,i  #aaeth ,,congress  #b;d ,session    
,h4 ,r4 #eiei  ,,in ,,the ,,house ,,of  
,,representatives  ,may #bd1 #bjah,mr4  
,mullin 7for himself and ,mr4 ,larson of
 ,connecticut7 introduced the following 
bill2 which was referred to the         
,committee on ,ways and ,means1 and in  
addition to the ,committees on          
,oversight and ,government ,reform1     
,energy and ,commerce1 and ,science1    
,space1 and ,technology1 for a period to
 be subsequently determined by the      
,speaker1 in each case for consideration
 of such provisions as fall within the  
jurisdiction of the committee concerned 
,a ,,bill  ,to promote national security
 and jobs through the use of natural gas
 to fuel heavy-duty trucks and fleet    
vehicles4  #a4 ,short title2 table of   
contents  7a7 ,short title ,this ,act   
may be cited as the ,natural ,gas       
,parity ,act4  7b7 ,table of contents   
,the table of contents of this ,act is  
as follows3  ,sec4 #a4 ,short title2    
table of contents4 ,sec4 #b4 ,extension 

of alternative fuels credit4 ,sec4 #c4  
,partial exclusion from excise tax      
imposed on heavy trucks sold at retail  
for alternative fuel trucks4 ,sec4 #d4  
,credit for new qualified natural gas   
motor vehicles4 ,sec4 #e4 ,extension and
 increase of alternative fuel vehicle   
refueling property credit4 ,sec4 #f4    
,liquefied natural gas equivalent for   
purposes of ,inland ,waterways ,trust   
,fund financing rate4 ,sec4 #g4 ,federal
 acquisition of alternative fueled      
vehicles4 ,sec4 #h4 ,research1          
development1 and demonstration of       
natural gas vehicles4 ,sec4 #i4 ,clean  
,cities program deployment grants4 ,sec4
 #aj4 ,diesel emissions reduction       
settlement amounts4 ,sec4 #aa4 ,sense of
 ,congress on the ,smartway ,program4   
,sec4 #ab4 ,sense of ,congress on       
infrastructure and public works         
projects4  #b4 ,extension of alternative
 fuels credit  7a7 ,in general ,section 
#fdbf7;d77#e7 of the ,internal ,revenue 
,code of #aihf is amended by striking   

,december #ca1 #bjag and inserting      
,december #ca1 #bjbb4  7b7 ,outlay      
payment of alternative fuels credit     
,section #fdbg7;e77#f77;,c7 of such     
,code is amended by striking ,december  
#ca1 #bjag and inserting ,december #ca1 
#bjbb4  7c7 ,effective date ,the        
amendments made by this section shall   
apply to fuels sold or used after       
,december #ca1 #bjag4  #c4 ,partial     
exclusion from excise tax imposed on    
heavy trucks sold at retail for         
alternative fuel trucks  7a7 ,in general
 ,section #djea7;a7 of the ,internal    
,revenue ,code of #aihf is amended by   
redesignating paragraph 7#e7 as         
paragraph 7#f7 and by inserting after   
paragraph 7#d7 the following new        
paragraph3  7#e7 ,partial exclusion for 
alternative fuel trucks  7,a7 ,in       
general ,in the case of any automobile  
truck chassis1 automobile truck body1 or
 tractor subject to tax under paragraph 
7#a7 which is fueled wholly or partially
 by an alternative fuel1 the rate of tax

 shall be reduced by #ce percent4  7,b7 
,alternative fuel ,for purposes of      
subparagraph 7,a71 the term alternative 
fuel means compressed natural gas1      
liquefied natural gas1 liquefied        
petroleum gas1 renewable natural gas1   
hydrogen1 and any liquid at least #he   
percent of the volume of which consists 
of methanol4  4  7b7 ,effective date    
,the amendment made by subsection 7a7   
shall apply to sales after the date of  
the enactment of this ,act4  #d4 ,credit
 for new qualified natural gas motor    
vehicles  7a7 ,natural gas motor vehicle
 credit ,subpart ,b of part ,,iv of     
subchapter ,a of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new section3  #cj;,e4 ,new    
qualified natural gas motor vehicles    
7a7 ,allowance of credit ,there shall be
 allowed as a credit against the tax    
imposed by this chapter for the taxable 
year an amount equal to the credit      
amount determined under subsection 7b7  

with respect to each new qualified      
natural gas motor vehicle placed in     
service by the taxpayer during the      
taxable year4  7b7 ,per vehicle dollar  
limitation  7#a7 ,in general ,the amount
 determined under this subsection with  
respect to any new qualified natural gas
 motor vehicle is--  7,a7 #g1ejj1 in the
 case of a new qualified natural gas    
motor vehicle which has a gross vehicle 
weight rating of less than #ad1jjj      
pounds1  7,b7 #ae1jjj1 in the case of a 
new qualified natural gas motor vehicle 
which has a gross vehicle weight rating 
of at least #ad1jjj pounds and not      
greater than #bf1jjj pounds1 and  7,c7  
#be1jjj1 in the case of a new qualified 
natural gas motor vehicle which has a   
gross vehicle weight rating of more than
 #bf1jjj pounds4  7#b7 ,reduced credit  
for certain partially fueled natural gas
 vehicles ,in the case of any vehicle   
which-- 7,a7 is not fueled wholly by    
specified natural gas1 and  7,b7 is not 
equipped with a dual-fuel compression   

engine that is engineered and designed  
to only operate on #ij percent or more  
specified natural gas1  paragraph 7#a7  
shall be applied by substituting for the
 dollar amount which is otherwise       
applicable for such vehicle an amount   
equal to #ej percent of such otherwise  
applicable amount4  7c7 ,application    
with other credits  7#a7 ,business      
credit treated as part of general       
business credit ,so much of the credit  
which would be allowed under subsection 
7a7 for any taxable year 7determined    
without regard to this subsection7 that 
is attributable to property of a        
character subject to an allowance for   
depreciation shall be treated as a      
credit listed in section #ch7;b7 for    
such taxable year 7and not allowed under
 subsection 7a774  7#b7 ,personal credit
 ,for purposes of this title1 the credit
 allowed under subsection 7a7 for any   
taxable year 7determined after          
application of paragraph 7#a77 shall be 
treated as a credit allowable under     

subpart ,a for such taxable year4  7d7  
,new qualified natural gas motor vehicle
 ,for purposes of this section-- 7#a7   
,in general ,the term new qualified     
natural gas motor vehicle means a motor 
vehicle--  7,a7 the original use of     
which commences with the taxpayer1  7,b7
 which is acquired for use or lease by  
the taxpayer and not for resale1  7,c7  
which is made by a manufacturer1  7,d7  
which is treated as a motor vehicle for 
purposes of title ,,ii of the ,clean    
,air ,act1  7,e7 which is fueled wholly 
or partially by specified natural gas1  
and  7,f7 in the case of a motor vehicle
 which is not fueled wholly by specified
 natural gas1 has a driving range on    
specified natural gas of--  7i7 in the  
case of a motor vehicle which has a     
gross vehicle weight rating of less than
 #h1ejj pounds1 at least #aej miles1 and
  7ii7 in any other case1 at least #bjj 
miles4  7#b7 ,application to            
after-market converted vehicles ,the    
requirement of paragraph 7#a77;,a7 shall

 be treated as satisfied with respect to
 a motor vehicle if--  7,a7 such vehicle
 was originally manufactured and        
certified to operate on gasoline or     
diesel fuel1  7,b7 such vehicle has been
 modified to have the capability to     
operate on specified natural gas1 and   
7,c7 the original use of such vehicle   
after such modification commences with  
the taxpayer4  7#c7 ,motor vehicle2     
manufacturer ,the terms motor vehicle   
and manufacturer have the meaning given 
such terms under paragraphs 7#b7 and    
7#c7 of section #cj;,d7d71 respectively4
  7#d7 ,specified natural gas ,the term 
specified natural gas means compressed  
natural gas1 liquefied natural gas1 and 
renewable natural gas4  7e7 ,limitation 
on number of new qualified natural gas  
motor vehicles eligible for credit  7#a7
 ,in general ,in the case of a new      
qualified natural gas motor vehicle sold
 during the phaseout period with respect
 to such vehicle1 only the applicable   
percentage of the credit otherwise      

allowable under subsection 7a7 shall be 
allowed4  7#b7 ,phaseout period ,for    
purposes of this subsection1 the        
phaseout period is-- 7,a7 in the case of
 a new qualified natural gas motor      
vehicle described in subsection         
7b77#a77;,a71 the period beginning with 
the second calendar quarter following   
the calendar quarter which includes the 
first date on which the number of new   
qualified natural gas motor vehicles    
described in subsection 7b77#a77;,a71   
manufactured by the manufacturer of such
 vehicle1 and sold for use in the       
,united ,states after ,december #ca1    
#bjah1 is at least #bjj1jjj1 and  7,b7  
in the case of a new qualified natural  
gas motor vehicle described in          
subparagraph 7,b7 or 7,c7 of subsection 
7b77#a71 the period beginning with the  
second calendar quarter following the   
calendar quarter which includes the     
first date on which the combined number 
of new qualified natural gas motor      
vehicles described in subparagraph 7,b7 

or 7,c7 of subsection 7b77#a71          
manufactured by the manufacturer of such
 vehicle1 and sold for use in the       
,united ,states after ,december #ca1    
#bjah1 is at least #ajj1jjj4  7#c7      
,applicable percentage ,for purposes of 
paragraph 7#a71 the applicable          
percentage is-- 7,a7 #ej percent for the
 first #b calendar quarters of the      
phaseout period1  7,b7 #be percent for  
the #c;d and #dth calendar quarters of  
the phaseout period1 and  7,c7 #j       
percent for each calendar quarter       
thereafter4  7#d7 ,controlled groups    
,rules similar to the rules of section  
#cj;,b7f77#d7 shall apply for purposes  
of this subsection4  7f7 ,application of
 certain rules ,rules similar to the    
rules of section #cj;,d7f7 shall apply  
for purposes of this section4  4  7b7   
,credit made part of general business   
credit ,section #ch7;b7 of such ,code is
 amended by striking plus at the end of 
paragraph 7#ca71 by striking the period 
at the end of paragraph 7#cb7 and       

inserting plus1 and by adding at the end
 the following new paragraph3  7#cc7 the
 portion of the new qualified natural   
gas motor vehicle credit to which       
section #cj;,e7c77#a7 applies4  4  7c7  
,conforming amendments  7#a7 ,section   
#ajaf7;a7 of such ,code is amended by   
striking and at the end of paragraph    
7#cg71 by striking the period at the end
 of paragraph 7#ch7 and inserting 1 and1
 and by adding at the end the following 
new paragraph3  7#ci7 to the extent     
provided in section #cj;,e7f74  4  7#b7 
,section #feja7m7 of such ,code is      
amended by inserting #cj;,e7f71 after   
#cj;,d7e77#d714  7#c7 ,the table of     
sections for subpart ,b of part ,,iv of 
subchapter ,a of chapter #a of such     
,code is amended by adding at the end   
the following new item3  ,sec4 #cj;,e4  
,new qualified natural gas motor        
vehicles4  4  7d7 ,effective date ,the  
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjag4  #e4 ,extension   

and increase of alternative fuel vehicle
 refueling property credit  7a7         
,extension of credit ,section #cj;,c7g7 
of the ,internal ,revenue ,code of #aihf
 is amended by striking ,december #ca1  
#bjag and inserting ,december #ca1      
#bjbb4  7b7 ,modification of dollar     
limitation ,section #cj;,c7b77#a7 of    
such ,code is amended by striking       
#cj1jjj and inserting #ajj1jjj4  7c7    
,effective dates  7#a7 ,extension of    
credit ,the amendment made by subsection
 7a7 shall apply to property placed in  
service after ,december #ca1 #bjag4     
7#b7 ,modification of dollar limitation 
,the amendment made by subsection 7b7   
shall apply to taxable years beginning  
after ,december #ca1 #bjag4  #f4        
,liquefied natural gas equivalent for   
purposes of ,inland ,waterways ,trust   
,fund financing rate  7a7 ,in general   
,section #djdb7;b77#b77;,a7 of the      
,internal ,revenue ,code of #aihf is    
amended to read as follows3  7,a7 ,the  
,inland ,waterways ,trust ,fund         

financing rate is #bi cents per gallon  
7per energy equivalent of a gallon of   
diesel1 in the case of liquefied natural
 gas74  4  7b7 ,energy equivalent of a  
gallon of diesel ,section #djdb7;b7 of  
the ,internal ,revenue ,code of #aihf is
 amended by adding at the end the       
following3  7#e7 ,energy equivalent of a
 gallon of diesel with respect to       
liquefied natural gas ,for purposes of  
paragraph 7#b77;,a71 the term energy    
equivalent of a gallon of diesel means  
#f4jf pounds of liquefied natural gas4  
4  7c7 ,effective date ,the amendments  
made by this section shall apply to any 
sale or use of fuel after ,december #ca1
 #bjah4  #g4 ,federal acquisition of    
alternative fueled vehicles  7a7        
,acquisition of natural gas vehicles by 
,general ,services ,administration  7#a7
 ,in general ,not later than #ahj days  
after the date of the enactment of this 
,act1 in order to increase the          
acquisition of natural gas vehicles1 the
 ,administrator of ,general ,services   

shall--  7,a7 review statutory          
requirements and regulations for        
impediments against the acquisition of  
natural gas vehicles2 and  7,b7 work    
with third-party vendors to develop     
regulations and adopt procedures that   
will make the acquisition of natural gas
 vehicles easier for ,federal agencies1 
including extending acquisition cycles  
and lease periods for aftermarket       
converted vehicles and allowing         
third-party vendors to offer natural gas
 vehicles on a regional basis4  7#b7    
,reports  7,a7 ,initial report ,not     
later than one year after the date of   
the enactment of this ,act1 the         
,administrator of ,general ,services    
shall submit to ,congress an initial    
report on--  7i7 the results of the     
review conducted under paragraph        
7#a77;,a72 and  7ii7 the regulations    
developed and procedures adopted under  
paragraph 7#a77;,b74  7,b7 ,final report
 ,not later than one year after the     
submission of the initial report under  

subparagraph 7,a71 the ,administrator of
 ,general ,services shall submit to     
,congress a final report on the impact  
of the regulations developed and        
procedures adopted under paragraph      
7#a77;,b7 on the acquisition of natural 
gas vehicles4  7#c7 ,minimum acquisition
 requirement ,notwithstanding any other 
provision of law1 of the total number of
 motor vehicles acquired by the         
,administrator of ,general ,services1 at
 least #be percent in fiscal year #bjbb 
and each fiscal year thereafter shall be
 natural gas vehicles4  7#d7            
,definitions ,in this subsection3 7,a7  
,aftermarket converted vehicle ,the term
 aftermarket converted vehicle means a  
motor vehicle that--  7i7 originally was
 manufactured and certified to operate  
on gasoline or diesel fuel2 and  7ii7   
has been modified to have the capability
 of operating on an alternative fuel 7as
 defined in section #cja of the ,energy 
,policy ,act of #aiib 7#db ,u4,s4,c4    
#acbaa774  7,b7 ,federal agency ,the    

term ,federal agency has the meaning    
given the term ,executive agency in     
section #aje of title #e1 ,united       
,states ,code4  7,c7 ,natural gas       
vehicle ,the term natural gas vehicle   
means a motor vehicle that has the      
capability of operating on natural gas1 
including renewable natural gas4  7,d7  
,third-party vendor ,the term           
third-party vendor means any private    
entity that is in the business of       
arranging the lease or procurement of   
motor vehicles for other businesses1 or 
for the ,federal ,government4  7b7      
,minimum ,federal fleet requirement     
relating to acquisition of medium and   
heavy duty motor vehicles ,subsection   
7b7 of section #cjc of the ,energy      
,policy ,act of #aiib 7#db ,u4,s4,c4    
#acbab7 is amended to read as follows3  
7b7 ,percentage requirements  7#a7      
,light duty motor vehicles ,of the total
 number of light duty motor vehicles    
acquired by a ,federal fleet1 at least  
the following percentages shall be      

alternative fueled vehicles3  7,a7 #be  
percent in fiscal year #aiif4  7,b7 #cc 
percent in fiscal year #aiig4  7,c7 #ej 
percent in fiscal year #aiih4  7,d7 #ge 
percent in fiscal year #aiii and each   
fiscal year thereafter4  7#b7 ,medium   
duty passenger vehicles and heavy duty  
motor vehicles ,of the total number of  
medium duty passenger vehicles and heavy
 duty motor vehicles acquired by a      
,federal fleet1 at least the following  
percentages shall be alternative fueled 
vehicles3  7,a7 #be percent in fiscal   
year #bjbj4  7,b7 #cc percent in fiscal 
year #bjba4  7,c7 #ej percent in fiscal 
year #bjbb4  7,d7 #ge percent in fiscal 
year #bjbc and each fiscal year         
thereafter4  7#c7 ,exception ,with      
respect to paragraph 7#a7 or 7#b71 as   
the case may be1 the ,secretary1 in     
consultation with the ,administrator of 
,general ,services1 where appropriate1  
may permit a ,federal fleet to acquire a
 smaller percentage than is required in 
such paragraph1 so long as the aggregate

 percentage acquired by all ,federal    
fleets is at least equal to the required
 percentage4  7#d7 ,definitions ,in this
 subsection3 7,a7 ,federal fleet ,the   
term ,federal fleet means #bj or more   
light duty motor vehicles1 medium duty  
passenger vehicles1 or heavy duty motor 
vehicles1 located in a metropolitan     
statistical area or consolidated        
metropolitan statistical area1 as       
established by the ,bureau of the       
,census1 with a #aihj population of more
 than #bej1jjj1 that are centrally      
fueled or capable of being centrally    
fueled and are owned1 operated1 leased1 
or otherwise controlled by or assigned  
to any ,federal executive department1   
military department1 ,government        
corporation1 independent establishment1 
or executive agency1 the ,united ,states
 ,postal ,service1 the ,congress1 the   
courts of the ,united ,states1 or the   
,executive ,office of the ,president4   
,such term does not include--  7i7 motor
 vehicles held for lease or rental to   

the general public2  7ii7 motor vehicles
 used for motor vehicle manufacturer    
product evaluations or tests2  7iii7 law
 enforcement vehicles2  7iv7 emergency  
vehicles2  7v7 motor vehicles acquired  
and used for military purposes that the 
,secretary of ,defense has certified to 
the ,secretary must be exempt for       
national security reasons2 or  7vi7     
nonroad vehicles1 including farm and    
construction vehicles4  7,b7 ,medium    
duty passenger vehicle ,the term medium 
duty passenger vehicle has the meaning  
given that term in subsection 7f77#a74  
7,c7 ,heavy duty motor vehicle ,the term
 heavy duty motor vehicle means a motor 
vehicle with a gross vehicle weight     
rating equal to or in excess of #h1eja  
pounds1 but does not include any medium 
duty passenger vehicle4  4  #h4         
,research1 development1 and             
demonstration of natural gas vehicles   
,there are authorized to be appropriated
 to the ,secretary of ,energy           
#be1jjj1jjj for fiscal year #bjai       

through #bjbc for research1 development1
 and demonstration activities with      
respect to natural gas vehicles1        
including advanced efficiency for       
natural gas vehicle engines1            
continuation of ,,arpa-,e ,methane      
,opportunities for ,vehicular ,energy   
projects1 and development of low        
nitrogen oxide or advanced high pressure
 direct injection engines4  #i4 ,clean  
,cities program deployment grants ,there
 is authorized to be appropriated to the
 ,secretary of ,energy #ej1jjj1jjj for  
fiscal year #bjai for natural gas       
vehicle deployment grants under the     
,clean ,cities program4  #aj4 ,diesel   
emissions reduction settlement amounts  
,at least #ej percent of amounts        
provided for under a settlement         
agreement regarding alleged violations  
of environmental law in which a         
defendant agrees to perform a diesel    
emissions reduction ,supplemental       
,environmental ,project under subtitle  
,g of title ,,vii of the ,energy ,policy

 ,act of #bjje 7#db ,u4,s4,c4 #afaca et 
seq47 shall be used for alternative fuel
 vehicle deployment grants4  #aa4 ,sense
 of ,congress on the ,smartway ,program 
,it is the sense of the ,congress that--
 7#a7 the ,smartway ,program of the     
,environmental ,protection ,agency      
should include recognition of the energy
 security1 fuel efficiency and          
environmental benefits of using domestic
 natural gas1 including renewable       
natural gas2  7#b7 the ,environmental   
,protection ,agency should incorporate  
incentives that reward businesses that  
deploy natural gas trucks2 and  7#c7    
such incentives should specifically     
quantify and reward users for the full  
fuel cycle emission reductions          
associated with using renewable natural 
gas4  #ab4 ,sense of ,congress on       
infrastructure and public works projects
 ,it is the sense of the ,congress      
that-- 7#a7 any future infrastructure   
and public works legislation should     
include incentives that encourage the   

greater use of domestic natural gas2    
7#b7 the increased use of abundant1     
low-cost domestic natural gas provides  
numerous economic and environmental     
benefits that could be further          
encouraged by rewarding projects and    
programs that pave the way for expanded 
use of natural gas such as upgrading or 
extending natural gas pipelines1        
expanding access to natural gas in areas
 underserved by natural gas1 and linking
 natural gas supplies to existing or new
 manufacturing hubs1 airports1 port     
facilities and other industrial or      
commercial centers2 and  7#c7 such      
legislation should encourage businesses 
to use natural gas to fuel motor        
vehicles and nonroad equipment by       
providing a point scoring system that   
rewards businesses with not less than a 
#aj percent and no more than a #bj      
percent advantage for using natural gas 
to fuel a majority of their vehicles    
used to carryout infrastructure         
development or public works projects4