42 U.S.C. § 13251 — Mandate for alternative fuel providers

Page 8534 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 13239 and engines which can feasibly be run on alter- native fuels, to utilize such alternative fuels. (b) Definition of nonroad vehicles and engines Nonroad vehicles and engines, for purposes of this section, shall include nonroad vehicles and engines used for surface transportation or prin- cipally for industrial or commercial purposes, vehicles used for rail transportation, vehicles used at airports, vehicles or engines used for marine purposes, and other vehicles or engines at the discretion of the Secretary. (c) Designation Upon completion of the study required pursu- ant to subsection (a) of this section, the Sec- retary may designate such vehicles and engines as qualifying for loans pursuant to section 13239 of this title. (Pub. L. 102–486, title IV, § 412, Oct. 24, 1992, 106 Stat. 2886.) § 13239. Low interest loan program (a) Establishment Within 1 year after October 24, 1992, the Sec- retary shall establish a program for making low interest loans, giving preference to small busi- nesses that own or operate fleets, for— (1) the conversion of motor vehicles to oper- ation on alternative fuels; (2) covering the incremental costs of the purchase of motor vehicles which operate on alternative fuels, when compared with pur- chase costs of comparable conventionally fueled motor vehicles; or (3) covering the incremental costs of pur- chase of non-road vehicles and engines des- ignated by the Secretary pursuant to section 13238(c) of this title. (b) Loan terms The Secretary, to the extent practicable, shall establish reasonable terms for loans made under this subsection, with preference given to repay- ment schedules that enable such loans to be re- paid by the borrower from the cost differential between gasoline and the alternative fuel on which the motor vehicle operates. (c) Criteria In deciding to whom loans shall be made under this subsection, the Secretary shall consider— (1) the financial need of the applicant; (2) the goal of assisting the greatest number of applicants; and (3) the ability of an applicant to repay the loan, taking into account the fuel cost savings likely to accrue to the applicant. (d) Priorities Priority shall be given under this section to fleets where the use of alternative fuels would have a significant beneficial effect on energy se- curity and the environment. (e) Authorization of appropriations There are authorized to be appropriated to the Secretary for carrying out this section, $25,000,000 for each of the fiscal years 1993, 1994, and 1995. (Pub. L. 102–486, title IV, § 414, Oct. 24, 1992, 106 Stat. 2886.) SUBCHAPTER III—AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE FUELS, AND ALTERNATIVE FUELED PRI- VATE VEHICLES § 13251. Mandate for alternative fuel providers (a) In general (1) The Secretary shall, before January 1, 1994, issue regulations requiring that of the new light duty motor vehicles acquired by a covered per- son described in paragraph (2), the following per- centages shall be alternative fueled vehicles for the following model years: (A) 30 percent for model year 1996. (B) 50 percent for model year 1997. (C) 70 percent for model year 1998. (D) 90 percent for model year 1999 and there- after. (2) For purposes of this section, a person re- ferred to in paragraph (1) is— (A) a covered person whose principal busi- ness is producing, storing, refining, proc- essing, transporting, distributing, importing, or selling at wholesale or retail any alter- native fuel other than electricity; (B) a non-Federal covered person whose prin- cipal business is generating, transmitting, im- porting, or selling at wholesale or retail elec- tricity; or (C) a covered person— (i) who produces, imports, or produces and imports in combination, an average of 50,000 barrels per day or more of petroleum; and (ii) a substantial portion of whose business is producing alternative fuels. (3)(A) In the case of a covered person described in paragraph (2) with more than one affiliate, di- vision, or other business unit, only an affiliate, division, or business unit which is substantially engaged in the alternative fuels business (as de- termined by the Secretary by rule) shall be sub- ject to this subsection. (B) No covered person or affiliate, division, or other business unit of such person whose prin- cipal business is— (i) transforming alternative fuels into a product that is not an alternative fuel; or (ii) consuming alternative fuels as a feed- stock or fuel in the manufacture of a product that is not an alternative fuel, shall be subject to this subsection. (4) The vehicles purchased pursuant to this section shall be operated solely on alternative fuels except when operating in an area where the appropriate alternative fuel is unavailable. (5) Regulations issued under paragraph (1) shall provide for the prompt exemption by the Secretary, through a simple and reasonable process, from the requirements of paragraph (1) of any covered person, in whole or in part, if such person demonstrates to the satisfaction of the Secretary that— (A) alternative fueled vehicles that meet the normal requirements and practices of the prin- cipal business of that person are not reason- ably available for acquisition; or (B) alternative fuels that meet the normal requirements and practices of the principal business of that person are not available in the area in which the vehicles are to be operated. Page 8535 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 13253 (b) Revisions and extensions With respect to model years 1997 and there- after, the Secretary may— (1) revise the percentage requirements under subsection (a)(1) downward, except that under no circumstances shall the percentage require- ment for a model year be less than 20 percent; and (2) extend the time under subsection (a)(1) for up to 2 model years. (c) Option for electric utilities The Secretary shall, within 1 year after Octo- ber 24, 1992, issue regulations requiring that, in the case of a covered person whose principal business is generating, transmitting, importing, or selling at wholesale or retail electricity, the requirements of subsection (a)(1) shall not apply until after December 31, 1997, with respect to electric motor vehicles. Any covered person de- scribed in this subsection which plans to acquire electric motor vehicles to comply with the re- quirements of this section shall so notify the Secretary before January 1, 1996. (d) Report to Congress The Secretary shall, before January 1, 1998, submit a report to the Congress providing de- tailed information on actions taken to carry out this section, and the progress made and prob- lems encountered thereunder. (Pub. L. 102–486, title V, § 501, Oct. 24, 1992, 106 Stat. 2887.) § 13252. Replacement fuel supply and demand program (a) Establishment of program The Secretary shall establish a program to promote the development and use in light duty motor vehicles of domestic replacement fuels. Such program shall promote the replacement of petroleum motor fuels with replacement fuels to the maximum extent practicable. Such program shall, to the extent practicable, ensure the availability of those replacement fuels that will have the greatest impact in reducing oil im- ports, improving the health of our Nation’s economy and reducing greenhouse gas emis- sions. (b) Development plan and production goals Under the program established under sub- section (a), the Secretary, before October 1, 1993, in consultation with the Administrator, the Sec- retary of Transportation, the Secretary of Agri- culture, the Secretary of Commerce, and the heads of other appropriate agencies, shall review appropriate information and— (1) estimate the domestic and nondomestic production capacity for replacement fuels and alternative fueled vehicles needed to imple- ment this section; (2) determine the technical and economic feasibility of achieving the goals of producing sufficient replacement fuels to replace, on an energy equivalent basis— (A) at least 10 percent by the year 2000; and (B) at least 30 percent by the year 2010, of the projected consumption of motor fuel in the United States for each such year, with at least one half of such replacement fuels being domestic fuels; (3) determine the most suitable means and methods of developing and encouraging the production, distribution, and use of replace- ment fuels and alternative fueled vehicles in a manner that would meet the program goals described in subsection (a); (4) identify ways to encourage the develop- ment of reliable replacement fuels and alter- native fueled vehicle industries in the United States, and the technical, economic, and insti- tutional barriers to such development; and (5) determine the greenhouse gas emission implications of increasing the use of replace- ment fuels, including an estimate of the max- imum feasible reduction in such emissions from the use of replacement fuels. The Secretary shall publish in the Federal Reg- ister the results of actions taken under this sub- section, and provide for an opportunity for pub- lic comment. (Pub. L. 102–486, title V, § 502, Oct. 24, 1992, 106 Stat. 2888.) § 13253. Replacement fuel demand estimates and supply information (a) Estimates Not later than October 1, 1993, and annually thereafter, the Secretary, in consultation with the Administrator, the Secretary of Transpor- tation, and other appropriate State and Federal officials, shall estimate for the following cal- endar year— (1) the number of each type of alternative fueled vehicle likely to be in use in the United States; (2) the probable geographic distribution of such vehicles; (3) the amount and distribution of each type of replacement fuel; and (4) the greenhouse gas emissions likely to re- sult from replacement fuel use. (b) Information Beginning on October 1, 1994, the Secretary shall annually require— (1) fuel suppliers to report to the Secretary on the amount of each type of replacement fuel that such supplier— (A) has supplied in the previous calendar year; and (B) plans to supply for the following cal- endar year; (2) suppliers of alternative fueled vehicles to report to the Secretary on the number of each type of alternative fueled vehicle that such supplier— (A) has made available in the previous cal- endar year; and (B) plans to make available for the fol- lowing calendar year; and (3) such fuel suppliers to provide the Sec- retary information necessary to determine the greenhouse gas emissions from the replace- ment fuels used, taking into account the en- tire fuel cycle. (c) Protection of information Information provided to the Secretary under subsection (b) shall be subject to applicable pro-