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(B) involve the use of Environmental Pro-
tection Agency or California Air Resources
Board verified emissions control retrofit tech-
nology on diesel trucks that operate solely on
ultra-low sulfur diesel fuel after September
2006.
(d) CONDITIONS OF GRANT.—A grant shall be pro-
vided under this section on the conditions that—
(1) trucks which are replacing scrapped trucks
and on which retrofit emissions-control technology
are to be demonstrated—
(A) will operate on ultra-low sulfur diesel
fuel where such fuel is reasonably available or
required for sale by State or local law or regula-
tion;
(B) were manufactured in model year 1998
and before; and
(C) will be used for the transportation of
cargo goods especially in port areas or used in
goods movement and major hauling operations;
(2) grant funds will be used for the purchase of
emission control retrofit technology, including State
taxes and contract fees; and
(3) grant recipients will provide at least 5 per-
cent of the total cost of the retrofit, including the
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purchase of emission control retrofit technology and
all necessary labor for installation of the retrofit,
from any source other than this section.
(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—
(1) make grants pursuant to this section;
(2) verify that trucks powered by ultra-low sul-
fur diesel fuel on which retrofit emissions-control
technology are to be demonstrated will operate on
diesel fuel containing not more than 15 parts per
million of sulfur after September 2006; and
(3) verify that grants are administered in ac-
cordance 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 expended
the following sums:
(1) $20,000,000 for fiscal year 2005.
(2) $35,000,000 for fiscal year 2006.
(3) $45,000,000 for fiscal year 2007.
(4) Such sums as are necessary for each of fis-
cal years 2008 and 2009.
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SEC. 744. FUEL CELL SCHOOL BUSES.
(a) ESTABLISHMENT.—The Secretary shall establish
a program for entering into cooperative agreements—
(1) with private sector fuel cell bus developers
for the development of fuel cell-powered school
buses; and
(2) subsequently, with not less than 2 units of
local government using natural gas-powered school
buses and such private sector fuel cell bus developers
to demonstrate the use of fuel cell-powered school
buses.
(b) COST SHARING.—The non-Federal contribution
for activities funded under this section shall be not less
than—
(1) 20 percent for fuel infrastructure develop-
ment activities; and
(2) 50 percent for demonstration activities and
for development activities not described in paragraph
(1).
(c) REPORTS TO CONGRESS.—Not later than 3 years
after the date of enactment of this Act, the Secretary shall
transmit to Congress a report that—
(1) evaluates the process of converting natural
gas infrastructure to accommodate fuel cell-powered
school buses; and
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(2) assesses the results of the development and
demonstration program under this section.
(d) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary to carry
out this section $25,000,000 for the period of fiscal years
2005 through 2007.
Subtitle D—Miscellaneous
SEC. 751. RAILROAD EFFICIENCY.
(a) ESTABLISHMENT.—The Secretary of Energy
shall, in cooperation with the Secretary of Transportation
and the Administrator of the Environmental Protection
Agency, establish a cost-shared, public-private research
partnership involving the Federal Government, railroad
carriers, locomotive manufacturers and equipment sup-
pliers, and the Association of American Railroads, to de-
velop and demonstrate railroad locomotive technologies
that increase fuel economy, reduce emissions, and lower
costs of operation.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section—
(1) $25,000,000 for fiscal year 2006;
(2) $35,000,000 for fiscal year 2007; and
(3) $50,000,000 for fiscal year 2008.
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SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND
CREDITING.
(a) IN GENERAL.—Not later than 180 days after the
date of enactment of this Act, the Administrator of the
Environmental Protection Agency shall submit to Con-
gress a report on the experience of the Administrator with
the trading of mobile source emission reduction credits for
use by owners and operators of stationary source emission
sources to meet emission offset requirements within a non-
attainment area.
(b) CONTENTS.—The report shall describe—
(1) projects approved by the Administrator that
include the trading of mobile source emission reduc-
tion credits for use by stationary sources in com-
plying with offset requirements, including a descrip-
tion of—
(A) project and stationary sources location;
(B) volumes of emissions offset and trad-
ed;
(C) the sources of mobile emission reduc-
tion credits; and
(D) if available, the cost of the credits;
(2) the significant issues identified by the Ad-
ministrator in consideration and approval of trading
in the projects;
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(3) the requirements for monitoring and assess-
ing the air quality benefits of any approved project;
(4) the statutory authority on which the Admin-
istrator has based approval of the projects;
(5) an evaluation of how the resolution of issues
in approved projects could be used in other projects;
and
(6) any other issues that the Administrator con-
siders relevant to the trading and generation of mo-
bile source emission reduction credits for use by sta-
tionary sources or for other purposes.
SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS.
(a) IN GENERAL.—Not later than 60 days after the
date of enactment of this Act, the Administrator of the
Federal Aviation Administration and the Administrator of
the Environmental Protection Agency shall jointly initiate
a study to identify—
(1) the impact of aircraft emissions on air qual-
ity in nonattainment areas;
(2) ways to promote fuel conservation measures
for aviation to enhance fuel efficiency and reduce
emissions; and
(3) opportunities to reduce air traffic inefficien-
cies that increase fuel burn and emissions.