59–006 

110TH CONGRESS REPT. 110–307 " ! HOUSE OF REPRESENTATIVES 1st Session Part 1 

TO PROMOTE ADVANCED PLUG-IN HYBRID VEHICLES 

AND VEHICLE COMPONENTS 

AUGUST 3, 2007.—Ordered to be printed 

Mr. DINGELL, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 3239] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 3239) to promote advanced plug-in hybrid vehicles 

and vehicle components, having considered the same, report favorably thereon without amendment and recommend that the bill do 

pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 1 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 3 

Subcommittee Consideration .................................................................................. 4 

Committee Consideration ........................................................................................ 4 

Committee Votes ...................................................................................................... 4 

Committee Oversight Findings ............................................................................... 7 

Statement of General Performance Goals and Objectives .................................... 7 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 7 

Earmarks and Tax and Tariff Benefits .................................................................. 7 

Committee Cost Estimate ....................................................................................... 7 

Congressional Budget Office Estimate ................................................................... 7 

Federal Mandates Statement ................................................................................. 7 

Advisory Committee Statement .............................................................................. 7 

Constitutional Authority Statement ...................................................................... 8 

Applicability to Legislative Branch ........................................................................ 8 

Section-by-Section Analysis of the Legislation ...................................................... 8 

Changes in Existing Law Made by the Bill, as Reported ..................................... 8 

PURPOSE AND SUMMARY

The purpose of H.R. 3239 is to encourage the domestic development and production of advanced technology vehicles and components. It also includes programs to develop the next generation of 

vehicle batteries and promote plug-in hybrid vehicles. 


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The bill directs the Secretary of Energy to establish a program 

to provide guarantees of loans for the construction of facilities for 

the manufacture of advanced vehicle batteries and battery systems 

that are developed and produced in the United States. 

The bill amends Section 712 of the Energy Policy Act of 2005 to 

expand that section’s application to components of hybrid batteries 

and vehicles, and gives priority to manufacturing facilities that 

have recently ceased or will soon cease operation. 

The bill directs the Secretary of Energy to establish a program 

to make grants to owners of domestic motor vehicle manufacturing 

or production facilities for the production of plug-in hybrid electric 

motors or conversion modules to be used as electricity storage capacity for utilities. 

The bill amends section 301 of the Energy Policy Act of 1992 to 

create incentives for the use of medium and heavy duty hybrid vehicles in Federal and State fleets. 

The bill amends Section 508 of the Energy Policy Act of 1992 to 

include electric drive. 

The bill directs the Secretary of Energy to establish a revolving 

loan guarantee program to provide loans to eligible entities for the 

conduct of qualified electric transportation projects. 

Finally, the bill directs the Secretary of Transportation, in consultation with the Secretary of Energy and appropriate Federal 

agencies and interested stakeholders in the public, private, and 

non-profit sectors, to study and report to Congress on the benefits 

of plug-in hybrid electric drive vehicles and electric drive transportation. 

BACKGROUND AND NEED FOR LEGISLATION

Numerous sections in title 42, United States Code grant the Secretary of Energy and other Executive branch officials the ability to 

create grant programs to speed the development of new technologies. Additionally, many statutes direct Executive agencies to 

study and report to Congress on the costs and benefits of the implementation of new technologies currently under development. 

At a March 14, 2007, hearing of the Subcommittee on Energy 

and Air Quality, Ron Gettelfinger, President of the International 

Union, United Automobiles, Aerospace and Agricultural Implement 

Workers of America (UAW), stated in his testimony that existing 

tax incentives for the purchase of hybrid electric vehicles could 

have the effect of transferring production of vehicles and vehicle 

components purchased in the United States overseas, because these 

incentives are consumer-oriented and focus only on the finished 

product, not differentiating between domestic and foreign development and production. 

At a legislative hearing of the Subcommittee on Energy and Air 

Quality held on June 7, 2007, Alan Reuther, Legislative Director 

of the UAW, testified in support of the provisions in the legislation 

creating incentives for domestic development and production of 

components of advanced technology hybrid vehicles, citing benefits 

in energy security, greenhouse gas emissions, and domestic job creation. At the same hearing, Dave McCurdy, President and CEO of 

the Alliance of Automobile Manufacturers, stated that the Alliance 

also supported setting aside funds for research and development of 

these technologies. 


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HEARINGS

There were three oversight hearings and one legislative hearing 

held by the Subcommittee on Energy and Air Quality, Committee 

on Energy and Commerce, in connection with the bill reported by 

the Committee. 

The Subcommittee on Energy and Air Quality held a hearing entitled, ‘‘Climate Change and Energy Security: Perspectives from the 

Automobile Industry,’’ on Wednesday, March 14, 2007. The Subcommittee received testimony from the following witnesses: Mr. 

Ron Gettelfinger, President, International Union, United Automobile, Aerospace and Agricultural Implement Workers of America; 

Mr. Rick Wagoner, Chairman and Chief Executive Officer, General 

Motor Corporation; Mr. Jim Press, President and Chief Operating 

Officer, Toyota Motor North America; Mr. Alan R. Mulally, President and Chief Executive Officer, Ford Motor Company; Mr. Thomas W. LaSorda, Chief Executive Officer and President, Chrysler 

Group of DaimlerChrysler. 

The Subcommittee on Energy and Air Quality held a hearing entitled, ‘‘Alternative Transportation Fuels: An Overview,’’ on 

Wednesday, April 18, 2007. The Subcommittee received testimony 

from the following witnesses: Mr. Brian Foody, Chief Executive Officer, Iogen Corporation; Mr. Donald W. Maley, Jr., Vice President, 

Leucadia International Corporation; Mr. John Ward, Vice President, Headwaters Incorporated; Dr. Alexander E. Farrell, Assistant 

Professor of Energy and Resources, Director, Transportation Sustainability Research Center, University of California Berkley; Mr. 

Phil Lambert, Executive Director, National Ethanol Vehicle Coalition; and Mr. Scott Hughes, Director, Government Affairs, National 

Biodiesel Board. 

The Subcommittee on Energy and Air Quality held a hearing entitled, ‘‘Alternative Fuels: Current Status, Proposals for New 

Standards, and Related Infrastructure Issues,’’ on Tuesday, May 8, 

2007. The Subcommittee received testimony from the following witnesses: Mr. Robert J. Meyers, Associate Assistant Administrator, 

Environmental Protection Agency; The Honorable Alexander A. 

Karsner, Assistant Secretary, Energy Efficiency and Renewable 

Energy, U.S. Department of Energy; Mr. Robert Greco, Group Director, Downstream and Industry Operations, American Petroleum; 

Mr. Warren I. Mitchell, Chairman of the Board, Clean Energy; 

Daniel A. Lashof, Ph.D., Climate Center Science Director, National 

Resources Defense Council; Mr. Bob Dinneen, President, Renewable Fuels Association; Mr. Paul D. Reid, President and CEO, Reid 

Petroleum Corporation; Mr. Charles T. Drevna, Executive Vice 

President, National Petrochemical and Refiners Association; and 

Ms. Elizabeth A. Lowery, Vice President for Environment, Energy 

and Safety, General Motors Public Policy Center. 

The Subcommittee on Energy and Air Quality held a hearing entitled ‘‘Legislative Hearing on Discussion Draft Concerning Alternative Fuels, Infrastructure, and Vehicles,’’ on Thursday, June 7, 

2007. The Subcommittee received testimony from the following witnesses: Mr. Bob Dinneen, President and CEO, Renewable Fuels Association; Mr. Charles T. Drevna, Executive Vice President, National Petrochemical and Refiners Association; Mr. Phillip J. 

Lampert, Executive Director, National Ethanol Vehicle Coalition; 


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Ms. Sonja Hubbard, Chief Executive Officer, E-Z Mart Stores, Inc.; 

Mr. John DeCicco, Senior Automotive Fellow, Environmental Defense; Mr. Alan Reuther, Legislative Director, International Union, 

United Automobile, Aerospace and Agricultural Implement Workers of America; The Honorable Dave McCurdy, President and CEO, 

Alliance of Automobile Manufacturers; The Honorable Alexander A. 

Karsner, Assistant Secretary, Energy Efficiency and Renewable 

Energy, U.S. Department of Energy; Mr. Robert J. Meyers, Acting 

Assistant Administrator, Office of Air and Radiation, Environmental Protection Agency. 

SUBCOMMITTEE CONSIDERATION

Prior to the introduction of H.R. 3239, its text was considered in 

the Committee as a Committee Print. 

On Wednesday, June 20, 2007, the Subcommittee on Energy and 

Air Quality met in open markup session and considered a Committee Print to promote advanced plug-in hybrid vehicles and vehicle technologies. The Committee Print was forwarded favorably to 

the full Committee, amended, by a voice vote. The Committee Print 

forwarded by the Subcommittee was subsequently designated Committee Print #5 for full Committee consideration. 

COMMITTEE CONSIDERATION

On Thursday, June 28, 2007, the full Committee met in open 

markup session and considered the Committee Print, which was 

then ordered favorably reported to the House, amended, by a voice 

vote. On July 31, 2007, a clean bill, H.R. 3239, was introduced with 

the approved language of the Committee Print, and was referred 

to the full Committee to be reported to the House without further 

consideration. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. Mr. Dingell moved 

that the Committee favorably report the Committee Print, amended, to the House. The motion to report the Committee Print favorably to the House was agreed to by a voice vote. The following are 

the recorded votes taken on amendments, including the names of 

those Members voting for and against. 


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COMMITTEE OVERSIGHT FINDINGS

Regarding clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the oversight findings of the Committee on the 

bill are reflected in this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

The goals and objectives of H.R. 3239 are to promote advanced 

plug-in hybrid vehicles and vehicle components through various 

means, including establishing a loan guarantee program for the 

construction of facilities to manufacture advanced vehicle batteries 

and battery systems, a grant program to support the domestic development and production of plug-in hybrid technology vehicles, 

and a grant program to encourage widespread use of plug-in hybrids. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

Regarding compliance with clause 3(c)(2) of rule XIII of the Rules 

of the House of Representatives, the Committee finds that H.R. 

3239 would result in no new or increased budget authority, entitlement authority, or tax expenditures or revenues. 

EARMARKS AND TAX AND TARIFF BENEFITS

Regarding compliance with clause 9 of rule XXI of the Rules of 

the House of Representatives, H.R. 3239 does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits 

as defined in clause 9(d), 9(e), or 9(f) of rule XXI. 

COMMITEE COSTS ESTIMATE

The Committee will adopt as it own the cost estimate prepared 

by the Director of the Congressional Budget Office pursuant to section 402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Regarding clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, a cost estimate on H.R. 3239 by the Congressional Budget Office pursuant to section 402 of the Congressional 

Budget Act of 1974 was not available as of the time of the filing 

of this report by the Committee. 

FEDERAL MANDATES STATEMENT

The Committee will adopt as its own the estimate of Federal 

mandates prepared by the Director of the Congressional Budget Office pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

Regarding section 5(b) of the Federal Advisory Committee Act, 

the bill does not establish any advisory committee. 


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CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that the Constitutional authority for this legislation is provided in the provisions of Article 

I, section 8, clause 1, that relate to expending funds to provide for 

the general welfare of the United States. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Advanced Battery Loan Guarantee Program.—Directs 

the Secretary of Energy to establish a program to provide guarantees of loans for the construction of facilities for the manufacture 

of advanced vehicle batteries and battery systems that are developed and produced in the United States. 

Section 2. Domestic Manufacturing Conversion Grant Program.—

Amends Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 

16062) to expand that section’s application to components of hybrid 

batteries and vehicles, and gives priority to manufacturing facilities that have recently ceased or will soon cease operation. 

Section 3. Plug-in Hybrid Vehicles Program.—

Section 4. Plug-in Hybrid Demonstration Vehicles.—Directs the 

Secretary of Energy to establish a program to make grants to owners of domestic motor vehicle manufacturing or production facilities 

for the production of plug-in hybrid electric motors or conversion 

modules to be used as electricity storage capacity for utilities. 

Section 5. Incentive for Federal and State Fleets for Medium and 

Heavy Duty Hybrids.—Amends section 301 of the Energy Policy Act 

of 1992 (42 U.S.C. 13211) to create incentives for the use of medium and heavy duty hybrid vehicles in Federal and State fleets. 

Section 6. Inclusion of Electric Drive in EPACT.—Amends Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) to include electric drive in relevant provisions of the Energy Policy Act 

of 1992. 

Section 8. Studying the Benefits of Plug-in Hybrid Electric Drive 

Vehicles and Electric Driver Transportation.—Directs the Secretary 

of Transportation, in consultation with the Secretary of Energy and 

appropriate Federal agencies and interested stakeholders in the 

public, private and non-profit sectors, to study and report to Congress on the benefits of plug-in hybrid electric drive vehicles and 

electric drive transportation. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as 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): 


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ENERGY POLICY ACT OF 2005 

* * * * * * * 

TITLE VII—VEHICLES AND FUELS 

* * * * * * * 

Subtitle B—Hybrid Vehicles, Advanced 

Vehicles, and Fuel Cell Buses 

PART 1—HYBRID VEHICLES 

* * * * * * * 

SEC. 712. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES. 

(a) PROGRAM.—The Secretary shall establish a program to encourage domestic production and sales of efficient hybrid and advanced diesel vehicles and components thereof. 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, and advanced diesel vehicles. 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. 

ø(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the Secretary for carrying out this section 

such sums as may be necessary for each of the fiscal years 2006 

through 2015.¿ 

(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 such 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. 

* * * * * * * 

ENERGY POLICY ACT OF 1992 

* * * * * * * 

TITLE III—ALTERNATIVE FUELS— 

GENERAL 

SEC. 301. DEFINITIONS. 

For purposes of this title, title IV, and title V (unless otherwise 

specified)— (1) * * * 

* * * * * * * 


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(3) the term ‘‘alternative fueled vehicle’’ means a dedicated 

vehicle øor a dual fueled vehicle¿, a dual fueled vehicle, or a 

medium or heavy duty vehicle that is a hybrid vehicle; 

* * * * * * * 

(11) the term ‘‘hybrid vehicle’’ means a vehicle powered both 

by a diesel or gasoline engine and an electric motor or hydraulic energy storage device that is recharged as the vehicle operates; 

ø(11)¿ (12) the term ‘‘light duty motor vehicle’’ means a light 

duty truck or light duty vehicle, as such terms are defined 

under section 216(7) of the Clean Air Act (42 U.S.C. 7550(7)), 

of less than or equal to 8,500 pounds gross vehicle weight rating; 

(13) the term ‘‘medium or heavy duty vehicle’’ means a vehicle 

that—(A) in the case of a medium duty vehicle, has a gross vehicle weight rating of more than 8,500 pounds but not more 

than 14,000 pounds; and 

(B) in the case of a heavy duty vehicle, has a gross vehicle weight rating of more than 14,000 pounds; 

ø(12)¿ (14) the term ‘‘motor fuel’’ means any substance suitable as a fuel for a motor vehicle; 

ø(13)¿ (15) the term ‘‘motor vehicle’’ has the meaning given 

such term under section 216(2) of the Clean Air Act (42 U.S.C. 

7550(2)); and 

ø(14)¿ (16) the term ‘‘replacement fuel’’ means the portion of 

any motor fuel that is methanol, ethanol, or other alcohols, 

natural gas, liquefied petroleum gas, hydrogen, coal derived 

liquid fuels, fuels (other than alcohol) derived from biological 

materials, electricity (including electricity from solar energy), 

ethers, or any other fuel the Secretary determines, by rule, is 

substantially not petroleum and would yield substantial energy 

security benefits and substantial environmental benefits. 

* * * * * * * 

TITLE V—AVAILABILITY AND USE OF 

REPLACEMENT FUELS, ALTERNATIVE 

FUELS, AND ALTERNATIVE FUELED 

PRIVATE VEHICLES 

* * * * * * * 

SEC. 508. CREDITS. 

(a) IN GENERAL.—øThe Secretary¿ (1) The Secretary shall allocate a credit to a fleet or covered person that is required to acquire 

an alternative fueled vehicle under this title, if that fleet or person 

acquires an alternative fueled vehicle in excess of the number that 

fleet or person is required to acquire under this title or acquires 

an alternative fueled vehicle before the date that fleet or person is 

required to acquire an alternative fueled vehicle under such title. 

(2) Not later than January 31, 2009, the Secretary shall allocate 

credit in an amount to be determined by the Secretary for acquisition of—


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(A) a hybrid electric vehicle; 

(B) a plug-in hybrid electric vehicle; 

(C) a fuel cell electric vehicle; 

(D) a neighborhood electric vehicle; or 

(E) a medium-duty or heavy-duty electric, hybrid electric, hybrid hydraulic, or plug-in hybrid electric vehicle. 

* * * * * * * 

(e) DEFINITIONS.—In this section: 

(1) FUEL CELL ELECTRIC VEHICLE.—The term ‘‘fuel cell electric 

vehicle’’ means an on-road or nonroad vehicle that uses a fuel 

cell (as defined in section 803 of the Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of 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-DUTY OR HEAVY-DUTY ELECTRIC, HYBRID ELECTRIC, OR PLUG-IN HYBRID ELECTRIC VEHICLE.—The term ‘‘medium-duty or heavy-duty electric, hybrid electric, or plug-in hybrid electric vehicle’’ is an electric, hybrid electric, or plug-in hybrid electric motor vehicle greater than 8,501 pounds gross vehicle rating. 

(4) NEIGHBORHOOD ELECTRIC VEHICLE.—The term ‘‘neighborhood electric vehicle’’ means a 4-wheeled on-road or nonroad vehicle, with a top attainable speed in 1 mile of more than 20 

mph and not more than 25 mph on a paved level surface, that 

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 HYBRID ELECTRIC VEHICLE.—The term ‘‘plug-in 

hybrid electric vehicle’’ means a light-duty, medium-duty, or 

heavy-duty on-road or nonroad vehicle that is propelled by any 

combination of—

(A) an electric motor and on-board, rechargeable energy 

storage system capable of operating the vehicle in intermittent or continuous all-electric mode and which is rechargeable using an off-board source of electricity; and 

(B) an internal combustion engine or heat engine using 

any combustible fuel. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section such sums as are necessary 

for each of fiscal years 2008 through 2013. 

* * * * * * * 

Æ 


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