To direct the Secretary of Transportation to offer federally financed, interest-free loans to public schools, municipalities, and local governments for the purchase of hybrid electric or other high-efficiency vehicles, and for other purposes.

March 5, 2003

Mr. ENGEL introduced the following bill; which was referred to the Committee on Energy and Commerce

To direct the Secretary of Transportation to offer federally financed, interest-free loans to public schools, municipalities, and local governments for the purchase of hybrid electric or other high-efficiency vehicles, and for other purposes.

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

SECTION 1. LOANS FOR HIGH-EFFICIENCY VEHICLES.

(a) LOAN PROGRAM AUTHORIZED- Subject to the availability of appropriations, the Secretary of Transportation shall establish a program to offer federally financed, interest-free loans to local educational agencies, public institutions of higher education, municipalities, and local governments for the purchase of hybrid electric vehicles or high-efficiency vehicles.

(b) REPAYMENT TERM- The time for repayment of a loan under this section may not exceed five years.

(c) SECURITY INTEREST- The Secretary shall require, as a condition of a loan under this section, that the borrower grant to the United States a security interest in any vehicle purchased with the proceeds of such loan.

(d) DEFINITIONS- In this section:

(1) The term `high-efficiency vehicle' means a motor vehicle that uses a fuel other than gasoline or diesel fuel.

(2) The term `hybrid electric vehicle' means a motor vehicle with a fuel-efficient gasoline engine assisted by an electric motor.

(3) The term `motor vehicle' has the meaning given that term in section 30102(a)(6) of title 49, United States Code.

(4) The term `local educational agency' has the meaning given that term in the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.).

(5) The term `public institution of higher education' has the meaning given the term `institution of higher education' in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)), but does not include private institutions described in that section.

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2004 through 2009 and such sums as may be necessary for each fiscal year thereafter.

END