any administrative findings and conclusions relating to the 
challenged Federal action shall be presumed to be correct 
unless shown otherwise by clear and convincing evidence 
contained in the administrative record. 
(b) LIMITATION ON PROSPECTIVE RELIEF.—In any 
judicial review referred to in section 122, the Court shall 
not grant or approve any prospective relief unless the 
court finds that such relief is narrowly drawn, extends no 
further than necessary to correct the violation of a Federal 
law requirement, and is the least intrusive means nec-
essary to correct the violation concerned. 
SEC. 126. PRESIDENTIAL WAIVER. 
Notwithstanding any other provision of law, the 
President may waive any legal requirement relating to the 
approval of any covered oil and natural gas activity if the 
President determines in the President’s sole discretion 
that such activity is important to the national interest and 
outweighs such legal requirement. 
SEC. 127. LEGAL FEES. 
Any person filing a petition referred to in section 122 
who is not a prevailing party shall pay to the prevailing 
parties (including intervening parties), other than the 
United States, fees and other expenses incurred by that 
party in connection with the judicial review, unless the 
Court finds that the position of the person was substan-
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tially justified or that special circumstances make an 
award unjust. 
SEC. 128. EXCLUSION. 
Section 122 shall not apply to disputes between the 
parties to a lease issued pursuant to an authorizing leas-
ing statute regarding the obligations of such lease or the 
alleged breach thereof. 
Subtitle C—Other Energy 
Provisions 
SEC. 131. ELIMINATION OF RESTRICTION ON ENERGY AL-
TERNATIVES AND ENERGY EFFICIENCY. 
(a) ELIMINATION OF OTHER RESTRICTIONS ON USE 
OF ENERGY ALTERNATIVES.— 
(1) 
RENEWABLE
BIOMASS.—Section 
211(o)(1)(I) of the Clean Air Act (42 U.S.C. 
7545(o)(1)(I)) is amended— 
(A) in clause (ii), by striking ‘‘non-fed-
eral’’; and 
(B) in clause (iv), by striking ‘‘that are 
from 
non-federal 
forestlands, 
including 
forestlands’’ and inserting ‘‘from forestlands, 
including those on public lands and those’’. 
(2) ALTERNATIVE FUELS.—Section 526 of the 
Energy Independence and Security Act of 2007 (42 
U.S.C. 17142) is repealed. 
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(b) NEW SOURCE REVIEW UNDER THE CLEAN AIR 
ACT.—Part A of title I of the Clean Air Act (42 U.S.C. 
7401 and following) is amended by adding the following 
at the end: 
‘‘SEC. 132. NEW SOURCE REVIEW. 
‘‘In promulgating regulations respecting any require-
ment or prohibition of this Act relating to the construction 
of a new source or the modification of an existing source, 
the Administrator shall include in such regulations provi-
sions providing that routine maintenance and repair shall 
not constitute a modification of an existing source requir-
ing treatment of the source as a new source. Such provi-
sions shall provide that equipment replacement shall be 
considered routine maintenance and repair if it meets each 
of the following: 
‘‘(1) Such replacement does not increase overall 
actual emissions of any air pollutant by more than 
5 percent. 
‘‘(2) In the case of a source generating elec-
tricity, such replacement does not result in a greater 
amount of any air pollutant emitted in proportion to 
the megawatts of electricity generated. 
Notwithstanding any other provision of this Act, no State 
may include in any State implementation plan any provi-
sions regarding new source review that are more stringent 
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than those contained in the regulations of the Adminis-
trator under this section.’’. 
SEC. 132. POLICIES REGARDING BUYING AND BUILDING 
AMERICAN. 
(a) INTENT OF CONGRESS.—It is the intent of the 
Congress that this Act, among other things, result in a 
healthy and growing American industrial, manufacturing, 
transportation, and service sector employing the vast tal-
ents of America’s workforce to assist in the development 
of energy from domestic sources. Moreover, the Congress 
intends to monitor the deployment of personnel and mate-
rial onshore and offshore to encourage the development 
of American technology and manufacturing to enable 
United States workers to benefit from this Act by good 
jobs and careers, as well as the establishment of important 
industrial facilities to support expanded access to Amer-
ican resources. 
(b) SAFEGUARD FOR EXTRAORDINARY ABILITY.— 
Section 30(a) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356(a)) is amended in the matter preceding 
paragraph (1) by striking ‘‘regulations which’’ and insert-
ing ‘‘regulations that shall be supplemental and com-
plimentary with and under no circumstances a substi-
tution for the provisions of the Constitution and laws of 
the United States extended to the subsoil and seabed of 
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the outer Continental Shelf pursuant to section 4 of this 
Act, except insofar as such laws would otherwise apply to 
individuals who have extraordinary ability in the sciences, 
arts, education, or business, which has been demonstrated 
by sustained national or international acclaim, and that’’. 
(b) WORK STANDARDS.—All construction, repair, or 
alteration of public buildings and public works of the Gov-
ernment and buildings or works financed or otherwise as-
sisted in whole or in part under this Act by a loan, loan 
guarantee, grant, annual contribution, credit enhance-
ment, or any other form of Federal assistance authorized 
under this Act shall be performed in accordance with the 
standards applicable to comparable activity under any 
other provision of law, without regard to the form or type 
of Federal assistance provided thereunder. 
SEC. 133. CLEAN COAL TECHNOLOGY DEPLOYMENT GRANT 
AND LOAN PROGRAM. 
(a) PURPOSE.—The purpose of this section is to en-
courage innovative, state-of-the-art energy plants to re-
duce and eliminate emissions of carbon dioxide and other 
greenhouse gases. 
(b) DOE PROGRAM.—The Secretary Energy shall 
implement a competitive grant and loan program to award 
funding to qualified projects for a 3-year period for the 
construction or modernization of coal-fired generation 
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units to enable the use at such units of the most viable 
and cost-effective technology to reduce emissions of carbon 
dioxide and other greenhouse gases. In carrying out such 
program, the Secretary shall give priority to the funding 
of projects that will emit the least amount of carbon diox-
ide and other greenhouse gases. 
(c) QUALIFIED PROJECTS.—(1) Projects for the con-
struction or modernization of units with carbon capture 
and sequestration or storage systems shall be qualified for 
assistance under this section in the form of grants of up 
to $2,000,000,000 per unit up to a maximum grant of 
$2,000,000 per Megawatt (MW) of capacity. Such 
projects may be qualified for loan guarantees under this 
section in the amount of up to $3,000,000,000 per unit 
up to a maximum of $3,000,000 per Megawatt of capacity. 
(2) The maximum amount of funding assistance 
under this section for construction and modernization 
costs shall be as follows: 
(A) A grant of 75 percent of such costs and a 
loan guarantee of 25 percent of such costs for the 
first year in which assistance is provided. 
(B) A grant of 50 percent of such costs and a 
loan guarantee of 50 percent of such costs for the 
second year in which assistance is provided. 
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(C) A grant of 25 percent of such costs and a 
loan guarantee of 75 percent of such costs for the 
third year in which assistance is provided. 
(d) MINIMUM SIZE.—No project shall be qualified for 
assistance under this section for any unit that is less than 
250 MW of capacity. 
TITLE II—MODIFYING THE STRA-
TEGIC PETROLEUM RESERVE 
AND 
FUNDING 
CONSERVA-
TION 
AND 
ENERGY 
RE-
SEARCH AND DEVELOPMENT 
SEC. 201. FINDINGS. 
Congress finds the following: 
(1) The Strategic Petroleum Reserve (SPR) 
was created by Congress in 1975, to protect the Na-
tion from any future oil supply disruptions. When 
the program was established, United States refiners 
were capable of handling light crude and medium 
crude and the makeup of the SPR matched this ca-
pacity. This is not the case today. 
(2) A GAO analysis found that nearly half of 
the refineries considered vulnerable to supply disrup-
tions are not compatible with the types of oil cur-
rently stored in the SPR and would be unable to 
maintain normal refining capacity if forced to rely 
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on SPR oil as currently constituted, thereby reduc-
ing the effectiveness of the SPR in the event of a 
supply disruption. GAO concluded that the SPR 
should be comprised of at least 10 percent heavy 
crude. 
(3) This Act implements the GAO recommenda-
tion and dedicates funds received from the trans-
actions to existing energy conservation, research, 
and assistance programs. 
SEC. 202. DEFINITIONS. 
In this title— 
(1) the term ‘‘light grade petroleum’’ means 
crude oil with an API gravity of 35 degrees or high-
er; 
(2) the term ‘‘heavy grade petroleum’’ means 
crude oil with an API gravity of 26 degrees or lower; 
and 
(3) the term ‘‘Secretary’’ means the Secretary 
of Energy. 
SEC. 203. OBJECTIVES. 
The objectives of this title are as follows: 
(1) To modernize the composition of the Stra-
tegic Petroleum Reserve to reflect the current proc-
essing capabilities of refineries in the United States. 
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(2) To provide increased funding to accelerate 
conservation, energy research and development, and 
assistance through existing programs. 
SEC. 204. MODIFICATION OF THE STRATEGIC PETROLEUM 
RESERVE. 
Notwithstanding section 161 of the Energy Policy 
and Conservation Act (42 U.S.C. 6241), the Secretary 
shall publish a plan not later than 30 days after the date 
of enactment of this Act to— 
(1) exchange as soon as possible light grade pe-
troleum from the Strategic Petroleum Reserve, in an 
amount equal to 10 percent of the total number of 
barrels of crude oil in the Reserve as of the date of 
enactment of this Act, for an equivalent volume of 
heavy grade petroleum plus any additional cash 
bonus bids received that reflect the difference in the 
market value between light grade petroleum and 
heavy grade petroleum and the timing of deliveries 
of the heavy grade petroleum; 
(2) from the gross proceeds of the cash bonus 
bids, deposit the amount necessary to pay for the di-
rect administrative and operational costs of the ex-
change into the SPR Petroleum Account established 
under section 167 of the Energy Policy and Con-
servation Act (42 U.S.C. 6247); and 
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(3) deposit 90 percent of the remaining net pro-
ceeds from the exchange into the account established 
under section 205(a). 
SEC. 205. ENERGY INDEPENDENCE AND SECURITY FUND. 
(a) ESTABLISHMENT.—There is hereby established in 
the Treasury of the United States the ‘‘Energy Independ-
ence and Security Fund’’ (in this section referred to as 
the ‘‘Fund’’). 
(b) ADMINISTRATION.—The Secretary shall be re-
sponsible for administering the Fund for the purpose of 
carrying out this section. 
(c) DEPOSITS.—The Secretary shall transfer the bal-
ance of funds in the SPR Petroleum Account on the date 
of enactment of this Act in excess of $10,000,000 into 
the Fund. 
(d) DISTRIBUTION OF FUNDS.—The Secretary shall 
make amounts from the Fund available for obligation, 
without further appropriation and without fiscal year limi-
tation, for the following purposes: 
(1) ADVANCED RESEARCH PROJECTS AGENCY— 
ENERGY.—The Secretary may transfer amounts to 
the account ‘‘Energy Transformation Acceleration 
Fund’’, established under section 5012(m) of the 
America COMPETES Act (42 U.S.C. 16538(m)), 
including amounts— 
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(A) for university-based research projects; 
and 
(B) for program direction expenses. 
(2) WIND ENERGY RESEARCH AND DEVELOP-
MENT.—The Secretary may transfer amounts to the 
account ‘‘Energy Efficiency and Renewable Energy’’ 
for necessary expenses for a program to support the 
development of next-generation wind turbines, in-
cluding turbines capable of operating in areas with 
low 
wind 
speeds, 
as 
authorized 
in 
section 
931(a)(2)(B) of the Energy Policy Act of 2005 (42 
U.S.C. 16231(a)(2)(B)). 
(3) SOLAR ENERGY RESEARCH AND DEVELOP-
MENT.—The Secretary may transfer amounts to the 
account ‘‘Energy Efficiency and Renewable Energy’’ 
for necessary expenses for a program to accelerate 
the research, development, demonstration, and de-
ployment of solar energy technologies, and public 
education and outreach materials pursuant to such 
program, as authorized by section 931(a)(2)(A) of 
the Energy Policy Act of 2005 (42 U.S.C. 
16231(a)(2)(A)). 
(4) MARINE AND HYDROKINETIC RENEWABLE 
ELECTRIC
ENERGY.—The Secretary may transfer 
amounts to the account ‘‘Energy Efficiency and Re-
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newable Energy’’ for necessary expenses for a pro-
gram to accelerate the research, development, dem-
onstration, and deployment of ocean and wave en-
ergy, including hydrokinetic renewable energy, as au-
thorized by section 931 of the Energy Policy Act of 
2005 (42 U.S.C. 16231) and section 636 of the En-
ergy Independence and Security Act of 2007 (42 
U.S.C. 17215). 
(5) ADVANCED VEHICLES RESEARCH, DEVELOP-
MENT, AND DEMONSTRATION.—The Secretary may 
transfer amounts to the account ‘‘Energy Efficiency 
and Renewable Energy’’ for necessary expenses for 
research, development, and demonstration on ad-
vanced, cost-effective technologies to improve the en-
ergy efficiency and environmental performance of ve-
hicles, as authorized in section 911(a)(2)(A) of the 
Energy 
Policy 
Act 
of 
2005 
(42 
U.S.C. 
16191(a)(2)(A)). 
(6) INDUSTRIAL
ENERGY
EFFICIENCY
RE-
SEARCH AND DEVELOPMENT.—The Secretary may 
transfer amounts to the account ‘‘Energy Efficiency 
and Renewable Energy’’ for necessary expenses for 
a program to accelerate the research, development, 
demonstration, and deployment of new technologies 
to improve the energy efficiency and reduce green-
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house gas emissions from industrial processes, as 
authorized in section 911(a)(2)(C) of the Energy 
Policy Act of 2005 (42 U.S.C. 16191(a)(2)(C)) and 
in section 452 of the Energy Independence and Se-
curity Act of 2007 (42 U.S.C. 17111). 
(7) BUILDING
AND
LIGHTING
ENERGY
EFFI-
CIENCY RESEARCH AND DEVELOPMENT.—The Sec-
retary may transfer amounts to the account ‘‘En-
ergy Efficiency and Renewable Energy’’ for nec-
essary expenses for a program to accelerate the re-
search, development, demonstration, and deployment 
of new technologies to improve the energy efficiency 
of and reduce greenhouse gas emissions from build-
ings, as authorized in section 321(g) of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 
6295 note), section 422 of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 17082), and 
section 912 of the Energy Policy Act of 2005 (42 
U.S.C. 16192). 
(8) GEOTHERMAL
ENERGY
DEVELOPMENT.— 
The Secretary may transfer amounts to the account 
‘‘Energy Efficiency and Renewable Energy’’ for nec-
essary expenses for geothermal research and devel-
opment activities to be managed by the National Re-
newable Energy Laboratory, as authorized by sec-
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tions 613, 614, 615, and 616 of the Energy Inde-
pendence and Security Act of 2007 (42 U.S.C. 
17192–95) and section 931(a)(2)(C) of the Energy 
Policy Act of 2005 (42 U.S.C. 16231(a)(2)(C)). 
(9) SMART GRID TECHNOLOGY RESEARCH, DE-
VELOPMENT, AND DEMONSTRATION.—The Secretary 
may transfer amounts to the account ‘‘Energy Effi-
ciency and Renewable Energy’’ for necessary ex-
penses for research, development, and demonstration 
of smart grid technologies, as authorized by section 
1304 of the Energy Independence and Security Act 
of 2007 (42 U.S.C. 17384). 
(10) CARBON
CAPTURE
AND
STORAGE.—The 
Secretary may transfer amounts to the account 
‘‘Fossil Energy Research and Development’’ for nec-
essary expenses for a program of demonstration 
projects of carbon capture and storage, and for a re-
search program to address public health, safety, and 
environmental impacts, as authorized by section 963 
of the Energy Policy Act of 2005 (42 U.S.C. 16293) 
and sections 703 and 707 of the Energy Independ-
ence and Security Act of 2007 (42 U.S.C. 17251, 
17255). 
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(11) NONCONVENTIONAL
DOMESTIC
NATURAL 
GAS
PRODUCTION
AND
ENVIRONMENTAL
RE-
SEARCH.— 
(A) The Secretary may transfer amounts 
to the account authorized by section 999H(e) of 
the Energy Policy Act of 2005 (42 U.S.C. 
16378(e)). 
(B) The Secretary may transfer amounts 
to the account ‘‘Fossil Energy Research and 
Development’’ for necessary expenses for a pro-
gram of basin-oriented assessments and public 
and private partnerships involving States and 
industry to foster the development of regional 
advanced technological, regulatory, and eco-
nomic development strategies for the efficient 
and environmentally sustainable recovery and 
market delivery of natural gas and domestic pe-
troleum resources within the United States, and 
for support for the Stripper Well Consortium. 
(12) HYDROGEN
RESEARCH
AND
DEVELOP-
MENT.—The Secretary may transfer amounts to the 
account ‘‘Energy Efficiency and Renewable Energy’’ 
for necessary expenses for the Department of Ener-
gy’s H-Prize Program, as authorized by section 
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1008(f) of the Energy Policy Act of 2005 (42 
U.S.C. 16396(f)). 
(13) ENERGY STORAGE FOR TRANSPORTATION 
AND ELECTRIC POWER.— 
(A) The Secretary may transfer amounts 
to the account ‘‘Basic Energy Sciences’’ for 
necessary expenses for a program to accelerate 
basic research on energy storage systems to 
support electric drive vehicles, stationary appli-
cations, and electricity transmission and dis-
tribution, as authorized by section 641(p)(1) of 
the Energy Independence and Security Act of 
2007 (42 U.S.C. 17231(p)(1)). 
(B) The Secretary may transfer amounts 
to the account ‘‘Energy Efficiency and Renew-
able Energy’’ including— 
(i) amounts for a program to accel-
erate applied research on energy storage 
systems to support electric drive vehicles, 
stationary 
applications, 
and 
electricity 
transmission and distribution as authorized 
by section 641(p)(2) of the Energy Inde-
pendence and Security Act of 2007 (42 
U.S.C. 17231(p)(2)); 
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(ii) amounts for energy storage sys-
tems demonstrations as authorized by sec-
tion 641(p)(4) of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 
17231(p)(4)); and 
(iii) amounts for vehicle energy stor-
age systems demonstrations as authorized 
by section 641(p)(5) of the Energy Inde-
pendence and Security Act of 2007 (42 
U.S.C. 17231(p)(5)). 
(e) TRANSFER PROCEDURES.—The Secretary shall 
make an initial transfer from the Fund no later than 30 
days after the initial deposit of monies into the Fund. The 
Secretary shall make additional transfers no later than 30 
days after subsequent deposits. 
(f) MANAGEMENT AND OVERSIGHT.— 
(1) ADDITIONALITY
OF
FISCAL
YEAR
2008 
TRANSFERS.—All amounts transferred under sub-
section (d) shall be in addition to, and shall not be 
substituted for, any funds appropriated for the same 
or similar purposes in the Consolidated Appropria-
tions Act, 2008 or any other enacted legislation. 
(2) EXCESS FUNDS.—The total of all amounts 
transferred under subsection (d) and any funds ap-
propriated for the same or similar purposes in the 
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Consolidated Appropriations Act, 2008 or any other 
enacted legislation may not exceed the amounts au-
thorized in other Acts for such purposes. In the 
event that amounts made available under this title 
plus amounts under the Consolidated Appropriations 
Act, 2008 exceed the cumulative amounts authorized 
in other Acts for any program funded by this Act, 
the excess amounts shall be distributed to the other 
programs funded by this title on a pro rata basis. 
(3) PROGRAM PLANS AND PERFORMANCE MEAS-
URES.—The Secretary shall prepare and publish in 
the Federal Register a plan for the proposed use of 
all funds authorized in subsection (d). The plan also 
shall identify how the use of these funds will be ad-
ditive to, and not displace, annual appropriations. 
The plans also shall identify performance measures 
to assess the additional benefits that may be realized 
from the application of the additional funding pro-
vided under this section. The initial plan shall be 
published in the Federal Register not later than 45 
days after the date of enactment of this Act. 
(4) CONGRESSIONAL
OVERSIGHT
AND
RE-
VIEW.—Nothing in this section shall limit or restrict 
the review and oversight of program plans by the ap-
propriate committees of Congress. Nothing in this 
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section shall limit or restrict the authority of Con-
gress to set alternative spending limitations in an-
nual appropriations Acts. 
(5) APPORTIONMENT.—All transactions of the 
Fund shall be exempt from apportionment under the 
provisions of subchapter II of chapter 15 of title 31, 
United States Code. 
TITLE 
III—CLEANER 
ENERGY 
PRODUCTION 
AND 
ENERGY 
CONSERVATION INCENTIVES 
SEC. 301. EXTENSION OF RENEWABLE ENERGY CREDIT. 
(a) IN GENERAL.—Each of the following provisions 
of section 45(d) of the Internal Revenue Code of 1986 
(relating to qualified facilities) is amended by striking 
‘‘January 1, 2014’’ and inserting ‘‘January 1, 2020’’: 
(1) Clauses (i) and (ii) of paragraph (2)(A) (re-
lating to closed-loop biomass facility). 
(2) Clauses (i)(I) and (ii) of paragraph (3)(A) 
(relating to open-loop biomass facility). 
(3) Paragraph (4) (relating to geothermal en-
ergy facility). 
(4) Paragraph (6) (relating to landfill gas facili-
ties). 
(5) Paragraph (7) (relating to trash combustion 
facilities). 
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(6) Subparagraphs (A) and (B) of paragraph 
(9) (relating to qualified hydropower facility). 
(7) Subparagraph (B) of paragraph (11) (relat-
ing to marine and hydrokinetic renewable energy fa-
cilities). 
(b) WIND FACILITIES.—Paragraph (1) of section 
45(d) of such Code is amended by striking ‘‘January 1, 
2013’’ and inserting ‘‘January 1, 2020’’: 
SEC. 302. EXTENSION OF CREDIT FOR ENERGY EFFICIENT 
APPLIANCES. 
(a) 
DISHWASHERS.—Paragraph 
(1) 
of 
section 
45M(b) of the Internal Revenue Code of 1986 (relating 
to applicable amount) is amended by striking ‘‘calendar 
year 2011’’ each place it appears and inserting ‘‘after 
2010 and before 2020’’. 
(b) CLOTHES WASHERS.—Paragraph (2) of section 
45M(b) of such Code is amended by striking ‘‘calendar 
year 2011’’ each place it appears and inserting ‘‘after 
2010 and before 2020’’. 
(c) REFRIGERATORS.—Paragraph (2) of section 
45M(b) of such Code is amended by striking ‘‘calendar 
year 2011’’ each place it appears and inserting ‘‘after 
2010 and before 2020’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to appliances produced after De-
cember 31, 2011. 
SEC. 303. EXTENSION OF CREDIT FOR NONBUSINESS EN-
ERGY PROPERTY. 
Section 25C(g) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ‘‘Decem-
ber 31, 2011’’ and inserting ‘‘December 31, 2019’’. 
SEC. 304. EXTENSION OF CREDIT FOR RESIDENTIAL EN-
ERGY EFFICIENT PROPERTY. 
Section 25D(g) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ‘‘Decem-
ber 31, 2016’’ and inserting ‘‘December 31, 2019’’. 
SEC. 305. EXTENSION OF NEW ENERGY EFFICIENT HOME 
CREDIT. 
Subsection (g) of section 45L of the Internal Revenue 
Code of 1986 (relating to termination) is amended by 
striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2019’’. 
SEC. 306. EXTENSION OF ENERGY EFFICIENT COMMERCIAL 
BUILDINGS DEDUCTION. 
Section 179D(h) of the Internal Revenue Code of 
1986 (relating to termination) is amended by striking 
‘‘December 31, 2013’’ and inserting ‘‘December 31, 
2019’’. 
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SEC. 307. EXTENSION OF ENERGY CREDIT. 
(a) 
SOLAR
ENERGY
PROPERTY.—Paragraphs 
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal 
Revenue Code of 1986 (relating to energy credit) are each 
amended by striking ‘‘January 1, 2017’’ and inserting 
‘‘January 1, 2020’’. 
(b) FUEL CELL PROPERTY.—Subparagraph (D) of 
section 48(c)(1) of such Code (relating to qualified fuel 
cell property) is amended by striking ‘‘December 31, 
2016’’ and inserting ‘‘December 31, 2019’’. 
(c) MICROTURBINE PROPERTY.—Subparagraph (D) 
of section 48(c)(2) of such Code (relating to qualified 
microturbine property) is amended by striking ‘‘December 
31, 2016’’ and inserting ‘‘December 31, 2019’’. 
(d) PROPERTY USING THERMAL ENERGY FROM 
GROUND OR GROUND WATER.—Clause (vii) of section 
48(a)(3)(A) of such Code is amended by striking ‘‘Decem-
ber 31, 2017’’ and inserting ‘‘December 31, 2019’’. 
(e) COMBINED HEAT AND POWER SYSTEM PROP-
ERTY.—Clause (iv) of section 48(c)(3)(A) of such Code 
is amended by striking ‘‘December 31, 2017’’ and insert-
ing ‘‘December 31, 2019’’. 
(f) SMALL WIND ENERGY PROPERTY.—Subpara-
graph (C) of section 48(c)(4) of such Code is amended 
by striking ‘‘December 31, 2016’’ and inserting ‘‘Decem-
ber 31, 2019’’. 
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SEC. 308. EXTENSION OF CREDIT FOR NEW CLEAN RENEW-
ABLE ENERGY BONDS. 
Subsection (c) of section 54C of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(5) ADDITIONAL ANNUAL ALLOCATIONS.—The 
national new clean renewable energy bond limitation 
shall be increased annually by 2 percent of the de-
posits made into the Renewable Energy and Energy 
Efficiency Reserve under section 8(g)(7) of the 
Outer Continental Shelf Lands Act with respect to 
such year. Each such increase shall be allocated by 
the Secretary consistent with the rules of para-
graphs (2) and (3).’’. 
SEC. 309. EXPENSING OF MECHANICAL INSULATION PROP-
ERTY. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of subtitle A of the Internal Revenue Code of 1986 
(relating to itemized deductions for individuals and cor-
porations) is amended by inserting after section 179E the 
following new section: 
‘‘SEC. 179F. MECHANICAL INSULATION PROPERTY. 
‘‘(a) TREATMENT AS EXPENSES.—There shall be al-
lowed as a deduction an amount equal to the applicable 
percentage of the cost of mechanical insulation property 
placed in service during the taxable year. 
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‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a)— 
‘‘(1) IN GENERAL.—The term ‘applicable per-
centage’ means the lesser of— 
‘‘(A) 30 percent, and 
‘‘(B) the excess (if any) of— 
‘‘(i) the energy savings (expressed as 
a percentage) obtained by placing such me-
chanical insulation property in service in 
connection with a mechanical system, over 
‘‘(ii) the energy savings (expressed as 
a percentage) such property is required to 
meet by Standard 90.1–2007, developed 
and published by the American Society of 
Heating, Refrigerating and Air-Condi-
tioning Engineers. 
‘‘(2) SPECIAL
RULE
RELATING
TO
MAINTE-
NANCE.—In the case of mechanical insulation prop-
erty placed in service as a replacement for insulation 
property— 
‘‘(A) paragraph (1)(B) shall be applied 
without regard to clause (ii) thereof, and 
‘‘(B) the cost of such property shall be 
treated as an expense for which a deduction is 
allowed under section 162 instead of being 
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