49–006 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 109–535 

TO ESTABLISH A GRANT PROGRAM WHEREBY MONEYS COLLECTED FROM 

VIOLATIONS OF THE CORPORATE AVERAGE FUEL ECONOMY PROGRAM 

ARE USED TO EXPAND INFRASTRUCTURE NECESSARY TO INCREASE 

THE AVAILABILITY OF ALTERNATIVE FUELS 

JUNE 28, 2006.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. BARTON of Texas, from the Committee on Energy and 

Commerce, submitted the following 

R E P O R T 

[To accompany H.R. 5534] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 5534) to establish a grant program whereby moneys 

collected from violations of the corporate average fuel economy program are used to expand infrastructure necessary to increase the 

availability of alternative fuels, having considered the same, report 

favorably thereon without amendment and recommend that the bill 

do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2 

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

Hearings ................................................................................................................... 2 

Committee Consideration ........................................................................................ 2 

Committee Votes ...................................................................................................... 2 

Committee Oversight Findings ............................................................................... 2 

Statement of General Performance Goals and Objectives .................................... 2 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 3 

Committee Cost Estimate ....................................................................................... 3 

Congressional Budget Office Estimate ................................................................... 3 

Federal Mandates Statement ................................................................................. 4 

Advisory Committee Statement .............................................................................. 4 

Constitutional Authority Statement ...................................................................... 4 

Applicability to Legislative Branch ........................................................................ 5 

Section-by-Section Analysis of the Legislation ...................................................... 5 

Changes in Existing Law Made by the Bill, as Reported ..................................... 5 


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PURPOSE AND SUMMARY

The purpose of H.R. 5534 is to establish a grant program whereby moneys collected from violations of the Corporate Average Fuel 

Economy program are used to expand infrastructure necessary to 

increase the availability of alternative fuels. 

BACKGROUND AND NEED FOR LEGISLATION

Today, nearly six million Americans drive flex-fuel vehicles. 

These cars are capable of running on gasoline or renewable fuels 

like E–85, which is 85 percent ethanol. Unfortunately, renewable 

fuels infrastructure has not kept pace with the number of renewable fueled cars on the road, and today only approximately 800 gas 

stations have E–85 pumps installed, which is less than 1 percent 

of all gas stations. 

With gas prices at record highs, there is great interest in reducing the country’s dependence on foreign oil by making alternative 

fuels more available to drivers. To achieve this, H.R. 5534 uses the 

penalties automakers pay for failing to meet Corporate Average 

Fuel Economy (CAFE) standards to provide grants to install alternative fuel infrastructure. 

In particular, H.R. 5534 allows independent gas stations to apply 

for targeted grants of $30,000 to be used for the installation of E– 

85 pumps and other alternative fuel infrastructure. With approximately $20 million collected from CAFE penalties annually, this 

legislation could double the number of alternative fuel pumps in 

the United States in one year. 

HEARINGS

The Committee on Energy and Commerce has not held hearings 

on the legislation. 

COMMITTEE CONSIDERATION

On Tuesday, June 20, 2006, the Committee on Energy and Commerce met in open markup session and ordered H.R. 5534 reported 

to the House, without amendment, by a voice vote, a quorum being 

present. 

COMMITTEE VOTES

There were no record votes taken in connection with ordering 

H.R. 5534 reported. A motion by Mr. Barton to order H.R. 5534 reported to the House, with amendment, was agreed to by a voice 

vote. 

COMMITTEE OVERSIGHT FINDINGS

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

of Representatives, the Committee has not held oversight or legislative hearings on this legislation. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

The goal of H.R. 5534 is to establish a grant program whereby 

moneys collected from violations of the Corporate Average Fuel 

Economy program are used to expand infrastructure necessary to 

increase the availability of alternative fuels. 


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NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

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

House of Representatives, the Committee finds that H.R. 5534, 

would result in no new or increased budget authority, entitlement 

authority, or tax expenditures or revenues. 

COMMITTEE COST ESTIMATE

The Committee adopts as its 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

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

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

JUNE 22, 2006. 

Hon. JOE BARTON, 

Chairman, Committee on Energy and Commerce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5534, a bill to establish 

a grant program whereby moneys collected from violations of the 

corporate average fuel economy program are used to expand infrastructure necessary to increase the availability of alternative fuels. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contacts are Leigh Angres and 

Megan Carroll. 

Sincerely, 

DONALD B. MARRON, Acting Director. 

Enclosure. 

H.R. 5534—A bill to establish a grant program whereby moneys collected from violations of the corporate average fuel economy program are used to expand infrastructure necessary to increase 

the availability of alternative fuels 

Summary: H.R. 5534 would establish a Department of Energy 

(DOE) grant program to support the installation of equipment at 

gas stations for the delivery of alternative fuels. CBO estimates enacting the bill would increase direct spending by $5 million in 2007 

and by $225 million over the 2007–2016 period because it would 

authorize spending without further appropriation of amounts currently collected for violations of corporate average fuel economy 

(CAFE) standards. Enacting the bill would not affect revenues. 

H.R. 5534 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA); 

the bill would benefit State, local, and tribal governments and any 

costs would be incurred voluntarily. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 5534 is shown in the following table. The costs 

of this legislation fall within budget function 270 (energy). 


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By fiscal year, in millions of dollars— 

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 

CHANGES IN DIRECT SPENDING 

Estimated Budget Authority .......... 25 25 25 25 25 25 25 25 25 25 

Estimated Outlays ......................... 5 20 25 25 25 25 25 25 25 25 

Basis of estimate: Under current law, the Department of Transportation charges penalties for automakers’ violations of CAFE 

standards. In recent years, such collections have ranged from $51 

million in 2000 to $5 million in 2003. H.R. 5534 would require that 

the penalties be transferred to a new interest-bearing fund. 

Amounts in the proposed fund would be available, without further 

appropriation, to DOE for a grant program to support the installation of equipment at gas stations for the delivery of alternative 

motor fuels. 

CBO estimates the fines that would be directed to the proposed 

fund would total $24 million annually, and interest on the balance 

of the fund would total about $1 million annually. Based on spending patterns of similar grant programs administered by DOE, CBO 

estimates enacting the bill would increase direct spending by $5 

million in 2007 and by $225 million over the 2007–2016 time period. 

Intergovernmental and private-sector impact: H.R. 5534 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA. Grants established by the bill may benefit State, local, and 

tribal governments that choose to construct or expand infrastructure to increase access to alternative fuels. Any costs they might 

incur would result from complying with conditions of federal assistance. 

Estimate prepared by: Federal Costs: Leigh Angres and Megan 

Carroll. Federal Revenues: Emily Schlect. Impact on State, Local, 

and Tribal Governments: Lisa Ramirez-Branum. Impact on the Private Sector: Craig Cammarata. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts 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

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

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 Article I, section 8, clause 

3, which grants Congress the power to regulate commerce with foreign nations, among the several States, and with the Indian tribes. 


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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. Fuel Economy Fund and Alternative Fuel Grant Program 

Section 1(a)(1) creates a Fuel Economy Fund (Fund) with 

amounts transferred to the Fund from the total amount deposited 

in the general fund of the Treasury in the preceding fiscal year 

from fines, penalties, and other moneys collected under the CAFE 

program (49 U.S.C. 32912). The Secretary of Energy (Secretary) is 

directed to invest such portion of the Fund that is not required to 

meet current withdrawals in interest bearing obligations of the 

United States. The amounts in the Fund shall be made available 

to the Secretary to carry out the grant program. 

Section 1(b) requires the Secretary to establish and carry out a 

grant program to expand the availability of alternative fuels 

through the Clean Cities Program administered through the Department of Energy. Any entity eligible for assistance through the 

Clean Cities program will be eligible for a grant under this section, 

except that no grant shall be awarded to a large, vertically integrated oil company. Grants shall not exceed $30,000, or $60,000 in 

any fiscal year. The grants under this section shall be used for the 

construction or expansion of infrastructure necessary to increase 

the availability to consumers of alternative fuels (as defined in 49 

U.S.C. 32901(a)(1)). Not more than three percent of grant funds 

may be used for administrative costs. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

This legislation does not amend any existing Federal statute. 

Æ 


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