[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1350 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1350

    To encourage increased production of natural gas and liquefied 
 petroleum gas vehicles and to provide tax incentives for natural gas 
   and liquefied petroleum gas vehicle infrastructure, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 25, 2009

 Mr. Pryor (for himself and Mr. Inhofe) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To encourage increased production of natural gas and liquefied 
 petroleum gas vehicles and to provide tax incentives for natural gas 
   and liquefied petroleum gas vehicle infrastructure, and for other 
                               purposes.

    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 ``Fueling America 
Act of 2009''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
 TITLE I--INCREASED PRODUCTION OF NATURAL GAS AND LIQUEFIED PETROLEUM 
                              GAS VEHICLES

Sec. 101. Definitions.
Sec. 102. Natural gas and liquefied petroleum gas vehicle research, 
                            development, and demonstration projects.
Sec. 103. Study of increasing natural gas and liquefied petroleum gas 
                            vehicles in Federal fleet.
Sec. 104. Clean school bus program.
                        TITLE II--TAX INCENTIVES

Sec. 201. Credit for natural gas and liquefied petroleum gas refueling 
                            property.
Sec. 202. Credit for purchase of vehicles fueled by natural gas or 
                            liquefied petroleum gas.

 TITLE I--INCREASED PRODUCTION OF NATURAL GAS AND LIQUEFIED PETROLEUM 
                              GAS VEHICLES

SEC. 101. DEFINITIONS.

    In this title:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Natural gas.--The term ``natural gas'' means--
                    (A) compressed natural gas;
                    (B) liquefied natural gas;
                    (C) biomethane; and
                    (D) mixtures of--
                            (i) hydrogen; and
                            (ii) methane, biomethane, compressed 
                        natural gas, or liquefied natural gas.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 102. NATURAL GAS AND LIQUEFIED PETROLEUM GAS VEHICLE RESEARCH, 
              DEVELOPMENT, AND DEMONSTRATION PROJECTS.

    (a) In General.--The Secretary, in coordination with the 
Administrator, shall conduct a program of natural gas and liquefied 
petroleum gas vehicle research, development, and demonstration.
    (b) Purposes.--The purposes of the program conducted under this 
section are to focus on--
            (1) the continued improvement and development of new, 
        cleaner, more efficient light-duty, medium-duty, and heavy-duty 
        natural gas and liquefied petroleum gas vehicle engines;
            (2) the integration of those engines into light-duty, 
        medium-duty, and heavy-duty natural gas and liquefied petroleum 
        gas vehicles for onroad and offroad applications;
            (3) expanding product availability by assisting 
        manufacturers with the certification of the engines or vehicles 
        described in paragraph (1) or (2) to comply with Federal or 
        California certification requirements and in-use emission 
        standards;
            (4) the demonstration and proper operation and use of the 
        vehicles described in paragraph (2) under all operating 
        conditions;
            (5) the development and improvement of nationally 
        recognized codes and standards for the continued safe operation 
        of vehicles described in paragraph (2) and the components of 
        the vehicles;
            (6) improvement in the reliability and efficiency of 
        natural gas and liquefied petroleum gas fueling station 
        infrastructure;
            (7) the certification of natural gas and liquefied 
        petroleum gas fueling station infrastructure to nationally 
        recognized and industry safety standards;
            (8) the improvement in the reliability and efficiency of 
        onboard natural gas and liquefied petroleum gas fuel storage 
        systems;
            (9) the development of new natural gas and liquefied 
        petroleum gas fuel storage materials;
            (10) the certification of onboard natural gas and liquefied 
        petroleum gas fuel storage systems to nationally recognized and 
        industry safety standards; and
            (11) the use of natural gas and liquefied petroleum gas 
        engines in hybrid vehicles.
    (c) Certification of Aftermarket Conversion Systems.--
            (1) In general.--The Secretary shall coordinate with the 
        Administrator on issues related to streamlining the 
        certification of natural gas and liquefied petroleum gas 
        aftermarket conversion systems to comply with appropriate 
        Federal certification requirements and in-use emission 
        standards.
            (2) Streamlined certification.--For purposes of paragraph 
        (1), streamlined certification shall include providing 
        aftermarket conversion system manufacturers the option to 
        continue to sell and install systems on engines and test groups 
        for which the manufacturers have previously received a 
        certificate of conformity without having to request a new 
        certificate in future years.
    (d) Cooperation and Coordination With Industry.--In developing and 
carrying out the program under this section, the Secretary shall 
coordinate with the natural gas and liquefied petroleum gas vehicle 
industry to ensure, to the maximum extent practicable, cooperation 
between the public and the private sector.
    (e) Administration.--The program under this section shall be 
conducted in accordance with sections 3001 and 3002 of the Energy 
Policy Act of 1992 (42 U.S.C. 13541, 13542).
    (f) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit to the appropriate committees of 
Congress a report on the implementation of this section.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $30,000,000 for 
each of fiscal years 2010 through 2014.

SEC. 103. STUDY OF INCREASING NATURAL GAS AND LIQUEFIED PETROLEUM GAS 
              VEHICLES IN FEDERAL FLEET.

    Not later than 180 days after the date of enactment of this Act, 
the Administrator of General Services, in consultation with the 
Administrator, shall--
            (1) conduct a study on whether or not the Federal fleet 
        should increase the number of light-duty, medium-duty, and 
        heavy-duty natural gas and liquefied petroleum gas vehicles in 
        the fleet;
            (2) assess the barriers to increasing the number of natural 
        gas and liquefied petroleum gas vehicles in the fleet;
            (3) assess the potential for maximizing the use of natural 
        gas and liquefied petroleum gas vehicles in the fleet; and
            (4) submit to the appropriate committees of Congress a 
        report on the results of the study.

SEC. 104. CLEAN SCHOOL BUS PROGRAM.

    (a) In General.--Section 6015 of the Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users (42 U.S.C. 
16091a) is amended--
            (1) in subsection (b)(5)--
                    (A) in subparagraph (A)--
                            (i) in the subparagraph heading, by 
                        striking ``50'' and inserting ``65'';
                            (ii) in the matter preceding clause (i), by 
                        striking ``one-half'' and inserting ``65 
                        percent'';
                            (iii) in clause (i)(II), by striking ``or'' 
                        after the semicolon at the end;
                            (iv) in clause (ii), by striking the period 
                        at the end and inserting as semicolon; and
                            (v) by adding at the end the following:
                            ``(iii) clean school buses with engines 
                        manufactured in model year 2010, 2011, 2012, 
                        2013, or 2014 that satisfy regulatory 
                        requirements established by the Administrator 
                        for emissions of oxides of nitrogen and 
                        particulate matter to be applicable for school 
                        buses manufactured in that model year; or
                            ``(iv) clean school buses with engines only 
                        fueled by compressed natural gas, liquefied 
                        natural gas, or liquefied petroleum gas, except 
                        that school buses described in this clause may 
                        be eligible for a grant that is equal to an 
                        additional 25 percent of the acquisition costs 
                        of the school buses (including fueling 
                        infrastructure).''; and
                    (B) in subparagraph (B)--
                            (i) in the subparagraph heading, by 
                        striking ``25'' and inserting ``50''; and
                            (ii) in the matter preceding clause (i), by 
                        striking ``one-fourth'' and inserting ``50 
                        percent''; and
            (2) in subsection (d)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking ``2008, 2009, and 
                2010.'' and inserting ``2008 and 2009; and''; and
                    (C) by adding at the end the following:
            ``(3) $75,000,000 for each of fiscal years 2010 through 
        2014.''.
    (b) Technical Correction.--Section 741 of the Energy Policy Act of 
2005 (42 U.S.C. 16091) is repealed.

                        TITLE II--TAX INCENTIVES

SEC. 201. CREDIT FOR NATURAL GAS AND LIQUEFIED PETROLEUM GAS REFUELING 
              PROPERTY.

    (a) Increase in Credit Percentage for Natural Gas and Liquefied 
Petroleum Gas Refueling Property.--Subsection (e) of section 30C of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(7) Special rule for qualified natural gas vehicle 
        refueling property and qualified liquefied petroleum gas 
        vehicle refueling property.--
                    ``(A) In general.--In the case of any qualified 
                natural gas vehicle refueling property and any 
                qualified liquefied petroleum gas vehicle refueling 
                property to which paragraph (6) does not apply--
                            ``(i) subsection (a) shall be applied by 
                        substituting `50 percent' for `30 percent',
                            ``(ii) subsection (b)(1) shall be applied 
                        by substituting `$50,000' for `$30,000', and
                            ``(iii) subsection (b)(2) shall be applied 
                        by substituting `$2,000' for `$1,000'.
                    ``(B) Qualified natural gas vehicle refueling 
                property.--For purposes of this paragraph, the term 
                `qualified natural gas vehicle refueling property' has 
                the same meaning as the term `qualified alternative 
                fuel vehicle refueling property' would have under 
                subsection (c) if only natural gas, compressed natural 
                gas, and liquefied natural gas were treated as clean-
                burning fuels for purposes of section 179A(d).
                    ``(C) Qualified liquefied petroleum gas vehicle 
                refueling property.--For purposes of this paragraph, 
                the term `qualified liquefied petroleum gas vehicle 
                refueling property' has the same meaning as the term 
                `qualified alternative fuel vehicle refueling property' 
                would have under subsection (c) if only liquefied 
                petroleum gas were treated as a clean-burning fuel for 
                purposes of section 179A(d).''.
    (b) Extension of Credit.--Subsection (g) of section 30C of the 
Internal Revenue Code of 1986 is amended to read as follows:
    ``(g) Termination.--This section shall not apply to any property 
placed in service after December 31, 2014.''.
    (c) 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. 202. CREDIT FOR PURCHASE OF VEHICLES FUELED BY NATURAL GAS OR 
              LIQUEFIED PETROLEUM GAS.

    (a) In General.--Subsection (e) of section 30B of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(6) Higher incremental cost limits for natural gas 
        vehicles and liquefied petroleum gas vehicles.--
                    ``(A) In general.--In the case of any eligible 
                natural gas motor vehicle and any eligible liquefied 
                petroleum gas motor vehicle, paragraph (3) shall be 
                applied by multiplying each of the dollar amounts 
                contained in such paragraph by 2.
                    ``(B) Eligible natural gas motor vehicle.--For 
                purposes of this paragraph, the term `eligible natural 
                gas motor vehicle' means (except as provided in clause 
                (ii)) a new qualified alternative fuel motor vehicle or 
                aftermarket conversion system the final assembly of 
                which is in the United States and that--
                            ``(i) is only capable of operating on 
                        compressed natural gas or liquefied natural 
                        gas, or
                            ``(ii) is capable of operating for more 
                        than 175 miles on compressed natural gas or 
                        liquefied natural gas and is capable of 
                        operating on gasoline or diesel fuel.
                    ``(C) Eligible liquefied petroleum gas motor 
                vehicle.--For purposes of this paragraph, the term 
                `eligible liquefied petroleum gas motor vehicle' means 
                (except as provided in clause (ii)) a new qualified 
                alternative fuel motor vehicle or aftermarket 
                conversion system the final assembly of which is in the 
                United States and that--
                            ``(i) is only capable of operating on 
                        liquefied petroleum gas, or
                            ``(ii) is capable of operating for more 
                        than 175 miles on liquefied petroleum gas and 
                        is capable of operating on gasoline or diesel 
                        fuel.
                    ``(D) Aftermarket conversion system.--For purposes 
                of this paragraph, the term `aftermarket conversion 
                system' means property that converts a vehicle that is 
                not described in this paragraph into an eligible 
                natural gas motor vehicle (for purposes of subparagraph 
                (B)) or an eligible liquefied petroleum gas motor 
                vehicle (for purposes of subparagraph (C)).''.
    (b) Extension of Credit for Natural Gas and Liquefied Petroleum Gas 
Vehicles.--Paragraph (4) of section 30B(k) of the Internal Revenue Code 
of 1986 is amended--
            (1) by striking ``and'' at the end of paragraph (3),
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``, and'',
            (3) by striking ``(as described in subsection (e))'' in 
        paragraph (4) and inserting ``(as described in paragraph (4) or 
        (5) of subsection (e))'', and
            (4) by adding at the end the following new paragraph:
            ``(5) in the case of a new qualified alternative fuel 
        vehicle described in subsection (e)(6), December 31, 2014.''.
    (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.
                                 <all>