II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Vehicle and Fuel Choices for American Security Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 
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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. 

1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—Congress finds that— 

3 (1) the United States is dangerously dependent 

4 on oil; 

5 (2) that dependence threatens the national se6 curity, weakens the economy, and harms the envi7 ronment of the United States; 
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1 (3) the United States currently imports nearly 

2 60 percent of oil needed in the United States, and 

3 that percentage is expected to grow to almost 70 

4 percent by 2025 if no actions are taken; 

5 (4) approximately 2,500,000 barrels of oil per 

6 day are imported from countries in the Persian Gulf 

7 region; 

8 (5) dependence on foreign oil has led to stra9 tegic partnerships with some regimes that do not 

10 share the democratic values of the United States; 

11 (6) terrorists have identified oil as a strategic 

12 vulnerability and have increased attacks against oil 

13 infrastructure worldwide; 

14 (7) oil imports comprise nearly 30 percent of 

15 the dangerously high United States trade deficit; 

16 (8) it is technically feasible to achieve oil sav17 ings of more than 2,500,000 barrels per day by 

18 2017 and 7,000,000 barrels per day by 2026; 

19 (9) those goals can be achieved by establishing 

20 a set of flexible policies, including— 

21 (A) increasing the gasoline-efficiency of 

22 cars, trucks, tires, and oil; 

23 (B) providing economic incentives for com24 panies and consumers to purchase fuel-efficient 

25 vehicles; 
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1 (C) encouraging the use of transit and the 

2 reduction of truck idling; and 

3 (D) increasing production and commer4 cialization of alternative liquid fuels; 

5 (10) technology available as of the date of en6 actment of this Act (including popular hybrid-elec7 tric vehicle models, the sales of which in the United 

8 States increased 173 percent in the first 5 months 

9 of 2005 as compared with the same period in 2004) 

10 make an oil savings plan eminently achievable; 

11 (11) achieving those goals will benefit con12 sumers and businesses through lower fuel bills and 

13 reduction in world oil prices; 

14 (12) achieving those goals will help protect the 

15 economy of the United States from high and volatile 

16 oil prices; and 

17 (13) it is urgent, essential, and feasible to im18 plement an action plan to achieve oil savings as soon 

19 as practicable because any delay in initiating action 

20 will— 

21 (A) make achieving necessary oil savings 

22 more difficult and expensive; and 

23 (B) increase the risks to the national secu24 rity, economy, and environment of the United 

25 States. 
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1 (b) PURPOSES.—The purposes of this Act are— 

2 (1) to accelerate market penetration of electric 

3 drive and alternative motor vehicles; 

4 (2) to enable the accelerated market penetra5 tion of efficient technologies and alternative fuels 

6 without adverse impact on air quality while main7 taining a policy of fuel neutrality, so as to allow 

8 market forces to elect the technologies and fuels that 

9 are consumer-friendly, safe, environmentally-sound, 

10 and economic; 

11 (3) to provide time-limited financial incentives 

12 to encourage production and consumer purchase of 

13 oil saving technologies and fuels nationwide; and 

14 (4) to promote a nationwide diversity of motor 

15 vehicle fuels and advanced motor vehicle technology, 

16 including advanced lean burn technology, hybrid 

17 technology, flexible fuel motor vehicles, alternatively 

18 fueled motor vehicles, and other oil saving tech19 nologies. 

20 TITLE I—OIL SAVINGS PLAN AND 

21 REQUIREMENTS 

22 SEC. 101. OIL SAVINGS TARGET AND ACTION PLAN. 

23 Not later than 270 days after the date of enactment 

24 of this Act, the Director of the Office of Management and 

25 Budget (referred to in this title as the ‘‘Director’’) shall 
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1 publish in the Federal Register an action plan consisting 

2 of— 

3 (1) a list of requirements proposed or to be pro4 posed pursuant to section 102 that are authorized to 

5 be issued under law in effect on the date of enact6 ment of this Act, and this Act, that will be suffi7 cient, when taken together, to save from the baseline 

8 determined under section 105— 

9 (A) 2,500,000 barrels of oil per day on av10 erage during calendar year 2016; 

11 (B) 7,000,000 barrels of oil per day on av12 erage during calendar year 2026; and 

13 (C) 10,000,000 barrels per day on average 

14 during calendar year 2031; and 

15 (2) a Federal Government-wide analysis of— 

16 (A) the expected oil savings from the base17 line to be accomplished by each requirement; 

18 and 

19 (B) whether all such requirements, taken 

20 together, will achieve the oil savings specified in 

21 this section. 

22 SEC. 102. STANDARDS AND REQUIREMENTS. 

23 (a) IN GENERAL.—On or before the date of publica24 tion of the action plan under section 101, the Secretary 

25 of Energy, the Secretary of Transportation, the Secretary 
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1 of Defense, the Secretary of Agriculture, the Adminis2 trator of the Environmental Protection Agency, and the 

3 head of any other agency the President determines appro4 priate shall each propose, or issue a notice of intent to 

5 propose, regulations establishing each standard or other 

6 requirement listed in the action plan that is under the ju7 risdiction of the respective agency using authorities de8 scribed in subsection (b). 

9 (b) AUTHORITIES.—The head of each agency de10 scribed in subsection (a) shall use to carry out this sec11 tion— 

12 (1) any authority in existence on the date of en13 actment of this Act (including regulations); and 

14 (2) any new authority provided under this Act 

15 (including an amendment made by this Act). 

16 (c) FINAL REGULATIONS.—Not later than 18 months 

17 after the date of enactment of this Act, the head of each 

18 agency described in subsection (a) shall promulgate final 

19 versions of the regulations required under this section. 

20 (d) AGENCY ANALYSES.—Each proposed and final 

21 regulation promulgated under this section shall— 

22 (1) be designed to achieve at least the oil sav23 ings resulting from the regulation under the action 

24 plan published under section 101; and 
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1 (2) be accompanied by an analysis by the appli2 cable agency describing the manner in which the 

3 regulation will promote the achievement of the oil 

4 savings from the baseline determined under section 

5 105. 

6 SEC. 103. INITIAL EVALUATION. 

7 (a) IN GENERAL.—Not later than 2 years after the 

8 date of enactment of this Act, the Director shall publish 

9 in the Federal Register a Federal Government-wide anal10 ysis of the oil savings achieved from the baseline estab11 lished under section 105. 

12 (b) INADEQUATE OIL SAVINGS.—If the oil savings 

13 are less than the targets established under section 101, 

14 simultaneously with the analysis required under sub15 section (a)— 

16 (1) the Director shall publish a revised action 

17 plan that is adequate to achieve the targets; and 

18 (2) the Secretary of Energy, the Secretary of 

19 Transportation, and the Administrator shall propose 

20 new or revised regulations under subsections (a), 

21 (b), and (c), respectively, of section 102. 

22 (c) FINAL REGULATIONS.—Not later than 180 days 

23 after the date on which regulations are proposed under 

24 subsection (b)(2), the Secretary of Energy, the Secretary 
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1 of Transportation, and the Administrator shall promul2 gate final versions of those regulations. 

3 SEC. 104. REVIEW AND UPDATE OF ACTION PLAN. 

4 (a) REVIEW.—Not later than January 1, 2011, and 

5 every 3 years thereafter, the Director shall submit to Con6 gress, and publish, a report that— 

7 (1) evaluates the progress achieved in imple8 menting the oil savings targets established under 

9 section 101; 

10 (2) analyzes the expected oil savings under the 

11 standards and requirements established under this 

12 Act and the amendments made by this Act; and 

13 (3)(A) analyzes the potential to achieve oil sav14 ings that are in addition to the savings required by 

15 section 101; and 

16 (B) if the President determines that it is in the 

17 national interest, establishes a higher oil savings tar18 get for calendar year 2017 or any subsequent cal19 endar year. 

20 (b) INADEQUATE OIL SAVINGS.—If the oil savings 

21 are less than the targets established under section 101, 

22 simultaneously with the report required under subsection 

23 (a)— 

24 (1) the Director shall publish a revised action 

25 plan that is adequate to achieve the targets; and 
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1 (2) the Secretary of Energy, the Secretary of 

2 Transportation, and the Administrator shall propose 

3 new or revised regulations under subsections (a), 

4 (b), and (c), respectively, of section 102. 

5 (c) FINAL REGULATIONS.—Not later than 180 days 

6 after the date on which regulations are proposed under 

7 subsection (b)(2), the Secretary of Energy, the Secretary 

8 of Transportation, and the Administrator shall promul9 gate final versions of those regulations. 

10 SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS. 

11 In performing the analyses and promulgating pro12 posed or final regulations to establish standards and other 

13 requirements necessary to achieve the oil savings required 

14 by this title, the Secretary of Energy, the Secretary of 

15 Transportation, the Secretary of Defense, the Secretary 

16 of Agriculture, the Administrator of the Environmental 

17 Protection Agency, and the head of any other agency the 

18 President determines to be appropriate shall— 

19 (1) determine oil savings as the projected re20 duction in oil consumption from the baseline estab21 lished by the reference case contained in the report 

22 of the Energy Information Administration entitled 

23 ‘‘Annual Energy Outlook 2005’’; 
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1 (2) determine the oil savings projections re2 quired on an annual basis for each of calendar years 

3 2009 through 2026; and 

4 (3) account for any overlap among the stand5 ards and other requirements to ensure that the pro6 jected oil savings from all the promulgated stand7 ards and requirements, taken together, are as accu8 rate as practicable. 

9 TITLE II—FUEL EFFICIENT VEHI10 CLES FOR THE 21ST CENTURY 

11 SEC. 201. TIRE EFFICIENCY PROGRAM. 

12 (a) STANDARDS FOR TIRES MANUFACTURED FOR

13 INTERSTATE COMMERCE.—Section 30123 of title 49, 

14 United States Code, is amended— 

15 (1) in subsection (b)— 

16 (A) in the first sentence, by striking ‘‘The 

17 Secretary’’ and inserting the following: 

18 ‘‘(1) UNIFORM QUALITY GRADING SYSTEM.— 

19 ‘‘(A) IN GENERAL.—The Secretary’’; 

20 (B) in the second sentence, by striking 

21 ‘‘The Secretary’’ and inserting the following: 

22 ‘‘(2) NOMENCLATURE AND MARKETING PRAC23 TICES.—The Secretary’’; 

24 (C) in the third sentence, by striking ‘‘A 

25 tire standard’’ and inserting the following: 
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1 ‘‘(3) EFFECT OF STANDARDS AND REGULA2 TIONS.—A tire standard’’; and 

3 (D) in paragraph (1), as designated by 

4 subparagraph (A), by adding at the end the fol5 lowing: 

6 ‘‘(B) INCLUSION.—The grading system es7 tablished pursuant to subparagraph (A) shall 

8 include standards for rating the fuel efficiency 

9 of tires designed for use on passenger cars and 

10 light trucks.’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(d) NATIONAL TIRE EFFICIENCY PROGRAM.— 

13 ‘‘(1) DEFINITION.—In this subsection, the term 

14 ‘fuel economy’, with respect to a tire, means the ex15 tent to which the tire contributes to the fuel econ16 omy of the motor vehicle on which the tire is mount17 ed. 

18 ‘‘(2) PROGRAM.—The Secretary shall develop 

19 and carry out a national tire fuel efficiency program 

20 for tires designed for use on passenger cars and 

21 light trucks. 

22 ‘‘(3) REQUIREMENTS.—Not later than March 

23 31, 2008, the Secretary shall issue regulations, 

24 which establish— 
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1 ‘‘(A) policies and procedures for testing 

2 and labeling tires for fuel economy to enable 

3 tire buyers to make informed purchasing deci4 sions about the fuel economy of tires; 

5 ‘‘(B) policies and procedures to promote 

6 the purchase of energy efficient replacement 

7 tires, including purchase incentives, website list8 ings on the Internet, printed fuel economy 

9 guide booklets, and mandatory requirements for 

10 tire retailers to provide tire buyers with fuel ef11 ficiency information on tires; and 

12 ‘‘(C) minimum fuel economy standards for 

13 tires. 

14 ‘‘(4) MINIMUM FUEL ECONOMY STANDARDS.— 

15 In promulgating minimum fuel economy standards 

16 for tires, the Secretary shall design standards that— 

17 ‘‘(A) ensure, in conjunction with the re18 quirements under paragraph (3)(B), that the 

19 average fuel economy of replacement tires is not 

20 less than the average fuel economy of tires sold 

21 as original equipment; 

22 ‘‘(B) secure the maximum technically fea23 sible and cost-effective fuel savings; 

24 ‘‘(C) do not adversely affect tire safety; 

25 ‘‘(D) incorporate the results from— 
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1 ‘‘(i) laboratory testing; and 

2 ‘‘(ii) to the extent appropriate and 

3 available, on-road fleet testing programs 

4 conducted by manufacturers; and 

5 ‘‘(E) do not adversely affect efforts to 

6 manage scrap tires. 

7 ‘‘(5) APPLICABILITY.—The policies, procedures, 

8 and standards developed under paragraph (3) shall 

9 apply to all tire types and models regulated under 

10 the uniform tire quality grading standards in section 

11 575.104 of title 49, Code of Federal Regulations (or 

12 a successor regulation). 

13 ‘‘(6) REVIEW.— 

14 ‘‘(A) IN GENERAL.—Not less than once 

15 every 3 years, the Secretary shall— 

16 ‘‘(i) review the minimum fuel economy 

17 standards in effect for tires under this sub18 section; and 

19 ‘‘(ii) subject to subparagraph (B), re20 vise the standards as necessary to ensure 

21 compliance with standards described in 

22 paragraph (4). 

23 ‘‘(B) LIMITATION.—The Secretary may 

24 not reduce the average fuel economy standards 

25 applicable to replacement tires. 
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1 ‘‘(7) NO PREEMPTION OF STATE LAW.—Noth2 ing in this section shall be construed to preempt any 

3 provision of State law relating to higher fuel econ4 omy standards applicable to replacement tires de5 signed for use on passenger cars and light trucks. 

6 ‘‘(8) EXCEPTIONS.—Nothing in this section 

7 shall apply to— 

8 ‘‘(A) a tire or group of tires with the same 

9 stock keeping unit, plant, and year, for which 

10 the volume of tires produced or imported is less 

11 than 15,000 annually; 

12 ‘‘(B) a deep tread, winter-type snow tire, 

13 space-saver tire, or temporary use spare tire; 

14 ‘‘(C) a tire with a normal rim diameter of 

15 12 inches or less; 

16 ‘‘(D) a motorcycle tire; or 

17 ‘‘(E) a tire manufactured specifically for 

18 use in an off-road motorized recreational vehi19 cle.’’. 

20 (b) CONFORMING AMENDMENT.—Section 

21 30103(b)(1) of title 49, United States Code, is amended 

22 by striking ‘‘When’’ and inserting ‘‘Except as provided in 

23 section 30123(d), if’’. 

24 (c) TIME FOR IMPLEMENTATION.—Beginning not 

25 later than March 31, 2008, the Secretary of Transpor-
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1 tation shall administer the national tire fuel efficiency pro2 gram established under section 30123(d) of title 49, 

3 United States Code, in accordance with the policies, proce4 dures, and standards developed under section 30123(d)(3) 

5 of such title. 

6 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated, for each of fiscal years 

8 2007 through 2011, such sums as may be necessary to 

9 carry out section 30123(d) of title 49, United States Code, 

10 as added by subsection (a). 

11 SEC. 202. REDUCTION OF SCHOOL BUS IDLING. 

12 (a) STATEMENT OF POLICY.—Congress encourages 

13 each local educational agency (as defined in section 

14 9101(26) of the Elementary and Secondary Education Act 

15 of 1965 (20 U.S.C. 7801(26))) that receives Federal funds 

16 under the Elementary and Secondary Education Act of 

17 1965 (20 U.S.C. 6301 et seq.) to develop a policy to re18 duce the incidence of school bus idling at schools while 

19 picking up and unloading students. 

20 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to the Administrator of 

22 the Environmental Protection Agency, working in coordi23 nation with the Secretary of Education, $5,000,000 for 

24 each of fiscal years 2007 through 2012 for use in edu25 cating States and local education agencies about— 
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1 (1) benefits of reducing school bus idling; and 

2 (2) ways in which school bus idling may be re3 duced. 

4 SEC. 203. FUEL EFFICIENCY FOR HEAVY DUTY TRUCKS. 

5 Part C of subtitle VI of title 49, United States Code, 

6 is amended by inserting after chapter 329 the following: 

7 ‘‘CHAPTER 330—HEAVY DUTY VEHICLE 

8 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. 

9 ‘‘§ 33001. Purpose and policy 

10 ‘‘The purpose of this chapter is to reduce petroleum 

11 consumption by heavy duty motor vehicles. 

12 ‘‘§ 33002. Definition 

13 ‘‘In this chapter, the term ‘heavy duty motor vehi14 cle’— 

15 ‘‘(1) means a vehicle having a gross vehicle 

16 weight rating of at least 10,000 pounds that is driv17 en or drawn by mechanical power and manufactured 

18 primarily for use on public streets, roads, and high19 ways; and 

20 ‘‘(2) does not include a vehicle operated only on 

21 a rail line. 
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1 ‘‘§ 33003. Testing and assessment 

2 ‘‘(a) GENERAL REQUIREMENTS.—The Administrator 

3 of the Environmental Protection Agency (referred to in 

4 this section as the ‘Administrator’) shall develop and co5 ordinate a national testing and assessment program to— 

6 ‘‘(1) determine the fuel economy of heavy duty 

7 vehicles; and 

8 ‘‘(2) assess the fuel efficiency attainable 

9 through available technology. 

10 ‘‘(b) TESTING.—The Administrator shall— 

11 ‘‘(1) design a National testing program to as12 sess the fuel economy of heavy duty vehicles (based 

13 on the program for light duty vehicles); and 

14 ‘‘(2) implement the program described in para15 graph (1) not later than 18 months after the date 

16 of enactment of this chapter. 

17 ‘‘(c) ASSESSMENT.—The Administrator shall consult 

18 with the Secretary of Transportation on the assessment 

19 of available technologies to enhance the fuel efficiency of 

20 heavy duty vehicles to ensure that vehicle use and needs 

21 are considered appropriately in the assessment. 

22 ‘‘(d) REPORTING.—The Administrator shall— 

23 ‘‘(1) not later than 2 years after the date of en24 actment of this chapter, submit a report to Congress 

25 regarding the results of the assessment of available 
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1 technologies to improve the fuel efficiency of heavy 

2 duty vehicles. 

3 ‘‘(2) submit a report to Congress, at least bian4 nually, that addresses the fuel economy of heavy 

5 duty vehicles; and 

6 ‘‘§ 33004. Standards 

7 ‘‘(a) GENERAL REQUIREMENTS.—Not later than 18 

8 months after completing the testing and assessments 

9 under section 33003, the Secretary of Transportation 

10 shall prescribe average heavy duty vehicle fuel economy 

11 standards. Each standard shall be the maximum feasible 

12 average fuel economy level that the Secretary decides that 

13 manufacturers can achieve in that model year. The Sec14 retary may prescribe separate standards for different 

15 classes of heavy duty motor vehicles. The standards for 

16 each model year shall be completed not later than 18 

17 months before the beginning of each model year. 

18 ‘‘(b) CONSIDERATIONS AND CONSULTATION.—In de19 termining maximum feasible average fuel economy, the 

20 Secretary shall consider— 

21 ‘‘(1) relevant available heavy duty motor vehicle 

22 fuel consumption information; 

23 ‘‘(2) technological feasibility; 

24 ‘‘(3) economic practicability; 
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1 ‘‘(4) the desirability of reducing United States 

2 dependence on oil; 

3 ‘‘(5) the effects of average fuel economy stand4 ards on vehicle safety; 

5 ‘‘(6) the effects of average fuel economy stand6 ards on levels of employment and competitiveness of 

7 the heavy truck manufacturing industry ; and 

8 ‘‘(7) the extent to which the standard will carry 

9 out the purpose described in section 33001. 

10 ‘‘(c) COOPERATION.—The Secretary may advise, as11 sist, and cooperate with departments, agencies, and in12 strumentalities of the United States Government, States, 

13 and other public and private agencies in developing fuel 

14 economy standards for heavy duty motor vehicles. 

15 ‘‘(d) 5-YEAR PLAN FOR TESTING STANDARDS.—The 

16 Secretary shall establish, periodically review, and contin17 ually update a 5-year plan for testing heavy duty motor 

18 vehicle fuel economy standards prescribed under this chap19 ter. In developing and establishing testing priorities, the 

20 Secretary shall consider factors the Secretary considers 

21 appropriate, consistent with the purpose described in sec22 tion 33001 and the Secretary’s other duties and powers 

23 under this chapter. 
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1 ‘‘§ 33005. Authorization of appropriations 

2 ‘‘There are authorized to be appropriated, for each 

3 of fiscal years 2007 through 2011, such sums as may be 

4 necessary to carry out this chapter.’’. 

5 SEC. 204. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM. 

6 (a) PURPOSES.—The purposes of this section are— 

7 (1) to enable and promote, in partnership with 

8 industry, comprehensive development, demonstra9 tion, and commercialization of a wide range of elec10 tric drive components, systems, and vehicles using 

11 diverse electric drive transportation technologies; 

12 (2) to make critical public investments to help 

13 private industry, institutions of higher education, 

14 National Laboratories, and research institutions to 

15 expand innovation, industrial growth, and jobs in the 

16 United States; 

17 (3) to expand the availability of the existing 

18 electric infrastructure for fueling light duty trans19 portation and other on-road and nonroad vehicles 

20 that are using petroleum and are mobile sources of 

21 emissions— 

22 (A) including the more than 3,000,000 re23 ported units (such as electric forklifts, golf 

24 carts, and similar nonroad vehicles) in use on 

25 the date of enactment of this Act; and 
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1 (B) with the goal of enhancing the energy 

2 security of the United States, reduce depend3 ence on imported oil, and reduce emissions 

4 through the expansion of grid supported mobil5 ity; 

6 (4) to accelerate the widespread commercializa7 tion of all types of electric drive vehicle technology 

8 into all sizes and applications of vehicles, including 

9 commercialization of plug-in hybrid electric vehicles 

10 and plug-in hybrid fuel cell vehicles; and 

11 (5) to improve the energy efficiency of and re12 duce the petroleum use in transportation. 

13 (b) DEFINITIONS.—In this section: 

14 (1) BATTERY.—The term ‘‘battery’’ means an 

15 energy storage device used in an on-road or nonroad 

16 vehicle powered in whole or in part using an off17 board or on-board source of electricity. 

18 (2) ELECTRIC DRIVE TRANSPORTATION TECH19 NOLOGY.—The term ‘‘electric drive transportation 

20 technology’’ means— 

21 (A) vehicles that use an electric motor for 

22 all or part of their motive power and that may 

23 or may not use off-board electricity, including 

24 battery electric vehicles, fuel cell vehicles, en25 gine dominant hybrid electric vehicles, plug-in 
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1 hybrid electric vehicles, plug-in hybrid fuel cell 

2 vehicles, and electric rail; or 

3 (B) equipment relating to transportation 

4 or mobile sources of air pollution that use an 

5 electric motor to replace an internal combustion 

6 engine for all or part of the work of the equip7 ment, including corded electric equipment 

8 linked to transportation or mobile sources of air 

9 pollution. 

10 (3) ENGINE DOMINANT HYBRID ELECTRIC VE11 HICLE.—The term ‘‘engine dominant hybrid electric 

12 vehicle’’ means an on-road or nonroad vehicle that— 

13 (A) is propelled by an internal combustion 

14 engine or heat engine using— 

15 (i) any combustible fuel; 

16 (ii) an on-board, rechargeable storage 

17 device; and 

18 (B) has no means of using an off-board 

19 source of electricity. 

20 (4) FUEL CELL VEHICLE.—The term ‘‘fuel cell 

21 vehicle’’ means an on-road or nonroad vehicle that 

22 uses a fuel cell (as defined in section 3 of the Spark 

23 M. Matsunaga Hydrogen Research, Development, 

24 and Demonstration Act of 1990). 
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1 (5) NONROAD VEHICLE.—The term ‘‘nonroad 

2 vehicle’’ has the meaning given the term in section 

3 216 of the Clean Air Act (42 U.S.C. 7550). 

4 (6) PLUG-IN HYBRID ELECTRIC VEHICLE.—The 

5 term ‘‘plug-in hybrid electric vehicle’’ means an on6 road or nonroad vehicle that is propelled by an inter7 nal combustion engine or heat engine using— 

8 (A) any combustible fuel; 

9 (B) an on-board, rechargeable storage de10 vice; and 

11 (C) a means of using an off-board source 

12 of electricity. 

13 (7) PLUG-IN HYBRID FUEL CELL VEHICLE.— 

14 The term ‘‘plug-in hybrid fuel cell vehicle’’ means a 

15 fuel cell vehicle with a battery powered by an off16 board source of electricity. 

17 (c) PROGRAM.—The Secretary shall conduct a pro18 gram of research, development, demonstration, and com19 mercial application for electric drive transportation tech20 nology, including— 

21 (1) high capacity, high efficiency batteries; 

22 (2) high efficiency on-board and off-board 

23 charging components; 
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1 (3) high power drive train systems for pas2 senger and commercial vehicles and for nonroad 

3 equipment; 

4 (4) control system development and power train 

5 development and integration for plug-in hybrid elec6 tric vehicles, plug-in hybrid fuel cell vehicles, and en7 gine dominant hybrid electric vehicles, including— 

8 (A) development of efficient cooling sys9 tems; 

10 (B) analysis and development of control 

11 systems that minimize the emissions profile 

12 when clean diesel engines are part of a plug-in 

13 hybrid drive system; and 

14 (C) development of different control sys15 tems that optimize for different goals, includ16 ing— 

17 (i) battery life; 

18 (ii) reduction of petroleum consump19 tion; and 

20 (iii) green house gas reduction; 

21 (5) nanomaterial technology applied to both 

22 battery and fuel cell systems; 

23 (6) large-scale demonstrations, testing, and 

24 evaluation of plug-in hybrid electric vehicles in dif-
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1 ferent applications with different batteries and con2 trol systems, including— 

3 (A) military applications; 

4 (B) mass market passenger and light-duty 

5 truck applications; 

6 (C) private fleet applications; and 

7 (D) medium- and heavy-duty applications; 

8 (7) a nationwide education strategy for electric 

9 drive transportation technologies providing sec10 ondary and high school teaching materials and sup11 port for university education focused on electric 

12 drive system and component engineering; 

13 (8) development, in consultation with the Ad14 ministrator of the Environmental Protection Agency, 

15 of procedures for testing and certification of criteria 

16 pollutants, fuel economy, and petroleum use for 

17 light-, medium-, and heavy-duty vehicle applications, 

18 including consideration of— 

19 (A) the vehicle and fuel as a system, not 

20 just an engine; and 

21 (B) nightly off-board charging; and 

22 (9) advancement of battery and corded electric 

23 transportation technologies in mobile source applica24 tions by— 
27 

•S 2025 IS

1 (A) improvement in battery, drive train, 

2 and control system technologies; and 

3 (B) working with industry and the Admin4 istrator of the Environmental Protection Agen5 cy to— 

6 (i) understand and inventory markets; 

7 and 

8 (ii) identify and implement methods of 

9 removing barriers for existing and emerg10 ing applications. 

11 (d) GOALS.—The goals of the electric drive transpor12 tation technology program established under subsection 

13 (c) shall be to develop, in partnership with industry and 

14 institutions of higher education, projects that focus on— 

15 (1) innovative electric drive technology devel16 oped in the United States; 

17 (2) growth of employment in the United States 

18 in electric drive design and manufacturing; 

19 (3) validation of the plug-in hybrid potential 

20 through fleet demonstrations; and 

21 (4) acceleration of fuel cell commercialization 

22 through comprehensive development and commer23 cialization of the electric drive technology systems 

24 that are the foundational technology of the fuel cell 

25 vehicle system. 
28 

•S 2025 IS

1 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $300,000,000 for each of fiscal years 2007 through 2012. 

4 SEC. 205. LIGHTWEIGHT MATERIALS RESEARCH AND DE5 VELOPMENT. 

6 (a) IN GENERAL.—As soon as practicable after the 

7 date of enactment of this Act, the Secretary of Energy 

8 shall establish a research and development program to de9 termine ways in which— 

10 (1) the weight of vehicles may be reduced to im11 prove fuel efficiency without compromising pas12 senger safety; and 

13 (2) the cost of lightweight materials (such as 

14 steel alloys and carbon fibers) required for the con15 struction of lighter-weight vehicles may be reduced. 

16 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

17 authorized to be appropriated to carry out this section 

18 $60,000,000 for each of fiscal years 2007 through 2012. 

19 SEC. 206. HYBRID AND ADVANCED DIESEL VEHICLES. 

20 (a) HYBRID VEHICLES.—The Energy Policy Act of 

21 2005 is amended by striking section 711 (42 U.S.C. 

22 16061) and inserting the following: 

23 ‘‘SEC. 711. HYBRID VEHICLES. 

24 ‘‘(a) DEFINITIONS.—In this section: 
29 

•S 2025 IS

1 ‘‘(1) COST.—The term ‘cost’ has the meaning 

2 given the term ‘cost of a loan guarantee’ within the 

3 meaning of section 502(5)(C) of the Federal Credit 

4 Reform Act of 1990 (2 U.S.C. 661a(5)(C)). 

5 ‘‘(2) ELIGIBLE PROJECT.—The term ‘eligible 

6 project’ means a project to— 

7 ‘‘(A) improve hybrid technologies under 

8 subsection (b); or 

9 ‘‘(B) encourage domestic production of ef10 ficient hybrid and advanced diesel vehicles 

11 under section 712(a). 

12 ‘‘(3) GUARANTEE.— 

13 ‘‘(A) IN GENERAL.—The term ‘guarantee’ 

14 has the meaning given the term ‘loan guar15 antee’ in section 502 of the Federal Credit Re16 form Act of 1990 (2 U.S.C. 661a). 

17 ‘‘(B) INCLUSION.—The term ‘guarantee’ 

18 includes a loan guarantee commitment (as de19 fined in section 502 of the Federal Credit Re20 form Act of 1990 (2 U.S.C. 661a)). 

21 ‘‘(4) HYBRID TECHNOLOGY.—The term ‘hybrid 

22 technology’ means a battery or other rechargeable 

23 energy storage system, power electronic, hybrid sys24 tems integration, and any other technology for use 

25 in hybrid vehicles. 
30 

•S 2025 IS

1 ‘‘(5) OBLIGATION.—The term ‘obligation’ 

2 means the loan or other debt obligation that is guar3 anteed under this section. 

4 ‘‘(b) AUTHORIZATION.—The Secretary shall accel5 erate efforts directed toward the improvement of hybrid 

6 technologies, including through the provision of loan guar7 antees under subsection (c). 

8 ‘‘(c) LOAN GUARANTEES.— 

9 ‘‘(1) IN GENERAL.—The Secretary shall make 

10 guarantees under this section for eligible projects on 

11 such terms and conditions as the Secretary, in con12 sultation with the Secretary of the Treasury, deter13 mines to be appropriate. 

14 ‘‘(2) SPECIFIC APPROPRIATION OR CONTRIBU15 TION.—No guarantee shall be made unless— 

16 ‘‘(A) an appropriation for the cost has 

17 been made; or 

18 ‘‘(B) the Secretary has received from the 

19 borrower a payment in full for the cost of the 

20 obligation and deposited the payment into the 

21 Treasury. 

22 ‘‘(3) AMOUNT.—Unless otherwise provided by 

23 law, a guarantee by the Secretary shall not exceed 

24 an amount equal to 80 percent of the project cost 

25 of the hybrid technology that is the subject of the 
31 

•S 2025 IS

1 guarantee, as estimated at the time at which the 

2 guarantee is issued. 

3 ‘‘(4) REPAYMENT.— 

4 ‘‘(A) IN GENERAL.—No guarantee shall be 

5 made unless the Secretary determines that 

6 there is a reasonable prospect of repayment of 

7 the principal and interest on the obligation by 

8 the borrower. 

9 ‘‘(B) AMOUNT.—No guarantee shall be 

10 made unless the Secretary determines that the 

11 amount of the obligation (when combined with 

12 amounts available to the borrower from other 

13 sources) will be sufficient to carry out the 

14 project. 

15 ‘‘(C) SUBORDINATION.—The obligation 

16 shall be subject to the condition that the obliga17 tion is not subordinate to other financing. 

18 ‘‘(5) INTEREST RATE.—An obligation shall bear 

19 interest at a rate that does not exceed a level that 

20 the Secretary determines appropriate, taking into 

21 account the prevailing rate of interest in the private 

22 sector for similar loans and risks. 

23 ‘‘(6) TERM.—The term of an obligation shall 

24 require full repayment over a period not to exceed 

25 the lesser of— 
32 

•S 2025 IS

1 ‘‘(A) 30 years; or 

2 ‘‘(B) 90 percent of the projected useful life 

3 of the physical asset to be financed by the obli4 gation (as determined by the Secretary). 

5 ‘‘(7) DEFAULTS.— 

6 ‘‘(A) PAYMENT BY SECRETARY.— 

7 ‘‘(i) IN GENERAL.—If a borrower de8 faults on the obligation (as defined in reg9 ulations promulgated by the Secretary and 

10 specified in the guarantee contract), the 

11 holder of the guarantee shall have the 

12 right to demand payment of the unpaid 

13 amount from the Secretary. 

14 ‘‘(ii) PAYMENT REQUIRED.—Within 

15 such period as may be specified in the 

16 guarantee or related agreements, the Sec17 retary shall pay to the holder of the guar18 antee the unpaid interest on, and unpaid 

19 principal of the obligation as to which the 

20 borrower has defaulted, unless the Sec21 retary finds that— 

22 ‘‘(I) there was no default by the 

23 borrower in the payment of interest or 

24 principal; or 
33 

•S 2025 IS

1 ‘‘(II) the default has been rem2 edied. 

3 ‘‘(iii) FORBEARANCE.—Nothing in 

4 this subsection precludes any forbearance 

5 by the holder of the obligation for the ben6 efit of the borrower that may be agreed 

7 upon by the parties to the obligation and 

8 approved by the Secretary. 

9 ‘‘(B) SUBROGATION.— 

10 ‘‘(i) IN GENERAL.—If the Secretary 

11 makes a payment under subparagraph (A), 

12 the Secretary shall be subrogated to the 

13 rights of the recipient of the payment as 

14 specified in the guarantee or related agree15 ments including, where appropriate, the 

16 authority (notwithstanding any other pro17 vision of law) to— 

18 ‘‘(I) complete, maintain, operate, 

19 lease, or otherwise dispose of any 

20 property acquired pursuant to the 

21 guarantee or related agreements; or 

22 ‘‘(II) permit the borrower, pursu23 ant to an agreement with the Sec24 retary, to continue to pursue the pur25 poses of the eligible project, as the 
34 

•S 2025 IS

1 Secretary determines to be in the pub2 lic interest. 

3 ‘‘(ii) SUPERIORITY OF RIGHTS.—The 

4 rights of the Secretary, with respect to any 

5 property acquired pursuant to a guarantee 

6 or related agreement, shall be superior to 

7 the rights of any other person with respect 

8 to the property. 

9 ‘‘(iii) TERMS AND CONDITIONS.—A 

10 guarantee agreement shall include such de11 tailed terms and conditions as the Sec12 retary determines appropriate to— 

13 ‘‘(I) protect the interests of the 

14 United States in the case of default; 

15 and 

16 ‘‘(II) have available all the pat17 ents and technology necessary for any 

18 person selected, including the Sec19 retary, to complete and operate the el20 igible project. 

21 ‘‘(C) PAYMENT OF PRINCIPAL AND INTER22 EST BY SECRETARY.—With respect to any obli23 gation guaranteed under this section, the Sec24 retary may enter into a contract to pay, and 

25 pay, holders of the obligation, for and on behalf 
35 

•S 2025 IS

1 of the borrower, from funds appropriated for 

2 that purpose, the principal and interest pay3 ments that become due and payable on the un4 paid balance of the obligation if the Secretary 

5 finds that— 

6 ‘‘(i)(I) the borrower is unable to meet 

7 the payments and is not in default; 

8 ‘‘(II) it is in the public interest to per9 mit the borrower to continue to pursue the 

10 purposes of the eligible project; and 

11 ‘‘(III) the probable net benefit to the 

12 Federal Government in paying the prin13 cipal and interest will be greater than the 

14 benefit that would result in the event of a 

15 default; 

16 ‘‘(ii) the amount of the payment that 

17 the Secretary is authorized to pay will be 

18 no greater than the amount of principal 

19 and interest that the borrower is obligated 

20 to pay under the agreement being guaran21 teed; and 

22 ‘‘(iii) the borrower agrees to reim23 burse the Secretary for the payment (in24 cluding interest) on terms and conditions 

25 that are satisfactory to the Secretary. 
36 

•S 2025 IS

1 ‘‘(D) ACTION BY ATTORNEY GENERAL.— 

2 ‘‘(i) NOTIFICATION.—If the borrower 

3 defaults on an obligation, the Secretary 

4 shall notify the Attorney General of the de5 fault. 

6 ‘‘(ii) RECOVERY.—On receipt of noti7 fication, the Attorney General shall take 

8 such action as the Attorney General deter9 mines to be appropriate to recover the un10 paid principal and interest due from— 

11 ‘‘(I) such assets of the defaulting 

12 borrower as are associated with the 

13 obligation; or 

14 ‘‘(II) any other security pledged 

15 to secure the obligation. 

16 ‘‘(8) FEES.— 

17 ‘‘(A) IN GENERAL.—The Secretary shall 

18 charge and collect fees for guarantees in 

19 amounts the Secretary determines are sufficient 

20 to cover applicable administrative expenses. 

21 ‘‘(B) AVAILABILITY.—Fees collected under 

22 this paragraph shall— 

23 ‘‘(i) be deposited by the Secretary into 

24 the Treasury; and 
37 

•S 2025 IS

1 ‘‘(ii) remain available until expended, 

2 subject to such other conditions as are con3 tained in annual appropriations Acts. 

4 ‘‘(9) RECORDS; AUDITS.— 

5 ‘‘(A) IN GENERAL.—A recipient of a guar6 antee shall keep such records and other perti7 nent documents as the Secretary shall prescribe 

8 by regulation, including such records as the 

9 Secretary may require to facilitate an effective 

10 audit. 

11 ‘‘(B) ACCESS.—The Secretary and the 

12 Comptroller General of the United States, or 

13 their duly authorized representatives, shall have 

14 access, for the purpose of audit, to the records 

15 and other pertinent documents. 

16 ‘‘(10) FULL FAITH AND CREDIT.—The full 

17 faith and credit of the United States is pledged to 

18 the payment of all guarantees issued under this sec19 tion with respect to principal and interest. 

20 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated such sums as are nec22 essary to provide the cost of guarantees under this sec23 tion.’’. 

24 (b) EFFICIENT HYBRID AND ADVANCED DIESEL VE25 HICLES.—Section 712(a) of the Energy Policy Act of 2005 
38 

•S 2025 IS

1 (42 U.S.C. 16062(a)) is amended in the second sentence 

2 by striking ‘‘grants to automobile manufacturers’’ and in3 serting ‘‘grants and the provision of loan guarantees under 

4 section 711(c) to automobile manufacturers and sup5 pliers’’. 

6 SEC. 207. ADVANCED TECHNOLOGY MOTOR VEHICLES MAN7 UFACTURING CREDIT. 

8 (a) IN GENERAL.—Subpart B of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 

10 1986 (relating to foreign tax credit, etc.) is amended by 

11 adding at the end the following new section: 

12 ‘‘SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES 

13 MANUFACTURING CREDIT. 

14 ‘‘(a) CREDIT ALLOWED.—There shall be allowed as 

15 a credit against the tax imposed by this chapter for the 

16 taxable year an amount equal to 35 percent of so much 

17 of the qualified investment of an eligible taxpayer for such 

18 taxable year as does not exceed $75,000,000. 

19 ‘‘(b) QUALIFIED INVESTMENT.—For purposes of this 

20 section— 

21 ‘‘(1) IN GENERAL.—The qualified investment 

22 for any taxable year is equal to the incremental costs 

23 incurred during such taxable year— 

24 ‘‘(A) to re-equip, expand, or establish any 

25 manufacturing facility of the eligible taxpayer 
39 

•S 2025 IS

1 to produce advanced technology motor vehicles 

2 or to produce eligible components, 

3 ‘‘(B) for engineering integration of such 

4 vehicles and components as described in sub5 section (d), and 

6 ‘‘(C) for research and development related 

7 to advanced technology motor vehicles and eligi8 ble components. 

9 ‘‘(2) ATTRIBUTION RULES.—In the event a fa10 cility of the eligible taxpayer produces both advanced 

11 technology motor vehicles and conventional motor 

12 vehicles, or eligible and non-eligible components, only 

13 the qualified investment attributable to production 

14 of advanced technology motor vehicles and eligible 

15 components shall be taken into account. 

16 ‘‘(c) ADVANCED TECHNOLOGY MOTOR VEHICLES

17 AND ELIGIBLE COMPONENTS.—For purposes of this sec18 tion— 

19 ‘‘(1) ADVANCED TECHNOLOGY MOTOR VEHI20 CLE.—The term ‘advanced technology motor vehicle’ 

21 means— 

22 ‘‘(A) any new advanced lean burn tech23 nology motor vehicle (as defined in section 

24 30B(c)(3)), or 
40 

•S 2025 IS

1 ‘‘(B) any new qualified hybrid motor vehi2 cle (as defined in section 30B(d)(2)(A) and de3 termined without regard to any gross vehicle 

4 weight rating). 

5 ‘‘(2) ELIGIBLE COMPONENTS.—The term ‘eligi6 ble component’ means any component inherent to 

7 any advanced technology motor vehicle, including— 

8 ‘‘(A) with respect to any gasoline or diesel9 electric new qualified hybrid motor vehicle— 

10 ‘‘(i) electric motor or generator, 

11 ‘‘(ii) power split device, 

12 ‘‘(iii) power control unit, 

13 ‘‘(iv) power controls, 

14 ‘‘(v) integrated starter generator, or 

15 ‘‘(vi) battery, 

16 ‘‘(B) with respect to any hydraulic new 

17 qualified hybrid motor vehicle— 

18 ‘‘(i) hydraulic accumulator vessel, 

19 ‘‘(ii) hydraulic pump, or 

20 ‘‘(iii) hydraulic pump-motor assembly, 

21 ‘‘(C) with respect to any new advanced 

22 lean burn technology motor vehicle— 

23 ‘‘(i) diesel engine, 

24 ‘‘(ii) turbocharger, 

25 ‘‘(iii) fuel injection system, or 
41 

•S 2025 IS

1 ‘‘(iv) after-treatment system, such as 

2 a particle filter or NOx absorber, and 

3 ‘‘(D) with respect to any advanced tech4 nology motor vehicle, any other component sub5 mitted for approval by the Secretary. 

6 ‘‘(d) ENGINEERING INTEGRATION COSTS.—For pur7 poses of subsection (b)(1)(B), costs for engineering inte8 gration are costs incurred prior to the market introduction 

9 of advanced technology vehicles for engineering tasks re10 lated to— 

11 ‘‘(1) establishing functional, structural, and 

12 performance requirements for component and sub13 systems to meet overall vehicle objectives for a spe14 cific application, 

15 ‘‘(2) designing interfaces for components and 

16 subsystems with mating systems within a specific ve17 hicle application, 

18 ‘‘(3) designing cost effective, efficient, and reli19 able manufacturing processes to produce components 

20 and subsystems for a specific vehicle application, 

21 and 

22 ‘‘(4) validating functionality and performance of 

23 components and subsystems for a specific vehicle ap24 plication. 
42 

•S 2025 IS

1 ‘‘(e) ELIGIBLE TAXPAYER.—For purposes of this sec2 tion, the term ‘eligible taxpayer’ means any taxpayer if 

3 more than 50 percent of its gross receipts for the taxable 

4 year is derived from the manufacture of motor vehicles 

5 or any component parts of such vehicles. 

6 ‘‘(f) LIMITATION BASED ON AMOUNT OF TAX.—The 

7 credit allowed under subsection (a) for the taxable year 

8 shall not exceed the excess of— 

9 ‘‘(1) the sum of— 

10 ‘‘(A) the regular tax liability (as defined in 

11 section 26(b)) for such taxable year, plus 

12 ‘‘(B) the tax imposed by section 55 for 

13 such taxable year and any prior taxable year 

14 beginning after 1986 and not taken into ac15 count under section 53 for any prior taxable 

16 year, over 

17 ‘‘(2) the sum of the credits allowable under sub18 part A and sections 27, 30, and 30B for the taxable 

19 year. 

20 ‘‘(g) REDUCTION IN BASIS.—For purposes of this 

21 subtitle, if a credit is allowed under this section for any 

22 expenditure with respect to any property, the increase in 

23 the basis of such property which would (but for this para24 graph) result from such expenditure shall be reduced by 

25 the amount of the credit so allowed. 
43 

•S 2025 IS

1 ‘‘(h) NO DOUBLE BENEFIT.— 

2 ‘‘(1) COORDINATION WITH OTHER DEDUCTIONS

3 AND CREDITS.—Except as provided in paragraph 

4 (2), the amount of any deduction or other credit al5 lowable under this chapter for any cost taken into 

6 account in determining the amount of the credit 

7 under subsection (a) shall be reduced by the amount 

8 of such credit attributable to such cost. 

9 ‘‘(2) RESEARCH AND DEVELOPMENT COSTS.— 

10 ‘‘(A) IN GENERAL.—Except as provided in 

11 subparagraph (B), any amount described in 

12 subsection (b)(1)(C) taken into account in de13 termining the amount of the credit under sub14 section (a) for any taxable year shall not be 

15 taken into account for purposes of determining 

16 the credit under section 41 for such taxable 

17 year. 

18 ‘‘(B) COSTS TAKEN INTO ACCOUNT IN DE19 TERMINING BASE PERIOD RESEARCH EX20 PENSES.—Any amounts described in subsection 

21 (b)(1)(C) taken into account in determining the 

22 amount of the credit under subsection (a) for 

23 any taxable year which are qualified research 

24 expenses (within the meaning of section 41(b)) 

25 shall be taken into account in determining base 
44 

•S 2025 IS

1 period research expenses for purposes of apply2 ing section 41 to subsequent taxable years. 

3 ‘‘(i) BUSINESS CARRYOVERS ALLOWED.—If the cred4 it allowable under subsection (a) for a taxable year exceeds 

5 the limitation under subsection (f) for such taxable year, 

6 such excess (to the extent of the credit allowable with re7 spect to property subject to the allowance for depreciation) 

8 shall be allowed as a credit carryback and carryforward 

9 under rules similar to the rules of section 39. 

10 ‘‘(j) SPECIAL RULES.—For purposes of this section, 

11 rules similar to the rules of paragraphs (4) and (5) of sec12 tion 179A(e) and paragraphs (1) and (2) of section 41(f) 

13 shall apply 

14 ‘‘(k) ELECTION NOT TO TAKE CREDIT.—No credit 

15 shall be allowed under subsection (a) for any property if 

16 the taxpayer elects not to have this section apply to such 

17 property. 

18 ‘‘(l) REGULATIONS.—The Secretary shall prescribe 

19 such regulations as necessary to carry out the provisions 

20 of this section. 

21 ‘‘(m) TERMINATION.—This section shall not apply to 

22 any qualified investment after December 31, 2015.’’. 

23 (b) CONFORMING AMENDMENTS.— 

24 (1) Section 1016(a) of the Internal Revenue 

25 Code of 1986 is amended by striking ‘‘and’’ at the 
45 

•S 2025 IS

1 end of paragraph (35), by striking the period at the 

2 end of paragraph (36) and inserting ‘‘, and’’, and by 

3 adding at the end the following new paragraph: 

4 ‘‘(37) to the extent provided in section 

5 30D(g).’’. 

6 (2) Section 6501(m) of such Code is amended 

7 by inserting ‘‘30D(k),’’ after ‘‘30C(e)(5),’’. 

8 (3) The table of sections for subpart B of part 

9 IV of subchapter A of chapter 1 of such Code is 

10 amended by inserting after the item relating to sec11 tion 30C the following new item: 

‘‘Sec. 30D. Advanced technology motor vehicles manufacturing credit.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to amounts incurred in taxable 

14 years beginning after December 31, 2005. 

15 SEC. 208. CONSUMER INCENTIVES TO PURCHASE AD16 VANCED TECHNOLOGY VEHICLES. 

17 (a) ELIMINATION ON NUMBER OF NEW QUALIFIED

18 HYBRID AND ADVANCED LEAN BURN TECHNOLOGY VE19 HICLES ELIGIBLE FOR ALTERNATIVE MOTOR VEHICLE

20 CREDIT.— 

21 (1) IN GENERAL.—Section 30D of the Internal 

22 Revenue Code of 1986 is amended by striking sub23 section (f) and by redesignating subsections (g) 

24 through (j) as subsections (f) through (i), respec25 tively. 
46 

•S 2025 IS

1 (2) CONFORMING AMENDMENTS.— 

2 (A) Paragraphs (4) and (6) of section 

3 30B(h) of the Internal Revenue Code of 1986 

4 are each amended amended by striking ‘‘(deter5 mined without regard to subsection (g))’’ and 

6 inserting ‘‘determined without regard to sub7 section (f))’’. 

8 (B) Section 38(b)(25) of such Code is 

9 amended by striking ‘‘section 30B(g)(1)’’ and 

10 inserting ‘‘section 30B(f)(1)’’. 

11 (C) Section 55(c)(2) of such Code is 

12 amended by striking ‘‘section 30B(g)(2)’’ and 

13 inserting ‘‘section 30B(f)(2)’’. 

14 (D) Section 1016(a)(36) of such Code is 

15 amended by striking ‘‘section 30B(h)(4)’’ and 

16 inserting ‘‘section 30B(g)(4)’’. 

17 (E) Section 6501(m) of such Code is 

18 amended by striking ‘‘section 30B(h)(9)’’ and 

19 inserting ‘‘section 30B(g)(9)’’. 

20 (b) EXTENSION OF ALTERNATIVE VEHICLE CREDIT

21 FOR NEW QUALIFIED HYBRID MOTOR VEHICLES.—Para22 graph (3) of section 30B(i) of the Internal Revenue Code 

23 of 1986 (as redesignated by subsection (a)) is amended 

24 by striking ‘‘December 31, 2009’’ and inserting ‘‘Decem25 ber 31, 2010’’. 
47 

•S 2025 IS

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service after 

3 December 31, 2005, in taxable years ending after such 

4 date. 

5 SEC. 209. FEDERAL FLEET REQUIREMENTS. 

6 (a) REGULATIONS.— 

7 (1) IN GENERAL.—The Secretary of Energy 

8 shall issue regulations for Federal fleets subject to 

9 the Energy Policy Act of 1992 (42 U.S.C. 13201 et 

10 seq.) requiring that not later than fiscal year 2016 

11 each Federal agency achieve at least a 30 percent 

12 reduction in petroleum consumption, as calculated 

13 from the baseline established by the Secretary for 

14 fiscal year 1999. 

15 (2) REQUIREMENT.—Not later than fiscal year 

16 2016, of the Federal vehicles required to be alter17 native fueled vehicles under title V of the Energy 

18 Policy Act of 1992 (42 U.S.C. 13251 et seq.), at 

19 least 30 percent shall be hybrid motor vehicles (in20 cluding plug-in hybrid motor vehicles) or new ad21 vanced lean burn technology motor vehicles (as de22 fined in section 30B(c)(3) of the Internal Revenue 

23 Code of 1986). 
48 

•S 2025 IS

1 (b) INCLUSION OF ELECTRIC DRIVE IN ENERGY

2 POLICY ACT OF 1992.—Section 508(a) of the Energy Pol3 icy Act of 1992 (42 U.S.C. 13258(a)) is amended— 

4 (1) by inserting ‘‘(1)’’ before ‘‘The Secretary’’; 

5 and 

6 (2) by adding at the end the following: 

7 ‘‘(2) Not later than January 31, 2007, the Secretary 

8 shall— 

9 ‘‘(A) allocate credit in an amount to be deter10 mined by the Secretary for— 

11 ‘‘(i) acquisition of— 

12 ‘‘(I) a light-duty hybrid electric vehi13 cle; 

14 ‘‘(II) a plug-in hybrid electric vehicle; 

15 ‘‘(III) a fuel cell electric vehicle; 

16 ‘‘(IV) a medium- or heavy-duty hybrid 

17 electric vehicle; 

18 ‘‘(V) a neighborhood electric vehicle; 

19 or 

20 ‘‘(VI) a medium- or heavy-duty dedi21 cated vehicle; and 

22 ‘‘(ii) investment in qualified alternative 

23 fuel infrastructure or nonroad equipment, as 

24 determined by the Secretary; and 
49 

•S 2025 IS

1 ‘‘(B) allocate more than 1, but not to exceed 5, 

2 credits for investment in an emerging technology re3 lating to any vehicle described in subparagraph (A) 

4 to encourage— 

5 ‘‘(i) a reduction in petroleum demand; 

6 ‘‘(ii) technological advancement; and 

7 ‘‘(iii) environmental safety.’’. 

8 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to carry out this section (in10 cluding the amendments made by subsection (b)) 

11 $10,000,000 for the period of fiscal years 2007 through 

12 2012. 

13 SEC. 210. TAX INCENTIVES FOR PRIVATE FLEETS. 

14 (a) IN GENERAL.—Subpart E of part IV of sub15 chapter A of chapter 1 of the Internal Revenue Code of 

16 1986 is amended by inserting after section 48B the fol17 lowing new section: 

18 ‘‘SEC. 48C. FUEL-EFFICIENT FLEET CREDIT. 

19 ‘‘(a) GENERAL RULE.—For purposes of section 46, 

20 the fuel-efficient fleet credit for any taxable year is 15 per21 cent of the qualified fuel-efficient vehicle investment 

22 amount of an eligible taxpayer for such taxable year. 

23 ‘‘(b) VEHICLE PURCHASE REQUIREMENT.—In the 

24 case of any eligible taxpayer which places less than 10 

25 qualified fuel-efficient vehicles in service during the tax-
50 

•S 2025 IS

1 able year, the qualified fuel-efficient vehicle investment 

2 amount shall be zero. 

3 ‘‘(c) QUALIFIED FUEL-EFFICIENT VEHICLE INVEST4 MENT AMOUNT.—For purposes of this section— 

5 ‘‘(1) IN GENERAL.—The term ‘qualified fuel-ef6 ficient vehicle investment amount’ means the basis 

7 of any qualified fuel-efficient vehicle placed in serv8 ice by an eligible taxpayer during the taxable year. 

9 ‘‘(2) QUALIFIED FUEL-EFFICIENT VEHICLE.— 

10 The term ‘qualified fuel-efficient vehicle’ means an 

11 automobile which has a fuel economy which is at 

12 least 125 percent greater than the average fuel econ13 omy standard for an automobile of the same class 

14 and model year. 

15 ‘‘(3) OTHER TERMS.—The terms ‘automobile’, 

16 ‘average fuel economy standard’, ‘fuel economy’, and 

17 ‘model year’ have the meanings given to such terms 

18 under section 32901 of title 49, United States Code. 

19 ‘‘(d) ELIGIBLE TAXPAYER.—The term ‘eligible tax20 payer’ means, with respect to any taxable year, a taxpayer 

21 who owns a fleet of 100 or more vehicles which are used 

22 in the trade or business of the taxpayer on the first day 

23 of such taxable year. 

24 ‘‘(e) TERMINATION.—This section shall not apply to 

25 any vehicle placed in service after December 31, 2010.’’. 
51 

•S 2025 IS

1 (b) CREDIT TREATED AS PART OF INVESTMENT

2 CREDIT.—Section 46 of the Internal Revenue Code of 

3 1986 is amended by striking ‘‘and’’ at the end of para4 graph (3), by striking the period at the end of paragraph 

5 (4) and inserting ‘‘, and’’, and by adding at the end the 

6 following new paragraph: 

7 ‘‘(5) the fuel-efficient fleet credit.’’. 

8 (c) CONFORMING AMENDMENTS.— 

9 (1) Section 49(a)(1)(C) of the Internal Revenue 

10 Code of 1986 is amended by striking ‘‘and’’ at the 

11 end of clause (iii), by striking the period at the end 

12 of clause (iv) and inserting ‘‘, and’’, and by adding 

13 at the end the following new clause: 

14 ‘‘(v) the basis of any qualified fuel-ef15 ficient vehicle which is taken into account 

16 under section 48C.’’. 

17 (2) The table of sections for subpart E of part 

18 IV of subchapter A of chapter 1 of such Code is 

19 amended by inserting after the item relating to sec20 tion 48 the following new item: 

‘‘Sec. 48C. Fuel-efficient fleet credit.’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to periods after December 31, 

23 2005, in taxable years ending after such date, under rules 

24 similar to the rules of section 48(m) of the Internal Rev25 enue Code of 1986 (as in effect on the day before the date 
52 

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1 of the enactment of the Revenue Reconciliation Act of 

2 1990). 

3 SEC. 211. REDUCING INCENTIVES TO GUZZLE GAS. 

4 (a) INCLUSION OF HEAVY VEHICLES IN LIMITATION

5 ON DEPRECIATION OF CERTAIN LUXURY AUTO6 MOBILES.— 

7 (1) IN GENERAL.—Section 280F(d)(5)(A) of 

8 the Internal Revenue Code of 1986 (defining pas9 senger automobile) is amended— 

10 (A) by striking clause (ii) and inserting the 

11 following new clause: 

12 ‘‘(ii)(I) which is rated at 6,000 

13 pounds unloaded gross vehicle weight or 

14 less, or 

15 ‘‘(II) which is rated at more than 

16 6,000 pounds but not more than 14,000 

17 pounds gross vehicle weight.’’, 

18 (B) by striking ‘‘clause (ii)’’ in the second 

19 sentence and inserting ‘‘clause (ii)(I)’’. 

20 (2) EXCEPTION FOR VEHICLES USED IN FARM21 ING BUSINESS.—Section 280F(d)(5)(B) of such 

22 Code (relating to exception for certain vehicles) is 

23 amended by striking ‘‘and’’ at the end of clause (ii), 

24 by redesignating clause (iii) as clause (iv), and by in25 serting after clause (ii) the following new clause: 
53 

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1 ‘‘(iii) any vehicle used in a farming 

2 business (as defined in section 263A(e)(4), 

3 and’’. 

4 (3) EFFECTIVE DATE.—The amendments made 

5 by this subsection shall apply to property placed in 

6 service after the date of the enactment of this Act. 

7 (b) UPDATED DEPRECIATION DEDUCTION LIMITS.— 

8 (1) IN GENERAL.—Subparagraph (A) of section 

9 280F(a)(1) of the Internal Revenue Code of 1986 

10 (relating to limitation on amount of depreciation for 

11 luxury automobiles) is amended to read as follows: 

12 ‘‘(I) LIMITATION.—The amount of the de13 preciation deduction for any taxable year shall 

14 not exceed for any passenger automobile— 

15 ‘‘(i) for the 1st taxable year in the re16 covery period— 

17 ‘‘(I) described in subsection 

18 (d)(5)(A)(ii)(I), $4,000, 

19 ‘‘(II) described in the second sen20 tence of subsection (d)(5)(A), $5,000, 

21 and 

22 ‘‘(III) described in subsection 

23 (d)(5)(A)(ii)(II), $6,000, 

24 ‘‘(ii) for the 2nd taxable year in the 

25 recovery period— 
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1 ‘‘(I) described in subsection 

2 (d)(5)(A)(ii)(I), $6,400, 

3 ‘‘(II) described in the second sen4 tence of subsection (d)(5)(A), $8,000, 

5 and 

6 ‘‘(III) described in subsection 

7 (d)(5)(A)(ii)(II), $9,600, 

8 ‘‘(iii) for the 3rd taxable year in the 

9 recovery period— 

10 ‘‘(I) described in subsection 

11 (d)(5)(A)(ii)(I), $3,850, 

12 ‘‘(II) described in the second sen13 tence of subsection (d)(5)(A), $4,800, 

14 and 

15 ‘‘(III) described in subsection 

16 (d)(5)(A)(ii)(II), $5,775, and 

17 ‘‘(iv) for each succeeding taxable year 

18 in the recovery period— 

19 ‘‘(I) described in subsection 

20 (d)(5)(A)(ii)(I), $2,325, 

21 ‘‘(II) described in the second sen22 tence of subsection (d)(5)(A), $2,900, 

23 and 

24 ‘‘(III) described in subsection 

25 (d)(5)(A)(ii)(II), $3,475.’’. 
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1 (2) YEARS AFTER RECOVERY PERIOD.—Section 

2 280F(a)(1)(B)(ii) of such Code is amended to read 

3 as follows: 

4 ‘‘(ii) LIMITATION.—The amount treat5 ed as an expense under clause (i) for any 

6 taxable year shall not exceed for any pas7 senger automobile— 

8 ‘‘(I) described in subsection 

9 (d)(5)(A)(ii)(I), $2,325, 

10 ‘‘(II) described in the second sen11 tence of subsection (d)(5)(A), $2,900, 

12 and 

13 ‘‘(III) described in subsection 

14 (d)(5)(A)(ii)(II), $3,475.’’. 

15 (3) INFLATION ADJUSTMENT.—Section 

16 280F(d)(7) of such Code (relating to automobile 

17 price inflation adjustment) is amended— 

18 (A) by striking ‘‘after 1988’’ in subpara19 graph (A) and inserting ‘‘after 2006’’, and 

20 (B) by striking subparagraph (B) and in21 serting the following new subparagraph: 

22 ‘‘(B) AUTOMOBILE PRICE INFLATION AD23 JUSTMENT.—For purposes of this paragraph— 
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1 ‘‘(i) IN GENERAL.—The automobile 

2 price inflation adjustment for any calendar 

3 year is the percentage (if any) by which— 

4 ‘‘(I) the average wage index for 

5 the preceding calendar year, exceeds 

6 ‘‘(II) the average wage index for 

7 2005. 

8 ‘‘(ii) AVERAGE WAGE INDEX.—The 

9 term ‘average wage index’ means the aver10 age wage index published by the Social Se11 curity Administration.’’. 

12 (4) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to property placed in 

14 service after the date of the enactment of this Act. 

15 (c) EXPENSING LIMITATION FOR FARM VEHICLES.— 

16 (1) IN GENERAL.—Paragraph (6) of section 

17 179(b) of the Internal Revenue Code of 1986 (relat18 ing to limitations) is amended to read as follows: 

19 ‘‘(6) LIMITATION ON COST TAKEN INTO AC20 COUNT FOR FARM VEHICLES.—The cost of any vehi21 cle described in section 280F(d)(5)(B)(iii) for any 

22 taxable year which may be taken into account under 

23 this section shall not exceed $30,000.’’. 
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1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall apply to property placed in 

3 service after the date of the enactment of this Act. 

4 SEC. 212. INCREASING THE EFFICIENCY OF MOTOR VEHI5 CLES. 

6 (a) DEFINITIONS.—In this section: 

7 (1) ALTERNATIVE FUEL.—The term ‘‘alter8 native fuel’’ has the meaning given the term in sec9 tion 32901(a) of title 49, United States Code. 

10 (2) E85.—The term ‘‘E85’’ means a fuel blend 

11 containing 85 percent ethanol and 15 percent gaso12 line or diesel by volume. 

13 (3) FLEXIBLE FUEL MOTOR VEHICLE.—The 

14 term ‘‘flexible fuel motor vehicle’’ means a light duty 

15 motor vehicle warrantied by the manufacturer of the 

16 vehicle to operate on any combination of gasoline, 

17 E85, and M85. 

18 (4) HYBRID MOTOR VEHICLE.—The term ‘‘hy19 brid motor vehicle’’ means a new qualified hybrid 

20 motor vehicle (as defined in section 30B(d)(3) of the 

21 Internal Revenue Code of 1986) that achieves at 

22 least 125 percent of the model year 2002 city fuel 

23 economy. 

24 (5) LIGHT-DUTY MOTOR VEHICLE.—The term 

25 ‘‘light-duty motor vehicle’’ means, as defined in reg-
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1 ulations promulgated by the Administrator of the 

2 Environmental Protection Agency in effect on the 

3 date of enactment of this Act— 

4 (A) a light-duty truck; or 

5 (B) a light-duty vehicle. 

6 (6) M85.—The term ‘‘M85’’ means a fuel blend 

7 containing 85 percent methanol and 15 percent gas8 oline or diesel by volume. 

9 (7) PLUG-IN HYBRID MOTOR VEHICLE.—The 

10 term ‘‘plug-in hybrid electric vehicle’’ means a hy11 brid motor vehicle that— 

12 (A) has an onboard, rechargeable storage 

13 device capable of propelling the vehicle solely by 

14 electricity for at least 10 miles; and 

15 (B) achieves at least 125 percent of the 

16 model year 2002 city fuel economy. 

17 (8) QUALIFIED MOTOR VEHICLE.—The term 

18 ‘‘qualified motor vehicle’’ means— 

19 (A) a new advanced lean burn technology 

20 motor vehicle (as defined in section 30B(c)(3) 

21 of the Internal Revenue Code of 1986) that 

22 achieves at least 125 percent of the model year 

23 2002 city fuel economy; 
59 

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1 (B) an alternative fueled automobile (as 

2 defined in section 32901(a) of title 49, United 

3 States Code); 

4 (C) a flexible fuel motor vehicle; 

5 (D) a new qualified fuel cell motor vehicle 

6 (as defined in section 30B(b)(3) of the Internal 

7 Revenue Code of 1986); 

8 (E) a hybrid motor vehicle; 

9 (F) a plug-in hybrid motor vehicle; and 

10 (G) any other appropriate motor vehicle 

11 that uses substantially new technology and 

12 achieve at least 175 percent of the model year 

13 2002 city fuel economy, as determined by the 

14 Secretary of Transportation, by regulation. 

15 (b) REQUIREMENTS.— 

16 (1) MODEL YEAR 2012.—Not less than 10 per17 cent of light-duty motor vehicles manufactured for 

18 model year 2012 and sold in the United States shall 

19 be qualified motor vehicles. 

20 (2) MODEL YEAR 2013.—Not less than 20 per21 cent of light-duty motor vehicles manufactured for 

22 model year 2013 and sold in the United States shall 

23 be qualified motor vehicles. 

24 (3) MODEL YEAR 2014.—Not less than 30 per25 cent of light-duty motor vehicles manufactured for 
60 

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1 model year 2014 and sold in the United States shall 

2 be qualified motor vehicles. 

3 (4) MODEL YEAR 2015.—Not less than 40 per4 cent of light-duty motor vehicles manufactured for 

5 model year 2015 shall be qualified motor vehicles. 

6 (5) MODEL YEAR 2016.—Not less than 50 per7 cent of light-duty motor vehicles manufactured for 

8 model year 2016 shall be qualified motor vehicles. 

9 (6) MODEL YEARS 2017 AND THEREAFTER.— 

10 Not less than 50 percent of light-duty motor vehicles 

11 manufactured for model year 2017 and each model 

12 year thereafter and sold in the United States shall 

13 be qualified motor vehicles, of which not less than 

14 10 percent shall be— 

15 (A) hybrid motor vehicles; 

16 (B) plug-in hybrid motor vehicles; 

17 (C) new advanced lean burn technology 

18 motor vehicles (as defined in section 30B(c)(3) 

19 of the Internal Revenue Code of 1986); 

20 (D) new qualified fuel cell motor vehicles 

21 (as defined in section 30B(b)(3) of the Internal 

22 Revenue Code of 1986); or 

23 (E) any other appropriate motor vehicle 

24 that uses substantially new technology and 

25 achieve at least 175 percent of the model year 
61 

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1 2002 city fuel economy, as determined by the 

2 Secretary of Transportation, by regulation. 

3 (c) RULEMAKING.—Not later than 1 year after the 

4 date of enactment of this Act, the Secretary of Transpor5 tation shall promulgate regulations to carry out this sec6 tion. 

7 TITLE III—FUEL CHOICES FOR 

8 THE 21ST CENTURY 

9 SEC. 301. INCREASE IN ALTERNATIVE FUEL VEHICLE RE10 FUELING PROPERTY CREDIT. 

11 (a) IN GENERAL.—Subsection (a) of section 30C of 

12 the Internal Revenue Code of 1986 is amended by striking 

13 ‘‘30 percent’’ and inserting ‘‘50 percent’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply to property placed in service after 

16 December 31, 2005, in taxable years ending after such 

17 date. 

18 SEC. 302. USE OF CAFE ́ PENALTIES TO BUILD ALTERNATIVE 

19 FUELING INFRASTRUCTURE. 

20 Section 32912 of title 49, United States Code, is 

21 amended by adding at the end the following 

22 ‘‘(e) ALTERNATIVE FUELING INFRASTRUCTURE

23 TRUST FUND.—(1) There is established in the Treasury 

24 of the United States a trust fund, to be known as the 

25 Alternative Fueling Infrastructure Trust Fund, consisting 
62 

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1 of such amounts as are deposited into the Trust Fund 

2 under paragraph (2) and any interest earned on invest3 ment of amounts in the Trust Fund. 

4 ‘‘(2) The Secretary of Transportation shall remit 90 

5 percent of the amount collected in civil penalties under 

6 this section to the Trust Fund. 

7 ‘‘(3)(A) The Secretary of Energy shall obligate such 

8 sums as are available in the Trust Fund to establish a 

9 grant program to increase the number of locations at 

10 which consumers may purchase alternative fuels. 

11 ‘‘(B)(i) The Secretary of Energy may award grants 

12 under this paragraph, in an amount equal to not more 

13 than $150,000 per fueling station, to— 

14 ‘‘(I) individual fueling stations; and 

15 ‘‘(II) corporations (including nonprofit corpora16 tions) with demonstrated experience in the adminis17 tration of grant funding for the purpose of alter18 native fueling infrastructure. 

19 ‘‘(ii) In awarding grants under this paragraph, the 

20 Secretary shall consider the number of vehicles in service 

21 capable of using a specific type of alternative fuel. 

22 ‘‘(iii) Grant recipients shall provide a non-Federal 

23 match of not less than $1 for every $3 of grant funds 

24 received under this paragraph. 
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1 ‘‘(iv) Each grant recipient shall select the locations 

2 for each alternative fuel station to be constructed with 

3 grant funds received under this paragraph on a formal, 

4 open, and competitive basis. 

5 ‘‘(C) Grant funds received under this paragraph may 

6 be used to— 

7 ‘‘(i) construct new facilities to dispense alter8 native fuels; 

9 ‘‘(ii) purchase equipment to upgrade, expand, 

10 or otherwise improve existing alternative fuel facili11 ties; or 

12 ‘‘(iii) purchase equipment or pay for specific 

13 turnkey fueling services by alternative fuel providers. 

14 ‘‘(D) Facilities constructed or upgraded with grant 

15 funds under this paragraph shall— 

16 ‘‘(i) provide alternative fuel available to the 

17 public for a period not less than 4 years; 

18 ‘‘(ii) establish a marketing plan to advance the 

19 sale and use of alternative fuels; 

20 ‘‘(iii) prominently display the price of alter21 native fuel on the marquee and in the station; 

22 ‘‘(iv) provide point of sale materials on alter23 native fuel; 

24 ‘‘(v) clearly label the dispenser with consistent 

25 materials; 
64 

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1 ‘‘(vi) price the alternative fuel at the same mar2 gin that is received for unleaded gasoline; and 

3 ‘‘(vii) support and use all available tax incen4 tives to reduce the cost of the alternative fuel to the 

5 lowest possible retail price. 

6 ‘‘(E) Not later than the date on which each alter7 native fuel station begins to offer alternative fuel to the 

8 public, the grant recipient that used grant funds to con9 struct such station shall notify the Secretary of Energy 

10 of such opening. The Secretary of Energy shall add each 

11 new alternative fuel station to the alternative fuel station 

12 locator on its Website when it receives notification under 

13 this subparagraph. 

14 ‘‘(F) Not later than 6 months after the receipt of a 

15 grant award under this paragraph, and every 6 months 

16 thereafter, each grant recipient shall submit a report to 

17 the Secretary of Energy that describes— 

18 ‘‘(i) the status of each alternative fuel station 

19 constructed with grant funds received under this 

20 paragraph; 

21 ‘‘(ii) the amount of alternative fuel dispensed at 

22 each station during the preceding 6-month period; 

23 and 
65 

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1 ‘‘(iii) the average price per gallon of the alter2 native fuel sold at each station during the preceding 

3 6-month period.’’. 

4 SEC. 303. MINIMUM QUANTITY OF RENEWABLE FUEL DE5 RIVED FROM CELLULOSIC BIOMASS. 

6 Section 211(o)(2)(B) of the Clean Air Act (42 U.S.C. 

7 7545(o)(2)(B)) is amended by striking clause (iii) and in8 serting the following: 

9 ‘‘(iii) MINIMUM QUANTITY DERIVED

10 FROM CELLULOSIC BIOMASS.— 

11 ‘‘(I) IN GENERAL.—The applica12 ble volume referred to in clause (ii) 

13 shall contain a minimum of— 

14 ‘‘(aa) for each of calendar 

15 years 2010 through 2012, 

16 75,000,000 gallons that are de17 rived from cellulosic biomass; and 

18 ‘‘(bb) for calendar year 2013 

19 and each calendar year there20 after, 250,000,000 gallons that 

21 are derived from cellulosic bio22 mass. 

23 ‘‘(II) RATIO.—For calendar year 

24 2010 and each calendar year there-
66 

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1 after, the 2.5-to-1 ratio referred to in 

2 paragraph (4) shall not apply.’’. 

3 SEC. 304. MINIMUM QUANTITY OF RENEWABLE FUEL DE4 RIVED FROM SUGAR. 

5 (a) IN GENERAL.—Section 211(o)(2)(B) of the Clean 

6 Air Act (42 U.S.C. 7545(o)(2)(B)) is amended by adding 

7 at the end the following: 

8 ‘‘(v) MINIMUM QUANTITY DERIVED

9 FROM SUGAR.—For calendar year 2008 

10 and each calendar year thereafter, the ap11 plicable volume referred to in clause (ii) 

12 shall contain a minimum of 100,000,000 

13 gallons that are derived from domestically14 grown sugarcane, sugar beets, or sugar 

15 components.’’. 

16 (b) APPLICABLE VOLUME.—Section 211(o)(2)(B)(i) 

17 of the Clean Air Act (42 U.S.C. 7545(o)(2)(B)(i)) is 

18 amended— 

19 (1) in the item relating to calendar year 2008, 

20 by striking ‘‘5.4’’ and inserting ‘‘5.5’’; 

21 (2) in the item relating to calendar year 2009, 

22 by striking ‘‘6.1’’ and inserting ‘‘6.2’’; 

23 (3) in the item relating to calendar year 2010, 

24 by striking ‘‘6.8’’ and inserting ‘‘6.9’’; 
67 

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1 (4) in the item relating to calendar year 2011, 

2 by striking ‘‘7.4’’ and inserting ‘‘7.5’’; and 

3 (5) in the item relating to calendar year 2012, 

4 by striking ‘‘7.5’’ and inserting ‘‘7.6’’. 

5 SEC. 305. BIOENERGY RESEARCH AND DEVELOPMENT. 

6 Section 931(c) of the Energy Policy Act of 2005 (42 

7 U.S.C. 16231(c)) is amended— 

8 (1) in paragraph (1), by striking 

9 ‘‘$213,000,000’’ and inserting ‘‘$326,000,000’’; 

10 (2) in paragraph (2), by striking 

11 ‘‘$251,000,000’’ and inserting ‘‘$377,000,000’’; and 

12 (3) in paragraph (3), by striking 

13 ‘‘$274,000,000’’ and inserting ‘‘$398,000,000’’. 

14 SEC. 306. PRODUCTION INCENTIVES FOR CELLULOSIC 

15 BIOFUELS. 

16 Section 942(f) of the Energy Policy Act of 2005 (42 

17 U.S.C. 16251(f)) is amended by striking ‘‘$250,000,000’’ 

18 and inserting ‘‘$200,000,000 for each of fiscal years 2007 

19 through 2011’’. 

20 SEC. 307. LOW-INTEREST LOAN AND GRANT PROGRAM FOR 

21 RETAIL DELIVERY OF E–85 FUEL. 

22 (a) PURPOSES OF LOANS.—Section 312(a) of the 

23 Consolidated Farm and Rural Development Act (7 U.S.C. 

24 1942(a)) is amended— 
68 

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1 (1) in paragraph (9)(B)(ii), by striking ‘‘or’’ at 

2 the end; 

3 (2) in paragraph (10), by striking the period at 

4 the end and inserting ‘‘; or’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(11) building infrastructure, including pump 

7 stations, for the retail delivery to consumers of any 

8 fuel that contains not less than 85 percent ethanol, 

9 by volume.’’. 

10 (b) PROGRAM.—Subtitle B of the Consolidated Farm 

11 and Rural Development Act (7 U.S.C. 1941 et seq.) is 

12 amended by adding at the end the following: 

13 ‘‘SEC. 320. LOW-INTEREST LOAN AND GRANT PROGRAM FOR 

14 RETAIL DELIVERY OF E–85 FUEL. 

15 ‘‘(a) IN GENERAL.—The Secretary shall establish a 

16 low-interest loan and grant program to assist farmer17 owned ethanol producers (including cooperatives and lim18 ited liability corporations) to develop and build infrastruc19 ture, including pump stations, for the retail delivery to 

20 consumers of any fuel that contains not less than 85 per21 cent ethanol, by volume. 

22 ‘‘(b) TERMS.— 

23 ‘‘(1) INTEREST RATE.—A low-interest loan 

24 under this section shall be fixed at not more than 5 

25 percent for each year. 
69 

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1 ‘‘(2) AMORTIZATION.—The repayment of a loan 

2 under this section shall be amortized over the ex3 pected life of the infrastructure project that is being 

4 financed with the proceeds of the loan. 

5 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated such sums as are nec7 essary to carry out this section.’’. 

8 (c) REGULATIONS.—As soon as practicable after the 

9 date of enactment of this Act, the Secretary of Agriculture 

10 shall promulgate such regulations as are necessary to 

11 carry out the amendments made by this section. 

12 SEC. 308. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS. 

13 (a) DEFINITIONS.—In this section: 

14 (1) TRANSIT-ORIENTED DEVELOPMENT COR15 RIDOR.—The term ‘‘Transit-Oriented Development 

16 Corridor’’ or ‘‘TODC’’ means a geographic area des17 ignated by the Secretary under subsection (b). 

18 (2) OTHER TERMS.—The terms ‘‘fixed guide 

19 way’’, ‘‘local governmental authority’’, ‘‘mass trans20 portation’’, ‘‘Secretary’’, ‘‘State’’, and ‘‘urbanized 

21 area’’ have the meanings given the terms in section 

22 5302 of title 49, United States Code. 

23 (b) TRANSIT-ORIENTED DEVELOPMENT COR24 RIDORS.— 
70 

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1 (1) IN GENERAL.—The Secretary shall develop 

2 and carry out a program to designate geographic 

3 areas in urbanized areas as Transit-Oriented Devel4 opment Corridors. 

5 (2) CRITERIA.—An area designated as a TODC 

6 under paragraph (1) shall include rights-of-way for 

7 fixed guide way mass transportation facilities (in8 cluding commercial development of facilities that 

9 have a physical and functional connection with each 

10 facility). 

11 (3) NUMBER OF TODCS.—In consultation with 

12 State transportation departments and metropolitan 

13 planning organizations, the Secretary shall des14 ignate— 

15 (A) not fewer than 10 TODCs by Decem16 ber 31, 2015; and 

17 (B) not fewer than 20 TODCs by Decem18 ber 31, 2025. 

19 (4) TRANSIT GRANTS.— 

20 (A) IN GENERAL.—The Secretary make 

21 grants to eligible states and local governmental 

22 authorities to pay the Federal share of the cost 

23 of designating geographic areas in urbanized 

24 areas as TODCs. 
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1 (B) APPLICATION.—Each eligible State or 

2 local governmental authority that desires to re3 ceive a grant under this paragraph shall submit 

4 an application to the Secretary, at such time, in 

5 such manner, and accompanied by such addi6 tional information as the Secretary may reason7 ably require. 

8 (C) LABOR STANDARDS.—Subchapter IV 

9 of chapter 31 of title 40, United States Code 

10 shall apply to projects that receive funding 

11 under this section. 

12 (D) FEDERAL SHARE.—The Federal share 

13 of the cost of a project under this subsection 

14 shall be 50 percent. 

15 (c) TODC RESEARCH AND DEVELOPMENT.—To sup16 port effective deployment of grants and incentives under 

17 this section, the Secretary shall establish a TODC re18 search and development program to conduct research on 

19 the best practices and performance criteria for TODCs. 

20 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

21 authorized to be appropriated to carry out this section 

22 $50,000,000 for each of fiscal years 2007 through 2012. 
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1 TITLE IV—NATIONWIDE ENERGY 

2 SECURITY MEDIA CAMPAIGN 

3 SEC. 401. NATIONWIDE MEDIA CAMPAIGN TO DECREASE 

4 OIL CONSUMPTION. 

5 (a) IN GENERAL.—The Secretary of Energy, acting 

6 through the Assistant Secretary for Energy Efficiency and 

7 Renewable Energy (referred to in this section as the ‘‘Sec8 retary’’), shall develop and conduct a national media cam9 paign for the purpose of decreasing oil consumption in the 

10 United States over the next decade. 

11 (b) CONTRACT WITH ENTITY.—The Secretary shall 

12 carry out subsection (a) directly or through— 

13 (1) competitively bid contracts with 1 or more 

14 nationally recognized media firms for the develop15 ment and distribution of monthly television, radio, 

16 and newspaper public service announcements; or 

17 (2) collective agreements with 1 or more nation18 ally recognized institutes, businesses, or nonprofit 

19 organizations for the funding, development, and dis20 tribution of monthly television, radio, and newspaper 

21 public service announcements. 

22 (c) USE OF FUNDS.— 

23 (1) IN GENERAL.—Amounts made available to 

24 carry out this section shall be used for the following: 

25 (A) ADVERTISING COSTS.— 
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1 (i) The purchase of media time and 

2 space. 

3 (ii) Creative and talent costs. 

4 (iii) Testing and evaluation of adver5 tising. 

6 (iv) Evaluation of the effectiveness of 

7 the media campaign. 

8 (v) The negotiated fees for the win9 ning bidder on requests from proposals 

10 issued either by the Secretary for purposes 

11 otherwise authorized in this section. 

12 (vi) Entertainment industry outreach, 

13 interactive outreach, media projects and 

14 activities, public information, news media 

15 outreach, and corporate sponsorship and 

16 participation. 

17 (B) ADMINISTRATIVE COSTS.—Operational 

18 and management expenses. 

19 (2) LIMITATIONS.—In carrying out this section, 

20 the Secretary shall allocate not less than 85 percent 

21 of funds made available under subsection (e) for 

22 each fiscal year for the advertising functions speci23 fied under paragraph (1)(A). 

24 (d) REPORTS.—The Secretary shall annually submit 

25 to Congress a report that describes— 
74 

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1 (1) the strategy of the national media campaign 

2 and whether specific objectives of the campaign were 

3 accomplished, including— 

4 (A) determinations concerning the rate of 

5 change of oil consumption, in both absolute and 

6 per capita terms; and 

7 (B) an evaluation that enables consider8 ation whether the media campaign contributed 

9 to reduction of oil consumption; 

10 (2) steps taken to ensure that the national 

11 media campaign operates in an effective and effi12 cient manner consistent with the overall strategy 

13 and focus of the campaign; 

14 (3) plans to purchase advertising time and 

15 space; 

16 (4) policies and practices implemented to ensure 

17 that Federal funds are used responsibly to purchase 

18 advertising time and space and eliminate the poten19 tial for waste, fraud, and abuse; and 

20 (5) all contracts or cooperative agreements en21 tered into with a corporation, partnership, or indi22 vidual working on behalf of the national media cam23 paign. 
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1 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $5,000,000 for each of fiscal years 2006 through 2010. 

Æ