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[Senate Report 112-70]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 150
112th Congress                                                   Report
                                 SENATE
 1st Session                                                     112-70

======================================================================

 
                    ADVANCED VEHICLE TECHNOLOGY ACT

                                _______
                                

               September 6, 2011.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 734]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 734) to provide for a program of 
research, development, demonstration, and commercial 
application in vehicle technologies at the Department of 
Energy, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill, as amended, do 
pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Advanced Vehicle 
Technology Act of 2011''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Objectives.
Sec. 3. Definitions.
Sec. 4. Coordination and nonduplication.

               TITLE I--VEHICLE RESEARCH AND DEVELOPMENT

Sec. 101. Program.
Sec. 102. Sensing and communications technologies.
Sec. 103. Manufacturing.
Sec. 104. Reporting.

    TITLE II--MEDIUM AND HEAVY DUTY COMMERCIAL AND TRANSIT VEHICLES

Sec. 201. Program.
Sec. 202. Class 8 truck and trailer systems demonstration.
Sec. 203. Technology testing and metrics.
Sec. 204. Nonroad systems pilot program.

SEC. 2. OBJECTIVES.

  The objectives of this Act are--
          (1) to reform and reorient the vehicle technologies programs 
        of the Department;
          (2) to establish a clear and consistent authority for vehicle 
        technologies programs of the Department;
          (3) to develop United States technologies and practices 
        that--
                  (A) improve the fuel efficiency and emissions of all 
                vehicles produced in the United States; and
                  (B) reduce vehicle reliance on petroleum-based fuels;
          (4) to support domestic research, development, engineering, 
        demonstration, and commercial application and manufacturing of 
        advanced vehicles, engines, and components;
          (5) to enable vehicles to move larger volumes of goods and 
        more passengers with less energy and emissions;
          (6) to develop cost-effective advanced technologies for wide-
        scale utilization throughout the passenger, commercial, 
        government, and transit vehicle sectors;
          (7) to allow for greater consumer choice of vehicle 
        technologies and fuels;
          (8) to shorten technology development and integration cycles 
        in the vehicle industry;
          (9) to ensure a proper balance and diversity of Federal 
        investment in vehicle technologies and among vehicle classes; 
        and
          (10) to strengthen partnerships between Federal and State 
        governmental agencies and the private and academic sectors.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Department.--The term ``Department'' means the Department 
        of Energy.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.

SEC. 4. COORDINATION AND NONDUPLICATION.

  (a) Coordination.--The Secretary shall ensure that activities 
authorized by this Act do not duplicate activities of other programs 
within the Department or other relevant agencies.
  (b) Cost-sharing Requirement.--The activities carried out under this 
Act shall be subject to the cost-sharing requirements of section 988 of 
the Energy Policy Act of 2005 (42 U.S.C. 16352).

               TITLE I--VEHICLE RESEARCH AND DEVELOPMENT

SEC. 101. PROGRAM.

  (a) Activities.--The Secretary shall conduct a program of basic and 
applied research, development, engineering, demonstration, and 
commercial application activities on materials, technologies, and 
processes with the potential to substantially reduce or eliminate 
petroleum use and the emissions of the Nation's passenger and 
commercial vehicles, including activities in the areas of--
          (1) hybridization or full electrification of vehicle systems;
          (2) batteries, ultracapacitors, and other energy storage 
        devices;
          (3) power electronics;
          (4) vehicle, component, and subsystem manufacturing 
        technologies and processes;
          (5) engine efficiency and combustion optimization;
          (6) waste heat recovery;
          (7) transmission and drivetrains;
          (8) hydrogen vehicle technologies, including fuel cells and 
        internal combustion engines, and hydrogen infrastructure;
          (9) compressed natural gas and liquefied petroleum gas 
        vehicle technologies;
          (10) aerodynamics, rolling resistance, and accessory power 
        loads of vehicles and associated equipment;
          (11) vehicle weight reduction, including lightweighting 
        materials;
          (12) friction and wear reduction;
          (13) engine and component durability;
          (14) innovative propulsion systems;
          (15) advanced boosting systems;
          (16) hydraulic hybrid technologies;
          (17) engine compatibility with and optimization for a variety 
        of transportation fuels including natural gas and other liquid 
        and gaseous fuels;
          (18) predictive engineering, modeling, and simulation of 
        vehicle and transportation systems;
          (19) refueling and charging infrastructure for alternative 
        fueled and electric or plug-in electric hybrid vehicles, 
        including the unique challenges facing rural areas;
          (20) gaseous fuels storage systems and system integration and 
        optimization;
          (21) sensing, communications, and actuation technologies for 
        vehicle, electrical grid, and infrastructure;
          (22) efficient use, substitution, and recycling of 
        potentially critical materials in vehicles, including rare 
        earth elements and precious metals, at risk of supply 
        disruption;
          (23) aftertreatment technologies;
          (24) thermal management of battery systems;
          (25) retrofitting advanced vehicle technologies to existing 
        vehicles;
          (26) development of common standards, specifications, and 
        architectures for both transportation and stationary battery 
        applications;
          (27) advanced internal combustion engines; and
          (28) other research areas as determined by the Secretary.
  (b) Transformational Technology.--The Secretary shall ensure that the 
Department continues to support research, development, engineering, 
demonstration, and commercial application activities and maintains 
competency in mid- to long-term transformational vehicle technologies 
with potential to achieve deep reductions in petroleum use and 
emissions, including activities in the areas of--
          (1) hydrogen vehicle technologies, including fuel cells, 
        internal combustion engines, hydrogen storage, infrastructure, 
        and activities in hydrogen technology validation and safety 
        codes and standards;
          (2) multiple battery chemistries and novel energy storage 
        devices, including nonchemical batteries, ultracapacitors and 
        electromechanical storage technologies such as hydraulics, 
        flywheels, and compressed air storage;
          (3) communication, connectivity, and power flow among 
        vehicles, infrastructure, and the electrical grid; and
          (4) other innovative technologies research and development, 
        as determined by the Secretary.
  (c) Industry Participation.--To the maximum extent practicable, 
activities under this Act shall be carried out in partnership or 
collaboration with automotive manufacturers, heavy commercial, 
vocational, and transit vehicle manufacturers, qualified plug-in 
electric vehicle manufacturers, compressed natural gas and liquefied 
petroleum gas vehicle manufacturers, vehicle and engine equipment and 
component manufacturers, manufacturing equipment manufacturers, 
advanced vehicle service providers, fuel producers and energy 
suppliers, electric utilities, universities, national laboratories, and 
independent research laboratories. In carrying out this Act the 
Secretary shall--
          (1) determine whether a wide range of companies that 
        manufacture or assemble vehicles or components in the United 
        States are represented in ongoing public private partnership 
        activities, including firms that have not traditionally 
        participated in federally sponsored research and development 
        activities, and where possible, partner with such firms that 
        conduct significant and relevant research and development 
        activities in the United States;
          (2) leverage the capabilities and resources of, and formalize 
        partnerships with, industry-led stakeholder organizations, 
        nonprofit organizations, industry consortia, and trade 
        associations with expertise in the research and development of, 
        and education and outreach activities in, advanced automotive 
        and commercial vehicle technologies;
          (3) develop more efficient processes for transferring 
        research findings and technologies to industry;
          (4) give consideration to conversion of existing or former 
        vehicle technology development or manufacturing facilities for 
        the purposes of this Act;
          (5) establish and support public-private partnerships, 
        dedicated to overcoming barriers in commercial application of 
        transformational vehicle technologies, that utilize such 
        industry-led technology development facilities of entities with 
        demonstrated expertise in successfully designing and 
        engineering pre-commercial generations of such transformational 
        technology; and
          (6) promote efforts to ensure that technology research, 
        development, engineering, and commercial application activities 
        funded under this Act are carried out in the United States.
  (d) Interagency and Intraagency Coordination.--To the maximum extent 
practicable, the Secretary shall coordinate research, development, 
demonstration, and commercial application activities among--
          (1) relevant programs within the Department, including--
                  (A) the Office of Energy Efficiency and Renewable 
                Energy;
                  (B) the Office of Science;
                  (C) the Office of Electricity Delivery and Energy 
                Reliability;
                  (D) the Office of Fossil Energy;
                  (E) the Advanced Research Projects Agency--Energy; 
                and
                  (F) other offices as determined by the Secretary; and
          (2) relevant technology research and development programs 
        within the Department of Transportation and other Federal 
        agencies, as determined by the Secretary.
  (e) Federal Demonstration of Technologies.--The Secretary shall make 
information available to procurement programs of Federal agencies 
regarding the potential to demonstrate technologies resulting from 
activities funded through programs under this Act.
  (f) Intergovernmental Coordination.--The Secretary shall seek 
opportunities to leverage resources and support initiatives of State 
and local governments in developing and promoting advanced vehicle 
technologies, manufacturing, and infrastructure.
  (g) Criteria.--When awarding cost-shared grants under this program, 
the Secretary shall give priority to those technologies (either 
individually or as part of a system) that--
          (1) provide the greatest aggregate fuel savings based on the 
        reasonable projected sales volumes of the technology; and
          (2) provide the greatest increase in United States 
        employment.

SEC. 102. SENSING AND COMMUNICATIONS TECHNOLOGIES.

  (a) In General.--The Secretary, in coordination with the Secretary of 
Transportation and the relevant research programs of other Federal 
agencies, shall conduct research, development, engineering, and 
demonstration activities on connectivity of vehicle and transportation 
systems, including on sensing, computation, communication, and 
actuation technologies that allow for reduced fuel use, optimized 
traffic flow, and vehicle electrification, including technologies for--
          (1) onboard vehicle, engine, and component sensing and 
        actuation;
          (2) vehicle-to-vehicle sensing and communication;
          (3) vehicle-to-infrastructure sensing and communication; and
          (4) vehicle integration with the electrical grid, including 
        communications to provide grid services.
  (b) Coordination.--The activities carried out under this section 
shall supplement (and not supplant) activities under the intelligent 
transportation system research program of the Department of 
Transportation.

SEC. 103. MANUFACTURING.

  The Secretary shall carry out a research, development, engineering, 
demonstration, and commercial application program of advanced vehicle 
manufacturing technologies and practices, including innovative 
processes to--
          (1) increase the production rate and decrease the cost of 
        advanced battery manufacturing;
          (2) vary the capability of individual manufacturing 
        facilities to accommodate different battery chemistries and 
        configurations;
          (3) reduce waste streams, emissions, and energy-intensity of 
        vehicle, engine, advanced battery and component manufacturing 
        processes;
          (4) recycle and remanufacture used batteries and other 
        vehicle components for reuse in vehicles or stationary 
        applications;
          (5) produce cost-effective lightweight materials such as 
        advanced metal alloys, polymeric composites, and carbon fiber;
          (6) produce lightweight high pressure storage systems for 
        gaseous fuels;
          (7) design and manufacture purpose-built hydrogen and fuel 
        cell vehicles and components;
          (8) improve the calendar life and cycle life of advanced 
        batteries; and
          (9) produce permanent magnets for advanced vehicles.

SEC. 104. REPORTING.

  (a) Technologies Developed.--Not later than 18 months after the date 
of enactment of this Act and annually thereafter through 2017, the 
Secretary of Energy shall transmit to Congress a report regarding the 
technologies developed as a result of the activities authorized by this 
title, with a particular emphasis on whether the technologies were 
successfully adopted for commercial applications, and if so, whether 
products relying on those technologies are manufactured in the United 
States.
  (b) Additional Matters.--At the end of each fiscal year through 2017 
the Secretary shall submit to the relevant Congressional committees of 
jurisdiction an annual report describing activities undertaken in the 
previous year under this title, active industry participants, efforts 
to recruit new participants committed to design, engineering, and 
manufacturing of advanced vehicle technologies in the United States, 
progress of the program in meeting goals and timelines, and a strategic 
plan for funding of activities across agencies.

    TITLE II--MEDIUM AND HEAVY DUTY COMMERCIAL AND TRANSIT VEHICLES

SEC. 201. PROGRAM.

  (a) In General.--The Secretary, in partnership with relevant research 
and development programs in other Federal agencies, and a range of 
appropriate industry stakeholders, shall carry out a program of 
cooperative research, development, demonstration, and commercial 
application activities on advanced technologies for medium- to heavy-
duty commercial, vocational, recreational, and transit vehicles, 
including activities in the areas of--
          (1) engine efficiency and combustion research;
          (2) onboard storage technologies for compressed natural gas 
        and liquefied petroleum gas;
          (3) development and integration of engine technologies 
        designed for compressed natural gas and liquefied petroleum gas 
        operation of a variety of vehicle platforms;
          (4) waste heat recovery and conversion;
          (5) improved aerodynamics and tire rolling resistance;
          (6) energy and space-efficient emissions control systems;
          (7) heavy hybrid, hybrid hydraulic, plug-in hybrid, and 
        electric platforms, and energy storage technologies;
          (8) drivetrain optimization;
          (9) friction and wear reduction;
          (10) engine idle and parasitic energy loss reduction;
          (11) electrification of accessory loads;
          (12) onboard sensing and communications technologies;
          (13) advanced lightweighting materials and vehicle designs;
          (14) increasing load capacity per vehicle;
          (15) thermal management of battery systems;
          (16) recharging infrastructure;
          (17) compressed natural gas and liquefied petroleum gas 
        infrastructure;
          (18) advanced internal combustion engines;
          (19) complete vehicle modeling and simulation;
          (20) hydrogen vehicle technologies, including fuel cells and 
        internal combustion engines, and hydrogen infrastructure;
          (21) retrofitting advanced technologies onto existing truck 
        fleets; and
          (22) integration of these and other advanced systems onto a 
        single truck and trailer platform.
  (b) Leadership.--The Secretary shall appoint a full-time Director to 
coordinate research, development, demonstration, and commercial 
application activities in medium- to heavy-duty commercial, 
recreational, and transit vehicle technologies. Responsibilities of the 
Director shall be to--
          (1) improve coordination and develop consensus between 
        government agency and industry partners, and propose new 
        processes for program management and priority setting to better 
        align activities and budgets among partners;
          (2) regularly convene workshops, site visits, demonstrations, 
        conferences, investor forums, and other events in which 
        information and research findings are shared among program 
        participants and interested stakeholders;
          (3) develop a budget for the Department's activities with 
        regard to the interagency program, and provide consultation and 
        guidance on vehicle technology funding priorities across 
        agencies;
          (4) determine a process for reviewing program technical 
        goals, targets, and timetables and, where applicable, aided by 
        life-cycle impact and cost analysis, propose revisions or 
        elimination based on program progress, available funding, and 
        rate of technology adoption;
          (5) evaluate ongoing activities of the program and recommend 
        project modifications, including the termination of projects, 
        where applicable;
          (6) recruit new industry participants to the interagency 
        program, including truck, trailer, and component manufacturers 
        who have not traditionally participated in federally sponsored 
        research and technology development activities; and
          (7) other responsibilities as determined by the Secretary, in 
        consultation with interagency and industry partners.
  (c) Reporting.--At the end of each fiscal year, the Secretary shall 
submit to the Congress an annual report describing activities 
undertaken in the previous year, active industry participants, efforts 
to recruit new participants, progress of the program in meeting goals 
and timelines, and a strategic plan for funding of activities across 
agencies.

SEC. 202. CLASS 8 TRUCK AND TRAILER SYSTEMS DEMONSTRATION.

  The Secretary shall conduct a competitive grant program to 
demonstrate the integration of multiple advanced technologies on Class 
8 truck and trailer platforms with a goal of improving overall freight 
efficiency, as measured in tons and volume of freight hauled or other 
work performance-based metrics, by 50 percent, including a combination 
of technologies listed in section 201(a). Applicant teams may be 
comprised of truck and trailer manufacturers, engine and component 
manufacturers, fleet customers, university researchers, and other 
applicants as appropriate for the development and demonstration of 
integrated Class 8 truck and trailer systems.

SEC. 203. TECHNOLOGY TESTING AND METRICS.

  The Secretary, in coordination with the partners of the interagency 
research program described in section 201(a)--
          (1) shall develop standard testing procedures and 
        technologies for evaluating the performance of advanced heavy 
        vehicle technologies under a range of representative duty 
        cycles and operating conditions, including for heavy hybrid 
        propulsion systems;
          (2) shall evaluate heavy vehicle performance using work 
        performance-based metrics other than those based on miles per 
        gallon, including those based on units of volume and weight 
        transported for freight applications, and appropriate metrics 
        based on the work performed by nonroad systems; and
          (3) may construct heavy duty truck and bus testing 
        facilities.

SEC. 204. NONROAD SYSTEMS PILOT PROGRAM.

  The Secretary shall undertake a pilot program of research, 
development, demonstration, and commercial applications of technologies 
to improve total machine or system efficiency for nonroad mobile 
equipment including agricultural and construction equipment, and shall 
seek opportunities to transfer relevant research findings and 
technologies between the nonroad and on-highway equipment and vehicle 
sectors.

SEC. 205. REPEAL OF EXISTING AUTHORITIES.

  (a) In General.--Sections 706, 711, 712, and 933 of the Energy Policy 
Act of 2005 (42 U.S.C. 16051, 16061, 16062, 16233) are repealed.
  (b) Energy Efficiency.--Section 911 of the Energy Policy Act of 2005 
(42 U.S.C. 16191) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)(A), by striking ``vehicles, 
                buildings,'' and inserting ``buildings''; and
                  (B) in paragraph (2)--
                          (i) by striking subparagraph (A); and
                          (ii) by redesignating subparagraphs (B) 
                        through (E) as subparagraphs (A) through (D), 
                        respectively; and
          (2) in subsection (c)--
                  (A) by striking paragraph (3);
                  (B) by redesignating paragraph (4) as paragraph (3); 
                and
                  (C) in paragraph (3) (as so redesignated), by 
                striking ``(a)(2)(D)'' and inserting ``(a)(2)(C)''.
  (c) Energy Storage Competitiveness.--Section 641 of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17231) is amended--
          (1) by striking subsection (j);
          (2) by redesignating subsections (k) through (p) as 
        subsections (j) through (o), respectively; and
          (3) in subsection (o) (as so redesignated)--
                  (A) in paragraph (2), by striking ``and;'' after the 
                semicolon at the end;
                  (B) in paragraph (4), by inserting ``and'' after the 
                semicolon at the end;
                  (C) by striking paragraph (5);
                  (D) by redesignating paragraph (6) as paragraph (5); 
                and
                  (E) in paragraph (5) (as so redesignated), by 
                striking ``subsection (k)'' and inserting ``subsection 
                (j)''.

                         Purpose of the Measure

    The purposes of S. 734 are--
    (1) to reform and reorient the vehicle technologies 
programs of the Department of Energy;
    (2) to establish a clear and consistent authority for 
vehicle technologies programs of the Department;
    (3) to develop United States technologies and practices 
that improve the fuel efficiency and emissions of all vehicles 
produced in the United States, and reduce vehicle reliance on 
petroleum based fuels;
    (4) to support domestic research, development, engineering, 
demonstration, and commercial application and manufacturing of 
advanced vehicles, engines, and components;
    (5) to enable vehicles to move larger volumes of goods and 
more passengers with less energy and emissions;
    (6) to develop cost-effective advanced technologies for 
wide-scale utilization throughout the passenger, commercial, 
government, and transit vehicle sectors;
    (7) to allow for greater consumer choice of vehicle 
technologies and fuels;
    (8) to shorten technology development and integration 
cycles in the vehicle industry;
    (9) to ensure a proper balance and diversity of Federal 
investment in vehicle technologies and among vehicle classes; 
and
    (10) to strengthen partnerships between Federal and State 
governmental agencies and the private and academic sectors.

                          Background and Need

    Over the last two decades, federal research priorities in 
vehicle technology have shifted between passenger and heavy 
duty vehicles, as well as diesel-hybrids, hydrogen-fueled, and 
battery-powered drive systems. The variation in priority and 
funding may be one reason for unsteady progress in advancing 
any one technology. The Department of Energy's Vehicle 
Technologies Program, a division within the Office of Energy 
Efficiency and Renewable Energy (EERE), currently conducts 
cooperative research with private industry and academia in a 
number of areas including combustion efficiency, lightweight 
materials, alternative fuels, and technology integration. This 
research relies on various general research and grant 
authorizations in past energy laws, as well as the Department 
of Energy Organization Act of 1977.
    Although this program has generally focused on technologies 
that reduce demand for oil-derived fuel, the specific programs 
and points of emphasis have shifted from Administration to 
Administration. Cooperative efforts with industry such as the 
FreedomCAR and Fuel Partnership and the 21st Century Truck 
Partnership have provided some of the research focus and helped 
determine objectives, but there is no overarching statutory 
authority structure for the Vehicle Technologies Program.
    This illustrates the need for a comprehensive strategy and 
consistent funding in a broad range of areas, from near-
commercial technologies to exploratory research on a variety of 
systems, and across vehicle size classes. S. 734 lays out a 
comprehensive research, development, demonstration, and 
commercial application program, including several subprograms, 
in order to support a domestic vehicle manufacturing industry 
that retains international competitiveness in advanced vehicle 
technologies.

                          Legislative History

    Senator Stabenow introduced similar legislation in the 
111th Congress (S. 2843) on December 7, 2009. The Subcommittee 
on Energy held a legislative hearing on the House companion 
bill, H.R. 3246, on December 8, 2009 (S. Hrg. 111-330). The 
Committee on Energy and Natural Resources considered S. 2843 
and ordered it reported favorably with an amendment in the 
nature of a substitute on July 21, 2010. The bill did not 
receive floor consideration in the 111th Congress.
    Senator Stabenow introduced S. 734 on April 6, 2011. It is 
cosponsored by Senators Levin and Wyden. The full Committee 
conducted a hearing on the bill on May 19, 2011 (S. Hrg. 112-
38).
    The Committee marked up the bill in open business meeting 
on July 14, 2011, and adopted an amendment in the nature of a 
substitute, as amended by an amendment by Senator Coats, and 
ordered the legislation, as amended, favorably reported.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 14, by majority voice vote of a 
quorum present, recommends that the Senate pass the bill, if 
amended as described herein.

                          Committee Amendment

    During its consideration of S. 734, the Committee adopted 
an amendment in the nature of a substitute. The substitute 
amendment adds a table of contents in section 1(b), omits the 
findings in section 2 of the bill as introduced, provides 
additional objectives in section 2 of the substitute, adds a 
new section 4 relating to program coordination, nonduplication, 
and cost sharing, adds a new section 102(b) relating to program 
coordination, omits section 104 of the bill as introduced 
relating to user testing facilities, adds a new section 205 to 
repeal certain existing authorities, and makes various 
conforming changes.

                      Section-by-Section Analysis

    Section 1 provides a short title.
    Section 2 describes the objectives of the bill.
    Section 3 defines the terms used in the bill.
    Section 4 instructs the Secretary to ensure activities 
carried out under the bill are not duplicative of other 
programs conducted at the Department or other relevant 
agencies. This section also establishes the cost sharing 
requirements of authorized programs.

               Title I--Vehicle Research and Development

    Section 101 instructs the Secretary of Energy to carry out 
a program of basic and applied research, development, 
engineering, demonstration, and commercial application 
activities in a range of areas with the potential to 
substantially reduce or eliminate petroleum use. Subsection (a) 
includes a non-exclusive list of examples of technologies and 
activities. Subsection (b) directs the Secretary to ensure 
activities supporting ``transformational technologies,'' such 
as using hydrogen as a fuel source, energy storage devices and 
alternative battery chemistries, and communication and 
connectivity among vehicles continue to be supported. 
Subsection (c) requires, to the maximum extent practicable, 
that the Secretary carry out activities under the Act in 
partnership or collaboration with manufacturers, service 
providers, electric utilities, and laboratories. Subsection (d) 
directs the Secretary to coordinate research, development, 
engineering, demonstration, and commercial application 
activities with related interagency groups to avoid duplication 
of work. Subsections (e) and (f) direct the Secretary to seek 
opportunities to demonstrate technologies, both by providing 
necessary information to federal procurement offices, and by 
working with state and local governments to enhance vehicle 
technology, manufacturing, and infrastructure incentives. 
Subsection (g) directs the Secretary, in awarding grants to 
give priority to technologies that save the greatest amount of 
fuel and create the most jobs.
    Section 102 directs the Secretary to work with other 
relevant federal agencies (e.g., the Department of 
Transportation, which runs the Intelligent Transportation 
Systems Joint Program Office) to improve vehicle component 
sensing and communications capabilities.
    Section 103 directs the Secretary to carry out a research, 
development, engineering, demonstration, and commercial 
application program in manufacturing technology and processes 
to produce advanced vehicle technologies and components.
    Section 104 requires the Secretary to submit a report to 
Congress not later than 18 months after the enactment of this 
bill, and every year thereafter through 2017. Subsection (a) 
requires the report to outline the technologies developed under 
title I, particularly technologies that have exceeded the 
commercial stage and are manufactured domestically. Subsection 
(b) requires the report to detail active industry participants, 
efforts to recruit industry participants, program progress, and 
funding strategies.

    Title II--Medium and Heavy Duty Commercial and Transit Vehicles

    Section 201 instructs the Secretary to conduct, in 
partnership with other Federal agencies and stakeholders a 
program of cooperative research, development, demonstration, 
and commercial application activities for advanced technologies 
in medium and heavy duty vehicles, including commercial, 
vocational, recreational, and transit vehicles. Subsection (b) 
requires the Secretary to appoint a full-time director to 
coordinate the program. It requires the Director to improve 
coordination between related agencies and industry partners to 
better align priorities and budgets, and to evaluate the 
program's productivity and recommend modifications as needed. 
Subsection (c) requires the Secretary to submit an annual 
report that describes the active industry participants, program 
successes, and funding priorities.
    Section 202 establishes a competitive grant program for the 
purpose of integrating Class 8 trucks and trailers with 
advanced vehicle technologies and improved freight efficiency. 
Applicant teams may be made up of truck, trailer, and engine 
manufacturers, fleet customers, higher education institutions, 
and other applicants.
    Section 203 directs the Secretary to work with the 
participants outlined in section 201 to develop testing and 
evaluation capabilities to measure performance of technologies 
developed pursuant to this title.
    Section 204 requires the Secretary to undertake a pilot 
program to improve total machine or system efficiency for non-
road mobile equipment, including agriculture and construction 
equipment and to share the findings with nonroad and on-highway 
vehicle sectors.
    Section 205 repeals a number of existing authorities that 
are considered duplicative of the programs authorized by this 
bill.

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

S. 734--Advanced Vehicle Technology Act of 2011

    Summary: S. 734 would direct the Secretary of Energy to 
expand existing activities aimed at developing alternative 
vehicles with the potential to significantly reduce or 
eliminate petroleum use and carbon emissions. Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing S. 734 would have a net discretionary cost of 
nearly $1.3 billion over the 2012-2016 period. Enacting S. 734 
would not affect direct spending or revenues; therefore, pay-
as-you-go procedures do not apply.
    S. 734 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 734 is shown in the following table. The 
costs of this legislation fall within budget function 270 
(energy).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                              --------------------------------------------------
                                                                2012    2013    2014    2015    2016   2012-2016
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Spending for Advanced Vehicle Technologies
    Estimated Authorization Level............................     400     406     412     419     428     2,065
    Estimated Outlays........................................     120     240     297     338     373     1,368
Reduced Authorizations
    Authorization Level......................................     -30     -30     -30     -30     -30      -150
    Estimated Outlays........................................      -4     -17     -26     -30     -30      -107
    Total Proposed Changes:
        Estimated Authorization Level........................     370     376     382     389     398     1,915
        Estimated Outlays....................................     116     223     271     308     343     1,261
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: S. 734 would authorize a variety of 
activities to promote advanced vehicle technology. The bill 
also would repeal and modify certain provisions of the Energy 
Policy Act of 2005 (EPAct) and EISA 2007 that authorize similar 
activities. Taken as a whole, CBO estimates that implementing 
S. 734 would result in a net increase in discretionary spending 
of $1.3 billion over the 2012-2016 period.

Spending for advanced vehicle technologies

    S. 734 would direct the Secretary of Energy to carry out, 
in collaboration with vehicle manufacturers and other 
nonfederal entities, activities to promote the development of 
vehicles with the potential to significantly reduce petroleum 
use and carbon emissions. The bill would authorize the 
Department of Energy (DOE) to expand existing research and 
development activities related to alternative vehicles. In 
addition, the bill would require the agency to establish new 
initiatives, particularly related to medium- and heavy-duty 
vehicles and mass transit vehicles.
    S. 734 would not specify particular targets or goals for 
DOE to achieve related to advanced vehicle technologies. 
Research and development activities inherently involve trial 
and error, and the pace of incremental progress is directly 
related to the variety of experiments attempted and other 
factors. For this estimate, CBO assumes that the agency would 
increase its level of effort by expanding existing programs, 
launching new initiatives, and increasing the number of 
technologies tested in order to achieve appreciable progress in 
research areas addressed by S. 734. Based on information from 
the agency, CBO estimates that realizing recognizable gains 
from such efforts would require appropriations totaling $400 
million in 2012. That amount is roughly double the average 
level of annual funding provided to DOE for vehicle technology 
development over the 2000-2010 period and includes:
           $200 million to expand general research and 
        development efforts related to alternative passenger 
        and light-duty commercial vehicles;
           $130 million to expand and establish 
        research and development related to alternative medium- 
        and heavy-duty commercial vehicles and mass transit 
        vehicles;
           $40 million to improve the energy efficiency 
        of manufacturing processes related to alternative 
        vehicles; and
           $30 million to expand programs to develop 
        vehicle-sensing and communication technologies.
    Assuming that future annual appropriations would remain at 
that estimated 2012 level, adjusted for anticipated inflation, 
CBO estimates that fully funding S. 734 would require 
appropriations totaling $2.1 billion over the 2012-2016 period. 
Resulting outlays over that period would total about $1.4 
billion, with nearly $0.7 billion of additional spending 
occurring in later years. CBO expects DOE would use those 
amounts to fund a wider variety of research activities aimed at 
achieving technical milestones. CBO estimates that 
significantly accelerating the time frame in which new 
technologies could become market ready would require even 
larger increases in funding.

Reduced Authorizations

    To offset a portion of increased discretionary spending, S. 
734 would amend and repeal certain provisions of EPAct that 
authorize a variety of activities related to vehicle 
technologies. In particular, S. 734 would eliminate an existing 
authorization to appropriate $30 million a year through 2018 to 
support collaborative efforts to develop and demonstrate novel 
and advanced energy storage systems for use in electric drive 
vehicles. Assuming future appropriations are reduced 
accordingly, CBO estimates that implementing that provision 
would result in $107 million less in discretionary spending 
over the 2012-2016 period and additional savings after 2016. 
CBO also estimates that repealing and modifying other 
provisions of EPAct specified in the bill would not 
significantly affect discretionary spending.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: S. 734 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Megan Carroll; Impact 
on State, Local, and Tribal Governments: Ryan Miller; Impact on 
the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 734.
    The bill is not a regulatory measure in the sense of 
imposing Government established standards or significant 
economic responsibilities on private individuals and 
businesses, but rather providing grants to private industry 
that may be voluntarily applied for.
    No personal information would be collected in administering 
programs authorized under the bill. Therefore, there would be 
no impact on personal privacy.
    While an applicant to the grant programs authorized in the 
measure will have to submit paperwork through the application 
process, little if any additional paperwork would be required 
of any entity or person that is not an applicant to a program.

                   Congressionally Directed Spending

    The bill, as reported, does not contain any congressionally 
directed spending items, limited tax benefits, or limited 
tariff benefits as defined in rule XLIV of the Standing Rules 
of the Senate.

                        Executive Communications

    The testimony provided by the Department of Energy on May 
19, 2011 follows:

Statement of Mr. Patrick Davis, Program Director, Vehicle Technologies 
 Program, Office of Energy Efficiency and Renewable Energy, Department 
                               of Energy

    Chairman Bingaman, Ranking Member Murkowski and Members of 
the Committee, thank you for the opportunity to discuss the 
Department's advanced vehicles technology programs. The 
Administration is still reviewing S. 734 the Advanced Vehicles 
Technology Act and S. 948 Promoting Electric Vehicles Act of 
2011 and does not have a position on either bill at this time 
and so this statement will provide only general DOE comments.
    The transportation sector accounts for approximately two-
thirds of the United States' oil consumption and contributes to 
one-third of the Nation's greenhouse gas (GHG) emissions.\1\ 
After housing, transportation is the second biggest monthly 
expense for most American families.\2\ As the President said in 
his recent energy speech, ``In an economy that relies so 
heavily on oil, rising prices at the pump affect everybody.'' 
Emphasizing that ``there are no quick fixes,'' the President 
outlined a portfolio of actions which, taken together, could 
cut U.S. oil imports by a third by 2025. These include programs 
that would put one million electric vehicles on the road by 
2015.
---------------------------------------------------------------------------
    \1\http://wwwl.eere.energy.go/vehiclesandfuels/pdfs/vehicles_fs.pdf
    \2\http://www.bls.gov/news.release/cesan.nr0.htm
---------------------------------------------------------------------------
    The Office of Energy Efficiency and Renewable Energy's 
(EERE's) Vehicle Technologies Program (VTP) develops and 
promotes energy-efficient, environmentally friendly 
transportation technologies that will reduce petroleum 
consumption and lower GHG emissions while meeting drivers' 
expectations of vehicle performance. VTP's activities promote 
energy security, environmental, and economic benefits in both 
the near- and long-term.
    Few technologies hold greater promise for reducing our 
dependence on oil than electric vehicles. In his 2011 State of 
the Union address, the President spoke of his goal to have the 
United States become the first country with a million electric 
vehicles on the road by 2015. Meeting this goal will help the 
United States become a leader in the clean energy economy, 
while capitalizing on the ingenuity of American industry. 
Manufacturing products needed for the clean energy economy will 
generate long term economic strength in the U.S., creating jobs 
across the country while reducing air pollution and greenhouse 
gas emissions.
    EERE investments past, present, and future are critical to 
achieving this goal. In 2009, the U.S. had only two, relatively 
small, factories manufacturing advanced vehicle batteries, and 
produced less than two percent of the world's hybrid vehicle 
batteries.\3\ But over the next few years, thanks to 
investments from the American Recovery and Reinvestment Act of 
2009 (Recovery Act) in battery and electric drive component 
manufacturing, and electric drive demonstration and 
infrastructure, the U.S. will be able to produce enough 
batteries and components to support 500,000 plug-in and 
electric vehicles per year. High volume manufacturing, coupled 
with battery technology advances, design optimization, and 
material cost reductions, could lead to a drop in battery costs 
of 50 percent by 2013 compared to 2009, which will lower the 
cost of electric vehicles, making them accessible to more 
consumers.
---------------------------------------------------------------------------
    \3\http://www.whitehouse.gov/sites/default/files/
blueprint_secure_energy_future.pdf
---------------------------------------------------------------------------
    Further policies and research are needed to build on the 
work under the Recovery Act. That is why the President's FY 
2012 Budget proposes a new effort to support electric vehicle 
manufacturing and adoption in the United States through new 
consumer rebates, investments in R&D, and competitive programs 
to encourage communities that invest in electric vehicle 
infrastructure and regulatory streamlining. Specifically, the 
Budget proposes to: transform the existing $7500 tax credit for 
electric vehicles into a rebate that will be available to all 
consumers immediately at the point of sale; advance innovative 
technologies through new R&D investments, building on Recovery 
Act investments, by investing $588 million for vehicle 
technologies at DOE; and reward communities that invest in 
electric vehicle infrastructure through a $200 million program 
which provides an incentive for communities to invest in 
electric vehicle infrastructure and remove regulatory barriers.

general comments on s. 948, the promoting electric vehicles act of 2011

    The investments that we have made through the Recovery Act 
as well as those in the Budget align with many of the 
priorities that are reflected in the Promoting Electric 
Vehicles Act of 2011--though we do not take a position on the 
bill itself. Below, I will discuss some of the priorities 
included in this bill:
    One of the main elements of the Promoting Electric Vehicles 
Act is a deployment program in which communities would be 
chosen on a competitive basis to receive grants that would be 
used to support integration of electric vehicles through means 
such as installing charging infrastructure, updating building 
codes. The Administration is supportive of this concept, which 
is why the President's Budget includes $200 million to reward 
communities for leadership in reducing regulatory barriers and 
developing comprehensive electric vehicle-friendly 
infrastructure.
    Specifically, this funding will support a competitive 
program within the Department of Energy to help communities 
across the country become early adopters of electric vehicles 
through regulatory streamlining, infrastructure investments, 
vehicle fleet conversions, deployment of EV incentives (e.g., 
parking, HOV access) partnerships with major employers/
retailers, and workforce training. The FY 2012 Budget includes 
a proposal that would allow up to 30 communities across the 
country to receive grants of up to $10 million each on the 
basis of their ability to demonstrate concrete reforms and to 
use the funds to help catalyze electric vehicle deployment. 
This approach builds on bi-partisan proposals and ideas 
including some developed by the sponsors of this bill.
    The Promoting Electric Vehicles Act of 2011 includes 
provisions to promote near-term deployment of plug-in electric 
drive vehicles, many of which may complement and supplement the 
Department's ongoing activities, funded both through the 
Recovery Act and annual appropriations. However, as stated 
previously, the Administration is continuing to review this 
extensive bill and does not have a position on it at this time.
    S. 948 includes provisions which would support technical 
assistance, workforce training, and a targeted communities 
program to facilitate the rapid deployment of plug-in vehicles. 
The bill's targeted deployment program would offer communities 
of different sizes in various parts of the country an 
opportunity to execute various deployment approaches and 
develop best practices that can be shared nationwide to address 
critical questions about planning and managing vehicle and 
charging infrastructure deployment.
    The Department notes that the community selection criteria 
includes an emphasis on diversity of climate and type of 
electric utility. Such diversity in pilot programs, 
particularly across electricity-generation sources, would be 
crucial for estimating the environmental impacts of expanded 
adoption of plug-in electric drive vehicles.
    DOE is already examining ways to work more closely with 
communities on vehicle electrification and infrastructure 
deployment, particularly in connection with our Clean Cities 
Program. The coalitions that comprise the Clean Cities network 
bring together state and local governments, early adopter 
fleets, local utilities, infrastructure developers, and other 
key stakeholders in a community to advance the deployment of 
alternative fuel vehicles. These public private partnerships 
are proven and effective resources for sharing information at 
the local level and are primed to support the rollout of 
electric drive vehicles and infrastructure. Our goal is to 
better understand how the Department can support local 
community efforts to deploy EVs and infrastructure.
    To maximize the effectiveness of the targeted communities 
program, the Department would seek to coordinate this effort 
with related ongoing projects to deploy electric drive vehicles 
and infrastructure. Our Recovery Act projects for 
transportation electrification are building critical expertise 
through large-scale vehicle and infrastructure deployment, 
collecting data on vehicle-grid interaction and producing 
valuable lessons learned that can support and help to 
accelerate future deployments in other communities. We note 
that the deployment community selection criteria as outlined in 
the legislation, is crafted to help ensure that the selected 
communities stand up as models for deployment across the 
country.
    We also believe that technical assistance is vital to the 
successful rollout of any proposed national deployment program 
for electric drive vehicles. The Department is well positioned 
to disseminate information and provide training and technical 
assistance to communities seeking to accelerate EV deployment. 
As an example, and as noted earlier, the Clean Cities network 
is primed to share best practices and lessons learned about 
permitting and inspection processes, as well as other local 
ordinances and opportunities for code official and first 
responder training. I would like to note, however, that the 
Department plays a supporting role in the development of model 
codes and standards. In regard to this provision, we can bring 
value to the process because of our extensive experience 
working with code development organizations (CDOs) and 
standards development organizations (SDOs) to facilitate 
consensus around the development and adoption of vehicle- and 
infrastructure-related codes and standards. We are also working 
to enable the harmonization of codes and standards at an 
international level collaborating with the National Institute 
of Standards and Technology (NIST) and the Department of 
Transportation, as well as with the private sector. Standards 
and codes for electric vehicles must be consistent with the 
broader Smart Grid Interoperability Panel (SGIP) effort led by 
NIST.
    The Promoting Electric Vehicles Act includes several other 
significant provisions in addition to the National Plug-in 
Electric Drive Deployment Program; I will briefly comment on 
several of them here.
     The bill authorizes a R&D program focused on 
advanced batteries, electric drive components, and other 
technologies supporting the manufacture and deployment of 
electric drive vehicles and charging infrastructure. These 
priorities are aligned closely with ongoing activities in the 
Vehicle Technologies Program--specifically, our Batteries and 
Electric Drive Technology subprogram, which includes advanced 
battery R&D and advanced power electronics and electric 
machines, as well as our Vehicle and Systems Simulation and 
Testing subprogram, which includes work to examine vehicle and 
infrastructure interface issues through testing and evaluation. 
Notably, the President's FY 2012 Budget request will 
significantly broaden R&D investments in technologies like 
batteries and electric drives--including an over 30 per cent 
increase in support for vehicle technology R&D and a new Energy 
Innovation Hub devoted to improving batteries and energy 
storage for vehicles and beyond.
     The bill focuses on Federal electric vehicle 
upgrades. I note that the Administration shares your commitment 
to upgrading the federal fleet and is finalizing the 
procurement of 100 electric vehicles.
     The bill also discusses partnership with the 
private sector surrounding vehicle upgrades, an area where 
Administration policies are strong. Specifically, we recently 
announced the Clean Fleets partnership. This program is focused 
on working with private sector partnerships to help them become 
leaders in deploying advance vehicles--including electric 
vehicles--and technical assistance is a critical component of 
the program. In fact, DOE has developed a wide range of 
technical tools to help partner companies to navigate the world 
of alternative fuels and advanced vehicles. A diverse 
collection of cost calculators, interactive maps, customizable 
database searches, and mobile applications puts vital 
information and analysis at fleets' finger tips. This is just 
one example of our activities in this area--and shows how 
important we think it is to offer technical assistance.
     We also understand and appreciate the Committee's 
interest in a technical advisory committee focused on plug-in 
hybrid vehicles. We place great value in independent reviews 
and external input to our program. You may be aware that the 
National Academy of Sciences National Research Council conducts 
independent biennial reviews of both our light-duty and heavy-
duty vehicle research programs.
     With respect to the new loan guarantee authorities 
included in the bill, we are continuing to evaluate these 
proposals. At a minimum, we would want any credit assistance to 
be the most efficient and effective means of achieving policy 
goals, and therefore any new authorities should comply with 
Federal credit policies to mitigate cost and risk to the 
taxpayer.

     comments on s. 734 the advanced vehicle technology act of 2011

    While the Administration is still reviewing S. 734 and has 
no position on the bill at this time, it appears that the 
program authorized by the bill could complement several of the 
Department's current activities focused on increasing vehicle 
energy efficiency. The Vehicle Technologies Program is meeting 
the transportation challenge with an integrated portfolio of 
advanced vehicle and fuel research, development, demonstration, 
and deployment activities. We are accomplishing this work in 
collaboration with industry leaders, national laboratories, 
universities, state and local governments, and other 
stakeholders. S. 734 could further support the widespread 
commercialization of advanced vehicle and fuel technologies to 
reduce U.S. oil consumption, strengthen our economy, and reduce 
air pollution and greenhouse gas emissions. That being said, we 
suggest that the Director of the program be appointed by the 
Secretary within the Office of Vehicle Technologies itself to 
facilitate better coordination across activities with similar 
goals and work.
    Further, it also appears that Section 102 ``Sensing and 
Communications Technologies,'' would unnecessarily duplicate 
the existing research, development, and demonstration efforts 
of the Department of Transportation's National Intelligent 
Transportation Systems Program. We recommend against such 
duplicative Federal programs.
    In sum, the Department's transportation portfolio will save 
consumers money, reduce our dependence on oil, lower our 
environmental impact, and keep America on the cutting edge of 
clean energy technologies, enabling us to build a 21st century 
clean energy economy. Thank you again for the opportunity to 
discuss these issues, and I welcome any questions you may have.

                        Changes In Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 734, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                       ENERGY POLICY ACT OF 2005

                     Public Law 109-58, as amended

   AN ACT To ensure jobs for our future with secure, affordable, and 
reliable energy.

           *       *       *       *       *       *       *

                     TITLE VII--VEHICLES AND FUELS

Subtitle A--Existing Programs

           *       *       *       *       *       *       *

[SEC. 706. JOINT FLEXIBLE FUEL/HYBRID VEHICLE COMMERCIALIZATION 
                    INITIATIVE.

    [(a) Definitions.--In this section:
          [(1) Eligible entity.--The term ``eligible entity'' 
        means--
                  [(A) a for profit corporation;
                  [(B) a nonprofit corporation; or
                  [(C) an institution of higher education.
          [(2) Program.--The term ``program'' means a program 
        established under subsection (b).
    [(b) Establishment.--The Secretary shall establish a 
program to improve technologies for the commercialization of--
          [(1) a combination hybrid/flexible fuel vehicle; or
          [(2) a plug-in hybrid/flexible fuel vehicle.
    [(c) Grants.--In carrying out the program, the Secretary 
shall provide grants that give preference to proposals that--
          [(1) achieve the greatest reduction in miles per 
        gallon of petroleum fuel consumption;
          [(2) achieve not less than 250 miles per gallon of 
        petroleum fuel consumption; and
          [(3) have the greatest potential of commercialization 
        to the general public within 5 years.
    [(d) Verification.--Not later than 90 days after the date 
of enactment of this Act, the Secretary shall publish in the 
Federal Register procedures to verify--
          [(1) the hybrid/flexible fuel vehicle technologies to 
        be demonstrated; and
          [(2) that grants are administered in accordance with 
        this section.
    [(e) Report.--Not later than 260 days after the date of 
enactment of this Act, and annually thereafter, the Secretary 
shall submit to Congress a report that--
          [(1) identifies the grant recipients;
          [(2) describes the technologies to be funded under 
        the program;
          [(3) assesses the feasibility of the technologies 
        described in paragraph (2) in meeting the goals 
        described in subsection (c);
          [(4) identifies applications submitted for the 
        program that were not funded; and
          [(5) makes recommendations for Federal legislation to 
        achieve commercialization of the technology 
        demonstrated.
    [(f) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section, to remain 
available until expended--
          [(1) $3,000,000 for fiscal year 2006;
          [(2) $7,000,000 for fiscal year 2007;
          [(3) $10,000,000 for fiscal year 2008; and
          [(4) $20,000,000 for fiscal year 2009.]

           *       *       *       *       *       *       *

  Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

                        PART I--HYBRID VEHICLES

[SEC. 711. HYBRID VEHICLES.

    [The Secretary shall accelerate efforts directed toward the 
improvement of batteries and other rechargeable energy storage 
systems, power electronics, hybrid systems integration, and 
other technologies for use in hybrid vehicles.]

[SEC. 712. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES.

    [(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) Cooperation 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 for carrying out this 
section such sums as may be necessary to carry out this 
section.]

           *       *       *       *       *       *       *

TITLE IX--RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *

Subtitle A--Energy Efficiency

           *       *       *       *       *       *       *

SEC. 911. ENERGY EFFICIENCY.

    (a) In General.--
          (1) Objectives.--The Secretary shall conduct programs 
        of energy efficiency research, development, 
        demonstration, and commercial application, including 
        activities described in this part. Such programs shall 
        take into consideration the following objectives:
                  (A) Increasing the energy efficiency of 
                [vehicles,]buildings, and industrial processes.
                  (B) Reducing the demand of the United States 
                for energy, especially energy from foreign 
                sources.
                  (C) Reducing the cost of energy and making 
                the economy more efficient and competitive.
                  (D) Improving the energy security of the 
                United States.
                  (E) Reducing the environmental impact of 
                energy-related activities.
          (2) Programs.--Programs under this subtitle shall 
        include research, development, demonstration, and 
        commercial application of--
                  [(A) advanced, cost-effective technologies to 
                improve the energy efficiency and environmental 
                performance of vehicles, including--
                          [(i) hybrid and electric propulsion 
                        systems;
                          [(ii) plug-in hybrid systems;
                          [(iii) advanced combustion engines;
                          [(iv) weight and drag reduction 
                        technologies;
                          [(v) whole-vehicle design 
                        optimization; and
                          [(vi) advanced drive trains;]
                  [(B)](A) cost-effective technologies, for new 
                construction and retrofit, to improve the 
                energy efficiency and environmental performance 
                of buildings, using a whole-buildings approach, 
                including onsite renewable energy generation;
                  [(C)](B) advanced technologies to improve the 
                energy efficiency, environmental performance, 
                and process efficiency of energy-intensive and 
                waste-intensive industries;
                  [(D)](C) advanced control devices to improve 
                the energy efficiency of electric motors, 
                including those used in industrial processes, 
                heating, ventilation, and cooling; and
                  [(E)](D) technologies to improve the energy 
                efficiency of appliances and mechanical systems 
                for buildings in cold climates, including 
                combined heat and power units and increased use 
                of renewable resources, including fuel.

           *       *       *       *       *       *       *

    (c) Allocations.--From amounts authorized under subsection 
(b), the following sums are authorized:
          (1) For activities under section 16192 of this title, 
        $50,000,000 for each of fiscal years 2007 through 2009.
          (2) For activities under section 16195 of this title, 
        $7,000,000 for each of fiscal years 2007 through 2009.
          [(3) For activities under subsection (A)(2)(A)--
                  [(A) $200,000,000 for fiscal year 2007;
                  [(B) $270,000,000 for fiscal year 2008; and
                  [(C) $310,000,000 for fiscal year 2009.]
          [(4)] (3) For activities under subsection [(a)(2)(D)] 
        (a)(2)(C), $2,000,000 for each of fiscal years 2007 and 
        2008.

           *       *       *       *       *       *       *

Subtitle C--Renewable Energy

           *       *       *       *       *       *       *

[SEC. 933. LOW-COST RENEWABLE HYDROGEN AND INFRASTRUCTURE FOR VEHICLE 
                    PROPULSION.

    [The Secretary shall--
          [(1) establish a research, development, and 
        demonstration program to determine the feasibility of 
        using hydrogen propulsion in light-weight vehicles and 
        the integration of the associated hydrogen production 
        infrastructure using off-the-shelf components; and
          [(2) identify universities and institutions that--
                  [(A) have expertise in researching and 
                testing vehicles fueled by hydrogen, methane, 
                and other fuels;
                  [(B) have expertise in integrating off-the-
                shelf components to minimize cost; and
                  [(C) within 2 years can test a vehicle based 
                on an existing commercially available platform 
                with a curb weight of not less than 2,000 
                pounds before modifications, that--
                          [(i) operates solely on hydrogen;
                          [(ii) qualifies as a light-duty 
                        passenger vehicle; and
                          [(iii) uses hydrogen produced from 
                        water using only solar energy.]

           *       *       *       *       *       *       *

              ENERGY INDEPENDENCE AND SECURITY ACT OF 2007

                     Public Law 110-140, as amended

AN ACT To move the United States toward greater energy independence and 
   security, to increase the production of clean renewable fuels, to 
 protect consumers, to increase the efficiency of products, buildings, 
and vehicles, to promote research on and deploy greenhouse gas capture 
   and storage options, and to improve the energy performance of the 
Federal Government, and for other purposes.

           *       *       *       *       *       *       *

TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *

Subtitle D--Energy Storage for Transportation and Electric Power

           *       *       *       *       *       *       *

SEC. 641. ENERGY STORAGE COMPETITIVENESS.

           *       *       *       *       *       *       *

    [(j) Vehicle Energy Storage Demonstration.--
          [(1) In general.--The Secretary shall carry out a 
        program of electric drive vehicle energy storage 
        technology demonstrations.
          [(2) Consortia.--The technology demonstrations shall 
        be conducted through consortia, which may include--
                  [(A) energy storage systems manufacturers and 
                suppliers of the manufacturers;
                  [(B) electric drive vehicle manufacturers;
                  [(C) rural electric cooperatives;
                  [(D) investor owned utilities;
                  [(E) municipal and rural electric utilities;
                  [(F) State and local governments;
                  [(G) metropolitan transportation authorities; 
                and
                  [(H) institutions of higher education.]
    [(k)] (j) Secondary Applications and Disposal of Electric 
Drive Vehicle Batteries.--The Secretary shall carry out a 
program of research, development, and demonstration of--
          (1) secondary applications of energy storage devices 
        following service in electric drive vehicles; and
          (2) technologies and processes for final recycling 
        and disposal of the devices.
    [(l)] (k) Cost Sharing.--The Secretary shall carry out the 
programs established under this section in accordance with 
section 16352 of this title.
    [(m)] (l) Merit Review of Proposals.--The Secretary shall 
carry out the programs established under subsections (i), (j), 
and (k) in accordance with section 16353 of this title.
    [(n)] (m) Coordination and Nonduplication.--To the maximum 
extent practicable, the Secretary shall coordinate activities 
under this section with other programs and laboratories of the 
Department and other Federal research programs.
    [(o)] (n) Review by National Academy of Sciences.--On the 
business day that is 5 years after the date of enactment of 
this Act, the Secretary shall offer to enter into an 
arrangement with the National Academy of Sciences to assess the 
performance of the Department in carrying out this section.
    [(p)] (o) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out--
          (1) the basic research program under subsection (f) 
        $50,000,000 for each of fiscal years 2009 through 2018;
          (2) the applied research program under subsection (g) 
        $80,000,000 for each of fiscal years 2009 through 2018; 
        [and;]
          (3) the energy storage research center program under 
        subsection (h) $100,000,000 for each of fiscal years 
        2009 through 2018;
          (4) the energy storage systems demonstration program 
        under subsection (i) $30,000,000 for each of fiscal 
        years 2009 through 2018; and
          [(5) the vehicle energy storage demonstration program 
        under subsection (j) $30,000,000 for each of fiscal 
        years 2009 through 2018; and]
          [(6)] (5) the secondary applications and disposal of 
        electric drive vehicle batteries program under 
        [subsection (k)] subsection (j) $5,000,000 for each of 
        fiscal years 2009 through 2018.

           *       *       *       *       *       *       *

                                  

```