text: 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.''.
target: 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.
feat_title: A bill to improve air quality by expanding the use of low-emission natural gas as a transportation fuel.