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(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— 
(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-
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low sulfur diesel fuel school buses, the grant recipi-
ent shall be required to provide documentation to 
the satisfaction of the Administrator that diesel fuel 
containing sulfur at not more than 15 parts per mil-
lion 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 alter-
native 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 
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 2004 
through 2006, that emit not more than 1.8
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grams per brake horsepower-hour of non-
methane hydrocarbons 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 
2004 through 2006, that emit not more than 
2.5 grams per brake horsepower-hour of non-
methane 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 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 Admin-
istrator 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
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(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 Adminis-
trator shall use— 
(A) 70 percent for the acquisition of alter-
native fuel school buses or supporting infra-
structure; 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 this program is in effect, if the Administrator 
does not receive a sufficient number of qualified 
grant applications to meet the requirements of sub-
paragraph (A) or (B) of paragraph (1) for a fiscal 
year, effective beginning on August 1 of the fiscal 
year, the Administrator shall make the remaining 
funds available to other qualified grant applicants 
under this section.
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(j) REDUCTION
OF SCHOOL BUS IDLING.—Each 
local educational agency (as defined in section 9101 of the 
Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7801)) that receives Federal funds under the Ele-
mentary 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 operation and maintenance of school buses, to re-
duce the incidence of unnecessary school bus idling at 
schools when picking up and unloading students. 
(k) ANNUAL REPORT.— 
(1) IN GENERAL.—Not later than January 31 
of each year, the Administrator shall transmit to 
Congress a report evaluating implementation of the 
programs under this section and section 743. 
(2) COMPONENTS.—The reports shall include a 
description of— 
(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;
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(D) certified engine emission levels of all 
buses purchased or retrofitted under the pro-
grams under this section and section 743; 
(E) an evaluation of the in-use emission 
level of buses purchased or retrofitted under the 
programs under this section and section 743; 
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, to remain available until ex-
pended— 
(1) $45,000,000 for fiscal year 2005; 
(2) $65,000,000 for fiscal year 2006; 
(3) $90,000,000 for fiscal year 2007; and 
(4) such sums as are necessary for each of fis-
cal years 2008 and 2009. 
SEC. 743. DIESEL RETROFIT PROGRAM. 
(a) ESTABLISHMENT.—The Administrator, in con-
sultation with the Secretary, shall establish a program for 
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 award-
ed under this section only—