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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:
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(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.
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(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
294
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
295
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.
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(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