text: SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
  
      (a) Short Title.--This Act may be cited as the ``Biodiesel Energy 
  Development Act of 1997''.
      (b) Table of Contents.--The table of contents of this Act is as 
  follows:
  
  Sec. 1. Short title; table of contents.
                    TITLE I--ALTERNATIVE FUELS--GENERAL
  
  Sec. 101. Definitions.
  Sec. 102. Amendments to the Energy Policy and Conservation Act.
  Sec. 103. Minimum Federal fleet requirement.
             TITLE II--ALTERNATIVE FUELS--NON-FEDERAL PROGRAMS
  
  Sec. 201. State and local incentives programs.
  Sec. 202. Alternative fuel bus program.
  Sec. 203. Alternative fuel use in nonroad vehicles, engines, and marine 
                              vessels.
     TITLE III--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE 
                   FUELS, AND ALTERNATIVE FUELED VEHICLES
  
  Sec. 301. Mandate for alternative fuel providers.
  Sec. 302. Replacement fuel supply and demand program.
  Sec. 303. Modification of goals; additional rulemaking authority.
  Sec. 304. Fleet requirement program.
  Sec. 305. Credits.
  Sec. 306. Secretary's recommendation to Congress.
  
                    TITLE I--ALTERNATIVE FUELS--GENERAL
  
  SEC. 101. DEFINITIONS.
  
      Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is 
  amended--
              (1) in paragraph (2), by striking ``derived from biological 
          materials'' and inserting ``derived from domestically produced 
          renewable biological materials (including biodiesel) at 
          mixtures not less than 20 percent by volume'';
              (2) in paragraph (8), by striking subparagraph (B) and 
          inserting the following:
                      ``(B) a motor vehicle (other than an automobile) or 
                  marine vessel that is capable of operating on 
                  alternative fuel, gasoline, or diesel fuel, or an 
                  approved blend of alternative fuel and petroleum-based 
                  fuel.'';
              (3) by redesignating paragraphs (11) through (14) as 
          paragraphs (12), (14), (15), and (16), respectively;
              (4) by inserting after paragraph (10) the following:
              ``(11) the term `heavy duty motor vehicle' means a motor 
          vehicle or marine vessel that is greater than 8,500 pounds 
          gross vehicle weight rating;'';
              (5) by inserting after paragraph (12) (as redesignated by 
          paragraph (3)) the following:
              ``(13) the term `marine vessel' means a motorized 
          watercraft or other artificial contrivance used as a means of 
          transportation primarily on the navigable waters of the United 
          States;'';
              (6) in paragraph (15) (as redesignated by paragraph (3)), 
          by striking ``biological materials'' and inserting 
          ``domestically produced renewable biological materials 
          (including biodiesel)''.
  
  SEC. 102. AMENDMENTS TO THE ENERGY POLICY AND CONSERVATION ACT.
  
      Section 400AA of the Energy Policy and Conservation Act (42 U.S.C. 
  6374) is amended--
              (1) in the second sentence of subsection (a)(3)(B), by 
          striking ``vehicles converted to use alternative fuels may be 
          acquired if, after conversion,'' and inserting ``existing fleet 
          vehicles may be converted to use alternative fuels at the time 
          of a major vehicle overhaul or rebuild, or vehicles that have 
          been converted to use alternative fuels may be acquired, if''; 
          and
              (2) in subsection (g)--
                      (A) in paragraph (2), by striking ``derived from 
                  biological materials'' and inserting ``derived from 
                  domestically produced renewable biological materials 
                  (including biodiesel) at mixtures not less than 20 
                  percent by volume'';
                      (B) in paragraph (5), by striking subparagraph (B) 
                  and inserting the following:
                      ``(B) a motor vehicle (other than an automobile) or 
                  marine vessel that is capable of operating on 
                  alternative fuel, gasoline, or diesel fuel, or an 
                  approved blend of alternative fuel and petroleum-based 
                  fuel; and''; and
                      (C) in paragraph (6), by inserting ``or marine 
                  vessel'' [Same questions as above.] after ``a 
                  vehicle''.
  
  SEC. 103. MINIMUM FEDERAL FLEET REQUIREMENT.
  
      Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is 
  amended--
              (1) by redesignating subsections (c) through (f) as 
          subsections (d) through (g), respectively; and
              (2) by inserting after subsection (b) the following:
      ``(c) Heavy Duty and Dual-Fueled Vehicle Compliance Credits.--
              ``(1) In general.--For purposes of meeting the requirements 
          of this section, the Secretary, in consultation with the 
          Administrator of General Services, if appropriate, shall permit 
          a Federal fleet to acquire 1 heavy duty alternative fueled 
          vehicle in place of 2 light duty alternative fueled vehicles.
              ``(2) Additional credits.--For purposes of this section, 
          the Secretary, in consultation with the Administrator of 
          General Services, if appropriate, shall permit a Federal fleet 
          to take an additional credit for the purchase and documented 
          use of alternative fuel used in a dual-fueled vehicle, 
          comparable conventionally-fueled motor vehicle, or marine 
          vessel.
              ``(3) Accounting.--
                      ``(A) In general.--In allowing a credit for the 
                  purchase of a dual-fueled vehicle or alternative fuel, 
                  the Secretary may request a Federal agency to provide 
                  an accounting of the purchase.
                      ``(B) Guidelines.--The Secretary shall include any 
                  request made under subparagraph (A) in the guidelines 
                  required under section 308.
              ``(4) Fuel and vehicle neutrality.--The Secretary shall 
          carry out this subsection in a manner that is, to the maximum 
          extent practicable, neutral with respect to the type of fuel 
          and vehicle used.''.
  
                           TITLE II--ALTERNATIVE
  
                        FUELS--NON-FEDERAL PROGRAMS
  
  SEC. 201. STATE AND LOCAL INCENTIVES PROGRAMS.
  
      (a) Establishment of Program.--Section 409(a) of the Energy Policy 
  Act of 1992 (42 U.S.C. 13235(a)) is amended--
              (1) in paragraph (2)(A), by striking ``alternative fueled 
          vehicles'' and inserting ``light and heavy duty alternative 
          fueled vehicles and increasing the use of alternative fuels''; 
          and
              (2) in paragraph (3)--
                      (A) in subparagraph (B), by inserting after 
                  ``introduction of'' the following: ``converted or 
                  acquired light and heavy duty'';
                      (B) in subparagraph (E), by inserting after ``of 
                  sales of'' the following: ``, incentives toward use of, 
                  and reporting requirements relating to''; and
                      (C) in subparagraph (G)--
                              (i) by redesignating clauses (i) through 
                          (iii) as clauses (ii) through (iv), 
                          respectively; and
                              (ii) by inserting after ``cost of--'' the 
                          following:
                      ``(i) alternative fuels;''.
      (b) Federal Assistance to States.--Section 409(b) of the Energy 
  Policy Act of 1992 (42 U.S.C. 13235(b)) is amended--
              (1) in paragraph (1)--
                      (A) in subparagraph (B), by striking ``and'' at the 
                  end;
                      (B) in subparagraph (C), by striking the period at 
                  the end and inserting ``; and''; and
                      (C) by adding at the end the following:
              ``(D) grants of Federal financial assistance for the 
          incremental purchase cost of alternative fuels.'';
              (2) in paragraph (2)(B), by inserting after ``be 
          introduced'' the following: ``and the volume of alternative 
          fuel likely to be consumed''; and
              (3) in paragraph (3)--
                      (A) by inserting ``alternative fuels and'' after 
                  ``in procuring''; and
                      (B) by inserting ``fuels and'' after ``of such''.
      (c) General Provisions.--Section 409(c)(2)(A) of the Energy Policy 
  Act of 1992 (42 U.S.C. 13235(c)(2)(A)) is amended by inserting after 
  ``alternative fueled vehicles in use'' the following: ``and volume of 
  alternative fuel consumed''.
  
  SEC. 202. ALTERNATIVE FUEL BUS PROGRAM.
  
      Section 410(c) of the Energy Policy Act of 1992 (42 U.S.C. 
  13236(c)) is amended in the second sentence by striking ``and the 
  conversion of school buses to dedicated vehicles'' and inserting ``the 
  incremental cost of alternative fuels used in flexible fueled school 
  buses, and the conversion of school buses to alternative fueled 
  vehicles''.
  
  SEC. 203. ALTERNATIVE FUEL USE IN NONROAD VEHICLES, ENGINES, AND MARINE 
                VESSELS.
  
      Section 412 of the Energy Policy Act of 1992 (42 U.S.C. 13238) is 
  amended--
              (1) in the section heading, by striking ``and engines'' and 
          inserting ``, engines, and marine vessels'';
              (2) by striking ``vehicles and engines'' each place it 
          appears in subsections (a) and (b) and inserting ``vehicles, 
          engines, and marine vessels'';
              (3) in subsection (a)--
                      (A) in the subsection heading, by striking 
                  ``Nonroad Vehicles and Engines'' and inserting ``In 
                  General'';
                      (B) in paragraph (1)--
                              (i) in the first sentence, by striking ``a 
                          study'' and inserting ``studies''; and
                              (ii) in the second sentence--
                                      (I) by striking ``study'' and 
                                  inserting ``studies''; and
                                      (II) by striking ``2 years'' and 
                                  inserting ``2, 6, and 10 years'';
                      (C) in paragraph (2)--
                              (i) by striking ``study'' each place it 
                          appears and inserting ``studies''; and
                              (ii) in the second sentence, by inserting 
                          ``or marine vessels'' after ``such vehicles''; 
                          and
                      (D) in paragraph (3)--
                              (i) by striking ``report'' and inserting 
                          ``reports''; and
                              (ii) by striking ``may'' and inserting 
                          ``shall''; and
              (4) in subsection (b)--
                      (A) in the subsection heading, by striking ``and 
                  Engines'' and inserting ``, Engines, and Marine 
                  Vessels''; and
                      (B) by striking ``rail transportation, vehicles 
                  used at airports, vehicles or engines used for marine 
                  purposes, and other vehicles or engines'' and inserting 
                  ``rail and waterway transportation, vehicles used at 
                  airports and seaports, vehicles or engines used for 
                  marine purposes, marine vessels, and other vehicles, 
                  engines, or marine vessels''.
  
     TITLE III--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE 
                   FUELS, AND ALTERNATIVE FUELED VEHICLES
  
  SEC. 301. MANDATE FOR ALTERNATIVE FUEL PROVIDERS.
  
      Section 501 of the Energy Policy Act of 1992 (42 U.S.C. 13251) is 
  amended--
              (1) in subsection (a)(1), by inserting ``or heavy'' after 
          ``new light''; and
              (2) in subsection (b)--
                      (A) in paragraph (1), by striking ``and'' at the 
                  end;
                      (B) in paragraph (2), by striking the period at the 
                  end and inserting ``; and''; and
                      (C) by adding at the end the following:
              ``(3) allow the conversion of an existing fleet vehicle 
          into a dual-fueled alternative fueled vehicle at the time of a 
          major overhaul or rebuild of the vehicle, if the original 
          equipment manufacturer's warranty continues to apply to the 
          vehicle, pursuant to an agreement between the original 
          equipment manufacturer and the person performing the 
          conversion.''.
  
  SEC. 302. REPLACEMENT FUEL SUPPLY AND DEMAND PROGRAM.
  
      Section 502 of the Energy Policy Act of 1992 (42 U.S.C. 13252) is 
  amended--
              (1) in the first sentence of subsection (a), by inserting 
          ``and heavy'' after ``in light''; and
              (2) in the first sentence of subsection (b), by inserting 
          after ``October 1, 1993,'' the following: ``and every 5 years 
          thereafter through October 1, 2008,''.
  
  SEC. 303. MODIFICATION OF GOALS; ADDITIONAL RULEMAKING AUTHORITY.
  
      Section 504 of the Energy Policy Act of 1992 (42 U.S.C. 13254) is 
  amended--
              (1) in the first sentence of subsection (a), by striking 
          ``and periodically thereafter'' and inserting ``consistent with 
          the reporting requirements of section 502(b)''; and
              (2) in subsection (c), by inserting after the first 
          sentence the following: ``Any additional regulation issued by 
          the Secretary shall be, to the maximum extent practicable, 
          neutral with respect to the type of fuel and vehicle used.''.
  
  SEC. 304. FLEET REQUIREMENT PROGRAM.
  
      (a) Fleet Program Purchase Goals.--Section 507(a)(1) of the Energy 
  Policy Act of 1992 (42 U.S.C. 13257(a)(1)) is amended by inserting 
  ``acquired as, or converted into,'' after ``shall be''.
      (b) Fleet Requirement Program.--Section 507(g) of the Energy Policy 
  Act of 1992 (42 U.S.C. 13257(g)) is amended--
              (1) in paragraph (1), by inserting ``acquired as, or 
          converted into,'' after ``shall be'';
              (2) by redesignating paragraph (4) as paragraph (5); and
              (3) by inserting after paragraph (3) the following:
              ``(4) Substitutions.--The Secretary shall, by rule, permit 
          fleets covered under this section to substitute the acquisition 
          or conversion of 1 heavy duty alternative fueled vehicle for 2 
          light duty vehicle acquisitions to meet the requirements of 
          this subsection.''.
      (c) Conversions.--Section 507(j) of the Energy Policy Act of 1992 
  (42 U.S.C. 13257(j)) is amended--
              (1) by striking ``Nothing in'' and inserting the following:
              ``(1) In general.--Subject to paragraph (2), nothing in''; 
          and
              (2) by adding at the end the following:
              ``(2) Conversion into alternative fueled vehicles.--
                      ``(A) In general.--A fleet owner shall be permitted 
                  to convert an existing fleet vehicle into an 
                  alternative fueled vehicle, and purchase the 
                  alternative fuel for the converted vehicle, for the 
                  purpose of compliance with this title or an amendment 
                  made by this title, if the original equipment 
                  manufacturer's warranty continues to apply to the 
                  vehicle, pursuant to an agreement between the original 
                  equipment manufacturer and the person performing the 
                  conversion.
                      ``(B) Credits.--A fleet owner shall be allowed a 
                  credit for the conversion of an existing fleet vehicle 
                  and the purchase of alternative fuel for the 
                  vehicle.''.
      (d) Mandatory State Fleet Programs.--Section 507(o) of the Energy 
  Policy Act of 1992 (42 U.S.C. 13257(o)) is amended--
              (1) in paragraph (1)--
                      (A) by inserting ``or heavy'' after ``new light''; 
                  and
                      (B) by inserting ``or converted'' after 
                  ``acquired''; and
              (2) in the first sentence of paragraph (2)(A)--
                      (A) by striking ``this Act'' and inserting ``the 
                  Biodiesel Energy Development Act of 1997''; and
                      (B) by inserting after ``of light'' the following: 
                  ``or heavy duty alternative fueled''.
  
  SEC. 305. CREDITS.
  
      (a) In General.--Section 508(a) of the Energy Policy Act of 1992 
  (42 U.S.C. 13258(a)) is amended--
              (1) by striking ``The Secretary'' and inserting the 
          following:
              ``(1) Additional alternative fueled vehicles.--The 
          Secretary''; and
              (2) by adding at the end the following:
              ``(2) Alternative fuel.--The Secretary shall allocate a 
          credit to a fleet or covered person that acquires a volume of 
          alternative fuel equal to the estimated need for 1 year for any 
          dual-fueled vehicle acquired or converted by the fleet or 
          covered person as required under this title.''.
      (b) Allocation.--Section 508(b) of the Energy Policy Act of 1992 
  (42 U.S.C. 13258(b)) is amended--
              (1) by striking ``In allocating credits under subsection 
          (a),'' and inserting the following:
              ``(1) Additional alternative fueled vehicles.--In 
          allocating credits under subsection (a)(1),''; and
              (2) by adding at the end the following:
              ``(2) Dual-fueled vehicles; alternative fuel.--In 
          allocating credits under subsection (a)(2), the Secretary shall 
          allocate 2 credits to a fleet or covered person for acquiring 
          or converting a dual-fueled vehicle and acquiring a volume of 
          alternative fuel equal to the estimated need for 1 year for any 
          dual-fueled vehicle if the dual-fueled vehicle acquired is in 
          excess of the number that the fleet or covered person is 
          required to acquire or is acquired before the date that the 
          fleet or covered person is required to acquire the number under 
          this title.''.
  
  SEC. 306. SECRETARY'S RECOMMENDATION TO CONGRESS.
  
      Section 509(a) of the Energy Policy Act of 1992 (42 U.S.C. 
  13259(a)) is amended--
              (1) in paragraph (1), by inserting before the semicolon at 
          the end the following: ``and exempting replacement fuels from 
          taxes levied on non-replacement fuels''; and
              (2) in paragraph (2)--
                      (A) by inserting ``and converters'' after 
                  ``suppliers''; and
                      (B) by inserting before the semicolon the 
                  following: ``, including the conversion and warranty of 
                  motor vehicles into alternative fueled vehicles''.
target: TABLE OF CONTENTS: 
       Title I:  Alternative Fuels - General 
       Title II:  Alternative Fuels - Non-Federal Programs 
       Title III:  Availability and Use of Replacement Fuels, 
            Alternative Fuels, and Alternative Fueled Vehicles 
  Biodiesel Energy Development Act of 1997 - 
  Title I:  Alternative Fuels - General
   - Amends the Energy Policy Act of 1992 to modify definitions relating to alternative fuels, dual-fueled vehicles, heavy duty motor vehicles, and marine vessels. 
  Amends the Energy Policy and Conservation Act with respect to alternative fuel use by light duty Federal vehicles to provide that if such vehicles are not acquired from original equipment manufacturers, existing fleet vehicles may be converted to use alternative fuels at the time of a major vehicle overhaul or rebuild. 
  Amends the Energy Policy Act of 1992 to require the Secretary of Energy (Secretary), if appropriate, to permit a Federal fleet to:  (1) acquire one heavy duty alternative fueled vehicle in place of two light duty alternative fueled vehicles; and (2) take an additional credit for the purchase and documented use of alternative fuel used in a dual-fueled vehicle, comparable conventionally-fueled motor vehicle, or marine vessel. 
  Title II:  Alternative Fuels - Non-Federal Programs
   - Requires State and local alternative fuel incentives programs to include the goal of introducing substantial numbers of light and heavy duty alternative fuels vehicles and increasing the use of alternative fuels. Conditions State eligibility for Federal assistance upon inclusion in each State plan of an examination of the introduction of converted or acquired light and heavy duty alternative fueled vehicles in State-owned or operated motor vehicle fleets. 
  (Sec. 201) Authorizes the Secretary to provide, upon State request, Federal financial assistance grants for the incremental purchase cost of alternative fuels.  Directs the Secretary to report annually to the President and the Congress on the volume of alternative fuel consumed. 
  (Sec. 202) Authorizes the Secretary of Transportation to provide financial assistance to States and political subdivisions for the incremental cost of alternative fuels used in flexible fueled school buses and school bus conversions to alternative fueled vehicles. 
  (Sec. 203) Requires the Secretary to study and report to Congress on alternative fuel use in marine vessels. 
  Title III:  Availability and Use of Replacement Fuels, Alternative Fuels, and Alternative Fueled Vehicles
   - Modifies the mandate for alternative fuel providers to include regulation of heavy duty trucks. 
  (Sec. 301) Cites circumstances under which the Secretary may allow the conversion of an existing fleet vehicle into a dual-fueled alternative fueled vehicle at the time of a major vehicle overhaul or rebuild. 
  (Sec. 302) Directs the Secretary to:  (1) include heavy duty motor vehicles in the program to promote the development and use in light duty motor vehicles of domestic replacement fuels; and (2) review every five years a development plan and production goals for replacement fuel supply and demand. 
  (Sec. 304) Modifies the fleet program purchase goals to require that specified percentages of new light duty motor vehicles acquired in each model year be acquired as, or converted into, alternative fueled vehicles. 
  Modifies the fleet requirement program to direct the Secretary to permit fleets to substitute the acquisition or conversion of one heavy duty alternative fueled vehicle for two light duty vehicle acquisitions to meet program requirements. 
  Permits a fleet owner to convert an existing fleet vehicle into an alternative fueled vehicle, and purchase the fuel for such vehicle for compliance purposes, if the original equipment manufacturer's warranty continues to apply to the vehicle.  Allows a fleet owner a credit for such conversion. 
  (Sec. 305) Instructs the Secretary to allocate a credit to a fleet or covered person that acquires a volume of alternative fuel equal to the estimated need for one year for any dual-fueled vehicle acquired or converted under this Act.  Sets forth a credit allocation scheme for dual-fueled vehicles and alternative fuel. 
  (Sec. 306) Requires the Secretary to submit to the Congress recommended requirements for exempting replacement fuels from taxes levied on non-replacement fuels if the Secretary notifies the Congress that a fleet requirement program is not necessary.
feat_title: Biodiesel Energy Development Act of 1997