To establish a program to award grants on a competitive basis to eligible recipients for the replacement or retrofit of certain existing school buses.

SA 726. Mr. INHOFE (for himself, Mr. Bayh, Mr. Warner, Mr. Jeffords,
Mr. Lugar, Mrs. Clinton, Mr. Chafee, Mr. Obama, Ms. Landrieu, and Mr.
Voinovich) submitted an amendment intended to be proposed to amendment
SA 605 proposed by Mr. Inhofe to the bill H.R. 3, to authorize funds
for Federal-aid highways, highway safety programs, and transit
programs, and for other purposes; which was ordered to lie on the
table; as follows:

On page 297, between lines 9 and 10, insert the following:

SEC. 16__. CLEAN SCHOOL BUS PROGRAM.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Alternative fuel.--The term ``alternative fuel''
means--
(A) liquefied natural gas, compressed natural gas,
liquefied petroleum gas, hydrogen, or propane;
(B) methanol or ethanol at no less than 85 percent by
volume; or
(C) biodiesel conforming with standards published by the
American Society for Testing and Materials as of the date of
enactment of this Act.
(3) Clean school bus.--The term ``clean school bus'' means
a school bus with a gross vehicle weight of greater than
14,000 pounds that--
(A) is powered by a heavy duty engine; and
(B) is operated solely on an alternative fuel or ultra-low
sulfur diesel fuel.
(4) Eligible recipient.--
(A) In general.--Subject to subparagraph (B), the term
``eligible recipient'' means--
(i) 1 or more local or State governmental entities
responsible for--

(I) providing school bus service to 1 or more public school
systems; or
(II) the purchase of school buses;

(ii) 1 or more contracting entities that provide school bus
service to 1 or more public school systems; or
(iii) a nonprofit school transportation association.
(B) Special requirements.--In the case of eligible
recipients identified under clauses (ii) and (iii), the
Administrator shall establish timely and appropriate
requirements for notice and may establish timely and
appropriate requirements for approval by the public school
systems that would be served by buses purchased or retrofit
using grant funds made available under this section.
(5) Retrofit technology.--The term ``retrofit technology''
means a particulate filter or other emissions control
equipment that is verified or certified by the Administrator
or the California Air Resources Board as an effective
emission reduction technology when installed on an existing
school bus.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(7) Ultra-low sulfur diesel fuel.--The term ``ultra-low
sulfur diesel fuel'' means diesel fuel that contains sulfur
at not more than 15 parts per million.
(b) Program for Retrofit or Replacement of Certain Existing
School Buses With Clean School Buses.--
(1) Establishment.--
(A) In general.--The Administrator, in consultation with
the Secretary and other appropriate Federal departments and
agencies, shall establish a program for awarding grants on a
competitive basis to eligible recipients for the replacement
or retrofit (including repowering, aftertreatment, and
remanufactured engines) of certain existing school buses.
(B) Balancing.--In awarding grants under this section, the
Administrator shall, to the maximum extent practicable,
achieve an appropriate balance between awarding grants--
(i) to replace school buses; and
(ii) to install retrofit technologies.
(2) Priority of grant applications.--
(A) Replacement.--In the case of grant applications to
replace school buses, the Administrator shall give priority
to applicants that propose to replace school buses
manufactured before model year 1977.
(B) Retrofitting.--In the case of grant applications to
retrofit school buses, the Administrator shall give priority
to applicants that propose to retrofit school buses
manufactured in or after model year 1991.
(3) Use of school bus fleet.--
(A) In general.--All school buses acquired or retrofitted
with funds provided under this section shall be operated as
part of the school bus fleet for which the grant was made for
not less than 5 years.
(B) Maintenance, operation, and fueling.--New school buses
and retrofit technology shall be maintained, operated, and
fueled according to manufacturer recommendations or State
requirements.
(4) Retrofit grants.--The Administrator may award grants
for up to 100 percent of the retrofit technologies and
installation costs.
(5) Replacement grants.--
(A) Eligibility for 50% grants.--The Administrator may
award grants for replacement of school buses in the amount of
up to \1/2\ of the acquisition costs (including fueling
infrastructure) for --
(i) clean school buses with engines manufactured in model
year 2005 or 2006 that emit not more than--

(I) 1.8 grams per brake horsepower-hour of non-methane
hydrocarbons and oxides of nitrogen; and
(II) .01 grams per brake horsepower-hour of particulate
matter; or

(ii) clean school buses with engines manufactured in model
year 2007, 2008, or 2009 that satisfy regulatory requirements
established by the Administrator for emissions of oxides of
nitrogen and particulate matter to be applicable for school
buses manufactured in model year 2010.

[[Page S5000]]

(B) Eligibility for 25% grants.--The Administrator may
award grants for replacement of school buses in the amount of
up to \1/4\ of the acquisition costs (including fueling
infrastructure) for --
(i) clean school buses with engines manufactured in model
year 2005 or 2006 that emit not more than--

(I) 2.5 grams per brake horsepower-hour of non-methane
hydrocarbons and oxides of nitrogen; and
(II) .01 grams per brake horsepower-hour of particulate
matter; or

(ii) clean school buses with engines manufactured in model
year 2007 or thereafter that satisfy regulatory requirements
established by the Administrator for emissions of oxides of
nitrogen and particulate matter from school buses
manufactured in that model year.
(6) Ultra-low sulfur diesel fuel.--
(A) In general.--In the case of a grant recipient receiving
a grant for the acquisition of ultra-low sulfur diesel fuel
school buses with engines manufactured in model year 2005 or
2006, the grant recipient shall provide, to the satisfaction
of the Administrator--
(i) documentation that diesel fuel containing sulfur at not
more than 15 parts per million is available for carrying out
the purposes of the grant; and
(ii) a commitment by the applicant to use that fuel in
carrying out the purposes of the grant.
(7) Deployment and distribution.--The Administrator shall,
to the maximum extent practicable--
(A) achieve nationwide deployment of clean school buses
through the program under this section; and
(B) ensure a broad geographic distribution of grant awards,
with no State receiving more than 10 percent of the grant
funding made available under this section during a fiscal
year.
(8) Annual report.--
(A) In general.--Not later than January 31 of each year,
the Administrator shall submit to Congress a report that--
(i) evaluates the implementation of this section; and
(ii) describes--

(I) the total number of grant applications received;
(II) the number and types of alternative fuel school buses,
ultra-low sulfur diesel fuel school buses, and retrofitted
buses requested in grant applications;
(III) grants awarded and the criteria used to select the
grant recipients;
(IV) certified engine emission levels of all buses
purchased or retrofitted under this section;
(V) an evaluation of the in-use emission level of buses
purchased or retrofitted under this section; and
(VI) any other information the Administrator considers
appropriate.

(c) Education.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall develop an
education outreach program to promote and explain the grant
program.
(2) Coordination with stakeholders.--The outreach program
shall be designed and conducted in conjunction with national
school bus transportation associations and other
stakeholders.
(3) Components.--The outreach program shall--
(A) inform potential grant recipients on the process of
applying for grants;
(B) describe the available technologies and the benefits of
the technologies;
(C) explain the benefits of participating in the grant
program; and
(D) include, as appropriate, information from the annual
report required under subsection (b)(8).
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator to carry out this
section, to remain available until expended--
(1) $55,000,000 for each of fiscal years 2006 and 2007; and
(2) such sums as are necessary for each of fiscal years
2008, 2009, and 2010.
______