# Energy Independence and Security Act of 2007/Title I/Subtitle B
## Subtitle B—Improved Vehicle Technology
### SEC. 131. TRANSPORTATION ELECTRIFICATION.

    (a) Definitions—
       In this section:
       (1) ADMINISTRATOR—
          The term `Administrator' means the Administrator of the Environmental Protection Agency.
       (2) BATTERY—
          The term `battery' means an electrochemical energy storage system powered directly by electrical current.
       (3) ELECTRIC TRANSPORTATION TECHNOLOGY—
          The term `electric transportation technology' means—
          (A) technology used in vehicles that use an electric motor for all or part of the motive power of the vehicles, including battery electric, hybrid electric, plug-in hybrid electric, fuel cell, and plug-in fuel cell vehicles, or rail transportation; or
          (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—
             (i) corded electric equipment linked to transportation or mobile sources of air pollution; and
             (ii) electrification technologies at airports, ports, truck stops, and material-handling facilities.
       (4) NONROAD VEHICLE—
          The term `nonroad vehicle' means a vehicle—
          (A) powered—
             (i) by a nonroad engine, as that term is defined in section 216 of the Clean Air Act (42 U.S.C. 7550); or
             (ii) fully or partially by an electric motor powered by a fuel cell, a battery, or an off-board source of electricity; and
          (B) that is not a motor vehicle or a vehicle used solely for competition.
       (5) PLUG-IN ELECTRIC DRIVE VEHICLE—
          The term `plug-in electric drive vehicle' means a vehicle that—
          (A) draws motive power from a battery with a capacity of at least 4 kilowatt-hours;
          (B) can be recharged from an external source of electricity for motive power; and
          (C) is a light-, medium-, or heavy-duty motor vehicle or nonroad vehicle (as those terms are defined in section 216 of the Clean Air Act (42 U.S.C. 7550)).
       (6) QUALIFIED ELECTRIC TRANSPORTATION PROJECT—
          The term `qualified electric transportation project' means an electric transportation technology project that would significantly reduce emissions of criteria pollutants, greenhouse gas emissions, and petroleum, including—
          (A) shipside or shoreside electrification for vessels;
          (B) truck-stop electrification;
          (C) electric truck refrigeration units;
          (D) battery-powered auxiliary power units for trucks;
          (E) electric airport ground support equipment;
          (F) electric material and cargo handling equipment;
          (G) electric or dual-mode electric rail;
          (H) any distribution upgrades needed to supply electricity to the project; and
          (I) any ancillary infrastructure, including panel upgrades, battery chargers, in-situ transformers, and trenching.
    (b) Plug-in Electric Drive Vehicle Program-
       (1) ESTABLISHMENT—
          The Secretary shall establish a competitive program to provide grants on a cost-shared basis to State governments, local governments, metropolitan transportation authorities, air pollution control districts, private or nonprofit entities, or combinations of those governments, authorities, districts, and entities, to carry out one or more projects to encourage the use of plug-in electric drive vehicles or other emerging electric vehicle technologies, as determined by the Secretary.
       (2) ADMINISTRATION—
          The Secretary shall, in consultation with the Secretary of Transportation and the Administrator, establish requirements for applications for grants under this section, including reporting of data to be summarized for dissemination to grantees and the public, including safety, vehicle, and component performance, and vehicle and component life cycle costs.
       (3) PRIORITY—
          In making awards under this subsection, the Secretary shall—
          (A) give priority consideration to applications that—
             (i) encourage early widespread use of vehicles described in paragraph (1); and
             (ii) are likely to make a significant contribution to the advancement of the production of the vehicles in the United States; and
          (B) ensure, to the maximum extent practicable, that the program established under this subsection includes a variety of applications, manufacturers, and end-uses.
       (4) REPORTING—
          The Secretary shall require a grant recipient under this subsection to submit to the Secretary, on an annual basis, data relating to safety, vehicle performance, life cycle costs, and emissions of vehicles demonstrated under the grant, including emissions of greenhouse gases.
       (5) COST SHARING—
          Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a grant made under this subsection.
       (6) AUTHORIZATION OF APPROPRIATIONS—
          There is authorized to be appropriated to carry out this subsection $90,000,000 for each of fiscal years 2008 through 2012, of which not less than 1/3 of the total amount appropriated shall be available each fiscal year to make grants to local and municipal governments.
    (c) Near-Term Transportation Sector Electrification Program-
       (1) IN GENERAL—
          Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the Secretary of Transportation and the Administrator, shall establish a program to provide grants for the conduct of qualified electric transportation projects.
       (2) PRIORITY—
          In providing grants under this subsection, the Secretary shall give priority to large-scale projects and large-scale aggregators of projects.
       (3) COST SHARING—
          Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a grant made under this subsection.
       (4) AUTHORIZATION OF APPROPRIATIONS—
          There is authorized to be appropriated to carry out this subsection $95,000,000 for each of fiscal years 2008 through 2013.
    (d) Education Program-
       (1) IN GENERAL—
          The Secretary shall develop a nationwide electric drive transportation technology education program under which the Secretary shall provide—
          (A) teaching materials to secondary schools and high schools; and
          (B) assistance for programs relating to electric drive system and component engineering to institutions of higher education.
       (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 Electric Vehicle Competition'.
       (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—
          (A) plug-in electric drive vehicles; and
          (B) other forms of electric drive transportation technology vehicles.
       (4) AUTHORIZATION OF APPROPRIATIONS—
          There are authorized to be appropriated such sums as may be necessary to carry out this subsection.

### SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

    Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is amended to read as follows:
          "SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
             "(a) Program-
                "(1) IN GENERAL— The Secretary shall establish a program to encourage domestic production and sales of efficient hybrid and advanced diesel vehicles and components of those vehicles.
                "(2) INCLUSIONS— The program shall include grants to automobile manufacturers and suppliers and hybrid component manufacturers to encourage domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and advanced diesel vehicles.
                "(3) PRIORITY— Priority shall be given to the refurbishment or retooling of manufacturing facilities that have recently ceased operation or will cease operation in the near future.
             "(b) Coordination With State and Local Programs— The Secretary may coordinate implementation of this section with State and local programs designed to accomplish similar goals, including the retention and retraining of skilled workers from the manufacturing facilities, including by establishing matching grant arrangements.
             "(c) Authorization of Appropriations— There are authorized to be appropriated to the Secretary such sums as may be necessary to carry out this section.'.

### SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is amended—
       (1) by redesignating subsections (a) through (d) as subsections (b) through (e), respectively;
       (2) by inserting before subsection (b) the following:
             "(a) Definitions— In this section:
                "(1) FUEL CELL ELECTRIC VEHICLE— The term `fuel cell electric vehicle' means an on-road or non-road vehicle that uses a fuel cell (as defined in section 803 of the Spark M. Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152)).
                "(2) HYBRID ELECTRIC VEHICLE— The term `hybrid electric vehicle' means a new qualified hybrid motor vehicle (as defined in section 30B(d)(3) of the Internal Revenue Code of 1986).
                "(3) MEDIUM- OR HEAVY-DUTY ELECTRIC VEHICLE— The term `medium— or heavy-duty electric vehicle' means an electric, hybrid electric, or plug-in hybrid electric vehicle with a gross vehicle weight of more than 8,501 pounds.
                "(4) NEIGHBORHOOD ELECTRIC VEHICLE— The term `neighborhood electric vehicle' means a 4-wheeled on-road or nonroad vehicle that—
                   "(A) has a top attainable speed in 1 mile of more than 20 mph and not more than 25 mph on a paved level surface; and
                   "(B) is propelled by an electric motor and on-board, rechargeable energy storage system that is rechargeable using an off-board source of electricity.
                "(5) PLUG-IN ELECTRIC DRIVE VEHICLE— The term `plug-in electric drive vehicle' means a vehicle that—
                   "(A) draws motive power from a battery with a capacity of at least 4 kilowatt-hours;
                   "(B) can be recharged from an external source of electricity for motive power; and
                   "(C) is a light-, medium-, or heavy duty motor vehicle or nonroad vehicle (as those terms are defined in section 216 of the Clean Air Act (42 U.S.C. 7550)).';
       (3) in subsection (b) (as redesignated by paragraph (1))—
          (A) by striking `The Secretary' and inserting the following:
                "(1) ALLOCATION— The Secretary'; and
          (B) by adding at the end the following:
                "(2) ELECTRIC VEHICLES— Not later than January 31, 2009, the Secretary shall—
                   "(A) allocate credit in an amount to be determined by the Secretary for—
                      "(i) acquisition of—
                         "(I) a hybrid electric vehicle;
                         "(II) a plug-in electric drive vehicle;
                         "(III) a fuel cell electric vehicle;
                         "(IV) a neighborhood electric vehicle; or
                         "(V) a medium- or heavy-duty electric vehicle; and
                      "(ii) investment in qualified alternative fuel infrastructure or nonroad equipment, as determined by the Secretary; and
                   "(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—
                      "(i) a reduction in petroleum demand;
                      "(ii) technological advancement; and
                      "(iii) a reduction in vehicle emissions.';
       (4) in subsection (c) (as redesignated by paragraph (1)), by striking `subsection (a)' and inserting `subsection (b)'; and
       (5) by adding at the end the following:
             "(f) Authorization of Appropriations— There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2013.'.

### SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS MANUFACTURERS.

    (a) In General—
       Section 712(a)(2) of the Energy Policy Act of 2005 (42 U.S.C. 16062(a)(2)) (as amended by section 132) is amended by inserting `and loan guarantees under section 1703' after `grants'.
    (b) Conforming Amendment—
       Section 1703(b) of the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by striking paragraph (8) and inserting the following:
             "(8) Production facilities for the manufacture of fuel efficient vehicles or parts of those vehicles, including electric drive vehicles and advanced diesel vehicles.'.

### SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.

    (a) Establishment of Program—
       The Secretary shall establish a program to provide guarantees of loans by private institutions for the construction of facilities for the manufacture of advanced vehicle batteries and battery systems that are developed and produced in the United States, including advanced lithium ion batteries and hybrid electrical system and component manufacturers and software designers.
    (b) Requirements—
       The Secretary may provide a loan guarantee under subsection (a) to an applicant if—
       (1) without a loan guarantee, credit is not available to the applicant under reasonable terms or conditions sufficient to finance the construction of a facility described in subsection (a);
       (2) the prospective earning power of the applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed in accordance with the terms of the loan; and
       (3) the loan bears interest at a rate determined by the Secretary to be reasonable, taking into account the current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan.
    (c) Criteria—
       In selecting recipients of loan guarantees from among applicants, the Secretary shall give preference to proposals that—
       (1) meet all applicable Federal and State permitting requirements;
       (2) are most likely to be successful; and
       (3) are located in local markets that have the greatest need for the facility.
    (d) Maturity—
       A loan guaranteed under subsection (a) shall have a maturity of not more than 20 years.
    (e) Terms and Conditions—
       The loan agreement for a loan guaranteed under subsection (a) shall provide that no provision of the loan agreement may be amended or waived without the consent of the Secretary.
    (f) Assurance of Repayment—
       The Secretary shall require that an applicant for a loan guarantee under subsection (a) provide an assurance of repayment in the form of a performance bond, insurance, collateral, or other means acceptable to the Secretary in an amount equal to not less than 20 percent of the amount of the loan.
    (g) Guarantee Fee—
       The recipient of a loan guarantee under subsection (a) shall pay the Secretary an amount determined by the Secretary to be sufficient to cover the administrative costs of the Secretary relating to the loan guarantee.
    (h) Full Faith and Credit—
       The full faith and credit of the United States is pledged to the payment of all guarantees made under this section. Any such guarantee made by the Secretary shall be conclusive evidence of the eligibility of the loan for the guarantee with respect to principal and interest. The validity of the guarantee shall be incontestable in the hands of a holder of the guaranteed loan.
    (i) Reports—
       Until each guaranteed loan under this section has been repaid in full, the Secretary shall annually submit to Congress a report on the activities of the Secretary under this section.
    (j) Authorization of Appropriations—
       There are authorized to be appropriated such sums as are necessary to carry out this section.
    (k) Termination of Authority—
       The authority of the Secretary to issue a loan guarantee under subsection (a) terminates on the date that is 10 years after the date of enactment of this Act.

### SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.

    (a) Definitions—
       In this section:
       (1) ADVANCED TECHNOLOGY VEHICLE—
          The term `advanced technology vehicle' means a light duty vehicle that meets—
          (A) the Bin 5 Tier II emission standard established in regulations issued by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)), or a lower-numbered Bin emission standard;
          (B) any new emission standard in effect for fine particulate matter prescribed by the Administrator under that Act (42 U.S.C. 7401 et seq.); and
          (C) at least 125 percent of the average base year combined fuel economy for vehicles with substantially similar attributes.
       (2) COMBINED FUEL ECONOMY—
          The term `combined fuel economy' means—
          (A) the combined city/highway miles per gallon values, as reported in accordance with section 32904 of title 49, United States Code; and
          (B) in the case of an electric drive vehicle with the ability to recharge from an off-board source, the reported mileage, as determined in a manner consistent with the Society of Automotive Engineers recommended practice for that configuration or a similar practice recommended by the Secretary.
       (3) ENGINEERING INTEGRATION COSTS—
          The term `engineering integration costs' includes the cost of engineering tasks relating to—
          (A) incorporating qualifying components into the design of advanced technology vehicles; and
          (B) designing tooling and equipment and developing manufacturing processes and material suppliers for production facilities that produce qualifying components or advanced technology vehicles.
       (4) QUALIFYING COMPONENTS—
          The term `qualifying components' means components that the Secretary determines to be—
          (A) designed for advanced technology vehicles; and
          (B) installed for the purpose of meeting the performance requirements of advanced technology vehicles.
    (b) Advanced Vehicles Manufacturing Facility—
       The Secretary shall provide facility funding awards under this section to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of—
       (1) reequipping, expanding, or establishing a manufacturing facility in the United States to produce—
          (A) qualifying advanced technology vehicles; or
          (B) qualifying components; and
       (2) engineering integration performed in the United States of qualifying vehicles and qualifying components.
    (c) Period of Availability—
       An award under subsection (b) shall apply to—
       (1) facilities and equipment placed in service before December 30, 2020; and
       (2) engineering integration costs incurred during the period beginning on the date of enactment of this Act and ending on December 30, 2020.
    (d) Direct Loan Program-
       (1) IN GENERAL—
          Not later than 1 year after the date of enactment of this Act, and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide a total of not more than $25,000,000,000 in loans to eligible individuals and entities (as determined by the Secretary) for the costs of activities described in subsection (b).
       (2) APPLICATION—
          An applicant for a loan under this subsection shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a written assurance that—
          (A) all laborers and mechanics employed by contractors or subcontractors during construction, alteration, or repair that is financed, in whole or in part, by a loan under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with sections 3141-3144, 3146, and 3147 of title 40, United States Code; and
          (B) the Secretary of Labor shall, with respect to the labor standards described in this paragraph, have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and section 3145 of title 40, United States Code.
       (3) SELECTION OF ELIGIBLE PROJECTS—
          The Secretary shall select eligible projects to receive loans under this subsection in cases in which, as determined by the Secretary, the award recipient—
          (A) is financially viable without the receipt of additional Federal funding associated with the proposed project;
          (B) will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; and
          (C) has met such other criteria as may be established and published by the Secretary.
       (4) RATES, TERMS, AND REPAYMENT OF LOANS—
          A loan provided under this subsection—
          (A) shall have an interest rate that, as of the date on which the loan is made, is equal to the cost of funds to the Department of the Treasury for obligations of comparable maturity;
          (B) shall have a term equal to the lesser of—
             (i) the projected life, in years, of the eligible project to be carried out using funds from the loan, as determined by the Secretary; and
             (ii) 25 years;
          (C) may be subject to a deferral in repayment for not more than 5 years after the date on which the eligible project carried out using funds from the loan first begins operations, as determined by the Secretary; and
          (D) shall be made by the Federal Financing Bank.
    (e) Improvement—
       The Secretary shall issue regulations that require that, in order for an automobile manufacturer to be eligible for an award or loan under this section during a particular year, the adjusted average fuel economy of the manufacturer for light duty vehicles produced by the manufacturer during the most recent year for which data are available shall be not less than the average fuel economy for all light duty vehicles of the manufacturer for model year 2005. In order to determine fuel economy baselines for eligibility of a new manufacturer or a manufacturer that has not produced previously produced equivalent vehicles, the Secretary may substitute industry averages.
    (f) Fees—
       Administrative costs shall be no more than $100,000 or 10 basis point of the loan.
    (g) Priority—
       The Secretary shall, in making awards or loans to those manufacturers that have existing facilities, give priority to those facilities that are oldest or have been in existence for at least 20 years. Such facilities can currently be sitting idle.
    (h) Set Aside for Small Automobile Manufacturers and Component Suppliers-
       (1) DEFINITION OF COVERED FIRM—
          In this subsection, the term `covered firm' means a firm that—
          (A) employs less than 500 individuals; and
          (B) manufactures automobiles or components of automobiles.
       (2) SET ASIDE—
          Of the amount of funds that are used to provide awards for each fiscal year under subsection (b), the Secretary shall use not less than 10 percent to provide awards to covered firms or consortia led by a covered firm.
    (i) Authorization of Appropriations—
       There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2012.