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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2025 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 2025

  To promote the national security and stability of the United States 
economy by reducing the dependence of the United States on oil through 
    the use of alternative fuels and new technology, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 16, 2005

 Mr. Bayh (for himself, Mr. Brownback, Mr. Lieberman, Mr. Coleman, Mr. 
 Graham, Mr. Salazar, Mr. Sessions, Mr. Nelson of Florida, Mr. Lugar, 
and Mr. Obama) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To promote the national security and stability of the United States 
economy by reducing the dependence of the United States on oil through 
    the use of alternative fuels and new technology, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Vehicle and Fuel 
Choices for American Security Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
               TITLE I--OIL SAVINGS PLAN AND REQUIREMENTS

Sec. 101. Oil savings target and action plan.
Sec. 102. Standards and requirements.
Sec. 103. Initial evaluation.
Sec. 104. Review and update of action plan.
Sec. 105. Baseline and analysis requirements.
         TITLE II--FUEL EFFICIENT VEHICLES FOR THE 21ST CENTURY

Sec. 201. Tire efficiency program.
Sec. 202. Reduction of school bus idling.
Sec. 203. Fuel efficiency for heavy duty trucks.
Sec. 204. Near-term vehicle technology program.
Sec. 205. Lightweight materials research and development.
Sec. 206. Hybrid and advanced diesel vehicles.
Sec. 207. Advanced technology motor vehicles manufacturing credit.
Sec. 208. Consumer incentives to purchase advanced technology vehicles.
Sec. 209. Federal fleet requirements.
Sec. 210. Tax incentives for private fleets.
Sec. 211. Reducing incentives to guzzle gas.
Sec. 212. Increasing the efficiency of motor vehicles.
              TITLE III--FUEL CHOICES FOR THE 21ST CENTURY

Sec. 301. Increase in alternative fuel vehicle refueling property 
                            credit.
Sec. 302. Use of CAFE penalties to build alternative fueling 
                            infrastructure.
Sec. 303. Minimum quantity of renewable fuel derived from cellulosic 
                            biomass.
Sec. 304. Minimum quantity of renewable fuel derived from sugar.
Sec. 305. Bioenergy research and development.
Sec. 306. Production incentives for cellulosic biofuels.
Sec. 307. Low-interest loan and grant program for retail delivery of E-
                            85 fuel.
Sec. 308. Transit-Oriented Development Corridors.
          TITLE IV--NATIONWIDE ENERGY SECURITY MEDIA CAMPAIGN

Sec. 401. Nationwide media campaign to decrease oil consumption.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) the United States is dangerously dependent on oil;
            (2) that dependence threatens the national security, 
        weakens the economy, and harms the environment of the United 
        States;
            (3) the United States currently imports nearly 60 percent 
        of oil needed in the United States, and that percentage is 
        expected to grow to almost 70 percent by 2025 if no actions are 
        taken;
            (4) approximately 2,500,000 barrels of oil per day are 
        imported from countries in the Persian Gulf region;
            (5) dependence on foreign oil has led to strategic 
        partnerships with some regimes that do not share the democratic 
        values of the United States;
            (6) terrorists have identified oil as a strategic 
        vulnerability and have increased attacks against oil 
        infrastructure worldwide;
            (7) oil imports comprise nearly 30 percent of the 
        dangerously high United States trade deficit;
            (8) it is technically feasible to achieve oil savings of 
        more than 2,500,000 barrels per day by 2017 and 7,000,000 
        barrels per day by 2026;
            (9) those goals can be achieved by establishing a set of 
        flexible policies, including--
                    (A) increasing the gasoline-efficiency of cars, 
                trucks, tires, and oil;
                    (B) providing economic incentives for companies and 
                consumers to purchase fuel-efficient vehicles;
                    (C) encouraging the use of transit and the 
                reduction of truck idling; and
                    (D) increasing production and commercialization of 
                alternative liquid fuels;
            (10) technology available as of the date of enactment of 
        this Act (including popular hybrid-electric vehicle models, the 
        sales of which in the United States increased 173 percent in 
        the first 5 months of 2005 as compared with the same period in 
        2004) make an oil savings plan eminently achievable;
            (11) achieving those goals will benefit consumers and 
        businesses through lower fuel bills and reduction in world oil 
        prices;
            (12) achieving those goals will help protect the economy of 
        the United States from high and volatile oil prices; and
            (13) it is urgent, essential, and feasible to implement an 
        action plan to achieve oil savings as soon as practicable 
        because any delay in initiating action will--
                    (A) make achieving necessary oil savings more 
                difficult and expensive; and
                    (B) increase the risks to the national security, 
                economy, and environment of the United States.
    (b) Purposes.--The purposes of this Act are--
            (1) to accelerate market penetration of electric drive and 
        alternative motor vehicles;
            (2) to enable the accelerated market penetration of 
        efficient technologies and alternative fuels without adverse 
        impact on air quality while maintaining a policy of fuel 
        neutrality, so as to allow market forces to elect the 
        technologies and fuels that are consumer-friendly, safe, 
        environmentally-sound, and economic;
            (3) to provide time-limited financial incentives to 
        encourage production and consumer purchase of oil saving 
        technologies and fuels nationwide; and
            (4) to promote a nationwide diversity of motor vehicle 
        fuels and advanced motor vehicle technology, including advanced 
        lean burn technology, hybrid technology, flexible fuel motor 
        vehicles, alternatively fueled motor vehicles, and other oil 
        saving technologies.

               TITLE I--OIL SAVINGS PLAN AND REQUIREMENTS

SEC. 101. OIL SAVINGS TARGET AND ACTION PLAN.

    Not later than 270 days after the date of enactment of this Act, 
the Director of the Office of Management and Budget (referred to in 
this title as the ``Director'') shall publish in the Federal Register 
an action plan consisting of--
            (1) a list of requirements proposed or to be proposed 
        pursuant to section 102 that are authorized to be issued under 
        law in effect on the date of enactment of this Act, and this 
        Act, that will be sufficient, when taken together, to save from 
        the baseline determined under section 105--
                    (A) 2,500,000 barrels of oil per day on average 
                during calendar year 2016;
                    (B) 7,000,000 barrels of oil per day on average 
                during calendar year 2026; and
                    (C) 10,000,000 barrels per day on average during 
                calendar year 2031; and
            (2) a Federal Government-wide analysis of--
                    (A) the expected oil savings from the baseline to 
                be accomplished by each requirement; and
                    (B) whether all such requirements, taken together, 
                will achieve the oil savings specified in this section.

SEC. 102. STANDARDS AND REQUIREMENTS.

    (a) In General.--On or before the date of publication of the action 
plan under section 101, the Secretary of Energy, the Secretary of 
Transportation, the Secretary of Defense, the Secretary of Agriculture, 
the Administrator of the Environmental Protection Agency, and the head 
of any other agency the President determines appropriate shall each 
propose, or issue a notice of intent to propose, regulations 
establishing each standard or other requirement listed in the action 
plan that is under the jurisdiction of the respective agency using 
authorities described in subsection (b).
    (b) Authorities.--The head of each agency described in subsection 
(a) shall use to carry out this section--
            (1) any authority in existence on the date of enactment of 
        this Act (including regulations); and
            (2) any new authority provided under this Act (including an 
        amendment made by this Act).
    (c) Final Regulations.--Not later than 18 months after the date of 
enactment of this Act, the head of each agency described in subsection 
(a) shall promulgate final versions of the regulations required under 
this section.
    (d) Agency Analyses.--Each proposed and final regulation 
promulgated under this section shall--
            (1) be designed to achieve at least the oil savings 
        resulting from the regulation under the action plan published 
        under section 101; and
            (2) be accompanied by an analysis by the applicable agency 
        describing the manner in which the regulation will promote the 
        achievement of the oil savings from the baseline determined 
        under section 105.

SEC. 103. INITIAL EVALUATION.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Director shall publish in the Federal Register a 
Federal Government-wide analysis of the oil savings achieved from the 
baseline established under section 105.
    (b) Inadequate Oil Savings.--If the oil savings are less than the 
targets established under section 101, simultaneously with the analysis 
required under subsection (a)--
            (1) the Director shall publish a revised action plan that 
        is adequate to achieve the targets; and
            (2) the Secretary of Energy, the Secretary of 
        Transportation, and the Administrator shall propose new or 
        revised regulations under subsections (a), (b), and (c), 
        respectively, of section 102.
    (c) Final Regulations.--Not later than 180 days after the date on 
which regulations are proposed under subsection (b)(2), the Secretary 
of Energy, the Secretary of Transportation, and the Administrator shall 
promulgate final versions of those regulations.

SEC. 104. REVIEW AND UPDATE OF ACTION PLAN.

    (a) Review.--Not later than January 1, 2011, and every 3 years 
thereafter, the Director shall submit to Congress, and publish, a 
report that--
            (1) evaluates the progress achieved in implementing the oil 
        savings targets established under section 101;
            (2) analyzes the expected oil savings under the standards 
        and requirements established under this Act and the amendments 
        made by this Act; and
            (3)(A) analyzes the potential to achieve oil savings that 
        are in addition to the savings required by section 101; and
            (B) if the President determines that it is in the national 
        interest, establishes a higher oil savings target for calendar 
        year 2017 or any subsequent calendar year.
    (b) Inadequate Oil Savings.--If the oil savings are less than the 
targets established under section 101, simultaneously with the report 
required under subsection (a)--
            (1) the Director shall publish a revised action plan that 
        is adequate to achieve the targets; and
            (2) the Secretary of Energy, the Secretary of 
        Transportation, and the Administrator shall propose new or 
        revised regulations under subsections (a), (b), and (c), 
        respectively, of section 102.
    (c) Final Regulations.--Not later than 180 days after the date on 
which regulations are proposed under subsection (b)(2), the Secretary 
of Energy, the Secretary of Transportation, and the Administrator shall 
promulgate final versions of those regulations.

SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS.

    In performing the analyses and promulgating proposed or final 
regulations to establish standards and other requirements necessary to 
achieve the oil savings required by this title, the Secretary of 
Energy, the Secretary of Transportation, the Secretary of Defense, the 
Secretary of Agriculture, the Administrator of the Environmental 
Protection Agency, and the head of any other agency the President 
determines to be appropriate shall--
            (1) determine oil savings as the projected reduction in oil 
        consumption from the baseline established by the reference case 
        contained in the report of the Energy Information 
        Administration entitled ``Annual Energy Outlook 2005'';
            (2) determine the oil savings projections required on an 
        annual basis for each of calendar years 2009 through 2026; and
            (3) account for any overlap among the standards and other 
        requirements to ensure that the projected oil savings from all 
        the promulgated standards and requirements, taken together, are 
        as accurate as practicable.

         TITLE II--FUEL EFFICIENT VEHICLES FOR THE 21ST CENTURY

SEC. 201. TIRE EFFICIENCY PROGRAM.

    (a) Standards for Tires Manufactured for Interstate Commerce.--
Section 30123 of title 49, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in the first sentence, by striking ``The 
                Secretary'' and inserting the following:
            ``(1) Uniform quality grading system.--
                    ``(A) In general.--The Secretary'';
                    (B) in the second sentence, by striking ``The 
                Secretary'' and inserting the following:
            ``(2) Nomenclature and marketing practices.--The 
        Secretary'';
                    (C) in the third sentence, by striking ``A tire 
                standard'' and inserting the following:
            ``(3) Effect of standards and regulations.--A tire 
        standard''; and
                    (D) in paragraph (1), as designated by subparagraph 
                (A), by adding at the end the following:
                    ``(B) Inclusion.--The grading system established 
                pursuant to subparagraph (A) shall include standards 
                for rating the fuel efficiency of tires designed for 
                use on passenger cars and light trucks.''; and
            (2) by adding at the end the following:
    ``(d) National Tire Efficiency Program.--
            ``(1) Definition.--In this subsection, the term `fuel 
        economy', with respect to a tire, means the extent to which the 
        tire contributes to the fuel economy of the motor vehicle on 
        which the tire is mounted.
            ``(2) Program.--The Secretary shall develop and carry out a 
        national tire fuel efficiency program for tires designed for 
        use on passenger cars and light trucks.
            ``(3) Requirements.--Not later than March 31, 2008, the 
        Secretary shall issue regulations, which establish--
                    ``(A) policies and procedures for testing and 
                labeling tires for fuel economy to enable tire buyers 
                to make informed purchasing decisions about the fuel 
                economy of tires;
                    ``(B) policies and procedures to promote the 
                purchase of energy efficient replacement tires, 
                including purchase incentives, website listings on the 
                Internet, printed fuel economy guide booklets, and 
                mandatory requirements for tire retailers to provide 
                tire buyers with fuel efficiency information on tires; 
                and
                    ``(C) minimum fuel economy standards for tires.
            ``(4) Minimum fuel economy standards.--In promulgating 
        minimum fuel economy standards for tires, the Secretary shall 
        design standards that--
                    ``(A) ensure, in conjunction with the requirements 
                under paragraph (3)(B), that the average fuel economy 
                of replacement tires is not less than the average fuel 
                economy of tires sold as original equipment;
                    ``(B) secure the maximum technically feasible and 
                cost-effective fuel savings;
                    ``(C) do not adversely affect tire safety;
                    ``(D) incorporate the results from--
                            ``(i) laboratory testing; and
                            ``(ii) to the extent appropriate and 
                        available, on-road fleet testing programs 
                        conducted by manufacturers; and
                    ``(E) do not adversely affect efforts to manage 
                scrap tires.
            ``(5) Applicability.--The policies, procedures, and 
        standards developed under paragraph (3) shall apply to all tire 
        types and models regulated under the uniform tire quality 
        grading standards in section 575.104 of title 49, Code of 
        Federal Regulations (or a successor regulation).
            ``(6) Review.--
                    ``(A) In general.--Not less than once every 3 
                years, the Secretary shall--
                            ``(i) review the minimum fuel economy 
                        standards in effect for tires under this 
                        subsection; and
                            ``(ii) subject to subparagraph (B), revise 
                        the standards as necessary to ensure compliance 
                        with standards described in paragraph (4).
                    ``(B) Limitation.--The Secretary may not reduce the 
                average fuel economy standards applicable to 
                replacement tires.
            ``(7) No preemption of state law.--Nothing in this section 
        shall be construed to preempt any provision of State law 
        relating to higher fuel economy standards applicable to 
        replacement tires designed for use on passenger cars and light 
        trucks.
            ``(8) Exceptions.--Nothing in this section shall apply to--
                    ``(A) a tire or group of tires with the same stock 
                keeping unit, plant, and year, for which the volume of 
                tires produced or imported is less than 15,000 
                annually;
                    ``(B) a deep tread, winter-type snow tire, space-
                saver tire, or temporary use spare tire;
                    ``(C) a tire with a normal rim diameter of 12 
                inches or less;
                    ``(D) a motorcycle tire; or
                    ``(E) a tire manufactured specifically for use in 
                an off-road motorized recreational vehicle.''.
    (b) Conforming Amendment.--Section 30103(b)(1) of title 49, United 
States Code, is amended by striking ``When'' and inserting ``Except as 
provided in section 30123(d), if''.
    (c) Time for Implementation.--Beginning not later than March 31, 
2008, the Secretary of Transportation shall administer the national 
tire fuel efficiency program established under section 30123(d) of 
title 49, United States Code, in accordance with the policies, 
procedures, and standards developed under section 30123(d)(3) of such 
title.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated, for each of fiscal years 2007 through 2011, such sums as 
may be necessary to carry out section 30123(d) of title 49, United 
States Code, as added by subsection (a).

SEC. 202. REDUCTION OF SCHOOL BUS IDLING.

    (a) Statement of Policy.--Congress encourages each local 
educational agency (as defined in section 9101(26) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7801(26))) that receives 
Federal funds under the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6301 et seq.) to develop a policy to reduce the incidence of 
school bus idling at schools while picking up and unloading students.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator of the Environmental Protection 
Agency, working in coordination with the Secretary of Education, 
$5,000,000 for each of fiscal years 2007 through 2012 for use in 
educating States and local education agencies about--
            (1) benefits of reducing school bus idling; and
            (2) ways in which school bus idling may be reduced.

SEC. 203. FUEL EFFICIENCY FOR HEAVY DUTY TRUCKS.

    Part C of subtitle VI of title 49, United States Code, is amended 
by inserting after chapter 329 the following:

        ``CHAPTER 330--HEAVY DUTY VEHICLE FUEL ECONOMY STANDARDS

        ``Chapter 330--Heavy Duty Vehicle Fuel Economy Standards

``Sec.
``33001. Purpose and policy.
``33002. Definition.
``33003. Testing and assessment.
``33004. Standards.
``33005. Authorization of appropriations.
``Sec. 33001. Purpose and policy
    ``The purpose of this chapter is to reduce petroleum consumption by 
heavy duty motor vehicles.
``Sec. 33002. Definition
    ``In this chapter, the term `heavy duty motor vehicle'--
            ``(1) means a vehicle having a gross vehicle weight rating 
        of at least 10,000 pounds that is driven or drawn by mechanical 
        power and manufactured primarily for use on public streets, 
        roads, and highways; and
            ``(2) does not include a vehicle operated only on a rail 
        line.
``Sec. 33003. Testing and assessment
    ``(a) General Requirements.--The Administrator of the Environmental 
Protection Agency (referred to in this section as the `Administrator') 
shall develop and coordinate a national testing and assessment program 
to--
            ``(1) determine the fuel economy of heavy duty vehicles; 
        and
            ``(2) assess the fuel efficiency attainable through 
        available technology.
    ``(b) Testing.--The Administrator shall--
            ``(1) design a National testing program to assess the fuel 
        economy of heavy duty vehicles (based on the program for light 
        duty vehicles); and
            ``(2) implement the program described in paragraph (1) not 
        later than 18 months after the date of enactment of this 
        chapter.
    ``(c) Assessment.--The Administrator shall consult with the 
Secretary of Transportation on the assessment of available technologies 
to enhance the fuel efficiency of heavy duty vehicles to ensure that 
vehicle use and needs are considered appropriately in the assessment.
    ``(d) Reporting.--The Administrator shall--
            ``(1) not later than 2 years after the date of enactment of 
        this chapter, submit a report to Congress regarding the results 
        of the assessment of available technologies to improve the fuel 
        efficiency of heavy duty vehicles.
            ``(2) submit a report to Congress, at least biannually, 
        that addresses the fuel economy of heavy duty vehicles; and
``Sec. 33004. Standards
    ``(a) General Requirements.--Not later than 18 months after 
completing the testing and assessments under section 33003, the 
Secretary of Transportation shall prescribe average heavy duty vehicle 
fuel economy standards. Each standard shall be the maximum feasible 
average fuel economy level that the Secretary decides that 
manufacturers can achieve in that model year. The Secretary may 
prescribe separate standards for different classes of heavy duty motor 
vehicles. The standards for each model year shall be completed not 
later than 18 months before the beginning of each model year.
    ``(b) Considerations and Consultation.--In determining maximum 
feasible average fuel economy, the Secretary shall consider--
            ``(1) relevant available heavy duty motor vehicle fuel 
        consumption information;
            ``(2) technological feasibility;
            ``(3) economic practicability;
            ``(4) the desirability of reducing United States dependence 
        on oil;
            ``(5) the effects of average fuel economy standards on 
        vehicle safety;
            ``(6) the effects of average fuel economy standards on 
        levels of employment and competitiveness of the heavy truck 
        manufacturing industry ; and
            ``(7) the extent to which the standard will carry out the 
        purpose described in section 33001.
    ``(c) Cooperation.--The Secretary may advise, assist, and cooperate 
with departments, agencies, and instrumentalities of the United States 
Government, States, and other public and private agencies in developing 
fuel economy standards for heavy duty motor vehicles.
    ``(d) 5-Year Plan for Testing Standards.--The Secretary shall 
establish, periodically review, and continually update a 5-year plan 
for testing heavy duty motor vehicle fuel economy standards prescribed 
under this chapter. In developing and establishing testing priorities, 
the Secretary shall consider factors the Secretary considers 
appropriate, consistent with the purpose described in section 33001 and 
the Secretary's other duties and powers under this chapter.
``Sec. 33005. Authorization of appropriations
    ``There are authorized to be appropriated, for each of fiscal years 
2007 through 2011, such sums as may be necessary to carry out this 
chapter.''.

SEC. 204. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.

    (a) Purposes.--The purposes of this section are--
            (1) to enable and promote, in partnership with industry, 
        comprehensive development, demonstration, and commercialization 
        of a wide range of electric drive components, systems, and 
        vehicles using diverse electric drive transportation 
        technologies;
            (2) to make critical public investments to help private 
        industry, institutions of higher education, National 
        Laboratories, and research institutions to expand innovation, 
        industrial growth, and jobs in the United States;
            (3) to expand the availability of the existing electric 
        infrastructure for fueling light duty transportation and other 
        on-road and nonroad vehicles that are using petroleum and are 
        mobile sources of emissions--
                    (A) including the more than 3,000,000 reported 
                units (such as electric forklifts, golf carts, and 
                similar nonroad vehicles) in use on the date of 
                enactment of this Act; and
                    (B) with the goal of enhancing the energy security 
                of the United States, reduce dependence on imported 
                oil, and reduce emissions through the expansion of grid 
                supported mobility;
            (4) to accelerate the widespread commercialization of all 
        types of electric drive vehicle technology into all sizes and 
        applications of vehicles, including commercialization of plug-
        in hybrid electric vehicles and plug-in hybrid fuel cell 
        vehicles; and
            (5) to improve the energy efficiency of and reduce the 
        petroleum use in transportation.
    (b) Definitions.--In this section:
            (1) Battery.--The term ``battery'' means an energy storage 
        device used in an on-road or nonroad vehicle powered in whole 
        or in part using an off-board or on-board source of 
        electricity.
            (2) Electric drive transportation technology.--The term 
        ``electric drive transportation technology'' means--
                    (A) vehicles that use an electric motor for all or 
                part of their motive power and that may or may not use 
                off-board electricity, including battery electric 
                vehicles, fuel cell vehicles, engine dominant hybrid 
                electric vehicles, plug-in hybrid electric vehicles, 
                plug-in hybrid fuel cell vehicles, and electric rail; 
                or
                    (B) equipment relating to transportation or mobile 
                sources of air pollution that use an electric motor to 
                replace an internal combustion engine for all or part 
                of the work of the equipment, including corded electric 
                equipment linked to transportation or mobile sources of 
                air pollution.
            (3) Engine dominant hybrid electric vehicle.--The term 
        ``engine dominant hybrid electric vehicle'' means an on-road or 
        nonroad vehicle that--
                    (A) is propelled by an internal combustion engine 
                or heat engine using--
                            (i) any combustible fuel;
                            (ii) an on-board, rechargeable storage 
                        device; and
                    (B) has no means of using an off-board source of 
                electricity.
            (4) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
        means an on-road or nonroad vehicle that uses a fuel cell (as 
        defined in section 3 of the Spark M. Matsunaga Hydrogen 
        Research, Development, and Demonstration Act of 1990).
            (5) Nonroad vehicle.--The term ``nonroad vehicle'' has the 
        meaning given the term in section 216 of the Clean Air Act (42 
        U.S.C. 7550).
            (6) Plug-in hybrid electric vehicle.--The term ``plug-in 
        hybrid electric vehicle'' means an on-road or nonroad vehicle 
        that is propelled by an internal combustion engine or heat 
        engine using--
                    (A) any combustible fuel;
                    (B) an on-board, rechargeable storage device; and
                    (C) a means of using an off-board source of 
                electricity.
            (7) Plug-in hybrid fuel cell vehicle.--The term ``plug-in 
        hybrid fuel cell vehicle'' means a fuel cell vehicle with a 
        battery powered by an off-board source of electricity.
    (c) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for electric 
drive transportation technology, including--
            (1) high capacity, high efficiency batteries;
            (2) high efficiency on-board and off-board charging 
        components;
            (3) high power drive train systems for passenger and 
        commercial vehicles and for nonroad equipment;
            (4) control system development and power train development 
        and integration for plug-in hybrid electric vehicles, plug-in 
        hybrid fuel cell vehicles, and engine dominant hybrid electric 
        vehicles, including--
                    (A) development of efficient cooling systems;
                    (B) analysis and development of control systems 
                that minimize the emissions profile when clean diesel 
                engines are part of a plug-in hybrid drive system; and
                    (C) development of different control systems that 
                optimize for different goals, including--
                            (i) battery life;
                            (ii) reduction of petroleum consumption; 
                        and
                            (iii) green house gas reduction;
            (5) nanomaterial technology applied to both battery and 
        fuel cell systems;
            (6) large-scale demonstrations, testing, and evaluation of 
        plug-in hybrid electric vehicles in different applications with 
        different batteries and control systems, including--
                    (A) military applications;
                    (B) mass market passenger and light-duty truck 
                applications;
                    (C) private fleet applications; and
                    (D) medium- and heavy-duty applications;
            (7) a nationwide education strategy for electric drive 
        transportation technologies providing secondary and high school 
        teaching materials and support for university education focused 
        on electric drive system and component engineering;
            (8) development, in consultation with the Administrator of 
        the Environmental Protection Agency, of procedures for testing 
        and certification of criteria pollutants, fuel economy, and 
        petroleum use for light-, medium-, and heavy-duty vehicle 
        applications, including consideration of--
                    (A) the vehicle and fuel as a system, not just an 
                engine; and
                    (B) nightly off-board charging; and
            (9) advancement of battery and corded electric 
        transportation technologies in mobile source applications by--
                    (A) improvement in battery, drive train, and 
                control system technologies; and
                    (B) working with industry and the Administrator of 
                the Environmental Protection Agency to--
                            (i) understand and inventory markets; and
                            (ii) identify and implement methods of 
                        removing barriers for existing and emerging 
                        applications.
    (d) Goals.--The goals of the electric drive transportation 
technology program established under subsection (c) shall be to 
develop, in partnership with industry and institutions of higher 
education, projects that focus on--
            (1) innovative electric drive technology developed in the 
        United States;
            (2) growth of employment in the United States in electric 
        drive design and manufacturing;
            (3) validation of the plug-in hybrid potential through 
        fleet demonstrations; and
            (4) acceleration of fuel cell commercialization through 
        comprehensive development and commercialization of the electric 
        drive technology systems that are the foundational technology 
        of the fuel cell vehicle system.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $300,000,000 for each of fiscal 
years 2007 through 2012.

SEC. 205. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary of Energy shall establish a research and 
development program to determine ways in which--
            (1) the weight of vehicles may be reduced to improve fuel 
        efficiency without compromising passenger safety; and
            (2) the cost of lightweight materials (such as steel alloys 
        and carbon fibers) required for the construction of lighter-
        weight vehicles may be reduced.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $60,000,000 for each of fiscal 
years 2007 through 2012.

SEC. 206. HYBRID AND ADVANCED DIESEL VEHICLES.

    (a) Hybrid Vehicles.--The Energy Policy Act of 2005 is amended by 
striking section 711 (42 U.S.C. 16061) and inserting the following:

``SEC. 711. HYBRID VEHICLES.

    ``(a) Definitions.--In this section:
            ``(1) Cost.--The term `cost' has the meaning given the term 
        `cost of a loan guarantee' within the meaning of section 
        502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a(5)(C)).
            ``(2) Eligible project.--The term `eligible project' means 
        a project to--
                    ``(A) improve hybrid technologies under subsection 
                (b); or
                    ``(B) encourage domestic production of efficient 
                hybrid and advanced diesel vehicles under section 
                712(a).
            ``(3) Guarantee.--
                    ``(A) In general.--The term `guarantee' has the 
                meaning given the term `loan guarantee' in section 502 
                of the Federal Credit Reform Act of 1990 (2 U.S.C. 
                661a).
                    ``(B) Inclusion.--The term `guarantee' includes a 
                loan guarantee commitment (as defined in section 502 of 
                the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
            ``(4) Hybrid technology.--The term `hybrid technology' 
        means a battery or other rechargeable energy storage system, 
        power electronic, hybrid systems integration, and any other 
        technology for use in hybrid vehicles.
            ``(5) Obligation.--The term `obligation' means the loan or 
        other debt obligation that is guaranteed under this section.
    ``(b) Authorization.--The Secretary shall accelerate efforts 
directed toward the improvement of hybrid technologies, including 
through the provision of loan guarantees under subsection (c).
    ``(c) Loan Guarantees.--
            ``(1) In general.--The Secretary shall make guarantees 
        under this section for eligible projects on such terms and 
        conditions as the Secretary, in consultation with the Secretary 
        of the Treasury, determines to be appropriate.
            ``(2) Specific appropriation or contribution.--No guarantee 
        shall be made unless--
                    ``(A) an appropriation for the cost has been made; 
                or
                    ``(B) the Secretary has received from the borrower 
                a payment in full for the cost of the obligation and 
                deposited the payment into the Treasury.
            ``(3) Amount.--Unless otherwise provided by law, a 
        guarantee by the Secretary shall not exceed an amount equal to 
        80 percent of the project cost of the hybrid technology that is 
        the subject of the guarantee, as estimated at the time at which 
        the guarantee is issued.
            ``(4) Repayment.--
                    ``(A) In general.--No guarantee shall be made 
                unless the Secretary determines that there is a 
                reasonable prospect of repayment of the principal and 
                interest on the obligation by the borrower.
                    ``(B) Amount.--No guarantee shall be made unless 
                the Secretary determines that the amount of the 
                obligation (when combined with amounts available to the 
                borrower from other sources) will be sufficient to 
                carry out the project.
                    ``(C) Subordination.--The obligation shall be 
                subject to the condition that the obligation is not 
                subordinate to other financing.
            ``(5) Interest rate.--An obligation shall bear interest at 
        a rate that does not exceed a level that the Secretary 
        determines appropriate, taking into account the prevailing rate 
        of interest in the private sector for similar loans and risks.
            ``(6) Term.--The term of an obligation shall require full 
        repayment over a period not to exceed the lesser of--
                    ``(A) 30 years; or
                    ``(B) 90 percent of the projected useful life of 
                the physical asset to be financed by the obligation (as 
                determined by the Secretary).
            ``(7) Defaults.--
                    ``(A) Payment by secretary.--
                            ``(i) In general.--If a borrower defaults 
                        on the obligation (as defined in regulations 
                        promulgated by the Secretary and specified in 
                        the guarantee contract), the holder of the 
                        guarantee shall have the right to demand 
                        payment of the unpaid amount from the 
                        Secretary.
                            ``(ii) Payment required.--Within such 
                        period as may be specified in the guarantee or 
                        related agreements, the Secretary shall pay to 
                        the holder of the guarantee the unpaid interest 
                        on, and unpaid principal of the obligation as 
                        to which the borrower has defaulted, unless the 
                        Secretary finds that--
                                    ``(I) there was no default by the 
                                borrower in the payment of interest or 
                                principal; or
                                    ``(II) the default has been 
                                remedied.
                            ``(iii) Forbearance.--Nothing in this 
                        subsection precludes any forbearance by the 
                        holder of the obligation for the benefit of the 
                        borrower that may be agreed upon by the parties 
                        to the obligation and approved by the 
                        Secretary.
                    ``(B) Subrogation.--
                            ``(i) In general.--If the Secretary makes a 
                        payment under subparagraph (A), the Secretary 
                        shall be subrogated to the rights of the 
                        recipient of the payment as specified in the 
                        guarantee or related agreements including, 
                        where appropriate, the authority 
                        (notwithstanding any other provision of law) 
                        to--
                                    ``(I) complete, maintain, operate, 
                                lease, or otherwise dispose of any 
                                property acquired pursuant to the 
                                guarantee or related agreements; or
                                    ``(II) permit the borrower, 
                                pursuant to an agreement with the 
                                Secretary, to continue to pursue the 
                                purposes of the eligible project, as 
                                the Secretary determines to be in the 
                                public interest.
                            ``(ii) Superiority of rights.--The rights 
                        of the Secretary, with respect to any property 
                        acquired pursuant to a guarantee or related 
                        agreement, shall be superior to the rights of 
                        any other person with respect to the property.
                            ``(iii) Terms and conditions.--A guarantee 
                        agreement shall include such detailed terms and 
                        conditions as the Secretary determines 
                        appropriate to--
                                    ``(I) protect the interests of the 
                                United States in the case of default; 
                                and
                                    ``(II) have available all the 
                                patents and technology necessary for 
                                any person selected, including the 
                                Secretary, to complete and operate the 
                                eligible project.
                    ``(C) Payment of principal and interest by 
                secretary.--With respect to any obligation guaranteed 
                under this section, the Secretary may enter into a 
                contract to pay, and pay, holders of the obligation, 
                for and on behalf of the borrower, from funds 
                appropriated for that purpose, the principal and 
                interest payments that become due and payable on the 
                unpaid balance of the obligation if the Secretary finds 
                that--
                            ``(i)(I) the borrower is unable to meet the 
                        payments and is not in default;
                            ``(II) it is in the public interest to 
                        permit the borrower to continue to pursue the 
                        purposes of the eligible project; and
                            ``(III) the probable net benefit to the 
                        Federal Government in paying the principal and 
                        interest will be greater than the benefit that 
                        would result in the event of a default;
                            ``(ii) the amount of the payment that the 
                        Secretary is authorized to pay will be no 
                        greater than the amount of principal and 
                        interest that the borrower is obligated to pay 
                        under the agreement being guaranteed; and
                            ``(iii) the borrower agrees to reimburse 
                        the Secretary for the payment (including 
                        interest) on terms and conditions that are 
                        satisfactory to the Secretary.
                    ``(D) Action by attorney general.--
                            ``(i) Notification.--If the borrower 
                        defaults on an obligation, the Secretary shall 
                        notify the Attorney General of the default.
                            ``(ii) Recovery.--On receipt of 
                        notification, the Attorney General shall take 
                        such action as the Attorney General determines 
                        to be appropriate to recover the unpaid 
                        principal and interest due from--
                                    ``(I) such assets of the defaulting 
                                borrower as are associated with the 
                                obligation; or
                                    ``(II) any other security pledged 
                                to secure the obligation.
            ``(8) Fees.--
                    ``(A) In general.--The Secretary shall charge and 
                collect fees for guarantees in amounts the Secretary 
                determines are sufficient to cover applicable 
                administrative expenses.
                    ``(B) Availability.--Fees collected under this 
                paragraph shall--
                            ``(i) be deposited by the Secretary into 
                        the Treasury; and
                            ``(ii) remain available until expended, 
                        subject to such other conditions as are 
                        contained in annual appropriations Acts.
            ``(9) Records; audits.--
                    ``(A) In general.--A recipient of a guarantee shall 
                keep such records and other pertinent documents as the 
                Secretary shall prescribe by regulation, including such 
                records as the Secretary may require to facilitate an 
                effective audit.
                    ``(B) Access.--The Secretary and the Comptroller 
                General of the United States, or their duly authorized 
                representatives, shall have access, for the purpose of 
                audit, to the records and other pertinent documents.
            ``(10) Full faith and credit.--The full faith and credit of 
        the United States is pledged to the payment of all guarantees 
        issued under this section with respect to principal and 
        interest.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to provide the cost of 
guarantees under this section.''.
    (b) Efficient Hybrid and Advanced Diesel Vehicles.--Section 712(a) 
of the Energy Policy Act of 2005 (42 U.S.C. 16062(a)) is amended in the 
second sentence by striking ``grants to automobile manufacturers'' and 
inserting ``grants and the provision of loan guarantees under section 
711(c) to automobile manufacturers and suppliers''.

SEC. 207. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.) is amended by adding at the end the following new section:

``SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

    ``(a) Credit Allowed.--There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount equal to 
35 percent of so much of the qualified investment of an eligible 
taxpayer for such taxable year as does not exceed $75,000,000.
    ``(b) Qualified Investment.--For purposes of this section--
            ``(1) In general.--The qualified investment for any taxable 
        year is equal to the incremental costs incurred during such 
        taxable year--
                    ``(A) to re-equip, expand, or establish any 
                manufacturing facility of the eligible taxpayer to 
                produce advanced technology motor vehicles or to 
                produce eligible components,
                    ``(B) for engineering integration of such vehicles 
                and components as described in subsection (d), and
                    ``(C) for research and development related to 
                advanced technology motor vehicles and eligible 
                components.
            ``(2) Attribution rules.--In the event a facility of the 
        eligible taxpayer produces both advanced technology motor 
        vehicles and conventional motor vehicles, or eligible and non-
        eligible components, only the qualified investment attributable 
        to production of advanced technology motor vehicles and 
        eligible components shall be taken into account.
    ``(c) Advanced Technology Motor Vehicles and Eligible Components.--
For purposes of this section--
            ``(1) Advanced technology motor vehicle.--The term 
        `advanced technology motor vehicle' means--
                    ``(A) any new advanced lean burn technology motor 
                vehicle (as defined in section 30B(c)(3)), or
                    ``(B) any new qualified hybrid motor vehicle (as 
                defined in section 30B(d)(2)(A) and determined without 
                regard to any gross vehicle weight rating).
            ``(2) Eligible components.--The term `eligible component' 
        means any component inherent to any advanced technology motor 
        vehicle, including--
                    ``(A) with respect to any gasoline or diesel-
                electric new qualified hybrid motor vehicle--
                            ``(i) electric motor or generator,
                            ``(ii) power split device,
                            ``(iii) power control unit,
                            ``(iv) power controls,
                            ``(v) integrated starter generator, or
                            ``(vi) battery,
                    ``(B) with respect to any hydraulic new qualified 
                hybrid motor vehicle--
                            ``(i) hydraulic accumulator vessel,
                            ``(ii) hydraulic pump, or
                            ``(iii) hydraulic pump-motor assembly,
                    ``(C) with respect to any new advanced lean burn 
                technology motor vehicle--
                            ``(i) diesel engine,
                            ``(ii) turbocharger,
                            ``(iii) fuel injection system, or
                            ``(iv) after-treatment system, such as a 
                        particle filter or NOx absorber, and
                    ``(D) with respect to any advanced technology motor 
                vehicle, any other component submitted for approval by 
                the Secretary.
    ``(d) Engineering Integration Costs.--For purposes of subsection 
(b)(1)(B), costs for engineering integration are costs incurred prior 
to the market introduction of advanced technology vehicles for 
engineering tasks related to--
            ``(1) establishing functional, structural, and performance 
        requirements for component and subsystems to meet overall 
        vehicle objectives for a specific application,
            ``(2) designing interfaces for components and subsystems 
        with mating systems within a specific vehicle application,
            ``(3) designing cost effective, efficient, and reliable 
        manufacturing processes to produce components and subsystems 
        for a specific vehicle application, and
            ``(4) validating functionality and performance of 
        components and subsystems for a specific vehicle application.
    ``(e) Eligible Taxpayer.--For purposes of this section, the term 
`eligible taxpayer' means any taxpayer if more than 50 percent of its 
gross receipts for the taxable year is derived from the manufacture of 
motor vehicles or any component parts of such vehicles.
    ``(f) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for the taxable year shall not exceed the excess of--
            ``(1) the sum of--
                    ``(A) the regular tax liability (as defined in 
                section 26(b)) for such taxable year, plus
                    ``(B) the tax imposed by section 55 for such 
                taxable year and any prior taxable year beginning after 
                1986 and not taken into account under section 53 for 
                any prior taxable year, over
            ``(2) the sum of the credits allowable under subpart A and 
        sections 27, 30, and 30B for the taxable year.
    ``(g) Reduction in Basis.--For purposes of this subtitle, if a 
credit is allowed under this section for any expenditure with respect 
to any property, the increase in the basis of such property which would 
(but for this paragraph) result from such expenditure shall be reduced 
by the amount of the credit so allowed.
    ``(h) No Double Benefit.--
            ``(1) Coordination with other deductions and credits.--
        Except as provided in paragraph (2), the amount of any 
        deduction or other credit allowable under this chapter for any 
        cost taken into account in determining the amount of the credit 
        under subsection (a) shall be reduced by the amount of such 
        credit attributable to such cost.
            ``(2) Research and development costs.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any amount described in subsection 
                (b)(1)(C) taken into account in determining the amount 
                of the credit under subsection (a) for any taxable year 
                shall not be taken into account for purposes of 
                determining the credit under section 41 for such 
                taxable year.
                    ``(B) Costs taken into account in determining base 
                period research expenses.--Any amounts described in 
                subsection (b)(1)(C) taken into account in determining 
                the amount of the credit under subsection (a) for any 
                taxable year which are qualified research expenses 
                (within the meaning of section 41(b)) shall be taken 
                into account in determining base period research 
                expenses for purposes of applying section 41 to 
                subsequent taxable years.
    ``(i) Business Carryovers Allowed.--If the credit allowable under 
subsection (a) for a taxable year exceeds the limitation under 
subsection (f) for such taxable year, such excess (to the extent of the 
credit allowable with respect to property subject to the allowance for 
depreciation) shall be allowed as a credit carryback and carryforward 
under rules similar to the rules of section 39.
    ``(j) Special Rules.--For purposes of this section, rules similar 
to the rules of paragraphs (4) and (5) of section 179A(e) and 
paragraphs (1) and (2) of section 41(f) shall apply
    ``(k) Election Not to Take Credit.--No credit shall be allowed 
under subsection (a) for any property if the taxpayer elects not to 
have this section apply to such property.
    ``(l) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.
    ``(m) Termination.--This section shall not apply to any qualified 
investment after December 31, 2015.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' at the end of paragraph (35), by 
        striking the period at the end of paragraph (36) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(37) to the extent provided in section 30D(g).''.
            (2) Section 6501(m) of such Code is amended by inserting 
        ``30D(k),'' after ``30C(e)(5),''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 30C the following new item:

``Sec. 30D. Advanced technology motor vehicles manufacturing credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts incurred in taxable years beginning after December 31, 
2005.

SEC. 208. CONSUMER INCENTIVES TO PURCHASE ADVANCED TECHNOLOGY VEHICLES.

    (a) Elimination on Number of New Qualified Hybrid and Advanced Lean 
Burn Technology Vehicles Eligible for Alternative Motor Vehicle 
Credit.--
            (1) In general.--Section 30D of the Internal Revenue Code 
        of 1986 is amended by striking subsection (f) and by 
        redesignating subsections (g) through (j) as subsections (f) 
        through (i), respectively.
            (2) Conforming amendments.--
                    (A) Paragraphs (4) and (6) of section 30B(h) of the 
                Internal Revenue Code of 1986 are each amended amended 
                by striking ``(determined without regard to subsection 
                (g))'' and inserting ``determined without regard to 
                subsection (f))''.
                    (B) Section 38(b)(25) of such Code is amended by 
                striking ``section 30B(g)(1)'' and inserting ``section 
                30B(f)(1)''.
                    (C) Section 55(c)(2) of such Code is amended by 
                striking ``section 30B(g)(2)'' and inserting ``section 
                30B(f)(2)''.
                    (D) Section 1016(a)(36) of such Code is amended by 
                striking ``section 30B(h)(4)'' and inserting ``section 
                30B(g)(4)''.
                    (E) Section 6501(m) of such Code is amended by 
                striking ``section 30B(h)(9)'' and inserting ``section 
                30B(g)(9)''.
    (b) Extension of Alternative Vehicle Credit for New Qualified 
Hybrid Motor Vehicles.--Paragraph (3) of section 30B(i) of the Internal 
Revenue Code of 1986 (as redesignated by subsection (a)) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2005, in taxable 
years ending after such date.

SEC. 209. FEDERAL FLEET REQUIREMENTS.

    (a) Regulations.--
            (1) In general.--The Secretary of Energy shall issue 
        regulations for Federal fleets subject to the Energy Policy Act 
        of 1992 (42 U.S.C. 13201 et seq.) requiring that not later than 
        fiscal year 2016 each Federal agency achieve at least a 30 
        percent reduction in petroleum consumption, as calculated from 
        the baseline established by the Secretary for fiscal year 1999.
            (2) Requirement.--Not later than fiscal year 2016, of the 
        Federal vehicles required to be alternative fueled vehicles 
        under title V of the Energy Policy Act of 1992 (42 U.S.C. 13251 
        et seq.), at least 30 percent shall be hybrid motor vehicles 
        (including plug-in hybrid motor vehicles) or new advanced lean 
        burn technology motor vehicles (as defined in section 30B(c)(3) 
        of the Internal Revenue Code of 1986).
    (b) Inclusion of Electric Drive in Energy Policy Act of 1992.--
Section 508(a) of the Energy Policy Act of 1992 (42 U.S.C. 13258(a)) is 
amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following:
    ``(2) Not later than January 31, 2007, the Secretary shall--
            ``(A) allocate credit in an amount to be determined by the 
        Secretary for--
                    ``(i) acquisition of--
                            ``(I) a light-duty hybrid electric vehicle;
                            ``(II) a plug-in hybrid electric vehicle;
                            ``(III) a fuel cell electric vehicle;
                            ``(IV) a medium- or heavy-duty hybrid 
                        electric vehicle;
                            ``(V) a neighborhood electric vehicle; or
                            ``(VI) a medium- or heavy-duty dedicated 
                        vehicle; and
                    ``(ii) investment in qualified alternative fuel 
                infrastructure or nonroad equipment, as determined by 
                the Secretary; and
            ``(B) allocate more than 1, but not to exceed 5, credits 
        for investment in an emerging technology relating to any 
        vehicle described in subparagraph (A) to encourage--
                    ``(i) a reduction in petroleum demand;
                    ``(ii) technological advancement; and
                    ``(iii) environmental safety.''.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section (including the amendments made 
by subsection (b)) $10,000,000 for the period of fiscal years 2007 
through 2012.

SEC. 210. TAX INCENTIVES FOR PRIVATE FLEETS.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 48B the following new section:

``SEC. 48C. FUEL-EFFICIENT FLEET CREDIT.

    ``(a) General Rule.--For purposes of section 46, the fuel-efficient 
fleet credit for any taxable year is 15 percent of the qualified fuel-
efficient vehicle investment amount of an eligible taxpayer for such 
taxable year.
    ``(b) Vehicle Purchase Requirement.--In the case of any eligible 
taxpayer which places less than 10 qualified fuel-efficient vehicles in 
service during the taxable year, the qualified fuel-efficient vehicle 
investment amount shall be zero.
    ``(c) Qualified Fuel-Efficient Vehicle Investment Amount.--For 
purposes of this section--
            ``(1) In general.--The term `qualified fuel-efficient 
        vehicle investment amount' means the basis of any qualified 
        fuel-efficient vehicle placed in service by an eligible 
        taxpayer during the taxable year.
            ``(2) Qualified fuel-efficient vehicle.--The term 
        `qualified fuel-efficient vehicle' means an automobile which 
        has a fuel economy which is at least 125 percent greater than 
        the average fuel economy standard for an automobile of the same 
        class and model year.
            ``(3) Other terms.--The terms `automobile', `average fuel 
        economy standard', `fuel economy', and `model year' have the 
        meanings given to such terms under section 32901 of title 49, 
        United States Code.
    ``(d) Eligible Taxpayer.--The term `eligible taxpayer' means, with 
respect to any taxable year, a taxpayer who owns a fleet of 100 or more 
vehicles which are used in the trade or business of the taxpayer on the 
first day of such taxable year.
    ``(e) Termination.--This section shall not apply to any vehicle 
placed in service after December 31, 2010.''.
    (b) Credit Treated as Part of Investment Credit.--Section 46 of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of paragraph (3), by striking the period at the end of paragraph (4) 
and inserting ``, and'', and by adding at the end the following new 
paragraph:
            ``(5) the fuel-efficient fleet credit.''.
    (c) Conforming Amendments.--
            (1) Section 49(a)(1)(C) of the Internal Revenue Code of 
        1986 is amended by striking ``and'' at the end of clause (iii), 
        by striking the period at the end of clause (iv) and inserting 
        ``, and'', and by adding at the end the following new clause:
                            ``(v) the basis of any qualified fuel-
                        efficient vehicle which is taken into account 
                        under section 48C.''.
            (2) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48 the following new item:

        ``Sec. 48C. Fuel-efficient fleet credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2005, in taxable years ending after 
such date, under rules similar to the rules of section 48(m) of the 
Internal Revenue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 1990).

SEC. 211. REDUCING INCENTIVES TO GUZZLE GAS.

    (a) Inclusion of Heavy Vehicles in Limitation on Depreciation of 
Certain Luxury Automobiles.--
            (1) In general.--Section 280F(d)(5)(A) of the Internal 
        Revenue Code of 1986 (defining passenger automobile) is 
        amended--
                    (A) by striking clause (ii) and inserting the 
                following new clause:
                            ``(ii)(I) which is rated at 6,000 pounds 
                        unloaded gross vehicle weight or less, or
                            ``(II) which is rated at more than 6,000 
                        pounds but not more than 14,000 pounds gross 
                        vehicle weight.'',
                    (B) by striking ``clause (ii)'' in the second 
                sentence and inserting ``clause (ii)(I)''.
            (2) Exception for vehicles used in farming business.--
        Section 280F(d)(5)(B) of such Code (relating to exception for 
        certain vehicles) is amended by striking ``and'' at the end of 
        clause (ii), by redesignating clause (iii) as clause (iv), and 
        by inserting after clause (ii) the following new clause:
                            ``(iii) any vehicle used in a farming 
                        business (as defined in section 263A(e)(4), 
                        and''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after the date of the 
        enactment of this Act.
    (b) Updated Depreciation Deduction Limits.--
            (1) In general.--Subparagraph (A) of section 280F(a)(1) of 
        the Internal Revenue Code of 1986 (relating to limitation on 
        amount of depreciation for luxury automobiles) is amended to 
        read as follows:
                    ``(I) Limitation.--The amount of the depreciation 
                deduction for any taxable year shall not exceed for any 
                passenger automobile--
                            ``(i) for the 1st taxable year in the 
                        recovery period--
                                    ``(I) described in subsection 
                                (d)(5)(A)(ii)(I), $4,000,
                                    ``(II) described in the second 
                                sentence of subsection (d)(5)(A), 
                                $5,000, and
                                    ``(III) described in subsection 
                                (d)(5)(A)(ii)(II), $6,000,
                            ``(ii) for the 2nd taxable year in the 
                        recovery period--
                                    ``(I) described in subsection 
                                (d)(5)(A)(ii)(I), $6,400,
                                    ``(II) described in the second 
                                sentence of subsection (d)(5)(A), 
                                $8,000, and
                                    ``(III) described in subsection 
                                (d)(5)(A)(ii)(II), $9,600,
                            ``(iii) for the 3rd taxable year in the 
                        recovery period--
                                    ``(I) described in subsection 
                                (d)(5)(A)(ii)(I), $3,850,
                                    ``(II) described in the second 
                                sentence of subsection (d)(5)(A), 
                                $4,800, and
                                    ``(III) described in subsection 
                                (d)(5)(A)(ii)(II), $5,775, and
                            ``(iv) for each succeeding taxable year in 
                        the recovery period--
                                    ``(I) described in subsection 
                                (d)(5)(A)(ii)(I), $2,325,
                                    ``(II) described in the second 
                                sentence of subsection (d)(5)(A), 
                                $2,900, and
                                    ``(III) described in subsection 
                                (d)(5)(A)(ii)(II), $3,475.''.
            (2) Years after recovery period.--Section 280F(a)(1)(B)(ii) 
        of such Code is amended to read as follows:
                            ``(ii) Limitation.--The amount treated as 
                        an expense under clause (i) for any taxable 
                        year shall not exceed for any passenger 
                        automobile--
                                    ``(I) described in subsection 
                                (d)(5)(A)(ii)(I), $2,325,
                                    ``(II) described in the second 
                                sentence of subsection (d)(5)(A), 
                                $2,900, and
                                    ``(III) described in subsection 
                                (d)(5)(A)(ii)(II), $3,475.''.
            (3) Inflation adjustment.--Section 280F(d)(7) of such Code 
        (relating to automobile price inflation adjustment) is 
        amended--
                    (A) by striking ``after 1988'' in subparagraph (A) 
                and inserting ``after 2006'', and
                    (B) by striking subparagraph (B) and inserting the 
                following new subparagraph:
                    ``(B) Automobile price inflation adjustment.--For 
                purposes of this paragraph--
                            ``(i) In general.--The automobile price 
                        inflation adjustment for any calendar year is 
                        the percentage (if any) by which--
                                    ``(I) the average wage index for 
                                the preceding calendar year, exceeds
                                    ``(II) the average wage index for 
                                2005.
                            ``(ii) Average wage index.--The term 
                        `average wage index' means the average wage 
                        index published by the Social Security 
                        Administration.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after the date of the 
        enactment of this Act.
    (c) Expensing Limitation for Farm Vehicles.--
            (1) In general.--Paragraph (6) of section 179(b) of the 
        Internal Revenue Code of 1986 (relating to limitations) is 
        amended to read as follows:
            ``(6) Limitation on cost taken into account for farm 
        vehicles.--The cost of any vehicle described in section 
        280F(d)(5)(B)(iii) for any taxable year which may be taken into 
        account under this section shall not exceed $30,000.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to property placed in service after the date of the 
        enactment of this Act.

SEC. 212. INCREASING THE EFFICIENCY OF MOTOR VEHICLES.

    (a) Definitions.--In this section:
            (1) Alternative fuel.--The term ``alternative fuel'' has 
        the meaning given the term in section 32901(a) of title 49, 
        United States Code.
            (2) E85.--The term ``E85'' means a fuel blend containing 85 
        percent ethanol and 15 percent gasoline or diesel by volume.
            (3) Flexible fuel motor vehicle.--The term ``flexible fuel 
        motor vehicle'' means a light duty motor vehicle warrantied by 
        the manufacturer of the vehicle to operate on any combination 
        of gasoline, E85, and M85.
            (4) Hybrid motor vehicle.--The term ``hybrid motor 
        vehicle'' means a new qualified hybrid motor vehicle (as 
        defined in section 30B(d)(3) of the Internal Revenue Code of 
        1986) that achieves at least 125 percent of the model year 2002 
        city fuel economy.
            (5) Light-duty motor vehicle.--The term ``light-duty motor 
        vehicle'' means, as defined in regulations promulgated by the 
        Administrator of the Environmental Protection Agency in effect 
        on the date of enactment of this Act--
                    (A) a light-duty truck; or
                    (B) a light-duty vehicle.
            (6) M85.--The term ``M85'' means a fuel blend containing 85 
        percent methanol and 15 percent gasoline or diesel by volume.
            (7) Plug-in hybrid motor vehicle.--The term ``plug-in 
        hybrid electric vehicle'' means a hybrid motor vehicle that--
                    (A) has an onboard, rechargeable storage device 
                capable of propelling the vehicle solely by electricity 
                for at least 10 miles; and
                    (B) achieves at least 125 percent of the model year 
                2002 city fuel economy.
            (8) Qualified motor vehicle.--The term ``qualified motor 
        vehicle'' means--
                    (A) a new advanced lean burn technology motor 
                vehicle (as defined in section 30B(c)(3) of the 
                Internal Revenue Code of 1986) that achieves at least 
                125 percent of the model year 2002 city fuel economy;
                    (B) an alternative fueled automobile (as defined in 
                section 32901(a) of title 49, United States Code);
                    (C) a flexible fuel motor vehicle;
                    (D) a new qualified fuel cell motor vehicle (as 
                defined in section 30B(b)(3) of the Internal Revenue 
                Code of 1986);
                    (E) a hybrid motor vehicle;
                    (F) a plug-in hybrid motor vehicle; and
                    (G) any other appropriate motor vehicle that uses 
                substantially new technology and achieve at least 175 
                percent of the model year 2002 city fuel economy, as 
                determined by the Secretary of Transportation, by 
                regulation.
    (b) Requirements.--
            (1) Model year 2012.--Not less than 10 percent of light-
        duty motor vehicles manufactured for model year 2012 and sold 
        in the United States shall be qualified motor vehicles.
            (2) Model year 2013.--Not less than 20 percent of light-
        duty motor vehicles manufactured for model year 2013 and sold 
        in the United States shall be qualified motor vehicles.
            (3) Model year 2014.--Not less than 30 percent of light-
        duty motor vehicles manufactured for model year 2014 and sold 
        in the United States shall be qualified motor vehicles.
            (4) Model year 2015.--Not less than 40 percent of light-
        duty motor vehicles manufactured for model year 2015 shall be 
        qualified motor vehicles.
            (5) Model year 2016.--Not less than 50 percent of light-
        duty motor vehicles manufactured for model year 2016 shall be 
        qualified motor vehicles.
            (6) Model years 2017 and thereafter.--Not less than 50 
        percent of light-duty motor vehicles manufactured for model 
        year 2017 and each model year thereafter and sold in the United 
        States shall be qualified motor vehicles, of which not less 
        than 10 percent shall be--
                    (A) hybrid motor vehicles;
                    (B) plug-in hybrid motor vehicles;
                    (C) new advanced lean burn technology motor 
                vehicles (as defined in section 30B(c)(3) of the 
                Internal Revenue Code of 1986);
                    (D) new qualified fuel cell motor vehicles (as 
                defined in section 30B(b)(3) of the Internal Revenue 
                Code of 1986); or
                    (E) any other appropriate motor vehicle that uses 
                substantially new technology and achieve at least 175 
                percent of the model year 2002 city fuel economy, as 
                determined by the Secretary of Transportation, by 
                regulation.
    (c) Rulemaking.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Transportation shall promulgate 
regulations to carry out this section.

              TITLE III--FUEL CHOICES FOR THE 21ST CENTURY

SEC. 301. INCREASE IN ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY 
              CREDIT.

    (a) In General.--Subsection (a) of section 30C of the Internal 
Revenue Code of 1986 is amended by striking ``30 percent'' and 
inserting ``50 percent''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2005, in taxable years 
ending after such date.

SEC. 302. USE OF CAFE PENALTIES TO BUILD ALTERNATIVE FUELING 
              INFRASTRUCTURE.

    Section 32912 of title 49, United States Code, is amended by adding 
at the end the following
    ``(e) Alternative Fueling Infrastructure Trust Fund.--(1) There is 
established in the Treasury of the United States a trust fund, to be 
known as the Alternative Fueling Infrastructure Trust Fund, consisting 
of such amounts as are deposited into the Trust Fund under paragraph 
(2) and any interest earned on investment of amounts in the Trust Fund.
    ``(2) The Secretary of Transportation shall remit 90 percent of the 
amount collected in civil penalties under this section to the Trust 
Fund.
    ``(3)(A) The Secretary of Energy shall obligate such sums as are 
available in the Trust Fund to establish a grant program to increase 
the number of locations at which consumers may purchase alternative 
fuels.
    ``(B)(i) The Secretary of Energy may award grants under this 
paragraph, in an amount equal to not more than $150,000 per fueling 
station, to--
            ``(I) individual fueling stations; and
            ``(II) corporations (including nonprofit corporations) with 
        demonstrated experience in the administration of grant funding 
        for the purpose of alternative fueling infrastructure.
    ``(ii) In awarding grants under this paragraph, the Secretary shall 
consider the number of vehicles in service capable of using a specific 
type of alternative fuel.
    ``(iii) Grant recipients shall provide a non-Federal match of not 
less than $1 for every $3 of grant funds received under this paragraph.
    ``(iv) Each grant recipient shall select the locations for each 
alternative fuel station to be constructed with grant funds received 
under this paragraph on a formal, open, and competitive basis.
    ``(C) Grant funds received under this paragraph may be used to--
            ``(i) construct new facilities to dispense alternative 
        fuels;
            ``(ii) purchase equipment to upgrade, expand, or otherwise 
        improve existing alternative fuel facilities; or
            ``(iii) purchase equipment or pay for specific turnkey 
        fueling services by alternative fuel providers.
    ``(D) Facilities constructed or upgraded with grant funds under 
this paragraph shall--
            ``(i) provide alternative fuel available to the public for 
        a period not less than 4 years;
            ``(ii) establish a marketing plan to advance the sale and 
        use of alternative fuels;
            ``(iii) prominently display the price of alternative fuel 
        on the marquee and in the station;
            ``(iv) provide point of sale materials on alternative fuel;
            ``(v) clearly label the dispenser with consistent 
        materials;
            ``(vi) price the alternative fuel at the same margin that 
        is received for unleaded gasoline; and
            ``(vii) support and use all available tax incentives to 
        reduce the cost of the alternative fuel to the lowest possible 
        retail price.
    ``(E) Not later than the date on which each alternative fuel 
station begins to offer alternative fuel to the public, the grant 
recipient that used grant funds to construct such station shall notify 
the Secretary of Energy of such opening. The Secretary of Energy shall 
add each new alternative fuel station to the alternative fuel station 
locator on its Website when it receives notification under this 
subparagraph.
    ``(F) Not later than 6 months after the receipt of a grant award 
under this paragraph, and every 6 months thereafter, each grant 
recipient shall submit a report to the Secretary of Energy that 
describes--
            ``(i) the status of each alternative fuel station 
        constructed with grant funds received under this paragraph;
            ``(ii) the amount of alternative fuel dispensed at each 
        station during the preceding 6-month period; and
            ``(iii) the average price per gallon of the alternative 
        fuel sold at each station during the preceding 6-month 
        period.''.

SEC. 303. MINIMUM QUANTITY OF RENEWABLE FUEL DERIVED FROM CELLULOSIC 
              BIOMASS.

    Section 211(o)(2)(B) of the Clean Air Act (42 U.S.C. 7545(o)(2)(B)) 
is amended by striking clause (iii) and inserting the following:
                            ``(iii) Minimum quantity derived from 
                        cellulosic biomass.--
                                    ``(I) In general.--The applicable 
                                volume referred to in clause (ii) shall 
                                contain a minimum of--
                                            ``(aa) for each of calendar 
                                        years 2010 through 2012, 
                                        75,000,000 gallons that are 
                                        derived from cellulosic 
                                        biomass; and
                                            ``(bb) for calendar year 
                                        2013 and each calendar year 
                                        thereafter, 250,000,000 gallons 
                                        that are derived from 
                                        cellulosic biomass.
                                    ``(II) Ratio.--For calendar year 
                                2010 and each calendar year thereafter, 
                                the 2.5-to-1 ratio referred to in 
                                paragraph (4) shall not apply.''.

SEC. 304. MINIMUM QUANTITY OF RENEWABLE FUEL DERIVED FROM SUGAR.

    (a) In General.--Section 211(o)(2)(B) of the Clean Air Act (42 
U.S.C. 7545(o)(2)(B)) is amended by adding at the end the following:
                            ``(v) Minimum quantity derived from 
                        sugar.--For calendar year 2008 and each 
                        calendar year thereafter, the applicable volume 
                        referred to in clause (ii) shall contain a 
                        minimum of 100,000,000 gallons that are derived 
                        from domestically-grown sugarcane, sugar beets, 
                        or sugar components.''.
    (b) Applicable Volume.--Section 211(o)(2)(B)(i) of the Clean Air 
Act (42 U.S.C. 7545(o)(2)(B)(i)) is amended--
            (1) in the item relating to calendar year 2008, by striking 
        ``5.4'' and inserting ``5.5'';
            (2) in the item relating to calendar year 2009, by striking 
        ``6.1'' and inserting ``6.2'';
            (3) in the item relating to calendar year 2010, by striking 
        ``6.8'' and inserting ``6.9'';
            (4) in the item relating to calendar year 2011, by striking 
        ``7.4'' and inserting ``7.5''; and
            (5) in the item relating to calendar year 2012, by striking 
        ``7.5'' and inserting ``7.6''.

SEC. 305. BIOENERGY RESEARCH AND DEVELOPMENT.

    Section 931(c) of the Energy Policy Act of 2005 (42 U.S.C. 
16231(c)) is amended--
            (1) in paragraph (1), by striking ``$213,000,000'' and 
        inserting ``$326,000,000'';
            (2) in paragraph (2), by striking ``$251,000,000'' and 
        inserting ``$377,000,000''; and
            (3) in paragraph (3), by striking ``$274,000,000'' and 
        inserting ``$398,000,000''.

SEC. 306. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

    Section 942(f) of the Energy Policy Act of 2005 (42 U.S.C. 
16251(f)) is amended by striking ``$250,000,000'' and inserting 
``$200,000,000 for each of fiscal years 2007 through 2011''.

SEC. 307. LOW-INTEREST LOAN AND GRANT PROGRAM FOR RETAIL DELIVERY OF E-
              85 FUEL.

    (a) Purposes of Loans.--Section 312(a) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1942(a)) is amended--
            (1) in paragraph (9)(B)(ii), by striking ``or'' at the end;
            (2) in paragraph (10), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(11) building infrastructure, including pump stations, 
        for the retail delivery to consumers of any fuel that contains 
        not less than 85 percent ethanol, by volume.''.
    (b) Program.--Subtitle B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941 et seq.) is amended by adding at the end 
the following:

``SEC. 320. LOW-INTEREST LOAN AND GRANT PROGRAM FOR RETAIL DELIVERY OF 
              E-85 FUEL.

    ``(a) In General.--The Secretary shall establish a low-interest 
loan and grant program to assist farmer-owned ethanol producers 
(including cooperatives and limited liability corporations) to develop 
and build infrastructure, including pump stations, for the retail 
delivery to consumers of any fuel that contains not less than 85 
percent ethanol, by volume.
    ``(b) Terms.--
            ``(1) Interest rate.--A low-interest loan under this 
        section shall be fixed at not more than 5 percent for each 
        year.
            ``(2) Amortization.--The repayment of a loan under this 
        section shall be amortized over the expected life of the 
        infrastructure project that is being financed with the proceeds 
        of the loan.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.
    (c) Regulations.--As soon as practicable after the date of 
enactment of this Act, the Secretary of Agriculture shall promulgate 
such regulations as are necessary to carry out the amendments made by 
this section.

SEC. 308. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.

    (a) Definitions.--In this section:
            (1) Transit-oriented development corridor.--The term 
        ``Transit-Oriented Development Corridor'' or ``TODC'' means a 
        geographic area designated by the Secretary under subsection 
        (b).
            (2) Other terms.--The terms ``fixed guide way'', ``local 
        governmental authority'', ``mass transportation'', 
        ``Secretary'', ``State'', and ``urbanized area'' have the 
        meanings given the terms in section 5302 of title 49, United 
        States Code.
    (b) Transit-Oriented Development Corridors.--
            (1) In general.--The Secretary shall develop and carry out 
        a program to designate geographic areas in urbanized areas as 
        Transit-Oriented Development Corridors.
            (2) Criteria.--An area designated as a TODC under paragraph 
        (1) shall include rights-of-way for fixed guide way mass 
        transportation facilities (including commercial development of 
        facilities that have a physical and functional connection with 
        each facility).
            (3) Number of todcs.--In consultation with State 
        transportation departments and metropolitan planning 
        organizations, the Secretary shall designate--
                    (A) not fewer than 10 TODCs by December 31, 2015; 
                and
                    (B) not fewer than 20 TODCs by December 31, 2025.
            (4) Transit grants.--
                    (A) In general.--The Secretary make grants to 
                eligible states and local governmental authorities to 
                pay the Federal share of the cost of designating 
                geographic areas in urbanized areas as TODCs.
                    (B) Application.--Each eligible State or local 
                governmental authority that desires to receive a grant 
                under this paragraph shall submit an application to the 
                Secretary, at such time, in such manner, and 
                accompanied by such additional information as the 
                Secretary may reasonably require.
                    (C) Labor standards.--Subchapter IV of chapter 31 
                of title 40, United States Code shall apply to projects 
                that receive funding under this section.
                    (D) Federal share.--The Federal share of the cost 
                of a project under this subsection shall be 50 percent.
    (c) TODC Research and Development.--To support effective deployment 
of grants and incentives under this section, the Secretary shall 
establish a TODC research and development program to conduct research 
on the best practices and performance criteria for TODCs.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2007 through 2012.

          TITLE IV--NATIONWIDE ENERGY SECURITY MEDIA CAMPAIGN

SEC. 401. NATIONWIDE MEDIA CAMPAIGN TO DECREASE OIL CONSUMPTION.

    (a) In General.--The Secretary of Energy, acting through the 
Assistant Secretary for Energy Efficiency and Renewable Energy 
(referred to in this section as the ``Secretary''), shall develop and 
conduct a national media campaign for the purpose of decreasing oil 
consumption in the United States over the next decade.
    (b) Contract With Entity.--The Secretary shall carry out subsection 
(a) directly or through--
            (1) competitively bid contracts with 1 or more nationally 
        recognized media firms for the development and distribution of 
        monthly television, radio, and newspaper public service 
        announcements; or
            (2) collective agreements with 1 or more nationally 
        recognized institutes, businesses, or nonprofit organizations 
        for the funding, development, and distribution of monthly 
        television, radio, and newspaper public service announcements.
    (c) Use of Funds.--
            (1) In general.--Amounts made available to carry out this 
        section shall be used for the following:
                    (A) Advertising costs.--
                            (i) The purchase of media time and space.
                            (ii) Creative and talent costs.
                            (iii) Testing and evaluation of 
                        advertising.
                            (iv) Evaluation of the effectiveness of the 
                        media campaign.
                            (v) The negotiated fees for the winning 
                        bidder on requests from proposals issued either 
                        by the Secretary for purposes otherwise 
                        authorized in this section.
                            (vi) Entertainment industry outreach, 
                        interactive outreach, media projects and 
                        activities, public information, news media 
                        outreach, and corporate sponsorship and 
                        participation.
                    (B) Administrative costs.--Operational and 
                management expenses.
            (2) Limitations.--In carrying out this section, the 
        Secretary shall allocate not less than 85 percent of funds made 
        available under subsection (e) for each fiscal year for the 
        advertising functions specified under paragraph (1)(A).
    (d) Reports.--The Secretary shall annually submit to Congress a 
report that describes--
            (1) the strategy of the national media campaign and whether 
        specific objectives of the campaign were accomplished, 
        including--
                    (A) determinations concerning the rate of change of 
                oil consumption, in both absolute and per capita terms; 
                and
                    (B) an evaluation that enables consideration 
                whether the media campaign contributed to reduction of 
                oil consumption;
            (2) steps taken to ensure that the national media campaign 
        operates in an effective and efficient manner consistent with 
        the overall strategy and focus of the campaign;
            (3) plans to purchase advertising time and space;
            (4) policies and practices implemented to ensure that 
        Federal funds are used responsibly to purchase advertising time 
        and space and eliminate the potential for waste, fraud, and 
        abuse; and
            (5) all contracts or cooperative agreements entered into 
        with a corporation, partnership, or individual working on 
        behalf of the national media campaign.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2006 through 2010.
                                 <all>
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