Alternative Fuel Vehicle Development Act

Summary: Alternative Fuel Vehicle Development Act - Creates incentives for the manufacture of dual-fueled automobiles that use alternative fuels other than methanol, denatured ethanol, and other alcohols (non-alcohol, dual-fueled automobiles). Removes the cap on credits under the Corporate Average Fuel Economy (CAFE) program for non-alcohol, dual-fueled automobiles. (The cap on CAFE credits limits the total increase of a manufacturer's average fuel economy attributable to dual-fueled automobiles.) Reduces the minimum driving range for non-alcohol, dual-fueled automobiles. Disallows any petition to lower the driving range below 150 miles for those automobiles.  Revises the formula the Administrator of the Environmental Protection Agency (EPA) uses to calculate fuel economy for dual-fueled automobiles operating with gaseous fuel, such as natural gas or hydrogen. Requires the EPA to apply utility factors based on the driving range for such automobiles. Allows the EPA to use a different methodology to calculate the fuel economy for dual-fueled, electric automobiles.  Makes permanent the state's authority to exempt alternative fuel vehicles from high occupancy vehicle (HOV) lane restrictions. Makes eligible only those alternative fuel vehicles operating solely on alternative fuel, including electric vehicles. Requires the Secretary of Energy (DOE) to report on incentives and financing tools to develop public compressed natural gas fueling stations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Alternative Fuel Vehicle Development 
Act''.

SEC. 2. ALTERNATIVE FUEL VEHICLES.

    (a) Maximum Fuel Economy Increase for Alternative Fuel 
Automobiles.--Section 32906(a) of title 49, United States Code, is 
amended by striking ``(except an electric automobile)'' and inserting 
``(except an electric automobile or, beginning with model year 2016, an 
alternative fueled automobile that does not use a fuel described in 
subparagraph (A), (B), (C), or (D) of section 32901(a)(1))''.
    (b) Minimum Driving Ranges for Dual Fueled Passenger Automobiles.--
Section 32901(c)(2) of title 49, United States Code, is amended--
            (1) in subparagraph (B), by inserting ``, except that 
        beginning with model year 2016, alternative fueled automobiles 
        that do not use a fuel described in subparagraph (A), (B), (C), 
        or (D) of subsection (a)(1) shall have a minimum driving range 
        of 150 miles'' after ``at least 200 miles''; and
            (2) in subparagraph (C), by adding at the end the 
        following: ``Beginning with model year 2016, if the Secretary 
        prescribes a minimum driving range of 150 miles for alternative 
        fueled automobiles that do not use a fuel described in 
        subparagraph (A), (B), (C), or (D) of subsection (a)(1), 
        subparagraph (A) shall not apply to dual fueled automobiles 
        (except electric automobiles).''.
    (c) Manufacturing Provision for Alternative Fuel Automobiles.--
Section 32905(d) of title 49, United States Code, is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by striking ``For any model'' and inserting the 
        following:
            ``(1) Model years 1993 through 2015.--For any model'';
            (3) in paragraph (1), as redesignated, by striking ``2019'' 
        and inserting ``2015''; and
            (4) by adding at the end the following:
            ``(2) Model years after 2015.--For any model of gaseous 
        fuel dual fueled automobile manufactured by a manufacturer 
        after model year 2015, the Administrator shall calculate fuel 
        economy as a weighted harmonic average of the fuel economy on 
        gaseous fuel as measured under subsection (c) and the fuel 
        economy on gasoline or diesel fuel as measured under section 
        32904(c). The Administrator shall apply the utility factors set 
        forth in the table under section 600.510-12(c)(2)(vii)(A) of 
        title 40, Code of Federal Regulations.
            ``(3) Model years after 2016.--Beginning with model year 
        2017, the manufacturer may elect to utilize the utility factors 
        set forth under subsection (e)(1) for the purposes of 
        calculating fuel economy under paragraph (2).''.
    (d) Electric Dual Fueled Automobiles.--Section 32905 of title 49, 
United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) Electric Dual Fueled Automobiles.--
            ``(1) In general.--At the request of the manufacturer, the 
        Administrator may measure the fuel economy for any model of 
        dual fueled automobile manufactured after model year 2015 that 
        is capable of operating on electricity in addition to gasoline 
        or diesel fuel, obtains its electricity from a source external 
        to the vehicle, and meets the minimum driving range 
        requirements established by the Secretary for dual fueled 
        electric automobiles, by dividing 1.0 by the sum of--
                    ``(A) the percentage utilization of the model on 
                gasoline or diesel fuel, as determined by a formula 
                based on the model's alternative fuel range, divided by 
                the fuel economy measured under section 32904(c); and
                    ``(B) the percentage utilization of the model on 
                electricity, as determined by a formula based on the 
                model's alternative fuel range, divided by the fuel 
                economy measured under section 32904(a)(2).
            ``(2) Alternative utilization.--The Administrator may adapt 
        the utility factor established under paragraph (1) for 
        alternative fueled automobiles that do not use a fuel described 
        in subparagraph (A), (B), (C), or (D) of section 32901(a)(1).
            ``(3) Alternative calculation.--If the manufacturer does 
        not request that the Administrator calculate the manufacturing 
        incentive for its electric dual fueled automobiles in 
        accordance with paragraph (1), the Administrator shall 
        calculate such incentive for such automobiles manufactured by 
        such manufacturer after model year 2015 in accordance with 
        subsection (b).''.
    (e) Conforming Amendment.--Section 32906(b) of title 49, United 
States Code, is amended by striking ``section 32905(e)'' and inserting 
``section 32905(f)''.

SEC. 3. HIGH OCCUPANCY VEHICLE FACILITIES.

    Section 166 of title 23, United States Code, is amended--
            (1) in subparagraph (b)(5), by striking subparagraph (A) 
        and inserting the following:
                    ``(A) Inherently low-emission vehicles.--If a State 
                agency establishes procedures for enforcing the 
                restrictions on the use of a HOV facility by vehicles 
                listed in clauses (i) and (ii), the State agency may 
                allow the use of the HOV facility by--
                            ``(i) alternative fuel vehicles; and
                            ``(ii) new qualified plug-in electric drive 
                        motor vehicles (as defined in section 30D(d)(1) 
                        of the Internal Revenue Code of 1986).''; and
            (2) in subparagraph (f)(1), by inserting ``solely'' before 
        ``operating''.

SEC. 4. STUDY.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Energy, after consultation with the Secretary of 
Transportation, shall submit a report to Congress that--
            (1) describes options to incentivize the development of 
        public compressed natural gas fueling stations; and
            (2) analyzes a variety of possible financing tools, which 
        could include--
                    (A) Federal grants and credit assistance;
                    (B) public-private partnerships; and
                    (C) membership-based cooperatives.