I 
111TH CONGRESS 
1ST SESSION H. R. 2300 
To provide the United States with a comprehensive energy package to place 
Americans on a path to a secure economic future through increased 
energy innovation, conservation, and production. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 7, 2009 
Mr. BISHOP of Utah (for himself, Mr. PRICE of Georgia, Mr. LAMBORN, Mr. 
SCALISE, Mr. CONAWAY, Mr. SULLIVAN, Mr. BROUN of Georgia, Mr. 
CHAFFETZ, Ms. FALLIN, Mr. FLEMING, Mr. YOUNG of Alaska, Ms. 
FOXX, Mr. FRANKS of Arizona, Mr. GINGREY of Georgia, Mrs. LUMMIS, 
Mr. MARCHANT, Mr. MCKEON, Mr. NEUGEBAUER, Mr. PITTS, Mr. SIMP-
SON, Mr. HELLER, Mr. POE of Texas, Mr. LEE of New York, Mr. WEST-
MORELAND, Mr. BURTON of Indiana, Mr. REHBERG, Mr. ALEXANDER, 
Mr. GOODLATTE, Mr. CASSIDY, Mr. RADANOVICH, Mr. LATTA, Mr. 
MCCAUL, Mr. SESSIONS, Mr. BOOZMAN, and Mr. THORNBERRY) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committees on Natural Resources, En-
ergy and Commerce, Science and Technology, Rules, and Oversight and 
Government Reform, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To provide the United States with a comprehensive energy 
package to place Americans on a path to a secure eco-
nomic future through increased energy innovation, con-
servation, and production. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Energy Innovation Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—INNOVATION 
Subtitle A—Energy Independence 
Sec. 1001. Sense of Congress. 
Subtitle B—Tax Exempt Financing for Qualified Renewable Energy Facilities 
Sec. 1101. Special depreciation allowance for cellulosic biomass ethanol plant 
property. 
Sec. 1102. Coal-to-liquid facilities. 
Sec. 1103. Dedicated ethanol pipelines treated as 15-year property. 
Sec. 1104. Credit for pollution abatement equipment. 
Sec. 1105. Modifications relating to clean renewable energy bonds. 
Sec. 1106. Extension of renewable energy production tax credit. 
Subtitle C—Repeal of Federal Purchasing Requirement 
Sec. 1201. Repeal of Federal purchasing requirement. 
Subtitle D—Renewable Technologies 
Sec. 1301. Pilot project for developing solar energy on Federal lands. 
Sec. 1302. Three-year depreciation for solar and fuel cell property. 
Sec. 1303. Extension of credit for electricity produced from wind and biomass. 
Sec. 1304. Nuclear, hydropower, and biomass defined as renewable. 
Sec. 1305. Permanent extension of the credit for nonbusiness energy property 
and the credit for gas produced from biomass and for synthetic 
fuels produced from coal. 
Sec. 1306. Algae-based fuels parity. 
Subtitle A—Rewarding Innovation in Technology 
Sec. 1401. Increase in Alternative Simplified Research Credit. 
Sec. 1402. Research and Experimentation Credit permanent. 
Sec. 1403. Alternative Fuel Vehicle Innovation Prize. 
Subtitle B—Improve National Grid Efficiency 
Sec. 1501. Income and gains from electricity transmission systems treated as 
qualifying income for publicly traded partnerships. 
Sec. 1502. Five-year applicable recovery period for depreciation of qualified 
smart electric meters. 
Subtitle C—Regulatory Burdens 
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Sec. 1601. Greenhouse gas regulation under Clean Air Act. 
Sec. 1602. NEPA judicial review. 
Sec. 1603. Repeal of 2007 amendments to renewable fuel standard. 
Sec. 1604. Repeal of requirement to consult regarding impacts on global warm-
ing and polar bear population. 
Sec. 1605. Light bulb choice. 
Sec. 1606. Repeal of deduction for income attributable to domestic production 
activities. 
Sec. 1607. Hydraulic fracturing. 
Subtitle D—Judicial Review Regarding Energy Projects 
PART 1—JUDICIAL REVIEW REGARDING ENERGY PROJECTS 
Sec. 1701. Exclusive jurisdiction over causes and claims relating to covered en-
ergy projects. 
Sec. 1702. Time for filing complaint. 
Sec. 1703. District Court for the District of Columbia deadline. 
Sec. 1704. Ability to seek appellate review. 
Sec. 1705. Deadline for appeal to the Supreme Court. 
Sec. 1706. Covered energy project defined. 
Sec. 1707. Limitation on application. 
PART 2—PERMITTING REFORM 
Sec. 1711. Purposes. 
Sec. 1712. Federal Coordinator. 
Sec. 1713. Regional Offices and Regional Permit Coordinators. 
Sec. 1714. Reviews and actions of Federal agencies. 
Sec. 1715. State coordination. 
Sec. 1716. Savings provision. 
Sec. 1717. Administrative and Judicial Review. 
Sec. 1718. Amendments to publication process. 
Sec. 1719. Alaska Offshore Continental Shelf Coordination Office. 
Subtitle E—Innovation in Carbon Capture and Clean Coal Technology 
Sec. 1801. Coal-to-liquid fuel loan guarantee program. 
Sec. 1802. Coal-to-liquid facilities loan program. 
Sec. 1803. Allows for 7-year depreciation for power-plants that install clean 
coal technology or retro-fit plants for carbon sequestration 
technology. 
Sec. 1804. Extension of 50 cent per gallon alternative fuels excise tax credit. 
Sec. 1805. Provides a 20 percent investment tax credit capped at $200 million 
total per CTL plant placed in service before 2016. 
Sec. 1806. Reduces recovery period for certain energy production and distribu-
tion facilities. 
Sec. 1807. DOE clean coal technology loan guarantees and direct loans. 
Subtitle F—Natural Gas 
Sec. 1901. Natural gas vehicle research, development, and demonstration 
projects. 
Sec. 1902. Modification of alternative fuel credit. 
Sec. 1903. Extension and modification of alternative fuel vehicle credit. 
Sec. 1904. Allowance of vehicle and infrastructure credits against regular and 
minimum tax and transferability of credits. 
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Sec. 1905. Credit for producing vehicles fueled by natural gas or liquified nat-
ural gas. 
TITLE II—CONSERVATION 
Subtitle A—Conservation 
Sec. 2001. Permanent extension of the credit for nonbusiness energy property, 
the credit for gas produced from biomass and for synthetic 
fuels produced from coal, and the credit for energy efficient ap-
pliances. 
Sec. 2002. Extension and clarification of new energy efficient home credit. 
Sec. 2003. Extension and modification of deduction for energy efficient com-
mercial buildings. 
Sec. 2004. Deduction for energy efficient low-rise buildings. 
Subtitle B—Clean Coal Alternative Transition 
Sec. 2101. Carbon dioxide storage capacity assessment. 
Sec. 2102. Efficiency audit and quantification. 
Subtitle C—Natural Gas Transition 
Sec. 2201. Extension of alternative vehicle credit purchase of natural gas pow-
ered vehicle from 2010 till 2020; increase in amount of credit 
for cars. 
Sec. 2202. Extension of credit of 50 percent of the auto conversion cost to a 
natural gas powered automobile from gasoline or diesel pow-
ered engine and the CNG home filling station cost. 
Subtitle D—Carbon Capture and Storage Credit 
Sec. 2301. Increase in carbon capture and storage tax credit. 
TITLE III—PRODUCTION 
Subtitle A—Outer Continental Shelf 
Sec. 3001. End moratorium of oil and gas leasing in certain areas of the Gulf 
of Mexico. 
Sec. 3002. Outer Continental Shelf directed lease sales. 
Sec. 3003. Leasing program considered approved. 
Sec. 3004. Outer Continental Shelf lease sales. 
Sec. 3005. Restrictions on leasing of the outer Continental Shelf. 
Sec. 3006. Sharing of OCS receipts with States and local governments. 
Subtitle B—Arctic Coastal Plain 
Sec. 3101. Definitions. 
Sec. 3102. Leasing program for land within the Coastal Plain. 
Sec. 3103. Lease sales. 
Sec. 3104. Grant of leases by the Secretary. 
Sec. 3105. Lease terms and conditions. 
Sec. 3106. Coastal plain environmental protection. 
Sec. 3107. Expedited judicial review. 
Sec. 3108. Federal and State distribution of revenues. 
Sec. 3109. Rights-of-way across the Coastal Plain. 
Sec. 3110. Conveyance. 
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Subtitle C—Nuclear Energy Reforms 
Sec. 3201. Amendments to title XVII of the Energy Policy Act 2005. 
Sec. 3202. Amendments to section 638 of the Energy Policy Act of 2005. 
Sec. 3203. Amendments to section 952(c) of the Energy Policy Act 2005. 
Sec. 3204. Domestic manufacturing base for nuclear components and equip-
ment. 
Sec. 3205. Use of funds for recycling. 
Sec. 3206. Licensing of new nuclear power plants. 
Sec. 3207. Investment tax credit for investments in nuclear power facilties. 
Sec. 3208. National nuclear energy council. 
Sec. 3209. Temporary spent nuclear fuel storage agreements. 
Sec. 3210. Implementation of temporary spent nuclear fuel storage agreements. 
Sec. 3211. Expedited procedures for congressional review of temporary spent 
nuclear fuel storage agreements. 
Sec. 3212. Contracting and nuclear waste fund. 
Sec. 3213. Confidence in availability of waste disposal. 
Sec. 3214. Limitation on use of funds. 
Subtitle D—Expedited Oil, Gas, and Oil Shale Leasing of Federal Lands 
Sec. 3301. Expedited permitting of covered energy projects. 
Sec. 3302. Waiver of laws applicable to covered energy projects. 
Sec. 3303. Permitting for year-round conduct of covered energy projects. 
Subtitle E—Refining Capacity and Efficiency 
Sec. 3401. Refinery revitalization repeal. 
Sec. 3402. Reduction in number of boutique fuels. 
Sec. 3403. Refinery permitting process. 
Sec. 3404. Existing refinery permit application deadline. 
Sec. 3405. Removal of additional fee for new applications for permits to drill. 
Subtitle F—Alternative Sources of Fuel 
Sec. 3501. Year extension of election to expense certain refineries. 
Sec. 3502. Opening of lands to oil shale leasing. 
Sec. 3503. Oil shale and tar sands amendments. 
Sec. 3504. Tax credit for carbon dioxide captured from industrial sources and 
used in enhanced oil and natural gas recovery. 
Subtitle G—Domestic Energy Impact Statements 
Sec. 3601. Committee reports in House of Representatives required to include 
domestic energy impact statements. 
Sec. 3602. Domestic energy impact statements. 
Subtitle H—Deficit Reduction 
Sec. 3701. Deficit Reduction Trust Fund. 
TITLE IV—JOB CREATION 
Sec. 4001. Sense of Congress. 
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TITLE I—INNOVATION 
Subtitle A—Energy Independence 
SEC. 1001. SENSE OF CONGRESS. 
It is the sense of Congress that the fastest way to 
reach energy independence and effectively address climate 
change is through innovation, conservation, and respon-
sible production. Imposing a carbon tax or artificial regu-
latory mandates which promise no reduction in global car-
bon emissions will lead to the loss of millions of jobs for 
Americans. Congress must rely on the most sound and 
complete scientific evidence in order to tackle these chal-
lenges. 
Subtitle B—Tax Exempt Financing 
for Qualified Renewable Energy 
Facilities 
SEC. 1101. SPECIAL DEPRECIATION ALLOWANCE FOR CEL-
LULOSIC BIOMASS ETHANOL PLANT PROP-
ERTY. 
(a) IN GENERAL.—Section 168 of the Internal Rev-
enue Code of 1986 (relating to accelerated cost recovery 
system) is amended by adding at the end the following: 
‘‘(o) SPECIAL ALLOWANCE FOR CELLULOSIC BIO-
MASS ETHANOL PLANT PROPERTY.— 
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‘‘(1) ADDITIONAL ALLOWANCE.—In the case of 
any qualified cellulosic biomass ethanol plant prop-
erty— 
‘‘(A) the depreciation deduction provided 
by section 167(a) for the taxable year in which 
such property is placed in service shall include 
an allowance equal to 50 percent of the ad-
justed basis of such property, and 
‘‘(B) the adjusted basis of such property 
shall be reduced by the amount of such deduc-
tion before computing the amount otherwise al-
lowable as a depreciation deduction under this 
chapter for such taxable year and any subse-
quent taxable year. 
‘‘(2) QUALIFIED
CELLULOSIC
BIOMASS
ETH-
ANOL PLANT PROPERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
cellulosic biomass ethanol plant property’ means 
property of a character subject to the allowance 
for depreciation— 
‘‘(i) which is used in the United 
States solely to produce cellulosic biomass 
ethanol, 
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‘‘(ii) the original use of which com-
mences with the taxpayer after the date of 
the enactment of this subsection, 
‘‘(iii) which has a nameplate capacity 
of 100,000,000 gallons per year of cellu-
losic biomass ethanol, 
‘‘(iv) which is acquired by the tax-
payer by purchase (as defined in section 
179(d)) after the date of the enactment of 
this subsection, but only if no written bind-
ing contract for the acquisition was in ef-
fect on or before the date of the enactment 
of this subsection, and 
‘‘(v) which is placed in service by the 
taxpayer before January 1, 2013. 
‘‘(B) EXCEPTIONS.— 
‘‘(i) 
ALTERNATIVE
DEPRECIATION 
PROPERTY.—Such term shall not include 
any 
property 
described 
in 
section 
168(k)(2)(D)(i). 
‘‘(ii) TAX-EXEMPT
BOND-FINANCED 
PROPERTY.—Such term shall not include 
any property any portion of which is fi-
nanced with the proceeds of any obligation 
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the interest on which is exempt from tax 
under section 103. 
‘‘(iii) ELECTION OUT.—If a taxpayer 
makes an election under this subparagraph 
with respect to any class of property for 
any taxable year, this subsection shall not 
apply to all property in such class placed 
in service during such taxable year. 
‘‘(3) CELLULOSIC
BIOMASS
ETHANOL.—For 
purposes of this subsection, the term ‘cellulosic bio-
mass ethanol’— 
‘‘(A) means ethanol derived from any 
lignocellulosic or hemicellulosic matter that is 
available on a renewable or recurring basis, in-
cluding— 
‘‘(i) dedicated energy crops and trees, 
‘‘(ii) wood and wood residues, 
‘‘(iii) plants, 
‘‘(iv) grasses, 
‘‘(v) agricultural residues, 
‘‘(vi) fibers, 
‘‘(vii) animal wastes and other waste 
materials, and 
‘‘(viii) municipal and solid waste, and 
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ceases to be qualified cellulosic biomass ethanol 
plant property.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
SEC. 1102. COAL-TO-LIQUID FACILITIES. 
(a) IN GENERAL.—Section 168 of the Internal Rev-
enue Code of 1986 (relating to accelerated cost recovery 
system), as amended by this Act, is amended by adding 
at the end the following: 
‘‘(p) SPECIAL ALLOWANCE
FOR COAL-TO-LIQUID 
PLANT PROPERTY.— 
‘‘(1) ADDITIONAL ALLOWANCE.—In the case of 
any qualified coal-to-liquid plant property— 
‘‘(A) the depreciation deduction provided 
by section 167(a) for the taxable year in which 
such property is placed in service shall include 
an allowance equal to 50 percent of the ad-
justed basis of such property, and 
‘‘(B) the adjusted basis of such property 
shall be reduced by the amount of such deduc-
tion before computing the amount otherwise al-
lowable as a depreciation deduction under this 
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chapter for such taxable year and any subse-
quent taxable year. 
‘‘(2) QUALIFIED COAL-TO-LIQUID PLANT PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
coal-to-liquid plant property’ means property of 
a character subject to the allowance for depre-
ciation— 
‘‘(i) which is part of a commercial- 
scale project that converts coal to 1 or 
more liquid or gaseous transportation fuel 
that demonstrates the capture, and seques-
tration or disposal or use of, the carbon di-
oxide produced in the conversion process, 
and that, on the basis of carbon dioxide se-
questration plan prepared by the applicant, 
is certified by the Administrator of the En-
vironmental Protection Agency, in con-
sultation with the Secretary of Energy, as 
producing fuel with life cycle carbon diox-
ide emissions at or below the average life- 
cycle carbon dioxide emissions for the same 
type of fuel produced at traditional petro-
leum based facilities with similar annual 
capacities, 
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‘‘(ii) which is used in the United 
States solely to produce coal-to-liquid fuels, 
‘‘(iii) the original use of which com-
mences with the taxpayer after the date of 
the enactment of this subsection, 
‘‘(iv) which has a nameplate capacity 
of 30,000 barrels per day production of 
coal-to-liquid fuels, 
‘‘(v) which is acquired by the taxpayer 
by purchase (as defined in section 179(d)) 
after the date of the enactment of this sub-
section, but only if no written binding con-
tract for the acquisition was in effect on or 
before the date of the enactment of this 
subsection, and 
‘‘(vi) which is placed in service by the 
taxpayer before January 1, 2013. 
‘‘(B) EXCEPTIONS.— 
‘‘(i) 
ALTERNATIVE
DEPRECIATION 
PROPERTY.—Such term shall not include 
any 
property 
described 
in 
section 
168(k)(2)(D)(i). 
‘‘(ii) TAX-EXEMPT
BOND-FINANCED 
PROPERTY.—Such term shall not include 
any property any portion of which is fi-
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nanced with the proceeds of any obligation 
the interest on which is exempt from tax 
under section 103. 
‘‘(iii) ELECTION OUT.—If a taxpayer 
makes an election under this subparagraph 
with respect to any class of property for 
any taxable year, this subsection shall not 
apply to all property in such class placed 
in service during such taxable year. 
‘‘(3) SPECIAL
RULES.—For purposes of this 
subsection, rules similar to the rules of subpara-
graph (E) of section 168(k)(2) shall apply, except 
that such subparagraph shall be applied— 
‘‘(A) by substituting ‘the date of the enact-
ment of subsection (l)’ for ‘December 31, 2007’ 
each place it appears therein, 
‘‘(B) by substituting ‘January 1, 2013’ for 
‘January 1, 2010’ in clause (i) thereof, and 
‘‘(C) by substituting ‘qualified coal-to-liq-
uid plant property’ for ‘qualified property’ in 
clause (iv) thereof. 
‘‘(4) ALLOWANCE AGAINST ALTERNATIVE MIN-
IMUM TAX.—For purposes of this subsection, rules 
similar to the rules of section 168(k)(2)(G) shall 
apply. 
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‘‘(5) RECAPTURE.—For purposes of this sub-
section, rules similar to the rules under section 
179(d)(10) shall apply with respect to any qualified 
coal-to-liquid plant property which ceases to be 
qualified coal-to-liquid plant property.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to property placed in service 
after the date of the enactment of this Act, in taxable 
years ending after such date. 
SEC. 1103. DEDICATED ETHANOL PIPELINES TREATED AS 
15-YEAR PROPERTY. 
(a) IN GENERAL.—Section 168(e)(3)(E) of the Inter-
nal Revenue Code of 1986 (defining 15-year property), is 
amended by striking ‘‘and’’ at the end of clause (viii), by 
striking the period at the end of clause (ix) and by insert-
ing ‘‘, and’’, and by adding at the end the following new 
clause: 
‘‘(x) any dedicated ethanol distribu-
tion line the original use of which com-
mences with the taxpayer after August 1, 
2007, and which is placed in service before 
January 1, 2013.’’. 
(b) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) of such Code (relating to special rule 
for certain property assigned to classes) is amended by 
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inserting after the item relating to subparagraph (E)(ix) 
the following new item: 
‘‘(E)(x) ...............................................................................................
35’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to property placed in service 
after August 1, 2008. 
(2) EXCEPTION.—The amendments made by 
this section shall not apply to any property with re-
spect to which the taxpayer or related party has en-
tered into a binding contract for the construction 
thereof on or before August 1, 2009, or, in the case 
of self-constructed property, has started construction 
on or before such date. 
SEC. 1104. CREDIT FOR POLLUTION ABATEMENT EQUIP-
MENT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 45Q the fol-
lowing new section: 
‘‘SEC. 45R. CREDIT FOR POLLUTION ABATEMENT EQUIP-
MENT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the pollution abatement equipment credit for any taxable 
year is an amount equal to 30 percent of the costs of any 
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qualified pollution abatement equipment property placed 
in service by the taxpayer during the taxable year. 
‘‘(b) LIMITATION.—The credit allowed under sub-
section (a) for any taxable year with respect to any quali-
fied pollution abatement equipment property shall not ex-
ceed— 
‘‘(1) $50,000,000 in the case of a property of 
a character subject an allowance for depreciation 
provided in section 167, and 
‘‘(2) $30,000,000 in any other case. 
‘‘(c) QUALIFIED POLLUTION ABATEMENT EQUIP-
MENT PROPERTY.—For purposes of this section, the term 
‘qualified pollution abatement equipment property’ means 
pollution abatement equipment— 
‘‘(1) which is part of a unit or facility which ei-
ther— 
‘‘(A) utilizes technologies that meet rel-
evant Federal and State clean air requirements 
applicable to the unit or facility, including being 
adequately demonstrated for purposes of section 
111 of the Clean Air Act (42 U.S.C. 7411), 
achievable for purposes of section 169 of that 
Act (42 U.S.C. 7479), or achievable in practice 
for purposes of section 171 of that Act (42 
U.S.C. 7501), or 
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‘‘(B) utilizes equipment or processes that 
exceed relevant Federal or State clean air re-
quirements applicable to the unit or facility by 
achieving greater efficiency or environmental 
performance, 
‘‘(2) which is installed on a voluntary basis and 
not as a result of an agreement with a Federal or 
State agency or required as a decree from a judicial 
decision, and 
‘‘(3) with respect to which an election under 
section 169 is not in effect.’’. 
(b) CREDIT TREATED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph (34), by strik-
ing the period at the end of paragraph (35) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
‘‘(36) the pollution abatement equipment credit 
determined under section 45R(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 45Q the following new item: 
‘‘Sec. 45R. Credit for pollution abatement equipment.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures made after the 
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date of the enactment of this Act, in taxable years ending 
after such date. 
SEC. 1105. MODIFICATIONS RELATING TO CLEAN RENEW-
ABLE ENERGY BONDS. 
(a) CLEAN RENEWABLE ENERGY BOND.—Paragraph 
(1) of section 54(d) of the Internal Revenue Code of 1986 
(defining clean renewable energy bond) is amended— 
(1) in subparagraph (A), by striking ‘‘pursu-
ant’’ and all that follows through ‘‘subsection 
(f)(2)’’, 
(2) in subparagraph (B), by striking ‘‘95 per-
cent or more of the proceeds’’ and inserting ‘‘90 per-
cent or more of the net proceeds’’, and 
(3) in subparagraph (D), by striking ‘‘sub-
section (h)’’ and inserting ‘‘subsection (g)’’. 
(b) QUALIFIED PROJECT.—Subparagraph (A) of sec-
tion 54(d)(2) of such Code (defining qualified project) is 
amended to read as follows: 
‘‘(A) IN
GENERAL.—The term ‘qualified 
project’ means any qualified facility (as deter-
mined under section 45(d) without regard to 
paragraphs (8) and (10) thereof and to any 
placed in service requirement) owned by a 
qualified borrower and also without regard to 
the following: 
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‘‘(i) In the case of a qualified facility 
described in section 45(d)(9) (regarding in-
cremental hydropower production), any de-
termination of incremental hydropower 
production and related calculations shall be 
determined by the qualified borrower based 
on a methodology that meets Federal En-
ergy Regulatory Commission standards. 
‘‘(ii) In the case of a qualified facility 
described in section 45(d)(9) (regarding 
hydropower production), the facility need 
not be licensed by the Federal Energy 
Regulation Commission if the facility, 
when constructed, will meet Federal En-
ergy Regulatory Commission licensing re-
quirements and other applicable environ-
mental, licensing, and regulatory require-
ments.’’. 
(c) REIMBURSEMENT.—Subparagraph (C) of section 
54(d)(2) of such Code (relating to reimbursement) is 
amended to read as follows: 
‘‘(C) REIMBURSEMENT.—For purposes of 
paragraph (1)(B), proceeds of a clean renew-
able energy bond may be issued to reimburse a 
qualified borrower for amounts paid after the 
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date of the enactment of this subparagraph in 
the same manner as proceeds of State and local 
government obligations the interest upon which 
is exempt from tax under section 103.’’. 
(d) CHANGE IN USE.—Subparagraph (D) of section 
54(d)(2) of such Code (relating to treatment of changes 
in use) is amended by striking ‘‘or qualified issuer’’. 
(e) MAXIMUM TERM.—Paragraph (2) of section 
54(e) of such Code (relating to maximum term) is amend-
ed by striking ‘‘without regard to the requirements of sub-
section (1)(6) and’’. 
(f) REPEAL OF LIMITATION ON AMOUNT OF BONDS 
DESIGNATED.—Section 54 of such Code is amended by 
striking subsection (f) (relating to repeal of limitation on 
amount of bonds designated). 
(g) SPECIAL
RULES
RELATING
TO
EXPENDI-
TURES.—Subsection (h) of section 54 of such Code (relat-
ing to special rules relating to expenditures) is amended— 
(1) in paragraph (1)(A), by striking ‘‘95 per-
cent of the proceeds’’ and inserting ‘‘90 percent of 
the net proceeds’’, 
(2) in paragraph (1)(B)— 
(A) by striking ‘‘10 percent of the pro-
ceeds’’ and inserting ‘‘5 percent of the net pro-
ceeds’’, and 
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(B) by striking ‘‘the 6-month period begin-
ning on’’ both places it appears and inserting 
‘‘1 year of’’, 
(3) in paragraph (1)(C), by inserting ‘‘net’’ be-
fore ‘‘proceeds’’, and 
(4) in paragraph (3), by striking ‘‘95 percent of 
the proceeds’’ and inserting ‘‘90 percent of the net 
proceeds’’. 
(h) REPEAL OF SPECIAL RULES RELATING TO ARBI-
TRAGE.—Section 54 of such Code is amended by striking 
subsection (i) (relating to repeal of special rules relating 
to arbitrage). 
(i) PUBLIC POWER ENTITY.—Subsection (j) of sec-
tion 54 of such Code (defining cooperative electric com-
pany; qualified energy tax credit bond lender; govern-
mental body; qualified borrower) is amended— 
(1) by redesignating paragraphs (4) and (5) as 
paragraphs (5) and (6), respectively, 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) PUBLIC POWER ENTITY.—The term ‘public 
power entity’ means a State utility with a service ob-
ligation, as such terms are defined in section 217 of 
the Federal Power Act (as in effect on the date of 
enactment of this paragraph).’’, 
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(6), and (7), respectively, and by inserting after paragraph 
(1) the following new paragraphs: 
‘‘(2) NET PROCEEDS.—The term ‘net proceeds’ 
means, with respect to an issue, the proceeds of such 
issue reduced by amounts in a reasonably required 
reserve or replacement fund. 
‘‘(3) LIMITATION ON AMOUNT IN RESERVE OR 
REPLACEMENT FUND WHICH MAY BE FINANCED BY 
ISSUE.—A bond issued as part of an issue shall not 
be treated as a clean renewable energy bond if the 
amount of the proceeds from the sale of such issue 
which is part of any reserve or replacement fund ex-
ceeds 10 percent of the proceeds of the issue (or 
such higher amount which the issuer establishes is 
necessary to the satisfaction of the Secretary).’’. 
(l) OTHER SPECIAL RULES.—Subsection (l) of sec-
tion 54 of such Code (relating to other definitions and spe-
cial rules), as amended by subsections (j) and (k), is 
amended by adding at the end the following new para-
graphs: 
‘‘(8) CREDITS
MAY
BE
SEPARATED.—There 
may be a separation (including at issuance) of the 
ownership of a clean renewable energy bond and the 
entitlement to the credit under this section with re-
spect to such bond. In case of any such separation, 
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the credit under this section shall be allowed to the 
person who on the credit allowance date holds the 
instrument evidencing the entitlement to the credit 
and not to the holder of the bond. 
‘‘(9) TREATMENT FOR ESTIMATED TAX PUR-
POSES.—Solely for the purposes of sections 6654 
and 6655, the credit allowed by this section to a tax-
payer by reason of holding a qualified energy tax 
credit bond on a credit allowance date (or the credit 
in the case of a separation as provided in paragraph 
(8)) shall be treated as if it were a payment of esti-
mated tax made by the taxpayer on such date. 
‘‘(10) CARRYBACK AND CARRYFORWARD OF UN-
USED CREDITS.—If the sum of the credit exceeds 
the limitation imposed by subsection (c) for any tax-
able year, any credits may be applied in a manner 
similar to the rules set forth in section 39.’’. 
(m) TERMINATION.—Subsection (m) of section 54 of 
such Code (relating to termination) is amended by striking 
‘‘2008’’ and inserting ‘‘2013’’. 
(n) CLERICAL REDESIGNATIONS.—Section 54 of such 
Code, as amended by the preceding provisions of this sec-
tion, is amended by redesignating subsections (g), (h), (j), 
(k), (l), and (m) as subsections (f), (g), (h), (i), (j), and 
(k), respectively. 
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(o) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
SEC. 1106. EXTENSION OF RENEWABLE ENERGY PRODUC-
TION TAX CREDIT. 
(a) IN GENERAL.—Section 45 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘10-year period beginning on 
the date the facility was originally placed in service,’’ 
in subsection (a)(2)(A)(ii) and inserting ‘‘5-year pe-
riod beginning on the date the facility was originally 
placed in service,’’, 
(2) by striking ‘‘in subsection (a)(2)(A)(ii).’’ in 
subsection (b)(4)(B)(i) and inserting ‘‘beginning on 
the date the facility was originally placed in serv-
ice.’’, 
(3) by striking ‘‘in subsection (a)(2)(A)(ii).’’ in 
subsection (b)(4)(B)(ii) and inserting ‘‘beginning on 
the date the facility was originally placed in serv-
ice.’’, and 
(4) by striking ‘‘January 1, 2009’’ each place 
it appears in subsection (d) and inserting ‘‘January 
1, 2020’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
Subtitle C—Repeal of Federal 
Purchasing Requirement 
SEC. 1201. REPEAL OF FEDERAL PURCHASING REQUIRE-
MENT. 
Section 526 of the Energy Independence and Security 
Act of 2007 is repealed. 
Subtitle D—Renewable 
Technologies 
SEC. 1301. PILOT PROJECT FOR DEVELOPING SOLAR EN-
ERGY ON FEDERAL LANDS. 
(a) IN GENERAL.—The Secretary of the Interior shall 
carry out in accordance with this section a pilot project 
for the leasing of Federal lands for the advancement, de-
velopment, assessment, installation, and operation of com-
mercial photovoltaic and concentrating solar power energy 
systems. 
(b) IDENTIFICATION OF LANDS FOR LEASING.— 
(1) LANDS SELECTION.—For purposes of this 
section, the Secretary of the Interior, acting through 
the Director of the Bureau of Land Management 
and in consultation with the Secretary of Energy, 
shall— 
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(A) identify lease sites of Federal lands 
under the jurisdiction of the Bureau of Land 
Management in the States of Arizona, Cali-
fornia, New Mexico, Nevada, and Utah, that 
are suitable and feasible for the installation and 
operation of photovoltaic and concentrating 
solar power energy systems under the pilot 
project, subject to valid existing rights; and 
(B) incorporate solar energy development 
under the pilot project into the relevant agency 
land use and resource management plans or 
equivalent plans for the lands identified under 
subparagraph (A). 
(2) MINIMUM
AND
MAXIMUM
ACREAGE
OF 
SITES.—Each individual lease site identified under 
paragraph (1)(A) shall be a minimum of 1280 acres 
and shall not exceed 12,800 acres. 
(3) LANDS RELEASED FOR LEASING.—The Sec-
retary shall release for leasing under the pilot 
project lease sites identified under paragraph (1), in 
acreages that meet the following annual milestones: 
(A) By 2010, 79,012 acres. 
(B) By 2011, 316,049 acres. 
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(4) LANDS
NOT
INCLUDED.—The following 
Federal lands shall not be included within the pilot 
project: 
(A) Components of the National Land-
scape Conservation System. 
(B) Wilderness and Wilderness Study 
Areas. 
(C) Wild and Scenic Rivers. 
(D) National Scenic and Historic Trails. 
(E) Monuments. 
(F) Resource Natural Areas. 
(c) REPORT.—The Secretary shall report to the Con-
gress by not later than December 31, 2013, regarding the 
results of the pilot project and the viability of leasing Bu-
reau of Land Management lands for solar power energy 
production. 
SEC. 1302. THREE-YEAR DEPRECIATION FOR SOLAR AND 
FUEL CELL PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
168(e)(3) of the Internal Revenue Code of 1986 (defining 
3-year property) is amended by striking ‘‘and’’ at the end 
of clause (ii), by striking the period at the end of clause 
(iii) and inserting a comma, and by inserting after clause 
(iii) the following: 
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‘‘(iv) any property which is described 
in clause (i) or (ii) of section 48(a)(3)(A) 
(relating to solar), or would be so de-
scribed if the last sentence of such section 
did not apply to such clauses, and 
‘‘(v) any property which is described 
in paragraph (1) of section 48(c) (defining 
qualified fuel cell property).’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
168(e)(3)(B)(vi)(I) of such Code is amended by inserting 
‘‘(other than (i) or (ii) thereof and so much of clause (iv) 
thereof as relates to qualified fuel cell property)’’ after 
‘‘subparagraph (A)’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service on 
or after December 31, 2009. 
SEC. 1303. EXTENSION OF CREDIT FOR ELECTRICITY PRO-
DUCED FROM WIND AND BIOMASS. 
(a) WIND.—Paragraph (1) of section 45(d) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘Jan-
uary 1, 2013’’ and inserting ‘‘January 1, 2018’’. 
(b) BIOMASS.—Paragraphs (2) and (3) of section 
45(d) of such Code is amended by striking ‘‘January 1, 
2014’’ each place it appears and inserting ‘‘January 1, 
2019’’. 
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(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. 
SEC. 1304. NUCLEAR, HYDROPOWER, AND BIOMASS DE-
FINED AS RENEWABLE. 
For any public law after the enactment of the Amer-
ican Energy Innovation Act, any requirement that a per-
centage our total electrical supply must come from renew-
able sources, or if a Renewable Energy Portfolio is en-
acted, for purposes of that law, nuclear energy, biomass, 
hydrokinetic, and hydroelectircty shall be defined as re-
newable. 
SEC. 1305. PERMANENT EXTENSION OF THE CREDIT FOR 
NONBUSINESS ENERGY PROPERTY AND THE 
CREDIT FOR GAS PRODUCED FROM BIOMASS 
AND 
FOR 
SYNTHETIC 
FUELS 
PRODUCED 
FROM COAL. 
(a) CREDIT FOR NONBUSINESS ENERGY PROPERTY 
MADE PERMANENT.— 
(1) IN GENERAL.—Section 25C of the Internal 
Revenue Code of 1986 is amended by striking sub-
section (g). 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to property placed in 
service after December 31, 2008. 
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(b) CREDIT FOR GAS PRODUCED FROM BIOMASS 
AND
FOR SYNTHETIC FUELS PRODUCED FROM COAL 
MADE PERMANENT.— 
(1) IN GENERAL.—Subparagraph (B) of section 
45K(f)(1) of such Code is amended to read as fol-
lows: 
‘‘(B) if such facility is originally placed in 
service after December 31, 1992, paragraph (2) 
of subsection (e) shall not apply.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to fuel sold after De-
cember 31, 2008. 
SEC. 1306. ALGAE-BASED FUELS PARITY. 
(a) WITH ALCOHOL, ETC, USED AS FUEL.—Section 
40(b) of the Internal Revenue Code is amended by insert-
ing after paragraph (6) the following: 
‘‘(7) ALGAE-BASED BIOFUEL CREDIT.— 
‘‘(A) IN
GENERAL.—For the purpose of 
this section, algae-based biofuels shall be treat-
ed in the same manner as cellulosic biofuel. 
‘‘(B) DEFINITIONS.—For purposes of sub-
paragraph (A)— 
‘‘(i) the term ‘algae-based fuel’ means 
a liquid fuel derived from the biomass of 
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algal organisms that can replace fuel de-
rived from petroleum, and 
‘‘(ii) the term ‘algal organisms’ means 
single or multi-cellular organisms which 
are inherently aquatic and classified as 
non-vascular plants, which include (i) 
microalgae, 
(ii) 
blue-green 
algae 
(cyanobacteria), and (iii) macroalgae (sea-
weeds).’’. 
(b) WITH RENEWABLE DIESEL.—Section 40A of 
such Code is amended by inserting after paragraph (4) 
the following: 
‘‘(5) ALGAE-BASED BIOFUEL.— 
‘‘(A) IN GENERAL.—Except as provided in 
the last 3 sentences of paragraph (3), the term 
‘renewable diesel’ shall include algae-based 
biofuels. 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) the term ‘algae-based fuel’ means 
a liquid fuel derived from the biomass of 
algal organisms that can replace fuel de-
rived from petroleum, and 
‘‘(ii) the term ‘algal organisms’ means 
single or multi-cellular organisms which 
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are inherently aquatic and classified as 
non-vascular plants, which include (i) 
microalgae, 
(ii) 
blue-green 
algae 
(cyanobacteria), and (iii) macroalgae (sea-
weeds).’’. 
(c) BONUS DEPRECIATION FOR ALGAE-BASED FUEL 
EQUIPMENT.—Subsection (l) of section 168 of such Code 
is amended by inserting after paragraph (8) the following: 
‘‘(9) ALGAE-BASED FUEL PLANT PROPERTY.— 
‘‘(A) IN
GENERAL.—For the purpose of 
this section, qualified algae-based fuel plant 
property equipment shall be treated in the same 
manner as qualified cellulosic biofuel plant 
property. 
‘‘(B) DEFINITIONS.—For purposes of sub-
paragraph (A)— 
‘‘(i) QUALIFIED
ALGAE-BASED
FUEL 
PLANT
PROPERTY.—The term ‘qualified 
algae-based fuel plant property’ means 
property of a character subject to the al-
lowance for depreciation— 
‘‘(I) which is used in the United 
States solely to produce algae-based 
fuel, 
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‘‘(II) the original use of which 
commences with the taxpayer after 
the date of the enactment of this 
paragraph, 
‘‘(III) which is acquired by the 
taxpayer by purchase after the date of 
the enactment of this paragraph, but 
only if no written binding contract for 
the acquisition was in effect on or be-
fore the date of the enactment of this 
paragraph, and 
‘‘(IV) which is placed in service 
by the taxpayer before January 1, 
2017. 
‘‘(ii) ALGAE-BASED FUEL.—The term 
‘algae-based fuel’ means a liquid fuel de-
rived from the biomass of algal organisms 
that can replace fuel derived from petro-
leum. 
‘‘(iii) ALGAL ORGANISMS.—The term 
‘algal organisms’ means single or multi-cel-
lular organisms which are inherently 
aquatic and classified as non-vascular 
plants, which include (i) microalgae, (ii) 
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blue-green algae (cyanobacteria), and (iii) 
macroalgae (seaweeds).’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Subtitle A—Rewarding Innovation 
in Technology 
SEC. 1401. INCREASE IN ALTERNATIVE SIMPLIFIED RE-
SEARCH CREDIT. 
Subparagraph (A) of section 41(c)(5) of the Internal 
Revenue Code of 1986 (relating to election of alternative 
simplified credit) is amended by striking ‘‘14 percent (12 
percent in the case of taxable years ending before January 
1, 2009)’’ and inserting ‘‘20 percent’’. 
SEC. 1402. RESEARCH AND EXPERIMENTATION CREDIT 
PERMANENT. 
(a) IN GENERAL.—Section 41 of the Internal Rev-
enue Code of 1986 is amended by striking subsection (h). 
(b) CONFORMING AMENDMENT.—Paragraph (1) of 
section 45C(b) of such Code is amended by striking sub-
paragraph (D). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2009. 
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SEC. 1403. ALTERNATIVE FUEL VEHICLE INNOVATION 
PRIZE. 
(a) IN GENERAL.—The Secretary shall carry out a 
program to be referred to as the ‘‘Alternative Fuel Vehicle 
Innovation Prize’’ to competitively award cash prizes to 
eligible contestants in conformity with this Act to advance 
the research, development, demonstration, and commercial 
application of alterative fuel vehicles. 
(b) ADVERTISING AND SOLICITATION OF COMPETI-
TORS.— 
(1) ADVERTISING.—The Secretary shall widely 
advertise prize competitions to encourage broad par-
ticipation in the program carried out under sub-
section (a). 
(2) ANNOUNCEMENT THROUGH FEDERAL REG-
ISTER NOTICE.—The Secretary shall announce each 
prize competition by publishing a notice in the Fed-
eral Register. This notice shall include the subject of 
the competition, the duration of the competition, the 
eligibility requirements for participation in the com-
petition, the process for participants to register for 
the competition, the amount of the prize, and the 
criteria for awarding the prize. 
(c) PRIZES; SELECTION CRITERIA.— 
(1) GRAND PRIZE.— 
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(A) IN
GENERAL.—There shall be one 
grand prize of $10,000,000,000. 
(B) PROTOTYPE REQUIREMENT.—In order 
to be eligible to receive the grand prize under 
this section, an eligible contestant must produce 
a prototype of an alternative fuel vehicle. 
(C) SELECTION CRITERIA.—The Secretary 
shall develop, in consultation with the Secretary 
of Transportation and the Director of the Na-
tional Science Foundation, criteria on which to 
select the grand prize winner. Such criteria 
shall include, at a minimum, the following fac-
tors: 
(i) The extent to which the prototype 
will reduce the reliance of the United 
States on foreign sources of energy. 
(ii) The reduction in fuel costs of op-
erating the prototype compared to a simi-
lar non-alternative fuel vehicle. 
(iii) The extent to which the prototype 
meets or exceeds Federal safety standards. 
(iv) Whether the prototype has a fuel 
economy of at least 100 miles per gallon. 
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(v) The extent to which the prototype 
limits hazardous emissions compared to a 
comparable non-alternative fuel vehicle. 
(vi) The possibility of wide commercial 
application, including the production of ve-
hicles that are not hindered by lack of re-
fueling infrastructure. 
(vii) The estimated cost of the proto-
type, if it were mass-produced, and wheth-
er such cost is equivalent to the cost of a 
comparable non-alternative fuel vehicle. 
(viii) Whether the prototype could be 
mass-produced in the United States. 
(D) DEADLINE
FOR
AWARDING
GRAND 
PRIZE.—The Secretary shall set a deadline of 
not later than 5 years after the date of the en-
actment of this Act for awarding the grand 
prize. 
(2) ADDITIONAL PRIZES.— 
(A) IN
GENERAL.—The Secretary may 
choose to award no more than 5 additional 
prizes, with such additional prizes having a 
total 
combined 
value 
of 
no 
more 
than 
$100,000,000. 
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(B) SELECTION
CRITERIA.—Winners of 
additional prizes shall be selected based on their 
demonstration of— 
(i) Substantial advancements in spe-
cific areas of alternative vehicle tech-
nologies, components, or systems; or 
(ii) transformational changes in tech-
nology. 
(C) DEADLINE
FOR
AWARDING
ADDI-
TIONAL
PRIZES.—The Secretary shall set a 
deadline of not later than 5 years after the date 
of the enactment of this Act for awarding any 
additional prizes. 
(d) JUDGING.— 
(1) IN GENERAL.—The Secretary shall appoint 
5 individuals to serve as judges for the purpose of 
selecting the prize winners under this section. The 
judges shall select the grand prize winner based on 
the criteria developed under subsection (c)(1)(C) and 
shall select any additional prize winners based on 
the criteria described under subsection (c)(2)(B). 
(2) JUDGE REQUIREMENTS.—In order to be ap-
pointed as a judge, an individual may not have a fi-
nancial interest in any contestant and may not be an 
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employee, officer, director, agent, or family member 
of any contestant. 
(e) REPORT.—Not later than 60 days after all prizes 
are awarded under this section, the Secretary shall trans-
mit a report to the Congress containing— 
(1) a list of award recipients; 
(2) a description of the technologies developed 
by the award recipients; and 
(3) a description of the actions being taken to-
ward the commercial application of the technologies 
developed by the award recipients. 
(f) INTELLECTUAL PROPERTY.—The Federal Gov-
ernment shall not, by virtue of offering or awarding a 
prize under this section, be entitled to any intellectual 
property rights derived as a consequence of, or in direct 
relation to, the participation by a participant in a competi-
tion authorized by this section. This subsection shall not 
be construed to prevent the Federal Government from ne-
gotiating a license for the use of intellectual property de-
veloped for a prize competition under this section. The 
Federal Government may seek assurances that tech-
nologies for which prizes are awarded under this section 
are offered for commercialization in the event an award 
recipient does not take, or is not expected to take within 
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a reasonable time, effective steps to achieve practical ap-
plication of the technology. 
(g) WAIVER OF LIABILITY.—The Secretary may re-
quire participants to waive claims against the Federal 
Government for any injury, death, damage, or loss of 
property, revenue, or profits arising from the participants’ 
participation in a competition under this section. The Sec-
retary shall give notice of any waiver required under this 
section in the notice required by subsection (b)(2). 
(h) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized such sums as may be necessary to carry 
out the provisions of this section. 
Subtitle B—Improve National Grid 
Efficiency 
SEC. 1501. INCOME AND GAINS FROM ELECTRICITY TRANS-
MISSION SYSTEMS TREATED AS QUALIFYING 
INCOME FOR PUBLICLY TRADED PARTNER-
SHIPS. 
(a) IN GENERAL.—Section 7704(d)(1) of the Inter-
nal Revenue Code of 1986 (defining qualifying income) is 
amended by redesignating subparagraphs (F) and (G) as 
subparagraphs (G) and (H), respectively, and by inserting 
after subparagraph (E) the following new subparagraph: 
‘‘(F) income and gains from the trans-
mission of electricity at 69 or more kilovolts 
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through any property the original use of which 
commences after December 31, 2006,’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act, in taxable years ending after such date. 
SEC. 1502. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR 
DEPRECIATION OF QUALIFIED SMART ELEC-
TRIC METERS. 
(a) IN GENERAL.—Section 168(e)(3)(B) of the Inter-
nal Revenue Code of 1986 (defining 5-year property) is 
amended by striking ‘‘and’’ at the end of clause (vi), by 
striking the period at the end of clause (vii) and inserting 
‘‘, and’’, and by inserting after clause (vii) the following 
new clause: 
‘‘(viii) any qualified smart electric 
meter.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
168(e)(3)(D) of such Code is amended by striking clause 
(iii) and redesignating clause (iv) as clause (iii). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service in 
taxable years ending after the date of the enactment of 
this Act. 
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Subtitle C—Regulatory Burdens 
SEC. 1601. GREENHOUSE GAS REGULATION UNDER CLEAN 
AIR ACT. 
(a) DEFINITION
OF
AIR
POLLUTANT.—Section 
302(g) of the Clean Air Act (42 U.S.C. 7602(g)) is 
amended by adding the following at the end thereof: ‘‘The 
term ‘air pollutant’ shall not include carbon dioxide, water 
vapor, 
methane, 
nitrous 
oxide, 
hydrofluorocarbons, 
perfluorocarbons, or sulfur hexafluoride.’’. 
(b) CLIMATE CHANGE NOT REGULATED BY CLEAN 
AIR ACT.—Nothing in the Clean Air Act shall be treated 
as authorizing or requiring the regulation of climate 
change or global warming. 
SEC. 1602. NEPA JUDICIAL REVIEW. 
Title I of the National Environmental Policy Act of 
1969 (42 U.S.C. 4331 et seq.) is amended by adding at 
the end the following new section: 
‘‘SEC. 106. JUDICIAL REVIEW. 
‘‘(a) IN GENERAL.—Review of a Federal agency’s 
compliance with section 102 of the Act may be filed in 
the circuit in which the petitioner resides or transacts 
business which is directly affected by the action. Any such 
application for review shall be made within ninety days 
from the date of promulgation of the Federal agency’s de-
cision. 
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‘‘(b) PROCEDURES FOR REVIEW.— 
‘‘(1) LIMITATION.—In any judicial action under 
this Act, judicial review of any issues concerning a 
Federal agency’s compliance with section 102 shall 
be limited to the administrative record. Otherwise 
applicable principles of administrative law shall gov-
ern whether any supplemental materials may be con-
sidered by the court. 
‘‘(2) STANDARD.—In considering objections 
raised in any judicial action under this Act, the 
court shall uphold the Federal agency’s decision, 
whether in is the first instance, a revocation, reces-
sion or other action, unless the objecting party can 
demonstrate, on the administrative record, that the 
decision was arbitrary and capricious or otherwise 
not in accordance with law. 
‘‘(3) REMEDY.—If the court finds that the se-
lection of the response action was arbitrary and ca-
pricious or otherwise not in accordance with law, the 
court shall award such relief as the court deems ap-
propriate. 
‘‘(4) PROCEDURAL ERRORS.—In reviewing al-
leged procedural errors, the court may disallow costs 
or damages only if the errors were so serious and re-
lated to matters of such central relevance to the ac-
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tion that the action would have been significantly 
changed had such errors not been made. 
‘‘(c) NOTICE OF ACTIONS.—Whenever any action is 
brought under this Act in a court of the United States 
by a plaintiff other than the United States, the plaintiff 
shall provide a copy of the complaint to the Attorney Gen-
eral of the United States and to the Secretary or Adminis-
trator of the affected Federal agency. 
‘‘(d) INTERVENTION.—In any action commenced 
under this Act, any person may intervene as a matter of 
right when such person claims an interest relating to the 
subject of the action and is so situated that the disposition 
of the action may, as a practical matter, impair or impede 
the person’s ability to protect that interest, unless the Sec-
retary or Administrator shows that the person’s interest 
is adequately represented by existing parties.’’. 
SEC. 1603. REPEAL OF 2007 AMENDMENTS TO RENEWABLE 
FUEL STANDARD. 
Section 211(o) of the Clean Air Act (42 U.S.C. 
7545(o)) is amended to read as provided in section 
1501(a)(2) of the Energy Policy Act of 2005 (Public Law 
109–58; 119 Stat. 594, 1067). 
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SEC. 1604. REPEAL OF REQUIREMENT TO CONSULT RE-
GARDING IMPACTS ON GLOBAL WARMING 
AND POLAR BEAR POPULATION. 
Section 429 of the Department of the Interior, Envi-
ronment, and Related Agencies Appropriations Act, 2009 
(division E of Public Law 111–8) is repealed. 
SEC. 1605. LIGHT BULB CHOICE. 
(b) IN GENERAL.—Effective 6 months after the date 
of enactment of this Act, sections 321 and 322, and the 
items in the table of contents relating thereto, of the En-
ergy Independence and Security Act of 2007 are repealed. 
(c) REVERSION.—When the repeal occurs under 
paragraph (1), the amendments made by sections 321 and 
322 of the Energy Independence and Security Act of 2007 
are hereby repealed, and the laws amended thereby shall 
read as if those amendments had not been enacted. 
SEC. 1606. REPEAL OF DEDUCTION FOR INCOME ATTRIB-
UTABLE TO DOMESTIC PRODUCTION ACTIVI-
TIES. 
(a) IN GENERAL.—Section 199 of the Internal Rev-
enue Code is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) 
Sections 
86(b)(2)(A), 
135(c)(4)(A), 
137(b)(3)(A), 
219(g)(3)(A)(ii), 
221(b)(2)(C), 
246(b)(1), and 469(i)(3)(F) of such Code are each 
amended by striking ‘‘199,’’. 
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(2) Clause (i) of section 163(j)(6)(A) of such 
Code is amended by inserting ‘‘and’’ at the end of 
subclause (II), by striking subclause (III) and by re-
designating subclause (IV) as subclause (III). 
(3) Subparagraph (C) of section 170(b)(2) of 
such Code is amended by striking clause (iv), by re-
designating clause (v) as clause (iv), and by insert-
ing ‘‘and’’ at the end of clause (iii). 
(4) Subsection (d) of section 172 of such Code 
is amended by striking paragraph (7). 
(5) Subsection (a) of section 613 of such Code 
is amended by striking ‘‘and without the deduction 
under section 199’’. 
(6) Paragraph (1) of section 613A(d) of such 
Code is amended by redesignating subparagraphs 
(C), (D), and (E) as subparagraphs (B), (C), and 
(D), respectively, and by striking subparagraph (B). 
(7) Subsection (a) of section 1402 of such Code 
is amended by inserting ‘‘and’’ at the end of para-
graph (15), by striking paragraph (16), and by re-
designating paragraph (17) as paragraph (16). 
(8) The table of sections for part VI of sub-
chapter B of chapter 1 of such Code is amended by 
striking the item relating to section 199. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 1607. HYDRAULIC FRACTURING. 
It is the sense of Congress that— 
(1) the Safe Drinking Water Act was never in-
tended to regulate natural gas and oil well construc-
tion and stimulation; 
(2) this responsibility has been effectively man-
aged by the States reflecting their unique needs; and 
(3) the modification of the Safe Drinking Water 
Act in the Energy Policy Act of 2005 to clarify that 
it was not intended to regulate the use of hydraulic 
fracturing was an appropriate and necessary action 
that should be retained. 
Subtitle D—Judicial Review 
Regarding Energy Projects 
PART 1—JUDICIAL REVIEW REGARDING ENERGY 
PROJECTS 
SEC. 1701. EXCLUSIVE JURISDICTION OVER CAUSES AND 
CLAIMS RELATING TO COVERED ENERGY 
PROJECTS. 
Notwithstanding any other provision of law, the 
United States District Court for the District of Columbia 
shall have exclusive jurisdiction to hear all causes and 
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claims under this title or any other provision of law that 
arise from any covered energy project. 
SEC. 1702. TIME FOR FILING COMPLAINT. 
All causes and claims referred to in section 1701 
must be filed not later than the end of the 60-day period 
beginning on the date of the action or decision by a Fed-
eral official that constitutes the covered energy project 
concerned. Any cause or claim not filed within that time 
period shall be barred. 
SEC. 1703. DISTRICT COURT FOR THE DISTRICT OF COLUM-
BIA DEADLINE. 
(a) IN GENERAL.—All proceedings that are subject 
to section 1701— 
(1) shall be resolved as expeditiously as pos-
sible, and in any event not more than 180 days after 
such cause or claim is filed; and 
(2) shall take precedence over all other pending 
matters before the district court. 
(b) FAILURE TO COMPLY WITH DEADLINE.—If an 
interlocutory or final judgment, decree, or order has not 
been issued by the district court by the deadline described 
under this section, the cause or claim shall be dismissed 
with prejudice and all rights relating to such cause or 
claim shall be terminated. 
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SEC. 1704. ABILITY TO SEEK APPELLATE REVIEW. 
An interlocutory or final judgment, decree, or order 
of the district court in a proceeding that is subject to sec-
tion 1701 may be reviewed by no other court except the 
Supreme Court. 
SEC. 1705. DEADLINE FOR APPEAL TO THE SUPREME 
COURT. 
If a writ of certiorari has been granted by the Su-
preme Court pursuant to section 1704, then— 
(1) the interlocutory or final judgment, decree, 
or order of the district court shall be resolved as ex-
peditiously as possible and in any event not more 
than 180 days after such interlocutory or final judg-
ment, decree, order of the district court is issued; 
and 
(2) all such proceedings shall take precedence 
over all other matters then before the Supreme 
Court. 
SEC. 1706. COVERED ENERGY PROJECT DEFINED. 
In this part, the term ‘‘covered energy project’’ 
means any action or decision by the President or a Federal 
official regarding— 
(1) the leasing of Federal lands (including sub-
merged lands) for the exploration, development, pro-
duction, processing, or transmission of oil, natural 
gas, or any other source or form of energy, including 
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actions and decisions regarding the selection or of-
fering of Federal lands for such leasing; or 
(2) any action under such a lease. 
SEC. 1707. LIMITATION ON APPLICATION. 
This part shall not apply with respect to a covered 
energy project to the extent such application would be in-
consistent with part 2. 
PART 2—PERMITTING REFORM 
SEC. 1711. PURPOSES. 
The purposes of this part are to— 
(1) respond to the Nation’s increased need for 
domestic energy resources; 
(2) facilitate interagency coordination and co-
operation in the processing of permits required to 
support oil and gas use authorization on Federal 
lands, both onshore and on the outer Continental 
Shelf, in order to achieve greater consistency, cer-
tainty, and timeliness in permit processing require-
ments; 
(3) promote process streamlining and increased 
interagency efficiency, including elimination of inter-
agency duplication of effort; 
(4) improve information sharing among agen-
cies and understanding of respective agency roles 
and responsibilities; 
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(5) promote coordination with State agencies 
with expertise and responsibilities related to Federal 
oil and gas permitting decisions; 
(6) promote responsible stewardship of Federal 
oil and gas resources; 
(7) maintain high standards of safety and envi-
ronmental protection; and 
(8) enhance the benefits to Federal permitting 
already occurring as a result of a coordinated and 
timely interagency process for oil and gas permit re-
view for certain Federal oil and gas leases. 
SEC. 1712. FEDERAL COORDINATOR. 
(a) ESTABLISHMENT.—There is established, as an 
independent agency in the Executive Branch, the Office 
of the Federal Oil and Gas Permit Coordinator. 
(b) FEDERAL PERMIT COORDINATOR.—The Office 
shall be headed by a Federal Permit Coordinator, who 
shall be appointed by the President within 90 days after 
the date of enactment of this Act. 
(c) DUTIES.—The Federal Permit Coordinator shall 
be responsible for the following: 
(1) Coordinating the timely completion of all 
permitting activities by Federal agencies, and State 
agencies to the maximum extent practicable, with re-
spect to any oil and gas project under a Federal 
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lease issued pursuant to the mineral leasing laws, ei-
ther onshore or on the outer Continental Shelf. For 
purposes of this part only, such oil and gas projects 
shall include oil shale projects under Federal oil 
shale leases. 
(2) Ensuring the compliance of Federal agen-
cies, and State agencies to the extent they partici-
pate, with this part. 
SEC. 1713. REGIONAL OFFICES AND REGIONAL PERMIT CO-
ORDINATORS. 
(a) REGIONAL OFFICES.—Within 90 days after the 
date of appointment of the Federal Permit Coordinator, 
the Secretary of the Interior (Secretary), in consultation 
with the Federal Permit Coordinator, shall establish re-
gional offices to coordinate review of Federal permits for 
oil and gas projects on Federal lands onshore and on the 
outer Continental Shelf. 
(b) NUMBER
AND LOCATION
OF REGIONAL OF-
FICES.—The number of regional offices shall be estab-
lished by the Secretary in consultation with the Federal 
Permit Coordinator. The Secretary shall ensure that there 
is an adequate number of offices in each region proximate 
to available Federal oil and gas lease tracts onshore and 
on the outer Continental Shelf to meet the demands for 
expeditious permitting in that region. The Secretary shall 
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designate as regional offices under this section all offices 
established under section 365 of the Energy Policy Act 
of 2005 (42 U.S.C. 15924). 
(c) MEMORANDUM OF UNDERSTANDING.—Within 90 
days after the appointment of the Federal Permit Coordi-
nator, the Federal Permit Coordinator, the Secretary, the 
Secretary of Agriculture, the Secretary of Commerce, the 
Secretary of Homeland Security, the Administrator of the 
Environmental Protection Agency, the Secretary of De-
fense, and the head of any other Federal agency with re-
sponsibilities related to permitting of Federal oil and gas 
leases, shall enter into a memorandum of understanding 
(MOU) establishing respective duties and responsibilities 
for staffing the regional offices and accomplishing the ob-
jectives of this section. 
(d) DESIGNATION OF QUALIFIED STAFF.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of signing of the MOU under subsection 
(c), all Federal signatory agencies shall assign to 
each regional office the appropriate employees with 
expertise in the oil and gas permitting issues relat-
ing to that office, including, but not limited, with re-
spect to— 
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(A) consultation and preparation of bio-
logical opinions under section 7 of the Endan-
gered Species Act of 1973 (16 U.S.C. 1536); 
(B) permits under section 404 of Federal 
Water Pollution Control Act (33 U.S.C. 1344); 
(C) regulatory matters under the Clean Air 
Act (42 U.S.C. 7401 et seq.); 
(D) planning under the National Forest 
Management Act of 1976 (16 U.S.C. 472a et 
seq.); 
(E) the preparation of analyses under the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) (NEPA); 
(F) applications for permits to drill under 
the Mineral Leasing Act (30 U.S.C. 181 et 
seq.); and 
(G) exploration plans and development and 
production plans under the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.). 
(2) PREFERENCE
AND
INCENTIVES.—To the 
maximum extent practicable, for purposes of this 
subsection, Federal agencies shall give preference to 
employees volunteering for reassignment to the re-
gional offices, and shall offer incentives to attract 
and retain regional office employees, including, but 
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not limited to, retaining contract employees, rota-
tional assignments, salary incentives of up to 120 
percent of an employee’s existing salary immediately 
prior to reassignment, or any combination of strate-
gies. 
(e) DUTIES.—Each employee assigned under sub-
section (d) shall— 
(1) within 90 days after the date of assignment, 
report to the regional office to which the employee 
is assigned; 
(2) be responsible for all issues relating to the 
jurisdiction of the home office or agency of the em-
ployee; and 
(3) participate as part of the team working on 
proposed oil and gas projects, planning, and environ-
mental analyses. 
(f) CREATION OF AND DELEGATION OF AUTHORITY 
TO REGIONAL PERMIT COORDINATORS.—The Federal 
Permit Coordinator shall appoint a Regional Permit Coor-
dinator to be located within each regional office estab-
lished under this section, with full authority to act on be-
half of the Federal Permit Coordinator. 
(g) ADDITIONAL PERSONNEL.—The Federal Permit 
Coordinator or Regional Permit Coordinators may at any 
time direct that any Federal agency party to the MOU 
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under subsection (c) assign additional staff required to im-
plement the duties of the regional offices. 
SEC. 1714. REVIEWS AND ACTIONS OF FEDERAL AGENCIES. 
(a) SCHEDULES
FOR TIMELY PERMIT DECISION-
MAKING.—Within 10 days after the date on which the Sec-
retary receives any oil and gas permit application or 
amended application, the Secretary shall either notify the 
applicant that the application is complete or notify the ap-
plicant that information is missing and specify the infor-
mation that is required to be submitted for the application 
to be complete. Within 30 days after notifying a permit 
applicant that an application is complete, the Secretary, 
in consultation with the permit applicant as necessary, 
shall determine and inform the Regional Permit Coordi-
nator responsible for that project area whether the pro-
posed permit is a class I, class II, or class III permit. The 
Regional Permit Coordinator shall as soon as possible but 
in no event later than 30 days following the Secretary’s 
determination establish a binding schedule to ensure the 
most expeditious possible review and processing of the re-
quested permit, in accordance with this section. 
(b) PERMIT CLASSES AND SCHEDULES.— 
(1) CLASS I PERMITS.—An oil and gas permit 
shall be designated as a class I permit under this 
section if the permitted activity is of a nature that 
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would typically require preparation of an environ-
mental impact statement under NEPA to inform the 
permitting decision. For such permits, the Regional 
Permit Coordinator shall establish a schedule for 
timely completion of all permit reviews and proc-
essing, not to exceed 30 months. The Regional Per-
mit Coordinator shall make the schedule publicly 
available within 10 days after the schedule is estab-
lished. 
(2) CLASS II PERMITS.—An oil and gas permit 
shall be designated as a class II permit under this 
section if the permitted activity is of a nature that 
would typically be found not to significantly affect 
the quality of the human environment under NEPA. 
For such permits, the Regional Permit Coordinator 
shall establish the most expeditious schedule possible 
for completion of all permit reviews and processing, 
not to exceed 90 days. The Regional Permit Coordi-
nator may grant a one-time extension of that sched-
ule, not to exceed 60 days, upon a good cause show-
ing that additional time is necessary to complete 
permit decisions. Not later than 15 days after estab-
lishing or extending any schedule for a class II per-
mit, the Regional Permit Coordinator shall provide 
the permit applicant with the schedule. 
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(3) CLASS III PERMITS.—Notwithstanding para-
graphs (1) and (2), an oil and gas permit shall be 
designated as a class III permit under this section 
if the permitted activity either qualifies for a statu-
tory or regulatory categorical exclusion under NEPA 
or if the requirements under NEPA and other appli-
cable law for the permit have been completed within 
30 days after the date of a complete application. For 
such permits, the permit shall be issued within 30 
days after the date of a complete application. 
(4) RECLASSIFICATION OF CLASS II PERMIT.— 
If prior to the expiration of the established schedule 
for a class II permit newly discovered information 
indicates that the class II permit will significantly 
affect the quality of the human environment, the 
Secretary may, in consultation with the permit appli-
cant, reclassify the permit as a class I permit under 
paragraph (1), and the Regional Coordinator shall 
establish an amended schedule that complies with 
the provisions of that paragraph. 
(c) REPORTING.—The Regional Permit Coordinators 
shall include data on all schedule timing and compliance 
in their reports to the Federal Permit Coordinator re-
quired under subsection (i), who shall include such data 
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in the report to the President and Congress required 
under subsection (i). 
(d) DISPUTE RESOLUTION.—The Regional Permit 
Coordinator shall resolve all administrative issues that af-
fect oil and gas permit reviews. The Regional Permit Coor-
dinator shall report jointly to the Federal Permit Coordi-
nator and to the head of the relevant action agency, or 
his or her designee, for resolution of any issue regarding 
an oil and gas permit that may result in missing the 
schedule deadlines established pursuant to subsection (b). 
The Regional Permit Coordinators shall include data re-
garding the incidence and resolution of disputes under this 
subsection in their reports to the Federal Permit Coordi-
nator required under subsection (i), who shall include such 
reported data and develop recommendations in the report 
to the President and Congress required under subsection 
(i). 
(e) REMEDIES.—An applicant for a class I permit 
may bring a cause of action to seek expedited mandamus 
review, pursuant to the procedures in section 3207, if a 
Regional Permit Coordinator or the Secretary fails to— 
(1) establish a schedule in accordance with sub-
section (b); 
(2) enforce and ensure completion of reviews 
within schedule deadlines; or 
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(3) take all actions as are necessary and proper 
to avoid jeopardizing the timely completion of the 
entire schedule. 
If an agency fails to complete its review of and issue a 
decision upon a permit within the schedule established by 
the Court pursuant to section 3207(f), that permit shall 
be deemed granted to the applicant. 
(f) PROHIBITION OF CERTAIN TERMS AND CONDI-
TIONS.—No Federal agency may include in any permit, 
right-of-way, or other authorization issued for an oil and 
gas project subject to the provisions of this part, any term 
or condition that may be authorized, but is not required, 
by the provisions of any applicable law, if the Federal Per-
mit Coordinator determines that such term or condition 
would prevent or impair in any significant respect comple-
tion of a permit review within the time schedule estab-
lished pursuant to subsection (b) or would otherwise im-
pair in any significant respect expeditious oil and gas de-
velopment. The Federal Permit Coordinator shall not have 
any authority to impose any terms, conditions, or require-
ments beyond those imposed by any Federal law, agency, 
regulation, or lease term. 
(g) CONSOLIDATED RECORD.—The Federal Permit 
Coordinator, acting through the appropriate Regional Per-
mit Coordinator, with the cooperation of Federal and 
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State administrative officials and agencies, shall maintain 
a complete, consolidated record of all decisions made or 
actions taken by the Federal Permit Coordinator or Re-
gional Permit Coordinator or by any Federal agency with 
respect to any oil and gas permit. 
(h) RELATIONSHIP TO NEPA AND ENERGY POLICY 
ACT OF 2005.— 
(1) Section 390(a) of the Energy Policy Act of 
2005 (42 U.S.C. 15942(a)) is amended— 
(A) by striking ‘‘rebuttable presumption 
that the use of a’’; and 
(B) by striking ‘‘would apply’’. 
(2) Section 17(p) of the Mineral Leasing Act 
(30 U.S.C. 226(p)) is repealed. 
(i) ADDITIONAL POWERS AND RESPONSIBILITIES.— 
(1) REGIONAL
PERMIT
COORDINATOR
RE-
PORTS.—The Regional Permit Coordinators shall 
each submit a report to the Federal Permit Coordi-
nator by December 31 of each year that documents 
each office’s performance in meeting the objectives 
under this part, including recommendations to fur-
ther streamline the permitting process. 
(2) REDIRECTION
OF
PRIORITIES
OR
RE-
SOURCES.—In order to expedite overall permitting 
activity, the Federal Permit Coordinator may redi-
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rect the priority of regional office activities or the al-
location of resources among such offices, and shall 
engage the agencies that are parties to the MOU to 
the extent such adjustments implicate their respec-
tive staffs or resources. 
(3) REPORT TO CONGRESS.—Beginning three 
years after the date of enactment of this Act, the 
Federal Permit Coordinator shall prepare and sub-
mit a report to the President and Congress by April 
15 of each year that outlines the results achieved 
under this part and makes recommendations to the 
President and Congress for further improvements in 
processing oil and gas permits on Federal lands. 
SEC. 1715. STATE COORDINATION. 
The Governor of any State wherein an oil and gas 
operation may require a Federal permit, or the coastline 
of which is in immediate geographic proximity to oil and 
gas operations on the outer Continental Shelf, may be a 
signatory to the MOU for purposes of fulfilling any State 
responsibilities with respect to Federal oil and gas permit-
ting decisions. The Regional Permit Coordinators shall fa-
cilitate and coordinate concurrent State reviews of re-
quested permits for oil and gas projects on the outer Con-
tinental Shelf. 
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SEC. 1716. SAVINGS PROVISION. 
Except as expressly stated, nothing in this part af-
fects— 
(1) the applicability of any Federal or State 
law; or 
(2) any delegation of authority made by the 
head of a Federal agency the employees of which are 
participating in the implementation of this section. 
SEC. 1717. ADMINISTRATIVE AND JUDICIAL REVIEW. 
(a) ADMINISTRATIVE REVIEW.—Any oil and gas per-
mitting decision for Federal lands onshore or on the outer 
Continental Shelf that was issued in accordance with the 
procedures established by this part shall not be subject 
to further administrative review within the respective Fed-
eral agency responsible for that decision, and shall be the 
final decision of that agency for purposes of judicial re-
view. 
(b) EXCLUSIVE JURISDICTION OVER PERMIT DECI-
SIONS.—Only the United States District Court for the 
District of Columbia shall have original jurisdiction over 
any civil action for the review of such a permit decision. 
(c) LIMITATIONS ON CLAIMS.—Notwithstanding any 
other provision of law, any action arising under Federal 
law seeking judicial review of a permit, license, or approval 
issued by a Federal agency for an oil and gas permit sub-
ject to this part shall be barred unless it is filed within 
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90 days of the date of the decision. Nothing in this part 
shall creates a right to judicial review or places any limit 
on filing a claim that a person has violated the terms of 
a permit, license, or approval. 
(d) FILING OF RECORD.—When any civil action is 
brought pursuant to this part, the Federal Permit Coordi-
nator shall immediately prepare for the court a consoli-
dated record. 
(e) EXPEDITED REVIEW.—Any action for judicial re-
view challenging a decision approved pursuant to this sec-
tion shall be set for consideration by not later than 90 
days after the date the action is filed. 
(f) EXPEDITED
MANDAMUS
REVIEW.—Notwith-
standing subsection (e), within 30 days after the filing of 
an action challenging or seeking to enforce an established 
permit review schedule for a class I permit, the court shall 
issue a decision either compelling permit issuance or sanc-
tioning the delay and establishing a new schedule that en-
ables the most expeditious possible completion of pro-
ceedings. In rendering its decision, the court shall review 
whether the agencies subject to the schedule have been 
acting in good faith, whether the permit applicant has 
been cooperating fully with the agencies that are respon-
sible for issuing the requested permits, and any other rel-
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evant matters. The court may issue orders to enforce any 
schedule it establishes under this subsection. 
(g) NO PRIVATE RIGHT OF ACTION.—This part shall 
not be construed to create any additional right, benefit, 
or trust responsibility, substantive or procedural, enforce-
able at law or equity, by a person against the United 
States, its agencies, its officers, or any person. 
(h) FINALITY
OF LEASING DECISIONS.—Notwith-
standing the provisions of any law or regulation to the 
contrary, a decision by the Bureau of Land Management 
or the Minerals Management Service to issue a Final No-
tice of Sale and proceed with an oil and gas lease sale 
pursuant to any mineral leasing law shall not be subject 
to further administrative review within the Department of 
the Interior, and shall be the final decision of the agency 
for purposes of judicial review. 
SEC. 1718. AMENDMENTS TO PUBLICATION PROCESS. 
Section 18 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1344) is amended— 
(1) by amending subsection (c)(2) to read as 
follows: 
‘‘(2) The Secretary shall publish a proposed 
leasing program in the Federal Register, and shall 
submit a copy of such proposed program to the Gov-
ernor of each affected State, for review and com-
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ment. The Governor may solicit comments from 
those executives of local governments in his State 
which he, in his discretion, determines will be af-
fected by the proposed program.’’; 
(2) by striking subsection (c)(3); and 
(3) in subsection (d)(2) by inserting ‘‘final’’ 
after ‘‘proposed’’. 
SEC. 1719. ALASKA OFFSHORE CONTINENTAL SHELF CO-
ORDINATION OFFICE. 
(a) ESTABLISHMENT.—The Secretary of the Interior 
shall establish and maintain, in coordination with the 
Mayor of the North Slope Borough of Alaska, a separate 
office to be known as the Alaska Offshore Continental 
Shelf Coordination Office. 
(b) PURPOSE.—The purpose of the office shall be 
to— 
(1) coordinate the leasing of the outer Conti-
nental Shelf off the coast of Alaska; 
(2) advise persons awarded such leases on local 
conditions and the history of areas affected by devel-
opment of the oil and gas resources of the outer 
Continental Shelf off the coast of Alaska; 
(3) provide to the Committee on Resources of 
the House of Representatives and the Committee on 
Energy and Natural Resources of the Senate annual 
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reports on the status of the coordination between 
such and communities affected by such development; 
(4) collect from residents of the North Slope of 
Alaska information regarding the impacts of such 
development on marine wildlife, coastal habitats, ma-
rine and coastal subsistence resources, and the ma-
rine and coastal environment of Alaska’s North 
Slope region; and 
(5) ensure that the information collected under 
paragraph (3) is submitted to— 
(A) developers of such resources; and 
(B) any appropriate Federal agency. 
Subtitle E—Innovation in Carbon 
Capture and Clean Coal Tech-
nology 
SEC. 1801. COAL-TO-LIQUID FUEL LOAN GUARANTEE PRO-
GRAM. 
(a) ELIGIBLE PROJECTS.—Section 1703(b) of the 
Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is 
amended by adding at the end the following: 
‘‘(11) Large-scale coal-to-liquid facilities (as de-
fined in section 101 of the Coal-to-Liquid Fuel Pro-
motion Act of 2007) that use a feedstock, the major-
ity of which is the coal resources of the United 
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States, to produce not less than 10,000 barrels a 
day of liquid transportation fuel.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) 
is amended by adding at the end the following: 
‘‘(c) COAL-TO-LIQUID PROJECTS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated such sums as are necessary to provide 
the cost of guarantees for projects involving large- 
scale 
coal-to-liquid 
facilities 
under 
section 
1703(b)(11). 
‘‘(2) ALTERNATIVE FUNDING.—If no appropria-
tions are made available under paragraph (1), an eli-
gible applicant may elect to provide payment to the 
Secretary, to be delivered if and at the time the ap-
plication is approved, in the amount of the estimated 
cost of the loan guarantee to the Federal Govern-
ment, as determined by the Secretary. 
‘‘(3) LIMITATIONS.— 
‘‘(A) IN
GENERAL.—No loan guarantees 
shall be provided under this title for projects 
described in paragraph (1) after (as determined 
by the Secretary)— 
‘‘(i) the tenth such loan guarantee is 
issued under this title; or 
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‘‘(ii) production capacity covered by 
such loan guarantees reaches 100,000 bar-
rels per day of coal-to-liquid fuel. 
‘‘(B) INDIVIDUAL PROJECTS.— 
‘‘(i) IN GENERAL.—A loan guarantee 
may be provided under this title for any 
large-scale coal-to-liquid facility described 
in paragraph (1) that produces no more 
than 20,000 barrels of coal-to-liquid fuel 
per day. 
‘‘(ii) NON-FEDERAL
FUNDING
RE-
QUIREMENT.—To be eligible for a loan 
guarantee under this title, a large-scale 
coal-to-liquid facility described in para-
graph (1) that produces more than 20,000 
barrels per day of coal-to-liquid fuel shall 
be eligible to receive a loan guarantee for 
the proportion of the cost of the facility 
that represents 20,000 barrels of coal-to- 
liquid fuel per day of production. 
‘‘(4) REQUIREMENTS.— 
‘‘(A) GUIDELINES.—Not later than 180 
days after the date of enactment of this sub-
section, the Secretary shall publish guidelines 
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for the coal-to-liquids loan guarantee applica-
tion process. 
‘‘(B) APPLICATIONS.—Not later than 1 
year after the date of enactment of this sub-
section, the Secretary shall begin to accept ap-
plications for coal-to-liquid loan guarantees 
under this subsection. 
‘‘(C) DEADLINE.—Not later than 1 year 
from the date of acceptance of an application 
under subparagraph (B), the Secretary shall 
evaluate the application and make final deter-
minations under this subsection. 
‘‘(5) REPORTS TO CONGRESS.—The Secretary 
shall submit to the Committee on Energy and Nat-
ural Resources of the Senate and the Committee on 
Energy and Commerce of the House of Representa-
tives a report describing the status of the program 
under this subsection not later than each of— 
‘‘(A) 180 days after the date of enactment 
of this subsection; 
‘‘(B) 1 year after the date of enactment of 
this subsection; and 
‘‘(C) the dates on which the Secretary ap-
proves the first and fifth applications for coal- 
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to-liquid loan guarantees under this sub-
section.’’. 
SEC. 1802. COAL-TO-LIQUID FACILITIES LOAN PROGRAM. 
(a) DEFINITION OF ELIGIBLE RECIPIENT.—In this 
section, the term ‘‘eligible recipient’’ means an individual, 
organization, or other entity that owns, operates, or plans 
to construct a coal-to-liquid facility that will produce at 
least 10,000 barrels per day of coal-to-liquid fuel. 
(b) ESTABLISHMENT.—The Secretary shall establish 
a program under which the Secretary shall provide loans, 
in a total amount not to exceed $20,000,000, for use by 
eligible recipients to pay the Federal share of the cost of 
obtaining any services necessary for the planning, permit-
ting, and construction of a coal-to-liquid facility. 
(c) APPLICATION.—To be eligible to receive a loan 
under subsection (b), the eligible recipient shall submit to 
the Secretary an application at such time, in such manner, 
and containing such information as the Secretary may re-
quire. 
(d) NON-FEDERAL MATCH.—To be eligible to receive 
a loan under this section, an eligible recipient shall use 
non-Federal funds to provide a dollar-for-dollar match of 
the amount of the loan. 
(e) REPAYMENT OF LOAN.— 
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(1) IN GENERAL.—To be eligible to receive a 
loan under this section, an eligible recipient shall 
agree to repay the original amount of the loan to the 
Secretary not later than 5 years after the date of the 
receipt of the loan. 
(2) SOURCE OF FUNDS.—Repayment of a loan 
under paragraph (1) may be made from any financ-
ing or assistance received for the construction of a 
coal-to-liquid facility described in subsection (a), in-
cluding a loan guarantee provided under section 
1703(b)(11) of the Energy Policy Act of 2005 (42 
U.S.C. 16513(b)(11)). 
(f) REQUIREMENTS.— 
(1) GUIDELINES.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall publish guidelines for the coal-to-liquids 
loan application process. 
(2) APPLICATIONS.—Not later than 1 year 
after the date of enactment of this Act, the Sec-
retary shall begin to accept applications for coal-to- 
liquid loans under this section. 
(g) REPORTS TO CONGRESS.—Not later than each of 
180 days and 1 year after the date of enactment of this 
Act, the Secretary shall submit to the Committee on En-
ergy and Natural Resources of the Senate and the Com-
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mittee on Energy and Commerce of the House of Rep-
resentatives a report describing the status of the program 
under this section. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$200,000,000, to remain available until expended. 
SEC. 1803. ALLOWS FOR 7-YEAR DEPRECIATION FOR 
POWER-PLANTS THAT INSTALL CLEAN COAL 
TECHNOLOGY OR RETRO-FIT PLANTS FOR 
CARBON SEQUESTRATION TECHNOLOGY. 
Any coal fired power plant generating power that ret-
rofits their operation to decrease their carbon output by 
at least 10 percent per year will get a 7-year accelerated 
depreciation credit for property placed in service after De-
cember 31, 2009. 
SEC. 1804. EXTENSION OF 50 CENT PER GALLON ALTER-
NATIVE FUELS EXCISE TAX CREDIT. 
Paragraph (5) of section 6426(d) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘2009’’ and 
inserting ‘‘2019’’ and by striking ‘‘2014’’ and inserting 
‘‘2024’’. 
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SEC. 1805. PROVIDES A 20 PERCENT INVESTMENT TAX 
CREDIT CAPPED AT $200 MILLION TOTAL PER 
CTL PLANT PLACED IN SERVICE BEFORE 
2016. 
The Internal Revenue Service shall treat the syn-
thetic gas produced from coal-to-liquids with the same tax 
treatment as covered by the industrial gasification tax 
credit. 
SEC. 1806. REDUCES RECOVERY PERIOD FOR CERTAIN EN-
ERGY PRODUCTION AND DISTRIBUTION FA-
CILITIES. 
In the case of an individual or business, there shall 
be allowed as a credit against the taxes imposed by sub-
title A of the Internal Revenue Code of 1986 an amount 
equal to 30 percent of the expenditures made by such indi-
vidual or business for energy production and distribution 
facilities. 
SEC. 1807. DOE CLEAN COAL TECHNOLOGY LOAN GUARAN-
TEES AND DIRECT LOANS. 
The Secretary of Energy may provide clean coal tech-
nology loan guarantees and direct loans for the research, 
development, demonstration, and deployment of clean coal 
technology, to build up to five commercial-scale coal-fired 
plants with carbon capture and sequestration capabilities. 
For each such loan guarantee or loan, at least 50 percent 
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of the total cost of the project shall be provided by the 
private sector. 
Subtitle F—Natural Gas 
SEC. 1901. NATURAL GAS VEHICLE RESEARCH, DEVELOP-
MENT, AND DEMONSTRATION PROJECTS. 
(a) IN GENERAL.—The Secretary of Energy shall 
conduct a 5-year program of natural gas vehicle research, 
development, and demonstration. The Secretary shall co-
ordinate with the Administrator of the Environmental 
Protection Agency, as necessary. 
(b) PURPOSE.—The program under this section shall 
focus on— 
(1) the continued improvement and develop-
ment of new, cleaner, more efficient light-duty, me-
dium-duty, and heavy-duty natural gas vehicle en-
gines; 
(2) the integration of those engines into light- 
duty, medium-duty, and heavy-duty natural gas vehi-
cles for onroad and offroad applications; 
(3) expanding product availability by assisting 
manufacturers with the certification of the engines 
or vehicles described in paragraph (1) or (2) to Fed-
eral or California certification requirements and in- 
use emission standards; 
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(4) the demonstration and proper operation and 
use of the vehicles described in paragraph (2) under 
all operating conditions; 
(5) the development and improvement of na-
tionally recognized codes and standards for the con-
tinued safe operation of natural gas vehicles and 
their components; 
(6) improvement in the reliability and efficiency 
of natural gas fueling station infrastructure; 
(7) the certification of natural gas fueling sta-
tion infrastructure to nationally recognized and in-
dustry safety standards; 
(8) the improvement in the reliability and effi-
ciency of onboard natural gas fuel storage systems; 
(9) the development of new natural gas fuel 
storage materials; 
(10) the certification of onboard natural gas 
fuel storage systems to nationally recognized and in-
dustry safety standards; and 
(11) the use of natural gas engines in hybrid 
vehicles. 
(c) CERTIFICATION OF CONVERSION SYSTEMS.—The 
Secretary shall coordinate with the Administrator on 
issues related to streamlining the certification of natural 
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gas conversion systems to the appropriate Federal certifi-
cation requirements and in-use emission standards. 
(d) COOPERATION AND COORDINATION WITH INDUS-
TRY.—In developing and carrying out the program under 
this section, the Secretary shall coordinate with the nat-
ural gas vehicle industry to ensure cooperation between 
the public and the private sector. 
(e) CONDUCT OF PROGRAM.—The program under 
this section shall be conducted in accordance with sections 
3001 and 3002 of the Energy Policy Act of 1992. 
(f) REPORT.—Not later than 2 years after the date 
of enactment of this Act, the Secretary shall provide a re-
port to Congress on the implementation of this section. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary 
$30,000,000 for each of the fiscal years 2010 through 
2014 to carry out this section. 
(h) DEFINITION.—For purposes of this section, the 
term ‘‘natural gas’’ means compressed natural gas, lique-
fied natural gas, biomethane, and mixtures of hydrogen 
and methane or natural gas. 
SEC. 1902. MODIFICATION OF ALTERNATIVE FUEL CREDIT. 
(a) ALTERNATIVE FUEL CREDIT.—Paragraph (5) of 
section 6426(d) of the Internal Revenue Code of 1986 (re-
lating to alternative fuel credit) is amended by inserting 
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‘‘, and December 31, 2027, in the case of any sale or use 
involving compressed or liquefied natural gas)’’ after ‘‘hy-
drogen’’. 
(b) ALTERNATIVE FUEL MIXTURE CREDIT.—Para-
graph (3) of section 6426(d) of such Code is amended by 
inserting ‘‘, and December 31, 2027, in the case of any 
sale or use involving compressed or liquefied natural gas)’’ 
after ‘‘hydrogen’’. 
(c) PAYMENTS RELATING TO ALTERNATIVE FUEL OR 
ALTERNATIVE FUEL MIXTURES.—Paragraph (6) of sec-
tion 6427(e) of such Code is amended— 
(1) in subparagraph (C)— 
(A) by striking ‘‘subparagraph (D)’’ in 
subparagraph (C) and inserting ‘‘subpara-
graphs (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’’, 
(3) by inserting the following: ‘‘or with respect 
to compressed or liquefied natural gas’’ after ‘‘sub-
paragraph (D)’’, and 
(4) by inserting the following new subpara-
graph: 
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‘‘(E) any alternative fuel or alternative fuel 
mixture (as so defined) involving compressed or 
liquefied natural gas.’’. 
(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. 1903. EXTENSION AND MODIFICATION OF ALTER-
NATIVE FUEL VEHICLE CREDIT. 
(a) IN GENERAL.—Paragraph (4) of section 30B(k) 
of the Internal Revenue Code of 1986 (relating to termi-
nation) is amended by inserting ‘‘(December 31, 2027, in 
the case of a vehicle powered by compressed or liquefied 
natural gas)’’ before the period at the end. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to property placed in service 
after the date of the enactment of this Act. 
SEC. 1904. ALLOWANCE OF VEHICLE AND INFRASTRUC-
TURE CREDITS AGAINST REGULAR AND MIN-
IMUM TAX AND TRANSFERABILITY OF CRED-
ITS. 
(a) BUSINESS CREDITS.—Subparagraph (B) of sec-
tion 38(c)(4) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of clause (vii), by 
striking the period at the end of clause (viii) and inserting 
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qualified alternative fuel motor vehicles which are 
capable of being powered by compressed or liquefied 
natural gas— 
‘‘(A) paragraph (2) shall (after the appli-
cation of paragraph (1)) be applied separately 
with respect to such portion, and 
‘‘(B) in lieu of the limitation determined 
under paragraph (2), such limitation shall not 
exceed the excess (if any) of— 
‘‘(i) the sum of the regular tax liabil-
ity (as defined in section 26(b)) plus the 
tentative minimum tax for the taxable 
year, reduced by 
‘‘(ii) the sum of the credits allowable 
under subpart A and sections 27 and 30.’’. 
(2) ALTERNATIVE FUEL VEHICLE REFUELING 
PROPERTIES.—Subsection (d) of section 30C of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(3) SPECIAL RULE RELATING TO CERTAIN AL-
TERNATIVE
FUEL
VEHICLE
REFUELING
PROP-
ERTIES.—In the case of the portion of the credit de-
termined under subsection (a) with respect to refuel-
ing property which is used to store and or dispense 
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compressed or liquefied natural gas and which is at-
tributable to the application of subsection (b)— 
‘‘(A) paragraph (2) shall (after the appli-
cation of paragraph (1)) be applied separately 
with respect to such portion, and 
‘‘(B) in lieu of the limitation determined 
under paragraph (2), such limitation shall not 
exceed the excess (if any) of— 
‘‘(i) the sum of the regular tax liabil-
ity (as defined in section 26(b)) plus the 
tentative minimum tax for the taxable 
year, reduced by 
‘‘(ii) the sum of the credits allowable 
under subpart A and sections 27, 30, and 
the portion of the credit determined under 
section 30B which is attributable to the 
application of subsection (e)(3) thereof.’’. 
(c) CREDITS MAY BE TRANSFERRED.— 
(1) VEHICLE CREDITS.—Subsection (h) of sec-
tion 30B of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(11) TRANSFERABILITY OF CREDIT.—Nothing 
in any law or rule of law shall be construed to limit 
a taxpayer from transferring, through sale and re-
purchase agreement, the credit allowed by this sec-
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tion for qualified alternative fuel motor vehicles 
which are capable of being powered by compressed 
or liquefied natural gas.’’. 
(2) INFRASTRUCTURE CREDIT.—Subsection (e) 
of section 30C of such Code is amended by adding 
at the end the following new paragraph: 
‘‘(6) CREDIT MAY BE TRANSFERRED.—Nothing 
in any law or rule of law shall be construed to limit 
a taxpayer from transferring the credit allowed by 
this section through sale and repurchase agree-
ments.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to property placed in 
service after the date of the enactment of this Act. 
SEC. 1905. CREDIT FOR PRODUCING VEHICLES FUELED BY 
NATURAL GAS OR LIQUIFIED NATURAL GAS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
inserting after section 45Q the following new section: 
‘‘SEC. 45R. PRODUCTION OF VEHICLES FUELED BY NAT-
URAL GAS OR LIQUIFIED NATURAL GAS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of a taxpayer who is a manufacturer of natural 
gas vehicles, the natural gas vehicle credit determined 
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under this section for any taxable year with respect to 
each eligible natural gas vehicle produced by the taxpayer 
during such year is an amount equal to the lesser of— 
‘‘(1) 10 percent of the manufacturer’s basis in 
such vehicle, or 
‘‘(2) $4,000. 
‘‘(b) AGGREGATE CREDIT ALLOWED.—The aggre-
gate amount of credit allowed under subsection (a) with 
respect to a taxpayer for any taxable year shall not exceed 
$200,000,000 reduced by the amount of the credit allowed 
under subsection (a) to the taxpayer (or any predecessor) 
for all prior taxable years. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE NATURAL GAS VEHICLE.—The 
term ‘eligible natural gas vehicle’ means any motor 
vehicle (as defined in section 30(c)(2))— 
‘‘(A) which— 
‘‘(i) is only capable of operating on 
natural gas or liquefied natural gas, or 
‘‘(ii) is capable of operating on com-
pressed or liquefied natural gas and (but 
not in combination with) gasoline or diesel 
fuel, but in no case shall such vehicle have 
an operating range of less than 200 miles 
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on compressed or liquefied natural gas, 
and 
‘‘(B) the final assembly of which is in the 
United States. 
‘‘(2) MANUFACTURER.—The term ‘manufac-
turer’ has the meaning given such term in regula-
tions prescribed by the Administrator of the Envi-
ronmental Protection Agency for purposes of the ad-
ministration of title II of the Clean Air Act (42 
U.S.C. 7521 et seq.). 
‘‘(d) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—Rules similar to the rules 
of subsections (c), (d), and (e) of section 52 shall 
apply. 
‘‘(2) CONTROLLED GROUPS.— 
‘‘(A) IN GENERAL.—All persons treated as 
a single employer under subsection (a) or (b) of 
section 52 or subsection (m) or (o) of section 
414 shall be treated as a single producer. 
‘‘(B) INCLUSION
OF
FOREIGN
CORPORA-
TIONS.—For purposes of subparagraph (A), in 
applying subsections (a) and (b) of section 52 
to this section, section 1563 shall be applied 
without regard to subsection (b)(2)(C) thereof. 
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‘‘(3) VERIFICATION.—No amount shall be al-
lowed as a credit under subsection (a) with respect 
to which the taxpayer has not submitted such infor-
mation or certification as the Secretary, in consulta-
tion with the Secretary of Energy, determines nec-
essary. 
‘‘(e) TERMINATION.—This section shall not apply to 
any vehicle produced after December 31, 2017.’’. 
(b) CREDIT TO BE PART OF BUSINESS CREDIT.— 
Section 38(b) of such Code is amended by striking ‘‘plus’’ 
at the end of paragraph (34), by striking the period at 
the end of paragraph (35) and inserting ‘‘, plus’’, and by 
adding at the end the following: 
‘‘(36) the natural gas vehicle credit determined 
under section 45R(a).’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter 
1 of such Code is amended by inserting after the item 
relating to section 45Q the following new item: 
‘‘Sec. 45R. Production of vehicles fueled by natural gas or liquified natural 
gas.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to vehicles produced after Decem-
ber 31, 2008. 
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TITLE II—CONSERVATION 
Subtitle A—Conservation 
SEC. 2001. PERMANENT EXTENSION OF THE CREDIT FOR 
NONBUSINESS 
ENERGY 
PROPERTY, 
THE 
CREDIT FOR GAS PRODUCED FROM BIOMASS 
AND 
FOR 
SYNTHETIC 
FUELS 
PRODUCED 
FROM COAL, AND THE CREDIT FOR ENERGY 
EFFICIENT APPLIANCES. 
(a) CREDIT FOR NONBUSINESS ENERGY PROPERTY 
MADE PERMANENT.— 
(1) IN GENERAL.—Section 25C of the Internal 
Revenue Code of 1986 is amended by striking sub-
section (g). 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to property placed in 
service after December 31, 2008. 
(b) CREDIT FOR GAS PRODUCED FROM BIOMASS 
AND
FOR SYNTHETIC FUELS PRODUCED FROM COAL 
MADE PERMANENT.— 
(1) IN GENERAL.—Subparagraph (B) of section 
45K(f)(1) of such Code is amended to read as fol-
lows: 
‘‘(B) if such facility is originally placed in 
service after December 31, 1992, paragraph (2) 
of subsection (e) shall not apply.’’. 
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(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to fuel sold after De-
cember 31, 2008. 
(c) EXTENSION OF CREDIT FOR ENERGY EFFICIENT 
APPLIANCES.— 
(1) DISHWASHERS.—Section 45M(b)(1) of such 
Code is amended— 
(A) in subparagraph (A) by striking ‘‘cal-
endar year 2008 or 2009’’ and inserting ‘‘any 
of calendar years 2008 through 2019’’, and 
(B) in subparagraph (B) by striking ‘‘cal-
endar year 2008, 2009, or 2010’’ and inserting 
‘‘any of calendar years 2008 through 2020’’. 
(2) CLOTHES WASHERS.—Section 45M(b)(2) of 
such Code is amended— 
(A) in subparagraph (B) by striking ‘‘cal-
endar year 2008 or 2009’’ and inserting ‘‘any 
of calendar years 2008 through 2019’’, 
(B) in subparagraphs (C) and (D) by 
striking ‘‘calendar year 2008, 2009, or 2010’’ 
both places it appears and inserting ‘‘any of 
calendar years 2008 through 2020’’. 
(3) REFRIGERATORS.—Section 45M(b)(3) of 
such Code is amended— 
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(A) in subparagraph (B) by striking ‘‘cal-
endar year 2008 or 2009’’ and inserting ‘‘any 
of calendar years 2008 through 2019’’, 
(B) in subparagraphs (C) and (D) by 
striking ‘‘calendar year 2008, 2009, or 2010’’ 
both places it appears and inserting ‘‘any of 
calendar years 2008 through 2020’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to appliances manufac-
tured after December 31, 2008. 
SEC. 2002. EXTENSION AND CLARIFICATION OF NEW EN-
ERGY EFFICIENT HOME CREDIT. 
(a) EXTENSION.—Subsection (g) of section 45L of 
the Internal Revenue Code of 1986 (relating to termi-
nation) is amended by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2013’’. 
(b) CLARIFICATION.— 
(1) IN
GENERAL.—Paragraph (1) of section 
45L(a) is amended by striking ‘‘and’’ at the end of 
subparagraph (A) and by striking subparagraph (B) 
and inserting the following: 
‘‘(B) acquired by a person from such eligi-
ble contractor, and 
‘‘(C) used by any person as a residence 
during the taxable year.’’. 
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(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect as if included in 
section 1332 of the Energy Policy Act of 2005. 
SEC. 2003. EXTENSION AND MODIFICATION OF DEDUCTION 
FOR 
ENERGY 
EFFICIENT 
COMMERCIAL 
BUILDINGS. 
(a) EXTENSION.—Subsection (h) of section 179D of 
the Internal Revenue Code of 1986 (relating to termi-
nation) is amended to read as follows: 
‘‘(h) TERMINATION.—This section shall not apply 
with respect to property— 
‘‘(1) which is certified under subsection (d)(6) 
after December 31, 2012, or 
‘‘(2) which is placed in service after December 
31, 2014. 
A provisional certification shall be treated as meeting the 
requirements of paragraph (1) if it is based on the build-
ing plans, subject to inspection and testing after installa-
tion.’’. 
(b) INCREASE IN MAXIMUM AMOUNT OF DEDUC-
TION.— 
(1) IN GENERAL.—Subparagraph (A) of section 
179D(b)(1) of such Code is amended by striking 
‘‘$1.80’’ and inserting ‘‘$2.25’’. 
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(2) PARTIAL ALLOWANCE.—Paragraph (1) of 
section 179D(d) of such Code is amended— 
(A) by striking ‘‘$.60’’ and inserting 
‘‘$0.75’’, and 
(B) by striking ‘‘$1.80’’ and inserting 
‘‘$2.25’’. 
(c) MODIFICATIONS TO CERTAIN SPECIAL RULES.— 
(1) METHODS OF CALCULATING ENERGY SAV-
INGS.— 
(A) IN GENERAL.—Paragraph (2) of sec-
tion 179D(d) of such Code is amended— 
(i) by inserting ‘‘, except that the Sec-
retary shall use Standard 90.1–2001 in 
lieu of the California title 24 energy stand-
ards and the tables contained therein and 
the Secretary may add requirements from 
Standard 90.1–2001 (or any successor 
standard)’’ before the period at the end, 
and 
(ii) by adding at the end the following 
new sentence: ‘‘The calculation methods 
contained in such regulations shall also 
provide for the calculation of appropriate 
energy savings for design methods and 
technologies not otherwise credited in such 
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manual or standard, including energy sav-
ings associated with natural ventilation, 
evaporative cooling, automatic lighting con-
trols 
(such 
as 
occupancy 
sensors, 
photocells, and time clocks), day lighting, 
designs utilizing semi-conditioned spaces 
which maintain adequate comfort condi-
tions without air conditioning or without 
heating, improved fan system efficiency 
(including reductions in static pressure), 
advanced unloading mechanisms for me-
chanical cooling (such as multiple or vari-
able speed compressors), on-site generation 
of electricity (including combined heat and 
power systems, fuel cells, and renewable 
energy generation such as solar energy), 
and wiring with lower energy losses than 
wiring satisfying Standard 90.1–2001 re-
quirements for building power distribution 
systems.’’. 
(B) REQUIREMENTS FOR COMPUTER SOFT-
WARE
USED
IN
CALCULATING
ENERGY
AND 
POWER
CONSUMPTION
COSTS.—Paragraph 
(3)(B) of section 179D(d) of such Code is 
amended by striking ‘‘and’’ at the end of clause 
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