160
(6) automobile fuel economy under chapter 329 
of title 49, United States Code; or 
(7) representation of the interests of the United 
States with respect to the activities and programs 
under the authority of title 49, United States Code. 
SEC. 709. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary to carry out this title, in addition to any amounts 
made available for these purposes under other Acts—
(1) $273,500,000 for fiscal year 2006; 
(2) $375,000,000 for fiscal year 2007; 
(3) $450,000,000 for fiscal year 2008; 
(4) $500,000,000 for fiscal year 2009; and 
(5) $550,000,000 for fiscal year 2010. 
TITLE VIII—ADVANCED 
VEHICLES 
Subtitle A—Pilot Program 
SEC. 801. DEFINITIONS. 
In this subtitle: 
(1) ALTERNATIVE FUELED VEHICLE.—
(A) IN
GENERAL.—The term ‘‘alternative 
fueled vehicle’’ means a vehicle propelled solely 
on an alternative fuel (as defined in section 301 
of the Energy Policy Act of 1992 (42 U.S.C. 
13211)).
161
(B) EXCLUSION.—The term ‘‘alternative 
fueled vehicle’’ does not include a vehicle that the 
Secretary determines, by regulation, does not 
yield substantial environmental benefits over a 
vehicle operating solely on gasoline or diesel de-
rived from fossil fuels. 
(2) FUEL CELL VEHICLE.—The term ‘‘fuel cell 
vehicle’’ means a vehicle propelled by an electric 
motor powered by a fuel cell system that converts 
chemical energy into electricity by combining oxygen 
(from air) with hydrogen fuel that is stored on the ve-
hicle or is produced onboard by reformation of a hy-
drocarbon fuel. Such fuel cell system may or may not 
include the use of auxiliary energy storage systems to 
enhance vehicle performance. 
(3) HYBRID VEHICLE.—The term ‘‘hybrid vehi-
cle’’ means a medium or heavy duty vehicle propelled 
by an internal combustion engine or heat engine 
using any combustible fuel and an onboard recharge-
able energy storage device. 
(4) NEIGHBORHOOD
ELECTRIC
VEHICLE.—The 
term ‘‘neighborhood electric vehicle’’ means a motor 
vehicle that—
162
(A) meets the definition of a low-speed vehi-
cle (as defined in part 571 of title 49, Code of 
Federal Regulations); 
(B) meets the definition of a zero-emission 
vehicle (as defined in section 86.1702–99 of title 
40, Code of Federal Regulations); 
(C) meets the requirements of Federal Motor 
Vehicle Safety Standard No. 500; and 
(D) has a maximum speed of not greater 
than 25 miles per hour. 
(5) PILOT PROGRAM.—The term ‘‘pilot program’’ 
means the competitive grant program established 
under section 802. 
(6) ULTRA-LOW SULFUR DIESEL VEHICLE.—The 
term ‘‘ultra-low sulfur diesel vehicle’’ means a vehicle 
manufactured in model year 2005 or 2006 powered 
by a heavy-duty diesel engine that—
(A) is fueled by diesel fuel that contains sul-
fur at not more than 15 parts per million; and 
(B) emits not more than the lesser of—
(i) 2.5 grams per brake horsepower-
hour of nonmethane hydrocarbons and ox-
ides of nitrogen and .01 grams per brake 
horsepower-hour of particulate matter; or
163
(ii) the quantity of emissions of non-
methane hydrocarbons, oxides of nitrogen, 
and particulate matter of the best-per-
forming technology of ultra-low sulfur diesel 
vehicles of the same class and application 
that are commercially available. 
SEC. 802. PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary, in consultation 
with the Secretary of Transportation, shall establish a com-
petitive grant pilot program, to be administered through 
the Clean Cities Program of the Department of Energy, to 
provide not more than 15 geographically dispersed project 
grants to State governments, local governments, or metro-
politan transportation authorities to carry out a project or 
projects for the purposes described in subsection (b). 
(b) GRANT PURPOSES.—A grant under this section 
may be used for the following purposes: 
(1) The acquisition of alternative fueled vehicles 
or fuel cell vehicles, including—
(A) passenger vehicles (including neighbor-
hood electric vehicles); and 
(B) motorized 2-wheel bicycles, scooters, or 
other vehicles for use by law enforcement per-
sonnel or other State or local government or met-
ropolitan transportation authority employees.
164
(2) The acquisition of alternative fueled vehicles, 
hybrid vehicles, or fuel cell vehicles, including—
(A) buses used for public transportation or 
transportation to and from schools; 
(B) delivery vehicles for goods or services; 
and 
(C) ground support vehicles at public air-
ports (including vehicles to carry baggage or 
push or pull airplanes toward or away from ter-
minal gates). 
(3) The acquisition of ultra-low sulfur diesel ve-
hicles. 
(4) Installation or acquisition of infrastructure 
necessary to directly support an alternative fueled ve-
hicle, fuel cell vehicle, or hybrid vehicle project funded 
by the grant, including fueling and other support 
equipment. 
(5) Operation and maintenance of vehicles, in-
frastructure, and equipment acquired as part of a 
project funded by the grant. 
(c) APPLICATIONS.—
(1) REQUIREMENTS.—
(A) IN GENERAL.—The Secretary shall issue 
requirements for applying for grants under the 
pilot program.
165
(B) MINIMUM REQUIREMENTS.—At a min-
imum, the Secretary shall require that an appli-
cation for a grant—
(i) be submitted by the head of a State 
or local government or a metropolitan 
transportation authority, or any combina-
tion thereof, and a registered participant in 
the Clean Cities Program of the Department 
of Energy; and 
(ii) include—
(I) a description of the project 
proposed in the application, including 
how the project meets the requirements 
of this subtitle; 
(II) an estimate of the ridership 
or degree of use of the project; 
(III) an estimate of the air pollu-
tion emissions reduced and fossil fuel 
displaced as a result of the project, and 
a plan to collect and disseminate envi-
ronmental data, related to the project 
to be funded under the grant, over the 
life of the project; 
(IV) a description of how the 
project will be sustainable without Fed-
166
eral assistance after the completion of 
the term of the grant; 
(V) a complete description of the 
costs of the project, including acquisi-
tion, 
construction, 
operation, 
and 
maintenance costs over the expected life 
of the project; 
(VI) a description of which costs 
of the project will be supported by Fed-
eral assistance under this subtitle; and 
(VII) documentation to the satis-
faction of the Secretary that diesel fuel 
containing sulfur at not more than 15 
parts per million is available for car-
rying out the project, and a commit-
ment by the applicant to use such fuel 
in carrying out the project. 
(2) PARTNERS.—An applicant under paragraph 
(1) may carry out a project under the pilot program 
in partnership with public and private entities. 
(d) SELECTION CRITERIA.—In evaluating applica-
tions under the pilot program, the Secretary shall—
(1) consider each applicant’s previous experience 
with similar projects; and
167
(2) give priority consideration to applications 
that—
(A) are most likely to maximize protection 
of the environment; 
(B) demonstrate the greatest commitment 
on the part of the applicant to ensure funding 
for the proposed project and the greatest likeli-
hood that the project will be maintained or ex-
panded after Federal assistance under this sub-
title is completed; and 
(C) exceed the minimum requirements of 
subsection (c)(1)(B)(ii). 
(e) PILOT PROJECT REQUIREMENTS.—
(1) MAXIMUM AMOUNT.—The Secretary shall not 
provide more than $20,000,000 in Federal assistance 
under the pilot program to any applicant. 
(2) COST
SHARING.—The Secretary shall not 
provide more than 50 percent of the cost, incurred 
during the period of the grant, of any project under 
the pilot program. 
(3) MAXIMUM
PERIOD
OF
GRANTS.—The Sec-
retary shall not fund any applicant under the pilot 
program for more than 5 years. 
(4) DEPLOYMENT AND DISTRIBUTION.—The Sec-
retary shall seek to the maximum extent practicable
168
to ensure a broad geographic distribution of project 
sites. 
(5) TRANSFER
OF
INFORMATION
AND
KNOWL-
EDGE.—The Secretary shall establish mechanisms to 
ensure that the information and knowledge gained by 
participants in the pilot program are transferred 
among the pilot program participants and to other 
interested parties, including other applicants that 
submitted applications. 
(f) SCHEDULE.—
(1) PUBLICATION.—Not later than 90 days after 
the date of enactment of this Act, the Secretary shall 
publish in the Federal Register, Commerce Business 
Daily, and elsewhere as appropriate, a request for ap-
plications to undertake projects under the pilot pro-
gram. Applications shall be due not later than 180 
days after the date of publication of the notice. 
(2) SELECTION.—Not later than 180 days after 
the date by which applications for grants are due, the 
Secretary shall select by competitive, peer reviewed 
proposal, all applications for projects to be awarded 
a grant under the pilot program. 
(g) LIMIT ON FUNDING.—The Secretary shall provide 
not less than 20 nor more than 25 percent of the grant fund-
169
ing made available under this section for the acquisition 
of ultra-low sulfur diesel vehicles. 
SEC. 803. REPORTS TO CONGRESS. 
(a) INITIAL REPORT.—Not later than 60 days after the 
date on which grants are awarded under this subtitle, the 
Secretary shall submit to Congress a report containing—
(1) an identification of the grant recipients and 
a description of the projects to be funded; 
(2) an identification of other applicants that 
submitted applications for the pilot program; and 
(3) a description of the mechanisms used by the 
Secretary to ensure that the information and knowl-
edge gained by participants in the pilot program are 
transferred among the pilot program participants 
and to other interested parties, including other appli-
cants that submitted applications. 
(b) EVALUATION.—Not later than 3 years after the 
date of enactment of this Act, and annually thereafter until 
the pilot program ends, the Secretary shall submit to Con-
gress a report containing an evaluation of the effectiveness 
of the pilot program, including—
(1) an assessment of the benefits to the environ-
ment derived from the projects included in the pilot 
program; and
170
(2) an estimate of the potential benefits to the 
environment to be derived from widespread applica-
tion of alternative fueled vehicles and ultra-low sulfur 
diesel vehicles. 
SEC. 804. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary to carry out this subtitle $200,000,000, to remain 
available until expended. 
Subtitle B—Clean School Buses 
SEC. 811. DEFINITIONS. 
In this subtitle: 
(1) 
ADMINISTRATOR.—The 
term 
‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) ALTERNATIVE FUEL.—The term ‘‘alternative 
fuel’’ means liquefied natural gas, compressed natural 
gas, liquefied petroleum gas, hydrogen, propane, or 
methanol or ethanol at no less than 85 percent by vol-
ume. 
(3) ALTERNATIVE FUEL SCHOOL BUS.—The term 
‘‘alternative fuel school bus’’ means a school bus that 
meets all of the requirements of this subtitle and is 
operated solely on an alternative fuel. 
(4) 
EMISSIONS
CONTROL
RETROFIT
TECH-
NOLOGY.—The term ‘‘emissions control retrofit tech-
171
nology’’ means a particulate filter or other emissions 
control equipment that is verified or certified by the 
Administrator or the California Air Resources Board 
as an effective emission reduction technology when in-
stalled on an existing school bus. 
(5) IDLING.—The term ‘‘idling’’ means operating 
an engine while remaining stationary for more than 
approximately 15 minutes, except that the term does 
not apply to routine stoppages associated with traffic 
movement or congestion. 
(6) ULTRA-LOW
SULFUR
DIESEL
FUEL.—The 
term ‘‘ultra-low sulfur diesel fuel’’ means diesel fuel 
that contains sulfur at not more than 15 parts per 
million. 
(7) ULTRA-LOW SULFUR DIESEL FUEL SCHOOL 
BUS.—The term ‘‘ultra-low sulfur diesel fuel school 
bus’’ means a school bus that meets all of the require-
ments of this subtitle and is operated solely on ultra-
low sulfur diesel fuel. 
SEC. 812. PROGRAM FOR REPLACEMENT OF CERTAIN 
SCHOOL BUSES WITH CLEAN SCHOOL BUSES. 
(a) ESTABLISHMENT.—The Administrator, in con-
sultation with the Secretary and other appropriate Federal 
departments and agencies, shall establish a program for 
awarding grants on a competitive basis to eligible entities
172
for the replacement of existing school buses manufactured 
before model year 1991 with alternative fuel school buses 
and ultra-low sulfur diesel fuel school buses. 
(b) REQUIREMENTS.—
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Administrator 
shall establish and publish in the Federal Register 
grant requirements on eligibility for assistance, and 
on implementation of the program established under 
subsection (a), including instructions for the submis-
sion of grant applications and certification require-
ments to ensure compliance with this subtitle. 
(2) APPLICATION DEADLINES.—The requirements 
established under paragraph (1) shall require submis-
sion of grant applications not later than—
(A) in the case of the first year of program 
implementation, the date that is 180 days after 
the publication of the requirements in the Fed-
eral Register; and 
(B) in the case of each subsequent year, 
June 1 of the year. 
(c) ELIGIBLE RECIPIENTS.—A grant shall be awarded 
under this section only—
(1) to 1 or more local or State governmental en-
tities responsible for providing school bus service to 1
173
or more public school systems or responsible for the 
purchase of school buses; 
(2) to 1 or more contracting entities that provide 
school bus service to 1 or more public school systems, 
if the grant application is submitted jointly with the 
1 or more school systems to be served by the buses, ex-
cept that the application may provide that buses pur-
chased using funds awarded shall be owned, operated, 
and maintained exclusively by the 1 or more con-
tracting entities; or 
(3) to a nonprofit school transportation associa-
tion representing private contracting entities, if the 
association has notified and received approval from 
the 1 or more school systems to be served by the buses. 
(d) AWARD DEADLINES.—
(1) IN GENERAL.—Subject to paragraph (2), the 
Administrator shall award a grant made to a quali-
fied applicant for a fiscal year—
(A) in the case of the first fiscal year of pro-
gram implementation, not later than the date 
that is 90 days after the application deadline es-
tablished under subsection (b)(2); and 
(B) in the case of each subsequent fiscal 
year, not later than August 1 of the fiscal year.
174
(2) INSUFFICIENT NUMBER OF QUALIFIED GRANT 
APPLICATIONS.—If the Administrator does not receive 
a sufficient number of qualified grant applications to 
meet the requirements of subsection (i)(1) for a fiscal 
year, the Administrator shall award a grant made to 
a qualified applicant under subsection (i)(2) not later 
than September 30 of the fiscal year. 
(e) TYPES OF GRANTS.—
(1) IN GENERAL.—A grant under this section 
shall be used for the replacement of school buses man-
ufactured before model year 1991 with alternative fuel 
school buses and ultra-low sulfur diesel fuel school 
buses. 
(2) NO ECONOMIC BENEFIT.—Other than the re-
ceipt of the grant, a recipient of a grant under this 
section may not receive any economic benefit in con-
nection with the receipt of the grant. 
(3) PRIORITY
OF
GRANT
APPLICATIONS.—The 
Administrator shall give priority to applicants that 
propose to replace school buses manufactured before 
model year 1977. 
(f) CONDITIONS OF GRANT.—A grant provided under 
this section shall include the following conditions: 
(1) SCHOOL
BUS
FLEET.—All buses acquired 
with funds provided under the grant shall be operated
175
as part of the school bus fleet for which the grant was 
made for a minimum of 5 years. 
(2) USE OF FUNDS.—Funds provided under the 
grant may only be used—
(A) to pay the cost, except as provided in 
paragraph (3), of new alternative fuel school 
buses or ultra-low sulfur diesel fuel school buses, 
including State taxes and contract fees associ-
ated with the acquisition of such buses; and 
(B) to provide—
(i) up to 20 percent of the price of the 
alternative fuel school buses acquired, for 
necessary alternative fuel infrastructure if 
the infrastructure will only be available to 
the grant recipient; and 
(ii) up to 25 percent of the price of the 
alternative fuel school buses acquired, for 
necessary alternative fuel infrastructure if 
the infrastructure will be available to the 
grant recipient and to other bus fleets. 
(3) GRANT
RECIPIENT
FUNDS.—The grant re-
cipient shall be required to provide at least—
(A) in the case of a grant recipient de-
scribed in paragraph (1) or (3) of subsection (c), 
the lesser of—
176
(i) an amount equal to 15 percent of 
the total cost of each bus received; or 
(ii) $15,000 per bus; and 
(B) in the case of a grant recipient de-
scribed in subsection (c)(2), the lesser of—
(i) an amount equal to 20 percent of 
the total cost of each bus received; or 
(ii) $20,000 per bus. 
(4) ULTRA-LOW SULFUR DIESEL FUEL.—In the 
case of a grant recipient receiving a grant for ultra-
low sulfur diesel fuel school buses, the grant recipient 
shall be required to provide documentation to the sat-
isfaction of the Administrator that diesel fuel con-
taining sulfur at not more than 15 parts per million 
is available for carrying out the purposes of the 
grant, and a commitment by the applicant to use 
such fuel in carrying out the purposes of the grant. 
(5) TIMING.—All alternative fuel school buses, 
ultra-low sulfur diesel fuel school buses, or alternative 
fuel infrastructure acquired under a grant awarded 
under this section shall be purchased and placed in 
service as soon as practicable. 
(g) BUSES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), funding under a grant made under this
177
section for the acquisition of new alternative fuel 
school buses or ultra-low sulfur diesel fuel school buses 
shall only be used to acquire school buses—
(A) with a gross vehicle weight of greater 
than 14,000 pounds; 
(B) that are powered by a heavy duty en-
gine; 
(C) in the case of alternative fuel school 
buses manufactured in model years 2005 and 
2006, that emit not more than 1.8 grams per 
brake horsepower-hour of nonmethane hydro-
carbons and oxides of nitrogen and .01 grams 
per brake horsepower-hour of particulate matter; 
and 
(D) in the case of ultra-low sulfur diesel 
fuel school buses manufactured in model years 
2005 and 2006, that emit not more than 2.5 
grams per brake horsepower-hour of nonmethane 
hydrocarbons and oxides of nitrogen and .01 
grams per brake horsepower-hour of particulate 
matter. 
(2) LIMITATIONS.—A bus shall not be acquired 
under this section that emits nonmethane hydro-
carbons, oxides of nitrogen, or particulate matter at 
a rate greater than the best performing technology of
178
the same class of ultra-low sulfur diesel fuel school 
buses commercially available at the time the grant is 
made. 
(h) DEPLOYMENT AND DISTRIBUTION.—The Adminis-
trator shall—
(1) seek, to the maximum extent practicable, to 
achieve nationwide deployment of alternative fuel 
school buses and ultra-low sulfur diesel fuel school 
buses through the program under this section; and 
(2) ensure a broad geographic distribution of 
grant awards, with a goal of no State receiving more 
than 10 percent of the grant funding made available 
under this section for a fiscal year. 
(i) ALLOCATION OF FUNDS.—
(1) IN GENERAL.—Subject to paragraph (2), of 
the amount of grant funding made available to carry 
out this section for any fiscal year, the Administrator 
shall use—
(A) 70 percent for the acquisition of alter-
native fuel school buses or supporting infrastruc-
ture; and 
(B) 30 percent for the acquisition of ultra-
low sulfur diesel fuel school buses. 
(2) INSUFFICIENT NUMBER OF QUALIFIED GRANT 
APPLICATIONS.—After the first fiscal year in which
179
this program is in effect, if the Administrator does 
not receive a sufficient number of qualified grant ap-
plications to meet the requirements of subparagraph 
(A) or (B) of paragraph (1) for a fiscal year, effective 
beginning on August 1 of the fiscal year, the Admin-
istrator shall make the remaining funds available to 
other qualified grant applicants under this section. 
(j) REDUCTION OF SCHOOL BUS IDLING.—Each local 
educational agency (as defined in section 9101 of the Ele-
mentary and Secondary Education Act of 1965 (20 U.S.C. 
7801)) that receives Federal funds under the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6301 et 
seq.) is encouraged to develop a policy, consistent with the 
health, safety, and welfare of students and the proper oper-
ation and maintenance of school buses, to reduce the inci-
dence of unnecessary school bus idling at schools when pick-
ing up and unloading students. 
(k) ANNUAL REPORT.—
(1) IN GENERAL.—Not later than January 31 of 
each year, the Administrator shall transmit to Con-
gress a report evaluating implementation of the pro-
grams under this section and section 813. 
(2) COMPONENTS.—The reports shall include a 
description of—
180
(A) the total number of grant applications 
received; 
(B) the number and types of alternative fuel 
school buses, ultra-low sulfur diesel fuel school 
buses, and retrofitted buses requested in grant 
applications; 
(C) grants awarded and the criteria used to 
select the grant recipients; 
(D) certified engine emission levels of all 
buses purchased or retrofitted under the pro-
grams under this section and section 813; 
(E) an evaluation of the in-use emission 
level of buses purchased or retrofitted under the 
programs under this section and section 813; 
and 
(F) any other information the Adminis-
trator considers appropriate. 
(l) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Administrator to carry 
out this section—
(1) $45,000,000 for fiscal year 2006; and 
(2) $65,000,000 for fiscal year 2007. 
SEC. 813. DIESEL RETROFIT PROGRAM. 
(a) ESTABLISHMENT.—The Administrator, in con-
sultation with the Secretary, shall establish a program for
181
awarding grants on a competitive basis to entities for the 
installation of retrofit technologies for diesel school buses. 
(b) ELIGIBLE RECIPIENTS.—A grant shall be awarded 
under this section only—
(1) to a local or State governmental entity re-
sponsible for providing school bus service to 1 or more 
public school systems; 
(2) to 1 or more contracting entities that provide 
school bus service to 1 or more public school systems, 
if the grant application is submitted jointly with the 
1 or more school systems that the buses will serve, ex-
cept that the application may provide that buses pur-
chased using funds awarded shall be owned, operated, 
and maintained exclusively by the 1 or more con-
tracting entities; or 
(3) to a nonprofit school transportation associa-
tion representing private contracting entities, if the 
association has notified and received approval from 
the 1 or more school systems to be served by the buses. 
(c) AWARDS.—
(1) IN GENERAL.—The Administrator shall seek, 
to the maximum extent practicable, to ensure a broad 
geographic distribution of grants under this section.
182
(2) 
PREFERENCES.—In 
making 
awards 
of 
grants under this section, the Administrator shall give 
preference to proposals that—
(A) will achieve the greatest reductions in 
emissions of nonmethane hydrocarbons, oxides of 
nitrogen, or particulate matter per proposal or 
per bus; or 
(B) involve the use of emissions control ret-
rofit technology on diesel school buses that oper-
ate solely on ultra-low sulfur diesel fuel. 
(d) CONDITIONS OF GRANT.—A grant shall be pro-
vided under this section on the conditions that—
(1) buses on which retrofit emissions-control 
technology are to be demonstrated—
(A) will operate on ultra-low sulfur diesel 
fuel where such fuel is reasonably available or re-
quired for sale by State or local law or regula-
tion; 
(B) were manufactured in model year 1991 
or later; and 
(C) will be used for the transportation of 
school children to and from school for a min-
imum of 5 years;
183
(2) grant funds will be used for the purchase of 
emission control retrofit technology, including State 
taxes and contract fees; and 
(3) grant recipients will provide at least 15 per-
cent of the total cost of the retrofit, including the pur-
chase of emission control retrofit technology and all 
necessary labor for installation of the retrofit. 
(e) VERIFICATION.—Not later than 90 days after the 
date of enactment of this Act, the Administrator shall pub-
lish in the Federal Register procedures to verify—
(1) the retrofit emissions-control technology to be 
demonstrated; 
(2) that buses powered by ultra-low sulfur diesel 
fuel on which retrofit emissions-control technology are 
to be demonstrated will operate on diesel fuel con-
taining not more than 15 parts per million of sulfur; 
and 
(3) that grants are administered in accordance 
with this section. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Administrator to carry 
out this section—
(1) $20,000,000 for fiscal year 2006; and 
(2) $35,000,000 for fiscal year 2007.
184
SEC. 814. FUEL CELL SCHOOL BUSES. 
(a) ESTABLISHMENT.—The Secretary shall establish a 
program for entering into cooperative agreements—
(1) with private sector fuel cell bus developers for 
the development of fuel cell-powered school buses; and 
(2) subsequently, with not less than 2 units of 
local government using natural gas-powered school 
buses and such private sector fuel cell bus developers 
to demonstrate the use of fuel cell-powered school 
buses. 
(b) COST SHARING.—The non-Federal contribution for 
activities funded under this section shall be not less than—
(1) 20 percent for fuel infrastructure develop-
ment activities; and 
(2) 50 percent for demonstration activities and 
for development activities not described in paragraph 
(1). 
(c) REPORTS TO CONGRESS.—Not later than 3 years 
after the date of enactment of this Act, the Secretary shall 
transmit to Congress a report that—
(1) evaluates the process of converting natural 
gas infrastructure to accommodate fuel cell-powered 
school buses; and 
(2) assesses the results of the development and 
demonstration program under this section.
185
(d) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary to carry out 
this section $25,000,000 for the period of fiscal years 2006 
through 2008. 
Subtitle C—Fuel Cell Transit Bus 
Demonstration 
SEC. 821. FUEL CELL TRANSIT BUS DEMONSTRATION. 
(a) IN GENERAL.—The Secretary, in consultation with 
the Secretary of Transportation, shall establish a transit 
bus demonstration program to make competitive, merit-
based awards for 5-year projects to demonstrate not more 
than 25 fuel cell transit buses (and necessary infrastruc-
ture) in 5 geographically dispersed localities. 
(b) PREFERENCE.—In selecting projects under this sec-
tion, the Secretary shall give preference to projects that are 
most likely to mitigate congestion and improve air quality. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary to carry out 
this section $10,000,000 for each of fiscal years 2006 
through 2010. 
TITLE IX—CLEAN COAL POWER 
INITIATIVE 
SEC. 901. AUTHORIZATION OF APPROPRIATIONS. 
(a) CLEAN COAL POWER INITIATIVE.—There are au-
thorized to be appropriated to the Secretary to carry out
186
the activities authorized by this title $200,000,000 for each 
of fiscal years 2006 through 2012, to remain available until 
expended. 
(b) REPORT.—The Secretary shall transmit to Con-
gress the report required by this subsection not later than 
March 31, 2006. The report shall include, with respect to 
subsection (a), a 10-year plan containing—
(1) a detailed assessment of whether the aggre-
gate funding levels provided under subsection (a) are 
the appropriate funding levels for that program; 
(2) a detailed description of how proposals will 
be solicited and evaluated, including a list of all ac-
tivities expected to be undertaken; 
(3) a detailed list of technical milestones for each 
coal and related technology that will be pursued; and 
(4) a detailed description of how the program 
will avoid problems enumerated in General Account-
ing Office reports on the Clean Coal Technology Pro-
gram, including problems that have resulted in 
unspent funds and projects that failed either finan-
cially or scientifically. 
SEC. 902. PROJECT CRITERIA. 
(a) IN GENERAL.—The Secretary shall not provide 
funding under this title for any project that does not ad-
vance efficiency, environmental performance, and cost com-
187
petitiveness well beyond the level of technologies that are 
in commercial service or have been demonstrated on a scale 
that the Secretary determines is sufficient to demonstrate 
that commercial service is viable as of the date of enactment 
of this Act. 
(b) TECHNICAL CRITERIA FOR CLEAN COAL POWER 
INITIATIVE.—
(1) GASIFICATION PROJECTS.—
(A) IN GENERAL.—In allocating the funds 
made available under section 901(a), the Sec-
retary shall ensure that at least 60 percent of the 
funds are used only for projects on coal-based 
gasification technologies, including gasification 
combined cycle, gasification fuel cells, gasifi-
cation coproduction, and hybrid gasification/
combustion. 
(B) TECHNICAL
MILESTONES.—The Sec-
retary shall periodically set technical milestones 
specifying the emission and thermal efficiency 
levels that coal gasification projects under this 
title shall be designed, and reasonably expected, 
to achieve. The technical milestones shall become 
more restrictive during the life of the program. 
The Secretary shall set the periodic milestones so
188
as to achieve by 2020 coal gasification projects 
able—
(i) to remove 99 percent of sulfur diox-
ide; 
(ii) to emit not more than .05 lbs of 
NOx per million Btu; 
(iii) to achieve substantial reductions 
in mercury emissions; and 
(iv) to achieve a thermal efficiency 
of—
(I) 60 percent for coal of more 
than 9,000 Btu; 
(II) 59 percent for coal of 7,000 to 
9,000 Btu; and 
(III) 50 percent for coal of less 
than 7,000 Btu. 
(2) OTHER PROJECTS.—The Secretary shall pe-
riodically set technical milestones and ensure that up 
to 40 percent of the funds appropriated pursuant to 
section 901(a) are used for projects not described in 
paragraph (1). The milestones shall specify the emis-
sion and thermal efficiency levels that projects funded 
under this paragraph shall be designed to and reason-
ably expected to achieve. The technical milestones 
shall become more restrictive during the life of the
189
program. The Secretary shall set the periodic mile-
stones so as to achieve by 2010 projects able—
(A) to remove 97 percent of sulfur dioxide; 
(B) to emit no more than .08 lbs of NOx per 
million Btu; 
(C) to achieve substantial reductions in 
mercury emissions; and 
(D) to achieve a thermal efficiency of—
(i) 45 percent for coal of more than 
9,000 Btu; 
(ii) 44 percent for coal of 7,000 to 
9,000 Btu; and 
(iii) 40 percent for coal of less than 
7,000 Btu. 
(3) CONSULTATION.—Before setting the technical 
milestones under paragraphs (1)(B) and (2), the Sec-
retary shall consult with the Administrator of the En-
vironmental Protection Agency and interested enti-
ties, including coal producers, industries using coal, 
organizations to promote coal or advanced coal tech-
nologies, environmental organizations, and organiza-
tions representing workers. 
(4) EXISTING UNITS.—In the case of projects at 
units in existence on the date of enactment of this 
Act, in lieu of the thermal efficiency requirements set
190
forth in paragraph (1)(B)(iv) and (2)(D), the mile-
stones shall be designed to achieve an overall thermal 
design efficiency improvement, compared to the effi-
ciency of the unit as operated, of not less than—
(A) 7 percent for coal of more than 9,000 
Btu; 
(B) 6 percent for coal of 7,000 to 9,000 Btu; 
or 
(C) 4 percent for coal of less than 7,000 
Btu. 
(5) PERMITTED
USES.—In carrying out this 
title, the Secretary may fund projects that include, as 
part of the project, the separation and capture of car-
bon dioxide. 
(c) FINANCIAL CRITERIA.—The Secretary shall not 
provide a funding award under this title unless the recipi-
ent documents to the satisfaction of the Secretary that—
(1) the award recipient is financially viable 
without the receipt of additional Federal funding; 
(2) the recipient will provide sufficient informa-
tion to the Secretary to enable the Secretary to ensure 
that the award funds are spent efficiently and effec-
tively; and 
(3) a market exists for the technology being dem-
onstrated or applied, as evidenced by statements of
191
interest in writing from potential purchasers of the 
technology. 
(d) FINANCIAL ASSISTANCE.—The Secretary shall pro-
vide financial assistance to projects that meet the require-
ments of subsections (a), (b), and (c) and are likely to—
(1) achieve overall cost reductions in the utiliza-
tion of coal to generate useful forms of energy; 
(2) improve the competitiveness of coal among 
various forms of energy in order to maintain a diver-
sity of fuel choices in the United States to meet elec-
tricity generation requirements; and 
(3) demonstrate methods and equipment that are 
applicable to 25 percent of the electricity generating 
facilities, using various types of coal, that use coal as 
the primary feedstock as of the date of enactment of 
this Act. 
(e) FEDERAL SHARE.—The Federal share of the cost 
of a coal or related technology project funded by the Sec-
retary under this title shall not exceed 50 percent. 
(f) APPLICABILITY.—No technology, or level of emis-
sion reduction, shall be treated as adequately demonstrated 
for purposes of section 111 of the Clean Air Act (42 U.S.C. 
7411), achievable for purposes of section 169 of that Act 
(42 U.S.C. 7479), or achievable in practice for purposes of 
section 171 of that Act (42 U.S.C. 7501) solely by reason
192
of the use of such technology, or the achievement of such 
emission reduction, by 1 or more facilities receiving assist-
ance under this title. 
SEC. 903. REPORT. 
Not later than 1 year after the date of enactment of 
this Act, and once every 2 years thereafter through 2012, 
the Secretary, in consultation with other appropriate Fed-
eral agencies, shall transmit to Congress a report describ-
ing—
(1) the technical milestones set forth in section 
902 and how those milestones ensure progress toward 
meeting the requirements of subsections (b)(1)(B) and 
(b)(2) of section 902; and 
(2) the status of projects funded under this title. 
SEC. 904. CLEAN COAL CENTERS OF EXCELLENCE. 
As part of the program authorized in section 901, the 
Secretary shall award competitive, merit-based grants to 
universities for the establishment of Centers of Excellence 
for Energy Systems of the Future. The Secretary shall pro-
vide grants to universities that show the greatest potential 
for advancing new clean coal technologies.
193
TITLE X—IMPROVED COORDINA-
TION AND MANAGEMENT OF 
CIVILIAN SCIENCE AND TECH-
NOLOGY PROGRAMS 
SEC. 1001. IMPROVED COORDINATION AND MANAGEMENT 
OF CIVILIAN SCIENCE AND TECHNOLOGY 
PROGRAMS. 
(a) RECONFIGURATION OF POSITION OF DIRECTOR OF 
THE OFFICE OF SCIENCE.—Section 209 of the Department 
of Energy Organization Act (42 U.S.C. 7139) is amended 
to read as follows: 
‘‘OFFICE OF SCIENCE 
‘‘SEC. 209. (a) There shall be within the Department 
an Office of Science, to be headed by an Assistant Secretary 
of Science, who shall be appointed by the President, by and 
with the advice and consent of the Senate, and who shall 
be compensated at the rate provided for level IV of the Exec-
utive Schedule under section 5315 of title 5, United States 
Code. 
‘‘(b) The Assistant Secretary of Science shall be in ad-
dition to the Assistant Secretaries provided for under sec-
tion 203 of this Act. 
‘‘(c) It shall be the duty and responsibility of the As-
sistant Secretary of Science to carry out the fundamental 
science and engineering research functions of the Depart-
194
ment, including the responsibility for policy and manage-
ment of such research, as well as other functions vested in 
the Secretary which he may assign to the Assistant Sec-
retary.’’. 
(b) ADDITIONAL ASSISTANT SECRETARY POSITION TO 
ENABLE IMPROVED MANAGEMENT OF NUCLEAR ENERGY 
ISSUES.—(1) Section 203(a) of the Department of Energy 
Organization Act (42 U.S.C. 7133(a)) is amended by strik-
ing ‘‘There shall be in the Department six Assistant Secre-
taries’’ and inserting ‘‘Except as provided in section 209, 
there shall be in the Department seven Assistant Secre-
taries’’. 
(2) It is the sense of the Congress that the leadership 
for departmental missions in nuclear energy should be at 
the Assistant Secretary level. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.—(1) 
Section 5315 of title 5, United States Code, is amended 
by—
(A) striking ‘‘Director, Office of Science, Depart-
ment of Energy.’’; and 
(B) striking ‘‘Assistant Secretaries of Energy 
(6)’’ and inserting ‘‘Assistant Secretaries of Energy 
(8)’’. 
(2) The table of contents for the Department of Energy 
Organization Act (42 U.S.C. 7101 note) is amended—
195
(A) by striking ‘‘Section 209’’ and inserting 
‘‘Sec. 209’’; 
(B) by striking ‘‘213.’’ and inserting ‘‘Sec. 213.’’; 
(C) by striking ‘‘214.’’ and inserting ‘‘Sec. 214.’’; 
(D) by striking ‘‘215.’’ and inserting ‘‘Sec. 
215.’’; and 
(E) by striking ‘‘216.’’ and inserting ‘‘Sec. 216.’’.
Union Calendar No. 123
109TH CONGRESS 
1ST SESSION 
H. R. 610
[Report No. 109–216, Part I] 
A BILL 
To provide for Federal energy research, develop-
ment, demonstration, and commercial application 
activities, and for other purposes. 
JULY 29, 2005
Reported from the Committee on Science with an 
amendment 
JULY 29, 2005
Referred to the Committee on Transportation and Infra-
structure for a period not ending later than July 29, 
2005, for consideration of such provisions of the bill 
and the amendment as fall within the jurisdiction of 
that committee pursuant to clause 1(r), rule X 
JULY 29, 2005
Committees on Energy and Commerce, Resources, and 
Transportation and Infrastructure discharged; com-
mitted to the Committee of the Whole House on the 
State of the Union and ordered to be printed