I 
108TH CONGRESS 
1ST SESSION H. R. 2209
To require that diesel fuel sold in the United States meet specifications 
designed to facilitate the widespread introduction of clean diesel vehicles 
in the United States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2003
Mr. DINGELL introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committee on 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To require that diesel fuel sold in the United States meet 
specifications designed to facilitate the widespread intro-
duction of clean diesel vehicles in the United States, 
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Clean Diesel Act of 
2003’’. 
SEC. 2. FINDINGS. 
The Congress finds the following:
(1) Sulfur in diesel fuel is a source of air pollu-
tion. 
(2) Clean burning diesel technology is capable 
of high fuel economy (exceeding 125 percent of 
model year 2002 fuel economy). 
(3) Dependence on foreign oil is an issue of na-
tional security. 
(4) The fuel economy benefits of diesel vehicles 
can be seen in Europe, where diesel powered vehicles 
are widely available. 
(5) The introduction of clean burning diesel ve-
hicles would be facilitated greatly by the introduc-
tion of diesel fuel with the lowest feasible sulfur level 
and would result in significant fuel economy benefits 
for the United States. 
(6) It is in the national interest that American 
manufacturing and American workers are well posi-
tioned to meet the rising consumer demand for ad-
vanced technology vehicles. 
(7) In subpart I of part 80, title 40, Code of 
Federal Regulations, the Environmental Protection 
Agency requires that, beginning June 1, 2006, 
motor vehicle diesel fuel may not contain more than 
15 parts per million of sulfur, subject to certain lim-
ited exceptions ending on December 1, 2010.
for export outside the United States, and identified for 
export by a transfer document as required under regula-
tions of the Administrator. 
(c) STANDARDS.—Except as otherwise provided in 
this title, all motor vehicle diesel fuel is subject to the fol-
lowing per gallon standards: 
(1) SULFUR
CONTENT.—A sulfur content as 
low as feasible, as determined by the Administrator 
taking into consideration costs, but not higher than 
10 ppm. Not less than every 5 years, the Adminis-
trator shall review and, as appropriate, revise the de-
termination made under this paragraph. 
(2) CETANE
NUMBER.—A minimum cetane 
number of 55. 
(3) AROMATIC
CONTENT.—A maximum aro-
matic content of 15 volume percent. 
(4) LUBRICITY LEVEL.—A maximum high-fre-
quency reciprocating rig wear scar diameter of 400 
microns.
(d) REGULATIONS.—Not later than January 1, 2006, 
the Administrator shall promulgate regulations to imple-
ment this title. Such regulations shall—
(1) require measures to minimize the extent of 
sulfur contamination in the motor vehicle diesel fuel 
distribution system;
(2) ensure that motor vehicle diesel fuel sold as 
clean diesel fuel at retail outlets or wholesale pur-
chaser-consumer facilities does not exceed the per 
gallon standards set forth in subsection (c); and 
(3) evaluate and, as necessary, promulgate re-
quirements to ensure the compatibility of motor oil 
intended for use in motor vehicle engines consistent 
with the purposes and requirements of this Act. 
(e) SAVINGS.—Nothing in this title shall be construed 
to relieve any person of any emission control requirement 
or obligation under the Clean Air Act. 
SEC. 103. WAIVERS; EXEMPTION. 
(a) WAIVER ON PETITION OF STATE.—
(1) IN GENERAL.—On petition by 1 or more 
States, the Administrator, in consultation with the 
Secretary, may, in whole or in part, waive the re-
quirements of section 102 relating to clean diesel 
fuel by reducing the amount of clean diesel fuel re-
quired under such section, if the Administrator de-
termines, after public notice and opportunity for 
comment, that implementation of such requirements, 
without an appropriate waiver, would severely harm 
the economy of a State or region due to inadequate 
supply or distribution capacity sufficient to meet 
such requirements.
(2) DURATION; RENEWAL.—A waiver under 
this subsection shall terminate after 180 days and 
may be renewed by the Administrator for not more 
than 1 additional period of 180 days after consulta-
tion with the Secretary. 
(3) EXPIRATION
OF
AUTHORITY.—No waiver 
may be granted under this subsection after Decem-
ber 31, 2010. 
(b) ECONOMIC HARDSHIP EXEMPTION.—
(1) EXEMPTION.—A small business refiner may 
petition the Administrator for an exemption from 
the requirements of section 102 for the reason of 
disproportionate economic hardship. If the Adminis-
trator fails to act on such a petition within 120 days 
after receipt of the petition, the petition shall be 
deemed granted. 
(2) DEFINITIONS.—For purposes of this sub-
section: 
(A) The term ‘‘disproportionate economic 
hardship’’ means economic impact resulting in 
substantial economic losses that threaten the vi-
ability of the entity in question, as determined 
by the Administrator in consultation with the 
Secretary.
(B) The term ‘‘small business refiner’’ 
means, with respect to any calendar year, a re-
finer of crude oil with respect to which not 
more than 1,500 persons are engaged in the re-
finery operations of the business on any day 
during such calendar year and whose average 
daily domestic refinery run for such calendar 
year did not exceed 205,000 barrels. 
SEC. 104. MISFUELING. 
(a) PROHIBITION.—After December 31, 2010, no 
person shall knowingly introduce, or cause or allow the 
introduction of, fuel other than clean diesel fuel into any 
motor vehicle that is designed to operate with diesel fuel. 
(b) PENALTY.—Any person that violates this section 
shall be subject to the same penalties applicable to a per-
son that violates section 211(g) of the Clean Air Act (42 
U.S.C. 7545(g)). 
SEC. 105. PENALTIES AND INJUNCTIONS. 
(a) CIVIL PENALTIES.—Subject to penalties applica-
ble to misfueling under section 104, any person who vio-
lates any provision of this title or the regulations pre-
scribed under this title or who fails to furnish any infor-
mation or conduct any tests required by the Administrator 
under regulations under this title shall be liable to the 
United States for a civil penalty of not more than the sum
of $25,000 for every day of such violation and the amount 
of economic benefit or savings resulting from the violation. 
(b) INJUNCTIVE AUTHORITY.—The district courts of 
the United States shall have jurisdiction to restrain viola-
tions of this title and of the regulations prescribed under 
this title, to award other appropriate relief, and to compel 
the furnishing of information and the conduct of tests re-
quired by the Administrator under regulations under this 
title. Actions to restrain such violations and compel such 
actions shall be brought by and in the name of the United 
States. In any such action, subpoenas for witnesses who 
are required to attend a district court in any district may 
run into any other district. 
TITLE II—INCENTIVES TO EN-
COURAGE 
CLEAN 
DIESEL 
MOTOR VEHICLES 
SEC. 201. DETERMINATION OF CREDIT AMOUNTS FOR 
CLEAN DIESEL MOTOR VEHICLE CREDIT AND 
LIFETIME FUEL SAVINGS CREDIT. 
(a) IN GENERAL.—Not later than 120 days after the 
date of the enactment of this Act, the Secretary of Energy 
shall determine credit amounts for the clean diesel motor 
vehicle credit under section 30B, and the lifetime fuel sav-
ings credit under section 30C, of the Internal Revenue 
Code of 1986 in amounts which the Secretary determines
will provide appropriate incentives to encourage the wide-
spread consumer acceptance of clean diesel motor vehicles. 
In making determinations under the preceding sentence, 
the Secretary—
(1) may not increase or decrease the credit 
amount specified for a category in the table in sub-
section (b) by more than $500; 
(2) may not increase the maximum fuel econ-
omy for a category above the maximum fuel econ-
omy specified for that category in the table in sub-
section (b);
(3) may not increase or decrease the lifetime 
fuel savings amount specified for a category in the 
table in subsection (c) by more than $500; and 
(4) may not increase the number of gallons for 
the category of lifetime fuel savings in the table in 
subsection (c). 
(b) ALTERNATIVE CREDIT AMOUNT FOR CLEAN 
DIESEL MOTOR VEHICLE CREDIT.—In the case that the 
Secretary of Energy does not meet the 120-day period 
specified in subsection (a), the credit amounts for the 
clean diesel motor vehicle credit under section 30B of the 
Internal Revenue Code of 1986 shall be determined in ac-
cordance with the following table:
Category 
Fuel economy based on
percentage of 2002 model year
city fuel economy 
Credit amount 
At least 
but less than 
1 ....................
125% 
150% 
$1,500
2 ....................
150% 
175% 
$2,000
3 ....................
175% 
200% 
$2,500
4 ....................
200% 
225% 
$3,000
(c) ALTERNATIVE CREDIT AMOUNT FOR LIFETIME 
FUEL SAVINGS CREDIT.—In the case that the Secretary 
of Energy does not meet the 120-day period specified in 
subsection (a), the credit amounts for the lifetime fuel sav-
ings credit under section 30C of the Internal Revenue 
Code of 1986 shall be determined in accordance with the 
following table:
Lifetime Fuel 
Credit 
Savings (gallons): 
Amount:
1,200 ..........................
$1,500
1,800 ..........................
$2,000
2,400 ..........................
$2,500
3,000 ..........................
$3,000.
(d) OPTION TO USE LIKE VEHICLE.—At the option 
of the vehicle manufacturer, the increase for fuel economy 
and lifetime fuel savings may be calculated by comparing 
the new clean diesel motor vehicle to a like vehicle. 
(e) DEFINITIONS.—For purposes of this section: 
(1) CLEAN DIESEL MOTOR VEHICLE.—The term 
‘‘clean diesel motor vehicle’’ means a motor vehicle 
with an internal combustion engine that—
(A) is designed to operate primarily using 
more air than is necessary for complete com-
bustion of the fuel; 
(B) incorporates direct injection; 
(C) achieves at least 125 percent of the 
2002 model year city fuel economy; and 
(D) for 2004 and later model vehicles, has 
received a certificate that such vehicle meets or 
exceeds the Bin 5, Tier 2 emission levels (for 
passenger vehicles) or Bin 8, Tier 2 emission 
levels (for light trucks) established in regula-
tions prescribed by the Administrator under 
section 202(i) of the Clean Air Act for that 
make and model year vehicle. 
(2) LIFETIME
FUEL
SAVINGS.—The lifetime 
fuel savings shall be calculated by dividing 120,000 
by the difference between the 2002 model year city 
fuel economy for the vehicle inertia weight class and 
the city fuel economy for the new clean diesel motor 
vehicle. 
(3) LIKE VEHICLE.—The term ‘‘like vehicle’’ 
for a clean diesel motor vehicle derived from a con-
ventional production vehicle produced in the same 
model year means a model that is equivalent in the 
following areas:
(A) Body style (2-door or 4-door). 
(B) Transmission (automatic or manual). 
(C) Acceleration performance (± 0.05 sec-
onds). 
(D) Drivetrain (2-wheel drive or 4-wheel 
drive). 
(E) Certification by the Administrator. 
(4) 2002 MODEL YEAR CITY FUEL ECONOMY.—
The 2002 model year city fuel economy with respect 
to a vehicle shall be determined in accordance with 
the following tables: 
(A) In the case of a passenger automobile:
If vehicle inertia 
The 2002 model year 
weight class is: 
city fuel economy is:
1,500 or 1,750 lbs .................................................
45.2 mpg
2,000 lbs ................................................................
39.6 mpg
2,250 lbs ................................................................
35.2 mpg
2,500 lbs ................................................................
31.7 mpg
2,750 lbs ................................................................
28.8 mpg
3,000 lbs ................................................................
26.4 mpg
3,500 lbs ................................................................
22.6 mpg
4,000 lbs ................................................................
19.8 mpg
4,500 lbs ................................................................
17.6 mpg
5,000 lbs ................................................................
15.9 mpg
5,500 lbs ................................................................
14.4 mpg
6,000 lbs ................................................................
13.2 mpg
6,500 lbs ................................................................
12.2 mpg
7,000 or 8,500 lbs .................................................
11.3 mpg.
(B) In the case of a light truck:
If vehicle inertia 
The 2002 model year 
weight class is: 
city fuel economy is:
1,500 or 1,750 lbs .................................................
39.4 mpg
2,000 lbs ................................................................
35.2 mpg
2,250 lbs ................................................................
31.8 mpg
2,500 lbs ................................................................
29.0 mpg
2,750 lbs ................................................................
26.8 mpg
3,000 lbs ................................................................
24.9 mpg
3,500 lbs ................................................................
21.8 mpg
If vehicle inertia 
The 2002 model year 
weight class is: 
city fuel economy is:
4,000 lbs ................................................................
19.4 mpg
4,500 lbs ................................................................
17.6 mpg
5,000 lbs ................................................................
16.1 mpg
5,500 lbs ................................................................
14.8 mpg
6,000 lbs ................................................................
13.7 mpg
6,500 lbs ................................................................
12.8 mpg
7,000 or 8,500 lbs .................................................
12.1 mpg.
(5) VEHICLE
INERTIA
WEIGHT
CLASS.—The 
term ‘‘vehicle inertia weight class’’ has the same 
meaning as when defined in regulations prescribed 
by the Administrator for purposes of the administra-
tion of title II of the Clean Air Act (42 U.S.C. 7521 
et seq.). 
(6) MOTOR VEHICLE.—The term ‘‘motor vehi-
cle’’ means any vehicle which is manufactured pri-
marily for use on public streets, roads, and highways 
(not including a vehicle operated exclusively on a rail 
or rails) and which has at least 4 wheels. 
(7) OTHER TERMS.—The terms ‘‘automobile’’, 
‘‘passenger automobile’’, ‘‘light truck’’, and ‘‘manu-
facturer’’ have the meanings given such terms in 
regulations prescribed by the Administrator for pur-
poses of the administration of title II of the Clean 
Air Act (42 U.S.C. 7521 et seq.). 
SEC. 202. CLEAN DIESEL MOTOR VEHICLE CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to foreign tax credit, etc.) is amended by 
adding at the end the following: 
‘‘SEC. 30B. CLEAN DIESEL MOTOR VEHICLE CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the clean diesel 
motor vehicle credit determined under subsection (b). 
‘‘(b) CLEAN DIESEL MOTOR VEHICLE CREDIT.—For 
purposes of subsection (a), the clean diesel motor vehicle 
credit is the credit amount determined under section 
201(b) of the Clean Diesel Act of 2003 with respect to 
a new qualified clean diesel motor vehicle placed in service 
by the taxpayer during the taxable year.
‘‘(c) CLEAN DIESEL MOTOR VEHICLE.—The term 
‘clean diesel motor vehicle’ has the meaning given to such 
term by section 201(e)(1) of the Clean Diesel Act of 2003. 
‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.—The 
credit allowed under subsection (a) for the taxable year 
shall not exceed the excess of—
‘‘(1) the sum of the regular tax liability (as de-
fined in section 26(b)) plus the tax imposed by sec-
tion 55, over 
‘‘(2) the sum of the credits allowable under sub-
part A and sections 27, 29, and 30A for the taxable 
year.
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion—
‘‘(1) REDUCTION IN BASIS.—For purposes of 
this subtitle, the basis of any property for which a 
credit is allowable under subsection (a) shall be re-
duced by the amount of such credit so allowed. 
‘‘(2) PROPERTY USED BY TAX-EXEMPT ENTI-
TIES.—In the case of a credit amount which is al-
lowable with respect to a motor vehicle which is ac-
quired by an entity exempt from tax under this 
chapter, the person which sells or leases such vehicle 
to the entity shall be treated as the taxpayer with 
respect to the vehicle for purposes of this section 
and the credit shall be allowed to such person, but 
only if the person clearly discloses to the entity in 
any sale or lease document the specific amount of 
any credit otherwise allowable to the entity under 
this section. 
‘‘(3) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit (including recapture in the case of a 
lease period of less than the economic life of a vehi-
cle).