Energy Policy Act Amendments of 1997

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy Policy Act 
Amendments of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                  TITLE I--ALTERNATIVE FUELS--GENERAL

Sec. 101. Definitions.
Sec. 102. Amendments to the Energy Policy and Conservation Act.
Sec. 103. Compliance with acquisition requirements.
Sec. 104. Fuel and vehicle neutrality.
           TITLE II--ALTERNATIVE FUELS--NON-FEDERAL PROGRAMS

Sec. 201. State and local incentives programs.
Sec. 202. Alternative fuel bus program.
Sec. 203. Alternative fuel use in nonroad vehicles and engines.
   TITLE III--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE 
             FUELS, AND ALTERNATIVE FUELED PRIVATE VEHICLES

Sec. 301. Modification of goals; additional rulemaking authority.
Sec. 302. Credits.
Sec. 303. Secretary's recommendation to Congress.

                  TITLE I--ALTERNATIVE FUELS--GENERAL

SEC. 101. DEFINITIONS.

    Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is 
amended--
            (1) in paragraph (2), by inserting ``biodiesel; biodiesel 
        mixtures containing 20 percent or more by volume of biodiesel 
        with other fuels'' after ``biological materials;'';
            (2) by redesignating paragraphs (11) through (14) as 
        paragraphs (13), (15), (16), and (17), respectively;
            (3) by inserting after paragraph (10) the following new 
        paragraphs:
            ``(11) the term `heavy duty marine vessel' means a marine 
        vessel of greater than 8,500 pounds gross weight rating;
            ``(12) the term `heavy duty motor vehicle' means a motor 
        vehicle of greater than 8,500 pounds gross vehicle weight 
        rating;'';
            (4) by inserting after paragraph (13) (as so redesignated 
        by paragraph (2) of this section) the following new paragraph:
            ``(14) the term `marine vessel' means a motorized 
        watercraft or other artificial contrivance used as a means of 
        transportation primarily on the navigable waters of the United 
        States;''; and
            (5) in paragraph (15) (as so redesignated by paragraph (2) 
        of this section), by inserting ``biodiesel, biodiesel mixtures 
        containing 20 percent or more by volume of biodiesel with other 
        fuels,'' after ``biological materials,''.

SEC. 102. AMENDMENTS TO THE ENERGY POLICY AND CONSERVATION ACT.

    Section 400AA of the Energy Policy and Conservation Act (42 U.S.C. 
6374) is amended--
            (1) in the second sentence of subsection (a)(3)(B), by 
        striking ``if, after conversion,'' and inserting in lieu 
        thereof ``, and existing fleet vehicles may be converted to use 
        alternative fuels and considered an acquisition, if, after 
        either such type of conversion,''; and
            (2) in subsection (g)(2), by inserting ``biodiesel; 
        biodiesel mixtures containing 20 percent or more by volume of 
        biodiesel with other fuels;'' after ``biological materials;''.

SEC. 103. COMPLIANCE WITH ACQUISITION REQUIREMENTS.

    Title III of the Energy Policy Act of 1992 (42 U.S.C. 13211 et 
seq.) is amended by adding at the end the following new section:

``SEC. 312. COMPLIANCE WITH ACQUISITION REQUIREMENTS.

    ``(a) Conversion.--The conversion of a vehicle owned as part of a 
fleet into an alternative fueled vehicle shall be considered as an 
acquisition of an alternative fueled vehicle for purposes of compliance 
with a requirement to acquire alternative fueled vehicles under this 
title or title IV or V, if after the conversion the original equipment 
manufacturer's warranty continues to apply to the vehicle, pursuant to 
an agreement between the original equipment manufacturer and the person 
performing the conversion.
    ``(b) Heavy Duty Vehicles.--The acquisition of 1 heavy duty vehicle 
that is an alternative fueled vehicle, or the acquisition or conversion 
of 1 heavy duty marine vessel described in subsection (c), shall be 
considered as the acquisition of 2 light duty alternative fueled 
vehicles for purposes of compliance with a requirement to acquire 
alternative fueled vehicles under this title or title IV or V.
    ``(c) Marine Vessels.--The--
            ``(1) acquisition of a marine vessel that operates solely 
        on alternative fuels or that is capable of operating on 
        alternative fuels and is capable of operating on gasoline or 
        diesel fuel; or
            ``(2) conversion of a marine vessel already owned into a 
        marine vessel described in paragraph (1), if after conversion 
        the original equipment manufacturer's warranty continues to 
        apply to the marine vessel, pursuant to an agreement between 
        the original equipment manufacturer and the person performing 
        the conversion,
shall be considered as the acquisition of an alternative fueled vehicle 
for purposes of compliance with a requirement to acquire alternative 
fueled vehicles under this title or title IV or V.
    ``(d) Alternative Fuel Use.--
            ``(1) In general.--The acquisition by a fleet or covered 
        person of a volume of alternative fuel equal to the total 
        estimated fuel requirements for 1 year of a dual fueled 
        vehicle--
                    ``(A) that is part of that fleet or owned by that 
                covered person; and
                    ``(B) with respect to which no credit has been 
                claimed under this paragraph for the same year,
        shall be credited by the Secretary as the acquisition of 1 
        alternative fueled vehicle for purposes of compliance with a 
        requirement to acquire alternative fueled vehicles under this 
        title or title IV or V.
            ``(2) Accounting.--In allowing a credit under paragraph 
        (1), the Secretary may request a Federal agency or require a 
        covered person to provide an accounting of the required 
        acquisition of alternative fuel.
            ``(3) Guidelines.--The Secretary shall amend the guidelines 
        required under section 308 to enable Federal agencies to better 
        comply with paragraph (1) of this subsection.''.

SEC. 104. FUEL AND VEHICLE NEUTRALITY.

    Title III of the Energy Policy Act of 1992 (42 U.S.C. 13211 et 
seq.) is further amended by adding at the end the following new 
section:

``SEC. 313. FUEL AND VEHICLE NEUTRALITY.

    ``The Secretary shall carry out this title and titles IV and V in a 
manner that is, to the maximum extent practicable, neutral with respect 
to the type of alternative fuel and alternative fueled vehicle used.''.

                         TITLE II--ALTERNATIVE

                      FUELS--NON-FEDERAL PROGRAMS

SEC. 201. STATE AND LOCAL INCENTIVES PROGRAMS.

    (a) Establishment of Program.--Section 409(a) of the Energy Policy 
Act of 1992 (42 U.S.C. 13235(a)) is amended--
            (1) in paragraph (2)(A), by striking ``alternative fueled 
        vehicles'' and inserting in lieu thereof ``light duty and heavy 
        duty alternative fueled vehicles and increasing the use of 
        alternative fuels''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (B), by inserting ``converted 
                or acquired'' after ``introduction of'';
                    (B) in subparagraph (E), by inserting ``, along 
                with incentives toward use of, and reporting 
                requirements relating to, such fuels'' after ``fueled 
                vehicles''; and
                    (C) in subparagraph (G)--
                            (i) by redesignating clauses (i) through 
                        (iii) as clauses (ii) through (iv), 
                        respectively; and
                            (ii) by inserting before clause (ii), as so 
                        redesignated, the following new clause:
                    ``(i) alternative fuels;''.
    (b) Federal Assistance to States.--Section 409(b) of the Energy 
Policy Act of 1992 (42 U.S.C. 13235(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting in lieu thereof ``; and''; and
                    (C) by adding at the end the following:
            ``(D) grants of Federal financial assistance for the 
        incremental purchase cost of alternative fuels.'';
            (2) in paragraph (2)(B), by inserting ``and the volume of 
        alternative fuel likely to be consumed'' after ``be 
        introduced''; and
            (3) in paragraph (3)--
                    (A) by inserting ``alternative fuels and'' after 
                ``in procuring''; and
                    (B) by inserting ``fuels and'' after ``of such''.
    (c) General Provisions.--Section 409(c)(2)(A) of the Energy Policy 
Act of 1992 (42 U.S.C. 13235(c)(2)(A)) is amended by inserting ``and 
volume of alternative fuel consumed'' after ``alternative fueled 
vehicles in use''.

SEC. 202. ALTERNATIVE FUEL BUS PROGRAM.

    Section 410(c) of the Energy Policy Act of 1992 (42 U.S.C. 
13236(c)) is amended in the second sentence by striking ``and the 
conversion of school buses to dedicated vehicles'' and inserting ``the 
incremental cost of alternative fuels used in dual fueled school buses, 
and the conversion of school buses to alternative fueled vehicles''.

SEC. 203. ALTERNATIVE FUEL USE IN NONROAD VEHICLES AND ENGINES.

    Section 412 of the Energy Policy Act of 1992 (42 U.S.C. 13238) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by striking ``a 
                        study'' and inserting in lieu thereof 
                        ``studies''; and
                            (ii) in the second sentence--
                                    (I) by striking ``study'' and 
                                inserting in lieu thereof ``studies''; 
                                and
                                    (II) by striking ``2 years'' and 
                                inserting in lieu thereof ``6 and 10 
                                years'';
                    (B) in paragraph (2)--
                            (i) by striking ``study'' each place it 
                        appears and inserting in lieu thereof 
                        ``studies''; and
                            (ii) in the second sentence, by inserting 
                        ``and engines'' after ``such vehicles''; and
                    (C) in paragraph (3)--
                            (i) by striking ``report'' and inserting in 
                        lieu thereof ``reports''; and
                            (ii) by striking ``may'' and inserting in 
                        lieu thereof ``shall'';
            (2) in subsection (b), by inserting ``marine vessels,'' 
        after ``vehicles or engines used for marine purposes,''; and
            (3) in subsection (c), by striking ``study'' and inserting 
        in lieu thereof ``studies''.

   TITLE III--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE 
             FUELS, AND ALTERNATIVE FUELED PRIVATE VEHICLES

SEC. 301. MODIFICATION OF GOALS; ADDITIONAL RULEMAKING AUTHORITY.

    Section 504(a) of the Energy Policy Act of 1992 (42 U.S.C. 
13254(a)) is amended by striking ``Within 3 years after the date of 
enactment of this Act, and periodically thereafter'' and inserting in 
lieu thereof ``Before October 1, 1998, and before October 1, 2003''.

SEC. 302. CREDITS.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is 
amended by adding at the end the following new subsection:
    ``(e) Alternative Compliance Credits.--Any action which is 
considered or credited as an acquisition of an alternative fueled 
vehicle under section 312 shall be eligible for a credit under this 
section as if it were such an acquisition.''.

SEC. 303. SECRETARY'S RECOMMENDATION TO CONGRESS.

    Section 509(a) of the Energy Policy Act of 1992 (42 U.S.C. 
13259(a)) is amended--
            (1) in paragraph (2)--
                    (A) by inserting ``, including through conversion 
                and warranty,'' after ``public alternative fueled 
                vehicles''; and
                    (B) by striking ``and'' at the end;
            (2) in paragraph (3) by striking the comma at the end and 
        inserting in lieu thereof ``; and''; and
            (3) by adding after paragraph (3) the following new 
        paragraph:
            ``(4) exempting replacement fuels from taxes levied on 
        nonreplacement fuels,''.

Summary: TABLE OF CONTENTS: 
     Title I:  Alternative Fuels--General 
     Title II:  Alternatives Fuels--Non-Federal Programs 
     Title III:  Availability and Use of Replacement Fuels, 
          Alternative Fuels, and Alternative Private Vehicles 
Energy Policy Act Amendments of 1997 - 
Title I:  Alternative Fuels--General
 - Amends the Energy Policy Act of 1992 to:  (1) include biodiesel fuels as alternative fuels; (2) modify definitions relating to heavy duty motor vehicles and marine vessels; and (3) include among replacement fuels those fuels derived from biodiesel. 
(Sec. 102) Amends the Energy Policy and Conservation Act to provide that, if alternative-fueled light duty Federal vehicles are not acquired from original equipment manufacturers, existing fleet vehicles may be converted to alternative fuel-use if the original manufacturer's warranty continues to apply to such vehicles. 
(Sec. 103) Amends the Energy Policy Act of 1992 to prescribe compliance guidelines governing the conversion of Federal fleet vehicles into alternative-fueled vehicles. 
Title II:  Alternative Fuels -- Non-Federal Programs
 - Requires State and local incentives programs to include the goal of introducing substantial numbers of light and heavy duty alternative fuels vehicles and increasing the use of alternative fuels.  Conditions State eligibility for Federal assistance upon inclusion in each State plan of an examination of the introduction of converted or acquired light and heavy duty alternative-fueled vehicles in State-owned or operated motor vehicle fleets. 
(Sec. 201) Authorizes the Secretary of Energy (the Secretary) to provide, upon State request, Federal financial assistance grants for the incremental purchase cost of alternative fuels.  Directs the Secretary to report annually to the President and the Congress on the volume of alternative fuel likely to be consumed. 
(Sec. 202) Authorizes the Secretary of Transportation to provide financial assistance to States and political subdivisions for the incremental cost of alternative-fuels used in dual fueled school buses, and the conversions of such buses to alternative-fueled vehicles. 
(Sec. 203) Directs the Secretary to conduct studies regarding the use of alternative fuels in nonroad vehicles, including marine vessels. 
Title III:  Availability and Use of Replacement Fuels, Alternative Fuels, and Alternative Fueled Vehicles
 - Modifies the deadline for the Secretary to evaluate whether program goals have been achieved with respect to the replacement fuel supply and demand program. 
(Sec. 302) Modifies credit allocation guidelines governing alternative-fueled vehicle acquisitions to deem certain acquisitions (conversions of existing vehicles) as alternative compliance credits. 
(Sec. 303) Directs the Secretary to submit to the Congress recommendations for requirements or incentives for:  (1) suppliers of alternative-fueled vehicles to make such vehicles available to the public through conversion and warranty; and (2) exempting replacement fuels from taxes levied on nonreplacement fuels if the Secretary notifies the Congress that a fleet requirement program is not necessary.