HR 670 IHCommentsClose CommentsPermalink

To promote the national security and stability of the United States economy by reducing the dependence of the United States on foreign oil through the use of alternative fuels and new vehicle technologies, and for other purposes.CommentsClose CommentsPermalink

January 24, 2007

Mr. ENGEL (for himself, Mr. KINGSTON, Mr. INSLEE, Mr. SAXTON, Ms. ESHOO, Mrs. BONO, Mr. WYNN, Mr. TERRY, Ms. HARMAN, Mr. ROGERS of Alabama, Ms. SCHAKOWSKY, Mr. BARTLETT of Maryland, Mr. UDALL of Colorado, Mr. INGLIS of South Carolina, Mr. ROSS, Mr. CAMPBELL of California, Mr. WEINER, Mr. GILCHREST, Mr. TOWNS, Mr. SOUDER, Mr. DEFAZIO, Mr. GERLACH, Mr. BISHOP of New York, Mr. RENZI, Mr. ISRAEL, Mr. EVERETT, Mr. HALL of New York, Mr. LOBIONDO, Ms. MATSUI, Mr. MCCOTTER, Mrs. LOWEY, Mr. LINDER, Mr. KUHL of New York, Mr. HINCHEY, Mr. WESTMORELAND, Mr. BERMAN, Mr. GINGREY, Mr. ACKERMAN, Mr. ANDREWS, Mr. ARCURI, Ms. BERKLEY, Mr. BISHOP of Georgia, Mr. COHEN, Mr. CLEAVER, Ms. GIFFORDS, Mrs. GILLIBRAND, Mr. HONDA, Mr. KIND, Mr. KLEIN of Florida, Mr. LIPINSKI, Mr. MCNULTY, Ms. MCCOLLUM of Minnesota, Mr. MOORE of Kansas, Mr. MORAN of Virginia, Mrs. NAPOLITANO, Mr. PRICE of North Carolina, Ms. SCHWARTZ, Mr. ROTHMAN, Mr. RUPPERSBERGER, Mr. SCHIFF, Mr. BURTON of Indiana, Mr. SCOTT of Georgia, Mr. PLATTS, Mr. SHERMAN, Mr. WEXLER, Mr. PRICE of Georgia, Mr. LINCOLN DAVIS of Tennessee, and Mr. LANTOS) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Science and Technology, Ways and Means, Transportation and Infrastructure, and Oversight and Government Reform, 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 concernedCommentsClose CommentsPermalink

To promote the national security and stability of the United States economy by reducing the dependence of the United States on foreign oil through the use of alternative fuels and new vehicle technologies, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Dependence Reduction through Innovation in Vehicles and Energy Act' or the `DRIVE Act'.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. Findings and purposes.CommentsClose CommentsPermalink

TITLE I--OIL SAVINGS ACTION PLAN AND REQUIREMENTS

Sec. 101. Oil savings target and action plan.CommentsClose CommentsPermalink





Sec. 102. Standards and requirements.CommentsClose CommentsPermalink





Sec. 103. Evaluation.CommentsClose CommentsPermalink





Sec. 104. Review and update of action plan.CommentsClose CommentsPermalink





Sec. 105. Baseline and analysis requirements.CommentsClose CommentsPermalink





Sec. 106. Review and scoring of Federal actions related to oil savings action plan.CommentsClose CommentsPermalink





Sec. 107. Federal Government oil usage audit.CommentsClose CommentsPermalink





Sec. 108. Nationwide media campaign to decrease oil consumption.CommentsClose CommentsPermalink

TITLE II--FUEL EFFICIENT VEHICLES FOR THE 21ST CENTURY

Sec. 201. Tire efficiency program.CommentsClose CommentsPermalink





Sec. 202. Reduction of school bus idling.CommentsClose CommentsPermalink





Sec. 203. Fuel efficiency for heavy duty trucks.CommentsClose CommentsPermalink





Sec. 204. Lightweight materials research and development.CommentsClose CommentsPermalink





Sec. 205. Hybrid and advanced diesel vehicles.CommentsClose CommentsPermalink





Sec. 206. Advanced technology motor vehicles manufacturing credit.CommentsClose CommentsPermalink





Sec. 207. Consumer incentives to purchase advanced technology vehicles.CommentsClose CommentsPermalink





Sec. 208. Federal fleet requirements.CommentsClose CommentsPermalink





Sec. 209. Tax incentives for private fleets.CommentsClose CommentsPermalink





Sec. 210. Reducing incentives to guzzle gas.CommentsClose CommentsPermalink





Sec. 211. Fuel Choice for Transportation.CommentsClose CommentsPermalink





Sec. 212. Flexible fuel vehicle economy calculations.CommentsClose CommentsPermalink

TITLE III--FUEL CHOICES FOR THE 21ST CENTURY

Sec. 301. Fuel Choice action plan.CommentsClose CommentsPermalink





Sec. 302. Ethanol action plan.CommentsClose CommentsPermalink





Sec. 303. Fuel neutrality for alternative fuel vehicle refueling property credit.CommentsClose CommentsPermalink





Sec. 304. Alternative fuel vehicle refueling property.CommentsClose CommentsPermalink





Sec. 305. Use of CAFE penalties to build alternative fueling infrastructure.CommentsClose CommentsPermalink





Sec. 306. Cellulosic biomass fuel.CommentsClose CommentsPermalink





Sec. 307. Production incentives for cellulosic biofuels.CommentsClose CommentsPermalink





Sec. 308. Transit-Oriented Development Corridors.CommentsClose CommentsPermalink





Sec. 309. Saving oil by reducing miles-of-travel: Pilot projects.CommentsClose CommentsPermalink





Sec. 310. Saving oil by reducing vehicle-miles-of-travel: Research and development.CommentsClose CommentsPermalink





Sec. 311. Biofuels.CommentsClose CommentsPermalink

TITLE IV--ELECTRICITY FOR TRANSPORTATION

Sec. 401. Near-term vehicle technology program.CommentsClose CommentsPermalink





Sec. 402. Amendments to Alternative Motor Vehicle Credit.CommentsClose CommentsPermalink





Sec. 403. Idling Reduction Tax Credit.CommentsClose CommentsPermalink





Sec. 404. Plug-in Hybrid Electric Vehicle Prize.CommentsClose CommentsPermalink

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings- Congress finds that--CommentsClose CommentsPermalink





(1) the United States is dangerously dependent on oil;CommentsClose CommentsPermalink





(2) that dependence threatens the national security, weakens the economy, and harms the environment of the United States;CommentsClose CommentsPermalink





(3) the United States currently imports nearly 60 percent of oil needed in the United States, and that percentage is expected to grow to almost 70 percent by 2025 if no actions are taken;CommentsClose CommentsPermalink





(4) approximately 2,500,000 barrels of oil per day are imported from countries in the Persian Gulf region;CommentsClose CommentsPermalink





(5) that dependence on foreign oil undermines the war on terror by financing both sides of the war;CommentsClose CommentsPermalink





(6) in 2004 alone, the United States sent $103,000,000,000 to undemocratic countries, some of which use revenues to support terrorism and spread ideology hostile to the United States, as documented by the Council on Foreign Relations;CommentsClose CommentsPermalink





(7) terrorists have identified oil as a strategic vulnerability and have increased attacks against oil infrastructure worldwide;CommentsClose CommentsPermalink





(8) the International Energy Agency in its World Outlook 2006 report projected that `non-OPEC conventional crude oil output peaks by the middle of the next decade...trends would accentuate consuming countries' vulnerability to a severe supply disruption and resulting price shock' and recommended that `strong policy action is needed to move the world onto a more sustainable energy path';CommentsClose CommentsPermalink





(9) oil imports comprise nearly 30 percent of the dangerously high United States trade deficit;CommentsClose CommentsPermalink





(10) it is technically feasible to achieve oil savings of more than 2,500,000 barrels per day by 2015 and 5,000,000 barrels per day by 2025;CommentsClose CommentsPermalink





(11) those goals can be achieved by establishing a set of flexible policies, including--CommentsClose CommentsPermalink





(A) increasing the gasoline-efficiency of cars, trucks, tires, and oil;CommentsClose CommentsPermalink





(B) providing economic incentives for companies and consumers to produce and purchase 21st Century fuel efficient and flexible fuel vehicles;CommentsClose CommentsPermalink





(C) encouraging the use of transit and the reduction of truck and bus idling;CommentsClose CommentsPermalink





(D) increasing production and commercialization of alternative liquid fuels;CommentsClose CommentsPermalink





(E) increasing the efficiency of current oil based fuels with combustion enhancers and other advanced technology; andCommentsClose CommentsPermalink





(F) increasing the use of electricity as a transportation fuel;CommentsClose CommentsPermalink





(12) vehicle technology available as of the date of enactment of this Act (including popular hybrid-electric vehicle models, the sales of which in the United States increased 173 percent in the first 5 months of 2005 as compared with the same period in 2004) make an oil savings plan eminently achievable;CommentsClose CommentsPermalink





(13) alternative and renewable liquid transportation fuels are already available (including corn and sugar based ethanol, biodiesel, methanol, and diesel fuels derived from coal) to make such an oil savings and fuel choice plan eminently achievable;CommentsClose CommentsPermalink





(14) achieving those goals will benefit consumers and businesses through lower fuel bills and reduction in world oil prices;CommentsClose CommentsPermalink





(15) achieving those goals will help protect the economy of the United States from high and volatile oil prices and from the threats caused by global instability, terrorism, and natural disaster; andCommentsClose CommentsPermalink





(16) it is urgent, essential, and feasible to implement an action plan to achieve oil savings as soon as practicable because any delay in initiating action will--CommentsClose CommentsPermalink





(A) make achieving necessary oil savings more difficult and expensive;CommentsClose CommentsPermalink





(B) increase the risks to the national security, economy, and environment of the United States; andCommentsClose CommentsPermalink





(C) leave the American people and economy vulnerable to the threats posed by terrorism, natural disaster, political instability, and the shrinking ability of global oil supplies to meet rapidly expanding oil demands.CommentsClose CommentsPermalink





(b) Purposes- The purposes of this Act are--CommentsClose CommentsPermalink





(1) to accelerate market penetration of flexible fuel, electric drive, and alternative motor vehicles;CommentsClose CommentsPermalink





(2) to enable the accelerated market penetration of efficient technologies and alternative fuels without adverse impact on air quality while maintaining a policy of fuel neutrality, so as to allow market forces to elect the technologies and fuels that are consumer-friendly, safe, environmentally-sound, and economic;CommentsClose CommentsPermalink





(3) to provide time-limited financial incentives to encourage production and consumer purchase of oil saving technologies and fuels nationwide;CommentsClose CommentsPermalink





(4) to promote a nationwide diversity of motor vehicle fuels and advanced motor vehicle technology, including advanced lean burn technology, hybrid technology, flexible fuel motor vehicles, alternatively fueled motor vehicles, and other oil saving technologies; andCommentsClose CommentsPermalink





(5) to decrease American dependence on imported oil.CommentsClose CommentsPermalink

TITLE I--OIL SAVINGS ACTION PLAN AND REQUIREMENTS

SEC. 101. OIL SAVINGS TARGET AND ACTION PLAN.

Not later than 270 days after the date of enactment of this Act, the Director of the Office of Management and Budget (referred to in this title as the `Director') shall publish in the Federal Register an action plan consisting of--CommentsClose CommentsPermalink





(1) a list of requirements proposed or to be proposed pursuant to section 102 that are authorized to be issued under law in effect on the date of enactment of this Act, and this Act, that will be sufficient, when taken together, to save from the baseline determined under section 105--CommentsClose CommentsPermalink





(A) 2,500,000 barrels of oil per day on average during calendar year 2015; andCommentsClose CommentsPermalink





(B) 5,000,000 barrels of oil per day on average during calendar year 2025; andCommentsClose CommentsPermalink





(2) a Federal Government-wide analysis demonstrating--CommentsClose CommentsPermalink





(A) the expected oil savings from the baseline to be accomplished by each requirement; andCommentsClose CommentsPermalink





(B) that all such requirements, taken together, will achieve the oil savings specified in this section.CommentsClose CommentsPermalink

SEC. 102. STANDARDS AND REQUIREMENTS.

(a) In General- On or before the date by which publication of the action plan is required under section 101, the Secretary of Energy, the Secretary of Transportation, the Secretary of Defense, the Secretary of Agriculture, the Administrator of the Environmental Protection Agency, and the head of any other agency authorized to take an action listed in the action plan shall each propose, or issue a notice of intent to propose, regulations establishing each standard or other requirement listed in the action plan that is under the jurisdiction of the respective agency using authorities described in subsection (b). If a notice of intent to propose is issued, the head of the responsible agency shall propose such regulations not later than 330 days after the date of enactment of this Act.CommentsClose CommentsPermalink





(b) Authorities- The head of each agency described in subsection (a) shall use to carry out this section--CommentsClose CommentsPermalink





(1) any authority in existence on the date of enactment of this Act (including regulations); andCommentsClose CommentsPermalink





(2) any new authority provided under this Act (including an amendment made by this Act).CommentsClose CommentsPermalink





(c) Final Regulations- Not later than 18 months after the date of enactment of this Act, the head of each agency described in subsection (a) shall promulgate final versions of the regulations required under this section.CommentsClose CommentsPermalink





(d) Content of Regulations- Each proposed and final regulation promulgated under this section shall--CommentsClose CommentsPermalink





(1) be sufficient to achieve at least the oil savings resulting from the regulation under the action plan published under section 101; andCommentsClose CommentsPermalink





(2) be accompanied by an analysis by the applicable agency demonstrating that the regulation will achieve such oil savings, as measured from the baseline determined under section 105.CommentsClose CommentsPermalink

SEC. 103. EVALUATION.

(a) In General- Not later than 2 years after the date of enactment of this Act, and after an opportunity for public comment, the Director shall publish in the Federal Register a Federal Government-wide analysis of the oil savings achieved and the expected oil savings under the standards and requirements established under this Act and the amendments made by this Act from the baseline established under section 105, and a determination whether such oil savings will meet the targets established under section 101.CommentsClose CommentsPermalink





(b) Inadequate Oil Savings- If the oil savings are less than the targets established under section 101, simultaneously with the analysis required under subsection (a)--CommentsClose CommentsPermalink





(1) the Director shall publish a revised action plan that is sufficient to achieve the targets; andCommentsClose CommentsPermalink





(2) the head of each agency referred to in section 102(a) shall propose new or revised regulations sufficient to achieve such targets under section 102(a).CommentsClose CommentsPermalink





(c) Final Regulations- Not later than 180 days after the date on which regulations are proposed under subsection (b)(2), the head of each agency shall promulgate final versions of those regulations that comply with section 102(d).CommentsClose CommentsPermalink

SEC. 104. REVIEW AND UPDATE OF ACTION PLAN.

(a) Review- Not later than January 1, 2011, and every 3 years thereafter, the Director shall publish a report that--CommentsClose CommentsPermalink





(1) evaluates the progress achieved in implementing the oil savings targets established under section 101;CommentsClose CommentsPermalink





(2) analyzes the expected oil savings under the standards and requirements established under this Act and the amendments made by this Act; andCommentsClose CommentsPermalink





(3)(A) analyzes the potential to achieve oil savings that are in addition to the savings required by section 101; andCommentsClose CommentsPermalink





(B) if the President determines that it is in the national interest, establishes a higher oil savings target for calendar year 2017 or any subsequent calendar year.CommentsClose CommentsPermalink





(b) Inadequate Oil Savings- If the oil savings are less than the targets established under section 101, simultaneously with the report required under subsection (a)--CommentsClose CommentsPermalink





(1) the Director shall publish a revised action plan that is sufficient to achieve the targets; andCommentsClose CommentsPermalink





(2) the head of each agency referred to in section 102(a) shall propose new or revised regulations sufficient to achieve such targets under section 102(a).CommentsClose CommentsPermalink





(c) Final Regulations- Not later than 180 days after the date on which regulations are proposed under subsection (b)(2), the head of each agency referred to in section 102(a) shall promulgate final versions of those regulations that comply with section 102(d).CommentsClose CommentsPermalink

SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS.

In performing the analyses and promulgating proposed or final regulations to establish standards and other requirements necessary to achieve the oil savings required by this title, the Director, the Secretary of Energy, the Secretary of Transportation, the Secretary of Defense, the Secretary of Agriculture, the Administrator of the Environmental Protection Agency, and the head of any other agency authorized to take an action listed in the action plan shall--CommentsClose CommentsPermalink





(1) determine oil savings as the projected reduction in oil consumption from the baseline established by the reference case contained in the report of the Energy Information Administration entitled `Annual Energy Outlook 2006';CommentsClose CommentsPermalink





(2) determine the oil savings projections required on an annual basis for each of calendar years 2009 through 2026; andCommentsClose CommentsPermalink





(3) account for any overlap among the standards and other requirements to ensure that the projected oil savings from all the promulgated standards and requirements, taken together, are as accurate as practicable.CommentsClose CommentsPermalink

SEC. 106. REVIEW AND SCORING OF FEDERAL ACTIONS RELATED TO OIL SAVINGS ACTION PLAN.

(a) Office of Management and Budget-CommentsClose CommentsPermalink





(1) REQUIREMENT- The Director shall--CommentsClose CommentsPermalink





(A) establish procedures to evaluate all proposals for Federal legislative or executive actions which could be reasonably considered to impact the supply or demand of oil in the United States; andCommentsClose CommentsPermalink





(B) report to the Congress on the net impact the reviewed proposal would have on reaching the goals of the action plan required under section 101, including a score in terms of projected decreases or increases to oil usage.CommentsClose CommentsPermalink





(2) CONCLUSIONS- The conclusions of the Director under paragraph (1) shall also be published in the public record and considered as part of any rulemaking procedure or impact statement.CommentsClose CommentsPermalink





(b) Comptroller General-CommentsClose CommentsPermalink





(1) REQUIREMENT- The Comptroller General shall--CommentsClose CommentsPermalink





(A) establish procedures to evaluate all proposals for Federal legislative or executive actions which could be reasonably considered to impact the supply or demand of oil in the United States; andCommentsClose CommentsPermalink





(B) report to the Congress on the net impact the reviewed proposal would have on reaching the goals of the action plan required under section 101, including a score in terms of projected decreases or increases to oil usage.CommentsClose CommentsPermalink





(2) CONCLUSIONS- The conclusions of the Comptroller General under paragraph (1) shall also be published in the public record and considered as part of any rulemaking procedure or impact statement.CommentsClose CommentsPermalink

SEC. 107. FEDERAL GOVERNMENT OIL USAGE AUDIT.

Not later than 2 years after the date of enactment of this Act, each Federal agency shall complete an audit of oil-derived fuel usage in the agency. The head of the agency shall establish an oil usage baseline and develop a plan to reduce oil consumption by 10 percent over 5 years and 20 percent in 10 years. The Secretary of Energy shall compile an annual report containing all agency reports and recommendations under this section and deliver it to the Congress not later than January 31 of each year.CommentsClose CommentsPermalink

SEC. 108. NATIONWIDE MEDIA CAMPAIGN TO DECREASE OIL CONSUMPTION.

(a) In General- The Secretary of Energy, acting through the Assistant Secretary for Energy Efficiency and Renewable Energy (referred to in this section as the `Secretary'), shall develop and conduct a national media campaign for the purpose of decreasing oil consumption in the United States over the next decade.CommentsClose CommentsPermalink





(b) Contract With Entity- The Secretary shall carry out subsection (a) directly or through--CommentsClose CommentsPermalink





(1) competitively bid contracts with 1 or more nationally recognized media firms for the development and distribution of monthly television, radio, and newspaper public service announcements; orCommentsClose CommentsPermalink





(2) collective agreements with 1 or more nationally recognized institutes, businesses, or nonprofit organizations for the funding, development, and distribution of monthly television, radio, and newspaper public service announcements.CommentsClose CommentsPermalink





(c) Use of Funds-CommentsClose CommentsPermalink





(1) IN GENERAL- Amounts made available to carry out this section shall be used for the following:CommentsClose CommentsPermalink





(A) ADVERTISING COSTS-CommentsClose CommentsPermalink





(i) The purchase of media time and space.CommentsClose CommentsPermalink





(ii) Creative and talent costs.CommentsClose CommentsPermalink





(iii) Testing and evaluation of advertising.CommentsClose CommentsPermalink





(iv) Evaluation of the effectiveness of the media campaign.CommentsClose CommentsPermalink





(v) The negotiated fees for the winning bidder on requests from proposals issued either by the Secretary for purposes otherwise authorized in this section.CommentsClose CommentsPermalink





(vi) Entertainment industry outreach, interactive outreach, media projects and activities, public information, news media outreach, and corporate sponsorship and participation.CommentsClose CommentsPermalink





(B) ADMINISTRATIVE COSTS- Operational and management expenses.CommentsClose CommentsPermalink





(2) LIMITATIONS- In carrying out this section, the Secretary shall allocate not less than 85 percent of funds made available under subsection (e) for each fiscal year for the advertising functions specified under paragraph (1)(A).CommentsClose CommentsPermalink





(d) Reports- The Secretary shall annually submit to Congress a report that describes--CommentsClose CommentsPermalink





(1) the strategy of the national media campaign and whether specific objectives of the campaign were accomplished, including--CommentsClose CommentsPermalink





(A) determinations concerning the rate of change of oil consumption, in both absolute and per capita terms; andCommentsClose CommentsPermalink





(B) an evaluation that enables consideration whether the media campaign contributed to reduction of oil consumption;CommentsClose CommentsPermalink





(2) steps taken to ensure that the national media campaign operates in an effective and efficient manner consistent with the overall strategy and focus of the campaign;CommentsClose CommentsPermalink





(3) plans to purchase advertising time and space;CommentsClose CommentsPermalink





(4) policies and practices implemented to ensure that Federal funds are used responsibly to purchase advertising time and space and eliminate the potential for waste, fraud, and abuse; andCommentsClose CommentsPermalink





(5) all contracts or cooperative agreements entered into with a corporation, partnership, or individual working on behalf of the national media campaign.CommentsClose CommentsPermalink





(e) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2008 through 2012.CommentsClose CommentsPermalink

TITLE II--FUEL EFFICIENT VEHICLES FOR THE 21ST CENTURY

SEC. 201. TIRE EFFICIENCY PROGRAM.

(a) Standards for Tires Manufactured for Interstate Commerce- Section 30123 of title 49, United States Code, is amended--CommentsClose CommentsPermalink





(1) in subsection (b)--CommentsClose CommentsPermalink





(A) in the first sentence, by striking `The Secretary' and inserting the following:CommentsClose CommentsPermalink





`(1) UNIFORM QUALITY GRADING SYSTEM-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Secretary';CommentsClose CommentsPermalink





(B) in the second sentence, by striking `The Secretary' and inserting the following:CommentsClose CommentsPermalink





`(2) NOMENCLATURE AND MARKETING PRACTICES- The Secretary';CommentsClose CommentsPermalink





(C) in the third sentence, by striking `A tire standard' and inserting the following:CommentsClose CommentsPermalink





`(3) EFFECT OF STANDARDS AND REGULATIONS- A tire standard'; andCommentsClose CommentsPermalink





(D) in paragraph (1), as designated by subparagraph (A), by adding at the end the following:CommentsClose CommentsPermalink





`(B) INCLUSION- The grading system established pursuant to subparagraph (A) shall include standards for rating the fuel efficiency of tires designed for use on passenger cars and light trucks.'; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





`(d) National Tire Efficiency Program-CommentsClose CommentsPermalink





`(1) DEFINITION- In this subsection, the term `fuel economy', with respect to a tire, means the extent to which the tire contributes to the fuel economy of the motor vehicle on which the tire is mounted.CommentsClose CommentsPermalink





`(2) PROGRAM- The Secretary shall develop and carry out a national tire fuel efficiency program for tires designed for use on passenger cars and light trucks.CommentsClose CommentsPermalink





`(3) REQUIREMENTS- Not later than March 31, 2008, the Secretary shall issue regulations, which establish--CommentsClose CommentsPermalink





`(A) policies and procedures for testing and labeling tires for fuel economy to enable tire buyers to make informed purchasing decisions about the fuel economy of tires;CommentsClose CommentsPermalink





`(B) policies and procedures to promote the purchase of energy efficient replacement tires, including purchase incentives, website listings on the Internet, printed fuel economy guide booklets, and mandatory requirements for tire retailers to provide tire buyers with fuel efficiency information on tires; andCommentsClose CommentsPermalink





`(C) minimum fuel economy standards for tires.CommentsClose CommentsPermalink





`(4) MINIMUM FUEL ECONOMY STANDARDS- In promulgating minimum fuel economy standards for tires, the Secretary shall design standards that--CommentsClose CommentsPermalink





`(A) ensure, in conjunction with the requirements under paragraph (3)(B), that the average fuel economy of replacement tires is not less than the average fuel economy of tires sold as original equipment;CommentsClose CommentsPermalink





`(B) secure the maximum technically feasible and cost-effective fuel savings;CommentsClose CommentsPermalink





`(C) do not adversely affect tire safety;CommentsClose CommentsPermalink





`(D) incorporate the results from--CommentsClose CommentsPermalink





`(i) laboratory testing; andCommentsClose CommentsPermalink





`(ii) to the extent appropriate and available, on-road fleet testing programs conducted by manufacturers; andCommentsClose CommentsPermalink





`(E) do not adversely affect efforts to manage scrap tires.CommentsClose CommentsPermalink





`(5) APPLICABILITY- The policies, procedures, and standards developed under paragraph (3) shall apply to all tire types and models regulated under the uniform tire quality grading standards in section 575.104 of title 49, Code of Federal Regulations (or a successor regulation).CommentsClose CommentsPermalink





`(6) REVIEW-CommentsClose CommentsPermalink





`(A) IN GENERAL- Not less than once every 3 years, the Secretary shall--CommentsClose CommentsPermalink





`(i) review the minimum fuel economy standards in effect for tires under this subsection; andCommentsClose CommentsPermalink





`(ii) subject to subparagraph (B), revise the standards as necessary to ensure compliance with standards described in paragraph (4).CommentsClose CommentsPermalink





`(B) LIMITATION- The Secretary may not reduce the average fuel economy standards applicable to replacement tires.CommentsClose CommentsPermalink





`(7) NO PREEMPTION OF STATE LAW- Nothing in this section shall be construed to preempt any provision of State law relating to higher fuel economy standards applicable to replacement tires designed for use on passenger cars and light trucks.CommentsClose CommentsPermalink





`(8) EXCEPTIONS- Nothing in this section shall apply to--CommentsClose CommentsPermalink





`(A) a tire or group of tires with the same stock keeping unit, plant, and year, for which the volume of tires produced or imported is less than 15,000 annually;CommentsClose CommentsPermalink





`(B) a deep tread, winter-type snow tire, space-saver tire, or temporary use spare tire;CommentsClose CommentsPermalink





`(C) a tire with a normal rim diameter of 12 inches or less;CommentsClose CommentsPermalink





`(D) a motorcycle tire; orCommentsClose CommentsPermalink





`(E) a tire manufactured specifically for use in an off-road motorized recreational vehicle.'.CommentsClose CommentsPermalink





(b) Conforming Amendment- Section 30103(b)(1) of title 49, United States Code, is amended by striking `When' and inserting `Except as provided in section 30123(d), if'.CommentsClose CommentsPermalink





(c) Time for Implementation- Beginning not later than March 31, 2008, the Secretary of Transportation shall administer the national tire fuel efficiency program established under section 30123(d) of title 49, United States Code, in accordance with the policies, procedures, and standards developed under section 30123(d)(3) of such title.CommentsClose CommentsPermalink





(d) Authorization of Appropriations- There are authorized to be appropriated, for each of fiscal years 2008 through 2012, such sums as may be necessary to carry out section 30123(d) of title 49, United States Code, as added by subsection (a).CommentsClose CommentsPermalink

SEC. 202. REDUCTION OF SCHOOL BUS IDLING.

(a) Statement of Policy- Congress encourages each local educational agency (as defined in section 9101(26) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801(26))) that receives Federal funds under the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) to develop a policy to reduce the incidence of school bus idling at schools while picking up and unloading students.CommentsClose CommentsPermalink





(b) Authorization of Appropriations- There are authorized to be appropriated to the Administrator of the Environmental Protection Agency, working in coordination with the Secretary of Education, $5,000,000 for each of fiscal years 2008 through 2012 for use in educating States and local education agencies about--CommentsClose CommentsPermalink





(1) benefits of reducing school bus idling; andCommentsClose CommentsPermalink





(2) ways in which school bus idling may be reduced.CommentsClose CommentsPermalink

SEC. 203. FUEL EFFICIENCY FOR HEAVY DUTY TRUCKS.

Part C of subtitle VI of title 49, United States Code, is amended by inserting after chapter 329 the following:CommentsClose CommentsPermalink

`CHAPTER 330--HEAVY DUTY VEHICLE FUEL ECONOMY STANDARDS

`Sec.CommentsClose CommentsPermalink





`33001. Purpose and policy.CommentsClose CommentsPermalink





`33002. Definition.CommentsClose CommentsPermalink





`33003. Testing and assessment.CommentsClose CommentsPermalink





`33004. Standards.CommentsClose CommentsPermalink





`33005. Authorization of appropriations.CommentsClose CommentsPermalink

`Sec. 33001. Purpose and policy

`The purpose of this chapter is to reduce petroleum consumption by heavy duty motor vehicles.CommentsClose CommentsPermalink

`Sec. 33002. Definition

`In this chapter, the term `heavy duty motor vehicle'--CommentsClose CommentsPermalink





`(1) means a vehicle having a gross vehicle weight rating of at least 10,000 pounds that is driven or drawn by mechanical power and manufactured primarily for use on public streets, roads, and highways; andCommentsClose CommentsPermalink





`(2) does not include a vehicle operated only on a rail line.CommentsClose CommentsPermalink

`Sec. 33003. Testing and assessment

`(a) General Requirements- The Administrator of the Environmental Protection Agency (referred to in this section as the `Administrator') shall develop and coordinate a national testing and assessment program to--CommentsClose CommentsPermalink





`(1) determine the fuel economy of heavy duty vehicles; andCommentsClose CommentsPermalink





`(2) assess the fuel efficiency attainable through available technology.CommentsClose CommentsPermalink





`(b) Testing- The Administrator shall--CommentsClose CommentsPermalink





`(1) design a National testing program to assess the fuel economy of heavy duty vehicles (based on the program for light duty vehicles); andCommentsClose CommentsPermalink





`(2) implement the program described in paragraph (1) not later than 18 months after the date of enactment of this chapter.CommentsClose CommentsPermalink





`(c) Assessment- The Administrator shall consult with the Secretary of Transportation on the assessment of available technologies to enhance the fuel efficiency of heavy duty vehicles to ensure that vehicle use and needs are considered appropriately in the assessment.CommentsClose CommentsPermalink





`(d) Reporting- The Administrator shall--CommentsClose CommentsPermalink





`(1) not later than 2 years after the date of enactment of this chapter, submit a report to Congress regarding the results of the assessment of available technologies to improve the fuel efficiency of heavy duty vehicles.CommentsClose CommentsPermalink





`(2) submit a report to Congress, at least biannually, that addresses the fuel economy of heavy duty vehicles; andCommentsClose CommentsPermalink

`Sec. 33004. Standards

`(a) General Requirements- Not later than 18 months after completing the testing and assessments under section 33003, the Secretary of Transportation shall prescribe average heavy duty vehicle fuel economy standards. Each standard shall be the maximum feasible average fuel economy level that the Secretary decides that manufacturers can achieve in that model year. The Secretary may prescribe separate standards for different classes of heavy duty motor vehicles. The standards for each model year shall be completed not later than 18 months before the beginning of each model year.CommentsClose CommentsPermalink





`(b) Considerations and Consultation- In determining maximum feasible average fuel economy, the Secretary shall consider--CommentsClose CommentsPermalink





`(1) relevant available heavy duty motor vehicle fuel consumption information;CommentsClose CommentsPermalink





`(2) technological feasibility;CommentsClose CommentsPermalink





`(3) economic practicability;CommentsClose CommentsPermalink





`(4) the desirability of reducing United States dependence on oil;CommentsClose CommentsPermalink





`(5) the effects of average fuel economy standards on vehicle safety;CommentsClose CommentsPermalink





`(6) the effects of average fuel economy standards on levels of employment and competitiveness of manufacturers; andCommentsClose CommentsPermalink





`(7) the extent to which the standard will carry out the purpose described in section 33001.CommentsClose CommentsPermalink





`(c) Cooperation- The Secretary may advise, assist, and cooperate with departments, agencies, and instrumentalities of the United States Government, States, and other public and private agencies in developing fuel economy standards for heavy duty motor vehicles.CommentsClose CommentsPermalink





`(d) Effective Dates of Standards- The Secretary shall specify the effective date and model years of each heavy duty motor vehicle fuel economy standard prescribed under this chapter.CommentsClose CommentsPermalink





`(e) 5-Year Plan for Testing Standards- The Secretary shall establish, periodically review, and continually update a 5-year plan for testing heavy duty motor vehicle fuel economy standards prescribed under this chapter. In developing and establishing testing priorities, the Secretary shall consider factors the Secretary considers appropriate, consistent with the purpose described in section 33001 and the Secretary's other duties and powers under this chapter.CommentsClose CommentsPermalink

`Sec. 33005. Authorization of appropriations

`There are authorized to be appropriated, for each of fiscal years 2008 through 2012, such sums as may be necessary to carry out this chapter.'.CommentsClose CommentsPermalink

SEC. 204. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

(a) In General- As soon as practicable after the date of enactment of this Act, the Secretary of Energy shall establish a research and development program to determine ways in which--CommentsClose CommentsPermalink





(1) the weight of vehicles may be reduced to improve fuel efficiency without compromising passenger safety; andCommentsClose CommentsPermalink





(2) the cost of lightweight materials (such as steel alloys and carbon fibers) required for the construction of lighter-weight vehicles may be reduced.CommentsClose CommentsPermalink





(b) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2008 through 2012.CommentsClose CommentsPermalink

SEC. 205. HYBRID AND ADVANCED DIESEL VEHICLES.

(a) Hybrid Vehicles- The Energy Policy Act of 2005 is amended by striking section 711 (42 U.S.C. 16061) and inserting the following:CommentsClose CommentsPermalink

`SEC. 711. HYBRID VEHICLES.

`(a) Definitions- In this section:CommentsClose CommentsPermalink





`(1) COST- The term `cost' has the meaning given the term `cost of a loan guarantee' within the meaning of section 502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(C)).CommentsClose CommentsPermalink





`(2) ELIGIBLE PROJECT- The term `eligible project' means a project to--CommentsClose CommentsPermalink





`(A) improve hybrid technologies under subsection (b); orCommentsClose CommentsPermalink





`(B) encourage domestic production of efficient hybrid and advanced diesel vehicles under section 712(a).CommentsClose CommentsPermalink





`(3) GUARANTEE-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `guarantee' has the meaning given the term `loan guarantee' in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).CommentsClose CommentsPermalink





`(B) INCLUSION- The term `guarantee' includes a loan guarantee commitment (as defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).CommentsClose CommentsPermalink





`(4) HYBRID TECHNOLOGY- The term `hybrid technology' means a battery or other rechargeable energy storage system, power electronic, hybrid systems integration, and any other technology for use in hybrid vehicles, including plug-in hybrid vehicles and their components.CommentsClose CommentsPermalink





`(5) OBLIGATION- The term `obligation' means the loan or other debt obligation that is guaranteed under this section.CommentsClose CommentsPermalink





`(b) Authorization- The Secretary shall accelerate efforts directed toward the improvement of hybrid technologies, including through the provision of loan guarantees under subsection (c).CommentsClose CommentsPermalink





`(c) Loan Guarantees-CommentsClose CommentsPermalink





`(1) IN GENERAL- The Secretary shall make guarantees under this section for eligible projects on such terms and conditions as the Secretary, in consultation with the Secretary of the Treasury, determines to be appropriate.CommentsClose CommentsPermalink





`(2) SPECIFIC APPROPRIATION OR CONTRIBUTION- No guarantee shall be made unless--CommentsClose CommentsPermalink





`(A) an appropriation for the cost has been made; orCommentsClose CommentsPermalink





`(B) the Secretary has received from the borrower a payment in full for the cost of the obligation and deposited the payment into the Treasury.CommentsClose CommentsPermalink





`(3) AMOUNT- Unless otherwise provided by law, a guarantee by the Secretary shall not exceed an amount equal to 80 percent of the project cost of the hybrid technology that is the subject of the guarantee, as estimated at the time at which the guarantee is issued.CommentsClose CommentsPermalink





`(4) REPAYMENT-CommentsClose CommentsPermalink





`(A) IN GENERAL- No guarantee shall be made unless the Secretary determines that there is a reasonable prospect of repayment of the principal and interest on the obligation by the borrower.CommentsClose CommentsPermalink





`(B) AMOUNT- No guarantee shall be made unless the Secretary determines that the amount of the obligation (when combined with amounts available to the borrower from other sources) will be sufficient to carry out the project.CommentsClose CommentsPermalink





`(C) SUBORDINATION- The obligation shall be subject to the condition that the obligation is not subordinate to other financing.CommentsClose CommentsPermalink





`(5) INTEREST RATE- An obligation shall bear interest at a rate that does not exceed a level that the Secretary determines appropriate, taking into account the prevailing rate of interest in the private sector for similar loans and risks.CommentsClose CommentsPermalink





`(6) TERM- The term of an obligation shall require full repayment over a period not to exceed the lesser of--CommentsClose CommentsPermalink





`(A) 30 years; orCommentsClose CommentsPermalink





`(B) 90 percent of the projected useful life of the physical asset to be financed by the obligation (as determined by the Secretary).CommentsClose CommentsPermalink





`(7) DEFAULTS-CommentsClose CommentsPermalink





`(A) PAYMENT BY SECRETARY-CommentsClose CommentsPermalink





`(i) IN GENERAL- If a borrower defaults on the obligation (as defined in regulations promulgated by the Secretary and specified in the guarantee contract), the holder of the guarantee shall have the right to demand payment of the unpaid amount from the Secretary.CommentsClose CommentsPermalink





`(ii) PAYMENT REQUIRED- Within such period as may be specified in the guarantee or related agreements, the Secretary shall pay to the holder of the guarantee the unpaid interest on, and unpaid principal of the obligation as to which the borrower has defaulted, unless the Secretary finds that--CommentsClose CommentsPermalink





`(I) there was no default by the borrower in the payment of interest or principal; orCommentsClose CommentsPermalink





`(II) the default has been remedied.CommentsClose CommentsPermalink





`(iii) FORBEARANCE- Nothing in this subsection precludes any forbearance by the holder of the obligation for the benefit of the borrower that may be agreed upon by the parties to the obligation and approved by the Secretary.CommentsClose CommentsPermalink





`(B) SUBROGATION-CommentsClose CommentsPermalink





`(i) IN GENERAL- If the Secretary makes a payment under subparagraph (A), the Secretary shall be subrogated to the rights of the recipient of the payment as specified in the guarantee or related agreements including, where appropriate, the authority (notwithstanding any other provision of law) to--CommentsClose CommentsPermalink





`(I) complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to the guarantee or related agreements; orCommentsClose CommentsPermalink





`(II) permit the borrower, pursuant to an agreement with the Secretary, to continue to pursue the purposes of the eligible project, as the Secretary determines to be in the public interest.CommentsClose CommentsPermalink





`(ii) SUPERIORITY OF RIGHTS- The rights of the Secretary, with respect to any property acquired pursuant to a guarantee or related agreement, shall be superior to the rights of any other person with respect to the property.CommentsClose CommentsPermalink





`(iii) TERMS AND CONDITIONS- A guarantee agreement shall include such detailed terms and conditions as the Secretary determines appropriate to--CommentsClose CommentsPermalink





`(I) protect the interests of the United States in the case of default; andCommentsClose CommentsPermalink





`(II) have available all the patents and technology necessary for any person selected, including the Secretary, to complete and operate the eligible project.CommentsClose CommentsPermalink





`(C) PAYMENT OF PRINCIPAL AND INTEREST BY SECRETARY- With respect to any obligation guaranteed under this section, the Secretary may enter into a contract to pay, and pay, holders of the obligation, for and on behalf of the borrower, from funds appropriated for that purpose, the principal and interest payments that become due and payable on the unpaid balance of the obligation if the Secretary finds that--CommentsClose CommentsPermalink





`(i)(I) the borrower is unable to meet the payments and is not in default;CommentsClose CommentsPermalink





`(II) it is in the public interest to permit the borrower to continue to pursue the purposes of the eligible project; andCommentsClose CommentsPermalink





`(III) the probable net benefit to the Federal Government in paying the principal and interest will be greater than the benefit that would result in the event of a default;CommentsClose CommentsPermalink





`(ii) the amount of the payment that the Secretary is authorized to pay will be no greater than the amount of principal and interest that the borrower is obligated to pay under the agreement being guaranteed; andCommentsClose CommentsPermalink





`(iii) the borrower agrees to reimburse the Secretary for the payment (including interest) on terms and conditions that are satisfactory to the Secretary.CommentsClose CommentsPermalink





`(D) ACTION BY ATTORNEY GENERAL-CommentsClose CommentsPermalink





`(i) NOTIFICATION- If the borrower defaults on an obligation, the Secretary shall notify the Attorney General of the default.CommentsClose CommentsPermalink





`(ii) RECOVERY- On receipt of notification, the Attorney General shall take such action as the Attorney General determines to be appropriate to recover the unpaid principal and interest due from--CommentsClose CommentsPermalink





`(I) such assets of the defaulting borrower as are associated with the obligation; orCommentsClose CommentsPermalink





`(II) any other security pledged to secure the obligation.CommentsClose CommentsPermalink





`(8) FEES-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Secretary shall charge and collect fees for guarantees in amounts the Secretary determines are sufficient to cover applicable administrative expenses.CommentsClose CommentsPermalink





`(B) AVAILABILITY- Fees collected under this paragraph shall--CommentsClose CommentsPermalink





`(i) be deposited by the Secretary into the Treasury; andCommentsClose CommentsPermalink





`(ii) remain available until expended, subject to such other conditions as are contained in annual appropriations Acts.CommentsClose CommentsPermalink





`(9) RECORDS; AUDITS-CommentsClose CommentsPermalink





`(A) IN GENERAL- A recipient of a guarantee shall keep such records and other pertinent documents as the Secretary shall prescribe by regulation, including such records as the Secretary may require to facilitate an effective audit.CommentsClose CommentsPermalink





`(B) ACCESS- The Secretary and the Comptroller General of the United States, or their duly authorized representatives, shall have access, for the purpose of audit, to the records and other pertinent documents.CommentsClose CommentsPermalink





`(10) FULL FAITH AND CREDIT- The full faith and credit of the United States is pledged to the payment of all guarantees issued under this section with respect to principal and interest.CommentsClose CommentsPermalink





`(d) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to provide the cost of guarantees under this section.'.CommentsClose CommentsPermalink





(b) Efficient Hybrid and Advanced Diesel Vehicles- Section 712(a) of the Energy Policy Act of 2005 (42 U.S.C. 16062(a)) is amended in the second sentence by striking `grants to automobile manufacturers' and inserting `grants and the provision of loan guarantees under section 711(c) to automobile manufacturers and suppliers'.CommentsClose CommentsPermalink

SEC. 206. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

(a) In General- Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to foreign tax credit, etc.) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

`(a) Credit Allowed- There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of--CommentsClose CommentsPermalink





`(1) in the case of a qualified investment of an eligible taxpayer for such taxable year relating to plug-in hybrid electric vehicles or pure electric vehicles, 50 percent of so much of such qualified investment as does not exceed $150,000,000, andCommentsClose CommentsPermalink





`(2) in the case of any other qualified investment of an eligible taxpayer for such taxable year, 35 percent of so much of such qualified investment as does not exceed $50,000,000.CommentsClose CommentsPermalink





`(b) Qualified Investment- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- The qualified investment for any taxable year is equal to the incremental costs incurred during such taxable year--CommentsClose CommentsPermalink





`(A) to re-equip, expand, or establish any manufacturing facility of the eligible taxpayer to produce advanced technology motor vehicles or to produce eligible components,CommentsClose CommentsPermalink





`(B) for engineering integration of such vehicles and components as described in subsection (d), andCommentsClose CommentsPermalink





`(C) for research and development related to advanced technology motor vehicles and eligible components.CommentsClose CommentsPermalink





`(2) ATTRIBUTION RULES- In the event a facility of the eligible taxpayer produces both advanced technology motor vehicles and conventional motor vehicles, or eligible and non-eligible components, only the qualified investment attributable to production of advanced technology motor vehicles and eligible components shall be taken into account.CommentsClose CommentsPermalink





`(c) Advanced Technology Motor Vehicles and Eligible Components- For purposes of this section--CommentsClose CommentsPermalink





`(1) ADVANCED TECHNOLOGY MOTOR VEHICLE- The term `advanced technology motor vehicle' means--CommentsClose CommentsPermalink





`(A) any new advanced lean burn technology motor vehicle (as defined in section 30B(c)(3)),CommentsClose CommentsPermalink





`(B) any new qualified hybrid motor vehicle (as defined in section 30B(d)(3)(A) and determined without regard to any gross vehicle weight rating), orCommentsClose CommentsPermalink





`(C) any new plug-in hybrid electric vehicle.CommentsClose CommentsPermalink





`(2) PLUG-IN HYBRID ELECTRIC VEHICLE- For purposes of this section, the term `plug-in hybrid electric vehicle' means a light-duty, medium-duty, or heavy-duty on-road or nonroad vehicle that is propelled by an internal combustion engine or heat engine and/or an electric motor and energy storage system using (or capable of using)--CommentsClose CommentsPermalink





`(A) any combustible fuel,CommentsClose CommentsPermalink





`(B) an on-board, rechargeable storage device, andCommentsClose CommentsPermalink





`(C) a means of using an off-board source of electricity to operate the vehicle in intermittent or continuous all-electric mode.CommentsClose CommentsPermalink





`(3) ELIGIBLE COMPONENTS- The term `eligible component' means any component inherent to any advanced technology motor vehicle, including--CommentsClose CommentsPermalink





`(A) with respect to any gasoline or diesel-electric new qualified hybrid motor vehicle--CommentsClose CommentsPermalink





`(i) electric motor or generator,CommentsClose CommentsPermalink





`(ii) power split device,CommentsClose CommentsPermalink





`(iii) power control unit,CommentsClose CommentsPermalink





`(iv) power controls,CommentsClose CommentsPermalink





`(v) integrated starter generator, orCommentsClose CommentsPermalink





`(vi) battery,CommentsClose CommentsPermalink





`(B) with respect to any hydraulic new qualified hybrid motor vehicle--CommentsClose CommentsPermalink





`(i) hydraulic accumulator vessel,CommentsClose CommentsPermalink





`(ii) hydraulic pump, orCommentsClose CommentsPermalink





`(iii) hydraulic pump-motor assembly,CommentsClose CommentsPermalink





`(C) with respect to any new advanced lean burn technology motor vehicle--CommentsClose CommentsPermalink





`(i) diesel engine,CommentsClose CommentsPermalink





`(ii) turbocharger,CommentsClose CommentsPermalink





`(iii) fuel injection system, orCommentsClose CommentsPermalink





`(iv) after-treatment system, such as a particle filter or NOx absorber, andCommentsClose CommentsPermalink





`(D) with respect to any advanced technology motor vehicle, any other component submitted for approval by the Secretary.CommentsClose CommentsPermalink





`(d) Engineering Integration Costs- For purposes of subsection (b)(1)(B), costs for engineering integration are costs incurred prior to the market introduction of advanced technology vehicles for engineering tasks related to--CommentsClose CommentsPermalink





`(1) establishing functional, structural, and performance requirements for component and subsystems to meet overall vehicle objectives for a specific application,CommentsClose CommentsPermalink





`(2) designing interfaces for components and subsystems with mating systems within a specific vehicle application,CommentsClose CommentsPermalink





`(3) designing cost effective, efficient, and reliable manufacturing processes to produce components and subsystems for a specific vehicle application, andCommentsClose CommentsPermalink





`(4) validating functionality and performance of components and subsystems for a specific vehicle application.CommentsClose CommentsPermalink





`(e) Eligible Taxpayer- For purposes of this section, the term `eligible taxpayer' means any taxpayer if more than 50 percent of its gross receipts for the taxable year is derived from the manufacture of motor vehicles or any component parts of such vehicles.CommentsClose CommentsPermalink





`(f) Limitation Based on Amount of Tax- The credit allowed under subsection (a) for the taxable year shall not exceed the excess of--CommentsClose CommentsPermalink





`(1) the sum of--CommentsClose CommentsPermalink





`(A) the regular tax liability (as defined in section 26(b)) for such taxable year, plusCommentsClose CommentsPermalink





`(B) the tax imposed by section 55 for such taxable year and any prior taxable year beginning after 1986 and not taken into account under section 53 for any prior taxable year, overCommentsClose CommentsPermalink





`(2) the sum of the credits allowable under subpart A and sections 27, 30, and 30B for the taxable year.CommentsClose CommentsPermalink





`(g) Reduction in Basis- For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this paragraph) result from such expenditure shall be reduced by the amount of the credit so allowed.CommentsClose CommentsPermalink





`(h) No Double Benefit-CommentsClose CommentsPermalink





`(1) COORDINATION WITH OTHER DEDUCTIONS AND CREDITS- Except as provided in paragraph (2), the amount of any deduction or other credit allowable under this chapter for any cost taken into account in determining the amount of the credit under subsection (a) shall be reduced by the amount of such credit attributable to such cost.CommentsClose CommentsPermalink





`(2) RESEARCH AND DEVELOPMENT COSTS-CommentsClose CommentsPermalink





`(A) IN GENERAL- Except as provided in subparagraph (B), any amount described in subsection (b)(1)(C) taken into account in determining the amount of the credit under subsection (a) for any taxable year shall not be taken into account for purposes of determining the credit under section 41 for such taxable year.CommentsClose CommentsPermalink





`(B) COSTS TAKEN INTO ACCOUNT IN DETERMINING BASE PERIOD RESEARCH EXPENSES- Any amounts described in subsection (b)(1)(C) taken into account in determining the amount of the credit under subsection (a) for any taxable year which are qualified research expenses (within the meaning of section 41(b)) shall be taken into account in determining base period research expenses for purposes of applying section 41 to subsequent taxable years.CommentsClose CommentsPermalink





`(i) Business Carryovers Allowed- If the credit allowable under subsection (a) for a taxable year exceeds the limitation under subsection (f) for such taxable year, such excess (to the extent of the credit allowable with respect to property subject to the allowance for depreciation) shall be allowed as a credit carryback and carryforward under rules similar to the rules of section 39.CommentsClose CommentsPermalink





`(j) Special Rules- For purposes of this section, rules similar to the rules of paragraphs (4) and (5) of section 179A(e) and paragraphs (1) and (2) of section 41(f) shall applyCommentsClose CommentsPermalink





`(k) Election Not to Take Credit- No credit shall be allowed under subsection (a) for any property if the taxpayer elects not to have this section apply to such property.CommentsClose CommentsPermalink





`(l) Regulations- The Secretary shall prescribe such regulations as necessary to carry out the provisions of this section.CommentsClose CommentsPermalink





`(m) Termination- This section shall not apply to any qualified investment after December 31, 2015.'.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 1016(a) of the Internal Revenue Code of 1986 is amended by striking `and' at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting `, and', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(38) to the extent provided in section 30D(g).'.CommentsClose CommentsPermalink





(2) Section 6501(m) of such Code is amended by inserting `30D(k),' after `30C(e)(5),'.CommentsClose CommentsPermalink





(3) The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 30C the following new item:CommentsClose CommentsPermalink





`Sec. 30D. Advanced technology motor vehicles manufacturing credit.'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to amounts incurred in taxable years beginning after December 31, 2006.CommentsClose CommentsPermalink

SEC. 207. CONSUMER INCENTIVES TO PURCHASE ADVANCED TECHNOLOGY VEHICLES.

(a) Flexible Fuel Vehicle Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to foreign tax credit, etc.), as amended by this Act, is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 30E. FLEXIBLE FUEL VEHICLE CREDIT.

`(a) 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 GEM flexible fuel vehicle credit.CommentsClose CommentsPermalink





`(b) GEM Flexible Fuel Vehicle Credit-CommentsClose CommentsPermalink





`(1) IN GENERAL- For the purposes of subsection (a), the GEM flexible fuel vehicle credit determined under this subsection for the taxable year is the credit amount determined under paragraph (2) with respect to a GEM flexible fuel vehicle placed in service by the taxpayer during the taxable year.CommentsClose CommentsPermalink





`(2) CREDIT AMOUNT- In the case of a new qualified GEM flexible fuel vehicle which is a passenger automobile or light truck and which has a gross vehicle weight rating of not more than 8,500 pounds, the amount shall be $300.CommentsClose CommentsPermalink





`(c) Definitions- For purposes of this section--CommentsClose CommentsPermalink





`(1) GEM FLEXIBLE FUEL VEHICLE- The term `GEM flexible fuel vehicle' means a motor vehicle warrantied by its manufacturer to operate on any combination of gasoline, E85, and M85.CommentsClose CommentsPermalink





`(2) E85- The term `E85' means a fuel blend containing 85 percent ethanol and 15 percent gasoline by volume.CommentsClose CommentsPermalink





`(3) M85- The term `M85' means a fuel blend containing 85 percent methanol and 15 percent gasoline by volume.CommentsClose CommentsPermalink





`(d) Termination- This section shall not apply to taxable years beginning after December 31, 2010.'.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections for subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to foreign tax credit, etc.), as amended by this Act, is amended by adding at the end the following new item:CommentsClose CommentsPermalink





`Sec. 30E. Flexible fuel vehicle credit.'.CommentsClose CommentsPermalink





(b) Elimination on Number of New Qualified Hybrid and Advanced Lean Burn Technology Vehicles Eligible for Alternative Motor Vehicle Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 30B of the Internal Revenue Code of 1986 is amended by striking subsection (f) and by redesignating subsections (g) through (j) as subsections (f) through (i), respectively.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Paragraphs (4) and (6) of section 30B(h) of the Internal Revenue Code of 1986 are each amended by striking `(determined without regard to subsection (g))' and inserting `determined without regard to subsection (f))'.CommentsClose CommentsPermalink





(B) Section 38(b)(25) of such Code is amended by striking `section 30B(g)(1)' and inserting `section 30B(f)(1)'.CommentsClose CommentsPermalink





(C) Section 55(c)(2) of such Code is amended by striking `section 30B(g)(2)' and inserting `section 30B(f)(2)'.CommentsClose CommentsPermalink





(D) Section 1016(a)(36) of such Code is amended by striking `section 30B(h)(4)' and inserting `section 30B(g)(4)'.CommentsClose CommentsPermalink





(E) Section 6501(m) of such Code is amended by striking `section 30B(h)(9)' and inserting `section 30B(g)(9)'.CommentsClose CommentsPermalink





(c) Extension of Alternative Vehicle Credit for New Qualified Hybrid Motor Vehicles- Paragraph (3) of section 30B(i) of the Internal Revenue Code of 1986 (as redesignated by subsection (a)) is amended by striking `December 31, 2009' and inserting `December 31, 2010'.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to property placed in service after December 31, 2006, in taxable years ending after such date.CommentsClose CommentsPermalink

SEC. 208. FEDERAL FLEET REQUIREMENTS.

(a) Regulations-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary of Energy shall issue regulations for Federal fleets subject to the Energy Policy Act of 1992 (42 U.S.C. 13201 et seq.) requiring that not later than fiscal year 2015 each Federal agency achieve at least a 20 percent reduction in petroleum consumption, as calculated from the baseline established by the Secretary for fiscal year 1999.CommentsClose CommentsPermalink





(2) REQUIREMENT- Not later than fiscal year 2011, of the Federal vehicles required to be alternative fueled vehicles under title V of the Energy Policy Act of 1992 (42 U.S.C. 13251 et seq.), at least 30 percent shall be flexible fuel hybrid motor vehicles or flexible fuel plug-in hybrid motor vehicles.CommentsClose CommentsPermalink





(3) EXCEPTION- The regulations issued under this subsection shall not apply to ground vehicles of the Department of Defense whose primary purpose is combat or the support of troops in combat operations.CommentsClose CommentsPermalink





(b) Inclusion of Electric Drive in Energy Policy Act of 1992- Section 508(a) of the Energy Policy Act of 1992 (42 U.S.C. 13258(a)) is amended--CommentsClose CommentsPermalink





(1) by inserting `(1)' before `The Secretary'; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





`(2) Not later than January 31, 2008, the Secretary shall--CommentsClose CommentsPermalink





`(A) allocate credit in an amount to be determined by the Secretary for--CommentsClose CommentsPermalink





`(i) acquisition of--CommentsClose CommentsPermalink





`(I) a light-duty hybrid electric vehicle;CommentsClose CommentsPermalink





`(II) a plug-in hybrid electric vehicle;CommentsClose CommentsPermalink





`(III) a fuel cell electric vehicle;CommentsClose CommentsPermalink





`(IV) a medium- or heavy-duty hybrid electric vehicle;CommentsClose CommentsPermalink





`(V) a neighborhood electric vehicle; orCommentsClose CommentsPermalink





`(VI) a medium- or heavy-duty dedicated vehicle; andCommentsClose CommentsPermalink





`(ii) investment in qualified alternative fuel infrastructure or nonroad equipment, as determined by the Secretary; andCommentsClose CommentsPermalink





`(B) allocate more than 1, but not to exceed 5, credits for investment in an emerging technology relating to any vehicle described in subparagraph (A) to encourage--CommentsClose CommentsPermalink





`(i) a reduction in petroleum demand;CommentsClose CommentsPermalink





`(ii) technological advancement; andCommentsClose CommentsPermalink





`(iii) environmental safety.'.CommentsClose CommentsPermalink





(c) Authorization of Appropriations- There is authorized to be appropriated to carry out this section (including the amendments made by subsection (b)) $10,000,000 for the period of fiscal years 2008 through 2012.CommentsClose CommentsPermalink

SEC. 209. TAX INCENTIVES FOR PRIVATE FLEETS.

(a) In General- Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48B the following new section:CommentsClose CommentsPermalink

`SEC. 48C. FUEL-EFFICIENT FLEET CREDIT.

`(a) General Rule- For purposes of section 46, the fuel-efficient fleet credit for any taxable year is 15 percent of the qualified fuel-efficient vehicle investment amount of an eligible taxpayer for such taxable year.CommentsClose CommentsPermalink





`(b) Vehicle Purchase Requirement- In the case of any eligible taxpayer which places less than 10 qualified fuel-efficient vehicles in service during the taxable year, the qualified fuel-efficient vehicle investment amount shall be zero.CommentsClose CommentsPermalink





`(c) Qualified Fuel-Efficient Vehicle Investment Amount- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- The term `qualified fuel-efficient vehicle investment amount' means the basis of any qualified fuel-efficient vehicle placed in service by an eligible taxpayer during the taxable year.CommentsClose CommentsPermalink





`(2) QUALIFIED FUEL-EFFICIENT VEHICLE- The term `qualified fuel-efficient vehicle' means an automobile which has a fuel economy which is at least 10 percent greater than the average fuel economy standard for an automobile of the same class and model year.CommentsClose CommentsPermalink





`(3) OTHER TERMS- The terms `automobile', `average fuel economy standard', `fuel economy', and `model year' have the meanings given to such terms under section 32901 of title 49, United States Code.CommentsClose CommentsPermalink





`(d) Eligible Taxpayer- The term `eligible taxpayer' means, with respect to any taxable year, a taxpayer who owns a fleet of 100 or more vehicles which are used in the trade or business of the taxpayer on the first day of such taxable year.CommentsClose CommentsPermalink





`(e) Termination- This section shall not apply to any vehicle placed in service after December 31, 2010.'.CommentsClose CommentsPermalink





(b) Credit Treated as Part of Investment Credit- Section 46 of the Internal Revenue Code of 1986 is amended by striking `and' at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting `, and', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(5) the fuel-efficient fleet credit.'.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 49(a)(1)(C) of the Internal Revenue Code of 1986 is amended by striking `and' at the end of clause (iii), by striking the period at the end of clause (iv) and inserting `, and', and by adding at the end the following new clause:CommentsClose CommentsPermalink





`(v) the basis of any qualified fuel-efficient vehicle which is taken into account under section 48C.'.CommentsClose CommentsPermalink





(2) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48 the following new item:CommentsClose CommentsPermalink





`Sec. 48C. Fuel-efficient fleet credit.'.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to periods after December 31, 2006, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).CommentsClose CommentsPermalink

SEC. 210. REDUCING INCENTIVES TO GUZZLE GAS.

(a) Inclusion of Heavy Vehicles in Limitation on Depreciation of Certain Luxury Automobiles-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 280F(d)(5)(A) of the Internal Revenue Code of 1986 (defining passenger automobile) is amended--CommentsClose CommentsPermalink





(A) by striking clause (ii) and inserting the following new clause:CommentsClose CommentsPermalink





`(ii)(I) which is rated at 6,000 pounds unloaded gross vehicle weight or less, orCommentsClose CommentsPermalink





`(II) which is rated at more than 6,000 pounds but not more than 14,000 pounds gross vehicle weight.', andCommentsClose CommentsPermalink





(B) by striking `clause (ii)' in the second sentence and inserting `clause (ii)(I)'.CommentsClose CommentsPermalink





(2) EXCEPTION FOR VEHICLES USED IN FARMING BUSINESS- Section 280F(d)(5)(B) of such Code (relating to exception for certain vehicles) is amended by striking `and' at the end of clause (ii), by redesignating clause (iii) as clause (iv), and by inserting after clause (ii) the following new clause:CommentsClose CommentsPermalink





`(iii) any vehicle used in a farming business (as defined in section 263A(e)(4), and'.CommentsClose CommentsPermalink





(3) EFFECTIVE DATE- The amendments made by this subsection shall apply to property placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink





(b) Updated Depreciation Deduction Limits-CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (A) of section 280F(a)(1) of the Internal Revenue Code of 1986 (relating to limitation on amount of depreciation for luxury automobiles) is amended to read as follows:CommentsClose CommentsPermalink





`(I) LIMITATION- The amount of the depreciation deduction for any taxable year shall not exceed for any passenger automobile--CommentsClose CommentsPermalink





`(i) for the 1st taxable year in the recovery period--CommentsClose CommentsPermalink





`(I) described in subsection (d)(5)(A)(ii)(I), $4,000,CommentsClose CommentsPermalink





`(II) described in the second sentence of subsection (d)(5)(A), $5,000, andCommentsClose CommentsPermalink





`(III) described in subsection (d)(5)(A)(ii)(II), $6,000,CommentsClose CommentsPermalink





`(ii) for the 2nd taxable year in the recovery period--CommentsClose CommentsPermalink





`(I) described in subsection (d)(5)(A)(ii)(I), $6,400,CommentsClose CommentsPermalink





`(II) described in the second sentence of subsection (d)(5)(A), $8,000, andCommentsClose CommentsPermalink





`(III) described in subsection (d)(5)(A)(ii)(II), $9,600,CommentsClose CommentsPermalink





`(iii) for the 3rd taxable year in the recovery period--CommentsClose CommentsPermalink





`(I) described in subsection (d)(5)(A)(ii)(I), $3,850,CommentsClose CommentsPermalink





`(II) described in the second sentence of subsection (d)(5)(A), $4,800, andCommentsClose CommentsPermalink





`(III) described in subsection (d)(5)(A)(ii)(II), $5,775, andCommentsClose CommentsPermalink





`(iv) for each succeeding taxable year in the recovery period--CommentsClose CommentsPermalink





`(I) described in subsection (d)(5)(A)(ii)(I), $2,325,CommentsClose CommentsPermalink





`(II) described in the second sentence of subsection (d)(5)(A), $2,900, andCommentsClose CommentsPermalink





`(III) described in subsection (d)(5)(A)(ii)(II), $3,475.'.CommentsClose CommentsPermalink





(2) YEARS AFTER RECOVERY PERIOD- Section 280F(a)(1)(B)(ii) of such Code is amended to read as follows:CommentsClose CommentsPermalink





`(ii) LIMITATION- The amount treated as an expense under clause (i) for any taxable year shall not exceed for any passenger automobile--CommentsClose CommentsPermalink





`(I) described in subsection (d)(5)(A)(ii)(I), $2,325,CommentsClose CommentsPermalink





`(II) described in the second sentence of subsection (d)(5)(A), $2,900, andCommentsClose CommentsPermalink





`(III) described in subsection (d)(5)(A)(ii)(II), $3,475.'.CommentsClose CommentsPermalink





(3) INFLATION ADJUSTMENT- Section 280F(d)(7) of such Code (relating to automobile price inflation adjustment) is amended--CommentsClose CommentsPermalink





(A) by striking `after 1988' in subparagraph (A) and inserting `after 2006', andCommentsClose CommentsPermalink





(B) by striking subparagraph (B) and inserting the following new subparagraph:CommentsClose CommentsPermalink





`(B) AUTOMOBILE PRICE INFLATION ADJUSTMENT- For purposes of this paragraph--CommentsClose CommentsPermalink





`(i) IN GENERAL- The automobile price inflation adjustment for any calendar year is the percentage (if any) by which--CommentsClose CommentsPermalink





`(I) the average wage index for the preceding calendar year, exceedsCommentsClose CommentsPermalink





`(II) the average wage index for 2005.CommentsClose CommentsPermalink





`(ii) AVERAGE WAGE INDEX- The term `average wage index' means the average wage index published by the Social Security Administration.'.CommentsClose CommentsPermalink





(4) EFFECTIVE DATE- The amendments made by this subsection shall apply to property placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink





(c) Expensing Limitation for Farm Vehicles-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (6) of section 179(b) of the Internal Revenue Code of 1986 (relating to limitations) is amended to read as follows:CommentsClose CommentsPermalink





`(6) LIMITATION ON COST TAKEN INTO ACCOUNT FOR FARM VEHICLES- The cost of any vehicle described in section 280F(d)(5)(B)(iii) for any taxable year which may be taken into account under this section shall not exceed $30,000.'.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to property placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 211. FUEL CHOICE FOR TRANSPORTATION.

(a) Definitions- In this section:CommentsClose CommentsPermalink





(1) ALTERNATIVE FUEL; ALTERNATIVE FUEL AUTOMOBILE- The terms `alternative fuel' and `alternative fuel automobile' have the meanings given such terms in section 32901 of title 49, United States Code.CommentsClose CommentsPermalink





(2) E85- The term `E85' means a fuel blend containing 85 percent ethanol and 15 percent gasoline by volume.CommentsClose CommentsPermalink





(3) M85- The term `M85' means a fuel blend containing 85 percent methanol and 15 percent gasoline by volume.CommentsClose CommentsPermalink





(4) FLEXIBLE FUEL VEHICLE- The term `flexible fuel vehicle' means a motor vehicle warranted by its manufacturer to operate on any and all blends of gasoline, E85, and M85.CommentsClose CommentsPermalink





(5) FUEL CHOICE-ENABLING MOTOR VEHICLE- The term `fuel choice-enabling motor vehicle' means--CommentsClose CommentsPermalink





(A) a flexible fuel motor vehicle; orCommentsClose CommentsPermalink





(B) a vehicle warranted by its manufacturer to operate on biodiesel.CommentsClose CommentsPermalink





(6) LIGHT-DUTY MOTOR VEHICLE- The term `light-duty motor vehicle' means, as defined in regulations promulgated by the Administrator of the Environmental Protection Agency in effect on the date of enactment of this Act--CommentsClose CommentsPermalink





(A) a light-duty truck; orCommentsClose CommentsPermalink





(B) a light-duty vehicle.CommentsClose CommentsPermalink





(b) Fuel Choice for Transportation-CommentsClose CommentsPermalink





(1) RULEMAKING- Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall issue regulations to carry out the provisions of this subsection.CommentsClose CommentsPermalink





(2) SCHEDULE- Not less than 50 percent of each light-duty motor vehicles manufacturer's annual production of passenger cars manufactured on and after January 1, 2012, and before January 1, 2013, and no less than 80 percent of each manufacturer's production of passenger cars manufactured on and after January 1, 2013 shall be fuel choice enabling motor vehicles or alternative fuel automobiles.CommentsClose CommentsPermalink





(3) TEMPORARY EXEMPTION FROM REQUIREMENTS- Upon application by a manufacturer, in such manner and containing such information as the Secretary shall prescribe in the regulations promulgated under this section, the Secretary may at any time, under such terms and conditions and to such extent as the Secretary deems appropriate, temporarily exempt or renew the exemption of a motor vehicle from the requirements of subsection (b) if the Secretary finds that there has been a disruption in the supply of any component required for compliance with the regulations, or a disruption in the use and installation by the manufacturer of such component due to unavoidable events not under the control of the manufacturer, that will prevent a manufacturer from meeting its anticipated production volume of vehicles that meet the requirements of this subsection. Each application for such exemption must be filed by the manufacturer affected, and must specify the models, lines, and types of vehicles actually affected, although the Secretary may consolidate applications of a similar nature of 1 or more manufacturers. Any exemption or renewal shall be conditioned upon the manufacturer's commitment to recall the exempted vehicles for installation of omitted components within a reasonable time proposed by the manufacturer and approved by the Secretary after such components become available in sufficient quantities to satisfy both anticipated production and recall volume requirements. Notice of each application shall be published in the Federal Register and notice of each decision to grant or deny a temporary exemption, and the reasons for granting or denying it, shall be published in the Federal Register. The Secretary shall require labeling for each exempted motor vehicle which can only be removed after recall and installation of the required components. If a vehicle is delivered without the fuel choice capability required in this section, the Secretary shall require that written notification of the exemption be delivered to the dealer and first purchasers for purposes other than resale of such exempted motor vehicle in such a manner, and containing such information, as the Secretary deems appropriate.CommentsClose CommentsPermalink

SEC. 212. FLEXIBLE FUEL VEHICLE ECONOMY CALCULATIONS.

(a) In General- Section 32905 of title 49, United States Code, is amended--CommentsClose CommentsPermalink





(1) in subsections (b) and (d)--CommentsClose CommentsPermalink





(A) by amending paragraph (1) of each subsection to read as follows:CommentsClose CommentsPermalink





`(1) the number determined by--CommentsClose CommentsPermalink





`(A) subtracting from 1.0 the alternative fuel use factor for the model; andCommentsClose CommentsPermalink





`(B) dividing the difference calculated under subparagraph (A) by the fuel economy measured under section 32904(c) when operating the model on gasoline or diesel fuel; and'; andCommentsClose CommentsPermalink





(B) by amending paragraph (2) of each subsection to read as follows:CommentsClose CommentsPermalink





`(2) the number determined by dividing the alternative fuel use factor for the model by the fuel economy measured under subsection (a) when operating the model on alternative fuel.'; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





`(h) Determination of Alternative Fuel Use Factor-CommentsClose CommentsPermalink





`(1) For purposes of subsections (b) and (d), the term `alternative fuel use factor' means, for a model of automobile, the factor determined by the Administrator under this subsection.CommentsClose CommentsPermalink





`(2) At the beginning of each calendar year, the Secretary of Transportation shall estimate, by model, the aggregate amount of fuel and the aggregate amount of alternative fuel used to operate all dual fuel automobiles during the most recent 12-month period.CommentsClose CommentsPermalink





`(3) The Administrator shall determine, by regulation, the alternative fuel use factor for each model of dual fuel automobile as the fraction that represents, on an energy equivalent basis, the ratio that the amount of alternative fuel determined under paragraph (2) bears to the amount of fuel determined under paragraph (2).'.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall take effect on January 1, 2008.CommentsClose CommentsPermalink





(c) Applicability of Existing Standards- The amendments made by this section shall not affect the application of section 32901 of title 49, United States Code, to automobiles manufactured before model year 2008.CommentsClose CommentsPermalink

TITLE III--FUEL CHOICES FOR THE 21ST CENTURY

SEC. 301. FUEL CHOICE ACTION PLAN.

(a) Action Plan- Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall transmit to the Congress an action plan detailing specific plans to ensure that--CommentsClose CommentsPermalink





(1) not later than December 31, 2015, not less than 10 percent of the Nation's total ground transportation fuel demand can be supplied by fuels derived from sources other than oil; andCommentsClose CommentsPermalink





(2) not later than December 31, 2025, not less than 20 percent of the Nation's total ground transportation fuel demand can be supplied by fuels derived from sources other than oil.CommentsClose CommentsPermalink





(b) Fuels- The action plan may include plans for the use of fuels such as ethanol (derived from agricultural products, cellulosic bioproducts, or waste products), methanol, alternative diesel fuels, hydrogen, and electricity. The plan shall seek to the fullest extent practicable to meet the following goals:CommentsClose CommentsPermalink





(1) Not less than 50 percent of the fuels will be derived from renewable resources.CommentsClose CommentsPermalink





(2) Not less than 50 percent of the fuels shall be produced from domestic resources.CommentsClose CommentsPermalink





(c) Renewable Content in Transportation Fuels- Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2)(B)--CommentsClose CommentsPermalink





(A) in clause (i)--CommentsClose CommentsPermalink





(i) by striking `2012' and inserting `2015' in the heading;CommentsClose CommentsPermalink





(ii) by striking `2012' and inserting `2015'; andCommentsClose CommentsPermalink





(iii) by amending the table to read as follows:CommentsClose CommentsPermalink

2006CommentsClose CommentsPermalink

--4.0CommentsClose CommentsPermalink

2007CommentsClose CommentsPermalink

--4.7CommentsClose CommentsPermalink

2008CommentsClose CommentsPermalink

--5.4CommentsClose CommentsPermalink

2009CommentsClose CommentsPermalink

--6.1CommentsClose CommentsPermalink

2010CommentsClose CommentsPermalink

--6.8CommentsClose CommentsPermalink

2011CommentsClose CommentsPermalink

--8.0CommentsClose CommentsPermalink

2012CommentsClose CommentsPermalink

--9.0CommentsClose CommentsPermalink

2013CommentsClose CommentsPermalink

--11.0CommentsClose CommentsPermalink

2014CommentsClose CommentsPermalink

--13.0CommentsClose CommentsPermalink

2015CommentsClose CommentsPermalink

--15.0';CommentsClose CommentsPermalink

(B) in clause (ii)--CommentsClose CommentsPermalink





(i) by striking `2013' and inserting `2016' in the heading;CommentsClose CommentsPermalink





(ii) by striking `2013' and inserting `2016'; andCommentsClose CommentsPermalink





(iii) by striking `2012' and inserting `2015';CommentsClose CommentsPermalink





(C) in clause (iii), by striking `2013' and inserting `2016'; andCommentsClose CommentsPermalink





(D) in clause (iv)--CommentsClose CommentsPermalink





(i) by striking `2013' and inserting `2016'; andCommentsClose CommentsPermalink





(ii) by striking `2012' and inserting `2015';CommentsClose CommentsPermalink





(2) in paragraph (3)(A), by striking `2011' and inserting `2014';CommentsClose CommentsPermalink





(3) in paragraph (3)(B)(i), by striking `2012' and inserting `2015'; andCommentsClose CommentsPermalink





(4) in paragraph (6)(A), by striking `2012' and inserting `2015'.CommentsClose CommentsPermalink

SEC. 302. ETHANOL ACTION PLAN.

The Secretary of Energy shall complete an action plan to be delivered to Congress not later than 1 year after the date of enactment of this Act detailing specific plans to achieve a nationwide inclusion of not less than 10 percent ethanol in the ground transportation fuel supply by December 31, 2015. The plan shall seek to the fullest extent practicable to require that not less than 75 percent of the total ethanol content be produced from renewable, domestic resources.CommentsClose CommentsPermalink

SEC. 303. FUEL NEUTRALITY FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

(a) Eligibility for Infrastructure Credit- Section 30C(c)(1) of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





`(1) IN GENERAL- Except as provided in paragraph (2), the term `qualified alternative fuel vehicle refueling property' has the meaning given to such term by section 179A(d), but only with respect to any alternative fuel (as defined in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) including Section 1346 of the Energy Policy Act of 2005).'.CommentsClose CommentsPermalink





(b) Duration of Infrastructure Credit- Section 30C(g) such Code is amended to read as follows:CommentsClose CommentsPermalink





`(g) Termination- This section shall not apply to property placed in service after December 31, 2014.'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to property placed in service after December 31, 2008.CommentsClose CommentsPermalink

SEC. 304. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

(a) Increase in Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (a) of section 30C of the Internal Revenue Code of 1986 is amended by striking `30 percent' and inserting `50 percent'.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to property placed in service after December 31, 2006, in taxable years ending after such date.CommentsClose CommentsPermalink





(b) Alternative Fuel Retail Outlets-CommentsClose CommentsPermalink





(1) OWNER OR LESSOR- For purposes of this subsection, the term `owner or lessor' means--CommentsClose CommentsPermalink





(A) a franchisor who owns, leases, or controls a retail gasoline outlet at which the franchisee is authorized or permitted, under the franchise agreement, to sell alternative fuel; andCommentsClose CommentsPermalink





(B) a refiner or distributor who owns, leases, or controls a retail gasoline outlet.CommentsClose CommentsPermalink





(2) REQUIREMENT- Beginning in the year in which 10 percent or more of the registered vehicles in a county are capable of using a designated alternative fuel, each owner or lessor of a retail gasoline outlet with 10 or more vehicle fuel pumps in that county shall offer such designated alternative fuel at not less than 10 percent of such pumps.CommentsClose CommentsPermalink





(3) COMPLIANCE- An owner or lessor is in compliance with the requirement under paragraph (2) if the owner or lessor--CommentsClose CommentsPermalink





(A) provides alternative fuel at vehicle pumps owned or controlled by the owner or lessor; orCommentsClose CommentsPermalink





(B) purchases credits from another owner or lessor who operates more than the minimum required number of alternative fuel pumps.CommentsClose CommentsPermalink





(4) PROJECTIONS- Not later than July 1st of each year, the Secretary of Energy shall--CommentsClose CommentsPermalink





(A) identify the counties in which at least 10 percent of the registered vehicles are expected to be capable of using a designated alternative fuel within the following 18-month period; andCommentsClose CommentsPermalink





(B) notify owners and lessors with retail gasoline outlets in the counties identified under subparagraph (A) of the alternative fuel pump requirement under this subsection.CommentsClose CommentsPermalink





(5) RULEMAKING- The Secretary of Energy shall issue regulations to carry out the provisions of this subsection.CommentsClose CommentsPermalink

SEC. 305. USE OF CAFE PENALTIES TO BUILD ALTERNATIVE FUELING INFRASTRUCTURE.

Section 32912 of title 49, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink





`(e) Alternative Fueling Infrastructure Trust Fund- (1) There is established in the Treasury of the United States a trust fund, to be known as the Alternative Fueling Infrastructure Trust Fund, consisting of such amounts as are deposited into the Trust Fund under paragraph (2) and any interest earned on investment of amounts in the Trust Fund.CommentsClose CommentsPermalink





`(2) The Secretary of Transportation shall remit 90 percent of the amount collected in civil penalties under this section to the Trust Fund.CommentsClose CommentsPermalink





`(3) The Secretary of Energy may obligate such sums as are available in the Trust Fund for the Clean Cities grant program to increase the number of locations at which consumers may purchase fuel containing ethanol, biodiesel, and other alternative fuels.'.CommentsClose CommentsPermalink

SEC. 306. CELLULOSIC BIOMASS FUEL.

Section 211(o)(2)(B)(iii) of the Clean Air Act (42 U.S.C. 7545(o)(2)(B)(iii)) is amended to read as follows:CommentsClose CommentsPermalink





`(iii) MINIMUM QUANTITY DERIVED FROM CELLULOSIC BIOMASS-CommentsClose CommentsPermalink





`(I) CALENDAR YEARS 2008 THROUGH 2015- For each of calendar years 2008 through 2015, the applicable volume referred to in clause (ii) shall contain a minimum number of gallons that are derived from cellulosic biomass determined in accordance with the following table:CommentsClose CommentsPermalink

30.0CommentsClose CommentsPermalink

45.0CommentsClose CommentsPermalink

75.0CommentsClose CommentsPermalink

120.0CommentsClose CommentsPermalink

180.0CommentsClose CommentsPermalink

250.0CommentsClose CommentsPermalink

500.0CommentsClose CommentsPermalink

1,000.0.CommentsClose CommentsPermalink

`(II) CALENDAR YEAR 2016 AND THEREAFTER- For calendar year 2016 and each calendar year thereafter, the applicable volume referred to in clause (ii) shall contain a minimum number of gallons that are derived from cellulosic biomass this is equal to the product obtained by multiplying--CommentsClose CommentsPermalink

`(aa) the applicable volume referred to in clause (ii) for the calendar year; andCommentsClose CommentsPermalink

`(bb) the ratio that 1,000,000,000 gallons of cellulosic biomass bears to the applicable volume referred to in clause (ii) for calendar year 2015.CommentsClose CommentsPermalink

`(III) RATIO- For calendar year 2008 and each calendar year thereafter, the 2.5-to-1 ratio referred to in paragraph (4) shall not apply.'.CommentsClose CommentsPermalink

SEC. 307. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

Section 942(f) of the Energy Policy Act of 2005 (42 U.S.C. 16251(f)) is amended by striking `$250,000,000' and inserting `$200,000,000 for each of fiscal years 2007 through 2011'.CommentsClose CommentsPermalink

SEC. 308. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.

(a) Definitions- In this section:CommentsClose CommentsPermalink





(1) TRANSIT-ORIENTED DEVELOPMENT CORRIDOR- The term `Transit-Oriented Development Corridor' or `TODC' means a geographic area designated by the Secretary under subsection (b).CommentsClose CommentsPermalink





(2) OTHER TERMS- The terms `fixed guide way', `local governmental authority', `mass transportation', `Secretary', `State', and `urbanized area' have the meanings given the terms in section 5302 of title 49, United States Code.CommentsClose CommentsPermalink





(b) Transit-Oriented Development Corridors-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall develop and carry out a program to designate geographic areas in urbanized areas as Transit-Oriented Development Corridors.CommentsClose CommentsPermalink





(2) CRITERIA- An area designated as a TODC under paragraph (1) shall include rights-of-way for fixed guide way mass transportation facilities (including commercial development of facilities that have a physical and functional connection with each facility).CommentsClose CommentsPermalink





(3) NUMBER OF TODCS- In consultation with State transportation departments and metropolitan planning organizations, the Secretary shall designate--CommentsClose CommentsPermalink





(A) not fewer than 10 TODCs by December 31, 2015; andCommentsClose CommentsPermalink





(B) not fewer than 20 TODCs by December 31, 2025.CommentsClose CommentsPermalink





(4) TRANSIT GRANTS-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary make grants to eligible states and local governmental authorities to pay the Federal share of the cost of designating geographic areas in urbanized areas as TODCs.CommentsClose CommentsPermalink





(B) APPLICATION- Each eligible State or local governmental authority that desires to receive a grant under this paragraph shall submit an application to the Secretary, at such time, in such manner, and accompanied by such additional information as the Secretary may reasonably require.CommentsClose CommentsPermalink





(C) LABOR STANDARDS- Subchapter IV of chapter 31 of title 40, United States Code shall apply to projects that receive funding under this section.CommentsClose CommentsPermalink





(D) FEDERAL SHARE- The Federal share of the cost of a project under this subsection shall be 50 percent.CommentsClose CommentsPermalink





(c) TODC Research and Development- To support effective deployment of grants and incentives under this section, the Secretary shall establish a TODC research and development program to conduct research on the best practices and performance criteria for TODCs.CommentsClose CommentsPermalink





(d) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2008 through 2012.CommentsClose CommentsPermalink

SEC. 309. SAVING OIL BY REDUCING MILES-OF-TRAVEL: PILOT PROJECTS.

(a) In General- The Secretary of Transportation (in this section referred to as the `Secretary') shall develop and implement pilot projects the purpose of which is to reduce vehicle miles traveled.CommentsClose CommentsPermalink





(b) Highway Congestion Tolling Evaluation Study- The Secretary shall carry out evaluation projects in no less than 6 metropolitan areas selected by the Secretary to determine how technology can best be applied to assess mileage-based road user charges on major highways at peak-commuting times for the purposes of--CommentsClose CommentsPermalink





(1) reducing oil usage;CommentsClose CommentsPermalink





(2) lessening highway congestion; andCommentsClose CommentsPermalink





(3) expanding travel alternatives.CommentsClose CommentsPermalink





(c) Parking Cash-Out Evaluation Project-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall carry out a national evaluation pilot project to assess how offering commuters the option to receive the cash value of their workplace parking place, if any, instead of free parking can--CommentsClose CommentsPermalink





(A) reduce oil usage;CommentsClose CommentsPermalink





(B) lessen highway congestion; andCommentsClose CommentsPermalink





(C) expand travel alternatives.CommentsClose CommentsPermalink





(2) EMPLOYER REQUIREMENT- Under the evaluation pilot project, any employer that is participating in the pilot project and offers free-of-charge commuter parking to the employees of the employer must also offer a cashout alternative to employees.CommentsClose CommentsPermalink





(d) Report- The Secretary shall submit to Congress every 2 years after the date of the enactment of this Act a report on the progress and results of pilot projects under this section. The report shall provide an analysis and summary of project implementation, changes in oil usage and travel demand, and other matters as deemed appropriate by the Secretary.CommentsClose CommentsPermalink





(e) Authorization of Appropriations- There are authorized to be appropriated to carry out subsection (b) $4,000,000, and to carry out subsection (c) $4,000,000, for each of fiscal years 2008 through 2016.CommentsClose CommentsPermalink

SEC. 310. SAVING OIL BY REDUCING VEHICLE-MILES-OF-TRAVEL: RESEARCH AND DEVELOPMENT.

(a) In General- The Secretary of Transportation shall establish a new research program the purpose of which is to investigate the oil-savings potential and feasibility of programs which convert fixed costs of driving to variable costs.CommentsClose CommentsPermalink





(b) Research Program- The program's research shall include studies of the potential and feasibility of--CommentsClose CommentsPermalink





(1) varying vehicle registration fees based on vehicle-miles of travel;CommentsClose CommentsPermalink





(2) varying vehicle lease fees based on vehicle-miles of travel;CommentsClose CommentsPermalink





(3) varying vehicle rental rates based on vehicle-miles of travel; andCommentsClose CommentsPermalink





(4) other such costs which could be linked to vehicle-miles of travel in order to provide incentives to reduce driving.CommentsClose CommentsPermalink





(c) Report- The Secretary shall submit to Congress and publish on the Department of Transportation web site at least one research product per year.CommentsClose CommentsPermalink





(d) Authorization of Appropriations- There are authorized to be appropriated to carry out this section $2,000,000 for each of fiscal years 2008 through 2017.CommentsClose CommentsPermalink

SEC. 311. BIOFUELS.

(a) Energy Policy Act of 2005 Amendments- The Energy Policy Act of 2005 is amended--CommentsClose CommentsPermalink





(1) in section 208(c)(2)(A) by striking `be limited to sugar producers and the production of ethanol in the States of Florida, Louisiana, Texas, and Hawaii, divided equally among the States,';CommentsClose CommentsPermalink





(2) in section 932(a)(1)(C)(ii) by striking `, but not including municipal solid waste, gas derived from the biodegradation of municipal solid waste, or paper that is commonly recycled';CommentsClose CommentsPermalink





(3) in section 946(c)(1) by striking `ethanol' and inserting `transportation fuel produced from biomass';CommentsClose CommentsPermalink





(4) in section 1510(b) by striking `fuel ethanol' and inserting `transportation fuel produced from biomass,' andCommentsClose CommentsPermalink





(5) in section 1514(c)(1)(A) by striking `biomass ethanol' and inserting `transportation fuel produced from biomass'.CommentsClose CommentsPermalink





(b) Internal Revenue Code of 1986 Amendment-CommentsClose CommentsPermalink





(1) AMENDMENT- Section 30C(c)(1)(A) of the Internal Revenue Code of 1986 is amended by striking `one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen' and inserting `an alternative fuel (as defined in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211)), including section 1346 of the Energy Policy Act of 2005'.CommentsClose CommentsPermalink





(2) EFFECT- The amendment made by paragraph (1) shall take effect as if enacted by section 1342 of the Energy Policy Act of 2005.CommentsClose CommentsPermalink





(c) Clean Air Act Amendments- The Clean Air Act is amended--CommentsClose CommentsPermalink





(1) in section 212 (42 U.S.C. 7546)--CommentsClose CommentsPermalink





(A) by adding at the end of subsection (a) the following new paragraph:CommentsClose CommentsPermalink





`(4) BIOFUEL- The term `biofuel' means any transportation fuel produced from biomass.'; andCommentsClose CommentsPermalink





(B) by striking `ethanol' each place it appears and inserting `biofuel'; andCommentsClose CommentsPermalink





(2) in section 211(r) (42 U.S.C. 7545(r)) by striking `ethanol' each place it appears and inserting `biofuel'.CommentsClose CommentsPermalink