124 
(II) by inserting ‘‘transportation, 
public transportation, air quality, en-
ergy, and housing, and shall consult, 
as appropriate, with State and local 
agencies and Indian tribes responsible 
for’’ after ‘‘responsible for’’; and 
(III) 
by 
inserting 
‘‘public 
health,’’ after ‘‘conservation,’’; and 
(ii) in paragraph (5)(C)(iii), by insert-
ing ‘‘and through the Web site of the met-
ropolitan planning organization, including 
oil savings and emission reduction targets 
and strategies developed under subsection 
(k)(6), including an analysis of the antici-
pated effects of the targets and strate-
gies,’’ after ‘‘World Wide Web’’; 
(D) in subsection (j)(5)(A), by striking 
‘‘subsection (k)(4)’’ and inserting ‘‘subsection 
(k)(5)’’; and 
(E) in subsection (k)— 
(i) by redesignating paragraphs (1) 
through (5) as paragraphs (2) through (6), 
respectively; 
(ii) by inserting before paragraph (2) 
(as so redesignated) the following: 
VerDate Mar 15 2010 
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125 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) METROPOLITAN
PLANNING
ORGANI-
ZATION.—The term ‘metropolitan planning or-
ganization’ means a metropolitan planning or-
ganization described in clause (i) or (ii) of para-
graph (7)(B). 
‘‘(B) SCENARIO ANALYSIS.—The term ‘sce-
nario analysis’ means the use of a planning tool 
that— 
‘‘(i) develops a range of scenarios rep-
resenting various combinations of transpor-
tation strategies, land use strategies, and 
development patterns, estimates of how 
each of those scenarios would perform in 
meeting the oil savings and greenhouse gas 
emission reduction targets based on anal-
ysis of various forces (such as health, 
transportation, economic or environmental 
factors, and land use) that affect growth; 
‘‘(ii) includes features such as— 
‘‘(I) the involvement of the gen-
eral public, key stakeholders, and 
elected officials on a broad scale; 
‘‘(II) the creation of an oppor-
tunity for those participants to edu-
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126 
cate each other as to growth trends 
and trade-offs, as a means to incor-
porate values and feedback into future 
plans; and 
‘‘(III) the use of continuing ef-
forts and ongoing processes; and 
‘‘(iii) may include key elements such 
as— 
‘‘(I) identification of the consid-
erations shaping planning decisions 
and outcomes; 
‘‘(II) determination of patterns 
of interaction; 
‘‘(III) creation of scenarios for 
discussion purposes; 
‘‘(IV) analysis of implications; 
‘‘(V) evaluation of scenarios; and 
‘‘(VI) use of monitoring indica-
tors.’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(7) TRANSPORTATION
OIL
SAVINGS
AND 
GREENHOUSE GAS REDUCTION EFFORTS.— 
‘‘(A) IN GENERAL.—Within a metropolitan 
planning area serving a transportation manage-
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hsrobinson on DSK69SOYB1PROD with BILLS
127 
ment area, the transportation planning process 
under this section shall address transportation- 
related oil consumption and greenhouse gas 
emissions by including oil savings and emission 
reduction targets and strategies to meet those 
targets. 
‘‘(B) ELIGIBLE ORGANIZATIONS.— 
‘‘(i) MPOS WITHIN TMAS.—All provi-
sions and requirements of this section, in-
cluding the requirements for transpor-
tation oil savings and greenhouse gas re-
duction efforts, shall apply to metropolitan 
planning organizations that also serve as 
transportation management areas. 
‘‘(ii) OTHER
MPOS.—A metropolitan 
planning organization that does not serve 
as a transportation management area— 
‘‘(I) may develop transportation 
oil savings and greenhouse gas emis-
sion reduction targets and strategies 
to meet those targets; and 
‘‘(II) if those targets and strate-
gies are developed, shall be subject to 
all applicable provisions and require-
ments of this section and the Oil 
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hsrobinson on DSK69SOYB1PROD with BILLS
128 
Independence for a Stronger America 
Act of 2010 and amendments made 
by that Act, including requirements of 
the transportation oil savings and 
greenhouse gas reduction efforts. 
‘‘(C) ESTABLISHMENT
OF
TARGETS
AND 
CRITERIA.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the promulgation of the final 
regulations required under section 220 of 
the Clean Air Act, each metropolitan plan-
ning organization that also serves as a 
transportation management area shall de-
velop surface transportation-related oil sav-
ings and greenhouse gas emission reduc-
tion targets, as well as strategies to meet 
those targets, in consultation with State 
air agencies and Indian tribes as part of 
the metropolitan transportation planning 
process under this section. 
‘‘(ii) MULTIPLE
DESIGNATIONS.—If 
more than 1 metropolitan planning organi-
zation has been designated within a metro-
politan area, each metropolitan planning 
organization shall coordinate with other 
VerDate Mar 15 2010 
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129 
metropolitan planning organizations in the 
same metropolitan area to develop the tar-
gets and strategies described in clause (i). 
‘‘(iii) 
MINIMUM
REQUIREMENTS.— 
Each metropolitan transportation plan de-
veloped by a metropolitan planning organi-
zation under clause (i) shall, within the 
plan, demonstrate progress in stabilizing 
and reducing transportation-related oil 
consumption and greenhouse gas emissions 
so as to contribute to the achievement of 
State 
targets 
pursuant 
to 
section 
135(f)(9). 
‘‘(iv) REQUIREMENTS
FOR
TARGETS 
AND STRATEGIES.—The targets and strat-
egies developed as part of a plan under 
this subparagraph shall, at a minimum— 
‘‘(I) be based on the oil consump-
tion and emission and travel demand 
models and related methodologies es-
tablished in the final regulations re-
quired under section 220 of the Clean 
Air Act; 
‘‘(II) inventory all sources of sur-
face transportation-related oil con-
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
130 
sumption and greenhouse gas emis-
sions; 
‘‘(III) apply to those modes of 
surface transportation that are ad-
dressed in the planning process under 
this section; 
‘‘(IV) be integrated and con-
sistent with regional transportation 
plans and transportation improvement 
programs; and 
‘‘(V) be selected through scenario 
analysis, and include, pursuant to the 
requirements of the transportation 
planning process under this section, 
transportation investment and man-
agement strategies that reduce oil 
consumption 
and 
greenhouse 
gas 
emissions from the transportation sec-
tor over the life of the plan, such as— 
‘‘(aa) efforts to increase 
public transportation ridership, 
including through service im-
provements, capacity expansions, 
and access enhancement; 
VerDate Mar 15 2010 
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131 
‘‘(bb) efforts to increase 
walking, bicycling, and other 
forms of nonmotorized transpor-
tation; 
‘‘(cc) implementation of zon-
ing and other land use regula-
tions and plans to support infill, 
transit-oriented development, re-
development, or mixed use devel-
opment; 
‘‘(dd) travel demand man-
agement 
programs 
(including 
carpool, vanpool, or car-share 
projects), transportation pricing 
measures, parking policies, and 
programs to promote telecom-
muting, flexible work schedules, 
and satellite work centers; 
‘‘(ee) highway and transit 
operational improvements, includ-
ing intelligent transportation sys-
tems or other operational im-
provements to reduce long-term 
oil consumption and greenhouse 
gas emissions through reduced 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
132 
congestion and improved system 
management; 
‘‘(ff) intercity passenger rail 
improvements; 
‘‘(gg) high-speed rail im-
provements and programs; 
‘‘(hh) intercity bus improve-
ments; 
‘‘(ii) freight rail improve-
ments; 
‘‘(jj) use of materials or 
equipment associated with the 
construction or maintenance of 
transportation projects that re-
duce oil consumption and green-
house gas emissions; 
‘‘(kk) public facilities for 
supplying electricity to electric or 
plug-in hybrid-electric vehicles; 
‘‘(ll) local street network im-
provements; and 
‘‘(mm) any other effort that 
demonstrates progress in reduc-
ing transportation-related oil con-
sumption and greenhouse gas 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
133 
emissions in each metropolitan 
planning organization under this 
subsection. 
‘‘(v) IDENTIFICATION
OF
PROJECTS 
AND
STRATEGIES.—The plan developed 
under this section shall include a list of 
projects and strategies based on the tar-
gets and strategies identified under clause 
(iv). 
‘‘(D) REVIEW AND APPROVAL.—Not later 
than 180 days after the date of submission of 
a plan under this section— 
‘‘(i) the Secretary and the Adminis-
trator shall review the plan; and 
‘‘(ii) the Secretary shall make a deter-
mination that the plan submitted by a met-
ropolitan planning organization meets the 
requirements of subparagraph (C) if— 
‘‘(I) the Secretary finds that a 
metropolitan 
planning 
organization 
has developed, submitted, and pub-
lished the plan of the metropolitan 
planning organization pursuant to this 
section; 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
134 
‘‘(II) the Secretary, in consulta-
tion with the Administrator, deter-
mines that the plan is likely to achieve 
the targets established by the metro-
politan planning organization under 
this subsection; and 
‘‘(III) the development of the 
plan complies with the minimum re-
quirements established under clauses 
(iii) and (iv) of subparagraph (C). 
‘‘(E) CERTIFICATION.— 
‘‘(i) IN GENERAL.—Only metropolitan 
planning organizations that meet the re-
quirements of subparagraph (C) shall be 
eligible to receive performance grants 
under section 402(c) of the Oil Independ-
ence for a Stronger America Act of 2010. 
‘‘(ii) FAILURE
TO
COMPLY.—Failure 
to comply with the requirements under 
subparagraph (C) shall not impact certifi-
cation standards under paragraph (6).’’. 
(2) TITLE 49.—Section 5303 of title 49, United 
States Code, is amended— 
(A) in subsection (a)(1)— 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
135 
(i) by striking ‘‘minimizing’’ and in-
serting ‘‘reducing’’; and 
(ii) by inserting ‘‘, reliance on oil, im-
pacts on the environment, transportation- 
related greenhouse gas emissions,’’ after 
‘‘consumption’’; 
(B) in subsection (h)(1)(E)— 
(i) by inserting ‘‘sustainability, and 
livability, reduce surface transportation-re-
lated reliance on oil and greenhouse gas 
emissions, adapt to the effects of climate 
change,’’ after ‘‘energy conservation,’’; 
(ii) by inserting ‘‘and public health’’ 
after ‘‘quality of life’’; and 
(iii) by inserting ‘‘, including housing 
and land use patterns’’ after ‘‘development 
patterns’’; 
(C) in subsection (i)— 
(i) in paragraph (4)(A)— 
(I) by striking ‘‘consult, as ap-
propriate,’’ and inserting ‘‘cooperate’’; 
(II) by inserting ‘‘transportation, 
public transportation, air quality, en-
ergy, and housing, and shall consult, 
as appropriate, with State and local 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
136 
agencies and Indian tribes responsible 
for’’ after ‘‘responsible for’’ and 
(III) 
by 
inserting 
‘‘public 
health,’’ after ‘‘conservation,’’; and 
(ii) in paragraph (5)(C)(iii), by insert-
ing ‘‘and through the Web site of the met-
ropolitan planning organization, including 
oil savings and emission reduction targets 
and strategies developed under subsection 
(k)(6), including an analysis of the antici-
pated effects of the targets and strate-
gies,’’ after ‘‘World Wide Web’’; and 
(D) in subsection (k)— 
(i) by redesignating paragraphs (1) 
through (5) as paragraphs (2) through (6), 
respectively; 
(ii) by inserting before paragraph (2) 
(as so redesignated) the following: 
‘‘(1) DEFINITION OF METROPOLITAN PLANNING 
ORGANIZATION.—In this subsection, the term ‘met-
ropolitan planning organization’ means a metropoli-
tan planning organization described in clause (i) or 
(ii) of paragraph (7)(B).’’; and 
(iii) by adding at the end the fol-
lowing: 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
137 
‘‘(7) TRANSPORTATION
OIL
SAVINGS
AND 
GREENHOUSE GAS REDUCTION EFFORTS.— 
‘‘(A) IN GENERAL.—Within a metropolitan 
planning area serving a transportation manage-
ment area, the transportation planning process 
under this section shall address transportation- 
related oil consumption and greenhouse gas 
emissions by including oil savings and emission 
reduction targets and strategies to meet those 
targets. 
‘‘(B) ELIGIBLE ORGANIZATIONS.— 
‘‘(i) IN GENERAL.—The requirements 
of the transportation greenhouse gas re-
duction efforts shall apply only to metro-
politan planning organizations within a 
transportation management area. 
‘‘(ii) DEVELOPMENT
OF
PLAN.—A 
metropolitan planning organization that 
does not serve as a transportation manage-
ment area— 
‘‘(I) may develop transportation 
oil savings and greenhouse gas emis-
sion reduction targets and strategies 
to meet those targets; and 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
138 
‘‘(II) if those targets and strate-
gies are developed, shall be subject to 
all provisions and requirements of this 
section, including requirements of the 
transportation oil savings and green-
house gas reduction efforts. 
‘‘(C) ESTABLISHMENT
OF
TARGETS
AND 
CRITERIA.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the promulgation of the final 
regulations required under section 220 of 
the Clean Air Act, each metropolitan plan-
ning organization shall develop surface 
transportation-related 
oil 
savings 
and 
greenhouse gas emission reduction targets, 
as well as strategies to meet those targets, 
in consultation with State air agencies and 
Indian tribes as part of the metropolitan 
transportation planning process under this 
section. 
‘‘(ii) MULTIPLE
DESIGNATIONS.—If 
more than 1 metropolitan planning organi-
zation has been designated within a metro-
politan area, each metropolitan planning 
organization shall coordinate with other 
VerDate Mar 15 2010 
23:14 Dec 22, 2010
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hsrobinson on DSK69SOYB1PROD with BILLS
139 
metropolitan planning organizations in the 
same metropolitan area to develop the tar-
gets and strategies described in clause (i). 
‘‘(iii) 
MINIMUM
REQUIREMENTS.— 
Each metropolitan transportation plan de-
veloped by a metropolitan planning organi-
zation under clause (i) shall, within the 
plan, demonstrate progress in stabilizing 
and reducing transportation-related oil 
consumption and greenhouse gas emissions 
so as to contribute to the achievement of 
State targets pursuant to section 135(f)(9) 
of title 23. 
‘‘(iv) REQUIREMENTS
FOR
TARGETS 
AND STRATEGIES.—The targets and strat-
egies developed as part of a plan under 
this subparagraph shall, at a minimum— 
‘‘(I) be based on the oil consump-
tion and emission models and related 
methodologies established in the final 
regulations required under section 
220 of the Clean Air Act; 
‘‘(II) inventory all sources of sur-
face transportation-related oil con-
VerDate Mar 15 2010 
23:14 Dec 22, 2010
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hsrobinson on DSK69SOYB1PROD with BILLS
140 
sumption and greenhouse gas emis-
sions; 
‘‘(III) apply to those modes of 
surface transportation that are ad-
dressed in the planning process under 
this section; 
‘‘(IV) be integrated and con-
sistent with regional transportation 
plans and transportation improvement 
programs; and 
‘‘(V) be selected through scenario 
analysis 
(as 
defined 
in 
section 
134(k)(1) of title 23), and include, 
pursuant to the requirements of the 
transportation planning process under 
this section, transportation investment 
and management strategies that re-
duce oil consumption and greenhouse 
gas emissions from the transportation 
sector over the life of the plan, such 
as— 
‘‘(aa) efforts to increase 
public transportation ridership, 
including through service im-
VerDate Mar 15 2010 
23:14 Dec 22, 2010
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hsrobinson on DSK69SOYB1PROD with BILLS
141 
provements, capacity expansions, 
and access enhancement; 
‘‘(bb) efforts to increase 
walking, bicycling, and other 
forms of nonmotorized transpor-
tation; 
‘‘(cc) implementation of zon-
ing and other land use regula-
tions and plans to support infill, 
transit-oriented development, re-
development, or mixed use devel-
opment; 
‘‘(dd) travel demand man-
agement 
programs 
(including 
carpool, vanpool, or car-share 
projects), transportation pricing 
measures, parking policies, and 
programs to promote telecom-
muting, flexible work schedules, 
and satellite work centers; 
‘‘(ee) highway and transit 
operational improvements, includ-
ing intelligent transportation sys-
tems or other operational im-
provements to reduce long-term 
VerDate Mar 15 2010 
23:14 Dec 22, 2010
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hsrobinson on DSK69SOYB1PROD with BILLS
142 
oil consumption and greenhouse 
gas emissions through reduced 
congestion and improved system 
management; 
‘‘(ff) intercity passenger rail 
improvements; 
‘‘(gg) high-speed rail im-
provements and programs; 
‘‘(hh) intercity bus improve-
ments; 
‘‘(ii) freight rail improve-
ments; 
‘‘(jj) use of materials or 
equipment associated with the 
construction or maintenance of 
transportation projects that re-
duce oil consumption and green-
house gas emissions; 
‘‘(kk) public facilities for 
supplying electricity to electric or 
plug-in hybrid-electric vehicles; 
‘‘(ll) local street network im-
provements; and 
‘‘(mm) any other effort that 
demonstrates progress in reduc-
VerDate Mar 15 2010 
23:14 Dec 22, 2010
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hsrobinson on DSK69SOYB1PROD with BILLS
143 
ing transportation-related oil con-
sumption and greenhouse gas 
emissions in each metropolitan 
planning organization under this 
subsection. 
‘‘(v) IDENTIFICATION
OF
PROJECTS 
AND
STRATEGIES.—The plan developed 
under this section shall include a list of 
projects and strategies based on the tar-
gets and strategies identified under clause 
(iv). 
‘‘(D) REVIEW AND APPROVAL.—Not later 
than 180 days after the date of submission of 
a plan under this section— 
‘‘(i) the Secretary and the Adminis-
trator shall review the plan; and 
‘‘(ii) the Secretary shall make a deter-
mination that the plan submitted by a met-
ropolitan planning organization meets the 
requirements of subparagraph (C) if— 
‘‘(I) the Secretary finds that a 
metropolitan 
planning 
organization 
has developed, submitted, and pub-
lished the plan of the metropolitan 
VerDate Mar 15 2010 
23:14 Dec 22, 2010
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hsrobinson on DSK69SOYB1PROD with BILLS
144 
planning organization pursuant to this 
section; 
‘‘(II) the Secretary, in consulta-
tion with the Administrator, deter-
mines that the plan is likely to achieve 
the targets established by the metro-
politan planning organization under 
this subsection; and 
‘‘(III) the development of the 
plan complies with the minimum re-
quirements established under clauses 
(iii) and (iv) of subparagraph (C). 
‘‘(E) CERTIFICATION.— 
‘‘(i) IN GENERAL.—Only metropolitan 
planning organizations that meet the re-
quirements of subparagraph (C) shall be 
eligible to receive performance grants 
under section 402(c) of the Oil Independ-
ence for a Stronger America Act of 2010. 
‘‘(ii) FAILURE
TO
COMPLY.—Failure 
to comply with the requirements under 
subparagraph (C) shall not impact certifi-
cation standards under paragraph (6).’’. 
(c) STATES.— 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
145 
(1) TITLE 23.—Section 135 of title 23, United 
States Code, is amended— 
(A) in subsection (d)(1)(E)— 
(i) by inserting ‘‘sustainability, and 
livability, reduce surface transportation-re-
lated oil consumption and greenhouse gas 
emissions, adapt to the effects of climate 
change,’’ after ‘‘energy conservation,’’; 
(ii) by inserting ‘‘and public health’’ 
after ‘‘quality of life’’; and 
(iii) by inserting ‘‘, including housing 
and land use patterns’’ after ‘‘development 
patterns’’; and 
(B) in subsection (f)— 
(i) in paragraph (2)(D)(i)— 
(I) by striking ‘‘, as appropriate, 
in consultation’’ and inserting ‘‘in co-
operation’’; 
(II) by inserting ‘‘State and local 
agencies and Indian tribes responsible 
for transportation, public transpor-
tation, air quality, energy, and hous-
ing and in consultation with’’ before 
‘‘State, tribal’’; and 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
146 
(III) 
by 
inserting 
‘‘public 
health,’’ after ‘‘conservation,’’; 
(ii) in paragraph (3)(B)(iii), by insert-
ing ‘‘and through the Web site of the 
State, including oil savings and emission 
reduction targets and strategies developed 
under paragraph (9) and an analysis of the 
anticipated effects of the targets and strat-
egies’’ after ‘‘World Wide Web’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(9) TRANSPORTATION
OIL
SAVINGS
AND 
GREENHOUSE GAS REDUCTION EFFORTS.— 
‘‘(A) IN GENERAL.—Within a State, the 
transportation planning process under this sec-
tion, shall address transportation-related green-
house gas emissions by including emission re-
duction targets and strategies to meet those 
targets. 
‘‘(B) ESTABLISHMENT OF TARGETS AND 
CRITERIA.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the promulgation of the final 
regulations required under section 220 of 
the Clean Air Act, each State shall develop 
VerDate Mar 15 2010 
23:14 Dec 22, 2010
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hsrobinson on DSK69SOYB1PROD with BILLS
147 
surface transportation-related oil savings 
and greenhouse gas emission reduction tar-
gets, as well as strategies to meet those 
targets, in consultation with State air 
agencies and Indian tribes as part of the 
transportation planning process under this 
section. 
‘‘(ii) 
MINIMUM
REQUIREMENTS.— 
Each transportation plan developed by a 
State under clause (i) shall, within the 
plan, demonstrate progress in stabilizing 
and reducing transportation-related oil 
consumption and greenhouse gas emissions 
in the State so as to contribute to the 
achievement of national goals pursuant to 
section 220(a)(1) of the Clean Air Act. 
‘‘(iii) REQUIREMENTS
FOR
TARGETS 
AND STRATEGIES.—The targets and strat-
egies developed as part of a plan under 
this subparagraph shall, at a minimum— 
‘‘(I) be based on the oil consump-
tion and emission models and related 
methodologies established in the final 
regulations required under section 
220 of the Clean Air Act; 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
148 
‘‘(II) inventory all sources of sur-
face transportation-related oil con-
sumption and greenhouse gas emis-
sions; 
‘‘(III) apply to those modes of 
surface transportation that are ad-
dressed in the planning process under 
this section; 
‘‘(IV) be integrated and con-
sistent with statewide transportation 
plans and statewide transportation 
improvement programs; and 
‘‘(V) be selected through scenario 
analysis 
(as 
defined 
in 
section 
134(k)(1)), and include, pursuant to 
the requirements of the transportation 
planning process under this section, 
transportation investment and man-
agement strategies that reduce oil 
consumption 
and 
greenhouse 
gas 
emissions from the transportation sec-
tor over the life of the plan, such as— 
‘‘(aa) efforts to increase 
public transportation ridership, 
including through service im-
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149 
provements, capacity expansions, 
and access enhancement; 
‘‘(bb) efforts to increase 
walking, bicycling, and other 
forms of nonmotorized transpor-
tation; 
‘‘(cc) implementation of zon-
ing and other land use regula-
tions and plans to support infill, 
transit-oriented development, re-
development, or mixed use devel-
opment; 
‘‘(dd) travel demand man-
agement 
programs 
(including 
carpool, vanpool, or car-share 
projects), transportation pricing 
measures, parking policies, and 
programs to promote telecom-
muting, flexible work schedules, 
and satellite work centers; 
‘‘(ee) highway and transit 
operational improvements, includ-
ing intelligent transportation sys-
tems or other operational im-
provements to reduce congestion 
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150 
and improve system manage-
ment; 
‘‘(ff) intercity passenger rail 
improvements; 
‘‘(gg) high-speed rail im-
provements and programs; 
‘‘(hh) intercity bus improve-
ments; 
‘‘(ii) freight rail improve-
ments; 
‘‘(jj) use of materials or 
equipment associated with the 
construction or maintenance of 
transportation projects that re-
duce oil consumption and green-
house gas emissions; 
‘‘(kk) public facilities for 
supplying electricity to electric or 
plug-in hybrid-electric vehicles; 
‘‘(ll) local street network im-
provements; and 
‘‘(mm) any other effort that 
demonstrates progress in reduc-
ing transportation-related oil con-
VerDate Mar 15 2010 
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151 
sumption and greenhouse gas 
emissions. 
‘‘(iv) IDENTIFICATION
OF
PROJECTS 
AND
STRATEGIES.—The plan developed 
under this section shall include a list of 
projects and strategies based on the tar-
gets and strategies identified under clause 
(iii). 
‘‘(C) COORDINATION AND CONSULTATION 
WITH
PUBLIC
AGENCIES.—Transportation oil 
savings and greenhouse gas emission targets 
and plans pursuant to this section shall be de-
veloped— 
‘‘(i) in coordination with— 
‘‘(I) all metropolitan planning or-
ganizations covered by this section 
within the State; and 
‘‘(II) transportation and air qual-
ity agencies within the State; 
‘‘(ii) in consultation with representa-
tives of State and local housing, economic 
development, energy, and land use agen-
cies; and 
‘‘(iii) in consultation with Indian 
tribes contiguous to the State. 
VerDate Mar 15 2010 
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‘‘(D) ENFORCEMENT.—Not later than 180 
days after the date of submission of a plan 
under this section— 
‘‘(i) the Secretary and the Adminis-
trator shall review the plan; and 
‘‘(ii) the Secretary shall make a deter-
mination that the plan submitted by a 
State meets the requirements of subpara-
graph (B) if— 
‘‘(I) the Secretary finds that a 
State has developed, submitted, and 
published the plan pursuant to this 
section; 
‘‘(II) the Secretary, in consulta-
tion with the Administrator, deter-
mines that the plan is likely to achieve 
the targets established by the State 
under this subsection; and 
‘‘(III) the development of the 
plan complies with the minimum re-
quirements established under clauses 
(ii) and (iii) of subparagraph (B). 
‘‘(E) PLANNING FINDING.— 
‘‘(i) IN GENERAL.—Only States that 
meet the requirements of subparagraph 
VerDate Mar 15 2010 
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153 
(B) shall be eligible to receive performance 
grants under section 402(c) of the Oil 
Independence for a Stronger America Act 
of 2010. 
‘‘(ii) FAILURE
TO
COMPLY.—Failure 
to comply with the requirements under 
subparagraph (B) shall not impact the 
planning finding under subsection (g)(7).’’. 
(2) TITLE 49.—Section 5304 of title 49, United 
States Code is amended— 
(A) in subsection (d)(1)(E)— 
(i) by inserting ‘‘sustainability, and 
livability, reduce surface transportation-re-
lated oil consumption and greenhouse gas 
emissions, adapt to the effects of climate 
change,’’ after ‘‘energy conservation,’’; 
(ii) by inserting ‘‘and public health’’ 
after ‘‘quality of life’’; and 
(iii) by inserting ‘‘, including housing 
and land use patterns’’ after ‘‘development 
patterns’’; and 
(B) in subsection (f)— 
(i) in paragraph (2)(D)(i)— 
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hsrobinson on DSK69SOYB1PROD with BILLS
154 
(I) by striking ‘‘, as appropriate, 
in consultation’’ and inserting ‘‘in co-
operation’’; 
(II) by inserting ‘‘State and local 
agencies and Indian tribes responsible 
for transportation, public transpor-
tation, air quality, and housing and in 
consultation with’’ before ‘‘State, trib-
al’’; and 
(III) 
by 
inserting 
‘‘public 
health,’’ after ‘‘conservation,’’; 
(ii) in paragraph (3)(B)(iii), by insert-
ing ‘‘and through the Web site of the 
State, including oil savings and emission 
reduction targets and strategies developed 
under paragraph (9) and an analysis of the 
anticipated effects of the targets and strat-
egies’’ after ‘‘World Wide Web’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(9) TRANSPORTATION
OIL
SAVINGS
AND 
GREENHOUSE GAS REDUCTION EFFORTS.— 
‘‘(A) IN GENERAL.—Within a State, the 
transportation planning process under this sec-
tion shall address transportation-related oil con-
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155 
sumption and greenhouse gas emissions by in-
cluding oil savings and emission reduction tar-
gets and strategies to meet those targets. 
‘‘(B) ESTABLISHMENT OF TARGETS AND 
CRITERIA.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the promulgation of the final 
regulations required under section 220 of 
the Clean Air Act, each State shall develop 
surface transportation-related oil savings 
and greenhouse gas emission reduction tar-
gets, as well as strategies to meet those 
targets, in consultation with State air 
agencies and Indian tribes as part of the 
transportation planning process under this 
section. 
‘‘(ii) 
MINIMUM
REQUIREMENTS.— 
Each transportation plan developed by a 
State under clause (i) shall, within the 
plan, demonstrate progress in stabilizing 
and reducing transportation-related oil 
consumption and greenhouse gas emissions 
in the State so as to contribute to the 
achievement of national targets pursuant 
to section 220(a)(1) of the Clean Air Act. 
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156 
‘‘(iii) REQUIREMENTS
FOR
TARGETS 
AND STRATEGIES.—The targets and strat-
egies developed as part of a plan under 
this subparagraph shall, at a minimum— 
‘‘(I) be based on the oil consump-
tion and emission models and related 
methodologies established in the final 
regulations required under section 
220 of the Clean Air Act; 
‘‘(II) inventory all sources of sur-
face transportation-related oil con-
sumption and greenhouse gas emis-
sions; 
‘‘(III) apply to those modes of 
surface transportation that are ad-
dressed in the planning process under 
this section; 
‘‘(IV) be integrated and con-
sistent with statewide transportation 
plans and statewide transportation 
improvement programs; and 
‘‘(V) be selected through scenario 
analysis 
(as 
defined 
in 
section 
134(k)(1) of title 23), and include, 
pursuant to the requirements of the 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
157 
transportation planning process under 
this section, transportation investment 
and management strategies that re-
duce oil consumption and greenhouse 
gas emissions from the transportation 
sector over the life of the plan, such 
as— 
‘‘(aa) efforts to increase 
public transportation ridership, 
including through service im-
provements, capacity expansions, 
and access enhancement; 
‘‘(bb) efforts to increase 
walking, bicycling, and other 
forms of nonmotorized transpor-
tation; 
‘‘(cc) implementation of zon-
ing and other land use regula-
tions and plans to support infill, 
transit-oriented development, re-
development, or mixed use devel-
opment; 
‘‘(dd) travel demand man-
agement 
programs 
(including 
carpool, vanpool, or car-share 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
158 
projects), transportation pricing 
measures, parking policies, and 
programs to promote telecom-
muting, flexible work schedules, 
and satellite work centers; 
‘‘(ee) highway and transit 
operational improvements, includ-
ing intelligent transportation sys-
tems or other operational im-
provements to reduce congestion 
and improve system manage-
ment; 
‘‘(ff) intercity passenger rail 
improvements; 
‘‘(gg) high-speed rail im-
provements and programs; 
‘‘(hh) intercity bus improve-
ments; 
‘‘(ii) freight rail improve-
ments; 
‘‘(jj) use of materials or 
equipment associated with the 
construction or maintenance of 
transportation projects that re-
VerDate Mar 15 2010 
23:14 Dec 22, 2010
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hsrobinson on DSK69SOYB1PROD with BILLS
159 
duce oil consumption and green-
house gas emissions; 
‘‘(kk) public facilities for 
supplying electricity to electric or 
plug-in hybrid-electric vehicles; 
and 
‘‘(ll) any other effort that 
demonstrates progress in reduc-
ing transportation-related oil con-
sumption and greenhouse gas 
emissions. 
‘‘(iv) IDENTIFICATION
OF
PROJECTS 
AND
STRATEGIES.—The plan developed 
under this section shall include a list of 
projects and strategies based on the tar-
gets and strategies identified under clause 
(iii). 
‘‘(C) COORDINATION AND CONSULTATION 
WITH
PUBLIC
AGENCIES.—Transportation oil 
savings and greenhouse gas targets and plans 
pursuant to this section shall be developed— 
‘‘(i) in coordination with— 
‘‘(I) all metropolitan planning or-
ganizations covered by this section 
within the State; and 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
160 
‘‘(II) transportation and air qual-
ity agencies within the State; 
‘‘(ii) in consultation with representa-
tives of State and local housing, economic 
development, energy, and land use agen-
cies; and 
‘‘(iii) in consultation with Indian 
tribes contiguous to the State. 
‘‘(D) ENFORCEMENT.—Not later than 180 
days after the date of submission of a plan 
under this section— 
‘‘(i) the Secretary and the Adminis-
trator shall review the plan; and 
‘‘(ii) the Secretary shall make a deter-
mination that the plan submitted by a 
State meets the requirements of subpara-
graph (B) if— 
‘‘(I) the Secretary finds that a 
State has developed, submitted, and 
published the plan pursuant to this 
section; 
‘‘(II) the Secretary, in consulta-
tion with the Administrator, deter-
mines that the plan is likely to achieve 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
161 
the targets established by the State 
under this subsection; and 
‘‘(III) the development of the 
plan complies with the minimum re-
quirements established under clauses 
(ii) and (iii) of subparagraph (B). 
‘‘(E) PLANNING FINDING.— 
‘‘(i) IN GENERAL.—Only States that 
meet the requirements of subparagraph 
(B) shall be eligible to receive performance 
grants under section 402(c) of the Oil 
Independence for a Stronger America Act 
of 2010. 
‘‘(ii) FAILURE
TO
COMPLY.—Failure 
to comply with the requirements under 
subparagraph (B) shall not impact the 
planning finding under subsection (g)(7).’’. 
(d) LAND USE AUTHORITY.—Nothing in this section 
or an amendment made by this section— 
(1) infringes on the existing authority of local 
governments to plan or control land use; or 
(2) provides or transfers authority over land 
use to any other entity. 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
162 
(e) TABLE OF CONTENTS.—The table of contents of 
title II of the Clean Air Act (42 U.S.C. prec. 7401) is 
amended by adding at the end the following: 
‘‘Sec. 220. Greenhouse gas emission reductions through transportation effi-
ciency.’’. 
SEC. 402. INVESTING IN TRANSPORTATION GREENHOUSE 
GAS EMISSION REDUCTION PROGRAMS. 
(a) IN GENERAL.—The Secretary of Transportation 
(referred to in this section as the ‘‘Secretary’’) shall dis-
tribute funds made available to carry out this section to 
States and metropolitan planning organizations to carry 
out the purposes of this section for each fiscal year, includ-
ing— 
(1) supporting the development and updating of 
transportation greenhouse gas reduction targets and 
strategies; and 
(2) providing financial assistance to implement 
plans approved pursuant to— 
(A) sections 134(k)(6) and 135(f)(9) of 
title 23, United States Code; and 
(B) sections 5303(k)(7) and 5304(f)(9) of 
title 49, United States Code. 
(b) ALLOCATION FOR PLANNING.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall distribute not more than 10 per-
cent of the funds available to carry out this section 
VerDate Mar 15 2010 
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hsrobinson on DSK69SOYB1PROD with BILLS
163 
for a fiscal year for metropolitan planning organiza-
tions to develop and update transportation plans, in-
cluding targets and strategies for greenhouse gas 
emission reduction under— 
(A) sections 134(k)(6) and 135(f)(9) of 
title 23, United States Code; and 
(B) sections 5303(k)(7) and 5304(f)(9) of 
title 49, United States Code. 
(2) ELIGIBLE ORGANIZATIONS.—The Secretary 
shall distribute the funds available under paragraph 
(1) to metropolitan planning organizations (as de-
fined in section 134(k)(1) of title 23, United States 
Code) in the proportion that— 
(A) the population within such a metropoli-
tan planning organization; bears to 
(B) the total population of all such metro-
politan planning organizations. 
(c) PERFORMANCE AWARDS.— 
(1) IN GENERAL.—After distributing funds pur-
suant to subsection (b)(1), and subject to subsection 
(h), the Secretary shall distribute the remainder of 
the funds made available to carry out this section to 
provide support to States and metropolitan planning 
organizations. 
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164 
(2) CRITERIA.—In making distributions under 
this subsection, the Secretary, in consultation with 
the Administrator, shall develop criteria for making 
the distribution, taking into consideration, with re-
spect to areas to be covered by the distributions— 
(A) the quantity of total oil consumption 
and greenhouse gas emissions to be reduced as 
a result of implementation of a plan, within a 
covered area; 
(B) the quantity of total oil consumption 
and greenhouse gas emissions to be reduced per 
capita as a result of the implementation of a 
plan, within the covered area; 
(C) the cost-effectiveness of reducing oil 
consumption and greenhouse gas emissions dur-
ing the life of the plan; 
(D) progress toward achieving oil savings 
and emission reductions target established 
under— 
(i) sections 134(k)(6) and 135(f)(9) of 
title 23, United States Code; and 
(ii) 
sections 
5303(k)(7) 
and 
5304(f)(9) of title 49, United States Code; 
(E) reductions in oil consumption and 
greenhouse gas emissions previously achieved by 
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States and metropolitan planning organizations 
during the 5-year period beginning on the date 
of enactment of this Act; 
(F) the extent to which the plan increases 
transportation options and mobility, particularly 
for low-income individuals, minorities, the elder-
ly, households without motor vehicles, cost-bur-
dened households, and the disabled; 
(G) the extent to which projects funded 
will facilitate development patterns and strate-
gies that reduce oil consumption and green-
house gas emissions; and 
(H) other factors, including innovative ap-
proaches, minimization of costs, and consider-
ation of economic development, revenue genera-
tion, consumer fuel cost-savings, and other eco-
nomic, environmental, and health benefits, as 
the Secretary determines to be appropriate. 
(d) REQUIREMENT FOR REDUCED OIL CONSUMP-
TION AND EMISSIONS.—Funds received under subsection 
(c) may be used only to fund strategies that demonstrate 
reductions in oil consumption and greenhouse gas emis-
sions that are sustainable over the life of the applicable 
transportation plan. 
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166 
(e) COST-SHARING.—The Federal share of the costs 
of a project receiving Federal financial assistance under 
this section shall be 80 percent. 
(f) COMPLIANCE WITH APPLICABLE LAWS.— 
(1) IN GENERAL.—Subject to paragraph (2), a 
project receiving funds under this section shall com-
ply with all applicable Federal laws (including regu-
lations), including applicable requirements of titles 
23 and 49, United States Code. 
(2) ELIGIBILITY.—Project eligibility shall be 
determined in accordance with this section. 
(3) DETERMINATION
OF
APPLICABLE
MODAL 
REQUIREMENTS.—The Secretary shall— 
(A) have the discretion to designate the 
specific modal requirements that shall apply to 
a project; and 
(B) be guided by the predominant modal 
characteristics of the project in the event that 
a project has cross-modal application. 
(g) ADDITIONAL REQUIREMENTS.—As a condition of 
the receipt of funds under this section, the interests of 
public transportation employees affected by the assistance 
shall be protected under arrangements that the Secretary 
of Labor determines— 
(1) to be fair and equitable; and 
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167 
(2) to provide benefits equal to the benefits es-
tablished under section 5333(b) of title 49, United 
States Code. 
(h) MISCELLANEOUS.— 
(1) ROAD-USE
AND
CONGESTION
PRICING 
MEASURES.—All projects supported by funds made 
available under this section shall not be subject to 
section 301 of title 23, United States Code shall be 
eligible to receive amounts collected through road- 
use and congestion pricing measures. 
(2) LIMITATIONS.—The Administrator may not 
approve any transportation plan for a project that 
would be inconsistent with existing design, procure-
ment, and construction guidelines established by the 
Department of Transportation. 
(3) TRANSFERS.—With the approval of the Sec-
retary, recipients of funds under this section may 
enter into agreements providing for the transfer of 
funds or value to private transportation providers or 
ineligible public entities (such as local governments, 
air quality agencies, zoning commissions, special dis-
tricts, and transit agencies) that have statutory re-
sponsibility or authority for actions necessary to im-
plement strategies pursuant to— 
VerDate Mar 15 2010 
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168 
(A) sections 134(k)(6) and 135(f)(9) of 
title 23, United States Code; and 
(B) sections 5303(k)(7) and 5304(f)(9) of 
title 49, United States Code. 
(i) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
SEC. 403. COMMUTER BENEFITS EQUITY. 
(a) UNIFORM DOLLAR LIMITATION FOR ALL TYPES 
OF TRANSPORTATION FRINGE BENEFITS.— 
(1) IN GENERAL.— 
(A) Paragraph (2) of section 132(f) of the 
Internal Revenue Code of 1986 (relating to lim-
itation on exclusion) is amended— 
(i) by striking ‘‘$100’’ in subpara-
graph (A) and inserting ‘‘$230’’, 
(ii) by striking ‘‘$175’’ in subpara-
graph (B) and inserting ‘‘$230’’, and 
(iii) by striking ‘‘and (B)’’ in subpara-
graph (A) and inserting ‘‘, (B), and (D)’’. 
(B) 
Subclause 
(II) 
of 
section 
132(f)(5)(F)(iii) of such Code is amended by 
striking ‘‘, (B),’’. 
(2) 
REPEAL
OF
CONSTRUCTIVE
RECEIPT 
TREATMENT OF BICYCLE COMMUTING REIMBURSE-
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hsrobinson on DSK69SOYB1PROD with BILLS
169 
MENTS.—Paragraph (4) of section 132(f) of such 
Code is amended by striking ‘‘(other than a qualified 
bicycle commuting reimbursement)’’. 
(3) 
INFLATION
ADJUSTMENT
CONFORMING 
AMENDMENTS.—Subparagraph 
(A) 
of 
section 
132(f)(6) of such Code (relating to inflation adjust-
ment) is amended— 
(A) by striking the last sentence, 
(B) by striking ‘‘1999’’ and inserting 
‘‘2009’’, and 
(C) by striking ‘‘1998’’ and inserting 
‘‘2008’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this section shall apply to taxable years beginning 
after December 31, 2008. 
(b) CLARIFICATION OF FEDERAL EMPLOYEE BENE-
FITS.—Section 7905 of title 5, United States Code, is 
amended— 
(1) in subsection (a)— 
(A) in paragraph (2)(C), by inserting 
‘‘and’’ after the semicolon; 
(B) in paragraph (3), by striking ‘‘; and’’ 
and inserting a period; and 
(C) by striking paragraph (4); and 
VerDate Mar 15 2010 
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(2) in subsection (b)(2), by striking subpara-
graph (A) and inserting the following: 
‘‘(A) a qualified transportation fringe as de-
fined in section 132(f)(1) of the Internal Revenue 
Code of 1986;’’. 
Subtitle B—Freight Transportation 
SEC. 411. FREIGHT TRANSPORTATION GOAL AND PLAN. 
(a) FREIGHT TRANSPORTATION OPTIONS GOAL.— 
(1) IN GENERAL.—Subject to paragraph (2), it 
shall be the goal of the United States to shift at 
least 10 percent of freight shipped by truck to rail 
or marine shipping by calendar year 2020. 
(2) INCREASE.—The Secretary of Transpor-
tation may increase the goal established under para-
graph (1) based on the evaluation of national freight 
rail and marine shipping infrastructure and the na-
tional freight transportation options plan developed 
pursuant to subsection (b). 
(b) FREIGHT TRANSPORTATION PLAN.— 
(1) IN GENERAL.—Not later than 18 months 
after the date of enactment of this Act, the Sec-
retary of Transportation shall develop a national 
freight transportation options plan. 
(2) CONTENTS.—The plan developed under 
paragraph (1) shall include— 
VerDate Mar 15 2010 
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(A) an evaluation of national freight rail 
and marine shipping infrastructure; 
(B) an assessment of barriers to increased 
movement of freight by rail and marine ship-
ping; 
(C) an identification of areas or corridors 
in which additional capacity or other infrastruc-
ture is needed to allow increased use of freight 
rail and marine shipping; and 
(D) a strategic plan for investments in ca-
pacity or other measures to encourage increased 
use of freight rail and marine shipping to meet 
the goal established under subsection (a). 
SEC. 412. FREIGHT RAIL CONGESTION GRANTS. 
(a) IN GENERAL.—Section 24105 of title 49, United 
States Code, is amended to read as follows: 
‘‘SEC. 24105. FREIGHT RAIL CONGESTION GRANTS. 
‘‘(a) AUTHORITY.—The Secretary of Transportation 
may make grants to States for financing the capital costs 
of facilities, infrastructure, and equipment for high pri-
ority rail corridor projects necessary to reduce congestion 
in freight rail transportation. 
‘‘(b) ELIGIBLE
PROJECTS.—Projects eligible for 
grants under this section shall be covered by a State rail 
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plan and provide public benefits (as defined by chapter 
27). 
‘‘(c) FEDERAL SHARE.—The Federal share of the 
cost of a project financed under this section shall not ex-
ceed 80 percent. 
‘‘(d) GRANT CONDITIONS.—The Secretary of Trans-
portation shall require each recipient of a grant under this 
section to comply with the applicable grant requirements 
of section 24405. 
‘‘(e) EQUITABLE
DISTRIBUTION.—The Secretary 
shall take such measures as are necessary to ensure an 
equitable geographic distribution of funds and an appro-
priate balance in addressing the needs of urban and rural 
communities. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as are necessary.’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections for chapter 241 of title 49, United States Code, 
is amended by striking the item relating to section 24105 
and inserting the following: 
‘‘Sec. 24105. Freight rail congestion grants.’’. 
SEC. 413. RAIL ELECTRIFICATION STUDY. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study on the benefits and 
costs of electrification of rail corridors, including the role 
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of rail electrification in meeting the national oil independ-
ence goal established under section 101. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Comptroller General shall 
submit to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Rep-
resentatives a report describing the results of the study 
required under subsection (a). 
TITLE V—ALTERNATIVE 
TRANSPORTATION FUELS 
Subtitle A—Advanced Biofuels 
SEC. 501. ALLOWANCE OF INVESTMENT TAX CREDIT FOR 
ADVANCED BIOFUEL FACILITIES. 
(a) IN GENERAL.—Subsection (a) of section 48 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(6) ELECTION
TO
TREAT
QUALIFIED
AD-
VANCED
BIOFUEL
FACILITIES
AS
ENERGY
PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—In the case of any 
qualified property which is part of a qualified 
advanced biofuel facility— 
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‘‘(i) such property shall be treated as 
energy property for purposes of this sec-
tion, and 
‘‘(ii) the energy percentage with re-
spect to such property shall be 30 percent. 
‘‘(B) QUALIFIED
PROPERTY.—For pur-
poses of this paragraph, the term ‘qualified 
property’ means property— 
‘‘(i) which is— 
‘‘(I) tangible personal property, 
or 
‘‘(II) other tangible property (not 
including a building or its structural 
components), but only if such prop-
erty is used as an integral part of the 
qualified investment credit facility, 
and 
‘‘(ii) with respect to which deprecia-
tion (or amortization in lieu of deprecia-
tion) is allowable. 
‘‘(C) QUALIFIED ADVANCED BIOFUEL FA-
CILITY.—For purposes of this paragraph, the 
term ‘qualified advanced biofuel facility’ means 
any facility— 
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‘‘(i) the primary purpose of which is 
the production of advanced biofuels which 
are transportation-grade fuels, 
‘‘(ii) which is originally placed in serv-
ice by the taxpayer after the date of the 
enactment of this paragraph and before 
December 31, 2015, and 
‘‘(iii) with respect to which the tax-
payer makes an election to have this para-
graph apply. 
‘‘(D) ADVANCED
BIOFUELS.—For pur-
poses of subparagraph (C), the term ‘advanced 
biofuel’ means any advanced biofuel (as defined 
in section 211(o)(1)(B) of the Clean Air Act) 
which— 
‘‘(i) has lifecycle greenhouse gas emis-
sions (as defined in section 211(o)(1)(H) 
of the Clean Air Act) at least 50 percent 
less than baseline lifecycle greenhouse gas 
emissions 
(as 
defined 
in 
section 
211(o)(1)(C) of such Act), and 
‘‘(ii) the Secretary of the Treasury de-
termines is produced in commercial quan-
tities of less than 500,000,000 gallons an-
nually. 
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‘‘(E) 
SPECIAL
RULE
FOR
ALGAL 
BIOCRUDE.—For purposes of this paragraph, in 
the case of a facility which produces fuel which 
is 
derived 
from 
any 
cultivated 
algae, 
cyanobacteria, or lemna, and which is sold by 
the taxpayer to another person for refining by 
such other person into an advanced biofuel— 
‘‘(i) such facility shall be treated as a 
qualified advanced biofuel facility, and 
‘‘(ii) except as provided in this sub-
paragraph, such fuel (and any fuel derived 
from such fuel) shall not be taken into ac-
count under this section with respect to 
the taxpayer or any other person. 
‘‘(F) SPECIAL RULE FOR CONVERSION OF 
ETHANOL FUEL PRODUCTION FACILITIES.— 
‘‘(i) IN GENERAL.—In the case of a 
facility which produces ethanol and which 
is retrofitted to produce biobutanol, the 
credit determined under this section shall 
be determined without regard to the cost 
of the portion of the facility which pro-
duced ethanol. 
‘‘(ii) TERMINATION.—Clause (i) shall 
not apply to any property placed in service 
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during any taxable year beginning after 
the first calendar year during which the 
Secretary determines the annual capacity 
of biobutanol facilities placed in service in 
the United States to be 500,000,000 gal-
lons or more. 
‘‘(iii) BIOBUTANOL.—For purposes of 
this paragraph, the term ‘biobutanol’ 
means butanol produced from renewable 
biomass (as defined in section 211(o)(1)(I) 
of the Clean Air Act). 
‘‘(G) COORDINATION
WITH
OTHER
FUEL 
PROVISIONS.—No credit shall be allowed under 
section 40, 40A, or 6426 for any taxable year 
with respect to any qualified advanced biofuel 
facility or any fuel produced by such facility.’’. 
(b) COORDINATION WITH SPECIAL ALLOWANCE FOR 
CELLULOSIC BIOFUEL PLANT PROPERTY.—Paragraph 
(8) of section 168(l) of the Internal Revenue Code of 1986 
is amended by inserting ‘‘or under section 48(a)(6)’’ be-
fore the period at the end. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
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SEC. 502. GRANTS FOR ADVANCED BIOFUEL FACILITY 
PROPERTY. 
Section 1603 of division B of the American Recovery 
and Reinvestment Act of 2009 is amended by adding at 
the end the following new subsection: 
‘‘(k) 
APPLICATION
TO
QUALIFIED
ADVANCED 
BIOFUEL FACILITY PROPERTY.— 
‘‘(1) IN
GENERAL.—In the case of qualified 
property (as defined in section 48(a)(6)(B) of the 
Internal Revenue Code of 1986) which is part of a 
qualified advanced biofuel facility (within the mean-
ing of section 48(a)(6)(C) of such Code)— 
‘‘(A) such qualified property shall be treat-
ed as specified energy property for purposes of 
this section, and 
‘‘(B) in applying this section to such quali-
fied property— 
‘‘(i) subsection (a) shall be applied— 
‘‘(I) by substituting ‘the 2-year 
period beginning on the date of the 
enactment of this subsection’ for 
‘2009 or 2010’ each place it appears, 
and 
‘‘(II) by substituting ‘after such 
2-year period’ for ‘2010’ in paragraph 
(2) thereof, 
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‘‘(ii) the applicable percentage with 
respect to such qualified property shall be 
30 percent, 
‘‘(iii) the credit termination date with 
respect to such qualified property shall be 
January 1, 2016, and 
‘‘(iv) subsection (j) shall be applied by 
substituting ‘the date which is 9-months 
after the 2-year period described in sub-
section (k)(2)(A)(i)’ for ‘October 1, 2011’. 
‘‘(2) COORDINATION WITH OTHER FUELS CRED-
IT.—In the case of any qualified advanced biofuel 
facility which is treated as specified energy property 
by reason of paragraph (1), except as provided in 
paragraph (1), the fuel produced by such facility 
(and any fuel derived from such fuel) shall not be 
taken into account with respect to the taxpayer or 
any other person for purposes of determining any 
credit under section 40, 40A, or 6426 of the Inter-
nal Revenue Code of 1986.’’. 
SEC. 503. INCLUSION OF ALGAE-BASED BIOFUEL IN DEFINI-
TION OF CELLULOSIC BIOFUEL. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
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‘‘(I) is derived solely from quali-
fied feedstocks, and’’. 
(b) QUALIFIED FEEDSTOCK; SPECIAL RULES FOR 
ALGAE.—Paragraph (6) of section 40(b) of such Code is 
amended by redesignating subparagraphs (F), (G), and 
(H) as subparagraphs (H), (I), and (J), respectively, and 
by inserting after subparagraph (E) the following new 
subparagraphs: 
‘‘(F) QUALIFIED
FEEDSTOCK.—For pur-
poses of this subparagraph— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied feedstock’ means— 
‘‘(I) 
any 
lignocellulosic 
or 
hemicellulosic matter that is available 
on a renewable or recurring basis, and 
‘‘(II) any algal organism. 
‘‘(ii) ALGAL
ORGANISM.—The term 
‘algal organism’ means a single- or multi- 
cellular organism which is primarily aquat-
ic and classified as a non-vascular plant, 
including 
microalgae, 
blue-green 
algae 
(cyanobacteria), 
and 
macroalgae 
(sea-
weeds). 
‘‘(G) 
SPECIAL
RULE
FOR
ALGAL 
BIOCRUDE.—For purposes of this paragraph, in 
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the case of a taxpayer who produces fuel which 
is 
derived 
from 
any 
cultivated 
algae, 
cyanobacteria, or lemna, and which is sold by 
the taxpayer to another person for refining by 
such other person into an advanced biofuel (as 
defined in section 48(a)(6)(C))— 
‘‘(i) such fuel shall be treated as a 
qualified advanced biofuel facility, 
‘‘(ii) the production of such fuel shall 
be treated as meeting the requirements of 
subparagraph (F)(i), and 
‘‘(iii) except as provided in this sub-
paragraph, such fuel (and any fuel derived 
from such fuel) shall not be taken into ac-
count under this section or section 48 with 
respect to the taxpayer or any other per-
son.’’. 
(c) ALGAE TREATED AS A QUALIFIED FEEDSTOCK 
FOR PURPOSES OF BONUS DEPRECIATION FOR BIOFUEL 
PLANT PROPERTY.— 
(1) IN GENERAL.—Subparagraph (A) of section 
168(l)(2) is amended by striking ‘‘solely to produce 
cellulosic biofuel’’ and inserting ‘‘primarily to 
produce next generation biofuel (as defined in sec-
tion 40(b)(6)(E)’’. 
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(2) CONFORMING
AMENDMENTS.—Subsection 
(l) of section 168 is amended— 
(A) by striking ‘‘cellulosic biofuel’’ each 
place it appears in the text thereof and insert-
ing ‘‘next generation biofuel’’, 
(B) by striking paragraph (3) and redesig-
nating paragraphs (4) through (8) as para-
graphs (3) through (7), respectively, 
(C) by striking ‘‘CELLULOSIC’’ in the 
heading of such subsection and inserting 
‘‘NEXT GENERATION’’, and 
(D) by striking ‘‘CELLULOSIC’’ in the head-
ing of paragraph (2) and inserting ‘‘NEXT GEN-
ERATION’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 40, as amended by subsection (b), 
is amended— 
(A) by striking ‘‘cellulosic biofuel’’ each 
place it appears in the text thereof and insert-
ing ‘‘next generation biofuel’’, 
(B) by striking ‘‘CELLULOSIC’’ in the 
headings of subsections (b)(6), (b)(6)(E), and 
(d)(3)(D) and inserting ‘‘NEXT GENERATION’’, 
and 
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(C) by striking ‘‘CELLULOSIC’’ in the head-
ings 
of 
subsections 
(b)(6)(C), 
(b)(6)(D), 
(b)(6)(H), (d)(6), and (e)(3) and inserting 
‘‘NEXT GENERATION’’. 
(2) Clause (ii) of section 40(b)(6)(E) is amend-
ed by striking ‘‘Such term shall not’’ and inserting 
‘‘The term ‘next generation biofuel’ shall not’’. 
(3) Paragraph (1) of section 4101(a) is amend-
ed by striking ‘‘cellulosic biofuel’’ and inserting 
‘‘next generation biofuel’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to fuels sold or used after the date of the 
enactment of this Act. 
(2) APPLICATION TO BONUS DEPRECIATION.— 
The amendments made by subsection (c) shall apply 
to property placed in service after the date of the en-
actment of this Act. 
SEC. 504. EXTENSION OF NEXT GENERATION BIOFUEL PRO-
DUCER CREDIT. 
Subparagraph (J) of section 40(b)(6) of the Internal 
Revenue Code of 1986, as redesignated by section 503(b), 
is amended by striking ‘‘January 1, 2013’’ and inserting 
‘‘January 1, 2016’’. 
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SEC. 505. MODIFICATION OF SPECIAL ALLOWANCE FOR 
NEXT GENERATION BIOFUEL PLANT PROP-
ERTY. 
(a) IN GENERAL.—Paragraph (2)(D) of section 
168(l) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 
2016’’. 
(b) CLARIFICATION OF DEFINITION OF QUALIFIED 
NEXT GENERATION BIOFUEL PLANT PROPERTY.—Sub-
paragraph (A) of section 168(l)(2) of such Code is amend-
ed by striking ‘‘solely’’ and inserting ‘‘primarily’’. 
(c) CONFORMING AMENDMENT.—Paragraph (5)(B) 
of section 168(l) of such Code, as redesignated by section 
503(b)(3), is amended by striking ‘‘January 1, 2013’’ and 
inserting ‘‘January 1, 2016’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 506. EXTENSION OF INCENTIVES FOR BIODIESEL AND 
RENEWABLE DIESEL. 
(a) CREDITS FOR BIODIESEL AND RENEWABLE DIE-
SEL USED AS FUEL.—Subsection (g) of section 40A of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘December 31, 2009’’ and inserting ‘‘December 31, 
2015’’. 
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(b) EXCISE TAX CREDITS AND OUTLAY PAYMENTS 
FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIX-
TURES.— 
(1) Paragraph (6) of section 6426(c) of such 
Code is amended by striking ‘‘December 31, 2009’’ 
and inserting ‘‘December 31, 2015’’. 
(2) Subparagraph (B) of section 6427(e)(6) of 
such Code is amended by striking ‘‘December 31, 
2009’’ and inserting ‘‘December 31, 2015’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2009. 
SEC. 507. EXTENSION OF ALCOHOL FUELS TAX CREDITS. 
(a) IN GENERAL.—Paragraph (1) of section 40(e) of 
the Internal Revenue Code of 1986 is amended— 
(1) in subparagraph (A), by striking ‘‘December 
31, 2010’’ and inserting ‘‘December 31, 2015’’, and 
(2) in subparagraph (B), by striking ‘‘January 
1, 2011’’ and inserting ‘‘January 1, 2016’’. 
(b) RULE FOR CREDIT FOR ETHANOL BLENDERS.— 
Paragraph (1) of section 40(h) such Code is amended by 
adding at the end the following flush sentence: 
‘‘In the case of any other taxable year, such sub-
sections shall not apply.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to alcohol produced, sold, or used 
after December 31, 2010. 
SEC. 508. EXCISE TAX CREDITS AND OUTLAY PAYMENTS 
FOR ALTERNATIVE FUEL AND ALTERNATIVE 
FUEL MIXTURES. 
(a) ALTERNATIVE FUEL CREDIT.—Paragraph (5) of 
section 6426(d) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘after December 31, 2009’’ and all 
that follows and inserting the following: ‘‘after— 
‘‘(A) September 30, 2014, in the case of 
liquefied hydrogen, 
‘‘(B) December 31, 2015, in the case of 
fuels described in subparagraph (A), (C), (F), 
or (G) of paragraph (2), and 
‘‘(C) December 31, 2009, in any other 
case.’’. 
(b) ALTERNATIVE FUEL MIXTURE CREDIT.—Para-
graph (3) of section 6426(e) of such Code is amended by 
striking ‘‘after December 31, 2009’’ and all that follows 
and inserting the following: ‘‘after— 
‘‘(A) September 30, 2014, in the case of 
liquefied hydrogen, 
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‘‘(B) December 31, 2015, in the case of 
fuels described in subparagraph (A), (C), (F), 
or (G) of subsection (d)(2), and 
‘‘(C) December 31, 2009, in any other 
case.’’. 
(c) PAYMENT AUTHORITY.— 
(1) IN
GENERAL.—Paragraph (6) of section 
6427(e) of such Code is amended by striking ‘‘and’’ 
at the end of subparagraph (C), by striking the pe-
riod at the end of subparagraph (D) and inserting 
‘‘, and’’, and by adding at the end the following new 
subparagraph: 
‘‘(E) any alternative fuel or alternative fuel 
mixture (as so defined) involving fuel described 
in subparagraph (A), (C), (F), or (G) of section 
6426(d)(2) sold or used after December 31, 
2010.’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(C) of section 6427(e)(6) of such Code is amended 
by inserting ‘‘or (E)’’ after ‘‘subparagraph (D)’’. 
(d) EXCLUSION OF BLACK LIQUOR FROM CREDIT 
ELIGIBILITY.—The last sentence of section 6426(d)(2) of 
such Code is amended by striking ‘‘or biodiesel’’ and in-
serting ‘‘biodiesel, or any fuel (including lignin, wood resi-
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dues, or spent pulping liquors) derived from the produc-
tion of paper or pulp’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2010. 
Subtitle B—Powering Vehicles 
With Natural Gas 
SEC. 511. CREDIT FOR QUALIFIED NATURAL GAS MOTOR 
VEHICLES. 
(a) IN GENERAL.— 
(1) IN
GENERAL.—Subsection (e) of section 
30B of the Internal Revenue Code of 1986 (relating 
to new qualified alternative fuel motor vehicle credit) 
is amended by adding at the end the following new 
paragraphs: 
‘‘(6) SPECIAL RULES FOR QUALIFIED NATURAL 
GAS MOTOR VEHICLES.— 
‘‘(A) IN GENERAL.—In the case of a quali-
fied natural gas motor vehicle— 
‘‘(i) such motor vehicle shall be treat-
ed as a new qualified alternative fuel motor 
vehicle under this subsection, 
‘‘(ii) paragraph (3) shall be applied by 
multiplying each of the dollar amounts 
contained in such paragraph by 2, and 
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‘‘(iii) the credit allowed under this 
subsection shall be transferrable as pro-
vided in subparagraph (B). 
‘‘(B) TRANSFERABILITY OF CREDIT.— 
‘‘(i) IN
GENERAL.—A taxpayer who 
places in service qualified natural gas 
motor vehicle may transfer the credit al-
lowed under this subsection with respect to 
such vehicle through an assignment to the 
seller, the manufacturer, or the lessee of 
such vehicle. Such transfer may be revoked 
only with the consent of the Secretary. 
‘‘(ii) REGULATIONS.—The Secretary 
shall prescribe such regulations as nec-
essary to ensure that any credit trans-
ferred under clause (i) is claimed once and 
not reassigned by such other person. 
‘‘(7) QUALIFIED NATURAL GAS MOTOR VEHI-
CLE.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘qualified natural gas 
motor vehicle’ means any motor vehicle— 
‘‘(i) which is described in subpara-
graph (B) or (C), 
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‘‘(ii) the original use of which com-
mences with the taxpayer, 
‘‘(iii) which is acquired by the tax-
payer for use or lease, but not for resale, 
and 
‘‘(iv) which is placed in service before 
the date which is 10 years after the date 
of the enactment of this paragraph. 
‘‘(B) HEAVY-DUTY
VEHICLES.—A motor 
vehicle is described in this subparagraph if such 
motor vehicle— 
‘‘(i) is made by a manufacturer, 
‘‘(ii) has a gross vehicle weight rating 
of more than 8,500 pounds, and 
‘‘(iii) is— 
‘‘(I) only capable of operating on 
compressed or liquified natural gas, or 
‘‘(II) capable of operating for 
more than 175 miles on 1 fueling of 
compressed or liquified natural gas 
and is capable of operating on gaso-
line or diesel fuel. 
‘‘(C) CONVERTED OR REPOWERED VEHI-
CLES.— 
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‘‘(i) IN GENERAL.—A motor vehicle is 
described in this subparagraph if such 
motor vehicle is a motor vehicle described 
in clause (ii) or clause (iii) which is con-
verted or repowered so that it— 
‘‘(I) is only capable of operating 
on compressed or liquified natural 
gas, or 
‘‘(II) is capable of operating for 
more than 175 miles on 1 fueling of 
compressed or liquified natural gas 
and is capable of operating on gaso-
line or diesel fuel, is capable of oper-
ating on compressed or liquefied nat-
ural gas. 
‘‘(ii) 
HEAVY-DUTY
VEHICLES.—A 
motor vehicle is described in this clause if 
such motor vehicle— 
‘‘(I) has a gross vehicle weight 
rating of more than 8,500 pounds, 
and 
‘‘(II) was not capable of oper-
ating on compressed or liquified nat-
ural gas before the date of such con-
version or repower. 
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‘‘(iii) SPECIAL RULES.— 
‘‘(I) TREATMENT AS NEW.—For 
purposes of this subsection, the origi-
nal use of any motor vehicle described 
in clause (i) shall be treated as begin-
ning with the first use after the date 
of the conversion or repower. 
‘‘(II) 
RULE
OF
CONSTRUC-
TION.—In the case of a used vehicle 
which is converted or repowered, noth-
ing 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 re-
spect to such vehicle. 
‘‘(D) SPECIAL
RULE.—For purposes of 
this subsection, in the case of a motor vehicle 
which— 
‘‘(i) is described in subparagraph (C) 
or (D)(iii), 
‘‘(ii) is placed in service after the date 
of the enactment of this paragraph, and 
‘‘(iii) is placed in service by a tax-
payer in a taxable year prior to the taxable 
year in which such taxpayer places in serv-
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ice the third such motor vehicle described 
in subparagraph (C) or (D)(iii) after such 
date of enactment, 
such motor vehicle shall be treated as placed in 
service in the taxable year in which such third 
motor vehicle is placed in service.’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(B) of section 30B(e)(5) of such Code is amended 
by inserting ‘‘(other than a qualified natural gas 
motor vehicle)’’ after ‘‘paragraph (3)’’. 
(b) MIXED-FUEL VEHICLES.—Subparagraph (C) of 
section 30B(e)(5) of the Internal Revenue Code of 1986 
is amended by striking ‘‘a mixed-fuel vehicle which oper-
ates using’’ and all that follows and inserting the fol-
lowing: ‘‘a mixed-fuel vehicle which— 
‘‘(i) in the case of such a vehicle 
which is capable of operating on com-
pressed or liquified natural gas, operates 
using at least 65 percent compressed or 
liquified natural gas and not more than 35 
percent petroleum-based fuel, and 
‘‘(ii) in the case of any other such ve-
hicle, operates using at least 75 percent al-
ternative fuel and not more than 25 per-
cent petroleum-based fuel.’’. 
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194 
(c) ALTERNATIVE MINIMUM TAX TREATMENT.— 
Subparagraph (B) of section 38(c)(4) of the Internal Rev-
enue Code of 1986 is amended by redesignating clauses 
(i) through (ix) as clauses (ii) through (x), respectively, 
and by inserting after before clause (ii) (as so redesig-
nated) the following new clause: 
‘‘(i) the amount of the credit determined under sec-
tion 30B which is attributable to a qualified natural gas 
motor vehicle (as defined in section 30B(e)(7)),’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 512. NATURAL GAS VEHICLE BONDS. 
(a) IN GENERAL.—Subpart I of part IV of sub-
chapter A of chapter 1 (relating to qualified tax credit 
bonds) of the Internal Revenue Code of 1986, as amended 
by section 306, is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 54H. NATURAL GAS VEHICLE BONDS. 
‘‘(a) NATURAL GAS VEHICLE BOND.—For purposes 
of this subpart, the term ‘natural gas vehicle bond’ means 
any bond issued as part of an issue if— 
‘‘(1) 100 percent of the available project pro-
ceeds of such issue are to be used for capital expend-
itures incurred by a governmental body for 1 or 
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more qualified natural gas vehicle projects placed in 
service by such governmental body primarily for gov-
ernmental or public use, 
‘‘(2) the bond is issued by a governmental body, 
‘‘(3) the issuer designates such bond for pur-
poses of this section, and 
‘‘(4) in lieu of the requirements of section 
54A(d)(2), the issue meets the requirements of sub-
section (c). 
‘‘(b) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.— 
‘‘(1) IN
GENERAL.—The maximum aggregate 
face amount of bonds which may be designated 
under subsection (a) by any issuer shall not exceed 
the limitation amount allocated under this sub-
section to such issuer. 
‘‘(2) NATIONAL
LIMITATION
ON
AMOUNT
OF 
BONDS DESIGNATED.—There is a national natural 
gas vehicle bond limitation of $3,000,000,000. 
‘‘(3) ALLOCATION
BY
SECRETARY.—The Sec-
retary shall allocate the amount described in para-
graph (2) among qualified natural gas vehicle 
projects in such manner as the Secretary determines 
appropriate. 
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196 
‘‘(c) SPECIAL
RULES
RELATING
TO
EXPENDI-
TURES.— 
‘‘(1) IN GENERAL.—An issue shall be treated as 
meeting the requirements of this subsection if, as of 
the date of issuance, the issuer reasonably expects— 
‘‘(A) 100 percent or more of the available 
project proceeds of such issue are to be spent 
for 1 or more qualified natural gas vehicle 
projects within the 5-year period beginning on 
the date of issuance of the natural gas vehicle 
bond, 
‘‘(B) a binding commitment with a third 
party to spend at least 10 percent of such avail-
able project proceeds will be incurred within the 
6-month period beginning on the date of 
issuance of the natural gas vehicle bond, and 
‘‘(C) such projects will be completed with 
due diligence and such available project pro-
ceeds will be spent with due diligence. 
‘‘(2) EXTENSION
OF
PERIOD.—Upon submis-
sion of a request prior to the expiration of the period 
described in paragraph (1)(A), the Secretary may 
extend such period if the issuer establishes that the 
failure to satisfy the 5-year requirement is due to 
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reasonable cause and the related projects will con-
tinue to proceed with due diligence. 
‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT 
OF BOND PROCEEDS WITHIN 5 YEARS.—To the ex-
tent that less than 100 percent of the available 
project proceeds of such issue are expended by the 
close of the 5-year period beginning on the date of 
issuance (or if an extension has been obtained under 
paragraph (2), by the close of the extended period), 
the issuer shall redeem all of the nonqualified bonds 
within 90 days after the end of such period. For 
purposes of this paragraph, the amount of the non-
qualified bonds required to be redeemed shall be de-
termined in the same manner as under section 142. 
‘‘(d) GOVERNMENTAL BODY.—For purposes of this 
section, the term ‘governmental body’ means any State, 
territory, possession of the United States, the District of 
Columbia, Indian tribal government, and any political sub-
division thereof. 
‘‘(e) 
QUALIFIED
NATURAL
GAS
VEHICLE 
PROJECT.—For purposes of this subpart, the term ‘quali-
fied natural gas vehicle project’ means— 
‘‘(1) 1 or more qualified natural gas vehicles 
(as defined in section 30B(e)(7)), or 
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‘‘(2) 1 or more qualified alternative fuel vehicle 
refueling properties which are used to store and or 
dispense compressed or liquefied natural gas (within 
the meaning of section 30C(c)). 
‘‘(f) TERMINATION.—This section shall not apply 
with respect to any bond issued after December 31, 
2019.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 54A(d) of the In-
ternal Revenue Code of 1986, as amended by section 
306, is amended by striking ‘‘or’’ at the end of sub-
paragraph (E), by inserting ‘‘or’’ at the end of sub-
paragraph (F), and by inserting after subparagraph 
(F) the following new subparagraph: 
‘‘(G) a natural gas vehicle bond,’’. 
(2) Subparagraph (C) of section 54A(d)(2) of 
such Code, as amended by section 306, is amended 
by striking ‘‘and’’ at the end of clause (v), by strik-
ing the period at the end of clause (vi) and inserting 
‘‘, and’’, and by adding at the end the following new 
clause: 
‘‘(vii) in the case of a natural gas ve-
hicle bond, a purpose specified in section 
54H(a)(1).’’. 
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199 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart I of part IV of subchapter A of chapter 1 of 
such Code, as amended by section 306, is amended by add-
ing at the end the following new item: 
‘‘Sec. 54H. Natural gas vehicle bonds.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
SEC. 513. INCENTIVES FOR MANUFACTURING FACILITIES 
PRODUCING VEHICLES FUELED BY COM-
PRESSED OR LIQUIFIED NATURAL GAS. 
(a) DEDUCTION
FOR
MANUFACTURING
FACILI-
TIES.— 
(1) IN GENERAL.—Part VI of subchapter B of 
chapter 1 of the Internal Revenue Code of 1986 (re-
lating to itemized deductions for individuals and cor-
porations) is amended by inserting after section 
179E the following new section: 
‘‘SEC. 179F. EXPENSING FOR MANUFACTURING FACILITIES 
PRODUCING VEHICLES FUELED BY COM-
PRESSED NATURAL GAS OR LIQUIFIED NAT-
URAL GAS. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the applicable percentage of the cost of any 
qualified natural gas vehicle manufacturing facility prop-
erty as an expense which is not chargeable to a capital 
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account. Any cost so treated shall be allowed as a deduc-
tion for the taxable year in which the qualified manufac-
turing facility property is placed in service. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a), the applicable percentage is— 
‘‘(1) 100 percent, in the case of qualified nat-
ural gas vehicle manufacturing facility property 
which is placed in service before January 1, 2015, 
and 
‘‘(2) 50 percent, in the case of qualified natural 
gas vehicle manufacturing facility property which is 
placed in service after December 31, 2014, and be-
fore January 1, 2020. 
‘‘(c) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this sec-
tion for any taxable year shall be made on the tax-
payer’s return of the tax imposed by this chapter for 
the taxable year. Such election shall be made in such 
manner as the Secretary may by regulations pre-
scribe. 
‘‘(2) ELECTION
IRREVOCABLE.—Any election 
made under this section may not be revoked except 
with the consent of the Secretary. 
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which is designed specifically for use in such a 
qualified natural gas vehicle. 
‘‘(e) SPECIAL RULE FOR DUAL USE PROPERTY.— 
‘‘(1) IN GENERAL.—In the case of any qualified 
natural gas vehicle manufacturing facility property 
which is used to produce both property described in 
clauses (i) and (ii) of subsection (d)(2)(A) and prop-
erty which is not so described, the amount of costs 
taken into account under subsection (a) shall be re-
duced by an amount equal to— 
‘‘(A) the total amount of such costs (deter-
mined before the application of this subsection), 
multiplied by 
‘‘(B) the percentage of property expected 
to be produced which is not so described. 
‘‘(2) REGULATIONS.—The Secretary shall pre-
scribe such regulations as are necessary to carry out 
the purpose of this subsection.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions of part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 179E the 
following new item: 
‘‘Sec. 179F. Expensing for manufacturing facilities producing vehicles fueled by 
compressed natural gas or liquified natural gas.’’. 
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(b) REFUND OF CREDIT FOR PRIOR YEAR MINIMUM 
TAX LIABILITY.—Section 53 of the Internal Revenue 
Code of 1986 (relating to credit for prior year minimum 
tax liability) is amended by adding at the end the following 
new subsection: 
‘‘(g) ELECTION TO TREAT AMOUNTS ATTRIBUTABLE 
TO QUALIFIED MANUFACTURING FACILITY.— 
‘‘(1) IN GENERAL.—In the case of an eligible 
taxpayer, the amount determined under subsection 
(c) for the taxable year (after the application of sub-
section (e)) shall be increased by an amount equal 
to the applicable percentage of any qualified natural 
gas vehicle manufacturing facility property which is 
placed in service during the taxable year. 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the applicable percentage is— 
‘‘(A) 35 percent, in the case of qualified 
natural gas vehicle manufacturing facility prop-
erty which is placed in service before January 
1, 2015, and 
‘‘(B) 17.5 percent, in the case of qualified 
natural gas vehicle manufacturing facility prop-
erty which is placed in service after December 
31, 2014, and before January 1, 2020. 
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‘‘(3) ELIGIBLE
TAXPAYER.—For purposes of 
this subsection, the term ‘eligible taxpayer’ means 
any taxpayer— 
‘‘(A) who places in service qualified natural 
gas vehicle manufacturing facility property dur-
ing the taxable year, 
‘‘(B) who does not make an election under 
section 179F(c), and 
‘‘(C) who makes an election under this 
subsection. 
‘‘(4) 
OTHER
DEFINITIONS
AND
SPECIAL 
RULES.— 
‘‘(A) QUALIFIED NATURAL GAS VEHICLE 
MANUFACTURING
FACILITY
PROPERTY.—The 
term ‘qualified natural gas vehicle manufac-
turing facility property’ has the meaning given 
such term under section 179F(d). 
‘‘(B) SPECIAL RULE FOR DUAL USE PROP-
ERTY.—In the case of any qualified natural gas 
vehicle manufacturing facility property which is 
used to produce both qualified property (as de-
fined in section 179F(d)) and other property 
which is not qualified property, the amount of 
costs taken into account under paragraph (1) 
shall be reduced by an amount equal to— 
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‘‘(i) the total amount of such costs 
(determined before the application of this 
subparagraph), multiplied by 
‘‘(ii) the percentage of property ex-
pected to be produced which is not quali-
fied property. 
‘‘(C) ELECTION.— 
‘‘(i) IN GENERAL.—An election under 
this subsection for any taxable year shall 
be made on the taxpayer’s return of the 
tax imposed by this chapter for the taxable 
year. Such election shall be made in such 
manner as the Secretary may by regula-
tions prescribe. 
‘‘(ii) ELECTION
IRREVOCABLE.—Any 
election made under this subsection may 
not be revoked except with the consent of 
the Secretary. 
‘‘(5) CREDIT REFUNDABLE.—For purposes of 
this title (other than this section), the credit allowed 
by reason of this subsection shall be treated as if it 
were allowed under subpart C.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 514. BEST MANAGEMENT PRACTICES. 
Not later than one year after the date of enactment 
of this Act, the Secretary of the Interior shall promulgate 
final regulations that require oil and gas operators to use 
best management practices that ensure the sound, effi-
cient, and environmentally responsible development of oil 
and gas on Federal lands in a manner that avoids where 
practical, minimizes, and mitigates actual and anticipated 
impacts to environmental habitat functions resulting from 
oil and gas development. Such regulations may allow the 
Secretary to approve site-specific adjustments to address 
unique issues and circumstances, on a case-by-case basis. 
All such regulations shall be consistent with the United 
States trust responsibility to Indian tribes. 
SEC. 515. STUDY OF INCREASING NATURAL GAS AND LIQ-
UEFIED PETROLEUM GAS VEHICLES IN FED-
ERAL FLEET. 
(a) IN GENERAL.—The Administrator of General 
Services, in consultation with the Administrator and the 
Secretary, shall conduct a study of the means by which 
the Federal fleet could increase the number of light-, me-
dium-, and heavy-duty natural gas and liquefied petroleum 
gas vehicles in the fleet. 
(b) COMPONENTS.—In conducting the study, the Ad-
ministrator of General Services shall— 
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