S.Amdt. 1447

1. Adds SEC. 736. GRANTS TO INCREASE PRODUCTION OF ENGINES FOR HEAVY-DUTY CLEAN DIESEL TRUCKS at the end of title VII

   Adds a section

   Inserted: SEC. 736. GRANTS TO INCREASE PRODUCTION OF ENGINES FOR HEAVY-DUTY CLEAN DIESEL TRUCKS.

   Inserted: (a) Grants.--The Secretary of Energy (in this section referred to as the "Secretary") may award grants to heavy-duty engine manufacturers for the purpose of funding the early production of a higher number of heavy-duty diesel engines for field testing in 2007 emissions standard-compliant heavy-duty vehicles than would otherwise be produced.

   Inserted: (b) 2007 Emissions Standard-Compliant Heavy-Duty Vehicles.--For the purposes of this section, a 2007 emissions standard-compliant heavy-duty vehicle is a heavy-duty vehicle that is powered by a heavy-duty diesel engine and designed and manufactured to comply with the heavy-duty emission standards of 2007 (as that term is defined in section 734(c)).

   Inserted: (c) Use of Funds.--The Secretary may not award a grant to a heavy-duty engine manufacturer under this section unless the manufacturer agrees to use the grant--

   Inserted: (1) to produce, not later than June 30, 2006, new heavy-duty diesel engines for the field testing program; or

   Inserted: (2) to improve infrastructure related to the production of such engines.

   Inserted: (d) Application.--To seek a grant under this section, a heavy-duty engine manufacturer shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require.

   Inserted: (e) Guidelines for Award of Grants.--In the awarding of grants under this section, the following guidelines shall apply:

   Inserted: (1) Purpose.--The purpose of the grant program is to accelerate and increase the production of heavy-duty diesel engines for field testing in 2007 emissions standard-compliant heavy-duty vehicles.

   Inserted: (2) Progressively decreasing amounts of awards.--

   Inserted: (A) In general.--In order to encourage early production of such engines, the Secretary shall administer the grant program so as to provide higher amounts in grants awarded early in the program than the grants that are awarded later in the program.

   Inserted: (B) Delivery periods.--The Secretary shall divide the grant program into four successive periods for delivery of 2007 emissions standard-compliant heavy-duty vehicles, as follows:

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   Inserted: (i) Period I shall be the period beginning upon commencement of the pilot program and ending on December 31, 2004.

   Inserted: (ii) Period II shall be the period beginning on January 1, 2005, and ending on June 30, 2005.

   Inserted: (iii) Period III shall be the period beginning on July 1, 2005, and ending on December 31, 2005.

   Inserted: (iv) Period IV shall be the period beginning on January 1, 2006, and ending on June 30, 2006.

   Inserted: (C) Computation of total grant amount.--The amount of a grant for a recipient under the pilot program shall be the product of--

   Inserted: (i) an amount determined appropriate by the Secretary for each emissions standard-compliant heavy-duty vehicle that is powered by a heavy-duty diesel engine manufactured by the recipient and is delivered to user; and

   Inserted: (ii) the number of such vehicles that are delivered to users.

   Inserted: (D) Per vehicle amount.--The amount for each emissions standard-compliant heavy-duty vehicle shall be significantly higher for a vehicle that is delivered to the user in a period defined in subparagraph (B) than the amount for each such vehicle that is delivered to the user in the next successive period. The amount for each emissions standard-compliant heavy-duty vehicle that is delivered to the user in period IV shall be significantly lower than the amount for each such vehicle that is delivered to the user in period I. A vehicle delivered to the user after the end of period IV shall not be counted in the computation under subparagraph (C).

   Inserted: (3) Maximum amount per recipient.--No grant recipient may receive more than 30 percent of the total amount disbursed as grant proceeds under the grant program.

   Inserted: (f) Refund of Grant Proceeds.--

   Inserted: (1) In general.--The Secretary shall require a grant recipient to refund some or all of the grant proceeds the recipient received for the promise to manufacture a heavy-duty diesel engine for use in a 2007 emissions standard-compliant heavy-duty vehicle for delivery during a delivery period under subsection (e)(2)(B) if such vehicle is delivered later than the promised delivery period (in this section referred to as a "late delivery").

   Inserted: (2) Amount of refund.--The amount of grant proceeds refunded to the Secretary under paragraph (1) for a late delivery shall be--

   Inserted: (A) greater than or equal to the difference between--

   Inserted: (i) the amount that was awarded for the promise to deliver the vehicle during a delivery period under subsection (e)(2)(B); and

   Inserted: (ii) the amount that would have been awarded for the delivery of such vehicle during the period in which it was in fact delivered; and

   Inserted: (B) less than or equal to 100 percent of the amount awarded for the delivery of such vehicle.

   Inserted: (g) Award and Refund Criteria.--Not later than 120 days after the date of the enactment of this Act, the Secretary shall, in consultation with the Administrator, develop and publish the criteria for--

   Inserted: (1) awarding grants pursuant to the guidelines in subsection (e); and

   Inserted: (2) calculating the amount of grant proceeds required to be refunded under subsection (f) in connection with late deliveries.

   Inserted: (h) Consultation.--The Secretary shall consult with manufacturers of heavy-duty diesel engines to determine the costs associated with the accelerated and increased production of such engines for field testing purposes.

   Inserted: (i) Dissemination of Information.--The Secretary shall--

   Inserted: (1) in consultation with the Administrator, determine whether and how to share information regarding the performance of heavy-duty diesel engines developed and tested under the grant program, including information regarding durability, maintenance, and fuel economy; and

   Inserted: (2) publish the rationale for such determination in the Federal Register.

   Inserted: (j) Definitions.--In this section:

   Inserted: (1) Administrator.--The term "Administrator" means the Administrator of the Environmental Protection Agency.

   Inserted: (2) Field testing.--The term "field testing" means the testing prior to mass production of 2007 emissions standard-compliant heavy-duty vehicles by fleets in coordination with heavy-duty diesel engine manufacturers.

   Inserted: (3) Heavy-duty diesel engine.--The term "heavy-duty diesel engine" means a diesel engine used to power a truck that is operated on public streets, roads, or highways and has a gross vehicle weight rating in excess of 8,500 pounds.

   Inserted: (4) Heavy-duty diesel engine manufacturer.--The term "heavy-duty diesel engine manufacturer" means, with respect to a heavy-duty diesel engine, the company of record holding the engine certification issued by the United States for the manufacture of such engine.

   Inserted: (k) Authorization of Appropriations.--There are authorized to be appropriated such sums as may be necessary to carry out the grant program under this section.

   Inserted: Subtitle D--Advanced Clean Vehicle Demonstration Program SEC. 741. DEFINITIONS.

   Inserted: In this subtitle:

   Inserted: (1) Alternative fueled vehicle.--The term "alternative fueled vehicle" means a vehicle propelled solely on an alternative fuel as defined in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211), except the term does not include any vehicle that the Secretary determines, by rule, does not yield substantial environmental benefits over a vehicle operating solely on gasoline or diesel derived from fossil fuels.

   Inserted: (2) Fuel cell vehicle.--The term "fuel cell vehicle" means a vehicle propelled by an electric motor powered by a fuel cell system that converts chemical energy into electricity by combining oxygen (from air) with hydrogen fuel that is stored on the vehicle or is produced onboard by reformation of a hydrocarbon fuel. Such a fuel cell system may, but is not required to, include the use of auxiliary energy storage systems to enhance vehicle performance.

   Inserted: (3) Hybrid vehicle.--The term "hybrid vehicle" means--

   Inserted: (A) a motor vehicle that draws propulsion energy from onboard sources of stored energy that are both--

   Inserted: (i) an internal combustion or heat engine using combustible fuel; and

   Inserted: (ii) a rechargeable energy storage system; and

   Inserted: (B) any other vehicle that is defined as a hybrid vehicle in regulations prescribed by the Secretary of Energy for the administration of title III of the Energy Policy Act of 1992.

   Inserted: (4) Neighborhood electric vehicle.--The term "neighborhood electric vehicle" means a motor vehicle capable of traveling at speeds of 25 miles per hour that is--

   Inserted: (A) a low-speed vehicle, as such term is defined in section 571.3(b) of title 49, Code of Federal Regulations;

   Inserted: (B) a zero-emission vehicle, as such term is defined in section 86.1702-99 of title 40, Code of Federal Regulations; and

   Inserted: (C) otherwise lawful to use on local streets.

   Inserted: (5) Pilot program.--The term "pilot program" means the competitive grant program established under section 742.

   Inserted: (6) State.--The term "State" includes the District of Columbia and the Commonwealth of Puerto Rico.

   Inserted: (7) Ultra-low sulfur diesel vehicle.--The term "ultra-low sulfur diesel vehicle" means a vehicle manufactured in model year 2002, 2003, 2004, 2005, or 2006 powered by a heavy-duty diesel engine that--

   Inserted: (A) is fueled by diesel fuel which contains sulfur at not more than 15 parts per million; and

   Inserted: (B) emits not more than the lesser of--

   Inserted: (i) for vehicles manufactured in--

   Inserted: (I) model years 2002 and 2003, 3.0 grams per brake horsepower-hour of oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; and

   Inserted: (II) model years 2004 through 2006, 2.5 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; or

   Inserted: (ii) the emissions of nonmethane hydrocarbons, oxides of nitrogen, and particulate matter of the best performing technology of ultra-low sulfur diesel vehicles of the same class and application that are commercially available.

   Inserted: SEC. 742. GRANT PILOT PROGRAM.

   Inserted: (a) Requirement for Program.--The Secretary of Energy shall establish a competitive grant pilot program to provide project grants to eligible recipients to carry out a project or projects for the purposes described in subsection (c).

   Inserted: (b) Eligible Recipients.--The following entities are eligible to receive a grant under the pilot program:

   Inserted: (1) A State government.

   Inserted: (2) The government of a political subdivision of a State.

   Inserted: (3) Any person other than an individual.

   Inserted: (4) Any combination of entities described in paragraphs (1), (2), and (3), acting together to carry out one or more projects for the purposes described in subsection (c).

   Inserted: (c) Grant Purposes.--Grants under this section may be used for the following purposes:

   Inserted: (1) The acquisition of qualified alternative fueled vehicles or fuel cell vehicles for routine operation in service normal for motor vehicles, including (among other vehicles)--

   Inserted: (A) passenger vehicles, including neighborhood electric vehicles; and

   Inserted: (B) motorized two-wheel bicycles, scooters, or other vehicles for use by law enforcement personnel or other State or local government or metropolitan transportation authority employees.

   Inserted: (2) The acquisition of qualified alternative fueled vehicles, hybrid vehicles, or fuel cell vehicles for regular and routine operation in service normal for motor vehicles, including (among other vehicles)--

   Inserted: (A) buses used for public transportation or transportation to and from schools;

   Inserted: (B) delivery vehicles for goods or services;

   Inserted: (C) ground support vehicles at public airports, including vehicles to carry baggage or push airplanes away from terminal gates; and

   Inserted: (D) vehicles used for the collection of recyclable garbage or other garbage.

   Inserted: (3) The acquisition of ultra-low sulfur diesel vehicles for regular and routine operation in service normal for motor vehicles.

   Inserted: (4) Infrastructure necessary to directly support an alternative fueled vehicle, fuel cell vehicle, or hybrid vehicle project funded by the grant, including fueling and other support equipment.

   Inserted: (5) Operation and maintenance of vehicles, infrastructure, and equipment acquired as part of a project funded by the grant.

   Inserted: (d) Qualified Vehicles.--An alternative fueled vehicle, hybrid vehicle, or fuel cell vehicle is qualified for the purposes of subsection (c) if--

   Inserted: (1) in the case of a vehicle to which an emission standard applies under law, the emissions resulting from the operation of such vehicle are less than the applicable standard; or

   Inserted: (2) in the case of any gasoline-consuming motor vehicle, the fuel economy of such vehicle (as defined in section 32901(a) of title 49, United States Code) exceeds by at least 25 percent the average fuel economy standard applicable to the vehicle under chapter 329 of title 49, United States Code.

   Inserted: (e) Applications.--

   Inserted: (1) Requirements.--The Secretary shall prescribe the requirements for applying for grants under the pilot program. At a minimum, the Secretary shall require that applications include, for each project proposed in the application, the following:

   Inserted: (A) A description of the project, including how the project meets the requirements of this subtitle.

   Inserted: (B) An estimate of the ridership or degree of use of the project.

   Inserted: (C) An estimate of the air pollution emissions reduced and fossil fuel displaced as a result of the project, together with a plan to collect and disseminate environmental data, related to the project over the expected life of the project.

   Inserted: (D) A description of how the project is to be sustainable without Federal assistance after the completion of the term of the grant.

   Inserted: (E) A complete description of the costs of the project, including acquisition, construction, operation, and maintenance costs over the expected life of the project.

   Inserted: (F) A description of which costs of the project are to be supported by Federal assistance under this subtitle.

   Inserted: (G) In the case of a project involving diesel-fueled vehicles, documentation to the satisfaction of the Secretary that diesel fuel containing sulfur at not more than 15 parts per million is available for carrying out the project, together with a commitment by the applicant to use such fuel in carrying out the project.

   Inserted: (2) Partners.--An applicant under paragraph (1) may carry out any project under the pilot program in partnership with public and private entities.

   Inserted: (f) Selection Criteria.--In evaluating applications under the pilot program, the Secretary shall consider each applicant's previous experience with similar projects and shall give priority consideration to applications that--

   Inserted: (1) propose one or more projects that are most likely--

   Inserted: (A) to cost-effectively reduce vehicle operation emissions; and

   Inserted: (B) to cost-effectively reduce use of fossil fuel in the operation of vehicles;

   Inserted: (2) propose one or more projects that are--

   Inserted: (A) to be carried out or sponsored by a government referred to in paragraph (1) or (2) of subsection (b); or

   Inserted: (B) coordinated with such a government or with a metropolitan planning organization of such a government;

   Inserted: (3) demonstrate the greatest commitment on the part of the applicant or applicants to ensure funding for the proposed project or projects and the greatest likelihood that each project will be maintained or expanded after Federal assistance under this subtitle is completed; and

   Inserted: (4) exceed the minimum requirements of subsection (e)(1).

   Inserted: (g) Pilot Project Requirements.--

   Inserted: (1) Maximum amount.--The Secretary shall not provide more than $20,000,000 in Federal assistance under the pilot program for any project.

   Inserted: (2) Cost sharing.--

   Inserted: (A) Federal share.--The Secretary shall not provide more than 50 percent of the cost, incurred during the period of the grant, of any project under the pilot program.

   Inserted: (B) Applicant share.--The applicant or applicants for a grant for a project under the pilot program shall provide funding for the project in an amount that equals or exceeds the higher of the following amounts:

   Inserted: (i) $1,000,000.

   Inserted: (ii) The amount equal to 20 percent of the total cost of the project.

   Inserted: (3) Maximum period of grants.--The Secretary shall not fund any applicant under the pilot program for more than 5 years.

   Inserted: (4) Deployment and distribution.--The Secretary shall seek to the maximum extent practicable to ensure--

   Inserted: (A) a broad geographic distribution of project sites under the pilot program; and

   Inserted: (B) the operation of vehicles acquired with the proceeds of pilot program grants under a variety of vehicle operating environments, including exposure to extreme weather conditions and operation of the vehicles in various modes of service under a variety of operational demands.

   Inserted: (5) Transfer of information and knowledge.--The Secretary shall establish mechanisms to ensure that the information and knowledge gained by participants in the pilot program are transferred among the pilot program participants and to other interested parties, including other applicants that submitted applications.

   Inserted: (h) Schedule.--

   Inserted: (1) Publication.--Not later than 90 days after the date of the enactment of this Act, the Secretary shall publish in the Federal Register, Commerce Business Daily, and elsewhere as appropriate, a solicitation of applications for grants for projects under the pilot program. Applications shall be due within 180 days after the publication of the first published notice.

   Inserted: (2) Competitive selection.--Not later than 180 days after the date by which applications for grants are due, the Secretary shall select by competitive, peer review all applications for projects to be awarded a grant under the pilot program.

   Inserted: (h) Funding for Ultra-Low Sulfur Diesel Vehicles.--Of the total amount available for a fiscal year for grants under the pilot program, not less than 20 percent and not more than 25 percent of the grant funding shall be available only for the acquisition of ultra-low sulfur diesel vehicles.

   Inserted: SEC. 743. AUTHORIZATION OF APPROPRIATIONS.

   Inserted: There is authorized to be appropriated to the Secretary of Energy for carrying out this subtitle, $40,000,000 for each of fiscal years 2004, 2005, 2006, 2007, and 2008, to remain available until expended.

   Original wording

   At the end of title VII add the following:

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