section shall limit or restrict the authority of Con-
gress to set alternative spending limitations in an-
nual appropriations Acts. 
(5) APPORTIONMENT.—All transactions of the 
Fund shall be exempt from apportionment under the 
provisions of subchapter II of chapter 15 of title 31, 
United States Code. 
TITLE 
III—CLEANER 
ENERGY 
PRODUCTION 
AND 
ENERGY 
CONSERVATION INCENTIVES 
SEC. 301. EXTENSION OF RENEWABLE ENERGY CREDIT. 
(a) IN GENERAL.—Subsection (d) of section 45 of the 
Internal Revenue Code of 1986 (relating to qualified facili-
ties) is amended by striking ‘‘January 1, 2014’’ each place 
it appears and inserting ‘‘January 1, 2020’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2013. 
SEC. 302. EXTENSION OF CREDIT FOR ENERGY EFFICIENT 
APPLIANCES. 
(a) DISHWASHERS.—Subsection (b) of section 45M 
of the Internal Revenue Code of 1986 (relating to applica-
ble amount) is amended by striking ‘‘2011, 2012, or 
2013’’ each place it appears and inserting ‘‘after 2011 and 
before 2020’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to appliances produced after De-
cember 31, 2013. 
SEC. 303. EXTENSION OF CREDIT FOR NONBUSINESS EN-
ERGY PROPERTY. 
Section 25C(g) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ‘‘Decem-
ber 31, 2013’’ and inserting ‘‘December 31, 2019’’. 
SEC. 304. EXTENSION OF CREDIT FOR RESIDENTIAL EN-
ERGY EFFICIENT PROPERTY. 
Section 25D(g) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ‘‘Decem-
ber 31, 2016’’ and inserting ‘‘December 31, 2019’’. 
SEC. 305. EXTENSION OF NEW ENERGY EFFICIENT HOME 
CREDIT. 
Subsection (g) of section 45L of the Internal Revenue 
Code of 1986 (relating to termination) is amended by 
striking ‘‘December 31, 2013’’ and inserting ‘‘December 
31, 2019’’. 
SEC. 306. EXTENSION OF ENERGY EFFICIENT COMMERCIAL 
BUILDINGS DEDUCTION. 
Section 179D(h) of the Internal Revenue Code of 
1986 (relating to termination) is amended by striking 
‘‘December 31, 2013’’ and inserting ‘‘December 31, 
2019’’. 
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SEC. 307. EXTENSION OF ENERGY CREDIT. 
(a) 
SOLAR
ENERGY
PROPERTY.—Paragraphs 
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal 
Revenue Code of 1986 (relating to energy credit) are each 
amended by striking ‘‘January 1, 2017’’ and inserting 
‘‘January 1, 2020’’. 
(b) FUEL CELL PROPERTY.—Subparagraph (D) of 
section 48(c)(1) of such Code (relating to qualified fuel 
cell property) is amended by striking ‘‘December 31, 
2016’’ and inserting ‘‘December 31, 2019’’. 
(c) MICROTURBINE PROPERTY.—Subparagraph (D) 
of section 48(c)(2) of such Code (relating to qualified 
microturbine property) is amended by striking ‘‘December 
31, 2016’’ and inserting ‘‘December 31, 2019’’. 
(d) PROPERTY USING THERMAL ENERGY FROM 
GROUND OR GROUND WATER.—Clause (vii) of section 
48(a)(3)(A) of such Code is amended by striking ‘‘Decem-
ber 31, 2017’’ and inserting ‘‘December 31, 2019’’. 
(e) COMBINED HEAT AND POWER SYSTEM PROP-
ERTY.—Clause (iv) of section 48(c)(3)(A) of such Code 
is amended by striking ‘‘December 31, 2017’’ and insert-
ing ‘‘December 31, 2019’’. 
(f) SMALL WIND ENERGY PROPERTY.—Subpara-
graph (C) of section 48(c)(4) of such Code is amended 
by striking ‘‘December 31, 2016’’ and inserting ‘‘Decem-
ber 31, 2019’’. 
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SEC. 308. EXTENSION OF CREDIT FOR NEW CLEAN RENEW-
ABLE ENERGY BONDS. 
Subsection (c) of section 54C of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(5) ADDITIONAL ANNUAL ALLOCATIONS.—The 
national new clean renewable energy bond limitation 
shall be increased annually by 2 percent of the de-
posits made into the Renewable Energy and Energy 
Efficiency Reserve under section 8(g)(7) of the 
Outer Continental Shelf Lands Act with respect to 
such year. Each such increase shall be allocated by 
the Secretary consistent with the rules of para-
graphs (2) and (3).’’. 
SEC. 309. EXPENSING OF MECHANICAL INSULATION PROP-
ERTY. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of subtitle A of the Internal Revenue Code of 1986 
(relating to itemized deductions for individuals and cor-
porations) is amended by inserting after section 179E the 
following new section: 
‘‘SEC. 179F. MECHANICAL INSULATION PROPERTY. 
‘‘(a) TREATMENT AS EXPENSES.—There shall be al-
lowed as a deduction an amount equal to the applicable 
percentage of the cost of mechanical insulation property 
placed in service during the taxable year. 
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‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a)— 
‘‘(1) IN GENERAL.—The term ‘applicable per-
centage’ means the lesser of— 
‘‘(A) 30 percent, and 
‘‘(B) the excess (if any) of— 
‘‘(i) the energy savings (expressed as 
a percentage) obtained by placing such me-
chanical insulation property in service in 
connection with a mechanical system, over 
‘‘(ii) the energy savings (expressed as 
a percentage) such property is required to 
meet by Standard 90.1–2007, developed 
and published by the American Society of 
Heating, Refrigerating and Air-Condi-
tioning Engineers. 
‘‘(2) SPECIAL
RULE
RELATING
TO
MAINTE-
NANCE.—In the case of mechanical insulation prop-
erty placed in service as a replacement for insulation 
property— 
‘‘(A) paragraph (1)(B) shall be applied 
without regard to clause (ii) thereof, and 
‘‘(B) the cost of such property shall be 
treated as an expense for which a deduction is 
allowed under section 162 instead of being 
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treated as depreciable for purposes of the de-
duction provided by section 167. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) MECHANICAL
INSULATION
PROPERTY.— 
The term ‘mechanical insulation property’ means in-
sulation materials, facings, and accessory products— 
‘‘(A) placed in service in connection with a 
mechanical system which— 
‘‘(i) is located in the United States, 
and 
‘‘(ii) is of a character subject to an al-
lowance for depreciation, and 
‘‘(B) utilized for thermal, acoustical, and 
personnel safety requirements for mechanical 
piping and equipment, hot and cold applica-
tions, and heating, venting and air conditioning 
applications which can be used in a variety of 
facilities. 
‘‘(2) COST.—The cost of mechanical insulation 
property includes— 
‘‘(A) the amounts paid or incurred for the 
installation of such property, 
‘‘(B) in the case of removal and disposal of 
the old mechanical insulation property, 10 per-
cent of the cost of the new mechanical insula-
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tion property (determined without regard to 
this subparagraph), and 
‘‘(C) expenditures for labor costs properly 
allocable to the preparation, assembly, and in-
stallation of mechanical insulation property. 
‘‘(d) COORDINATION.— 
‘‘(1) SECTION 179D.—Subsection (a) shall not 
apply to the cost of mechanical insulation property 
which is taken into account under section 179D or 
which, but for subsection (b) of section 179D, would 
be taken into account under such section. 
‘‘(2) OTHER DEDUCTIONS AND CREDITS.— 
‘‘(A) IN GENERAL.—The amount of any 
other deduction or credit allowable under this 
chapter for any cost of mechanical insulation 
property which is taken into account under sub-
section (a) shall be reduced by the amount of 
such cost so taken into account. 
‘‘(B) EXCEPTION FOR CERTAIN COSTS.— 
Subparagraph (A) shall not apply to any 
amount properly attributable to maintenance. 
‘‘(e) ALLOCATION OF DEDUCTION FOR TAX-EXEMPT 
PROPERTY.—In the case of mechanical insulation prop-
erty installed on or in property owned by an entity de-
scribed in paragraph (3) or (4) of section 50(b), the per-
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son who is the primary contractor for the installation of 
such property shall be treated as the taxpayer that placed 
such property in service. 
‘‘(f) CERTIFICATION.—For purposes of this section, 
energy savings shall be certified under regulations or other 
guidance provided by the Secretary, in consultation with 
the Secretary of Energy.’’. 
(b) DEDUCTION
FOR CAPITAL EXPENDITURES.— 
Section 263(a)(1) of such Code (relating to capital ex-
penditures) is amended by striking ‘‘or’’ at the end of sub-
paragraph (K), by striking the period at the end of para-
graph (L) and inserting ‘‘, or’’, and by adding at the end 
the following new subparagraph: 
‘‘(M) expenditures for which a deduction is 
allowed under section 179F.’’. 
(c) TECHNICAL AND CLERICAL AMENDMENTS.— 
(1) Section 312(k)(3)(B) of such Code is 
amended by striking ‘‘or 179E’’ each place it ap-
pears in the text or heading thereof and inserting 
‘‘179E, or 179F’’. 
(2) Paragraphs (2)(C) and (3)(C) of section 
1245(a) of such Code are each amended by inserting 
‘‘179F,’’ after ‘‘179E,’’. 
(3) The table of sections for part VI of sub-
chapter B of chapter 1 of subtitle A of such Code 
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is amended by inserting after the item relating to 
section 179E the following new item: 
‘‘Sec. 179F. Mechanical insulation property.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of enactment of this Act. 
TITLE 
IV—INCREASE 
DIVER-
SIFICATION AND EFFICIENCY 
OF 
AMERICA’S 
TRANSPOR-
TATION AND ELECTRIC SYS-
TEM 
Subtitle A—Diversification of Fuel 
Source for America’s Short-Haul 
Transportation System 
SEC. 401. MINIMUM FEDERAL FLEET REQUIREMENT. 
Section 303 of the Energy Policy Act of 1992 (42 
U.S.C. 13212) is amended— 
(1) in subsection (b)— 
(A) by redesignating paragraphs (2) and 
(3) as paragraphs (3) and (4), respectively; 
(B) by inserting after paragraph (1) the 
following: 
‘‘(2) Of the total number of vehicles acquired by a 
Federal fleet under paragraph (1), at least the following 
percentage of the vehicles shall be plug-in electric drive 
vehicles (as defined in section 131(a) of the Energy Inde-
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pendence and Security Act of 2007 (42 U.S.C. 17011(a))) 
or new qualified alternative fuel motor vehicles (as defined 
in section 30B(e)(4) of the Internal Revenue Code of 
1986, but determined without regard to clauses (ii) and 
(iii) of subparagraph (A) thereof): 
‘‘(A) 10 percent for fiscal year 2014. 
‘‘(B) The applicable percentage for the pre-
ceding fiscal year increased by 2 percentage points 
(but not to exceed a total of 50 percent) for fiscal 
year 2015 and each subsequent fiscal year.’’; and 
(C) in paragraph (3) (as redesignated by 
subparagraph (A) of this paragraph), by insert-
ing ‘‘or (2)’’ after ‘‘paragraph (1)’’; 
(2) by striking subsection (c) and inserting the 
following: 
‘‘(c) ALLOCATION OF INCREMENTAL COSTS.—Sub-
ject to the availability of funds appropriated to carry out 
this subsection (to remain available until expended), the 
General Services Administration shall pay the incremental 
cost of alternative fuel vehicles over the cost of comparable 
gasoline vehicles for vehicles that the Administration pur-
chased for the use of the Administration or on behalf of 
other agencies, in a total amount of not to exceed 
$300,000,000 for any of fiscal years 2014 through 
2019.’’; 
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(3) in subsection (f), by adding at the end the 
following: 
‘‘(4) COMPLIANCE.—Compliance with this sub-
section shall not relieve a Federal agency of the obli-
gations of the agency under subsection (b).’’; and 
(4) in subsection (g), by striking ‘‘fiscal years 
1993 through 1998’’ and inserting ‘‘each fiscal 
year’’. 
SEC. 402. USE OF HOV FACILITIES BY LIGHT-DUTY, PLUG-IN 
ELECTRIC DRIVE VEHICLES OR NEW QUALI-
FIED ALTERNATIVE FUEL MOTOR VEHICLES. 
Section 166(b)(5) of title 23, United States Code, is 
amended— 
(1) in subparagraph (A), by striking ‘‘Before’’ 
and inserting ‘‘Except as provided in subparagraph 
(D), before’’; 
(2) in subparagraph (B), by striking ‘‘Before’’ 
and inserting ‘‘Except as provided in subparagraph 
(D), before’’; and 
(3) by adding at the end the following: 
‘‘(D) USE
BY
PLUG-IN
ELECTRIC
DRIVE 
VEHICLES.— 
‘‘(i) DEFINITION OF PLUG-IN ELEC-
TRIC
DRIVE
VEHICLE.—In this subpara-
graph, the term ‘plug-in electric drive vehi-
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cle’ has the meaning given the term in sec-
tion 131(a) of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 
17011(a)). 
‘‘(ii) USE
OF
HOV
FACILITIES.—A 
State agency— 
‘‘(I) shall allow a vehicle to use 
HOV facilities in the State if the vehi-
cle is, as determined by the Sec-
retary— 
‘‘(aa) certified as a low- 
emission and energy-efficient ve-
hicle in accordance with sub-
section (e); 
‘‘(bb) labeled in accordance 
with subsection (e); 
‘‘(cc) a light-duty, plug-in 
electric drive vehicle or a new 
qualified alternative fuel motor 
vehicle (as defined in section 
30B(e)(4) of the Internal Rev-
enue Code of 1986, but deter-
mined without regard to clauses 
(ii) and (iii) of subparagraph (A) 
thereof); and 
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‘‘(dd) purchased on or be-
fore December 31 of the calendar 
year described in clause (iii); and 
‘‘(II) shall not impose any toll or 
other charge on such a vehicle for use 
of an HOV facility in the State. 
‘‘(iii) CALENDAR
YEAR.—The cal-
endar year referred to in clause (ii)(I)(dd) 
is the calendar year during which, as de-
termined by the Secretary, the aggregate 
number of plug-in electric drive vehicles 
sold in the United States during all cal-
endar years exceeds 2,000,000. 
‘‘(iv) PETITION.—A State may peti-
tion the Secretary to limit or discontinue 
the use of an HOV facility by plug-in elec-
tric drive vehicles if the State dem-
onstrates to the Secretary that the pres-
ence of the plug-in electric drive vehicles 
has degraded the operation of the HOV fa-
cility.’’. 
SEC. 403. RECHARGING INFRASTRUCTURE. 
(a) DEFINITIONS.—In this section: 
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(1) LOCAL
GOVERNMENT.—The term ‘‘local 
government’’ has the meaning given the term in sec-
tion 3371 of title 5, United States Code. 
(2) PLUG-IN ELECTRIC DRIVE VEHICLE.—The 
term ‘‘plug-in electric drive vehicle’’ has the meaning 
given the term in section 131(a) of the Energy Inde-
pendence and Security Act of 2007 (42 U.S.C. 
17011(a)). 
(3) NEW QUALIFIED ALTERNATIVE FUELED VE-
HICLE.—The term ‘‘new qualified alternative fueled 
vehicle’’ means a new qualified alternative fuel 
motor vehicle (as defined in section 30B(e)(4) of the 
Internal Revenue Code of 1986, but determined 
without regard to clauses (ii) and (iii) of subpara-
graph (A) thereof). 
(4) RANGE
EXTENSION
INFRASTRUCTURE.— 
The term ‘‘range extension infrastructure’’ includes 
equipment, products, or services for recharging plug- 
in electric drive vehicles that— 
(A) are available to retail consumers of 
electric drive vehicles on a nondiscriminatory 
basis; 
(B) provide for extending driving range 
through battery exchange or rapid recharging; 
and 
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(C) are comparable in convenience and 
price to petroleum-based refueling services. 
(b) STUDY.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall conduct a study of— 
(A) the number and distribution of re-
charging facilities and alternative vehicle fuel 
facilities, including range extension infrastruc-
ture, that will be required for drivers of plug- 
in electric drive vehicles in the United States to 
reliably recharge the electric drive vehicles; 
(B) minimum technical standards for pub-
lic recharging facilities, in coordination with the 
National Institute of Standards and Tech-
nology; and 
(C) the concurrent technical and infra-
structure investments that electric utilities and 
electricity providers will be required to make to 
support widespread deployment of recharging 
infrastructure and the estimated costs of the in-
vestments. 
(2) COMPONENTS.—In conducting the study re-
quired under this subsection, the Secretary shall 
analyze— 
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(A) the variety and density of recharging 
infrastructure options necessary to power plug- 
in electric drive vehicles under diverse scenarios, 
including— 
(i) the ratio of residential, commer-
cial, and public recharging infrastructure 
options necessary to support 10 percent, 
20 percent, and 50 percent penetration of 
plug-in electric vehicles on a city fleet 
basis; 
(ii) the ratio of residential, commer-
cial, and public recharging infrastructure 
options necessary to support 10 percent, 
20 percent, and 50 percent penetration of 
plug-in electric vehicles on a national fleet 
basis; and 
(iii) the potential impact of fast 
charging on penetration rates and utility 
power management requirements; 
(B) whether use of parking spots with ac-
cess to recharging facilities should be limited to 
plug-in electric drive vehicles; and 
(C) such other issues as the Secretary con-
siders appropriate. 
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(3) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall 
submit to the appropriate committees of Congress a 
report on the results of the study conducted under 
this subsection, including any recommendations. 
(c) GRANTS AND LOANS TO LOCAL GOVERNMENTS 
FOR RECHARGING INFRASTRUCTURE.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall establish a program under which the 
Secretary shall provide grants and loans to local gov-
ernments to assist in the installation of recharging 
facilities for electric drive vehicles in areas under the 
jurisdiction of the local governments. The Secretary 
shall provide funding under this section to local gov-
ernments to pay not more than 50 percent of the re-
charging infrastructure cost. 
(2) ELIGIBILITY.—To be eligible to obtain a 
grant or loan under this subsection, a local govern-
ment shall— 
(A) demonstrate to the Secretary that the 
local government has taken into consideration 
the findings of the report submitted under sub-
section (b)(3), unless the local government dem-
onstrates to the Secretary that an alternative 
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variety and density of recharging infrastructure 
options would better meet the purposes of this 
section; and 
(B) agree not to charge a premium for use 
of a parking space used to recharge an electric 
drive vehicle other than a charge for electric en-
ergy. 
(3) GUIDELINES.—The Secretary shall establish 
guidelines for carrying out this subsection that are 
consistent with the report submitted under sub-
section (b)(3). 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Sec-
retary to carry out this subsection a total of 
$250,000,000 
for 
grants 
and 
a 
total 
of 
$250,000,000 for loans, to remain available until ex-
pended. 
SEC. 404. LOAN GUARANTEES FOR ADVANCED BATTERY 
PURCHASES. 
Subtitle B of title I of the Energy and Independence 
and Security Act of 2007 (42 U.S.C. 17011 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 137. LOAN GUARANTEES FOR ADVANCED BATTERY 
PURCHASES. 
‘‘(a) DEFINITIONS.—In this section: 
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‘‘(1) PLUG-IN ELECTRIC DRIVE VEHICLE.—The 
term ‘plug-in electric drive vehicle’ has the meaning 
given the term in section 131(a). 
‘‘(2) RANGE
EXTENSION
INFRASTRUCTURE.— 
The term ‘range extension infrastructure’ includes 
equipment, products, or services for recharging plug- 
in electric drive vehicles that— 
‘‘(A) are available to retail consumers of 
electric drive vehicles on a nondiscriminatory 
basis; 
‘‘(B) provide for extended driving range 
through battery exchange or rapid recharging; 
and 
‘‘(C) are comparable in convenience and 
price to petroleum-based refueling services. 
‘‘(b) LOAN GUARANTEES.—The Secretary shall guar-
antee loans made to eligible entities for the aggregate pur-
chase by an eligible entity of not less than 5,000 batteries 
that use advanced battery technology within a calendar 
year. 
‘‘(c) ELIGIBLE ENTITIES.—To be eligible to obtain 
a loan guarantee under this section, an entity shall be— 
‘‘(1) an original equipment manufacturer; 
‘‘(2) a vehicle manufacturer; 
‘‘(3) an electric utility; 
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‘‘(4) any provider of range extension infrastruc-
ture; or 
‘‘(5) any other qualified entity, as determined 
by the Secretary. 
‘‘(d) REGULATIONS.—The Secretary shall promul-
gate such regulations as are necessary to carry out this 
section. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section.’’. 
SEC. 405. STUDY OF END-OF-USEFUL-LIFE OPTIONS FOR 
MOTOR VEHICLE BATTERIES. 
(a) IN GENERAL.—In combination with the research, 
demonstration, and deployment activities conducted under 
section 641(k) of the Energy and Independence and Secu-
rity Act of 2007 (42 U.S.C. 17231(k)), the Secretary of 
Energy shall conduct a study on the end-of-useful-life op-
tions for motor vehicle batteries, including recommenda-
tions for stationary storage applications and recyclability 
design specifications. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary shall submit to 
the appropriate committees of Congress a report on the 
results of the study conducted under subsection (a), in-
cluding any recommendations. 
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SEC. 406. STUDY AND DEMONSTRATION ELECTRIFICATION 
OF POSTAL FLEET. 
(a) IN GENERAL.—The Postal Service shall conduct 
a study of what portion of its mail delivery vehicles are 
capable of being replaced with plug-in hybrid electric vehi-
cles. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Postal Service shall submit 
to the appropriate committees of Congress a report on the 
results of the study conducted under subsection (a). 
(c) PROTOTYPE PLUG-IN ELECTRIC HYBRID MAIL 
DELIVERY VEHICLES.—Not later than 2 years after the 
date of enactment of this Act, the Postal Service shall con-
tact for the development of a prototype plug-in electric hy-
brid mail delivery vehicles. 
SEC. 407. STUDY OF DEVELOPMENT OF COMMON STAND-
ARDS FOR PHEVS AND EVS BETWEEN THE 
UNITED STATES, EUROPE AND ASIA. 
(a) IN GENERAL.—The Secretary of Energy shall 
conduct a study identifying the components of electric ve-
hicles, hybrid-electric vehicles, and plug-in hybrid-electric 
vehicles for which it is important that there be common 
standards within the United States and between the 
United States, European, and Asian automakers and ex-
amine the extent to which such standards are (or are not) 
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or have been (or have not been) developed, and the status 
of any such efforts to develop such standards. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of Energy shall 
submit to the appropriate committees of Congress a report 
on the results of the study conducted under subsection (a), 
including any recommendations. 
Subtitle B—Incentives for 
Diversification of Transportation 
SEC. 420. AMENDMENT OF 1986 CODE. 
Except as otherwise expressly provided, whenever in 
this subtitle an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Internal Revenue Code 
of 1986. 
SEC. 421. EXTENSION AND MODIFICATION OF CREDIT FOR 
FUEL CELL, HYBRID, LEAN BURN, AND AL-
TERNATIVE FUEL VEHICLES. 
(a) EXTENSION OF CREDIT.—Subsection (k) of sec-
tion 30B is amended to read as follows: 
‘‘(k) TERMINATION.—This section shall not apply to 
any property purchased after December 31, 2019.’’. 
(b) APPLICATION
TO BI-FUEL, DUEL-FUEL, AND 
FLEX-FUEL VEHICLES.— 
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(1) BI-FUEL
AND
DUEL-FUEL
VEHICLES.— 
Clause (i) of section 30B(e)(4)(A) (relating to defi-
nition of new qualified alternative fuel motor vehicle) 
is amended to read as follows: 
‘‘(i) which is a dedicated vehicle, a bi- 
fuel vehicle, or a duel-fuel vehicle,’’. 
(2) FLEX-FUEL VEHICLES.—Subparagraph (B) 
of section 30B(e)(4) is amended by inserting ‘‘or 
ethanol’’ after ‘‘methanol’’. 
(3) BI-FUEL
AND
DUEL-FUEL
VEHICLES
DE-
FINED.—Paragraph (5) of section 30B(e) is amend-
ed to read as follows: 
‘‘(5) BI-FUEL AND DUEL-FUEL VEHICLES DE-
FINED.—For purposes of this subsection— 
‘‘(A) BI-FUEL VEHICLE.—The term ‘bi-fuel 
vehicle’ means a vehicle which is capable of op-
erating on— 
‘‘(i) compressed natural gas, liquified 
natural gas, or liquified petroleum gas, and 
‘‘(ii) gasoline or diesel fuel. 
‘‘(B) DUEL-FUEL
VEHICLE.—The term 
‘duel-fuel vehicle’ means a vehicle which is ca-
pable of operating on a mixture of— 
‘‘(i) compressed natural gas, liquified 
natural gas, or liquified petroleum gas, and 
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‘‘(ii) gasoline or diesel fuel.’’. 
(c) APPLICATION TO CONVERSIONS AND REPOWERS 
OF ALTERNATIVE FUEL VEHICLES.—Paragraph (4) of 
section 30B(e) is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) CONVERSIONS AND REPOWERS.— 
‘‘(i) IN
GENERAL.—The term ‘new 
qualified alternative fuel motor vehicle’ in-
cludes the conversion or repower of a new 
or used vehicle so that it is capable of op-
erating on an alternative fuel as it was not 
previously capable of operating on an alter-
native fuel. 
‘‘(ii) TREATMENT AS NEW.—A vehicle 
which has been converted to operate on an 
alternative fuel shall be treated as new on 
the date of such conversion for purposes of 
this section. 
‘‘(iii) RULE
OF
CONSTRUCTION.—In 
the case of a used vehicle which is con-
verted or repowered, nothing in this section 
shall be construed to require that the 
motor vehicle be acquired in the year the 
credit is claimed under this section with re-
spect to such vehicle.’’. 
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(d) REPEAL OF NUMBER LIMITATION ON HYBRIDS 
AND LEAN-BURN VEHICLES.—Section 30B is amended by 
striking subsection (f). 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property purchased after De-
cember 31, 2013. 
SEC. 422. EXTENSION AND EXPANSION OF CREDIT FOR NEW 
QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLES. 
(a) EXTENSION.—Section 30D is amended by adding 
at the end the following new subsection: 
‘‘(g) TERMINATION.—This section shall not apply to 
any property purchased after December 31, 2019.’’. 
(b) RESTORATION
OF CREDIT
FOR LARGE NEW 
QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES 
WEIGHING OVER 14,000 POUNDS.— 
(1) IN GENERAL.—The last sentence of section 
30D(b)(3) is amended to read as follows: ‘‘The 
amount determined under this paragraph shall not 
exceed— 
‘‘(A) $5,000, in the case of any new quali-
fied plug-in electric drive motor vehicle with a 
gross vehicle weight rating of not more than 
14,000 pounds, 
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‘‘(B) $10,000, in the case of any new 
qualified plug-in electric drive motor vehicle 
with a gross vehicle weight rating of more than 
14,000 pounds but not more than 26,000 
pounds, and 
‘‘(C) $12,500, in the case of any new 
qualified plug-in electric drive motor vehicle 
with a gross vehicle weight rating of more than 
26,000 pounds.’’. 
(2) CONFORMING
AMENDMENTS.—Paragraph 
(1) of section 30D(d) is amended by adding ‘‘and’’ 
at the end of subparagraph (D), by striking sub-
paragraph (E), and by redesignating subparagraph 
(F) as subparagraph (E). 
(c) INCREASE IN PER MANUFACTURER CAP.—Para-
graph (2) of section 30D(e) is amended by striking 
‘‘200,000’’ and inserting ‘‘400,000’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to vehicles acquired after the date 
of the enactment of this Act. 
SEC. 423. EXTENSION OF CREDIT FOR CERTAIN PLUG-IN 
ELECTRIC VEHICLES. 
(a) IN GENERAL.—Subsection (f) of section 30 is 
amended by striking ‘‘December 31, 2011’’ and inserting 
‘‘December 31, 2019’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to vehicles acquired after the date 
of the enactment of this Act. 
SEC. 424. TAX CREDIT FOR MOST EFFICIENT VEHICLE IN 
CLASS. 
Subpart B of part IV of subchapter A of chapter 1 
(relating to other credits) is amended by adding at the 
end the following new section: 
‘‘SEC. 30E. MOST EFFICIENT VEHICLE IN CLASS 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 $2,000 for each 
car that is determined to be the ‘most efficient vehicle in 
class’ placed in service by the taxpayer during the taxable 
year. 
‘‘(b) MOST EFFICIENT VEHICLE
IN CLASS.—For 
purposes of this section, the term ‘most efficient vehicle 
in class’ means the motor vehicle identified as the most 
efficient vehicle in each class of vehicle in the Annual Fuel 
Economy Guide published by the Environmental Protec-
tion Agency.’’. 
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SEC. 425. EXTENSION OF CREDIT AND EXTENSION OF TEM-
PORARY INCREASE IN CREDIT FOR ALTER-
NATIVE FUEL VEHICLE REFUELING PROP-
ERTY. 
(a) EXTENSION OF CREDIT.—Subsection (g) of sec-
tion 30C is amended by striking ‘‘service—’’ and all that 
follows and inserting ‘‘service after December 31, 2019.’’. 
(b) EXTENSION OF TEMPORARY INCREASE.—Para-
graph (6) of section 30C(e) is amended— 
(1) by striking ‘‘January 1, 2011’’ and insert-
ing ‘‘January 1, 2020’’, and 
(2) by striking ‘‘AND 2010’’ in the heading and 
inserting ‘‘THROUGH 2019’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2010. 
SEC. 426. MODIFICATION OF ALTERNATIVE FUEL CREDIT. 
(a) ALTERNATIVE FUEL CREDIT.—Paragraph (5) of 
section 6426(d) (relating to alternative fuel credit) is 
amended by inserting ‘‘, and December 31, 2019, in the 
case of any sale or use involving compressed or liquefied 
natural gas or liquified petroleum gas’’ after ‘‘hydrogen’’. 
(b) ALTERNATIVE FUEL MIXTURE CREDIT.—Para-
graph (3) of section 6426(e) is amended by inserting ‘‘, 
and December 31, 2019, in the case of any sale or use 
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involving compressed or liquefied natural gas or liquified 
petroleum gas’’ after ‘‘hydrogen’’. 
(c) PAYMENTS RELATING TO ALTERNATIVE FUEL OR 
ALTERNATIVE FUEL MIXTURES.—Paragraph (6) of sec-
tion 6427(e) is amended— 
(1) in subparagraph (C)— 
(A) by striking ‘‘subparagraph (D)’’ and 
inserting ‘‘subparagraphs (D) and (E)’’, and 
(B) by striking ‘‘and’’ at the end thereof, 
(2) by striking the period at the end of sub-
paragraph (D) and inserting ‘‘, and’’, and 
(3) by inserting at the end the following: 
‘‘(E) any alternative fuel or alternative fuel 
mixture (as so defined) involving compressed or 
liquefied natural gas or liquified petroleum gas 
sold or used after December 31, 2019.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after the date 
of the enactment of this Act. 
SEC. 427. EXTENSION OF CREDITS FOR BIODIESEL AND RE-
NEWABLE DIESEL. 
(a) IN GENERAL.—Sections 40A(g), 6426(c)(6), and 
6427(e)(6)(B) are each amended by striking ‘‘December 
31, 2013’’ and inserting ‘‘December 31, 2019’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel produced, and sold or used, 
after December 31, 2013. 
Subtitle C—Low-Carbon 
Diversification of Electric System 
SEC. 431. INNOVATIVE LOW-CARBON LOAN GUARANTEE 
PROGRAM. 
Section 1703 of the Energy Policy Act of 2005 (42 
U.S.C. 16513) is amended— 
(1) in subsection (b), by adding at the end the 
following: 
‘‘(11) Innovative low-carbon technology projects 
in accordance with subsection (f).’’; and 
(2) by adding at the end the following: 
‘‘(f) 
INNOVATIVE
LOW-CARBON
TECHNOLOGY 
PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary may make 
guarantees to carry out innovative low-carbon tech-
nologies projects. 
‘‘(2) FUNDING.— 
‘‘(A) IN GENERAL.—Subject to the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661 et 
seq.), the total principal amount of loans guar-
anteed to carry out projects under this sub-
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section shall not exceed $50,000,000,000, to re-
main available until committed. 
‘‘(B) ADDITIONAL
AMOUNTS.—Amounts 
made available to carry out this subsection shall 
be in addition to any other authority provided 
for fiscal year 2010 or any previous fiscal year. 
‘‘(C) SOURCE OF FUNDS.— 
‘‘(i) IN
GENERAL.—Amounts made 
available to carry out this subsection shall 
be— 
‘‘(I) derived from amounts re-
ceived from borrowers pursuant to 
section 1702(b)(2) for fiscal year 
2010 or any previous fiscal year; and 
‘‘(II) collected in accordance with 
the Federal Credit Reform Act of 
1990 (2 U.S.C. 661 et seq.). 
‘‘(ii) TREATMENT.—The source of 
payment received from borrowers described 
in clause (i) shall be not considered a loan 
or other debt obligation that is guaranteed 
by the Federal Government. 
‘‘(D) SUBSIDY COST.—In accordance with 
section 1702(b)(2), no appropriations to carry 
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out this subsection shall be available to pay the 
subsidy cost of guarantees.’’. 
SEC. 432. ENSURING REVENUES ARE SUFFICIENT FOR IM-
PLEMENTATION OF TITLE IV. 
(a) Any programs or directives established by title IV 
of this Act, such as sections 401, 403, and 431, but not 
extensions of tax credits, shall be offset with funds in the 
Carbon Free Reserve account established in section 107. 
(b) Once the reserve account’s balance has funds suf-
ficient to offset the costs of these provisions, the Secretary 
of Energy shall submit a plan to Congress within 180 days 
to begin implementation of those provisions. 
Æ 
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