article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Drive America on Natural Gas Act of 2008''. SEC. 2. RENEWABLE FUEL PROGRAM. (a) Definition of Renewable Fuel.--Effective January 1, 2009, section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)) is amended by striking subparagraph (J) and inserting the following: ``(J) Renewable fuel.-- ``(i) In general.--The term `renewable fuel' means fuel that-- ``(I) is produced from renewable biomass; and ``(II) is used to replace or reduce the quantity of fossil fuel present in a transportation fuel. ``(ii) Renewable fuel standard.--For purposes of the renewable fuel standard under paragraph (2), the term `renewable fuel' includes renewable and nonrenewable natural gas, including compressed natural and liquefied natural gas when used as transportation fuel.''. (b) Credit Program.--Effective January 1, 2009, section 211(o)(5)(A) of the Clean Air Act (42 U.S.C. 7545(o)(5)(A)) is amended-- (1) in clause (ii), by striking ``and'' at the end; (2) in clause (iii), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(iv) for the generation of an appropriate quantity of credits for renewable and nonrenewable natural gas, including compressed natural and liquefied natural gas when used as a transportation fuel.''. SEC. 3. NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHICLE CREDIT ALLOWED FOR DUAL FUELED AUTOMOBILES. (a) In General.--Clause (i) of section 30B(e)(4)(A) of the Internal Revenue Code of 1986 (relating to definition of new qualified alternative fuel motor vehicle) is amended to read as follows: ``(i) which-- ``(I) is only capable of operating on an alternative fuel, or ``(II) is capable of operating on an alternative fuel and gasoline or diesel fuel,''. (b) Conforming Amendment.--Section 30B(e) of the Internal Revenue Code of 1986 is amended by striking paragraph (5). (c) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. SEC. 4. NATURAL GAS VEHICLE RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROJECTS. (a) Definitions.--In this section: (1) Administrator.--The term ``Administrator'' means the Administrator of the Environmental Protection Agency. (2) Natural gas.--The term ``natural gas'' means compressed natural gas, liquefied natural gas, biomethane, and mixtures of hydrogen and methane or natural gas. (3) Secretary.--The term ``Secretary'' means the Secretary of Energy. (b) Program.--The Secretary, in coordination with the Administrator, shall conduct a program of natural gas vehicle research, development, and demonstration. (c) Purpose.--The program under this section shall focus on-- (1) the continued improvement and development of new, cleaner, more efficient light-duty, medium-duty, and heavy-duty natural gas vehicle engines; (2) the integration of those engines into light-duty, medium-duty, and heavy-duty natural 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 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 natural gas vehicles and components; (6) improvement in the reliability and efficiency of natural gas fueling station infrastructure; (7) the certification of natural gas fueling station infrastructure to nationally recognized and industry safety standards; (8) the improvement in the reliability and efficiency of onboard natural gas fuel storage systems; (9) the development of new natural gas fuel storage materials; (10) the certification of onboard natural gas fuel storage systems to nationally recognized and industry safety standards; and (11) the use of natural gas engines in hybrid vehicles. (d) Certification of Conversion Systems.--The Secretary shall coordinate with the Administrator on issues related to streamlining the certification of natural gas conversion systems to the appropriate Federal certification requirements and in-use emission standards. (e) Cooperation and Coordination With Industry.--In developing and carrying out the program under this section, the Secretary shall coordinate with the natural gas vehicle industry to ensure cooperation between the public and the private sector. (f) Conduct of Program.--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). (g) Report.--Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to Congress a report on the implementation of this section. (h) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section. SEC. 5. DEVELOPMENT OF LOW-EMISSION NATURAL GAS TRANSPORTATION-FUELED VEHICLES. Part C of title II of the Clean Air Act (42 U.S.C. 7581 et seq.) is amended by adding at the end the following: ``SEC. 251. DEVELOPMENT OF LOW-EMISSION NATURAL GAS TRANSPORTATION- FUELED VEHICLES. ``(a) Definitions.--In this section: ``(1) Alternative fuel.--The term `alternative fuel' means compressed or liquid natural gas. ``(2) Alternative-fueled vehicle.--The term `alternative- fueled vehicle' means a vehicle that is manufactured or converted to operate using alternative fuel. ``(3) Bi-fueled vehicle.--The term `bi-fueled vehicle' means a vehicle that is capable of operating on gasoline or an alternative fuel, but not both at the same time. ``(4) Convert.--The term `convert', with respect to a vehicle, means to modify the engine and other applicable components of the vehicle to enable the vehicle to operate using an alternative fuel (including compressed natural gas). ``(5) OBD system.--The term `OBD system' means an on-board, computer-based diagnostic system built into certain vehicles to monitor the performance of certain primary engine components of the vehicle (including components responsible for controlling emissions). ``(6) Program.--The term `program' means the alternative- fueled vehicle development demonstration program established under subsection (b). ``(7) Small volume manufacturer.-- ``(A) In general.--The term `small volume manufacturer' means a manufacturer of vehicles described in section 86.001-1(e) of title 40, Code of Federal Regulations (or a successor regulation) that is approved and certified in accordance with part 86 of subchapter C of chapter I of title 40, Code of Federal Regulations (or successor regulations). ``(B) Inclusion.--The term `small volume manufacturer' includes a manufacturer of kits or equipment used to convert vehicles. ``(b) Program.-- ``(1) Establishment.--For the period of fiscal years 2009 through 2013, the Administrator shall establish and carry out a demonstration program to assist States in facilitating the development of alternative-fueled vehicles. ``(2) Application.--A State may participate in the program by submitting to the Administrator an application at such time, in such form, and containing such information as the Administrator shall specify. ``(3) Benefits available to participating small volume manufacturers.--Under the program, with respect to small volume manufacturers located in States participating in the program, the Administrator shall, by regulation-- ``(A) waive all fees applicable to small volume manufacturers for the certification and conversion of alternative-fueled vehicles; ``(B) waive requirements for recertification of kits for the conversion of vehicles in any case in which, as determined by the Administrator-- ``(i) the kit has been previously certified for the model of vehicle to be converted; and ``(ii) neither the kit nor the design and specifications of the model of vehicle to be converted have substantially changed; ``(C) modify such regulatory requirements relating to OBD systems as the Administrator determines to be appropriate to provide flexibility to small volume manufacturers in reprogramming OBD systems to be compatible with the use of alternative fuel; ``(D) permit small volume manufacturers to include more vehicles and engines in a single engine category to improve the cost-efficiency of emission testing of converted vehicles; ``(E) waive the liability of small volume manufacturers, in the case of a bi-fueled vehicle capable of operating on gasoline or compressed natural gas, for the compliance of the gasoline system of the bi-fueled vehicle with applicable emission requirements; ``(F) provide additional guidance to small volume manufacturers with respect to the conversion of older models of vehicles; and ``(G) revise and streamline certification requirements applicable to small volume manufacturers. ``(4) State responsibility.--As a condition of participating in the program, during the period of fiscal years 2009 through 2013, a State shall-- ``(A) develop regulations for (as compared to Federal requirements in effect as of the date of enactment of this section) an equally effective but less burdensome system of certifying and verifying emissions of alternative-fueled vehicles and equipment used for conversions; and ``(B) not later than December 31, 2012, submit the proposed regulations of the State to the Administrator for review. ``(c) State Programs.--Upon receipt of proposed regulations of a State under subsection (b)(4), the Administrator shall-- ``(1) review the regulations; and ``(2) if the Administrator determines that the implementation of the regulations would result in (as compared to Federal requirements in effect as of the date of enactment of this section) an equally effective but less burdensome system of certifying and verifying emissions of alternative- fueled vehicles and equipment used for conversions, authorize the State to implement the regulations with respect to small volume manufacturers in the State for the period of fiscal years 2014 through 2018, subject to-- ``(A) the submission of annual reports to the Administrator; and ``(B) such periodic inspection and other oversight requirements as the Administrator determines to be appropriate. ``(d) Duration of Program.--The program and all authority under the program (other than the authority of the Administrator described in subsection (c)) shall terminate on December 31, 2013, unless the Administrator-- ``(1) in consultation with the States, elects to continue the program; and ``(2) promulgates such regulations as are necessary to continue the program. ``(e) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section.''. SEC. 6. NATURAL GAS CONVERSION EMISSION CERTIFICATIONS. Part C of title II of the Clean Air Act (42 U.S.C. 7581 et seq.) (as amended by section 5) is amended by adding at the end the following: ``SEC. 252. NATURAL GAS CONVERSION EMISSION CERTIFICATIONS. ``(a) In General.--The Administrator shall waive requirements for recertification of kits for the conversion of vehicles into vehicles that are powered by natural gas in any case in which, as determined by the Administrator-- ``(1) the kit has been previously certified for the model of vehicle to be converted; and ``(2) neither the kit nor the design and specifications of the model of vehicle to be converted have substantially changed. ``(b) Older Vehicles.--The Administrator shall waive emission certification system requirements for a vehicle that is over 10 years old or has over 120,000 miles that is powered by natural gas.''.
summary: Drive America on Natural Gas Act of 2008 - Amends the Clean Air Act to: (1) redefine renewable fuel to include renewable and nonrenewable natural gas (NG), including compressed natural (CNG) and liquefied natural gas (LNG); and (2) require fuel credit program regulations to provide for generation of credits for renewable and nonrenewable natural gas. Amends the Internal Revenue Code to allow a new qualified alternative fuel motor vehicle credit for dual fueled automobiles. Directs the Secretary of Energy, in coordination with the Administrator of the Environmental Protection Agency (EPA), to conduct a program of natural gas vehicle research, development, and demonstration, with a particular emphasis on streamlining the certification of NG conversion systems. Directs the EPA Administrator to: (1) establish a demonstration program to assist states in facilitating the development of alternative-fueled vehicles; and (2) waive requirements for recertification of certain kits for the conversion of vehicles to NG.