use by employees of the agency that are 
participating in the program. 
‘‘(vi) Recommendations to increase 
program participation and thereby reduce 
single occupancy vehicle use by Federal 
employees nationwide. 
‘‘(6) REPORTING
REQUIREMENTS.—Not later 
than September 30 of the first fiscal year beginning 
after the date of enactment of this paragraph, and 
every 3 years thereafter, the Secretary shall submit 
to the Committee on Transportation and Infrastruc-
ture and the Committee on Oversight and Govern-
ment Reform of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate a report on nationwide implemen-
tation of the transit pass transportation fringe bene-
fits program under this subsection, including a sum-
mary of the information submitted by agencies pur-
suant to paragraph (5)(F).’’. 
(d) EFFECTIVE DATE.—Except as otherwise specifi-
cally provided, the amendments made by this section shall 
become effective on the first day of the first fiscal year 
beginning after the date of enactment of this Act. 
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SEC. 106. CAPITAL COST OF CONTRACTING VANPOOL 
PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish and implement a pilot program to 
carry out vanpool demonstration projects in not more than 
3 urbanized areas and not more than 2 other than urban-
ized areas. 
(b) PILOT PROGRAM.— 
(1) IN
GENERAL.—Notwithstanding section 
5323(i) of title 49, United States Code, for each 
project selected for participation in the pilot pro-
gram, the Secretary shall allow the non-Federal 
share provided by a recipient of assistance for a cap-
ital project under chapter 53 of such title to include 
the amounts described in paragraph (2). 
(2) CONDITIONS ON ACQUISITION OF VANS.— 
The amounts referred to in paragraph (1) are any 
amounts expended by a private provider of public 
transportation by vanpool for the acquisition of vans 
to be used by such private provider in the recipient’s 
service area, excluding any amounts the provider 
may have received in Federal, State, or local govern-
ment assistance for such acquisition, if the private 
provider enters into a legally binding agreement with 
the recipient that requires the private provider to 
use all revenues it receives in providing public trans-
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portation in such service area, in excess of its oper-
ating costs, for the purpose of acquiring vans to be 
used by the private provider in such service area. 
(c) PROGRAM TERM.—The Secretary may approve an 
application for a vanpool demonstration project for fiscal 
years 2011 through 2012. 
(d) REPORT TO CONGRESS.—Not later than one year 
after the date of enactment of this Act, the Secretary shall 
submit to the Committee on Transportation and Infra-
structure of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate a report containing an assessment of the costs, 
benefits, and efficiencies of the vanpool demonstration 
projects. 
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TITLE II—DENIAL OF CERTAIN 
TAX BENEFITS TO MAJOR IN-
TEGRATED OIL COMPANIES 
AND INVESTMENT IN CLEAN 
ENERGY 
AND 
TRANSPOR-
TATION 
SEC. 201. LIMITATION ON DEDUCTION FOR INTANGIBLE 
DRILLING AND DEVELOPMENT COSTS OF 
MAJOR INTEGRATED OIL COMPANIES IN THE 
CASE OF OIL AND GAS WELLS. 
(a) IN GENERAL.—Subsection (c) of section 263 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new sentence: ‘‘This subsection 
shall not apply to intangible drilling and development costs 
paid or incurred by any major integrated oil company (as 
defined in section 167(h)(5)) in the case of oil and gas 
wells.’’. 
(b) CONFORMING AMENDMENT.—Subsection (c) of 
section 263 of such Code is amended by inserting ‘‘(deter-
mined without regard to the last sentence of this sub-
section)’’ after ‘‘in the same manner as such expenses are 
deductible in the case of oil and gas wells’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
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able years beginning after the date of the enactment of 
this Act. 
SEC. 202. DEDUCTION FOR INCOME ATTRIBUTABLE TO DO-
MESTIC PRODUCTION ACTIVITIES NOT AL-
LOWED WITH RESPECT TO OIL AND GAS AC-
TIVITIES OF MAJOR INTEGRATED OIL COM-
PANIES. 
(a) IN GENERAL.—Subparagraph (B) of section 
199(c)(4) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘and’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting ‘‘, and’’, 
and by inserting after clause (iii) the following new clause: 
‘‘(iv) in the case of a major integrated 
oil 
company 
(as 
defined 
in 
section 
167(h)(5)), the production, refining, proc-
essing, transportation, or distribution of 
oil, gas, or any primary product thereof.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 203. MAJOR INTEGRATED OIL COMPANIES INELIGIBLE 
FOR LAST-IN, FIRST-OUT METHOD OF INVEN-
TORY. 
(a) IN GENERAL.—Section 471 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
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(c) as subsection (d) and by inserting after subsection (b) 
the following new subsection: 
‘‘(c) MAJOR INTEGRATED OIL COMPANIES INELI-
GIBLE FOR LAST-IN, FIRST-OUT METHOD.—In the case 
of a major integrated oil company (as defined in section 
167(h)(5)(B))— 
‘‘(1) the last-in, first-out method of determining 
inventories shall in no event be treated as clearly re-
flecting income, and 
‘‘(2) sections 472 and 473 shall not apply.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after the date of the enactment of this Act. 
(2) CHANGE IN METHOD OF ACCOUNTING.—In 
the case of any taxpayer required by the amend-
ments made by this section to change its method of 
accounting for its first taxable year beginning after 
the date of the enactment of this Act— 
(A) such change shall be treated as initi-
ated by the taxpayer, 
(B) such change shall be treated as made 
with the consent of the Secretary of the Treas-
ury, and 
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(C) if the net amount of the adjustments 
required to be taken into account by the tax-
payer under section 481 of the Internal Rev-
enue Code of 1986 is positive, such amount 
shall be taken into account over a period of 8 
years beginning with such first taxable year. 
SEC. 204. CREDIT FOR HEAVY NATURAL GAS AND HYBRID 
VEHICLES. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 30E. HEAVY NATURAL GAS AND HEAVY HYBRID VEHI-
CLE CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of— 
‘‘(1) the new qualified heavy natural gas motor 
vehicle credit determined under subsection (b), and 
‘‘(2) the new qualified heavy hybrid motor vehi-
cle credit determined under subsection (c). 
‘‘(b) NEW QUALIFIED HEAVY NATURAL GAS MOTOR 
VEHICLE CREDIT.— 
‘‘(1) IN
GENERAL.—The new qualified heavy 
natural gas motor vehicle credit determined under 
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this subsection is an amount equal to 80 percent of 
the incremental cost of any new qualified heavy nat-
ural gas motor vehicle placed in service by the tax-
payer during the taxable year. 
‘‘(2) NEW
QUALIFIED
HEAVY
NATURAL
GAS 
MOTOR VEHICLE.—For purposes of this subsection, 
the term ‘new qualified heavy natural gas motor ve-
hicle’ means any motor vehicle— 
‘‘(A) which is only capable of operating on 
compressed or liquified natural gas, 
‘‘(B) which has a gross vehicle weight rat-
ing of more than 8,500 pounds, 
‘‘(C) the original use of which commences 
with the taxpayer, 
‘‘(D) which is acquired by the taxpayer for 
use or lease, but not for resale, and 
‘‘(E) which is made by a manufacturer. 
‘‘(3) CREDIT FOR MIXED-FUEL VEHICLES.— 
‘‘(A) IN
GENERAL.—In the case of a 
mixed-fuel vehicle placed in service by the tax-
payer during the taxable year, the credit deter-
mined under this subsection is an amount equal 
to— 
‘‘(i) in the case of a 65/35 mixed-fuel 
vehicle, 65 percent of the credit which 
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would have been allowed under this sub-
section if such vehicle was a new qualified 
heavy natural gas motor vehicle, and 
‘‘(ii) in the case of a 90/10 mixed-fuel 
vehicle, 90 percent of the credit which 
would have been allowed under this sub-
section if such vehicle was a new qualified 
heavy natural gas motor vehicle. 
‘‘(B) MIXED-FUEL
VEHICLE.—For pur-
poses of this paragraph, the term ‘mixed-fuel 
vehicle’ means any motor vehicle which— 
‘‘(i) would be a new qualified heavy 
natural gas motor vehicle but for the re-
quirement of paragraph (2)(A), 
‘‘(ii) is certified by the manufacturer 
as being able to perform efficiently in nor-
mal operation on a combination of com-
pressed or liquified natural gas and an-
other petroleum-based fuel, and 
‘‘(iii) either— 
‘‘(I) has received a certificate of 
conformity under the Clean Air Act, 
or 
‘‘(II) has received an order certi-
fying the vehicle as meeting the same 
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requirements as vehicles which may be 
sold or leased in California and meets 
or exceeds the low emission vehicle 
standard under section 88.105-94 of 
title 40, Code of Federal Regulations, 
for that make and model year vehicle. 
‘‘(C) 65/35 MIXED-FUEL
VEHICLE.—For 
purposes of this paragraph, the term ‘65/35 
mixed-fuel vehicle’ means a mixed-fuel vehicle 
which operates using at least 65 percent com-
pressed or liquified natural gas and not more 
than 35 percent petroleum-based fuel. 
‘‘(D) 90/10 MIXED-FUEL
VEHICLE.—For 
purposes of this paragraph, the term ‘90/10 
mixed-fuel vehicle’ means a mixed-fuel vehicle 
which operates using at least 90 percent com-
pressed or liquified natural gas and not more 
than 10 percent petroleum-based fuel. 
‘‘(c) NEW QUALIFIED HEAVY HYBRID MOTOR VEHI-
CLE CREDIT.— 
‘‘(1) IN
GENERAL.—The new qualified heavy 
natural gas motor vehicle credit determined under 
this subsection is an amount equal to 80 percent of 
the incremental cost of any new qualified heavy hy-
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brid motor vehicle placed in service by the taxpayer 
during the taxable year. 
‘‘(2) NEW QUALIFIED HEAVY HYBRID MOTOR 
VEHICLE.—For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘new quali-
fied heavy hybrid motor vehicle’ means a motor 
vehicle— 
‘‘(i) which draws propulsion energy 
from an onboard rechargeable energy stor-
age system, 
‘‘(ii) which, in the case of a vehicle 
which has an internal combustion or heat 
engine which uses consumable fuel, has re-
ceived, with respect to such engine, a cer-
tificate of conformity under the Clean Air 
Act as meeting the emission standards set 
in the regulations prescribed by the Ad-
ministrator of the Environmental Protec-
tion Agency for 2004 through 2007 model 
year diesel heavy duty engines or ottocycle 
heavy duty engines, as applicable, 
‘‘(iii) which has a gross vehicle weight 
rating of more than 8,500 pounds, 
‘‘(iv) which has a maximum available 
power of at least— 
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‘‘(I) 10 percent in the case of a 
vehicle which has a gross vehicle 
weight rating of not more than 
14,000 pounds, and 
‘‘(II) 15 percent in the case of a 
vehicle which has a gross vehicle 
weight rating of more than 14,000 
pounds, 
‘‘(v) the original use of which com-
mences with the taxpayer, 
‘‘(vi) which is acquired by the tax-
payer for use or lease, but not for resale, 
and 
‘‘(vii) which is made by a manufac-
turer. 
‘‘(B) CONSUMABLE FUEL.—For purposes 
of 
subparagraph 
(A)(ii)(I), 
the 
term 
‘consumable fuel’ means any solid, liquid, or 
gaseous matter which releases energy when con-
sumed by an auxiliary power unit. 
‘‘(C) MAXIMUM AVAILABLE POWER.—For 
purposes of subparagraph (A)(iii), the term 
‘maximum available power’ means the max-
imum power available from the rechargeable en-
ergy storage system during a standard 10 sec-
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ond pulse power or equivalent test, divided by 
the vehicle’s total traction power. For purposes 
of the preceding sentence, the term ‘total trac-
tion power’ means the sum of the peak power 
from the rechargeable energy storage system 
and the heat engine peak power of the vehicle, 
except that if such storage system is the sole 
means by which the vehicle can be driven, the 
total traction power is the peak power of such 
storage system. 
‘‘(d) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is attributable to property of a char-
acter subject to an allowance for depreciation shall 
be treated as a credit listed in section 38(b) for such 
taxable year (and not allowed under subsection (a)). 
‘‘(2) PERSONAL CREDIT.— 
‘‘(A) IN GENERAL.—For purposes of this 
title, the credit allowed under subsection (a) for 
any taxable year (determined after application 
of paragraph (1)) shall be treated as a credit 
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allowable under subpart A for such taxable 
year. 
‘‘(B) LIMITATION BASED ON AMOUNT OF 
TAX.—In the case of a taxable year to which 
section 26(a)(2) does not apply, the credit al-
lowed under subsection (a) for any taxable year 
(determined after application of paragraph (1)) 
shall not exceed the excess of— 
‘‘(i) the sum of the regular tax liabil-
ity (as defined in section 26(b)) plus the 
tax imposed by section 55, over 
‘‘(ii) the sum of the credits allowable 
under subpart A (other than this section 
and sections 23 and 25D) and section 27 
for the taxable year. 
‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) INCREMENTAL
COST.—The term ‘incre-
mental cost’ means, with respect to any motor vehi-
cle, the excess of the manufacturer’s suggested retail 
price for such vehicle over such price for a gasoline 
or diesel fuel motor vehicle of the same model (or, 
if there is no such gasoline or diesel fuel motor vehi-
cle of the same model, a gasoline or diesel fuel motor 
vehicle which is comparable in weight, size, and use 
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to such vehicle), to the extent such amount does not 
exceed— 
‘‘(A) $20,000, if such vehicle has a gross 
vehicle weight rating of not more than 14,000 
pounds, 
‘‘(B) $50,000, if such vehicle has a gross 
vehicle weight rating of more than 14,000 
pounds but not more than 26,000 pounds, 
‘‘(C) $80,000, if such vehicle has a gross 
vehicle weight rating of more than 26,000 
pounds but not more than 33,000 pounds, and 
‘‘(D) $100,000, if such vehicle has a gross 
vehicle weight rating of more than 33,000 
pounds. 
The amount described in the preceding sentence 
shall be certified by the manufacturer and shall be 
determined in accordance with guidance prescribed 
by the Secretary. 
‘‘(2) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ means any vehicle which is manufactured pri-
marily for use on public streets, roads, and highways 
(not including a vehicle operated exclusively on a rail 
or rails) and which has at least 4 wheels. 
‘‘(3) MANUFACTURER.—The term ‘manufac-
turer’ has the meaning given such term in regula-
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tions prescribed by the Administrator of the Envi-
ronmental Protection Agency for purposes of the ad-
ministration of title II of the Clean Air Act (42 
U.S.C. 7521 et seq.). 
‘‘(4) REDUCTION IN BASIS.—For purposes of 
this subtitle, the basis of any property for which a 
credit is allowable under subsection (a) shall be re-
duced by the amount of such credit so allowed (de-
termined without regard to subsection (d)). 
‘‘(5) NO
DOUBLE
BENEFIT.—The amount of 
any deduction or other credit allowable under this 
chapter with respect to any motor vehicle shall be 
reduced by the amount of the credit allowed under 
subsection (a) for such vehicle (determined without 
regard to subsection (d)). 
‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTI-
TY.—In the case of a vehicle whose use is described 
in paragraph (3) or (4) of section 50(b) and which 
is not subject to a lease, the person who sold such 
vehicle to the person or entity using such vehicle 
shall be treated as the taxpayer that placed such ve-
hicle in service, but only if such person clearly dis-
closes to such person or entity in a document the 
amount of any credit allowable under subsection (a) 
with respect to such vehicle (determined without re-
VerDate Mar 15 2010 
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gard to subsection (d)). For purposes of subsection 
(d), property to which this paragraph applies shall 
be treated as of a character subject to an allowance 
for depreciation. 
‘‘(7) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No credit shall be 
allowable under subsection (a) with respect to any 
property referred to in section 50(b)(1) or with re-
spect to the portion of the cost of any property 
taken into account under section 179. 
‘‘(8) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit (including recapture in the case of a 
lease period of less than the economic life of a vehi-
cle). 
‘‘(9) ELECTION
TO
NOT
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
vehicle if the taxpayer elects to not have this section 
apply to such vehicle. 
‘‘(10) INTERACTION
WITH
AIR
QUALITY
AND 
MOTOR VEHICLE SAFETY STANDARDS.—Unless oth-
erwise provided in this section, a motor vehicle shall 
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not be considered eligible for a credit under this sec-
tion unless such vehicle is in compliance with— 
‘‘(A) the applicable provisions of the Clean 
Air Act for the applicable make and model year 
of the vehicle (or applicable air quality provi-
sions of State law in the case of a State which 
has adopted such provision under a waiver 
under section 209(b) of the Clean Air Act), and 
‘‘(B) the motor vehicle safety provisions of 
sections 30101 through 30169 of title 49, 
United States Code. 
‘‘(f) TERMINATION.—This section shall not apply to 
motor vehicles acquired after December 31, 2016.’’. 
(b) COORDINATION WITH NEW QUALIFIED PLUG-IN 
ELECTRIC DRIVE MOTOR VEHICLE CREDIT.—Subpara-
graph (E) of section 30D(d)(1) of such Code is amended 
by striking ‘‘less than 14,000 pounds’’ and inserting ‘‘not 
more than 8,500 pounds’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (35), by 
striking the period at the end of paragraph 36 and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing new paragraph: 
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‘‘(37) the portion of the new qualified heavy 
natural gas motor vehicle credit and the new quali-
fied heavy hybrid motor vehicle credit to which sec-
tion 30E(d)(1) applies.’’. 
(2) Section 24(b)(3)(B) of such Code is amend-
ed by striking ‘‘and 30D’’ and inserting ‘‘30D, and 
30E’’. 
(3) Section 25(e)(1)(C)(ii) of such Code is 
amended by inserting ‘‘30E,’’ after ‘‘30D,’’. 
(4) Section 26(a)(1) of such Code is amended 
by striking ‘‘and 30D’’ and inserting ‘‘30D, and 
30E’’. 
(5) Section 30(c)(2) of such Code is amended 
by striking ‘‘and 30D’’ and inserting ‘‘30D, and 
30E’’. 
(6) Section 30B(g)(2)(B)(ii) of such Code is 
amended by striking ‘‘and 30D’’ and inserting 
‘‘30D, and 30E’’. 
(7) Section 30D(c)(2)(B)(ii) of such Code is 
amended by striking ‘‘and 25D’’ and inserting 
‘‘25D, and 30E’’. 
(8) Section 904(i) of such Code is amended by 
striking ‘‘and 30D’’ and inserting ‘‘30D, and 30E’’. 
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(9) Section 1400C(d)(2) of such Code is 
amended by striking ‘‘and 30D’’ and inserting 
‘‘30D, and 30E’’. 
(10) Section 30E(e)(2)(B)(ii) of such Code, as 
added by this section, is amended by striking ‘‘sec-
tions 23 and 25D’’ and inserting ‘‘section 25D’’. 
(11) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(38) to the extent provided in section 
30E(e)(4).’’. 
(12) Section 6501(m) of such Code is amended 
by inserting ‘‘30E(e)(9),’’ after ‘‘30D(e)(4),’’. 
(13) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 30E. Heavy natural gas and heavy hybrid vehicle credit.’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to vehicles acquired after De-
cember 31, 2010. 
(2) APPLICATION OF EGTRRA SUNSET.— 
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(A) The amendment made by subsection 
(c)(2) shall be subject to title IX of the Eco-
nomic Growth and Tax Relief Reconciliation 
Act of 2001 in the same manner as the provi-
sion of such Act to which such amendment re-
lates. 
(B) The amendment made by subsection 
(c)(10) shall be subject to title IX of the Eco-
nomic Growth and Tax Relief Reconciliation 
Act of 2001 in the same manner as the amend-
ments made by section 10909 of the Patient 
Protection and Affordable Care Act. 
SEC. 205. ALTERNATIVE FUEL VEHICLE REFUELING PROP-
ERTY. 
(a) EXTENSION OF CREDIT.—Subsection (g) of sec-
tion 30C of the Internal Revenue Code of 1986 is amended 
by striking ‘‘placed in service’’ and all that follows and 
inserting ‘‘placed in service after December 31, 2014.’’. 
(b) EXTENSION
OF INCREASED CREDIT LIMITA-
TIONS.—Paragraph (6) of section 30C(e) of such Code is 
amended— 
(1) by striking ‘‘January 1, 2011’’ and insert-
ing ‘‘January 1, 2014’’, and 
(2) by striking ‘‘AND 2010’’ in the heading and 
inserting ‘‘THRU 2013’’. 
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(c) EXTENSION OF CREDIT TO REFUELING OF NON- 
HIGHWAY
HYDROGEN
FUEL
CELL
VEHICLES.—Sub-
section (c) of section 30C of such Code is amended by 
striking ‘‘and’’ at the end of paragraph (1), by redesig-
nating paragraph (2) as paragraph (3), and by inserting 
after paragraph (1) the following new paragraph: 
‘‘(2) in the case of a vehicle propelled by a fuel 
cell power plant (as defined in section 48(c)(1)(C)) 
which converts hydrogen into electricity, the term 
‘motor vehicle’ includes any vehicle which is not op-
erated exclusively on rails and the primary purpose 
of which is other than the transport of passengers, 
and’’. 
(d) CLARIFICATION OF DEFINITION OF ELECTRIC 
REFUELING PROPERTY.—Subparagraph (B) of section 
179A(d)(3) of such Code is amended to read as follows: 
‘‘(B) exclusively used for the recharging of 
motor vehicles propelled by electricity (other 
than property used for the generation of elec-
tricity).’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
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SEC. 206. CLEAN ENERGY FUND AND DEFICIT REDUCTION. 
(a) CLEAN ENERGY FUND.—Subchapter A of chap-
ter 98 of such Code is amended by adding at the end the 
following new section: 
‘‘SEC. 9512. CLEAN ENERGY FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Clean Energy Fund’, consisting of 
such amounts as may be appropriated or credited to such 
fund as provided in this section or section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated annually to the Clean Energy Fund for 
each of fiscal years 2011 through 2020 the lesser of— 
‘‘(1) $1,000,000,000 ($1,850,000,000 in the 
case of fiscal years 2011 and 2012), or 
‘‘(2) amounts equivalent (as determined by the 
Secretary) to the increase in Federal revenue with 
respect to such fiscal year by reason of the amend-
ments made by sections 201, 202, and 203 of the 
Building Our Clean Energy Future Now Act of 
2011. 
‘‘(c) EXPENDITURES.—Amounts in the Clean Energy 
Fund shall be available, without the need of further appro-
priation, for purposes of carrying out titles I and III of 
the Building Our Clean Energy Future Now Act of 2011 
(and the amendments made by such titles). Amounts ap-
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propriated to the Clean Energy Fund shall remain avail-
able without fiscal year limitation.’’. 
(b) DEFICIT REDUCTION.—The excess Federal rev-
enue under this title shall be deposited in the Treasury 
and used for Federal budget deficit reduction or, if there 
is no Federal budget deficit, for reducing the Federal debt 
in such manner as the Secretary of the Treasury considers 
appropriate. For purposes of the preceding sentence, the 
term ‘‘excess Federal revenue under this title’’ means so 
much of the increase in Federal revenue by reason of the 
amendments made by sections 201, 202, and 203 of this 
Act as exceeds the sum of the amounts appropriated to 
the Clean Energy Fund under section 9512(b) of the In-
ternal Revenue Code of 1986 (as added by this section) 
plus any reductions in Federal revenue by reason of the 
amendments made by sections 204 and 205 of this Act. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of such Code is amended 
by adding at the end the following new item: 
‘‘Sec. 9512. Clean Energy Fund.’’. 
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TITLE III—ADVANCED AND 
ELECTRIC VEHICLES 
SEC. 301. PLUG-IN HYBRID ELECTRIC VEHICLE AND ELEC-
TRIC 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
HYBRID
ELECTRIC
VEHICLE 
AND ELECTRIC VEHICLE INFRASTRUCTURE.— 
‘‘(A) UTILITY
PLAN
FOR
INFRASTRUC-
TURE.—Each electric utility shall develop a 
plan to support the use of plug-in hybrid elec-
tric vehicles and electric vehicles, including 
heavy-duty hybrid electric vehicles. The plan 
may provide for deployment of electrical charg-
ing stations in public or private locations, in-
cluding street parking, parking garages, park-
ing lots, homes, gas stations, and highway rest 
stops. Any such plan may also include— 
‘‘(i) battery exchange, fast charging 
infrastructure, and other services; 
‘‘(ii) triggers for infrastructure de-
ployment based upon market penetration 
of plug-in hybrid electric vehicles and elec-
tric vehicles; and 
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‘‘(C) COST RECOVERY.—Each State regu-
latory authority (with respect to each electric 
utility for which it has ratemaking authority) 
and each nonregulated electric utility shall con-
sider whether, and to what extent, to allow cost 
recovery for plans and implementation of plans. 
‘‘(D) SMART
GRID
INTEGRATION.—Each 
State regulatory authority (with respect to each 
electric utility for which it has ratemaking au-
thority) and each nonregulated electric utility 
shall— 
‘‘(i) establish any appropriate proto-
cols and standards for integrating plug-in 
hybrid electric vehicles and electric vehicles 
into an electrical distribution system, in-
cluding smart grid systems and devices; 
‘‘(ii) include the ability for each plug- 
in hybrid electric vehicle and electric vehi-
cle to be identified individually and to be 
associated with its owner’s electric utility 
account, regardless of the location that the 
vehicle is plugged in, for purposes of ap-
propriate billing for any electricity required 
to charge the vehicle’s batteries as well as 
any crediting for electricity provided to the 
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electric utility from the vehicle’s batteries; 
and 
‘‘(iii) review the determination made 
in response to paragraph (14) in light of 
this paragraph, including whether time-of- 
use pricing should be employed to enable 
the use of plug-in hybrid electric vehicles 
and electric vehicles to contribute to meet-
ing peak-load 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 1 year after the enact-
ment of this paragraph, each State regulatory au-
thority (with respect to each electric utility for which 
it has ratemaking authority) and each nonregulated 
electric utility shall commence the consideration re-
ferred to in section 111, or set a hearing date for 
consideration, with respect to the standard estab-
lished by paragraph (20) of section 111(d). 
‘‘(B) Not later than 2 years after the date 
of the enactment of this paragraph, each State 
regulatory authority (with respect to each elec-
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tric utility for which it has ratemaking author-
ity), and each nonregulated electric utility, shall 
complete the consideration, and shall make the 
determination, referred to in section 111 with 
respect to the standard established by para-
graph (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 established by para-
graph (20) of section 111(d), the reference contained in 
this subsection to the date of enactment of this Act shall 
be deemed to be a reference to the date of enactment of 
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 inserting ‘‘and 
paragraph (20)’’ before ‘‘of section 111(d)’’. 
SEC. 302. 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 in multiple regions. In car-
rying out the program, the Secretary may provide finan-
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cial assistance described under subsection (d), consistent 
with the goals under subsection (b). The Secretary shall 
select regions based upon applications for assistance re-
ceived 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 or local government 
(or group of State or local governments) may apply to the 
Secretary of Energy for financial assistance in furthering 
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the regional deployment of plug-in electric drive vehicles. 
Such applications may be jointly sponsored by electric util-
ities, 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 of Energy may 
make financial assistance available to any applicant or 
joint sponsor 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 stations for plug-in 
electric drive vehicles, including battery ex-
change, fast charging infrastructure, and other 
services, in public or private locations, including 
street parking, parking garages, parking lots, 
homes, gas stations, and highway rest stops. 
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(B) Smart grid equipment and infrastruc-
ture to facilitate 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 of 
Energy shall determine design elements and requirements 
of the program established pursuant to subsection (a), in-
cluding— 
(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 fuel source; and 
(3) reporting requirements for entities that re-
ceive financial assistance under this section, includ-
ing a comprehensive set of performance data charac-
terizing the results of the deployment program. 
(f) INFORMATION CLEARINGHOUSE.—The Secretary 
of Energy shall, as part of the program established pursu-
ant to subsection (a), collect and make available to the 
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public information regarding the cost, performance, and 
other technical data regarding the deployment and inte-
gration of plug-in electric drive vehicles. 
(g) AUTHORIZATION.—There are authorized to be ap-
propriated to carry out this section, $450,000,000 for 
each of fiscal years 2012 through 2016. 
SEC. 303. ADVANCED VEHICLE TECHNOLOGY. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Advanced Vehicle Technology Act of 2011’’. 
(b) FINDINGS.—Congress finds the following: 
(1) According to the Energy Information Ad-
ministration, the transportation sector accounts for 
approximately 28 percent of the United States pri-
mary energy demand and greenhouse gas emissions, 
and 24 percent of global oil demand. 
(2) The United States transportation sector is 
over 95 percent dependent on petroleum, and over 
60 percent of petroleum demand is met by imported 
supplies. 
(3) United States heavy truck fuel consumption 
will increase 23 percent by 2030, while overall trans-
portation energy use will decline by 1 percent. 
(4) The domestic automotive and commercial 
vehicle manufacturing sectors have increasingly lim-
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ited resources for research, development, and engi-
neering of advanced technologies. 
(5) Vehicle, engine, and component manufactur-
ers are playing a more important role in vehicle 
technology development, and should be better inte-
grated into Federal research efforts. 
(6) Priorities for the Department of Energy’s 
vehicle technologies research have shifted drastically 
in recent years among diesel hybrids, hydrogen fuel 
cell vehicles, and plug-in electric hybrids, with little 
continuity among them. 
(7) The integration of vehicle, communication, 
and infrastructure technologies has great potential 
for efficiency gains through better management of 
the total transportation system. 
(8) The Federal Government should balance its 
role in researching longer-term exploratory concepts 
and developing nearer-term transformational tech-
nologies for vehicles. 
(c) OBJECTIVES.—The objectives of this section are 
to— 
(1) develop United States technologies and 
practices that— 
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(A) improve the fuel efficiency and emis-
sions of all vehicles produced in the United 
States; and 
(B) reduce vehicle reliance on petroleum- 
based fuels; 
(2) support domestic research, development, en-
gineering, demonstration, and commercial applica-
tion and manufacturing of advanced vehicles, en-
gines, and components; 
(3) enable vehicles to move larger volumes of 
goods and more passengers with less energy and 
emissions; 
(4) develop cost-effective advanced technologies 
for wide-scale utilization throughout the passenger, 
commercial, government, and transit vehicle sectors; 
(5) allow for greater consumer choice of vehicle 
technologies and fuels; 
(6) shorten technology development and inte-
gration cycles in the vehicle industry; 
(7) ensure a proper balance and diversity of 
Federal investment in vehicle technologies; and 
(8) strengthen partnerships between Federal 
and State governmental agencies and the private 
and academic sectors. 
(d) DEFINITIONS.—For the purposes of this section: 
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(1) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Energy. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for 
United States research, development, engineering, dem-
onstration, and commercial application of vehicles and re-
lated technologies, including activities authorized under 
this section, $550,000,000 for each of fiscal years 2012 
through 2016. 
(f) VEHICLE RESEARCH AND DEVELOPMENT.— 
(1) PROGRAM.— 
(A) ACTIVITIES.—The Secretary shall con-
duct a program of basic and applied research, 
development, engineering, demonstration, and 
commercial application activities on materials, 
technologies, and processes with the potential to 
substantially reduce or eliminate petroleum use 
and the emissions of the Nation’s passenger 
and commercial vehicles, including activities in 
the areas of— 
(i) hybridization or full electrification 
of vehicle systems; 
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(ii) batteries and other energy storage 
devices; 
(iii) power electronics; 
(iv) vehicle, component, and sub-
system manufacturing technologies and 
processes; 
(v) engine efficiency and combustion 
optimization; 
(vi) waste heat recovery; 
(vii) transmission and drivetrains; 
(viii) hydrogen vehicle technologies, 
including fuel cells and internal combus-
tion engines, and hydrogen infrastructure; 
(ix) compressed natural gas vehicle 
technologies; 
(x) aerodynamics, rolling resistance, 
and accessory power loads of vehicles and 
associated equipment; 
(xi) vehicle weight reduction, including 
lightweighting materials; 
(xii) friction and wear reduction; 
(xiii) engine and component dura-
bility; 
(xiv) innovative propulsion systems; 
(xv) advanced boosting systems; 
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(xvi) hydraulic hybrid technologies; 
(xvii) engine compatibility with and 
optimization for a variety of transportation 
fuels including natural gas and other liquid 
and gaseous fuels; 
(xviii) predictive engineering, mod-
eling, and simulation of vehicle and trans-
portation systems; 
(xix) refueling and charging infra-
structure for alternative fueled and electric 
or plug-in electric hybrid vehicles, includ-
ing the unique challenges facing rural 
areas; 
(xx) gaseous fuels storage systems 
and system integration and optimization; 
(xxi) sensing, communications, and 
actuation technologies for vehicle, electrical 
grid, and infrastructure; 
(xxii) efficient use, substitution, and 
recycling of potentially critical materials in 
vehicles, including rare earth elements and 
precious metals, at risk of supply disrup-
tion; 
(xxiii) aftertreatment technologies; 
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(xxiv) thermal management of battery 
systems; 
(xxv) retrofitting advanced vehicle 
technologies to existing vehicles; 
(xxvi) development of common stand-
ards, specifications, and architectures for 
both transportation and stationary battery 
applications; 
(xxvii) advanced internal combustion 
engines; and 
(xxviii) other research areas as deter-
mined by the Secretary. 
(B) TRANSFORMATIONAL TECHNOLOGY.— 
The Secretary shall ensure that the Department 
continues to support research, development, en-
gineering, demonstration, and commercial appli-
cation activities and maintains competency in 
mid- to long-term transformational vehicle tech-
nologies with potential to achieve deep reduc-
tions in petroleum use and emissions, including 
activities in the areas of— 
(i) hydrogen vehicle technologies, in-
cluding fuel cells, internal combustion en-
gines, hydrogen storage, infrastructure, 
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and activities in hydrogen technology vali-
dation and safety codes and standards; 
(ii) multiple battery chemistries and 
novel energy storage devices, including 
nonchemical 
batteries 
and 
electromechanical storage technologies such 
as hydraulics, flywheels, and compressed 
air storage; 
(iii) communication and connectivity 
among vehicles, infrastructure, and the 
electrical grid; and 
(iv) other innovative technologies re-
search and development, as determined by 
the Secretary. 
(C) INDUSTRY
PARTICIPATION.—To the 
maximum extent practicable, activities under 
this section shall be carried out in partnership 
or collaboration with automotive manufacturers, 
heavy commercial, vocational, and transit vehi-
cle manufacturers, qualified plug-in electric ve-
hicle manufacturers, compressed natural gas ve-
hicle manufacturers, vehicle and engine equip-
ment and component manufacturers, manufac-
turing equipment manufacturers, advanced ve-
hicle service providers, fuel producers and en-
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ergy suppliers, electric utilities, universities, na-
tional laboratories, and independent research 
laboratories. In carrying out this section the 
Secretary shall— 
(i) determine whether a wide range of 
companies that manufacture or assemble 
vehicles or components in the United 
States are represented in ongoing public 
private partnership activities, including 
firms that have not traditionally partici-
pated in federally sponsored research and 
development activities, and where possible, 
partner with such firms that conduct sig-
nificant and relevant research and develop-
ment activities in the United States; 
(ii) leverage the capabilities and re-
sources of, and formalize partnerships 
with, industry-led stakeholder organiza-
tions, nonprofit organizations, industry 
consortia, and trade associations with ex-
pertise in the research and development of, 
and education and outreach activities in, 
advanced automotive and commercial vehi-
cle technologies; 
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(iii) develop more efficient processes 
for transferring research findings and tech-
nologies to industry; 
(iv) give consideration to conversion of 
existing or former vehicle technology devel-
opment or manufacturing facilities for the 
purposes of this section; 
(v) establish and support public-pri-
vate partnerships, dedicated to overcoming 
barriers in commercial application of trans-
formational vehicle technologies, that uti-
lize such industry-led technology develop-
ment facilities of entities with dem-
onstrated expertise in successfully design-
ing and engineering pre-commercial gen-
erations of such transformational tech-
nology; and 
(vi) promote efforts to ensure that 
technology research, development, engi-
neering, and commercial application activi-
ties funded under this section are carried 
out in the United States. 
(D) INTERAGENCY AND INTRAAGENCY CO-
ORDINATION.—To the maximum extent prac-
ticable, the Secretary shall coordinate research, 
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development, demonstration, and commercial 
application activities among— 
(i) relevant programs within the De-
partment, including— 
(I) the Office of Energy Effi-
ciency and Renewable Energy; 
(II) the Office of Science; 
(III) the Office of Electricity De-
livery and Energy Reliability; 
(IV) the Office of Fossil Energy; 
(V) 
the 
Advanced 
Research 
Projects Agency—Energy; and 
(VI) other offices as determined 
by the Secretary; and 
(ii) relevant technology research and 
development programs within other Fed-
eral agencies, as determined by the Sec-
retary. 
(E) COORDINATION
AND
NONDUPLICA-
TION.—In coordinating activities the Secretary 
shall ensure, to the maximum extent prac-
ticable, that activities do not duplicate those of 
other programs within the Department or other 
relevant research agencies. 
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(F) FEDERAL DEMONSTRATION OF TECH-
NOLOGIES.—The Secretary shall make informa-
tion available to procurement programs of Fed-
eral agencies regarding the potential to dem-
onstrate technologies resulting from activities 
funded through programs under this section. 
(G) 
INTERGOVERNMENTAL
COORDINA-
TION.—The Secretary shall seek opportunities 
to leverage resources and support initiatives of 
State and local governments in developing and 
promoting advanced vehicle technologies, manu-
facturing, and infrastructure. 
(H) CRITERIA.—When awarding grants 
under this program, the Secretary shall give 
priority to those technologies (either individ-
ually or as part of a system) that— 
(i) provide the greatest aggregate fuel 
savings based on the reasonable projected 
sales volumes of the technology; and 
(ii) provide the greatest increase in 
United States employment. 
(2) SENSING
AND
COMMUNICATIONS
TECH-
NOLOGIES.—The Secretary, in coordination with the 
relevant research programs of other Federal agen-
cies, shall conduct research, development, engineer-
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ing, and demonstration activities on connectivity of 
vehicle and transportation systems, including on 
sensing, computation, communication, and actuation 
technologies that allow for reduced fuel use, opti-
mized traffic flow, and vehicle electrification, includ-
ing technologies for— 
(A) onboard vehicle, engine, and compo-
nent sensing and actuation; 
(B) vehicle-to-vehicle sensing and commu-
nication; 
(C) vehicle-to-infrastructure sensing and 
communication; and 
(D) vehicle integration with the electrical 
grid. 
(3) MANUFACTURING.—The Secretary shall 
carry out a research, development, engineering, dem-
onstration, and commercial application program of 
advanced vehicle manufacturing technologies and 
practices, including innovative processes to— 
(A) increase the production rate and de-
crease the cost of advanced battery manufac-
turing; 
(B) vary the capability of individual manu-
facturing facilities to accommodate different 
battery chemistries and configurations; 
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(C) reduce waste streams, emissions, and 
energy intensity of vehicle, engine, advanced 
battery and component manufacturing proc-
esses; 
(D) recycle and remanufacture used bat-
teries and other vehicle components for reuse in 
vehicles or stationary applications; 
(E) produce cost-effective lightweight ma-
terials such as advanced metal alloys, polymeric 
composites, and carbon fiber; 
(F) produce lightweight high pressure stor-
age systems for gaseous fuels; 
(G) design and manufacture purpose-built 
hydrogen and fuel cell vehicles and components; 
(H) improve the calendar life and cycle life 
of advanced batteries; and 
(I) produce permanent magnets for ad-
vanced vehicles. 
(4) 
USER
TESTING
FACILITIES.—Activities 
under this section may include construction, expan-
sion, or modification of new and existing vehicle, en-
gine, and component research and testing facilities 
for— 
(A) testing or simulating interoperability 
of a variety of vehicle components and systems; 
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(B) subjecting whole or partial vehicle 
platforms to fully representative duty cycles and 
operating conditions; 
(C) developing and demonstrating a range 
of chemistries and configurations for advanced 
vehicle battery manufacturing; and 
(D) developing and demonstrating test cy-
cles for new and alternative fuels, and other ad-
vanced vehicle technologies. 
(5) REPORTING.— 
(A) 
TECHNOLOGIES
DEVELOPED.—Not 
later than 18 months after the date of enact-
ment of this Act and annually thereafter 
through 2017, the Secretary of Energy shall 
transmit to Congress a report regarding the 
technologies developed as a result of the activi-
ties authorized by this subsection, with a par-
ticular emphasis on whether the technologies 
were successfully adopted for commercial appli-
cations, and if so, whether products relying on 
those technologies are manufactured in the 
United States. 
(B) ADDITIONAL MATTERS.—At the end of 
each fiscal year through 2017 the Secretary 
shall submit to the relevant congressional com-
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mittees of jurisdiction an annual report describ-
ing activities undertaken in the previous year 
under this subsection, active industry partici-
pants, efforts to recruit new participants com-
mitted to design, engineering, and manufac-
turing of advanced vehicle technologies in the 
United States, progress of the program in meet-
ing goals and timelines, and a strategic plan for 
funding of activities across agencies. 
(g) MEDIUM- AND HEAVY-DUTY COMMERCIAL AND 
TRANSIT VEHICLES.— 
(1) PROGRAM.— 
(A) IN GENERAL.—The Secretary, in part-
nership with relevant research and development 
programs in other Federal agencies, and a 
range of appropriate industry stakeholders, 
shall carry out a program of cooperative re-
search, development, demonstration, and com-
mercial application activities on advanced tech-
nologies for medium- to heavy-duty commercial, 
vocational, recreational, and transit vehicles, in-
cluding activities in the areas of— 
(i) engine efficiency and combustion 
research; 
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(ii) on board storage technologies for 
compressed and liquefied natural gas; 
(iii) development and integration of 
engine technologies designed for natural 
gas operation of a variety of vehicle plat-
forms; 
(iv) waste heat recovery and conver-
sion; 
(v) improved aerodynamics and tire 
rolling resistance; 
(vi) energy and space-efficient emis-
sions control systems; 
(vii) heavy hybrid, hybrid hydraulic, 
plug-in hybrid, and electric platforms, and 
energy storage technologies; 
(viii) drivetrain optimization; 
(ix) friction and wear reduction; 
(x) engine idle and parasitic energy 
loss reduction; 
(xi) electrification of accessory loads; 
(xii) onboard sensing and communica-
tions technologies; 
(xiii) advanced lightweighting mate-
rials and vehicle designs; 
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(xiv) increasing load capacity per vehi-
cle; 
(xv) thermal management of battery 
systems; 
(xvi) recharging infrastructure; 
(xvii) compressed natural gas infra-
structure; 
(xviii) advanced internal combustion 
engines; 
(xix) complete vehicle modeling and 
simulation; 
(xx) hydrogen vehicle technologies, in-
cluding fuel cells and internal combustion 
engines, and hydrogen infrastructure; 
(xxi) 
retrofitting 
advanced 
tech-
nologies onto existing truck fleets; and 
(xxii) integration of these and other 
advanced systems onto a single truck and 
trailer platform. 
(B) LEADERSHIP.—The Secretary shall 
appoint a full-time Director to coordinate re-
search, development, demonstration, and com-
mercial application activities in medium- to 
heavy-duty commercial, recreational, and transit 
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vehicle technologies. Responsibilities of the Di-
rector shall be to— 
(i) improve coordination and develop 
consensus between government agency and 
industry partners, and propose new proc-
esses for program management and pri-
ority setting to better align activities and 
budgets among partners; 
(ii) regularly convene workshops, site 
visits, demonstrations, conferences, inves-
tor forums, and other events in which in-
formation and research findings are shared 
among program participants and interested 
stakeholders; 
(iii) develop a budget for the Depart-
ment’s activities with regard to the inter-
agency program, and provide consultation 
and guidance on vehicle technology funding 
priorities across agencies; 
(iv) determine a process for reviewing 
program technical goals, targets, and time-
tables and, where applicable, aided by life- 
cycle impact and cost analysis, propose re-
visions or elimination based on program 
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progress, available funding, and rate of 
technology adoption; 
(v) evaluate ongoing activities of the 
program and recommend project modifica-
tions, including the termination of projects, 
where applicable; 
(vi) recruit new industry participants 
to the interagency program, including 
truck, trailer, and component manufactur-
ers who have not traditionally participated 
in federally sponsored research and tech-
nology development activities; and 
(vii) other responsibilities as deter-
mined by the Secretary, in consultation 
with interagency and industry partners. 
(C) REPORTING.—At the end of each fiscal 
year, the Secretary shall submit to the Congress 
an annual report describing activities under-
taken in the previous year, active industry par-
ticipants, efforts to recruit new participants, 
progress of the program in meeting goals and 
timelines, and a strategic plan for funding of 
activities across agencies. 
(2) CLASS
TRUCK
AND
TRAILER
SYSTEMS 
DEMONSTRATION.—The Secretary shall conduct a 
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competitive grant program to demonstrate the inte-
gration of multiple advanced technologies on Class 8 
truck and trailer platforms with a goal of improving 
overall freight efficiency, as measured in tons and 
volume of freight hauled or other work performance- 
based metrics, by 50 percent, including a combina-
tion of technologies listed in paragraph (1)(A). Ap-
plicant teams may be comprised of truck and trailer 
manufacturers, engine and component manufactur-
ers, fleet customers, university researchers, and 
other applicants as appropriate for the development 
and demonstration of integrated Class 8 truck and 
trailer systems. 
(3) TECHNOLOGY TESTING AND METRICS.—The 
Secretary, in coordination with the partners of the 
interagency research program described in para-
graph (1)(A)— 
(A) shall develop standard testing proce-
dures and technologies for evaluating the per-
formance of advanced heavy vehicle technologies 
under a range of representative duty cycles and 
operating conditions, including for heavy hybrid 
propulsion systems; 
(B) shall evaluate heavy vehicle perform-
ance using work performance-based metrics 
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other than those based on miles per gallon, in-
cluding those based on units of volume and 
weight transported for freight applications, and 
appropriate metrics based on the work per-
formed by nonroad systems; and 
(C) may construct heavy duty truck and 
bus testing facilities. 
(4) NONROAD SYSTEMS PILOT PROGRAM.—The 
Secretary shall undertake a pilot program of re-
search, development, demonstration, and commercial 
applications of technologies to improve total machine 
or system efficiency for nonroad mobile equipment 
including agricultural and construction equipment, 
and shall seek opportunities to transfer relevant re-
search findings and technologies between the 
nonroad and on-highway equipment and vehicle sec-
tors. 
Æ 
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