108 
(2) criteria, in addition to the criteria described 
under subsection (e), for evaluating applications for 
financial assistance; and 
(3) reporting requirements for automobile manu-
facturers that receive financial assistance under this 
section. 
(e) CRITERIA.—In selecting recipients of financial as-
sistance from among applicant automobile manufacturers, 
the Secretary shall give preference to proposals that— 
(1) are most likely to be successful; and 
(2) are located in local markets that have the 
greatest need for the facility. 
(f) REPORTS.—The Secretary shall annually submit to 
Congress a report on the program established pursuant to 
this section. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated such sums as are necessary 
to carry out this section. 
SEC. 124. INVESTMENT IN CLEAN VEHICLES. 
(a) DEFINITIONS.—In this section: 
(1) ADVANCED
TECHNOLOGY
VEHICLES
AND 
QUALIFYING
COMPONENTS.—The terms ‘‘advanced 
technology vehicles’’ and ‘‘qualifying components’’ 
shall have the definition of such terms in section 136 
of the Energy Independence and Security Act of 2007, 
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109 
except that for purposes of this section, the average 
base year as described in such section 136(a)(1)(C) 
shall be the following: 
(A) In each of the years 2012 through 2016, 
model year 2009. 
(B) In 2017, the Administrator shall, not-
withstanding such section 136(a)(1)(C), deter-
mine an appropriate baseline based on techno-
logical and economic feasibility. 
(2) PLUG-IN
ELECTRIC
DRIVE
VEHICLE.—The 
term ‘‘plug-in electric drive vehicle’’ shall have the 
definition of such term in section 131 of the Energy 
Independence and Security Act of 2007. 
(b) DISTRIBUTION OF ALLOWANCES.—The Adminis-
trator shall, in accordance with this section, distribute 
emission allowances allocated pursuant to section 782(i) of 
the Clean Air Act not later than September 30 of 2012 and 
each calendar year thereafter through 2025. 
(c) PLUG-IN ELECTRIC DRIVE VEHICLE MANUFAC-
TURING AND DEPLOYMENT.— 
(1) IN GENERAL.—The Administrator shall, at 
the direction of the Secretary of Energy, provide 
emission allowances allocated pursuant to section 
782(i) to applicants, joint sponsors and automobile 
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110 
manufacturers pursuant to sections 122 and 123 of 
this Act. 
(2) ANNUAL AMOUNT.—In each of the years 2012 
through 2017, one-quarter of the portion of the emis-
sion allowances allocated pursuant to section 782(i) 
of the Clean Air Act shall be available to carry out 
paragraph (1) such that— 
(A) one-eighth of the portion shall be avail-
able to carry out section 122; and, 
(B) one-eighth of the portion shall be avail-
able to carry out section 123. 
(3) PREFERENCE.—In directing the provision of 
emission allowances under this subsection to carry 
out section 122, the Secretary shall give preference to 
applications under section 122(c) that are jointly 
sponsored by one or more automobile manufacturers. 
(4) MULTI-YEAR COMMITMENTS.—The Adminis-
trator shall commit to providing emission allowances 
to an applicant, joint sponsor, or automobile manu-
facturer for up to five consecutive years if— 
(A) an application under section 122 or 
123 of this Act requests a multi-year commit-
ment; 
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111 
(B) such application meets the criteria for 
support established by the Secretary of Energy 
under sections 122 or 123 of this Act; 
(C) the Administrator confirms to the Sec-
retary that emission allowances will be available 
for a multi-year commitment; 
(D) the Secretary of Energy determines that 
a multi-year commitment for such application 
will advance the goals of section 122 or 123; and 
(E) the Secretary of Energy directs the Ad-
ministrator to make a multi-year commitment. 
(5) INSUFFICIENT
APPLICATIONS.—If, in any 
year, emission allowances available under paragraph 
(2) cannot be provided because of insufficient num-
bers of submitted applications that meet the criteria 
for support established by the Secretary of Energy 
under sections 122 or 123 of this Act, the remaining 
emission allowances shall be distributed according to 
subsection (d). 
(d) ADVANCED TECHNOLOGY VEHICLES.— 
(1) IN GENERAL.—The Administrator shall, at 
the direction of the Secretary of Energy, provide any 
emission allowances allocated pursuant to section 
782(i) of the Clean Air Act that are not provided 
under subsection (c) to automobile manufacturers and 
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112 
component suppliers to pay not more than 30 percent 
of the cost of— 
(A) reequipping, expanding, or establishing 
a manufacturing facility in the United States to 
produce— 
(i) qualifying advanced technology ve-
hicles; or 
(ii) qualifying components; and 
(B) engineering integration performed in 
the United States of qualifying vehicles and 
qualifying components. 
(2) PREFERENCE.—In directing the provision of 
emission allowances under this subsection during the 
years 2012 through 2017, the Secretary shall give 
preference to applications for projects that save the 
maximum number of gallons of fuel. 
SEC. 125. ADVANCED TECHNOLOGY VEHICLE MANUFAC-
TURING INCENTIVE LOANS. 
Section 136(d)(1) of the Energy Independence and Se-
curity Act of 2007 (42 U.S.C. 17013(d)(1)) is amended by 
striking 
‘‘$25,000,000,000’’ 
and 
inserting 
‘‘$50,000,000,000’’. 
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SEC. 126. AMENDMENT TO RENEWABLE FUELS STANDARD. 
(a) DEFINITION OF RENEWABLE BIOMASS.—Section 
211(o)(1)(I) of the Clean Air Act (42 U.S.C. 7545(o)) is 
amended to read as follows: 
‘‘(I) RENEWABLE BIOMASS.—The term ‘re-
newable biomass’ means any of the following: 
‘‘(i) Plant material, including waste 
material, harvested or collected from ac-
tively managed agricultural land that was 
in cultivation, cleared, or fallow and non-
forested on January 1, 2009. 
‘‘(ii) Plant material, including waste 
material, 
harvested 
or 
collected 
from 
pastureland that was nonforested on Janu-
ary 1, 2009. 
‘‘(iii) Nonhazardous vegetative matter 
derived from waste, including separated 
yard waste, landscape right-of-way trim-
mings, construction and demolition debris 
or food waste (but not recyclable waste 
paper, painted, treated or pressurized wood, 
or wood contaminated with plastic or met-
als). 
‘‘(iv) Animal waste or animal byprod-
ucts, including products of animal waste di-
gesters. 
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‘‘(v) Algae. 
‘‘(vi) Trees, brush, slash, residues, or 
any other vegetative matter removed from 
within 600 feet of any building, camp-
ground, or route designated for evacuation 
by a public official with responsibility for 
emergency preparedness, or from within 300 
feet of a paved road, electric transmission 
line, utility tower, or water supply line. 
‘‘(vii) Residues from or byproducts of 
milled logs. 
‘‘(viii) Any of the following removed 
from forested land that is not Federal and 
is not high conservation priority land: 
‘‘(I) Trees, brush, slash, residues, 
interplanted energy crops, or any other 
vegetative matter removed from an ac-
tively managed tree plantation estab-
lished— 
‘‘(aa) prior to January 1, 
2009; or 
‘‘(bb) on land that, as of 
January 1, 2009, was cultivated 
or fallow and non-forested. 
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115 
‘‘(II) 
Trees, 
logging 
residue, 
thinnings, cull trees, pulpwood, and 
brush removed from naturally-regen-
erated forests or other non-plantation 
forests, including for the purposes of 
hazardous fuel reduction or preventa-
tive treatment for reducing or con-
taining insect or disease infestation. 
‘‘(III) Logging residue, thinnings, 
cull trees, pulpwood, brush and species 
that are non-native and noxious, from 
stands that were planted and managed 
after January 1, 2009, to restore or 
maintain native forest types. 
‘‘(IV) Dead or severely damaged 
trees removed within 5 years of fire, 
blowdown, or other natural disaster, 
and badly infested trees. 
‘‘(ix) 
Materials, 
pre-commercial 
thinnings, or removed invasive species from 
National Forest System land and public 
lands (as defined in section 103 of the Fed-
eral Land Policy and Management Act of 
1976 (43 U.S.C. 1702)), including those 
that are byproducts of preventive treatments 
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116 
(such as trees, wood, brush, thinnings, 
chips, and slash), that are removed as part 
of a federally recognized timber sale, or that 
are removed to reduce hazardous fuels, to re-
duce or contain disease or insect infestation, 
or to restore ecosystem health, and that 
are— 
‘‘(I) not from components of the 
National Wilderness Preservation Sys-
tem, Wilderness Study Areas, Inven-
toried Roadless Areas, old growth or 
mature forest stands, components of the 
National Landscape Conservation Sys-
tem, National Monuments, National 
Conservation Areas, Designated Primi-
tive Areas, or Wild and Scenic Rivers 
corridors; 
‘‘(II) 
harvested 
in 
environ-
mentally sustainable quantities, as de-
termined by the appropriate Federal 
land manager; and 
‘‘(III) harvested in accordance 
with Federal and State law and appli-
cable land management plans.’’. 
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117 
(b) DEFINITION OF HIGH CONSERVATION PRIORITY 
LAND.—Section 211(o)(1) of the Clean Air Act (42 U.S.C. 
7545(o)) is amended by inserting the following at the end 
thereof: 
‘‘(M) 
HIGH
CONSERVATION
PRIORITY 
LAND.—The term ‘high conservation priority 
land’ means land that is not Federal land and 
is— 
‘‘(i) globally or State ranked as criti-
cally imperiled or imperiled under a State 
Natural Heritage Program; or 
‘‘(ii) old-growth or late-successional 
forest, as identified by the office of the State 
Forester or relevant State agency with regu-
latory jurisdiction over forestry activities.’’. 
SEC. 127. OPEN FUEL STANDARD. 
(a) FINDINGS.—The Congress finds that— 
(1) the status of oil as a strategic commodity, 
which derives from its domination of the transpor-
tation sector, presents a clear and present danger to 
the United States; 
(2) in a prior era, when salt was a strategic 
commodity, salt mines conferred national power and 
wars were fought over the control of such mines; 
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118 
(3) technology, in the form of electricity and re-
frigeration, decisively ended salt’s monopoly of meat 
preservation and greatly reduced its strategic impor-
tance; 
(4) fuel competition and consumer choice would 
similarly serve to end oil’s monopoly in the transpor-
tation sector and strip oil of its strategic status; 
(5) the current closed fuel market has allowed a 
cartel of petroleum exporting countries to inflate fuel 
prices, effectively imposing a harmful tax on the econ-
omy of the United States; 
(6) much of the inflated petroleum revenues the 
oil cartel earns at the expense of the people of the 
United States are used for purposes antithetical to the 
interests of the United States and its allies; 
(7) alcohol fuels, including ethanol and meth-
anol, could potentially provide significant supplies of 
additional fuels that could be produced in the United 
States and in many other countries in the Western 
Hemisphere that are friendly to the United States; 
(8) alcohol fuels can only play a major role in 
securing the energy independence of the United States 
if a substantial portion of vehicles in the United 
States are capable of operating on such fuels; 
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119 
(9) it is not in the best interest of United States 
consumers or the United States Government to be con-
strained to depend solely upon petroleum resources for 
vehicle fuels if alcohol fuels are potentially available; 
(10) existing technology, in the form of flexible 
fuel vehicles, allows internal combustion engine cars 
and trucks to be produced at little or no additional 
cost, which are capable of operating on conventional 
gasoline, alcohol fuels, or any combination of such 
fuels, as availability or cost advantage dictates, pro-
viding a platform on which fuels can compete; 
(11) the necessary distribution system for such 
alcohol fuels will not be developed in the United 
States until a substantial fraction of the vehicles in 
the United States are capable of operating on such 
fuels; 
(12) the establishment of such a vehicle fleet and 
distribution system would provide a large market that 
would mobilize private resources to substantially ad-
vance the technology and expand the production of al-
cohol fuels in the United States and abroad; 
(13) the United States has an urgent national 
security interest to develop alcohol fuels technology, 
production, and distribution systems as rapidly as 
possible; 
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120 
(14) new cars sold in the United States that are 
equipped with an internal combustion engine should 
allow for fuel competition by being flexible fuel vehi-
cles, and new diesel cars should be capable of oper-
ating on biodiesel; and 
(15) such an open fuel standard would help to 
protect the United States economy from high and 
volatile oil prices and from the threats caused by glob-
al instability, terrorism, and natural disaster. 
(b) OPEN FUEL STANDARD FOR TRANSPORTATION.— 
(1) Chapter 329 of title 49, United States Code, is amended 
by adding at the end the following: 
‘‘§ 32920. Open fuel standard for transportation 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) E85.—The term ‘E85’ means a fuel mixture 
containing 85 percent ethanol and 15 percent gasoline 
by volume. 
‘‘(2) FLEXIBLE FUEL AUTOMOBILE.—The term 
‘flexible fuel automobile’ means an automobile that 
has been warranted by its manufacturer to operate on 
gasoline, E85, and M85. 
‘‘(3) FUEL
CHOICE-ENABLING
AUTOMOBILE.— 
The term ‘fuel choice-enabling automobile’ means— 
‘‘(A) a flexible fuel automobile; or 
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121 
‘‘(B) an automobile that has been war-
ranted by its manufacturer to operate on bio-
diesel. 
‘‘(4) 
LIGHT-DUTY
AUTOMOBILE.—The 
term 
‘light-duty automobile’ means— 
‘‘(A) a passenger automobile; or 
‘‘(B) a non-passenger automobile. 
‘‘(5) 
LIGHT-DUTY
AUTOMOBILE
MANUFAC-
TURER’S
ANNUAL
COVERED
INVENTORY.—The term 
‘light-duty automobile manufacturer’s annual covered 
inventory’ means the number of light-duty auto-
mobiles powered by an internal combustion engine 
that a manufacturer, during a given calendar year, 
manufactures in the United States or imports from 
outside of the United States for sale in the United 
States. 
‘‘(6) M85.—The term ‘M85’ means a fuel mixture 
containing 85 percent methanol and 15 percent gaso-
line by volume. 
‘‘(b) OPEN FUEL STANDARD FOR TRANSPORTATION.— 
‘‘(1) IN GENERAL.—The Secretary may promul-
gate regulations to require each light-duty automobile 
manufacturer’s annual covered inventory to be com-
prised of a minimum percentage of fuel-choice ena-
bling automobiles, with sufficient lead time, if the 
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122 
Secretary, in coordination with the Secretary of En-
ergy and the Administrator of the Environmental 
Protection Agency, determines such requirement is a 
cost-effective way to achieve the Nation’s energy inde-
pendence and environmental objectives. The cost-effec-
tive determination shall consider the future avail-
ability of both alternative fuel supply and infrastruc-
ture to deliver the alternative fuel to the fuel-choice 
enabling vehicles. 
‘‘(2) TEMPORARY
EXEMPTION
FROM
REQUIRE-
MENTS.— 
‘‘(A) APPLICATION.—A manufacturer may 
request an exemption from the requirement de-
scribed in paragraph (1) by submitting an ap-
plication to the Secretary, at such time, in such 
manner, and containing such information as the 
Secretary may require by regulation. Each such 
application shall specify the models, lines, and 
types of automobiles affected. 
‘‘(B) EVALUATION.—After evaluating an 
application received from a manufacturer, the 
Secretary may at any time, under such terms 
and conditions, and to such extent as the Sec-
retary considers appropriate, temporarily ex-
empt, or renew the exemption of, a light-duty 
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123 
automobile from the requirement described in 
paragraph (1) if the Secretary determines that 
unavoidable events not under the control of the 
manufacturer prevent the manufacturer of such 
automobile from meeting its required production 
volume of fuel choice-enabling automobiles, in-
cluding— 
‘‘(i) a disruption in the supply of any 
component required for compliance with the 
regulations; 
‘‘(ii) a disruption in the use and in-
stallation by the manufacturer of such com-
ponent; or 
‘‘(iii) application to plug-in electric 
drive vehicles causing such vehicles to fail to 
meet State air quality requirements. 
‘‘(C) CONSOLIDATION.—The Secretary may 
consolidate applications received from multiple 
manufacturers under subparagraph (A) if they 
are of a similar nature. 
‘‘(D) CONDITIONS.—Any exemption granted 
under subparagraph (B) shall be conditioned 
upon the manufacturer’s commitment to recall 
the exempted automobiles for installation of the 
omitted components within a reasonable time 
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124 
proposed by the manufacturer and approved by 
the Secretary after such components become 
available in sufficient quantities to satisfy both 
anticipated production and recall volume re-
quirements. 
‘‘(E) NOTICE.—The Secretary shall publish 
in the Federal Register— 
‘‘(i) notice of each application received 
from a manufacturer; 
‘‘(ii) notice of each decision to grant or 
deny a temporary exemption; and 
‘‘(iii) the reasons for granting or deny-
ing such exemptions.’’. 
(2) The table of contents in chapter 329 of such title 
is amended adding at the end the following: 
‘‘32920. Open fuel standard for transportation.’’. 
SEC. 128. TEMPORARY VEHICLE TRADE-IN PROGRAM. 
(a) ESTABLISHMENT.—There is established in the Na-
tional Highway Traffic Safety Administration a program 
to be known as the ‘‘Cash for Clunkers Temporary Vehicle 
Trade-in Program’’ through which the Secretary, in accord-
ance with this section and the regulations promulgated 
under subsection (d), shall— 
(1) authorize the issuance of an electronic vouch-
er, subject to the specifications set forth in subsection 
(c), to offset the purchase price or lease price for a 
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