[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1875 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1875

     To lower gas prices by making investments in cleaner vehicle 
                    technologies and infrastructure.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 2011

 Mr. Cicilline (for himself, Mr. Larson of Connecticut, Mr. Bishop of 
New York, and Mr. Connolly of Virginia) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
  to the Committees on Transportation and Infrastructure, Energy and 
   Commerce, and Science, Space, and Technology, 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 lower gas prices by making investments in cleaner vehicle 
                    technologies and infrastructure.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Building Our Clean 
Energy Future Now Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
                     TITLE I--PUBLIC TRANSPORTATION

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Grants to improve public transportation services.
Sec. 104. Increased Federal share for Clean Air Act compliance.
Sec. 105. Transportation fringe benefits.
Sec. 106. Capital cost of contracting vanpool pilot program.
   TITLE II--DENIAL OF CERTAIN TAX BENEFITS TO MAJOR INTEGRATED OIL 
      COMPANIES AND INVESTMENT IN CLEAN ENERGY AND TRANSPORTATION

Sec. 201. Limitation on deduction for intangible drilling and 
                            development costs of major integrated oil 
                            companies in the case of oil and gas wells.
Sec. 202. Deduction for income attributable to domestic production 
                            activities not allowed with respect to oil 
                            and gas activities of major integrated oil 
                            companies.
Sec. 203. Major integrated oil companies ineligible for last-in, first-
                            out method of inventory.
Sec. 204. Credit for heavy natural gas and hybrid vehicles.
Sec. 205. Alternative fuel vehicle refueling property.
Sec. 206. Clean Energy Fund and deficit reduction.
               TITLE III--ADVANCED AND ELECTRIC VEHICLES

Sec. 301. Plug-in hybrid electric vehicle and electric vehicle 
                            infrastructure.
Sec. 302. Large-scale vehicle electrification program.
Sec. 303. Advanced vehicle technology.

                     TITLE I--PUBLIC TRANSPORTATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Providing Gas Price Relief Through 
Public Transportation Act of 2011''.

SEC. 102. FINDINGS.

    Congress finds the following:
            (1) In 2008, during a year of record-high gas prices, 
        people in the United States took more than 10,500,000,000 trips 
        using public transportation, the highest level in 50 years.
            (2) Public transportation use in the United States is up 31 
        percent since 1995, a figure that is more than double the 
        growth rate of the Nation's population and is substantially 
        greater than the growth rate for vehicle miles traveled on the 
        Nation's highways for that same period.
            (3) High gas prices in 2011 are expected to drive the 
        demand for transit services even higher, with some estimates 
        showing that $5-per-gallon gas could result in a nearly 15 
        percent jump in transit ridership.
            (4) Based on the price of gas in March 2011, riding public 
        transportation saves households an average of $825 per month, 
        or nearly $10,000 per year.
            (5) Despite increasing demand for transit services, 
        widespread cuts in State and local funding have caused 59 
        percent of public transit systems in the United States to raise 
        fares or cut service since January 2009.
            (6) Although under existing laws Federal employees in the 
        National Capital Region receive transit benefits, transit 
        benefits should be available to all Federal employees in the 
        United States so that the Federal Government sets a leading 
        example of greater public transportation use.
            (7) Public transportation stakeholders should engage and 
        involve local communities in the education and promotion of the 
        importance of utilizing public transportation.
            (8) Increasing public transportation use is a national 
        priority.

SEC. 103. GRANTS TO IMPROVE PUBLIC TRANSPORTATION SERVICES.

    (a) Authorizations of Appropriations.--
            (1) Urbanized area formula grants.--In addition to amounts 
        allocated under section 5338(b)(2)(B) of title 49, United 
        States Code, to carry out section 5307 of such title, there is 
        authorized to be appropriated $750,000,000 for each of fiscal 
        years 2011 and 2012 to carry out such section. Such funds shall 
        be apportioned not later than 7 days after the date on which 
        the funds are appropriated, in accordance with section 5336 
        (other than subsections (i)(1) and (j)) of such section but may 
        not be combined or commingled with any other funds apportioned 
        under such section 5336.
            (2) Formula grants for other than urbanized areas.--In 
        addition to amounts allocated under section 5338(b)(2)(G) of 
        title 49, United States Code, to carry out section 5311 of such 
        title, there is authorized to be appropriated $100,000,000 for 
        each of fiscal years 2011 and 2012 to carry out such section 
        5311. Such funds shall be apportioned not later than 7 days 
        after the date on which the funds are appropriated, in 
        accordance with such section 5311 but may not be combined or 
        commingled with any other funds apportioned under such section 
        5311.
    (b) Use of Funds.--Notwithstanding sections 5307 and 5311 of title 
49, United States Code, the Secretary of Transportation may make grants 
under such sections from amounts appropriated under subsection (a) only 
for one or more of the following:
            (1) If the recipient of the grant is reducing, or certifies 
        to the Secretary within the time the Secretary prescribes that, 
        during the term of the grant, the recipient will reduce one or 
        more fares the recipient charges for public transportation, or 
        in the case of subsection (f) of such section 5311, intercity 
        bus service, those operating costs of equipment and facilities 
        being used to provide the public transportation, or in the case 
        of subsection (f) of such section 5311, intercity bus service, 
        that the recipient is no longer able to pay from the revenues 
        derived from such fare or fares as a result of such reduction.
            (2) To avoid increases in fares for public transportation, 
        or in the case of subsection (f) of such section 5311, 
        intercity bus service, or decreases in current public 
        transportation service, or in the case of subsection (f) of 
        such section 5311, intercity bus service, that would otherwise 
        result from an increase in costs to the public transportation 
        or intercity bus agency for transportation-related fuel or 
        meeting additional transportation-related equipment or facility 
        maintenance needs, if the recipient of the grant certifies to 
        the Secretary within the time the Secretary prescribes that, 
        during the term of the grant, the recipient will not increase 
        the fares that the recipient charges for public transportation, 
        or in the case of subsection (f) of such section 5311, 
        intercity bus service, or, will not decrease the public 
        transportation service, or in the case of subsection (f) of 
        such section 5311, intercity bus service, that the recipient 
        provides.
            (3) If the recipient of the grant is expanding, or 
        certifies to the Secretary within the time the Secretary 
        prescribes that, during the term of the grant, the recipient 
        will expand public transportation service, or in the case of 
        subsection (f) of such section 5311, intercity bus service, 
        those operating and capital costs of equipment and facilities 
        being used to provide the public transportation service, or in 
        the case of subsection (f) of such section 5311, intercity bus 
        service, that the recipient incurs as a result of the expansion 
        of such service.
            (4) If the recipient of the grant is acquiring, or 
        certifies to the Secretary within the time the Secretary 
        prescribes that, during the term of the grant, the recipient 
        will acquire, clean fuel or alternative fuel vehicle-related 
        equipment or facilities for the purpose of improving fuel 
        efficiency, the costs of acquiring the equipment or facilities.
            (5) If the recipient of the grant is establishing or 
        expanding, or certifies to the Secretary within the time the 
        Secretary prescribes that, during the term of the grant, the 
        recipient will establish or expand commuter matching services 
        to provide commuters with information and assistance about 
        alternatives to single occupancy vehicle use, those 
        administrative costs in establishing or expanding such 
        services.
    (c) Federal Share.--Notwithstanding any other provision of law, the 
Federal share of the costs for which a grant is made under this section 
shall be 100 percent.
    (d) Period of Availability.--Funds appropriated under this section 
shall remain available for a period of 2 fiscal years.

SEC. 104. INCREASED FEDERAL SHARE FOR CLEAN AIR ACT COMPLIANCE.

    Notwithstanding section 5323(i)(1) of title 49, United States Code, 
a grant for a project to be assisted under chapter 53 of such title 
during fiscal years 2011 and 2012 that involves acquiring clean fuel or 
alternative fuel vehicle-related equipment or facilities for the 
purposes of complying with or maintaining compliance with the Clean Air 
Act (42 U.S.C. 7401 et seq.) shall be for 100 percent of the net 
project cost of the equipment or facility attributable to compliance 
with that Act unless the grant recipient requests a lower grant 
percentage.

SEC. 105. TRANSPORTATION FRINGE BENEFITS.

    (a) Requirement That Agencies Offer Transit Pass Transportation 
Fringe Benefits to Their Employees Nationwide.--
            (1) In general.--Section 3049(a)(1) of the Safe, 
        Accountable, Flexible, Efficient Transportation Equity Act: A 
        Legacy for Users (5 U.S.C. 7905 note; 119 Stat. 1711) is 
        amended--
                    (A) by striking ``Effective'' and all that follows 
                through ``each covered agency'' and inserting ``Each 
                agency''; and
                    (B) by inserting ``at a location in an urbanized 
                area of the United States that is served by fixed route 
                public transportation'' before ``shall be offered''.
            (2) Conforming amendments.--Section 3049(a) of such Act (5 
        U.S.C. 7905 note; 119 Stat. 1711) is amended--
                    (A) in paragraph (3)--
                            (i) by striking subparagraph (A); and
                            (ii) by redesignating subparagraphs (B) 
                        through (F) as subparagraphs (A) through (E), 
                        respectively; and
                    (B) in paragraph (4) by striking ``a covered 
                agency'' and inserting ``an agency''.
    (b) Benefits Described.--Section 3049(a)(2) of such Act (5 U.S.C. 
7905 note; 119 Stat. 1711) is amended by striking the period at the end 
and inserting the following: ``, except that the maximum level of such 
benefits shall be the maximum amount which may be excluded from gross 
income for qualified parking as in effect for a month under section 
132(f)(2)(B) of the Internal Revenue Code of 1986.''.
    (c) Guidance.--Section 3049(a) of such Act (5 U.S.C. 7905 note; 119 
Stat. 1711) is amended by adding at the end the following:
            ``(5) Guidance.--
                    ``(A) Issuance.--Not later than 60 days after the 
                date of enactment of this paragraph, the Secretary of 
                Transportation shall issue guidance on nationwide 
                implementation of the transit pass transportation 
                fringe benefits program under this subsection.
                    ``(B) Uniform application.--
                            ``(i) In general.--The guidance to be 
                        issued under subparagraph (A) shall contain a 
                        uniform application for use by all Federal 
                        employees applying for benefits from an agency 
                        under the program.
                            ``(ii) Required information.--As part of 
                        such an application, an employee shall provide, 
                        at a minimum, the employee's home and work 
                        addresses, a breakdown of the employee's 
                        commuting costs, and a certification of the 
                        employee's eligibility for benefits under the 
                        program.
                            ``(iii) Warning against false statements.--
                        Such an application shall contain a warning 
                        against making false statements in the 
                        application.
                    ``(C) Independent verification requirements.--The 
                guidance to be issued under subparagraph (A) shall 
                contain independent verification requirements to ensure 
                that, with respect to an employee of an agency--
                            ``(i) the eligibility of the employee for 
                        benefits under the program is verified by an 
                        official of the agency;
                            ``(ii) employee commuting costs are 
                        verified by an official of the agency; and
                            ``(iii) records of the agency are checked 
                        to ensure that the employee is not receiving 
                        parking benefits from the agency.
                    ``(D) Program implementation requirements.--The 
                guidance to be issued under subparagraph (A) shall 
                contain program implementation requirements applicable 
                to each agency to ensure that--
                            ``(i) benefits provided by the agency under 
                        the program are adjusted in cases of employee 
                        travel, leave, or change of address;
                            ``(ii) removal from the program is included 
                        in the procedures of the agency relating to an 
                        employee separating from employment with the 
                        agency; and
                            ``(iii) benefits provided by the agency 
                        under the program are made available using an 
                        electronic format (rather than using paper fare 
                        media) where such a format is available for 
                        use.
                    ``(E) Enforcement and penalties.--The guidance to 
                be issued under subparagraph (A) shall contain a 
                uniform administrative policy on enforcement and 
                penalties. Such policy shall be implemented by each 
                agency to ensure compliance with program requirements, 
                to prevent fraud and abuse, and, as appropriate, to 
                penalize employees who have abused or misused the 
                benefits provided under the program.
                    ``(F) Periodic reviews.--The guidance to be issued 
                under subparagraph (A) shall require each agency, not 
                later than September 1 of the first fiscal year 
                beginning after the date of enactment of this 
                paragraph, and every 3 years thereafter, to develop and 
                submit to the Secretary a review of the agency's 
                implementation of the program. Each such review shall 
                contain, at a minimum, the following:
                            ``(i) An assessment of the agency's 
                        implementation of the guidance, including a 
                        summary of the audits and investigations, if 
                        any, of the program conducted by the Inspector 
                        General of the agency.
                            ``(ii) Information on the total number of 
                        employees of the agency that are participating 
                        in the program.
                            ``(iii) Information on the total number of 
                        single occupancy vehicles removed from the 
                        roadway network as a result of participation by 
                        employees of the agency in the program.
                            ``(iv) Information on energy savings and 
                        emissions reductions, including reductions in 
                        greenhouse gas emissions, resulting from 
                        reductions in single occupancy vehicle use by 
                        employees of the agency that are participating 
                        in the program.
                            ``(v) Information on reduced congestion and 
                        improved air quality resulting from reductions 
                        in single occupancy vehicle use by employees of 
                        the agency that are participating in the 
                        program.
                            ``(vi) Recommendations to increase program 
                        participation and thereby reduce single 
                        occupancy vehicle use by Federal employees 
                        nationwide.
            ``(6) Reporting requirements.--Not later than September 30 
        of the first fiscal year beginning after the date of enactment 
        of this paragraph, and every 3 years thereafter, the Secretary 
        shall submit to the Committee on Transportation and 
        Infrastructure and the Committee on Oversight and Government 
        Reform of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate a report on 
        nationwide implementation of the transit pass transportation 
        fringe benefits program under this subsection, including a 
        summary of the information submitted by agencies pursuant to 
        paragraph (5)(F).''.
    (d) Effective Date.--Except as otherwise specifically provided, the 
amendments made by this section shall become effective on the first day 
of the first fiscal year beginning after the date of enactment of this 
Act.

SEC. 106. CAPITAL COST OF CONTRACTING VANPOOL PILOT PROGRAM.

    (a) Establishment.--The Secretary of Transportation shall establish 
and implement a pilot program to carry out vanpool demonstration 
projects in not more than 3 urbanized areas and not more than 2 other 
than urbanized areas.
    (b) Pilot Program.--
            (1) In general.--Notwithstanding section 5323(i) of title 
        49, United States Code, for each project selected for 
        participation in the pilot program, the Secretary shall allow 
        the non-Federal share provided by a recipient of assistance for 
        a capital project under chapter 53 of such title to include the 
        amounts described in paragraph (2).
            (2) Conditions on acquisition of vans.--The amounts 
        referred to in paragraph (1) are any amounts expended by a 
        private provider of public transportation by vanpool for the 
        acquisition of vans to be used by such private provider in the 
        recipient's service area, excluding any amounts the provider 
        may have received in Federal, State, or local government 
        assistance for such acquisition, if the private provider enters 
        into a legally binding agreement with the recipient that 
        requires the private provider to use all revenues it receives 
        in providing public transportation in such service area, in 
        excess of its operating costs, for the purpose of acquiring 
        vans to be used by the private provider in such service area.
    (c) Program Term.--The Secretary may approve an application for a 
vanpool demonstration project for fiscal years 2011 through 2012.
    (d) Report to Congress.--Not later than one year after the date of 
enactment of this Act, the Secretary shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the Senate a 
report containing an assessment of the costs, benefits, and 
efficiencies of the vanpool demonstration projects.

   TITLE II--DENIAL OF CERTAIN TAX BENEFITS TO MAJOR INTEGRATED OIL 
      COMPANIES AND INVESTMENT IN CLEAN ENERGY AND TRANSPORTATION

SEC. 201. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND 
              DEVELOPMENT COSTS OF MAJOR INTEGRATED OIL COMPANIES IN 
              THE CASE OF OIL AND GAS WELLS.

    (a) In General.--Subsection (c) of section 263 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
sentence: ``This subsection shall not apply to intangible drilling and 
development costs paid or incurred by any major integrated oil company 
(as defined in section 167(h)(5)) in the case of oil and gas wells.''.
    (b) Conforming Amendment.--Subsection (c) of section 263 of such 
Code is amended by inserting ``(determined without regard to the last 
sentence of this subsection)'' after ``in the same manner as such 
expenses are deductible in the case of oil and gas wells''.
    (c) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after the date 
of the enactment of this Act.

SEC. 202. DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION 
              ACTIVITIES NOT ALLOWED WITH RESPECT TO OIL AND GAS 
              ACTIVITIES OF MAJOR INTEGRATED OIL COMPANIES.

    (a) In General.--Subparagraph (B) of section 199(c)(4) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (ii), by striking the period at the end of clause (iii) and 
inserting ``, and'', and by inserting after clause (iii) the following 
new clause:
                            ``(iv) in the case of a major integrated 
                        oil company (as defined in section 167(h)(5)), 
                        the production, refining, processing, 
                        transportation, or distribution of oil, gas, or 
                        any primary product thereof.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 203. MAJOR INTEGRATED OIL COMPANIES INELIGIBLE FOR LAST-IN, FIRST-
              OUT METHOD OF INVENTORY.

    (a) In General.--Section 471 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (c) as subsection (d) and by 
inserting after subsection (b) the following new subsection:
    ``(c) Major Integrated Oil Companies Ineligible for Last-in, First-
out Method.--In the case of a major integrated oil company (as defined 
in section 167(h)(5)(B))--
            ``(1) the last-in, first-out method of determining 
        inventories shall in no event be treated as clearly reflecting 
        income, and
            ``(2) sections 472 and 473 shall not apply.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after the date of the 
        enactment of this Act.
            (2) Change in method of accounting.--In the case of any 
        taxpayer required by the amendments made by this section to 
        change its method of accounting for its first taxable year 
        beginning after the date of the enactment of this Act--
                    (A) such change shall be treated as initiated by 
                the taxpayer,
                    (B) such change shall be treated as made with the 
                consent of the Secretary of the Treasury, and
                    (C) if the net amount of the adjustments required 
                to be taken into account by the taxpayer under section 
                481 of the Internal Revenue Code of 1986 is positive, 
                such amount shall be taken into account over a period 
                of 8 years beginning with such first taxable year.

SEC. 204. CREDIT FOR HEAVY NATURAL GAS AND HYBRID VEHICLES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30E. HEAVY NATURAL GAS AND HEAVY HYBRID VEHICLE CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of--
            ``(1) the new qualified heavy natural gas motor vehicle 
        credit determined under subsection (b), and
            ``(2) the new qualified heavy hybrid motor vehicle credit 
        determined under subsection (c).
    ``(b) New Qualified Heavy Natural Gas Motor Vehicle Credit.--
            ``(1) In general.--The new qualified heavy natural gas 
        motor vehicle credit determined under this subsection is an 
        amount equal to 80 percent of the incremental cost of any new 
        qualified heavy natural gas motor vehicle placed in service by 
        the taxpayer during the taxable year.
            ``(2) New qualified heavy natural gas motor vehicle.--For 
        purposes of this subsection, the term `new qualified heavy 
        natural gas motor vehicle' means any motor vehicle--
                    ``(A) which is only capable of operating on 
                compressed or liquified natural gas,
                    ``(B) which has a gross vehicle weight rating of 
                more than 8,500 pounds,
                    ``(C) the original use of which commences with the 
                taxpayer,
                    ``(D) which is acquired by the taxpayer for use or 
                lease, but not for resale, and
                    ``(E) which is made by a manufacturer.
            ``(3) Credit for mixed-fuel vehicles.--
                    ``(A) In general.--In the case of a mixed-fuel 
                vehicle placed in service by the taxpayer during the 
                taxable year, the credit determined under this 
                subsection is an amount equal to--
                            ``(i) in the case of a 65/35 mixed-fuel 
                        vehicle, 65 percent of the credit which would 
                        have been allowed under this subsection if such 
                        vehicle was a new qualified heavy natural gas 
                        motor vehicle, and
                            ``(ii) in the case of a 90/10 mixed-fuel 
                        vehicle, 90 percent of the credit which would 
                        have been allowed under this subsection if such 
                        vehicle was a new qualified heavy natural gas 
                        motor vehicle.
                    ``(B) Mixed-fuel vehicle.--For purposes of this 
                paragraph, the term `mixed-fuel vehicle' means any 
                motor vehicle which--
                            ``(i) would be a new qualified heavy 
                        natural gas motor vehicle but for the 
                        requirement of paragraph (2)(A),
                            ``(ii) is certified by the manufacturer as 
                        being able to perform efficiently in normal 
                        operation on a combination of compressed or 
                        liquified natural gas and another petroleum-
                        based fuel, and
                            ``(iii) either--
                                    ``(I) has received a certificate of 
                                conformity under the Clean Air Act, or
                                    ``(II) has received an order 
                                certifying the vehicle as meeting the 
                                same requirements as vehicles which may 
                                be sold or leased in California and 
                                meets or exceeds the low emission 
                                vehicle standard under section 88.105-
                                94 of title 40, Code of Federal 
                                Regulations, for that make and model 
                                year vehicle.
                    ``(C) 65/35 mixed-fuel vehicle.--For purposes of 
                this paragraph, the term `65/35 mixed-fuel vehicle' 
                means a mixed-fuel vehicle which operates using at 
                least 65 percent compressed or liquified natural gas 
                and not more than 35 percent petroleum-based fuel.
                    ``(D) 90/10 mixed-fuel vehicle.--For purposes of 
                this paragraph, the term `90/10 mixed-fuel vehicle' 
                means a mixed-fuel vehicle which operates using at 
                least 90 percent compressed or liquified natural gas 
                and not more than 10 percent petroleum-based fuel.
    ``(c) New Qualified Heavy Hybrid Motor Vehicle Credit.--
            ``(1) In general.--The new qualified heavy natural gas 
        motor vehicle credit determined under this subsection is an 
        amount equal to 80 percent of the incremental cost of any new 
        qualified heavy hybrid motor vehicle placed in service by the 
        taxpayer during the taxable year.
            ``(2) New qualified heavy hybrid motor vehicle.--For 
        purposes of this subsection--
                    ``(A) In general.--The term `new qualified heavy 
                hybrid motor vehicle' means a motor vehicle--
                            ``(i) which draws propulsion energy from an 
                        onboard rechargeable energy storage system,
                            ``(ii) which, in the case of a vehicle 
                        which has an internal combustion or heat engine 
                        which uses consumable fuel, has received, with 
                        respect to such engine, a certificate of 
                        conformity under the Clean Air Act as meeting 
                        the emission standards set in the regulations 
                        prescribed by the Administrator of the 
                        Environmental Protection Agency for 2004 
                        through 2007 model year diesel heavy duty 
                        engines or ottocycle heavy duty engines, as 
                        applicable,
                            ``(iii) which has a gross vehicle weight 
                        rating of more than 8,500 pounds,
                            ``(iv) which has a maximum available power 
                        of at least--
                                    ``(I) 10 percent in the case of a 
                                vehicle which has a gross vehicle 
                                weight rating of not more than 14,000 
                                pounds, and
                                    ``(II) 15 percent in the case of a 
                                vehicle which has a gross vehicle 
                                weight rating of more than 14,000 
                                pounds,
                            ``(v) the original use of which commences 
                        with the taxpayer,
                            ``(vi) which is acquired by the taxpayer 
                        for use or lease, but not for resale, and
                            ``(vii) which is made by a manufacturer.
                    ``(B) Consumable fuel.--For purposes of 
                subparagraph (A)(ii)(I), the term `consumable fuel' 
                means any solid, liquid, or gaseous matter which 
                releases energy when consumed by an auxiliary power 
                unit.
                    ``(C) Maximum available power.--For purposes of 
                subparagraph (A)(iii), the term `maximum available 
                power' means the maximum power available from the 
                rechargeable energy storage system during a standard 10 
                second pulse power or equivalent test, divided by the 
                vehicle's total traction power. For purposes of the 
                preceding sentence, the term `total traction power' 
                means the sum of the peak power from the rechargeable 
                energy storage system and the heat engine peak power of 
                the vehicle, except that if such storage system is the 
                sole means by which the vehicle can be driven, the 
                total traction power is the peak power of such storage 
                system.
    ``(d) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart A 
                for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subsection (a) for 
                any taxable year (determined after application of 
                paragraph (1)) shall not exceed the excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section and 
                        sections 23 and 25D) and section 27 for the 
                        taxable year.
    ``(e) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Incremental cost.--The term `incremental cost' means, 
        with respect to any motor vehicle, the excess of the 
        manufacturer's suggested retail price for such vehicle over 
        such price for a gasoline or diesel fuel motor vehicle of the 
        same model (or, if there is no such gasoline or diesel fuel 
        motor vehicle of the same model, a gasoline or diesel fuel 
        motor vehicle which is comparable in weight, size, and use to 
        such vehicle), to the extent such amount does not exceed--
                    ``(A) $20,000, if such vehicle has a gross vehicle 
                weight rating of not more than 14,000 pounds,
                    ``(B) $50,000, if such vehicle has a gross vehicle 
                weight rating of more than 14,000 pounds but not more 
                than 26,000 pounds,
                    ``(C) $80,000, if such vehicle has a gross vehicle 
                weight rating of more than 26,000 pounds but not more 
                than 33,000 pounds, and
                    ``(D) $100,000, if such vehicle has a gross vehicle 
                weight rating of more than 33,000 pounds.
        The amount described in the preceding sentence shall be 
        certified by the manufacturer and shall be determined in 
        accordance with guidance prescribed by the Secretary.
            ``(2) Motor vehicle.--The term `motor vehicle' means any 
        vehicle which is manufactured primarily for use on public 
        streets, roads, and highways (not including a vehicle operated 
        exclusively on a rail or rails) and which has at least 4 
        wheels.
            ``(3) Manufacturer.--The term `manufacturer' has the 
        meaning given such term in regulations prescribed by the 
        Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
            ``(4) Reduction in basis.--For purposes of this subtitle, 
        the basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed (determined without regard to subsection (d)).
            ``(5) No double benefit.--The amount of any deduction or 
        other credit allowable under this chapter with respect to any 
        motor vehicle shall be reduced by the amount of the credit 
        allowed under subsection (a) for such vehicle (determined 
        without regard to subsection (d)).
            ``(6) Property used by tax-exempt entity.--In the case of a 
        vehicle whose use is described in paragraph (3) or (4) of 
        section 50(b) and which is not subject to a lease, the person 
        who sold such vehicle to the person or entity using such 
        vehicle shall be treated as the taxpayer that placed such 
        vehicle in service, but only if such person clearly discloses 
        to such person or entity in a document the amount of any credit 
        allowable under subsection (a) with respect to such vehicle 
        (determined without regard to subsection (d)). For purposes of 
        subsection (d), property to which this paragraph applies shall 
        be treated as of a character subject to an allowance for 
        depreciation.
            ``(7) Property used outside united states, etc., not 
        qualified.--No credit shall be allowable under subsection (a) 
        with respect to any property referred to in section 50(b)(1) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(8) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit (including recapture in 
        the case of a lease period of less than the economic life of a 
        vehicle).
            ``(9) Election to not take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects to not have this section apply to such vehicle.
            ``(10) Interaction with air quality and motor vehicle 
        safety standards.--Unless otherwise provided in this section, a 
        motor vehicle shall not be considered eligible for a credit 
        under this section unless such vehicle is in compliance with--
                    ``(A) the applicable provisions of the Clean Air 
                Act for the applicable make and model year of the 
                vehicle (or applicable air quality provisions of State 
                law in the case of a State which has adopted such 
                provision under a waiver under section 209(b) of the 
                Clean Air Act), and
                    ``(B) the motor vehicle safety provisions of 
                sections 30101 through 30169 of title 49, United States 
                Code.
    ``(f) Termination.--This section shall not apply to motor vehicles 
acquired after December 31, 2016.''.
    (b) Coordination With New Qualified Plug-in Electric Drive Motor 
Vehicle Credit.--Subparagraph (E) of section 30D(d)(1) of such Code is 
amended by striking ``less than 14,000 pounds'' and inserting ``not 
more than 8,500 pounds''.
    (c) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (35), by striking the period 
        at the end of paragraph 36 and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(37) the portion of the new qualified heavy natural gas 
        motor vehicle credit and the new qualified heavy hybrid motor 
        vehicle credit to which section 30E(d)(1) applies.''.
            (2) Section 24(b)(3)(B) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (3) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``30E,'' after ``30D,''.
            (4) Section 26(a)(1) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (5) Section 30(c)(2) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (6) Section 30B(g)(2)(B)(ii) of such Code is amended by 
        striking ``and 30D'' and inserting ``30D, and 30E''.
            (7) Section 30D(c)(2)(B)(ii) of such Code is amended by 
        striking ``and 25D'' and inserting ``25D, and 30E''.
            (8) Section 904(i) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (9) Section 1400C(d)(2) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (10) Section 30E(e)(2)(B)(ii) of such Code, as added by 
        this section, is amended by striking ``sections 23 and 25D'' 
        and inserting ``section 25D''.
            (11) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(38) to the extent provided in section 30E(e)(4).''.
            (12) Section 6501(m) of such Code is amended by inserting 
        ``30E(e)(9),'' after ``30D(e)(4),''.
            (13) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 30E. Heavy natural gas and heavy hybrid vehicle credit.''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to vehicles acquired after December 31, 2010.
            (2) Application of egtrra sunset.--
                    (A) The amendment made by subsection (c)(2) shall 
                be subject to title IX of the Economic Growth and Tax 
                Relief Reconciliation Act of 2001 in the same manner as 
                the provision of such Act to which such amendment 
                relates.
                    (B) The amendment made by subsection (c)(10) shall 
                be subject to title IX of the Economic Growth and Tax 
                Relief Reconciliation Act of 2001 in the same manner as 
                the amendments made by section 10909 of the Patient 
                Protection and Affordable Care Act.

SEC. 205. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

    (a) Extension of Credit.--Subsection (g) of section 30C of the 
Internal Revenue Code of 1986 is amended by striking ``placed in 
service'' and all that follows and inserting ``placed in service after 
December 31, 2014.''.
    (b) Extension of Increased Credit Limitations.--Paragraph (6) of 
section 30C(e) of such Code is amended--
            (1) by striking ``January 1, 2011'' and inserting ``January 
        1, 2014'', and
            (2) by striking ``and 2010'' in the heading and inserting 
        ``thru 2013''.
    (c) Extension of Credit to Refueling of Non-highway Hydrogen Fuel 
Cell Vehicles.--Subsection (c) of section 30C of such Code is amended 
by striking ``and'' at the end of paragraph (1), by redesignating 
paragraph (2) as paragraph (3), and by inserting after paragraph (1) 
the following new paragraph:
            ``(2) in the case of a vehicle propelled by a fuel cell 
        power plant (as defined in section 48(c)(1)(C)) which converts 
        hydrogen into electricity, the term `motor vehicle' includes 
        any vehicle which is not operated exclusively on rails and the 
        primary purpose of which is other than the transport of 
        passengers, and''.
    (d) Clarification of Definition of Electric Refueling Property.--
Subparagraph (B) of section 179A(d)(3) of such Code is amended to read 
as follows:
                    ``(B) exclusively used for the recharging of motor 
                vehicles propelled by electricity (other than property 
                used for the generation of electricity).''.
    (e) 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. 206. CLEAN ENERGY FUND AND DEFICIT REDUCTION.

    (a) Clean Energy Fund.--Subchapter A of chapter 98 of such Code is 
amended by adding at the end the following new section:

``SEC. 9512. CLEAN ENERGY FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Clean Energy 
Fund', consisting of such amounts as may be appropriated or credited to 
such fund as provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated 
annually to the Clean Energy Fund for each of fiscal years 2011 through 
2020 the lesser of--
            ``(1) $1,000,000,000 ($1,850,000,000 in the case of fiscal 
        years 2011 and 2012), or
            ``(2) amounts equivalent (as determined by the Secretary) 
        to the increase in Federal revenue with respect to such fiscal 
        year by reason of the amendments made by sections 201, 202, and 
        203 of the Building Our Clean Energy Future Now Act of 2011.
    ``(c) Expenditures.--Amounts in the Clean Energy Fund shall be 
available, without the need of further appropriation, for purposes of 
carrying out titles I and III of the Building Our Clean Energy Future 
Now Act of 2011 (and the amendments made by such titles). Amounts 
appropriated to the Clean Energy Fund shall remain available without 
fiscal year limitation.''.
    (b) Deficit Reduction.--The excess Federal revenue under this title 
shall be deposited in the Treasury and used for Federal budget deficit 
reduction or, if there is no Federal budget deficit, for reducing the 
Federal debt in such manner as the Secretary of the Treasury considers 
appropriate. For purposes of the preceding sentence, the term ``excess 
Federal revenue under this title'' means so much of the increase in 
Federal revenue by reason of the amendments made by sections 201, 202, 
and 203 of this Act as exceeds the sum of the amounts appropriated to 
the Clean Energy Fund under section 9512(b) of the Internal Revenue 
Code of 1986 (as added by this section) plus any reductions in Federal 
revenue by reason of the amendments made by sections 204 and 205 of 
this Act.
    (c) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of such Code is amended by adding at the end the following 
new item:

``Sec. 9512. Clean Energy Fund.''.

               TITLE III--ADVANCED AND ELECTRIC VEHICLES

SEC. 301. PLUG-IN HYBRID ELECTRIC VEHICLE AND ELECTRIC VEHICLE 
              INFRASTRUCTURE.

    (a) Amendment of PURPA.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
            ``(20) Plug-in hybrid electric vehicle and electric vehicle 
        infrastructure.--
                    ``(A) Utility plan for infrastructure.--Each 
                electric utility shall develop a plan to support the 
                use of plug-in hybrid electric vehicles and electric 
                vehicles, including heavy-duty hybrid electric 
                vehicles. The plan may provide for deployment of 
                electrical charging stations in public or private 
                locations, including street parking, parking garages, 
                parking lots, homes, gas stations, and highway rest 
                stops. Any such plan may also include--
                            ``(i) battery exchange, fast charging 
                        infrastructure, and other services;
                            ``(ii) triggers for infrastructure 
                        deployment based upon market penetration of 
                        plug-in hybrid electric vehicles and electric 
                        vehicles; and
                            ``(iii) such other elements as the State 
                        determines necessary to support electric 
                        vehicles and plug-in hybrid electric vehicles.
                Each plan under this paragraph shall provide for the 
                deployment of the charging infrastructure or other 
                infrastructure necessary to adequately support the use 
                of plug-in hybrid electric vehicles and electric 
                vehicles.
                    ``(B) Support requirements.--Each State regulatory 
                authority (with respect to each electric utility for 
                which it has ratemaking authority) and each 
                nonregulated electric utility shall--
                            ``(i) require that charging infrastructure 
                        deployed is interoperable with products of all 
                        auto manufacturers to the extent possible; and
                            ``(ii) consider adopting minimum 
                        requirements for deployment of electrical 
                        charging infrastructure and other appropriate 
                        requirements necessary to support the use of 
                        plug-in hybrid electric vehicles and electric 
                        vehicles.
                    ``(C) Cost recovery.--Each State regulatory 
                authority (with respect to each electric utility for 
                which it has ratemaking authority) and each 
                nonregulated electric utility shall consider whether, 
                and to what extent, to allow cost recovery for plans 
                and implementation of plans.
                    ``(D) Smart grid integration.--Each State 
                regulatory authority (with respect to each electric 
                utility for which it has ratemaking authority) and each 
                nonregulated electric utility shall--
                            ``(i) establish any appropriate protocols 
                        and standards for integrating plug-in hybrid 
                        electric vehicles and electric vehicles into an 
                        electrical distribution system, including smart 
                        grid systems and devices;
                            ``(ii) include the ability for each plug-in 
                        hybrid electric vehicle and electric vehicle to 
                        be identified individually and to be associated 
                        with its owner's electric utility account, 
                        regardless of the location that the vehicle is 
                        plugged in, for purposes of appropriate billing 
                        for any electricity required to charge the 
                        vehicle's batteries as well as any crediting 
                        for electricity provided to the electric 
                        utility from the vehicle's batteries; and
                            ``(iii) review the determination made in 
                        response to paragraph (14) in light of this 
                        paragraph, including whether time-of-use 
                        pricing should be employed to enable the use of 
                        plug-in hybrid electric vehicles and electric 
                        vehicles to contribute to meeting peak-load 
                        power needs.''.
    (b) Compliance.--
            (1) Time limitations.--Section 112(b) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 
        by adding the following at the end thereof:
            ``(7)(A) Not later than 1 year after the enactment of this 
        paragraph, each State regulatory authority (with respect to 
        each electric utility for which it has ratemaking authority) 
        and each nonregulated electric utility shall commence the 
        consideration referred to in section 111, or set a hearing date 
        for consideration, with respect to the standard established by 
        paragraph (20) of section 111(d).
                    ``(B) Not later than 2 years after the date of the 
                enactment of this paragraph, each State regulatory 
                authority (with respect to each electric utility for 
                which it has ratemaking authority), and each 
                nonregulated electric utility, shall complete the 
                consideration, and shall make the determination, 
                referred to in section 111 with respect to the standard 
                established by paragraph (20) of section 111(d).''.
            (2) Failure to comply.--Section 112(c) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is 
        amended by adding the following at the end:
    ``In the case of the standards established by paragraph (20) of 
section 111(d), the reference contained in this subsection to the date 
of enactment of this Act shall be deemed to be a reference to the date 
of enactment of such paragraph.''.
            (3) Prior state actions.--Section 112(d) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) is 
        amended by inserting ``and paragraph (20)'' before ``of section 
        111(d)''.

SEC. 302. LARGE-SCALE VEHICLE ELECTRIFICATION PROGRAM.

    (a) Deployment Program.--The Secretary of Energy shall establish a 
program to deploy and integrate plug-in electric drive vehicles in 
multiple regions. In carrying out the program, the Secretary may 
provide financial assistance described under subsection (d), consistent 
with the goals under subsection (b). The Secretary shall select regions 
based upon applications for assistance received pursuant to subsection 
(c).
    (b) Goals.--The goals of the program established pursuant to 
subsection (a) shall be--
            (1) to demonstrate the viability of a vehicle-based 
        transportation system that is not overly dependent on petroleum 
        as a fuel and contributes to lower carbon emissions than a 
        system based on conventional vehicles;
            (2) to facilitate the integration of advanced vehicle 
        technologies into electricity distribution areas to improve 
        system performance and reliability;
            (3) to demonstrate the potential benefits of coordinated 
        investments in vehicle electrification on personal mobility and 
        a regional grid;
            (4) to demonstrate protocols and standards that facilitate 
        vehicle integration into the grid; and
            (5) to investigate differences in each region and 
        regulatory environment regarding best practices in implementing 
        vehicle electrification.
    (c) Applications.--Any State or local government (or group of State 
or local governments) may apply to the Secretary of Energy for 
financial assistance in furthering the regional deployment of plug-in 
electric drive vehicles. Such applications may be jointly sponsored by 
electric utilities, automobile manufacturers, technology providers, car 
sharing companies or organizations, or other persons or entities.
    (d) Use of Funds.--Pursuant to applications received under 
subsection (c), the Secretary of Energy may make financial assistance 
available to any applicant or joint sponsor of the application to be 
used for any of the following:
            (1) Assisting persons located in the regional deployment 
        area, including fleet owners, in the purchase of new plug-in 
        electric drive vehicles by offsetting in whole or in part the 
        incremental cost of such vehicles above the cost of comparable 
        conventionally fueled vehicles.
            (2) Supporting the use of plug-in electric drive vehicles 
        by funding projects for the deployment of any of the following:
                    (A) Electrical charging stations for plug-in 
                electric drive vehicles, including battery exchange, 
                fast charging infrastructure, and other services, in 
                public or private locations, including street parking, 
                parking garages, parking lots, homes, gas stations, and 
                highway rest stops.
                    (B) Smart grid equipment and infrastructure to 
                facilitate the charging and integration of plug-in 
                electric drive vehicles.
            (3) Such other projects as the Secretary determines 
        appropriate to support the large-scale deployment of plug-in 
        electric drive vehicles in regional deployment areas.
    (e) Program Requirements.--The Secretary of Energy shall determine 
design elements and requirements of the program established pursuant to 
subsection (a), including--
            (1) the type of financial mechanism with which to provide 
        financial assistance;
            (2) criteria for evaluating applications submitted under 
        subsection (c), including the anticipated ability to promote 
        deployment and market penetration of vehicles that are less 
        dependent on petroleum as fuel source; and
            (3) reporting requirements for entities that receive 
        financial assistance under this section, including a 
        comprehensive set of performance data characterizing the 
        results of the deployment program.
    (f) Information Clearinghouse.--The Secretary of Energy shall, as 
part of the program established pursuant to subsection (a), collect and 
make available to the public information regarding the cost, 
performance, and other technical data regarding the deployment and 
integration of plug-in electric drive vehicles.
    (g) Authorization.--There are authorized to be appropriated to 
carry out this section, $450,000,000 for each of fiscal years 2012 
through 2016.

SEC. 303. ADVANCED VEHICLE TECHNOLOGY.

    (a) Short Title.--This section may be cited as the ``Advanced 
Vehicle Technology Act of 2011''.
    (b) Findings.--Congress finds the following:
            (1) According to the Energy Information Administration, the 
        transportation sector accounts for approximately 28 percent of 
        the United States primary energy demand and greenhouse gas 
        emissions, and 24 percent of global oil demand.
            (2) The United States transportation sector is over 95 
        percent dependent on petroleum, and over 60 percent of 
        petroleum demand is met by imported supplies.
            (3) United States heavy truck fuel consumption will 
        increase 23 percent by 2030, while overall transportation 
        energy use will decline by 1 percent.
            (4) The domestic automotive and commercial vehicle 
        manufacturing sectors have increasingly limited resources for 
        research, development, and engineering of advanced 
        technologies.
            (5) Vehicle, engine, and component manufacturers are 
        playing a more important role in vehicle technology 
        development, and should be better integrated into Federal 
        research efforts.
            (6) Priorities for the Department of Energy's vehicle 
        technologies research have shifted drastically in recent years 
        among diesel hybrids, hydrogen fuel cell vehicles, and plug-in 
        electric hybrids, with little continuity among them.
            (7) The integration of vehicle, communication, and 
        infrastructure technologies has great potential for efficiency 
        gains through better management of the total transportation 
        system.
            (8) The Federal Government should balance its role in 
        researching longer-term exploratory concepts and developing 
        nearer-term transformational technologies for vehicles.
    (c) Objectives.--The objectives of this section are to--
            (1) develop United States technologies and practices that--
                    (A) improve the fuel efficiency and emissions of 
                all vehicles produced in the United States; and
                    (B) reduce vehicle reliance on petroleum-based 
                fuels;
            (2) support domestic research, development, engineering, 
        demonstration, and commercial application and manufacturing of 
        advanced vehicles, engines, and components;
            (3) enable vehicles to move larger volumes of goods and 
        more passengers with less energy and emissions;
            (4) develop cost-effective advanced technologies for wide-
        scale utilization throughout the passenger, commercial, 
        government, and transit vehicle sectors;
            (5) allow for greater consumer choice of vehicle 
        technologies and fuels;
            (6) shorten technology development and integration cycles 
        in the vehicle industry;
            (7) ensure a proper balance and diversity of Federal 
        investment in vehicle technologies; and
            (8) strengthen partnerships between Federal and State 
        governmental agencies and the private and academic sectors.
    (d) Definitions.--For the purposes of this section:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for United States research, development, 
engineering, demonstration, and commercial application of vehicles and 
related technologies, including activities authorized under this 
section, $550,000,000 for each of fiscal years 2012 through 2016.
    (f) Vehicle Research and Development.--
            (1) Program.--
                    (A) Activities.--The Secretary shall conduct a 
                program of basic and applied research, development, 
                engineering, demonstration, and commercial application 
                activities on materials, technologies, and processes 
                with the potential to substantially reduce or eliminate 
                petroleum use and the emissions of the Nation's 
                passenger and commercial vehicles, including activities 
                in the areas of--
                            (i) hybridization or full electrification 
                        of vehicle systems;
                            (ii) batteries and other energy storage 
                        devices;
                            (iii) power electronics;
                            (iv) vehicle, component, and subsystem 
                        manufacturing technologies and processes;
                            (v) engine efficiency and combustion 
                        optimization;
                            (vi) waste heat recovery;
                            (vii) transmission and drivetrains;
                            (viii) hydrogen vehicle technologies, 
                        including fuel cells and internal combustion 
                        engines, and hydrogen infrastructure;
                            (ix) compressed natural gas vehicle 
                        technologies;
                            (x) aerodynamics, rolling resistance, and 
                        accessory power loads of vehicles and 
                        associated equipment;
                            (xi) vehicle weight reduction, including 
                        lightweighting materials;
                            (xii) friction and wear reduction;
                            (xiii) engine and component durability;
                            (xiv) innovative propulsion systems;
                            (xv) advanced boosting systems;
                            (xvi) hydraulic hybrid technologies;
                            (xvii) engine compatibility with and 
                        optimization for a variety of transportation 
                        fuels including natural gas and other liquid 
                        and gaseous fuels;
                            (xviii) predictive engineering, modeling, 
                        and simulation of vehicle and transportation 
                        systems;
                            (xix) refueling and charging infrastructure 
                        for alternative fueled and electric or plug-in 
                        electric hybrid vehicles, including the unique 
                        challenges facing rural areas;
                            (xx) gaseous fuels storage systems and 
                        system integration and optimization;
                            (xxi) sensing, communications, and 
                        actuation technologies for vehicle, electrical 
                        grid, and infrastructure;
                            (xxii) efficient use, substitution, and 
                        recycling of potentially critical materials in 
                        vehicles, including rare earth elements and 
                        precious metals, at risk of supply disruption;
                            (xxiii) aftertreatment technologies;
                            (xxiv) thermal management of battery 
                        systems;
                            (xxv) retrofitting advanced vehicle 
                        technologies to existing vehicles;
                            (xxvi) development of common standards, 
                        specifications, and architectures for both 
                        transportation and stationary battery 
                        applications;
                            (xxvii) advanced internal combustion 
                        engines; and
                            (xxviii) other research areas as determined 
                        by the Secretary.
                    (B) Transformational technology.--The Secretary 
                shall ensure that the Department continues to support 
                research, development, engineering, demonstration, and 
                commercial application activities and maintains 
                competency in mid- to long-term transformational 
                vehicle technologies with potential to achieve deep 
                reductions in petroleum use and emissions, including 
                activities in the areas of--
                            (i) hydrogen vehicle technologies, 
                        including fuel cells, internal combustion 
                        engines, hydrogen storage, infrastructure, and 
                        activities in hydrogen technology validation 
                        and safety codes and standards;
                            (ii) multiple battery chemistries and novel 
                        energy storage devices, including nonchemical 
                        batteries and electromechanical storage 
                        technologies such as hydraulics, flywheels, and 
                        compressed air storage;
                            (iii) communication and connectivity among 
                        vehicles, infrastructure, and the electrical 
                        grid; and
                            (iv) other innovative technologies research 
                        and development, as determined by the 
                        Secretary.
                    (C) Industry participation.--To the maximum extent 
                practicable, activities under this section shall be 
                carried out in partnership or collaboration with 
                automotive manufacturers, heavy commercial, vocational, 
                and transit vehicle manufacturers, qualified plug-in 
                electric vehicle manufacturers, compressed natural gas 
                vehicle manufacturers, vehicle and engine equipment and 
                component manufacturers, manufacturing equipment 
                manufacturers, advanced vehicle service providers, fuel 
                producers and energy suppliers, electric utilities, 
                universities, national laboratories, and independent 
                research laboratories. In carrying out this section the 
                Secretary shall--
                            (i) determine whether a wide range of 
                        companies that manufacture or assemble vehicles 
                        or components in the United States are 
                        represented in ongoing public private 
                        partnership activities, including firms that 
                        have not traditionally participated in 
                        federally sponsored research and development 
                        activities, and where possible, partner with 
                        such firms that conduct significant and 
                        relevant research and development activities in 
                        the United States;
                            (ii) leverage the capabilities and 
                        resources of, and formalize partnerships with, 
                        industry-led stakeholder organizations, 
                        nonprofit organizations, industry consortia, 
                        and trade associations with expertise in the 
                        research and development of, and education and 
                        outreach activities in, advanced automotive and 
                        commercial vehicle technologies;
                            (iii) develop more efficient processes for 
                        transferring research findings and technologies 
                        to industry;
                            (iv) give consideration to conversion of 
                        existing or former vehicle technology 
                        development or manufacturing facilities for the 
                        purposes of this section;
                            (v) establish and support public-private 
                        partnerships, dedicated to overcoming barriers 
                        in commercial application of transformational 
                        vehicle technologies, that utilize such 
                        industry-led technology development facilities 
                        of entities with demonstrated expertise in 
                        successfully designing and engineering pre-
                        commercial generations of such transformational 
                        technology; and
                            (vi) promote efforts to ensure that 
                        technology research, development, engineering, 
                        and commercial application activities funded 
                        under this section are carried out in the 
                        United States.
                    (D) Interagency and intraagency coordination.--To 
                the maximum extent practicable, the Secretary shall 
                coordinate research, development, demonstration, and 
                commercial application activities among--
                            (i) relevant programs within the 
                        Department, including--
                                    (I) the Office of Energy Efficiency 
                                and Renewable Energy;
                                    (II) the Office of Science;
                                    (III) the Office of Electricity 
                                Delivery and Energy Reliability;
                                    (IV) the Office of Fossil Energy;
                                    (V) the Advanced Research Projects 
                                Agency--Energy; and
                                    (VI) other offices as determined by 
                                the Secretary; and
                            (ii) relevant technology research and 
                        development programs within other Federal 
                        agencies, as determined by the Secretary.
                    (E) Coordination and nonduplication.--In 
                coordinating activities the Secretary shall ensure, to 
                the maximum extent practicable, that activities do not 
                duplicate those of other programs within the Department 
                or other relevant research agencies.
                    (F) Federal demonstration of technologies.--The 
                Secretary shall make information available to 
                procurement programs of Federal agencies regarding the 
                potential to demonstrate technologies resulting from 
                activities funded through programs under this section.
                    (G) Intergovernmental coordination.--The Secretary 
                shall seek opportunities to leverage resources and 
                support initiatives of State and local governments in 
                developing and promoting advanced vehicle technologies, 
                manufacturing, and infrastructure.
                    (H) Criteria.--When awarding grants under this 
                program, the Secretary shall give priority to those 
                technologies (either individually or as part of a 
                system) that--
                            (i) provide the greatest aggregate fuel 
                        savings based on the reasonable projected sales 
                        volumes of the technology; and
                            (ii) provide the greatest increase in 
                        United States employment.
            (2) Sensing and communications technologies.--The 
        Secretary, in coordination with the relevant research programs 
        of other Federal agencies, shall conduct research, development, 
        engineering, and demonstration activities on connectivity of 
        vehicle and transportation systems, including on sensing, 
        computation, communication, and actuation technologies that 
        allow for reduced fuel use, optimized traffic flow, and vehicle 
        electrification, including technologies for--
                    (A) onboard vehicle, engine, and component sensing 
                and actuation;
                    (B) vehicle-to-vehicle sensing and communication;
                    (C) vehicle-to-infrastructure sensing and 
                communication; and
                    (D) vehicle integration with the electrical grid.
            (3) Manufacturing.--The Secretary shall carry out a 
        research, development, engineering, demonstration, and 
        commercial application program of advanced vehicle 
        manufacturing technologies and practices, including innovative 
        processes to--
                    (A) increase the production rate and decrease the 
                cost of advanced battery manufacturing;
                    (B) vary the capability of individual manufacturing 
                facilities to accommodate different battery chemistries 
                and configurations;
                    (C) reduce waste streams, emissions, and energy 
                intensity of vehicle, engine, advanced battery and 
                component manufacturing processes;
                    (D) recycle and remanufacture used batteries and 
                other vehicle components for reuse in vehicles or 
                stationary applications;
                    (E) produce cost-effective lightweight materials 
                such as advanced metal alloys, polymeric composites, 
                and carbon fiber;
                    (F) produce lightweight high pressure storage 
                systems for gaseous fuels;
                    (G) design and manufacture purpose-built hydrogen 
                and fuel cell vehicles and components;
                    (H) improve the calendar life and cycle life of 
                advanced batteries; and
                    (I) produce permanent magnets for advanced 
                vehicles.
            (4) User testing facilities.--Activities under this section 
        may include construction, expansion, or modification of new and 
        existing vehicle, engine, and component research and testing 
        facilities for--
                    (A) testing or simulating interoperability of a 
                variety of vehicle components and systems;
                    (B) subjecting whole or partial vehicle platforms 
                to fully representative duty cycles and operating 
                conditions;
                    (C) developing and demonstrating a range of 
                chemistries and configurations for advanced vehicle 
                battery manufacturing; and
                    (D) developing and demonstrating test cycles for 
                new and alternative fuels, and other advanced vehicle 
                technologies.
            (5) Reporting.--
                    (A) Technologies developed.--Not later than 18 
                months after the date of enactment of this Act and 
                annually thereafter through 2017, the Secretary of 
                Energy shall transmit to Congress a report regarding 
                the technologies developed as a result of the 
                activities authorized by this subsection, with a 
                particular emphasis on whether the technologies were 
                successfully adopted for commercial applications, and 
                if so, whether products relying on those technologies 
                are manufactured in the United States.
                    (B) Additional matters.--At the end of each fiscal 
                year through 2017 the Secretary shall submit to the 
                relevant congressional committees of jurisdiction an 
                annual report describing activities undertaken in the 
                previous year under this subsection, active industry 
                participants, efforts to recruit new participants 
                committed to design, engineering, and manufacturing of 
                advanced vehicle technologies in the United States, 
                progress of the program in meeting goals and timelines, 
                and a strategic plan for funding of activities across 
                agencies.
    (g) Medium- and Heavy-Duty Commercial and Transit Vehicles.--
            (1) Program.--
                    (A) In general.--The Secretary, in partnership with 
                relevant research and development programs in other 
                Federal agencies, and a range of appropriate industry 
                stakeholders, shall carry out a program of cooperative 
                research, development, demonstration, and commercial 
                application activities on advanced technologies for 
                medium- to heavy-duty commercial, vocational, 
                recreational, and transit vehicles, including 
                activities in the areas of--
                            (i) engine efficiency and combustion 
                        research;
                            (ii) on board storage technologies for 
                        compressed and liquefied natural gas;
                            (iii) development and integration of engine 
                        technologies designed for natural gas operation 
                        of a variety of vehicle platforms;
                            (iv) waste heat recovery and conversion;
                            (v) improved aerodynamics and tire rolling 
                        resistance;
                            (vi) energy and space-efficient emissions 
                        control systems;
                            (vii) heavy hybrid, hybrid hydraulic, plug-
                        in hybrid, and electric platforms, and energy 
                        storage technologies;
                            (viii) drivetrain optimization;
                            (ix) friction and wear reduction;
                            (x) engine idle and parasitic energy loss 
                        reduction;
                            (xi) electrification of accessory loads;
                            (xii) onboard sensing and communications 
                        technologies;
                            (xiii) advanced lightweighting materials 
                        and vehicle designs;
                            (xiv) increasing load capacity per vehicle;
                            (xv) thermal management of battery systems;
                            (xvi) recharging infrastructure;
                            (xvii) compressed natural gas 
                        infrastructure;
                            (xviii) advanced internal combustion 
                        engines;
                            (xix) complete vehicle modeling and 
                        simulation;
                            (xx) hydrogen vehicle technologies, 
                        including fuel cells and internal combustion 
                        engines, and hydrogen infrastructure;
                            (xxi) retrofitting advanced technologies 
                        onto existing truck fleets; and
                            (xxii) integration of these and other 
                        advanced systems onto a single truck and 
                        trailer platform.
                    (B) Leadership.--The Secretary shall appoint a 
                full-time Director to coordinate research, development, 
                demonstration, and commercial application activities in 
                medium- to heavy-duty commercial, recreational, and 
                transit vehicle technologies. Responsibilities of the 
                Director shall be to--
                            (i) improve coordination and develop 
                        consensus between government agency and 
                        industry partners, and propose new processes 
                        for program management and priority setting to 
                        better align activities and budgets among 
                        partners;
                            (ii) regularly convene workshops, site 
                        visits, demonstrations, conferences, investor 
                        forums, and other events in which information 
                        and research findings are shared among program 
                        participants and interested stakeholders;
                            (iii) develop a budget for the Department's 
                        activities with regard to the interagency 
                        program, and provide consultation and guidance 
                        on vehicle technology funding priorities across 
                        agencies;
                            (iv) determine a process for reviewing 
                        program technical goals, targets, and 
                        timetables and, where applicable, aided by 
                        life-cycle impact and cost analysis, propose 
                        revisions or elimination based on program 
                        progress, available funding, and rate of 
                        technology adoption;
                            (v) evaluate ongoing activities of the 
                        program and recommend project modifications, 
                        including the termination of projects, where 
                        applicable;
                            (vi) recruit new industry participants to 
                        the interagency program, including truck, 
                        trailer, and component manufacturers who have 
                        not traditionally participated in federally 
                        sponsored research and technology development 
                        activities; and
                            (vii) other responsibilities as determined 
                        by the Secretary, in consultation with 
                        interagency and industry partners.
                    (C) Reporting.--At the end of each fiscal year, the 
                Secretary shall submit to the Congress an annual report 
                describing activities undertaken in the previous year, 
                active industry participants, efforts to recruit new 
                participants, progress of the program in meeting goals 
                and timelines, and a strategic plan for funding of 
                activities across agencies.
            (2) Class 8 truck and trailer systems demonstration.--The 
        Secretary shall conduct a competitive grant program to 
        demonstrate the integration of multiple advanced technologies 
        on Class 8 truck and trailer platforms with a goal of improving 
        overall freight efficiency, as measured in tons and volume of 
        freight hauled or other work performance-based metrics, by 50 
        percent, including a combination of technologies listed in 
        paragraph (1)(A). Applicant teams may be comprised of truck and 
        trailer manufacturers, engine and component manufacturers, 
        fleet customers, university researchers, and other applicants 
        as appropriate for the development and demonstration of 
        integrated Class 8 truck and trailer systems.
            (3) Technology testing and metrics.--The Secretary, in 
        coordination with the partners of the interagency research 
        program described in paragraph (1)(A)--
                    (A) shall develop standard testing procedures and 
                technologies for evaluating the performance of advanced 
                heavy vehicle technologies under a range of 
                representative duty cycles and operating conditions, 
                including for heavy hybrid propulsion systems;
                    (B) shall evaluate heavy vehicle performance using 
                work performance-based metrics other than those based 
                on miles per gallon, including those based on units of 
                volume and weight transported for freight applications, 
                and appropriate metrics based on the work performed by 
                nonroad systems; and
                    (C) may construct heavy duty truck and bus testing 
                facilities.
            (4) Nonroad systems pilot program.--The Secretary shall 
        undertake a pilot program of research, development, 
        demonstration, and commercial applications of technologies to 
        improve total machine or system efficiency for nonroad mobile 
        equipment including agricultural and construction equipment, 
        and shall seek opportunities to transfer relevant research 
        findings and technologies between the nonroad and on-highway 
        equipment and vehicle sectors.
                                 <all>