‘‘(3) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ means any vehicle which is manufactured pri-
marily for use on public streets, roads, and highways 
(not including a vehicle operated exclusively on a rail 
or rails) and which has at least 4 wheels. 
‘‘(d) TERMINATION.—The credit allowed under this 
section shall not apply to expenditures made after Decem-
ber 31, 2010.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart A of part IV of subchapter A of chapter 
1 of such Code is amended by inserting after the item 
relating to section 25D the following new item: 
‘‘Sec. 25E. Credit for conversion of motor vehicle to qualified flexible fuel motor 
vehicle.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures made after Decem-
ber 31, 2006, in taxable years ending after such date. 
SEC. 4. USE OF CAFE PENALTIES TO BUILD ALTERNATIVE 
FUELING INFRASTRUCTURE. 
Section 32912 of title 49, United States Code, is 
amended by adding at the end the following: 
‘‘(e) 
ALTERNATIVE
FUELING
INFRASTRUCTURE 
GRANT PROGRAM.— 
‘‘(1) TRUST FUND.—(A) There is established in 
the Treasury of the United States a trust fund, to 
be known as the Alternative Fueling Infrastructure 
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Trust Fund (referred to in this subsection as the 
‘Trust Fund’), consisting of such amounts as are de-
posited into the Trust Fund under subparagraph 
(B) and any interest earned on investment of 
amounts in the Trust Fund. 
‘‘(B) The Secretary of Transportation shall 
remit 90 percent of the amount collected in civil 
penalties under this section to the Trust Fund. 
‘‘(2) ESTABLISHMENT OF GRANT PROGRAM.— 
The Secretary of Energy shall obligate such sums as 
are available in the Trust Fund to establish a grant 
program to increase the number of locations at 
which consumers may purchase alternative fuels. 
‘‘(3) GRANT RECIPIENTS.— 
‘‘(A) ALLOCATION
TO
CORPORATE
AND 
NONPROFIT ENTITIES.—The Secretary of En-
ergy may allocate from the Trust Fund such 
sums as the Secretary considers appropriate to 
corporations (including nonprofit corporations) 
with demonstrated experience in the adminis-
tration of grant funding for the purpose of 
making alternative fueling infrastructure grants 
to owners and operators of fueling stations. The 
Secretary of Energy may allocate funds only to 
a corporation that agrees to provide $1 of non- 
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Federal contributions for every $3 of Federal 
funding received under this subparagraph. In 
no case may administrative expenses exceed 5 
percent of any total allocation that may be pro-
vided. Allocations under this paragraph may be 
made only for specific types of alternative fuels 
that can be used in at least 50,000 automobiles 
produced in the United States in the prior auto-
mobile production year. 
‘‘(B) CONSIDERATIONS.—In making allo-
cations to corporate and nonprofit entities for 
alternative fueling infrastructure awards under 
subparagraph (A), the Secretary shall— 
‘‘(i) consider the number of auto-
mobiles produced for sale in the preceding 
production year capable of using each spe-
cific type of alternative fuel; and 
‘‘(ii) identify 1 primary entity per al-
ternative fuel capable of implementing a 
national deployment program and pro-
viding technical and marketing assistance. 
‘‘(C) DIRECT GRANTS TO FUELING STA-
TION
OWNERS
AND
OPERATORS.—The Sec-
retary of Energy may award grants directly to 
owners and operators of fueling stations for the 
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purpose of installing alternative fuel infrastruc-
ture for specific types of alternative fuels that 
can be used in not fewer than 50,000 auto-
mobiles produced in the United States in the 
prior automobile production year. 
‘‘(D) GRANT RECIPIENTS.—A recipient of 
an allocation under subparagraph (A) and the 
Secretary of Energy under subparagraph (C) 
shall award grants to owners and operators of 
fueling stations in an amount not greater than 
$150,000 per site or $500,000 per entity. A re-
cipient of a grant under this paragraph shall 
agree to provide $1 of non-Federal contribu-
tions for every $3 of grant funds received under 
this paragraph. In no case may administrative 
expenses exceed 3 percent of any grant that 
may be provided. Recipients of grants shall be 
selected on a formal, open, and competitive 
basis, based on— 
‘‘(i) the public demand for each alter-
native fuel in a particular county based on 
state registration records showing the 
number of automobiles that can be oper-
ated with alternative fuel; 
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‘‘(ii) the opportunity to create or ex-
pand corridors of alternative fuel stations 
along interstate or State highways; and 
‘‘(iii) the opportunity to increase eco-
nomic activity in economically-depressed 
communities. 
‘‘(E) TECHNICAL AND MARKETING ASSIST-
ANCE.—A recipient of an allocation under sub-
paragraph (A) shall provide technical and mar-
keting assistance to recipients of grant awards, 
including point of sale and labeling materials. 
‘‘(4) USE OF FUNDS.—(A) Grant funds received 
under this subsection may be used to— 
‘‘(i) construct new facilities to dispense al-
ternative fuels; 
‘‘(ii) purchase equipment to upgrade, ex-
pand, or otherwise improve existing alternative 
fuel facilities; 
‘‘(iii) purchase equipment or pay for spe-
cific turnkey fueling services by alternative fuel 
providers; or 
‘‘(iv) assist with marketing, point of sale 
materials, including labeling materials and any 
other efforts to promote the availability of alter-
native fuels. 
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