[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 722 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 722

 To authorize programs and activities to improve energy use related to 
             transportation and infrastructure facilities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2005

 Mr. Oberstar (for himself, Mr. Cummings, Mr. Nadler, Mr. Michaud, Mr. 
  Larsen of Washington, Mr. Matheson, Mr. Capuano, Mr. Chandler, Ms. 
   Corrine Brown of Florida, Mr. Holden, Ms. Millender-McDonald, Mr. 
 Taylor of Mississippi, Mr. Blumenauer, Ms. Schwartz of Pennsylvania, 
   Mr. Honda, Ms. Berkley, Mr. Weiner, Ms. Norton, Mr. Higgins, Mr. 
Costello, Mr. Rahall, Mr. Baird, Mr. DeFazio, Mr. Salazar, Ms. Carson, 
Mr. Boswell, and Mr. Carnahan) introduced the following bill; which was 
referred to the Committee on Transportation and Infrastructure, and in 
 addition to the Committees on Science, Ways and Means, and Resources, 
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 authorize programs and activities to improve energy use related to 
             transportation and infrastructure facilities.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Securing 
Transportation Energy Efficiency for Tomorrow Act of 2005''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
           TITLE I--PUBLIC BUILDINGS AND ECONOMIC DEVELOPMENT

Sec. 101. Use of photovoltaic energy in public buildings.
Sec. 102. Capitol Complex.
                    TITLE II--SURFACE TRANSPORTATION

Sec. 201. Highway fuel conservation program.
Sec. 202. Fuel cell bus technology development and demonstration 
                            projects.
Sec. 203. Conserve By Bicycling program.
Sec. 204. Energy impacts of Federal-aid highway and transit projects.
Sec. 205. Railroad efficiency.
                          TITLE III--AVIATION

Sec. 301. Clean airport bus pilot program.
Sec. 302. Clean aircraft engines.
                       TITLE IV--WATER RESOURCES

Sec. 401. Marine efficiency.
Sec. 402. Improving hydropower capabilities.
Sec. 403. Encouragement of State prohibitions on off-shore drilling in 
                            the Great Lakes.
                        TITLE V--TAX PROVISIONS

Sec. 501. Extension of transportation fringe benefit to commuters who 
                            bicycle, carpool, or use car-sharing.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) As the Nation's largest energy consumer, the Federal 
        Government is in a unique position to promote energy 
        conservation and efficiency, particularly in the transportation 
        sector and in the operation of Federal buildings.
            (2) Each year for the past decade, energy use in the 
        transportation sector has increased by a rate of 1.6 percent.
            (3) In 2002, the transportation sector consumed a greater 
        share of the Nation's petroleum (67 percent) than it did in 
        1973 (50 percent).
            (4) The transportation sector is responsible for 27 percent 
        of all greenhouse gases emitted in the United States, with 
        transportation-related emissions of carbon dioxide increasing 
        by 21 percent between 1992 and 2002.
            (5) Transportation remains a primary source of emissions 
        for 3 of the 6 air pollutants regulated under the Clean Air 
        Act: carbon monoxide, nitrogen oxides, and volatile organic 
        compounds.
            (6) As the Federal Government's largest landlord, the 
        General Services Administration should lead in the promotion 
        and utilization of alternative and efficient energy sources.

           TITLE I--PUBLIC BUILDINGS AND ECONOMIC DEVELOPMENT

SEC. 101. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

    (a) In General.--Subchapter VI of chapter 31 of title 40, United 
States Code, is amended by adding at the end the following:
``Sec. 3177. Use of photovoltaic energy in public buildings
    ``(a) Photovoltaic Energy Commercialization Program.--
            ``(1) In general.--The Administrator of General Services 
        may establish a photovoltaic energy commercialization program 
        for the procurement and installation of photovoltaic solar 
        electric systems for electric production in new and existing 
        public buildings.
            ``(2) Purposes.--The purposes of the program shall be to 
        accomplish the following:
                    ``(A) To accelerate the growth of a commercially 
                viable photovoltaic industry to make this energy system 
                available to the general public as an option which can 
                reduce the national consumption of fossil fuel.
                    ``(B) To reduce the fossil fuel consumption and 
                costs of the Federal Government.
                    ``(C) To attain the goal of installing solar energy 
                systems in 20,000 Federal buildings by 2010, as 
                contained in the Federal Government's Million Solar 
                Roof Initiative of 1997.
                    ``(D) To stimulate the general use within the 
                Federal Government of life-cycle costing and innovative 
                procurement methods.
                    ``(E) To develop program performance data to 
                support policy decisions on future incentive programs 
                with respect to energy.
            ``(3) Acquisition of photovoltaic solar electric systems.--
                    ``(A) In general.--The program shall provide for 
                the acquisition of photovoltaic solar electric systems 
                and associated storage capability for use in public 
                buildings.
                    ``(B) Acquisition levels.--The acquisition of 
                photovoltaic electric systems shall be at a level 
                substantial enough to allow use of low-cost production 
                techniques with at least 150 megawatts (peak) 
                cumulative acquired during the 5 years of the program.
            ``(4) Administration.--The Administrator shall administer 
        the program and shall--
                    ``(A) prescribe such rules and regulations as may 
                be appropriate to monitor and assess the performance 
                and operation of photovoltaic solar electric systems 
                installed pursuant to this subsection;
                    ``(B) develop innovative procurement strategies for 
                the acquisition of such systems; and
                    ``(C) transmit to the Committee on Transportation 
                and Infrastructure of the House of Representatives and 
                to the Committee on Environment and Public Works of the 
                Senate an annual report on the results of the program.
    ``(b) Photovoltaic Systems Evaluation Program.--
            ``(1) In general.--Not later than 60 days after the date of 
        enactment of this section, the Administrator, in consultation 
        with the Secretary of Energy, shall establish a photovoltaic 
        solar energy systems evaluation program to evaluate such 
        photovoltaic solar energy systems as are required in public 
        buildings.
            ``(2) Program requirement.--In evaluating photovoltaic 
        solar energy systems under the program, the Administrator shall 
        ensure that such systems reflect the most advanced technology.
    ``(c) Authorization of Appropriations.--
            ``(1) Photovoltaic energy commercialization program.--There 
        is authorized to be appropriated to carry out subsection (a) 
        $50,000,000 for each of fiscal years 2006 through 2010. Such 
        sums shall remain available until expended.
            ``(2) Photovoltaic systems evaluation program.--There is 
        authorized to be appropriated to carry out subsection (b) 
        $10,000,000 for each of fiscal years 2006 through 2010. Such 
        sums shall remain available until expended.
            ``(3) Installation of photovoltaic system.--There is 
        authorized to be appropriated to the General Services 
        Administration to install a photovoltaic system, as set forth 
        in the Sun Wall Design Project, for the headquarters building 
        of the Department of Energy located at 1000 Independence 
        Avenue, Southwest, Washington, D.C., commonly known as the 
        Forrestal Building, $14,000,000 for fiscal year 2006. Such sums 
        shall remain available until expended.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by inserting after the item relating to section 3176 the following:

``3177. Use of photovoltaic energy in public buildings.''.

SEC. 102. CAPITOL COMPLEX.

    (a) Study on Energy Infrastructure.--The Architect of the Capitol, 
building on the Master Plan Study completed in July 2000, shall conduct 
a study to evaluate the energy infrastructure of the Capitol Complex to 
determine how the energy infrastructure could be augmented to become 
more energy efficient, using photovoltaic solar energy systems, 
district-heating, and other unconventional and renewable energy 
resources, in a way that would enable the Complex to have reliable 
utility service in the event of power fluctuations, shortages, or 
outages.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Architect of the Capitol shall transmit to Congress a 
report containing the results of the study conducted under subsection 
(a).
    (c) Authorization.--There are authorized to be appropriated to the 
Architect of the Capitol such sums as may be necessary to carry out 
this section. Such sums shall remain available until expended.

                    TITLE II--SURFACE TRANSPORTATION

SEC. 201. HIGHWAY FUEL CONSERVATION PROGRAM.

    (a) In General.--Subchapter I of chapter 1 of title 23, United 
States Code, is amended by adding at the end the following:
``Sec. 165. Energy conservation program
    ``(a) Establishment of Program.--The Secretary shall establish and 
carry out a program to provide grants to States and local governments 
for fuel conservation projects.
    ``(b) Eligible Projects.--Projects carried out under the program 
shall be designed to make operational improvements to reduce fuel 
consumption on Federal-aid highways and other roads. Such projects may 
include--
            ``(1) data collection and analysis for improving traffic 
        signal timing;
            ``(2) implementation of improved and coordinated traffic 
        signal timing (including capital costs of new systems, or 
        system upgrades);
            ``(3) planning and implementation of freeway management 
        systems; and
            ``(4) operational improvements with high reductions in 
        energy consumption.
    ``(c) Applications.--To be eligible to receive a grant under this 
section, a State or local government shall submit to the Secretary an 
application at such time, in such form, and in accordance with such 
requirements as the Secretary shall establish by regulation.
    ``(d) Federal Share.--The Federal share of the cost of a project 
carried out using amounts from a grant under this section shall be 50 
percent.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal years 2006 through 2010. Such sums shall remain available 
until expended.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by inserting after the item relating to section 164 the following:

``165. Energy conservation program.''.

SEC. 202. FUEL CELL BUS TECHNOLOGY DEVELOPMENT AND DEMONSTRATION 
              PROJECTS.

    Section 5308 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(g) Fuel Cell Bus Technology Development and Demonstration 
Projects.--
            ``(1) Authority to make grants.--The Secretary may make 
        grants under this subsection to not more than 10 designated 
        recipients for projects for the research, development, and 
        demonstration of fuel cell bus technology.
            ``(2) Applications.--Not later than January 1 of each year, 
        any designated recipient seeking to apply for a grant under 
        this subsection shall submit an application to the Secretary, 
        in such form and in accordance with such requirements as the 
        Secretary shall establish by regulation.
            ``(3) Preference.--In selecting grant recipients under this 
        subsection, the Secretary shall give preference to those 
        applicants who have an existing investment in fuel cell buses 
        and hydrogen fuel cell infrastructure.
            ``(4) Nonapplicability of requirements.--Except as 
        specifically provided in this subsection, the requirements for 
        grants made under this section shall not apply to grants made 
        under this subsection.
            ``(5) Federal share.--The amount of a grant made to a 
        designated recipient under this subsection for a project shall 
        not exceed 80 percent of the total cost of the project.
            ``(6) Availability of funds.--Any amount made available 
        under this subsection--
                    ``(A) shall remain available to a project for 1 
                year after the fiscal year for which the amount is made 
                available; and
                    ``(B) that remains unobligated at the end of the 
                period described in subparagraph (A), shall be added to 
                the amount made available under this subsection in the 
                following fiscal year.
            ``(7) Designated recipient defined.--The term `designated 
        recipient' has the same meaning as in subsection (a).
            ``(8) Funding.--
                    ``(A) From the trust fund.--There shall be 
                available from the Mass Transit Account of the Highway 
                Trust Fund to carry out this subsection--
                            ``(i) $20,000,000 for fiscal year 2006;
                            ``(ii) $30,000,000 for fiscal year 2007;
                            ``(iii) $40,000,000 for fiscal year 2008;
                            ``(iv) $50,000,000 for fiscal year 2009; 
                        and
                            ``(v) $60,000,000 for fiscal year 2010.
                    ``(B) From the general fund.--In addition to 
                amounts made available under subparagraph (A), there is 
                authorized to be appropriated to carry out this 
                subsection--
                            ``(i) $10,000,000 for fiscal year 2006;
                            ``(ii) $15,000,000 for fiscal year 2007;
                            ``(iii) $20,000,000 for fiscal year 2008;
                            ``(iv) $25,000,000 for fiscal year 2009; 
                        and
                            ``(v) $30,000,000 for fiscal year 2010.
                    ``(C) Contract authority.--
                            ``(i) Grants financed from the highway 
                        trust fund.--A grant approved by the Secretary 
                        that is financed with amounts made available 
                        under subparagraph (A) is a contractual 
                        obligation of the United States Government to 
                        pay the Government's share of the cost of the 
                        project.
                            ``(ii) Grants financed from general 
                        funds.--A grant approved by the Secretary that 
                        is financed with amounts made available under 
                        subparagraph (B) is a contractual obligation of 
                        the Government to pay the Government's share of 
                        the cost of the project only to the extent that 
                        amounts are provided in advance in an 
                        appropriations Act.''.

SEC. 203. CONSERVE BY BICYCLING PROGRAM.

    (a) Establishment.--The Secretary of Transportation shall establish 
a Conserve By Bicycling pilot program that shall provide for up to 10 
geographically dispersed projects to encourage the use of bicycles in 
place of motor vehicles.
    (b) Projects.--Projects carried out under this section shall--
            (1) use education and marketing to convert motor vehicle 
        trips to bike trips;
            (2) establish infrastructure facilities necessary to 
        support the conversion to bike trips;
            (3) document project results and energy savings; and
            (4) facilitate partnerships among entities in the fields of 
        transportation, law enforcement, education, public health, 
        environment, or energy.
    (c) Federal Share.--The Federal share of the cost of a project 
carried out under this section shall not exceed 80 percent.
    (d) Report.--Not later than 2 years after implementation of the 
projects under this section, the Secretary shall transmit to Congress a 
report on the results of the pilot program.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000. Such sums shall 
remain available until expended.

SEC. 204. ENERGY IMPACTS OF FEDERAL-AID HIGHWAY AND TRANSIT PROJECTS.

    Section 109 of title 23, United States Code, is amended by adding 
at the end the following:
    ``(r) Consideration of Energy Impacts.--Environmental impact 
statements prepared for Federal-aid highway and transit projects shall 
consider energy impacts as an environmental consequence of the project. 
Energy impacts shall be quantified and comparisons made between 
alternatives. The cost of annual energy consumption shall be determined 
for each alternative considered in the environmental impact 
statement.''.

SEC. 205. RAILROAD EFFICIENCY.

    (a) Establishment.--The Secretary of Transportation, in conjunction 
with the Administrator of the Environmental Protection Agency, shall 
establish a public-private research partnership involving the Federal 
Government, railroad carriers, locomotive manufacturers and equipment 
suppliers, and the research and test center dedicated to the 
advancement of railroad technology, efficiency, and safety that is 
owned by the Federal Railroad Administration and operated in the 
private sector. The goal of the initiative shall include developing and 
demonstrating locomotive technologies that increase fuel economy, 
reduce emissions, and lower costs.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $35,000,000 for each of fiscal 
years 2006 through 2008. Such sums shall remain available until 
expended.

                          TITLE III--AVIATION

SEC. 301. CLEAN AIRPORT BUS PILOT PROGRAM.

    (a) In General.--Subchapter I of chapter 471 of title 49, United 
States Code, is amended by adding at the end the following:
``Sec. 47138. Clean airport bus pilot program
    ``(a) Establishment.--The Secretary of Transportation shall 
establish a pilot program for awarding grants on a competitive basis to 
eligible entities for facilitating the use of alternative fuel and 
ultra-low sulfur diesel buses at public airports through airport bus 
replacement and fleet expansion programs under this section.
    ``(b) Requirements.--Not later than 6 months after the date of 
enactment of this Act, the Secretary shall establish and publish in the 
Federal Register requirements for implementation of the program under 
this section, including eligibility for assistance, management, 
transfer, and ultimate disposition of buses, and certification 
requirements to ensure compliance with this section.
    ``(c) Solicitation.--Not later than 9 months after the date of 
enactment of this Act, the Secretary shall solicit proposals for grants 
under this section.
    ``(d) Eligible Recipients.--A grant shall be awarded under this 
section only to a public agency responsible for bus service at a public 
airport.
    ``(e) Types of Grants.--
            ``(1) In general.--Grants under this section may be for the 
        purposes described in paragraph (2), paragraph (3), or both.
            ``(2) Replacement bus grants.--A grant under this section 
        may be used for the acquisition of replacement buses.
            ``(3) Fleet expansion bus grants.--A grant under this 
        section may be used for the acquisition of not more than 10 
        buses to expand a fleet of airport buses at any single airport.
    ``(f) Priority of Grant Applications.--In awarding bus replacement 
grants described in subsection (e)(2), the Secretary shall give 
priority to awarding grants to applicants emphasizing the replacement 
of buses to be used at a public airport located in a nonattainment 
area, as defined in section 171 of the Clean Air Act (42 U.S.C. 7501).
    ``(g) Conditions of Grant.--A grant provided under this section 
shall include the following conditions:
            ``(1) All buses acquired with funds provided under the 
        grant shall be operated as part of the airport bus fleet for 
        which the grant was made for a minimum of 5 years.
            ``(2) Funds provided under the grant may only be used--
                    ``(A) to acquire new or replacement alternative 
                fuel and ultra-low sulfur diesel fuel buses, including 
                State taxes and contract fees; and
                    ``(B) to construct infrastructure facilities to 
                enable the delivery of fuel and services necessary for 
                alternative fuel and ultra-low sulfur diesel fuel 
                buses.
    ``(h) Federal Share.--The Federal share of the cost of a bus 
acquired or other project or activity funded using amounts made 
available to carry out this section shall be 80 percent.
    ``(i) Deployment and Distribution.--The Secretary shall seek to the 
maximum extent practicable to ensure a broad geographic distribution of 
grant awards, with a goal of no State receiving more than 10 percent of 
the grant funding made available under this section for a fiscal year.
    ``(j) Definitions.--In this section, the following definitions 
apply:
            ``(1) Airport bus.--The term `airport bus' means a bus 
        operated by a public agency to provide transportation between 
        the facilities of a public airport.
            ``(2) Alternative fuel bus.--The term `alternative fuel 
        bus' means a bus powered substantially by electricity 
        (including electricity supplied by a fuel cell), or by 
        liquefied natural gas, compressed natural gas, liquefied 
        petroleum gas, hydrogen, propane, or methanol or ethanol at no 
        less than 85 percent by volume.
            ``(3) Public airport.--The term `public airport' has the 
        meaning such term has under section 47102 of title 49, United 
        States Code.
            ``(4) Ultra-low sulfur diesel bus.--The term `ultra-low 
        sulfur diesel bus' means a bus powered by diesel fuel which 
        contains sulfur at not more than 15 parts per million.
    ``(k) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Transportation for carrying out this 
section--
            ``(1) $20,000,000 for fiscal year 2006;
            ``(2) $30,000,000 for fiscal year 2007;
            ``(3) $40,000,000 for fiscal year 2008;
            ``(4) $50,000,000 for fiscal year 2009; and
            ``(5) $60,000,000 for fiscal year 2010.
Such sums shall remain available until expended.''.
    (b) Conforming Amendment.--The analysis for chapter 471 of title 
49, United States Code, is amended by inserting after the item relating 
to section 47137 the following:

``47138. Clean airport bus pilot program.''.

SEC. 302. CLEAN AIRCRAFT ENGINES.

    (a) Public-Private Research Partnership.--The Administrator of the 
Federal Aviation Administration shall establish a public-private 
research partnership involving the Federal Aviation Administration, the 
National Aeronautics and Space Administration, research universities, 
and representatives of the aero-propulsion industry.
    (b) Duties.--The partnership shall--
            (1) develop a clean ground demonstrator engine utilizing 
        technologies developed by the Ultra Efficient Engine Technology 
        (UEET) and Quiet Aircraft Technology (QAT) programs of the 
        National Aeronautics and Space Administration; and
            (2) focus on the development and certification of 
        environmentally friendly manufacturing technologies, materials, 
        and overhaul and repair.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal years 2006 through 2010. Such sums shall remain available 
until expended.

                       TITLE IV--WATER RESOURCES

SEC. 401. MARINE EFFICIENCY.

    (a) Establishment.--The Secretary of Transportation shall establish 
a public-private research partnership involving the Federal Government, 
vessel operators, ports, terminal operators, shipyards, and equipment 
suppliers to develop and demonstrate technologies that--
            (1) increase fuel economy, reduce emissions, and lower 
        costs of marine transportation; and
            (2) increase the efficiency of intermodal transfers.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal years 2006 through 2010. Such sums shall remain available 
until expended.

SEC. 402. IMPROVING HYDROPOWER CAPABILITIES.

    (a) Study.--The Secretary of the Army shall conduct a study on the 
potential for reduced fossil fuel consumption through an increase in 
United States hydropower capabilities.
    (b) Contents.--The study shall include an examination of the 
potential for improving hydropower capabilities at dams owned or 
operated by the Corps of Engineers.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall transmit to Congress a report containing 
the results of the study conducted under this section.

SEC. 403. ENCOURAGEMENT OF STATE PROHIBITIONS ON OFF-SHORE DRILLING IN 
              THE GREAT LAKES.

    (a) Findings.--Congress finds the following:
            (1) The water resources of the Great Lakes Basin are 
        precious natural resources of the States of Illinois, Indiana, 
        Michigan, Minnesota, New York, Ohio, Pennsylvania, and 
        Wisconsin.
            (2) The environmental dangers associated with off-shore 
        drilling in the Great Lakes for oil and gas outweigh the 
        potential benefits of such drilling.
            (3) In accordance with the Submerged Lands Act (43 U.S.C. 
        1301 et seq.), each State that borders any of the Great Lakes 
        has authority over the area between that State's coastline and 
        the boundary of Canada or another State.
            (4) The States of Illinois, Michigan, New York, 
        Pennsylvania, and Wisconsin each have a statutory prohibition 
        of off-shore drilling in the Great Lakes for oil and gas.
            (5) The States of Indiana, Minnesota, and Ohio do not have 
        such a prohibition.
    (b) Encouragement of State Prohibitions.--Congress encourages--
            (1) the States of Illinois, Michigan, New York, 
        Pennsylvania, and Wisconsin to continue to prohibit off-shore 
        drilling in the Great Lakes for oil and gas; and
            (2) the States of Indiana, Minnesota, and Ohio to enact a 
        prohibition of such drilling.

                        TITLE V--TAX PROVISIONS

SEC. 501. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO COMMUTERS WHO 
              BICYCLE, CARPOOL, OR USE CAR-SHARING.

    (a) In General.--Paragraph (1) of section 132(f) of the Internal 
Revenue Code of 1986 (relating to general rule for qualified 
transportation fringe) is amended by adding at the end the following:
                    ``(D) Other commuting allowances.''.
    (b) Other Commuting Allowances Defined.--Paragraph (5) of section 
132(f) of such Code (relating to definitions) is amended by adding at 
the end the following:
                    ``(F) Other commuting allowances.--
                            ``(i) In general.--The term `other 
                        commuting allowances' means an amount provided 
                        to an employee for transportation by bicycling, 
                        carpooling, or car-sharing if such 
                        transportation is in connection with travel 
                        between the employee's residence and place of 
                        employment.
                            ``(ii) Bicycling.--For purposes of clause 
                        (i), bicycling includes regular bicycle 
                        maintenance, and expenses for accessing space, 
                        locker, and shower facilities, secured bike 
                        storage, and other services directly associated 
                        with bicycling.
                            ``(iii) Carpooling.--For purposes of clause 
                        (i), the term `carpooling' means the carrying 
                        of more than 1, but not more than 6, passengers 
                        by highway vehicle on any public road or 
                        highway, either regularly or occasionally, with 
                        or without compensation, but not for profit.
                            ``(iv) Car-sharing.--For purposes of clause 
                        (i), the term `car sharing' means shared-use 
                        vehicle services under which members are 
                        provided with access to a fleet of highway 
                        vehicles for use on an as-needed basis.''.
    (c) Dollar Limitation on Exclusion.--Paragraph (2) of section 
132(f) of such Code is amended by striking ``and'' at the end of 
subparagraph (A), by striking the period at the end of subparagraph (B) 
and inserting ``, and'', and by inserting after subparagraph (B) the 
following new subparagraph:
                    ``(C) $75 per month in the case of the benefits 
                described in subparagraph (D) of paragraph (1).''.
    (d) Adjustment for Inflation.--Subparagraph (A) of section 
132(f)(6) is amended--
            (1) by striking ``subparagraphs (A) and (B)'' and inserting 
        ``subparagraphs (A), (B), and (C)'', and
            (2) by adding at the end the following: ``In the case of 
        any taxable year beginning in a calendar year after 2005, 
        clause (ii) shall be applied by substituting `calendar year 
        2004' for `calendar year 1998' for purposes of adjusting the 
        dollar amount contained in paragraph (2)(C).''
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
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