II

105TH CONGRESS

1ST SESSION S. 1141

To amend the Energy Policy Act of 1992 to take into account newly developed

renewable energy-based fuels and to equalize alternative fuel vehicle acquisition incentives to increase the flexibility of controlled fleet owners

and operators, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 2, 1997

Mr. JOHNSON (for himself, Mr. CRAIG, Mr. WELLSTONE, and Mr. GRASSLEY)

introduced the following bill; which was read twice and referred to the

Committee on Energy and Natural Resources

A BILL

To amend the Energy Policy Act of 1992 to take into account newly developed renewable energy-based fuels and

to equalize alternative fuel vehicle acquisition incentives

to increase the flexibility of controlled fleet owners and

operators, 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 ‘‘Biodiesel Energy Development Act of 1997’’.

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

7 this Act is as follows:
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Sec. 1. Short title; table of contents.

TITLE I—ALTERNATIVE FUELS—GENERAL

Sec. 101. Definitions.

Sec. 102. Amendments to the Energy Policy and Conservation Act.

Sec. 103. Minimum Federal fleet requirement.

TITLE II—ALTERNATIVE FUELS—NON-FEDERAL PROGRAMS

Sec. 201. State and local incentives programs.

Sec. 202. Alternative fuel bus program.

Sec. 203. Alternative fuel use in nonroad vehicles, engines, and marine vessels.

TITLE III—AVAILABILITY AND USE OF REPLACEMENT FUELS,

ALTERNATIVE FUELS, AND ALTERNATIVE FUELED VEHICLES

Sec. 301. Mandate for alternative fuel providers.

Sec. 302. Replacement fuel supply and demand program.

Sec. 303. Modification of goals; additional rulemaking authority.

Sec. 304. Fleet requirement program.

Sec. 305. Credits.

Sec. 306. Secretary’s recommendation to Congress.

1 TITLE I—ALTERNATIVE FUELS—

2 GENERAL

3 SEC. 101. DEFINITIONS.

4 Section 301 of the Energy Policy Act of 1992 (42

5 U.S.C. 13211) is amended—

6 (1) in paragraph (2), by striking ‘‘derived from

7 biological materials’’ and inserting ‘‘derived from do8 mestically produced renewable biological materials

9 (including biodiesel) at mixtures not less than 20

10 percent by volume’’;

11 (2) in paragraph (8), by striking subparagraph

12 (B) and inserting the following:

13 ‘‘(B) a motor vehicle (other than an auto14 mobile) or marine vessel that is capable of oper15 ating on alternative fuel, gasoline, or diesel fuel,
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1 or an approved blend of alternative fuel and pe2 troleum-based fuel.’’;

3 (3) by redesignating paragraphs (11) through

4 (14) as paragraphs (12), (14), (15), and (16), re5 spectively;

6 (4) by inserting after paragraph (10) the fol7 lowing:

8 ‘‘(11) the term ‘heavy duty motor vehicle’

9 means a motor vehicle or marine vessel that is great10 er than 8,500 pounds gross vehicle weight rating;’’;

11 (5) by inserting after paragraph (12) (as redes12 ignated by paragraph (3)) the following:

13 ‘‘(13) the term ‘marine vessel’ means a motor14 ized watercraft or other artificial contrivance used as

15 a means of transportation primarily on the navigable

16 waters of the United States;’’;

17 (6) in paragraph (15) (as redesignated by para18 graph (3)), by striking ‘‘biological materials’’ and in19 serting ‘‘domestically produced renewable biological

20 materials (including biodiesel)’’.

21 SEC. 102. AMENDMENTS TO THE ENERGY POLICY AND CON22 SERVATION ACT.

23 Section 400AA of the Energy Policy and Conserva24 tion Act (42 U.S.C. 6374) is amended—
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1 (1) in the second sentence of subsection

2 (a)(3)(B), by striking ‘‘vehicles converted to use al3 ternative fuels may be acquired if, after conversion,’’

4 and inserting ‘‘existing fleet vehicles may be con5 verted to use alternative fuels at the time of a major

6 vehicle overhaul or rebuild, or vehicles that have

7 been converted to use alternative fuels may be ac8 quired, if’’; and

9 (2) in subsection (g)—

10 (A) in paragraph (2), by striking ‘‘derived

11 from biological materials’’ and inserting ‘‘de12 rived from domestically produced renewable bio13 logical materials (including biodiesel) at mix14 tures not less than 20 percent by volume’’;

15 (B) in paragraph (5), by striking subpara16 graph (B) and inserting the following:

17 ‘‘(B) a motor vehicle (other than an auto18 mobile) or marine vessel that is capable of oper19 ating on alternative fuel, gasoline, or diesel fuel,

20 or an approved blend of alternative fuel and pe21 troleum-based fuel; and’’; and

22 (C) in paragraph (6), by inserting ‘‘or ma23 rine vessel’’ [Same questions as above.]

24 after ‘‘a vehicle’’.
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1 SEC. 103. MINIMUM FEDERAL FLEET REQUIREMENT.

2 Section 303 of the Energy Policy Act of 1992 (42

3 U.S.C. 13212) is amended—

4 (1) by redesignating subsections (c) through (f)

5 as subsections (d) through (g), respectively; and

6 (2) by inserting after subsection (b) the follow7 ing:

8 ‘‘(c) HEAVY DUTY AND DUAL-FUELED VEHICLE

9 COMPLIANCE CREDITS.—

10 ‘‘(1) IN GENERAL.—For purposes of meeting

11 the requirements of this section, the Secretary, in

12 consultation with the Administrator of General Serv13 ices, if appropriate, shall permit a Federal fleet to

14 acquire 1 heavy duty alternative fueled vehicle in

15 place of 2 light duty alternative fueled vehicles.

16 ‘‘(2) ADDITIONAL CREDITS.—For purposes of

17 this section, the Secretary, in consultation with the

18 Administrator of General Services, if appropriate,

19 shall permit a Federal fleet to take an additional

20 credit for the purchase and documented use of alter21 native fuel used in a dual-fueled vehicle, comparable

22 conventionally-fueled motor vehicle, or marine vessel.

23 ‘‘(3) ACCOUNTING.—

24 ‘‘(A) IN GENERAL.—In allowing a credit

25 for the purchase of a dual-fueled vehicle or al26 ternative fuel, the Secretary may request a Fed-
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1 eral agency to provide an accounting of the pur2 chase.

3 ‘‘(B) GUIDELINES.—The Secretary shall

4 include any request made under subparagraph

5 (A) in the guidelines required under section

6 308.

7 ‘‘(4) FUEL AND VEHICLE NEUTRALITY.—The

8 Secretary shall carry out this subsection in a man9 ner that is, to the maximum extent practicable, neu10 tral with respect to the type of fuel and vehicle

11 used.’’.

12 TITLE II—ALTERNATIVE

13 FUELS—NON-FEDERAL

14 PROGRAMS

15 SEC. 201. STATE AND LOCAL INCENTIVES PROGRAMS.

16 (a) ESTABLISHMENT OF PROGRAM.—Section 409(a)

17 of the Energy Policy Act of 1992 (42 U.S.C. 13235(a))

18 is amended—

19 (1) in paragraph (2)(A), by striking ‘‘alter20 native fueled vehicles’’ and inserting ‘‘light and

21 heavy duty alternative fueled vehicles and increasing

22 the use of alternative fuels’’; and

23 (2) in paragraph (3)—
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1 (A) in subparagraph (B), by inserting after

2 ‘‘introduction of’’ the following: ‘‘converted or

3 acquired light and heavy duty’’;

4 (B) in subparagraph (E), by inserting

5 after ‘‘of sales of’’ the following: ‘‘, incentives

6 toward use of, and reporting requirements re7 lating to’’; and

8 (C) in subparagraph (G)—

9 (i) by redesignating clauses (i)

10 through (iii) as clauses (ii) through (iv),

11 respectively; and

12 (ii) by inserting after ‘‘cost of—’’ the

13 following:

14 ‘‘(i) alternative fuels;’’.

15 (b) FEDERAL ASSISTANCE TO STATES.—Section

16 409(b) of the Energy Policy Act of 1992 (42 U.S.C.

17 13235(b)) is amended—

18 (1) in paragraph (1)—

19 (A) in subparagraph (B), by striking

20 ‘‘and’’ at the end;

21 (B) in subparagraph (C), by striking the

22 period at the end and inserting ‘‘; and’’; and

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

24 ‘‘(D) grants of Federal financial assistance for

25 the incremental purchase cost of alternative fuels.’’;
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1 (2) in paragraph (2)(B), by inserting after ‘‘be

2 introduced’’ the following: ‘‘and the volume of alter3 native fuel likely to be consumed’’; and

4 (3) in paragraph (3)—

5 (A) by inserting ‘‘alternative fuels and’’

6 after ‘‘in procuring’’; and

7 (B) by inserting ‘‘fuels and’’ after ‘‘of

8 such’’.

9 (c) GENERAL PROVISIONS.—Section 409(c)(2)(A) of

10 the Energy Policy Act of 1992 (42 U.S.C.

11 13235(c)(2)(A)) is amended by inserting after ‘‘alter12 native fueled vehicles in use’’ the following: ‘‘and volume

13 of alternative fuel consumed’’.

14 SEC. 202. ALTERNATIVE FUEL BUS PROGRAM.

15 Section 410(c) of the Energy Policy Act of 1992 (42

16 U.S.C. 13236(c)) is amended in the second sentence by

17 striking ‘‘and the conversion of school buses to dedicated

18 vehicles’’ and inserting ‘‘the incremental cost of alter19 native fuels used in flexible fueled school buses, and the

20 conversion of school buses to alternative fueled vehicles’’.

21 SEC. 203. ALTERNATIVE FUEL USE IN NONROAD VEHICLES,

22 ENGINES, AND MARINE VESSELS.

23 Section 412 of the Energy Policy Act of 1992 (42

24 U.S.C. 13238) is amended—
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1 (1) in the section heading, by striking ‘‘AND

2 ENGINES’’ and inserting ‘‘, ENGINES, AND MA3 RINE VESSELS’’;

4 (2) by striking ‘‘vehicles and engines’’ each

5 place it appears in subsections (a) and (b) and in6 serting ‘‘vehicles, engines, and marine vessels’’;

7 (3) in subsection (a)—

8 (A) in the subsection heading, by striking

9 ‘‘NONROAD VEHICLES AND ENGINES’’ and in10 serting ‘‘IN GENERAL’’;

11 (B) in paragraph (1)—

12 (i) in the first sentence, by striking ‘‘a

13 study’’ and inserting ‘‘studies’’; and

14 (ii) in the second sentence—

15 (I) by striking ‘‘study’’ and in16 serting ‘‘studies’’; and

17 (II) by striking ‘‘2 years’’ and in18 serting ‘‘2, 6, and 10 years’’;

19 (C) in paragraph (2)—

20 (i) by striking ‘‘study’’ each place it

21 appears and inserting ‘‘studies’’; and

22 (ii) in the second sentence, by insert23 ing ‘‘or marine vessels’’ after ‘‘such vehi24 cles’’; and

25 (D) in paragraph (3)—
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1 (i) by striking ‘‘report’’ and inserting

2 ‘‘reports’’; and

3 (ii) by striking ‘‘may’’ and inserting

4 ‘‘shall’’; and

5 (4) in subsection (b)—

6 (A) in the subsection heading, by striking

7 ‘‘AND ENGINES’’ and inserting ‘‘, ENGINES,

8 AND MARINE VESSELS’’; and

9 (B) by striking ‘‘rail transportation, vehi10 cles used at airports, vehicles or engines used

11 for marine purposes, and other vehicles or en12 gines’’ and inserting ‘‘rail and waterway trans13 portation, vehicles used at airports and sea14 ports, vehicles or engines used for marine pur15 poses, marine vessels, and other vehicles, en16 gines, or marine vessels’’.

17 TITLE III—AVAILABILITY AND

18 USE OF REPLACEMENT

19 FUELS, ALTERNATIVE FUELS,

20 AND ALTERNATIVE FUELED

21 VEHICLES

22 SEC. 301. MANDATE FOR ALTERNATIVE FUEL PROVIDERS.

23 Section 501 of the Energy Policy Act of 1992 (42

24 U.S.C. 13251) is amended—
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1 (1) in subsection (a)(1), by inserting ‘‘or

2 heavy’’ after ‘‘new light’’; and

3 (2) in subsection (b)—

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

5 the end;

6 (B) in paragraph (2), by striking the pe7 riod at the end and inserting ‘‘; and’’; and

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

9 ‘‘(3) allow the conversion of an existing fleet ve10 hicle into a dual-fueled alternative fueled vehicle at

11 the time of a major overhaul or rebuild of the vehi12 cle, if the original equipment manufacturer’s war13 ranty continues to apply to the vehicle, pursuant to

14 an agreement between the original equipment manu15 facturer and the person performing the conversion.’’.

16 SEC. 302. REPLACEMENT FUEL SUPPLY AND DEMAND PRO17 GRAM.

18 Section 502 of the Energy Policy Act of 1992 (42

19 U.S.C. 13252) is amended—

20 (1) in the first sentence of subsection (a), by in21 serting ‘‘and heavy’’ after ‘‘in light’’; and

22 (2) in the first sentence of subsection (b), by in23 serting after ‘‘October 1, 1993,’’ the following: ‘‘and

24 every 5 years thereafter through October 1, 2008,’’.
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1 SEC. 303. MODIFICATION OF GOALS; ADDITIONAL RULE2 MAKING AUTHORITY.

3 Section 504 of the Energy Policy Act of 1992 (42

4 U.S.C. 13254) is amended—

5 (1) in the first sentence of subsection (a), by

6 striking ‘‘and periodically thereafter’’ and inserting

7 ‘‘consistent with the reporting requirements of sec8 tion 502(b)’’; and

9 (2) in subsection (c), by inserting after the first

10 sentence the following: ‘‘Any additional regulation is11 sued by the Secretary shall be, to the maximum ex12 tent practicable, neutral with respect to the type of

13 fuel and vehicle used.’’.

14 SEC. 304. FLEET REQUIREMENT PROGRAM.

15 (a) FLEET PROGRAM PURCHASE GOALS.—Section

16 507(a)(1) of the Energy Policy Act of 1992 (42 U.S.C.

17 13257(a)(1)) is amended by inserting ‘‘acquired as, or

18 converted into,’’ after ‘‘shall be’’.

19 (b) FLEET REQUIREMENT PROGRAM.—Section

20 507(g) of the Energy Policy Act of 1992 (42 U.S.C.

21 13257(g)) is amended—

22 (1) in paragraph (1), by inserting ‘‘acquired as,

23 or converted into,’’ after ‘‘shall be’’;

24 (2) by redesignating paragraph (4) as para25 graph (5); and
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1 (3) by inserting after paragraph (3) the follow2 ing:

3 ‘‘(4) SUBSTITUTIONS.—The Secretary shall, by

4 rule, permit fleets covered under this section to sub5 stitute the acquisition or conversion of 1 heavy duty

6 alternative fueled vehicle for 2 light duty vehicle ac7 quisitions to meet the requirements of this sub8 section.’’.

9 (c) CONVERSIONS.—Section 507(j) of the Energy

10 Policy Act of 1992 (42 U.S.C. 13257(j)) is amended—

11 (1) by striking ‘‘Nothing in’’ and inserting the

12 following:

13 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

14 nothing in’’; and

15 (2) by adding at the end the following:

16 ‘‘(2) CONVERSION INTO ALTERNATIVE FUELED

17 VEHICLES.—

18 ‘‘(A) IN GENERAL.—A fleet owner shall be

19 permitted to convert an existing fleet vehicle

20 into an alternative fueled vehicle, and purchase

21 the alternative fuel for the converted vehicle, for

22 the purpose of compliance with this title or an

23 amendment made by this title, if the original

24 equipment manufacturer’s warranty continues

25 to apply to the vehicle, pursuant to an agree-
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1 ment between the original equipment manufac2 turer and the person performing the conversion.

3 ‘‘(B) CREDITS.—A fleet owner shall be al4 lowed a credit for the conversion of an existing

5 fleet vehicle and the purchase of alternative fuel

6 for the vehicle.’’.

7 (d) MANDATORY STATE FLEET PROGRAMS.—Section

8 507(o) of the Energy Policy Act of 1992 (42 U.S.C.

9 13257(o)) is amended—

10 (1) in paragraph (1)—

11 (A) by inserting ‘‘or heavy’’ after ‘‘new

12 light’’; and

13 (B) by inserting ‘‘or converted’’ after ‘‘ac14 quired’’; and

15 (2) in the first sentence of paragraph (2)(A)—

16 (A) by striking ‘‘this Act’’ and inserting

17 ‘‘the Biodiesel Energy Development Act of

18 1997’’; and

19 (B) by inserting after ‘‘of light’’ the follow20 ing: ‘‘or heavy duty alternative fueled’’.

21 SEC. 305. CREDITS.

22 (a) IN GENERAL.—Section 508(a) of the Energy Pol23 icy Act of 1992 (42 U.S.C. 13258(a)) is amended—

24 (1) by striking ‘‘The Secretary’’ and inserting

25 the following:
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1 ‘‘(1) ADDITIONAL ALTERNATIVE FUELED VEHI2 CLES.—The Secretary’’; and

3 (2) by adding at the end the following:

4 ‘‘(2) ALTERNATIVE FUEL.—The Secretary shall

5 allocate a credit to a fleet or covered person that ac6 quires a volume of alternative fuel equal to the esti7 mated need for 1 year for any dual-fueled vehicle ac8 quired or converted by the fleet or covered person as

9 required under this title.’’.

10 (b) ALLOCATION.—Section 508(b) of the Energy Pol11 icy Act of 1992 (42 U.S.C. 13258(b)) is amended—

12 (1) by striking ‘‘In allocating credits under sub13 section (a),’’ and inserting the following:

14 ‘‘(1) ADDITIONAL ALTERNATIVE FUELED VEHI15 CLES.—In allocating credits under subsection

16 (a)(1),’’; and

17 (2) by adding at the end the following:

18 ‘‘(2) DUAL-FUELED VEHICLES; ALTERNATIVE

19 FUEL.—In allocating credits under subsection

20 (a)(2), the Secretary shall allocate 2 credits to a

21 fleet or covered person for acquiring or converting a

22 dual-fueled vehicle and acquiring a volume of alter23 native fuel equal to the estimated need for 1 year for

24 any dual-fueled vehicle if the dual-fueled vehicle ac25 quired is in excess of the number that the fleet or
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1 covered person is required to acquire or is acquired

2 before the date that the fleet or covered person is re3 quired to acquire the number under this title.’’.

4 SEC. 306. SECRETARY’S RECOMMENDATION TO CONGRESS.

5 Section 509(a) of the Energy Policy Act of 1992 (42

6 U.S.C. 13259(a)) is amended—

7 (1) in paragraph (1), by inserting before the

8 semicolon at the end the following: ‘‘and exempting

9 replacement fuels from taxes levied on non-replace10 ment fuels’’; and

11 (2) in paragraph (2)—

12 (A) by inserting ‘‘and converters’’ after

13 ‘‘suppliers’’; and

14 (B) by inserting before the semicolon the

15 following: ‘‘, including the conversion and war16 ranty of motor vehicles into alternative fueled

17 vehicles’’.

Æ