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‘‘(6) RENEWABLE FUEL.—The term ‘renewable 
fuel’ has the meaning given the term in section 
211(o)(1) of the Clean Air Act (42 U.S.C. 
7545(o)(1)), except that the term shall include all 
ethanol and biodiesel. 
‘‘(7) RENEWABLE FUEL PIPELINE.—The term 
‘renewable fuel pipeline’ means a common carrier 
pipeline for transporting renewable fuel.’’. 
(b) RENEWABLE FUEL PIPELINE ELIGIBILITY.— 
Section 1703(b) the Energy Policy Act of 2005 (42 U.S.C. 
16513) is amended by adding at the end the following: 
‘‘(11) Renewable fuel pipelines.’’. 
SEC. 130. FLEET VEHICLES. 
Section 508 of the Energy Policy Act of 1992 (42 
U.S.C. 13258) is amended as follows: 
(1) By adding the following new paragraph at 
the end of subsection (a): 
‘‘(6) REPOWERED
OR
CONVERTED
ALTER-
NATIVE FUELED VEHICLES.—As used in this para-
graph, the term ‘repowered or converted alternative 
fueled vehicle’ includes light-, medium- or heavy-duty 
motor vehicles that have been modified with an EPA 
or CARB compliant engine or vehicle or aftermarket 
system so that the vehicle or engine is capable of op-
erating on an alternative fuel.’’. 
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(2) By adding the following new paragraph at 
the end of subsection (b): 
‘‘(3) Repowered or converted vehicles. Not later 
than January 1, 2010, the Secretary shall allocate 
credits to fleets that repower or convert an existing 
vehicle so that it is capable of operating on an alter-
native fuel. In the case of any medium- or heavy- 
duty vehicle that is repowered or converted so that 
it is capable of operating on an alternative fuel, the 
Secretary shall allocate additional credits for such 
vehicles if he determines that such vehicles displace 
more petroleum than light duty alternative fueled ve-
hicles. Such rules shall also include a requirement 
that such vehicles remain in the fleet for a period of 
no less than 2 years in order to continue to qualify 
for credit. The Secretary also shall extend the flexi-
bility afforded in this paragraph to Federal fleets 
subject to the purchase provisions contained in sec-
tion 303 of this Act.’’. 
SEC. 130A. REPORT ON NATURAL GAS VEHICLE EMISSIONS 
REDUCTIONS. 
Within 360 days after the date of enactment of this 
Act, the Administrator, in consultation with the Secre-
taries of Energy and Transportation, and the Adminis-
trator of the General Services Administration, and after 
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an examination of available scientific studies or analysis, 
shall submit to the Congress a report on— 
(1) the contribution that light and heavy duty 
natural gas vehicles, by category and State, have 
made during the last decade to the reduction of 
greenhouse gases and criteria pollutants under the 
Clean Air Act, and the reduced consumption of pe-
troleum-based fuels; 
(2) the contribution that light and heavy duty 
natural gas vehicles are expected to make from 2010 
to 2020 in reducing greenhouse gas and criteria pol-
lutants under the Clean Air Act based, among other 
things, on additional Federal incentives for the man-
ufacture and deployment of natural gas vehicles pro-
vided in this Act, and other Federal legislation; and 
(3) additional Federal measures, including leg-
islation, that could, if implemented, maximize the 
potential for natural gas used in both stationary and 
mobile sources to contribute to the reduction of 
greenhouse gases and criteria pollutants under the 
Clean Air Act. 
Subtitle D—State Energy and Envi-
ronment Development Accounts 
SEC. 131. ESTABLISHMENT OF SEED ACCOUNTS. 
(a) DEFINITIONS.—In this section: 
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(1) SEED ACCOUNT.—The term ‘‘SEED Ac-
count’’ means a State Energy and Environment De-
velopment Account established pursuant to this sec-
tion. 
(2) STATE ENERGY OFFICE.—The term ‘‘State 
Energy Office’’ means a State entity eligible for 
grants under part D of title III of the Energy Policy 
and Conservation Act (42 U.S.C. 6321 et seq.). 
(b) ESTABLISHMENT OF PROGRAM.—The Adminis-
trator shall establish a program under which a State, 
through its State Energy Office or other State agency des-
ignated by the State, may operate a State Energy and En-
vironment Development Account. 
(c) PURPOSE.—The purpose of each SEED Account 
is to serve as a common State-level repository for man-
aging and accounting for emission allowances provided to 
States designated for renewable energy and energy effi-
ciency purposes. 
(d) REGULATIONS.—Not later than 1 year after the 
date of enactment of this Act, the Administrator shall pro-
mulgate regulations to carry out this section, including 
regulations— 
(1) to ensure that each State operates its 
SEED Account and any subaccounts thereof effi-
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ciently and in accordance with this Act and applica-
ble State and Federal laws; 
(2) to prevent waste, fraud, and abuse; 
(3) to indicate the emission allowances that 
may be deposited in a State’s SEED Account pend-
ing distribution or use; 
(4) to indicate the programs and objectives au-
thorized by Federal law for which emission allow-
ances in a SEED Account may be distributed or 
used; 
(5) to identify the forms of financial assistance 
and incentives that States may provide through dis-
tribution or use of SEED Accounts; and 
(6) to prescribe the form and content of reports 
that the States are required to submit under this 
section on the use of SEED Accounts. 
(e) OPERATION.— 
(1) DEPOSITS.— 
(A) IN GENERAL.—In the allowance track-
ing system established pursuant to section 
724(d) of the Clean Air Act, the Administrator 
shall establish a SEED Account for each State 
and place in it the allowances allocated pursu-
ant to section 782(g) of the Clean Air Act to 
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be distributed to States pursuant to sections 
132 and 201 of this Act. 
(B) FINANCIAL ACCOUNT.—A State may 
create a financial account associated with its 
SEED Account to deposit, retain, and manage 
any proceeds of any sale of any allowance pro-
vided pursuant to this Act pending expenditure 
or disbursement of those proceeds for purposes 
permitted under this section. The funds in such 
an account shall not be commingled with other 
funds not derived from the sale of allowances 
provided to the State; however, loans made by 
the State from such funds pursuant to para-
graph (2)(C)(i) may be repaid into such a fi-
nancial account, including any interest charged. 
(2) WITHDRAWALS.— 
(A) IN GENERAL.—All allowances distrib-
uted pursuant to sections 132 and 201, includ-
ing the proceeds of any sale of such allowances, 
shall support renewable energy and energy effi-
ciency programs authorized or approved by the 
Federal Government. 
(B) 
DEDICATED
ALLOWANCES.—Allow-
ances distributed pursuant to sections 132 and 
201 that are required by law to be used for spe-
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cific purposes for a specified period shall be 
used according to those requirements during 
that period. 
(C) UNDEDICATED ALLOWANCES.—To the 
extent that allowances distributed pursuant to 
sections 132 and 201 are not required by law 
to be used for specific purposes for a specified 
period as described in subparagraph (B), such 
allowances or the proceeds of their sale may be 
used for any of the following purposes: 
(i) LOANS.—Loans of allowances, or 
the proceeds from the sale of allowances, 
may be provided, interest on commercial 
loans may be subsidized at an interest rate 
as low as zero, and other credit support 
may be provided to support programs au-
thorized to use SEED Account allowance 
value or any other renewable energy or en-
ergy efficiency purpose authorized or ap-
proved by the Federal Government. 
(ii) GRANTS.—Grants of allowances or 
the proceeds of their sale may be provided 
to support programs authorized to use 
SEED Account allowance value or any 
other renewable energy or energy efficiency 
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HR 2454 PCS
purpose authorized or approved by the 
Federal Government. 
(iii) OTHER FORMS OF SUPPORT.—Al-
lowances or the proceeds of the sale of al-
lowances may be provided for other forms 
of support for programs authorized to use 
SEED Account allowance value or any 
other renewable energy or energy efficiency 
purpose authorized or approved by the 
Federal Government. 
(iv) ADMINISTRATIVE COSTS.—Except 
to the extent provided in Federal law au-
thorizing or allocating allowances deposited 
in a SEED Account, not more than 5 per-
cent of the allowance value in a SEED Ac-
count in any year may be used to cover ad-
ministrative expenses of the SEED Ac-
count. 
(D) SUBACCOUNTS.—A State may request 
that the Administrator establish accounts for 
local governments that request such sub-
accounts to hold allowances distributed to local 
governments for renewable energy or energy ef-
ficiency programs authorized or approved by 
the Federal Government. 
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(E) INTENDED USE PLANS.— 
(i) IN GENERAL.—After providing for 
public review and comment, each State ad-
ministering a SEED Account shall annu-
ally prepare a plan that identifies the in-
tended uses of the allowances or proceeds 
from the sale of allowances in its SEED 
Account. 
(ii) CONTENTS.—An intended use 
plan shall include— 
(I) a list of the projects or pro-
grams for which withdrawals from the 
SEED Account are intended in the 
next fiscal year that begins after the 
date of the plan, including a descrip-
tion of each project; 
(II) the relationship of each of 
the projects or programs to an identi-
fied Federal purpose authorized by 
this Act, or any other Federal statute; 
(III) the expected terms of use of 
allowance value to provide assistance; 
(IV) the criteria and methods es-
tablished for the distribution of allow-
ances or allowance value; 
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(V) a description of the equiva-
lent financial value and status of the 
SEED Account; and 
(VI) a statement of the mid-term 
and long-term goals of the State for 
use of its SEED Account. 
(3) ACCOUNTABILITY AND TRANSPARENCY.— 
(A) CONTROLS
AND
PROCEDURES.—Any 
State that has a SEED Account shall establish 
fiscal controls and recordkeeping and account-
ing procedures for the SEED Account sufficient 
to ensure proper accounting during appropriate 
accounting periods for distributions into the 
SEED Account, transfers from the SEED Ac-
count, and SEED Account balances, including 
any related financial accounts. Such controls 
and procedures shall conform to generally ac-
cepted government accounting principles. Any 
State that has a SEED Account shall retain 
records for a period of at least 5 years. 
(B) AUDITS.—Any State that has a SEED 
Account shall have an annual audit conducted 
of the SEED Account by an independent public 
accountant in accordance with generally accept-
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ed auditing standards, and shall transmit the 
results of that audit to the Administrator. 
(C) STATE REPORT.—Each State admin-
istering a SEED Account shall make publicly 
available and submit to the Administrator a re-
port every 2 years on its activities related to its 
SEED Account. 
(D) PUBLIC INFORMATION.—Any— 
(i) controls and procedures established 
under subparagraph (A); and 
(ii) information obtained through au-
dits conducted under subparagraph (B), 
except to the extent that it would be pro-
tected from disclosure, if it were informa-
tion held by the Federal Government, 
under section 552(b) of title 5, United 
States Code, 
shall be made publicly available. 
(E) OTHER PROTECTIONS.—The Adminis-
trator shall require such additional procedures 
and protections as are necessary to ensure that 
any State that has a SEED Account will oper-
ate the SEED Account in an accountable and 
transparent manner. 
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