1992 ( 42 U.S.C. 13212 (1) in subsection (b)— (A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; (B) by inserting after paragraph (1) the following: (2) Of the total number of vehicles acquired by a Federal fleet under paragraph (1), at least the following percentage of the vehicles shall be plug-in electric drive vehicles (as defined in section 131(a) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17011(a) (A) 10 percent for fiscal year 2014. (B) The applicable percentage for the preceding fiscal year increased by 2 percentage points (but not to exceed a total of 50 percent) for fiscal year 2015 and each subsequent fiscal year. ; and (C) in paragraph (3) (as redesignated by subparagraph (A) of this paragraph), by inserting or (2) paragraph (1) (2) by striking subsection (c) and inserting the following: (c) Allocation of incremental costs Subject to the availability of funds appropriated to carry out this subsection (to remain available until expended), the General Services Administration shall pay the incremental cost of alternative fuel vehicles over the cost of comparable gasoline vehicles for vehicles that the Administration purchased for the use of the Administration or on behalf of other agencies, in a total amount of not to exceed $300,000,000 for any of fiscal years 2014 through 2019. ; (3) in subsection (f), by adding at the end the following: (4) Compliance Compliance with this subsection shall not relieve a Federal agency of the obligations of the agency under subsection (b). ; and (4) in subsection (g), by striking fiscal years 1993 through 1998 each fiscal year 402. Use of HOV facilities by light-duty, plug-in electric drive vehicles or new qualified alternative fuel motor vehicles Section 166(b)(5) (1) in subparagraph (A), by striking Before Except as provided in subparagraph (D), before (2) in subparagraph (B), by striking Before Except as provided in subparagraph (D), before (3) by adding at the end the following: (D) Use by plug-in electric drive vehicles (i) Definition of plug-in electric drive vehicle In this subparagraph, the term plug-in electric drive vehicle 42 U.S.C. 17011(a) (ii) Use of hov facilities A State agency— (I) shall allow a vehicle to use HOV facilities in the State if the vehicle is, as determined by the Secretary— (aa) certified as a low-emission and energy-efficient vehicle in accordance with subsection (e); (bb) labeled in accordance with subsection (e); (cc) a light-duty, plug-in electric drive vehicle or a new qualified alternative fuel motor vehicle (as defined in section 30B(e)(4) (dd) purchased on or before December 31 of the calendar year described in clause (iii); and (II) shall not impose any toll or other charge on such a vehicle for use of an HOV facility in the State. (iii) Calendar year The calendar year referred to in clause (ii)(I)(dd) is the calendar year during which, as determined by the Secretary, the aggregate number of plug-in electric drive vehicles sold in the United States during all calendar years exceeds 2,000,000. (iv) Petition A State may petition the Secretary to limit or discontinue the use of an HOV facility by plug-in electric drive vehicles if the State demonstrates to the Secretary that the presence of the plug-in electric drive vehicles has degraded the operation of the HOV facility. . 403. Recharging infrastructure (a) Definitions In this section: (1) Local government The term local government section 3371 (2) Plug-in electric drive vehicle The term plug-in electric drive vehicle 42 U.S.C. 17011(a) (3) New qualified alternative fueled vehicle The term new qualified alternative fueled vehicle (4) Range extension infrastructure The term range extension infrastructure (A) are available to retail consumers of electric drive vehicles on a nondiscriminatory basis; (B) provide for extending driving range through battery exchange or rapid recharging; and (C) are comparable in convenience and price to petroleum-based refueling services. (b) Study (1) In general The Secretary of Energy shall conduct a study of— (A) the number and distribution of recharging facilities and alternative vehicle fuel facilities, including range extension infrastructure, that will be required for drivers of plug-in electric drive vehicles in the United States to reliably recharge the electric drive vehicles; (B) minimum technical standards for public recharging facilities, in coordination with the National Institute of Standards and Technology; and (C) the concurrent technical and infrastructure investments that electric utilities and electricity providers will be required to make to support widespread deployment of recharging infrastructure and the estimated costs of the investments. (2) Components In conducting the study required under this subsection, the Secretary shall analyze— (A) the variety and density of recharging infrastructure options necessary to power plug-in electric drive vehicles under diverse scenarios, including— (i) the ratio of residential, commercial, and public recharging infrastructure options necessary to support 10 percent, 20 percent, and 50 percent penetration of plug-in electric vehicles on a city fleet basis; (ii) the ratio of residential, commercial, and public recharging infrastructure options necessary to support 10 percent, 20 percent, and 50 percent penetration of plug-in electric vehicles on a national fleet basis; and (iii) the potential impact of fast charging on penetration rates and utility power management requirements; (B) whether use of parking spots with access to recharging facilities should be limited to plug-in electric drive vehicles; and (C) such other issues as the Secretary considers appropriate. (3) Report Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report on the results of the study conducted under this subsection, including any recommendations. (c) Grants and loans to local governments for recharging infrastructure (1) In general Not later than 180 days after the date of enactment of this Act, the Secretary shall establish a program under which the Secretary shall provide grants and loans to local governments to assist in the installation of recharging facilities for electric drive vehicles in areas under the jurisdiction of the local governments. The Secretary shall provide funding under this section to local governments to pay not more than 50 percent of the recharging infrastructure cost. (2) Eligibility To be eligible to obtain a grant or loan under this subsection, a local government shall— (A) demonstrate to the Secretary that the local government has taken into consideration the findings of the report submitted under subsection (b)(3), unless the local government demonstrates to the Secretary that an alternative variety and density of recharging infrastructure options would better meet the purposes of this section; and (B) agree not to charge a premium for use of a parking space used to recharge an electric drive vehicle other than a charge for electric energy. (3) Guidelines The Secretary shall establish guidelines for carrying out this subsection that are consistent with the report submitted under subsection (b)(3). (4) Authorization of Appropriations There is authorized to be appropriated to the Secretary to carry out this subsection a total of $250,000,000 for grants and a total of $250,000,000 for loans, to remain available until expended. 404. Loan guarantees for advanced battery purchases Subtitle B of title I of the Energy and Independence and Security Act of 2007 (42 U.S.C. 17011 et seq.) is amended by adding at the end the following: 137. Loan guarantees for advanced battery purchases (a) Definitions In this section: (1) Plug-in electric drive vehicle The term plug-in electric drive vehicle (2) Range extension infrastructure The term range extension infrastructure (A) are available to retail consumers of electric drive vehicles on a nondiscriminatory basis; (B) provide for extended driving range through battery exchange or rapid recharging; and (C) are comparable in convenience and price to petroleum-based refueling services. (b) Loan guarantees The Secretary shall guarantee loans made to eligible entities for the aggregate purchase by an eligible entity of not less than 5,000 batteries that use advanced battery technology within a calendar year. (c) Eligible entities To be eligible to obtain a loan guarantee under this section, an entity shall be— (1) an original equipment manufacturer; (2) a vehicle manufacturer; (3) an electric utility; (4) any provider of range extension infrastructure; or (5) any other qualified entity, as determined by the Secretary. (d) Regulations The Secretary shall promulgate such regulations as are necessary to carry out this section. (e) Authorization of Appropriations There are authorized to be appropriated such sums as are necessary to carry out this section. . 405. Study of end-of-useful-life options for motor vehicle batteries (a) In general In combination with the research, demonstration, and deployment activities conducted under section 641(k) of the Energy and Independence and Security Act of 2007 (42 U.S.C. 17231(k)), the Secretary of Energy shall conduct a study on the end-of-useful-life options for motor vehicle batteries, including recommendations for stationary storage applications and recyclability design specifications. (b) Report Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report on the results of the study conducted under subsection (a), including any recommendations. 406. Study and demonstration electrification of postal fleet (a) In general The Postal Service shall conduct a study of what portion of its mail delivery vehicles are capable of being replaced with plug-in hybrid electric vehicles. (b) Report Not later than 1 year after the date of enactment of this Act, the Postal Service shall submit to the appropriate committees of Congress a report on the results of the study conducted under subsection (a). (c) Prototype plug-In electric hybrid mail delivery vehicles Not later than 2 years after the date of enactment of this Act, the Postal Service shall contact for the development of a prototype plug-in electric hybrid mail delivery vehicles. 407. Study of development of common standards for PHEVs and EVs between the United States, Europe and Asia (a) In general The Secretary of Energy shall conduct a study identifying the components of electric vehicles, hybrid-electric vehicles, and plug-in hybrid-electric vehicles for which it is important that there be common standards within the United States and between the United States, European, and Asian automakers and examine the extent to which such standards are (or are not) or have been (or have not been) developed, and the status of any such efforts to develop such standards. (b) Report Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall submit to the appropriate committees of Congress a report on the results of the study conducted under subsection (a), including any recommendations. B Incentives for Diversification of Transportation 420. Amendment of 1986 Code Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. 421. Extension and modification of credit for fuel cell, hybrid, lean burn, and alternative fuel vehicles (a) Extension of credit Subsection (k) of section 30B is amended to read as follows: (k) Termination This section shall not apply to any property purchased after December 31, 2019. . (b) Application to bi-Fuel, duel-Fuel, and flex-Fuel vehicles (1) Bi-fuel and duel-fuel vehicles Clause (i) of section 30B(e)(4)(A) (relating to definition of new qualified alternative fuel motor vehicle) is amended to read as follows: (i) which is a dedicated vehicle, a bi-fuel vehicle, or a duel-fuel vehicle, . (2) Flex-fuel vehicles Subparagraph (B) of section 30B(e)(4) is amended by inserting or ethanol methanol (3) Bi-fuel and duel-fuel vehicles defined Paragraph (5) of section 30B(e) is amended to read as follows: (5) Bi-fuel and duel-fuel vehicles defined For purposes of this subsection— (A) Bi-fuel vehicle The term bi-fuel vehicle (i) compressed natural gas, liquified natural gas, or liquified petroleum gas, and (ii) gasoline or diesel fuel. (B) Duel-fuel vehicle The term duel-fuel vehicle (i) compressed natural gas, liquified natural gas, or liquified petroleum gas, and (ii) gasoline or diesel fuel. . (c) Application to conversions and repowers of alternative fuel vehicles Paragraph (4) of section 30B(e) is amended by adding at the end the following new subparagraph: (C) Conversions and repowers (i) In general The term new qualified alternative fuel motor vehicle (ii) Treatment as new A vehicle which has been converted to operate on an alternative fuel shall be treated as new on the date of such conversion for purposes of this section. (iii) Rule of construction In the case of a used vehicle which is converted or repowered, nothing in this section shall be construed to require that the motor vehicle be acquired in the year the credit is claimed under this section with respect to such vehicle. . (d) Repeal of number limitation on hybrids and lean-Burn vehicles Section 30B is amended by striking subsection (f). (e) Effective date The amendments made by this section shall apply to property purchased after December 31, 2013. 422. Extension and expansion of credit for new qualified plug-in electric drive motor vehicles (a) Extension Section 30D is amended by adding at the end the following new subsection: (g) Termination This section shall not apply to any property purchased after December 31, 2019. . (b) Restoration of Credit for Large New Qualified Plug-In Electric Drive Motor Vehicles Weighing Over 14,000 Pounds (1) In general The last sentence of section 30D(b)(3) is amended to read as follows: The amount determined under this paragraph shall not exceed— (A) $5,000, in the case of any new qualified plug-in electric drive motor vehicle with a gross vehicle weight rating of not more than 14,000 pounds, (B) $10,000, in the case of any new qualified plug-in electric drive motor vehicle with a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and (C) $12,500, in the case of any new qualified plug-in electric drive motor vehicle with a gross vehicle weight rating of more than 26,000 pounds. . (2) Conforming amendments Paragraph (1) of section 30D(d) is amended by adding and (c) Increase in Per Manufacturer Cap Paragraph (2) of section 30D(e) is amended by striking 200,000 400,000 (d) Effective Date The amendments made by this section shall apply to vehicles acquired after the date of the enactment of this Act. 423. Extension of credit for certain plug-in electric vehicles (a) In General Subsection (f) of section 30 is amended by striking December 31, 2011 December 31, 2019 (b) Effective Date The amendment made by this section shall apply to vehicles acquired after the date of the enactment of this Act. 424. Tax credit for most efficient vehicle in class Subpart B of part IV of subchapter A of chapter 1 (relating to other credits) is amended by adding at the end the following new section: 30E. Most efficient vehicle in class credit (a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to $2,000 for each car that is determined to be the most efficient vehicle in class (b) Most efficient vehicle in class For purposes of this section, the term most efficient vehicle in class . 425. Extension of credit and extension of temporary increase in credit for alternative fuel vehicle refueling property (a) Extension of Credit Subsection (g) of section 30C is amended by striking service— service after December 31, 2019. (b) Extension of Temporary Increase Paragraph (6) of section 30C(e) is amended— (1) by striking January 1, 2011 January 1, 2020 (2) by striking and 2010 through 2019 (c) Effective Date The amendments made by this section shall apply to taxable years beginning after December 31, 2010. 426. Modification of alternative fuel credit (a) Alternative fuel credit Paragraph (5) of section 6426(d) (relating to alternative fuel credit) is amended by inserting , and December 31, 2019, in the case of any sale or use involving compressed or liquefied natural gas or liquified petroleum gas hydrogen (b) Alternative fuel mixture credit Paragraph (3) of section 6426(e) is amended by inserting , and December 31, 2019, in the case of any sale or use involving compressed or liquefied natural gas or liquified petroleum gas hydrogen (c) Payments relating to alternative fuel or alternative fuel mixtures Paragraph (6) of section 6427(e) is amended— (1) in subparagraph (C)— (A) by striking subparagraph (D) subparagraphs (D) and (E) (B) by striking and (2) by striking the period at the end of subparagraph (D) and inserting , and (3) by inserting at the end the following: (E) any alternative fuel or alternative fuel mixture (as so defined) involving compressed or liquefied natural gas or liquified petroleum gas sold or used after December 31, 2019. . (d) Effective date The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this Act. 427. Extension of credits for biodiesel and renewable diesel (a) In general Sections 40A(g), 6426(c)(6), and 6427(e)(6)(B) are each amended by striking December 31, 2013 December 31, 2019 (b) Effective date The amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2013. C Low-Carbon Diversification of Electric System 431. Innovative low-carbon loan guarantee program Section 1703 of the Energy Policy Act of 2005 ( 42 U.S.C. 16513 (1) in subsection (b), by adding at the end the following: (11) Innovative low-carbon technology projects in accordance with subsection (f). ; and (2) by adding at the end the following: (f) Innovative low-Carbon technology projects (1) In general The Secretary may make guarantees to carry out innovative low-carbon technologies projects. (2) Funding (A) In general Subject to the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq. (B) Additional amounts Amounts made available to carry out this subsection shall be in addition to any other authority provided for fiscal year 2010 or any previous fiscal year. (C) Source of funds (i) In general Amounts made available to carry out this subsection shall be— (I) derived from amounts received from borrowers pursuant to section 1702(b)(2) for fiscal year 2010 or any previous fiscal year; and (II) collected in accordance with the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq. (ii) Treatment The source of payment received from borrowers described in clause (i) shall be not considered a loan or other debt obligation that is guaranteed by the Federal Government. (D) Subsidy cost In accordance with section 1702(b)(2), no appropriations to carry out this subsection shall be available to pay the subsidy cost of guarantees. . 432. Ensuring revenues are sufficient for implementation of title IV (a) Any programs or directives established by title IV of this Act, such as sections 401, 403, and 431, but not extensions of tax credits, shall be offset with funds in the Carbon Free Reserve account established in section 107. (b) Once the reserve account’s balance has funds sufficient to offset the costs of these provisions, the Secretary of Energy shall submit a plan to Congress within 180 days to begin implementation of those provisions.

Summary: American Energy Opportunity Act of 2014 - Deems the Draft Proposed Outer Continental Shelf Oil and Gas Leasing Program 2010-2015 issued by the Secretary of the Interior to be approved as a final oil and gas leasing program under the Outer Continental Shelf Lands Act. Deems the Secretary to have issued a final environmental impact statement for the Program under the National Environmental Policy Act of 1969. Directs the Secretary to: conduct a lease sale in each outer Continental Shelf (OCS) planning area for which there is a commercial interest in purchasing federal oil and gas production leases; prepare an inventory of U.S. offshore energy resources; and promulgate regulations concerning the production of oil or gas resources of the OCS, including regulating the installation of surface facilities, mitigating the impact of such facilities on coastal vistas, and allowing onshore facilities to draw upon such resources that are within 10 miles of shore. Extends from three geographical miles to nine nautical miles a coastal state's allowable seaward boundary. Repeals the moratorium on oil and gas leasing in: (1) any area east of the Military Mission Line in the Gulf of Mexico, (2) any area in the Eastern Planning Area that is within 125 miles of the Florida coastline, and (3) specified areas within the Central Planning Area and within 100 miles of the Florida coastline. Requires the Secretary of the Interior to issue a final leasing plan for the Eastern Gulf of Mexico for all areas where there exists commercial interest in purchasing federal oil and gas leases for production. Specifies revenue sharing percentages for sums received from leasing offshore pursuant to this Act, including 30% for producing states. Authorizes the President authority to waive requirements relating to the approval of oil and natural gas activity deemed to be important to national interests. Amends the Clean Air Act to: (1) revise the definition of "renewable biomass" to include trees, tree residue, and slash and pre-commercial thinnings that are from forestlands on public lands; and (2) require new source review regulations relating to the construction of a new source or the modification of an existing source to provide that routine maintenance and repair do not constitute a modification of an existing source. Requires the Secretary of Energy (DOE) to: implement a grant and loan program for the construction or modernization of coal fired generation units to enable use of technology to reduce greenhouse gases, publish a plan to exchange a specified amount of light grade petroleum from the Strategic Petroleum Reserve for heavy grade petroleum plus additional cash bonus bids that reflect the difference in market value; and set aside net proceeds from such exchange for the Energy Independence and Security Fund (established by this Act). Prescribes Energy Independence and Security Fund allocations to the Energy Transformation Acceleration Fund, specified Energy Efficiency and Renewable Energy accounts, the Weatherization Assistance Program, specified Fossil Energy Research and Development accounts, the Basic Energy Sciences account. Amends the Internal Revenue Code to: extend through 2019 tax credits for energy conservation and production, including credits for producing electricity from renewable resources, alternative fuel vehicles and refueling property expenditures, residential energy efficiency and solar energy and fuel cell property expenditures, and biodiesel and renewable diesel used as fuel; extend through 2018 the tax deduction for energy efficient commercial buildings; increase the limitation on the issuance of new clean renewable energy bonds; allow an additional tax deduction for the cost of installing mechanical insulation property; extend through 2019 the tax credit for fuel cell motor vehicles, advanced lean burn technology motor vehicles, hybrid motor vehicles, alternative fuel motor vehicles, and plug-in conversions; repeal the limitation on the number of hybrid and advanced lean-burn technology vehicles eligible for such credit; extend through 2019 the tax credit for plug-in electric drive motor vehicles; allow a new tax credit for the purchase of a motor vehicle identified by the Environmental Protection Agency (EPA) as the most efficient vehicle in its class; and allow an excise tax credit through 2019 for alternative fuels and fuel mixtures involving compressed or liquefied natural gas or liquefied petroleum gas. Prescribes requirements for the use of electric drive vehicles and alternative fuel motor vehicles. Requires that at least 10% of the federal fleet be plug-in electric drive vehicles by FY2014, with such percentage increasing by at least 2% (up to 50%) each fiscal year. Directs DOE to: (1) provide grants to assist local governments in the installation of recharging facilities for electric drive vehicles, and (2) guarantee loans for any purchaser of at least 5,000 battery systems that use advanced battery technology. Includes innovative low-carbon technology projects as projects eligible for loan guarantees made by DOE for innovative technologies. Requires programs or directives established by this Act concerning increasing diversification and efficiency of transportation and electric systems, but not extensions of tax credits, to be offset with funds in the Carbon Free Reserve.