SECTION 1. SHORT TITLE.

    This Act may be cited as the ``States as Energy Leaders for the 
Future Act'' or ``SELF Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Eligible entity.--The term ``eligible entity'' means an 
        entity described in section 3(b).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. CLEAN ENERGY GRANT PROGRAM.

    (a) In General.--There is established in the Department of Energy a 
program to provide grants to eligible entities, on a competitive basis, 
to develop and carry out clean energy and carbon reduction measures, 
such as--
            (1) renewable electricity standards;
            (2) regional or statewide climate action plans;
            (3) the use of hybrid, electric, compressed natural gas, or 
        fuel cell vehicles in State or local fleets;
            (4) measures to increase the percentage of public buildings 
        of the eligible entity that are certified with respect to 
        standards for energy efficiency;
            (5) participation in a regional greenhouse gas reduction 
        program;
            (6) facilitation of on-bill financing for energy efficiency 
        improvements for residences and business served by rural coops;
            (7) provision of State tax incentives for the manufacture 
        or installation of clean energy components or energy efficiency 
        upgrades;
            (8) provision of innovative financing mechanisms to private 
        sector entities to encourage the deployment of clean energy 
        technologies;
            (9) implementation of best management practices for the 
        public utility commission of an eligible entity;
            (10) improvement and updating of grid technology; and
            (11) implementation of carbon efficiency standards.
    (b) Eligible Entities.--To be eligible to receive a grant under 
this section, a State or unit of local government, or a regional 
consortium comprised of States or units of local governments, in 
partnership with private sector and nongovernmental organization 
partners, shall--
            (1) meet any requirements established by the Secretary 
        under subsection (e); and
            (2) submit an application to the Secretary at such time, in 
        such form, and containing such information as the Secretary may 
        require.
    (c) Award.--The Secretary shall determine which eligible entities 
shall receive grants and the amount of the grants provided based on--
            (1) the information provided in an application submitted 
        under subsection (b)(2); and
            (2) any criteria for reviewing and ranking applications 
        developed by the Secretary by regulation under subsection (e).
    (d) Use of Funds.--Grant funds provided under this section shall 
only be used for eligible uses specified by the Secretary by regulation 
under subsection (e).
    (e) Regulations.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary shall issue regulations 
        that establish criteria for grants under this section, 
        including specifying the types of measures that are eligible 
        for grants, establishing application criteria, and developing a 
        point system to assist the Secretary in reviewing and ranking 
        grant applications.
            (2) Considerations.--In developing the regulations under 
        paragraph (1), the Secretary shall take into account--
                    (A) regional disparities in the ways in which 
                energy is produced and used; and
                    (B) the clean energy resource potential of the 
                measures.
    (f) Explanation.--As soon as practicable after the date of 
enactment of this Act, the Secretary shall publish in the Federal 
Register an explanation of the manner by which grants awarded under 
subsection (c) would ensure an objective evaluation based on the 
criteria regulations promulgated under subsection (e)(1).

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Secretary for fiscal 
year 2011 to carry out this Act $5,000,000,000, to remain available 
until expended.

SEC. 5. COST OFFSET FOR CLEAN ENERGY GRANT PROGRAM, AND DEFICIT 
              REDUCTION, RESULTING FROM DENIAL OF DEDUCTION FOR MAJOR 
              INTEGRATED OIL COMPANIES FOR INCOME ATTRIBUTABLE TO 
              DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS 
              THEREOF.

    (a) In General.--Subparagraph (B) of section 199(c)(4) of the 
Internal Revenue Code of 1986 is amended by striking ``or'' at the end 
of clause (ii), by striking the period at the end of clause (iii) and 
inserting ``, or'', and by inserting after clause (iii) the following 
new clause:
                            ``(iv) in the case of a taxpayer which is a 
                        major integrated oil company (as defined in 
                        section 167(h)(5)(B)), oil related qualified 
                        production activities (within the meaning of 
                        subsection (d)(9)(B)).''.
    (b) Conforming Amendment.--Section 199(d)(9)(A) of the Internal 
Revenue Code of 1986 is amended by inserting ``(other than a major 
integrated oil company (as defined in section 167(h)(5)(B))'' after 
``taxpayer''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.
States as Energy Leaders for the Future Act or SELF Act - Establishes in the Department of Energy (DOE) a program to provide grants to eligible entities, on a competitive basis, to develop and carry out clean energy and carbon reduction measures, such as renewable electricity standards, regional or statewide climate action plans, and participation in a regional greenhouse gas reduction program.

Directs the Secretary of DOE, in establishing criteria for grants, to take into account: (1) regional disparities in the ways in which energy is produced and used; and (2) the clean energy resource potential of the measures.

Amends the Internal Revenue Code to exclude from the definition of "domestic production gross receipts" for purposes of the tax deduction for income attributable to domestic production, the gross receipts of a major integrated oil company which are derived from oil related qualified production activities.
A bill to establish a competitive grant program in the Department of Energy to provide grants to States and units of local government to carry out clean energy and carbon reduction measures, to close big oil company tax loopholes to pay for the competitive grant program and reduce the deficit, and for other purposes.