[Congressional Record Volume 155, Number 97 (Thursday, June 25, 2009)]
[Senate]
[Pages S7074-S7076]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. PRYOR (for himself and Mr. Inhofe):
  S. 1350. A bill to encourage increased production of natural gas and 
liquified petroleum gas vehicles and to provide tax incentives for 
natural gas and liquefied petroleum gas vehicle infrastructure, and for 
other purposes; to the Committee on Finance.
  Mr. PRYOR. Mr. President, I rise today along with Senator Inhofe to 
introduce the Fueling America Act of 2009 which will provide incentives 
for the production and use of natural gas and propane vehicles 
throughout the United States.
  In response to high gasoline and diesel fuel prices, consumers have 
become more interested in alternative fuel vehicles that run on natural 
gas or propane. These vehicles and aftermarket conversion kits have 
been available for years, but they have been used mostly in government 
and private fleets. Very few have been purchased and used by consumers. 
Larger natural gas and propone vehicles are often used for clean-
burning transit buses and delivery trucks.
  Natural gas and propane are clean, cost-effective alternative fuel 
choices. Two important potential benefits of increasing the supply of 
natural gas and propane vehicles are energy security and reduced 
pollutant and greenhouse gas emissions than comparable gasoline or 
diesel vehicles. Compared with conventional vehicles, natural gas 
vehicles produce only 5 to 10 percent of allowable emissions, which 
means far less greenhouse gases.
  Thanks to new drilling technologies that are unlocking substantial 
amounts of natural gas from shale rocks, the nation's estimated gas 
reserves have surged by 35 percent, according to a study released last 
week. The report by the Potential Gas Committee, the authority on gas 
supplies, shows the United States holds far larger reserves than 
previously thought. Estimated natural gas reserves rose to 2,074 
trillion cubic feet in 2008, from 1,532 trillion cubic feet in 2006, 
when the last report was issued.
  Increasing the production of natural gas and propane vehicles for 
both individual and public transportation will provide a huge boost for 
Arkansas'

[[Page S7075]]

economy and job growth. Arkansas, with its abundant natural gas 
resources, has the capability to be a leader in the alternative energy 
sector and the fight to reduce our country's dependence on foreign oil. 
Developing the natural gas vehicle and propane industry will help 
Arkansas' natural gas producers grow and thrive, boosting the State's 
economy. In Arkansas, the Fayetteville Shale is proving to be a major 
new find of domestic natural gas. The Center for Business and Economic 
Research at the University of Arkansas estimates that this shale play 
will result in about $17.9 billion in economic stimulus and 11,000 jobs 
for the State.
  Natural gas and propane vehicles are more fuel efficient and 
environmentally friendly than their gasoline counterparts, but right 
now their high cost and lack of infrastructure, such as refueling 
stations, make them an unrealistic option for the average American. 
Since the number of natural gas refueling stations is limited only 
about 400 to 500 publicly available nationwide, compared to roughly 
120,000 retail gasoline stations the purchaser of a new natural gas 
vehicle would likely also install a home refueling system. According to 
NGVAmerica, a typical home system costs roughly $4,500 plus 
installation.
  The Fueling America Act of 2009 will establish a research, 
development and demonstration program at the Department of Energy to 
improve cleaner, more efficient natural gas and propane vehicle 
engines, on-board storage systems, and fueling station infrastructure; 
require the GSA to report on whether the Federal fleet should increase 
the number of natural gas and propane vehicles; extend the Clean School 
Bus Program through 2014; extend tax credits for natural gas and 
propane refueling property; and extend and increase the consumer tax 
credit for the purchase of natural gas, propane and bi-fuel vehicles.
  The Fueling America Act will make it easier and more practical for 
people to buy these clean, green vehicles. This bill will provide 
incentives for consumers and industry to purchase new natural gas and 
propane vehicles, as well as aftermarket conversion kits. At the same 
time, America can become less dependent on foreign oil, utilize our 
ample domestic natural gas resources, and create a cleaner environment.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1350

       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''; and
       (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

[[Page S7076]]

     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.
                                 ______