Title: Community Health and Clean Transit Act of 2018
Policy area: Transportation and Public Works

Summary:
Community Health and Clean Transit Act of 2018
This bill authorizes the Department of Transportation to make direct loans to eligible entities (i.e., grant recipients for buses and bus facilities or state and local governmental entities that operate fixed route bus service) for the costs of acquiring electric buses (zero emission vehicles) and for technical assistance in connection with such acquisition and related infrastructure.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3720 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3720

 To authorize the Secretary of Transportation to provide loans for the 
       acquisition of electric buses and related infrastructure.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 6, 2018

Mr. Merkley (for himself, Ms. Smith, Ms. Cortez Masto, Mr. Sanders, Mr. 
 Booker, and Ms. Harris) introduced the following bill; which was read 
     twice and referred to the Committee on Commerce, Science, and 
                             Transportation

_______________________________________________________________________

                                 A BILL


 
 To authorize the Secretary of Transportation to provide loans for the 
       acquisition of electric buses and related infrastructure.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Health and Clean Transit 
Act of 2018''.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the term ``covered loan'' means a direct loan made by 
        the Secretary under section 4;
            (2) the term ``electric bus'' means a bus that is a zero 
        emission vehicle (as defined in section 5339(c)(1) of title 49, 
        United States Code) that is fully battery-powered;
            (3) the term ``eligible entity'' means an eligible 
        recipient, as described in section 5339(a)(4) of title 49, 
        United States Code;
            (4) the term ``eligible project'' has the meaning given the 
        term in section 5339(c)(1) of title 49, United States Code, 
        except that that definition shall be applied by substituting 
        ``electric buses'' for ``low or no emission vehicles'';
            (5) the term ``eligible project cost''--
                    (A) means the cost of an eligible project; and
                    (B) includes (and in the case of an eligible 
                project described in clause (i), (ii), or (iii) of 
                section 5339(c)(1)(B), means only)--
                            (i) the incremental cost of acquiring an 
                        electric bus necessary to meet the needs of the 
                        eligible entity, as compared to the average 
                        cost of a diesel bus; and
                            (ii) the cost of technical assistance for 
                        the acquisition, financing, and operation of an 
                        electric bus and related infrastructure, 
                        including technical assistance for route 
                        electrification, technology selection, and 
                        vehicle-to-grid interfacing;
            (6) the term ``Secretary'', except as otherwise provided in 
        this Act, means the Secretary of Transportation; and
            (7) the term ``subsidy amount'' means the amount of budget 
        authority sufficient to cover the estimated long-term cost to 
        the Federal Government of a covered loan--
                    (A) calculated on a net present value basis; and
                    (B) excluding administrative costs and any 
                incidental effects on governmental receipts or outlays 
                in accordance with the Federal Credit Reform Act of 
                1990 (2 U.S.C. 661 et seq.).

SEC. 3. PURPOSE.

    The purpose of this Act is to help entities that provide or finance 
public transportation to choose and be able to afford the best vehicles 
for their needs, and to achieve fuel and maintenance cost savings, by 
providing loans to eligible entities to acquire electric buses and 
related infrastructure.

SEC. 4. AUTHORIZATION TO PROVIDE ASSISTANCE.

    The Secretary may make a direct loan to an eligible entity for 
eligible project costs.

SEC. 5. APPLICATIONS.

    (a) In General.--An eligible entity desiring a covered loan shall 
submit to the Secretary an application that--
            (1) includes an implementation plan for use of the covered 
        loan;
            (2) estimates the amounts the eligible entity will save on 
        fuel and maintenance costs due to the covered loan; and
            (3) provides reasonable assurance that the eligible entity 
        will make all payments on the covered loan.
    (b) Link to Low or No Emission Bus and Bus Facilities Grant 
Applications.--The Secretary shall establish a procedure under which an 
eligible entity that submits an application under section 5339(c) of 
title 49, United States Code, for a grant relating to a low or no 
emission bus or bus facility may amend the application and be 
considered for a covered loan under this Act without having to submit a 
separate application under this section.
    (c) Guidance and Best Practices.--Not later than 1 year after the 
date of enactment of this Act, the Secretary of Energy, in consultation 
with the Secretary of Transportation, shall develop and publish on the 
website of the Department of Energy guidance on best practices for 
transit districts to enter into innovative relationships with public 
utilities and bus manufacturers to incorporate into operations and 
financing of electric buses and infrastructure--
            (1) secondary use of the battery;
            (2) vehicle-to-grid integration;
            (3) charging infrastructure cost shares; or
            (4) battery performance guarantees.

SEC. 6. TERMS AND CONDITIONS.

    (a) In General.--A covered loan--
            (1) shall not accrue interest; and
            (2) shall be on such terms and conditions and contain such 
        covenants, representations, warranties, and requirements 
        (including requirements for audits) as the Secretary may 
        prescribe.
    (b) Term of Loan.--The Secretary may provide a covered loan only if 
the final maturity date of the covered loan is not later than the date 
on which the electric bus acquired using the covered loan is expected 
to exceed its useful life, based on the average life expectancy of the 
electric bus.
    (c) Buy America.--Section 5323(j) of title 49, United States Code, 
shall apply with respect to a project funded using a covered loan in 
the same manner as to a project funded using amounts appropriated to 
carry out chapter 53 of such title 49.
    (d) Non-Federal Share for Low-No Grants.--The proceeds of a covered 
loan may be used for any non-Federal share of project costs required 
under section 5339(c) of title 49, United States Code, if the covered 
loan is repayable from non-Federal funds.

SEC. 7. REPAYMENT.

    (a) Commencement.--Scheduled repayments of principal on a covered 
loan provided to an eligible entity shall commence not later than 180 
days after the date on which the eligible entity places in revenue 
service the electric bus and necessary infrastructure that were 
acquired using the covered loan.
    (b) Prepayment.--An eligible entity may make repayments on a 
covered loan in advance of the scheduled repayment date with no 
penalty.
    (c) Delinquency.--Notwithstanding any other provision of law, if an 
eligible entity fails to make a scheduled repayment on a covered loan, 
the Secretary may withhold from the eligible entity an equivalent 
amount of any assistance that would otherwise be provided to the 
eligible entity under a formula grant program under chapter 53 of title 
49, United States Code.

SEC. 8. AVAILABILITY OF FUNDS.

    Subject to the availability of funds and except as otherwise 
provided in this Act, amounts provided by the Secretary under this Act 
shall be available until expended.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated $15,000,000 
for each of the first 5 fiscal years beginning after the date of 
enactment of this Act for the subsidy amount of covered loans.
    (b) Administrative Costs.--There is authorized to be appropriated 
such sums as are necessary for the administrative cost of providing 
covered loans.
                                 <all>