II 

111TH CONGRESS 

1ST SESSION S. 1350 

To encourage increased production of natural gas and liquefied petroleum 

gas vehicles and to provide tax incentives for natural gas and liquefied 

petroleum gas vehicle infrastructure, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 25, 2009 

Mr. PRYOR (for himself and Mr. INHOFE) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To encourage increased production of natural gas and liquefied petroleum gas vehicles and to provide tax incentives 

for natural gas and liquefied petroleum gas vehicle infrastructure, and for other purposes. 

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; TABLE OF CONTENTS. 

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

5 ‘‘Fueling America Act of 2009’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—INCREASED PRODUCTION OF NATURAL GAS AND 

LIQUEFIED PETROLEUM GAS VEHICLES 

Sec. 101. Definitions. 

Sec. 102. Natural gas and liquefied petroleum gas vehicle research, development, and demonstration projects. 

Sec. 103. Study of increasing natural gas and liquefied petroleum gas vehicles 

in Federal fleet. 

Sec. 104. Clean school bus program. 

TITLE II—TAX INCENTIVES 

Sec. 201. Credit for natural gas and liquefied petroleum gas refueling property. 

Sec. 202. Credit for purchase of vehicles fueled by natural gas or liquefied petroleum gas. 

1 TITLE I—INCREASED PRODUC2 TION OF NATURAL GAS AND 

3 LIQUEFIED PETROLEUM GAS 

4 VEHICLES 

5 SEC. 101. DEFINITIONS. 

6 In this title: 

7 (1) ADMINISTRATOR.—The term ‘‘Adminis8 trator’’ means the Administrator of the Environ9 mental Protection Agency. 

10 (2) NATURAL GAS.—The term ‘‘natural gas’’ 

11 means— 

12 (A) compressed natural gas; 

13 (B) liquefied natural gas; 

14 (C) biomethane; and 

15 (D) mixtures of— 

16 (i) hydrogen; and 

17 (ii) methane, biomethane, compressed 

18 natural gas, or liquefied natural gas. 


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1 (3) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Energy. 

3 SEC. 102. NATURAL GAS AND LIQUEFIED PETROLEUM GAS 

4 VEHICLE RESEARCH, DEVELOPMENT, AND 

5 DEMONSTRATION PROJECTS. 

6 (a) IN GENERAL.—The Secretary, in coordination 

7 with the Administrator, shall conduct a program of nat8 ural gas and liquefied petroleum gas vehicle research, de9 velopment, and demonstration. 

10 (b) PURPOSES.—The purposes of the program con11 ducted under this section are to focus on— 

12 (1) the continued improvement and develop13 ment of new, cleaner, more efficient light-duty, me14 dium-duty, and heavy-duty natural gas and liquefied 

15 petroleum gas vehicle engines; 

16 (2) the integration of those engines into light17 duty, medium-duty, and heavy-duty natural gas and 

18 liquefied petroleum gas vehicles for onroad and 

19 offroad applications; 

20 (3) expanding product availability by assisting 

21 manufacturers with the certification of the engines 

22 or vehicles described in paragraph (1) or (2) to com23 ply with Federal or California certification require24 ments and in-use emission standards; 


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1 (4) the demonstration and proper operation and 

2 use of the vehicles described in paragraph (2) under 

3 all operating conditions; 

4 (5) the development and improvement of na5 tionally recognized codes and standards for the con6 tinued safe operation of vehicles described in para7 graph (2) and the components of the vehicles; 

8 (6) improvement in the reliability and efficiency 

9 of natural gas and liquefied petroleum gas fueling 

10 station infrastructure; 

11 (7) the certification of natural gas and liquefied 

12 petroleum gas fueling station infrastructure to na13 tionally recognized and industry safety standards; 

14 (8) the improvement in the reliability and effi15 ciency of onboard natural gas and liquefied petro16 leum gas fuel storage systems; 

17 (9) the development of new natural gas and liq18 uefied petroleum gas fuel storage materials; 

19 (10) the certification of onboard natural gas 

20 and liquefied petroleum gas fuel storage systems to 

21 nationally recognized and industry safety standards; 

22 and 

23 (11) the use of natural gas and liquefied petro24 leum gas engines in hybrid vehicles. 


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1 (c) CERTIFICATION OF AFTERMARKET CONVERSION

2 SYSTEMS.— 

3 (1) IN GENERAL.—The Secretary shall coordi4 nate with the Administrator on issues related to 

5 streamlining the certification of natural gas and liq6 uefied petroleum gas aftermarket conversion systems 

7 to comply with appropriate Federal certification re8 quirements and in-use emission standards. 

9 (2) STREAMLINED CERTIFICATION.—For pur10 poses of paragraph (1), streamlined certification 

11 shall include providing aftermarket conversion sys12 tem manufacturers the option to continue to sell and 

13 install systems on engines and test groups for which 

14 the manufacturers have previously received a certifi15 cate of conformity without having to request a new 

16 certificate in future years. 

17 (d) COOPERATION AND COORDINATION WITH INDUS18 TRY.—In developing and carrying out the program under 

19 this section, the Secretary shall coordinate with the nat20 ural gas and liquefied petroleum gas vehicle industry to 

21 ensure, to the maximum extent practicable, cooperation 

22 between the public and the private sector. 

23 (e) ADMINISTRATION.—The program under this sec24 tion shall be conducted in accordance with sections 3001 


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1 and 3002 of the Energy Policy Act of 1992 (42 U.S.C. 

2 13541, 13542). 

3 (f) REPORT.—Not later than 2 years after the date 

4 of enactment of this Act, the Secretary shall submit to 

5 the appropriate committees of Congress a report on the 

6 implementation of this section. 

7 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

8 authorized to be appropriated to the Secretary to carry 

9 out this section $30,000,000 for each of fiscal years 2010 

10 through 2014. 

11 SEC. 103. STUDY OF INCREASING NATURAL GAS AND LIQ12 UEFIED PETROLEUM GAS VEHICLES IN FED13 ERAL FLEET. 

14 Not later than 180 days after the date of enactment 

15 of this Act, the Administrator of General Services, in con16 sultation with the Administrator, shall— 

17 (1) conduct a study on whether or not the Fed18 eral fleet should increase the number of light-duty, 

19 medium-duty, and heavy-duty natural gas and lique20 fied petroleum gas vehicles in the fleet; 

21 (2) assess the barriers to increasing the number 

22 of natural gas and liquefied petroleum gas vehicles 

23 in the fleet; 


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1 (3) assess the potential for maximizing the use 

2 of natural gas and liquefied petroleum gas vehicles 

3 in the fleet; and 

4 (4) submit to the appropriate committees of 

5 Congress a report on the results of the study. 

6 SEC. 104. CLEAN SCHOOL BUS PROGRAM. 

7 (a) IN GENERAL.—Section 6015 of the Safe, Ac8 countable, Flexible, Efficient Transportation Equity Act: 

9 A Legacy for Users (42 U.S.C. 16091a) is amended— 

10 (1) in subsection (b)(5)— 

11 (A) in subparagraph (A)— 

12 (i) in the subparagraph heading, by 

13 striking ‘‘50’’ and inserting ‘‘65’’; 

14 (ii) in the matter preceding clause (i), 

15 by striking ‘‘one-half’’ and inserting ‘‘65 

16 percent’’; 

17 (iii) in clause (i)(II), by striking ‘‘or’’ 

18 after the semicolon at the end; 

19 (iv) in clause (ii), by striking the pe20 riod at the end and inserting as semicolon; 

21 and 

22 (v) by adding at the end the following: 

23 ‘‘(iii) clean school buses with engines 

24 manufactured in model year 2010, 2011, 

25 2012, 2013, or 2014 that satisfy reguVerDate Nov 24 2008 22:35 Jun 27, 2009 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1350.IS S1350

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1 latory requirements established by the Ad2 ministrator for emissions of oxides of ni3 trogen and particulate matter to be appli4 cable for school buses manufactured in 

5 that model year; or 

6 ‘‘(iv) clean school buses with engines 

7 only fueled by compressed natural gas, liq8 uefied natural gas, or liquefied petroleum 

9 gas, except that school buses described in 

10 this clause may be eligible for a grant that 

11 is equal to an additional 25 percent of the 

12 acquisition costs of the school buses (in13 cluding fueling infrastructure).’’; and 

14 (B) in subparagraph (B)— 

15 (i) in the subparagraph heading, by 

16 striking ‘‘25’’ and inserting ‘‘50’’; and 

17 (ii) in the matter preceding clause (i), 

18 by striking ‘‘one-fourth’’ and inserting ‘‘50 

19 percent’’; and 

20 (2) in subsection (d)— 

21 (A) in paragraph (1), by striking ‘‘and’’ at 

22 the end; 

23 (B) in paragraph (2), by striking ‘‘2008, 

24 2009, and 2010.’’ and inserting ‘‘2008 and 

25 2009; and’’; and 


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1 (C) by adding at the end the following: 

2 ‘‘(3) $75,000,000 for each of fiscal years 2010 

3 through 2014.’’. 

4 (b) TECHNICAL CORRECTION.—Section 741 of the 

5 Energy Policy Act of 2005 (42 U.S.C. 16091) is repealed. 

6 TITLE II—TAX INCENTIVES 

7 SEC. 201. CREDIT FOR NATURAL GAS AND LIQUEFIED PE8 TROLEUM GAS REFUELING PROPERTY. 

9 (a) INCREASE IN CREDIT PERCENTAGE FOR NAT10 URAL GAS AND LIQUEFIED PETROLEUM GAS REFUELING

11 PROPERTY.—Subsection (e) of section 30C of the Internal 

12 Revenue Code of 1986 is amended by adding at the end 

13 the following new paragraph: 

14 ‘‘(7) SPECIAL RULE FOR QUALIFIED NATURAL

15 GAS VEHICLE REFUELING PROPERTY AND QUALI16 FIED LIQUEFIED PETROLEUM GAS VEHICLE RE17 FUELING PROPERTY.— 

18 ‘‘(A) IN GENERAL.—In the case of any 

19 qualified natural gas vehicle refueling property 

20 and any qualified liquefied petroleum gas vehi21 cle refueling property to which paragraph (6) 

22 does not apply— 

23 ‘‘(i) subsection (a) shall be applied by 

24 substituting ‘50 percent’ for ‘30 percent’, 


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1 ‘‘(ii) subsection (b)(1) shall be applied 

2 by substituting ‘$50,000’ for ‘$30,000’, 

3 and 

4 ‘‘(iii) subsection (b)(2) shall be ap5 plied by substituting ‘$2,000’ for ‘$1,000’. 

6 ‘‘(B) QUALIFIED NATURAL GAS VEHICLE

7 REFUELING PROPERTY.—For purposes of this 

8 paragraph, the term ‘qualified natural gas vehi9 cle refueling property’ has the same meaning as 

10 the term ‘qualified alternative fuel vehicle re11 fueling property’ would have under subsection 

12 (c) if only natural gas, compressed natural gas, 

13 and liquefied natural gas were treated as clean14 burning fuels for purposes of section 179A(d). 

15 ‘‘(C) QUALIFIED LIQUEFIED PETROLEUM

16 GAS VEHICLE REFUELING PROPERTY.—For 

17 purposes of this paragraph, the term ‘qualified 

18 liquefied petroleum gas vehicle refueling prop19 erty’ has the same meaning as the term ‘quali20 fied alternative fuel vehicle refueling property’ 

21 would have under subsection (c) if only liquefied 

22 petroleum gas were treated as a clean-burning 

23 fuel for purposes of section 179A(d).’’. 


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1 (b) EXTENSION OF CREDIT.—Subsection (g) of sec2 tion 30C of the Internal Revenue Code of 1986 is amended 

3 to read as follows: 

4 ‘‘(g) TERMINATION.—This section shall not apply to 

5 any property placed in service after December 31, 2014.’’. 

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

7 this section shall apply to property placed in service after 

8 December 31, 2008, in taxable years ending after such 

9 date. 

10 SEC. 202. CREDIT FOR PURCHASE OF VEHICLES FUELED BY 

11 NATURAL GAS OR LIQUEFIED PETROLEUM 

12 GAS. 

13 (a) IN GENERAL.—Subsection (e) of section 30B of 

14 the Internal Revenue Code of 1986 is amended by adding 

15 at the end the following new paragraph: 

16 ‘‘(6) HIGHER INCREMENTAL COST LIMITS FOR

17 NATURAL GAS VEHICLES AND LIQUEFIED PETRO18 LEUM GAS VEHICLES.— 

19 ‘‘(A) IN GENERAL.—In the case of any eli20 gible natural gas motor vehicle and any eligible 

21 liquefied petroleum gas motor vehicle, para22 graph (3) shall be applied by multiplying each 

23 of the dollar amounts contained in such para24 graph by 2. 


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1 ‘‘(B) ELIGIBLE NATURAL GAS MOTOR VE2 HICLE.—For purposes of this paragraph, the 

3 term ‘eligible natural gas motor vehicle’ means 

4 (except as provided in clause (ii)) a new quali5 fied alternative fuel motor vehicle or 

6 aftermarket conversion system the final assem7 bly of which is in the United States and that— 

8 ‘‘(i) is only capable of operating on 

9 compressed natural gas or liquefied natural 

10 gas, or 

11 ‘‘(ii) is capable of operating for more 

12 than 175 miles on compressed natural gas 

13 or liquefied natural gas and is capable of 

14 operating on gasoline or diesel fuel. 

15 ‘‘(C) ELIGIBLE LIQUEFIED PETROLEUM

16 GAS MOTOR VEHICLE.—For purposes of this 

17 paragraph, the term ‘eligible liquefied petro18 leum gas motor vehicle’ means (except as pro19 vided in clause (ii)) a new qualified alternative 

20 fuel motor vehicle or aftermarket conversion 

21 system the final assembly of which is in the 

22 United States and that— 

23 ‘‘(i) is only capable of operating on 

24 liquefied petroleum gas, or 


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1 ‘‘(ii) is capable of operating for more 

2 than 175 miles on liquefied petroleum gas 

3 and is capable of operating on gasoline or 

4 diesel fuel. 

5 ‘‘(D) AFTERMARKET CONVERSION SYS6 TEM.—For purposes of this paragraph, the 

7 term ‘aftermarket conversion system’ means 

8 property that converts a vehicle that is not de9 scribed in this paragraph into an eligible nat10 ural gas motor vehicle (for purposes of subpara11 graph (B)) or an eligible liquefied petroleum 

12 gas motor vehicle (for purposes of subpara13 graph (C)).’’. 

14 (b) EXTENSION OF CREDIT FOR NATURAL GAS AND

15 LIQUEFIED PETROLEUM GAS VEHICLES.—Paragraph (4) 

16 of section 30B(k) of the Internal Revenue Code of 1986 

17 is amended— 

18 (1) by striking ‘‘and’’ at the end of paragraph 

19 (3), 

20 (2) by striking the period at the end of para21 graph (4) and inserting ‘‘, and’’, 

22 (3) by striking ‘‘(as described in subsection 

23 (e))’’ in paragraph (4) and inserting ‘‘(as described 

24 in paragraph (4) or (5) of subsection (e))’’, and 


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1 (4) by adding at the end the following new 

2 paragraph: 

3 ‘‘(5) in the case of a new qualified alternative 

4 fuel vehicle described in subsection (e)(6), December 

5 31, 2014.’’. 

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

7 this section shall apply to vehicles placed in service after 

8 December 31, 2008, in taxable years ending after such 

9 date. 

Æ 


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