American Fuels Act of 2006 - Establishes in the Executive Office of the President the Office of Energy Security to oversee all federal energy security programs, including the coordination of efforts of federal agencies to assist the United States in achieving full energy independence.
Amends the Internal Revenue Code to provide: (1) a tax credit for production of qualified flexible fuel motor vehicles, including allowance of the credit against the alternative minimum tax; and (2) an alternative fuel retail sales credit.
Amends the Clean Air Act to direct the Administrator of the Environmental Protection Agency to promulgate regulations to ensure that diesel sold or introduced into commerce in the United States, on an annual average basis, contains the applicable volume of alternative diesel fuel.
Requires such regulations to provide for the generation of an appropriate amount of credits by any person that refines, blends, or imports diesel that contains a quantity of alternative diesel fuel greater than prescribed quantities.
Amends the Internal Revenue Code to extend the alcohol fuel mixture excise tax credit to cellulosic biomass ethanol.
Amends the Energy Policy Act of 1992 to include within the term alternative fueled vehicle a medium or heavy duty hybrid vehicle.
Sets a deadline by which: (1) any federal property with at least one fuel refueling station must include at least one alternative fuel refueling station; and (2) any alternative fuel refueling station on federally-owned property must permit full public access for the purpose of refueling using alternative fuel.
Amends federal transportation law to require that any bus purchased with funds from the Mass Transit Account of the Highway Trust Fund to be a clean fuel bus.
Requires the Secretary of Defense to implement a program to evaluate the commercial and technical viability of advanced technologies for the production of alternative transportation fuels having applications for the Department of Defense.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2446 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 2446
To promote the national security and stability of the economy of the
United States by reducing the dependence of the United States on oil
through the use of alternative fuels and new technology, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 16 (legislative day, March 15), 2006
Mr. Obama (for himself and Mr. Lugar) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To promote the national security and stability of the economy of the
United States by reducing the dependence of the United States on oil
through the use of alternative fuels and new technology, 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.
This Act may be cited as the ``American Fuels Act of 2006''.
SEC. 2. OFFICE OF ENERGY SECURITY.
(a) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
Energy Security appointed under subsection (c)(1).
(2) Office.--The term ``Office'' means the Office of Energy
Security established by subsection (b).
(b) Establishment.--There is established in the Executive Office of
the President the Office of Energy Security.
(c) Director.--
(1) In general.--The Office shall be headed by a Director,
who shall be appointed by the President, by and with the advice
and consent of the Senate.
(2) Rate of pay.--The Director shall be paid at a rate of
pay equal to level I of the Executive Schedule under section
5312 of title 5, United States Code.
(d) Responsibilities.--
(1) In general.--The Office, acting through the Director,
shall be responsible for overseeing all Federal energy security
programs, including the coordination of efforts of Federal
agencies to assist the United States in achieving full energy
independence.
(2) Specific responsibilities.--In carrying out paragraph
(1), the Director shall--
(A) serve as head of the energy community;
(B) act as the principal advisor to the President,
the National Security Council, the National Economic
Council, the Domestic Policy Council, and the Homeland
Security Council with respect to intelligence matters
relating to energy security;
(C) with request to budget requests and
appropriations for Federal programs relating to energy
security--
(i) consult with the President and the
Director of the Office of Management and Budget
with respect to each major Federal budgetary
decision relating to energy security of the
United States;
(ii) based on priorities established by the
President, provide to the heads of departments
containing agencies or organizations within the
energy community, and to the heads of such
agencies and organizations, guidance for use in
developing the budget for Federal programs
relating to energy security;
(iii) based on budget proposals provided to
the Director by the heads of agencies and
organizations described in clause (ii), develop
and determine an annual consolidated budget for
Federal programs relating to energy security;
and
(iv) present the consolidated budget,
together with any recommendations of the
Director and any heads of agencies and
organizations described in clause (ii), to the
President for approval;
(D) establish and meet regularly with a council of
business and labor leaders to develop and provide to
the President and Congress recommendations relating to
the impact of energy supply and prices on economic
growth;
(E) submit to Congress an annual report that
describes the progress of the United States toward the
goal of achieving full energy independence; and
(F) carry out such other responsibilities as the
President may assign.
(e) Staff.--
(1) In general.--The Director may, without regard to the
civil service laws (including regulations), appoint and
terminate such personnel as are necessary to enable the
Director to carry out the responsibilities of the Director
under this section.
(2) Compensation.--
(A) In general.--Except as provided in subparagraph
(B), the Director may fix the compensation of personnel
without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United States
Code, relating to classification of positions and
General Schedule pay rates.
(B) Maximum rate of pay.--The rate of pay for the
personnel appointed by the Director shall not exceed
the rate payable for level V of the Executive Schedule
under section 5316 of title 5, United States Code.
(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 3. CREDIT FOR PRODUCTION OF QUALIFIED FLEXIBLE FUEL MOTOR
VEHICLES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45N. PRODUCTION OF QUALIFIED FLEXIBLE FUEL MOTOR VEHICLES.
``(a) Allowance of Credit.--For purposes of section 38, the
qualified flexible fuel motor vehicle production credit determined
under this section for any taxable year is an amount equal to $100 for
each qualified flexible fuel motor vehicle produced in the United
States by the manufacturer during the taxable year.
``(b) Qualified Flexible Fuel Motor Vehicle.--For purposes of this
section, the term `qualified flexible fuel motor vehicle' means a
flexible fuel motor vehicle--
``(1) the production of which is not required for the
manufacturer to meet--
``(A) the maximum credit allowable for vehicles
described in paragraph (2) in determining the fleet
average fuel economy requirements (as determined under
section 32904 of title 49, United States Code) of the
manufacturer for the model year ending in the taxable
year, or
``(B) the requirements of any other provision of
Federal law, and
``(2) which is designed so that the vehicle is propelled by
an engine which can use as a fuel a gasoline mixture of which
85 percent (or another percentage of not less than 70 percent,
as the Secretary may determine, by rule, to provide for
requirements relating to cold start, safety, or vehicle
functions) of the volume of consists of ethanol.
``(c) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Motor vehicle.--The term `motor vehicle' has the
meaning given such term by section 30(c)(2).
``(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.).
``(3) Reduction in basis.--For purposes of this subtitle,
if a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of such
property which would (but for this paragraph) result from such
expenditure shall be reduced by the amount of the credit so
allowed.
``(4) No double benefit.--The amount of any deduction or
credit allowable under this chapter (other than the credits
allowable under this section and section 30B) shall be reduced
by the amount of credit allowed under subsection (a) for such
vehicle for the taxable year.
``(5) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(6) Termination.--This section shall not apply to any
vehicle produced after December 31, 2010.
``(7) Cross reference.--For an election to claim certain
minimum tax credits in lieu of the credit determined under this
section, see section 53(e).''.
(b) Credit Allowed Against the Alternative Minimum Tax.--Section
38(c)(4)(B) of the Internal Revenue Code of 1986 (defining specified
credits) is amended by striking the period at the end of clause
(ii)(II) and inserting ``, and'', and by adding at the end the
following new clause:
``(iii) the credit determined under section
45N.''.
(c) Election to Use Additional AMT Credit.--Section 53 of the
Internal Revenue Code of 1986 (relating to credit for prior year
minimum tax liability) is amended by adding at the end the following
new subsection:
``(e) Additional Credit in Lieu of Flexible Fuel Motor Vehicle
Credit.--
``(1) In general.--In the case of a taxpayer making an
election under this subsection for a taxable year, the amount
otherwise determined under subsection (c) shall be increased by
any amount of the credit determined under section 45N for such
taxable year which the taxpayer elects not to claim pursuant to
such election.
``(2) Election.--A taxpayer may make an election for any
taxable year not to claim any amount of the credit allowable
under section 45N with respect to property produced by the
taxpayer during such taxable year. An election under this
subsection may only be revoked with the consent of the
Secretary.
``(3) Credit refundable.--The aggregate increase in the
credit allowed by this section for any taxable year by reason
of this subsection shall for purposes of this title (other than
subsection (b)(2) of this section) be treated as a credit
allowed to the taxpayer under subpart C.''.
(d) Conforming Amendments.--Section 38(b) of the Internal Revenue
Code of 1986 is amended by striking ``and'' at the end of paragraph
(29), by striking the period at the end of paragraph (30) and inserting
a comma, and by adding at the end the following new paragraph:
``(31) the qualified flexible fuel motor vehicle production
credit determined under section 45N, plus''.
(e) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 45N. Production of qualified flexible fuel motor
vehicles.''.
(f) Effective Date.--The amendments made by this section shall
apply to motor vehicles produced in model years ending after the date
of the enactment of this Act.
SEC. 4. INCENTIVES FOR THE RETAIL SALE OF ALTERNATIVE FUELS AS MOTOR
VEHICLE FUEL.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business related
credits) is amended by inserting after section 40A the following new
section:
``SEC. 40B. CREDIT FOR RETAIL SALE OF ALTERNATIVE FUELS AS MOTOR
VEHICLE FUEL.
``(a) General Rule.--The alternative fuel retail sales credit for
any taxable year is the applicable amount for each gallon of
alternative fuel sold at retail by the taxpayer during such year.
``(b) Applicable Amount.--For purposes of this section, the
applicable amount shall be determined in accordance with the following
table:
``In the case of The applicable amount
any sale: for each gallon is:
Before 2009................................... 35 cents
During 2009 or 2010........................... 20 cents
During 2011................................... 10 cents.
``(c) Definitions.--For purposes of this section--
``(1) Alternative fuel.--The term `alternative fuel' means
any fuel at least 85 percent (or another percentage of not less
than 70 percent, as the Secretary may determine, by rule, to
provide for requirements relating to cold start, safety, or
vehicle functions) of the volume of which consists of ethanol.
``(2) Sold at retail.--
``(A) In general.--The term `sold at retail' means
the sale, for a purpose other than resale, after
manufacture, production, or importation.
``(B) Use treated as sale.--If any person uses
alternative fuel (including any use after importation)
as a fuel to propel any qualified alternative fuel
motor vehicle (as defined in this section) before such
fuel is sold at retail, then such use shall be treated
in the same manner as if such fuel were sold at retail
as a fuel to propel such a vehicle by such person.
``(3) Qualified alternative fuel motor vehicle.--The term
`new qualified alternative fuel motor vehicle' means any motor
vehicle--
``(A) which is capable of operating on an
alternative fuel,
``(B) the original use of which commences with the
taxpayer,
``(C) which is acquired by the taxpayer for use or
lease, but not for resale, and
``(D) which is made by a manufacturer.
``(d) Election To Pass Credit.--A person which sells alternative
fuel at retail may elect to pass the credit allowable under this
section to the purchaser of such fuel or, in the event the purchaser is
a tax-exempt entity or otherwise declines to accept such credit, to the
person which supplied such fuel, under rules established by the
Secretary.
``(e) Pass-Thru in the Case of Estates and Trusts.--Under
regulations prescribed by the Secretary, rules similar to the rules of
subsection (d) of section 52 shall apply.
``(f) Termination.--This section shall not apply to any fuel sold
at retail after December 31, 2011.''.
(b) Credit Treated as Business Credit.--Section 38(b) of the
Internal Revenue Code of 1986 (relating to current year business
credit) (as amended by section 3(d)) is amended by adding at the end
the following new paragraph:
``(32) the alternative fuel retail sales credit determined
under section 40B(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 40A the
following new item:
``Sec. 40B. Credit for retail sale of alternative fuels as
motor vehicle fuel.''.
(d) Effective Date.--The amendments made by this section shall
apply to fuel sold at retail after the date of enactment of this Act,
in taxable years ending after such date.
SEC. 5. ALTERNATIVE DIESEL FUEL CONTENT OF DIESEL.
(a) Findings.--Congress finds that--
(1) section 211(o) of the Clean Air Act (42 U.S.C. 7535(o))
(as amended by section 1501 of the Energy Policy Act of 2005
(Public Law 109-58)) established a renewable fuel program under
which entities in the petroleum sector are required to blend
renewable fuels into motor vehicle fuel based on the gasoline
motor pool;
(2) the need for energy diversification is greater as of
the date of enactment of this Act than it was only months
before the date of enactment of the Energy Policy Act (Public
Law 109-58; 119 Stat. 594); and
(3)(A) the renewable fuel program under section 211(o) of
the Clean Air Act requires a small percentage of the gasoline
motor pool, totaling nearly 140,000,000,000 gallons, to contain
a renewable fuel; and
(B) the small percentage requirement described in
subparagraph (A) does not include the 40,000,000,000-gallon
diesel motor pool.
(b) Alternative Diesel Fuel Program for Diesel Motor Pool.--Section
211 of the Clean Air Act (42 U.S.C. 7545) is amended by inserting after
subsection (o) the following:
``(p) Alternative Diesel Fuel Program for Diesel Motor Pool.--
``(1) Definition of alternative diesel fuel.--
``(A) In general.--In this subsection, the term
`alternative diesel fuel' means biodiesel (as defined
in section 312(f) of the Energy Policy Act of 1992 (42
U.S.C. 13220(f))) and any blending components derived
from alternative fuel (provided that only the
alternative fuel portion of any such blending component
shall be considered to be part of the applicable volume
under the alternative diesel fuel program established
by this subsection).
``(B) Inclusions.--The term `alternative diesel
fuel' includes a diesel fuel substitute produced from--
``(i) animal fat;
``(ii) vegetable oil;
``(iii) recycled yellow grease;
``(iv) thermal depolymerization;
``(v) thermochemical conversion;
``(vi) the coal-to-liquid process
(including the Fischer-Tropsch process); or
``(vii) a diesel-ethanol blend of not less
than 7 percent ethanol.
``(2) Alternative diesel fuel program.--
``(A) Regulations.--
``(i) In general.--Not later than 1 year
after the date of enactment of this subsection,
the Administrator shall promulgate regulations
to ensure that diesel sold or introduced into
commerce in the United States (except in
noncontiguous States or territories), on an
annual average basis, contains the applicable
volume of alternative diesel fuel determined in
accordance with subparagraph (B).
``(ii) Provisions of regulations.--
Regardless of the date of promulgation, the
regulations promulgated under clause (i)--
``(I) shall contain compliance
provisions applicable to refineries,
blenders, distributors, and importers,
as appropriate, to ensure that the
requirements of this paragraph are met;
but
``(II) shall not--
``(aa) restrict geographic
areas in which alternative
diesel fuel may be used; or
``(bb) impose any per-
gallon obligation for the use
of alternative diesel fuel.
``(iii) Requirement in case of failure to
promulgate regulations.--If the Administrator
fails to promulgate regulations under clause
(i), the percentage of alternative diesel fuel
in the diesel motor pool sold or dispensed to
consumers in the United States, on a volume
basis, shall be 0.6 percent for calendar year
2008.
``(B) Applicable volume.--
``(i) Calendar years 2008 through 2015.--
For the purpose of subparagraph (A), the
applicable volume for any of calendar years
2008 through 2015 shall be determined in
accordance with the following table:
``Applicable volume of Alternative Calendar year:
diesel fuel in diesel motor
pool (in millions of
gallons):
250........................................... 2008
500........................................... 2009
750........................................... 2010
1,000......................................... 2011
1,250......................................... 2012
1,500......................................... 2013
1,750......................................... 2014
2,000......................................... 2015.
``(ii) Calendar year 2016 and thereafter.--
The applicable volume for calendar year 2016
and each calendar year thereafter shall be
determined by the Administrator, in
coordination with the Secretary of Agriculture
and the Secretary of Energy, based on a review
of the implementation of the program during
calendar years 2008 through 2015, including a
review of--
``(I) the impact of the use of
alternative diesel fuels on the
environment, air quality, energy
security, job creation, and rural
economic development; and
``(II) the expected annual rate of
future production of alternative diesel
fuels to be used as a blend component
or replacement to the diesel motor
pool.
``(iii) Minimum applicable volume.--For the
purpose of subparagraph (A), the applicable
volume for calendar year 2016 and each calendar
year thereafter shall be equal to the product
obtained by multiplying--
``(I) the number of gallons of
diesel that the Administrator estimates
will be sold or introduced into
commerce during the calendar year; and
``(II) the ratio that--
``(aa) 2,000,000,000
gallons of alternative diesel
fuel; bears to
``(bb) the number of
gallons of diesel sold or
introduced into commerce during
calendar year 2015.
``(3) Applicable percentages.--
``(A) Provision of estimate of volumes of diesel
sales.--Not later than October 31 of each of calendar
years 2007 through 2015, the Administrator of the
Energy Information Administration shall provide to the
Administrator an estimate, with respect to the
following calendar year, of the volumes of diesel
projected to be sold or introduced into commerce in the
United States.
``(B) Determination of applicable percentages.--
``(i) In general.--Not later than November
30 of each of calendar years 2008 through 2015,
based on the estimate provided under
subparagraph (A), the Administrator shall
determine and publish in the Federal Register,
with respect to the following calendar year,
the alternative diesel fuel obligation that
ensures that the requirements of paragraph (2)
are met.
``(ii) Required elements.--The alternative
diesel fuel obligation determined for a
calendar year under clause (i) shall--
``(I) be applicable to refineries,
blenders, and importers, as
appropriate;
``(II) be expressed in terms of a
volume percentage of diesel sold or
introduced into commerce in the United
States; and
``(III) subject to subparagraph
(C), consist of a single applicable
percentage that applies to all
categories of persons described in
subclause (I).
``(C) Adjustments.--In determining the applicable
percentage for a calendar year, the Administrator shall
make adjustments to prevent the imposition of redundant
obligations on any person described in subparagraph
(B)(ii)(I).
``(4) Credit program.--
``(A) In general.--The regulations promulgated
pursuant to paragraph (2)(A) shall provide for the
generation of an appropriate amount of credits by any
person that refines, blends, or imports diesel that
contains a quantity of alternative diesel fuel that is
greater than the quantity required under paragraph (2).
``(B) Use of credits.--A person that generates a
credit under subparagraph (A) may use the credit, or
transfer all or a portion of the credit to another
person, for the purpose of complying with regulations
promulgated pursuant to paragraph (2).
``(C) Duration of credits.--A credit generated
under this paragraph shall be valid during the 1-year
period beginning on the date on which the credit is
generated.
``(D) Inability to generate or purchase sufficient
credits.--The regulations promulgated pursuant to
paragraph (2)(A) shall include provisions allowing any
person that is unable to generate or purchase
sufficient credits under subparagraph (A) to meet the
requirements of paragraph (2) by carrying forward a
credit generated during a previous year on the
condition that the person, during the calendar year
following the year in which the alternative diesel fuel
deficit is created--
``(i) achieves compliance with the
alternative diesel fuel requirement under
paragraph (2); and
``(ii) generates or purchases additional
credits under subparagraph (A) to offset the
deficit of the previous year.
``(5) Waivers.--
``(A) In general.--The Administrator, in
consultation with the Secretary of Agriculture and the
Secretary of Energy, may waive the requirements of
paragraph (2) in whole or in part on receipt of a
petition of 1 or more States by reducing the national
quantity of alternative diesel fuel for the diesel
motor pool required under paragraph (2) based on a
determination by the Administrator, after public notice
and opportunity for comment, that--
``(i) implementation of the requirement
would severely harm the economy or environment
of a State, a region, or the United States; or
``(ii) there is an inadequate domestic
supply of alternative diesel fuel.
``(B) Petitions for waivers.--Not later than 90
days after the date on which the Administrator receives
a petition under subparagraph (A), the Administrator,
in consultation with the Secretary of Agriculture and
the Secretary of Energy, shall approve or disapprove
the petition.
``(C) Termination of waivers.--
``(i) In general.--Except as provided in
clause (ii), a waiver under subparagraph (A)
shall terminate on the date that is 1 year
after the date on which the waiver is provided.
``(ii) Exception.--The Administrator, in
consultation with the Secretary of Agriculture
and the Secretary of Energy, may extend a
waiver under subparagraph (A), as the
Administrator determines to be appropriate.''.
(c) Penalties and Enforcement.--Section 211(d) of the Clean Air Act
(42 U.S.C. 7545(d)) is amended--
(1) in paragraph (1), by striking ``or (o)'' each place it
appears and inserting ``(o), or (p)''; and
(2) in paragraph (2), by striking ``and (o)'' each place it
appears and inserting ``(o), and (p)''.
(d) Technical Amendments.--Section 211 of the Clean Air Act (42
U.S.C. 7545) is amended--
(1) in subsection (i)(4), by striking ``section 324'' each
place it appears and inserting ``section 325'';
(2) in subsection (k)(10), by indenting subparagraphs (E)
and (F) appropriately;
(3) in subsection (n), by striking ``section 219(2)'' and
inserting ``section 216(2)'';
(4) by redesignating the second subsection (r) and
subsection (s) as subsections (s) and (t), respectively; and
(5) in subsection (t)(1) (as redesignated by paragraph
(4)), by striking ``this subtitle'' and inserting ``this
part''.
SEC. 6. EXCISE TAX CREDIT FOR CELLULOSIC BIOMASS ETHANOL.
(a) In General.--Paragraph (2) of section 6426(b) of the Internal
Revenue Code of 1986 (relating to alcohol fuel mixture credit) is
amended by adding at the end the following new subparagraph:
``(C) Cellulosic biomass ethanol.--In the case of
an alcohol fuel mixture consisting of cellulosic
biomass ethanol (as defined in section 211(o)(1)(A) of
the Clean Air Act), the applicable amount is equal to
the product of--
``(i) the amount specified in subparagraph
(A), times
``(ii) the equivalent number of gallons of
renewable fuel specified in section 211(o)(4)
of such Act.''.
(b) Conforming Amendment.--Section 6426(b)(2)(A) of such Code is
amended by striking ``subparagraph (B)'' and inserting ``subparagraphs
(B) and (C)''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after the date of the enactment of this Act.
SEC. 7. INCENTIVE FOR FEDERAL AND STATE FLEETS FOR MEDIUM AND HEAVY
DUTY HYBRIDS.
Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is
amended--
(1) in paragraph (3), by striking ``or a dual fueled
vehicle'' and inserting ``, a dual fueled vehicle, or a medium
or heavy duty vehicle that is a hybrid vehicle'';
(2) by redesignating paragraphs (11), (12), (13), and (14)
as paragraphs (12), (14), (15), and (16), respectively;
(3) by inserting after paragraph (10) the following:
``(11) the term `hybrid vehicle' means a vehicle powered
both by a diesel or gasoline engine and an electric motor that
is recharged as the vehicle operates;''; and
(4) by inserting after paragraph (12) (as redesignated by
paragraph (2)) the following:
``(13) the term `medium or heavy duty vehicle' means a
vehicle that--
``(A) in the case of a medium duty vehicle, has a
gross vehicle weight rating of more than 8,500 pounds
but not more than 14,000 pounds; and
``(B) in the case of a heavy duty vehicle, has a
gross vehicle weight rating of more than 14,000
pounds;''.
SEC. 8. PUBLIC ACCESS TO FEDERAL ALTERNATIVE REFUELING STATIONS.
(a) Definitions.--In this section:
(1) Alternative fuel refueling station.--The term
``alternative fuel refueling station'' has the meaning given
the term ``qualified alternative fuel vehicle refueling
property'' in section 30C(c)(1) of the Internal Revenue Code of
1986.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Access to Federal Alternative Refueling Stations.--Not later
than 18 months after the date of enactment of this Act--
(1) except as provided in subsection (d)(1), any Federal
property that includes at least 1 fuel refueling station shall
include at least 1 alternative fuel refueling station; and
(2) except as provided in subsection (d)(2), any
alternative fuel refueling station located on property owned by
the Federal government shall permit full public access for the
purpose of refueling using alternative fuel.
(c) Duration.--The requirements described in subsection (b) shall
remain in effect until the sooner of--
(1) the date that is 7 years after the date of enactment of
this Act; or
(2) the date on which the Secretary determines that not
less than 5 percent of the commercial refueling infrastructure
in the United States offers alternative fuels to the general
public.
(d) Exceptions.--
(1) Waiver.--Subsection (b)(1) shall not apply to any
Federal property under the jurisdiction of a Federal agency if
the Secretary determines that alternative fuel is not
reasonably available to retail purchasers of the fuel, as
certified by the head of the agency to the Secretary.
(2) National security exemption.--Subsection (b)(2) does
not apply to property of the Federal government that the
Secretary, in consultation with the Secretary of Defense, has
certified must be exempt for national security reasons.
(e) Verification of Compliance.--The Secretary shall--
(1) monitor compliance with this section by all Federal
agencies; and
(2) annually submit to Congress a report describing the
extent of compliance with this section.
SEC. 9. PURCHASE OF CLEAN FUEL BUSES.
(a) In General.--Chapter 53 of title 49, United States Code, is
amended by inserting after section 5325 the following:
``Sec. 5326. Purchase of clean fuel buses.
``(a) Definition of Clean Fuel Bus.--In this section, the term
`clean fuel bus' means a vehicle that--
``(1) is capable of being powered by--
``(A) compressed natural gas;
``(B) liquefied natural gas;
``(C) 1 or more batteries;
``(D) a fuel that is composed of at least 85
percent ethanol (or another percentage of not less than
70 percent, as the Secretary may determine, by rule, to
provide for requirements relating to cold start,
safety, or vehicle functions);
``(E) electricity (including a hybrid electric or
plug-in hybrid electric vehicle);
``(F) a fuel cell; or
``(G) ultra-low sulfur diesel; and
``(2) has been certified by the Administrator of the
Environmental Protection Agency to significantly reduce harmful
emissions, particularly in a nonattainment area (as defined in
section 171 of the Clean Air Act (42 U.S.C. 7501)).
``(b) Purchase of Buses.--A bus purchased using funds made
available from the Mass Transit Account of the Highway Trust Fund shall
be a clean fuel bus.''.
(b) Conforming Amendment.--The analysis for chapter 53 is amended
by inserting after the item relating to section 5325 the following:
``5326. Clean fuel buses.''.
SEC. 10. DOMESTIC FUELS INFRASTRUCTURE FOR THE DEPARTMENT OF DEFENSE.
(a) Program Required.--The Secretary of Defense shall carry out a
program to evaluate the commercial and technical viability of advanced
technologies for the production of alternative transportation fuels
having applications for the Department of Defense. The program shall
include the construction and operation of testing facilities in
accordance with subsection (d).
(b) Alternative Transportation Fuels Defined.--For purposes of this
section, the term ``alternative transportation fuels'' means--
(1) denatured ethanol and other alcohols;
(2) mixtures containing at least 85 percent (or another
percentage of not less than 70 percent, as the Secretary may
determine, by rule, to provide for requirements relating to
cold start, safety, or vehicle functions) by volume of
denatured ethanol, particularly ethanols derived from
cellulosic biomass;
(3) coal-derived liquid fuels, including Fischer-Tropsch
fuels;
(4) fuels (other than alcohol) derived from biological
materials, including fuels derived from vegetable oils, animal
fats, thermal depolymerization, or thermalchemical conversion;
and
(5) any other fuel the Secretary determines, by rule, is
substantially not petroleum and would yield substantial energy
security benefits and substantial environmental benefits.
(c) Coordination of Efforts.--
(1) In general.--The Secretary of Defense shall carry out
the program required by this section through the Under
Secretary of Defense for Acquisition, Technology, and Logistics
and in consultation with the Director of Defense Research and
Engineering, the Advanced Systems and Concepts Office, the
Secretary of Agriculture, and the Secretary of Energy.
(2) Role of biomass research and development technologic
advisory committee.--The consultations under paragraph (1)
shall include the participation of the Biomass Research and
Development Technical Advisory Committee established under
section 306 of the Biomass Research and Development Act of 2000
(title III of Public Law 106-224; 7 U.S.C. 8101 note).
(d) Facilities for Evaluating Production of Alternative
Transportation Fuels.--
(1) In general.--In carrying out the program required by
this section, the Secretary of Defense shall provide for the
construction or capital modification of--
(A) not more than 3 facilities for the purposes of
evaluating the production from cellulosic biomass of
alternative transportation fuels having applications
for the Department of Defense; and
(B) not more than 3 facilities for the purposes of
evaluating the production from coal of alternative
transportation fuels having applications for the
Department of Defense, with not less than one of such
facilities utilizing coal resources with a ranking by
the American Society for Testing and Materials of high
volatile bituminous B and C.
(2) Location of facilities.--The facilities constructed
under paragraph (1) for the purposes of cellulosic biomass
shall--
(A) afford the efficient use of a diverse range of
fuel sources; and
(B) give initial preference to existing domestic
facilities with current or potential capacity for
cellulose or coal conversion.
(3) Capacity of facilities.--Each facility constructed
under paragraph (1) shall have the flexibility for producing
commercial volumes of alternative transportation fuels such
that when the facility demonstrates economic viability of the
process it can provide commercial production for the region in
which it is located.
(4) Authority to enter into transactions for facility
construction.--The Secretary of Defense shall seek to construct
the facilities required by paragraph (1) at the lowest cost
practicable. The Secretary may make grants, enter into
agreements, and provide loans or loan guarantees to
corporations, cooperatives, and consortia of such entities for
such purposes.
(5) Evaluations at facilities.--Not later than 5 years
after the date of enactment of this Act, the Secretary of
Defense shall begin at the facilities described in paragraph
(1) evaluations of the technical and commercial viability of
different processes of producing alternative transportation
fuels having Department of Defense applications from cellulosic
biomass or coal.
(e) Program Milestones.--In carrying out the program required by
this section, the Secretary of Defense shall meet the following
milestones:
(1) Selection of testing processes.--Not later than 180
days after the date of enactment of this Act, the Secretary
shall select processes for evaluating the technical and
commercial viability of producing alternative fuels from
cellulosic biomass or coal.
(2) Initiation of work at existing facilities.--Not later
than one year after the date of enactment of this Act, the
Secretary shall enter into agreements to carry out testing
under this section at existing facilities.
(3) Construction agreements.--Not later than one year after
the date of enactment of this Act, the Secretary shall enter
into agreements for the capital modification or construction of
facilities under subsection (d)(1).
(4) Completion of engineering and design work.--Not later
than three years after the date of enactment of this Act, the
Secretary shall complete capital modifications of existing
facilities and the engineering and design work necessary for
the construction of new facilities under this section.
(f) Report on Program.--Not later than 18 months after the date of
enactment of this Act, and annually thereafter for the next 5 years,
the Secretary of Defense shall, in consultation with the Under
Secretary of Defense for Acquisition, Technology, and Logistics, submit
a report on the implementation and results of the program required by
this section to--
(1) the Committees on Armed Services, Energy and Natural
Resources, Agriculture, and Appropriations of the Senate; and
(2) the Committees on Armed Services, Energy and Commerce,
Agriculture, and Appropriations of the House of
Representatives.
(g) Funding.--
(1) In general.--Of the amounts authorized to be
appropriated under this section, $250,000,000 may be available
for the program required by this section for fiscal years 2007
through 2012.
(2) Availability.--Amounts available under paragraph (1)
shall remain available until expended.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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