# Energy Independence and Security Act of 2007/Title I/Subtitle A
## Subtitle A—Increased Corporate Average Fuel Economy Standards
### SEC. 101. SHORT TITLE.

    This subtitle may be cited as the ``Ten-in-Ten Fuel Economy Act´´.

### SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND CERTAIN OTHER VEHICLES.

    (a) Increased Standards—
       Section 32902 of title 49, United States Code, is amended—
       (1) in subsection (a)—
          (A) by striking `Non-Passenger Automobiles- ' and inserting `Prescription of Standards by Regulation- ';
          (B) by striking `(except passenger automobiles)' in subsection (a); and
          (C) by striking the last sentence;
       (2) by striking subsection (b) and inserting the following:
             `(b) Standards for Automobiles and Certain Other Vehicles-
                `(1) IN GENERAL- The Secretary of Transportation, after consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall prescribe separate average fuel economy standards for—
                   `(A) passenger automobiles manufactured by manufacturers in each model year beginning with model year 2011 in accordance with this subsection;
                   `(B) non-passenger automobiles manufactured by manufacturers in each model year beginning with model year 2011 in accordance with this subsection; and
                   `(C) work trucks and commercial medium-duty or heavy-duty on-highway vehicles in accordance with subsection (k).
                `(2) FUEL ECONOMY STANDARDS FOR AUTOMOBILES-
                   `(A) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2011 THROUGH 2020- The Secretary shall prescribe a separate average fuel economy standard for passenger automobiles and a separate average fuel economy standard for non-passenger automobiles for each model year beginning with model year 2011 to achieve a combined fuel economy average for model year 2020 of at least 35 miles per gallon for the total fleet of passenger and non-passenger automobiles manufactured for sale in the United States for that model year.
                   `(B) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2021 THROUGH 2030- For model years 2021 through 2030, the average fuel economy required to be attained by each fleet of passenger and non-passenger automobiles manufactured for sale in the United States shall be the maximum feasible average fuel economy standard for each fleet for that model year.
                   `(C) PROGRESS TOWARD STANDARD REQUIRED- In prescribing average fuel economy standards under subparagraph (A), the Secretary shall prescribe annual fuel economy standard increases that increase the applicable average fuel economy standard ratably beginning with model year 2011 and ending with model year 2020.
                `(3) AUTHORITY OF THE SECRETARY- The Secretary shall—
                   `(A) prescribe by regulation separate average fuel economy standards for passenger and non-passenger automobiles based on 1 or more vehicle attributes related to fuel economy and express each standard in the form of a mathematical function; and
                   `(B) issue regulations under this title prescribing average fuel economy standards for at least 1, but not more than 5, model years.
                `(4) MINIMUM STANDARD- In addition to any standard prescribed pursuant to paragraph (3), each manufacturer shall also meet the minimum standard for domestically manufactured passenger automobiles, which shall be the greater of—
                   `(A) 27.5 miles per gallon; or
                   `(B) 92 percent of the average fuel economy projected by the Secretary for the combined domestic and non-domestic passenger automobile fleets manufactured for sale in the United States by all manufacturers in the model year, which projection shall be published in the Federal Register when the standard for that model year is promulgated in accordance with this section.'; and
       (3) in subsection (c)—
          (A) by striking `(1) Subject to paragraph (2) of this subsection, the' and inserting `The'; and
          (B) by striking paragraph (2).
    (b) Fuel Economy Standard for Commercial Medium-Duty and Heavy-Duty On-Highway Vehicles and Work Trucks—
       Section 32902 of title 49, United States Code, is amended by adding at the end the following:
             `(k) Commercial Medium- and Heavy-Duty On-Highway Vehicles and Work Trucks-
                `(1) STUDY- Not later than 1 year after the National Academy of Sciences publishes the results of its study under section 108 of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall examine the fuel efficiency of commercial medium- and heavy-duty on-highway vehicles and work trucks and determine—
                   `(A) the appropriate test procedures and methodologies for measuring the fuel efficiency of such vehicles and work trucks;
                   `(B) the appropriate metric for measuring and expressing commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency performance, taking into consideration, among other things, the work performed by such on-highway vehicles and work trucks and types of operations in which they are used;
                   `(C) the range of factors, including, without limitation, design, functionality, use, duty cycle, infrastructure, and total overall energy consumption and operating costs that affect commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency; and
                   `(D) such other factors and conditions that could have an impact on a program to improve commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency.
                `(2) RULEMAKING- Not later than 24 months after completion of the study required under paragraph (1), the Secretary, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, by regulation, shall determine in a rulemaking proceeding how to implement a commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency improvement program designed to achieve the maximum feasible improvement, and shall adopt and implement appropriate test methods, measurement metrics, fuel economy standards, and compliance and enforcement protocols that are appropriate, cost-effective, and technologically feasible for commercial medium- and heavy-duty on-highway vehicles and work trucks. The Secretary may prescribe separate standards for different classes of vehicles under this subsection.
                `(3) LEAD-TIME; REGULATORY STABILITY- The commercial medium- and heavy-duty on-highway vehicle and work truck fuel economy standard adopted pursuant to this subsection shall provide not less than—
                   `(A) 4 full model years of regulatory lead-time; and
                   `(B) 3 full model years of regulatory stability.'.

### SEC. 103. DEFINITIONS.

    (a) In General—
       Section 32901(a) of title 49, United States Code, is amended—
       (1) by striking paragraph (3) and inserting the following:
                `(3) except as provided in section 32908 of this title, `automobile' means a 4-wheeled vehicle that is propelled by fuel, or by alternative fuel, manufactured primarily for use on public streets, roads, and highways and rated at less than 10,000 pounds gross vehicle weight, except—
                   `(A) a vehicle operated only on a rail line;
                   `(B) a vehicle manufactured in different stages by 2 or more manufacturers, if no intermediate or final-stage manufacturer of that vehicle manufactures more than 10,000 multi-stage vehicles per year; or
                   `(C) a work truck.';
       (2) by redesignating paragraphs (7) through (16) as paragraphs (8) through (17), respectively;
       (3) by inserting after paragraph (6) the following:
                `(7) `commercial medium- and heavy-duty on-highway vehicle' means an on-highway vehicle with a gross vehicle weight rating of 10,000 pounds or more.';
       (4) in paragraph (9)(A), as redesignated, by inserting `or a mixture of biodiesel and diesel fuel meeting the standard established by the American Society for Testing and Materials or under section 211(u) of the Clean Air Act (42 U.S.C. 7545(u)) for fuel containing 20 percent biodiesel (commonly known as `B20')' after `alternative fuel';
       (5) by redesignating paragraph (17), as redesignated, as paragraph (18);
       (6) by inserting after paragraph (16), as redesignated, the following:
                `(17) `non-passenger automobile' means an automobile that is not a passenger automobile or a work truck.'; and
       (7) by adding at the end the following:
                `(19) `work truck' means a vehicle that—
                   `(A) is rated at between 8,500 and 10,000 pounds gross vehicle weight; and
                   `(B) is not a medium-duty passenger vehicle (as defined in section 86.1803-01 of title 40, Code of Federal Regulations, as in effect on the date of the enactment of the Ten-in-Ten Fuel Economy Act).'.

### SEC. 104. CREDIT TRADING PROGRAM.

    (a) In General—
       Section 32903 of title 49, United States Code, is amended—
       (1) by striking `section 32902(b)-(d) of this title' each place it appears and inserting `subsections (a) through (d) of section 32902';
       (2) in subsection (a)(2)—
          (A) by striking `3 consecutive model years' and inserting `5 consecutive model years';
          (B) by striking `clause (1) of this subsection,' and inserting `paragraph (1)';
       (3) by redesignating subsection (f) as subsection (h); and
       (4) by inserting after subsection (e) the following:
             `(f) Credit Trading Among Manufacturers-
                `(1) IN GENERAL- The Secretary of Transportation may establish, by regulation, a fuel economy credit trading program to allow manufacturers whose automobiles exceed the average fuel economy standards prescribed under section 32902 to earn credits to be sold to manufacturers whose automobiles fail to achieve the prescribed standards such that the total oil savings associated with manufacturers that exceed the prescribed standards are preserved when trading credits to manufacturers that fail to achieve the prescribed standards.
                `(2) LIMITATION- The trading of credits by a manufacturer to the category of passenger automobiles manufactured domestically is limited to the extent that the fuel economy level of such automobiles shall comply with the requirements of section 32902(b)(4), without regard to any trading of credits from other manufacturers.
             `(g) Credit Transferring Within a Manufacturer's Fleet-
                `(1) IN GENERAL- The Secretary of Transportation shall establish by regulation a fuel economy credit transferring program to allow any manufacturer whose automobiles exceed any of the average fuel economy standards prescribed under section 32902 to transfer the credits earned under this section and to apply such credits within that manufacturer's fleet to a compliance category of automobiles that fails to achieve the prescribed standards.
                `(2) YEARS FOR WHICH USED- Credits transferred under this subsection are available to be used in the same model years that the manufacturer could have applied such credits under subsections (a), (b), (d), and (e), as well as for the model year in which the manufacturer earned such credits.
                `(3) MAXIMUM INCREASE- The maximum increase in any compliance category attributable to transferred credits is—
                   `(A) for model years 2011 through 2013, 1.0 mile per gallon;
                   `(B) for model years 2014 through 2017, 1.5 miles per gallon; and
                   `(C) for model year 2018 and subsequent model years, 2.0 miles per gallon.
                `(4) LIMITATION- The transfer of credits by a manufacturer to the category of passenger automobiles manufactured domestically is limited to the extent that the fuel economy level of such automobiles shall comply with the requirements under section 32904(b)(4), without regard to any transfer of credits from other categories of automobiles described in paragraph (6)(B).
                `(5) YEARS AVAILABLE- A credit may be transferred under this subsection only if it is earned after model year 2010.
                `(6) DEFINITIONS- In this subsection:
                   `(A) FLEET- The term `fleet' means all automobiles manufactured by a manufacturer in a particular model year.
                   `(B) COMPLIANCE CATEGORY OF AUTOMOBILES- The term `compliance category of automobiles' means any of the following 3 categories of automobiles for which compliance is separately calculated under this chapter:
                      `(i) Passenger automobiles manufactured domestically.
                      `(ii) Passenger automobiles not manufactured domestically.
                      `(iii) Non-passenger automobiles.'.
    (b) Conforming Amendments-
       (1) LIMITATIONS—
          Section 32902(h) of title 49, United States Code, is amended—
          (A) in paragraph (1), by striking `and' at the end;
          (B) in paragraph (2), by striking the period at the end and inserting `; and'; and
          (C) by adding at the end the following:
                `(3) may not consider, when prescribing a fuel economy standard, the trading, transferring, or availability of credits under section 32903.'.
       (2) SEPARATE CALCULATIONS—
          Section 32904(b)(1)(B) is amended by striking `chapter.' and inserting `chapter, except for the purposes of section 32903.'.

### SEC. 105. CONSUMER INFORMATION.

Section 32908 of title 49, United States Code, is amended by adding at the end the following:
             `(g) Consumer Information-
                `(1) PROGRAM- The Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and implement by rule a program to require manufacturers—
                   `(A) to label new automobiles sold in the United States with—
                      `(i) information reflecting an automobile's performance on the basis of criteria that the Administrator shall develop, not later than 18 months after the date of the enactment of the Ten-in-Ten Fuel Economy Act, to reflect fuel economy and greenhouse gas and other emissions over the useful life of the automobile;
                      `(ii) a rating system that would make it easy for consumers to compare the fuel economy and greenhouse gas and other emissions of automobiles at the point of purchase, including a designation of automobiles—
                         `(I) with the lowest greenhouse gas emissions over the useful life of the vehicles; and
                         `(II) the highest fuel economy; and
                      `(iii) a permanent and prominent display that an automobile is capable of operating on an alternative fuel; and
                   `(B) to include in the owner's manual for vehicles capable of operating on alternative fuels information that describes that capability and the benefits of using alternative fuels, including the renewable nature and environmental benefits of using alternative fuels.
                `(2) CONSUMER EDUCATION-
                   `(A) IN GENERAL- The Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and implement by rule a consumer education program to improve consumer understanding of automobile performance described in paragraph (1)(A)(i) and to inform consumers of the benefits of using alternative fuel in automobiles and the location of stations with alternative fuel capacity.
                   `(B) FUEL SAVINGS EDUCATION CAMPAIGN- The Secretary of Transportation shall establish a consumer education campaign on the fuel savings that would be recognized from the purchase of vehicles equipped with thermal management technologies, including energy efficient air conditioning systems and glass.
                `(3) FUEL TANK LABELS FOR ALTERNATIVE FUEL AUTOMOBILES- The Secretary of Transportation shall by rule require a label to be attached to the fuel compartment of vehicles capable of operating on alternative fuels, with the form of alternative fuel stated on the label. A label attached in compliance with the requirements of section 32905(h) is deemed to meet the requirements of this paragraph.
                `(4) RULEMAKING DEADLINE- The Secretary of Transportation shall issue a final rule under this subsection not later than 42 months after the date of the enactment of the Ten-in-Ten Fuel Economy Act.'.

### SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS.

Nothing in this subtitle, or the amendments made by this subtitle, shall be construed to affect the application of section 32902 of title 49, United States Code, to passenger automobiles or non-passenger automobiles manufactured before model year 2011.

### SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES.

    (a) In General—
       As soon as practicable after the date of enactment of this Act, the Secretary of Transportation shall execute an agreement with the National Academy of Sciences to develop a report evaluating vehicle fuel economy standards, including—
       (1) an assessment of automotive technologies and costs to reflect developments since the Academy's 2002 report evaluating the corporate average fuel economy standards was conducted;
       (2) an analysis of existing and potential technologies that may be used practically to improve automobile and medium-duty and heavy-duty truck fuel economy;
       (3) an analysis of how such technologies may be practically integrated into the automotive and medium-duty and heavy-duty truck manufacturing process; and
       (4) an assessment of how such technologies may be used to meet the new fuel economy standards under chapter 329 of title 49, United States Code, as amended by this subtitle.
    (b) Report—
       The Academy shall submit the report to the Secretary, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Energy and Commerce of the House of Representatives, with its findings and recommendations not later than 5 years after the date on which the Secretary executes the agreement with the Academy.
    (c) Quinquennial Updates—
       After submitting the initial report, the Academy shall update the report at 5 year intervals thereafter through 2025.

### SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY AND HEAVY-DUTY TRUCK FUEL ECONOMY.

    (a) In General—
       As soon as practicable after the date of enactment of this Act, the Secretary of Transportation shall execute an agreement with the National Academy of Sciences to develop a report evaluating medium-duty and heavy-duty truck fuel economy standards, including—
       (1) an assessment of technologies and costs to evaluate fuel economy for medium-duty and heavy-duty trucks;
       (2) an analysis of existing and potential technologies that may be used practically to improve medium-duty and heavy-duty truck fuel economy;
       (3) an analysis of how such technologies may be practically integrated into the medium-duty and heavy-duty truck manufacturing process;
       (4) an assessment of how such technologies may be used to meet fuel economy standards to be prescribed under section 32902(k) of title 49, United States Code, as amended by this subtitle; and
       (5) associated costs and other impacts on the operation of medium-duty and heavy-duty trucks, including congestion.
    (b) Report—
       The Academy shall submit the report to the Secretary, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Energy and Commerce of the House of Representatives, with its findings and recommendations not later than 1 year after the date on which the Secretary executes the agreement with the Academy.

### SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.

    (a) In General—
       Section 32906 of title 49, United States Code, is amended to read as follows:
          `Sec. 32906. Maximum fuel economy increase for alternative fuel automobiles
             `(a) In General- For each of model years 1993 through 2019 for each category of automobile (except an electric automobile), the maximum increase in average fuel economy for a manufacturer attributable to dual fueled automobiles is—
                `(1) 1.2 miles a gallon for each of model years 1993 through 2014;
                `(2) 1.0 miles per gallon for model year 2015;
                `(3) 0.8 miles per gallon for model year 2016;
                `(4) 0.6 miles per gallon for model year 2017;
                `(5) 0.4 miles per gallon for model year 2018;
                `(6) 0.2 miles per gallon for model year 2019; and
                `(7) 0 miles per gallon for model years after 2019.
             `(b) Calculation- In applying subsection (a), the Administrator of the Environmental Protection Agency shall determine the increase in a manufacturer's average fuel economy attributable to dual fueled automobiles by subtracting from the manufacturer's average fuel economy calculated under section 32905(e) the number equal to what the manufacturer's average fuel economy would be if it were calculated by the formula under section 32904(a)(1) by including as the denominator for each model of dual fueled automobiles the fuel economy when the automobiles are operated on gasoline or diesel fuel.'.
    (b) Conforming Amendments—
       Section 32905 of title 49, United States Code, is amended—
       (1) in subsection (b), by striking `1993-2010,' and inserting `1993 through 2019,';
       (2) in subsection (d), by striking `1993-2010,' and inserting `1993 through 2019,';
       (3) by striking subsections (f) and (g); and
       (4) by redesignating subsection (h) as subsection (f).
    (c) B20 Biodiesel Flexible Fuel Credit—
       Section 32905(b)(2) of title 49, United States Code, is amended to read as follows:
                `(2) .5 divided by the fuel economy—
                   `(A) measured under subsection (a) when operating the model on alternative fuel; or
                   `(B) measured based on the fuel content of B20 when operating the model on B20, which is deemed to contain 0.15 gallon of fuel.'.

### SEC. 110. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING PROCEDURES.

Beginning in December 2009, and not less often than every 5 years thereafter, the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Transportation, shall—
          (1) reevaluate the fuel economy labeling procedures described in the final rule published in the Federal Register on December 27, 2006 (71 Fed. Reg. 77,872; 40 CFR parts 86 and 600) to determine whether changes in the factors used to establish the labeling procedures warrant a revision of that process; and
          (2) submit a report to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives that describes the results of the reevaluation process.

### SEC. 111. CONSUMER TIRE INFORMATION.

    (a) In General- Chapter 323 of title 49, United States Code, is amended by inserting after section 32304 the following:
          `Sec. 32304A. Consumer tire information
             `(a) Rulemaking-
                `(1) IN GENERAL- Not later than 24 months after the date of enactment of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation shall, after notice and opportunity for comment, promulgate rules establishing a national tire fuel efficiency consumer information program for replacement tires designed for use on motor vehicles to educate consumers about the effect of tires on automobile fuel efficiency, safety, and durability.
                `(2) ITEMS INCLUDED IN RULE- The rulemaking shall include—
                   `(A) a national tire fuel efficiency rating system for motor vehicle replacement tires to assist consumers in making more educated tire purchasing decisions;
                   `(B) requirements for providing information to consumers, including information at the point of sale and other potential information dissemination methods, including the Internet;
                   `(C) specifications for test methods for manufacturers to use in assessing and rating tires to avoid variation among test equipment and manufacturers; and
                   `(D) a national tire maintenance consumer education program including, information on tire inflation pressure, alignment, rotation, and tread wear to maximize fuel efficiency, safety, and durability of replacement tires.
                `(3) APPLICABILITY- This section shall apply only to replacement tires covered under section 575.104(c) of title 49, Code of Federal Regulations, in effect on the date of the enactment of the Ten-in-Ten Fuel Economy Act.
             `(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.
             `(c) Report to Congress- The Secretary shall conduct periodic assessments of the rules promulgated under this section to determine the utility of such rules to consumers, the level of cooperation by industry, and the contribution to national goals pertaining to energy consumption. The Secretary shall transmit periodic reports detailing the findings of such assessments to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce.
             `(d) Tire Marking- The Secretary shall not require permanent labeling of any kind on a tire for the purpose of tire fuel efficiency information.
             `(e) Application With State and Local Laws and Regulations- Nothing in this section prohibits a State or political subdivision thereof from enforcing a law or regulation on tire fuel efficiency consumer information that was in effect on January 1, 2006. After a requirement promulgated under this section is in effect, a State or political subdivision thereof may adopt or enforce a law or regulation on tire fuel efficiency consumer information enacted or promulgated after January 1, 2006, if the requirements of that law or regulation are identical to the requirement promulgated under this section. Nothing in this section shall be construed to preempt a State or political subdivision thereof from regulating the fuel efficiency of tires (including establishing testing methods for determining compliance with such standards) not otherwise preempted under this chapter.'.
    (b) Enforcement—
       Section 32308 of title 49, United States Code, is amended—
       (1) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following:
             `(c) Section 32304A- Any person who fails to comply with the national tire fuel efficiency information program under section 32304A is liable to the United States Government for a civil penalty of not more than $50,000 for each violation.'.
    (c) Conforming Amendment—
       The chapter analysis for chapter 323 of title 49, United States Code, is amended by inserting after the item relating to section 32304 the following:
          `32304A. Consumer tire information'.

### SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.

Section 32912 of title 49, United States Code, is amended by adding at the end the following:
             `(e) Use of Civil Penalties- For fiscal year 2008 and each fiscal year thereafter, from the total amount deposited in the general fund of the Treasury during the preceding fiscal year from fines, penalties, and other funds obtained through enforcement actions conducted pursuant to this section (including funds obtained under consent decrees), the Secretary of the Treasury, subject to the availability of appropriations, shall—
                `(1) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which shall be used by the Secretary to support rulemaking under this chapter; and
                `(2) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which shall be used by the Secretary to carry out a program to make grants to manufacturers for retooling, reequipping, or expanding existing manufacturing facilities in the United States to produce advanced technology vehicles and components.'.

### SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.

    (a) Repeal—
       Paragraphs (6), (7), and (8) of section 32904(b) of title 49, United States Code, are repealed.
    (b) Effect of Repeal on Existing Exemptions—
       Any exemption granted under section 32904(b)(6) of title 49, United States Code, prior to the date of the enactment of this Act shall remain in effect subject to its terms through model year 2013.
    (c) Accrual and Use of Credits—
       Any manufacturer holding an exemption under section 32904(b)(6) of title 49, United States Code, prior to the date of the enactment of this Act may accrue and use credits under sections 32903 and 32905 of such title beginning with model year 2011.