II
111th CONGRESS
1st Session
S. 774
IN THE SENATE OF THE UNITED STATES
April 1, 2009
Mr. Dorgan (for himself and Mr. Voinovich) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To enhance the energy security of the United States by diversifying energy sources for onroad transport, increasing the supply of energy resources, and strengthening energy infrastructure, and for other purposes.
Short title; table of contents
Short title
This Act may be cited
as the National Energy Security Act of
2009
or the NESA of 2009
.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definition of Secretary.
DIVISION A—Transmission and transportation
TITLE I—Electricity transmission
Sec. 101. Siting of interstate electric transmission facilities.
Sec. 102. Recovery of costs for smart grid technology and advanced materials.
TITLE II—Transportation sector
Subtitle A—Electrification of transportation sector
Sec. 201. Minimum Federal fleet requirement.
Sec. 202. Use of HOV facilities by light-duty plug-in electric drive vehicles.
Sec. 203. Recharging infrastructure.
Sec. 204. Loan guarantees for advanced battery purchases.
Sec. 205. Study of end-of-useful life options for motor vehicle batteries.
Subtitle B—Medium- and heavy-duty vehicles
Sec. 211. Maximum weight study.
Sec. 212. Fuel economy.
Subtitle C—Alternative transportation technologies
Sec. 221. Flexible fuel automobiles.
Sec. 222. Transportation roadmap study.
DIVISION B—Domestic production and workforce development
TITLE I—Increasing supply
Subtitle A—Increasing production from domestic resources
Sec. 300. Amendment of 1986 Code.
Part I—Investment in renewable energy
Sec. 301. Extension of renewable electricity production credit.
Sec. 302. Expansion and extension of new clean renewable energy bonds.
Sec. 303. Extension of investment tax credit for certain energy property.
Sec. 304. Increase in credit for investment in advanced energy facilities.
Part II—Investment in alternative fuel property
Sec. 311. Extension of credits for alcohol fuels.
Sec. 312. Extension of credits for biodiesel and renewable diesel.
Part III—Investment in electric drive and advanced vehicles
Sec. 321. Extension of credit and extension of temporary increase in credit for alternative fuel vehicle refueling property.
Sec. 322. Extension and expansion of credit for new qualified plug-in electric drive motor vehicles.
Sec. 323. Extension of credit for certain plug-in electric vehicles.
Sec. 324. Extension of credit for medium and heavy duty hybrid vehicles.
Sec. 325. Credit for heavy duty natural gas vehicles.
Part IV—Low carbon loan guarantee program
Sec. 331. Innovative low-carbon loan guarantee program.
Part V—Investment in ethanol
Sec. 341. Research and development of fungible biofuels.
Part VI—Studies on market penetration of renewable resources
Sec. 351. Studies on market penetration of renewable resources.
Subtitle B—Increasing production from fossil resources
Part I—Outer Continental Shelf
Sec. 361. Inventory of outer Continental Shelf oil and gas resources.
Sec. 362. Leasing of offshore areas estimated to contain commercially recoverable oil or gas resources.
Sec. 363. Environmental stewardship and allowable activities.
Sec. 364. Moratorium of oil and gas leasing in certain areas of the Gulf of Mexico.
Sec. 365. Treatment of revenues.
Part II—Other fossil resources
Sec. 371. Authorization of activities and exports involving hydrocarbon resources.
Sec. 372. Travel in connection with authorized hydrocarbon exploration and extraction activities.
Sec. 373. Alaska OCS joint lease and permitting processing office.
Sec. 374. Alaska Natural Gas Pipeline.
TITLE II—Clean energy technology workforce development
Sec. 401. Clean energy technology workforce.
DIVISION C—Global risk management
Sec. 501. Sense of Congress on geopolitical consequences of oil dependence.
Sec. 502. Study of foreign fuel subsidies.
Findings
Congress finds that—
high and volatile international oil prices represent an unsustainable threat to the economic and national security of the United States; and
approximately 40 percent of the primary energy demand of the United States is met by petroleum, the price for which is set in a fungible and opaque international market vulnerable to geopolitical instability and increasingly complex barriers to investment;
it should be the goal of the United States to reduce the oil intensity (the number of barrels of oil required to generate $1 of gross domestic product) of the national economy from 2008 levels by at least 50 percent by calendar year 2030 and by at least 80 percent by calendar year 2050; and
reduced oil intensity is a primary means for improving the resilience of the economy to high and volatile international oil prices;
the transportation sector of the United States is critical to breaking the oil dependence of the United States because the transportation sector—
accounts for nearly 70 percent of total national oil consumption;
is 97 percent reliant on petroleum for the delivered energy needs of the sector; and
remains an industry of vital national significance and importance;
electrification of short-haul transportation represents a likely pathway to reduced oil dependence;
electrified ground transport—
promotes fuel diversity because the electric power sector uses a diverse range of feedstocks; and
relies on a portfolio of fuels that are largely domestic and have prices that are generally less volatile than oil; and
electricity prices are generally stable relative to oil because the price of fuel in the electric power sector is a small portion of the cost of delivered energy;
electrification of transportation will require a more modern, technologically advanced national electric power system that draws on a variety of location-constrained generation sources sited in a range of geographic areas; and
a national transmission system that efficiently delivers power across long distances to load centers should be a high priority;
widespread deployment of electric vehicles and supporting infrastructure is a long-term process that will require a national commitment over many years;
in the interim, steps can be taken to minimize the danger that oil dependence poses to the economic and national security of the United States; and
it is critical to—
support the continued growth of the domestic biofuels industry;
foster domestic production of conventional fuels for which infrastructure and technology exist; and
support deployment of additional renewable, cleaner fossil, and nuclear generating capacity for providing the necessary low emissions, reliable, and dispatchable power that is essential for the electricity supply of the United States;
a robust, dynamic, and diverse biofuels industry is an important component of a secure United States liquid fuels system; and
a stable market for biofuels, including widespread deployment of flexible fuel vehicles, can reduce oil consumption as the United States transitions to electrified ground transport;
domestic production of oil and natural gas from the Outer Continental Shelf of the United States is a safe and secure means for increasing energy security in the near-term;
high oil import levels in the United States present an added threat to the economy in addition to general price volatility; and
in 2008, the United States net deficit in petroleum trade amounted to more than $380,000,000,000, or nearly 60 percent of the total trade deficit;
a highly skilled, well trained, and adaptable workforce is vital to the economic and energy security of the United States; and
addressing the twin challenges of energy security and global climate change now and in the future will require the United States to use all instruments of national power, including the military and diplomatic and intelligence services;
the United States must develop short-term policies and strategies that—
protect key energy infrastructure;
secure critical geographic transit areas;
mitigate political instability from energy suppliers; and
strengthen the domestic industrial base required for the development and widespread implementation of clean energy technologies; and
over the long-term, the United States must focus national security organizations on gaining greater clarity on world reserves of energy and strengthening relationships with certain key nations.
Definition of Secretary
In this Act, the term Secretary means the Secretary of Energy.
Transmission and transportation
Electricity transmission
Siting of interstate electric transmission facilities
Section 216 of the Federal Power Act (16 U.S.C. 824p) is amended—
by striking subsections (a) through (g) and inserting the following:
Definitions
In this section:
Beneficiary
The term beneficiary means a wholesale or retail customer, market participant, or other entity that benefits from a transmission upgrade, enhancement, or expansion under a regional transmission plan, including an economic benefit, improvement in service reliability, or reduction in greenhouse gas emissions.
Clean energy superhighway
The term Clean Energy Superhighway means the interstate extra-high voltage transmission grid overlay established under this section.
Clean Energy Superhighway facility
The term Clean Energy Superhighway facility means an overhead or underground transmission facility of the Clean Energy Superhighway included in a plan certified under subsection (b)(9) (including conductors, cables, towers, manhole duct systems, phase shifting transformers, reactors, capacitors, and any ancillary facilities and equipment necessary for the proper operation of the facility) that—
operates at or above a voltage of 345 kilovolt alternating current;
operates at or above a voltage of 400 kilovolts direct current;
is a renewable feeder line that transmits electricity directly or indirectly to the Clean Energy Superhighway; or
is a necessary upgrade to an existing transmission facility.
Grid-enabled vehicle
The term grid-enabled vehicle means an electric drive vehicle, electric hybrid vehicle, or fuel cell vehicle that has the ability to communicate electronically with an electric power provider or localized energy storage system to charge or discharge an on-board energy storage device, such as a battery.
Interconnection
The term Interconnection has the meaning given the term in section 215(a).
Load-serving entity
The term load-serving entity means any person, Federal, State, or local agency or instrumentality, public utility, or electric cooperative (including an entity described in section 201(f)) that delivers electric energy to end-use customers.
Location-constrained resource
In general
The term location-constrained resource means a low-carbon resource used to produce electricity that is geographically constrained such that the resource cannot be relocated to an existing transmission line.
Inclusions
The term location-constrained resource includes the following types of resources described in subparagraph (A):
Renewable energy.
A fossil fuel electricity plant equipped with carbon capture technology that is located at a site that is appropriate for carbon storage or beneficial reuse.
Renewable energy
The term renewable energy means electric energy generated from—
solar energy, wind, landfill gas, renewable biogas, or geothermal energy;
new hydroelectric generation capacity achieved from increased efficiency, or an addition of new capacity, at an existing nonhydroelectric project if—
the hydroelectric project installed on the nonhydroelectric dam—
is licensed by the Commission; and
meets all other applicable environmental, licensing, and regulatory requirements, including applicable fish passage requirements;
the nonhydroelectric dam—
was placed in service before the date of enactment of the National Energy Security Act of 2009;
was operated for flood control, navigation, or water supply purposes; and
did not produce hydroelectric power as of the date of enactment of the National Energy Security Act of 2009; and
the hydroelectric project is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license requirements imposed under applicable law that change the water surface elevation for the purpose of improving the environmental quality of the affected waterway, as certified by the Commission;
hydrokinetic energy, including—
waves, tides, and currents in oceans, estuaries, and tidal areas;
free flowing water in rivers, lakes, and streams;
free flowing water in man-made channels, including projects that use nonmechanical structures to accelerate the flow of water for electric power production purposes; or
differentials in ocean temperature through ocean thermal energy conversion; or
electricity that is generated from the combustion of the biogenic portion of municipal solid waste materials from facilities that comply with the maximum pollutant emissions standards established by the Administrator of the Environmental Protection Agency.
Renewable feeder line
In general
The term renewable feeder line means an electricity transmission line that—
operates at or above 100 kilovolts alternating current;
connects 1 or more renewable energy generators directly or indirectly to the Clean Energy Superhighway; and
is identified in the Clean Energy Superhighway plan certified under subsection (b)(9).
Inclusion
The term renewable feeder line includes an upgrade to an existing transmission line necessary for interconnection to a new transmission line described in subparagraph (A).
Secretary
The term Secretary means the Secretary of Energy.
State
The term State means—
a State; and
the District of Columbia.
Planning
Purpose
The purpose of this subsection is to plan for a Clean Energy Superhighway that—
expands and modernizes the electrical transmission grid of the United States to meet the goals of increasing energy security and protecting the environment;
integrates location-constrained resources, including renewable and low-carbon electricity generation;
improves delivery of electricity from location-constrained resources to load centers;
ensures sufficient transmission capacity for future demand growth, including energy efficiency, distributed generation and storage, and demand response resources;
integrates smart grid technologies;
enhances the reliability and efficiency of the electrical transmission grid;
relieves congestion on the electrical transmission grid;
plans, to the maximum extent practicable, for at least 50 percent of light-duty vehicles used in the United States by calendar year 2030 to be light-duty grid-enabled vehicles;
meets any renewable electricity standard established by law; and
provides the lowest-cost delivered energy to markets.
Planning requirement
In general
Requirement
Not later than 90 days after the date of enactment of the National Energy Security Act of 2009, the Commission shall promulgate regulations consistent with this section for—
the operation, composition, and selection of the regional planning authorities; and
the contents of, and certification requirements for, the regional plans produced by regional planning authorities.
Requirement
The Commission shall certify not less than 1, and not more than 4, regional planning authorities for each of the Eastern and Western Interconnections of the United States.
Clean Energy Superhighway
Each regional planning authority certified by the Commission shall participate in the development of the Clean Energy Superhighway.
Number of regional planning authorities
The Commission shall minimize, to the maximum extent practicable, the number of regional planning authorities in the Eastern and Western Interconnections while ensuring that the entire domestic footprint of the Interconnections is covered.
Certification of regional planning authorities
In general
To be eligible to be certified as a regional planning authority for a region under this subsection, a regional planning organization shall apply to, and be approved by, the Commission.
Request for applications
Not later than 90 days after the date of enactment of National Energy Security Act of 2009, the Commission shall issue a request for from entities seeking to be certified as a regional planning authority for the Eastern or Western Interconnection.
Eligibility
In general
Any group of Regional Transmission Organizations, Independent System Operators, regional entities (as defined in section 215(a)), or other multistate organizations or entities may apply to be certified as a regional planning authority under this subsection.
State participation
An organization that applies for certification under subclause (I) shall invite the Governor or the designee of the Governor from each affected State and a representative from each affected Indian tribe to participate in the organization.
Minimum size
To be certified as a regional planning authority under this subparagraph, an organization shall represent a region that is of sufficient size—
to encompass generation resources that are sufficient to meet load requirements in the region, taking into account potential generation from location-constrained resources and projected load growth; and
to possess sufficient market scope to produce economic and operational efficiencies.
Planning principles
The Commission shall establish rules and procedures for the designation of regional planning authorities to ensure that the planning process proposed by an applicant—
is consistent with the purposes described in paragraph (1);
is open, transparent, and nondiscriminatory;
includes consultation with all affected Federal land management agencies, Indian tribes, and States within a region;
builds on planning undertaken by States, Indian tribes, Federal transmitting utilities, Regional Transmission Organizations, Independent System Operators, utilities, and others;
is developed in conformance with Commission requirements for planning using open access transmission tariffs;
solicits input from load-serving and wholesale entities, transmission owners and operators, renewable energy developers, environmental organizations, Indian tribes, and other interested parties;
includes an interim process to evaluate expeditiously whether new renewable feeder lines should be added to the plan; and
uses the best available information on resources, load, and demand projections.
Certification
In general
Except as provided in subclauses (II) and (III), not later than 90 days after the date on which the Commission issues a request for applications under clause (ii), the Commission shall certify at least 1 regional planning authority for each of the Eastern and Western Interconnections.
Insufficient application
Subclause (I) shall not apply if the Commission—
has not received an application from any entity in the applicable Interconnection; or
has received applications from entities that do not satisfy the criteria established by the Commission for a regional planning authority.
Commission responsibility
If the Commission does not receive sufficient applications as described in subclause (II) for any portion of an Interconnection, the Commission shall—
assume the responsibilities of a regional planning authority for the uncovered portion of the Interconnection; and
submit to Congress written notification of an intent to assume responsibility under this subclause at least 30 days before the date that responsibility is assumed.
Oversight of regional planning authorities
The Commission shall establish procedures to oversee certified regional planning authorities under this subsection.
Duties of Secretary
Resource assessments
In general
The Secretary shall conduct nationwide assessments to identify areas with a significant potential for the development of location-constrained resources.
Formats
The resource assessments shall be made available to the public in multiple formats, including in a Geographical Information System compatible format.
Timing
The Secretary shall—
make the initial resource assessment required under this subparagraph not later than 180 days after the date of enactment of the National Energy Security Act of 2009; and
refine the resource assessment on a regular basis that is consistent with regional planning cycles.
Technical assistance
The Secretary shall provide technical assistance to regional planning authorities, on request, to assist the authorities in carrying out this section.
Congestion studies
In general
The Secretary shall conduct or update a study of electric transmission congestion and report the results of the study to certified regional planning authorities to assist the authorities in carrying out this section.
Recent study
The Secretary shall ensure that a congestion study that is not more than 2 years old is available at the time regional planning authorities are certified by the Commission.
Updates
The Secretary shall update a congestion study at least once every 2 years, consistent with the planning cycle.
Planning process
In general
Once certified, a regional planning authority shall establish a regional or Interconnection-wide Clean Energy Superhighway plan that—
meets the purposes of this subsection; and
identifies necessary Clean Energy Superhighway facilities and transmission infrastructure that need to be added or upgraded to achieve the planned Clean Energy Superhighway.
Stakeholder involvement
In general
In carrying out this section, a regional planning authority shall establish a consultative public process that, to the maximum extent practicable, engages regional stakeholders, including—
public service commissions and other relevant State agencies;
load-serving entities and wholesale entities that provide transmission and power supply services;
representatives of the retail customers of the load-serving entities;
transmission owners and operators;
utilities and merchant generators;
renewable energy developers;
environmental organizations;
Indian tribes;
Federal land use agencies; and
other interested parties.
Criteria
A regional planning authority shall encourage stakeholders, to the maximum extent practicable, to provide input to establish criteria based on paragraphs (1) and (2)(B)(iv) to create a Clean Energy Superhighway plan.
Public meetings
A regional planning authority shall provide notice and hold public meetings to solicit public input in carrying out this subsection.
Planning
Not later than 1 year after the certification of a regional planning authority under this subsection, the certified regional planning authority shall submit to the Commission for approval a Clean Energy Superhighway plan that—
evaluates potential location-constrained resources;
provides for long-term planning for both the 10 year- and 20 year-horizons, that takes into account future demand growth and reasonable models of future generation growth, including energy efficiency, demand response, and distributed storage and generation;
establishes (in consultation with Federal and State land agencies, environmental groups, and Indian tribes) appropriate areas to be avoided in siting of Clean Energy Superhighway facilities, to the maximum extent practicable, including—
national parks, national marine sanctuaries, reserves, recreation areas, and other similar units of the National Park System;
designated wilderness, designated wilderness study areas, and other areas managed for wilderness characteristics;
national historic sites and historic parks;
inventoried roadless areas and significant noninventoried roadless areas within the National Forest System;
national monuments;
national conservation areas;
national wildlife refuges and areas of critical environmental concern;
national historic and national scenic trails;
areas designated as critical habitat;
national wild, scenic, and recreational rivers;
any area in which Federal law prohibits energy development; and
any area in which applicable State law or Indian tribal code enacted prior to the date of enactment of the National Energy Security Act of 2009 prohibits transmission development;
identifies the transmission infrastructure to be included as Clean Energy Superhighway facilities, taking into consideration—
that, to the maximum extent practicable—
areas with the potential for the development of location-constrained resources shall be connected to the Clean Energy Superhighway;
load centers shall be connected to the Clean Energy Superhighway; and
areas in subparagraph (C) shall be avoided by the Clean Energy Superhighway; and
all other relevant factors;
performs necessary engineering analyses;
permits persons to propose to the regional planning authority Clean Energy Superhighway facilities to meet the needs identified in the long-term plan of the regional planning authority; and
considers staging of projects, including the logical order of building and construction timelines.
Allowance of waivers for certain lines
A regional planning authority may petition the Commission to allow the inclusion of 230 kilovolt lines in an approved plan if the regional planning authority demonstrates to the Commission that unique regional conditions exist that require a lower voltage line.
Multiple regional planning authorities
In general
If more than 1 regional planning authority is certified in an Interconnection, the regional planning authorities in the Interconnection shall ensure that the submitted plan integrates with the other plans in the Interconnection.
Modification
The Commission shall modify the plans submitted under paragraph (9)(B), as necessary, to ensure that plans established under this section are integrated.
Coordination
In the development of a Clean Energy Superhighway plan, a regional planning authority shall coordinate, as appropriate, with planning authorities and other interested parties in Canada, Mexico, the Electric Reliability Council of Texas, and other Interconnections.
National plan certification
In general
The Commission shall determine whether the plans submitted by the regional planning authorities under this subsection carry out the purposes of this section.
Administration
Public comment
The Commission shall provide an opportunity for public comment on each plan submitted by a regional planning authority.
Modifications
In general
The Commission may modify or reject a plan as necessary to achieve the purposes of this section.
Opinion
If the Commission modifies or rejects a plan, not later than 60 days after the date the plan is submitted by the regional planning authority, the Commission shall provide a written opinion to the regional planning authority that contains the facts and reasons supporting the action of the Commission.
Resubmission
Subject to paragraph (10)(A)(iii), if the Commission rejects a plan, the regional planning authority may submit a revised plan within 90 days of the Commission’s rejection.
Certification
If the Commission determines that a plan meets the purposes of this section, the Commission shall certify the plan for establishing a Clean Energy Superhighway.
Best practices
The Commission shall—
conduct regular reviews of best practices in planning under this subsection; and
make available and use those best practices in carrying out this subsection.
Timing
Implementation
In general
Not later than 1 year after the date of certification by the Commission, a regional planning authority shall complete the planning process required under this section.
Withholding of planning funds
If the Commission has not received a plan from a regional planning authority by the date that is 1 year after the date of the certification of the regional planning authority by the Commission, the Commission shall—
determine the cause for the delay; and
inform the Secretary, who may withhold future planning funds from the regional planning authority under this subsection, if the Commission determines that the process of the regional planning authority is not sufficiently implementing this subsection.
Assumption of planning responsibility
If the Commission has not certified the regional plan for a region by the date that is 18 months after the date of the certification of the regional planning authority by the Commission, the Commission shall assume the responsibility for creating a regional plan for the region consistent with the planning process established under paragraph (4).
Notification
The Commission shall submit to Congress written notification of an intent to assume responsibility under clause (iii) at least 30 days before the date that responsibility is assumed.
Updates
Not later than 2 years after the initial establishment of a plan under this section and every 2 years thereafter, a regional planning authority shall (in accordance with procedures required for the initial establishment of a plan) review and (as necessary) modify the plan established under this section to ensure that the plan promotes the purposes of this section.
Recovery of costs associated with Interconnection-wide transmission grid project planning
In general
A regional planning authority and a participating State shall be permitted to recover prudently incurred costs to carry out the planning activities required under this subsection pursuant to a Federal transmission surcharge that will be established by the Commission for the purposes of carrying out this section.
Surcharge
A regional planning authority shall—
establish a Federal transmission surcharge based on a formula rate that is submitted to the Commission for approval; and
adjust the formula and surcharge on an annual basis.
Cost responsibility
Cost responsibility under each surcharge shall be assigned based on energy usage to all load-serving entities within each regional planning authority.
Limitation
The total amount of surcharges that may be imposed or collected nationally under this paragraph shall not exceed $80,000,000 for any calendar year.
Other funds
Funds made available for transmission planning under the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) may be used to carry out this subsection.
Cost allocation
Purposes
The purposes of this subsection are—
to ensure that the costs of the Clean Energy Superhighway are borne widely by all beneficiaries of new transmission and are not borne disproportionately by ratepayers or generators in specific areas; and
to promote the national interest in an Clean Energy Superhighway in accordance with the purposes of this part.
Submission
Not later than 1 year after the date of the certification of the last regional planning authority, all regional planning authorities within an Interconnection may submit jointly a single integrated Interconnection-wide cost allocation proposal to the Commission for allocating the costs of Clean Energy Superhighway facilities under this section.
Action by Commission
Not later than 120 days after the date of receipt of a cost-allocation plan submitted under paragraph (2), the Commission shall—
provide notice and an opportunity for a hearing;
evaluate the plan; and
approve the plan if the Commission finds that the plan results in just and reasonable rates that promote the purposes of this section (including this subsection); or
reject or modify the plan if the Commission finds that the plan does not result in just and reasonable rates that promote the purposes of this section (including this subsection).
Resubmission of plan
In general
If the Commission rejects the cost allocation plan under paragraph (3)(C)(ii), the Commission shall give guidance to the regional planning authorities on remediation measures.
Resubmission
Not later than 90 days after the date of the rejection, the regional planning authorities may submit to the Commission a revised cost allocation plan for the region under this subsection.
Modifications
In general
Not later than 60 days after the date of resubmission of a cost-allocation plan, the Commission shall approve, modify, or reject the plan as necessary to achieve the purposes of this section.
Opinion
If the Commission modifies or rejects a plan, not later than 60 days after the date the plan is resubmitted by the regional planning authority, the Commission shall provide a written opinion to the regional planning authority that contains the facts and reasons supporting the action of the Commission.
Commission allocation of costs
If the regional planning authorities do not submit an Interconnection-wide cost allocation plan within the time periods specified in paragraphs (2) and (4) or if the Commission does not approve a cost allocation plan submitted by the regional planning authorities for an Interconnection, the Commission shall allocate the costs of new transmission in the region under this section to all of the load-serving entities in the Interconnection on a load-ratio share basis.
Implementation
In general
The Commission shall adopt such rules, require inclusion of such provisions in transmission tariffs, and take such other actions as are necessary to efficiently—
collect the costs for development and operation of Clean Energy Superhighway facilities; and
distribute the resultant revenues to owners of the facilities.
Transmission customer
The rules or tariffs may consider each load-serving entity in an Interconnection to be a transmission customer under 1 or more of the tariffs established for collection of the costs for development and operation of Clean Energy Superhighway facilities.
Siting
Purposes
The purpose of the integrated siting process provided for in this subsection is to provide an efficient and timely certification process that ensures participation of Federal land management agencies, States, and Indian tribes, and the appropriate protection of resources, in siting applications before the Commission.
Prefiling
In general
Not later than 180 days after the date of enactment of the National Energy Security Act of 2009, the Commission shall promulgate regulations to implement an integrated prefiling process for the preparation of an application for the certification of a Clean Energy Superhighway facility.
Preapplication information
In general
The regulations for the prefiling process shall include the appropriate information required for the Commission to determine if the proposed facility is included in the Clean Energy Superhighway plan certified by the Commission under subsection (b)(9).
Steps
The regulations shall establish a list of steps that shall be completed before submitting an application for a certificate, including the steps required under this subparagraph.
Notice of intent to apply
The applicant shall submit to the Commission a notice of intent to apply for a Clean Energy Superhighway certificate that includes a preliminary routing plan.
Determination of inclusion in plan
The Commission shall determine whether the proposed facility is included in a Clean Energy Superhighway plan certified under subsection (b)(9).
Notification
The Commission shall provide notice to the public, affected States, Federal land agencies, and Indian tribes of a notice of any intent to apply for a certificate.
Prefiling schedule
The Commission shall establish a prefiling schedule for the applicant, agencies, and Indian tribes.
State siting constraints
The applicant shall consider the State siting constraints identified under paragraph (3).
Consultation
The applicant shall consult with affected States, Federal land agencies, and Indian tribes in carrying out this subsection
Early scoping process
The Commission shall conduct an early scoping process that is consistent with the terms and conditions of section 5.8 of title 18, Code of Federal Regulations (or a successor section), as determined by the Commission.
Consolidated record
The Commission shall create and maintain a consolidated record for all decisions made or actions taken by the Commission or by a Federal, State, Indian tribe administrative agency, or officer under this subsection.
Siting dispute resolution board
The Commission shall establish a siting dispute resolution board that is consistent with the terms and conditions of section 5.14 of title 18, Code of Federal Regulations and paragraph (3)(B), as determined by the Commission.
Certificate of public convenience and necessity
An applicant shall comply with the prefiling process established under this paragraph before filing an application for a certificate of public convenience and necessity with the Commission.
State siting constraints
State agency
In general
The Governor of a State in which a Clean Energy Superhighway facility is proposed pursuant to paragraph (2) shall designate the appropriate State agency to coordinate with the Commission on siting.
Siting constraints and mitigation measures
In general
Applicants shall work with affected States in the prefiling process described in paragraph (2).
Designated State agency
At the conclusion of the prefiling process, the designated State agency may identify and communicate to the applicant and the Commission information on siting constraints and mitigation measures (including habitat protection, environmental considerations, cultural site protection, or other factors) for a Clean Energy Superhighway facility within the State.
Siting dispute resolution board
In general
During the prefiling process for each Clean Energy Superhighway facility application, the Commission shall establish a siting dispute resolution board to ensure appropriate siting within and across the borders of the State.
Composition
The board for a Clean Energy Superhighway facility shall be composed of—
1 representative of the Commission, who is not otherwise involved in the applicable proceeding;
1 representative of each affected State, as designated by the Governor, and who is not otherwise involved in the proceeding; and
1 independent person with expertise in the area, selected by the other 2 panelists from a preestablished list of individuals who have that expertise (as established by the Commission).
Appeals
If the applicant does not agree with the siting constraints and mitigation measures proposed by a State, the applicant may appeal the constraints and measures to the appropriate siting dispute resolution board.
Decision
The board shall—
make a decision on any appeal made under clause (iii); and
submit to the Commission a recommendation for final dispute resolution.
Federal action
In general
The Commission shall incorporate State siting constraints and mitigation measures in the certificate issued under paragraph (9), unless the Commission finds that any recommendation referred to in subparagraph (A) (based on the recommendation of the applicable sitting dispute resolution board) is inconsistent with the purposes and requirements of this section or other applicable Federal law.
Findings
If (after any proceedings of a siting dispute resolution board) the Commission does not adopt in whole or in part a recommendation of the State agency, the Commission shall publish (together with a description of the basis for each finding)—
a finding that adoption of the recommendation of the siting dispute resolution board is inconsistent with the purposes and requirements of this section or with other applicable provisions of Federal law; or
a finding that adopts the recommendations of the siting dispute resolution board conditions selected by the Commission comply with the State siting constraints and mitigation measures described in subparagraph (A).
Federal authority
In general
Except as otherwise provided in this subsection, the Commission shall have exclusive jurisdiction over the granting of a certificate for the siting of a Clean Energy Superhighway facility.
Rights of way
In general
The Secretary of the Interior shall provide a route for a Clean Energy Superhighway facility on public land in accordance with the terms and conditions of agency land use plans.
Indian land
In carrying out this subparagraph, the Secretary of the Interior shall use the process established under the terms and conditions of section 2604 of the Energy Policy Act of 1992 (25 U.S.C. 3504) and the Act of February 5, 1948 (25 U.S.C. 323 et seq.) (including applicable regulations) to establish a right-of-way for a Clean Energy Superhighway on Indian land, as determined by the Secretary of the Interior.
Connection of individual lines
The Commission shall work with the Secretary of the Interior to ensure that the routing of an individual line across public and private land is appropriately connected.
Schedule
In general
The Commission shall establish a schedule for all Federal authorizations under this subsection.
Administration
In establishing the schedule, the Commission shall—
ensure expeditious completion of all such proceedings; and
comply with applicable schedules established by Federal law.
Existing corridors
A route for a Clean Energy Superhighway facility shall, to the maximum extent practicable, use existing corridors, including multiuse and highway corridors.
Environmental protection
In general
Except as otherwise specifically provided in this section, nothing in this section affects any requirements of an environmental law of the United States, including the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Environmental review of individual lines
In the case of a Clean Energy Superhighway facility, the Commission shall—
serve as lead agency for the purposes of coordinating the environmental review that is required by law between all relevant Federal agencies;
in consultation with the affected Federal and State agencies and Indian tribes, prepare a single environmental review document as required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
in the case of a line that traverses Federal land, take any action that is required under the terms and conditions of applicable land use plans.
Deadline
The environmental reviews described in subparagraph (B) shall be completed not later than 1 year after date of application for a certificate.
Memorandum of understanding
Not later than 1 year after the date of enactment of the National Energy Security Act of 2009, the Commission shall enter into a memorandum of understanding with all applicable Federal land agencies to create a streamlined and consolidated environmental review process to carry out this section.
Certificate of public convenience and necessity
In general
No individual or entity (including States and entities described in subsection (f)) shall construct, acquire, or operate any Clean Energy Superhighway facility, or modify a Clean Energy Superhighway facility for which a certificate was previously issued under this subsection, unless there is in force with respect to the individual or entity a certificate of public convenience and necessity issued by the Commission authorizing such acts or operation.
Application for certificate
Any individual or entity that seeks to operate, construct, acquire, or modify any Clean Energy Superhighway facility shall—
complete the prefiling process under paragraph (2);
submit to the Commission a written application in such form and containing such information as the Commission may by regulation require; and
provide notice of and opportunity for hearing on the application to interested parties in such manner as the Commission shall by regulation require.
Hearing
On receipt of an application under this paragraph, the Commission—
shall—
provide notice and opportunity to interested persons; and
include any applicable conditions; and
may approve or disapprove the application, in accordance with paragraph (9).
Grant of certificate
In general
A certificate shall be issued to a qualified applicant for the certificate authorizing the whole or partial operation, construction, acquisition, or modification covered by the application, only if the Commission determines that—
the facility is included in the Clean Energy Superhighway plan certified by the Commission;
1 or more applicants are able and willing—
to carry out the acts and perform the service proposed; and
to comply with this Act (including regulations); and
the proposed operation, construction, acquisition, or modification, to the extent authorized by the certificate, is or will be required by the present or future public convenience and necessity.
Terms and conditions
The Commission shall have the power to attach to the issuance of a certificate under this paragraph and to the exercise of the rights granted under the certificate such reasonable terms and conditions as the public convenience and necessity may require, including (as may be required by applicable law) land use plans or applicable rights-of-way.
Evaluation of abilities of applicant
In general
In evaluating the ability of 1 or more applicants described in subparagraph (A)(ii), the Commission shall consider whether the financial and technical capabilities of the applicant are adequate to support construction and operation of the project proposed in the application.
Joint ownership projects
In evaluating applications that feature joint ownership projects by multiple load-serving or wholesale entities, the Commission shall consider benefits from the greater diversification of financial risk inherent in the applications.
Public convenience and necessity
In making a determination with respect to public convenience and necessity described in subparagraph (A)(iii), the Commission shall presume that there is a public need for a proposed project that is included in the Clean Energy Superhighway plan developed pursuant to this section or that constitutes all of or a portion of a renewable feeder line.
Right of eminent domain
In general
If any holder of a certificate issued under paragraph (9) cannot acquire by contract, or is unable to agree with the owner of property on the compensation to be paid for, the right-of-way to construct, operate, and maintain the project to which the certificate relates, and the necessary land or other property necessary to the proper operation of the project, the holder may acquire the right-of-way by the exercise of the right of eminent domain through a proceeding in—
the United States district court for the district in which the property is located; or
a State court, to the extent permitted under State law.
Practice and procedure
The practice and procedure for any action or proceeding described in subparagraph (A) in a United States district court shall conform, to the maximum extent practicable, to the practice and procedure for similar actions or proceedings in the courts of the State in which the property is located.
;
by striking subsections (i), (j), and (k);
by redesignating subsection (h) as subsection (e);
in subsection (e) (as redesignated by paragraph (3))—
in paragraph (2),
by striking Department of Energy
and inserting Federal
Energy Regulatory Commission (referred to in this subsection as the
; andCommission
)
in paragraph (3),
by striking Secretary
and inserting Commission
;
and
by adding at the end the following:
Applicability
This section does not apply to the State of Alaska or Hawaii or to the Electric Reliability Council of Texas, unless the State or the Council voluntarily elects to be covered by this section.
Authorization of appropriations
There are authorized to be appropriated such sums are necessary to carry out this section.
.
Recovery of costs for smart grid technology and advanced materials
Section 219(b)(4) of the Federal Power Act (16 U.S.C. 824s(b)(4)) is amended—
in subparagraph
(A), by striking and
after the semicolon at the end;
in subparagraph (B), by striking the period at the end and inserting a semicolon; and
by adding at the end the following:
all prudently incurred costs relating to the deployment of smart grid technology for transmission infrastructure (within the meaning of title XIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et seq.)); and
all prudently incurred costs relating to the use of advanced materials for the construction of technology transmission facilities if the advanced materials are at least 25 percent more efficient than standard transmission materials.
.
Transportation sector
Electrification of transportation sector
Minimum Federal fleet requirement
Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is amended—
in subsection (b)—
by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively;
by inserting after paragraph (1) the following:
Plug-in electric drive vehicles
Of the total number of vehicles acquired by a Federal fleet under paragraph (1), at least the following percentage of the vehicles shall be plug-in electric drive vehicles (as defined in section 131(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17011(a))):
10 percent for fiscal year 2012.
The applicable percentage for the preceding fiscal year increased by 5 percentage points (but not to exceed a total of 50 percent) for fiscal year 2013 and each subsequent fiscal year.
; and
in paragraph (3)
(as redesignated by subparagraph (A)), by inserting or (2)
after
paragraph (1)
; and
by striking subsection (c) and inserting the following:
Allocation of incremental costs
Subject to the availability of funds appropriated to carry out this subsection (to remain available until expended), the General Services Administration shall pay the incremental cost of alternative fueled vehicles over the cost of comparable gasoline vehicles for vehicles that the Administration purchased for the use of the Administration or on behalf of other agencies, in a total amount of not to exceed $300,000,000 for any of fiscal years 2012 through 2016.
;
in subsection (f), by adding at the end the following:
Compliance
Compliance with this subsection shall not relieve the Federal agency of the obligations of the agency under subsection (b).
; and
in subsection
(g), by striking fiscal years 1993 through 1998
and inserting
each fiscal year
.
Use of HOV facilities by light-duty plug-in electric drive vehicles
Section 166(b)(5) of title 23, United States Code, is amended—
in subparagraph (A), by striking
Before
and inserting Except as provided in subparagraph
(D), before
;
in subparagraph
(B), by striking Before
and inserting Except as provided
in subparagraph (D), before
; and
by adding at the end the following:
Use by plug-in electric drive vehicles
Definition of plug-in electric drive vehicle
In this subparagraph, the term plug-in electric drive vehicle has the meaning given the term in section 131(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17011(a)).
Use of HOV facilities
A State agency—
shall permit vehicles that are certified as low emission and energy-efficient vehicles in accordance with subsection (e) that are light-duty plug-in electric drive vehicles, and that are purchased on or before December 31 of the calendar year described in clause (iii), as determined by the Secretary, to use HOV facilities in the State; and
shall not impose any toll or other charge on such a vehicle for use of a HOV facility in the State.
Calendar year
The calendar year referred to in clause (ii)(I) is the calendar year during which, as determined by the Secretary, the aggregate number of plug-in electric drive vehicles sold in the United States during all calendar years exceeds 2,000,000.
Petition
A State may petition the Secretary to limit or discontinue the use of a HOV facility by plug-in electric drive vehicles if the State demonstrates to the Secretary that the presence of the plug-in electric drive vehicles has degraded the operation of the HOV facility.
.
Recharging infrastructure
Definitions
In this section:
Local government
The term local government has the meaning given the term in section 3371 of title 5, United States Code.
Plug-in electric drive vehicle
The term plug-in electric drive vehicle has the meaning given the term in section 131(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17011(a)).
Range extension infrastructure
The term range extension infrastructure includes equipment, products, or services for recharging plug-in electric drive vehicles that—
are available to retail consumers of electric drive vehicles on a non-discriminatory basis;
provide for extending driving range through battery exchange or rapid recharging; and
are comparable in convenience and price to petroleum-based refueling services.
Study
In general
The Secretary shall conduct a study of—
the number and distribution of recharging facilities, including range extension infrastructure, that will be required for drivers of plug-in electric drive vehicles to reliably recharge the electric drive vehicles;
minimum technical standards for public recharging facilities in coordination with the National Institute of Standards and Technology; and
the concurrent technical and infrastructure investments that electric utilities and electricity providers will be required to make to support widespread deployment of recharging infrastructure and the estimated costs of the investments.
Components
In conducting the study required under this subsection, the Secretary shall analyze—
the variety and density of recharging infrastructure options necessary to power plug-in electric drive vehicles under diverse scenarios, including—
the ratio of residential, commercial, and public recharging infrastructure options necessary to support 10 percent, 20 percent, and 50 percent penetration of plug-in electric vehicles on a city fleet basis;
the ratio of residential, commercial, and public recharging infrastructure options necessary to support 10 percent, 20 percent, and 50 percent penetration of plug-in electric vehicles on a national fleet basis; and
the potential impact of fast charging on penetration rates and utility power management requirements;
whether use of parking spots with access to recharging facilities should be limited to plug-in electric drive vehicles;
whether model building codes should be amended to cover recharging facilities; and
such other issues as the Secretary considers appropriate.
Report
Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report on the results of the study conducted under this subsection, including any recommendations.
Grants and loans to state and local governments for recharging infrastructure
In general
Effective beginning October 1, 2010, the Secretary shall establish a program under which the Secretary shall provide grants and loans to local governments to assist in the installation of recharging facilities for electric drive vehicles in areas under the jurisdiction of the local governments. The Secretary shall provide funding under this section to State or local governments to pay not more than fifty percent of the recharging infrastructure cost.
Eligibility
To be eligible to obtain a grant or loan under this subsection, a local government shall—
demonstrate to the Secretary that the applicant has taken into consideration the findings of the report submitted under subsection (b)(3), unless the local government demonstrates to the Secretary that an alternative variety and density of recharging infrastructure options would better meet the purposes of this section; and
agree not to charge a premium for use of a parking space used to recharge an electric drive vehicle other than a charge for electric energy.
Guidelines
The Secretary shall establish guidelines for carrying out this subsection that are consistent with the report submitted under subsection (b)(3).
Authorization of appropriations
There is authorized to be appropriated to the Secretary to carry out this subsection a total of $250,000,000 for grants and a total of $250,000,000 for loans, to remain available until expended.
Loan guarantees for advanced battery purchases
Subtitle B of title I of the Energy and Independence and Security Act of 2007 (42 U.S.C. 17011 et seq.) is amended by adding at the end the following:
Loan guarantees for advanced battery purchases
Definitions
In this section:
Plug-in electric drive vehicle
The term plug-in electric drive vehicle has the meaning given the term in section 131(a).
Range extension infrastructure
The term range extension infrastructure includes equipment, products, or services for recharging plug-in electric drive vehicles that—
are available to retail consumers of electric drive vehicles on a nondiscriminatory basis;
provide for extended driving range through battery exchange or rapid recharging; and
are comparable in convenience and price to petroleum-based refueling services.
Loan guarantees
The Secretary shall guarantee loans made to eligible entities for the aggregate purchase by an eligible entity of not less than 5,000 batteries that use advanced battery technology within a calendar year.
Eligible entities
To be eligible to obtain a loan guarantee under this section, an entity shall be—
an original equipment manufacturer;
a vehicle manufacturer;
an electric utility;
any provider of range extension infrastructure; or
any other qualified entity, as determined by the Secretary.
Regulations
The Secretary shall promulgate such regulations as are necessary to carry out this section.
Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this section.
.
Study of end-of-useful life options for motor vehicle batteries
In general
In combination with the research, demonstration, and deployment activities conducted under section 641(k) of the Energy and Independence and Security Act of 2007 (42 U.S.C. 17231(k)), the Secretary shall conduct a study on the end-of-useful life options for motor vehicle batteries, including recommendations for stationary storage applications and recyclability design specifications.
Report
Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report on the results of the study conducted under subsection (a), including any recommendations.
Medium- and heavy-duty vehicles
Maximum weight study
In general
The Secretary of Transportation, in consultation with the Administrator of the National Highway Traffic Safety Administration, shall conduct a study to investigate whether oil savings goals can be achieved in the trucking industry without adverse safety consequences by determining the safety impacts and other effects of increasing the maximum allowable gross weight for vehicles using the Interstate System to allow for larger, more fuel-efficient tractor-trailers.
Study components
In conducting the study under this section, the Secretary of Transportation shall—
determine whether a vehicle with a supplementary sixth axle and a gross weight of up to 97,000 pounds that is traveling at 60 miles per hour is capable of stopping at a distance of 355 feet or less;
determine whether the use of the Interstate System by vehicles described in paragraph (1) would require a fundamental alteration of the vehicle architecture that is commonly used for the transportation of goods as of the day before the date of the enactment of this Act;
analyze the safety impacts of allowing vehicles described in paragraph (1) to use the Interstate System; and
consider the potential impact on highway safety of applying lower speed limits on such vehicles than the speed limits in effect on the day before the date of the enactment of this Act.
Report
Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit a report to Congress that contains the results of the study conducted under this section, including a determination by the Secretary as to whether permitting vehicles with a supplementary sixth axle and a gross weight of not more than 97,000 pounds to use the Interstate System would have an adverse impact on highway safety.
Definition
In this section, the term Interstate System has the meaning given that term in section 101(a) of title 23, United States Code.
Fuel economy
Section 32912(e)(1) of
title 49, United States Code, is amended by inserting provide equipment
and facilities for the program established under section 32902(k), and
to
after shall be used by the Secretary to
.
Alternative transportation technologies
Flexible fuel automobiles
In general
Chapter 329 of title 49, United States Code, is amended—
in section 32901(a)—
by redesignating paragraphs (10) through (19) as paragraphs (11) through (20), respectively; and
by inserting after paragraph (9) the following:
flexible fuel automobile means an automobile that has been warranted by the manufacturer of the automobile to operate on gasoline and fuel mixtures containing 15 percent gasoline and 85 percent ethanol or methanol.
; and
by inserting after section 32902 the following:
Requirement to manufacture flexible fuel automobiles
In general
For each model year listed in the following table, each manufacturer shall ensure that the percentage of automobiles manufactured by the manufacturer for sale in the United States that are flexible fuel automobiles is not less than the percentage set forth for that model year in the following table:
| Model Year | Percentage |
| Model year 2012 | 50 percent |
| Model year 2013 | 60 percent |
| Model year 2014 | 70 percent |
| Model year 2015 | 80 percent |
| Model year 2016 | 90 percent |
| Model year 2017 | 100 percent. |
Automobiles excluded
The requirement under subsection (a) shall not apply to any automobile that operates on diesel, natural gas, hydrogen, or electricity.
.
Clerical amendment
The table of sections for chapter 329 of title 49, United States Code, is amended by inserting after the item relating to section 32902 the following:
.
Rulemaking
Not later than 1 year after the date of the enactment of this Act, the Secretary of Transportation shall prescribe regulations to carry out section 32902A of title 49, United States Code, as added by subsection (a).
Transportation roadmap study
In general
The Secretary shall enter into an arrangement with the National Academy of Sciences under which the Academy shall—
conduct a comprehensive analysis of energy use by automobiles; and
use the analysis to conduct an integrated assessment of the technological options that could lead to reduced petroleum consumption and greenhouse gas emissions.
Components
The study required under this section shall—
assess the status of technology options, including—
prospects of future fuels and pathways;
the infrastructure and other barriers for increased market penetration;
potential timing of market adoption;
potential reductions of petroleum consumption and greenhouse gas emissions; and
improvements in and priorities for Federal research and development program activities;
consider issues relating to duty cycles, regional distinctions, and technological development timelines;
build on and integrate applicable research conducted in recent years, including by the Academy;
evaluate technical options and assess the extent to which the United States can employ the options to reduce oil intensity by 80 percent by calendar year 2050 and reduce carbon dioxide emissions at a rate that is consistent with national goals; and
recommend policies to help facilitate the United States to meet national goals.
Report
Not later than 21 months after funds are first made available to carry out this section, the Secretary shall submit to the appropriate committees of Congress a report on the results of the study conducted under subsection (a), including any recommendations.
Updates
In general
Not later than 5 years after the initial study is conducted under this section and every 5 years thereafter, the Secretary shall enter into an arrangement with the National Academy of Sciences under which the Academy shall update the study required under this section.
Report
Not later than 21 months after the date an arrangement is entered into under paragraph (1), the Secretary shall submit to the appropriate committees of Congress a report on the results of the updated study conducted under paragraph (1), including any recommendations.
Authorization of appropriations
There is authorized to be appropriated to carry out this section $2,200,000.
Domestic production and workforce development
Increasing supply
Increasing production from domestic resources
Amendment of 1986 Code
Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
Investment in renewable energy
Extension of renewable electricity production credit
In general
Subsection (d) of section 45 is amended—
by striking
January 1, 2013
in paragraph (1) and inserting January 1,
2015
, and
by striking
January 1, 2014
each place it appears in paragraphs (2), (3),
(4), (6), (7), (9), and (11)(B) and inserting January 1,
2015
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Expansion and extension of new clean renewable energy bonds
In general
Paragraph (2) of section 54C(c) is amended by inserting
, for calendar years 2011, 2012, 2013, and 2014, an additional
$500,000,000 for each year, and, except as provided in paragraph (5) for years
after 2014, zero,
after $800,000,000
.
Carryover of unused limitation
Subsection (c) of section 54C is amended by adding at the end the following new paragraph:
Carryover of unused limitation
If for any calendar year—
the amount allocated under paragraph (2) for such calendar year, exceeds
the amount of bonds issued during such year which are designated under subsection (a) pursuant to such allocation,
.
Effective date
The amendments made by this section shall apply to bonds issued after December 31, 2010.
Extension of investment tax credit for certain energy property
Solar energy property
Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of
section 48(a) are each amended by striking January 1, 2017
and
inserting January 1, 2019
.
Fuel cell property
Subparagraph (E) of section 48(c)(1) is
amended by striking December 31, 2016
and inserting
December 31, 2018
.
Qualified small wind energy property
Subparagraph (D) of section 48(c)(4) is
amended by striking December 31, 2016
and inserting
December 31, 2018
.
Geothermal heat Pump systems
Clause (vii) of section 48(a)(3)(A) is amended by
striking January 1, 2017
and inserting January 1,
2019
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Increase in credit for investment in advanced energy facilities
In general
Subparagraph (B) of section 48C(d)(1) is amended by
striking $2,300,000,000
and inserting
$4,000,000,000
.
Effective date
The amendment made by this section shall take effect as if included in the amendments made by section 1302 of the American Recovery and Reinvestment Tax Act of 2009.
Investment in alternative fuel property
Extension of credits for alcohol fuels
In general
Sections 40, 6426(b)(6), and 6427(e)(6)(A) are amended by
striking 2010
each place it appears and inserting
2011
.
Conforming amendment
Section 40(e)(1)(B) is amended by striking
2011
and inserting 2012
.
Effective date
The amendments made by this section shall apply to sales and uses after the date of the enactment of this Act.
Extension of credits for biodiesel and renewable diesel
In general
Sections 40A(g), 6426(c)(6), and
6427(e)(6)(B) are each amended by striking December 31, 2009
and
inserting December 31, 2011
.
Effective date
The amendments made by this section shall apply to sales and uses after the date of the enactment of this Act.
Investment in electric drive and advanced vehicles
Extension of credit and extension of temporary increase in credit for alternative fuel vehicle refueling property
Extension of credit
Subsection (g) of section 30C is amended by striking
service—
and all that follows and inserting service after
December 31, 2018.
.
Extension of temporary increase
Paragraph (6) of section 30C(e) is amended—
by striking
January 1, 2011
and inserting January 1, 2019
,
and
by striking
and
2010
in the heading and inserting
through
2018
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2010.
Extension and expansion of credit for new qualified plug-in electric drive motor vehicles
Extension
Section 30D is amended by adding at the end the following new subsection:
Termination
This section shall not apply to any property purchased after December 31, 2018.
.
Restoration of credit for large new qualified plug-In electric drive motor vehicles weighing over 14,000 pounds
In general
The last sentence of section 30D(b)(3) is amended to read as follows: “The amount determined under this paragraph shall not exceed—
$5,000, in the case of any new qualified plug-in electric drive motor vehicle with a gross vehicle weight rating of not more than 14,000 pounds,
$10,000, in the case of any new qualified plug-in electric drive motor vehicle with a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and
$12,500, in the case of any new qualified plug-in electric drive motor vehicle with a gross vehicle weight rating of more than 26,000 pounds.
.
Conforming amendments
Paragraph (1) of section 30D(d) is amended by adding
and
at the end of subparagraph (D), by striking subparagraph
(E), and by redesignating subparagraph (F) as subparagraph (E).
Increase in per manufacturer cap
Paragraph (2) of section 30D(e) is amended by
striking 200,000
and inserting 400,000
.
Effective date
The amendments made by this section shall apply to vehicles acquired after the date of the enactment of this Act.
Extension of credit for certain plug-in electric vehicles
In general
Subsection (f) of
section 30 is amended by striking December 31, 2011
and
inserting December 31, 2018
.
Effective date
The amendment made by this section shall apply to vehicles acquired after the date of the enactment of this Act.
Extension of credit for medium and heavy duty hybrid vehicles
In general
Paragraph (3) of
section 30B(k) is amended by striking December 31, 2009
and
inserting December 31, 2014
.
Effective date
The amendment made by this section shall apply to vehicles acquired after the date of the enactment of this Act.
Credit for heavy duty natural gas vehicles
In general
Paragraph (4) of section 30B(k) is amended by inserting
(December 31, 2018, in the case of such a vehicle which has a gross
vehicle weight rating of more than 26,000 pounds and which operates on
compressed natural gas or liquified natural gas)
after December
31, 2010
.
Effective date
The amendment made by this section shall apply to vehicles acquired after the date of the enactment of this Act.
Low carbon loan guarantee program
Innovative low-carbon loan guarantee program
Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended—
in subsection (b), by adding at the end the following:
Innovative low-carbon technology projects in accordance with subsection (f).
; and
by adding at the end the following:
Innovative low-carbon technology projects
In general
The Secretary may make guarantees to carry out innovative low-carbon technologies projects.
Funding
In general
Subject to the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), the total principal amount of loans guaranteed to carry out projects under this subsection shall not exceed $50,000,000,000, to remain available until committed.
Additional amounts
Amounts made available to carry out this subsection shall be in addition to any other authority provided for fiscal year 2010 or any previous fiscal year.
Source of funds
In general
Amounts made available to carry out this subsection shall be—
derived from amounts received from borrowers pursuant to section 1702(b)(2) for fiscal year 2010 or any previous fiscal year; and
collected in accordance with the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
Treatment
The source of payment received from borrowers described in clause (i) shall be not considered a loan or other debt obligation that is guaranteed by the Federal Government.
Subsidy cost
In accordance with section 1702(b)(2), no appropriations to carry out this subsection shall be available to pay the subsidy cost of guarantees.
.
Investment in ethanol
Research and development of fungible biofuels
There is authorized to be appropriated for advanced biofuels research, development, and demonstration that will create fuels that are fungible in existing infrastructure $100,000,000.
Studies on market penetration of renewable resources
Studies on market penetration of renewable resources
In general
Not later than 1 year after the date of enactment of this Act, the Secretary shall conduct—
a study on the quantity of solar energy (including photovoltaic and solar thermal energy) that can reasonably be expected to be deployed in the United States by calendar year 2030 and the requirements and costs associated with that deployment;
a study on the quantity of geothermal energy (including regular and advanced geothermal energy) that can reasonably be expected to be deployed in the United States by calendar year 2030 and the requirements and costs associated with that deployment;
a study on the quantity of hydrokinetic energy that can reasonably be expected to be deployed in the United States by calendar year 2030 and the requirements and costs associated with that deployment; and
in consultation with the Secretary of Agriculture, a study on the quantity of renewable biomass energy that can reasonably be expected to be deployed in the United States by calendar year 2030, including consideration of—
the needs of biofuels, biomass-based electricity, and thermal applications;
the highest efficiency energy use of biomass resources; and
the requirements and costs associated with deployment.
Report
Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress, and make publicly available, a report that integrates the results of the studies conducted under subsection (a), and other relevant studies, including an analysis and recommendations on—
the best areas and rates for deployment of solar, geothermal, wind, biomass, and hydrokinetic energy by calendar year 2030 (based on multiple alternative scenarios); and
the levels of market penetration that can be accomplished by calendar year 2030 (based on multiple alternative scenarios).
Increasing production from fossil resources
Outer Continental Shelf
Inventory of outer Continental Shelf oil and gas resources
In General
Not later than 2 years after the date of enactment of this Act and subject to subsection (b), the Secretary of the Interior (referred to in this subtitle as the Secretary) shall complete an inventory of oil and natural gas resources in areas of the Outer Continental Shelf (as defined in section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331)) with the greatest potential for containing oil or gas reserves.
Requirements
In general
The Secretary shall carry out the inventory under subsection (a) in stages, focusing first on areas that the Secretary identifies as having the greatest potential for oil and gas reserves.
Public comments
To assist the Secretary in identifying areas that have the greatest potential for oil and gas reserves under paragraph (1), the Secretary shall, not later than 60 days after the date of enactment of this Act, issue a notice in the Federal Register requesting comments from the public on areas of the Outer Continental Shelf that may contain the most significant oil and gas deposits.
Initiation of certain inventories
Not later than 90 days after the date of enactment of this Act, the Secretary shall begin conducting any inventories in the Atlantic and Pacific areas of the Outer Continental Shelf.
Best Available Technology
In conducting the inventory under subsection (a), the Secretary shall—
use the best technology available to obtain accurate resource estimates; and
include the results of geological and geophysical explorations carried out—
under existing or expired leases; or
under part 251 of title 30, Code of Federal Regulations (or successor regulations).
Reports
On completion of any independent reports prepared as part of an inventory under this section, the Secretary shall make the independent reports immediately available to the public.
Environmental studies
Not later than 180 days after the date of enactment of this Act, the Secretary shall complete any environmental studies necessary to gather information essential to an accurate inventory, including geological and geophysical explorations under part 251 of title 30, Code of Federal Regulations (or successor regulations).
Reports
In general
On completion of an inventory under this section, the Secretary shall submit to Congress and the Governors of any affected coastal States a report that describes the results of the inventory.
Assessment
A report submitted under paragraph (1) shall include an assessment of the economic, energy, environmental, and national security impacts on the United States, any affected coastal States, and any affected local units of government if the oil and natural gas resources identified by the inventory were developed and produced, including estimates of any direct and indirect revenues that would be available to the Federal Government, the affected coastal State governments, and units of local government.
Effect on Oil and Gas Leasing
No inventory that is conducted under this section or any other Federal law (including regulations) shall restrict, limit, delay, or otherwise adversely affect—
the development of any Outer Continental Shelf leasing program under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344); or
any leasing, exploration, development, or production of any Federal offshore oil and gas leases.
Funding
In general
The Secretary of the Treasury shall make a 1-time transfer to the Secretary, from royalties collected in conjunction with the production of oil and gas, such sums as are necessary to carry out this section, including the completion of environmental studies necessary to conduct geological and geophysical explorations in all of the Outer Continental Shelf areas of the Atlantic and the Pacific under part 251 of title 30, Code of Federal Regulations (or successor regulations).
Receipt and acceptance
The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1), without further appropriation.
Limitation
The amounts transferred under paragraph (1) shall not exceed $150,000,000.
Leasing of offshore areas estimated to contain commercially recoverable oil or gas resources
Definition of potential producing area
In this section, the term
potential producing area
means any area in an Outer Continental
Shelf planning area, as defined by the Minerals Management Service, that a
seismic survey or other geologic study identifies as exhibiting geologic
characteristics similar to the characteristics found in other commercial oil
and gas producing regions in the Outer Continental Shelf or other oil and gas
producing areas.
Leasing of potential producing areas
Not later than 1 year after the date of the release of an inventory or report under section 361 that identifies a potential producing area, the Secretary may make the potential producing area available for oil and gas leasing under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).
Leasing plan
The omission of a potential producing area from the applicable 5-year plan developed by the Secretary pursuant to section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) may allow the leasing of a potential producing area under subsection (b).
Environmental stewardship and allowable activities
In general
The Secretary shall promulgate regulations that establish appropriate environmental safeguards for the exploration and production of oil and natural gas on the Outer Continental Shelf.
Minimum requirements
At a minimum, the regulations shall include—
provisions requiring surety bonds of sufficient value to ensure the mitigation of any reasonably foreseeable incident that could be directly caused by persons engaged in oil and natural gas development, in accordance with subpart A of part 256 of title 30, Code of Federal Regulations (or successor regulations);
provisions assigning liability to responsible parties of environmental damage to the Outer Continental Shelf to the extent that the damage is not otherwise implicitly or explicitly authorized or permitted by Federal law (including regulations);
provisions no less stringent than the regulations promulgated under the Oil Pollution Act of 1990 (33 U.S.C. 2701 et seq.); and
provisions ensuring that—
no surface facility is installed for the purpose of production of oil or gas resources in any area visible to the unassisted eye from any shore of any coastal State in any areas in the Outer Continental Shelf that have not previously been made available for oil and gas leasing;
only temporary surface facilities are installed for areas that are—
beyond the area described in subparagraph (A); and
located not more than 25 miles from the shore of any coastal State in any areas in the Outer Continental Shelf that have not previously been made available for oil and gas leasing; and
the impact of offshore production facilities on coastal vistas is otherwise mitigated.
Exclusions
No regulations promulgated under this section shall apply to the development, construction, or operation of renewable energy facilities on the Outer Continental Shelf.
Conforming Amendment
Section 105 of the Department of the Interior,
Environment, and Related Agencies Appropriations Act, 2006 (Public Law 109–54;
119 Stat. 521) (as amended by section 103(d) of the Gulf of Mexico Energy
Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109–432)) is amended by
inserting and any other area that the Secretary of the Interior may
offer for leasing, preleasing, or any related activity under section 104 of
that Act
after 2006)
.
Moratorium of oil and gas leasing in certain areas of the Gulf of Mexico
Moratorium
Section 104 of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109–432) is amended by striking subsection (a) and inserting the following:
In general
Effective during the period beginning on the date of enactment of this Act and ending on June 30, 2022, the Secretary shall not offer for leasing, preleasing, or any related activity any area east of 85 degrees, 50 minutes West Longitude in the Eastern Planning Area that is within 45 miles of the coastline of the State of Florida.
.
National defense area
Section 12(d) of the Outer Continental Shelf Lands Act (43 U.S.C. 1341(d)) is amended—
by striking
The United States
and inserting the following:
In general
The United States
; and
by adding at the end the following:
Review
Annually, the Secretary of Defense shall review the areas of the outer Continental Shelf that have been designated as restricted from exploration and operation to determine whether the areas should remain under restriction.
.
Leasing of moratorium areas
In general
As soon as practicable, after the date of enactment of this Act, the Secretary shall offer for leasing under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), any areas made available for leasing as a result of the amendment made by subsection (a).
Administration
Any areas made available for leasing under paragraph (1) shall be offered for lease under this section—
notwithstanding the omission of any of these respective areas from the applicable 5-year plan developed by the Secretary pursuant to section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344); and
in a manner consistent with section 363.
Treatment of revenues
Section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)) is amended—
in paragraph (2),
by striking Notwithstanding
and inserting Except as
provided in paragraph (6), and notwithstanding
;
by redesignating paragraphs (6) and (7) as paragraphs (7) and (8), respectively; and
by inserting after paragraph (5) the following:
Renewable energy reserve fund
Definitions
In this paragraph:
Fund
The
term fund
means the Renewable Energy Reserve Fund established by
subparagraph (B).
Qualified lease
The term qualified lease
means a natural gas
or oil lease granted under this Act after the date of enactment of the
National Energy Security Act of
2009 for an area that is made available for leasing under part I
of subtitle B of title I of division B of that Act.
Establishment
There
is established in the Treasury of the United States a reserve account, to be
known as the Renewable Energy Reserve Account
, consisting of
such amounts as are appropriated to the Fund under subparagraph (C).
Transfers to Fund
There are appropriated to the Fund, out of funds of the Treasury not otherwise appropriated, amounts equivalent to amounts received by the United States after September 30, 2009, as bonus bids, royalties, or rentals from, or otherwise collected under, any qualified lease on submerged land made available for leasing under this Act by the National Energy Security Act of 2009 (including any amendment made by that Act).
Use of fund
Subject to subparagraph (E), amounts in the Fund shall be used to offset the costs of carrying out the National Energy Security Act of 2009.
Termination of fund
In general
The Fund shall terminate on the date on which the Secretary determines that the costs of carrying out the National Energy Security Act of 2009 have been repaid.
Transfer
On termination of the Fund under clause (i), the remaining balance in the Fund shall be transferred to the appropriate fund of the Treasury.
.
Other fossil resources
Authorization of activities and exports involving hydrocarbon resources
Definition
In this section, the term United States person means—
any United States citizen or alien lawfully admitted for permanent residence in the United States; and
any person other than an individual, if 1 or more individuals described in paragraph (1) own or control at least 51 percent of the securities or other equity interest in the person.
Authorization
Notwithstanding any other provision of law (including a regulation), United States persons (including agents and affiliates of those United States persons) may—
engage in any transaction necessary for the exploration for and extraction of hydrocarbon resources from any portion of any foreign exclusive economic zone that is contiguous to the exclusive economic zone of the United States; and
export without license authority all equipment necessary for the exploration for or extraction of hydrocarbon resources described in paragraph (1).
Travel in connection with authorized hydrocarbon exploration and extraction activities
Section 910 of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7209) is amended by adding at the end the following:
General License Authority for Travel-Related Expenditures by Persons Engaging in Hydrocarbon Exploration and Extraction Activities
In general
The Secretary of the Treasury shall authorize under a general license the travel-related transactions listed in section 515.560(c) of title 31, Code of Federal Regulations, for travel to, from, or within Cuba in connection with exploration for and the extraction of hydrocarbon resources in any part of a foreign maritime Exclusive Economic Zone that is contiguous to the United States' Exclusive Economic Zone.
Persons authorized
Persons authorized to travel to Cuba under this section include full-time employees, executives, agents, and consultants of oil and gas producers, distributors, and shippers.
.
Alaska OCS joint lease and permitting processing office
Establishment
The
Secretary of the Interior (referred to in this section as the
Secretary
) shall establish a regional joint outer Continental
Shelf lease and permit processing office for the Alaska Outer Continental Shelf
region.
Memorandum of understanding
Not later than 90 days after the date of enactment of this Act, the Secretary shall enter into a memorandum of understanding for the purposes of carrying out this section with—
the Secretary of Commerce;
the Chief of Engineers;
the Administrator of the Environmental Protection Agency; and
any other Federal agency that may have a role in permitting activities.
Designation of qualified staff
In general
Not later than 30 days after the date of the signing of the memorandum of understanding under subsection (b), each Federal signatory party shall, if appropriate, assign to the office described in subsection (a) an employee who has expertise in the regulatory issues administered by the office in which the employee is employed relating to leasing and the permitting of oil and gas activities on the Outer Continental Shelf.
Duties
An employee assigned under paragraph (1) shall—
not later than 90 days after the date of assignment, report to the office described in subsection (a);
be responsible for all issues relating to the jurisdiction of the home office or agency of the employee; and
participate as part of the team of personnel working on proposed oil and gas leasing and permitting, including planning and environmental analyses.
Alaska Natural Gas Pipeline
Section 116(c)(2)
of the Alaska Natural Gas Pipeline Act (15 U.S.C. 720n(c)(2)) is amended by
striking $18,000,000,000
and inserting
$30,000,000,000
.
Clean energy technology workforce development
Clean energy technology workforce
Grants
In general
The Secretary shall award competitive, merit-based grants to institutions of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))) for the establishment of programs providing training and education for vocational workforce development through centers of excellence for a broad range of clean energy sector needs in the clean energy technology workforce of the United States, as determined by the Secretary.
Other institutions
In carrying out this subsection, the Secretary shall accept proposals for centers from institutions of higher education that have or are prepared to develop a meaningful curriculum and program described in paragraph (1).
National merit scholarship program
In general
The Secretary shall establish a national merit scholarship program that provides scholarships each fiscal year for at least 1,000 undergraduate and 500 graduate students that are studying engineering, geosciences, and other energy-related fields.
Eligibility
To be eligible to obtain a scholarship under this subsection, a student shall be enrolled in a program offered by an institution of higher education that provides training and education for a clean energy workforce described in subsection (a)(1).
Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this section.
Global risk management
Sense of Congress on geopolitical consequences of oil dependence
Findings
Congress finds that—
it is imperative to the national security, economic prosperity, and environmental integrity of the United States to have reliable, diverse, and affordable energy supplies;
the United States faces a multifaceted and growing threat to energy security;
State-owned energy companies, especially those of adversarial governments, are using the energy supplies of the companies as leverage to promote foreign policies of states; and
politically motivated domestic groups, pirates, and terrorists further present an increasing risk to critical energy infrastructure and key corridors of international energy supplies;
efforts to develop a long-term energy policy for the United States is partially hindered by the lack of consistent and accurate information on world energy reserves;
the United States should develop short-term policies and strategies that—
protect key energy infrastructure;
secure critical geographic transit routes; and
mitigate political instability from energy suppliers;
over the long-term, the United States should focus national security organizations on obtaining better information on world reserves of energy and strengthening relationships with certain key nations;
addressing the challenge of energy security now and in the future will require the United States to use all instruments of national power, including the military, diplomatic, and intelligence services; and
the United States should make it a priority to engage key developing nations such as China and India on fossil fuel use in order to address global energy security and climate change challenges.
Sense of Congress
It is the sense of Congress that—
sufficient resources should be provided to United States national security agencies to enable the agencies to protect tankers and other vessels, critical infrastructure, and supply routes;
the President should work with Congress—
to coordinate efforts between the Department of State and the Department of Justice to bolster programs to train national police and domestic security forces tasked with defending energy infrastructure in key countries;
to promote initiatives by the Department of State and the Department of Defense—
to provide allied nations with the technical expertise to minimize the consequences of an infrastructure accident or attack;
to engage the North Atlantic Treaty Organization (NATO) and other allies in negotiations on creating a security architecture to protect the strategic terrain; and
to work with the Coast Guard to strengthen the capacity of local, national, and regional maritime security forces;
to mobilize the Department of Defense and the Department of Energy, in conjunction with the intelligence community, to conduct detailed scenario planning exercises on the repercussions of attacks on critical energy infrastructure; and
to authorize the Department of State to provide the President with diplomatic options, including the imposition of sanctions, for addressing states that use energy as a political weapon; and
to improve the capacity of the Department of State to provide diplomatic support to resolve conflicts that impact the energy security of the United States; and
the intelligence community should be given an integral role in bolstering United States national energy security interests by—
completing a comprehensive national intelligence estimate on energy security that assesses the most vulnerable aspects of critical energy infrastructure and the future stability of major energy suppliers;
improving warning time to prevent attacks on key energy infrastructure;
expanding the collection of intelligence on national energy companies and the energy reserves of those companies; and
bolstering collection and analysis of potential strategic conflicts that could disrupt key energy supplies.
Study of foreign fuel subsidies
In general
The Secretary of Energy, in consultation with the Secretary of State and the Secretary of Commerce, shall conduct a study of foreign fuel subsidies, including—
the impact of the subsidies on global energy supplies, global energy demand, and global economic impacts; and
recommendations on actions that should be taken to reduce the impact of the subsidies.
Report
Not later than 18 months after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report that describes the results of the study conducted under this section, including any recommendations.