243
(3) $85,962,500 for fiscal year 2008; 
(4) $98,856,875 for fiscal year 2009; 
(5) $113,685,406 for fiscal year 2010; 
(6) $130,738,217 for fiscal year 2011; 
(7) $150,348,950 for fiscal year 2012; 
(8) $172,901,292 for fiscal year 2013; 
(9) $198,836,486 for fiscal year 2014; and 
(10) $228,661,959 for fiscal year 2015. 
SEC. 652. DEFINITIONS. 
For purposes of this subtitle—
(1) the term ‘‘advanced nuclear reactor tech-
nologies’’ means—
(A) technologies related to advanced light 
water reactors that may be commercially avail-
able in the near-term, including mid-sized reac-
tors with passive safety features, for the gen-
eration of electric power from nuclear fission 
and the production of hydrogen; and 
(B) technologies related to other nuclear 
reactors that may require prototype demonstra-
tion prior to availability in the mid-term or 
long-term, including high-temperature, gas-
cooled reactors and liquid metal reactors, for 
the generation of electric power from nuclear 
fission and the production of hydrogen;
244
(2) the term ‘‘institution of higher education’’ 
has the meaning given to that term in section 
101(a) of the Higher Education Act of 1965 (20 
U.S.C. 1001(a)); and 
(3) the term ‘‘Secretary’’ means the Secretary 
of Energy. 
Subtitle D—Nuclear Security 
SEC. 661. NUCLEAR FACILITY THREATS. 
(a) STUDY.—The President, in consultation with the 
Nuclear Regulatory Commission (referred to in this sub-
title as the ‘‘Commission’’) and other appropriate Federal, 
State, and local agencies and private entities, shall con-
duct a study to identify the types of threats that pose an 
appreciable risk to the security of the various classes of 
facilities licensed by the Commission under the Atomic 
Energy Act of 1954 (42 U.S.C. 2011 et seq.). Such study 
shall take into account, but not be limited to—
(1) the events of September 11, 2001; 
(2) an assessment of physical, cyber, bio-
chemical, and other terrorist threats; 
(3) the potential for attack on facilities by mul-
tiple coordinated teams of a large number of individ-
uals; 
(4) the potential for assistance in an attack 
from several persons employed at the facility;
245
(5) the potential for suicide attacks; 
(6) the potential for water-based and air-based 
threats; 
(7) the potential use of explosive devices of con-
siderable size and other modern weaponry; 
(8) the potential for attacks by persons with a 
sophisticated knowledge of facility operations; 
(9) the potential for fires, especially fires of 
long duration; 
(10) the potential for attacks on spent fuel 
shipments by multiple coordinated teams of a large 
number of individuals; 
(11) the adequacy of planning to protect the 
public health and safety at and around nuclear fa-
cilities, as appropriate, in the event of a terrorist at-
tack against a nuclear facility; and 
(12) the potential for theft and diversion of nu-
clear materials from such facilities. 
(b) SUMMARY AND CLASSIFICATION REPORT.—Not 
later than 180 days after the date of the enactment of 
this Act, the President shall transmit to Congress and the 
Commission a report—
(1) summarizing the types of threats identified 
under subsection (a); and
246
(2) classifying each type of threat identified 
under subsection (a), in accordance with existing 
laws and regulations, as either—
(A) involving attacks and destructive acts, 
including sabotage, directed against the facility 
by an enemy of the United States, whether a 
foreign government or other person, or other-
wise falling under the responsibilities of the 
Federal Government; or 
(B) involving the type of risks that Com-
mission licensees should be responsible for 
guarding against. 
(c) FEDERAL ACTION REPORT.—Not later than 90 
days after the date on which a report is transmitted under 
subsection (b), the President shall transmit to Congress 
a report on actions taken, or to be taken, to address the 
types of threats identified under subsection (b)(2)(A), in-
cluding identification of the Federal, State, and local 
agencies responsible for carrying out the obligations and 
authorities of the United States. Such report may include 
a classified annex, as appropriate. 
(d) REGULATIONS.—Not later than 180 days after 
the date on which a report is transmitted under subsection 
(b), the Commission may revise, by rule, the design basis 
threats issued before the date of enactment of this section
247
as the Commission considers appropriate based on the 
summary and classification report. 
(e) PHYSICAL SECURITY PROGRAM.—The Commis-
sion shall establish an operational safeguards response 
evaluation program that ensures that the physical protec-
tion capability and operational safeguards response for 
sensitive nuclear facilities, as determined by the Commis-
sion consistent with the protection of public health and 
the common defense and security, shall be tested periodi-
cally through Commission approved or designed, observed, 
and evaluated force-on-force exercises to determine wheth-
er the ability to defeat the design basis threat is being 
maintained. For purposes of this subsection, the term 
‘‘sensitive nuclear facilities’’ includes at a minimum com-
mercial nuclear power plants and category I fuel cycle fa-
cilities. 
(f) CONTROL
OF INFORMATION.—Notwithstanding 
any other provision of law, the Commission may undertake 
any rulemaking under this subtitle in a manner that will 
fully protect safeguards and classified national security in-
formation. 
(g) FEDERAL SECURITY COORDINATORS.—
(1) REGIONAL
OFFICES.—Not later than 18 
months after the date of enactment of this Act, the 
Commission shall assign a Federal security coordi-
248
nator, under the employment of the Commission, to 
each region of the Commission. 
(2) RESPONSIBILITIES.—The Federal security 
coordinator shall be responsible for—
(A) communicating with the Commission 
and other Federal, State, and local authorities 
concerning threats, including threats against 
such classes of facilities as the Commission de-
termines to be appropriate; 
(B) ensuring that such classes of facilities 
as the Commission determines to be appropriate 
maintain security consistent with the security 
plan in accordance with the appropriate threat 
level; and 
(C) assisting in the coordination of secu-
rity measures among the private security forces 
at such classes of facilities as the Commission 
determines to be appropriate and Federal, 
State, and local authorities, as appropriate. 
(h) TRAINING PROGRAM.—The President shall estab-
lish a program to provide technical assistance and training 
to Federal agencies, the National Guard, and State and 
local law enforcement and emergency response agencies in 
responding to threats against a designated nuclear facility.
249
SEC. 
662. 
FINGERPRINTING 
FOR 
CRIMINAL 
HISTORY 
RECORD CHECKS. 
(a) IN GENERAL.—Subsection a. of section 149 of 
the Atomic Energy Act of 1954 (42 U.S.C. 2169(a)) is 
amended—
(1) by striking ‘‘a. The Nuclear’’ and all that 
follows through ‘‘section 147.’’ and inserting the fol-
lowing: 
‘‘a. IN GENERAL.—
‘‘(1) REQUIREMENTS.—
‘‘(A) IN GENERAL.—The Commission shall 
require each individual or entity—
‘‘(i) that is licensed or certified to en-
gage in an activity subject to regulation by 
the Commission; 
‘‘(ii) that has filed an application for 
a license or certificate to engage in an ac-
tivity subject to regulation by the Commis-
sion; or 
‘‘(iii) that has notified the Commis-
sion, in writing, of an intent to file an ap-
plication for licensing, certification, permit-
ting, or approval of a product or activity 
subject to regulation by the Commission, 
to fingerprint each individual described in sub-
paragraph (B) before the individual is per-
250
mitted unescorted access or access, whichever is 
applicable, as described in subparagraph (B). 
‘‘(B) INDIVIDUALS
REQUIRED
TO
BE 
FINGERPRINTED.—The Commission shall re-
quire to be fingerprinted each individual who—
‘‘(i) is permitted unescorted access 
to—
‘‘(I) a utilization facility; or 
‘‘(II) 
radioactive 
material 
or 
other property subject to regulation 
by the Commission that the Commis-
sion determines to be of such signifi-
cance to the public health and safety 
or the common defense and security 
as to warrant fingerprinting and back-
ground checks; or 
‘‘(ii) is permitted access to safeguards 
information under section 147.’’; 
(2) by striking ‘‘All fingerprints obtained by a 
licensee or applicant as required in the preceding 
sentence’’ and inserting the following: 
‘‘(2) SUBMISSION
TO
THE
ATTORNEY
GEN-
ERAL.—All fingerprints obtained by an individual or 
entity as required in paragraph (1)’’;
251
(3) by striking ‘‘The costs of any identification 
and records check conducted pursuant to the pre-
ceding sentence shall be paid by the licensee or ap-
plicant.’’ and inserting the following: 
‘‘(3) COSTS.—The costs of any identification 
and records check conducted pursuant to paragraph 
(1) shall be paid by the individual or entity required 
to conduct the fingerprinting under paragraph 
(1)(A).’’; and 
(4) by striking ‘‘Notwithstanding any other pro-
vision of law, the Attorney General may provide all 
the results of the search to the Commission, and, in 
accordance with regulations prescribed under this 
section, the Commission may provide such results to 
licensee or applicant submitting such fingerprints.’’ 
and inserting the following: 
‘‘(4) PROVISION TO INDIVIDUAL OR ENTITY RE-
QUIRED
TO
CONDUCT
FINGERPRINTING.—Notwith-
standing any other provision of law, the Attorney 
General may provide all the results of the search to 
the Commission, and, in accordance with regulations 
prescribed under this section, the Commission may 
provide such results to the individual or entity re-
quired to conduct the fingerprinting under para-
graph (1)(A).’’.
252
(b) ADMINISTRATION.—Subsection c. of section 149 
of the Atomic Energy Act of 1954 (42 U.S.C. 2169(c)) 
is amended—
(1) by striking ‘‘, subject to public notice and 
comment, regulations—’’ and inserting ‘‘require-
ments—’’; and 
(2) 
by 
striking, 
in 
paragraph 
(2)(B), 
‘‘unescorted access to the facility of a licensee or ap-
plicant’’ and inserting ‘‘unescorted access to a utili-
zation facility, radioactive material, or other prop-
erty described in subsection a.(1)(B)’’. 
(c) BIOMETRIC METHODS.—Subsection d. of section 
149 of the Atomic Energy Act of 1954 (42 U.S.C. 
2169(d)) is redesignated as subsection e., and the fol-
lowing is inserted after subsection c.: 
‘‘d. USE
OF OTHER BIOMETRIC METHODS.—The 
Commission may satisfy any requirement for a person to 
conduct fingerprinting under this section using any other 
biometric method for identification approved for use by 
the Attorney General, after the Commission has approved 
the alternative method by rule.’’.
253
SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF 
LICENSEES AND CERTIFICATE HOLDERS OF 
THE COMMISSION. 
Section 161 of the Atomic Energy Act of 1954 (42 
U.S.C. 2201) is amended by adding at the end the fol-
lowing subsection: 
‘‘(z)(1) notwithstanding section 922(o), (v), and 
(w) of title 18, United States Code, or any similar 
provision of any State law or any similar rule or reg-
ulation of a State or any political subdivision of a 
State prohibiting the transfer or possession of a 
handgun, a rifle or shotgun, a short-barreled shot-
gun, a short-barreled rifle, a machinegun, a semi-
automatic assault weapon, ammunition for the fore-
going, or a large capacity ammunition feeding de-
vice, authorize security personnel of licensees and 
certificate holders of the Commission (including em-
ployees of contractors of licensees and certificate 
holders) to receive, possess, transport, import, and 
use 1 or more of those weapons, ammunition, or de-
vices, if the Commission determines that—
‘‘(A) such authorization is necessary to the 
discharge of the security personnel’s official du-
ties; and 
‘‘(B) the security personnel—
254
‘‘(i) are not otherwise prohibited from 
possessing or receiving a firearm under 
Federal or State laws pertaining to posses-
sion of firearms by certain categories of 
persons; 
‘‘(ii) have successfully completed re-
quirements established through guidelines 
implementing this subsection for training 
in use of firearms and tactical maneuvers; 
‘‘(iii) are engaged in the protection 
of—
‘‘(I) facilities owned or operated 
by a Commission licensee or certifi-
cate holder that are designated by the 
Commission; or 
‘‘(II) 
radioactive 
material 
or 
other property owned or possessed by 
a person that is a licensee or certifi-
cate holder of the Commission, or that 
is being transported to or from a fa-
cility owned or operated by such a li-
censee or certificate holder, and that 
has been determined by the Commis-
sion to be of significance to the com-
255
mon defense and security or public 
health and safety; and 
‘‘(iv) are discharging their official du-
ties. 
‘‘(2) Such receipt, possession, transportation, 
importation, or use shall be subject to—
‘‘(A) chapter 44 of title 18, United States 
Code, except for section 922(a)(4), (o), (v), and 
(w); 
‘‘(B) chapter 53 of title 26, United States 
Code, except for section 5844; and 
‘‘(C) a background check by the Attorney 
General, based on fingerprints and including a 
check of the system established under section 
103(b) of the Brady Handgun Violence Preven-
tion Act (18 U.S.C. 922 note) to determine 
whether the person applying for the authority is 
prohibited from possessing or receiving a fire-
arm under Federal or State law. 
‘‘(3) This subsection shall become effective 
upon the issuance of guidelines by the Commission, 
with the approval of the Attorney General, to govern 
the implementation of this subsection. 
‘‘(4) In this subsection, the terms ‘handgun’, 
‘rifle’, ‘shotgun’, ‘firearm’, ‘ammunition’, ‘machine-
256
gun’, ‘semiautomatic assault weapon’, ‘large capacity 
ammunition feeding device’, ‘short-barreled shotgun’, 
and ‘short-barreled rifle’ shall have the meanings 
given those terms in section 921(a) of title 18, 
United States Code.’’. 
SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS 
WEAPONS. 
Section 229 a. of the Atomic Energy Act of 1954 (42 
U.S.C. 2278a(a)) is amended in the first sentence by in-
serting ‘‘or subject to the licensing authority of the Com-
mission or to certification by the Commission under this 
Act or any other Act’’ before the period at the end. 
SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL. 
(a) IN GENERAL.—Section 236 a. of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2284(a)) is amended—
(1) in paragraph (2), by striking ‘‘storage facil-
ity’’ and inserting ‘‘storage, treatment, or disposal 
facility’’; 
(2) in paragraph (3)—
(A) by striking ‘‘such a utilization facility’’ 
and inserting ‘‘a utilization facility licensed 
under this Act’’; and 
(B) by striking ‘‘or’’ at the end; 
(3) in paragraph (4)—
257
(A) by striking ‘‘facility licensed’’ and in-
serting ‘‘, uranium conversion, or nuclear fuel 
fabrication facility licensed or certified’’; and 
(B) by striking the comma at the end and 
inserting a semicolon; and 
(4) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) any production, utilization, waste storage, 
waste treatment, waste disposal, uranium enrich-
ment, uranium conversion, or nuclear fuel fabrica-
tion facility subject to licensing or certification 
under this Act during construction of the facility, if 
the destruction or damage caused or attempted to be 
caused could adversely affect public health and safe-
ty during the operation of the facility; 
‘‘(6) any primary facility or backup facility 
from which a radiological emergency preparedness 
alert and warning system is activated; or 
‘‘(7) any radioactive material or other property 
subject to regulation by the Nuclear Regulatory 
Commission that, before the date of the offense, the 
Nuclear Regulatory Commission determines, by 
order or regulation published in the Federal Reg-
ister, is of significance to the public health and safe-
ty or to common defense and security,’’.
258
(b) PENALTIES.—Section 236 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2284) is amended by striking 
‘‘$10,000 or imprisoned for not more than 20 years, or 
both, and, if death results to any person, shall be impris-
oned for any term of years or for life’’ both places it ap-
pears and inserting ‘‘$1,000,000 or imprisoned for up to 
life without parole’’. 
SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS. 
(a) AMENDMENT.—Chapter 14 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2201–2210b) is amended by add-
ing at the end the following new section: 
‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS. 
‘‘a. The Nuclear Regulatory Commission shall estab-
lish a system to ensure that materials described in sub-
section b., when transferred or received in the United 
States by any party pursuant to an import or export li-
cense issued pursuant to this Act, are accompanied by a 
manifest describing the type and amount of materials 
being transferred or received. Each individual receiving or 
accompanying the transfer of such materials shall be sub-
ject to a security background check conducted by appro-
priate Federal entities. 
‘‘b. Except as otherwise provided by the Commission 
by regulation, the materials referred to in subsection a. 
are byproduct materials, source materials, special nuclear
259
materials, high-level radioactive waste, spent nuclear fuel, 
transuranic waste, and low-level radioactive waste (as de-
fined in section 2(16) of the Nuclear Waste Policy Act 
of 1982 (42 U.S.C. 10101(16))).’’. 
(b) REGULATIONS.—Not later than 1 year after the 
date of the enactment of this Act, and from time to time 
thereafter as it considers necessary, the Nuclear Regu-
latory Commission shall issue regulations identifying ra-
dioactive materials or classes of individuals that, con-
sistent with the protection of public health and safety and 
the common defense and security, are appropriate excep-
tions to the requirements of section 170C of the Atomic 
Energy Act of 1954, as added by subsection (a) of this 
section. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect upon the issuance of regu-
lations under subsection (b), except that the background 
check requirement shall become effective on a date estab-
lished by the Commission. 
(d) EFFECT ON OTHER LAW.—Nothing in this sec-
tion or the amendment made by this section shall waive, 
modify, or affect the application of chapter 51 of title 49, 
United States Code, part A of subtitle V of title 49, 
United States Code, part B of subtitle VI of title 49, 
United States Code, and title 23, United States Code.
260
(e) TABLE OF SECTIONS AMENDMENT.—The table of 
sections for chapter 14 of the Atomic Energy Act of 1954 
is amended by adding at the end the following new item:
‘‘Sec. 170C. Secure transfer of nuclear materials.’’.
SEC. 667. DEPARTMENT OF HOMELAND SECURITY CON-
SULTATION. 
Before issuing a license for a utilization facility, the 
Nuclear Regulatory Commission shall consult with the De-
partment of Homeland Security concerning the potential 
vulnerabilities of the location of the proposed facility to 
terrorist attack. 
SEC. 668. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appro-
priated such sums as are necessary to carry out this sub-
title and the amendments made by this subtitle. 
(b) NUCLEAR REGULATORY COMMISSION USER FEES 
AND ANNUAL CHARGES.—Section 6101 of the Omnibus 
Budget Reconciliation Act of 1990 (42 U.S.C. 2214) is 
amended—
(1) in subsection (a)—
(A) by striking ‘‘Except as provided in 
paragraph (3), the’’ and inserting ‘‘The’’ in 
paragraph (1); and 
(B) by striking paragraph (3); and 
(2) in subsection (c)—
261
(A) by striking ‘‘and’’ at the end of para-
graph (2)(A)(i); 
(B) by striking the period at the end of 
paragraph (2)(A)(ii) and inserting a semicolon; 
(C) by adding at the end of paragraph 
(2)(A) the following new clauses: 
‘‘(iii) amounts appropriated to the 
Commission for the fiscal year for imple-
mentation of section 3116 of the Ronald 
W. Reagan National Defense Authorization 
Act for Fiscal Year 2005; and 
‘‘(iv) amounts appropriated to the 
Commission for homeland security activi-
ties of the Commission for the fiscal year, 
except for the costs of fingerprinting and 
background checks required by section 149 
of the Atomic Energy Act of 1954 (42 
U.S.C. 2169) and the costs of conducting 
security inspections.’’; and 
(D) by amending paragraph (2)(B)(v) to 
read as follows: 
‘‘(v) 90 percent for fiscal year 2005 
and each fiscal year thereafter.’’.
262
(c) REPEAL.—Section 7601 of the Consolidated Om-
nibus Budget Reconciliation Act of 1985 (42 U.S.C. 2213) 
is repealed. 
TITLE VII—VEHICLES AND 
FUELS 
Subtitle A—Existing Programs 
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED 
VEHICLES. 
Section 400AA(a)(3)(E) of the Energy Policy and 
Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended 
to read as follows: 
‘‘(E)(i) Dual fueled vehicles acquired pursuant to this 
section shall be operated on alternative fuels unless the 
Secretary determines that an agency qualifies for a waiver 
of such requirement for vehicles operated by the agency 
in a particular geographic area in which—
‘‘(I) the alternative fuel otherwise required to 
be used in the vehicle is not reasonably available to 
retail purchasers of the fuel, as certified to the Sec-
retary by the head of the agency; or 
‘‘(II) the cost of the alternative fuel otherwise 
required to be used in the vehicle is unreasonably 
more expensive compared to gasoline, as certified to 
the Secretary by the head of the agency.
263
‘‘(ii) The Secretary shall monitor compliance with 
this subparagraph by all such fleets and shall report annu-
ally to Congress on the extent to which the requirements 
of this subparagraph are being achieved. The report shall 
include information on annual reductions achieved from 
the use of petroleum-based fuels and the problems, if any, 
encountered in acquiring alternative fuels.’’. 
SEC. 704. INCREMENTAL COST ALLOCATION. 
Section 303(c) of the Energy Policy Act of 1992 (42 
U.S.C. 13212(c)) is amended by striking ‘‘may’’ and in-
serting ‘‘shall’’. 
SEC. 705. LEASE CONDENSATES. 
(a) LEASE CONDENSATE FUELS.—Section 301 of the 
Energy Policy Act of 1992 (42 U.S.C. 13211) is amend-
ed—
(1) in paragraph (2), by inserting ‘‘mixtures 
containing 50 percent or more by volume of lease 
condensate or fuels extracted from lease conden-
sate;’’ after ‘‘liquefied petroleum gas;’’; 
(2) in paragraph (13), by striking ‘‘and’’ at the 
end; 
(3) in paragraph (14)—
(A) by inserting ‘‘mixtures containing 50 
percent or more by volume of lease condensate
264
or fuels extracted from lease condensate,’’ after 
‘‘liquefied petroleum gas,’’; and 
(B) by striking the period and inserting ‘‘; 
and’’; and 
(4) by adding at the end the following: 
‘‘(15) the term ‘lease condensate’ means a mix-
ture, primarily of pentanes and heavier hydro-
carbons, that is recovered as a liquid from natural 
gas in lease separation facilities.’’. 
(b) LEASE CONDENSATE USE CREDITS.—
(1) IN GENERAL.—Title III of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13211 et seq.) is amend-
ed by adding at the end the following: 
‘‘SEC. 313. LEASE CONDENSATE USE CREDITS. 
‘‘(a) IN GENERAL.—Subject to subsection (d), the 
Secretary shall allocate 1 credit under this section to a 
fleet or covered person for each qualifying volume of the 
lease condensate component of fuel containing at least 50 
percent lease condensate, or fuels extracted from lease 
condensate, after the date of enactment of this section for 
use by the fleet or covered person in vehicles owned or 
operated by the fleet or covered person that weigh more 
than 8,500 pounds gross vehicle weight rating. 
‘‘(b) REQUIREMENTS.—A credit allocated under this 
section—
265
‘‘(1) shall be subject to the same exceptions, 
authority, documentation, and use of credits that are 
specified for qualifying volumes of biodiesel in sec-
tion 312; and 
‘‘(2) shall not be considered a credit under sec-
tion 508. 
‘‘(c) REGULATION.—
‘‘(1) IN GENERAL.—Subject to subsection (d), 
not later than January 1, 2006, after the collection 
of appropriate information and data that consider 
usage options, uses in other industries, products, or 
processes, potential volume capacities, costs, air 
emissions, and fuel efficiencies, the Secretary shall 
issue a regulation establishing requirements and pro-
cedures for the implementation of this section. 
‘‘(2) QUALIFYING
VOLUME.—The regulation 
shall include a determination of an appropriate 
qualifying volume for lease condensate, except that 
in no case shall the Secretary determine that the 
qualifying volume for lease condensate is less than 
1,125 gallons. 
‘‘(d) APPLICABILITY.—This section applies unless the 
Secretary finds that the use of lease condensate as an al-
ternative fuel would adversely affect public health or safe-
ty or ambient air quality or the environment.’’.
266
(2) TABLE OF CONTENTS AMENDMENT.—The 
table of contents of the Energy Policy Act of 1992 
(42 U.S.C. prec. 13201) is amended by adding at 
the end of the items relating to title III the fol-
lowing:
‘‘Sec. 313. Lease condensate use credits.’’.
(c) EMERGENCY EXEMPTION.—Section 301 of the 
Energy Policy Act of 1992 (42 U.S.C. 13211) is amended 
in paragraph (9)(E) by inserting before the semicolon at 
the end ‘‘, including vehicles directly used in the emer-
gency repair of transmission lines and in the restoration 
of electricity service following power outages, as deter-
mined by the Secretary’’. 
SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PRO-
GRAMS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this section, the Secretary of Energy 
shall complete a study to determine the effect that titles 
III, IV, and V of the Energy Policy Act of 1992 (42 
U.S.C. 13211 et seq.) have had on—
(1) the development of alternative fueled vehicle 
technology; 
(2) the availability of that technology in the 
market; and 
(3) the cost of alternative fueled vehicles.
267
(b) TOPICS.—As part of the study under subsection 
(a), the Secretary shall specifically identify—
(1) the number of alternative fueled vehicles ac-
quired by fleets or covered persons required to ac-
quire alternative fueled vehicles; 
(2) the quantity, by type, of alternative fuel ac-
tually used in alternative fueled vehicles acquired by 
fleets or covered persons; 
(3) the quantity of petroleum displaced by the 
use of alternative fuels in alternative fueled vehicles 
acquired by fleets or covered persons; 
(4) the direct and indirect costs of compliance 
with requirements under titles III, IV, and V of the 
Energy Policy Act of 1992 (42 U.S.C. 13211 et 
seq.), including—
(A) vehicle acquisition requirements im-
posed on fleets or covered persons; 
(B) administrative and recordkeeping ex-
penses; 
(C) fuel and fuel infrastructure costs; 
(D) associated training and employee ex-
penses; and 
(E) any other factors or expenses the Sec-
retary determines to be necessary to compile re-
liable estimates of the overall costs and benefits
268
of complying with programs under those titles 
for fleets, covered persons, and the national 
economy; 
(5) the existence of obstacles preventing compli-
ance with vehicle acquisition requirements and in-
creased use of alternative fuel in alternative fueled 
vehicles acquired by fleets or covered persons; and 
(6) the projected impact of amendments to the 
Energy Policy Act of 1992 made by this title. 
(c) REPORT.—Upon completion of the study under 
this section, the Secretary shall submit to Congress a re-
port that describes the results of the study and includes 
any recommendations of the Secretary for legislative or 
administrative changes concerning the alternative fueled 
vehicle requirements under titles III, IV and V of the En-
ergy Policy Act of 1992 (42 U.S.C. 13211 et seq.). 
SEC. 707. REPORT CONCERNING COMPLIANCE WITH AL-
TERNATIVE FUELED VEHICLE PURCHASING 
REQUIREMENTS. 
Section 310(b)(1) of the Energy Policy Act of 1992 
(42 U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year 
after the date of enactment of this subsection’’ and insert-
ing ‘‘February 15, 2006’’.
269
Subtitle B—Hybrid Vehicles, Ad-
vanced Vehicles, and Fuel Cell 
Buses 
PART 1—HYBRID VEHICLES 
SEC. 711. HYBRID VEHICLES. 
The Secretary of Energy shall accelerate efforts di-
rected toward the improvement of batteries and other re-
chargeable energy storage systems, power electronics, hy-
brid systems integration, and other technologies for use 
in hybrid vehicles. 
SEC. 712. HYBRID RETROFIT AND ELECTRIC CONVERSION 
PROGRAM. 
(a) ESTABLISHMENT.—The Administrator of the En-
vironmental Protection Agency, in consultation with the 
Secretary, shall establish a program for awarding grants 
on a competitive basis to entities for the installation of 
hybrid retrofit and electric conversion technologies for 
combustion engine vehicles. 
(b) ELIGIBLE RECIPIENTS.—A grant shall be award-
ed under this section only—
(1) to a local or State governmental entity; 
(2) to a for-profit or nonprofit corporation or 
other person; or
270
(3) to 1 or more contracting entities that serv-
ice combustion engine vehicles for an entity de-
scribed in paragraph (1) or (2). 
(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. 
(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 per proposal or per vehicle; or 
(B) involve the use of emissions control 
retrofit or conversion technology. 
(d) CONDITIONS OF GRANT.—A grant shall be pro-
vided under this section on the conditions that—
(1) combustion engine vehicles on which hybrid 
retrofit or conversion technology are to be dem-
onstrated—
(A) with the retrofit or conversion tech-
nology applied will achieve low-emission stand-
ards consistent with the Voluntary National 
Low Emission Vehicle Program for Light-Duty
271
Vehicles and Light-Duty Trucks (40 CFR Part 
86) without model year restrictions; and 
(B) will be used for a minimum of 3 years; 
(2) grant funds will be used for the purchase of 
hybrid retrofit or conversion 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 or conversion, 
including the purchase of hybrid retrofit or conver-
sion technology and all necessary labor for installa-
tion of the retrofit or conversion. 
(e) VERIFICATION.—Not later than 90 days after the 
date of enactment of this Act, the Administrator shall 
publish in the Federal Register procedures to verify—
(1) the hybrid retrofit or conversion technology 
to be demonstrated; and 
(2) 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, to remain available until ex-
pended—
(1) $20,000,000 for fiscal year 2005; 
(2) $35,000,000 for fiscal year 2006; 
(3) $45,000,000 for fiscal year 2007; and
272
(4) such sums as are necessary for each of fis-
cal years 2008 and 2009. 
PART 2—ADVANCED VEHICLES 
SEC. 721. DEFINITIONS. 
In this part: 
(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)). 
(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 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 
vehicle or is produced onboard by reformation of a 
hydrocarbon fuel. Such fuel cell system may or may
273
not include the use of auxiliary energy storage sys-
tems 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—
(A) meets the definition of a low-speed ve-
hicle (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 pro-
gram’’ means the competitive grant program estab-
lished under section 722. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy.
274
(7) ULTRA-LOW
SULFUR
DIESEL
VEHICLE.—
The term ‘‘ultra-low sulfur diesel vehicle’’ means a 
vehicle manufactured in any of model years 2004 
through 2006 powered by a heavy-duty diesel engine 
that—
(A) is fueled by diesel fuel that contains 
sulfur at not more than 15 parts per million; 
and 
(B) emits not more than the lesser of—
(i) for vehicles manufactured in model 
years 2004 through 2006, 2.5 grams per 
brake horsepower-hour of nonmethane hy-
drocarbons and oxides of nitrogen and .01 
grams per brake horsepower-hour of par-
ticulate matter; or 
(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 die-
sel vehicles of the same class and applica-
tion that are commercially available. 
SEC. 722. PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary, in consulta-
tion with the Secretary of Transportation, shall establish 
a competitive grant pilot program, to be administered
275
through the Clean Cities Program of the Department of 
Energy, to provide not more than 15 geographically dis-
persed project grants to State governments, local govern-
ments, or metropolitan transportation authorities to carry 
out a project or projects for the purposes described in sub-
section (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 
metropolitan transportation authority employ-
ees. 
(2) The acquisition of alternative fueled vehi-
cles, 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
276
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 
vehicle, 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. 
(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 metropoli-
tan transportation authority, or any com-
bination thereof, and a registered partici-
277
pant 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 require-
ments of this part; 
(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 
environmental 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 
Federal assistance after the comple-
tion 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;
278
(VI) a description of which costs 
of the project will be supported by 
Federal assistance under this part; 
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 carrying out the project, and a 
commitment 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 experi-
ence with similar projects; and 
(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-
279
hood that the project will be maintained or ex-
panded after Federal assistance under this part 
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 as-
sistance 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 
Secretary shall seek to the maximum extent prac-
ticable 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
280
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 Sec-
retary shall publish in the Federal Register, Com-
merce Business Daily, and elsewhere as appropriate, 
a request for applications to undertake projects 
under the pilot program. 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 re-
viewed proposal, all applications for projects to be 
awarded a grant under the pilot program. 
(g) LIMIT ON FUNDING.—The Secretary shall pro-
vide not less than 20 nor more than 25 percent of the 
grant funding made available under this section for the 
acquisition of ultra-low sulfur diesel vehicles. 
SEC. 723. REPORTS TO CONGRESS. 
(a) INITIAL REPORT.—Not later than 60 days after 
the date on which grants are awarded under this part, 
the Secretary shall submit to Congress a report con-
taining—
281
(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 ap-
plicants 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 Congress a report containing an evaluation of the effec-
tiveness of the pilot program, including—
(1) an assessment of the benefits to the envi-
ronment derived from the projects included in the 
pilot program; and 
(2) an estimate of the potential benefits to the 
environment to be derived from widespread applica-
tion of alternative fueled vehicles and ultra-low sul-
fur diesel vehicles.
282
SEC. 724. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary to carry out this part $200,000,000, to remain 
available until expended. 
PART 3—FUEL CELL BUSES 
SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION. 
(a) IN GENERAL.—The Secretary of Energy, in con-
sultation with the Secretary of Transportation, shall es-
tablish a transit bus demonstration program to make com-
petitive, merit-based awards for 5-year projects to dem-
onstrate not more than 25 fuel cell transit buses (and nec-
essary infrastructure) in 5 geographically dispersed local-
ities. 
(b) PREFERENCE.—In selecting projects under this 
section, the Secretary of Energy 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 of En-
ergy to carry out this section $10,000,000 for each of fis-
cal years 2006 through 2010. 
Subtitle C—Clean School Buses 
SEC. 741. DEFINITIONS. 
In this subtitle:
283
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) ALTERNATIVE
FUEL.—The term ‘‘alter-
native fuel’’ means liquefied natural gas, compressed 
natural gas, liquefied petroleum gas, hydrogen, pro-
pane, or methanol or ethanol at no less than 85 per-
cent by volume. 
(3) ALTERNATIVE
FUEL
SCHOOL
BUS.—The 
term ‘‘alternative fuel school bus’’ means a school 
bus that meets all of the requirements of this sub-
title and is operated solely on an alternative fuel. 
(4) EMISSIONS
CONTROL
RETROFIT
TECH-
NOLOGY.—The term ‘‘emissions control retrofit tech-
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 
installed on an existing school bus. 
(5) IDLING.—The term ‘‘idling’’ means oper-
ating 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.
284
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(7) 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. 
(8) 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 re-
quirements of this subtitle and is operated solely on 
ultra-low sulfur diesel fuel. 
SEC. 742. 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 
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
285
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 require-
ments established under paragraph (1) shall require 
submission 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 award-
ed under this section only—
(1) to 1 or more local or State governmental 
entities responsible for providing school bus service 
to 1 or more public school systems or responsible for 
the purchase of school buses; 
(2) to 1 or more contracting entities that pro-
vide 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, except that the application may provide 
that buses purchased using funds awarded shall be
286
owned, operated, and maintained exclusively by the 
1 or more contracting 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 
qualified applicant for a fiscal year—
(A) in the case of the first fiscal year of 
program implementation, not later than the 
date that is 90 days after the application dead-
line established under subsection (b)(2); and 
(B) in the case of each subsequent fiscal 
year, not later than August 1 of the fiscal year. 
(2) INSUFFICIENT
NUMBER
OF
QUALIFIED 
GRANT
APPLICATIONS.—If the Administrator does 
not receive a sufficient number of qualified grant ap-
plications 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.
287
(e) TYPES OF GRANTS.—
(1) IN GENERAL.—A grant under this section 
shall be used for the replacement of school buses 
manufactured before model year 1991 with alter-
native fuel school buses and ultra-low sulfur diesel 
fuel school buses. 
(2) NO ECONOMIC BENEFIT.—Other than the 
receipt 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 oper-
ated 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
288
buses, including State taxes and contract fees 
associated 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—
(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—
289
(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 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;
290
(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 
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—
291
(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 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
292
year, the Administrator 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 
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