(1) by redesignating subsection (c), as amended 
by subsection (a), as subsection (d); and 
(2) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) CONTRACT PRIORITIES.—In entering into con-
tracts under this section, the Secretary shall give priority 
to eligible producers participating in bioenergy initiatives 
involving— 
‘‘(1) the production of cellulosic ethanol, includ-
ing how to make it more cost effective; and 
‘‘(2) the production of hydrogen using ethanol 
technology.’’. 
SEC. 4. 7-YEAR DEPRECIATION OF ETHANOL AND BIO-
DIESEL REFINING PROPERTY. 
(a) IN GENERAL.—Subparagraph (C) of section 
168(e)(3) of the Internal Revenue Code of 1986 (relating 
to 7-year property) is amended by striking ‘‘and’’ at the 
end of clause (iv), by redesignating clause (v) as clause 
(vi), and by inserting after clause (iv) the following new 
clause: 
‘‘(v) any ethanol or biodiesel refining 
property.’’. 
(b) ETHANOL
OR
BIODIESEL
REFINING
PROP-
ERTY.—Section 168(i) of such Code is amended by adding 
at the end the following new paragraph:
‘‘(18) ETHANOL
OR
BIODIESEL
REFINING 
PROPERTY.—The term ‘ethanol and biodiesel refin-
ing property’ means— 
‘‘(A) property used to produce biodiesel (as 
defined in section 40A(d)(1)), and 
‘‘(B) property used to produce ethanol 
other than from petroleum, natural gas, or coal 
(including lignite).’’. 
(c) ALTERNATIVE
DEPRECIATION
SYSTEM.—The 
table contained in section 168(g)(3)(B) of such Code (re-
lating to special rule for certain property assigned to class-
es) is amended by inserting after the item relating to sub-
paragraph (C)(iv) the following new item: 
‘‘(C)(v) ...................................................................................
7’’. 
(d) ALTERNATIVE MINIMUM TAX.—Subparagraph 
(B) of section 56(a)(1) of such Code is amended by strik-
ing ‘‘section 168(e)(3)(C)(iv)’’ and inserting ‘‘clause (iv) 
or (v) of section 168(e)(3)(C)’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to property placed in service 
after the date of the enactment of this Act. 
(2) EXCEPTION.—The amendments made by 
this section shall not apply to any property with re-
spect to which the taxpayer or a related party has
entered into a binding contract for the construction 
thereof on or before such date, or, in the case of 
self-constructed property, has started construction 
on or before such date. 
SEC. 5. STREAMLINED PERMITTING. 
The Secretary of Energy shall undertake a study to 
evaluate current permitting requirements applicable to the 
construction of new petroleum industry facilities (includ-
ing refineries, pipelines, and related facilities). The study 
shall identify the problems and identify improvements. 
The Secretary shall submit a report the Congress con-
taining the results of the study. 
SEC. 6. EXTENSION AND EXPANSION OF TAX INCENTIVES 
FOR RENEWABLE FUELS. 
(a) ALTERNATIVE TECHNOLOGY VEHICLE CRED-
IT.— 
(1) EXTENSION.—Subsection (j) of section 30B 
of the Internal Revenue Code of 1986 (relating to 
alternative motor vehicle credit) is amended to read 
as follows: 
‘‘(j) TERMINATION.—This section shall not apply to 
any property purchased after December 31, 2014.’’. 
(2) INCREASED CREDIT FOR CERTAIN HYBRID- 
FLEXIBLE FUEL VEHICLES.—
(A) IN GENERAL.—Subsection (a) of sec-
tion 30B of such Code is amended by striking 
‘‘and’’ at the end of paragraph (3), by striking 
paragraph (4), and by inserting after paragraph 
(3) the following new paragraphs: 
‘‘(4) the new flexible fuel hybrid motor vehicle 
credit determined under subsection (e), and 
‘‘(5) the new qualified alternative fuel motor ve-
hicle credit determined under subsection (f).’’. 
(B) NEW FLEXIBLE FUEL HYBRID MOTOR 
VEHICLE CREDIT.—Section 30B of such Code is 
amended by redesignating subsections (e) 
through (j) as subsections (f) through (k), re-
spectively, and by inserting after subsection (d) 
the following new subsection: 
‘‘(e) NEW FLEXIBLE FUEL HYBRID MOTOR VEHI-
CLE CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the new flexible fuel hybrid motor vehicle credit 
determined under this subsection for the taxable 
year is the credit amount determined under para-
graph (2) with respect to a new hybrid flexible fuel 
motor vehicle placed in service by the taxpayer dur-
ing the taxable year. 
‘‘(2) CREDIT AMOUNT.—