[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6570 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6570

   To encourage increased production of natural gas vehicles and to 
     provide tax incentives for natural gas vehicle infrastructure.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 2008

 Mr. Emanuel introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
 Oversight and Government Reform and Energy and Commerce, 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 encourage increased production of natural gas vehicles and to 
     provide tax incentives for natural gas vehicle 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 ``New Alternative Transportation to 
Give Americans Solutions Act''.

SEC. 2. SENSE OF CONGRESS REGARDING NATURAL GAS VEHICLES.

    (a) Findings.--Congress finds that--
            (1) according to the Energy Information Administration 
        (EIA), the transportation sector accounts for 69 percent of 
        United States oil consumption;
            (2) natural gas is cleaner and cheaper than gasoline;
            (3) 98 percent of natural gas consumed in the United States 
        is produced in North America;
            (4) recent shale discoveries and technology development is 
        increasing the American supply of natural gas;
            (5) natural gas vehicles are growing in popularity in 
        Europe, South America, and elsewhere; and
            (6) the diversification of transportation fuel sources 
        would help the United States meet rapidly growing domestic and 
        global energy demands, reduce the dependence of the United 
        States on oil imported from volatile regions of the world that 
        are politically unstable, stabilize the cost and availability 
        of energy, and safeguard the economy and security of the United 
        States.
    (b) Sense of Congress.--It is the sense of Congress that it is the 
goal of the United States that, not later than December 31, 2018, 10 
percent of new vehicles sold in the United States should be natural gas 
vehicles.

SEC. 3. INCREASES IN NATURAL GAS REFUELING PROPERTY CREDIT; NONBUSINESS 
              CREDIT LIMITATION DOUBLED; EXTENSION OF CREDIT.

    (a) Increase in Credit Percentage for Natural Gas Refueling 
Property.--Subsection (a) of section 30C of the Internal Revenue Code 
of 1986 (relating to alternative fuel vehicle refueling property 
credit) is amended by adding at the end the following new sentence: 
``In the case of qualified clean-fuel refueling property (as defined in 
section 179A(d)) which is described in section 179A(d)(3) with respect 
to natural gas fuel, the preceding sentence shall be applied by 
substituting `50 percent' for `30 percent'.''
    (b) Increase in Limitation.--Subsection (b) of section 30C of such 
Code is amended to read as follows:
    ``(b) Limitation.--
            ``(1) In general.--The credit allowed under subsection (a) 
        with respect to all qualified alternative fuel vehicle 
        refueling property placed in service by the taxpayer during the 
        taxable year at a location shall not exceed--
                    ``(A) $30,000 in the case of a property of a 
                character subject to an allowance for depreciation, and
                    ``(B) $1,000 in any other case.
            ``(2) Increased credit for natural gas refueling 
        property.--
                    ``(A) Business property.--The limitation under 
                paragraph (1)(A) shall be increased by the lesser of--
                            ``(i) $60,000, or
                            ``(ii) 50 percent of the cost of qualified 
                        clean-fuel refueling property (as defined in 
                        section 179A(d))--
                                    ``(I) which is described in section 
                                179A(d)(3) with respect to natural gas 
                                fuel,
                                    ``(II) which is of a character 
                                subject to an allowance for 
                                depreciation, and
                                    ``(III) which is placed in service 
                                during the taxable year.
                    ``(B) Nonbusiness property.--The limitation 
                described in paragraph (1)(B) shall be increased by the 
                lesser of--
                            ``(i) $1,000, or
                            ``(ii) 50 percent of the cost of qualified 
                        clean-fuel refueling property (as defined in 
                        section 179A(d))--
                                    ``(I) which is described in section 
                                179A(d)(3) with respect to natural gas 
                                fuel,
                                    ``(II) which is not of a character 
                                subject to an allowance for 
                                depreciation, and
                                    ``(III) which is placed in service 
                                during the taxable year.''.
    (c) Extension of Credit Through 2017.--Subsection (g) of section 
30C of such Code is amended to read as follows:
    ``(g) Termination.--This section shall not apply to any property 
placed in service after December 31, 2017.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2008, in taxable 
years ending after such date.

SEC. 4. ENERGY SECURITY BONDS.

    (a) In General.--Subpart H of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable credit 
to holders of certain bonds) is amended by adding after section 54B the 
following new section:

``SEC. 54C. ENERGY SECURITY BONDS.

    ``(a) Energy Security Bond.--For purposes of this subchapter, the 
term `energy security bond' means any bond issued as part of an issue 
if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for qualified purposes,
            ``(2) the bond is issued by a qualified issuer,
            ``(3) the issuer designates such bond for purposes of this 
        section, and
            ``(4) repayments of principal and applicable interest on 
        financing provided by the issue are used not later than the 
        close of the 3-month period beginning on the date the repayment 
        (or complete repayment) is received--
                    ``(A) to redeem bonds which are part of the issue, 
                or
                    ``(B) for any qualified purpose.
For purposes of paragraph (4), the term `applicable interest' means so 
much of the interest on any loan as exceeds the amount payable at a 1 
percent rate.
    ``(b) Qualified Purpose.--For purposes of this section--
            ``(1) In general.--The term `qualified purpose' means the 
        making of grants and low-interest loans for the purpose of 
        placing in service natural gas refueling property at retail 
        motor fuel stations located in the United States.
            ``(2) Limitation on loans.--Such term shall not include--
                    ``(A) any loan of more than $200,000 for property 
                located at any one retail motor fuel station, and
                    ``(B) any loan for more than 50 percent of the cost 
                of such property and its installation.
            ``(3) Natural gas refueling property.--The term `natural 
        gas refueling property' means qualified clean-fuel refueling 
        property (as defined in section 179A(d)) which is described in 
        section 179A(d)(3) with respect to natural gas fuel.
            ``(4) Low-interest loan.--The term `low-interest loan' 
        means any loan the rate of interest on which does not exceed 
        the applicable Federal rate in effect under section 1288(b)(1) 
        determined as of the issuance of the loan.
    ``(c) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated to 
such issuer under subsection (e).
    ``(d) National Limitation on Amount of Bonds Designated.--There is 
a national energy security bond limitation of $2,600,000,000.
    ``(e) Allocation.--
            ``(1) In general.--The Secretary shall make allocations of 
        the amount of the national energy security bond limitation 
        under subsection (d) among qualified issuers in such manner as 
        the Secretary determines appropriate.
            ``(2) Reservation for property in metropolitan area.--50 
        percent of the national energy security bond limitation under 
        subsection (d) may be allocated only for loans to provide 
        natural gas refueling property located in metropolitan 
        statistical areas (within the meaning of section 143(k)(2)(B)).
            ``(3) Percentage of stations receiving loans.--In making 
        allocations under paragraph (1), the Secretary shall attempt to 
        ensure that at least 10 percent of the retail motor fuel 
        stations in the United States received loans from the proceeds 
        of energy security bonds.
    ``(f) Qualified Issuer.--For purposes of this section, the term 
`qualified issuer' means any State or any political subdivision or 
instrumentality thereof.
    ``(g) Termination.--This section shall not apply with respect to 
any bond issued after December 31, 2017.''.
    (b) Coordination With Refueling Property Credit.--Subsection (e) of 
section 30C of such Code is amended by adding at the end the following 
new paragraph:
            ``(6) Coordination with energy security bonds.--The cost 
        otherwise taken into account under this section with respect to 
        any property shall be reduced by the portion of such cost which 
        is financed by any loan provided from the proceeds of any 
        energy security bond (as defined in section 54C).''.
    (c) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) of such Code is amended 
        to read as follows:
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means--
                    ``(A) a qualified forestry conservation bond, or
                    ``(B) an energy security bond,
        which is part of an issue that meets requirements of paragraphs 
        (2), (3), (4), (5), and (6).''.
            (2) Subparagraph (C) of section 54A(d)(2) of such Code is 
        amended to read as follows:
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means--
                            ``(i) in the case of a qualified forestry 
                        conservation bond, a purpose specified in 
                        section 54B(e), and
                            ``(ii) in the case of an energy security 
                        bond, a purpose specified in section 54C(b).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 54C. Energy security bonds.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2008.

SEC. 5. CREDIT FOR PRODUCING VEHICLES FUELED BY NATURAL GAS OR 
              LIQUIFIED NATURAL GAS.

    (a) In General.--Subpart D of part IV of subchapter 1 of the 
Internal Revenue Code of 1986 (relating to business-related credits) is 
amended by inserting after section 45P the following new section:

``SEC. 45Q. PRODUCTION OF VEHICLES FUELED BY NATURAL GAS OR LIQUIFIED 
              NATURAL GAS.

    ``(a) In General.--For purposes of section 38, in the case of a 
taxpayer who is a manufacturer of natural gas vehicles, the natural gas 
vehicle credit determined under this section for any taxable year with 
respect to each eligible natural gas vehicle produced by the taxpayer 
during such year is an amount equal to the lesser of--
            ``(1) 10 percent of the manufacturer's basis in such 
        vehicle, or
            ``(2) $2,000.
    ``(b) Aggregate Credit Allowed.--The aggregate amount of credit 
allowed under subsection (a) with respect to a taxpayer for any taxable 
year shall not exceed $100,000,000 reduced by the amount of the credit 
allowed under subsection (a) to the taxpayer (or any predecessor) for 
all prior taxable years.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible natural gas vehicle.--The term `eligible 
        natural gas vehicle' means any motor vehicle (as defined in 
        section 30(c)(2))--
                    ``(A) which is only capable of operating on natural 
                gas or liquified natural gas, and
                    ``(B) the final assembly of which is in the United 
                States.
            ``(2) Manufacturer.--The term `manufacturer' has the 
        meaning given such term in regulations prescribed by the 
        Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
    ``(d) Special Rules.--For purposes of this section--
            ``(1) In general.--Rules similar to the rules of 
        subsections (c), (d), and (e) of section 52 shall apply.
            ``(2) Controlled groups.--
                    ``(A) In general.--All persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414 shall be treated 
                as a single producer.
                    ``(B) Inclusion of foreign corporations.--For 
                purposes of subparagraph (A), in applying subsections 
                (a) and (b) of section 52 to this section, section 1563 
                shall be applied without regard to subsection (b)(2)(C) 
                thereof.
            ``(3) Verification.--No amount shall be allowed as a credit 
        under subsection (a) with respect to which the taxpayer has not 
        submitted such information or certification as the Secretary, 
        in consultation with the Secretary of Energy, determines 
        necessary.
    ``(e) Termination.--This section shall not apply to any vehicle 
produced after December 31, 2017.''.
    (b) Credit To Be Part of Business Credit.--Section 38(b) of such 
Code is amended by striking ``plus'' at the end of paragraph (32), by 
striking the period at the end of paragraph (33) and inserting ``, 
plus'', and by adding at the end the following:
            ``(34) the natural gas vehicle credit determined under 
        section 45Q(a).''.
    (c) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45P the following new 
item:

``Sec. 45Q. Production of vehicles fueled by natural gas or liquified 
                            natural gas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to vehicles produced after December 31, 2008.

SEC. 6. TAX-CREDIT BOND FINANCING FOR EQUIPMENT TO MANUFACTURE NATURAL 
              GAS VEHICLES.

    (a) In General.--Subpart H of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable credit 
to holders of certain bonds) is amended by adding after section 54C the 
following new section:

``SEC. 54D. NATURAL GAS VEHICLE PRODUCTION BONDS.

    ``(a) Natural Gas Vehicle Production Bonds.--For purposes of this 
subchapter, the term `natural gas vehicle production bond' means any 
bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for qualified purposes,
            ``(2) the bond is issued by a qualified issuer,
            ``(3) the issuer designates such bond for purposes of this 
        section, and
            ``(4) repayments of principal and applicable interest on 
        financing provided by the issue are used not later than the 
        close of the 3-month period beginning on the date the repayment 
        (or complete repayment) is received--
                    ``(A) to redeem bonds which are part of the issue, 
                or
                    ``(B) for any qualified purpose.
For purposes of paragraph (4), the term `applicable interest' means so 
much of the interest on any loan as exceeds the amount payable at a 1 
percent rate.
    ``(b) Qualified Purpose.--For purposes of this section, the term 
`qualified purpose' means the making of grants and low-interest loans 
for the purpose of assisting businesses to manufacture natural gas 
vehicles, including costs associated with design, engineering, testing, 
certification, and materials and component parts of eligible natural 
gas vehicles (as defined in section 45Q(c)).
    ``(c) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated to 
such issuer under subsection (e).
    ``(d) National Limitation on Amount of Bonds Designated.--There is 
a national natural gas vehicle production bond limitation of 
$5,000,000,000.
    ``(e) Allocation.--The Secretary shall make allocations of the 
amount of the natural gas vehicle production bond limitation under 
subsection (d) among qualified issuers in such manner as the Secretary 
determines appropriate, taking into consideration each State's 
contribution to the Nation's automotive manufacturing output.
    ``(f) Qualified Issuer.--For purposes of this section, the term 
`qualified issuer' means any State or any political subdivision or 
instrumentality thereof.
    ``(g) Termination.--This section shall not apply with respect to 
any bond issued after December 31, 2017.''.
    (b) Coordination With Production Credit.--Subsection (d) of section 
45Q of such Code, as added by this Act, is amended by adding at the end 
the following new paragraph:
            ``(4) Coordination with natural gas vehicle productions 
        bonds.--The cost otherwise taken into account under this 
        section with respect to any property shall be reduced by the 
        portion of such cost which is financed by any loan provided 
        from the proceeds of any natural gas vehicle production bond 
        (as defined in section 54D).''.
    (c) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) of such Code, as 
        amended by section 4, is amended by striking ``or'' at the end 
        of subparagraph (A), by adding ``or'' at the end of 
        subparagraph (B), and by inserting after subparagraph (B) the 
        following new subparagraph:
                    ``(C) a natural gas vehicle production bond,''.
            (2) Subparagraph (C) of section 54A(d)(2) of such Code, as 
        amended by section 4, is amended by striking ``and'' at the end 
        of clause (i), by striking the period at the end of clause (ii) 
        and inserting ``, and'', and by adding at the end the following 
        new clause:
                            ``(iii) in the case of a natural gas 
                        vehicle production bond, a purpose specified in 
                        section 54D(b).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 54D. Natural gas vehicle production bonds.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2008.

SEC. 7. INCREASED CREDIT FOR PURCHASE OF VEHICLES FUELED BY NATURAL GAS 
              OR LIQUIFIED NATURAL GAS; EXTENSION OF CREDIT.

    (a) In General.--Subsection (e) of section 30B of the Internal 
Revenue Code of 1986 (relating to new qualified alternative motor 
vehicle credit) is amended by adding at the end the following new 
paragraph:
            ``(6) Increased credit for natural gas vehicles.--
                    ``(A) Increased credit percentage.--In the case of 
                any natural gas vehicle, the applicable percentage 
                under paragraph (2) shall be 100 percent.
                    ``(B) Higher incremental cost limits for fleet 
                purchasers.--In the case of a taxpayer who places in 
                service 100 or more natural gas vehicles during the 
                taxable year, paragraph (3) shall be applied for such 
                year by doubling the amounts contained in such 
                paragraph.
                    ``(C) Natural gas vehicle.--For purposes of this 
                paragraph, the term `natural gas vehicle' means any new 
                qualified alternative fuel motor vehicle fueled by 
                natural gas or liquified natural gas.''.
    (b) Extension of Credit for All New Qualified Alternative Fuel 
Vehicles Through 2017.--Paragraph (4) of section 30B(j) of such Code is 
amended by striking ``December 31, 2010'' and inserting ``December 31, 
2017''.
    (c) Effective Date.--The amendments made by this section shall 
apply to vehicles placed in service after December 31, 2008, in taxable 
years ending after such date.

SEC. 8. NATURAL GAS VEHICLES IN FEDERAL FLEET.

    The General Services Administration, in consultation with the 
Environmental Protection Agency, shall conduct a study on whether or 
not the Federal fleet should increase the number of natural gas 
vehicles in their fleet, and transmit to the Congress a report on the 
results of that study.

SEC. 9. NATURAL GAS FUEL PUMPS.

    (a) Requirement.--Not later than January 1, 2018, each retail 
automotive fueling station owned by a major integrated oil company 
shall have at least 1 pump dispensing natural gas for automotive 
purposes.
    (b) Penalty.--A major integrated oil company that has failed to 
comply with subsection (a) as of January 1 of any year beginning with 
2018 shall be liable for a civil penalty assessed by the Secretary of 
Energy in the amount of $100,000 for each fueling station not in 
compliance.
    (c) Definition.--For purposes of this section, the term ``major 
integrated oil company'' has the meaning given that term in section 
167(h)(5)(B) of the Internal Revenue Code of 1986.
                                 <all>