II 

110TH CONGRESS 

2D SESSION S. 3281 

To improve air quality by expanding the use of low-emission natural gas 

as a transportation fuel. 

IN THE SENATE OF THE UNITED STATES 

JULY 17, 2008 

Mr. INHOFE introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To improve air quality by expanding the use of low-emission 

natural gas as a transportation fuel. 

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. 

4 This Act may be cited as the ‘‘Drive America on Nat5 ural Gas Act of 2008’’. 

6 SEC. 2. RENEWABLE FUEL PROGRAM. 

7 (a) DEFINITION OF RENEWABLE FUEL.—Effective 

8 January 1, 2009, section 211(o)(1) of the Clean Air Act 

9 (42 U.S.C. 7545(o)(1)) is amended by striking subpara10 graph (J) and inserting the following: 


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1 ‘‘(J) RENEWABLE FUEL.— 

2 ‘‘(i) IN GENERAL.—The term ‘renew3 able fuel’ means fuel that— 

4 ‘‘(I) is produced from renewable 

5 biomass; and 

6 ‘‘(II) is used to replace or reduce 

7 the quantity of fossil fuel present in a 

8 transportation fuel. 

9 ‘‘(ii) RENEWABLE FUEL STANDARD.— 

10 For purposes of the renewable fuel stand11 ard under paragraph (2), the term ‘renew12 able fuel’ includes renewable and non13 renewable natural gas, including com14 pressed natural and liquefied natural gas 

15 when used as transportation fuel.’’. 

16 (b) CREDIT PROGRAM.—Effective January 1, 2009, 

17 section 211(o)(5)(A) of the Clean Air Act (42 U.S.C. 

18 7545(o)(5)(A)) is amended— 

19 (1) in clause (ii), by striking ‘‘and’’ at the end; 

20 (2) in clause (iii), by striking the period at the 

21 end and inserting ‘‘; and’’; and 

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

23 ‘‘(iv) for the generation of an appro24 priate quantity of credits for renewable 

25 and nonrenewable natural gas, including 


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1 compressed natural and liquefied natural 

2 gas when used as a transportation fuel.’’. 

3 SEC. 3. NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHI4 CLE CREDIT ALLOWED FOR DUAL FUELED 

5 AUTOMOBILES. 

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

7 of the Internal Revenue Code of 1986 (relating to defini8 tion of new qualified alternative fuel motor vehicle) is 

9 amended to read as follows: 

10 ‘‘(i) which— 

11 ‘‘(I) is only capable of operating 

12 on an alternative fuel, or 

13 ‘‘(II) is capable of operating on 

14 an alternative fuel and gasoline or die15 sel fuel,’’. 

16 (b) CONFORMING AMENDMENT.—Section 30B(e) of 

17 the Internal Revenue Code of 1986 is amended by striking 

18 paragraph (5). 

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

20 this section shall apply to property placed in service after 

21 the date of the enactment of this Act. 

22 SEC. 4. NATURAL GAS VEHICLE RESEARCH, DEVELOPMENT, 

23 AND DEMONSTRATION PROJECTS. 

24 (a) DEFINITIONS.—In this section: 


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1 (1) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of the Environ3 mental Protection Agency. 

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

5 means compressed natural gas, liquefied natural gas, 

6 biomethane, and mixtures of hydrogen and methane 

7 or natural gas. 

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

9 the Secretary of Energy. 

10 (b) PROGRAM.—The Secretary, in coordination with 

11 the Administrator, shall conduct a program of natural gas 

12 vehicle research, development, and demonstration. 

13 (c) PURPOSE.—The program under this section shall 

14 focus on— 

15 (1) the continued improvement and develop16 ment of new, cleaner, more efficient light-duty, me17 dium-duty, and heavy-duty natural gas vehicle en18 gines; 

19 (2) the integration of those engines into light20 duty, medium-duty, and heavy-duty natural gas vehi21 cles for onroad and offroad applications; 

22 (3) expanding product availability by assisting 

23 manufacturers with the certification of the engines 

24 or vehicles described in paragraph (1) or (2) to FedVerDate Aug 31 2005 07:02 Jul 18, 2008 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3281.IS S3281

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1 eral or California certification requirements and in2 use emission standards; 

3 (4) the demonstration and proper operation and 

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

5 all operating conditions; 

6 (5) the development and improvement of na7 tionally recognized codes and standards for the con8 tinued safe operation of natural gas vehicles and 

9 components; 

10 (6) improvement in the reliability and efficiency 

11 of natural gas fueling station infrastructure; 

12 (7) the certification of natural gas fueling sta13 tion infrastructure to nationally recognized and in14 dustry safety standards; 

15 (8) the improvement in the reliability and effi16 ciency of onboard natural gas fuel storage systems; 

17 (9) the development of new natural gas fuel 

18 storage materials; 

19 (10) the certification of onboard natural gas 

20 fuel storage systems to nationally recognized and in21 dustry safety standards; and 

22 (11) the use of natural gas engines in hybrid 

23 vehicles. 

24 (d) CERTIFICATION OF CONVERSION SYSTEMS.—The 

25 Secretary shall coordinate with the Administrator on 


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1 issues related to streamlining the certification of natural 

2 gas conversion systems to the appropriate Federal certifi3 cation requirements and in-use emission standards. 

4 (e) COOPERATION AND COORDINATION WITH INDUS5 TRY.—In developing and carrying out the program under 

6 this section, the Secretary shall coordinate with the nat7 ural gas vehicle industry to ensure cooperation between 

8 the public and the private sector. 

9 (f) CONDUCT OF PROGRAM.—The program under 

10 this section shall be conducted in accordance with sections 

11 3001 and 3002 of the Energy Policy Act of 1992 (42 

12 U.S.C. 13541, 13542). 

13 (g) REPORT.—Not later than 2 years after the date 

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

15 Congress a report on the implementation of this section. 

16 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to the Secretary such 

18 sums as are necessary to carry out this section. 

19 SEC. 5. DEVELOPMENT OF LOW-EMISSION NATURAL GAS 

20 TRANSPORTATION-FUELED VEHICLES. 

21 Part C of title II of the Clean Air Act (42 U.S.C. 

22 7581 et seq.) is amended by adding at the end the fol23 lowing: 


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1 ‘‘SEC. 251. DEVELOPMENT OF LOW-EMISSION NATURAL GAS 

2 TRANSPORTATION-FUELED VEHICLES. 

3 ‘‘(a) DEFINITIONS.—In this section: 

4 ‘‘(1) ALTERNATIVE FUEL.—The term ‘alter5 native fuel’ means compressed or liquid natural gas. 

6 ‘‘(2) ALTERNATIVE-FUELED VEHICLE.—The 

7 term ‘alternative-fueled vehicle’ means a vehicle that 

8 is manufactured or converted to operate using alter9 native fuel. 

10 ‘‘(3) BI-FUELED VEHICLE.—The term ‘bi-fueled 

11 vehicle’ means a vehicle that is capable of operating 

12 on gasoline or an alternative fuel, but not both at 

13 the same time. 

14 ‘‘(4) CONVERT.—The term ‘convert’, with re15 spect to a vehicle, means to modify the engine and 

16 other applicable components of the vehicle to enable 

17 the vehicle to operate using an alternative fuel (in18 cluding compressed natural gas). 

19 ‘‘(5) OBD SYSTEM.—The term ‘OBD system’ 

20 means an on-board, computer-based diagnostic sys21 tem built into certain vehicles to monitor the per22 formance of certain primary engine components of 

23 the vehicle (including components responsible for 

24 controlling emissions). 


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1 ‘‘(6) PROGRAM.—The term ‘program’ means 

2 the alternative-fueled vehicle development dem3 onstration program established under subsection (b). 

4 ‘‘(7) SMALL VOLUME MANUFACTURER.— 

5 ‘‘(A) IN GENERAL.—The term ‘small vol6 ume manufacturer’ means a manufacturer of 

7 vehicles described in section 86.001–1(e) of title 

8 40, Code of Federal Regulations (or a successor 

9 regulation) that is approved and certified in ac10 cordance with part 86 of subchapter C of chap11 ter I of title 40, Code of Federal Regulations 

12 (or successor regulations). 

13 ‘‘(B) INCLUSION.—The term ‘small volume 

14 manufacturer’ includes a manufacturer of kits 

15 or equipment used to convert vehicles. 

16 ‘‘(b) PROGRAM.— 

17 ‘‘(1) ESTABLISHMENT.—For the period of fiscal 

18 years 2009 through 2013, the Administrator shall 

19 establish and carry out a demonstration program to 

20 assist States in facilitating the development of alter21 native-fueled vehicles. 

22 ‘‘(2) APPLICATION.—A State may participate in 

23 the program by submitting to the Administrator an 

24 application at such time, in such form, and conVerDate Aug 31 2005 07:02 Jul 18, 2008 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3281.IS S3281

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1 taining such information as the Administrator shall 

2 specify. 

3 ‘‘(3) BENEFITS AVAILABLE TO PARTICIPATING

4 SMALL VOLUME MANUFACTURERS.—Under the pro5 gram, with respect to small volume manufacturers 

6 located in States participating in the program, the 

7 Administrator shall, by regulation— 

8 ‘‘(A) waive all fees applicable to small vol9 ume manufacturers for the certification and 

10 conversion of alternative-fueled vehicles; 

11 ‘‘(B) waive requirements for recertification 

12 of kits for the conversion of vehicles in any case 

13 in which, as determined by the Administrator— 

14 ‘‘(i) the kit has been previously cer15 tified for the model of vehicle to be con16 verted; and 

17 ‘‘(ii) neither the kit nor the design 

18 and specifications of the model of vehicle 

19 to be converted have substantially changed; 

20 ‘‘(C) modify such regulatory requirements 

21 relating to OBD systems as the Administrator 

22 determines to be appropriate to provide flexi23 bility to small volume manufacturers in re24 programming OBD systems to be compatible 

25 with the use of alternative fuel; 


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1 ‘‘(D) permit small volume manufacturers 

2 to include more vehicles and engines in a single 

3 engine category to improve the cost-efficiency of 

4 emission testing of converted vehicles; 

5 ‘‘(E) waive the liability of small volume 

6 manufacturers, in the case of a bi-fueled vehicle 

7 capable of operating on gasoline or compressed 

8 natural gas, for the compliance of the gasoline 

9 system of the bi-fueled vehicle with applicable 

10 emission requirements; 

11 ‘‘(F) provide additional guidance to small 

12 volume manufacturers with respect to the con13 version of older models of vehicles; and 

14 ‘‘(G) revise and streamline certification re15 quirements applicable to small volume manufac16 turers. 

17 ‘‘(4) STATE RESPONSIBILITY.—As a condition 

18 of participating in the program, during the period of 

19 fiscal years 2009 through 2013, a State shall— 

20 ‘‘(A) develop regulations for (as compared 

21 to Federal requirements in effect as of the date 

22 of enactment of this section) an equally effec23 tive but less burdensome system of certifying 

24 and verifying emissions of alternative-fueled ve25 hicles and equipment used for conversions; and 


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1 ‘‘(B) not later than December 31, 2012, 

2 submit the proposed regulations of the State to 

3 the Administrator for review. 

4 ‘‘(c) STATE PROGRAMS.—Upon receipt of proposed 

5 regulations of a State under subsection (b)(4), the Admin6 istrator shall— 

7 ‘‘(1) review the regulations; and 

8 ‘‘(2) if the Administrator determines that the 

9 implementation of the regulations would result in (as 

10 compared to Federal requirements in effect as of the 

11 date of enactment of this section) an equally effec12 tive but less burdensome system of certifying and 

13 verifying emissions of alternative-fueled vehicles and 

14 equipment used for conversions, authorize the State 

15 to implement the regulations with respect to small 

16 volume manufacturers in the State for the period of 

17 fiscal years 2014 through 2018, subject to— 

18 ‘‘(A) the submission of annual reports to 

19 the Administrator; and 

20 ‘‘(B) such periodic inspection and other 

21 oversight requirements as the Administrator de22 termines to be appropriate. 

23 ‘‘(d) DURATION OF PROGRAM.—The program and all 

24 authority under the program (other than the authority of 


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1 the Administrator described in subsection (c)) shall termi2 nate on December 31, 2013, unless the Administrator— 

3 ‘‘(1) in consultation with the States, elects to 

4 continue the program; and 

5 ‘‘(2) promulgates such regulations as are nec6 essary to continue the program. 

7 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated such sums as are nec9 essary to carry out this section.’’. 

10 SEC. 6. NATURAL GAS CONVERSION EMISSION CERTIFI11 CATIONS. 

12 Part C of title II of the Clean Air Act (42 U.S.C. 

13 7581 et seq.) (as amended by section 5) is amended by 

14 adding at the end the following: 

15 ‘‘SEC. 252. NATURAL GAS CONVERSION EMISSION CERTIFI16 CATIONS. 

17 ‘‘(a) IN GENERAL.—The Administrator shall waive 

18 requirements for recertification of kits for the conversion 

19 of vehicles into vehicles that are powered by natural gas 

20 in any case in which, as determined by the Adminis21 trator— 

22 ‘‘(1) the kit has been previously certified for the 

23 model of vehicle to be converted; and 


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1 ‘‘(2) neither the kit nor the design and speci2 fications of the model of vehicle to be converted have 

3 substantially changed. 

4 ‘‘(b) OLDER VEHICLES.—The Administrator shall 

5 waive emission certification system requirements for a ve6 hicle that is over 10 years old or has over 120,000 miles 

7 that is powered by natural gas.’’. 

Æ 


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