§ 5308. —  Clean fuels formula grant program.


[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 49USC5308]

 
                        TITLE 49--TRANSPORTATION
 
              SUBTITLE III--GENERAL AND INTERMODAL PROGRAMS
 
                     CHAPTER 53--MASS TRANSPORTATION
 
Sec. 5308. Clean fuels formula grant program

    (a) Definitions.--In this section--
        (1) the term ``clean fuel vehicle'' means a vehicle that--
            (A) is powered by--
                (i) compressed natural gas;
                (ii) liquefied natural gas;
                (iii) biodiesel fuels;
                (iv) batteries;
                (v) alcohol-based fuels;
                (vi) hybrid electric;
                (vii) fuel cell;
                (viii) clean diesel, to the extent allowed under this 
            section; or
                (ix) other low or zero emissions technology; and

            (B) the Administrator of the Environmental Protection Agency 
        has certified sufficiently reduces harmful emissions;

        (2) the term ``designated recipient'' has the same meaning as in 
    section 5307(a)(2); and
        (3) the term ``eligible project''--
            (A) means a project for--
                (i) purchasing or leasing clean fuel buses, including 
            buses that employ a lightweight composite primary structure;
                (ii) constructing or leasing clean fuel buses or 
            electrical recharging facilities and related equipment;
                (iii) improving existing mass transportation facilities 
            to accommodate clean fuel buses;
                (iv) repowering pre-1993 engines with clean fuel 
            technology that meets the current urban bus emission 
            standards; or
                (v) retrofitting or rebuilding pre-1993 engines if 
            before half life to rebuild; and

            (B) in the discretion of the Secretary, may include projects 
        relating to clean fuel, biodiesel, hybrid electric, or zero 
        emissions technology vehicles that exhibit equivalent or 
        superior emissions reductions to existing clean fuel or hybrid 
        electric technologies.

    (b) Authority.--The Secretary shall make grants in accordance with 
this section to designated recipients to finance eligible projects.
    (c) Application.--
        (1) In general.--Not later than January 1 of each year, any 
    designated recipient seeking to apply for a grant under this section 
    for an eligible project shall submit an application to the 
    Secretary, in such form and in accordance with such requirements as 
    the Secretary shall establish by regulation.
        (2) Certification required.--An application submitted under 
    paragraph (1) shall contain a certification by the applicant that 
    the grantee will operate vehicles purchased with a grant under this 
    section only with clean fuels.

    (d) Apportionment of Funds.--
        (1) Formula.--Not later than February 1 of each year, the 
    Secretary shall apportion amounts made available to carry out this 
    section to designated recipients submitting applications under 
    subsection (c), of which--
            (A) two-thirds shall be apportioned to designated recipients 
        with eligible projects in urban areas with a population of at 
        least 1,000,000, of which--
                (i) 50 percent shall be apportioned, such that each such 
            designated recipient receives a grant in an amount equal to 
            the ratio between--
                    (I) the number of vehicles in the bus fleet of the 
                eligible project of the designated recipient, weighted 
                by severity of nonattainment for the area in which the 
                eligible project is located, as provided in paragraph 
                (2); and
                    (II) the total number of vehicles in the bus fleets 
                of all eligible projects in areas with a population of 
                at least 1,000,000 funded under this section, weighted 
                by severity of nonattainment for all areas in which 
                those eligible projects are located, as provided in 
                paragraph (2); and

                (ii) 50 percent shall be apportioned, such that each 
            such designated recipient receives a grant in an amount 
            equal to the ratio between--
                    (I) the number of bus passenger miles (as that term 
                is defined in section 5336(c)) of the eligible project 
                of the designated recipient, weighted by severity of 
                nonattainment of the area in which the eligible project 
                is located, as provided in paragraph (2); and
                    (II) the total number of bus passenger miles of all 
                eligible projects in areas with a population of at least 
                1,000,000 funded under this section, weighted by 
                severity of nonattainment of all areas in which those 
                eligible projects are located, as provided in paragraph 
                (2); and

            (B) one-third shall be apportioned to designated recipients 
        with eligible projects in urban areas with a population of less 
        than 1,000,000, of which--
                (i) 50 percent shall be apportioned, such that each such 
            designated recipient receives a grant in an amount equal to 
            the ratio between--
                    (I) the number of vehicles in the bus fleet of the 
                eligible project of the designated recipient, weighted 
                by severity of nonattainment for the area in which the 
                eligible project is located, as provided in paragraph 
                (2); and
                    (II) the total number of vehicles in the bus fleets 
                of all eligible projects in areas with a population of 
                less than 1,000,000 funded under this section, weighted 
                by severity of nonattainment for all areas in which 
                those eligible projects are located, as provided in 
                paragraph (2); and

                (ii) 50 percent shall be apportioned, such that each 
            such designated recipient receives a grant in an amount 
            equal to the ratio between--
                    (I) the number of bus passenger miles (as that term 
                is defined in section 5336(c)) of the eligible project 
                of the designated recipient, weighted by severity of 
                nonattainment of the area in which the eligible project 
                is located, as provided in paragraph (2); and
                    (II) the total number of bus passenger miles of all 
                eligible projects in areas with a population of less 
                than 1,000,000 funded under this section, weighted by 
                severity of nonattainment of all areas in which those 
                eligible projects are located, as provided in paragraph 
                (2).

        (2) Weighting of severity of nonattainment.--
            (A) In general.--For purposes of paragraph (1), subject to 
        subparagraph (B) of this paragraph, the number of clean fuel 
        vehicles in the fleet, or the number of passenger miles, shall 
        be multiplied by a factor of--
                (i) 1.0 if, at the time of the apportionment, the area 
            is a maintenance area (as that term is defined in section 
            101 of title 23) for ozone or carbon monoxide;
                (ii) 1.1 if, at the time of the apportionment, the area 
            is classified as--
                    (I) a marginal ozone nonattainment area under 
                subpart 2 of part D of title I of the Clean Air Act (42 
                U.S.C. 7511 et seq.); or
                    (II) a marginal carbon monoxide nonattainment area 
                under subpart 3 of part D of title I of the Clean Air 
                Act (42 U.S.C. 7512 et seq.);

                (iii) 1.2 if, at the time of the apportionment, the area 
            is classified as--
                    (I) a moderate ozone nonattainment area under 
                subpart 2 of part D of title I of the Clean Air Act (42 
                U.S.C. 7511 et seq.); or
                    (II) a moderate carbon monoxide nonattainment area 
                under subpart 3 of part D of title I of the Clean Air 
                Act (42 U.S.C. 7512 et seq.);

                (iv) 1.3 if, at the time of the apportionment, the area 
            is classified as--
                    (I) a serious ozone nonattainment area under subpart 
                2 of part D of title I of the Clean Air Act (42 U.S.C. 
                7511 et seq.); or
                    (II) a serious carbon monoxide nonattainment area 
                under subpart 3 of part D of title I of the Clean Air 
                Act (42 U.S.C. 7512 et seq.);

                (v) 1.4 if, at the time of the apportionment, the area 
            is classified as--
                    (I) a severe ozone nonattainment area under subpart 
                2 of part D of title I of the Clean Air Act (42 U.S.C. 
                7511 et seq.); or
                    (II) a severe carbon monoxide nonattainment area 
                under subpart 3 of part D of title I of the Clean Air 
                Act (42 U.S.C. 7512 et seq.); or

                (vi) 1.5 if, at the time of the apportionment, the area 
            is classified as--
                    (I) an extreme ozone nonattainment area under 
                subpart 2 of part D of title I of the Clean Air Act (42 
                U.S.C. 7511 et seq.); or
                    (II) an extreme carbon monoxide nonattainment area 
                under subpart 3 of part D of title I of the Clean Air 
                Act (42 U.S.C. 7512 et seq.).

            (B) Additional adjustment for carbon monoxide areas.--If, in 
        addition to being classified as a nonattainment or maintenance 
        area (as that term is defined in section 101 of title 23) for 
        ozone under subpart 2 of part D of title I of the Clean Air Act 
        (42 U.S.C. 7511 et seq.), the area was also classified under 
        subpart 3 of part D of title I of that Act (42 U.S.C. 7512 et 
        seq.) as a nonattainment area for carbon monoxide, the weighted 
        nonattainment or maintenance area fleet and passenger miles for 
        the eligible project, as calculated under subparagraph (A), 
        shall be further multiplied by a factor of 1.2.

        (3) Maximum grant amount.--
            (A) In general.--The amount of a grant made to a designated 
        recipient under this section shall not exceed the lesser of--
                (i) for an eligible project in an area--
                    (I) with a population of less than 1,000,000, 
                $15,000,000; and
                    (II) with a population of at least 1,000,000, 
                $25,000,000; or

                (ii) 80 percent of the total cost of the eligible 
            project.

            (B) Reapportionment.--Any amounts that would otherwise be 
        apportioned to a designated recipient under this subsection that 
        exceed the amount described in subparagraph (A) shall be 
        reapportioned among other designated recipients in accordance 
        with paragraph (1).

    (e) Additional Requirements.--
        (1) Limitation on uses.--Not less than 5 percent of the amount 
    made available by or appropriated under section 5338 in each fiscal 
    year to carry out this section shall be available for any eligible 
    projects for which an application is received from a designated 
    recipient, for--
            (A) the purchase or construction of hybrid electric or 
        battery-powered buses; or
            (B) facilities specifically designed to service those buses.

        (2) Clean diesel buses.--Not more than 35 percent of the amount 
    made available by or appropriated under section 5338 in each fiscal 
    year to carry out this section may be made available to fund clean 
    diesel buses.
        (3) Bus retrofitting and replacement.--Not more than 5 percent 
    of the amount made available by or appropriated under section 5338 
    in each fiscal year to carry out this section may be made available 
    to fund retrofitting or replacement of the engines of buses that do 
    not meet the clean air standards of the Environmental Protection 
    Agency, as in effect on the date on which the application for such 
    retrofitting or replacement is submitted under subsection (c)(1).

    (f) Availability of Funds.--Any amount made available or 
appropriated under this section--
        (1) shall remain available to a project for 1 year after the 
    fiscal year for which the amount is made available or appropriated; 
    and
        (2) that remains unobligated at the end of the period described 
    in paragraph (1), shall be added to the amount made available in the 
    following fiscal year.

(Pub. L. 103-272, Sec. 1(d), July 5, 1994, 108 Stat. 800; Pub. L. 105-
178, title III, Sec. 3008(a), (c), June 9, 1998, 112 Stat. 348; Pub. L. 
105-206, title IX, Sec. 9009(f), July 22, 1998, 112 Stat. 855.)

                                          Historical and Revision Notes
----------------------------------------------------------------------------------------------------------------
           Revised  Section                    Source (U.S. Code)               Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
5308(a)...............................  49 App.:1607a-2(b) (words        July 9, 1964, Pub. L. 88-365, 78 Stat.
                                         before ``and shall be subject    302, Sec.  9B(a), (b); added Apr. 2,
                                         to'').                           1987, Pub. L. 100-17, Sec.  313, 101
                                                                          Stat. 229.
5308(b)(1)............................  49 App.:1607a-2(a).
5308(b)(2)............................  49 App.:1607a-2(b) (words after
                                         ``maintenance items)'').
----------------------------------------------------------------------------------------------------------------

    In subsection (a), the words ``The Secretary of Transportation may 
make'' are added for clarity and consistency in this chapter. The words 
``the purpose of'' are omitted as surplus.
    In subsection (b)(1), the cross-reference to 49 App.:1617(b) and (c) 
is corrected because it no longer is correct because of the restatement 
of 49 App.:1617 by section 3025 of the Intermodal Surface Transportation 
Efficiency Act of 1991 (Public Law 102-240, 105 Stat. 2112), restated as 
section 5338 of the revised title.
    In subsection (b)(2), the words ``the limitations contained in'' and 
``applicable to such projects'' are omitted as surplus.

                       References in Text

    The Clean Air Act, referred to in subsec. (d)(2), is act July 14, 
1955, ch. 360, 69 Stat. 322, as amended. Subpart 2 of part D of title I 
of the Act is classified to subpart 2 (Sec. 7511 et seq.) of part D of 
subchapter I of chapter 85 of Title 42, The Public Health and Welfare. 
Subpart 3 of part D of title I of the Act is classified to subpart 3 
(Sec. 7512 et seq.) of part D of subchapter I of chapter 85 of Title 42. 
For complete classification of this Act to the Code, see Short Title 
note set out under section 7401 of Title 42 and Tables.


                               Amendments

    1998--Pub. L. 105-178, Sec. 3008(a), amended section catchline and 
text generally. Prior to amendment, text read as follows:
    ``(a) General Authority.--The Secretary of Transportation may make 
grants under this section to be used only for capital projects 
(including capital maintenance items).
    ``(b) Application of Other Sections.--(1) Sections 5307(a)-(d), (h)-
(l), and (n) and 5336(a)-(c), (f), (g), and (j) of this title apply to 
amounts made available under section 5338(a) of this title to carry out 
this section.
    ``(2) Sections 5307(e) and 5336(d) of this title apply to grants 
under this section.''
    Subsec. (e)(2). Pub. L. 105-178, Sec. 3008(c), as added by Pub. L. 
105-206, substituted ``35 percent'' for ``$50,000,000''.


                    Effective Date of 1998 Amendment

    Title IX of Pub. L. 105-206 effective simultaneously with enactment 
of Pub. L. 105-178 and to be treated as included in Pub. L. 105-178 at 
time of enactment, and provisions of Pub. L. 105-178, as in effect on 
day before July 22, 1998, that are amended by title IX of Pub. L. 105-
206 to be treated as not enacted, see section 9016 of Pub. L. 105-206, 
set out as a note under section 101 of Title 23, Highways.


                           Clean Fuel Vehicles

    Pub. L. 105-178, title III, Sec. 3036, June 9, 1998, 112 Stat. 387, 
provided that:
    ``(a) Study.--The Comptroller General shall conduct a study of the 
various low and zero emission fuel technologies for transit vehicles, 
including compressed natural gas, liquefied natural gas, biodiesel fuel, 
battery, alcohol based fuel, hybrid electric, fuel cell, and clean 
diesel to determine--
        ``(1) the status of the development and use of such 
    technologies;
        ``(2) the environmental benefits of such technologies under the 
    Clean Air Act [42 U.S.C. 7401 et seq.]; and
        ``(3) the cost of such technologies and any associated 
    equipment.
    ``(b) Report.--Not later than January 1, 2000, the Comptroller 
General shall transmit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate a report on the 
results of the study, together with recommendations for incentives to 
encourage the use of low and zero emission fuel technology for transit 
vehicles.''

                  Section Referred to in Other Sections

    This section is referred to in sections 5309, 5323, 5333, 5338 of 
this title.






























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