H.R. 1491 (108th): Securing Transportation Energy Efficiency for Tomorrow Act of 2003

HR 1491 IH

To authorize programs and activities to improve energy use related to transportation and infrastructure facilities.

March 27, 2003

Mr. OBERSTAR (for himself, Ms. NORTON, Mr. HONDA, Mr. BLUMENAUER, Mr. PASCRELL, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. LIPINSKI, Mr. NADLER, Mr. HOLDEN, Ms. BERKLEY, Mr. DEFAZIO, Mr. HOEFFEL, Ms. MILLENDER-MCDONALD, Mr. MICHAUD, Mr. MATHESON, Mr. RAHALL, Mr. DAVIS of Tennessee, Mr. BISHOP of New York, and Mr. CAPUANO) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Science, Ways and Means, Resources, International Relations, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To authorize programs and activities to improve energy use related to transportation and infrastructure facilities.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the ‘Securing Transportation Energy Efficiency for Tomorrow Act of 2003’.

(b) TABLE OF CONTENTS-

Sec. 1. Short title.

Sec. 2. Findings.

TITLE I--PUBLIC BUILDINGS AND ECONOMIC DEVELOPMENT

Sec. 101. Use of photovoltaic energy in public buildings.

Sec. 102. Capitol complex.

Sec. 103. Grants for brightfield site development.

TITLE II--SURFACE TRANSPORTATION

Sec. 201. Highway fuel conservation program.

Sec. 202. Fuel cell bus technology development and demonstration projects.

Sec. 203. Conserve by bicycling program.

Sec. 204. Energy impacts of Federal-aid highway and transit projects.

Sec. 205. Railroad efficiency.

TITLE III--AVIATION

Sec. 301. Clean airport bus pilot program.

Sec. 302. Clean aircraft engines.

TITLE IV--WATER RESOURCES

Sec. 401. Marine efficiency.

Sec. 402. Improving hydropower capabilities.

Sec. 403. Encouragement of State and provincial prohibitions on off-shore drilling in the Great Lakes.

TITLE V--TAX PROVISIONS

Sec. 501. Extension of transportation fringe benefit to commuters who bicycle, carpool, or use car-sharing.

SEC. 2. FINDINGS.

Congress finds the following:

(1) As the Nation’s largest energy consumer, the Federal Government is in a unique position to promote energy conservation and efficiency, particularly in the transportation sector and in the operation of Federal buildings.

(2) Each year for the past 2 decades, energy use in the transportation sector has increased by a rate of 1.5 percent.

(3) In 2000, the transportation sector consumed a greater share of the Nation’s petroleum (66 percent) than it did in 1973 (50 percent).

(4) The transportation sector is responsible for 27 percent of all greenhouse gases emitted in the United States, with transportation-related emissions of carbon dioxide increasing by nearly 15 percent in the 1990’s.

(5) Transportation remains a primary source of emissions for 3 of the 6 air pollutants regulated under the Clean Air Act: carbon monoxide, nitrogen oxides, and volatile organic compounds.

(6) As the Federal Government’s largest landlord, the General Services Administration should lead in the promotion and utilization of alternative and efficient energy sources.

TITLE I--PUBLIC BUILDINGS AND ECONOMIC DEVELOPMENT

SEC. 101. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

(a) IN GENERAL- Subchapter VI of chapter 31 of title 40, United States Code, is amended by adding at the end the following:

‘Sec. 3177. Use of photovoltaic energy in public buildings

‘(a) PHOTOVOLTAIC ENERGY COMMERCIALIZATION PROGRAM-

‘(1) IN GENERAL- The Administrator of General Services may establish a photovoltaic energy commercialization program for the procurement and installation of photovoltaic solar electric systems for electric production in new and existing public buildings.

‘(2) PURPOSES- The purposes of the program shall be to accomplish the following:

‘(A) To accelerate the growth of a commercially viable photovoltaic industry to make this energy system available to the general public as an option which can reduce the national consumption of fossil fuel.

‘(B) To reduce the fossil fuel consumption and costs of the Federal Government.

‘(C) To attain the goal of installing solar energy systems in 20,000 Federal buildings by 2010, as contained in the Federal Government’s Million Solar Roof Initiative of 1997.

‘(D) To stimulate the general use within the Federal Government of life-cycle costing and innovative procurement methods.

‘(E) To develop program performance data to support policy decisions on future incentive programs with respect to energy.

‘(3) ACQUISITION OF PHOTOVOLTAIC SOLAR ELECTRIC SYSTEMS-

‘(A) IN GENERAL- The program shall provide for the acquisition of photovoltaic solar electric systems and associated storage capability for use in public buildings.

‘(B) ACQUISITION LEVELS- The acquisition of photovoltaic electric systems shall be at a level substantial enough to allow use of low-cost production techniques with at least 150 megawatts (peak) cumulative acquired during the 5 years of the program.

‘(4) ADMINISTRATION- The Administrator shall administer the program and shall--

‘(A) prescribe such rules and regulations as may be appropriate to monitor and assess the performance and operation of photovoltaic solar electric systems installed pursuant to this subsection;

‘(B) develop innovative procurement strategies for the acquisition of such systems; and

‘(C) transmit to the Committee on Transportation and Infrastructure of the House of Representatives and to the Committee on Environment and Public Works of the Senate an annual report on the results of the program.

‘(b) PHOTOVOLTAIC SYSTEMS EVALUATION PROGRAM-

‘(1) IN GENERAL- Not later than 60 days after the date of enactment of this section, the Administrator, in consultation with the Secretary of Energy, shall establish a photovoltaic solar energy systems evaluation program to evaluate such photovoltaic solar energy systems as are required in public buildings.

‘(2) PROGRAM REQUIREMENT- In evaluating photovoltaic solar energy systems under the program, the Administrator shall ensure that such systems reflect the most advanced technology.

‘(c) AUTHORIZATION OF APPROPRIATIONS-

‘(1) PHOTOVOLTAIC ENERGY COMMERCIALIZATION PROGRAM- There is authorized to be appropriated to carry out subsection (a) $210,000,000 for each of fiscal years 2004 through 2008. Such sums shall remain available until expended.

‘(2) PHOTOVOLTAIC SYSTEMS EVALUATION PROGRAM- There is authorized to be appropriated to carry out subsection (b) $52,700,000 for each of fiscal years 2004 through 2008. Such sums shall remain available until expended.’.

(b) CONFORMING AMENDMENT- The analysis for such chapter is amended by inserting after the item relating to section 3176 the following:

‘3177. Use of photovoltaic energy in public buildings’.

SEC. 102. CAPITOL COMPLEX.

(a) STUDY ON ENERGY INFRASTRUCTURE- The Architect of the Capitol, building on the Master Plan Study completed in July 2000, shall conduct a study to evaluate the energy infrastructure of the Capitol Complex to determine how the infrastructure could be augmented to become more energy efficient, using photovoltaic solar energy systems, district-heating, and other unconventional and renewable energy resources, in a way that would enable the Complex to have reliable utility service in the event of power fluctuations, shortages, or outages.

(b) REPORT- Not later than 1 year after the date of enactment of this Act, the Architect of the Capitol shall transmit to Congress a report containing the results of the study conducted under subsection (a).

(c) AUTHORIZATION- There are authorized to be appropriated to the Architect of the Capitol such sums as may be necessary to carry out this section. Such sums shall remain available until expended.

SEC. 103. GRANTS FOR BRIGHTFIELD SITE DEVELOPMENT.

(a) IN GENERAL- Title II of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3141 et seq.) is amended--

(1) by redesignating sections 210 through 213 as sections 211 through 214, respectively; and

(2) by inserting after section 209 the following:

‘SEC. 210. GRANTS FOR BRIGHTFIELD SITE DEVELOPMENT.

‘(a) BRIGHTFIELD SITE DEFINED- In this section, the term ‘brightfield site’ means a brownfield site (as defined in section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601)) redeveloped through the incorporation of solar energy technologies.

‘(b) ESTABLISHMENT OF DEMONSTRATION PROGRAM- The Secretary shall carry out a demonstration program for the development of brightfield sites.

‘(c) GRANTS- On the application of an eligible recipient, the Secretary may make grants under the program for projects for the development of brightfield sites.

‘(d) CRITERIA FOR GRANTS- The Secretary may provide a grant for a project under this section if the Secretary determines that the project will--

‘(1) utilize solar energy technologies to develop abandoned or contaminated sites for commercial use; and

‘(2) improve the commercial and economic opportunities in the area where the project is located.

‘(e) AUTHORIZATION- There is authorized to be appropriated to carry out this section--

‘(1) $20,000,000 for fiscal year 2004;

‘(2) $30,000,000 for fiscal year 2005;

‘(3) $40,000,000 for fiscal year 2006;

‘(4) $50,000,000 for fiscal year 2007; and

‘(5) $60,000,000 for fiscal year 2008.

Such sums shall remain available until expended.’.

(b) CONFORMING AMENDMENT- The table of contents in section 1(b) of the Public Works and Economic Development Act of 1965 (42 U.S.C. prec. 3121) is amended by striking the items relating to sections 210 through 213 and inserting the following:

‘Sec. 210. Grants for brightfield site development.

‘Sec. 211. Changed project circumstances.

‘Sec. 212. Use of funds in projects constructed under projected cost.

‘Sec. 213. Reports by recipients.

‘Sec. 214. Prohibition on use of funds for attorney’s and consultant’s fees.’.

TITLE II--SURFACE TRANSPORTATION

SEC. 201. HIGHWAY FUEL CONSERVATION PROGRAM.

(a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code, is amended by adding at the end the following:

‘Sec. 165. Energy conservation program

‘(a) ESTABLISHMENT OF PROGRAM- The Secretary shall establish and carry out a program to provide grants to States and local governments for fuel conservation projects.

‘(b) ELIGIBLE PROJECTS- Projects carried out under the program shall be designed to make operational improvements to reduce fuel consumption on Federal-aid highways and other roads. Such projects may include--

‘(1) data collection and analysis for improving traffic signal timing;

‘(2) implementation of improved and coordinated traffic signal timing (including capital costs of new systems, or system upgrades);

‘(3) planning and implementation of freeway management systems; and

‘(4) operational improvements with high reductions in energy consumption.

‘(c) APPLICATIONS- To be eligible to receive a grant under this section, a State or local government shall submit to the Secretary an application at such time, in such form, and in accordance with such requirements as the Secretary shall establish by regulation.

‘(d) FEDERAL SHARE- The Federal share of the cost of a project carried out using amounts from a grant under this section shall be 50 percent.

‘(e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section a total of $200,000,000 for fiscal years 2004 through 2008. Such sums shall remain available until expended.’.

(b) CONFORMING AMENDMENT- The analysis for such chapter is amended by inserting after the item relating to section 164 the following:

‘165. Energy conservation program.’.

SEC. 202. FUEL CELL BUS TECHNOLOGY DEVELOPMENT AND DEMONSTRATION PROJECTS.

Section 5308 of title 49, United States Code, is amended by adding at the end the following:

‘(g) FUEL CELL BUS TECHNOLOGY DEVELOPMENT AND DEMONSTRATION PROJECTS-

‘(1) AUTHORITY TO MAKE GRANTS- The Secretary may make grants under this subsection to not more than 10 designated recipients for projects for the research, development, and demonstration of fuel cell bus technology.

‘(2) APPLICATIONS- Not later than January 1 of each year, any designated recipient seeking to apply for a grant under this subsection shall submit an application to the Secretary, in such form and in accordance with such requirements as the Secretary shall establish by regulation.

‘(3) PREFERENCE- In selecting grant recipients under this subsection, the Secretary shall give preference to those applicants who have an existing investment in fuel cell buses and hydrogen fuel cell infrastructure.

‘(4) NONAPPLICABILITY OF REQUIREMENTS- Except as specifically provided in this subsection, the requirements for grants made under this section shall not apply to grants made under this subsection.

‘(5) FEDERAL SHARE- The amount of a grant made to a designated recipient under this subsection for a project shall not exceed 80 percent of the total cost of the project.

‘(6) AVAILABILITY OF FUNDS- Any amount made available under this subsection--

‘(A) shall remain available to a project for 1 year after the fiscal year for which the amount is made available; and

‘(B) that remains unobligated at the end of the period described in subparagraph (A), shall be added to the amount made available under this subsection in the following fiscal year.

‘(7) DESIGNATED RECIPIENT DEFINED- The term ‘designated recipient’ has the same meaning as in subsection (a).

‘(8) FUNDING-

‘(A) FROM THE TRUST FUND- There shall be available from the Mass Transit Account of the Highway Trust Fund to carry out this subsection--

‘(i) $20,000,000 for fiscal year 2004;

‘(ii) $30,000,000 for fiscal year 2005;

‘(iii) $40,000,000 for fiscal year 2006;

‘(iv) $50,000,000 for fiscal year 2007; and

‘(v) $60,000,000 for fiscal year 2008.

‘(B) FROM THE GENERAL FUND- In addition to amounts made available under subparagraph (A), there is authorized to be appropriated to carry out this subsection--

‘(i) $10,000,000 for fiscal year 2004;

‘(ii) $15,000,000 for fiscal year 2005;

‘(iii) $20,000,000 for fiscal year 2006;

‘(iv) $25,000,000 for fiscal year 2007; and

‘(v) $30,000,000 for fiscal year 2008.

‘(C) CONTRACT AUTHORITY-

‘(i) GRANTS FINANCED FROM THE HIGHWAY TRUST FUND- A grant approved by the Secretary that is financed with amounts made available under subparagraph (A) is a contractual obligation of the United States Government to pay the Government’s share of the cost of the project.

‘(ii) GRANTS FINANCED FROM GENERAL FUNDS- A grant approved by the Secretary that is financed with amounts made available under subparagraph (B) is a contractual obligation of the Government to pay the Government’s share of the cost of the project only to the extent that

amounts are provided in advance in an appropriations Act.’.

SEC. 203. CONSERVE BY BICYCLING PROGRAM.

(a) ESTABLISHMENT- The Secretary of Transportation shall establish a Conserve By Bicycling pilot program that shall provide for up to 10 geographically dispersed projects to encourage the use of bicycles in place of motor vehicles.

(b) PROJECTS- Projects carried out under this section shall--

(1) use education and marketing to convert motor vehicle trips to bike trips;

(2) establish infrastructure facilities necessary to support the conversion to bike trips;

(3) document project results and energy savings; and

(4) facilitate partnerships among entities in the fields of transportation, law enforcement, education, public health, environment, or energy.

(c) FEDERAL SHARE- The Federal share of the cost of a project carried out under this section shall not exceed 80 percent.

(d) REPORT- Not later than 2 years after implementation of the projects under this section, the Secretary shall transmit to Congress a report on the results of the pilot program.

(e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section $10,000,000. Such sums shall remain available until expended.

SEC. 204. ENERGY IMPACTS OF FEDERAL-AID HIGHWAY AND TRANSIT PROJECTS.

Section 109 of title 23, United States Code, is amended by adding at the end the following:

‘(r) CONSIDERATION OF ENERGY IMPACTS- Environmental impact statements prepared for Federal-aid highway and transit projects shall consider energy impacts as an environmental consequence of the project. Energy impacts shall be quantified and comparisons made between alternatives. The cost of annual energy consumption shall be determined for each alternative considered in the environmental impact statement.’.

SEC. 205. RAILROAD EFFICIENCY.

(a) ESTABLISHMENT- The Secretary of Transportation, in conjunction with the Administrator of the Environmental Protection Agency, shall establish a public-private research partnership involving the Federal Government, railroad carriers, locomotive manufacturers and equipment suppliers, and the research and test center dedicated to the advancement of railroad technology, efficiency, and safety that is owned by the Federal Railroad Administration and operated in the private sector. The goal of the initiative shall include developing and demonstrating locomotive technologies that increase fuel economy, reduce emissions, and lower costs.

(b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section $35,000,000 for each of fiscal years 2004 through 2006. Such sums shall remain available until expended.

TITLE III--AVIATION

SEC. 301. CLEAN AIRPORT BUS PILOT PROGRAM.

(a) IN GENERAL- Subchapter I of chapter 471 of title 49, United States Code, is amended by adding at the end the following:

‘Sec. 47138. Clean airport bus pilot program

‘(a) ESTABLISHMENT- The Secretary of Transportation shall establish a pilot program for awarding grants on a competitive basis to eligible entities for facilitating the use of alternative fuel and ultra-low sulfur diesel buses at public airports through airport bus replacement and fleet expansion programs under this section.

‘(b) REQUIREMENTS- Not later than 6 months after the date of enactment of this Act, the Secretary shall establish and publish in the Federal Register requirements

for implementation of the program under this section, including eligibility for assistance, management, transfer, and ultimate disposition of buses, and certification requirements to ensure compliance with this section.

‘(c) SOLICITATION- Not later than 9 months after the date of enactment of this Act, the Secretary shall solicit proposals for grants under this section.

‘(d) ELIGIBLE RECIPIENTS- A grant shall be awarded under this section only to a public agency responsible for bus service at a public airport.

‘(e) TYPES OF GRANTS-

‘(1) IN GENERAL- Grants under this section may be for the purposes described in paragraph (2), paragraph (3), or both.

‘(2) REPLACEMENT BUS GRANTS- A grant under this section may be used for the acquisition of replacement buses.

‘(3) FLEET EXPANSION BUS GRANTS- A grant under this section may be used for the acquisition of not more than 10 buses to expand a fleet of airport buses at any single airport.

‘(f) PRIORITY OF GRANT APPLICATIONS- In awarding bus replacement grants described in subsection (e)(2), the Secretary shall give priority to awarding grants to applicants emphasizing the replacement of buses to be used at a public airport located in a nonattainment area, as defined in section 171 of the Clean Air Act (42 U.S.C. 7501).

‘(g) CONDITIONS OF GRANT- A grant provided under this section shall include the following conditions:

‘(1) All buses acquired with funds provided under the grant shall be operated as part of the airport bus fleet for which the grant was made for a minimum of 5 years.

‘(2) Funds provided under the grant may only be used--

‘(A) to acquire new or replacement alternative fuel and ultra-low sulfur diesel fuel buses, including State taxes and contract fees; and

‘(B) to construct infrastructure facilities to enable the delivery of fuel and services necessary for alternative fuel and ultra-low sulfur diesel fuel buses.

‘(h) FEDERAL SHARE- The Federal share of the cost of a bus acquired or other project or activity funded using amounts made available to carry out this section shall be 80 percent.

‘(i) DEPLOYMENT AND DISTRIBUTION- The Secretary shall seek to the maximum extent practicable to ensure a broad geographic distribution of grant awards, with a goal of no State receiving more than 10 percent of the grant funding made available under this section for a fiscal year.

‘(j) DEFINITIONS- In this section, the following definitions apply:

‘(1) AIRPORT BUS- The term ‘airport bus’ means a bus operated by a public agency to provide transportation between the facilities of a public airport.

‘(2) ALTERNATIVE FUEL BUS- The term ‘alternative fuel bus’ means a bus powered substantially by electricity (including electricity supplied by a fuel cell), or by liquefied natural gas, compressed natural gas, liquefied petroleum gas, hydrogen, propane, or methanol or ethanol at no less than 85 percent by volume.

‘(3) PUBLIC AIRPORT- The term ‘public airport’ has the meaning such term has under section 47102 of title 49, United States Code.

‘(4) ULTRA-LOW SULFUR DIESEL BUS- The term ‘ultra-low sulfur diesel bus’ means a bus powered by diesel fuel which contains sulfur at not more than 15 parts per million.

‘(k) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Secretary of Transportation for carrying out this section--

‘(1) $20,000,000 for fiscal year 2004;

‘(2) $30,000,000 for fiscal year 2005;

‘(3) $40,000,000 for fiscal year 2006;

‘(4) $50,000,000 for fiscal year 2007; and

‘(5) $60,000,000 for fiscal year 2008.

Such sums shall remain available until expended.’.

(b) CONFORMING AMENDMENT- The analysis for chapter 471 of title 49, United States Code, is amended by inserting after the item relating to section 47137 the following:

‘47138. Clean airport bus pilot program.’.

SEC. 302. CLEAN AIRCRAFT ENGINES.

(a) PUBLIC-PRIVATE RESEARCH PARTNERSHIP- The Administrator of the Federal Aviation Administration shall establish a public-private research partnership involving the Federal Aviation Administration, the National Aeronautics and Space Administration, research universities, and representatives of the aero-propulsion industry.

(b) DUTIES- The partnership shall--

(1) develop a clean ground demonstrator engine utilizing technologies developed by the Ultra Efficient Engine Technology (UEET) and Quiet Aircraft Technology (QAT) programs of the National Aeronautics and Space Administration; and

(2) focus on the development and certification of environmentally friendly manufacturing technologies, materials, and overhaul and repair.

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal years 2004

through 2008. Such sums shall remain available until expended.

TITLE IV--WATER RESOURCES

SEC. 401. MARINE EFFICIENCY.

(a) ESTABLISHMENT- The Secretary of Transportation shall establish a public-private research partnership involving the Federal Government, vessel operators, ports, terminal operators, shipyards, and equipment suppliers to develop and demonstrate technologies that--

(1) increase fuel economy, reduce emissions, and lower costs of marine transportation; and

(2) increase the efficiency of intermodal transfers.

(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal years 2004 through 2008. Such sums shall remain available until expended.

SEC. 402. IMPROVING HYDROPOWER CAPABILITIES.

(a) STUDY- The Secretary of the Army shall conduct a study on the potential for reduced fossil fuel consumption through an increase in United States hydropower capabilities.

(b) CONTENTS- The study shall include an examination of the potential for improving hydropower capabilities at dams owned or operated by the Corps of Engineers.

(c) REPORT- Not later than 1 year after the date of enactment of this Act, the Secretary shall transmit to Congress a report containing the results of the study conducted under this section.

SEC. 403. ENCOURAGEMENT OF STATE AND PROVINCIAL PROHIBITIONS ON OFF-SHORE DRILLING IN THE GREAT LAKES.

(a) FINDINGS- Congress finds the following:

(1) The water resources of the Great Lakes Basin are precious natural resources of the States of Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania, and Wisconsin, and the Canadian Province of Ontario.

(2) The environmental dangers associated with off-shore drilling in the Great Lakes for oil and gas outweigh the potential benefits of such drilling.

(3) In accordance with the Submerged Lands Act (43 U.S.C. 1301 et seq.), each State that borders any of the Great Lakes has authority over the area between that State’s coastline and the boundary of Canada or another State.

(4) The States of Illinois, Michigan, New York, Pennsylvania, and Wisconsin each have a statutory prohibition of off-shore drilling in the Great Lakes for oil and gas.

(5) The States of Indiana, Minnesota, and Ohio do not have such a prohibition.

(6) The Canadian Province of Ontario does not have such a prohibition, and drilling for and production of gas occurs in the Canadian portion of Lake Erie.

(b) ENCOURAGEMENT OF STATE AND PROVINCIAL PROHIBITIONS- Congress encourages--

(1) the States of Illinois, Michigan, New York, Pennsylvania, and Wisconsin to continue to prohibit off-shore drilling in the Great Lakes for oil and gas;

(2) the States of Indiana, Minnesota, and Ohio and the Canadian Province of Ontario to enact a prohibition of such drilling; and

(3) the Canadian Province of Ontario to require the cessation of any such drilling and any production resulting from such drilling.

TITLE V--TAX PROVISIONS

SEC. 501. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO COMMUTERS WHO BICYCLE, CARPOOL, OR USE CAR-SHARING.

(a) IN GENERAL- Paragraph (1) of section 132(f) of the Internal Revenue Code of 1986 (relating to general rule for qualified transportation fringe) is amended by adding at the end the following:

‘(D) Other commuting allowances.’.

(b) OTHER COMMUTING ALLOWANCES DEFINED- Paragraph (5) of section 132(f) of such Code (relating to definitions) is amended by adding at the end the following:

‘(F) OTHER COMMUTING ALLOWANCES-

‘(i) IN GENERAL- The term ‘other commuting allowances’ means an amount provided to an employee for transportation by bicycling, carpooling, or car-sharing if such transportation is in connection with travel between the employee’s residence and place of employment.

‘(ii) BICYCLING- For purposes of clause (i), bicycling includes regular bicycle maintenance, and expenses for accessing space, locker, and shower facilities, secured bike storage, and other services directly associated with bicycling.

‘(iii) CARPOOLING- For purposes of clause (i), the term ‘carpooling’ means the carrying of more than 1, but not more than 6, passengers by highway vehicle on any public road or highway, either regularly or occasionally, with or without compensation, but not for profit.

‘(iv) CAR-SHARING- For purposes of clause (i), the term ‘car sharing’ means shared-use vehicle services under which members are provided with access to a fleet of highway vehicles for use on an as-needed basis.’.

(c) DOLLAR LIMITATION ON EXCLUSION- Paragraph (2) of section 132(f) of such Code is amended by striking ‘and’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ‘, and’, and by inserting after subparagraph (B) the following new subparagraph:

‘(C) $75 per month in the case of the benefits described in subparagraph (D) of paragraph (1).’.

(d) ADJUSTMENT FOR INFLATION- Subparagraph (A) of section 132(f)(6) is amended by adding at the end the following: ‘In the case of any taxable year beginning in a calendar year after 2003, clause (ii) shall be applied by substituting ‘calendar year 2002’ for ‘calendar year 1998’ for purposes of adjusting the dollar amount contained in paragraph (2)(C).

(e) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

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