[Congressional Record Volume 155, Number 78 (Wednesday, May 20, 2009)]
[Senate]
[Pages S5704-S5715]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself and Ms. Cantwell):
  S. 1090. A bill to amend the Internal Revenue Code of 1986 to provide 
tax credit parity for electricity produced from renewable resources; to 
the Committee on Finance.
  Mr. WYDEN. Mr. President, I rise to discuss the subject of U.S. 
energy policy and to introduce a series of bills to address this issue, 
S. 1090-S. 1098.
  Americans consume too much oil, and they pay too high a price for it. 
National security pays a price. The environment pays a price and the 
economy clearly pays a price. It's clear that Americans can no longer 
afford the energy policy of the status quo.
  Last summer, when crude oil prices approached $150 dollars a barrel, 
Americans were sending roughly $1.7 billion dollars a day to foreign 
countries to pay to cover their addiction to oil. That's $1.7 billion a 
day that was not invested here at home. Rather it went into the pockets 
of oil producers in foreign countries--and often to countries that 
oppose America's interests and undermine American security. A third of 
the oil Americans use comes from the OPEC oil cartel--a cartel that 
includes governments who are either openly hostile to the United States 
or who provide a haven and support to those who are. American 
dependence on their oil is a recipe for disaster.
  Oil prices have retreated, but America's addiction to oil has not let 
up. The Nation's transportation system is almost entirely fueled by it. 
When the price of oil goes up, transportation costs go up, which means 
shipping costs and the cost of everything that has to be shipped goes 
up right along with it.
  On top of all the other faults oil brings with it, burning fossil 
fuels is bad for our health and the health of our planet. Burning 
fossil fuels produces 86 percent of the man-made greenhouse gases 
released into the environment every year in the U.S. Motor fuels have 
become cleaner over the years, but they still heat up the environment 
with greenhouse gases, just like burning coal at electric generation 
plants. Continuing to rely on energy sources that do harm to the air, 
land and water is a failed policy and bad for America's future.
  Spelling out the problem, however, is the easy part. There is no 
silver bullet when it comes to remaking the way the entire nation 
consumes energy and encouraging the development of viable alternatives. 
No one person, organization or piece of legislation can do it alone.
  If America is going to get on the path to real energy independence, 
Americans not only have to build that path, every American is going to 
have to commit to changing course in the way they use energy. While I 
believe that Government cannot simply legislate such transformative 
change, it is my view that government can provide the incentives and 
framework needed to empower Americans to rise to the challenge.
  While I cannot tell you where the next advancement in green energy 
will

[[Page S5705]]

come from, I know that given the right tools and incentives there is no 
limit to what American ingenuity can achieve. This is why today I am 
offering a series of proposals to speed up our progress toward a 
cleaner energy future. My proposals address the spectrum of solutions 
needed to get there. They start with harnessing the intellectual power 
of our colleges and universities to invent new energy technologies. 
They create new incentives for businesses to turn those technologies 
into new energy products. They give consumers incentives to buy and 
install those new energy technologies in their homes and businesses.
  If America is going to cut back in its use of oil, then it needs to 
take a hard look at the single largest user of oil, the transportation 
sector. Today, I am proposing a three-pronged program to dramatically 
reduce the amount of oil Americans use every day to get to work, do 
their errands, and transport American products to market.
  First, I propose to dramatically revise the Renewable Fuel Standard 
that now requires gasoline and diesel fuel providers to blend larger 
and larger amounts of ethanol and other biofuels into motor fuel. I 
strongly support the continued development of biofuels, especially 
those that do not require the use of food grains like corn and oils 
used to make them. But as we have seen in recent years, you cannot 
divert large amounts of food grains and oils without impacting the 
supply and price of those commodities. Last year, nearly a third of the 
U.S. corn crop was used for ethanol production, leading to more 
expensive food for families at a time when they can least afford it. 
That does not make sense to me.
  The current standard also does not do enough to genuinely reduce the 
amount of oil being consumed. In part this is because fuels like 
ethanol simply do not contain as much energy per gallon as the gasoline 
it is intended to replace. The existing standard is aimed at replacing 
less than 15 percent of U.S. gasoline and diesel fuel with renewable 
fuels. I think we can do better, which is why my proposal aims to 
replace a third of those fuels with new low-carbon fuels. Right now a 
third of the United States gasoline is imported from OPEC countries. 
Let us aim to get this country off OPEC oil once and for all.
  I want to make it clear that I am not proposing these changes because 
I am opposed to using renewable fuels. I have already introduced 
legislation--S. 536--to allow biomass from Federal lands to be used in 
the production of biofuels. Under the existing Renewable Fuel Standard, 
biomass from Federal lands is prohibited from being used as a renewable 
fuel. This makes no sense from either an energy perspective or an 
environmental perspective. Allowing for the use of fuel derived from 
biomass from Federal lands will reduce the threat of catastrophic wild 
fires, help make those forests healthier, and open up a variety of 
economic opportunities for hard hit rural communities. It is also a 
step towards a sound national energy policy.
  However, if the U.S. is going to have a Renewable Fuel Standard for 
motor fuels, then it really ought to be a standard open to all 
renewable fuels, not just a chosen few. This is why my legislation 
would allow a range of energy sources to qualify as motor ``fuels'' 
including electricity for plug-in cars, methane to fuel compressed 
natural gas vehicles, and hydrogen for fuel cells. Initially, these 
low-carbon fuels could come from conventional sources, such as 
electricity from the electric grid, but eventually they would need to 
come from renewable energy sources.
  Singling out ethanol as the only additive approved for motor fuel 
only creates a market for ethanol, which in turn discourages research 
and investment in other promising fuels. Creating a technology neutral 
``low-carbon'' standard to replace traditional fossil fuels with 
alternative lower-carbon domestic fuels opens the door for a whole host 
of advancements and innovations yet unknown.
  In addition to supplying new, cleaner, renewable transportation 
fuels, I will also be introducing legislation to authorize the U.S. 
Department of Transportation to designate ``Energy Smart Transportation 
Corridors'' so that these fuels will be readily available for 
consumers. By working with trucking companies, fuel providers, and 
State and local officials, the Transportation Department would 
establish which alternative fuels would be available and where they 
could be purchased. They would standardize other features such as 
weight limit standards geared towards reducing fossil fuel use and the 
release of greenhouse gases. The corridors would also include 
designation of other methods of freight and passenger transportation, 
such as rail or mass transit--to help reduce transportation fuel use.
  Beyond empowering Americans to make more energy efficient choices, my 
legislation would make sure that energy efficient choices are within 
the reach of more Americans. Because I believe that energy efficient 
vehicles should not just be a luxury item for affluent Americans, I 
will be reintroducing legislation to provide tax credits to Americans 
who purchase fuel efficient vehicles. Vehicles getting at least 10 
percent more than national average fuel efficiency would get a $900 tax 
credit. The credit would increase up to $2,500 as vehicle fuel 
efficiency increased. The bill also provides a tax credit for heavy 
truck owners to install fuel saving equipment. And it would increase 
both the gas guzzler tax and the civil penalty for vehicle 
manufacturers who miss their legally-required Corporate Average Fuel 
Economy, CAFE, requirements. The technology-neutral tax credit is 
designed to get more fuel-efficient vehicles on the road by making 
fuel-efficient vehicles an affordable choice for more Americans.
  But reducing oil use by the transportation sector alone is not 
enough. Some forty percent of energy use in the U.S. is consumed in 
buildings. So I am introducing legislation to empower American 
families--as well as small and mid-sized businesses--to save energy and 
install clean energy equipment. The ``Re-Energize America Loan 
Program'' will create a $10 billion revolving loan program to allow 
home and property owners and small and mid-sized businesses, schools, 
hospitals and others to make clean energy investments. This zero-
interest loan program would be administered at the State level, not by 
bureaucrats in Washington, DC, so it will be tailored to regional 
needs. It would be financed through the transfer of Federal energy 
royalties paid on the production of coal, gas and oil, and renewable 
energy from Federal land. It would empower Americans and businesses to 
help themselves and help their country start laying the groundwork for 
an entirely different energy future.

  States like Oregon have enormous potential for development of 
renewable energy--solar, wind, geothermal, biomass, wave and tidal. The 
challenge is to find new ways to harness these energies. Renewable 
energy is also not just about fuel that goes into cars or electricity 
for homes or buildings. Renewable energy can also be used to heat homes 
and buildings, and power factories and businesses. So I am introducing 
legislation to provide tax credits for the production of energy from 
renewable sources, such as steam from geothermal wells, or biogas from 
feedlots or dairy farms that is sold directly to commercial and 
industrial customers. A separate credit would be available if this 
renewable energy is used right on site to heat a building or provide 
energy for the dairy.
  The goal of this bill is to foster the development of new renewable 
energy technologies while expanding the market for renewable energy 
beyond the wind farms and electric generation plants already in place. 
The amount of the tax credit will no longer be tied to the way energy 
is produced but rather the amount of energy produced. This will help 
new energy technologies get in the game, and reward solutions that 
create the most energy. I am also introducing legislation to end the 
current tax penalty on biomass, hydroelectric, wave and tidal energies 
and other forms of renewable energy that are only eligible for half of 
the available Federal production tax credit. America needs all of these 
resources if it is going to move into a new energy future. My goal is 
to create a level playing field and give all of these technologies the 
full tax benefit in order to stimulate investment and get more 
renewable energy projects built.
  One big advantage of renewable energy is that some form of it can be 
found on every corner, and in every

[[Page S5706]]

corner of the country. Whether it's a solar panel on a home or store--
or geothermal power plant--there is renewable energy potential 
virtually everywhere. One set of technologies that can make renewable 
energy even more available are energy storage technologies. These are 
solutions that can store solar energy during the day for use at night, 
or store wind energy when the wind blows, to be used when it does not.
  Simply put, not enough attention has been paid to the use of energy 
storage technologies, which can also address daily and seasonal peaks 
in energy demand such as all of those air conditioners that Americans 
will soon be putting to good use during the summer's hottest days. 
Federal funding for energy storage technologies has been virtually 
nonexistent. So I am introducing legislation to create an investment 
tax credit that will help pay for the installation of energy storage 
equipment both by energy companies who connect it to the electric 
transmission and distribution system and for on-site use in buildings, 
homes, and factories. Any number of different types of storage 
technology can qualify--batteries, flywheels, pumped water storage, to 
name a few. The credit would be based on the energy stored, not on the 
technology used.
  The goal throughout the bills I am introducing today is not to pick 
winners and losers. The goal is to encourage innovation and 
installation.
  Last but not least, America not only needs new solutions to our 
energy problems. It needs a skilled workforce to make them a reality. 
So, I am also proposing an ``Energy Grant'' Higher Education program to 
provide $300 million a year to America's colleges and universities to 
work on regional energy problems. This program is modeled on the highly 
successful SeaGrant research and education program that has been run by 
the U.S. Department of Commerce for more than 30 years and the SunGrant 
program established to research biofuels. The EnergyGrant program would 
fund groups of colleges and universities to do research and develop 
education programs aimed at unique opportunities and challenges in each 
region of the country. Why rely solely on the Federal Government 
research programs to come up with solutions for regional energy issues 
when labs and research departments at colleges and universities around 
the country can contribute to the effort?
  The Senate Energy Committee has already adopted legislation I have 
proposed to create a $100 million a year, community college-based 
training program for skilled technicians to build, install and maintain 
the new American energy infrastructure of wind turbines, geothermal 
energy plants, fuel cells, and other 21st Century technologies. Without 
these skilled workers, this future will not happen and without 
effective training programs there won't be skilled workers to fill the 
jobs. I am also introducing this proposal as a stand-alone bill to help 
ensure that job training gets the attention that it needs. What good 
will ``green jobs'' do for Americans if Americans don't have the skills 
that these jobs will demand?
  My goal in formulating this agenda has been to mobilize Americans and 
American resources to achieve authentic energy independence and a new 
energy future. To really accomplish this goal, I believe we must employ 
every tool at our disposal. But in the end the success or failure of 
any effort to transform the way Americans use energy will ultimately 
rest with the American people. There is no question that this will not 
be easy, but I have faith that the energy challenges facing the nation 
today are no match for the collective ingenuity, talent and energy of 
the American people. Let us put those resources to work.
  Mr. President, I ask unanimous consent that the text of the bills be 
printed in the Record.
  There being no objection, the text of the bills were ordered to be 
printed in the Record, as follows:

                                S. 1090

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Renewable Energy Parity and 
     Investment Remedy Act'' or ``REPAIR Act''.

     SEC. 2. TAX CREDIT PARITY FOR ELECTRICITY PRODUCED FROM 
                   RENEWABLE RESOURCES.

       Subparagraph (A) of section 45(b)(4) of the Internal 
     Revenue Code of 1986 is amended by inserting ``and before 
     2010'' after ``any calendar year after 2003''.

                                S. 1091

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Storage Technology of 
     Renewable and Green Energy Act of 2009'' or the ``STORAGE Act 
     of 2009''.

     SEC. 2. ENERGY INVESTMENT CREDIT FOR ENERGY STORAGE PROPERTY 
                   CONNECTED TO THE GRID.

       (a) 20 Percent Credit Allowed.--Subparagraph (A) of section 
     48(a)(2) of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of subclause (IV) of 
     clause (i),
       (2) by striking ``clause (i)'' in clause (ii) and inserting 
     ``clause (i) or (ii)'',
       (3) by redesignating clause (ii) as clause (iii), and
       (4) by inserting after clause (i) the following new clause:
       ``(ii) 20 percent in the case of qualified energy storage 
     property, and''.
       (b) Qualified Energy Storage Property.--Subsection (c) of 
     section 48 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new paragraph:
       ``(5) Qualified energy storage property.--
       ``(A) In general.--The term `qualified energy storage 
     property' means property--
       ``(i) which is directly connected to the electrical grid, 
     and
       ``(ii) which is designed to receive electrical energy, to 
     store such energy, and to convert such energy to electricity 
     and deliver such electricity for sale.

     Such term may include hydroelectric pumped storage and 
     compressed air energy storage, regenerative fuel cells, 
     batteries, superconducting magnetic energy storage, 
     flywheels, thermal, and hydrogen storage, or combination 
     thereof.
       ``(B) Minimum capacity.--The term `qualified energy storage 
     property' shall not include any property unless such property 
     in aggregate--
       ``(i) has the ability to store at least 2 megawatt hours of 
     energy, and
       ``(ii) has the ability to have an output of 500 kilowatts 
     of electricity for a period of 4 hours.
       ``(C) Electrical grid.--The term `electrical grid' means 
     the system of generators, transmission lines, and 
     distribution facilities which--
       ``(i) are under the jurisdiction of the Federal Energy 
     Regulatory Commission or State public utility commissions, or
       ``(ii) are owned by--

       ``(I) a State or any political subdivision of a State,
       ``(II) an electric cooperative that receives financing 
     under the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
     seq.) or that sells less than 4,000,000 megawatt hours of 
     electricity per year, or
       ``(III) any agency, authority, or instrumentality of any 
     one or more of the entities described in subclause (I) or 
     (II), or any corporation which is wholly owned, directly or 
     indirectly, by any one or more of such entities.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, under rules similar to the rules of section 48(m) 
     of the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).

     SEC. 3. ENERGY STORAGE PROPERTY CONNECTED TO THE GRID 
                   ELIGIBLE FOR NEW CLEAN RENEWABLE ENERGY BONDS.

       (a) In General.--Paragraph (1) of section 54C(d) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) Qualified renewable energy facility.--The term 
     `qualified renewable energy facility' means a facility which 
     is--
       ``(A)(i) a qualified facility (as determined under section 
     45(d) without regard to paragraphs (8) and (10) thereof and 
     to any placed in service date), or
       ``(ii) a qualified energy storage property (as defined in 
     section 48(c)(5)), and
       ``(B) owned by a public power provider, a governmental 
     body, or a cooperative electric company.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 4. ENERGY INVESTMENT CREDIT FOR ONSITE ENERGY STORAGE.

       (a) Credit Allowed.--Clause (i) of section 48(a)(2)(A) of 
     the Internal Revenue Code of 1986, as amended by this Act, is 
     amended--
       (1) by striking ``and'' at the end of subclause (III),
       (2) by inserting ``and'' at the end of subclause (IV), and
       (3) by adding at the end the following new subclause:

       ``(V) qualified onsite energy storage property,''.

       (b) Qualified Onsite Energy Storage Property.--Subsection 
     (c) of section 48 of the Internal Revenue Code of 1986, as 
     amended by this Act, is amended by adding at the end the 
     following new paragraph:
       ``(6) Qualified onsite energy storage property.--

[[Page S5707]]

       ``(A) In general.--The term `qualified onsite energy 
     storage property' means property which--
       ``(i) provides supplemental energy to reduce peak energy 
     requirements primarily on the same site where the storage is 
     located, or
       ``(ii) is designed and used primarily to receive and store 
     intermittent renewable energy generated onsite and to deliver 
     such energy primarily for onsite consumption.

     Such term may include property used to charge plug-in and 
     hybrid electric vehicles if such vehicles are equipped with 
     smart grid services which control time-of-day charging and 
     discharging of such vehicles. Such term shall not include any 
     property for which any other credit is allowed under this 
     chapter.
       ``(B) Minimum capacity.--The term `qualified onsite energy 
     storage property' shall not include any property unless such 
     property in aggregate--
       ``(i) has the ability to store the energy equivalent of at 
     least 20 kilowatt hours of energy, and
       ``(ii) has the ability to have an output of the energy 
     equivalent of 5 kilowatts of electricity for a period of 4 
     hours.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, under rules similar to the rules of section 48(m) 
     of the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).

     SEC. 5. CREDIT FOR RESIDENTIAL ENERGY STORAGE EQUIPMENT.

       (a) Credit Allowed.--Subsection (a) of section 25C of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of paragraph (1),
       (2) by redesignating paragraph (2) as paragraph (3), and
       (3) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) 30 percent of the amount paid or incurred by the 
     taxpayer for qualified residential energy storage equipment 
     installed during such taxable year, and''.
       (b) Qualified Residential Energy Storage Equipment.--
       (1) In general.--Section 25C of the Internal Revenue Code 
     of 1986 is amended--
       (A) by redesignating subsections (e), (f), and (g) as 
     subsections (f), (g), and (h), respectively, and
       (B) by inserting after subsection (d) the following new 
     subsection:
       ``(d) Qualified Residential Energy Storage Equipment.--For 
     purposes of this section, the term `qualified residential 
     energy storage equipment' means property--
       ``(1) which is installed in or on a dwelling unit located 
     in the United States and owned and used by the taxpayer as 
     the taxpayer's principal residence (within the meaning of 
     section 121), or on property owned by the taxpayer on which 
     such a dwelling unit is located, and
       ``(2) which--
       ``(A) provides supplemental energy to reduce peak energy 
     requirements primarily on the same site where the storage is 
     located, or
       ``(B) is designed and used primarily to receive and store 
     intermittent renewable energy generated onsite and to deliver 
     such energy primarily for onsite consumption.

     Such term may include property used to charge plug-in and 
     hybrid electric vehicles if such vehicles are equipped with 
     smart grid services which control time-of-day charging and 
     discharging of such vehicles. Such term shall not include any 
     property for which any other credit is allowed under this 
     chapter.''.
       (2) Conforming amendment.--Section 1016(a)(33) of such Code 
     is amended by striking ``section 25C(f)'' and inserting 
     ``section 25C(g)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

                                S. 1092

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Reenergize America Loan 
     Program Act of 2009''.

     SEC. 2. REENERGIZE AMERICA LOAN PROGRAM.

       (a) Definitions.--In this section:
       (1) Fund.--The term ``Fund'' means the Reenergize America 
     Loan Program Fund established by subsection (g).
       (2) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (3) Program.--The term ``Program'' means the Green America 
     Loan Program established by subsection (b).
       (4) Qualified person.--The term ``qualified person'' means 
     an individual or entity that is determined to be capable of 
     meeting all terms and conditions of a loan provided under 
     this section based on the criteria and procedures approved by 
     the Secretary in a plan submitted under subsection (d).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (6) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico;
       (D) any other territory or possession of the United States; 
     and
       (E) an Indian tribe.
       (b) Establishment.--There is established within the 
     Department of Energy a revolving loan program to be known as 
     the ``Reenergize America Loan Program''.
       (c) Allocations to States.--
       (1) In general.--In carrying out the Program, the Secretary 
     shall allocate funds to States for use in providing zero-
     interest loans to qualified persons to carry out residential, 
     commercial, industrial, and transportation energy efficiency 
     and renewable generation projects contained in State energy 
     conservation plans submitted and approved under sections 362 
     and 363 of the Energy Policy and Conservation Act (42 U.S.C. 
     6322, 6323), respectively.
       (2) Administrative expenses.--A State that receives an 
     allocation of funds under this subsection may impose on each 
     qualified person that receives a loan from the allocated 
     funds of the State administrative fees to cover the costs 
     incurred by the State in administering the loan.
       (3) Repayment and return of principal.--Return of principal 
     from loans provided by a State may be retained by the State 
     for the purpose of making additional loans pursuant to--
       (A) a plan approved by the Secretary under subsection (d); 
     and
       (B) such terms and conditions as the Secretary considers 
     appropriate to ensure the financial integrity of the Program.
       (d) Application.--A State that seeks to receive an 
     allocation under this section shall--
       (1) submit to the Secretary for review and approval a 5-
     year plan for the administration and distribution by the 
     State of funds from the allocation, including a description 
     of criteria that the State will use to determine the 
     qualifications of potential borrowers for loans made from the 
     allocated funds;
       (2) agree to submit to annual audits with respect to any 
     allocated funds received and distributed by the State; and
       (3) reapply for a subsequent allocation at the end of the 
     5-year period covered by the plan.
       (e) Allocation.--In approving plans submitted by the States 
     under subsection (d) and allocating funds among States under 
     this section, the Secretary shall consider--
       (1) the likely energy savings and renewable energy 
     potential of the plans,;
       (2) regional energy needs; and
       (3) the equitable distribution of funds among regions of 
     the United States.
       (f) Maximum Amount; Term.--A loan provided by a State using 
     funds allocated under this section shall be--
       (1) in an amount not to exceed $5,000,000; and
       (2) for a term of not to exceed 4 years.
       (g) Reenergize America Loan Program Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a revolving fund, to be known as the 
     ``Reenergize America Loan Program Fund'', consisting of such 
     amounts as are transferred to the Fund under paragraph (2).
       (2) Transfers to fund.--From any Federal royalties, rents, 
     and bonuses derived from Federal onshore and offshore oil, 
     gas, coal, or alternative energy leases issued under the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) or 
     the Mineral Leasing Act (30 U.S.C. 181 et seq.) that are 
     deposited in the Treasury, and after distribution of any 
     funds described in paragraph (3), there shall be transferred 
     to the Fund $1,000,000,000 for each of fiscal years 2010 
     through 2020.
       (3) Prior distributions.--The distributions referred to in 
     paragraph (2) are those required by law--
       (A) to States and to the Reclamation Fund under the Mineral 
     Leasing Act (30 U.S.C. 191(a)); and
       (B) to other funds receiving amounts from Federal oil and 
     gas leasing programs, including--
       (i) any recipients pursuant to section 8(g) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1337(g));
       (ii) the Land and Water Conservation Fund, pursuant to 
     section 2(c) of the Land and Water Conservation Fund Act of 
     1965 (16 U.S.C. 460l-5(c));
       (iii) the Historic Preservation Fund, pursuant to section 
     108 of the National Historic Preservation Act (16 U.S.C. 
     470h); and
       (iv) the coastal impact assistance program established 
     under section 31 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1356a).
       (4) Expenditures from fund.--
       (A) In general.--Subject to subparagraph (B), on request by 
     the Secretary, the Secretary of the Treasury shall transfer 
     from the Fund to the Secretary such amounts as the Secretary 
     determines to be necessary to provide allocations to States 
     under subsection (c).
       (B) Administrative expenses.--An amount not exceeding 5 
     percent of the amounts in the Fund shall be available for 
     each fiscal year to pay the administrative expenses necessary 
     to carry out this subsection.
       (5) Transfers of amounts.--
       (A) In general.--The amounts required to be transferred to 
     the Fund under this subsection shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       (B) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
       (h) Funding.--Notwithstanding any other provision of law, 
     for each of fiscal years 2010 through 2020, the Secretary 
     shall use to

[[Page S5708]]

     carry out the Program such amounts as are available in the 
     Fund.

                                S. 1093

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This Act may be cited as the ``Oil 
     Independence, Limiting Subsidies, and Accelerating Vehicle 
     Efficiency Act'' or the ``OILSAVE Act''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act 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.

     SEC. 2. TAX CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to other credits) is amended by inserting 
     after section 30D the following new section:

     ``SEC. 30E. FUEL-EFFICIENT MOTOR VEHICLE CREDIT.

       ``(a) Allowance of Credit.--
       ``(1) In general.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to the amount determined under paragraph (2) 
     with respect to any new qualified fuel-efficient motor 
     vehicle placed in service by the taxpayer during the taxable 
     year.
       ``(2) Credit amount.--With respect to each new qualified 
     fuel-efficient motor vehicle, the amount determined under 
     this paragraph shall be equal to--
       ``(A) in the case of any vehicle manufactured in model year 
     2011, the applicable amount determined in accordance with the 
     table contained in paragraph (3), and
       ``(B) in the case of any passenger automobile or non-
     passenger automobile manufactured in a model year after 2011, 
     the lesser of--
       ``(i) the sum of--

       ``(I) $900, plus
       ``(II) $100 for each whole mile per gallon in excess of 110 
     percent of the respective industry-wide average fuel economy 
     standard for such model year for all passenger automobiles 
     and all non-passenger automobiles, or

       ``(ii) $2,500.
       ``(3) Applicable amount.--For purposes of paragraph (2)(A), 
     the applicable amount shall be determined as follows:
       ``(A) In the case of a passenger automobile which achieves:


------------------------------------------------------------------------
                                                          The applicable
                 ``The fuel economy of:                     amount is:
------------------------------------------------------------------------
At least 33.2 but less than 34.2........................           $900.
At least 34.2 but less than 35.2........................         $1,000.
At least 35.2 but less than 36.2........................         $1,100.
At least 36.2 but less than 37.2........................         $1,200.
At least 37.2 but less than 38.2........................         $1,300.
At least 38.2 but less than 39.2........................         $1,400.
At least 39.2 but less than 40.2........................         $1,500.
At least 40.2 but less than 41.2........................         $1,600.
At least 41.2 but less than 42.2........................         $1,700.
At least 42.2 but less than 43.2........................         $1,800.
At least 43.2 but less than 44.2........................         $1,900.
At least 44.2 but less than 45.2........................         $2,000.
At least 45.2 but less than 46.2........................         $2,100.
At least 46.2 but less than 47.2........................         $2,200.
At least 47.2 but less than 48.2........................         $2,300.
At least 48.2 but less than 49.2........................         $2,400.
At least 49.2...........................................         $2,500.
------------------------------------------------------------------------

       ``(B) In the case of a non-passenger automobile which 
     achieves:


------------------------------------------------------------------------
                                                          The applicable
                 ``The fuel economy of:                     amount is:
------------------------------------------------------------------------
At least 26.5 but less than 27.5........................           $900.
At least 27.5 but less than 28.5........................         $1,000.
At least 28.5 but less than 29.5........................         $1,100.
At least 29.5 but less than 30.5........................         $1,200.
At least 30.5 but less than 31.5........................         $1,300.
At least 31.5 but less than 32.5........................         $1,400.
At least 32.5 but less than 33.5........................         $1,500.
At least 33.5 but less than 34.5........................         $1,600.
At least 34.5 but less than 35.5........................         $1,700.
At least 35.5 but less than 36.5........................         $1,800.
At least 36.5 but less than 37.5........................         $1,900.
At least 37.5 but less than 38.5........................         $2,000.
At least 38.5 but less than 39.5........................         $2,100.
At least 39.5 but less than 40.5........................         $2,200.
At least 40.5 but less than 41.5........................         $2,300.
At least 41.5 but less than 42.5........................         $2,400.
At least 42.5...........................................         $2,500.
------------------------------------------------------------------------

       ``(b) New Qualified Fuel-Efficient Motor Vehicle.--For 
     purposes of this section, the term `new qualified fuel-
     efficient motor vehicle' means a passenger automobile or non-
     passenger automobile--
       ``(1) which is treated as a motor vehicle for purposes of 
     title II of the Clean Air Act,
       ``(2) which--
       ``(A) in the case of a passenger automobile, achieves a 
     fuel economy of not less than 110 percent of the industry-
     wide average fuel economy standard for the model year for all 
     passenger automobiles, and
       ``(B) in the case of a non-passenger automobile, achieves a 
     fuel economy of not less than 110 percent of the industry-
     wide average fuel economy standard for the model year for all 
     non-passenger automobiles,
       ``(3) which has a gross vehicle weight rating of less than 
     14,000 pounds,
       ``(4) the original use of which commences with the 
     taxpayer,
       ``(5) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(6) which is made by a manufacturer during the period 
     beginning with model year 2011 and ending with model year 
     2020.
       ``(c) Application With Other Credits.--
       ``(1) Business credit treated as part of general business 
     credit.--So much of the credit which would be allowed under 
     subsection (a) for any taxable year (determined without 
     regard to this subsection) that is attributable to property 
     of a character subject to an allowance for depreciation shall 
     be treated as a credit listed in section 38(b) for such 
     taxable year (and not allowed under subsection (a)).
       ``(2) Personal credit.--
       ``(A) In general.--For purposes of this title, the credit 
     allowed under subsection (a) for any taxable year (determined 
     after application of paragraph (1)) shall be treated as a 
     credit allowable under subpart A for such taxable year.
       ``(B) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     (determined after application of paragraph (1)) shall not 
     exceed the excess of--
       ``(i) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(ii) the sum of the credits allowable under subpart A 
     (other than this section and sections 23, 25D, 30, and 30D) 
     and section 27 for the taxable year.
       ``(d) Other Definitions.--For purposes of this section--
       ``(1) Manufacturer.--The term `manufacturer' has the 
     meaning given such term in regulations prescribed by the 
     Administrator of the Environmental Protection Agency for 
     purposes of the administration of title II of the Clean Air 
     Act (42 U.S.C. 7521 et seq.).
       ``(2) Model year.--The term `model year' has the meaning 
     given such term under section 32901(a) of such title 49.
       ``(3) Motor vehicle.--The term `motor vehicle' means any 
     vehicle which is manufactured primarily for use on public 
     streets, roads, and highways (not including a vehicle 
     operated exclusively on a rail or rails) and which has at 
     least 4 wheels.
       ``(4) Fuel economy; average fuel economy standard.--The 
     terms `fuel economy' and `average fuel economy standard' have 
     the meanings given such terms under section 32901 of such 
     title 49.
       ``(e) Special Rules.--
       ``(1) Basis reduction.--For purposes of this subtitle, the 
     basis of any property for which a credit is allowable under 
     subsection (a) shall be reduced by the amount of such credit 
     so allowed.
       ``(2) No double benefit.--The amount of any deduction or 
     other credit allowable under this chapter for a new qualified 
     fuel-efficient motor vehicle shall be reduced by the amount 
     of credit allowed under subsection (a) for such vehicle.
       ``(3) Credit may be transferred.--
       ``(A) In general.--A taxpayer may, in connection with the 
     purchase of a new qualified fuel-efficient motor vehicle, 
     transfer any credit allowable under subsection (a) to any 
     person who is in the trade or business of selling new 
     qualified fuel-efficient motor vehicles, but only if such 
     person clearly discloses to such taxpayer, through the use of 
     a window sticker attached to the new qualified fuel-efficient 
     vehicle--
       ``(i) the amount of any credit allowable under subsection 
     (a) with respect to such vehicle (determined without regard 
     to subsection (c)), and
       ``(ii) a notification that the taxpayer will not be 
     eligible for any credit under section 30, 30B, or 30D with 
     respect to such vehicle unless the taxpayer elects not to 
     have this section apply with respect to such vehicle.
       ``(B) Consent required for revocation.--Any transfer under 
     subparagraph (A) may be revoked only with the consent of the 
     Secretary.
       ``(C) Regulations.--The Secretary may prescribe such 
     regulations as necessary to ensure that any credit described 
     in subparagraph (A) is claimed once and not retransferred by 
     a transferee.
       ``(4) Property used outside united states not qualified.--
     No credit shall be allowable under subsection (a) with 
     respect to any property referred to in section 50(b)(1).
       ``(5) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit.
       ``(6) Election not to take credit.--No credit shall be 
     allowed under subsection (a) for any vehicle if the taxpayer 
     elects to not have this section apply to such vehicle.
       ``(7) Interaction with air quality and motor vehicle safety 
     standards.--A motor vehicle shall not be considered eligible 
     for a credit under this section unless such vehicle is in 
     compliance with--
       ``(A) the applicable provisions of the Clean Air Act for 
     the applicable make and model year of the vehicle (or 
     applicable air quality provisions of State law in the case of 
     a State which has adopted such provision under a waiver under 
     section 209(b) of the Clean Air Act), and
       ``(B) the motor vehicle safety provisions of sections 30101 
     through 30169 of title 49, United States Code.
       ``(f) Termination.--This section shall not apply to 
     property placed in service after December 31, 2020.''.
       (b) Credit Allowed Against Alternative Minimum Tax.--

[[Page S5709]]

       (1) Business credit.--Section 38(c)(4)(B) is amended by 
     redesignating clauses (i) through (viii) as clauses (ii) 
     through (ix), respectively, and by inserting before clause 
     (ii) (as so redesignated) the following new clause:
       ``(i) the credit determined under section 30E,''.
       (2) Personal credit.--
       (A) Section 24(b)(3)(B) is amended by striking ``and 30D'' 
     and inserting ``30D, and 30E''.
       (B) Section 25(e)(1)(C)(ii) is amended by inserting 
     ``30E,'' after ``30D,''.
       (C) Section 25B(g)(2) is amended by striking ``and 30D'' 
     and inserting ``30D, and 30E''.
       (D) Section 26(a)(1) is amended by striking `` and 30D'' 
     and inserting ``30D, and 30E''.
       (E) Section 904(i) is amended by striking ``and 30D'' and 
     inserting ``30D, and 30E''.
       (c) Conforming Amendments.--
       (1) Section 38(a) is amended by striking ``plus'' at the 
     end of paragraph (34), by striking the period at the end of 
     paragraph (35) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(36) the portion of the new qualified fuel-efficient 
     motor vehicle credit to which section 30E(c)(1) applies.''.
       (2) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (36), by striking the period at the end of 
     paragraph (37) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(38) to the extent provided in section 30E(e)(1).''.
       (3) Section 6501(m) is amended by inserting ``30E(e)(6),'' 
     after ``30D(e)(4),''.
       (4) The table of section for subpart C of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 30D the following new item:

``Sec. 30E. Fuel-efficient motor vehicle credit.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 3. CREDIT FOR FUEL SAVINGS COMPONENTS FOR CERTAIN 
                   VEHICLES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45R. CREDIT FOR FUEL SAVINGS COMPONENTS FOR CERTAIN 
                   VEHICLES.

       ``(a) General Rule.--For purposes of section 38, the fuel 
     savings tax credit determined under this section for the 
     taxable year is an amount equal to the applicable percentage 
     of the amount paid or incurred for 1 or more qualifying fuel 
     savings components placed in service on a qualifying vehicle 
     by the taxpayer during the taxable year.
       ``(b) Applicable Percentage.--For purposes of subsection 
     (a), the applicable percentage is equal to the sum of--
       ``(1) 5 percent, plus
       ``(2) 5 percentage points (not to exceed 45 percentage 
     points), for each percent in excess of 2 percent by which the 
     fuel economy achieved by the qualifying vehicle with 1 or 
     more qualifying fuel savings components exceeds such 
     qualifying vehicle without such component or components.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualifying fuel savings component.--The term 
     `qualifying fuel savings component' means any device or 
     system of devices that--
       ``(A) is installed on a qualifying vehicle,
       ``(B) is designed to increase the fuel economy of such 
     vehicle by at least 2 percent, the amount of such increase to 
     be verified by the Administrator of the Environmental 
     Protection Agency under the SmartWay Transport Partnership,
       ``(C) the original use of which commences with the 
     taxpayer,
       ``(D) is acquired for use by the taxpayer and not for 
     resale, and
       ``(E) has not been taken into account for purposes of 
     determining the credit under this section for any preceding 
     taxable year with respect to such qualifying vehicle.
       ``(2) Qualifying vehicle.--The term `qualifying vehicle' 
     means any vehicle subject to transportation fuels regulations 
     under the Clean Air Act.
       ``(3) Fuel economy.--The term `fuel economy' has the 
     meaning given such term under section 32901 of such title 49.
       ``(d) Special Rules.--
       ``(1) No double benefit.--
       ``(A) Reduction in basis.--If a credit is determined under 
     this section with respect to any property by reason of 
     expenditures described in subsection (a), the basis of such 
     property shall be reduced by the amount of the credit so 
     determined.
       ``(B) Other deductions and credits.--The amount of any 
     deduction or other credit allowable under this chapter for a 
     qualifying vehicle shall be reduced by the amount of credit 
     allowed under subsection (a) with respect to such vehicle.
       ``(2) Credit may be transferred.--
       ``(A) In general.--A taxpayer may, in connection with the 
     purchase of a qualifying fuel savings component, transfer any 
     credit allowable under subsection (a) to any person who is in 
     the trade or business of selling such components, but only if 
     such person clearly discloses to such taxpayer, through the 
     use of a sticker attached to the qualifying fuel savings 
     component, the amount of any credit allowable under 
     subsection (a) with respect to such component.
       ``(B) Consent required for revocation.--Any transfer under 
     subparagraph (A) may be revoked only with the consent of the 
     Secretary.
       ``(C) Regulations.--The Secretary may prescribe such 
     regulations as necessary to ensure that any credit described 
     in subparagraph (A) is claimed once and not retransferred by 
     a transferee.
       ``(3) Election not to claim credit.--No credit shall be 
     allowed under subsection (a) for any component if the 
     taxpayer elects to not have this section apply to such 
     component.
       ``(e) Termination.--This section shall not apply to 
     property placed in service after December 31, 2020.''.
       (b) Credit to Be Part of General Business Credit.--
     Subsection (b) of section 38 (relating to general business 
     credit), as amended by this Act, is amended by striking 
     ``plus'' at the end of paragraph (35), by striking the period 
     at the end of paragraph (36) and inserting ``, plus'' , and 
     by adding at the end the following new paragraph:
       ``(37) the fuel savings tax credit determined under section 
     45R(a).''.
       (c) Conforming Amendments.--
       (1) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 45Q the following new item:

``Sec. 45R. Credit for fuel savings components for certain vehicles and 
              engines.''.

       (2) Section 1016(a), as amended by this Act, is amended by 
     striking ``and'' at the end of paragraph (37), by striking 
     the period at the end of paragraph (38) and inserting ``, 
     and'', and by adding at the end the following:
       ``(39) in the case of a component with respect to which a 
     credit was allowed under section 45R, to the extent provided 
     in section 45R(d)(1)(A).''.
       (3) Section 6501(m), as amended by this Act, is amended by 
     inserting ``45R(d)(3)'' after ``45H(g)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009, in taxable years ending after such date.

     SEC. 4. INCREASE IN GAS GUZZLER TAX.

       (a) In General.--Subsection (a) of section 4064 (relating 
     to gas guzzler tax) is amended to read as follows:
       ``(a) Imposition of Tax.--
       ``(1) In general.--There is hereby imposed on the sale by 
     the manufacturer of each automobile a tax equal to--
       ``(A) in the case of any automobile manufactured in model 
     year 2011, the applicable tax amount determined in accordance 
     with the table contained in paragraph (2), and
       ``(B) in the case of any automobile manufactured in a model 
     year after 2011, if the fuel economy of the model type in 
     which such automobile falls is less than 80 percent of the 
     industry-wide average fuel economy standard for such model 
     year for all automobiles, an amount equal to the lesser of--
       ``(i) an amount based on each mile per gallon reduction 
     below such 80 percent equal to_

       ``(I) $1,000 for the first mile per gallon reduction, or
       ``(II) an aggregate amount equal to 125 percent of the 
     previous dollar amount for each additional mile per gallon 
     reduction, or

       ``(ii) $22,737.

     For purposes of subparagraph (B), any fraction of a mile per 
     gallon shall be rounded to the nearest mile per gallon and 
     any fraction of a dollar shall be rounded to the nearest 
     dollar.
       ``(2) Applicable tax amount.--For purposes of paragraph 
     (1)(A), the applicable tax amount shall be determined as 
     follows:


------------------------------------------------------------------------
  ``If the fuel economy of the model type in which the    The applicable
                  automobile falls is:                    tax amount is:
------------------------------------------------------------------------
At least 24.2...........................................            $0.
At least 23.2 but less than 24.2........................        $1,000.
At least 22.2 but less than 23.2........................        $1,250.
At least 21.2 but less than 22.2........................        $1,563.
At least 20.2 but less than 21.2........................        $1,953.
At least 19.2 but less than 20.2........................        $2,441.
At least 18.2 but less than 19.2........................        $3,052.
At least 17.2 but less than 18.2........................        $3,815.
At least 16.2 but less than 17.2........................        $4,768.
At least 15.2 but less than 16.2........................        $5,960.
At least 14.2 but less than 15.2........................        $7,451.
At least 13.2 but less than 14.2........................        $9,313.
At least 12.2 but less than 13.2........................       $11,642.
At least 11.2 but less than 12.2........................       $14,552.
At least 10.2 but less than 11.2........................       $18,190.
Less than 10.2..........................................     $22,737.''.
------------------------------------------------------------------------

       (b) Definition.--Section 4064(b) (relating to definitions) 
     is amended by adding at the end the following new paragraph:
       ``(8) Average fuel economy standard.--The term `average 
     fuel economy standard' has the meaning given such term under 
     section 32901 of title 49, United States Code.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales after December 31, 2009.

     SEC. 5. INCREASE IN MANUFACTURER CAFE PENALTIES.

       (a) In General.--Section 32912 of title 49, United States 
     Code, is amended--
       (1) by striking ``$5'' in subsection (b) and inserting 
     ``$50'', and
       (2) by striking ``$10'' in subsection (c)(1)(B) and 
     inserting ``$100''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to model years beginning after the date of the 
     enactment of this Act.

     SEC. 6. DEPLOYMENT OF LOW-GREENHOUSE GAS AND FUEL-SAVING 
                   TECHNOLOGIES.

       Section 756 of the Energy Policy Act of 2005 (42 U.S.C. 
     16104) is amended--

[[Page S5710]]

       (1) by striking the section heading and all that follows 
     through the end of subsection (b) and inserting the 
     following:

     ``SEC. 756. DEPLOYMENT OF LOW-GREENHOUSE GAS AND FUEL-SAVING 
                   TECHNOLOGIES.

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(2) Advanced truck stop electrification system.--The term 
     `advanced truck stop electrification system' means a 
     stationary system that delivers heat, air conditioning, 
     electricity, or communications, and is capable of providing 
     verifiable and auditable evidence of use of those services, 
     to a heavy-duty vehicle and any occupants of the heavy-duty 
     vehicle with, or for delivery, of those services.
       ``(3) Auxiliary power unit.--The term `auxiliary power 
     unit' means an integrated system that--
       ``(A) provides heat, air conditioning, engine warming, or 
     electricity to components on a heavy-duty vehicle; and
       ``(B) is certified by the Administrator under part 89 of 
     title 40, Code of Federal Regulations (or any successor 
     regulation), as meeting applicable emission standards.
       ``(4) Heavy-duty vehicle.--The term `heavy-duty vehicle' 
     means a vehicle that has a gross vehicle weight rating 
     greater than 8,500 pounds.
       ``(5) Idle reduction technology.--The term `idle reduction 
     technology' means an advanced truck stop electrification 
     system, auxiliary power unit, or other technology that--
       ``(A) is used to reduce idling; and
       ``(B) allows for the main drive engine or auxiliary 
     refrigeration engine to be shut down.
       ``(6) Long-duration idling.--
       ``(A) In general.--The term `long-duration idling' means 
     the operation of a main drive engine or auxiliary 
     refrigeration engine, for a period greater than 15 
     consecutive minutes, at a time at which the main drive engine 
     is not engaged in gear.
       ``(B) Exclusions.--The term `long-duration idling' does not 
     include the operation of a main drive engine or auxiliary 
     refrigeration engine during a routine stoppage associated 
     with traffic movement or congestion.
       ``(7) Low-greenhouse gas and fuel-saving technology.--The 
     term `low-greenhouse gas and fuel-saving technology' means 
     any device, system of devices, strategies, or equipment 
     that--
       ``(A) reduces greenhouse gas emissions; or
       ``(B) improves fuel efficiency.
       ``(b) Low-Greenhouse Gas and Fuel-Saving Technology 
     Deployment Program.--
       ``(1) Establishment.--
       ``(A) In general.--Not later than 90 days after the date of 
     enactment of the OILSAVE Act, the Administrator, in 
     consultation with the Secretary of Energy, shall implement, 
     through the SmartWay Transport Partnership of the 
     Environmental Protection Agency, a program to support 
     deployment of low-greenhouse gas and fuel-saving 
     technologies.
       ``(B) Priority.--The Administrator shall give priority to 
     the deployment of low-greenhouse gas and fuel-saving 
     technologies that meet SmartWay performance thresholds 
     developed under paragraph (2)(B).
       ``(2) Technology designation and deployment.--The 
     Administrator shall--
       ``(A) develop measurement protocols to evaluate the fuel 
     consumption and greenhouse gas performance of transportation 
     technologies, including technologies for passenger transport 
     and goods movement;
       ``(B) develop SmartWay performance thresholds that can be 
     used to certify, verify, or designate low-greenhouse gas and 
     fuel-saving technologies that provide superior environmental 
     performance for each mode of passenger transportation and 
     goods movement; and
       ``(C)(i) publish a list of low-greenhouse gas and fuel-
     saving technologies;
       ``(ii) identify the greenhouse gas and fuel efficiency 
     performance of each technology; and
       ``(iii) identify those technologies that meet the SmartWay 
     performance thresholds developed under subparagraph (B).
       ``(3) Promotion and deployment of technologies.--The 
     Administrator shall--
       ``(A) implement partnership and recognition programs to 
     promote best practices and drive demand for fuel-efficient, 
     low-greenhouse gas transportation performance;
       ``(B) promote the availability of and encourage the 
     adoption of technologies that meet the SmartWay performance 
     thresholds developed under paragraph (2)(B);
       ``(C) publicize the availability of financial incentives 
     (such as Federal tax incentives, grants, and low-cost loans) 
     for the deployment of low-greenhouse gas and fuel-saving 
     technologies; and
       ``(D) deploy low-greenhouse gas and fuel-saving 
     technologies through grant and loan programs.
       ``(4) Stakeholder consultation.--
       ``(A) In general.--The Administrator shall solicit the 
     comments of interested parties prior to establishing a new or 
     revising an existing SmartWay technology category, 
     measurement protocol, or performance threshold.
       ``(B) Notice.--On adoption of a new or revised technology 
     category, measurement protocol, or performance threshold, the 
     Administrator shall publish a notice and explanation of any 
     changes and, if appropriate, responses to comments submitted 
     by interested parties.
       ``(5) Freight partnership.--
       ``(A) In general.--The Administrator shall implement, 
     through the SmartWay Transport Partnership, a program with 
     shippers and carriers of goods to promote fuel-efficient, 
     low-greenhouse gas transportation.
       ``(B) Administration.--The Administrator shall--
       ``(i) verify the greenhouse gas performance and fuel 
     efficiency of participating freight carriers, including 
     carriers involved in rail, trucking, marine, and other goods 
     movement operations;
       ``(ii) publish a comprehensive greenhouse gas and fuel 
     efficiency performance index of freight modes (including 
     rail, trucking, marine, and other modes of transporting 
     goods) and individual freight companies so that shippers can 
     choose to deliver the goods of the shippers most efficiently 
     with minimum greenhouse gas emissions;
       ``(iii) develop tools for--

       ``(I) freight carriers to calculate and improve the fuel 
     efficiency and greenhouse gas performance of the carriers; 
     and
       ``(II) shippers--

       ``(aa) to calculate the fuel and greenhouse gas impacts of 
     moving the products of the shippers; and
       ``(bb) to evaluate the relative impacts from transporting 
     the goods of the shippers by different modes and carriers; 
     and
       ``(iv) recognize participating shipper and carrier 
     companies that demonstrate advanced practices and achieve 
     superior levels of fuel efficiency and greenhouse gas 
     performance.
       ``(6) Authorization of appropriations.--There is authorized 
     to be appropriated to the Administrator to carry out this 
     subsection $19,500,000 for each of fiscal years 2010 through 
     2020.''; and
       (2) by striking subsection (d) and inserting the following:
       ``(d) Improving Freight Greenhouse Gas Performance 
     Databases.--The Secretary of Commerce, in consultation with 
     the Administrator, shall--
       ``(1)(A) define and collect data on the physical and 
     operational characteristics of the truck fleet of the United 
     States, with special emphasis on data relating to fuel 
     efficiency and greenhouse gas performance to provide data for 
     the performance index published under subsection 
     (b)(5)(B)(ii); and
       ``(B) publish the data described in subparagraph (A) 
     through the Vehicle Inventory and Use Survey as soon as 
     practicable after the date of enactment of the OILSAVE Act, 
     and at least every 5 years thereafter, as part of the 
     economic census required under title 13, United States Code; 
     and
       ``(2) define, collect, and publish data for other modes of 
     goods transport (including rail and marine), as necessary.
       ``(e) Report.--Not later than 18 months after the date on 
     which funds are initially awarded under this section and on a 
     biennial basis thereafter, the Administrator shall submit to 
     Congress a report containing a description of--
       ``(1) actions taken to implement the low-greenhouse gas and 
     fuel-saving technology deployment program established under 
     subsection (b), including--
       ``(A) the measurement protocols;
       ``(B) the SmartWay performance thresholds; and
       ``(C) a list of low-greenhouse gas and fuel-saving 
     technologies; and
       ``(2) estimated greenhouse gas emissions and fuel savings 
     from the program.''.

                                S. 1094

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Renewable Energy Alternative 
     Production Act'' or the ``REAP Act''.

     SEC. 2. CREDIT FOR PRODUCTION OF RENEWABLE ENERGY.

       (a) In General.--Section 45 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(f) Credit Allowed for Production of Non-Electric 
     Energy.--
       ``(1) In general.--The credit allowed under subsection (a) 
     shall be increased by an amount equal to the product of--
       ``(A) the dollar amount determined under paragraph (2), and
       ``(B) each million British thermal units (mmBtu) of 
     qualified fuel which is--
       ``(i) produced by the taxpayer--

       ``(I) from qualified energy resources, and
       ``(II) at any facility during the 10-year period beginning 
     on the date such facility was placed in service,

       ``(ii) not used for the production of electricity, and
       ``(iii) sold by the taxpayer to an unrelated person during 
     the taxable year.
       ``(2) Dollar amount.--The dollar amount determined under 
     this paragraph shall be the amount determined by the 
     Secretary to be the equivalent, expressed in British thermal 
     units, of the credit allowed under subsection (a) for 1 
     kilowatt hour of electricity.
       ``(3) Reduction for grants, tax exempt bonds, subsidized 
     energy financing, and other credits.--Rules similar to the 
     rules of subsection (b)(3) shall apply for purposes of 
     paragraph (1).
       ``(4) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Qualified fuel.--The term `qualified fuel' means an 
     energy product which is produced, extracted, converted, or 
     synthesized from a qualified energy resource through a

[[Page S5711]]

     controlled process, including pyrolysis, electrolysis, and 
     anaerobic digestion, which results in a product consisting of 
     methane, synthesis gas, hydrogen, steam, manufactured 
     cellulosic fuels, or any other form of energy provided under 
     regulations by the Secretary and which is used solely as a 
     source of energy.
       ``(B) Allocation of credit to patrons of agricultural 
     cooperatives.--Rules similar to the rules of subsection 
     (e)(11) shall apply for purposes of paragraph (1).''.
       (b) Conforming Amendments.--
       (1) The heading for section 45 of the Internal Revenue Code 
     of 1986 is amended by striking ``ELECTRICITY'' and inserting 
     ``ENERGY''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 of such Code is amended by striking 
     ``Electricity'' in the item relating to section 45 and 
     inserting ``Energy''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 3. ENERGY CREDIT FOR ONSITE RENEWABLE NON-ELECTRIC 
                   ENERGY PRODUCTION FACILITIES.

       (a) Credit Allowed.--Clause (i) of section 48(a)(2)(A) of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of subclause (III), and
       (2) by adding at the end the following new subclause:

       ``(V) qualified onsite renewable non-electric energy 
     production property,''.

       (b) Qualified Onsite Renewable Non-Electric Energy 
     Production Property.--Subsection (c) of section 48 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(5) Qualified onsite renewable non-electric energy 
     production property.--
       ``(A) In general.--The term `qualified onsite renewable 
     non-electric energy production property' means property which 
     produces qualified fuel--
       ``(i) from qualified energy resources,
       ``(ii) not used for the production of electricity, and
       ``(iii) used primarily on the same site where the 
     production is located to replace an equivalent amount of non-
     renewable fuel (determined based on the number of British 
     thermal units of non-renewable fuel consumed by the taxpayer 
     in the prior taxable year) or to provide energy primarily on 
     such site for a use that did not exist prior to the later of 
     the date of the enactment of this paragraph or the date such 
     property was placed in service.
       ``(B) Definitions.--For purposes of this paragraph--
       ``(i) Qualified fuel.--The term `qualified fuel' means an 
     energy product which is produced, extracted, converted, or 
     synthesized from a qualified energy resource through a 
     controlled process, including pyrolysis, electrolysis, and 
     anaerobic digestion, which results in a product consisting of 
     methane, synthesis gas, hydrogen, steam, manufactured 
     cellulosic fuels, or any other form of energy provided under 
     regulations by the Secretary and which is used solely as a 
     source of energy.
       ``(ii) Qualified energy resources.--The term `qualified 
     energy resources' has the meaning given such term by 
     paragraph (1) of section 45(c).
       ``(iii) Termination.--The term `qualified onsite renewable 
     non-electric energy production property' shall not include 
     any property for any period after the date which is 10 years 
     after the date of the enactment of the Renewable Energy 
     Alternative Production Act.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, under rules similar to the rules of section 48(m) 
     of the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).

     SEC. 4. RENEWABLE NON-ELECTRIC ENERGY PRODUCTION FACILITIES 
                   ELIGIBLE FOR NEW CLEAN RENEWABLE ENERGY BONDS.

       (a) In General.--Paragraph (1) of section 54C(d) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) Qualified renewable energy facility.--The term 
     `qualified renewable energy facility' means a facility which 
     is--
       ``(A)(i) a qualified facility (as determined under section 
     45(d) without regard to paragraphs (8) and (10) thereof and 
     to any placed in service date), or
       ``(ii) a facility which produces qualified fuel (as defined 
     in section 45(f)(4)(A)) which is derived from qualified 
     energy resources (within the meaning of section 45(f)(4)(B)) 
     and not used for the production of electricity, and
       ``(B) owned by a public power provider, a governmental 
     body, or a cooperative electric company.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

                                S. 1095

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``America's Low-Carbon Fuel 
     Standard Act of 2009''.

     SEC. 2. LOW-CARBON FUEL PROGRAM.

       (a) In General.--Section 211 of the Clean Air Act (42 
     U.S.C. 7545) is amended by striking subsection (o) and 
     inserting the following:
       ``(o) Low-Carbon Fuel Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Baseline lifecycle greenhouse gas emissions.--The 
     term `baseline lifecycle greenhouse gas emissions' means the 
     average lifecycle greenhouse gas emissions, as determined by 
     the Administrator, after notice and opportunity for comment, 
     for transportation fuel sold or distributed as transportation 
     fuel in 2005.
       ``(B) Lifecycle greenhouse gas emissions.--The term 
     `lifecycle greenhouse gas emissions' means the aggregate 
     quantity of greenhouse gas emissions (including direct 
     emissions and significant indirect emissions such as 
     significant emissions from land use changes), as determined 
     by the Administrator, related to the full fuel lifecycle, 
     including all stages of fuel and feedstock production and 
     distribution, from feedstock generation or extraction through 
     the distribution and delivery and use of the finished fuel to 
     the ultimate consumer, where the mass values for all 
     greenhouse gases are adjusted to account for their relative 
     global warming potential.
       ``(C) Low-carbon fuel.--The term `low-carbon fuel' means 
     transportation fuel (including renewable fuel, electricity, 
     hydrogen, and other forms of energy) that has lifecycle 
     greenhouse gas emissions, as determined by the Administrator, 
     after notice and opportunity for comment, that on annual 
     average basis are equal to at least the following percentage 
     less than baseline lifecycle greenhouse gas emissions 
     determined in accordance with the following table:

``CalApplicable percentage less than baseline lifecycle greenhouse gas 
                                                             emissions:
  2015............................................................20.0 
  2016............................................................21.5 
  2017............................................................23.0 
  2018............................................................24.5 
  2019............................................................26.0 
  2020............................................................27.5 
  2021............................................................29.0 
  2022............................................................30.5 
  2023............................................................32.0 
  2024............................................................33.5 
  2025............................................................35.0 
  2026............................................................36.5 
  2027............................................................38.0 
  2028............................................................39.5 
  2029............................................................41.0 
  2030............................................................42.5 
  2031 and thereafter........................................Percentage
                                                       determined under
                                                  paragraph (2)(B)(ii).
       ``(D) Renewable biomass.--The term `renewable biomass' 
     means each of the following:
       ``(i) Planted crops and crop residue harvested from 
     agricultural land cleared or cultivated at any time prior to 
     December 19, 2007, that is either actively managed or fallow, 
     and nonforested.
       ``(ii) Planted trees, bioenergy crops, and tree residue 
     from actively managed tree plantations on non-Federal land 
     cleared at any time prior to December 19, 2007, including 
     land belonging to an Indian tribe or an Indian individual, 
     that is held in trust by the United States or subject to a 
     restriction against alienation imposed by the United States.
       ``(iii) Slash, brush, and those trees that are byproducts 
     of ecological restoration, disease or insect infestation 
     control, or hazardous fuels reduction treatments and do not 
     exceed the minimum size standards for sawtimber, harvested--

       ``(I) in ecologically sustainable quantities, as determined 
     by the appropriate Federal land manager; and
       ``(II) from National Forest System land or public land (as 
     defined in section 103 of the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1702)), other than--

       ``(aa) components of the National Wilderness Preservation 
     System;
       ``(bb) wilderness study areas;
       ``(cc) inventoried roadless areas;
       ``(dd) old growth or late successional forest stands unless 
     biomass from the stand is harvested as a byproduct of an 
     ecological restoration treatment that fully maintains, or 
     contributes toward the restoration of, the structure and 
     composition of an old growth forest stand taking into account 
     the contribution of the stand to landscape fire adaptation 
     and watershed health, and retaining large trees contributing 
     to old-growth structure;
       ``(ee) components of the National Landscape Conservation 
     System; and
       ``(ff) National Monuments.
       ``(iv) Animal waste material and animal byproducts.
       ``(v) Slash and pre-commercial thinnings that are from non-
     Federal forestland, including forestland belonging to an 
     Indian tribe or an Indian individual, that are held in trust 
     by the United States or subject to a restriction against 
     alienation imposed by the United States, but not forests or 
     forestland that are ecological communities with a global or 
     State ranking of critically imperiled, imperiled, or rare 
     pursuant to a State Natural Heritage Program, old growth 
     forest, or late successional forest.
       ``(vi) Biomass from land in any ownership obtained from the 
     immediate vicinity of

[[Page S5712]]

     buildings and other areas regularly occupied by people, or of 
     public infrastructure, at risk from wildfire.
       ``(vii) Algae.
       ``(viii) Municipal solid waste, including separated yard 
     waste or food waste, including recycled cooking and trap 
     grease.
       ``(E) Renewable fuel.--The term `renewable fuel' means fuel 
     that is--
       ``(i) produced from renewable biomass; and
       ``(ii) used to replace or reduce the quantity of fossil 
     fuel present in a transportation fuel.
       ``(F) Transportation fuel.--The term `transportation fuel' 
     means fuel for use in motor vehicles, motor vehicle engines, 
     or nonroad vehicles (except for ocean-going vessels).
       ``(2) Program.--
       ``(A) Regulations.--
       ``(i) In general.--Not later than January 31, 2015, the 
     Administrator shall promulgate regulations to ensure that the 
     applicable percentage determined under subparagraph (B) of 
     the transportation fuel sold or introduced into commerce in 
     the United States, on an annual average basis, is low-carbon 
     fuel.
       ``(ii) Provisions of regulations.--Regardless of the date 
     of promulgation, the regulations promulgated under clause 
     (i)--

       ``(I) shall contain compliance provisions applicable to 
     producers, refiners, blenders, distributors, and importers, 
     as appropriate, to ensure that the requirements of this 
     paragraph are met; but
       ``(II) shall not--

       ``(aa) restrict geographic areas in which low-carbon fuel 
     may be used; or
       ``(bb) impose any per-gallon obligation for the use of low-
     carbon fuel.
       ``(B) Applicable volumes.--
       ``(i) Calendar years 2015 through 2030.--For the purpose of 
     subparagraph (A), the applicable percentage of the 
     transportation fuel sold or introduced into commerce in the 
     United States, on an annual average basis, that is low-carbon 
     fuel for each of calendar years 2015 through 2030 shall be 
     determined by the Administrator, in consultation with the 
     Secretary of Energy, in accordance with the following table:

``Applicable percentage of transportation fuel sold that is low-carbon 
                                                                  fuel:
  2015............................................................10.0 
  2016............................................................11.5 
  2017............................................................13.0 
  2018............................................................14.5 
  2019............................................................16.0 
  2020............................................................17.5 
  2021............................................................19.0 
  2022............................................................20.5 
  2023............................................................22.0 
  2024............................................................23.5 
  2025............................................................25.0 
  2026............................................................26.5 
  2027............................................................28.0 
  2028............................................................29.5 
  2029............................................................31.0 
  2030............................................................32.5.
       ``(ii) Subsequent calendar years.--

       ``(I) In general.--For the purposes of subparagraph (A), 
     the applicable percentage of the transportation fuel sold or 
     introduced into commerce in the United States (except in 
     noncontiguous States or territories), on an annual average 
     basis, that is low-carbon fuel for calendar year 2031 and 
     each subsequent calendar year shall be determined by the 
     Administrator, in consultation with the Secretary of Energy, 
     based on a review of the implementation of the program during 
     calendar years specified in the tables established under this 
     subsection, and an analysis of--

       ``(aa) the impact of the production and use of low-carbon 
     fuel on the environment, including on air quality, climate 
     change, conversion of wetland, ecosystems, wildlife habitat, 
     water quality, and water supply;
       ``(bb) the impact of low-carbon fuel on the energy security 
     of the United States;
       ``(cc) the expected annual rate of future commercial 
     production of low-carbon fuel;
       ``(dd) the impact of low-carbon fuel on the infrastructure 
     of the United States, including deliverability of materials, 
     goods, and products other than low-carbon fuel, and the 
     sufficiency of infrastructure to deliver and use low-carbon 
     fuel;
       ``(ee) the impact of the use of low-carbon fuel on the cost 
     to consumers of transportation fuel and on the cost to 
     transport goods; and
       ``(ff) the impact of the use of low-carbon fuel on other 
     factors, including job creation, the price and supply of 
     agricultural commodities, rural economic development, and 
     food prices.

       ``(II) Deadline.--The Administrator shall promulgate rules 
     establishing the applicable volumes under this clause not 
     later than 14 months before the first year for which the 
     applicable percentage will apply.

       ``(3) Applicable percentages.--
       ``(A) Provision of estimate of volumes of gasoline sales.--
     Not later than October 31 of each of calendar years 2005 
     through 2021, the Administrator of the Energy Information 
     Administration shall provide to the Administrator of the 
     Environmental Protection Agency an estimate, with respect to 
     the following calendar year, of the volumes of transportation 
     fuel and low-carbon fuel projected to be sold or introduced 
     into commerce in the United States.
       ``(B) Determination of applicable percentages.--
       ``(i) In general.--Not later than November 30 of each of 
     calendar years 2015 through 2029, based on the estimate 
     provided under subparagraph (A), the Administrator of the 
     Environmental Protection Agency shall determine and publish 
     in the Federal Register, with respect to the following 
     calendar year, the low-carbon fuel obligation that ensures 
     that the requirements of paragraph (2) are met.
       ``(ii) Required elements.--The low-carbon fuel obligation 
     determined for a calendar year under clause (i) shall--

       ``(I) be applicable to refineries, blenders, and importers, 
     as appropriate;
       ``(II) be expressed in terms of a volume percentage of 
     transportation fuel sold or introduced into commerce in the 
     United States; and
       ``(III) subject to subparagraph (C), consist of a single 
     applicable percentage that applies to all categories of 
     persons specified in subclause (I).

       ``(C) Adjustments.--In determining the applicable 
     percentage for a calendar year, the Administrator shall make 
     adjustments to prevent the imposition of redundant 
     obligations on any person specified in subparagraph 
     (B)(ii)(I).
       ``(4) Modification of greenhouse gas reduction 
     percentages.--
       ``(A) In general.--In the regulations promulgated under 
     paragraph (2)(A)(i), the Administrator may adjust the 
     required percentage reductions in lifecycle greenhouse gas 
     emissions for low-carbon fuel to a lower percentage if the 
     Administrator determines that generally the reduction is not 
     commercially feasible for low-carbon fuel made using a 
     variety of feedstocks, technologies, and processes to meet 
     the applicable reduction.
       ``(B) Amount of adjustment.--In promulgating regulations 
     under this paragraph, the specified percent reduction in 
     greenhouse gas emissions from low-carbon fuel may not be 
     reduced more than 10 percentage points below the percentage 
     otherwise required under this subsection.
       ``(C) Adjusted reduction levels.--
       ``(i) In general.--An adjustment in the percentage 
     reduction in greenhouse gas levels shall be the minimum 
     practicable adjustment for low-carbon fuel.
       ``(ii) Maximum achievable level.--The adjusted greenhouse 
     gas reduction shall be established at the maximum achievable 
     level, taking cost in consideration, allowing for the use of 
     a variety of feedstocks, technologies, and processes.
       ``(D) Subsequent adjustments.--
       ``(i) In general.--After the Administrator has promulgated 
     a final rule under paragraph (2)(A)(i) with respect to the 
     method of determining lifecycle greenhouse gas emissions, the 
     Administrator may not adjust the percent greenhouse gas 
     reduction levels unless the Administrator determines that 
     there has been a significant change in the analytical basis 
     used for determining the lifecycle greenhouse gas emissions.
       ``(ii) Criteria and standards.--If the Administrator makes 
     the determination that an adjustment is required, the 
     Administrator may adjust the percent reduction levels through 
     rulemaking using the criteria and standards established under 
     this paragraph.
       ``(iii) 5-Year review.--If the Administrator makes any 
     adjustment under this paragraph, not later than 5 years 
     thereafter, the Administrator shall review and revise (based 
     on the same criteria and standards as required for the 
     initial adjustment) the level as adjusted by the regulations.
       ``(5) Credit program.--
       ``(A) In general.--The regulations promulgated under 
     paragraph (2)(A) shall provide for the generation of an 
     appropriate quantity of credits by any person that refines, 
     blends, imports, or distributes transportation fuel that 
     contains a quantity of low-carbon fuel that is greater than 
     the quantity required under paragraph (2).
       ``(B) Use of credits.--A person that generates credits 
     under subparagraph (A) may use the credits, or transfer all 
     or a portion of the credits to another person, for the 
     purpose of complying with paragraph (2).
       ``(C) Duration of credits.--A credit generated under this 
     paragraph shall be valid to demonstrate compliance for the 12 
     month-period beginning on the date of generation.
       ``(D) Inability to generate or purchase sufficient 
     credits.--The regulations promulgated under paragraph (2)(A) 
     shall include provisions allowing any person that is unable 
     to generate or purchase sufficient credits to meet the 
     requirements of paragraph (2) to carry forward a low-carbon 
     fuel deficit on condition that the person, in the calendar 
     year following the year in which the low-carbon fuel deficit 
     is created--
       ``(i) achieves compliance with the low-carbon fuel 
     requirement under paragraph (2); and
       ``(ii) generates or purchases additional low-carbon fuel 
     credits to offset the low-carbon fuel deficit of the previous 
     year.
       ``(E) Credits for additional low-carbon fuel.--The 
     Administrator may promulgate regulations providing--
       ``(i) for the generation of an appropriate quantity of 
     credits by any person that refines, blends, imports, or 
     distributes additional low-carbon fuel specified by the 
     Administrator; and
       ``(ii) for the use of the credits by the generator, or the 
     transfer of all or a portion of the credits to another 
     person, for the purpose of complying with paragraph (2).
       ``(6) Waivers.--

[[Page S5713]]

       ``(A) In general.--The Administrator, in consultation with 
     the Secretary of Agriculture and the Secretary of Energy, may 
     waive the requirements of this subsection in whole or in part 
     on petition by 1 or more States, by any person subject to the 
     requirements of this subsection, or by the Administrator on 
     the Administrator's own motion, by reducing the national 
     percentage of low-carbon fuel required under paragraph (2)--
       ``(i) based on a determination by the Administrator, after 
     public notice and opportunity for comment, that 
     implementation of the requirement would severely harm the 
     economy or environment of a State, a region, or the United 
     States; or
       ``(ii) based on a determination by the Administrator, after 
     public notice and opportunity for comment, that there is an 
     inadequate domestic supply of low-carbon fuel.
       ``(B) Petitions for waivers.--The Administrator, in 
     consultation with the Secretary of Agriculture and the 
     Secretary of Energy, shall approve or disapprove a petition 
     for a waiver of the requirements of paragraph (2) not later 
     than 90 days after the date on which the petition is received 
     by the Administrator.
       ``(C) Termination of waivers.--A waiver granted under 
     subparagraph (A) shall terminate after 1 year, but may be 
     renewed by the Administrator after consultation with the 
     Secretary of Agriculture and the Secretary of Energy and 
     after public notice and opportunity for comment.
       ``(D) Modification of applicable percentages.--
       ``(i) In general.--In the case of any table established 
     under this subsection, if the Administrator waives at least 
     20 percent of the applicable percentage requirement specified 
     in the table for 2 consecutive years, or at least 50 percent 
     of the percentage requirement for a single year, the 
     Administrator shall promulgate regulations (not later than 1 
     year after issuing the waiver) that modify the applicable 
     volumes specified in the table concerned for all years 
     following the final year to which the waiver applies, except 
     that no such modification in applicable percentages shall be 
     made for any year before calendar year 2016.
       ``(ii) Administration.--In promulgating the regulations, 
     the Administrator shall comply with the processes, criteria, 
     and standards established under paragraph (2)(B)(ii).
       ``(7) Low-carbon market concentration analysis.--
       ``(A) Analysis.--
       ``(i) In general.--Not later than January 1, 2015, and 
     annually thereafter, the Federal Trade Commission shall 
     perform a market concentration analysis of the low-carbon 
     fuel production, import, and distribution industries using 
     the Herfindahl-Hirschman Index to determine whether there is 
     sufficient competition among industry participants to avoid 
     price-setting and other anticompetitive behavior.
       ``(ii) Scoring.--For the purpose of scoring under clause 
     (i) using the Herfindahl-Hirschman Index, all marketing 
     arrangements among industry participants shall be considered.
       ``(B) Report.--Not later than December 1, 2015, and 
     annually thereafter, the Federal Trade Commission shall 
     submit to Congress and the Administrator a report on the 
     results of the market concentration analysis performed under 
     subparagraph (A)(i).
       ``(8) Periodic reviews.--To allow for the appropriate 
     adjustment of the requirements described in paragraph (2)(B), 
     the Administrator shall conduct periodic reviews of--
       ``(A) existing technologies;
       ``(B) the feasibility of achieving compliance with the 
     requirements; and
       ``(C) the impacts of the requirements of this subsection on 
     each individual and entity described in paragraph (2).
       ``(9) Effect on other provisions.--
       ``(A) In general.--Subject to subparagraph (B), nothing in 
     this subsection, or regulations promulgated under this 
     subsection, affects the regulatory status of carbon dioxide 
     or any other greenhouse gas, or expands or limits regulatory 
     authority regarding carbon dioxide or any other greenhouse 
     gas, for purposes of other provisions (including section 165) 
     of this Act.
       ``(B) Administration.--Subparagraph (A) shall not affect 
     implementation and enforcement of this subsection.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on January 1, 2015.

     SEC. 3. TRANSITION PROVISIONS.

       (a) Definitions.--Section 211(o)(1) of the Clean Air Act 
     (42 U.S.C. 7545(o)(1)) is amended--
       (1) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Additional renewable fuel.--
       ``(i) In general.--The term `additional renewable fuel' 
     means fuel that--

       ``(I) is--

       ``(aa) produced from renewable biomass; or
       ``(bb) low-carbon fuel;

       ``(II) is used to replace or reduce the quantity of fossil 
     fuel present in--

       ``(aa) transportation fuel;
       ``(bb) home heating oil; or
       ``(cc) aviation jet fuel; and

       ``(III) has lifecycle greenhouse gas emissions, as 
     determined by the Administrator, after notice and opportunity 
     for comment, that are at least 20 percent less than baseline 
     lifecycle greenhouse gas emissions.'';

       (2) by redesignating subparagraphs (I) through (L) as 
     subparagraphs (J) through (M), respectively; and
       (3) by inserting after subparagraph (H) the following:
       ``(I) Low-carbon fuel.--The term `low-carbon fuel' means 
     renewable fuel that has lifecycle greenhouse gas emissions, 
     as determined by the Administrator, after notice and 
     opportunity for comment, that are at least 20 percent less 
     than baseline lifecycle greenhouse gas emissions.''.
       (b) Credits for Additional Renewable Fuel.--Section 
     211(o)(5) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is 
     amended by striking subparagraph (A) and inserting the 
     following:
       ``(A) Credits for additional renewable fuel.--
       ``(i) In general.--Not later than 180 days after the date 
     of enactment of the America's Low-Carbon Fuel Standard Act of 
     2009, the Administrator shall issue regulations providing--

       ``(I) for the generation of an appropriate quantity of 
     credits by any person that produces, refines, blends, or 
     imports additional renewable fuels or low-carbon fuels 
     specified by the Administrator; and
       ``(II) for the use of the credits by the generator, or the 
     transfer of all or a portion of the credits to another 
     person, for the purpose of complying with paragraph (2).

       ``(ii) Increased credit.--For each of calendar years 2012 
     through 2014, the Administrator shall increase the amount of 
     the credit provided under clause (i) in proportion to the 
     extent to which the lifecycle greenhouse gas emissions of the 
     additional renewable fuel is less than baseline lifecycle 
     greenhouse gas emissions.''.

                                S. 1096

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

     SECTION 1. ENERGYGRANT COMPETITIVE EDUCATION PROGRAM.

       (a) Definitions.--In this section:
       (1) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy, acting through the Director appointed under 
     subsection (c).
       (3) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (b) Establishment.--The Secretary shall establish and carry 
     out a program to awards grants, on a competitive basis, to 
     each consortium of institutions of higher education operating 
     in each of the regions established under subsection (d) to 
     conduct research, extension, and education programs relating 
     to the energy needs of the regions.
       (c) Director.--The Secretary shall appoint a Director to 
     carry out the program established under this section.
       (d) Grants.--
       (1) In general.--The Secretary shall use amounts made 
     available under this section to award grants, on a 
     competitive basis, to each consortium of institutions of 
     higher education located in each of at least 6 regions 
     established by the Secretary that, collectively, cover all 
     States.
       (2) Manner of distribution.--
       (A) In general.--Except as provided in subparagraph (B), in 
     making grants for a fiscal year under this section, the 
     Secretary shall award grants to each consortium of 
     institutions of higher education in equal amounts for each 
     region of not less than $50,000,000 for each region.
       (B) Territories and possessions.--The Secretary may adjust 
     the amount of grants awarded to a consortium of institutions 
     of higher education in a region under this section if the 
     region contains territories or possessions of the United 
     States.
       (3) Plans.--As a condition of an initial grant under this 
     section, a consortium of institutions of higher education in 
     a region shall submit to the Secretary for approval a plan 
     that--
       (A) addresses the energy needs for the region; and
       (B) describes the manner in which the proposed activities 
     of the consortium will address those needs.
       (4) Failure to comply with requirements.--If the Secretary 
     finds on the basis of a review of the annual report required 
     under subsection (g) or on the basis of an audit of a 
     consortium of institutions of higher education conducted by 
     the Secretary that the consortium has not complied with the 
     requirements of this section, the consortium shall be 
     ineligible to receive further grants under this section for 
     such period of time as may be prescribed by the Secretary.
       (e) Use of Funds.--
       (1) Competitive grants.--
       (A) In general.--A consortium of institutions of higher 
     education in a region that is awarded a grant under this 
     section shall use the grant to conduct research, extension, 
     and education programs relating to the energy needs of the 
     region, including--
       (i) the promotion of low-carbon clean and green energy and 
     related jobs that are applicable to the region;
       (ii) the development of low-carbon green fuels to reduce 
     dependency on oil;
       (iii) the development of energy storage and energy 
     management innovations for intermittent renewable 
     technologies; and

[[Page S5714]]

       (iv) the accelerated deployment of efficient-energy 
     technologies in new and existing buildings and in 
     manufacturing facilities.
       (B) Administration.--
       (i) In general.--Subject to clauses (ii) through (vi), the 
     Secretary shall make grants under this paragraph in 
     accordance with section 989 of the Energy Policy Act of 2005 
     (42 U.S.C. 16353).
       (ii) Priority.--A consortium of institutions of higher 
     education in a region shall give a higher priority to 
     programs that are consistent with the plan approved by the 
     Secretary for the region under subsection (d)(3).
       (iii) Term.--A grant awarded to a consortium of 
     institutions of higher education under this section shall 
     have a term that does not exceed 5 years.
       (iv) Cost-sharing requirement.--As a condition of receiving 
     a grant under this paragraph, the Secretary shall require the 
     recipient of the grant to share costs relating to the program 
     that is the subject of the grant in accordance with section 
     988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).
       (v) Buildings and facilities.--Funds made available for 
     grants under this section shall not be used for the 
     construction of a new building or facility or the 
     acquisition, expansion, remodeling, or alteration of an 
     existing building or facility (including site grading and 
     improvement and architect fees).
       (vi) Limitation on indirect costs.--A consortium of 
     institutions of higher education may not recover the indirect 
     costs of using grants under subparagraph (A) in excess of the 
     limits established under paragraph (2).
       (C) Federally funded research and development centers.--
       (i) In general.--A federally funded research and 
     development center may be a member of a consortium of 
     institutions of higher education that receives a grant under 
     this section.
       (ii) Scope.--The Secretary shall ensure that the scope of 
     work performed by a single federally funded research and 
     development center in the consortium is not more significant 
     than the scope of work performed by any of the other academic 
     institutions of higher education in the consortium.
       (2) Administrative expenses.--A consortium of institutions 
     of higher education may use up to 15 percent of the funds 
     described in subsection (d) to pay administrative and 
     indirect expenses incurred in carrying out paragraph (1), 
     unless otherwise approved by the Secretary.
       (f) Grant Information Analysis Center.--A consortium of 
     institutions of higher education in a region shall maintain 
     an Energy Analysis Center at 1 or more of the institutions of 
     higher education to provide the institutions of higher 
     education in the region with analysis and data management 
     support.
       (g) Annual Reports.--Not later than 90 days after the end 
     of each fiscal year, a consortium of institutions of higher 
     education receiving a grant under this section shall submit 
     to the Secretary a report that describes the policies, 
     priorities, and operations of the program carried out by the 
     consortium of institutions of higher education under this 
     section during the fiscal year.
       (h) Administration.--Not later than 180 days after the date 
     of enactment of this Act, the Secretary shall establish such 
     criteria and procedures as are necessary to carry out this 
     section.
       (i) Coordination.--The Secretary shall coordinate with the 
     Secretary of Agriculture and the Secretary of Commerce each 
     activity carried out under the program under this section--
       (1) to avoid duplication of efforts; and
       (2) to ensure that the program supplements and does not 
     supplant--
       (A) the Sun Grant program established under section 7526 of 
     the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 
     8114); and
       (B) the national Sea Grant college program carried out by 
     the Administrator of the National Oceanic and Atmospheric 
     Administration.
       (j) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out--
       (1) this section $300,000,000 for each of fiscal years 2010 
     through 2014; and
       (2) the activities of the Department of Energy (including 
     biomass and bioenergy feedstock assessment research) under 
     the Sun Grant program established under section 7526 of the 
     Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8114) 
     $15,000,000 for each of fiscal years 2010 through 2014.

                                S. 1097

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Community College Energy 
     Training Act of 2009''.

     SEC. 2. SUSTAINABLE ENERGY TRAINING PROGRAM FOR COMMUNITY 
                   COLLEGES.

       (a) Definition of Community College.--In this Act, the term 
     ``community college'' means an institution of higher 
     education, as defined in section 101(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1001(a)), that--
       (1) provides a 2-year program of instruction for which the 
     institution awards an associate degree; and
       (2) primarily awards associate degrees.
       (b) Workforce Training and Education in Sustainable 
     Energy.--From funds made available under subsection (d), the 
     Secretary of Energy, in coordination with the Secretary of 
     Labor, shall carry out a joint sustainable energy workforce 
     training and education program. In carrying out the program, 
     the Secretary of Energy, in coordination with the Secretary 
     of Labor, shall award grants to community colleges to provide 
     workforce training and education in industries and practices 
     such as--
       (1) alternative energy, including wind and solar energy;
       (2) energy efficient construction, retrofitting, and 
     design;
       (3) sustainable energy technologies, including chemical 
     technology, nanotechnology, and electrical technology;
       (4) water and energy conservation;
       (5) recycling and waste reduction; and
       (6) sustainable agriculture and farming.
       (c) Award Considerations.--Of the funds made available 
     under subsection (d) for a fiscal year, not less than one-
     half of such funds shall be awarded to community colleges 
     with existing (as of the date of the award) sustainability 
     programs that lead to certificates or degrees in 1 or more of 
     the industries and practices described in paragraphs (1) 
     through (6) of subsection (b).
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000 for 
     each of the fiscal years 2010 through 2015.

                                S. 1098

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``EnergySmart Transport 
     Corridors Act of 2009''.

     SEC. 2. ENERGYSMART TRANSPORT CORRIDORS PROGRAM.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Interstate system.--The term ``Interstate System'' has 
     the meaning given the term in section 101(a) of title 23, 
     United States Code.
       (3) Program.--The term ``Program'' means the EnergySmart 
     Transport Corridor program established under subsection (b).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (b) Establishment.--Not later than 120 days after the date 
     of enactment of this Act, the Secretary, in consultation with 
     the Administrator, shall establish an EnergySmart Transport 
     Corridor program in accordance with this section.
       (c) Requirements.--In carrying out the Program, the 
     Secretary shall coordinate the planning and deployment of 
     measures that will increase the energy efficiency of the 
     Interstate System and reduce the emission of greenhouse gases 
     and other environmental pollutants, including by--
       (1) increasing the availability and standardization of 
     anti-idling equipment;
       (2) increasing the availability of alternative, low-carbon 
     transportation fuels;
       (3) coordinating and adjusting vehicle weight limits for 
     both existing and future highways on the Interstate System;
       (4) coordinating and expanding intermodal shipment 
     capabilities;
       (5) coordinating and adjusting time of service 
     restrictions; and
       (6) planning and identifying future construction within the 
     Interstate System.
       (d) Designation of Corridors.--
       (1) In general.--The Secretary, in consultation with the 
     Administrator and with the concurrence of the Governors of 
     the States in which EnergySmart transport corridors are to be 
     located, and in consultation with the appropriate advisory 
     committees established under paragraph (3), shall designate 
     EnergySmart transport corridors in accordance with the 
     requirements described in subsection (c).
       (2) Intermodal facilities and other surface transportation 
     modes.--In designating EnergySmart transport corridors, the 
     Secretary may include--
       (A) intermodal passenger and freight transfer facilities, 
     particularly those that use measures to significantly 
     increase the energy efficiency of the Interstate System and 
     reduce greenhouse gas emissions and other environmental 
     pollutants; and
       (B) other surface transportation modes.
       (3) Advisory committees.--
       (A) In general.--The Secretary, in consultation with the 
     Governors of the States in which EnergySmart transport 
     corridors are to be located, may establish advisory 
     committees to assist in the designation of individual 
     EnergySmart transport corridors.
       (B) Membership.--The advisory committees established under 
     this paragraph shall include representatives of interests 
     affected by the designation of EnergySmart transport 
     corridors, including--
       (i) freight and trucking companies;
       (ii) vehicle and vehicle equipment manufacturers and 
     retailers;
       (iii) independent owners and operators;
       (iv) conventional and alternative fuel providers; and
       (v) local transportation, planning, and energy agencies.
       (e) Priority.--In allocating funds for Federal highway 
     programs, the Secretary shall give special consideration and 
     priority to projects and programs that enable deployment and 
     operation of EnergySmart transport corridors.
       (f) Grants.--In carrying out the Program, the Secretary may 
     provide grants to States to assist in the planning, 
     designation, development, and maintenance of EnergySmart 
     transport corridors.

[[Page S5715]]

       (g) Annual Report.--Each fiscal year, the Secretary shall 
     submit to the appropriate committees of Congress a report 
     describing activities carried out under the Program during 
     the preceding fiscal year.
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $25,000,000 for each of fiscal years 2010 through 2015.

     SEC. 3. REDUCTION OF ENGINE IDLING.

       Section 756(b)(4)(B) of the Energy Policy Act of 2005 (42 
     U.S.C. 16104(b)(4)(B)) is amended by striking ``for fiscal 
     year 2008'' each place it appears in clauses (i) and (ii) and 
     inserting ``for each of fiscal years 2008 through 2015''.
                                 ______