Sec. 2. Limitation on procurement under Clean School Bus program
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Section 741 of the Energy Policy Act of 2005 ( 42 U.S.C. 16091 ) is amended— in subsection (b)— by redesignating paragraph
(8)as paragraph (9); and by inserting after paragraph
(7)the following: Except as provided in subparagraph (C), financial assistance made available under this subsection shall not be used in awarding a contract or subcontract to an entity on or after the date of enactment of the Secure School Buses Act of 2024 for the procurement of a school bus for use in accordance with paragraph
(5)if the manufacturer of the school bus is owned or controlled by, is a subsidiary of, is contractually tied to, or is otherwise related legally or financially to a corporation based in a country that— is identified as a nonmarket economy country (as defined in section 771(18) of the Tariff Act of 1930 ( 19 U.S.C. 1677(18) )) as of the date of enactment of the Secure School Buses Act of 2024 ; was identified by the United States Trade Representative in the most recent report required by section 182 of the Trade Act of 1974 ( 19 U.S.C. 2242 ) as a priority foreign country under subsection (a)(2) of that section; and is subject to monitoring by the United States Trade Representative under section 306 of the Trade Act of 1974 ( 19 U.S.C. 2416 ). This paragraph shall be applied in a manner consistent with the obligations of the United States under international agreements. Subject to subclause (II), this paragraph shall not apply to any contract or subcontract made by an eligible recipient with a school bus manufacturer described in subparagraph
(A)if the manufacturer and the eligible recipient have a contract for school bus procurement that was executed before the date of enactment of the Secure School Buses Act of 2024 . For purposes of subclause (I), the term contract or subcontract does not include an option, an amendment, or an extension of the original contract that is exercised or executed on or after the date of enactment of the Secure School Buses Act of 2024 . For purposes of this paragraph but subject to subclause (II), the term otherwise related legally or financially does not include— a minority relationship or investment; or a relationship with or investment in a subsidiary, joint venture, or other entity based in a country described in subparagraph
(A)that does not export school buses for use in the United States. Notwithstanding subclause (I)(aa), for purposes of this paragraph, the term otherwise related legally or financially includes a minority relationship or investment if the relationship or investment involves a corporation based in the People's Republic of China. ; and in subsection (c)(3)(E), by striking subsection (b)(7) and inserting subsection (b)(9) .
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Sec. 2
Limitation on procurement under Clean School Bus program
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