S 339 ISCommentsClose CommentsPermalink

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

January 18, 2007

Mr. BAYH (for himself, Mr. BROWNBACK, Mr. LIEBERMAN, Mr. COLEMAN, Mr. GRAHAM, Mr. SALAZAR, Mr. SESSIONS, Mr. BINGAMAN, Mr. LUGAR, Mr. OBAMA, Ms. COLLINS, Mr. NELSON of Florida, Mr. AKAKA, Ms. CANTWELL, Mrs. CLINTON, Mr. DURBIN, Mrs. FEINSTEIN, Mr. KENNEDY, Mr. KERRY, Mr. KOHL, Mr. LEAHY, Mrs. LINCOLN, Mr. MENENDEZ, Mr. SCHUMER, and Mr. TESTER) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To promote the national security and stability of the United States economy by reducing the dependence of the United States on oil through the use of alternative fuels and new technology, 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 PLAN AND REQUIREMENTS

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





Sec. 102. Standards and requirements.CommentsClose CommentsPermalink





Sec. 103. Initial evaluation.CommentsClose CommentsPermalink





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





Sec. 105. Baseline and analysis requirements.CommentsClose CommentsPermalink





Sec. 106. Nonregulatory measures.CommentsClose CommentsPermalink

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

Sec. 201. Tire fuel efficiency consumer information.CommentsClose CommentsPermalink





Sec. 202. Tire efficiency program.CommentsClose CommentsPermalink





Sec. 203. Reduction of school bus idling.CommentsClose CommentsPermalink





Sec. 204. Fuel efficiency for heavy duty trucks.CommentsClose CommentsPermalink





Sec. 205. Idling reduction tax credit.CommentsClose CommentsPermalink





Sec. 206. Near-term vehicle technology program.CommentsClose CommentsPermalink





Sec. 207. Plug-in hybrid electric and hydrogen vehicle prizes.CommentsClose CommentsPermalink





Sec. 208. Lightweight materials research and development.CommentsClose CommentsPermalink





Sec. 209. Hybrid and advanced diesel vehicles.CommentsClose CommentsPermalink





Sec. 210. Advanced technology motor vehicles manufacturing credit.CommentsClose CommentsPermalink





Sec. 211. Consumer incentives to purchase advanced technology vehicles.CommentsClose CommentsPermalink





Sec. 212. Consumer incentives to purchase plug-in hybrid electric vehicles.CommentsClose CommentsPermalink





Sec. 213. Federal fleet requirements.CommentsClose CommentsPermalink





Sec. 214. Federal agency ethanol-blended gasoline and biodiesel purchasing requirement.CommentsClose CommentsPermalink





Sec. 215. Use of the existing flexible fuel vehicle fleet of the Federal government.CommentsClose CommentsPermalink





Sec. 216. Standards for executive agency automobiles.CommentsClose CommentsPermalink





Sec. 217. Tax incentives for private fleets.CommentsClose CommentsPermalink





Sec. 218. Reducing incentives to guzzle gas.CommentsClose CommentsPermalink





Sec. 219. Increasing the efficiency of motor vehicles.CommentsClose CommentsPermalink

TITLE III--FUEL CHOICES FOR THE 21ST CENTURY

Sec. 301. Increase in alternative fuel vehicle refueling property credit.CommentsClose CommentsPermalink





Sec. 302. Extension of biodiesel income and excise tax credits.CommentsClose CommentsPermalink





Sec. 303. Small ethanol producer credit expanded for producers of sucrose and cellulosic ethanol.CommentsClose CommentsPermalink





Sec. 304. Use of CAFE penalties to build alternative fueling infrastructure.CommentsClose CommentsPermalink





Sec. 305. Accelerating conversion to alternative fuels infrastructure.CommentsClose CommentsPermalink





Sec. 306. Increasing consumer awareness of flexible fuel automobiles.CommentsClose CommentsPermalink





Sec. 307. Minimum quantity of renewable fuel derived from cellulosic biomass.CommentsClose CommentsPermalink





Sec. 308. Minimum quantity of renewable fuel derived from sugar.CommentsClose CommentsPermalink





Sec. 309. Bioenergy research and development.CommentsClose CommentsPermalink





Sec. 310. Production incentives for cellulosic biofuels.CommentsClose CommentsPermalink





Sec. 311. Low-interest loan and grant program for retail delivery of E-85 fuel.CommentsClose CommentsPermalink





Sec. 312. Transit-Oriented Development Corridors.CommentsClose CommentsPermalink

TITLE IV--NATIONWIDE ENERGY SECURITY MEDIA CAMPAIGN

Sec. 401. Nationwide media campaign to decrease oil consumption.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, hurts families, and harms the environment of the United States;CommentsClose CommentsPermalink





(3) the United States currently imports more than 60 percent of the 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) nearly 2,500,000 barrels of oil per day are imported from countries in the Persian Gulf region;CommentsClose CommentsPermalink





(5) dependence on foreign oil has led to strategic partnerships with some regimes that do not share the democratic values of the United States;CommentsClose CommentsPermalink





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





(7) oil imports comprise more than 31 percent of the dangerously high United States trade deficit;CommentsClose CommentsPermalink





(8) it is technically feasible to achieve oil savings of more than 2,500,000 barrels per day by 2017 and 7,000,000 barrels per day by 2026;CommentsClose CommentsPermalink





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





(A) increasing the efficiency of transportation;CommentsClose CommentsPermalink





(B) providing economic incentives for manufacturers and consumers to produce and purchase fuel-efficient vehicles and clean alternative fuels;CommentsClose CommentsPermalink





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





(D) the commercialization of clean alternative liquid fuels and expansion of alternative fuels infrastructure;CommentsClose CommentsPermalink





(10) 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 have increased tenfold in the past 5 years) make an oil savings plan eminently achievable;CommentsClose CommentsPermalink





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





(12) achieving those goals will help protect the economy of the United States by reducing vulnerability to volatile oil prices and price shocks and by developing clean energy and energy efficiency technology in the United States; andCommentsClose CommentsPermalink





(13) 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) harm consumers who want to purchase, and businesses who want to provide, oil savings technologies and fuels, and harm individuals who are exposed to greater air pollution.CommentsClose CommentsPermalink





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





(1) to accelerate market penetration of advanced technology vehicles, flexible fuel vehicles, biofuels, and other oil saving technologies;CommentsClose CommentsPermalink





(2) to enable the accelerated market penetration of efficient transportation and clean 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; andCommentsClose CommentsPermalink





(4) to promote a nationwide diversity of clean alternative 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.CommentsClose CommentsPermalink

TITLE I--OIL SAVINGS 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 2016;CommentsClose CommentsPermalink





(B) 7,000,000 barrels of oil per day on average during calendar year 2026; andCommentsClose CommentsPermalink





(C) 10,000,000 barrels per day on average during calendar year 2031; 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 of publication of the action plan under section 101, the Secretary of Energy, the Secretary of Transportation, the Secretary of Defense, the Secretary of Agriculture, the Secretary of the Treasury, the Administrator of the Environmental Protection Agency, and the head of any other agency the President determines appropriate 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).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 the oil savings from the baseline determined under section 105.CommentsClose CommentsPermalink

SEC. 103. INITIAL EVALUATION.

(a) In General- Not later than 2 years after the date of enactment of this Act, the Director shall--CommentsClose CommentsPermalink





(1) publish in the Federal Register a Federal Government-wide analysis of--CommentsClose CommentsPermalink





(A) the oil savings achieved from the baseline established under section 105; andCommentsClose CommentsPermalink





(B) the expected oil savings under the standards and requirements of this Act (and amendments made by this Act); andCommentsClose CommentsPermalink





(2) determine whether oil savings will meet the targets established under section 101.CommentsClose CommentsPermalink





(b) Insufficient 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 that are sufficient to achieve the targets under subsections (a), (b), and (c), respectively, of section 102.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(a).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 submit to Congress, and 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) Insufficient 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 that are sufficient to achieve the targets under subsections (a), (b), and (c), respectively, of section 102.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(a).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 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 the President determines to be appropriate 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 2005';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. NONREGULATORY MEASURES.

The action plan required under section 101 and the revised action plans required under sections 103 and 104 shall include--CommentsClose CommentsPermalink





(1) a projection of the barrels of oil displaced by efficiency and sources of energy other than oil, including biofuels, electricity, and hydrogen; andCommentsClose CommentsPermalink





(2) a projection of the barrels of oil saved through enactment of this Act and the Energy Policy Act of 2005 (42 U.S.C. 15801 et seq.).CommentsClose CommentsPermalink

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

SEC. 201. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.

(a) In General- Chapter 301 of title 49, United States Code, is amended by inserting after section 30123 the following:CommentsClose CommentsPermalink

`SEC. 30123A. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.

`(a) Rulemaking-CommentsClose CommentsPermalink





`(1) IN GENERAL- Not later than 18 months after the date of the enactment of this section, the Secretary of Transportation shall, after notice and opportunity for comment, promulgate rules establishing a national tire fuel efficiency consumer information program for tires designed for use on motor vehicles to educate consumers about the effect of tires on automobile fuel efficiency.CommentsClose CommentsPermalink





`(2) ITEMS TO BE INCLUDED IN RULES- The rules promulgated under paragraph (1) shall include--CommentsClose CommentsPermalink





`(A) a national tire fuel efficiency rating system for motor vehicle tires to assist consumers in making more educated tire purchasing decisions;CommentsClose CommentsPermalink





`(B) requirements for providing information to consumers, including point of sale information and other potential information dissemination methods, including the Internet;CommentsClose CommentsPermalink





`(C) specifications for test methods for manufacturers to use in assessing and rating tires to avoid variation among test equipment and manufacturers; andCommentsClose CommentsPermalink





`(D) a national tire maintenance consumer education program to maximize fuel efficiency, which shall include information on tire inflation pressure, alignment, rotation, and tread wear.CommentsClose CommentsPermalink





`(b) Consultation- The Secretary shall consult with the Secretary of Energy and the Administrator of the Environmental Protection Agency on the means of conveying tire fuel efficiency consumer information.CommentsClose CommentsPermalink





`(c) Tire Marking- The Secretary may not require permanent labeling of any kind on a tire for the purpose of tire fuel efficiency information.CommentsClose CommentsPermalink





`(d) Reports to Congress-CommentsClose CommentsPermalink





`(1) IN GENERAL- The Secretary shall periodically assess the rules promulgated under this section to determine--CommentsClose CommentsPermalink





`(A) the utility of such rules to consumers;CommentsClose CommentsPermalink





`(B) the level of cooperation by industry; andCommentsClose CommentsPermalink





`(C) the contribution to national goals pertaining to energy consumption.CommentsClose CommentsPermalink





`(2) SUBMISSION- The Secretary shall submit periodic reports detailing the findings of the assessments conducted under paragraph (1) to--CommentsClose CommentsPermalink





`(A) the Committee on Commerce, Science, and Transportation of the Senate; andCommentsClose CommentsPermalink





`(B) the Committee on Energy and Commerce of the House of Representatives.CommentsClose CommentsPermalink





`(e) Applicability- This section shall not apply to tires excluded from coverage under section 575.104(c)(2) of title 49, Code of Federal Regulations, as in effect on date of the enactment of this section.CommentsClose CommentsPermalink





`(f) Preemption-CommentsClose CommentsPermalink





`(1) IN GENERAL- A State or political subdivision of a State may not adopt or enforce a law or regulation on tire fuel efficiency consumer information that conflicts with a requirement under this section.CommentsClose CommentsPermalink





`(2) SAVINGS PROVISION- Nothing in this section may be construed to preempt a State or political subdivision of a State from regulating the fuel efficiency of tires if such regulation is not otherwise preempted under this section.'.CommentsClose CommentsPermalink





(b) Enforcement- Section 30165(a) of title 49, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink





`(4) SECTION 30123A- Any person who fails to comply with the national tire fuel efficiency consumer information program under section 30123A shall be subject to the United States Government for a civil penalty of not more than $50,000 for each violation.'.CommentsClose CommentsPermalink





(c) Table of Contents- The table of contents for chapter 301 of title 49, United States Code, is amended by inserting after the item relating to section 30123 the following:CommentsClose CommentsPermalink





`30123A. Tire fuel efficiency consumer information .'.CommentsClose CommentsPermalink

SEC. 202. 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 also shall' and inserting 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.CommentsClose CommentsPermalink





`(2) NOMENCLATURE AND MARKETING PRACTICES- The Secretary shall'; andCommentsClose 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





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





`(d) National Tire Efficiency Program-CommentsClose CommentsPermalink





`(1) DEFINED TERM- 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 automobile 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 automobiles and light trucks.CommentsClose CommentsPermalink





`(3) REQUIREMENTS- Not later than March 31, 2009, 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) on-road fleet testing programs conducted by manufacturers, to the extent appropriate and available; 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 frequently 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 automobiles 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, 2009, the Secretary of Transportation shall administer the national tire fuel efficiency program established under section 30123(d) of title 49, United States Code, as added by subsection (a).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. 203. 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 2013 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. 204. 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

`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- Not later than 18 months after the date of the enactment of this chapter, the Administrator shall design and implement a National testing program to assess the fuel economy of heavy duty vehicles that is modeled on the fuel economy program established under chapter 329.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 the assessment appropriately considers vehicle use and needs.CommentsClose CommentsPermalink





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





`(1) not later than 2 years after the date of the 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) not less frequently than once every 2 years, submit a report to Congress 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 promulgate regulations prescribing average heavy duty vehicle fuel economy standards. Each standard shall be the maximum feasible average fuel economy level that the Secretary determines that manufacturers can achieve for 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 the heavy truck manufacturing industry; 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 Federal Government, States, and other public and private agencies in developing fuel economy standards for heavy duty motor vehicles.CommentsClose CommentsPermalink





`(d) 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 2013, such sums as may be necessary to carry out this chapter.'.CommentsClose CommentsPermalink

SEC. 205. IDLING REDUCTION TAX CREDIT.

(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 45O. IDLING REDUCTION CREDIT.

`(a) General Rule- For purposes of section 38, the idling reduction tax credit determined under this section for the taxable year is an amount equal to 50 percent of the amount paid or incurred for the purchase and installation of each qualifying idling reduction device or qualifying idle reduction infrastructure placed in service by the taxpayer during the taxable year.CommentsClose CommentsPermalink





`(b) Limitation- The maximum amount allowed as a credit under subsection (a) shall not exceed $3,500 per device or per infrastructure.CommentsClose CommentsPermalink





`(c) Definitions- For purposes of subsection (a)--CommentsClose CommentsPermalink





`(1) QUALIFYING IDLING REDUCTION DEVICE- The term `qualifying idling reduction device' means any device or system of devices which--CommentsClose CommentsPermalink





`(A) is installed on a heavy-duty diesel-powered on-highway vehicle,CommentsClose CommentsPermalink





`(B) is designed to provide to such vehicle those services (such as heat, air conditioning, or electricity) that would otherwise require the operation of the main drive engine while the vehicle is temporarily parked or remains stationary using either--CommentsClose CommentsPermalink





`(i) an all electric unit, such as a battery powered unit or from grid-supplied electricity, orCommentsClose CommentsPermalink





`(ii) a dual fuel unit powered by diesel or other fuels, and capable of providing such services from grid-supplied electricity or on-truck batteries alone,CommentsClose CommentsPermalink





`(C) the original use of which commences with the taxpayer,CommentsClose CommentsPermalink





`(D) is acquired for use by the taxpayer and not for resale, andCommentsClose CommentsPermalink





`(E) is certified by the Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, to reduce long-duration idling of such vehicle at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary.CommentsClose CommentsPermalink





`(2) HEAVY-DUTY DIESEL-POWERED ON-HIGHWAY VEHICLE- The term `heavy-duty diesel-powered on-highway vehicle' means any vehicle, machine, tractor, trailer, or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property, or any combination thereof determined by the Federal Highway Administration.CommentsClose CommentsPermalink





`(3) LONG-DURATION IDLING- The term `long-duration idling' means the operation of a main drive engine, for a period greater than 15 consecutive minutes, where the main drive engine is not engaged in gear. Such term does not apply to routine stoppages associated with traffic movement or congestion.CommentsClose CommentsPermalink





`(4) QUALIFYING IDLE REDUCTION INFRASTRUCTURE- The term `qualifying idle reduction infrastructure' means either--CommentsClose CommentsPermalink





`(A) off-truck equipment to supply electric power, including electric receptacles, boxes, wiring, conduit, and other connections to one truck space, orCommentsClose CommentsPermalink





`(B) off-truck equipment that directly provides air conditioning, heating, electric power, and other connections and services to one truck space.CommentsClose CommentsPermalink





`(d) No Double Benefit- For purposes of this section--CommentsClose CommentsPermalink





`(1) REDUCTION IN BASIS- If a credit is determined under this section with respect to any property by reason of expenditures described in subsection (a), the basis of such property shall be reduced by the amount of the credit so determined.CommentsClose CommentsPermalink





`(2) OTHER DEDUCTIONS AND CREDITS- No deduction or credit shall be allowed under any other provision of this chapter with respect to the amount of the credit determined under this section.CommentsClose CommentsPermalink





`(e) Election Not to Claim Credit- This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year.'.CommentsClose CommentsPermalink





(b) Credit to Be Part of General Business Credit- Subsection (b) of section 38 of the Internal Revenue Code of 1986 (relating to general business credit) is amended by striking `plus' at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting `, plus' , and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(32) the idling reduction tax credit determined under section 45O(a).'.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 45N the following new item:CommentsClose CommentsPermalink





`Sec. 45O. Idling reduction credit.'.CommentsClose CommentsPermalink





(2) Section 1016(a) of such Code 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:CommentsClose CommentsPermalink





`(38) in the case of a facility with respect to which a credit was allowed under section 45O, to the extent provided in section 45O(d)(1).'.CommentsClose CommentsPermalink





(3) Section 6501(m) of such Code is amended by inserting `45O(e),' after `45D(c)(4),'.CommentsClose CommentsPermalink





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





(e) Determination of Certification Standards by Secretary of Energy for Certifying Idling Reduction Devices- Not later than 6 months after the date of the enactment of this Act and in order to reduce air pollution and fuel consumption, the Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, shall publish the standards under which the Secretary, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, will, for purposes of section 45O of the Internal Revenue Code of 1986 (as added by this section), certify the idling reduction devices and idling reduction infrastructure which will reduce long-duration idling of vehicles at motor vehicle rest stops or other locations where such vehicles are temporarily parked or remain stationary in order to reduce air pollution and fuel consumption.CommentsClose CommentsPermalink

SEC. 206. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.

(a) Purposes- The purposes of this section are to enhance the energy security of the United States, reduce dependence on imported oil, improve the energy efficiency of the transportation sector, and reduce emissions through the expansion of grid-supported mobility by--CommentsClose CommentsPermalink





(1) developing, in partnership with private industry, research institutions, National Laboratories, and institutions of higher education, projects to promote--CommentsClose CommentsPermalink





(A) the commercialization of electric drive transportation technology and hybrid vehicle technology for various sizes and applications of vehicles, including the commercialization of plug-in hybrid electric vehicles and plug-in hybrid fuel cell vehicles;CommentsClose CommentsPermalink





(B) growth in employment in the United States in--CommentsClose CommentsPermalink





(i) electric drive transportation technology and hybrid vehicle system design; andCommentsClose CommentsPermalink





(ii) the manufacturing of electric drive and hybrid components and vehicles;CommentsClose CommentsPermalink





(C) the validation of the potential for plug-in hybrid vehicles through fleet demonstrations and data collection; andCommentsClose CommentsPermalink





(D) the acceleration of fuel cell commercialization through comprehensive development and commercialization of the electric drive transportation technology systems that are the foundational technology of the fuel cell vehicle system;CommentsClose CommentsPermalink





(2) making critical public investments to help private industry, research institutions, National Laboratories, and institutions of higher education to expand innovation, industrial growth, and jobs in the United States through the development, demonstration, and commercialization of a wide range of electric drive transportation technology and hybrid technology components, systems, and vehicles using diverse transportation technologies;CommentsClose CommentsPermalink





(3) optimizing the availability of the existing electric infrastructure for fueling light-duty transportation and other on-road and nonroad vehicles in lieu of vehicles and equipment that use petroleum, including the more than 3,000,000 reported units (such as electric forklifts, golf carts, and similar nonroad vehicles) in use on the date of enactment of this Act; andCommentsClose CommentsPermalink





(4) developing advanced communication, metering, and charging technologies necessary for the integration of electric drive transportation technology into the smart grid of the future.CommentsClose CommentsPermalink





(b) Definitions- In this section:CommentsClose CommentsPermalink





(1) ADMINISTRATOR- The term `Administrator' means the Administrator of the Environmental Protection Agency.CommentsClose CommentsPermalink





(2) BATTERY- The term `battery' means an electrochemical energy storage device used in an on-road or nonroad vehicle powered in whole or in part using an off-board or on-board source of electricity.CommentsClose CommentsPermalink





(3) ELECTRIC DRIVE TRANSPORTATION TECHNOLOGY- The term `electric drive transportation technology' means--CommentsClose CommentsPermalink





(A) vehicles that use an electric motor for all or part of the motive power of the vehicles and that may or may not use off-board electricity, including battery electric vehicles, fuel cell vehicles, engine dominant hybrid vehicles, plug-in hybrid electric vehicles, plug-in hybrid fuel cell vehicles, and electric rail; orCommentsClose CommentsPermalink





(B) equipment relating to transportation or mobile sources of air pollution that use an electric motor to replace an internal combustion engine for all or part of the work of the equipment, including--CommentsClose CommentsPermalink





(i) corded electric equipment linked to transportation or mobile sources of air pollution; andCommentsClose CommentsPermalink





(ii) electrification technologies at airports, ports, truck stops, and material-handling facilities.CommentsClose CommentsPermalink





(4) ENERGY STORAGE DEVICE-CommentsClose CommentsPermalink





(A) IN GENERAL- The term `energy storage device' means the onboard device used in an on-road or nonroad vehicle to store energy.CommentsClose CommentsPermalink





(B) INCLUSIONS- The term `energy storage device' includes--CommentsClose CommentsPermalink





(i) in the case of an electric or hybrid electric vehicle, a battery, ultracapacitor, or similar device; andCommentsClose CommentsPermalink





(ii) in the case of a hybrid hydraulic vehicle, an accumulator or similar device.CommentsClose CommentsPermalink





(5) ENGINE DOMINANT HYBRID VEHICLE- The term `engine dominant hybrid vehicle' means an on-road or nonroad vehicle that--CommentsClose CommentsPermalink





(A) is propelled by an internal combustion engine or heat engine using--CommentsClose CommentsPermalink





(i) any combustible fuel; andCommentsClose CommentsPermalink





(ii) an on-board, rechargeable energy storage device; andCommentsClose CommentsPermalink





(B) has no means of using an off-board source of energy.CommentsClose CommentsPermalink





(6) FUEL CELL VEHICLE- The term `fuel cell vehicle' means an on-road or nonroad vehicle that uses a fuel cell (as defined in section 803 of the Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 (42 U.S.C. 16152)).CommentsClose CommentsPermalink





(7) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher education' has the meaning given the term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).CommentsClose CommentsPermalink





(8) NONROAD VEHICLE- The term `nonroad vehicle' means a vehicle powered by a nonroad engine, as that term is defined in section 216 of the Clean Air Act (42 U.S.C. 7550).CommentsClose CommentsPermalink





(9) PLUG-IN HYBRID ELECTRIC VEHICLE- 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 any combination of--CommentsClose CommentsPermalink





(A) an electric motor and on-board, rechargeable energy storage system capable of operating the vehicle in intermittent or continuous all-electric mode and which is rechargeable using an off-board source of electricity; andCommentsClose CommentsPermalink





(B) an internal combustion engine or heat engine using any combustible fuel.CommentsClose CommentsPermalink





(10) PLUG-IN HYBRID FUEL CELL VEHICLE- The term `plug-in hybrid fuel cell vehicle' means a fuel cell vehicle with an on-board, rechargeable storage device powered by an off-board source of electricity.CommentsClose CommentsPermalink





(11) QUALIFIED ELECTRIC TRANSPORTATION PROJECT- The term `qualified electric transportation project' includes a project relating to--CommentsClose CommentsPermalink





(A) ship-to-shore electrification;CommentsClose CommentsPermalink





(B) truck-stop electrification;CommentsClose CommentsPermalink





(C) electric truck refrigeration units;CommentsClose CommentsPermalink





(D) electric airport ground support equipment;CommentsClose CommentsPermalink





(E) electric material handing equipment;CommentsClose CommentsPermalink





(F) electric or dual-mode electric freight rail; andCommentsClose CommentsPermalink





(G) any associated infrastructure, including panel upgrades, battery chargers, and trenching.CommentsClose CommentsPermalink





(12) SECRETARY- The term `Secretary' means the Secretary of Energy.CommentsClose CommentsPermalink





(13) TASK FORCE- The term `Task Force' means the task force established under subsection (e)(2)(A).CommentsClose CommentsPermalink





(c) Electric Drive and Hybrid Transportation Research and Development- The Secretary shall carry out a research, development, demonstration, and commercial application program for electric drive transportation technology and engine dominant hybrid vehicle technology, including--CommentsClose CommentsPermalink





(1) high capacity, high efficiency energy storage devices that, as compared to existing technologies that are in commercial service, have improved the life, energy storage capacity, and power delivery capacity of the energy storage device;CommentsClose CommentsPermalink





(2) high efficiency on-board and off-board charging components;CommentsClose CommentsPermalink





(3) high power and energy-efficient drive train systems for passenger and commercial vehicles and for nonroad vehicles;CommentsClose CommentsPermalink





(4) control system development and power train development and integration for plug-in hybrid electric vehicles, plug-in hybrid fuel cell vehicles, and engine dominant hybrid vehicles, including--CommentsClose CommentsPermalink





(A) development of efficient cooling systems;CommentsClose CommentsPermalink





(B) analysis and development of control systems that minimize the emissions profile when clean diesel engines are part of a plug-in hybrid drive system; andCommentsClose CommentsPermalink





(C) development of different control systems that optimize for different goals, including--CommentsClose CommentsPermalink





(i) energy storage device life;CommentsClose CommentsPermalink





(ii) reduction of petroleum consumption; andCommentsClose CommentsPermalink





(iii) greenhouse gas reduction;CommentsClose CommentsPermalink





(5) nanomaterial technology applied to energy storage device and fuel cell systems; andCommentsClose CommentsPermalink





(6) smart vehicle and grid interconnection devices and software that enable communications between the grid of the future and electric drive transportation technology vehicles.CommentsClose CommentsPermalink





(d) Market Assessment and Electricity Usage Program-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary, in consultation with the Administrator and private industry, shall carry out a program--CommentsClose CommentsPermalink





(A) to inventory and analyze existing electric drive transportation technologies and hybrid technologies and markets;CommentsClose CommentsPermalink





(B) to identify and implement methods of removing barriers for existing and emerging applications of electric drive transportation technologies and hybrid transportation technologies;CommentsClose CommentsPermalink





(C) to work with utilities to develop low-cost, simple methods of--CommentsClose CommentsPermalink





(i) using off-peak electricity; orCommentsClose CommentsPermalink





(ii) managing on-peak electricity use;CommentsClose CommentsPermalink





(D) to develop systems and processes--CommentsClose CommentsPermalink





(i) to enable plug-in hybrid vehicles to enhance the availability of emergency back-up power for consumers; andCommentsClose CommentsPermalink





(ii) to study and demonstrate the potential value to the electric grid to use the energy stored in the on-board storage systems to improve the efficiency and reliability of the grid generation system; andCommentsClose CommentsPermalink





(E) to work with utilities and other interested stakeholders to study and demonstrate the implications of the introduction of plug-in hybrid vehicles and other types of electric transportation on the production of electricity from renewable resources.CommentsClose CommentsPermalink





(2) OFF-PEAK ELECTRICITY USAGE GRANTS- In carrying out the program under paragraph (1), the Secretary shall provide grants to assist eligible public and private electric utilities for the conduct of programs or activities to encourage owners of electric drive transportation technologies--CommentsClose CommentsPermalink





(A) to use off-peak electricity; orCommentsClose CommentsPermalink





(B) to have the load managed by the utility.CommentsClose CommentsPermalink





(e) Plug-in Hybrid Electric Vehicle, Electric Drive Transportation Technology, and Hybrid Vehicle Testing and Certification Program-CommentsClose CommentsPermalink





(1) TESTING PROGRAM-CommentsClose CommentsPermalink





(A) IN GENERAL- To facilitate the introduction of plug-in hybrid electric vehicles, electric drive transportation technologies, and hybrid vehicle technologies into commercial use, the Secretary, in consultation with the Administrator and in collaboration with private industry, shall develop and carry out a program to test the emissions of criteria pollutants, energy use, and the petroleum reduction potential of light-duty, medium-duty, and heavy-duty plug-in hybrid electric vehicles and other forms of electric drive transportation technologies under test conditions and actual driving conditions.CommentsClose CommentsPermalink





(B) TEST PROCEDURES-CommentsClose CommentsPermalink





(i) DEVELOPMENT- In developing test procedures for the program under subparagraph (A), the Secretary shall take into account the results of previous testing activities of the public and private sectors.CommentsClose CommentsPermalink





(ii) CONSIDERATIONS- The test procedures developed for the program under subparagraph (A) shall consider--CommentsClose CommentsPermalink





(I) the vehicle and fuel as a system, not just an engine;CommentsClose CommentsPermalink





(II) nightly off-board charging, as applicable; andCommentsClose CommentsPermalink





(III) different engine-turn on speed control strategies.CommentsClose CommentsPermalink





(C) FIELD OPERATIONS PROGRAM- In conducting tests under the program under subparagraph (A), the Secretary shall use the capabilities of the Field Operations Program and qualified vehicle testing sites of the Department of Energy.CommentsClose CommentsPermalink





(2) CERTIFICATION STANDARDS TASK FORCE-CommentsClose CommentsPermalink





(A) IN GENERAL- Not later than 180 days after the date of enactment of this Act, the Administrator, in cooperation with the Secretary, shall establish a task force to develop minimum certification standards for plug-in hybrid electric vehicles.CommentsClose CommentsPermalink





(B) COMPOSITION- The Task Force shall be comprised of members, to be appointed by the Administrator, that represent--CommentsClose CommentsPermalink





(i) vehicle manufacturers;CommentsClose CommentsPermalink





(ii) environmental organizations;CommentsClose CommentsPermalink





(iii) utilities;CommentsClose CommentsPermalink





(iv) fleet operators;CommentsClose CommentsPermalink





(v) research organizations; andCommentsClose CommentsPermalink





(vi) appropriate Federal agencies, including the Department of Transportation and the Department of Energy.CommentsClose CommentsPermalink





(C) DUTIES- The Task Force shall--CommentsClose CommentsPermalink





(i) identify critical path issues in the establishment of a certification protocol;CommentsClose CommentsPermalink





(ii) identify criteria for the establishment of a plug-in hybrid electric vehicle certification protocol that would be applicable to various plug-in hybrid vehicle technologies, applications, and control strategies;CommentsClose CommentsPermalink





(iii) evaluate test data available from plug-in hybrid electric vehicle test programs and fuel economy analyses;CommentsClose CommentsPermalink





(iv) work with the Administrator to develop guidelines to permit the emissions reductions attributable to the use of plug-in hybrid vehicles to be recognized for purposes of State implementation plans; andCommentsClose CommentsPermalink





(v) recommend a certification protocol for certifying the emissions, fuel economy, and petroleum usage of plug-in hybrid electric vehicles.CommentsClose CommentsPermalink





(D) FINAL CERTIFICATION PROTOCOL-CommentsClose CommentsPermalink





(i) IN GENERAL- Not later than 18 months after the date of enactment of this Act, the Administrator shall--CommentsClose CommentsPermalink





(I) publish in the Federal Register the recommended certification protocol developed under subparagraph (C)(v); andCommentsClose CommentsPermalink





(II) provide an opportunity for public comment with respect to the recommended certification protocol.CommentsClose CommentsPermalink





(ii) PUBLICATION- Not later than 2 years after the date of enactment of this Act, the Administrator shall publish in the Federal Register the final certification protocol for plug-in hybrid electric vehicles.CommentsClose CommentsPermalink





(f) Education Program-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall develop a nationwide electric drive transportation technology program under which the Secretary provides--CommentsClose CommentsPermalink





(A) to secondary schools and high schools, teaching materials; andCommentsClose CommentsPermalink





(B) to institutions of higher education, assistance for programs relating to electric drive system and component engineering.CommentsClose CommentsPermalink





(2) ELECTRIC VEHICLE COMPETITION- The program established under paragraph (1) shall include a plug-in hybrid electric vehicle competition for institutions of higher education, which shall be known as the `Dr. Andrew Frank Plug-In Hybrid Electric Vehicle Competition'.CommentsClose CommentsPermalink





(3) ENGINEERS- In carrying out the program established under paragraph (1), the Secretary shall provide financial assistance to institutions of higher education to create new, or support existing, degree programs to ensure the availability of trained electrical and mechanical engineers with the skills necessary for the advancement of--CommentsClose CommentsPermalink





(A) plug-in hybrid electric vehicles; andCommentsClose CommentsPermalink





(B) other forms of electric drive transportation technology vehicles.CommentsClose CommentsPermalink





(g) Near-Term Electric Transportation Deployment Program-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the Administrator, after consultation with the Secretary and the Secretary of Transportation, shall establish a program under which the Administrator shall provide grants and loans to eligible entities for the conduct of qualified electric transportation projects that would reduce emissions of criteria pollutants, greenhouse gas emissions, and petroleum usage by at least 40 percent as compared to commercially available, non-electric technologies.CommentsClose CommentsPermalink





(2) GRANTS-CommentsClose CommentsPermalink





(A) IN GENERAL- Of the amounts made available for grants under paragraph (1)--CommentsClose CommentsPermalink





(i) 2/3 shall be made available by the Administrator on a competitive basis to qualified electric transportation projects based on the overall cost-effectiveness of the projects in reducing emissions of criteria pollutants, emissions of greenhouse gases, and petroleum usage; andCommentsClose CommentsPermalink





(ii) 1/3 shall be made available by the Administrator to qualified electric transportation projects in the order that the grant applications are received, provided that the projects meet the minimum standard for the reduction of emissions of criteria pollutants, emissions of greenhouse gases, and petroleum usage under paragraph (1).CommentsClose CommentsPermalink





(B) PREFERENCE- In providing grants under this subsection, the Administrator shall give preference to large-scale projects and large -scale aggregators of projects.CommentsClose CommentsPermalink





(3) REVOLVING LOAN PROGRAM-CommentsClose CommentsPermalink





(A) IN GENERAL- The Administrator shall establish a revolving loan program to provide loans to eligible entities for the conduct of qualified electric transportation projects.CommentsClose CommentsPermalink





(B) CRITERIA- The Administrator shall establish criteria for the provision of loans under this paragraph.CommentsClose CommentsPermalink





(C) FUNDING- Of amounts made available to carry out this subsection, the Administrator shall use any amounts not used to provide grants under paragraph (2) to carry out the revolving loan program under this paragraph.CommentsClose CommentsPermalink





(h) Cost-Sharing Requirement- Notwithstanding section 988(c) of the Energy Policy Act of 2005 (42 U.S.C. 16352(c)), the non-Federal share of the cost of carrying out any activities assisted under this section shall be 30 percent.CommentsClose CommentsPermalink





(i) Merit Review- Notwithstanding section 989 of the Energy Policy Act of 2005 (42 U.S.C. 16353)--CommentsClose CommentsPermalink





(1) of the amounts made available to carry out this section under subsection (j)--CommentsClose CommentsPermalink





(A) not more than 30 percent shall be provided to National Laboratories;CommentsClose CommentsPermalink





(B) not more than 10 percent shall be provided, directly or indirectly, to projects for the development or demonstration of fuel cell vehicles or plug-in hybrid fuel cell vehicles; andCommentsClose CommentsPermalink





(C) not more than 5 percent shall be provided, directly or indirectly, to projects for the development or demonstration of electric rail or magnetic levitation trains; andCommentsClose CommentsPermalink





(2) of the amounts made available to carry out subsection (g) under subsection (j)(2), not more than 30 percent shall be provided, directly or indirectly, to ship-to-shore electrification projects.CommentsClose CommentsPermalink





(j) Authorization of Appropriations-CommentsClose CommentsPermalink





(1) IN GENERAL- There is authorized to be appropriated to carry out this section (other than subsection (g)) $110,000,000 for each of fiscal years 2008 through 2013.CommentsClose CommentsPermalink





(2) NEAR-TERM ELECTRIC TRANSPORTATION DEPLOYMENT PROGRAM- There is authorized to be appropriated to carry out subsection (g) $125,000,000 for each of fiscal years 2008 through 2013.CommentsClose CommentsPermalink

SEC. 207. PLUG-IN HYBRID ELECTRIC AND HYDROGEN VEHICLE PRIZES.

Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396) is amended--CommentsClose CommentsPermalink





(1) in subsection (c), by inserting `, including plug-in hybrid and hydrogen vehicle technologies' before the period at the end; andCommentsClose CommentsPermalink





(2) in subsection (e)(2)--CommentsClose CommentsPermalink





(A) by striking `$5,000,000' and inserting `$450,000,000'; andCommentsClose CommentsPermalink





(B) by inserting `, to remain available until expended' before the period at the end.CommentsClose CommentsPermalink

SEC. 208. 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 $60,000,000 for each of fiscal years 2008 through 2013.CommentsClose CommentsPermalink

SEC. 209. HYBRID AND ADVANCED DIESEL VEHICLES.

(a) Hybrid Vehicles- Section 711 of the Energy Policy Act of 2005 (42 U.S.C. 16061) is amended to read as follows: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 electric vehicles and the components of the vehicles).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. 210. 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 35 percent of the qualified investment of an eligible taxpayer for such taxable year.CommentsClose CommentsPermalink





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





`(1) IN GENERAL- The term `qualified investment' means, with respect to any taxable year, the sum of--CommentsClose CommentsPermalink





`(A) the costs paid or incurred by the eligible taxpayer during such taxable year--CommentsClose CommentsPermalink





`(i) to re-equip, expand, or establish any manufacturing facility in the United States of the eligible taxpayer to produce advanced technology motor vehicles or to produce eligible components, andCommentsClose CommentsPermalink





`(ii) for qualified research (as defined in section 41(d)) related to advanced technology motor vehicles and eligible components performed in the United States, andCommentsClose CommentsPermalink





`(B) qualified engineering integration costs performed in the United States.CommentsClose CommentsPermalink





`(2) ATTRIBUTION RULES- For purposes of paragraph (1)(A)(i), in the case of a manufacturing facility of the eligible taxpayer which produces both advanced technology motor vehicles and other motor vehicles, or eligible components and other components, only the amount paid or incurred for the production of advanced technology motor vehicles and eligible components shall be taken into account.CommentsClose CommentsPermalink





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





`(1) IN GENERAL- The term `eligible taxpayer' means--CommentsClose CommentsPermalink





`(A) any motor vehicle manufacturer 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, andCommentsClose CommentsPermalink





`(B) any motor vehicle component parts manufacturer if more than 20 percent of its gross receipts for the taxable year is derived from the manufacture of any component parts of motor vehicles.CommentsClose CommentsPermalink





`(2) MOTOR VEHICLE MANUFACTURER- The term `motor vehicle manufacturer' means any taxpayer who manufacturers motor vehicles.CommentsClose CommentsPermalink





`(3) MOTOR VEHICLE COMPONENT PARTS MANUFACTURER- The term `motor vehicle component parts manufacturer' means any taxpayer who manufactures motor vehicle component parts, but is not a motor vehicle manufacturer.CommentsClose CommentsPermalink





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





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





`(A) any new qualified fuel cell motor vehicle (as defined in section 30B(b)(3));CommentsClose CommentsPermalink





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





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





`(D) any new qualified alternative motor fuel vehicle (as defined in section 30B(e)(4));CommentsClose CommentsPermalink





`(E) any plug-in hybrid electric vehicle; andCommentsClose CommentsPermalink





`(F) any electric vehicle.CommentsClose CommentsPermalink





`(2) ELIGIBLE COMPONENTS- The term `eligible component' means any component inherent to any advanced technology motor vehicle but not inherent to a motor vehicle which is not an advanced technology motor vehicle, including--CommentsClose CommentsPermalink





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





`(i) accumulator or other energy storage device,CommentsClose CommentsPermalink





`(ii) hydraulic pump, orCommentsClose CommentsPermalink





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





`(iv) power control unit, orCommentsClose CommentsPermalink





`(v) power controls,CommentsClose CommentsPermalink





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





`(3) MOTOR VEHICLE- The term `motor vehicle' has the meaning given such term by section 30(c)(2).CommentsClose CommentsPermalink





`(4) PLUG-IN HYBRID ELECTRIC VEHICLE-CommentsClose CommentsPermalink





`(A) IN GENERAL- 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 any combination of--CommentsClose CommentsPermalink





`(i) an electric motor and on-board, rechargeable energy storage system capable of operating the vehicle in intermittent or continuous all-electric mode and which is rechargeable using an off-board source of electricity, andCommentsClose CommentsPermalink





`(ii) an internal combustion engine or heat engine using any combustible fuel.CommentsClose CommentsPermalink





`(B) NONROAD VEHICLE- The term `nonroad vehicle' means a vehicle powered by a nonroad engine, as that term is defined in section 216 of the Clean Air Act (42 U.S.C. 7550).CommentsClose CommentsPermalink





`(5) QUALIFIED ENGINEERING INTEGRATION COSTS- For purposes of subsection (b)(1)(B), the term `qualified engineering integration costs' means, with respect to any advanced technology motor vehicle, costs incurred prior to the market introduction of such motor vehicle for engineering tasks related to--CommentsClose CommentsPermalink





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





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





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





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





`(e) Limitation Based on Amount of Tax-CommentsClose CommentsPermalink





`(1) IN GENERAL- The credit allowed under subsection (a) for any taxable year shall not exceed the sum of--CommentsClose CommentsPermalink





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





`(B) the tax imposed under section 55 for the taxable year.CommentsClose CommentsPermalink





`(2) CARRYOVER OF UNUSED CREDIT AMOUNTS-CommentsClose CommentsPermalink





`(A) IN GENERAL- If the credit allowable under subsection (a) for a taxable year exceeds the limitation under paragraph (1) for such taxable year, such excess shall be allowed--CommentsClose CommentsPermalink





`(i) as a credit carryback to each of the 13 taxable years preceding such year, andCommentsClose CommentsPermalink





`(ii) as a credit carryforward to each of the 20 taxable years following such year.CommentsClose CommentsPermalink





`(B) AMOUNT CARRIED TO EACH YEAR- For purposes of this paragraph, rules similar to the rules of section 39(a)(2) shall apply.CommentsClose CommentsPermalink





`(f) Special Rules-CommentsClose CommentsPermalink





`(1) 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





`(2) INVESTMENTS AND PROPERTY OUTSIDE THE UNITED STATES- No credit shall be allowed under subsection (a) with respect to--CommentsClose CommentsPermalink





`(A) any manufacturing facility which is located outside the United States, andCommentsClose CommentsPermalink





`(B) any engineering integration or research and development conducted outside the United States.CommentsClose CommentsPermalink





`(3) AGGREGATION OF EXPENDITURES; ALLOCATIONS- For purposes of this section, rules similar to the rules of paragraphs (1) and (2) of section 41(f) shall apply.CommentsClose CommentsPermalink





`(4) RECAPTURE- The Secretary shall, by regulation, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any manufacturing facility which ceases to produce advanced technology motor vehicles or eligible components.CommentsClose CommentsPermalink





`(5) PUBLIC STATEMENT-CommentsClose CommentsPermalink





`(A) IN GENERAL- No credit shall be allowed under subsection (a) for any taxable year unless the eligible taxpayer makes publicly available a statement describing the activities of the eligible taxpayer for which the credit is allowed and the public benefits of such activities, including the estimated amount of any reduction in national oil consumption in future years as a result of such activities.CommentsClose CommentsPermalink





`(B) TIME FOR PUBLICATION- The statement required under subparagraph (A) shall be made available not later than 90 days after the end of the taxable year for which the credit under subsection (a) is allowed and shall be in such form as the Secretary shall prescribe.CommentsClose CommentsPermalink





`(6) NO DOUBLE BENEFIT-CommentsClose CommentsPermalink





`(A) COORDINATION WITH OTHER DEDUCTIONS AND CREDITS- Except as provided in subparagraph (B), 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





`(B) RESEARCH AND DEVELOPMENT COSTS-CommentsClose CommentsPermalink





`(i) IN GENERAL- Except as provided in clause (ii), any amount described in subsection (b)(1)(A)(ii) 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





`(ii) COSTS TAKEN INTO ACCOUNT IN DETERMINING BASE PERIOD RESEARCH EXPENSES- Any amounts described in subsection (b)(1)(A)(ii) 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





`(g) 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





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





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 1016(a) of the Internal Revenue Code of 1986, as amended by this Act, is amended by striking `and' at the end of paragraph (37), by striking the period at the end of paragraph (38) and inserting `, and', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(39) to the extent provided in section 30D(f)(1).'.CommentsClose CommentsPermalink





(2) Section 6501(m) of such Code is amended by inserting `30D(g),' 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, 1993.CommentsClose CommentsPermalink

SEC. 211. CONSUMER INCENTIVES TO PURCHASE ADVANCED TECHNOLOGY VEHICLES.

(a) 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





(b) 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





(c) 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. 212. CONSUMER INCENTIVES TO PURCHASE PLUG-IN HYBRID ELECTRIC VEHICLES.

(a) New Qualified Hybrid Motor Vehicle Includes Plug-in Electric Vehicles-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 30B(d)(3)(A) of the Internal Revenue Code of 1986 (defining new qualified hybrid motor vehicle) is amended by striking `and' at the end of clause (vi), by striking the period at the end of clause (vii) and inserting `, and', and by inserting after clause (vii) the following new clause:CommentsClose CommentsPermalink





`(viii) which includes plug-in hybrid electric vehicles for purposes of paragraphs (2)(A) and (2)(B).'.CommentsClose CommentsPermalink





(2) DEFINITION- Section 30B(d)(3) of such Code is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(D) PLUG-IN HYBRID ELECTRIC VEHICLE-CommentsClose CommentsPermalink





`(i) IN GENERAL- 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 any combination of--CommentsClose CommentsPermalink





`(I) an electric motor and on-board, rechargeable energy storage system capable of operating the vehicle in intermittent or continuous all-electric mode and which is rechargeable using an off-board source of electricity, andCommentsClose CommentsPermalink





`(II) an internal combustion engine or heat engine using any combustible fuel.CommentsClose CommentsPermalink





`(ii) NONROAD VEHICLE- The term `nonroad vehicle' means a vehicle powered by a nonroad engine, as that term is defined in section 216 of the Clean Air Act (42 U.S.C. 7550).'CommentsClose CommentsPermalink





(b) Credit Amount for Passenger Automobiles and Light Trucks-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 30B(d)(2)(A) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(A) by striking `clauses (i) and (ii)' and inserting `clauses (i), (ii), and (iii)',CommentsClose CommentsPermalink





(B) by inserting `, except that for purposes of any plug-in hybrid electric vehicle, subsection (c)(2)(A)(ii) shall not include fuel economy increases resulting from off-board sources of electricity' after `such subsection' in clause (i), andCommentsClose CommentsPermalink





(C) by adding at the end the following new clause:CommentsClose CommentsPermalink





`(iii) INCREASE FOR BATTERY-POWERED RANGE FROM OFF-BOARD ELECTRICITY- The amount determined under this clause in 2009 through 2015 as follows:CommentsClose CommentsPermalink





`(I) $800 if such vehicle uses a 4 kWh traction battery.CommentsClose CommentsPermalink





`(II) $1200 if such vehicle uses a 5 kWh traction battery.CommentsClose CommentsPermalink





`(III) $1600 if such vehicle uses a 6 kWh traction battery.CommentsClose CommentsPermalink





`(IV) $2000 if such vehicle uses a 7 kWh traction battery.CommentsClose CommentsPermalink





`(V) $2400 if such vehicle uses a 8 kwh traction battery.CommentsClose CommentsPermalink





`(VI) $2800 if such vehicle uses a 9 kWh traction battery.CommentsClose CommentsPermalink





`(VII) $3000 if such vehicle uses a 10 kWh traction battery.CommentsClose CommentsPermalink





`(VIII) $3200 if such vehicle uses a 11 kWh traction battery.CommentsClose CommentsPermalink





`(IX) $3400 if such vehicle uses a 12 kWh traction battery.CommentsClose CommentsPermalink





`(X) $3800 if such vehicle uses a 13 kWh traction battery.CommentsClose CommentsPermalink





`(XI) $4000 if such vehicle uses a 14 kWh traction battery.CommentsClose CommentsPermalink





`(XII) $4200 if such vehicle uses a 15 kWh traction battery.'.CommentsClose CommentsPermalink





(2) DEFINITION- Section 30B(d)(3) of such Code, as amended by subsection (a)(2), is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(E) KWH TRACTION BATTERY- For purposes of paragraph (2)(A)(iii), the term `kWh traction battery' means the size of an electrochemical storage device as measured by from 100 percent state of charge to 0 percent state of charge.'.CommentsClose CommentsPermalink





(c) Credit Amount for Other Motor Vehicles-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 30B(d)(2)(B)(ii) of the Internal Revenue Code of 1986 is amended by striking `and' at the end of subclause (II), by striking the period at the end of subclause (III) and inserting `, and', and by adding at the end the following new subclause:CommentsClose CommentsPermalink





`(IV) 40 percent for a plug-in hybrid electric vehicle that can use off-board electricity to recharge an energy storage device capable of at least 10 miles of all electric range and a percentage greater than 40 percent if the all electric range is greater than 10 miles, as determined by the Administrator of the Environmental Protection Agency.'.CommentsClose CommentsPermalink





(2) DEFINITION- Section 30B(d)(3) of such Code, as amended by subsection (b)(2), is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(F) ALL ELECTRIC RANGE- For purposes of paragraph (2)(B)--CommentsClose CommentsPermalink





`(i) IN GENERAL- The term `all electric range' means miles traveled in a hybrid electric vehicle capable of using an off-board source of electricity and tested using the Environmental Protection Agency's Federal Urban Driving Schedule or a new driving schedule for plug-in hybrid electric vehicles.CommentsClose CommentsPermalink





`(ii) DRIVING SCHEDULE FOR PLUG-IN HYBRID ELECTRIC VEHICLES-CommentsClose CommentsPermalink





`(I) ESTABLISHMENT- Not later than 18 months after the date of enactment of this subparagraph, the Administrator of the Environmental Protection Agency shall develop a driving schedule for plug-in hybrid electric vehicles based on a test that shall start with a full battery and end when the battery reaches 20 percent state of charge after intermittent use of the battery and electric motor for vehicle propulsion at speeds no greater than 35 miles per hour, and which does not count vehicle miles traveled while the engine is operating.CommentsClose CommentsPermalink





`(II) BONUS CREDITS- Vehicles that can travel in all electric mode during a separate test of higher speed operation shall be entitled to bonus all electric range miles for purposes of the credit provided in this section on a schedule to be established by rule by the Administrator.'.CommentsClose CommentsPermalink





(d) Duration of Tax Credit- Section 30B(i)(3) of the Internal Revenue Code of 1986, as redesignated and amended by this Act, is amended by inserting `(December 31, 2015, in the case of a new qualified hybrid motor vehicle which is a plug-in hybrid electric vehicle)' after `December 31, 2010'.CommentsClose CommentsPermalink





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

SEC. 213. 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 2016 each Federal agency achieve at least a 30 percent reduction in petroleum consumption, as calculated from the baseline established by the Secretary for fiscal year 2005.CommentsClose CommentsPermalink





(2) REQUIREMENT- Not later than fiscal year 2016, 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 hybrid motor vehicles (including plug-in hybrid motor vehicles) or new advanced lean burn technology motor vehicles (as defined in section 30B(c)(3) of the Internal Revenue Code of 1986).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 striking `The Secretary' and inserting the following:CommentsClose CommentsPermalink





`(1) ALLOCATION- The Secretary'; andCommentsClose CommentsPermalink





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





`(2) ELECTRIC VEHICLES- Not later than January 31, 2009, 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 2013.CommentsClose CommentsPermalink

SEC. 214. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL PURCHASING REQUIREMENT.

Section 306 of the Energy Policy Act of 1992 (42 U.S.C. 13215) is amended to read as follows:CommentsClose CommentsPermalink

`SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL PURCHASING REQUIREMENT.

`(a) Ethanol-Blended Gasoline- The head of each Federal agency shall ensure that, in areas in which ethanol-blended gasoline is reasonably available at a generally competitive price, the Federal agency purchases ethanol-blended gasoline containing at least 10 percent ethanol, rather than gasoline that is not ethanol-blended, for use in vehicles used by the agency that use gasoline.CommentsClose CommentsPermalink





`(b) Biodiesel-CommentsClose CommentsPermalink





`(1) DEFINITION OF BIODIESEL- In this subsection, the term `biodiesel' has the meaning given the term in section 312(f).CommentsClose CommentsPermalink





`(2) REQUIREMENT- The head of each Federal agency shall ensure that the Federal agency purchases, for use in fueling fleet vehicles that use diesel fuel used by the Federal agency at the location at which fleet vehicles of the Federal agency are centrally fueled, in areas in which the biodiesel-blended diesel fuel described in subparagraphs (A) and (B) is available at a generally competitive price--CommentsClose CommentsPermalink





`(A) as of the date that is 5 years after the date of enactment of this paragraph, biodiesel-blended diesel fuel that contains at least 20 percent biodiesel, rather than diesel fuel that is not biodiesel-blended; andCommentsClose CommentsPermalink





`(B) as of the date that is 10 years after the date of enactment of this paragraph, biodiesel-blended diesel fuel that contains at least 80 percent biodiesel, rather than diesel fuel that is not biodiesel-blended.CommentsClose CommentsPermalink





`(3) REQUIREMENT OF FEDERAL LAW- This subsection shall not be considered a requirement of Federal law for the purposes of section 312.CommentsClose CommentsPermalink





`(c) Exemption- This section does not apply to fuel used in vehicles excluded from the definition of `fleet' by subparagraphs (A) through (H) of section 301(9).'.CommentsClose CommentsPermalink

SEC. 215. USE OF THE EXISTING FLEXIBLE FUEL VEHICLE FLEET OF THE FEDERAL GOVERNMENT.

(a) Use of Alternative Fuels by Flexible Fuel Vehicles- Section 400AA(a)(3) of the Energy Policy and Conservation Act (42 U.S.C. 6374(a)(3)) is amended by striking subparagraph (E) and inserting the following:CommentsClose CommentsPermalink





`(E) USE OF ALTERNATIVE FUELS BY FLEXIBLE FUEL VEHICLES-CommentsClose CommentsPermalink





`(i) IN GENERAL- Flexible fuel vehicles acquired pursuant to this section shall be operated on alternative fuels unless the Secretary determines that an agency qualifies for a waiver of that requirement for vehicles operated by the agency in a particular geographic area in which--CommentsClose CommentsPermalink





`(I) the alternative fuel otherwise required to be used in the vehicle is not reasonably available to retail purchasers of the fuel, as certified to the Secretary by the head of the agency; orCommentsClose CommentsPermalink





`(II) the cost of the alternative fuel otherwise required to be used in the vehicle is unreasonably more expensive compared to gasoline, as certified to the Secretary by the head of the agency.CommentsClose CommentsPermalink





`(ii) COMPLIANCE- The Secretary shall monitor compliance with this subparagraph by all agency fleets and shall submit annually to Congress a report that--CommentsClose CommentsPermalink





`(I) describes the extent to which the requirements of this subparagraph are being achieved; andCommentsClose CommentsPermalink





`(II) includes information on annual reductions achieved from the use of petroleum-based fuels and the problems, if any, encountered in acquiring alternative fuels.'.CommentsClose CommentsPermalink





(b) Alternative Compliance and Flexibility- Section 514 of the Energy Policy Act of 1992 (42 U.S.C. 13263a) is amended to read as follows:CommentsClose CommentsPermalink