the United States, including advanced lithium ion bat-
teries and hybrid electrical system and component manu-
facturers and software designers. 
(b) REQUIREMENTS.—The Secretary may provide a 
loan guarantee under subsection (a) to an applicant if— 
(1) without a loan guarantee, credit is not 
available to the applicant under reasonable terms or 
conditions sufficient to finance the construction of a 
facility described in subsection (a); 
(2) the prospective earning power of the appli-
cant and the character and value of the security 
pledged provide a reasonable assurance of repayment 
of the loan to be guaranteed in accordance with the 
terms of the loan; and 
(3) the loan bears interest at a rate determined 
by the Secretary to be reasonable, taking into ac-
count the current average yield on outstanding obli-
gations of the United States with remaining periods 
of maturity comparable to the maturity of the loan. 
(c) CRITERIA.—In selecting recipients of loan guar-
antees from among applicants, the Secretary shall give 
preference to proposals that— 
(1) meet all applicable Federal and State per-
mitting requirements; 
(2) are most likely to be successful; and 
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(3) are located in local markets that have the 
greatest need for the facility. 
(d) MATURITY.—A loan guaranteed under subsection 
(a) shall have a maturity of not more than 20 years. 
(e) TERMS AND CONDITIONS.—The loan agreement 
for a loan guaranteed under subsection (a) shall provide 
that no provision of the loan agreement may be amended 
or waived without the consent of the Secretary. 
(f) ASSURANCE
OF REPAYMENT.—The Secretary 
shall require that an applicant for a loan guarantee under 
subsection (a) provide an assurance of repayment in the 
form of a performance bond, insurance, collateral, or other 
means acceptable to the Secretary in an amount equal to 
not less than 20 percent of the amount of the loan. 
(g) GUARANTEE FEE.—The recipient of a loan guar-
antee under subsection (a) shall pay the Secretary an 
amount determined by the Secretary to be sufficient to 
cover the administrative costs of the Secretary relating to 
the loan guarantee. 
(h) FULL FAITH AND CREDIT.—The full faith and 
credit of the United States is pledged to the payment of 
all guarantees made under this section. Any such guar-
antee made by the Secretary shall be conclusive evidence 
of the eligibility of the loan for the guarantee with respect 
to principal and interest. The validity of the guarantee 
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shall be incontestable in the hands of a holder of the guar-
anteed loan. 
(i) REPORTS.—Until each guaranteed loan under this 
section has been repaid in full, the Secretary shall annu-
ally submit to Congress a report on the activities of the 
Secretary under this section. 
(j) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
(k) TERMINATION OF AUTHORITY.—The authority of 
the Secretary to issue a loan guarantee under subsection 
(a) terminates on the date that is 10 years after the date 
of enactment of this Act. 
SEC. 2. DOMESTIC MANUFACTURING CONVERSION GRANT 
PROGRAM. 
Section 712 of the Energy Policy Act of 2005 (42 
U.S.C. 16062) is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘and components thereof’’ 
after ‘‘sales of efficient hybrid and advanced 
diesel vehicles’’; 
(B) by inserting ‘‘and hybrid component 
manufacturers’’ after ‘‘grants to automobile 
manufacturers’’; 
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(C) by inserting ‘‘, plug-in electric hybrid,’’ 
after ‘‘production of efficient hybrid’’; 
(D) by inserting ‘‘and suppliers’’ after 
‘‘automobile manufacturers’’; and 
(E) by adding at the end the following: 
‘‘Priority shall be given to the refurbishment or 
retooling of manufacturing facilities that have 
recently ceased operation or will cease operation 
in the near future.’’; and 
(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) COORDINATION WITH STATE AND LOCAL PRO-
GRAMS.—The Secretary may coordinate implementation of 
this section with State and local programs designed to ac-
complish similar goals, including the retention and retrain-
ing of skilled workers from the such manufacturing facili-
ties, including by establishing matching grant arrange-
ments. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as may be necessary to carry out this section.’’. 
SEC. 3. PLUG-IN HYBRID VEHICLE PROGRAM. 
(a) PLUG-IN
ELECTRIC
DRIVE
VEHICLE
PRO-
GRAM.— 
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(1) ESTABLISHMENT.—The Secretary of En-
ergy (in this section referred to as the ‘‘Secretary’’) 
shall establish a competitive program to provide 
grants on a cost-shared basis to State governments, 
local governments, metropolitan transportation au-
thorities, air pollution control districts, private or 
nonprofit entities or combinations thereof, to carry 
out a project or projects to encourage the use of 
plug-in electric drive vehicles or other emerging elec-
tric vehicle technologies, as determined by the Sec-
retary. 
(2) ADMINISTRATION.—The Secretary shall es-
tablish requirements for applications for grants 
under this section, including reporting of data to be 
summarized for dissemination to the Department, 
other grantees, and the public, including vehicle and 
component performance and vehicle and component 
life cycle costs. 
(3) SELECTION CRITERIA.— 
(A) PRIORITY.—When making awards 
under this subsection, the Secretary shall give 
priority consideration to applications that en-
courage early widespread utilization of such ve-
hicles and are likely to make a significant con-
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