[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1863 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1863

  To amend the Internal Revenue Code of 1986 to encourage alternative 
                  energy investments and job creation.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 15, 2011

   Mr. Menendez (for himself, Mr. Reid, Mr. Burr, and Mr. Chambliss) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to encourage alternative 
                  energy investments and job creation.

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

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``New Alternative 
Transportation to Give Americans Solutions Act of 2011''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title, etc.
   TITLE I--PROMOTE THE PURCHASE AND USE OF NGVS WITH AN EMPHASIS ON 
                 HEAVY-DUTY VEHICLES AND FLEET VEHICLES

Sec. 101. Extension and modification of new qualified alternative fuel 
                            motor vehicle credit.
Sec. 102. Allowance of vehicle and infrastructure credits against 
                            regular and minimum tax and transferability 
                            of credits.
Sec. 103. Modification of credit for purchase of vehicles fueled by 
                            compressed natural gas or liquefied natural 
                            gas.
Sec. 104. Modification of definition of new qualified alternative fuel 
                            motor vehicle.
Sec. 105. Providing for the treatment of property purchased by Indian 
                            tribal governments.
      TITLE II--PROMOTE PRODUCTION OF NGVS BY ORIGINAL EQUIPMENT 
                             MANUFACTURERS

Sec. 201. Credit for producing vehicles fueled by natural gas or 
                            liquified natural gas.
Sec. 202. Additional vehicles qualifying for the advanced technology 
                            vehicles manufacturing incentive program.
   TITLE III--INCENTIVIZE THE INSTALLATION OF NATURAL GAS FUEL PUMPS

Sec. 301. Extension and modification of alternative fuel vehicle 
                            refueling property credit.
Sec. 302. Increase in credit for certain alternative fuel vehicle 
                            refueling properties.
                     TITLE IV--NATURAL GAS VEHICLES

Sec. 401. Grants for natural gas vehicles research and development.
Sec. 402. Sense of the Congress regarding EPA certification of NGV 
                            retrofit kits.
Sec. 403. Amendment to section 508 of the Energy Policy Act of 1992.
                        TITLE V--TRANSIT SYSTEMS

Sec. 501. Federal share of costs for equipment for compliance with 
                            Clean Air Act.
Sec. 502. Natural gas transit infrastructure investment.
                          TITLE VI--USER FEES

Sec. 601. User fees.

   TITLE I--PROMOTE THE PURCHASE AND USE OF NGVS WITH AN EMPHASIS ON 
                 HEAVY-DUTY VEHICLES AND FLEET VEHICLES

SEC. 101. EXTENSION AND MODIFICATION OF NEW QUALIFIED ALTERNATIVE FUEL 
              MOTOR VEHICLE CREDIT.

    (a) In General.--Paragraph (4) of section 30B(k) is amended by 
inserting ``(December 31, 2016, in the case of a vehicle powered by 
compressed or liquefied natural gas)'' before the period at the end.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 102. ALLOWANCE OF VEHICLE AND INFRASTRUCTURE CREDITS AGAINST 
              REGULAR AND MINIMUM TAX AND TRANSFERABILITY OF CREDITS.

    (a) Business Credits.--Subparagraph (B) of section 38(c)(4) is 
amended by striking ``and'' at the end of clause (viii), by striking 
the period at the end of clause (ix) and inserting a comma, and by 
inserting after clause (ix) the following new clauses:
                            ``(x) the portion of the credit determined 
                        under section 30B which is attributable to the 
                        application of subsection (e)(3) thereof with 
                        respect to new qualified alternative fuel motor 
                        vehicles which are capable of being powered by 
                        compressed or liquefied natural gas, and
                            ``(xi) the portion of the credit determined 
                        under section 30C which is attributable to the 
                        application of subsection (b) thereof with 
                        respect to refueling property which is used to 
                        store and or dispense compressed or liquefied 
                        natural gas.''.
    (b) Personal Credits.--
            (1) New qualified alternative fuel motor vehicles.--
        Subsection (g) of section 30B is amended by adding at the end 
        the following new paragraph:
            ``(3) Special rule relating to certain new qualified 
        alternative fuel motor vehicles.--In the case of the portion of 
        the credit determined under subsection (a) which is 
        attributable to the application of subsection (e)(3) with 
        respect to new qualified alternative fuel motor vehicles which 
        are capable of being powered by compressed or liquefied natural 
        gas--
                    ``(A) paragraph (2) shall (after the application of 
                paragraph (1)) be applied separately with respect to 
                such portion, and
                    ``(B) in lieu of the limitation determined under 
                paragraph (2), such limitation shall not exceed the 
                excess (if any) of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the 
                        tentative minimum tax for the taxable year, 
                        reduced by
                            ``(ii) the sum of the credits allowable 
                        under subpart A and sections 27 and 30.''.
            (2) Alternative fuel vehicle refueling properties.--
        Subsection (d) of section 30C is amended by adding at the end 
        the following new paragraph:
            ``(3) Special rule relating to certain alternative fuel 
        vehicle refueling properties.--In the case of the portion of 
        the credit determined under subsection (a) with respect to 
        refueling property which is used to store and or dispense 
        compressed or liquefied natural gas and which is attributable 
        to the application of subsection (b)--
                    ``(A) paragraph (2) shall (after the application of 
                paragraph (1)) be applied separately with respect to 
                such portion, and
                    ``(B) in lieu of the limitation determined under 
                paragraph (2), such limitation shall not exceed the 
                excess (if any) of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the 
                        tentative minimum tax for the taxable year, 
                        reduced by
                            ``(ii) the sum of the credits allowable 
                        under subpart A and sections 27, 30, and the 
                        portion of the credit determined under section 
                        30B which is attributable to the application of 
                        subsection (e)(3) thereof.''.
    (c) Credits May Be Transferred.--
            (1) Vehicle credits.--Subsection (h) of section 30B is 
        amended by adding at the end the following new paragraph:
            ``(11) Transferability of credit.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a taxpayer who places in service any 
                new qualified alternative fuel motor vehicle which is 
                capable of being powered by compressed or liquefied 
                natural gas may transfer the credit allowed under this 
                section by reason of subsection (e) with respect to 
                such vehicle through an assignment to the manufacturer, 
                seller or lessee of such vehicle. Such transfer may be 
                revoked only with the consent of the Secretary.
                    ``(B) Regulations.--The Secretary shall prescribe 
                such regulations as necessary to ensure that any credit 
                transferred under subparagraph (A) is claimed once and 
                not reassigned by such other person.''.
            (2) Infrastructure credit.--Subsection (e) of section 30C 
        is amended by adding at the end the following new paragraph:
            ``(7) Transferability of credit.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a taxpayer who places in service any 
                qualified alternative fuel vehicle refueling property 
                relating to compressed or liquefied natural gas may 
                transfer the credit allowed under this section with 
                respect to such property through an assignment to the 
                manufacturer, seller or lessee of such property. Such 
                transfer may be revoked only with the consent of the 
                Secretary.
                    ``(B) Regulations.--The Secretary shall prescribe 
                such regulations as necessary to ensure that any credit 
                transferred under subparagraph (A) is claimed once and 
                not reassigned by such other person.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to property placed in service after the date of the 
enactment of this Act.

SEC. 103. MODIFICATION OF CREDIT FOR PURCHASE OF VEHICLES FUELED BY 
              COMPRESSED NATURAL GAS OR LIQUEFIED NATURAL GAS.

    (a) Increase in Credit.--Paragraph (2) of section 30B(e) is amended 
to read as follows:
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage with respect to any new 
        qualified alternative fuel motor vehicle is--
                    ``(A) except as provided in subparagraphs (B) and 
                (C)--
                            ``(i) 50 percent, plus
                            ``(ii) 30 percent, if such vehicle--
                                    ``(I) has received a certificate of 
                                conformity under the Clean Air Act and 
                                meets or exceeds the most stringent 
                                standard available for certification 
                                under the Clean Air Act for that make 
                                and model year vehicle (other than a 
                                zero emission standard), or
                                    ``(II) has received an order 
                                certifying the vehicle as meeting the 
                                same requirements as vehicles which may 
                                be sold or leased in California and 
                                meets or exceeds the most stringent 
                                standard available for certification 
                                under the State laws of California 
                                (enacted in accordance with a waiver 
                                granted under section 209(b) of the 
                                Clean Air Act) for that make and model 
                                year vehicle (other than a zero 
                                emission standard),
                    ``(B) 80 percent, in the case of dedicated vehicles 
                that are only capable of operating on compressed or 
                liquefied natural gas, dual-fuel vehicles that are only 
                capable of operating on a mixture of no less than 90 
                percent compressed or liquefied natural gas, and a bi-
                fuel vehicle that is capable of operating a minimum of 
                85 percent of its total range on compressed or 
                liquefied natural gas, and
                    ``(C) 50 percent, in the case of vehicles described 
                subclause (II) or (III) of subsection (e)(4)(A)(i) and 
                which are not otherwise described in subparagraph (B).
        For purposes of the preceding sentence, in the case of any new 
        qualified alternative fuel motor vehicle which weighs more than 
        14,000 pounds gross vehicle weight rating, the most stringent 
        standard available shall be such standard available for 
        certification on the date of the enactment of the Energy Tax 
        Incentives Act of 2005.''.
    (b) Increased Incentive for Natural Gas Vehicles.--Subsection (e) 
of section 30B is amended by adding at the end the following new 
paragraph:
            ``(6) Credit values for natural gas vehicles.--In the case 
        of new qualified alternative fuel motor vehicles with respect 
        to vehicles powered by compressed or liquefied natural gas, the 
        maximum tax credit value shall be--
                    ``(A) $7,500 if such vehicle has a gross vehicle 
                weight rating of not more than 8,500 pounds,
                    ``(B) $16,000 if such vehicle has a gross vehicle 
                weight rating of more than 8,500 pounds but not more 
                than 14,000 pounds,
                    ``(C) $40,000 if such vehicle has a gross vehicle 
                weight rating of more than 14,000 pounds but not more 
                than 26,000 pounds, and
                    ``(D) $64,000 if such vehicle has a gross vehicle 
                weight rating of more than 26,000 pounds.''.
    (c) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.

SEC. 104. MODIFICATION OF DEFINITION OF NEW QUALIFIED ALTERNATIVE FUEL 
              MOTOR VEHICLE.

    (a) In General.--Clause (i) of section 30B(e)(4)(A) is amended to 
read as follows:
                            ``(i) which--
                                    ``(I) is a dedicated vehicle that 
                                is only capable of operating on an 
                                alternative fuel,
                                    ``(II) is a bi-fuel vehicle that is 
                                capable of operating on compressed or 
                                liquefied natural gas and gasoline or 
                                diesel fuel, or
                                    ``(III) is a duel-fuel vehicle that 
                                is capable of operating on a mixture of 
                                compressed or liquefied natural gas and 
                                gasoline or diesel fuel.''.
    (b) Conversions and Repowers.--Paragraph (4) of section 30B(e) is 
amended by adding at the end the following new subparagraph:
                    ``(C) Conversions and repowers.--
                            ``(i) In general.--The term `new qualified 
                        alternative fuel motor vehicle' includes the 
                        conversion or repower of a new or used vehicle 
                        so that it is capable of operating on an 
                        alternative fuel as it was not previously 
                        capable of operating on an alternative fuel.
                            ``(ii) Treatment as new.--A vehicle which 
                        has been converted to operate on an alternative 
                        fuel shall be treated as new on the date of 
                        such conversion for purposes of this section.
                            ``(iii) Rule of construction.--In the case 
                        of a used vehicle which is converted or 
                        repowered, nothing in this section shall be 
                        construed to require that the motor vehicle be 
                        acquired in the year the credit is claimed 
                        under this section with respect to such 
                        vehicle.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 105. PROVIDING FOR THE TREATMENT OF PROPERTY PURCHASED BY INDIAN 
              TRIBAL GOVERNMENTS.

    (a) In General.--Paragraph (6) of section 30B(h) and paragraph (2) 
of section 30C(e) are both amended by inserting ``, or an Indian Tribal 
Government'' after ``section 50(b)''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

      TITLE II--PROMOTE PRODUCTION OF NGVS BY ORIGINAL EQUIPMENT 
                             MANUFACTURERS

SEC. 201. CREDIT FOR PRODUCING VEHICLES FUELED BY NATURAL GAS OR 
              LIQUIFIED NATURAL GAS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
is amended by inserting after section 45R the following new section:

``SEC. 45S. 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 an original 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) $4,000.
    ``(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 $200,000,000 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 the purposes of this section--
            ``(1) Eligible natural gas vehicle.--The term `eligible 
        natural gas vehicle' means a motor vehicle (as defined in 
        section 30B(h)(1)) that is capable of operating on natural gas 
        and is described in 30B(e)(4)(A).
            ``(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 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.
                    ``(C) 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, 2016.''.
    (b) Credit To Be Part of Business Credit.--Section 38(b) is amended 
by striking ``plus'' at the end of paragraph (35), by striking the 
period at the end of paragraph (36) and inserting ``, plus'', and by 
adding at the end the following:
            ``(37) the natural gas vehicle credit determined under 
        section 45S(a).''.
    (c) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by inserting after the 
item relating to section 45R the following new item:

``Sec. 45S. Production of vehicles fueled by natural gas or liquefied 
                            natural gas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to vehicles produced after December 31, 2011.

SEC. 202. ADDITIONAL VEHICLES QUALIFYING FOR THE ADVANCED TECHNOLOGY 
              VEHICLES MANUFACTURING INCENTIVE PROGRAM.

    (a) In General.--Notwithstanding any other provision of law, a 
covered vehicle (as defined in subsection (b)) shall be considered an 
advanced technology vehicle for purposes of the advanced technology 
vehicle incentive program established under section 136 of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17013), and 
manufacturers and component suppliers of such covered vehicles shall be 
eligible for an award under such section.
    (b) Definitions.--As used in this section--
            (1) the term ``covered vehicle'' means a light-duty vehicle 
        or a medium-duty or heavy-duty truck or bus that is only 
        capable of operating on compressed or liquefied natural gas, a 
        bi-fueled motor vehicle that is capable of achieving a minimum 
        of 85 percent of its total range with compressed or liquefied 
        natural gas, or a dual-fuel vehicle that operates on a mixture 
        of natural gas and gasoline or diesel fuel but is not capable 
        of operating on a mixture of less than 75 percent natural gas;
            (2) the term ``bi-fuel vehicle'' means a vehicle that is 
        capable of operating on compressed or liquefied natural gas and 
        gasoline or diesel fuel; and
            (3) the term ``dual-fuel vehicle'' means a vehicle that is 
        capable of operating on a mixture of compressed or liquefied 
        natural gas and gasoline or diesel fuel.

   TITLE III--INCENTIVIZE THE INSTALLATION OF NATURAL GAS FUEL PUMPS

SEC. 301. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL VEHICLE 
              REFUELING PROPERTY CREDIT.

    (a) In General.--Subsection (g) of section 30C is amended by 
striking ``and'' at the end of paragraph (1), by redesignating 
paragraph (2) as paragraph (3), and by inserting after paragraph (1) 
the following new paragraph:
            ``(2) in the case of property relating to compressed or 
        liquefied natural gas, after December 31, 2016, and''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 302. INCREASE IN CREDIT FOR CERTAIN ALTERNATIVE FUEL VEHICLE 
              REFUELING PROPERTIES.

    (a) In General.--Subsection (b) of section 30C is amended to read 
as follows:
    ``(b) Limitation.--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--
            ``(1) except as provided in paragraph (2), $30,000 in the 
        case of a property of a character subject to an allowance for 
        depreciation,
            ``(2) in the case of compressed natural gas property and 
        liquefied natural gas property which is of a character subject 
        to an allowance for depreciation, the lesser of--
                    ``(A) 50 percent of such cost, or
                    ``(B) $100,000, and
            ``(3) $2,000 in any other case.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service in taxable years beginning after December 
31, 2011.

                     TITLE IV--NATURAL GAS VEHICLES

SEC. 401. GRANTS FOR NATURAL GAS VEHICLES RESEARCH AND DEVELOPMENT.

    (a) Research, Development and Demonstration Programs.--The 
Secretary shall provide funding to improve the performance and 
efficiency and integration of natural gas powered motor vehicles and 
heavy-duty on-road vehicles as part of any programs funded pursuant to 
section 911 of the Energy Policy Act of 2005 (42 U.S.C. 16191) and also 
with respect to funding for heavy-duty engines pursuant to section 754 
of the Energy Policy Act of 2005 (42 U.S.C. 16102).
    (b) In General.--The Secretary of Energy may make grants to 
original equipment manufacturers of light-duty and heavy-duty natural 
gas vehicles for the development of engines that reduce emissions, 
improve performance and efficiency, and lower cost.

SEC. 402. SENSE OF THE CONGRESS REGARDING EPA CERTIFICATION OF NGV 
              RETROFIT KITS.

    It is the sense of the Congress that the Environmental Protection 
Agency should further streamline the process for certification of 
natural gas vehicle retrofit kits to promote energy security while 
still fulfilling the mission of the Clean Air Act.

SEC. 403. AMENDMENT TO SECTION 508 OF THE ENERGY POLICY ACT OF 1992.

    (a) Repower or Converted Alternative Fueled Vehicles Defined.--
Subsection (a) of section 508 of the Energy Policy Act of 1992 (42 
U.S.C. 13258) is amended by adding at the end the following new 
paragraph:
            ``(6) Repowered or converted.--The term `repowered or 
        converted' means modified with a certified or approved engine 
        or aftermarket system so that the vehicle is capable of 
        operating on an alternative fuel.''.
    (b) Allocation of Credits.--Subsection (b) of section 508 of the 
Energy Policy Act of 1992 (42 U.S.C. 13258) is amended by adding at the 
end the following new paragraph:
            ``(3) Repowered or converted vehicles.--Not later than 
        January 1, 2012, the Secretary shall allocate credits to fleets 
        or covered persons that repower or convert an existing vehicle 
        so that it is capable of operating on an alternative fuel. In 
        the case of any medium-duty or heavy-duty vehicle that is 
        repowered or converted, the Secretary shall allocate additional 
        credits for such vehicles if the Secretary determines that such 
        vehicles displace more petroleum than light-duty alternative 
        fueled vehicles. The Secretary shall include a requirement that 
        such vehicles remain in the fleet for a period of no less than 
        2 years in order to continue to qualify for credit. The 
        Secretary also shall extend the flexibility afforded in this 
        section to Federal fleets subject to the purchase provisions 
        contained in section 303 of this Act.''.

                        TITLE V--TRANSIT SYSTEMS

SEC. 501. FEDERAL SHARE OF COSTS FOR EQUIPMENT FOR COMPLIANCE WITH 
              CLEAN AIR ACT.

    Section 5323(i) of title 49, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) in the paragraph heading, by striking ``and 
                clean air act'';
                    (B) in the first sentence, by striking ``or 
                vehicle-related'' and all that follows through ``Clean 
                Air Act''; and
                    (C) by striking ``those Acts'' each place it 
                appears and inserting ``the Americans with Disabilities 
                Act of 1990 (42 U.S.C. 12101 et seq.)'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following:
            ``(2) Equipment for compliance with clean air act.--
                    ``(A) In general.--A grant for a project to be 
                assisted under this chapter that involves acquiring 
                vehicle-related equipment or facilities (including 
                clean fuel or alternative fuel vehicle-related 
                equipment or facilities) for purposes of complying with 
                or maintaining compliance with the Clean Air Act (42 
                U.S.C. 7401 et seq.) shall be made for--
                            ``(i) 100 percent of the net project cost 
                        of the equipment or facilities attributable to 
                        compliance with that Act for any amounts of not 
                        more than $75,000; and
                            ``(ii) 90 percent of the net project cost 
                        of the equipment or facilities attributable to 
                        compliance with that Act for any amounts of 
                        more than $75,000.
                    ``(B) Costs.--The Secretary shall have discretion 
                to determine, through practicable administrative 
                procedures, the costs of equipment or facilities 
                attributable to compliance with the Clean Air Act (42 
                U.S.C. 7401 et seq.).''.

SEC. 502. NATURAL GAS TRANSIT INFRASTRUCTURE INVESTMENT.

    (a) Establishment.--The Secretary of Transportation shall establish 
and administer a program to encourage the development of natural gas 
fueling infrastructure to be used by transit agencies.
    (b) Use.--Funding provided under the program may be used for the 
purpose of building new or expanded fueling facilities, if the 
expansion is for the purposes of fueling additional buses with natural 
gas.
    (c) Competitive Grants.--The Secretary shall--
            (1) administer the funding providing under the program on a 
        competitive basis; and
            (2) award funding after an evaluation of project proposals 
        that includes--
                    (A) the overall quantity of petroleum to be 
                displaced over the life of the proposed project;
                    (B) the amount of private funding or local funding 
                that is available to offset the cost of the project; 
                and
                    (C) the technical and economical feasibility of the 
                project.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $100,000,000, to remain 
available until expended.

                          TITLE VI--USER FEES

SEC. 601. USER FEES.

    (a) Liquefied Natural Gas.--Clause (ii) of section 4041(a)(2)(B) is 
amended by striking ``24.3 cents per gallon'' and inserting ``the sum 
of the Highway Trust Fund financing rate and the Natural Gas 
Transportation Incentives financing rate''.
    (b) Compressed Natural Gas.--The second sentence of subparagraph 
(A) of section 4041(a)(3) is amended by striking ``18.3 cents per 
energy equivalent of a gallon of gasoline'' and inserting ``the sum of 
the Highway Trust Fund financing rate and the Natural Gas 
Transportation Incentives financing rate''.
    (c) Highway Trust Fund Financing Rate and Natural Gas 
Transportation Incentives Financing Rate.--Subsection (a) of section 
4041 is amended by adding at the end the following new paragraph:
            ``(4) Highway trust fund financing rate and natural gas 
        transportation incentives financing rate.--For purposes of this 
        title--
                    ``(A) Highway trust fund financing rate.--The term 
                `Highway Trust Fund financing rate' means--
                            ``(i) with respect to liquefied natural 
                        gas, 24.3 cents per gallon, and
                            ``(ii) with respect to compressed natural 
                        gas, 18.3 cents per energy equivalent of a 
                        gallon of gasoline.
                    ``(B) Natural gas transportation incentives 
                financing rate.--
                            ``(i) In general.--The term `Natural Gas 
                        Transportation Incentives financing rate' 
                        means--
                                    ``(I) with respect to liquefied 
                                natural gas, the applicable amount per 
                                gallon, and
                                    ``(II) with respect to compressed 
                                natural gas, the applicable amount per 
                                energy equivalent of a gallon of 
                                gasoline.
                            ``(ii) Applicable amount.--For purposes of 
                        clause (i), the applicable amount shall be 
                        determined in accordance with the following 
                        table:


------------------------------------------------------------------------
                                                              Applicable
                      ``Calendar year                           amount
------------------------------------------------------------------------
2014.......................................................    2.5 cents
2015.......................................................    2.5 cents
2016.......................................................      5 cents
2017.......................................................      5 cents
2018.......................................................     10 cents
2019.......................................................     10 cents
2020.......................................................   12.5 cents
2021.......................................................   12.5 cents
2022 and thereafter........................................        zero.
------------------------------------------------------------------------

                            ``(iii) Exemption for fuel dispensed from 
                        certain property.--In the case of liquefied 
                        natural gas or compressed natural gas dispensed 
                        from property for which a credit under section 
                        30C(b)(3) would be allowable, the applicable 
                        amount for any calendar year is zero.''.
    (d) Natural Gas Transportation Incentives Financing Rate Deposited 
in General Fund.--Paragraph (4) of section 9503 is amended by striking 
``or'' at the end of subparagraph (C), by striking the period at the 
end of subparagraph (D)(iii) and inserting ``or'', and by adding at the 
end the following new subparagraph:
                    ``(E) section 4041 to the extent attributable to 
                the Natural Gas Transportation Incentives financing 
                rate.''.
                                 <all>