II 

112TH CONGRESS 

1ST SESSION S. 1863 

To amend the Internal Revenue Code of 1986 to encourage alternative energy 

investments and job creation. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 15, 2011 

Mr. MENENDEZ (for himself, Mr. REID, Mr. BURR, and Mr. CHAMBLISS) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to encourage 

alternative energy investments and job creation. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘New Alternative Transportation to Give Americans Solu6 tions Act of 2011’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amend9 ment or repeal is expressed in terms of an amendment 

10 to, or repeal of, a section or other provision, the reference 


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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 (c) TABLE OF CONTENTS.—The table of contents for 

4 this Act is as follows: 

Sec. 1. Short title, etc. 

TITLE I—PROMOTE THE PURCHASE AND USE OF NGVS WITH AN 

EMPHASIS ON HEAVY-DUTY VEHICLES AND FLEET VEHICLES 

Sec. 101. Extension and modification of new qualified alternative fuel motor vehicle credit. 

Sec. 102. Allowance of vehicle and infrastructure credits against regular and 

minimum tax and transferability of credits. 

Sec. 103. Modification of credit for purchase of vehicles fueled by compressed 

natural gas or liquefied natural gas. 

Sec. 104. Modification of definition of new qualified alternative fuel motor vehicle. 

Sec. 105. Providing for the treatment of property purchased by Indian tribal 

governments. 

TITLE II—PROMOTE PRODUCTION OF NGVS BY ORIGINAL 

EQUIPMENT MANUFACTURERS 

Sec. 201. Credit for producing vehicles fueled by natural gas or liquified natural gas. 

Sec. 202. Additional vehicles qualifying for the advanced technology vehicles 

manufacturing incentive program. 

TITLE III—INCENTIVIZE THE INSTALLATION OF NATURAL GAS 

FUEL PUMPS 

Sec. 301. Extension and modification of alternative fuel vehicle refueling property credit. 

Sec. 302. Increase in credit for certain alternative fuel vehicle refueling properties. 

TITLE IV—NATURAL GAS VEHICLES 

Sec. 401. Grants for natural gas vehicles research and development. 

Sec. 402. Sense of the Congress regarding EPA certification of NGV retrofit 

kits. 

Sec. 403. Amendment to section 508 of the Energy Policy Act of 1992. 

TITLE V—TRANSIT SYSTEMS 

Sec. 501. Federal share of costs for equipment for compliance with Clean Air 

Act. 

Sec. 502. Natural gas transit infrastructure investment. 

TITLE VI—USER FEES 

Sec. 601. User fees. 


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1 TITLE I—PROMOTE THE PUR2 CHASE AND USE OF NGVS 

3 WITH AN EMPHASIS ON 

4 HEAVY-DUTY VEHICLES AND 

5 FLEET VEHICLES 

6 SEC. 101. EXTENSION AND MODIFICATION OF NEW QUALI7 FIED ALTERNATIVE FUEL MOTOR VEHICLE 

8 CREDIT. 

9 (a) IN GENERAL.—Paragraph (4) of section 30B(k) 

10 is amended by inserting ‘‘(December 31, 2016, in the case 

11 of a vehicle powered by compressed or liquefied natural 

12 gas)’’ before the period at the end. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 subsection (a) shall apply to property placed in service 

15 after the date of the enactment of this Act. 

16 SEC. 102. ALLOWANCE OF VEHICLE AND INFRASTRUCTURE 

17 CREDITS AGAINST REGULAR AND MINIMUM 

18 TAX AND TRANSFERABILITY OF CREDITS. 

19 (a) BUSINESS CREDITS.—Subparagraph (B) of sec20 tion 38(c)(4) is amended by striking ‘‘and’’ at the end of 

21 clause (viii), by striking the period at the end of clause 

22 (ix) and inserting a comma, and by inserting after clause 

23 (ix) the following new clauses: 

24 ‘‘(x) the portion of the credit deter25 mined under section 30B which is attribVerDate Mar 15 2010 06:06 Nov 17, 2011 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1863.IS S1863

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1 utable to the application of subsection 

2 (e)(3) thereof with respect to new qualified 

3 alternative fuel motor vehicles which are 

4 capable of being powered by compressed or 

5 liquefied natural gas, and 

6 ‘‘(xi) the portion of the credit deter7 mined under section 30C which is attrib8 utable to the application of subsection (b) 

9 thereof with respect to refueling property 

10 which is used to store and or dispense 

11 compressed or liquefied natural gas.’’. 

12 (b) PERSONAL CREDITS.— 

13 (1) NEW QUALIFIED ALTERNATIVE FUEL

14 MOTOR VEHICLES.—Subsection (g) of section 30B is 

15 amended by adding at the end the following new 

16 paragraph: 

17 ‘‘(3) SPECIAL RULE RELATING TO CERTAIN

18 NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHI19 CLES.—In the case of the portion of the credit deter20 mined under subsection (a) which is attributable to 

21 the application of subsection (e)(3) with respect to 

22 new qualified alternative fuel motor vehicles which 

23 are capable of being powered by compressed or liq24 uefied natural gas— 


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1 ‘‘(A) paragraph (2) shall (after the appli2 cation of paragraph (1)) be applied separately 

3 with respect to such portion, and 

4 ‘‘(B) in lieu of the limitation determined 

5 under paragraph (2), such limitation shall not 

6 exceed the excess (if any) of— 

7 ‘‘(i) the sum of the regular tax liabil8 ity (as defined in section 26(b)) plus the 

9 tentative minimum tax for the taxable 

10 year, reduced by 

11 ‘‘(ii) the sum of the credits allowable 

12 under subpart A and sections 27 and 30.’’. 

13 (2) ALTERNATIVE FUEL VEHICLE REFUELING

14 PROPERTIES.—Subsection (d) of section 30C is 

15 amended by adding at the end the following new 

16 paragraph: 

17 ‘‘(3) SPECIAL RULE RELATING TO CERTAIN AL18 TERNATIVE FUEL VEHICLE REFUELING PROP19 ERTIES.—In the case of the portion of the credit de20 termined under subsection (a) with respect to refuel21 ing property which is used to store and or dispense 

22 compressed or liquefied natural gas and which is at23 tributable to the application of subsection (b)— 


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1 ‘‘(A) paragraph (2) shall (after the appli2 cation of paragraph (1)) be applied separately 

3 with respect to such portion, and 

4 ‘‘(B) in lieu of the limitation determined 

5 under paragraph (2), such limitation shall not 

6 exceed the excess (if any) of— 

7 ‘‘(i) the sum of the regular tax liabil8 ity (as defined in section 26(b)) plus the 

9 tentative minimum tax for the taxable 

10 year, reduced by 

11 ‘‘(ii) the sum of the credits allowable 

12 under subpart A and sections 27, 30, and 

13 the portion of the credit determined under 

14 section 30B which is attributable to the 

15 application of subsection (e)(3) thereof.’’. 

16 (c) CREDITS MAY BE TRANSFERRED.— 

17 (1) VEHICLE CREDITS.—Subsection (h) of sec18 tion 30B is amended by adding at the end the fol19 lowing new paragraph: 

20 ‘‘(11) TRANSFERABILITY OF CREDIT.— 

21 ‘‘(A) IN GENERAL.—Except as provided in 

22 subparagraph (B), a taxpayer who places in 

23 service any new qualified alternative fuel motor 

24 vehicle which is capable of being powered by 

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1 fer the credit allowed under this section by rea2 son of subsection (e) with respect to such vehi3 cle through an assignment to the manufacturer, 

4 seller or lessee of such vehicle. Such transfer 

5 may be revoked only with the consent of the 

6 Secretary. 

7 ‘‘(B) REGULATIONS.—The Secretary shall 

8 prescribe such regulations as necessary to en9 sure that any credit transferred under subpara10 graph (A) is claimed once and not reassigned 

11 by such other person.’’. 

12 (2) INFRASTRUCTURE CREDIT.—Subsection (e) 

13 of section 30C is amended by adding at the end the 

14 following new paragraph: 

15 ‘‘(7) TRANSFERABILITY OF CREDIT.— 

16 ‘‘(A) IN GENERAL.—Except as provided in 

17 subparagraph (B), a taxpayer who places in 

18 service any qualified alternative fuel vehicle re19 fueling property relating to compressed or lique20 fied natural gas may transfer the credit allowed 

21 under this section with respect to such property 

22 through an assignment to the manufacturer, 

23 seller or lessee of such property. Such transfer 

24 may be revoked only with the consent of the 

25 Secretary. 


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1 ‘‘(B) REGULATIONS.—The Secretary shall 

2 prescribe such regulations as necessary to en3 sure that any credit transferred under subpara4 graph (A) is claimed once and not reassigned 

5 by such other person.’’. 

6 (d) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply with respect to property placed in 

8 service after the date of the enactment of this Act. 

9 SEC. 103. MODIFICATION OF CREDIT FOR PURCHASE OF 

10 VEHICLES FUELED BY COMPRESSED NAT11 URAL GAS OR LIQUEFIED NATURAL GAS. 

12 (a) INCREASE IN CREDIT.—Paragraph (2) of section 

13 30B(e) is amended to read as follows: 

14 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

15 of paragraph (1), the applicable percentage with re16 spect to any new qualified alternative fuel motor ve17 hicle is— 

18 ‘‘(A) except as provided in subparagraphs 

19 (B) and (C)— 

20 ‘‘(i) 50 percent, plus 

21 ‘‘(ii) 30 percent, if such vehicle— 

22 ‘‘(I) has received a certificate of 

23 conformity under the Clean Air Act 

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1 cation under the Clean Air Act for 

2 that make and model year vehicle 

3 (other than a zero emission standard), 

4 or 

5 ‘‘(II) has received an order certi6 fying the vehicle as meeting the same 

7 requirements as vehicles which may be 

8 sold or leased in California and meets 

9 or exceeds the most stringent stand10 ard available for certification under 

11 the State laws of California (enacted 

12 in accordance with a waiver granted 

13 under section 209(b) of the Clean Air 

14 Act) for that make and model year ve15 hicle (other than a zero emission 

16 standard), 

17 ‘‘(B) 80 percent, in the case of dedicated 

18 vehicles that are only capable of operating on 

19 compressed or liquefied natural gas, dual-fuel 

20 vehicles that are only capable of operating on a 

21 mixture of no less than 90 percent compressed 

22 or liquefied natural gas, and a bi-fuel vehicle 

23 that is capable of operating a minimum of 85 

24 percent of its total range on compressed or liq25 uefied natural gas, and 


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1 ‘‘(C) 50 percent, in the case of vehicles de2 scribed subclause (II) or (III) of subsection 

3 (e)(4)(A)(i) and which are not otherwise de4 scribed in subparagraph (B). 

5 For purposes of the preceding sentence, in the case 

6 of any new qualified alternative fuel motor vehicle 

7 which weighs more than 14,000 pounds gross vehicle 

8 weight rating, the most stringent standard available 

9 shall be such standard available for certification on 

10 the date of the enactment of the Energy Tax Incen11 tives Act of 2005.’’. 

12 (b) INCREASED INCENTIVE FOR NATURAL GAS VEHI13 CLES.—Subsection (e) of section 30B is amended by add14 ing at the end the following new paragraph: 

15 ‘‘(6) CREDIT VALUES FOR NATURAL GAS VEHI16 CLES.—In the case of new qualified alternative fuel 

17 motor vehicles with respect to vehicles powered by 

18 compressed or liquefied natural gas, the maximum 

19 tax credit value shall be— 

20 ‘‘(A) $7,500 if such vehicle has a gross ve21 hicle weight rating of not more than 8,500 

22 pounds, 

23 ‘‘(B) $16,000 if such vehicle has a gross 

24 vehicle weight rating of more than 8,500 

25 pounds but not more than 14,000 pounds, 


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1 ‘‘(C) $40,000 if such vehicle has a gross 

2 vehicle weight rating of more than 14,000 

3 pounds but not more than 26,000 pounds, and 

4 ‘‘(D) $64,000 if such vehicle has a gross 

5 vehicle weight rating of more than 26,000 

6 pounds.’’. 

7 (c) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to property placed in service after 

9 the date of the enactment of this Act. 

10 SEC. 104. MODIFICATION OF DEFINITION OF NEW QUALI11 FIED ALTERNATIVE FUEL MOTOR VEHICLE. 

12 (a) IN GENERAL.—Clause (i) of section 30B(e)(4)(A) 

13 is amended to read as follows: 

14 ‘‘(i) which— 

15 ‘‘(I) is a dedicated vehicle that is 

16 only capable of operating on an alter17 native fuel, 

18 ‘‘(II) is a bi-fuel vehicle that is 

19 capable of operating on compressed or 

20 liquefied natural gas and gasoline or 

21 diesel fuel, or 

22 ‘‘(III) is a duel-fuel vehicle that 

23 is capable of operating on a mixture 

24 of compressed or liquefied natural gas 

25 and gasoline or diesel fuel.’’. 


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1 (b) CONVERSIONS AND REPOWERS.—Paragraph (4) 

2 of section 30B(e) is amended by adding at the end the 

3 following new subparagraph: 

4 ‘‘(C) CONVERSIONS AND REPOWERS.— 

5 ‘‘(i) IN GENERAL.—The term ‘new 

6 qualified alternative fuel motor vehicle’ in7 cludes the conversion or repower of a new 

8 or used vehicle so that it is capable of op9 erating on an alternative fuel as it was not 

10 previously capable of operating on an alter11 native fuel. 

12 ‘‘(ii) TREATMENT AS NEW.—A vehicle 

13 which has been converted to operate on an 

14 alternative fuel shall be treated as new on 

15 the date of such conversion for purposes of 

16 this section. 

17 ‘‘(iii) RULE OF CONSTRUCTION.—In 

18 the case of a used vehicle which is con19 verted or repowered, nothing in this section 

20 shall be construed to require that the 

21 motor vehicle be acquired in the year the 

22 credit is claimed under this section with re23 spect to such vehicle.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

4 SEC. 105. PROVIDING FOR THE TREATMENT OF PROPERTY 

5 PURCHASED BY INDIAN TRIBAL GOVERN6 MENTS. 

7 (a) IN GENERAL.—Paragraph (6) of section 30B(h) 

8 and paragraph (2) of section 30C(e) are both amended 

9 by inserting ‘‘, or an Indian Tribal Government’’ after 

10 ‘‘section 50(b)’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to property placed in service after 

13 the date of the enactment of this Act. 

14 TITLE II—PROMOTE PRODUC15 TION OF NGVS BY ORIGINAL 

16 EQUIPMENT MANUFACTUR17 ERS 

18 SEC. 201. CREDIT FOR PRODUCING VEHICLES FUELED BY 

19 NATURAL GAS OR LIQUIFIED NATURAL GAS. 

20 (a) IN GENERAL.—Subpart D of part IV of sub21 chapter A of chapter 1 is amended by inserting after sec22 tion 45R the following new section: 


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1 ‘‘SEC. 45S. PRODUCTION OF VEHICLES FUELED BY NAT2 URAL GAS OR LIQUIFIED NATURAL GAS. 

3 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

4 the case of a taxpayer who is an original manufacturer 

5 of natural gas vehicles, the natural gas vehicle credit de6 termined under this section for any taxable year with re7 spect to each eligible natural gas vehicle produced by the 

8 taxpayer during such year is an amount equal to the lesser 

9 of— 

10 ‘‘(1) 10 percent of the manufacturer’s basis in 

11 such vehicle, or 

12 ‘‘(2) $4,000. 

13 ‘‘(b) AGGREGATE CREDIT ALLOWED.—The aggre14 gate amount of credit allowed under subsection (a) with 

15 respect to a taxpayer for any taxable year shall not exceed 

16 $200,000,000 reduced by the amount of the credit allowed 

17 under subsection (a) to the taxpayer (or any predecessor) 

18 for all prior taxable years. 

19 ‘‘(c) DEFINITIONS.—For the purposes of this sec20 tion— 

21 ‘‘(1) ELIGIBLE NATURAL GAS VEHICLE.—The 

22 term ‘eligible natural gas vehicle’ means a motor ve23 hicle (as defined in section 30B(h)(1)) that is capa24 ble of operating on natural gas and is described in 

25 30B(e)(4)(A). 


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1 ‘‘(2) MANUFACTURER.—The term ‘manufac2 turer’ has the meaning given such term in regula3 tions prescribed by the Administrator of the Envi4 ronmental Protection Agency for purposes of title II 

5 of the Clean Air Act (42 U.S.C. 7521 et seq.). 

6 ‘‘(d) SPECIAL RULES.—For purposes of this sec7 tion— 

8 ‘‘(1) IN GENERAL.—Rules similar to the rules 

9 of subsections (c), (d), and (e) of section 52 shall 

10 apply. 

11 ‘‘(2) CONTROLLED GROUPS.— 

12 ‘‘(A) IN GENERAL.—All persons treated as 

13 a single employer under subsection (a) or (b) of 

14 section 52 or subsection (m) or (o) of section 

15 414 shall be treated as a single producer. 

16 ‘‘(B) INCLUSION OF FOREIGN CORPORA17 TIONS.—For purposes of subparagraph (A), in 

18 applying subsections (a) and (b) of section 52 

19 to this section, section 1563 shall be applied 

20 without regard to subsection (b)(2)(C) thereof. 

21 ‘‘(C) VERIFICATION.—No amount shall be 

22 allowed as a credit under subsection (a) with 

23 respect to which the taxpayer has not submitted 

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1 retary, in consultation with the Secretary of 

2 Energy, determines necessary. 

3 ‘‘(e) TERMINATION.—This section shall not apply to 

4 any vehicle produced after December 31, 2016.’’. 

5 (b) CREDIT TO BE PART OF BUSINESS CREDIT.— 

6 Section 38(b) is amended by striking ‘‘plus’’ at the end 

7 of paragraph (35), by striking the period at the end of 

8 paragraph (36) and inserting ‘‘, plus’’, and by adding at 

9 the end the following: 

10 ‘‘(37) the natural gas vehicle credit determined 

11 under section 45S(a).’’. 

12 (c) CONFORMING AMENDMENT.—The table of sec13 tions for subpart D of part IV of subchapter A of chapter 

14 1 is amended by inserting after the item relating to section 

15 45R the following new item: 

‘‘Sec. 45S. Production of vehicles fueled by natural gas or liquefied natural 

gas.’’. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to vehicles produced after Decem18 ber 31, 2011. 

19 SEC. 202. ADDITIONAL VEHICLES QUALIFYING FOR THE AD20 VANCED TECHNOLOGY VEHICLES MANUFAC21 TURING INCENTIVE PROGRAM. 

22 (a) IN GENERAL.—Notwithstanding any other provi23 sion of law, a covered vehicle (as defined in subsection (b)) 

24 shall be considered an advanced technology vehicle for 


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1 purposes of the advanced technology vehicle incentive pro2 gram established under section 136 of the Energy Inde3 pendence and Security Act of 2007 (42 U.S.C. 17013), 

4 and manufacturers and component suppliers of such cov5 ered vehicles shall be eligible for an award under such sec6 tion. 

7 (b) DEFINITIONS.—As used in this section— 

8 (1) the term ‘‘covered vehicle’’ means a light9 duty vehicle or a medium-duty or heavy-duty truck 

10 or bus that is only capable of operating on com11 pressed or liquefied natural gas, a bi-fueled motor 

12 vehicle that is capable of achieving a minimum of 85 

13 percent of its total range with compressed or lique14 fied natural gas, or a dual-fuel vehicle that operates 

15 on a mixture of natural gas and gasoline or diesel 

16 fuel but is not capable of operating on a mixture of 

17 less than 75 percent natural gas; 

18 (2) the term ‘‘bi-fuel vehicle’’ means a vehicle 

19 that is capable of operating on compressed or lique20 fied natural gas and gasoline or diesel fuel; and 

21 (3) the term ‘‘dual-fuel vehicle’’ means a vehicle 

22 that is capable of operating on a mixture of com23 pressed or liquefied natural gas and gasoline or die24 sel fuel. 


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1 TITLE III—INCENTIVIZE THE IN2 STALLATION OF NATURAL 

3 GAS FUEL PUMPS 

4 SEC. 301. EXTENSION AND MODIFICATION OF ALTER5 NATIVE FUEL VEHICLE REFUELING PROP6 ERTY CREDIT. 

7 (a) IN GENERAL.—Subsection (g) of section 30C is 

8 amended by striking ‘‘and’’ at the end of paragraph (1), 

9 by redesignating paragraph (2) as paragraph (3), and by 

10 inserting after paragraph (1) the following new paragraph: 

11 ‘‘(2) in the case of property relating to com12 pressed or liquefied natural gas, after December 31, 

13 2016, and’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 subsection (a) shall apply to property placed in service 

16 after the date of the enactment of this Act. 

17 SEC. 302. INCREASE IN CREDIT FOR CERTAIN ALTER18 NATIVE FUEL VEHICLE REFUELING PROP19 ERTIES. 

20 (a) IN GENERAL.—Subsection (b) of section 30C is 

21 amended to read as follows: 

22 ‘‘(b) LIMITATION.—The credit allowed under sub23 section (a) with respect to all qualified alternative fuel ve24 hicle refueling property placed in service by the taxpayer 

25 during the taxable year at a location shall not exceed— 


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1 ‘‘(1) except as provided in paragraph (2), 

2 $30,000 in the case of a property of a character 

3 subject to an allowance for depreciation, 

4 ‘‘(2) in the case of compressed natural gas 

5 property and liquefied natural gas property which is 

6 of a character subject to an allowance for deprecia7 tion, the lesser of— 

8 ‘‘(A) 50 percent of such cost, or 

9 ‘‘(B) $100,000, and 

10 ‘‘(3) $2,000 in any other case.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to property placed in service in 

13 taxable years beginning after December 31, 2011. 

14 TITLE IV—NATURAL GAS 

15 VEHICLES 

16 SEC. 401. GRANTS FOR NATURAL GAS VEHICLES RESEARCH 

17 AND DEVELOPMENT. 

18 (a) RESEARCH, DEVELOPMENT AND DEMONSTRA19 TION PROGRAMS.—The Secretary shall provide funding to 

20 improve the performance and efficiency and integration of 

21 natural gas powered motor vehicles and heavy-duty on22 road vehicles as part of any programs funded pursuant 

23 to section 911 of the Energy Policy Act of 2005 (42 

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1 duty engines pursuant to section 754 of the Energy Policy 

2 Act of 2005 (42 U.S.C. 16102). 

3 (b) IN GENERAL.—The Secretary of Energy may 

4 make grants to original equipment manufacturers of light5 duty and heavy-duty natural gas vehicles for the develop6 ment of engines that reduce emissions, improve perform7 ance and efficiency, and lower cost. 

8 SEC. 402. SENSE OF THE CONGRESS REGARDING EPA CER9 TIFICATION OF NGV RETROFIT KITS. 

10 It is the sense of the Congress that the Environ11 mental Protection Agency should further streamline the 

12 process for certification of natural gas vehicle retrofit kits 

13 to promote energy security while still fulfilling the mission 

14 of the Clean Air Act. 

15 SEC. 403. AMENDMENT TO SECTION 508 OF THE ENERGY 

16 POLICY ACT OF 1992. 

17 (a) REPOWER OR CONVERTED ALTERNATIVE

18 FUELED VEHICLES DEFINED.—Subsection (a) of section 

19 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) 

20 is amended by adding at the end the following new para21 graph: 

22 ‘‘(6) REPOWERED OR CONVERTED.—The term 

23 ‘repowered or converted’ means modified with a cer24 tified or approved engine or aftermarket system so 


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1 that the vehicle is capable of operating on an alter2 native fuel.’’. 

3 (b) ALLOCATION OF CREDITS.—Subsection (b) of 

4 section 508 of the Energy Policy Act of 1992 (42 U.S.C. 

5 13258) is amended by adding at the end the following new 

6 paragraph: 

7 ‘‘(3) REPOWERED OR CONVERTED VEHICLES.— 

8 Not later than January 1, 2012, the Secretary shall 

9 allocate credits to fleets or covered persons that 

10 repower or convert an existing vehicle so that it is 

11 capable of operating on an alternative fuel. In the 

12 case of any medium-duty or heavy-duty vehicle that 

13 is repowered or converted, the Secretary shall allo14 cate additional credits for such vehicles if the Sec15 retary determines that such vehicles displace more 

16 petroleum than light-duty alternative fueled vehicles. 

17 The Secretary shall include a requirement that such 

18 vehicles remain in the fleet for a period of no less 

19 than 2 years in order to continue to qualify for cred20 it. The Secretary also shall extend the flexibility af21 forded in this section to Federal fleets subject to the 

22 purchase provisions contained in section 303 of this 

23 Act.’’. 


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1 TITLE V—TRANSIT SYSTEMS 

2 SEC. 501. FEDERAL SHARE OF COSTS FOR EQUIPMENT FOR 

3 COMPLIANCE WITH CLEAN AIR ACT. 

4 Section 5323(i) of title 49, United States Code, is 

5 amended— 

6 (1) in paragraph (1)— 

7 (A) in the paragraph heading, by striking 

8 ‘‘AND CLEAN AIR ACT’’; 

9 (B) in the first sentence, by striking ‘‘or 

10 vehicle-related’’ and all that follows through 

11 ‘‘Clean Air Act’’; and 

12 (C) by striking ‘‘those Acts’’ each place it 

13 appears and inserting ‘‘the Americans with Dis14 abilities Act of 1990 (42 U.S.C. 12101 et 

15 seq.)’’; 

16 (2) by redesignating paragraph (2) as para17 graph (3); and 

18 (3) by inserting after paragraph (1) the fol19 lowing: 

20 ‘‘(2) EQUIPMENT FOR COMPLIANCE WITH

21 CLEAN AIR ACT.— 

22 ‘‘(A) IN GENERAL.—A grant for a project 

23 to be assisted under this chapter that involves 

24 acquiring vehicle-related equipment or facilities 

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1 related equipment or facilities) for purposes of 

2 complying with or maintaining compliance with 

3 the Clean Air Act (42 U.S.C. 7401 et seq.) 

4 shall be made for— 

5 ‘‘(i) 100 percent of the net project 

6 cost of the equipment or facilities attrib7 utable to compliance with that Act for any 

8 amounts of not more than $75,000; and 

9 ‘‘(ii) 90 percent of the net project cost 

10 of the equipment or facilities attributable 

11 to compliance with that Act for any 

12 amounts of more than $75,000. 

13 ‘‘(B) COSTS.—The Secretary shall have 

14 discretion to determine, through practicable ad15 ministrative procedures, the costs of equipment 

16 or facilities attributable to compliance with the 

17 Clean Air Act (42 U.S.C. 7401 et seq.).’’. 

18 SEC. 502. NATURAL GAS TRANSIT INFRASTRUCTURE IN19 VESTMENT. 

20 (a) ESTABLISHMENT.—The Secretary of Transpor21 tation shall establish and administer a program to encour22 age the development of natural gas fueling infrastructure 

23 to be used by transit agencies. 

24 (b) USE.—Funding provided under the program may 

25 be used for the purpose of building new or expanded fuelVerDate Mar 15 2010 06:06 Nov 17, 2011 Jkt 019200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S1863.IS S1863

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1 ing facilities, if the expansion is for the purposes of fueling 

2 additional buses with natural gas. 

3 (c) COMPETITIVE GRANTS.—The Secretary shall— 

4 (1) administer the funding providing under the 

5 program on a competitive basis; and 

6 (2) award funding after an evaluation of project 

7 proposals that includes— 

8 (A) the overall quantity of petroleum to be 

9 displaced over the life of the proposed project; 

10 (B) the amount of private funding or local 

11 funding that is available to offset the cost of 

12 the project; and 

13 (C) the technical and economical feasibility 

14 of the project. 

15 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 $100,000,000, to remain available until expended. 

18 TITLE VI—USER FEES 

19 SEC. 601. USER FEES. 

20 (a) LIQUEFIED NATURAL GAS.—Clause (ii) of sec21 tion 4041(a)(2)(B) is amended by striking ‘‘24.3 cents per 

22 gallon’’ and inserting ‘‘the sum of the Highway Trust 

23 Fund financing rate and the Natural Gas Transportation 

24 Incentives financing rate’’. 


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1 (b) COMPRESSED NATURAL GAS.—The second sen2 tence of subparagraph (A) of section 4041(a)(3) is amend3 ed by striking ‘‘18.3 cents per energy equivalent of a gal4 lon of gasoline’’ and inserting ‘‘the sum of the Highway 

5 Trust Fund financing rate and the Natural Gas Transpor6 tation Incentives financing rate’’. 

7 (c) HIGHWAY TRUST FUND FINANCING RATE AND

8 NATURAL GAS TRANSPORTATION INCENTIVES FINANCING

9 RATE.—Subsection (a) of section 4041 is amended by 

10 adding at the end the following new paragraph: 

11 ‘‘(4) HIGHWAY TRUST FUND FINANCING RATE

12 AND NATURAL GAS TRANSPORTATION INCENTIVES

13 FINANCING RATE.—For purposes of this title— 

14 ‘‘(A) HIGHWAY TRUST FUND FINANCING

15 RATE.—The term ‘Highway Trust Fund financ16 ing rate’ means— 

17 ‘‘(i) with respect to liquefied natural 

18 gas, 24.3 cents per gallon, and 

19 ‘‘(ii) with respect to compressed nat20 ural gas, 18.3 cents per energy equivalent 

21 of a gallon of gasoline. 

22 ‘‘(B) NATURAL GAS TRANSPORTATION IN23 CENTIVES FINANCING RATE.— 


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1 ‘‘(i) IN GENERAL.—The term ‘Natural 

2 Gas Transportation Incentives financing 

3 rate’ means— 

4 ‘‘(I) with respect to liquefied nat5 ural gas, the applicable amount per 

6 gallon, and 

7 ‘‘(II) with respect to compressed 

8 natural gas, the applicable amount 

9 per energy equivalent of a gallon of 

10 gasoline. 

11 ‘‘(ii) APPLICABLE AMOUNT.—For pur12 poses of clause (i), the applicable amount 

13 shall be determined in accordance with the 

14 following table: 

‘‘Calendar year Applicable 

amount 

2014 ................................................................................................ 2.5 cents

2015 ................................................................................................ 2.5 cents

2016 ................................................................................................ 5 cents

2017 ................................................................................................ 5 cents

2018 ................................................................................................ 10 cents

2019 ................................................................................................ 10 cents

2020 ................................................................................................ 12.5 cents

2021 ................................................................................................ 12.5 cents

2022 and thereafter ........................................................................ zero. 

15 ‘‘(iii) EXEMPTION FOR FUEL DIS16 PENSED FROM CERTAIN PROPERTY.—In 

17 the case of liquefied natural gas or com18 pressed natural gas dispensed from prop19 erty for which a credit under section 


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1 30C(b)(3) would be allowable, the applica2 ble amount for any calendar year is zero.’’. 

3 (d) NATURAL GAS TRANSPORTATION INCENTIVES

4 FINANCING RATE DEPOSITED IN GENERAL FUND.— 

5 Paragraph (4) of section 9503 is amended by striking 

6 ‘‘or’’ at the end of subparagraph (C), by striking the pe7 riod at the end of subparagraph (D)(iii) and inserting 

8 ‘‘or’’, and by adding at the end the following new subpara9 graph: 

10 ‘‘(E) section 4041 to the extent attrib11 utable to the Natural Gas Transportation In12 centives financing rate.’’. 

Æ 


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