159
ment of Energy that is issued to implement the Com-
mission’s responsibilities under section 202 of the En-
ergy Research, Development, Demonstration, and 
Commercial Application Act of 2003, and any final 
determination of the Commission relating to whether 
a nonmilitary energy laboratory owned or operated 
by the Department is in compliance with such stand-
ards and all applicable Commission regulations or or-
ders.’’. 
(7) EMPLOYEE PROTECTION.—Any Department 
contractor operating a nonmilitary energy laboratory 
that is regulated by the Nuclear Regulatory Commis-
sion under this section shall be subject to section 211 
of the Energy Reorganization Act of 1974 (42 U.S.C. 
5851) to the same extent as any other employer sub-
ject to such section 211. 
(8) CONFLICT OF INTEREST.—Section 170A of 
the Atomic Energy Act of 1954 (42 U.S.C. 2210a) ap-
plies to contracts, agreements, or other arrangements 
of the Nuclear Regulatory Commission proposed or 
entered into pursuant to its responsibilities assumed 
under this subsection. 
(c) OCCUPATIONAL SAFETY AND HEALTH.—
(1) OSHA JURISDICTION.—Notwithstanding sec-
tion 4(b)(1) of the Occupational Safety and Health
160
Act of 1970 (29 U.S.C. 653(b)(1)), effective 2 years 
after the date of enactment of this Act, the Occupa-
tional Safety and Health Administration shall as-
sume the exclusive regulatory and enforcement respon-
sibilities of the Department relating to matters cov-
ered by the Occupational Safety and Health Act of 
1970 with regard to all nonmilitary energy labora-
tories owned or operated by the Department, except as 
provided in paragraph (2). The responsibilities as-
sumed by the Occupational Safety and Health Ad-
ministration under this subsection shall be adminis-
tered by the Occupational Safety and Health Admin-
istration, not by States. Any Department contractor 
operating such a laboratory shall, with respect to 
matters relating to occupational safety and health, be 
considered to be an employer for purposes of the Oc-
cupational Safety and Health Act of 1970. 
(2) REGULATION OF HAZARDS CONTAINING RADI-
OLOGICAL AND NON-RADIOLOGICAL COMPONENT.—If a 
hazard at a nonmilitary energy laboratory owned or 
operated by the Department presents a risk of occupa-
tional exposure and contains both a radiological and 
non-radiological component, the Occupational Safety 
and Health Administration and the Nuclear Regu-
latory Commission shall, effective 2 years after the
161
date of enactment of this Act, share regulatory and 
enforcement responsibilities with respect to the hazard 
in accordance with the memorandum of under-
standing entered into pursuant to subsection (d). 
(d) MEMORANDUM OF UNDERSTANDING.—The Nuclear 
Regulatory Commission and the Occupational Safety and 
Health Administration shall, not later than 1 year after 
the date of enactment of this Act, enter into and transmit 
to the Congress a memorandum of understanding to govern 
the exercise of their respective authorities over nuclear safe-
ty and occupational safety and health at nonmilitary en-
ergy laboratories owned or operated by the Department. 
(e) CIVIL PENALTIES.—The Department’s contractor 
operating a nonmilitary energy laboratory owned or oper-
ated by the Department shall not be liable for civil penalties 
under the Atomic Energy Act of 1954 or the Occupational 
Safety and Health Act of 1970 for any actions taken before 
the date of transfer of regulatory authority under this sec-
tion, pursuant to the instructions of a Federal agency in 
preparation for the transfer of regulatory and enforcement 
responsibilities required by this section. 
(f) INDEMNIFICATION.—The Secretary shall continue 
to indemnify nonmilitary energy laboratories owned or op-
erated by the Department in accordance with the provisions 
of section 170 d. of the Atomic Energy Act of 1954.
162
(g) DEPARTMENT OF ENERGY REPORTING REQUIRE-
MENT.—Not later than 18 months after the date of enact-
ment of this Act, the Secretary shall transmit to the Con-
gress a plan for the termination of the Department’s regu-
latory and enforcement responsibilities for nonmilitary en-
ergy laboratories owned or operated by the Department re-
quired by this section. The report shall include—
(1) a detailed transition plan, drafted in coordi-
nation with the Nuclear Regulatory Commission and 
the Occupational Safety and Health Administration, 
giving the schedule for termination of self-regulation 
authority as outlined in subsection (a), including the 
activities to be coordinated with the Nuclear Regu-
latory Commission and the Occupational Safety and 
Health Administration; 
(2) a description of any issues remaining to be 
resolved with the Nuclear Regulatory Commission, the 
Occupational Safety and Health Administration, or 
other external regulators, and a timetable for resolv-
ing such issues by the authority transfer date estab-
lished under this section; and 
(3) an estimate of—
(A) the annual cost of administering and 
implementing self-regulation of the nuclear safe-
ty and occupational safety and health respon-
163
sibilities described in subsections (b) and (c) at 
nonmilitary energy laboratories owned or oper-
ated by the Department; 
(B) the number of Federal and contractor 
employees administering and implementing such 
self-regulation; and 
(C) the extent and schedule by which the 
Department and the staffs at its nonmilitary en-
ergy laboratories will be reduced as a result of 
implementation of this section. 
(h) GENERAL ACCOUNTING OFFICE REPORTING RE-
QUIREMENT.—The Comptroller General of the United 
States shall periodically report to the Congress on the 
progress made in implementing this section. The Comp-
troller General shall provide a report not later than 20 
months after the date of enactment of this Act on the De-
partment’s transition plan, and not later than 26 months 
after the date of enactment of this Act on the implementa-
tion of Nuclear Regulatory Commission and Occupational 
Safety and Health Administration regulations in the non-
military energy laboratories.
164
TITLE III—CLEAN SCHOOL 
BUSES 
SEC. 301. ESTABLISHMENT OF PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Energy, in 
consultation with the Administrator of the Environmental 
Protection Agency, shall establish a pilot program for 
awarding grants on a competitive basis to eligible entities 
for the demonstration and commercial application of alter-
native fuel school buses and ultra-low sulfur diesel school 
buses. 
(b) REQUIREMENTS.—Not later than 3 months after 
the date of the enactment of this Act, the Secretary shall 
establish and publish in the Federal register grant require-
ments on eligibility for assistance, and on implementation 
of the program established under subsection (a), including 
certification requirements to ensure compliance with this 
title. 
(c) SOLICITATION.—Not later than 6 months after the 
date of the enactment of this Act, the Secretary shall solicit 
proposals for grants under this section. 
(d) 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 one or
165
more public school systems or responsible for the pur-
chase of school buses; or 
(2) to a contracting entity that provides school 
bus service to one or more public school systems, if the 
grant application is submitted jointly with the school 
system or systems which the buses will serve. 
(e) TYPES OF GRANTS.—
(1) IN
GENERAL.—Grants under this section 
shall be for the demonstration and commercial appli-
cation of technologies to facilitate the use of alter-
native fuel school buses and ultra-low sulfur diesel 
school buses in lieu of buses manufactured before 
model year 1977 and diesel-powered buses manufac-
tured before model year 1991. 
(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 
Secretary shall give priority to awarding grants to 
applicants who can demonstrate the use of alternative 
fuel buses and ultra-low sulfur diesel school buses in 
lieu of buses manufactured before model year 1977. 
(f) CONDITIONS OF GRANT.—A grant provided under 
this section shall include the following conditions:
166
(1) All buses acquired with funds provided under 
the grant shall be operated as part of the school bus 
fleet for which the grant was made for a minimum 
of 5 years. 
(2) 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 school buses, in-
cluding State taxes and contract fees; and 
(B) to provide—
(i) up to 10 percent of the price of the 
alternative fuel buses acquired, for necessary 
alternative fuel infrastructure if the infra-
structure will only be available to the grant 
recipient; and 
(ii) up to 15 percent of the price of the 
alternative fuel buses acquired, for necessary 
alternative fuel infrastructure if the infra-
structure will be available to the grant re-
cipient and to other bus fleets. 
(3) The grant recipient shall be required to pro-
vide at least the lesser of 15 percent of the total cost 
of each bus received or $15,000 per bus.
167
(4) In the case of a grant recipient receiving a 
grant to demonstrate ultra-low sulfur diesel school 
buses, the grant recipient shall be required to provide 
documentation to the satisfaction of the Secretary 
that diesel fuel containing sulfur at not more than 15 
parts per million is available for carrying out the 
purposes of the grant, and a commitment by the ap-
plicant to use such fuel in carrying out the purposes 
of the grant. 
(g) BUSES.—Funding under a grant made under this 
section may be used to demonstrate the use only of new al-
ternative fuel school buses or ultra-low sulfur diesel school 
buses—
(1) with a gross vehicle weight of greater than 
14,000 pounds; 
(2) that are powered by a heavy duty engine; 
(3) that, in the case of alternative fuel school 
buses manufactured in model years 2003 through 
2006, emit not more than 1.8 grams per brake horse-
power-hour of nonmethane hydrocarbons and oxides of 
nitrogen and .01 grams per brake horsepower-hour of 
particulate matter; and 
(4) that, in the case of ultra-low sulfur diesel 
school buses, emit not more than—
168
(A) for buses manufactured in model year 
2003, 3.0 grams per brake horsepower-hour of ox-
ides of nitrogen and .01 grams per brake horse-
power-hour of particulate matter; and 
(B) for buses manufactured in model years 
2004 through 2006, 2.5 grams per brake horse-
power-hour of nonmethane hydrocarbons and ox-
ides of nitrogen and .01 grams per brake horse-
power-hour of particulate matter, 
except that under no circumstances shall buses be ac-
quired under this section that emit nonmethane hy-
drocarbons, oxides of nitrogen, or particulate matter 
at a rate greater than the best performing technology 
of the same class of ultra-low sulfur diesel school buses 
commercially available at the time the grant is made. 
(h) DEPLOYMENT AND DISTRIBUTION.—The Secretary 
shall seek to the maximum extent practicable to achieve na-
tionwide deployment of alternative fuel school buses and 
ultra-low sulfur diesel school buses through the program 
under this section, and shall ensure a broad geographic dis-
tribution 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) LIMIT ON FUNDING.—The Secretary shall provide 
not less than 20 percent and not more than 25 percent of
169
the grant funding made available under this section for any 
fiscal year for the acquisition of ultra-low sulfur diesel 
school buses. 
(j) ANNUAL REPORT.—Not later than January 31 of 
each year, the Secretary of Energy shall provide a report 
evaluating implementation of the program under this title 
to the Congress. Such report shall include the total number 
of grant applications received, the number and types of al-
ternative fuel buses and ultra-low sulfur diesel school buses 
requested in grant applications, a list of grants awarded 
and the criteria used to select the grant recipients, certified 
engine emission levels of all buses purchased under the pro-
gram, and any other information the Secretary considers 
appropriate. 
(k) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘alternative fuel school bus’’ means 
a bus powered substantially by electricity (including 
electricity supplied by a fuel cell), or by liquefied nat-
ural gas, compressed natural gas, liquefied petroleum 
gas, hydrogen, propane, or methanol or ethanol at no 
less than 85 percent by volume; and 
(2) the term ‘‘ultra-low sulfur diesel school bus’’ 
means a school bus powered by diesel fuel which con-
tains sulfur at not more than 15 parts per million.
170
SEC. 302. FUEL CELL BUS DEVELOPMENT AND DEMONSTRA-
TION PROGRAM. 
(a) ESTABLISHMENT
OF PROGRAM.—The Secretary 
shall establish a program for entering into cooperative 
agreements with private sector fuel cell bus developers for 
the development of fuel cell-powered school buses, and subse-
quently 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) FUNDING.—No more than $25,000,000 of the 
amounts authorized under section 304 may be used for car-
rying out this section for the period encompassing fiscal 
years 2004 through 2006. 
(d) REPORTS TO CONGRESS.—Not later than 3 years 
after the date of the enactment of this Act, and not later 
than October 1, 2006, the Secretary shall transmit to the 
Congress a report that—
171
(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. 
SEC. 303. DIESEL RETROFIT PROGRAM. 
(a) ESTABLISHMENT.—The Administrator of the En-
vironmental Protection Agency and the Secretary shall es-
tablish a pilot program for awarding grants on a competi-
tive basis to eligible recipients for the demonstration and 
commercial application 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 one or 
more public school systems; or 
(2) to a contracting entity that provides school 
bus service to one or more public school systems, if the 
grant application is submitted jointly with the school 
system or systems which the buses will serve. 
(c) CONDITIONS OF GRANT.—A grant provided under 
this section may be used only to demonstrate the use of ret-
rofit emissions-control technology on diesel buses that—
(1) operate on ultra-low sulfur diesel fuel; and
172
(2) were manufactured in model year 1991 or 
later. 
(d) VERIFICATION.—Not later than 3 months 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; and 
(2) that buses on which retrofit emissions-control 
technology are to be demonstrated will operate on die-
sel fuel containing not more than 15 parts per mil-
lion of sulfur. 
SEC. 304. AUTHORIZATION OF APPROPRIATIONS. 
(a) SCHOOL BUS GRANTS.—There are authorized to 
be appropriated to the Secretary for carrying out this title, 
to remain available until expended—
(1) $90,000,000 for fiscal year 2004; 
(2) $100,000,000 for fiscal year 2005; and 
(3) $110,000,000 for fiscal year 2006. 
(b) RETROFIT GRANTS.—There are authorized to be 
appropriated to the Administrator of the Environmental 
Protection Agency and the Secretary such sums as may be 
necessary for carrying out section 303.
173
TITLE 
IV—ALTERNATIVE 
FUELED AND ADVANCED VE-
HICLES 
SEC. 401. DEFINITIONS. 
For the purposes of this title, the following definitions 
apply: 
(1) ALTERNATIVE FUELED VEHICLE.—The term 
‘‘alternative fueled vehicle’’ means a vehicle propelled 
solely on an alternative fuel as defined in section 301 
of the Energy Policy Act (42 U.S.C. 13211), except 
the term does not include any vehicle that the Sec-
retary determines, by rule, does not yield substantial 
environmental benefits over a vehicle operating solely 
on gasoline or diesel derived 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 that is
174
more efficient than its non-hybrid counterpart and 
that draws propulsion energy from both an internal 
combustion engine using any combustible fuel and an 
onboard energy storage device. 
(4) NEIGHBORHOOD
ELECTRIC
VEHICLE.—The 
term ‘‘neighborhood electric vehicle’’ means a motor 
vehicle capable of traveling at speeds of 25 miles per 
hour that is—
(A) a low-speed vehicle, as such term is de-
fined in section 571.3(b) of title 49, Code of Fed-
eral Regulations; 
(B) a zero-emission vehicle, as such term is 
defined in section 86.1702–99 of title 40, Code of 
Federal Regulations; and 
(C) otherwise lawful to use on local streets. 
(5) PILOT PROGRAM.—The term ‘‘pilot program’’ 
means the competitive grant program established 
under section 402. 
(6) ULTRA-LOW SULFUR DIESEL VEHICLE.—The 
term ‘‘ultra-low sulfur diesel vehicle’’ means a vehicle 
manufactured in model years 2003 through 2006 
powered by a heavy-duty diesel engine that—
(A) is fueled by diesel fuel which contains 
sulfur at not more than 15 parts per million; 
and
175
(B) emits not more than the lesser of—
(i) for vehicles manufactured in—
(I) model year 2003, 3.0 grams 
per brake horsepower-hour of oxides of 
nitrogen and .01 grams per brake 
horsepower-hour of particulate matter; 
and 
(II) model years 2004 through 
2006, 2.5 grams per brake horsepower-
hour of nonmethane hydrocarbons and 
oxides of nitrogen and .01 grams per 
brake horsepower-hour of particulate 
matter; or 
(ii) the emissions of nonmethane hy-
drocarbons, oxides of nitrogen, and particu-
late matter of the best performing tech-
nology of ultra-low sulfur diesel vehicles of 
the same class and application that are 
commercially available. 
SEC. 402. PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish a 
competitive grant pilot program, to be administered 
through the Clean Cities Program of the Department of En-
ergy, to provide not more than 15 geographically dispersed 
project grants to State governments, local governments, or
176
metropolitan transportation authorities to carry out a 
project or projects for the purposes described in subsection 
(b). 
(b) GRANT PURPOSES.—Grants 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 two-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. 
(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 airplanes away from terminal gates. 
(3) The acquisition of ultra-low sulfur diesel ve-
hicles.
177
(4) Infrastructure necessary to directly support 
an alternative fueled vehicle or fuel cell vehicle project 
funded by the grant, including fueling and other sup-
port 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.—The Secretary shall issue 
requirements for applying for grants under the pilot 
program. At a minimum, the Secretary shall require 
that applications be submitted by the head of a State 
or local government or a metropolitan transportation 
authority, or any combination thereof, and a reg-
istered participant in the Clean Cities Program of the 
Department of Energy, and shall include—
(A) at least one project to enable passengers 
or goods to be transferred directly from vehicles 
acquired under this section to a local, regional, 
or national transportation system; 
(B) a description of the projects proposed in 
the application, including how they meet the re-
quirements of this title;
(C) an estimate of the ridership or degree of 
use of the projects proposed in the application;