(c) EFFECTIVE DATES.— 
(1) EXTENSION OF CREDIT.—The amendment 
made by subsection (a) shall apply to property 
placed in service after December 31, 2017. 
(2) MODIFICATION OF DOLLAR LIMITATION.— 
The amendment made by subsection (b) shall apply 
to taxable years beginning after December 31, 2017. 
SEC. 6. LIQUEFIED NATURAL GAS EQUIVALENT FOR PUR-
POSES OF INLAND WATERWAYS TRUST FUND 
FINANCING RATE. 
(a) IN GENERAL.—Section 4042(b)(2)(A) of the In-
ternal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(A) The Inland Waterways Trust Fund 
financing rate is 29 cents per gallon (per en-
ergy equivalent of a gallon of diesel, in the case 
of liquefied natural gas).’’. 
(b) ENERGY EQUIVALENT OF A GALLON OF DIE-
SEL.—Section 4042(b) of the Internal Revenue Code of 
1986 is amended by adding at the end the following: 
‘‘(5) ENERGY EQUIVALENT OF A GALLON OF 
DIESEL
WITH
RESPECT
TO
LIQUEFIED
NATURAL 
GAS.—For purposes of paragraph (2)(A), the term 
‘energy equivalent of a gallon of diesel’ means 6.06 
pounds of liquefied natural gas.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to any sale or use of fuel after 
December 31, 2018. 
SEC. 7. FEDERAL ACQUISITION OF ALTERNATIVE FUELED 
VEHICLES. 
(a) ACQUISITION OF NATURAL GAS VEHICLES BY 
GENERAL SERVICES ADMINISTRATION.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, in order 
to increase the acquisition of natural gas vehicles, 
the Administrator of General Services shall— 
(A) review statutory requirements and reg-
ulations for impediments against the acquisition 
of natural gas vehicles; and 
(B) work with third-party vendors to de-
velop regulations and adopt procedures that will 
make the acquisition of natural gas vehicles 
easier for Federal agencies, including extending 
acquisition 
cycles 
and 
lease 
periods 
for 
aftermarket converted vehicles and allowing 
third-party vendors to offer natural gas vehicles 
on a regional basis. 
(2) REPORTS.— 
(A) INITIAL REPORT.—Not later than one 
year after the date of the enactment of this Act, 
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the Administrator of General Services shall sub-
mit to Congress an initial report on— 
(i) the results of the review conducted 
under paragraph (1)(A); and 
(ii) the regulations developed and pro-
cedures adopted under paragraph (1)(B). 
(B) FINAL REPORT.—Not later than one 
year after the submission of the initial report 
under subparagraph (A), the Administrator of 
General Services shall submit to Congress a 
final report on the impact of the regulations de-
veloped and procedures adopted under para-
graph (1)(B) on the acquisition of natural gas 
vehicles. 
(3) MINIMUM
ACQUISITION
REQUIREMENT.— 
Notwithstanding any other provision of law, of the 
total number of motor vehicles acquired by the Ad-
ministrator of General Services, at least 25 percent 
in fiscal year 2022 and each fiscal year thereafter 
shall be natural gas vehicles. 
(4) DEFINITIONS.—In this subsection: 
(A) AFTERMARKET
CONVERTED
VEHI-
CLE.—The term ‘‘aftermarket converted vehi-
cle’’ means a motor vehicle that— 
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(i) originally was manufactured and 
certified to operate on gasoline or diesel 
fuel; and 
(ii) has been modified to have the ca-
pability of operating on an alternative fuel 
(as defined in section 301 of the Energy 
Policy Act of 1992 (42 U.S.C. 13211)). 
(B) FEDERAL AGENCY.—The term ‘‘Fed-
eral agency’’ has the meaning given the term 
‘‘Executive agency’’ in section 105 of title 5, 
United States Code. 
(C) NATURAL
GAS
VEHICLE.—The term 
‘‘natural gas vehicle’’ means a motor vehicle 
that has the capability of operating on natural 
gas, including renewable natural gas. 
(D) THIRD-PARTY
VENDOR.—The term 
‘‘third-party vendor’’ means any private entity 
that is in the business of arranging the lease or 
procurement of motor vehicles for other busi-
nesses, or for the Federal Government. 
(b) MINIMUM FEDERAL FLEET REQUIREMENT RE-
LATING TO ACQUISITION OF MEDIUM AND HEAVY DUTY 
MOTOR VEHICLES.—Subsection (b) of section 303 of the 
Energy Policy Act of 1992 (42 U.S.C. 13212) is amended 
to read as follows: 
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‘‘(b) PERCENTAGE REQUIREMENTS.— 
‘‘(1) LIGHT DUTY MOTOR VEHICLES.—Of the 
total number of light duty motor vehicles acquired 
by a Federal fleet, at least the following percentages 
shall be alternative fueled vehicles: 
‘‘(A) 25 percent in fiscal year 1996. 
‘‘(B) 33 percent in fiscal year 1997. 
‘‘(C) 50 percent in fiscal year 1998. 
‘‘(D) 75 percent in fiscal year 1999 and 
each fiscal year thereafter. 
‘‘(2) MEDIUM DUTY PASSENGER VEHICLES AND 
HEAVY DUTY MOTOR VEHICLES.—Of the total num-
ber of medium duty passenger vehicles and heavy 
duty motor vehicles acquired by a Federal fleet, at 
least the following percentages shall be alternative 
fueled vehicles: 
‘‘(A) 25 percent in fiscal year 2020. 
‘‘(B) 33 percent in fiscal year 2021. 
‘‘(C) 50 percent in fiscal year 2022. 
‘‘(D) 75 percent in fiscal year 2023 and 
each fiscal year thereafter. 
‘‘(3) EXCEPTION.—With respect to paragraph 
(1) or (2), as the case may be, the Secretary, in con-
sultation with the Administrator of General Services, 
where appropriate, may permit a Federal fleet to ac-
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quire a smaller percentage than is required in such 
paragraph, so long as the aggregate percentage ac-
quired by all Federal fleets is at least equal to the 
required percentage. 
‘‘(4) DEFINITIONS.—In this subsection: 
‘‘(A) FEDERAL FLEET.—The term ‘Fed-
eral fleet’ means 20 or more light duty motor 
vehicles, medium duty passenger vehicles, or 
heavy duty motor vehicles, located in a metro-
politan statistical area or consolidated metro-
politan statistical area, as established by the 
Bureau of the Census, with a 1980 population 
of more than 250,000, that are centrally fueled 
or capable of being centrally fueled and are 
owned, operated, leased, or otherwise controlled 
by or assigned to any Federal executive depart-
ment, military department, Government cor-
poration, independent establishment, or execu-
tive agency, the United States Postal Service, 
the Congress, the courts of the United States, 
or the Executive Office of the President. Such 
term does not include— 
‘‘(i) motor vehicles held for lease or 
rental to the general public; 
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‘‘(ii) motor vehicles used for motor ve-
hicle manufacturer product evaluations or 
tests; 
‘‘(iii) law enforcement vehicles; 
‘‘(iv) emergency vehicles; 
‘‘(v) motor vehicles acquired and used 
for military purposes that the Secretary of 
Defense has certified to the Secretary must 
be exempt for national security reasons; or 
‘‘(vi) nonroad vehicles, including farm 
and construction vehicles. 
‘‘(B) MEDIUM
DUTY
PASSENGER
VEHI-
CLE.—The term ‘medium duty passenger vehi-
cle’ has the meaning given that term in sub-
section (f)(1). 
‘‘(C) HEAVY DUTY MOTOR VEHICLE.—The 
term ‘heavy duty motor vehicle’ means a motor 
vehicle with a gross vehicle weight rating equal 
to or in excess of 8,501 pounds, but does not 
include any medium duty passenger vehicle.’’. 
SEC. 8. RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
OF NATURAL GAS VEHICLES. 
There are authorized to be appropriated to the Sec-
retary of Energy $25,000,000 for fiscal year 2019 through 
2023 for research, development, and demonstration activi-
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ties with respect to natural gas vehicles, including ad-
vanced efficiency for natural gas vehicle engines, continu-
ation of ARPA–E Methane Opportunities for Vehicular 
Energy projects, and development of low nitrogen oxide 
or advanced high pressure direct injection engines. 
SEC. 9. CLEAN CITIES PROGRAM DEPLOYMENT GRANTS. 
There is authorized to be appropriated to the Sec-
retary of Energy $50,000,000 for fiscal year 2019 for nat-
ural gas vehicle deployment grants under the Clean Cities 
program. 
SEC. 10. DIESEL EMISSIONS REDUCTION SETTLEMENT 
AMOUNTS. 
At least 50 percent of amounts provided for under 
a settlement agreement regarding alleged violations of en-
vironmental law in which a defendant agrees to perform 
a diesel emissions reduction Supplemental Environmental 
Project under subtitle G of title VII of the Energy Policy 
Act of 2005 (42 U.S.C. 16131 et seq.) shall be used for 
alternative fuel vehicle deployment grants. 
SEC. 11. SENSE OF CONGRESS ON THE SMARTWAY PRO-
GRAM. 
It is the sense of the Congress that— 
(1) the Smartway Program of the Environ-
mental Protection Agency should include recognition 
of the energy security, fuel efficiency and environ-
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mental benefits of using domestic natural gas, in-
cluding renewable natural gas; 
(2) the Environmental Protection Agency 
should incorporate incentives that reward businesses 
that deploy natural gas trucks; and 
(3) such incentives should specifically quantify 
and reward users for the full fuel cycle emission re-
ductions associated with using renewable natural 
gas. 
SEC. 12. SENSE OF CONGRESS ON INFRASTRUCTURE AND 
PUBLIC WORKS PROJECTS. 
It is the sense of the Congress that— 
(1) any future infrastructure and public works 
legislation should include incentives that encourage 
the greater use of domestic natural gas; 
(2) the increased use of abundant, low-cost do-
mestic natural gas provides numerous economic and 
environmental benefits that could be further encour-
aged by rewarding projects and programs that pave 
the way for expanded use of natural gas such as up-
grading or extending natural gas pipelines, expand-
ing access to natural gas in areas underserved by 
natural gas, and linking natural gas supplies to ex-
isting or new manufacturing hubs, airports, port fa-
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cilities and other industrial or commercial centers; 
and 
(3) such legislation should encourage businesses 
to use natural gas to fuel motor vehicles and 
nonroad equipment by providing a point scoring sys-
tem that rewards businesses with not less than a 10 
percent and no more than a 20 percent advantage 
for using natural gas to fuel a majority of their vehi-
cles used to carryout infrastructure development or 
public works projects. 
Æ 
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