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tration technologies in both electric power generation and 
industrial operations. 
‘‘(b) ELIGIBILITY CRITERIA.—For an owner or oper-
ator of a project to be eligible to receive emission allow-
ances under this section, the project must— 
‘‘(1) implement carbon capture and sequestra-
tion technology— 
‘‘(A) at an electric generating unit that— 
‘‘(i) has a nameplate capacity of 200 
megawatts or more; 
‘‘(ii) in the case of a retrofit applica-
tion, applies the carbon capture and se-
questration technology to the flue gas from 
at least 200 megawatts of the total name-
plate generating capacity of the unit, pro-
vided that clause (i) shall apply without ex-
ception; 
‘‘(iii) derives at least 50 percent of its 
annual fuel input from coal, petroleum 
coke, or any combination of these 2 fuels; 
and 
‘‘(iv) upon implementation of capture 
and sequestration technology, will achieve 
an emission limit that is at least a 50 per-
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cent reduction in emissions of the carbon 
dioxide produced by— 
‘‘(I) the unit, measured on an 
annual basis, determined in accord-
ance with section 812(b)(2); or 
‘‘(II) in the case of retrofit appli-
cations under clause (ii), the treated 
portion of flue gas from the unit, 
measured on an annual basis, deter-
mined in accordance with section 
812(b)(2); or 
‘‘(B) at an industrial source that— 
‘‘(i) absent carbon capture and se-
questration, would emit greater than 
50,000 tons per year of carbon dioxide; 
‘‘(ii) 
upon 
implementation, 
will 
achieve an emission limit that is at least a 
50 percent reduction in emissions of the 
carbon dioxide produced by the emission 
point, measured on an annual basis, deter-
mined 
in 
accordance 
with 
section 
812(b)(2); and 
‘‘(iii) does not produce a liquid trans-
portation fuel from a solid fossil-based 
feedstock; 
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‘‘(2) geologically sequester carbon dioxide at a 
site that meets all applicable permitting and certifi-
cation requirements for geologic sequestration, or, 
pursuant to such requirements as the Administrator 
may prescribe by regulation, convert captured car-
bon dioxide to a stable form that will safely and per-
manently sequester such carbon dioxide; 
‘‘(3) meet all other applicable State, tribal, and 
Federal permitting requirements; and 
‘‘(4) be located in the United States. 
‘‘(c) PHASE I DISTRIBUTION TO ELECTRIC GENER-
ATING UNITS.— 
‘‘(1) 
APPLICATION.—This 
subsection 
shall 
apply only to projects at the first 6 gigawatts of 
electric generating units, measured in cumulative 
generating capacity of such units, that receive allow-
ances under this section. 
‘‘(2) DISTRIBUTION.—The Administrator shall 
distribute emission allowances allocated under sec-
tion 782(f) to the owner or operator of each eligible 
project at an electric generating unit in a quantity 
equal to the quotient obtained by dividing— 
‘‘(A) the product obtained by multi-
plying— 
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‘‘(i) the number of metric tons of car-
bon dioxide emissions avoided through cap-
ture and sequestration of emissions by the 
project, as determined pursuant to such 
methodology as the Administrator shall 
prescribe by regulation; and 
‘‘(ii) a bonus allowance value, pursu-
ant to paragraph (3); by 
‘‘(B) the average fair market value of an 
emission allowance during the preceding year. 
‘‘(3) BONUS ALLOWANCE VALUES.— 
‘‘(A) For a generating unit achieving the 
capture and sequestration of 85 percent or 
more of the carbon dioxide that otherwise would 
be emitted by such unit, the bonus allowance 
value shall be $90 per ton. 
‘‘(B) The Administrator shall by regulation 
establish a bonus allowance value for each rate 
of lower capture and sequestration achieved by 
a generating unit, from a minimum of $50 per 
ton for a 50 percent rate and varying directly 
with increasing rates of capture and sequestra-
tion up to $90 per ton for an 85 percent rate. 
‘‘(C) For a generating unit that achieves 
the capture and sequestration of at least 50 
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percent of the carbon dioxide that otherwise 
would be emitted by such unit by not later than 
January 1, 2017, the otherwise applicable 
bonus allowance value under this paragraph 
shall be increased by $10, provided that the 
owner of such unit notifies the Administrator 
by not later than January 1, 2012, of its intent 
to achieve such rate of capture and sequestra-
tion. 
‘‘(D) For a carbon capture and sequestra-
tion project sequestering in a geological forma-
tion for purposes of enhanced hydrocarbon re-
covery, the Administrator shall, by regulation, 
reduce the applicable bonus allowance value 
under this paragraph to reflect the lower net 
cost of the project when compared to sequestra-
tion into geological formations solely for pur-
poses of sequestration. 
‘‘(E) The Administrator shall annually ad-
just for inflation the bonus allowance values es-
tablished under this paragraph. 
‘‘(d) PHASE II DISTRIBUTION TO ELECTRIC GENER-
ATING UNITS.— 
‘‘(1) 
APPLICATION.—This 
subsection 
shall 
apply only to the distribution of emission allowances 
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for carbon capture and sequestration projects at 
electric generating units after the capacity threshold 
identified in subsection (c)(1) is reached. 
‘‘(2) REGULATIONS.—Not later than 2 years 
prior to the date on which the capacity threshold 
identified in subsection (c)(1) is projected to be 
reached, the Administrator shall promulgate regula-
tions to govern the distribution of emission allow-
ances to the owners or operators of eligible projects 
under this subsection. 
‘‘(3) REVERSE AUCTIONS.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraph (4), the regulations promulgated 
under paragraph (2) shall provide for the dis-
tribution of emission allowances to the owners 
or operators of eligible projects under this sub-
section through reverse auctions, which shall be 
held no less frequently than once each calendar 
year. The Administrator may establish a sepa-
rate auction for each of no more than 5 dif-
ferent project categories, defined on the basis of 
coal type, capture technology, geological forma-
tion type, new unit versus retrofit application, 
such other factors as the Administrator may 
prescribe, or any combination thereof. The Ad-
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ministrator may establish appropriate minimum 
rates of capture and sequestration in imple-
menting this paragraph. 
‘‘(B) AUCTION PROCESS.—At each reverse 
auction— 
‘‘(i) the Administrator shall solicit 
bids from eligible projects; 
‘‘(ii) eligible projects participating in 
the auction shall submit a bid including 
the desired level of carbon dioxide seques-
tration incentive per ton and the estimated 
quantity of carbon dioxide that the project 
will permanently sequester over 10 years; 
and 
‘‘(iii) the Administrator shall select 
bids, within each auction, for the seques-
tration amount submitted, beginning with 
the eligible project submitting the bid for 
the lowest level of sequestration incentive 
on a per ton basis and meeting such other 
requirements as the Administrator may 
specify, until the amount of funds available 
for the reverse auction is committed. 
‘‘(C) FORM OF DISTRIBUTION.—The Ad-
ministrator shall distribute emission allowances 
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to the owners or operators of eligible projects 
selected through a reverse auction under this 
paragraph pursuant to a formula equivalent to 
that described in subsection (c)(2), except that 
the bonus allowance value that is bid by the en-
tity shall be substituted for the bonus allowance 
values set forth in subsection (c)(3). 
‘‘(4) ALTERNATIVE DISTRIBUTION METHOD.— 
‘‘(A) IN GENERAL.—If the Administrator 
determines that reverse auctions would not pro-
vide for efficient and cost-effective commercial 
deployment of carbon capture and sequestration 
technologies, the Administrator may instead, 
through regulations promulgated under para-
graph (2) or (5), prescribe a schedule for the 
award of bonus allowances to the owners or op-
erators of eligible projects under this sub-
section, in accordance with the requirements of 
this paragraph. 
‘‘(B) MULTIPLE TRANCHES.—The Admin-
istrator shall divide emission allowances avail-
able for distribution to the owners or operators 
of eligible projects into a series of tranches, 
each supporting the deployment of a specified 
quantity of cumulative electric generating ca-
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HR 2454 PCS
pacity utilizing carbon capture and sequestra-
tion technology, each of which shall not be 
greater than 6 gigawatts. 
‘‘(C) METHOD
OF
DISTRIBUTION.—The 
Administrator shall distribute emission allow-
ances within each tranche, on a first-come, 
first-served basis— 
‘‘(i) based on the date of full-scale op-
eration of capture and sequestration tech-
nology; and 
‘‘(ii) pursuant to a formula, similar to 
that set forth in subsection (c)(2) (except 
that the Administrator shall prescribe 
bonus allowance values different than those 
set forth in subsection (c)(3)), establishing 
the number of allowances to be distributed 
per ton of carbon dioxide sequestered by 
the project. 
‘‘(D) REQUIREMENTS.—For each tranche 
established pursuant to subparagraph (B), the 
Administrator shall establish a schedule for dis-
tributing emission allowances that— 
‘‘(i) is based on a sliding scale that 
provides higher bonus allowance values for 
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projects achieving higher rates of capture 
and sequestration; 
‘‘(ii) for each capture and sequestra-
tion rate, establishes a bonus allowance 
value that is lower than that established 
for such rate in the previous tranche (or, 
in the case of the first tranche, than that 
established for such rate under subsection 
(c)(3)); and 
‘‘(iii) may establish different bonus al-
lowance levels for no more than 5 different 
project categories, defined by coal type, 
capture technology, geological formation 
type, new unit versus retrofit application, 
such other factors as the Administrator 
may prescribe, or any combination thereof. 
‘‘(E) CRITERIA FOR ESTABLISHING BONUS 
ALLOWANCE VALUES.—In setting bonus allow-
ance values under this paragraph, the Adminis-
trator shall seek to cover no more than the rea-
sonable incremental capital and operating costs 
of a project that are attributable to implemen-
tation of carbon capture, transportation, and 
sequestration technologies, taking into ac-
count— 
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‘‘(i) the reduced cost of compliance 
with section 722 of this Act; 
‘‘(ii) the reduced cost associated with 
sequestering in a geological formation for 
purposes of enhanced hydrocarbon recovery 
when compared to sequestration into geo-
logical formations solely for purposes of se-
questration; 
‘‘(iii) the relevant factors defining the 
project category; and 
‘‘(iv) such other factors as the Admin-
istrator determines are appropriate. 
‘‘(5) REVISION OF REGULATIONS.—The Admin-
istrator shall review, and as appropriate revise, the 
applicable regulations under this subsection no less 
frequently than every 8 years. 
‘‘(e) LIMITS FOR CERTAIN ELECTRIC GENERATING 
UNITS.— 
‘‘(1) DEFINITIONS.—For purposes of this sub-
section, the terms ‘covered EGU’ and ‘initially per-
mitted’ shall have the meaning given those terms in 
section 812 of this Act. 
‘‘(2) COVERED
EGUS
INITIALLY
PERMITTED 
FROM
2009
THROUGH
2014.—For a covered EGU 
that is initially permitted on or after January 1, 
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2009, and before January 1, 2015, the Adminis-
trator shall reduce the quantity of emission allow-
ances that the owner or operator of such covered 
EGU would otherwise be eligible to receive under 
this section as follows: 
‘‘(A) In the case of a unit commencing op-
eration on or before January 1, 2019, if the 
date in clause (ii)(I) is earlier than the date in 
clause (ii)(II), by the product of— 
‘‘(i) 20 percent; and 
‘‘(ii) the number of years, if any, that 
have elapsed between— 
‘‘(I) the earlier of January 1, 
2020, or the date that is 5 years after 
the commencement of operation of 
such covered EGU; and 
‘‘(II) the first year that such cov-
ered EGU achieves (and thereafter 
maintains) an emission limit that is at 
least a 50 percent reduction in emis-
sions of the carbon dioxide produced 
by the unit, measured on an annual 
basis, as determined in accordance 
with section 812(b)(2). 
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produced by the unit, measured on an annual basis, 
as determined in accordance with section 812(b)(2). 
‘‘(f) INDUSTRIAL SOURCES.— 
‘‘(1) ALLOWANCES.—The Administrator may 
distribute not more than 15 percent of the allow-
ances allocated under section 782(f) for any vintage 
year to the owners or operators of eligible industrial 
sources to support the commercial-scale deployment 
of carbon capture and sequestration technologies at 
such sources. 
‘‘(2) DISTRIBUTION.—The Administrator shall, 
by regulation, prescribe requirements for the dis-
tribution of emission allowances to the owners or op-
erators of industrial sources under this subsection, 
based on a bonus allowance formula that awards al-
lowances to qualifying projects on the basis of tons 
of carbon dioxide captured and permanently seques-
tered. The Administrator may provide for the dis-
tribution of emission allowances pursuant to— 
‘‘(A) a reverse auction method, similar to 
that described under subsection (d)(3), includ-
ing the use of separate auctions for different 
project categories; or 
‘‘(B) an incentive schedule, similar to that 
described under subsection (d)(4), which shall 
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ensure that incentives are set so as to satisfy 
the 
requirement 
described 
in 
subsection 
(d)(4)(E). 
‘‘(3) REVISION OF REGULATIONS.—The Admin-
istrator shall review, and as appropriate revise, the 
applicable regulations under this subsection no less 
frequently than every 8 years. 
‘‘(g) LIMITATIONS.—Allowances may be distributed 
under this section only for tons of carbon dioxide emis-
sions that have already been captured and sequestered. A 
qualifying project may receive annual emission allowances 
under this section only for the first 10 years of operation. 
No greater than 72 gigawatts of total cumulative gener-
ating capacity (including industrial applications, measured 
by such equivalent metric as the Administrator may des-
ignate) may receive emission allowances under this sec-
tion. Upon reaching the limit described in the preceding 
sentence, any emission allowances that are allocated for 
carbon capture and sequestration deployment under sec-
tion 782(f) and are not yet obligated under this section 
shall be treated as allowances not designated for distribu-
tion for purposes of section 782(r). 
‘‘(h) EXHAUSTION OF ACCOUNT AND ANNUAL ROLL- 
OVER OF SURPLUS ALLOWANCES.— 
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‘‘(1) In distributing emission allowances under 
this section, the Administrator shall ensure that 
qualifying projects receiving allowances receive dis-
tributions for 10 years. 
‘‘(2) If the Administrator determines that the 
emission allowances allocated under section 782(f) 
with a vintage year that matches the year of dis-
tribution will be exhausted once the estimated full 
10-year distributions will be provided to current eli-
gible participants, the Administrator shall provide to 
new eligible projects allowances from vintage years 
after the year of the distribution. 
‘‘(i) RETROFIT APPLICATIONS.—(1) In calculating 
bonus allowance values for retrofit applications eligible 
under subsection (b)(1)(A)(ii) and (iv)(II), the Adminis-
trator shall apply the required capture rates with respect 
to the treated portion of flue gas from the unit. 
‘‘(2) No additional projects shall be eligible for allow-
ances under subsection (b)(1)(A)(ii) and (iv)(II) as of such 
time as the Administrator reports, pursuant to section 
812(d), that carbon capture and sequestration retrofit 
projects at electric generating units that are eligible for 
allowances under this section have been applied, in the ag-
gregate, to the flue gas generated by 1 gigawatt of total 
cumulative generating capacity. The limitation in the pre-
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ceding sentence shall not apply to projects that meet the 
eligibility criteria in subsection (b)(1)(A)(iv)(I). 
‘‘(j) DAVIS-BACON COMPLIANCE.—All laborers and 
mechanics employed on projects funded directly by or as-
sisted in whole or in part by this section through the use 
of emission allowances shall be paid wages at rates not 
less than those prevailing on projects of a character simi-
lar in the locality as determined by the Secretary of Labor 
in accordance with subchapter IV, chapter 31, part A of 
subtitle II of title 40, United States Code. With respect 
to the labor standards specified in this subsection, the Sec-
retary of Labor shall have the authority and functions set 
forth in Reorganization Plan Numbered 14 of 1950 (64 
Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, 
United States Code.’’. 
SEC. 116. PERFORMANCE STANDARDS FOR COAL-FUELED 
POWER PLANTS. 
(a) IN GENERAL.—Title VIII of the Clean Air Act 
(as added by section 331 of this Act) is amended by add-
ing the following new section after section 811: 
‘‘SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL- 
FIRED POWER PLANTS. 
‘‘(a) DEFINITIONS.—For purposes of this section: 
‘‘(1) COVERED EGU.—The term ‘covered EGU’ 
means a utility unit that is required to have a per-
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104 
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mit under section 503(a) and is authorized under 
state or federal law to derive at least 30 percent of 
its annual heat input from coal, petroleum coke, or 
any combination of these fuels. 
‘‘(2) INITIALLY
PERMITTED.—The term ‘ini-
tially permitted’ means that the owner or operator 
has received a Clean Air Act preconstruction ap-
proval or permit, for the covered EGU as a new (not 
a modified) source, but administrative review or ap-
peal of such approval or permit has not been ex-
hausted. A subsequent modification of any such ap-
proval or permits, ongoing administrative or court 
review, appeals, or challenges, or the existence or 
tolling of any time to pursue further review, appeals, 
or challenges shall not affect the date on which a 
covered EGU is considered to be initially permitted 
under this paragraph. 
‘‘(b) STANDARDS.—(1) A covered EGU that is ini-
tially permitted on or after January 1, 2020, shall achieve 
an emission limit that is a 65 percent reduction in emis-
sions of the carbon dioxide
produced by the
unit, as 
measured on an annual basis, or meet such more stringent 
standard as the Administrator may establish pursuant to 
subsection (c). 
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‘‘(2) A covered EGU that is initially permitted after 
January 1, 2009, and before January 1, 2020, shall, by 
the applicable compliance date established under this 
paragraph, achieve an emission limit that is a 50 percent 
reduction in emissions of the carbon dioxide produced by 
the
unit, as measured on an annual basis. Compliance 
with the requirement set forth in this paragraph shall be 
required by the earliest of the following: 
‘‘(A) Four years after the date the Adminis-
trator has published pursuant to subsection (d) a re-
port that there are in commercial operation in the 
United States electric generating units or other sta-
tionary sources equipped with carbon capture and 
sequestration technology that, in the aggregate— 
‘‘(i) have a total of at least 4 gigawatts of 
nameplate generating capacity of which— 
‘‘(I) at least 3 gigawatts must be elec-
tric generating units; and 
‘‘(II) up to 1 gigawatt may be indus-
trial applications, for which capture and 
sequestration of 3 million tons of carbon 
dioxide 
per 
year 
on 
an 
aggregate 
annualized basis shall be considered equiv-
alent to 1 gigawatt; 
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HR 2454 PCS
‘‘(ii) include at least 2 electric generating 
units, each with a nameplate generating capac-
ity of 250 megawatts or greater, that capture, 
inject, and sequester carbon dioxide into geo-
logic formations other than oil and gas fields; 
and 
‘‘(iii) are capturing and sequestering in the 
aggregate at least 12 million tons of carbon di-
oxide per year, calculated on an aggregate 
annualized basis. 
‘‘(B) January 1, 2025. 
‘‘(3) If the deadline for compliance with paragraph 
(2) is January 1, 2025, the Administrator may extend the 
deadline for compliance by a covered EGU by up to 18 
months if the Administrator makes a determination, based 
on a showing by the owner or operator of the unit, that 
it will be technically infeasible for the unit to meet the 
standard by the deadline. The owner or operator must 
submit a request for such an extension by no later than 
January 1, 2022, and the Administrator shall provide for 
public notice and comment on the extension request. 
‘‘(c) REVIEW AND REVISION OF STANDARDS.—Not 
later than 2025 and at 5-year intervals thereafter, the Ad-
ministrator shall review the standards for new covered 
EGUs under this section and shall, by rule, reduce the 
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maximum carbon dioxide emission rate for new covered 
EGUs to a rate which reflects the degree of emission limi-
tation achievable through the application of the best sys-
tem of emission reduction which (taking into account the 
cost of achieving such reduction and any nonair quality 
health and environmental impact and energy require-
ments) the Administrator determines has been adequately 
demonstrated. 
‘‘(d) REPORTS.—Not later than the date 18 months 
after the date of enactment of this title and semiannually 
thereafter, the Administrator shall publish a report on the 
nameplate capacity of units (determined pursuant to sub-
section (b)(2)(A)) in commercial operation in the United 
States equipped with carbon capture and sequestration 
technology, including the information described in sub-
section (b)(2)(A) (including the cumulative generating ca-
pacity to which carbon capture and sequestration retrofit 
projects meeting the criteria described in section 
786(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied 
and the quantities of carbon dioxide captured and seques-
tered by such projects). 
‘‘(e) REGULATIONS.—Not later than 2 years after the 
date of enactment of this title, the Administrator shall 
promulgate regulations to carry out the requirements of 
this section.’’. 
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Subtitle C—Clean Transportation 
SEC. 121. ELECTRIC VEHICLE INFRASTRUCTURE. 
(a) AMENDMENT OF PURPA.—Section 111(d) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2621(d)) is amended by adding at the end the following: 
‘‘(20) PLUG-IN ELECTRIC DRIVE VEHICLE IN-
FRASTRUCTURE.— 
‘‘(A) UTILITY
PLAN
FOR
INFRASTRUC-
TURE.—Each electric utility shall develop a 
plan to support the use of plug-in electric drive 
vehicles, including heavy-duty hybrid electric ve-
hicles. The plan may provide for deployment of 
electrical charging stations in public or private 
locations, including street parking, parking ga-
rages, parking lots, homes, gas stations, and 
highway rest stops. Any such plan may also in-
clude— 
‘‘(i) battery exchange, fast charging 
infrastructure and other services; 
‘‘(ii) triggers for infrastructure de-
ployment based upon market penetration 
of plug-in electric drive vehicles; and 
‘‘(iii) such other elements as the State 
determines necessary to support plug-in 
electric drive vehicles. 
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Each plan under this paragraph shall provide 
for the deployment of the charging infrastruc-
ture or other infrastructure necessary to ade-
quately support the use of plug-in electric drive 
vehicles. 
‘‘(B) 
SUPPORT
REQUIREMENTS.—Each 
State regulatory authority (in the case of each 
electric utility for which it has ratemaking au-
thority) and each utility (in the case of a non-
regulated utility) shall— 
‘‘(i) require that charging infrastruc-
ture deployed is interoperable with prod-
ucts of all auto manufacturers to the ex-
tent possible; and 
‘‘(ii) consider adopting minimum re-
quirements for deployment of electrical 
charging infrastructure and other appro-
priate requirements necessary to support 
the use of plug-in electric drive vehicles. 
‘‘(C) COST RECOVERY.—Each State regu-
latory authority (in the case of each electric 
utility for which it has ratemaking authority) 
and each utility (in the case of a nonregulated 
utility) shall consider whether, and to what ex-
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tent, to allow cost recovery for plans and imple-
mentation of plans. 
‘‘(D) SMART
GRID
INTEGRATION.—The 
State regulatory authority (in the case of each 
electric utility for which it has ratemaking au-
thority) and each utility (in the case of a non-
regulated utility) shall, in accordance with regu-
lations issued by the Federal Energy Regu-
latory Commission pursuant to section 1305(d) 
of the Energy Independence and Security Act 
of 2007— 
‘‘(i) establish any appropriate proto-
cols and standards for integrating plug-in 
electric drive vehicles into an electrical dis-
tribution system, including Smart Grid 
systems and devices as described in title 
XIII of the Energy Independence and Se-
curity Act of 2007; 
‘‘(ii) include, to the extent feasible, 
the ability for each plug-in electric drive 
vehicle to be identified individually and to 
be associated with its owner’s electric util-
ity account, regardless of the location that 
the vehicle is plugged in, for purposes of 
appropriate billing for any electricity re-
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quired to charge the vehicle’s batteries as 
well as any crediting for electricity pro-
vided to the electric utility from the vehi-
cle’s batteries; and 
‘‘(iii) review the determination made 
in response to section 1252 of the Energy 
Policy Act of 2005 in light of this section, 
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.’’. 
(b) COMPLIANCE.— 
(1) TIME LIMITATIONS.—Section 112(b) of the 
Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2622(b)) is amended by adding the following 
at the end thereof: 
‘‘(7)(A) Not later than 3 years after the date of en-
actment of this paragraph, each State regulatory authority 
(with respect to each electric utility for which it has rate-
making authority) and each nonregulated utility shall 
commence the consideration referred to in section 111, or 
set a hearing date for consideration, with respect to the 
standard established by paragraph (20) of section 111(d). 
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‘‘(B) Not later than 4 years after the date of enact-
ment of the this paragraph, each State regulatory author-
ity (with respect to each electric utility for which it has 
ratemaking authority), and each nonregulated electric util-
ity, shall complete the consideration, and shall make the 
determination, referred to in section 111 with respect to 
the standard established by paragraph (20) of section 
111(d).’’. 
(2) FAILURE TO COMPLY.—Section 112(c) of 
the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622(c)) is amended by adding the fol-
lowing at the end: ‘‘In the case of the standards es-
tablished 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 ref-
erence to the date of enactment of such paragraph.’’. 
(3) PRIOR STATE ACTIONS.—Section 112(d) of 
the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622(d)) is amended by striking ‘‘(19)’’ 
and inserting ‘‘(20)’’ before ‘‘of section 111(d)’’. 
SEC. 122. LARGE-SCALE VEHICLE ELECTRIFICATION PRO-
GRAM. 
(a) DEPLOYMENT PROGRAM.—The Secretary of En-
ergy shall establish a program to deploy and integrate 
plug-in electric drive vehicles into the electricity grid in 
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multiple regions. In carrying out the program, the Sec-
retary may provide financial assistance described under 
subsection (d), consistent with the goals under subsection 
(b). The Secretary shall select regions based upon applica-
tions for assistance received pursuant to subsection (c). 
(b) GOALS.—The goals of the program established 
pursuant to subsection (a) shall be— 
(1) to demonstrate the viability of a vehicle- 
based transportation system that is not overly de-
pendent on petroleum as a fuel and contributes to 
lower carbon emissions than a system based on con-
ventional vehicles; 
(2) to facilitate the integration of advanced ve-
hicle technologies into electricity distribution areas 
to improve system performance and reliability; 
(3) to demonstrate the potential benefits of co-
ordinated investments in vehicle electrification on 
personal mobility and a regional grid; 
(4) to demonstrate protocols and standards that 
facilitate vehicle integration into the grid; and 
(5) to investigate differences in each region and 
regulatory environment regarding best practices in 
implementing vehicle electrification. 
(c) APPLICATIONS.—Any State, Indian tribe, or local 
government (or group of State, Indian tribe, or local gov-
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ernments) may apply to the Secretary of Energy for finan-
cial assistance in furthering the regional deployment and 
integration into the electricity grid of plug-in electric drive 
vehicles. Such applications may be jointly sponsored by 
electric utilities, automobile manufacturers, technology 
providers, car sharing companies or organizations, or 
other persons or entities. 
(d) USE OF FUNDS.—Pursuant to applications re-
ceived under subsection (c), the Secretary may make fi-
nancial assistance available to any applicant or joint spon-
sor of the application to be used for any of the following: 
(1) Assisting persons located in the regional de-
ployment area, including fleet owners, in the pur-
chase of new plug-in electric drive vehicles by offset-
ting in whole or in part the incremental cost of such 
vehicles above the cost of comparable conventionally 
fueled vehicles. 
(2) Supporting the use of plug-in electric drive 
vehicles by funding projects for the deployment of 
any of the following: 
(A) Electrical charging infrastructure for 
plug-in electric drive vehicles, including battery 
exchange, fast charging infrastructure, and 
other services, in public or private locations, in-
cluding street parking, parking garages, park-
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ing lots, homes, gas stations, and highway rest 
stops. 
(B) Smart Grid equipment and infrastruc-
ture, as described in title XIII of the Energy 
Independence and Security Act of 2007, to fa-
cilitate the charging and integration of plug-in 
electric drive vehicles. 
(3) Such other projects as the Secretary deter-
mines appropriate to support the large-scale deploy-
ment of plug-in electric drive vehicles in regional de-
ployment areas. 
(e) PROGRAM REQUIREMENTS.—The Secretary, in 
consultation with the Administrator and the Secretary of 
Transportation, shall determine design elements and re-
quirements of the program established pursuant to sub-
section (a), including— 
(1) the type of financial mechanism with which 
to provide financial assistance; 
(2) criteria for evaluating applications sub-
mitted under subsection (c), including the antici-
pated ability to promote deployment and market 
penetration of vehicles that are less dependent on 
petroleum as a fuel source; and 
(3) reporting requirements for entities that re-
ceive financial assistance under this section, includ-
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