I
105TH CONGRESS
1ST SESSION
H. R. 970
To encourage the increased use of domestic natural gas as a transportation
fuel, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 6, 1997
Mr. BARTON of Texas (for himself, Mr. BILBRAY, Mr. WISE, Mr. REGULA,
Mr. THORNBERRY, Mr. COMBEST, Mr. BONO, Mr. GINGRICH, Mr. SHER-
MAN, Mr. TAUZIN, and Mr. SESSIONS) introduced the following bill;
which was referred to the Committee on Commerce, and in addition to
the Committees on Transportation and Infrastructure, National Security,
Ways and Means, and Government Reform and Oversight, for a period
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To encourage the increased use of domestic natural gas
as a transportation fuel, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—GENERAL PROVISIONS
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Natural Gas Vehicle
Incentives Act of 1997’’.
(5) approximately 62,000,000 Americans live in
areas that are in violation of the air quality stand-
ards established by the Clean Air Act, and many of
these Americans, especially those in urban areas, in-
creasingly are suffering adverse health consequences
resulting from poor air quality;
(6) natural gas is a plentiful, domestically avail-
able alternative to petroleum;
(7) in comparison to a gasoline-powered vehicle,
a typical natural gas vehicle substantially reduces
emissions of carbon monoxide, nonmethane organic
gases, oxides of nitrogen, and particulate matter;
(8) the environmental risks inherent in the pro-
duction, refining, transportation, and storage of pe-
troleum-based fuels are far greater than the cor-
responding environmental risks associated with the
production, transportation, and storage of natural
gas used as a transportation fuel;
(9) the technology to maximize the potential so-
cietal benefits resulting from the increased use of
natural gas as a transportation fuel is available in
the commercial marketplace today;
(10) the financial assistance of the Federal
Government is needed to provide incentives to stimu-
late the mass production of natural gas vehicles; and
(11) incentives to the private sector are the
most efficient and effective means of producing long-
term reductions in motor vehicle emissions and oil
imports.
TITLE II—EMISSION REDUCTION
CREDITS
SEC. 201. EMISSION REDUCTION CREDITS.
Part A of title I of the Clean Air Act (42 U.S.C. 7401
et seq.) is amended by adding the following new section
at the end thereof:
‘‘SEC. 132. CREDIT PROGRAM FOR NATURAL GAS VEHICLES
AND FUELING INFRASTRUCTURE.
‘‘(a) ESTABLISHMENT OF CREDIT PROGRAM.—With-
in 1 year after the date of enactment of this section, the
Administrator shall promulgate regulations establishing
an emission reduction credit program for natural gas vehi-
cles, ULEV-certified alternative fuel vehicles that operate
on alternative fuel, and natural gas fueling infrastructure.
The regulations shall provide that credits shall be usable
beginning no later than 18 months after the date of enact-
ment of this section.
‘‘(b) STANDARDS FOR VEHICLES.—The rules promul-
gated under subsection (a) shall base emission reduction
credits for natural gas vehicles and ULEV-certified alter-
native fuel vehicles on the difference in emission levels be-
tween in-use gasoline and diesel vehicles and the levels of
emissions from natural gas vehicles and ULEV-certified
alternative fuel vehicles of similar type and weight, based
on data developed by the Administrator for purposes of
emissions certification of natural gas vehicles and ULEV-
certified alternative fuel vehicles. Emission reduction cred-
its shall be provided for differences in tailpipe, running
loss and evaporative emissions. The rules shall be based
on the following:
‘‘(1) Credits shall be available to owners or op-
erators of natural gas vehicles or ULEV-certified al-
ternative fuel vehicles that certify annual use of at
least 1,500 gallons or gallon equivalents of natural
gas, or alternative fuel in the case of ULEV-certified
alternative fuel vehicles, per year, per natural gas
vehicle or ULEV-certified alternative fuel vehicle.
‘‘(2) The right to obtain credits or hold credits
shall be freely transferable.
‘‘(3) Credits may be used to offset any require-
ments in effect pursuant to this title (A) to reduce
emissions of nitrogen oxides, volatile organic com-
pounds, nonmethane organic gas, carbon monoxide,
and particulates, including those applicable to motor
vehicles or stationary sources; and (B) to implement
transportation control measures, including high oc-
cupancy vehicles restrictions and employee trip re-
duction programs.
‘‘(4) Credits shall be based on assumed vehicle
mileage of 20,000 miles per year.
‘‘(5) Owners or operators of natural gas vehi-
cles and ULEV-certified alternative fuel vehicles or
their assignees shall be provided an opportunity to
demonstrate eligibility to receive excess credits based
on vehicle mileage in excess of the assumed mileage.
Procedures established by the Administrator related
to such excess credits shall be simple and not re-
quire burdensome recordkeeping.
‘‘(6) The Administrator shall establish different
levels of credit to reflect the difference in emissions
among various weight classifications of natural gas
vehicles or ULEV-certified alternative fuel vehicles.
The Administrator shall consult with affected parties
to determine the appropriate weight classifications
for purposes of this program.
‘‘(c) STANDARDS FOR FUELING INFRASTRUCTURE.—
The rules promulgated under subsection (a) shall base
emission reduction credits for the installation and rehabili-
tation of natural gas fueling stations on the initial capac-
ity of a station and emission reduction credits for the oper-
ation of natural gas fueling stations on the annual volume
of natural gas actually dispensed at a station. The rules
shall be based on the following:
‘‘(1) Credits shall be available to any individual
or entity that installs a new natural gas fueling sta-
tion, increases the capacity or efficiency of an exist-
ing natural gas fueling station, or operates a natural
gas fueling station. Credits shall reflect the dif-
ference in emissions between a gasoline or diesel
fueling station and a natural gas fueling station of
similar capacity.
‘‘(2) For installation and rehabilitation credits,
different levels of credit shall be established to re-
flect the varied fueling capacity of the different
types of natural gas fueling stations. For operational
credits, the level of credit shall reflect the actual an-
nual volume of natural gas dispensed at a station.
The Administrator shall consult with the affected
parties to determine the appropriate classifications
for purposes of this program.
‘‘(3) The right to obtain credits or hold credits
shall be freely transferable.
‘‘(4) Credits may be used to offset any require-
ments in effect pursuant to this title to reduce emis-
sions of nitrogen oxides, nonmethane organic gas,
carbon monoxide, and particulates, including those
applicable to motor vehicles or stationary sources.
‘‘(5) Credits shall be higher for natural gas
fueling stations that provide public access.
‘‘(6) Procedures established by the Adminis-
trator related to such credits shall be simple and not
require burdensome recordkeeping.
‘‘(d) DEFINITIONS.—For purposes of this sub-
section—
‘‘(1) NATURAL GAS VEHICLE.—The term ‘natu-
ral gas vehicle’ means—
‘‘(A) a dedicated vehicle that operates on
natural gas exclusively;
‘‘(B) a bi-fuel that operates on natural gas
or another fuel, but not in combination with
each other; and
‘‘(C) a dual-fuel vehicle that operates on a
mixture of natural gas and another fuel.
‘‘(2) NATURAL GAS.—The term ‘natural gas’
includes compressed natural gas and liquefied natu-
ral gas.