[Congressional Record Volume 155, Number 55 (Wednesday, April 1, 2009)]
[Senate]
[Pages S4181-S4191]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself and Mr. Voinovich):
  S. 774. A bill to enhance the energy security of the United States by 
diversifying energy sources for onroad transport, increasing the supply 
of energy resources, and strengthening energy infrastructure, and for 
other purposes; to the Committee on Finance.
  Mr. DORGAN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                 S. 774

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``National 
     Energy Security Act of 2009'' or the ``NESA of 2009''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definition of Secretary.

              DIVISION A--TRANSMISSION AND TRANSPORTATION

                   TITLE I--ELECTRICITY TRANSMISSION

Sec. 101. Siting of interstate electric transmission facilities.
Sec. 102. Recovery of costs for smart grid technology and advanced 
              materials.

                    TITLE II--TRANSPORTATION SECTOR

          Subtitle A--Electrification of Transportation Sector

Sec. 201. Minimum Federal fleet requirement.
Sec. 202. Use of HOV facilities by light-duty plug-in electric drive 
              vehicles.
Sec. 203. Recharging infrastructure.
Sec. 204. Loan guarantees for advanced battery purchases.
Sec. 205. Study of end-of-useful life options for motor vehicle 
              batteries.

              Subtitle B--Medium- and Heavy-Duty Vehicles

Sec. 211. Maximum weight study.
Sec. 212. Fuel economy.

          Subtitle C--Alternative Transportation Technologies

Sec. 221. Flexible fuel automobiles.
Sec. 222. Transportation roadmap study.

       DIVISION B--DOMESTIC PRODUCTION AND WORKFORCE DEVELOPMENT

                       TITLE I--INCREASING SUPPLY

       Subtitle A--Increasing Production From Domestic Resources

Sec. 300. Amendment of 1986 Code.

                 PART I--Investment in Renewable Energy

Sec. 301. Extension of renewable electricity production credit.
Sec. 302. Expansion and extension of new clean renewable energy bonds.
Sec. 303. Extension of investment tax credit for certain energy 
              property.
Sec. 304. Increase in credit for investment in advanced energy 
              facilities.

            PART II--Investment in Alternative Fuel Property

Sec. 311. Extension of credits for alcohol fuels.
Sec. 312. Extension of credits for biodiesel and renewable diesel.

      PART III--Investment in Electric Drive and Advanced Vehicles

Sec. 321. Extension of credit and extension of temporary increase in 
              credit for alternative fuel vehicle refueling property.
Sec. 322. Extension and expansion of credit for new qualified plug-in 
              electric drive motor vehicles.
Sec. 323. Extension of credit for certain plug-in electric vehicles.
Sec. 324. Extension of credit for medium and heavy duty hybrid 
              vehicles.
Sec. 325. Credit for heavy duty natural gas vehicles.

               PART IV--Low Carbon Loan Guarantee Program

Sec. 331. Innovative low-carbon loan guarantee programs.

                     PART V--Investment in Ethanol

Sec. 341. Research and development of fungible biofuels.

     PART VI--Studies on Market Penetration of Renewable Resources

Sec. 351. Studies on market penetration of renewable resources.

        Subtitle B--Increasing Production From Fossil Resources

                    PART I--Outer Continental Shelf

Sec. 361. Inventory of Outer Continental Shelf oil and gas resources.
Sec. 362. Leasing of offshore areas estimated to contain commercially 
              recoverable oil or gas resources.
Sec. 363. Environmental stewardship and allowable activities.
Sec. 364. Moratorium of oil and gas leasing in certain areas of the 
              Gulf of Mexico.
Sec. 365. Treatment of revenues.

                    PART II--Other Fossil Resources

Sec. 371. Authorization of activities and exports involving hydrocarbon 
              resources.
Sec. 372. Travel in connection with authorized hydrocarbon exploration 
              and extraction activities.
Sec. 373. Alaska OCS joint lease and permitting processing office.
Sec. 374. Alaska Natural Gas Pipeline.

        TITLE II--CLEAN ENERGY TECHNOLOGY WORKFORCE DEVELOPMENT

Sec. 401. Clean energy technology workforce.

                   DIVISION C--GLOBAL RISK MANAGEMENT

Sec. 501. Sense of Congress on geopolitical consequences of oil 
              dependence.
Sec. 502. Study of foreign fuel subsidies.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1)(A) high and volatile international oil prices represent 
     an unsustainable threat to the economic and national security 
     of the United States; and
       (B) approximately 40 percent of the primary energy demand 
     of the United States is met by petroleum, the price for which 
     is set in a fungible and opaque international market 
     vulnerable to geopolitical instability and increasingly 
     complex barriers to investment;
       (2)(A) it should be the goal of the United States to reduce 
     the oil intensity (the number of barrels of oil required to 
     generate $1 of gross domestic product) of the national 
     economy from 2008 levels by at least 50 percent by calendar 
     year 2030 and by at least 80 percent by calendar year 2050; 
     and
       (B) reduced oil intensity is a primary means for improving 
     the resilience of the economy to high and volatile 
     international oil prices;
       (3) the transportation sector of the United States is 
     critical to breaking the oil dependence of the United States 
     because the transportation sector--

[[Page S4182]]

       (A) accounts for nearly 70 percent of total national oil 
     consumption;
       (B) is 97-percent reliant on petroleum for the delivered 
     energy needs of the sector; and
       (C) remains an industry of vital national significance and 
     importance;
       (4)(A) electrification of short-haul transportation 
     represents a likely pathway to reduced oil dependence;
       (B) electrified ground transport--
       (i) promotes fuel diversity because the electric power 
     sector uses a diverse range of feedstocks; and
       (ii) relies on a portfolio of fuels that are largely 
     domestic and have prices that are generally less volatile 
     than oil; and
       (C) electricity prices are generally stable relative to oil 
     because the price of fuel in the electric power sector is a 
     small portion of the cost of delivered energy;
       (5)(A) electrification of transportation will require a 
     more modern, technologically advanced national electric power 
     system that draws on a variety of location-constrained 
     generation sources sited in a range of geographic areas; and
       (B) a national transmission system that efficiently 
     delivers power across long distances to load centers should 
     be a high priority;
       (6)(A) widespread deployment of electric vehicles and 
     supporting infrastructure is a long-term process that will 
     require a national commitment over many years;
       (B) in the interim, steps can be taken to minimize the 
     danger that oil dependence poses to the economic and national 
     security of the United States; and
       (C) it is critical to--
       (i) support the continued growth of the domestic biofuels 
     industry;
       (ii) foster domestic production of conventional fuels for 
     which infrastructure and technology exist; and
       (iii) support deployment of additional renewable, cleaner 
     fossil, and nuclear generating capacity for providing the 
     necessary low emissions, reliable, and dispatchable power 
     that is essential for the electricity supply of the United 
     States;
       (7)(A) a robust, dynamic, and diverse biofuels industry is 
     an important component of a secure United States liquid fuels 
     system; and
       (B) a stable market for biofuels, including widespread 
     deployment of flexible fuel vehicles, can reduce oil 
     consumption as the United States transitions to electrified 
     ground transport;
       (8)(A) domestic production of oil and natural gas from the 
     Outer Continental Shelf of the United States is a safe and 
     secure means for increasing energy security in the near-term;
       (B) high oil import levels in the United States present an 
     added threat to the economy in addition to general price 
     volatility; and
       (C) in 2008, the United States net deficit in petroleum 
     trade amounted to more than $380,000,000,000, or nearly 60 
     percent of the total trade deficit;
       (9) a highly skilled, well trained, and adaptable workforce 
     is vital to the economic and energy security of the United 
     States; and
       (10)(A) addressing the twin challenges of energy security 
     and global climate change now and in the future will require 
     the United States to use all instruments of national power, 
     including the military and diplomatic and intelligence 
     services;
       (B) the United States must develop short-term policies and 
     strategies that--
       (i) protect key energy infrastructure;
       (ii) secure critical geographic transit areas;
       (iii) mitigate political instability from energy suppliers; 
     and
       (iv) strengthen the domestic industrial base required for 
     the development and widespread implementation of clean energy 
     technologies; and
       (C) over the long-term, the United States must focus 
     national security organizations on gaining greater clarity on 
     world reserves of energy and strengthening relationships with 
     certain key nations.

     SEC. 3. DEFINITION OF SECRETARY.

       In this Act, the term ``Secretary'' means the Secretary of 
     Energy.

              DIVISION A--TRANSMISSION AND TRANSPORTATION

                   TITLE I--ELECTRICITY TRANSMISSION

     SEC. 101. SITING OF INTERSTATE ELECTRIC TRANSMISSION 
                   FACILITIES.

       Section 216 of the Federal Power Act (16 U.S.C. 824p) is 
     amended--
       (1) by striking subsections (a) through (g) and inserting 
     the following:
       ``(a) Definitions.--In this section:
       ``(1) Beneficiary.--The term `beneficiary' means a 
     wholesale or retail customer, market participant, or other 
     entity that benefits from a transmission upgrade, 
     enhancement, or expansion under a regional transmission plan, 
     including an economic benefit, improvement in service 
     reliability, or reduction in greenhouse gas emissions.
       ``(2) Clean energy superhighway.--The term `Clean Energy 
     Superhighway' means the interstate extra-high voltage 
     transmission grid overlay established under this section.
       ``(3) Clean energy superhighway facility.--The term `Clean 
     Energy Superhighway facility' means an overhead or 
     underground transmission facility of the Clean Energy 
     Superhighway included in a plan certified under subsection 
     (b)(9) (including conductors, cables, towers, manhole duct 
     systems, phase shifting transformers, reactors, capacitors, 
     and any ancillary facilities and equipment necessary for the 
     proper operation of the facility) that--
       ``(A) operates at or above a voltage of 345 kilovolt 
     alternating current;
       ``(B) operates at or above a voltage of 400 kilovolts 
     direct current;
       ``(C) is a renewable feeder line that transmits electricity 
     directly or indirectly to the Clean Energy Superhighway; or
       ``(D) is a necessary upgrade to an existing transmission 
     facility.
       ``(4) Grid-enabled vehicle.--The term `grid-enabled 
     vehicle' means an electric drive vehicle, electric hybrid 
     vehicle, or fuel cell vehicle that has the ability to 
     communicate electronically with an electric power provider or 
     localized energy storage system to charge or discharge an on-
     board energy storage device, such as a battery.
       ``(5) Interconnection.--The term `Interconnection' has the 
     meaning given the term in section 215(a).
       ``(6) Load-serving entity.--The term `load-serving entity' 
     means any person, Federal, State, or local agency or 
     instrumentality, public utility, or electric cooperative 
     (including an entity described in section 201(f)) that 
     delivers electric energy to end-use customers.
       ``(7) Location-constrained resource.--
       ``(A) In general.--The term `location-constrained resource' 
     means a low-carbon resource used to produce electricity that 
     is geographically constrained such that the resource cannot 
     be relocated to an existing transmission line.
       ``(B) Inclusions.--The term `location-constrained resource' 
     includes the following types of resources described in 
     subparagraph (A):
       ``(i) Renewable energy.
       ``(ii) A fossil fuel electricity plant equipped with carbon 
     capture technology that is located at a site that is 
     appropriate for carbon storage or beneficial reuse.
       ``(8) Renewable energy.--The term `renewable energy' means 
     electric energy generated from--
       ``(A) solar energy, wind, landfill gas, renewable biogas, 
     or geothermal energy;
       ``(B) new hydroelectric generation capacity achieved from 
     increased efficiency, or an addition of new capacity, at an 
     existing nonhydroelectric project if--
       ``(i) the hydroelectric project installed on the 
     nonhydroelectric dam--

       ``(I) is licensed by the Commission; and
       ``(II) meets all other applicable environmental, licensing, 
     and regulatory requirements, including applicable fish 
     passage requirements;

       ``(ii) the nonhydroelectric dam--

       ``(I) was placed in service before the date of enactment of 
     the National Energy Security Act of 2009;
       ``(II) was operated for flood control, navigation, or water 
     supply purposes; and
       ``(III) did not produce hydroelectric power as of the date 
     of enactment of the National Energy Security Act of 2009; and

       ``(iii) the hydroelectric project is operated so that the 
     water surface elevation at any given location and time that 
     would have occurred in the absence of the hydroelectric 
     project is maintained, subject to any license requirements 
     imposed under applicable law that change the water surface 
     elevation for the purpose of improving the environmental 
     quality of the affected waterway, as certified by the 
     Commission;
       ``(C) hydrokinetic energy, including--
       ``(i) waves, tides, and currents in oceans, estuaries, and 
     tidal areas;
       ``(ii) free flowing water in rivers, lakes, and streams;
       ``(iii) free flowing water in man-made channels, including 
     projects that use nonmechanical structures to accelerate the 
     flow of water for electric power production purposes; or
       ``(iv) differentials in ocean temperature through ocean 
     thermal energy conversion; or
       ``(D) electricity that is generated from the combustion of 
     the biogenic portion of municipal solid waste materials from 
     facilities that comply with the maximum pollutant emissions 
     standards established by the Administrator of the 
     Environmental Protection Agency.
       ``(9) Renewable feeder line.--
       ``(A) In general.--The term `renewable feeder line' means 
     an electricity transmission line that--
       ``(i) operates at or above 100 kilovolts alternating 
     current;
       ``(ii) connects 1 or more renewable energy generators 
     directly or indirectly to the Clean Energy Superhighway; and
       ``(iii) is identified in the Clean Energy Superhighway plan 
     certified under subsection (b)(9).
       ``(B) Inclusion.--The term `renewable feeder line' includes 
     an upgrade to an existing transmission line necessary for 
     interconnection to a new transmission line described in 
     subparagraph (A).
       ``(10) Secretary.--The term `Secretary' means the Secretary 
     of Energy.
       ``(11) State.--The term `State' means--
       ``(A) a State; and
       ``(B) the District of Columbia.
       ``(b) Planning.--
       ``(1) Purpose.--The purpose of this subsection is to plan 
     for a Clean Energy Superhighway that--
       ``(A) expands and modernizes the electrical transmission 
     grid of the United States to meet the goals of increasing 
     energy security and protecting the environment;

[[Page S4183]]

       ``(B) integrates location-constrained resources, including 
     renewable and low-carbon electricity generation;
       ``(C) improves delivery of electricity from location-
     constrained resources to load centers;
       ``(D) ensures sufficient transmission capacity for future 
     demand growth, including energy efficiency, distributed 
     generation and storage, and demand response resources;
       ``(E) integrates smart grid technologies;
       ``(F) enhances the reliability and efficiency of the 
     electrical transmission grid;
       ``(G) relieves congestion on the electrical transmission 
     grid;
       ``(H) plans, to the maximum extent practicable, for at 
     least 50 percent of light-duty vehicles used in the United 
     States by calendar year 2030 to be light-duty grid-enabled 
     vehicles;
       ``(I) meets any renewable electricity standard established 
     by law; and
       ``(J) provides the lowest-cost delivered energy to markets.
       ``(2) Planning requirement.--
       ``(A) In general.--
       ``(i) Requirement.--Not later than 90 days after the date 
     of enactment of the National Energy Security Act of 2009, the 
     Commission shall promulgate regulations consistent with this 
     section for--

       ``(I) the operation, composition, and selection of the 
     regional planning authorities; and
       ``(II) the contents of, and certification requirements for, 
     the regional plans produced by regional planning authorities.

       ``(ii) Requirement.--The Commission shall certify not less 
     than 1, and not more than 4, regional planning authorities 
     for each of the Eastern and Western Interconnections of the 
     United States.
       ``(iii) Clean energy superhighway.--Each regional planning 
     authority certified by the Commission shall participate in 
     the development of the Clean Energy Superhighway.
       ``(iv) Number of regional planning authorities.--The 
     Commission shall minimize, to the maximum extent practicable, 
     the number of regional planning authorities in the Eastern 
     and Western Interconnections while ensuring that the entire 
     domestic footprint of the Interconnections is covered.
       ``(B) Certification of regional planning authorities.--
       ``(i) In general.--To be eligible to be certified as a 
     regional planning authority for a region under this 
     subsection, a regional planning organization shall apply to, 
     and be approved by, the Commission.
       ``(ii) Request for applications.--Not later than 90 days 
     after the date of enactment of National Energy Security Act 
     of 2009, the Commission shall issue a request for from 
     entities seeking to be certified as a regional planning 
     authority for the Eastern or Western Interconnection.
       ``(iii) Eligibility.--

       ``(I) In general.--Any group of Regional Transmission 
     Organizations, Independent System Operators, regional 
     entities (as defined in section 215(a)), or other multistate 
     organizations or entities may apply to be certified as a 
     regional planning authority under this subsection.
       ``(II) State participation.--An organization that applies 
     for certification under subclause (I) shall invite the 
     Governor or the designee of the Governor from each affected 
     State and a representative from each affected Indian tribe to 
     participate in the organization.
       ``(III) Minimum size.--To be certified as a regional 
     planning authority under this subparagraph, an organization 
     shall represent a region that is of sufficient size--

       ``(aa) to encompass generation resources that are 
     sufficient to meet load requirements in the region, taking 
     into account potential generation from location-constrained 
     resources and projected load growth; and
       ``(bb) to possess sufficient market scope to produce 
     economic and operational efficiencies.
       ``(iv) Planning principles.--The Commission shall establish 
     rules and procedures for the designation of regional planning 
     authorities to ensure that the planning process proposed by 
     an applicant--

       ``(I) is consistent with the purposes described in 
     paragraph (1);
       ``(II) is open, transparent, and nondiscriminatory;
       ``(III) includes consultation with all affected Federal 
     land management agencies, Indian tribes, and States within a 
     region;
       ``(IV) builds on planning undertaken by States, Indian 
     tribes, Federal transmitting utilities, Regional Transmission 
     Organizations, Independent System Operators, utilities, and 
     others;
       ``(V) is developed in conformance with Commission 
     requirements for planning using open access transmission 
     tariffs;
       ``(VI) solicits input from load-serving and wholesale 
     entities, transmission owners and operators, renewable energy 
     developers, environmental organizations, Indian tribes, and 
     other interested parties;
       ``(VII) includes an interim process to evaluate 
     expeditiously whether new renewable feeder lines should be 
     added to the plan; and
       ``(VIII) uses the best available information on resources, 
     load, and demand projections.

       ``(v) Certification.--

       ``(I) In general.--Except as provided in subclauses (II) 
     and (III), not later than 90 days after the date on which the 
     Commission issues a request for applications under clause 
     (ii), the Commission shall certify at least 1 regional 
     planning authority for each of the Eastern and Western 
     Interconnections.
       ``(II) Insufficient application.--Subclause (I) shall not 
     apply if the Commission--

       ``(aa) has not received an application from any entity in 
     the applicable Interconnection; or
       ``(bb) has received applications from entities that do not 
     satisfy the criteria established by the Commission for a 
     regional planning authority.

       ``(III) Commission responsibility.--If the Commission does 
     not receive sufficient applications as described in subclause 
     (II) for any portion of an Interconnection, the Commission 
     shall--

       ``(aa) assume the responsibilities of a regional planning 
     authority for the uncovered portion of the Interconnection; 
     and
       ``(bb) submit to Congress written notification of an intent 
     to assume responsibility under this subclause at least 30 
     days before the date that responsibility is assumed.
       ``(C) Oversight of regional planning authorities.--The 
     Commission shall establish procedures to oversee certified 
     regional planning authorities under this subsection.
       ``(3) Duties of secretary.--
       ``(A) Resource assessments.--
       ``(i) In general.--The Secretary shall conduct nationwide 
     assessments to identify areas with a significant potential 
     for the development of location-constrained resources.
       ``(ii) Formats.--The resource assessments shall be made 
     available to the public in multiple formats, including in a 
     Geographical Information System compatible format.
       ``(iii) Timing.--The Secretary shall--

       ``(I) make the initial resource assessment required under 
     this subparagraph not later than 180 days after the date of 
     enactment of the National Energy Security Act of 2009; and
       ``(II) refine the resource assessment on a regular basis 
     that is consistent with regional planning cycles.

       ``(B) Technical assistance.--The Secretary shall provide 
     technical assistance to regional planning authorities, on 
     request, to assist the authorities in carrying out this 
     section.
       ``(C) Congestion studies.--
       ``(i) In general.--The Secretary shall conduct or update a 
     study of electric transmission congestion and report the 
     results of the study to certified regional planning 
     authorities to assist the authorities in carrying out this 
     section.
       ``(ii) Recent study.--The Secretary shall ensure that a 
     congestion study that is not more than 2 years old is 
     available at the time regional planning authorities are 
     certified by the Commission.
       ``(iii) Updates.--The Secretary shall update a congestion 
     study at least once every 2 years, consistent with the 
     planning cycle.
       ``(4) Planning process.--
       ``(A) In general.--Once certified, a regional planning 
     authority shall establish a regional or Interconnection-wide 
     Clean Energy Superhighway plan that--
       ``(i) meets the purposes of this subsection; and
       ``(ii) identifies necessary Clean Energy Superhighway 
     facilities and transmission infrastructure that need to be 
     added or upgraded to achieve the planned Clean Energy 
     Superhighway.
       ``(B) Stakeholder involvement.--
       ``(i) In general.--In carrying out this section, a regional 
     planning authority shall establish a consultative public 
     process that, to the maximum extent practicable, engages 
     regional stakeholders, including--

       ``(I) public service commissions and other relevant State 
     agencies;
       ``(II) load-serving entities and wholesale entities that 
     provide transmission and power supply services;
       ``(III) representatives of the retail customers of the 
     load-serving entities;
       ``(IV) transmission owners and operators;
       ``(V) utilities and merchant generators;
       ``(VI) renewable energy developers;
       ``(VII) environmental organizations;
       ``(VIII) Indian tribes;
       ``(IX) Federal land use agencies; and
       ``(X) other interested parties.

       ``(ii) Criteria.--A regional planning authority shall 
     encourage stakeholders, to the maximum extent practicable, to 
     provide input to establish criteria based on paragraphs (1) 
     and (2)(B)(iv) to create a Clean Energy Superhighway plan.
       ``(iii) Public meetings.--A regional planning authority 
     shall provide notice and hold public meetings to solicit 
     public input in carrying out this subsection.
       ``(5) Planning.--Not later than 1 year after the 
     certification of a regional planning authority under this 
     subsection, the certified regional planning authority shall 
     submit to the Commission for approval a Clean Energy 
     Superhighway plan that--
       ``(A) evaluates potential location-constrained resources;
       ``(B) provides for long-term planning for both the 10 year- 
     and 20 year-horizons, that takes into account future demand 
     growth and reasonable models of future generation growth, 
     including energy efficiency, demand response, and distributed 
     storage and generation;
       ``(C) establishes (in consultation with Federal and State 
     land agencies, environmental groups, and Indian tribes) 
     appropriate areas to be avoided in siting of Clean Energy 
     Superhighway facilities, to the maximum extent practicable, 
     including--

[[Page S4184]]

       ``(i) national parks, national marine sanctuaries, 
     reserves, recreation areas, and other similar units of the 
     National Park System;
       ``(ii) designated wilderness, designated wilderness study 
     areas, and other areas managed for wilderness 
     characteristics;
       ``(iii) national historic sites and historic parks;
       ``(iv) inventoried roadless areas and significant 
     noninventoried roadless areas within the National Forest 
     System;
       ``(v) national monuments;
       ``(vi) national conservation areas;
       ``(vii) national wildlife refuges and areas of critical 
     environmental concern;
       ``(viii) national historic and national scenic trails;
       ``(ix) areas designated as critical habitat;
       ``(x) national wild, scenic, and recreational rivers;
       ``(xi) any area in which Federal law prohibits energy 
     development; and
       ``(xii) any area in which applicable State law or Indian 
     tribal code enacted prior to the date of enactment of the 
     National Energy Security Act of 2009 prohibits transmission 
     development;
       ``(D) identifies the transmission infrastructure to be 
     included as Clean Energy Superhighway facilities, taking into 
     consideration--
       ``(i) that, to the maximum extent practicable--

       ``(I) areas with the potential for the development of 
     location-constrained resources shall be connected to the 
     Clean Energy Superhighway;
       ``(II) load centers shall be connected to the Clean Energy 
     Superhighway; and
       ``(III) areas in subparagraph (C) shall be avoided by the 
     Clean Energy Superhighway; and

       ``(ii) all other relevant factors;
       ``(E) performs necessary engineering analyses;
       ``(F) permits persons to propose to the regional planning 
     authority Clean Energy Superhighway facilities to meet the 
     needs identified in the long-term plan of the regional 
     planning authority; and
       ``(G) considers staging of projects, including the logical 
     order of building and construction timelines.
       ``(6) Allowance of waivers for certain lines.--A regional 
     planning authority may petition the Commission to allow the 
     inclusion of 230 kilovolt lines in an approved plan if the 
     regional planning authority demonstrates to the Commission 
     that unique regional conditions exist that require a lower 
     voltage line.
       ``(7) Multiple regional planning authorities.--
       ``(A) In general.--If more than 1 regional planning 
     authority is certified in an Interconnection, the regional 
     planning authorities in the Interconnection shall ensure that 
     the submitted plan integrates with the other plans in the 
     Interconnection.
       ``(B) Modification.--The Commission shall modify the plans 
     submitted under paragraph (9)(B), as necessary, to ensure 
     that plans established under this section are integrated.
       ``(8) Coordination.--In the development of a Clean Energy 
     Superhighway plan, a regional planning authority shall 
     coordinate, as appropriate, with planning authorities and 
     other interested parties in Canada, Mexico, the Electric 
     Reliability Council of Texas, and other Interconnections.
       ``(9) National plan certification.--
       ``(A) In general.--The Commission shall determine whether 
     the plans submitted by the regional planning authorities 
     under this subsection carry out the purposes of this section.
       ``(B) Administration.--
       ``(i) Public comment.--The Commission shall provide an 
     opportunity for public comment on each plan submitted by a 
     regional planning authority.
       ``(ii) Modifications.--

       ``(I) In general.--The Commission may modify or reject a 
     plan as necessary to achieve the purposes of this section.
       ``(II) Opinion.--If the Commission modifies or rejects a 
     plan, not later than 60 days after the date the plan is 
     submitted by the regional planning authority, the Commission 
     shall provide a written opinion to the regional planning 
     authority that contains the facts and reasons supporting the 
     action of the Commission.

       ``(iii) Resubmission.--Subject to paragraph (10)(A)(iii), 
     if the Commission rejects a plan, the regional planning 
     authority may submit a revised plan within 90 days of the 
     Commission's rejection.
       ``(iv) Certification.--If the Commission determines that a 
     plan meets the purposes of this section, the Commission shall 
     certify the plan for establishing a Clean Energy 
     Superhighway.
       ``(10) Best practices.--The Commission shall--
       ``(A) conduct regular reviews of best practices in planning 
     under this subsection; and
       ``(B) make available and use those best practices in 
     carrying out this subsection.
       ``(11) Timing.--
       ``(A) Implementation.--
       ``(i) In general.--Not later than 1 year after the date of 
     certification by the Commission, a regional planning 
     authority shall complete the planning process required under 
     this section.
       ``(ii) Withholding of planning funds.--If the Commission 
     has not received a plan from a regional planning authority by 
     the date that is 1 year after the date of the certification 
     of the regional planning authority by the Commission, the 
     Commission shall--

       ``(I) determine the cause for the delay; and
       ``(II) inform the Secretary, who may withhold future 
     planning funds from the regional planning authority under 
     this subsection, if the Commission determines that the 
     process of the regional planning authority is not 
     sufficiently implementing this subsection.

       ``(iii) Assumption of planning responsibility.--If the 
     Commission has not certified the regional plan for a region 
     by the date that is 18 months after the date of the 
     certification of the regional planning authority by the 
     Commission, the Commission shall assume the responsibility 
     for creating a regional plan for the region consistent with 
     the planning process established under paragraph (4).
       ``(iv) Notification.--The Commission shall submit to 
     Congress written notification of an intent to assume 
     responsibility under clause (iii) at least 30 days before the 
     date that responsibility is assumed.
       ``(B) Updates.--Not later than 2 years after the initial 
     establishment of a plan under this section and every 2 years 
     thereafter, a regional planning authority shall (in 
     accordance with procedures required for the initial 
     establishment of a plan) review and (as necessary) modify the 
     plan established under this section to ensure that the plan 
     promotes the purposes of this section.
       ``(12) Recovery of costs associated with interconnection-
     wide transmission grid project planning.--
       ``(A) In general.--A regional planning authority and a 
     participating State shall be permitted to recover prudently 
     incurred costs to carry out the planning activities required 
     under this subsection pursuant to a Federal transmission 
     surcharge that will be established by the Commission for the 
     purposes of carrying out this section.
       ``(B) Surcharge.--A regional planning authority shall--
       ``(i) establish a Federal transmission surcharge based on a 
     formula rate that is submitted to the Commission for 
     approval; and
       ``(ii) adjust the formula and surcharge on an annual basis.
       ``(C) Cost responsibility.--Cost responsibility under each 
     surcharge shall be assigned based on energy usage to all 
     load-serving entities within each regional planning 
     authority.
       ``(D) Limitation.--The total amount of surcharges that may 
     be imposed or collected nationally under this paragraph shall 
     not exceed $80,000,000 for any calendar year.
       ``(E) Other funds.--Funds made available for transmission 
     planning under the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5) may be used to carry out this 
     subsection.
       ``(c) Cost Allocation.--
       ``(1) Purposes.--The purposes of this subsection are--
       ``(A) to ensure that the costs of the Clean Energy 
     Superhighway are borne widely by all beneficiaries of new 
     transmission and are not borne disproportionately by 
     ratepayers or generators in specific areas; and
       ``(B) to promote the national interest in an Clean Energy 
     Superhighway in accordance with the purposes of this part.
       ``(2) Submission.--Not later than 1 year after the date of 
     the certification of the last regional planning authority, 
     all regional planning authorities within an Interconnection 
     may submit jointly a single integrated Interconnection-wide 
     cost allocation proposal to the Commission for allocating the 
     costs of Clean Energy Superhighway facilities under this 
     section.
       ``(3) Action by commission.--Not later than 120 days after 
     the date of receipt of a cost-allocation plan submitted under 
     paragraph (2), the Commission shall--
       ``(A) provide notice and an opportunity for a hearing;
       ``(B) evaluate the plan; and
       ``(C)(i) approve the plan if the Commission finds that the 
     plan results in just and reasonable rates that promote the 
     purposes of this section (including this subsection); or
       ``(ii) reject or modify the plan if the Commission finds 
     that the plan does not result in just and reasonable rates 
     that promote the purposes of this section (including this 
     subsection).
       ``(4) Resubmission of plan.--
       ``(A) In general.--If the Commission rejects the cost 
     allocation plan under paragraph (3)(C)(ii), the Commission 
     shall give guidance to the regional planning authorities on 
     remediation measures.
       ``(B) Resubmission.--Not later than 90 days after the date 
     of the rejection, the regional planning authorities may 
     submit to the Commission a revised cost allocation plan for 
     the region under this subsection.
       ``(C) Modifications.--
       ``(i) In general.--Not later than 60 days after the date of 
     resubmission of a cost-allocation plan, the Commission shall 
     approve, modify, or reject the plan as necessary to achieve 
     the purposes of this section.
       ``(ii) Opinion.--If the Commission modifies or rejects a 
     plan, not later than 60 days after the date the plan is 
     resubmitted by the regional planning authority, the 
     Commission shall provide a written opinion to the regional 
     planning authority that contains the facts and reasons 
     supporting the action of the Commission.
       ``(5) Commission allocation of costs.--If the regional 
     planning authorities do not submit an Interconnection-wide 
     cost allocation plan within the time periods specified in 
     paragraphs (2) and (4) or if the Commission

[[Page S4185]]

     does not approve a cost allocation plan submitted by the 
     regional planning authorities for an Interconnection, the 
     Commission shall allocate the costs of new transmission in 
     the region under this section to all of the load-serving 
     entities in the Interconnection on a load-ratio share basis.
       ``(6) Implementation.--
       ``(A) In general.--The Commission shall adopt such rules, 
     require inclusion of such provisions in transmission tariffs, 
     and take such other actions as are necessary to efficiently--
       ``(i) collect the costs for development and operation of 
     Clean Energy Superhighway facilities; and
       ``(ii) distribute the resultant revenues to owners of the 
     facilities.
       ``(B) Transmission customer.--The rules or tariffs may 
     consider each load-serving entity in an Interconnection to be 
     a transmission customer under 1 or more of the tariffs 
     established for collection of the costs for development and 
     operation of Clean Energy Superhighway facilities.
       ``(d) Siting.--
       ``(1) Purposes.--The purpose of the integrated siting 
     process provided for in this subsection is to provide an 
     efficient and timely certification process that ensures 
     participation of Federal land management agencies, States, 
     and Indian tribes, and the appropriate protection of 
     resources, in siting applications before the Commission.
       ``(2) Prefiling.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of the National Energy Security Act of 2009, the 
     Commission shall promulgate regulations to implement an 
     integrated prefiling process for the preparation of an 
     application for the certification of a Clean Energy 
     Superhighway facility.
       ``(B) Preapplication information.--
       ``(i) In general.--The regulations for the prefiling 
     process shall include the appropriate information required 
     for the Commission to determine if the proposed facility is 
     included in the Clean Energy Superhighway plan certified by 
     the Commission under subsection (b)(9).
       ``(ii) Steps.--The regulations shall establish a list of 
     steps that shall be completed before submitting an 
     application for a certificate, including the steps required 
     under this subparagraph.
       ``(iii) Notice of intent to apply.--The applicant shall 
     submit to the Commission a notice of intent to apply for a 
     Clean Energy Superhighway certificate that includes a 
     preliminary routing plan.
       ``(iv) Determination of inclusion in plan.--The Commission 
     shall determine whether the proposed facility is included in 
     a Clean Energy Superhighway plan certified under subsection 
     (b)(9).
       ``(v) Notification.--The Commission shall provide notice to 
     the public, affected States, Federal land agencies, and 
     Indian tribes of a notice of any intent to apply for a 
     certificate.
       ``(vi) Prefiling schedule.--The Commission shall establish 
     a prefiling schedule for the applicant, agencies, and Indian 
     tribes.
       ``(vii) State siting constraints.--The applicant shall 
     consider the State siting constraints identified under 
     paragraph (3).
       ``(viii) Consultation.--The applicant shall consult with 
     affected States, Federal land agencies, and Indian tribes in 
     carrying out this subsection
       ``(ix) Early scoping process.--The Commission shall conduct 
     an early scoping process that is consistent with the terms 
     and conditions of section 5.8 of title 18, Code of Federal 
     Regulations (or a successor section), as determined by the 
     Commission.
       ``(x) Consolidated record.--The Commission shall create and 
     maintain a consolidated record for all decisions made or 
     actions taken by the Commission or by a Federal, State, 
     Indian tribe administrative agency, or officer under this 
     subsection.
       ``(xi) Siting dispute resolution board.--The Commission 
     shall establish a siting dispute resolution board that is 
     consistent with the terms and conditions of section 5.14 of 
     title 18, Code of Federal Regulations and paragraph (3)(B), 
     as determined by the Commission.
       ``(C) Certificate of public convenience and necessity.--An 
     applicant shall comply with the prefiling process established 
     under this paragraph before filing an application for a 
     certificate of public convenience and necessity with the 
     Commission.
       ``(3) State siting constraints.--
       ``(A) State agency.--
       ``(i) In general.--The Governor of a State in which a Clean 
     Energy Superhighway facility is proposed pursuant to 
     paragraph (2) shall designate the appropriate State agency to 
     coordinate with the Commission on siting.
       ``(ii) Siting constraints and mitigation measures.--

       ``(I) In general.--Applicants shall work with affected 
     States in the prefiling process described in paragraph (2).
       ``(II) Designated state agency.--At the conclusion of the 
     prefiling process, the designated State agency may identify 
     and communicate to the applicant and the Commission 
     information on siting constraints and mitigation measures 
     (including habitat protection, environmental considerations, 
     cultural site protection, or other factors) for a Clean 
     Energy Superhighway facility within the State.

       ``(B) Siting dispute resolution board.--
       ``(i) In general.--During the prefiling process for each 
     Clean Energy Superhighway facility application, the 
     Commission shall establish a siting dispute resolution board 
     to ensure appropriate siting within and across the borders of 
     the State.
       ``(ii) Composition.--The board for a Clean Energy 
     Superhighway facility shall be composed of--

       ``(I) 1 representative of the Commission, who is not 
     otherwise involved in the applicable proceeding;
       ``(II) 1 representative of each affected State, as 
     designated by the Governor, and who is not otherwise involved 
     in the proceeding; and
       ``(III) 1 independent person with expertise in the area, 
     selected by the other 2 panelists from a preestablished list 
     of individuals who have that expertise (as established by the 
     Commission).

       ``(iii) Appeals.--If the applicant does not agree with the 
     siting constraints and mitigation measures proposed by a 
     State, the applicant may appeal the constraints and measures 
     to the appropriate siting dispute resolution board.
       ``(iv) Decision.--The board shall--

       ``(I) make a decision on any appeal made under clause 
     (iii); and
       ``(II) submit to the Commission a recommendation for final 
     dispute resolution.

       ``(C) Federal action.--
       ``(i) In general.--The Commission shall incorporate State 
     siting constraints and mitigation measures in the certificate 
     issued under paragraph (9), unless the Commission finds that 
     any recommendation referred to in subparagraph (A) (based on 
     the recommendation of the applicable sitting dispute 
     resolution board) is inconsistent with the purposes and 
     requirements of this section or other applicable Federal law.
       ``(ii) Findings.--If (after any proceedings of a siting 
     dispute resolution board) the Commission does not adopt in 
     whole or in part a recommendation of the State agency, the 
     Commission shall publish (together with a description of the 
     basis for each finding)--

       ``(I) a finding that adoption of the recommendation of the 
     siting dispute resolution board is inconsistent with the 
     purposes and requirements of this section or with other 
     applicable provisions of Federal law; or
       ``(II) a finding that adopts the recommendations of the 
     siting dispute resolution board conditions selected by the 
     Commission comply with the State siting constraints and 
     mitigation measures described in subparagraph (A).

       ``(4) Federal authority.--
       ``(A) In general.--Except as otherwise provided in this 
     subsection, the Commission shall have exclusive jurisdiction 
     over the granting of a certificate for the siting of a Clean 
     Energy Superhighway facility.
       ``(B) Rights of way.--
       ``(i) In general.--The Secretary of the Interior shall 
     provide a route for a Clean Energy Superhighway facility on 
     public land in accordance with the terms and conditions of 
     agency land use plans.
       ``(ii) Indian land.--In carrying out this subparagraph, the 
     Secretary of the Interior shall use the process established 
     under the terms and conditions of section 2604 of the Energy 
     Policy Act of 1992 (25 U.S.C. 3504) and the Act of February 
     5, 1948 (25 U.S.C. 323 et seq.) (including applicable 
     regulations) to establish a right-of-way for a Clean Energy 
     Superhighway on Indian land, as determined by the Secretary 
     of the Interior.
       ``(iii) Connection of individual lines.--The Commission 
     shall work with the Secretary of the Interior to ensure that 
     the routing of an individual line across public and private 
     land is appropriately connected.
       ``(5) Schedule.--
       ``(A) In general.--The Commission shall establish a 
     schedule for all Federal authorizations under this 
     subsection.
       ``(B) Administration.--In establishing the schedule, the 
     Commission shall--
       ``(i) ensure expeditious completion of all such 
     proceedings; and
       ``(ii) comply with applicable schedules established by 
     Federal law.
       ``(6) Existing corridors.--A route for a Clean Energy 
     Superhighway facility shall, to the maximum extent 
     practicable, use existing corridors, including multiuse and 
     highway corridors.
       ``(7) Environmental protection.--
       ``(A) In general.--Except as otherwise specifically 
     provided in this section, nothing in this section affects any 
     requirements of an environmental law of the United States, 
     including the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       ``(B) Environmental review of individual lines.--In the 
     case of a Clean Energy Superhighway facility, the Commission 
     shall--
       ``(i) serve as lead agency for the purposes of coordinating 
     the environmental review that is required by law between all 
     relevant Federal agencies;
       ``(ii) in consultation with the affected Federal and State 
     agencies and Indian tribes, prepare a single environmental 
     review document as required under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
       ``(iii) in the case of a line that traverses Federal land, 
     take any action that is required under the terms and 
     conditions of applicable land use plans.
       ``(C) Deadline.--The environmental reviews described in 
     subparagraph (B) shall be completed not later than 1 year 
     after date of application for a certificate.
       ``(D) Memorandum of understanding.--Not later than 1 year 
     after the date of enactment of the National Energy Security 
     Act of 2009, the Commission shall enter into a

[[Page S4186]]

     memorandum of understanding with all applicable Federal land 
     agencies to create a streamlined and consolidated 
     environmental review process to carry out this section.
       ``(8) Certificate of public convenience and necessity.--
       ``(A) In general.--No individual or entity (including 
     States and entities described in subsection (f)) shall 
     construct, acquire, or operate any Clean Energy Superhighway 
     facility, or modify a Clean Energy Superhighway facility for 
     which a certificate was previously issued under this 
     subsection, unless there is in force with respect to the 
     individual or entity a certificate of public convenience and 
     necessity issued by the Commission authorizing such acts or 
     operation.
       ``(B) Application for certificate.--Any individual or 
     entity that seeks to operate, construct, acquire, or modify 
     any Clean Energy Superhighway facility shall--
       ``(i) complete the prefiling process under paragraph (2);
       ``(ii) submit to the Commission a written application in 
     such form and containing such information as the Commission 
     may by regulation require; and
       ``(iii) provide notice of and opportunity for hearing on 
     the application to interested parties in such manner as the 
     Commission shall by regulation require.
       ``(C) Hearing.--On receipt of an application under this 
     paragraph, the Commission--
       ``(i) shall--

       ``(I) provide notice and opportunity to interested persons; 
     and
       ``(II) include any applicable conditions; and

       ``(ii) may approve or disapprove the application, in 
     accordance with paragraph (9).
       ``(9) Grant of certificate.--
       ``(A) In general.--A certificate shall be issued to a 
     qualified applicant for the certificate authorizing the whole 
     or partial operation, construction, acquisition, or 
     modification covered by the application, only if the 
     Commission determines that--
       ``(i) the facility is included in the Clean Energy 
     Superhighway plan certified by the Commission;
       ``(ii) 1 or more applicants are able and willing--

       ``(I) to carry out the acts and perform the service 
     proposed; and
       ``(II) to comply with this Act (including regulations); and

       ``(iii) the proposed operation, construction, acquisition, 
     or modification, to the extent authorized by the certificate, 
     is or will be required by the present or future public 
     convenience and necessity.
       ``(B) Terms and conditions.--The Commission shall have the 
     power to attach to the issuance of a certificate under this 
     paragraph and to the exercise of the rights granted under the 
     certificate such reasonable terms and conditions as the 
     public convenience and necessity may require, including (as 
     may be required by applicable law) land use plans or 
     applicable rights-of-way.
       ``(C) Evaluation of abilities of applicant.--
       ``(i) In general.--In evaluating the ability of 1 or more 
     applicants described in subparagraph (A)(ii), the Commission 
     shall consider whether the financial and technical 
     capabilities of the applicant are adequate to support 
     construction and operation of the project proposed in the 
     application.
       ``(ii) Joint ownership projects.--In evaluating 
     applications that feature joint ownership projects by 
     multiple load-serving or wholesale entities, the Commission 
     shall consider benefits from the greater diversification of 
     financial risk inherent in the applications.
       ``(D) Public convenience and necessity.--In making a 
     determination with respect to public convenience and 
     necessity described in subparagraph (A)(iii), the Commission 
     shall presume that there is a public need for a proposed 
     project that is included in the Clean Energy Superhighway 
     plan developed pursuant to this section or that constitutes 
     all of or a portion of a renewable feeder line.
       ``(10) Right of eminent domain.--
       ``(A) In general.--If any holder of a certificate issued 
     under paragraph (9) cannot acquire by contract, or is unable 
     to agree with the owner of property on the compensation to be 
     paid for, the right-of-way to construct, operate, and 
     maintain the project to which the certificate relates, and 
     the necessary land or other property necessary to the proper 
     operation of the project, the holder may acquire the right-
     of-way by the exercise of the right of eminent domain through 
     a proceeding in--
       ``(i) the United States district court for the district in 
     which the property is located; or
       ``(ii) a State court, to the extent permitted under State 
     law.
       ``(B) Practice and procedure.--The practice and procedure 
     for any action or proceeding described in subparagraph (A) in 
     a United States district court shall conform, to the maximum 
     extent practicable, to the practice and procedure for similar 
     actions or proceedings in the courts of the State in which 
     the property is located.'';
       (2) by striking subsections (i), (j), (k);
       (3) by redesignating subsection (h) as subsection (e);
       (4) in subsection (e) (as redesignated by paragraph (3))--
       (A) in paragraph (2), by striking ``Department of Energy'' 
     and inserting ``Federal Energy Regulatory Commission 
     (referred to in this subsection as the `Commission')''; and
       (B) in paragraph (3), by striking ``Secretary'' and 
     inserting ``Commission''; and
       (5) by adding at the end the following:
       ``(f) Applicability.--This section does not apply to the 
     State of Alaska or Hawaii or to the Electric Reliability 
     Council of Texas, unless the State or the Council voluntarily 
     elects to be covered by this section.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums are necessary to 
     carry out this section.''.

     SEC. 102. RECOVERY OF COSTS FOR SMART GRID TECHNOLOGY AND 
                   ADVANCED MATERIALS.

       Section 219(b)(4) of the Federal Power Act (16 U.S.C. 
     824s(b)(4)) is amended--
       (1) in subparagraph (A), by striking ``and'' after the 
     semicolon at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(C) all prudently incurred costs relating to the 
     deployment of smart grid technology for transmission 
     infrastructure (within the meaning of title XIII of the 
     Energy Independence and Security Act of 2007 (42 U.S.C. 17381 
     et seq.)); and
       ``(D) all prudently incurred costs relating to the use of 
     advanced materials for the construction of technology 
     transmission facilities if the advanced materials are at 
     least 25 percent more efficient than standard transmission 
     materials.''.

                    TITLE II--TRANSPORTATION SECTOR

          Subtitle A--Electrification of Transportation Sector

     SEC. 201. MINIMUM FEDERAL FLEET REQUIREMENT.

       Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 
     13212) is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (B) by inserting after paragraph (1) the following:
       ``(2) Plug-in electric drive vehicles.--Of the total number 
     of vehicles acquired by a Federal fleet under paragraph (1), 
     at least the following percentage of the vehicles shall be 
     plug-in electric drive vehicles (as defined in section 131(a) 
     of the Energy Independence and Security Act of 2007 (42 
     U.S.C. 17011(a))):
       ``(A) 10 percent for fiscal year 2012.
       ``(B) The applicable percentage for the preceding fiscal 
     year increased by 5 percentage points (but not to exceed a 
     total of 50 percent) for fiscal year 2013 and each subsequent 
     fiscal year.''; and
       (C) in paragraph (3) (as redesignated by subparagraph (A)), 
     by inserting ``or (2)'' after ``paragraph (1)''; and
       (2) by striking subsection (c) and inserting the following:
       ``(c) Allocation of Incremental Costs.--Subject to the 
     availability of funds appropriated to carry out this 
     subsection (to remain available until expended), the General 
     Services Administration shall pay the incremental cost of 
     alternative fueled vehicles over the cost of comparable 
     gasoline vehicles for vehicles that the Administration 
     purchased for the use of the Administration or on behalf of 
     other agencies, in a total amount of not to exceed 
     $300,000,000 for any of fiscal years 2012 through 2016.'';
       (3) in subsection (f), by adding at the end the following:
       ``(4) Compliance.--Compliance with this subsection shall 
     not relieve the Federal agency of the obligations of the 
     agency under subsection (b).''; and
       (4) in subsection (g), by striking ``fiscal years 1993 
     through 1998'' and inserting ``each fiscal year''.

     SEC. 202. USE OF HOV FACILITIES BY LIGHT-DUTY PLUG-IN 
                   ELECTRIC DRIVE VEHICLES.

       Section 166(b)(5) of title 23, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``Before'' and 
     inserting ``Except as provided in subparagraph (D), before'';
       (2) in subparagraph (B), by striking ``Before'' and 
     inserting ``Except as provided in subparagraph (D), before''; 
     and
       (3) by adding at the end the following:
       ``(D) Use by plug-in electric drive vehicles.--
       ``(i) Definition of plug-in electric drive vehicle.--In 
     this subparagraph, the term `plug-in electric drive vehicle' 
     has the meaning given the term in section 131(a) of the 
     Energy Independence and Security Act of 2007 (42 U.S.C. 
     17011(a)).
       ``(ii) Use of hov facilities.--A State agency--

       ``(I) shall permit vehicles that are certified as low 
     emission and energy-efficient vehicles in accordance with 
     subsection (e) that are light-duty plug-in electric drive 
     vehicles, and that are purchased on or before December 31 of 
     the calendar year described in clause (iii), as determined by 
     the Secretary, to use HOV facilities in the State; and
       ``(II) shall not impose any toll or other charge on such a 
     vehicle for use of a HOV facility in the State.

       ``(iii) Calendar year.--The calendar year referred to in 
     clause (ii)(I) is the calendar year during which, as 
     determined by the Secretary, the aggregate number of plug-in 
     electric drive vehicles sold in the United States during all 
     calendar years exceeds 2,000,000.
       ``(iv) Petition.--A State may petition the Secretary to 
     limit or discontinue the use of a HOV facility by plug-in 
     electric drive vehicles if the State demonstrates to the 
     Secretary that the presence of the plug-in electric drive 
     vehicles has degraded the operation of the HOV facility.''.

     SEC. 203. RECHARGING INFRASTRUCTURE.

       (a) Definitions.--In this section:

[[Page S4187]]

       (1) Local government.--The term ``local government'' has 
     the meaning given the term in section 3371 of title 5, United 
     States Code.
       (2) Plug-in electric drive vehicle.--The term ``plug-in 
     electric drive vehicle'' has the meaning given the term in 
     section 131(a) of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17011(a)).
       (3) Range extension infrastructure.--The term ``range 
     extension infrastructure'' includes equipment, products, or 
     services for recharging plug-in electric drive vehicles 
     that--
       (A) are available to retail consumers of electric drive 
     vehicles on a non-discriminatory basis;
       (B) provide for extending driving range through battery 
     exchange or rapid recharging; and
       (C) are comparable in convenience and price to petroleum-
     based refueling services.
       (b) Study.--
       (1) In general.--The Secretary shall conduct a study of--
       (A) the number and distribution of recharging facilities, 
     including range extension infrastructure, that will be 
     required for drivers of plug-in electric drive vehicles to 
     reliably recharge the electric drive vehicles;
       (B) minimum technical standards for public recharging 
     facilities in coordination with the National Institute of 
     Standards and Technology; and
       (C) the concurrent technical and infrastructure investments 
     that electric utilities and electricity providers will be 
     required to make to support widespread deployment of 
     recharging infrastructure and the estimated costs of the 
     investments.
       (2) Components.--In conducting the study required under 
     this subsection, the Secretary shall analyze--
       (A) the variety and density of recharging infrastructure 
     options necessary to power plug-in electric drive vehicles 
     under diverse scenarios, including--
       (i) the ratio of residential, commercial, and public 
     recharging infrastructure options necessary to support 10 
     percent, 20 percent, and 50 percent penetration of plug-in 
     electric vehicles on a city fleet basis;
       (ii) the ratio of residential, commercial, and public 
     recharging infrastructure options necessary to support 10 
     percent, 20 percent, and 50 percent penetration of plug-in 
     electric vehicles on a national fleet basis; and
       (iii) the potential impact of fast charging on penetration 
     rates and utility power management requirements;
       (B) whether use of parking spots with access to recharging 
     facilities should be limited to plug-in electric drive 
     vehicles;
       (C) whether model building codes should be amended to cover 
     recharging facilities; and
       (D) such other issues as the Secretary considers 
     appropriate.
       (3) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of Congress a report on the results of 
     the study conducted under this subsection, including any 
     recommendations.
       (c) Grants and Loans to State and Local Governments for 
     Recharging Infrastructure.--
       (1) In general.--Effective beginning October 1, 2010, the 
     Secretary shall establish a program under which the Secretary 
     shall provide grants and loans to local governments to assist 
     in the installation of recharging facilities for electric 
     drive vehicles in areas under the jurisdiction of the local 
     governments. The Secretary shall provide funding under this 
     section to State or local governments to pay not more than 
     fifty percent of the recharging infrastructure cost.
       (2) Eligibility.--To be eligible to obtain a grant or loan 
     under this subsection, a local government shall--
       (A) demonstrate to the Secretary that the applicant has 
     taken into consideration the findings of the report submitted 
     under subsection (b)(3), unless the local government 
     demonstrates to the Secretary that an alternative variety and 
     density of recharging infrastructure options would better 
     meet the purposes of this section; and
       (B) agree not to charge a premium for use of a parking 
     space used to recharge an electric drive vehicle other than a 
     charge for electric energy.
       (3) Guidelines.--The Secretary shall establish guidelines 
     for carrying out this subsection that are consistent with the 
     report submitted under subsection (b)(3).
       (4) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this 
     subsection a total of $250,000,000 for grants and a total of 
     $250,000,000 for loans, to remain available until expended.

     SEC. 204. LOAN GUARANTEES FOR ADVANCED BATTERY PURCHASES.

       Subtitle B of title I of the Energy and Independence and 
     Security Act of 2007 (42 U.S.C. 17011 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 137. LOAN GUARANTEES FOR ADVANCED BATTERY PURCHASES.

       ``(a) Definitions.--In this section:
       ``(1) Plug-in electric drive vehicle.--The term `plug-in 
     electric drive vehicle' has the meaning given the term in 
     section 131(a).
       ``(2) Range extension infrastructure.--The term `range 
     extension infrastructure' includes equipment, products, or 
     services for recharging plug-in electric drive vehicles 
     that--
       ``(A) are available to retail consumers of electric drive 
     vehicles on a nondiscriminatory basis;
       ``(B) provide for extended driving range through battery 
     exchange or rapid recharging; and
       ``(C) are comparable in convenience and price to petroleum-
     based refueling services.
       ``(b) Loan Guarantees.--The Secretary shall guarantee loans 
     made to eligible entities for the aggregate purchase by an 
     eligible entity of not less than 5,000 batteries that use 
     advanced battery technology within a calendar year.
       ``(c) Eligible Entities.--To be eligible to obtain a loan 
     guarantee under this section, an entity shall be--
       ``(1) an original equipment manufacturer;
       ``(2) a vehicle manufacturer;
       ``(3) an electric utility;
       ``(4) any provider of range extension infrastructure; or
       ``(5) any other qualified entity, as determined by the 
     Secretary.
       ``(d) Regulations.--The Secretary shall promulgate such 
     regulations as are necessary to carry out this section.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 205. STUDY OF END-OF-USEFUL LIFE OPTIONS FOR MOTOR 
                   VEHICLE BATTERIES.

       (a) In General.--In combination with the research, 
     demonstration, and deployment activities conducted under 
     section 641(k) of the Energy and Independence and Security 
     Act of 2007 (42 U.S.C. 17231(k)), the Secretary shall conduct 
     a study on the end-of-useful life options for motor vehicle 
     batteries, including recommendations for stationary storage 
     applications and recyclability design specifications.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of Congress a report on the results of 
     the study conducted under subsection (a), including any 
     recommendations.

              Subtitle B--Medium- and Heavy-Duty Vehicles

     SEC. 211. MAXIMUM WEIGHT STUDY.

       (a) In General.--The Secretary of Transportation, in 
     consultation with the Administrator of the National Highway 
     Traffic Safety Administration, shall conduct a study to 
     investigate whether oil savings goals can be achieved in the 
     trucking industry without adverse safety consequences by 
     determining the safety impacts and other effects of 
     increasing the maximum allowable gross weight for vehicles 
     using the Interstate System to allow for larger, more fuel-
     efficient tractor-trailers.
       (b) Study Components.--In conducting the study under this 
     section, the Secretary of Transportation shall--
       (1) determine whether a vehicle with a supplementary sixth 
     axle and a gross weight of up to 97,000 pounds that is 
     traveling at 60 miles per hour is capable of stopping at a 
     distance of 355 feet or less;
       (2) determine whether the use of the Interstate System by 
     vehicles described in paragraph (1) would require a 
     fundamental alteration of the vehicle architecture that is 
     commonly used for the transportation of goods as of the day 
     before the date of the enactment of this Act;
       (3) analyze the safety impacts of allowing vehicles 
     described in paragraph (1) to use the Interstate System; and
       (4) consider the potential impact on highway safety of 
     applying lower speed limits on such vehicles than the speed 
     limits in effect on the day before the date of the enactment 
     of this Act.
       (c) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary shall submit a report to 
     Congress that contains the results of the study conducted 
     under this section, including a determination by the 
     Secretary as to whether permitting vehicles with a 
     supplementary sixth axle and a gross weight of not more than 
     97,000 pounds to use the Interstate System would have an 
     adverse impact on highway safety.
       (d) Definition.--In this section, the term ``Interstate 
     System'' has the meaning given that term in section 101(a) of 
     title 23, United States Code.

     SEC. 212. FUEL ECONOMY.

       Section 32912(e)(1) of title 49, United States Code, is 
     amended by inserting ``provide equipment and facilities for 
     the program established under section 32902(k), and to'' 
     after ``shall be used by the Secretary to''.

          Subtitle C--Alternative Transportation Technologies

     SEC. 221. FLEXIBLE FUEL AUTOMOBILES.

       (a) In General.--Chapter 329 of title 49, United States 
     Code, is amended--
       (1) in section 32901(a)--
       (A) by redesignating paragraphs (10) through (19) as 
     paragraphs (11) through (20), respectively; and
       (B) by inserting after paragraph (9) the following:
       ``(10) `flexible fuel automobile' means an automobile that 
     has been warranted by the manufacturer of the automobile to 
     operate on gasoline and fuel mixtures containing 15 percent 
     gasoline and 85 percent ethanol or methanol.''; and
       (2) by inserting after section 32902 the following:

     ``Sec. 32902A. Requirement to manufacture flexible fuel 
       automobiles

       ``(a) In General.--For each model year listed in the 
     following table, each manufacturer shall ensure that the 
     percentage of

[[Page S4188]]

     automobiles manufactured by the manufacturer for sale in the 
     United States that are flexible fuel automobiles is not less 
     than the percentage set forth for that model year in the 
     following table:

------------------------------------------------------------------------
               ``Model Year                          Percentage
------------------------------------------------------------------------
  model year 2012........................  50 percent
  model year 2013........................  60 percent
  model year 2014........................  70 percent
  model year 2015........................  80 percent
  model year 2016........................  90 percent
  model year 2017........................  100 percent
------------------------------------------------------------------------

       ``(b) Automobiles Excluded.--The requirement under 
     subsection (a) shall not apply to any automobile that 
     operates on diesel, natural gas, hydrogen, or electricity.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     329 of title 49, United States Code, is amended by inserting 
     after the item relating to section 32902 the following:

``32902A. Requirement to manufacture flexible fuel automobiles.''.

       (c) Rulemaking.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary of Transportation 
     shall prescribe regulations to carry out section 32902A of 
     title 49, United States Code, as added by subsection (a).

     SEC. 222. TRANSPORTATION ROADMAP STUDY.

       (a) In General.--The Secretary shall enter into an 
     arrangement with the National Academy of Sciences under which 
     the Academy shall--
       (1) conduct a comprehensive analysis of energy use by 
     automobiles; and
       (2) use the analysis to conduct an integrated assessment of 
     the technological options that could lead to reduced 
     petroleum consumption and greenhouse gas emissions.
       (b) Components.--The study required under this section 
     shall--
       (1) assess the status of technology options, including--
       (A) prospects of future fuels and pathways;
       (B) the infrastructure and other barriers for increased 
     market penetration;
       (C) potential timing of market adoption;
       (D) potential reductions of petroleum consumption and 
     greenhouse gas emissions; and
       (E) improvements in and priorities for Federal research and 
     development program activities;
       (2) consider issues relating to duty cycles, regional 
     distinctions, and technological development timelines;
       (3) build on and integrate applicable research conducted in 
     recent years, including by the Academy;
       (4) evaluate technical options and assess the extent to 
     which the United States can employ the options to reduce oil 
     intensity by 80 percent by calendar year 2050 and reduce 
     carbon dioxide emissions at a rate that is consistent with 
     national goals; and
       (5) recommend policies to help facilitate the United States 
     to meet national goals.
       (c) Report.--Not later than 21 months after funds are first 
     made available to carry out this section, the Secretary shall 
     submit to the appropriate committees of Congress a report on 
     the results of the study conducted under subsection (a), 
     including any recommendations.
       (d) Updates.--
       (1) In general.--Not later than 5 years after the initial 
     study is conducted under this section and every 5 years 
     thereafter, the Secretary shall enter into an arrangement 
     with the National Academy of Sciences under which the Academy 
     shall update the study required under this section.
       (2) Report.--Not later than 21 months after the date an 
     arrangement is entered into under paragraph (1), the 
     Secretary shall submit to the appropriate committees of 
     Congress a report on the results of the updated study 
     conducted under paragraph (1), including any recommendations.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $2,200,000.

       DIVISION B--DOMESTIC PRODUCTION AND WORKFORCE DEVELOPMENT

                       TITLE I--INCREASING SUPPLY

       Subtitle A--Increasing Production From Domestic Resources

     SEC. 300. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Internal Revenue Code of 1986.

                 PART I--INVESTMENT IN RENEWABLE ENERGY

     SEC. 301. EXTENSION OF RENEWABLE ELECTRICITY PRODUCTION 
                   CREDIT.

       (a) In General.--Subsection (d) of section 45 is amended--
       (1) by striking ``January 1, 2013'' in paragraph (1) and 
     inserting ``January 1, 2015'', and
       (2) by striking ``January 1, 2014'' each place it appears 
     in paragraphs (2), (3), (4), (6), (7), (9), and (11)(B) and 
     inserting ``January 1, 2015''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 302. EXPANSION AND EXTENSION OF NEW CLEAN RENEWABLE 
                   ENERGY BONDS.

       (a) In General.--Paragraph (2) of section 54C(c) is amended 
     by inserting ``, for calendar years 2011, 2012, 2013, and 
     2014, an additional $500,000,000 for each year, and, except 
     as provided in paragraph (5) for years after 2014, zero,'' 
     after ``$800,000,000''.
       (b) Carryover of Unused Limitation.--Subsection (c) of 
     section 54C is amended by adding at the end the following new 
     paragraph:
       ``(5) Carryover of unused limitation.--If for any calendar 
     year--
       ``(A) the amount allocated under paragraph (2) for such 
     calendar year, exceeds
       ``(B) the amount of bonds issued during such year which are 
     designated under subsection (a) pursuant to such allocation,

     then the limitation amount under paragraph (2) for the 
     following calendar year shall be increased by the amount of 
     such excess.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after December 31, 2010.

     SEC. 303. EXTENSION OF INVESTMENT TAX CREDIT FOR CERTAIN 
                   ENERGY PROPERTY.

       (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) are each amended by striking 
     ``January 1, 2017'' and inserting ``January 1, 2019''.
       (b) Fuel Cell Property.--Subparagraph (E) of section 
     48(c)(1) is amended by striking ``December 31, 2016'' and 
     inserting ``December 31, 2018''.
       (c) Qualified Small Wind Energy Property.--Subparagraph (D) 
     of section 48(c)(4) is amended by striking ``December 31, 
     2016'' and inserting ``December 31, 2018''.
       (d) Geothermal Heat Pump Systems.--Clause (vii) of section 
     48(a)(3)(A) is amended by striking ``January 1, 2017'' and 
     inserting ``January 1, 2019''.
       (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. 304. INCREASE IN CREDIT FOR INVESTMENT IN ADVANCED 
                   ENERGY FACILITIES.

       (a) In General.--Subparagraph (B) of section 48C(d)(1) is 
     amended by striking ``$2,300,000,000'' and inserting 
     ``$4,000,000,000''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the amendments made by 
     section 1302 of the American Recovery and Reinvestment Tax 
     Act of 2009.

            PART II--INVESTMENT IN ALTERNATIVE FUEL PROPERTY

     SEC. 311. EXTENSION OF CREDITS FOR ALCOHOL FUELS.

       (a) In General.--Sections 40, 6426(b)(6), and 6427(e)(6)(A) 
     are amended by striking ``2010'' each place it appears and 
     inserting ``2011''.
       (b) Conforming Amendment.--Section 40(e)(1)(B) is amended 
     by striking ``2011'' and inserting ``2012''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales and uses after the date of the enactment 
     of this Act.

     SEC. 312. EXTENSION OF CREDITS FOR BIODIESEL AND RENEWABLE 
                   DIESEL.

       (a) In General.--Sections 40A(g), 6426(c)(6), and 
     6427(e)(6)(B) are each amended by striking ``December 31, 
     2009'' and inserting ``December 31, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to sales and uses after the date of the enactment 
     of this Act.

      PART III--INVESTMENT IN ELECTRIC DRIVE AND ADVANCED VEHICLES

     SEC. 321. EXTENSION OF CREDIT AND EXTENSION OF TEMPORARY 
                   INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE 
                   REFUELING PROPERTY.

       (a) Extension of Credit.--Subsection (g) of section 30C is 
     amended by striking ``service--'' and all that follows and 
     inserting ``service after December 31, 2018.''.
       (b) Extension of Temporary Increase.--Paragraph (6) of 
     section 30C(e) is amended--
       (1) by striking ``January 1, 2011'' and inserting ``January 
     1, 2019'', and
       (2) by striking ``and 2010'' in the heading and inserting 
     ``through 2018''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 322. EXTENSION AND EXPANSION OF CREDIT FOR NEW QUALIFIED 
                   PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

       (a) Extension.--Section 30D is amended by adding at the end 
     the following new subsection:
       ``(g) Termination.--This section shall not apply to any 
     property purchased after December 31, 2018.''.
       (b) Restoration of Credit for Large New Qualified Plug-in 
     Electric Drive Motor Vehicles Weighing Over 14,000 Pounds.--
       (1) In general.--The last sentence of section 30D(b)(3) is 
     amended to read as follows: ``The amount determined under 
     this paragraph shall not exceed--
       ``(A) $5,000, in the case of any new qualified plug-in 
     electric drive motor vehicle with a gross vehicle weight 
     rating of not more than 14,000 pounds,
       ``(B) $10,000, in the case of any new qualified plug-in 
     electric drive motor vehicle with a gross vehicle weight 
     rating of more than 14,000 pounds but not more than 26,000 
     pounds, and
       ``(C) $12,500, in the case of any new qualified plug-in 
     electric drive motor vehicle with a gross vehicle weight 
     rating of more than 26,000 pounds.''.
       (2) Conforming amendments.--Paragraph (1) of section 30D(d) 
     is amended by adding ``and'' at the end of subparagraph (D), 
     by striking subparagraph (E), and by redesignating 
     subparagraph (F) as subparagraph (E).

[[Page S4189]]

       (c) Increase in Per Manufacturer Cap.--Paragraph (2) of 
     section 30D(e) is amended by striking ``200,000'' and 
     inserting ``400,000''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to vehicles acquired after the date of the 
     enactment of this Act.

     SEC. 323. EXTENSION OF CREDIT FOR CERTAIN PLUG-IN ELECTRIC 
                   VEHICLES.

       (a) In General.--Subsection (f) of section 30 is amended by 
     striking ``December 31, 2011'' and inserting ``December 31, 
     2018''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to vehicles acquired after the date of the 
     enactment of this Act.

     SEC. 324. EXTENSION OF CREDIT FOR MEDIUM AND HEAVY DUTY 
                   HYBRID VEHICLES.

       (a) In General.--Paragraph (3) of section 30B(k) is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to vehicles acquired after the date of the 
     enactment of this Act.

     SEC. 325. CREDIT FOR HEAVY DUTY NATURAL GAS VEHICLES.

       (a) In General.--Paragraph (4) of section 30B(k) is amended 
     by inserting ``(December 31, 2018, in the case of such a 
     vehicle which has a gross vehicle weight rating of more than 
     26,000 pounds and which operates on compressed natural gas or 
     liquified natural gas)'' after ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to vehicles acquired after the date of the 
     enactment of this Act.

               PART IV--LOW CARBON LOAN GUARANTEE PROGRAM

     SEC. 331. INNOVATIVE LOW-CARBON LOAN GUARANTEE PROGRAMS.

       Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 
     16513) is amended--
       (1) in subsection (b), by adding at the end the following:
       ``(11) Innovative low-carbon technology projects in 
     accordance with subsection (f).''; and
       (2) by adding at the end the following:
       ``(f) Innovative Low-Carbon Technology Projects.--
       ``(1) In general.--The Secretary may make guarantees to 
     carry out innovative low-carbon technologies projects.
       ``(2) Funding.--
       ``(A) In general.--Subject to the Federal Credit Reform Act 
     of 1990 (2 U.S.C. 661 et seq.), the total principal amount of 
     loans guaranteed to carry out projects under this subsection 
     shall not exceed $50,000,000,000, to remain available until 
     committed.
       ``(B) Additional amounts.--Amounts made available to carry 
     out this subsection shall be in addition to any other 
     authority provided for fiscal year 2010 or any previous 
     fiscal year.
       ``(C) Source of funds.--
       ``(i) In general.--Amounts made available to carry out this 
     subsection shall be--

       ``(I) derived from amounts received from borrowers pursuant 
     to section 1702(b)(2) for fiscal year 2010 or any previous 
     fiscal year; and
       ``(II) collected in accordance with the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661 et seq.).

       ``(ii) Treatment.--The source of payment received from 
     borrowers described in clause (i) shall be not considered a 
     loan or other debt obligation that is guaranteed by the 
     Federal Government.
       ``(D) Subsidy cost.--In accordance with section 1702(b)(2), 
     no appropriations to carry out this subsection shall be 
     available to pay the subsidy cost of guarantees.''.

                     PART V--INVESTMENT IN ETHANOL

     SEC. 341. RESEARCH AND DEVELOPMENT OF FUNGIBLE BIOFUELS.

       There is authorized to be appropriated for advanced 
     biofuels research, development, and demonstration that will 
     create fuels that are fungible in existing infrastructure 
     $100,000,000.

     PART VI--STUDIES ON MARKET PENETRATION OF RENEWABLE RESOURCES

     SEC. 351. STUDIES ON MARKET PENETRATION OF RENEWABLE 
                   RESOURCES.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall conduct--
       (1) a study on the quantity of solar energy (including 
     photovoltaic and solar thermal energy) that can reasonably be 
     expected to be deployed in the United States by calendar year 
     2030 and the requirements and costs associated with that 
     deployment;
       (2) a study on the quantity of geothermal energy (including 
     regular and advanced geothermal energy) that can reasonably 
     be expected to be deployed in the United States by calendar 
     year 2030 and the requirements and costs associated with that 
     deployment;
       (3) a study on the quantity of hydrokinetic energy that can 
     reasonably be expected to be deployed in the United States by 
     calendar year 2030 and the requirements and costs associated 
     with that deployment; and
       (4) in consultation with the Secretary of Agriculture, a 
     study on the quantity of renewable biomass energy that can 
     reasonably be expected to be deployed in the United States by 
     calendar year 2030, including consideration of--
       (A) the needs of biofuels, biomass-based electricity, and 
     thermal applications;
       (B) the highest efficiency energy use of biomass resources; 
     and
       (C) the requirements and costs associated with deployment.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of Congress, and make publicly 
     available, a report that integrates the results of the 
     studies conducted under subsection (a), and other relevant 
     studies, including an analysis and recommendations on--
       (1) the best areas and rates for deployment of solar, 
     geothermal, wind, biomass, and hydrokinetic energy by 
     calendar year 2030 (based on multiple alternative scenarios); 
     and
       (2) the levels of market penetration that can be 
     accomplished by calendar year 2030 (based on multiple 
     alternative scenarios).

        Subtitle B--Increasing Production From Fossil Resources

                    PART I--OUTER CONTINENTAL SHELF

     SEC. 361. INVENTORY OF OUTER CONTINENTAL SHELF OIL AND GAS 
                   RESOURCES.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act and subject to subsection (b), the 
     Secretary of the Interior (referred to in this subtitle as 
     the ``Secretary'') shall complete an inventory of oil and 
     natural gas resources in areas of the Outer Continental Shelf 
     (as defined in section 2 of the Outer Continental Shelf Lands 
     Act (43 U.S.C. 1331)) with the greatest potential for 
     containing oil or gas reserves.
       (b) Requirements.--
       (1) In general.--The Secretary shall carry out the 
     inventory under subsection (a) in stages, focusing first on 
     areas that the Secretary identifies as having the greatest 
     potential for oil and gas reserves.
       (2) Public comments.--To assist the Secretary in 
     identifying areas that have the greatest potential for oil 
     and gas reserves under paragraph (1), the Secretary shall, 
     not later than 60 days after the date of enactment of this 
     Act, issue a notice in the Federal Register requesting 
     comments from the public on areas of the Outer Continental 
     Shelf that may contain the most significant oil and gas 
     deposits.
       (3) Initiation of certain inventories.--Not later than 90 
     days after the date of enactment of this Act, the Secretary 
     shall begin conducting any inventories in the Atlantic and 
     Pacific areas of the Outer Continental Shelf.
       (4) Best available technology.--In conducting the inventory 
     under subsection (a), the Secretary shall--
       (A) use the best technology available to obtain accurate 
     resource estimates; and
       (B) include the results of geological and geophysical 
     explorations carried out--
       (i) under existing or expired leases; or
       (ii) under part 251 of title 30, Code of Federal 
     Regulations (or successor regulations).
       (5) Reports.--On completion of any independent reports 
     prepared as part of an inventory under this section, the 
     Secretary shall make the independent reports immediately 
     available to the public.
       (c) Environmental Studies.--Not later than 180 days after 
     the date of enactment of this Act, the Secretary shall 
     complete any environmental studies necessary to gather 
     information essential to an accurate inventory, including 
     geological and geophysical explorations under part 251 of 
     title 30, Code of Federal Regulations (or successor 
     regulations).
       (d) Reports.--
       (1) In general.--On completion of an inventory under this 
     section, the Secretary shall submit to Congress and the 
     Governors of any affected coastal States a report that 
     describes the results of the inventory.
       (2) Assessment.--A report submitted under paragraph (1) 
     shall include an assessment of the economic, energy, 
     environmental, and national security impacts on the United 
     States, any affected coastal States, and any affected local 
     units of government if the oil and natural gas resources 
     identified by the inventory were developed and produced, 
     including estimates of any direct and indirect revenues that 
     would be available to the Federal Government, the affected 
     coastal State governments, and units of local government.
       (e) Effect on Oil and Gas Leasing.--No inventory that is 
     conducted under this section or any other Federal law 
     (including regulations) shall restrict, limit, delay, or 
     otherwise adversely affect--
       (1) the development of any Outer Continental Shelf leasing 
     program under section 18 of the Outer Continental Shelf Lands 
     Act (43 U.S.C. 1344); or
       (2) any leasing, exploration, development, or production of 
     any Federal offshore oil and gas leases.
       (f) Funding.--
       (1) In general.--The Secretary of the Treasury shall make a 
     1-time transfer to the Secretary, from royalties collected in 
     conjunction with the production of oil and gas, such sums as 
     are necessary to carry out this section, including the 
     completion of environmental studies necessary to conduct 
     geological and geophysical explorations in all of the Outer 
     Continental Shelf areas of the Atlantic and the Pacific under 
     part 251 of title 30, Code of Federal Regulations (or 
     successor regulations).
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       (3) Limitation.--The amounts transferred under paragraph 
     (1) shall not exceed $150,000,000.

[[Page S4190]]

     SEC. 362. LEASING OF OFFSHORE AREAS ESTIMATED TO CONTAIN 
                   COMMERCIALLY RECOVERABLE OIL OR GAS RESOURCES.

       (a) Definition of Potential Producing Area.--In this 
     section, the term ``potential producing area'' means any area 
     in an Outer Continental Shelf planning area, as defined by 
     the Minerals Management Service, that a seismic survey or 
     other geologic study identifies as exhibiting geologic 
     characteristics similar to the characteristics found in other 
     commercial oil and gas producing regions in the Outer 
     Continental Shelf or other oil and gas producing areas.
       (b) Leasing of Potential Producing Areas.--Not later than 1 
     year after the date of the release of an inventory or report 
     under section 361 that identifies a potential producing area, 
     the Secretary may make the potential producing area available 
     for oil and gas leasing under the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1331 et seq.).
       (c) Leasing Plan.--The omission of a potential producing 
     area from the applicable 5-year plan developed by the 
     Secretary pursuant to section 18 of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1344) may allow the leasing of a 
     potential producing area under subsection (b).

     SEC. 363. ENVIRONMENTAL STEWARDSHIP AND ALLOWABLE ACTIVITIES.

       (a) In General.--The Secretary shall promulgate regulations 
     that establish appropriate environmental safeguards for the 
     exploration and production of oil and natural gas on the 
     Outer Continental Shelf.
       (b) Minimum Requirements.--At a minimum, the regulations 
     shall include--
       (1) provisions requiring surety bonds of sufficient value 
     to ensure the mitigation of any reasonably foreseeable 
     incident that could be directly caused by persons engaged in 
     oil and natural gas development, in accordance with subpart A 
     of part 256 of title 30, Code of Federal Regulations (or 
     successor regulations);
       (2) provisions assigning liability to responsible parties 
     of environmental damage to the Outer Continental Shelf to the 
     extent that the damage is not otherwise implicitly or 
     explicitly authorized or permitted by Federal law (including 
     regulations);
       (3) provisions no less stringent than the regulations 
     promulgated under the Oil Pollution Act of 1990 (33 U.S.C. 
     2701 et seq.); and
       (4) provisions ensuring that--
       (A) no surface facility is installed for the purpose of 
     production of oil or gas resources in any area visible to the 
     unassisted eye from any shore of any coastal State in any 
     areas in the Outer Continental Shelf that have not previously 
     been made available for oil and gas leasing;
       (B) only temporary surface facilities are installed for 
     areas that are--
       (i) beyond the area described in subparagraph (A); and
       (ii) located not more than 25 miles from the shore of any 
     coastal State in any areas in the Outer Continental Shelf 
     that have not previously been made available for oil and gas 
     leasing; and
       (C) the impact of offshore production facilities on coastal 
     vistas is otherwise mitigated.
       (c) Exclusions.--No regulations promulgated under this 
     section shall apply to the development, construction, or 
     operation of renewable energy facilities on the Outer 
     Continental Shelf.
       (d) Conforming Amendment.--Section 105 of the Department of 
     the Interior, Environment, and Related Agencies 
     Appropriations Act, 2006 (Public Law 109-54; 119 Stat. 521) 
     (as amended by section 103(d) of the Gulf of Mexico Energy 
     Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
     432)) is amended by inserting ``and any other area that the 
     Secretary of the Interior may offer for leasing, preleasing, 
     or any related activity under section 104 of that Act'' after 
     ``2006)''.

     SEC. 364. MORATORIUM OF OIL AND GAS LEASING IN CERTAIN AREAS 
                   OF THE GULF OF MEXICO.

       (a) Moratorium.--Section 104 of the Gulf of Mexico Energy 
     Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
     432) is amended by striking subsection (a) and inserting the 
     following:
       ``(a) In General.--Effective during the period beginning on 
     the date of enactment of this Act and ending on June 30, 
     2022, the Secretary shall not offer for leasing, preleasing, 
     or any related activity any area east of 85 degrees, 50 
     minutes West Longitude in the Eastern Planning Area that is 
     within 45 miles of the coastline of the State of Florida.''.
       (b) National Defense Area.--Section 12(d) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1341(d)) is amended--
       (1) by striking ``The United States'' and inserting the 
     following:
       ``(1) In general.--The United States''; and
       (2) by adding at the end the following:
       ``(2) Review.--Annually, the Secretary of Defense shall 
     review the areas of the Outer Continental Shelf that have 
     been designated as restricted from exploration and operation 
     to determine whether the areas should remain under 
     restriction.''.
       (c) Leasing of Moratorium Areas.--
       (1) In general.--As soon as practicable, after the date of 
     enactment of this Act, the Secretary shall offer for leasing 
     under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
     et seq.), any areas made available for leasing as a result of 
     the amendment made by subsection (a).
       (2) Administration.--Any areas made available for leasing 
     under paragraph (1) shall be offered for lease under this 
     section--
       (A) notwithstanding the omission of any of these respective 
     areas from the applicable 5-year plan developed by the 
     Secretary pursuant to section 18 of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1344); and
       (B) in a manner consistent with section 363.

     SEC. 365. TREATMENT OF REVENUES.

       Section 8(g) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337(g)) is amended--
       (1) in paragraph (2), by striking ``Notwithstanding'' and 
     inserting ``Except as provided in paragraph (6), and 
     notwithstanding'';
       (2) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively; and
       (3) by inserting after paragraph (5) the following:
       ``(6) Renewable energy reserve fund.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Fund.--The term `fund' means the Renewable Energy 
     Reserve Fund established by subparagraph (B).
       ``(ii) Qualified lease.--The term `qualified lease' means a 
     natural gas or oil lease granted under this Act after the 
     date of enactment of the National Energy Security Act of 2009 
     for an area that is made available for leasing under part I 
     of subtitle B of title I of division B of that Act.
       ``(B) Establishment.--There is established in the Treasury 
     of the United States a reserve account, to be known as the 
     `Renewable Energy Reserve Account', consisting of such 
     amounts as are appropriated to the Fund under subparagraph 
     (C).
       ``(C) Transfers to fund.--There are appropriated to the 
     Fund, out of funds of the Treasury not otherwise 
     appropriated, amounts equivalent to amounts received by the 
     United States after September 30, 2009, as bonus bids, 
     royalties, or rentals from, or otherwise collected under, any 
     qualified lease on submerged land made available for leasing 
     under this Act by the National Energy Security Act of 2009 
     (including any amendment made by that Act).
       ``(D) Use of fund.--Subject to subparagraph (E), amounts in 
     the Fund shall be used to offset the costs of carrying out 
     the National Energy Security Act of 2009.
       ``(E) Termination of fund.--
       ``(i) In general.--The Fund shall terminate on the date on 
     which the Secretary determines that the costs of carrying out 
     the National Energy Security Act of 2009 have been repaid.
       ``(ii) Transfer.--On termination of the Fund under clause 
     (i), the remaining balance in the Fund shall be transferred 
     to the appropriate fund of the Treasury.''.

                    PART II--OTHER FOSSIL RESOURCES

     SEC. 371. AUTHORIZATION OF ACTIVITIES AND EXPORTS INVOLVING 
                   HYDROCARBON RESOURCES.

       (a) Definition.--In this section, the term ``United States 
     person'' means--
       (1) any United States citizen or alien lawfully admitted 
     for permanent residence in the United States; and
       (2) any person other than an individual, if 1 or more 
     individuals described in paragraph (1) own or control at 
     least 51 percent of the securities or other equity interest 
     in the person.
       (b) Authorization.--Notwithstanding any other provision of 
     law (including a regulation), United States persons 
     (including agents and affiliates of those United States 
     persons) may--
       (1) engage in any transaction necessary for the exploration 
     for and extraction of hydrocarbon resources from any portion 
     of any foreign exclusive economic zone that is contiguous to 
     the exclusive economic zone of the United States; and
       (2) export without license authority all equipment 
     necessary for the exploration for or extraction of 
     hydrocarbon resources described in paragraph (1).

     SEC. 372. TRAVEL IN CONNECTION WITH AUTHORIZED HYDROCARBON 
                   EXPLORATION AND EXTRACTION ACTIVITIES.

       Section 910 of the Trade Sanctions Reform and Export 
     Enhancement Act of 2000 (22 U.S.C. 7209) is amended by adding 
     at the end the following:
       ``(c) General License Authority for Travel-Related 
     Expenditures by Persons Engaging in Hydrocarbon Exploration 
     and Extraction Activities.--
       ``(1) In general.--The Secretary of the Treasury shall 
     authorize under a general license the travel-related 
     transactions listed in section 515.560(c) of title 31, Code 
     of Federal Regulations, for travel to, from, or within Cuba 
     in connection with exploration for and the extraction of 
     hydrocarbon resources in any part of a foreign maritime 
     Exclusive Economic Zone that is contiguous to the United 
     States' Exclusive Economic Zone.
       ``(2) Persons authorized.--Persons authorized to travel to 
     Cuba under this section include full-time employees, 
     executives, agents, and consultants of oil and gas producers, 
     distributors, and shippers.''.

     SEC. 373. ALASKA OCS JOINT LEASE AND PERMITTING PROCESSING 
                   OFFICE.

       (a) Establishment.--The Secretary of the Interior (referred 
     to in this section as the ``Secretary'') shall establish a 
     regional joint Outer Continental Shelf lease and permit 
     processing office for the Alaska Outer Continental Shelf 
     region.
       (b) Memorandum of Understanding.--Not later than 90 days 
     after the date of enactment of this Act, the Secretary shall 
     enter into a memorandum of understanding for the purposes of 
     carrying out this section with--
       (1) the Secretary of Commerce;

[[Page S4191]]

       (2) the Chief of Engineers;
       (3) the Administrator of the Environmental Protection 
     Agency; and
       (4) any other Federal agency that may have a role in 
     permitting activities.
       (c) Designation of Qualified Staff.--
       (1) In general.--Not later than 30 days after the date of 
     the signing of the memorandum of understanding under 
     subsection (b), each Federal signatory party shall, if 
     appropriate, assign to the office described in subsection (a) 
     an employee who has expertise in the regulatory issues 
     administered by the office in which the employee is employed 
     relating to leasing and the permitting of oil and gas 
     activities on the Outer Continental Shelf.
       (2) Duties.--An employee assigned under paragraph (1) 
     shall--
       (A) not later than 90 days after the date of assignment, 
     report to the office described in subsection (a);
       (B) be responsible for all issues relating to the 
     jurisdiction of the home office or agency of the employee; 
     and
       (C) participate as part of the team of personnel working on 
     proposed oil and gas leasing and permitting, including 
     planning and environmental analyses.

     SEC. 374. ALASKA NATURAL GAS PIPELINE.

       Section 116(c)(2) of the Alaska Natural Gas Pipeline Act 
     (15 U.S.C. 720n(c)(2)) is amended by striking 
     ``$18,000,000,000'' and inserting ``$30,000,000,000''.

        TITLE II--CLEAN ENERGY TECHNOLOGY WORKFORCE DEVELOPMENT

     SEC. 401. CLEAN ENERGY TECHNOLOGY WORKFORCE.

       (a) Grants.--
       (1) In general.--The Secretary shall award competitive, 
     merit-based grants to institutions of higher education (as 
     defined in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a))) for the establishment of programs 
     providing training and education for vocational workforce 
     development through centers of excellence for a broad range 
     of clean energy sector needs in the clean energy technology 
     workforce of the United States, as determined by the 
     Secretary.
       (2) Other institutions.--In carrying out this subsection, 
     the Secretary shall accept proposals for centers from 
     institutions of higher education that have or are prepared to 
     develop a meaningful curriculum and program described in 
     paragraph (1).
       (b) National Merit Scholarship Program.--
       (1) In general.--The Secretary shall establish a national 
     merit scholarship program that provides scholarships each 
     fiscal year for at least 1,000 undergraduate and 500 graduate 
     students that are studying engineering, geosciences, and 
     other energy-related fields.
       (2) Eligibility.--To be eligible to obtain a scholarship 
     under this subsection, a student shall be enrolled in a 
     program offered by an institution of higher education that 
     provides training and education for a clean energy workforce 
     described in subsection (a)(1).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

                   DIVISION C--GLOBAL RISK MANAGEMENT

     SEC. 501. SENSE OF CONGRESS ON GEOPOLITICAL CONSEQUENCES OF 
                   OIL DEPENDENCE.

       (a) Findings.--Congress finds that--
       (1) it is imperative to the national security, economic 
     prosperity, and environmental integrity of the United States 
     to have reliable, diverse, and affordable energy supplies;
       (2)(A) the United States faces a multifaceted and growing 
     threat to energy security;
       (B) State-owned energy companies, especially those of 
     adversarial governments, are using the energy supplies of the 
     companies as leverage to promote foreign policies of states; 
     and
       (C) politically motivated domestic groups, pirates, and 
     terrorists further present an increasing risk to critical 
     energy infrastructure and key corridors of international 
     energy supplies;
       (3) efforts to develop a long-term energy policy for the 
     United States is partially hindered by the lack of consistent 
     and accurate information on world energy reserves;
       (4) the United States should develop short-term policies 
     and strategies that--
       (A) protect key energy infrastructure;
       (B) secure critical geographic transit routes; and
       (C) mitigate political instability from energy suppliers;
       (5) over the long-term, the United States should focus 
     national security organizations on obtaining better 
     information on world reserves of energy and strengthening 
     relationships with certain key nations;
       (6) addressing the challenge of energy security now and in 
     the future will require the United States to use all 
     instruments of national power, including the military, 
     diplomatic, and intelligence services; and
       (7) the United States should make it a priority to engage 
     key developing nations such as China and India on fossil fuel 
     use in order to address global energy security and climate 
     change challenges.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) sufficient resources should be provided to United 
     States national security agencies to enable the agencies to 
     protect tankers and other vessels, critical infrastructure, 
     and supply routes;
       (2) the President should work with Congress--
       (A) to coordinate efforts between the Department of State 
     and the Department of Justice to bolster programs to train 
     national police and domestic security forces tasked with 
     defending energy infrastructure in key countries;
       (B) to promote initiatives by the Department of State and 
     the Department of Defense--
       (i) to provide allied nations with the technical expertise 
     to minimize the consequences of an infrastructure accident or 
     attack;
       (ii) to engage the North Atlantic Treaty Organization 
     (NATO) and other allies in negotiations on creating a 
     security architecture to protect the strategic terrain; and
       (iii) to work with the Coast Guard to strengthen the 
     capacity of local, national, and regional maritime security 
     forces;
       (C) to mobilize the Department of Defense and the 
     Department of Energy, in conjunction with the intelligence 
     community, to conduct detailed scenario planning exercises on 
     the repercussions of attacks on critical energy 
     infrastructure; and
       (D)(i) to authorize the Department of State to provide the 
     President with diplomatic options, including the imposition 
     of sanctions, for addressing states that use energy as a 
     political weapon; and
       (ii) to improve the capacity of the Department of State to 
     provide diplomatic support to resolve conflicts that impact 
     the energy security of the United States; and
       (3) the intelligence community should be given an integral 
     role in bolstering United States national energy security 
     interests by--
       (A) completing a comprehensive national intelligence 
     estimate on energy security that assesses the most vulnerable 
     aspects of critical energy infrastructure and the future 
     stability of major energy suppliers;
       (B) improving warning time to prevent attacks on key energy 
     infrastructure;
       (C) expanding the collection of intelligence on national 
     energy companies and the energy reserves of those companies; 
     and
       (D) bolstering collection and analysis of potential 
     strategic conflicts that could disrupt key energy supplies.

     SEC. 502. STUDY OF FOREIGN FUEL SUBSIDIES.

       (a) In General.--The Secretary of Energy, in consultation 
     with the Secretary of State and the Secretary of Commerce, 
     shall conduct a study of foreign fuel subsidies, including--
       (1) the impact of the subsidies on global energy supplies, 
     global energy demand, and global economic impacts; and
       (2) recommendations on actions that should be taken to 
     reduce the impact of the subsidies.
       (b) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of Congress a report that describes 
     the results of the study conducted under this section, 
     including any recommendations.
                                 ______