Page:United States Statutes at Large Volume 119.djvu/833

 PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 815

of the fuel, as certified to the Secretary by the head of the agency; or ‘‘(II) the cost of the alternative fuel otherwise required to be used in the vehicle is unreasonably more expensive compared to gasoline, as certified to the Secretary by the head of the agency. ‘‘(ii) The Secretary shall monitor compliance with this subparagraph by all such fleets and shall report annually to Congress on the extent to which the requirements of this subparagraph are being achieved. The report shall include information on annual reductions achieved from the use of petroleum-based fuels and the problems, if any, encountered in acquiring alternative fuels.’’.

Reports.

SEC. 702. INCREMENTAL COST ALLOCATION.

Section 303(c) of the Energy Policy Act of 1992 (42 U.S.C. 13212(c)) is amended by striking ‘‘may’’ and inserting ‘‘shall’’. SEC. 703. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.

(a) ALTERNATIVE COMPLIANCE.—Title V of the Energy Policy Act of 1992 (42 U.S.C. 13251 et seq.) is amended— (1) by redesignating section 514 (42 U.S.C. 13264) as section 515; and (2) by inserting after section 513 (42 U.S.C. 13263) the following: ‘‘SEC. 514. ALTERNATIVE COMPLIANCE.

42 USC 13263a.

‘‘(a) APPLICATION FOR WAIVER.—Any covered person subject to section 501 and any State subject to section 507(o) may petition the Secretary for a waiver of the applicable requirements of section 501 or 507(o). ‘‘(b) GRANT OF WAIVER.—The Secretary shall grant a waiver of the requirements of section 501 or 507(o) on a showing that the fleet owned, operated, leased, or otherwise controlled by the State or covered person— ‘‘(1) will achieve a reduction in the annual consumption of petroleum fuels by the fleet equal to— ‘‘(A) the reduction in consumption of petroleum that would result from 100 percent cumulative compliance with the fuel use requirements of section 501; or ‘‘(B) in the case of an entity covered under section 507(o), a reduction equal to the annual consumption by the State entity of alternative fuels if all of the cumulative alternative fuel vehicles of the State entity given credit under section 508 were to use alternative fuel 100 percent of the time; and ‘‘(2) is in compliance with all applicable vehicle emission standards established by the Administrator of the Environmental Protection Agency under the Clean Air Act (42 U.S.C. 7401 et seq.). ‘‘(c) REPORTING REQUIREMENT.—Not later than December 31 of a model year, any State or covered person granted a waiver under this section for the preceding model year shall submit to the Secretary an annual report that— ‘‘(1) certifies the quantity of the petroleum motor fuel reduction of the State or covered person during the preceding model year; and

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