II 

110TH CONGRESS 

1ST SESSION S. 339 

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 

JANUARY 18, 2007 

Mr. BAYH (for himself, Mr. BROWNBACK, Mr. LIEBERMAN, Mr. COLEMAN, 

Mr. GRAHAM, Mr. SALAZAR, Mr. SESSIONS, Mr. BINGAMAN, Mr. LUGAR, 

Mr. OBAMA, Ms. COLLINS, Mr. NELSON of Florida, Mr. AKAKA, Ms. 

CANTWELL, Mrs. CLINTON, Mr. DURBIN, Mrs. FEINSTEIN, Mr. KENNEDY, Mr. KERRY, Mr. KOHL, Mr. LEAHY, Mrs. LINCOLN, Mr. MENENDEZ, Mr. SCHUMER, and Mr. TESTER) 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 ‘‘Dependence Reduction through Innovation in Vehicles 

6 and Energy Act’’or the ‘‘DRIVE Act’’. 


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

2 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. 

Sec. 106. Nonregulatory measures. 

TITLE II—FUEL EFFICIENT VEHICLES FOR THE 21ST CENTURY 

Sec. 201. Tire fuel efficiency consumer information. 

Sec. 202. Tire efficiency program. 

Sec. 203. Reduction of school bus idling. 

Sec. 204. Fuel efficiency for heavy duty trucks. 

Sec. 205. Idling reduction tax credit. 

Sec. 206. Near-term vehicle technology program. 

Sec. 207. Plug-in hybrid electric and hydrogen vehicle prizes. 

Sec. 208. Lightweight materials research and development. 

Sec. 209. Hybrid and advanced diesel vehicles. 

Sec. 210. Advanced technology motor vehicles manufacturing credit. 

Sec. 211. Consumer incentives to purchase advanced technology vehicles. 

Sec. 212. Consumer incentives to purchase plug-in hybrid electric vehicles. 

Sec. 213. Federal fleet requirements. 

Sec. 214. Federal agency ethanol-blended gasoline and biodiesel purchasing requirement. 

Sec. 215. Use of the existing flexible fuel vehicle fleet of the Federal government. 

Sec. 216. Standards for executive agency automobiles. 

Sec. 217. Tax incentives for private fleets. 

Sec. 218. Reducing incentives to guzzle gas. 

Sec. 219. 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. Extension of biodiesel income and excise tax credits. 

Sec. 303. Small ethanol producer credit expanded for producers of sucrose and 

cellulosic ethanol. 

Sec. 304. Use of CAFE penalties to build alternative fueling infrastructure. 

Sec. 305. Accelerating conversion to alternative fuels infrastructure. 

Sec. 306. Increasing consumer awareness of flexible fuel automobiles. 

Sec. 307. Minimum quantity of renewable fuel derived from cellulosic biomass. 

Sec. 308. Minimum quantity of renewable fuel derived from sugar. 

Sec. 309. Bioenergy research and development. 

Sec. 310. Production incentives for cellulosic biofuels. 

Sec. 311. Low-interest loan and grant program for retail delivery of E–85 fuel. 

Sec. 312. Transit-Oriented Development Corridors. 


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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, hurts families, and 

7 harms the environment of the United States; 

8 (3) the United States currently imports more 

9 than 60 percent of the oil needed in the United 

10 States, and that percentage is expected to grow to 

11 almost 70 percent by 2025 if no actions are taken; 

12 (4) nearly 2,500,000 barrels of oil per day are 

13 imported from countries in the Persian Gulf region; 

14 (5) dependence on foreign oil has led to stra15 tegic partnerships with some regimes that do not 

16 share the democratic values of the United States; 

17 (6) terrorists have identified oil as a strategic 

18 vulnerability and have increased attacks against oil 

19 infrastructure worldwide; 

20 (7) oil imports comprise more than 31 percent 

21 of the dangerously high United States trade deficit; 

22 (8) it is technically feasible to achieve oil sav23 ings of more than 2,500,000 barrels per day by 

24 2017 and 7,000,000 barrels per day by 2026; 


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1 (9) those goals can be achieved by establishing 

2 a set of flexible policies, including— 

3 (A) increasing the efficiency of transpor4 tation; 

5 (B) providing economic incentives for man6 ufacturers and consumers to produce and pur7 chase fuel-efficient vehicles and clean alter8 native fuels; 

9 (C) encouraging the use of transit and the 

10 reduction of truck idling; and 

11 (D) the commercialization of clean alter12 native liquid fuels and expansion of alternative 

13 fuels infrastructure; 

14 (10) technology available as of the date of en15 actment of this Act (including popular hybrid-elec16 tric vehicle models, the sales of which in the United 

17 States have increased tenfold in the past 5 years) 

18 make an oil savings plan eminently achievable; 

19 (11) achieving those goals will benefit con20 sumers and businesses through lower fuel bills and 

21 reduction in world oil prices; 

22 (12) achieving those goals will help protect the 

23 economy of the United States by reducing vulner24 ability to volatile oil prices and price shocks and by 


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1 developing clean energy and energy efficiency tech2 nology in the United States; and 

3 (13) it is urgent, essential, and feasible to im4 plement an action plan to achieve oil savings as soon 

5 as practicable because any delay in initiating action 

6 will— 

7 (A) make achieving necessary oil savings 

8 more difficult and expensive; 

9 (B) increase the risks to the national secu10 rity, economy, and environment of the United 

11 States; and 

12 (C) harm consumers who want to pur13 chase, and businesses who want to provide, oil 

14 savings technologies and fuels, and harm indi15 viduals who are exposed to greater air pollution. 

16 (b) PURPOSES.—The purposes of this Act are— 

17 (1) to accelerate market penetration of ad18 vanced technology vehicles, flexible fuel vehicles, 

19 biofuels, and other oil saving technologies; 

20 (2) to enable the accelerated market penetra21 tion of efficient transportation and clean alternative 

22 fuels without adverse impact on air quality while 

23 maintaining a policy of fuel neutrality, so as to allow 

24 market forces to elect the technologies and fuels that 


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

2 and economic; 

3 (3) to provide time-limited financial incentives 

4 to encourage production and consumer purchase of 

5 oil saving technologies and fuels nationwide; and 

6 (4) to promote a nationwide diversity of clean 

7 alternative motor vehicle fuels and advanced motor 

8 vehicle technology, including advanced lean burn 

9 technology, hybrid technology, flexible fuel motor ve10 hicles, alternatively fueled motor vehicles, and other 

11 oil saving technologies. 

12 TITLE I—OIL SAVINGS PLAN AND 

13 REQUIREMENTS 

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

15 Not later than 270 days after the date of enactment 

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

17 Budget (referred to in this title as the ‘‘Director’’) shall 

18 publish in the Federal Register an action plan consisting 

19 of— 

20 (1) a list of requirements proposed or to be pro21 posed pursuant to section 102 that are authorized to 

22 be issued under law in effect on the date of enact23 ment of this Act, and this Act, that will be suffi24 cient, when taken together, to save from the baseline 

25 determined under section 105— 


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1 (A) 2,500,000 barrels of oil per day on av2 erage during calendar year 2016; 

3 (B) 7,000,000 barrels of oil per day on av4 erage during calendar year 2026; and 

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

6 during calendar year 2031; and 

7 (2) a Federal Government-wide analysis dem8 onstrating— 

9 (A) the expected oil savings from the base10 line to be accomplished by each requirement; 

11 and 

12 (B) that all such requirements, taken to13 gether, will achieve the oil savings specified in 

14 this section. 

15 SEC. 102. STANDARDS AND REQUIREMENTS. 

16 (a) IN GENERAL.—On or before the date of publica17 tion of the action plan under section 101, the Secretary 

18 of Energy, the Secretary of Transportation, the Secretary 

19 of Defense, the Secretary of Agriculture, the Secretary of 

20 the Treasury, the Administrator of the Environmental 

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

22 President determines appropriate shall each propose, or 

23 issue a notice of intent to propose, regulations establishing 

24 each standard or other requirement listed in the action 


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1 plan that is under the jurisdiction of the respective agency 

2 using authorities described in subsection (b). 

3 (b) AUTHORITIES.—The head of each agency de4 scribed in subsection (a) shall use to carry out this sec5 tion— 

6 (1) any authority in existence on the date of en7 actment of this Act (including regulations); and 

8 (2) any new authority provided under this Act 

9 (including an amendment made by this Act). 

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

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

12 agency described in subsection (a) shall promulgate final 

13 versions of the regulations required under this section. 

14 (d) CONTENT OF REGULATIONS.—Each proposed 

15 and final regulation promulgated under this section 

16 shall— 

17 (1) be sufficient to achieve at least the oil sav18 ings resulting from the regulation under the action 

19 plan published under section 101; and 

20 (2) be accompanied by an analysis by the appli21 cable agency demonstrating that the regulation will 

22 achieve the oil savings from the baseline determined 

23 under section 105. 


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1 SEC. 103. INITIAL EVALUATION. 

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

3 date of enactment of this Act, the Director shall— 

4 (1) publish in the Federal Register a Federal 

5 Government-wide analysis of— 

6 (A) the oil savings achieved from the base7 line established under section 105; and 

8 (B) the expected oil savings under the 

9 standards and requirements of this Act (and 

10 amendments made by this Act); and 

11 (2) determine whether oil savings will meet the 

12 targets established under section 101. 

13 (b) INSUFFICIENT OIL SAVINGS.—If the oil savings 

14 are less than the targets established under section 101, 

15 simultaneously with the analysis required under sub16 section (a)— 

17 (1) the Director shall publish a revised action 

18 plan that is sufficient to achieve the targets; and 

19 (2) the head of each agency referred to in sec20 tion 102(a) shall propose new or revised regulations 

21 that are sufficient to achieve the targets under sub22 sections (a), (b), and (c), respectively, of section 

23 102. 

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

25 after the date on which regulations are proposed under 

26 subsection (b)(2), the head of each agency referred to in 


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1 section 102(a) shall promulgate final versions of those reg2 ulations that comply with section 102(a). 

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) INSUFFICIENT 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 sufficient to achieve the targets; and 


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1 (2) the head of each agency referred to in sec2 tion 102(a) shall propose new or revised regulations 

3 that are sufficient to achieve the targets under sub4 sections (a), (b), and (c), respectively, of section 

5 102. 

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

7 after the date on which regulations are proposed under 

8 subsection (b)(2), the head of each agency referred to in 

9 section 102(a) shall promulgate final versions of those reg10 ulations that comply with section 102(a). 

11 SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS. 

12 In performing the analyses and promulgating pro13 posed or final regulations to establish standards and other 

14 requirements necessary to achieve the oil savings required 

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

16 Transportation, the Secretary of Defense, the Secretary 

17 of Agriculture, the Administrator of the Environmental 

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

19 President determines to be appropriate shall— 

20 (1) determine oil savings as the projected re21 duction in oil consumption from the baseline estab22 lished by the reference case contained in the report 

23 of the Energy Information Administration entitled 

24 ‘‘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 SEC. 106. NONREGULATORY MEASURES. 

10 The action plan required under section 101 and the 

11 revised action plans required under sections 103 and 104 

12 shall include— 

13 (1) a projection of the barrels of oil displaced 

14 by efficiency and sources of energy other than oil, 

15 including biofuels, electricity, and hydrogen; and 

16 (2) a projection of the barrels of oil saved 

17 through enactment of this Act and the Energy Pol18 icy Act of 2005 (42 U.S.C. 15801 et seq.). 

19 TITLE II—FUEL EFFICIENT VEHI20 CLES FOR THE 21ST CENTURY 

21 SEC. 201. TIRE FUEL EFFICIENCY CONSUMER INFORMA22 TION. 

23 (a) IN GENERAL.—Chapter 301 of title 49, United 

24 States Code, is amended by inserting after section 30123 

25 the following: 


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1 ‘‘SEC. 30123A. TIRE FUEL EFFICIENCY CONSUMER INFOR2 MATION. 

3 ‘‘(a) RULEMAKING.— 

4 ‘‘(1) IN GENERAL.—Not later than 18 months 

5 after the date of the enactment of this section, the 

6 Secretary of Transportation shall, after notice and 

7 opportunity for comment, promulgate rules estab8 lishing a national tire fuel efficiency consumer infor9 mation program for tires designed for use on motor 

10 vehicles to educate consumers about the effect of 

11 tires on automobile fuel efficiency. 

12 ‘‘(2) ITEMS TO BE INCLUDED IN RULES.—The 

13 rules promulgated under paragraph (1) shall in14 clude— 

15 ‘‘(A) a national tire fuel efficiency rating 

16 system for motor vehicle tires to assist con17 sumers in making more educated tire pur18 chasing decisions; 

19 ‘‘(B) requirements for providing informa20 tion to consumers, including point of sale infor21 mation and other potential information dissemi22 nation methods, including the Internet; 

23 ‘‘(C) specifications for test methods for 

24 manufacturers to use in assessing and rating 

25 tires to avoid variation among test equipment 

26 and manufacturers; and 


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1 ‘‘(D) a national tire maintenance consumer 

2 education program to maximize fuel efficiency, 

3 which shall include information on tire inflation 

4 pressure, alignment, rotation, and tread wear. 

5 ‘‘(b) CONSULTATION.—The Secretary shall consult 

6 with the Secretary of Energy and the Administrator of 

7 the Environmental Protection Agency on the means of 

8 conveying tire fuel efficiency consumer information. 

9 ‘‘(c) TIRE MARKING.—The Secretary may not re10 quire permanent labeling of any kind on a tire for the pur11 pose of tire fuel efficiency information. 

12 ‘‘(d) REPORTS TO CONGRESS.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall peri14 odically assess the rules promulgated under this sec15 tion to determine— 

16 ‘‘(A) the utility of such rules to consumers; 

17 ‘‘(B) the level of cooperation by industry; 

18 and 

19 ‘‘(C) the contribution to national goals per20 taining to energy consumption. 

21 ‘‘(2) SUBMISSION.—The Secretary shall submit 

22 periodic reports detailing the findings of the assess23 ments conducted under paragraph (1) to— 

24 ‘‘(A) the Committee on Commerce, 

25 Science, and Transportation of the Senate; and 


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1 ‘‘(B) the Committee on Energy and Com2 merce of the House of Representatives. 

3 ‘‘(e) APPLICABILITY.—This section shall not apply to 

4 tires excluded from coverage under section 575.104(c)(2) 

5 of title 49, Code of Federal Regulations, as in effect on 

6 date of the enactment of this section. 

7 ‘‘(f) PREEMPTION.— 

8 ‘‘(1) IN GENERAL.—A State or political subdivi9 sion of a State may not adopt or enforce a law or 

10 regulation on tire fuel efficiency consumer informa11 tion that conflicts with a requirement under this sec12 tion. 

13 ‘‘(2) SAVINGS PROVISION.—Nothing in this sec14 tion may be construed to preempt a State or polit15 ical subdivision of a State from regulating the fuel 

16 efficiency of tires if such regulation is not otherwise 

17 preempted under this section.’’. 

18 (b) ENFORCEMENT.—Section 30165(a) of title 49, 

19 United States Code, is amended by adding at the end the 

20 following: 

21 ‘‘(4) SECTION 30123A.—Any person who fails to 

22 comply with the national tire fuel efficiency con23 sumer information program under section 30123A 

24 shall be subject to the United States Government for 


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1 a civil penalty of not more than $50,000 for each 

2 violation.’’. 

3 (c) TABLE OF CONTENTS.—The table of contents for 

4 chapter 301 of title 49, United States Code, is amended 

5 by inserting after the item relating to section 30123 the 

6 following: 

‘‘30123A. Tire fuel efficiency consumer information .’’. 

7 SEC. 202. TIRE EFFICIENCY PROGRAM. 

8 (a) STANDARDS FOR TIRES MANUFACTURED FOR

9 INTERSTATE COMMERCE.—Section 30123 of title 49, 

10 United States Code, is amended— 

11 (1) in subsection (b)— 

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

13 Secretary’’ and inserting the following: 

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

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

16 (B) in the second sentence, by striking 

17 ‘‘The Secretary also shall’’ and inserting the 

18 following: 

19 ‘‘(B) INCLUSION.—The grading system es20 tablished pursuant to subparagraph (A) shall 

21 include standards for rating the fuel efficiency 

22 of tires designed for use on passenger cars and 

23 light trucks. 

24 ‘‘(2) NOMENCLATURE AND MARKETING PRAC25 TICES.—The Secretary shall’’; and 


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

2 tire standard’’ and inserting the following: 

3 ‘‘(3) EFFECT OF STANDARDS AND REGULA4 TIONS.—A tire standard’’; and 

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

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

7 ‘‘(1) DEFINED TERM.—In this subsection, the 

8 term ‘fuel economy’, with respect to a tire, means 

9 the extent to which the tire contributes to the fuel 

10 economy of the automobile on which the tire is 

11 mounted. 

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

13 and carry out a national tire fuel efficiency program 

14 for tires designed for use on passenger automobiles 

15 and light trucks. 

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

17 31, 2009, the Secretary shall issue regulations, 

18 which establish— 

19 ‘‘(A) policies and procedures for testing 

20 and labeling tires for fuel economy to enable 

21 tire buyers to make informed purchasing deci22 sions about the fuel economy of tires; 

23 ‘‘(B) policies and procedures to promote 

24 the purchase of energy efficient replacement 

25 tires, including purchase incentives, website listVerDate Aug 31 2005 18:21 Jan 22, 2007 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S339.IS S339

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1 ings on the Internet, printed fuel economy 

2 guide booklets, and mandatory requirements for 

3 tire retailers to provide tire buyers with fuel ef4 ficiency information on tires; and 

5 ‘‘(C) minimum fuel economy standards for 

6 tires. 

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

8 In promulgating minimum fuel economy standards 

9 for tires, the Secretary shall design standards that— 

10 ‘‘(A) ensure, in conjunction with the re11 quirements under paragraph (3)(B), that the 

12 average fuel economy of replacement tires is not 

13 less than the average fuel economy of tires sold 

14 as original equipment; 

15 ‘‘(B) secure the maximum technically fea16 sible and cost-effective fuel savings; 

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

18 ‘‘(D) incorporate the results from— 

19 ‘‘(i) laboratory testing; and 

20 ‘‘(ii) on-road fleet testing programs 

21 conducted by manufacturers, to the extent 

22 appropriate and available; and 

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

24 manage scrap tires. 


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

2 and standards developed under paragraph (3) shall 

3 apply to all tire types and models regulated under 

4 the uniform tire quality grading standards in section 

5 575.104 of title 49, Code of Federal Regulations (or 

6 a successor regulation). 

7 ‘‘(6) REVIEW.— 

8 ‘‘(A) IN GENERAL.—Not less frequently 

9 than once every 3 years, the Secretary shall— 

10 ‘‘(i) review the minimum fuel economy 

11 standards in effect for tires under this sub12 section; and 

13 ‘‘(ii) subject to subparagraph (B), re14 vise the standards as necessary to ensure 

15 compliance with standards described in 

16 paragraph (4). 

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

18 not reduce the average fuel economy standards 

19 applicable to replacement tires. 

20 ‘‘(7) NO PREEMPTION OF STATE LAW.—Noth21 ing in this section shall be construed to preempt any 

22 provision of State law relating to higher fuel econ23 omy standards applicable to replacement tires de24 signed for use on passenger automobiles and light 

25 trucks. 


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

2 shall apply to— 

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

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

5 the volume of tires produced or imported is less 

6 than 15,000 annually; 

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

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

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

10 12 inches or less; 

11 ‘‘(D) a motorcycle tire; or 

12 ‘‘(E) a tire manufactured specifically for 

13 use in an off-road motorized recreational vehi14 cle.’’. 

15 (b) CONFORMING AMENDMENT.—Section 

16 30103(b)(1) of title 49, United States Code, is amended 

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

18 section 30123(d), if’’. 

19 (c) TIME FOR IMPLEMENTATION.—Beginning not 

20 later than March 31, 2009, the Secretary of Transpor21 tation shall administer the national tire fuel efficiency pro22 gram established under section 30123(d) of title 49, 

23 United States Code, as added by subsection (a). 

24 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

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


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1 2008 through 2012, such sums as may be necessary to 

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

3 as added by subsection (a). 

4 SEC. 203. REDUCTION OF SCHOOL BUS IDLING. 

5 (a) STATEMENT OF POLICY.—Congress encourages 

6 each local educational agency (as defined in section 

7 9101(26) of the Elementary and Secondary Education Act 

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

9 under the Elementary and Secondary Education Act of 

10 1965 (20 U.S.C. 6301 et seq.) to develop a policy to re11 duce the incidence of school bus idling at schools while 

12 picking up and unloading students. 

13 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to the Administrator of 

15 the Environmental Protection Agency, working in coordi16 nation with the Secretary of Education, $5,000,000 for 

17 each of fiscal years 2008 through 2013 for use in edu18 cating States and local education agencies about— 

19 (1) benefits of reducing school bus idling; and 

20 (2) ways in which school bus idling may be re21 duced. 

22 SEC. 204. FUEL EFFICIENCY FOR HEAVY DUTY TRUCKS. 

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

24 is amended by inserting after chapter 329 the following: 


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1 ‘‘CHAPTER 330—HEAVY DUTY VEHICLE 

2 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. 

3 ‘‘§ 33001. Purpose and policy 

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

5 consumption by heavy duty motor vehicles. 

6 ‘‘§ 33002. Definition 

7 ‘‘In this chapter, the term ‘heavy duty motor vehi8 cle’— 

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

10 weight rating of at least 10,000 pounds that is driv11 en or drawn by mechanical power and manufactured 

12 primarily for use on public streets, roads, and high13 ways; and 

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

15 a rail line. 

16 ‘‘§ 33003. Testing and assessment 

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

18 of the Environmental Protection Agency (referred to in 

19 this section as the ‘Administrator’) shall develop and co20 ordinate a national testing and assessment program to— 


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

2 vehicles; and 

3 ‘‘(2) assess the fuel efficiency attainable 

4 through available technology. 

5 ‘‘(b) TESTING.—Not later than 18 months after the 

6 date of the enactment of this chapter, the Administrator 

7 shall design and implement a National testing program 

8 to assess the fuel economy of heavy duty vehicles that is 

9 modeled on the fuel economy program established under 

10 chapter 329. 

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

12 with the Secretary of Transportation on the assessment 

13 of available technologies to enhance the fuel efficiency of 

14 heavy duty vehicles to ensure that the assessment appro15 priately considers vehicle use and needs. 

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

17 ‘‘(1) not later than 2 years after the date of the 

18 enactment of this chapter, submit a report to Con19 gress regarding the results of the assessment of 

20 available technologies to improve the fuel efficiency 

21 of heavy duty vehicles. 

22 ‘‘(2) not less frequently than once every 2 

23 years, submit a report to Congress that addresses 

24 the fuel economy of heavy duty vehicles; and 


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1 ‘‘§ 33004. Standards 

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

3 months after completing the testing and assessments 

4 under section 33003, the Secretary of Transportation 

5 shall promulgate regulations prescribing average heavy 

6 duty vehicle fuel economy standards. Each standard shall 

7 be the maximum feasible average fuel economy level that 

8 the Secretary determines that manufacturers can achieve 

9 for that model year. The Secretary may prescribe separate 

10 standards for different classes of heavy duty motor vehi11 cles. The standards for each model year shall be completed 

12 not later than 18 months before the beginning of each 

13 model year. 

14 ‘‘(b) CONSIDERATIONS AND CONSULTATION.—In de15 termining maximum feasible average fuel economy, the 

16 Secretary shall consider— 

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

18 fuel consumption information; 

19 ‘‘(2) technological feasibility; 

20 ‘‘(3) economic practicability; 

21 ‘‘(4) the desirability of reducing United States 

22 dependence on oil; 

23 ‘‘(5) the effects of average fuel economy stand24 ards on vehicle safety; 


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1 ‘‘(6) the effects of average fuel economy stand2 ards on levels of employment and competitiveness of 

3 the heavy truck manufacturing industry; and 

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

5 out the purpose described in section 33001. 

6 ‘‘(c) COOPERATION.—The Secretary may advise, as7 sist, and cooperate with departments, agencies, and in8 strumentalities of the Federal Government, States, and 

9 other public and private agencies in developing fuel econ10 omy standards for heavy duty motor vehicles. 

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

12 Secretary shall establish, periodically review, and contin13 ually update a 5-year plan for testing heavy duty motor 

14 vehicle fuel economy standards prescribed under this chap15 ter. In developing and establishing testing priorities, the 

16 Secretary shall consider factors the Secretary considers 

17 appropriate, consistent with the purpose described in sec18 tion 33001 and the Secretary’s other duties and powers 

19 under this chapter. 

20 ‘‘§ 33005. Authorization of appropriations 

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

22 of fiscal years 2008 through 2013, such sums as may be 

23 necessary to carry out this chapter.’’. 


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1 SEC. 205. IDLING REDUCTION TAX CREDIT. 

2 (a) IN GENERAL.—Subpart D of part IV of sub3 chapter A of chapter 1 of the Internal Revenue Code of 

4 1986 (relating to business-related credits) is amended by 

5 adding at the end the following new section: 

6 ‘‘SEC. 45O. IDLING REDUCTION CREDIT. 

7 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

8 the idling reduction tax credit determined under this sec9 tion for the taxable year is an amount equal to 50 percent 

10 of the amount paid or incurred for the purchase and in11 stallation of each qualifying idling reduction device or 

12 qualifying idle reduction infrastructure placed in service 

13 by the taxpayer during the taxable year. 

14 ‘‘(b) LIMITATION.—The maximum amount allowed as 

15 a credit under subsection (a) shall not exceed $3,500 per 

16 device or per infrastructure. 

17 ‘‘(c) DEFINITIONS.—For purposes of subsection 

18 (a)— 

19 ‘‘(1) QUALIFYING IDLING REDUCTION DE20 VICE.—The term ‘qualifying idling reduction device’ 

21 means any device or system of devices which— 

22 ‘‘(A) is installed on a heavy-duty diesel23 powered on-highway vehicle, 

24 ‘‘(B) is designed to provide to such vehicle 

25 those services (such as heat, air conditioning, or 

26 electricity) that would otherwise require the opVerDate Aug 31 2005 18:21 Jan 22, 2007 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S339.IS S339

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1 eration of the main drive engine while the vehi2 cle is temporarily parked or remains stationary 

3 using either— 

4 ‘‘(i) an all electric unit, such as a bat5 tery powered unit or from grid-supplied 

6 electricity, or 

7 ‘‘(ii) a dual fuel unit powered by die8 sel or other fuels, and capable of providing 

9 such services from grid-supplied electricity 

10 or on-truck batteries alone, 

11 ‘‘(C) the original use of which commences 

12 with the taxpayer, 

13 ‘‘(D) is acquired for use by the taxpayer 

14 and not for resale, and 

15 ‘‘(E) is certified by the Secretary of En16 ergy, in consultation with the Administrator of 

17 the Environmental Protection Agency and the 

18 Secretary of Transportation, to reduce long-du19 ration idling of such vehicle at a motor vehicle 

20 rest stop or other location where such vehicles 

21 are temporarily parked or remain stationary. 

22 ‘‘(2) HEAVY-DUTY DIESEL-POWERED ON-HIGH23 WAY VEHICLE.—The term ‘heavy-duty diesel-pow24 ered on-highway vehicle’ means any vehicle, ma25 chine, tractor, trailer, or semi-trailer propelled or 


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1 drawn by mechanical power and used upon the high2 ways in the transportation of passengers or prop3 erty, or any combination thereof determined by the 

4 Federal Highway Administration. 

5 ‘‘(3) LONG-DURATION IDLING.—The term ‘long6 duration idling’ means the operation of a main drive 

7 engine, for a period greater than 15 consecutive 

8 minutes, where the main drive engine is not engaged 

9 in gear. Such term does not apply to routine stop10 pages associated with traffic movement or conges11 tion. 

12 ‘‘(4) QUALIFYING IDLE REDUCTION INFRA13 STRUCTURE.—The term ‘qualifying idle reduction 

14 infrastructure’ means either— 

15 ‘‘(A) off-truck equipment to supply electric 

16 power, including electric receptacles, boxes, wir17 ing, conduit, and other connections to one truck 

18 space, or 

19 ‘‘(B) off-truck equipment that directly pro20 vides air conditioning, heating, electric power, 

21 and other connections and services to one truck 

22 space. 

23 ‘‘(d) NO DOUBLE BENEFIT.—For purposes of this 

24 section— 


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1 ‘‘(1) REDUCTION IN BASIS.—If a credit is de2 termined under this section with respect to any 

3 property by reason of expenditures described in sub4 section (a), the basis of such property shall be re5 duced by the amount of the credit so determined. 

6 ‘‘(2) OTHER DEDUCTIONS AND CREDITS.—No 

7 deduction or credit shall be allowed under any other 

8 provision of this chapter with respect to the amount 

9 of the credit determined under this section. 

10 ‘‘(e) ELECTION NOT TO CLAIM CREDIT.—This sec11 tion shall not apply to a taxpayer for any taxable year 

12 if such taxpayer elects to have this section not apply for 

13 such taxable year.’’. 

14 (b) CREDIT TO BE PART OF GENERAL BUSINESS

15 CREDIT.—Subsection (b) of section 38 of the Internal 

16 Revenue Code of 1986 (relating to general business credit) 

17 is amended by striking ‘‘plus’’ at the end of paragraph 

18 (30), by striking the period at the end of paragraph (31) 

19 and inserting ‘‘, plus’’ , and by adding at the end the fol20 lowing new paragraph: 

21 ‘‘(32) the idling reduction tax credit determined 

22 under section 45O(a).’’. 

23 (c) CONFORMING AMENDMENTS.— 

24 (1) The table of sections for subpart D of part 

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1 enue Code of 1986 is amended by inserting after the 

2 item relating to section 45N the following new item: 

‘‘Sec. 45O. Idling reduction credit.’’. 

3 (2) Section 1016(a) of such Code is amended 

4 by striking ‘‘and’’ at the end of paragraph (36), by 

5 striking the period at the end of paragraph (37) and 

6 inserting ‘‘, and’’, and by adding at the end the fol7 lowing: 

8 ‘‘(38) in the case of a facility with respect to 

9 which a credit was allowed under section 45O, to the 

10 extent provided in section 45O(d)(1).’’. 

11 (3) Section 6501(m) of such Code is amended 

12 by inserting ‘‘45O(e),’’ after ‘‘45D(c)(4),’’. 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2006. 

16 (e) DETERMINATION OF CERTIFICATION STANDARDS

17 BY SECRETARY OF ENERGY FOR CERTIFYING IDLING RE18 DUCTION DEVICES.—Not later than 6 months after the 

19 date of the enactment of this Act and in order to reduce 

20 air pollution and fuel consumption, the Secretary of En21 ergy, in consultation with the Administrator of the Envi22 ronmental Protection Agency and the Secretary of Trans23 portation, shall publish the standards under which the 

24 Secretary, in consultation with the Administrator of the 

25 Environmental Protection Agency and the Secretary of 


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1 Transportation, will, for purposes of section 45O of the 

2 Internal Revenue Code of 1986 (as added by this section), 

3 certify the idling reduction devices and idling reduction in4 frastructure which will reduce long-duration idling of vehi5 cles at motor vehicle rest stops or other locations where 

6 such vehicles are temporarily parked or remain stationary 

7 in order to reduce air pollution and fuel consumption. 

8 SEC. 206. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM. 

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

10 enhance the energy security of the United States, reduce 

11 dependence on imported oil, improve the energy efficiency 

12 of the transportation sector, and reduce emissions through 

13 the expansion of grid-supported mobility by— 

14 (1) developing, in partnership with private in15 dustry, research institutions, National Laboratories, 

16 and institutions of higher education, projects to pro17 mote— 

18 (A) the commercialization of electric drive 

19 transportation technology and hybrid vehicle 

20 technology for various sizes and applications of 

21 vehicles, including the commercialization of 

22 plug-in hybrid electric vehicles and plug-in hy23 brid fuel cell vehicles; 

24 (B) growth in employment in the United 

25 States in— 


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1 (i) electric drive transportation tech2 nology and hybrid vehicle system design; 

3 and 

4 (ii) the manufacturing of electric drive 

5 and hybrid components and vehicles; 

6 (C) the validation of the potential for plug7 in hybrid vehicles through fleet demonstrations 

8 and data collection; and 

9 (D) the acceleration of fuel cell commer10 cialization through comprehensive development 

11 and commercialization of the electric drive 

12 transportation technology systems that are the 

13 foundational technology of the fuel cell vehicle 

14 system; 

15 (2) making critical public investments to help 

16 private industry, research institutions, National Lab17 oratories, and institutions of higher education to ex18 pand innovation, industrial growth, and jobs in the 

19 United States through the development, demonstra20 tion, and commercialization of a wide range of elec21 tric drive transportation technology and hybrid tech22 nology components, systems, and vehicles using di23 verse transportation technologies; 

24 (3) optimizing the availability of the existing 

25 electric infrastructure for fueling light-duty transVerDate Aug 31 2005 18:21 Jan 22, 2007 Jkt 059200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S339.IS S339

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1 portation and other on-road and nonroad vehicles in 

2 lieu of vehicles and equipment that use petroleum, 

3 including the more than 3,000,000 reported units 

4 (such as electric forklifts, golf carts, and similar 

5 nonroad vehicles) in use on the date of enactment of 

6 this Act; and 

7 (4) developing advanced communication, meter8 ing, and charging technologies necessary for the in9 tegration of electric drive transportation technology 

10 into the smart grid of the future. 

11 (b) DEFINITIONS.—In this section: 

12 (1) ADMINISTRATOR.—The term ‘‘Adminis13 trator’’ means the Administrator of the Environ14 mental Protection Agency. 

15 (2) BATTERY.—The term ‘‘battery’’ means an 

16 electrochemical energy storage device used in an on17 road or nonroad vehicle powered in whole or in part 

18 using an off-board or on-board source of electricity. 

19 (3) ELECTRIC DRIVE TRANSPORTATION TECH20 NOLOGY.—The term ‘‘electric drive transportation 

21 technology’’ means— 

22 (A) vehicles that use an electric motor for 

23 all or part of the motive power of the vehicles 

24 and that may or may not use off-board elec25 tricity, including battery electric vehicles, fuel 


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1 cell vehicles, engine dominant hybrid vehicles, 

2 plug-in hybrid electric vehicles, plug-in hybrid 

3 fuel cell vehicles, and electric rail; or 

4 (B) equipment relating to transportation 

5 or mobile sources of air pollution that use an 

6 electric motor to replace an internal combustion 

7 engine for all or part of the work of the equip8 ment, including— 

9 (i) corded electric equipment linked to 

10 transportation or mobile sources of air pol11 lution; and 

12 (ii) electrification technologies at air13 ports, ports, truck stops, and material-han14 dling facilities. 

15 (4) ENERGY STORAGE DEVICE.— 

16 (A) IN GENERAL.—The term ‘‘energy stor17 age device’’ means the onboard device used in 

18 an on-road or nonroad vehicle to store energy. 

19 (B) INCLUSIONS.—The term ‘‘energy stor20 age device’’ includes— 

21 (i) in the case of an electric or hybrid 

22 electric vehicle, a battery, ultracapacitor, 

23 or similar device; and 

24 (ii) in the case of a hybrid hydraulic 

25 vehicle, an accumulator or similar device. 


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1 (5) ENGINE DOMINANT HYBRID VEHICLE.—The 

2 term ‘‘engine dominant hybrid vehicle’’ means an 

3 on-road or nonroad vehicle that— 

4 (A) is propelled by an internal combustion 

5 engine or heat engine using— 

6 (i) any combustible fuel; and 

7 (ii) an on-board, rechargeable energy 

8 storage device; and 

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

10 source of energy. 

11 (6) FUEL CELL VEHICLE.—The term ‘‘fuel cell 

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

13 uses a fuel cell (as defined in section 803 of the 

14 Spark M. Matsunaga Hydrogen Research, Develop15 ment, and Demonstration Act of 1990 (42 U.S.C. 

16 16152)). 

17 (7) INSTITUTION OF HIGHER EDUCATION.—The 

18 term ‘‘institution of higher education’’ has the 

19 meaning given the term in section 2 of the Energy 

20 Policy Act of 2005 (42 U.S.C. 15801). 

21 (8) NONROAD VEHICLE.—The term ‘‘nonroad 

22 vehicle’’ means a vehicle powered by a nonroad en23 gine, as that term is defined in section 216 of the 

24 Clean Air Act (42 U.S.C. 7550). 


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1 (9) PLUG-IN HYBRID ELECTRIC VEHICLE.—The 

2 term ‘‘plug-in hybrid electric vehicle’’ means a light3 duty, medium-duty, or heavy-duty on-road or 

4 nonroad vehicle that is propelled by any combination 

5 of— 

6 (A) an electric motor and on-board, re7 chargeable energy storage system capable of op8 erating the vehicle in intermittent or continuous 

9 all-electric mode and which is rechargeable 

10 using an off-board source of electricity; and 

11 (B) an internal combustion engine or heat 

12 engine using any combustible fuel. 

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

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

15 fuel cell vehicle with an on-board, rechargeable stor16 age device powered by an off-board source of elec17 tricity. 

18 (11) QUALIFIED ELECTRIC TRANSPORTATION

19 PROJECT.—The term ‘‘qualified electric transpor20 tation project’’ includes a project relating to— 

21 (A) ship-to-shore electrification; 

22 (B) truck-stop electrification; 

23 (C) electric truck refrigeration units; 

24 (D) electric airport ground support equip25 ment; 


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1 (E) electric material handing equipment; 

2 (F) electric or dual-mode electric freight 

3 rail; and 

4 (G) any associated infrastructure, includ5 ing panel upgrades, battery chargers, and 

6 trenching. 

7 (12) SECRETARY.—The term ‘‘Secretary’’ 

8 means the Secretary of Energy. 

9 (13) TASK FORCE.—The term ‘‘Task Force’’ 

10 means the task force established under subsection 

11 (e)(2)(A). 

12 (c) ELECTRIC DRIVE AND HYBRID TRANSPORTATION

13 RESEARCH AND DEVELOPMENT.—The Secretary shall 

14 carry out a research, development, demonstration, and 

15 commercial application program for electric drive trans16 portation technology and engine dominant hybrid vehicle 

17 technology, including— 

18 (1) high capacity, high efficiency energy storage 

19 devices that, as compared to existing technologies 

20 that are in commercial service, have improved the 

21 life, energy storage capacity, and power delivery ca22 pacity of the energy storage device; 

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

24 charging components; 


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1 (3) high power and energy-efficient drive train 

2 systems for passenger and commercial vehicles and 

3 for nonroad vehicles; 

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 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) energy storage device life; 

18 (ii) reduction of petroleum consump19 tion; and 

20 (iii) greenhouse gas reduction; 

21 (5) nanomaterial technology applied to energy 

22 storage device and fuel cell systems; and 

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1 tween the grid of the future and electric drive trans2 portation technology vehicles. 

3 (d) MARKET ASSESSMENT AND ELECTRICITY USAGE

4 PROGRAM.— 

5 (1) IN GENERAL.—The Secretary, in consulta6 tion with the Administrator and private industry, 

7 shall carry out a program— 

8 (A) to inventory and analyze existing elec9 tric drive transportation technologies and hy10 brid technologies and markets; 

11 (B) to identify and implement methods of 

12 removing barriers for existing and emerging ap13 plications of electric drive transportation tech14 nologies and hybrid transportation technologies; 

15 (C) to work with utilities to develop low16 cost, simple methods of— 

17 (i) using off-peak electricity; or 

18 (ii) managing on-peak electricity use; 

19 (D) to develop systems and processes— 

20 (i) to enable plug-in hybrid vehicles to 

21 enhance the availability of emergency back22 up power for consumers; and 

23 (ii) to study and demonstrate the po24 tential value to the electric grid to use the 

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1 tems to improve the efficiency and reli2 ability of the grid generation system; and 

3 (E) to work with utilities and other inter4 ested stakeholders to study and demonstrate 

5 the implications of the introduction of plug-in 

6 hybrid vehicles and other types of electric trans7 portation on the production of electricity from 

8 renewable resources. 

9 (2) OFF-PEAK ELECTRICITY USAGE GRANTS.— 

10 In carrying out the program under paragraph (1), 

11 the Secretary shall provide grants to assist eligible 

12 public and private electric utilities for the conduct of 

13 programs or activities to encourage owners of elec14 tric drive transportation technologies— 

15 (A) to use off-peak electricity; or 

16 (B) to have the load managed by the util17 ity. 

18 (e) PLUG-IN HYBRID ELECTRIC VEHICLE, ELECTRIC

19 DRIVE TRANSPORTATION TECHNOLOGY, AND HYBRID

20 VEHICLE TESTING AND CERTIFICATION PROGRAM.— 

21 (1) TESTING PROGRAM.— 

22 (A) IN GENERAL.—To facilitate the intro23 duction of plug-in hybrid electric vehicles, elec24 tric drive transportation technologies, and hy25 brid vehicle technologies into commercial use, 


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1 the Secretary, in consultation with the Adminis2 trator and in collaboration with private indus3 try, shall develop and carry out a program to 

4 test the emissions of criteria pollutants, energy 

5 use, and the petroleum reduction potential of 

6 light-duty, medium-duty, and heavy-duty plug7 in hybrid electric vehicles and other forms of 

8 electric drive transportation technologies under 

9 test conditions and actual driving conditions. 

10 (B) TEST PROCEDURES.— 

11 (i) DEVELOPMENT.—In developing 

12 test procedures for the program under sub13 paragraph (A), the Secretary shall take 

14 into account the results of previous testing 

15 activities of the public and private sectors. 

16 (ii) CONSIDERATIONS.—The test pro17 cedures developed for the program under 

18 subparagraph (A) shall consider— 

19 (I) the vehicle and fuel as a sys20 tem, not just an engine; 

21 (II) nightly off-board charging, 

22 as applicable; and 

23 (III) different engine-turn on 

24 speed control strategies. 


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1 (C) FIELD OPERATIONS PROGRAM.—In 

2 conducting tests under the program under sub3 paragraph (A), the Secretary shall use the ca4 pabilities of the Field Operations Program and 

5 qualified vehicle testing sites of the Department 

6 of Energy. 

7 (2) CERTIFICATION STANDARDS TASK FORCE.— 

8 (A) IN GENERAL.—Not later than 180 

9 days after the date of enactment of this Act, 

10 the Administrator, in cooperation with the Sec11 retary, shall establish a task force to develop 

12 minimum certification standards for plug-in hy13 brid electric vehicles. 

14 (B) COMPOSITION.—The Task Force shall 

15 be comprised of members, to be appointed by 

16 the Administrator, that represent— 

17 (i) vehicle manufacturers; 

18 (ii) environmental organizations; 

19 (iii) utilities; 

20 (iv) fleet operators; 

21 (v) research organizations; and 

22 (vi) appropriate Federal agencies, in23 cluding the Department of Transportation 

24 and the Department of Energy. 

25 (C) DUTIES.—The Task Force shall— 


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1 (i) identify critical path issues in the 

2 establishment of a certification protocol; 

3 (ii) identify criteria for the establish4 ment of a plug-in hybrid electric vehicle 

5 certification protocol that would be applica6 ble to various plug-in hybrid vehicle tech7 nologies, applications, and control strate8 gies; 

9 (iii) evaluate test data available from 

10 plug-in hybrid electric vehicle test pro11 grams and fuel economy analyses; 

12 (iv) work with the Administrator to 

13 develop guidelines to permit the emissions 

14 reductions attributable to the use of plug15 in hybrid vehicles to be recognized for pur16 poses of State implementation plans; and 

17 (v) recommend a certification protocol 

18 for certifying the emissions, fuel economy, 

19 and petroleum usage of plug-in hybrid elec20 tric vehicles. 

21 (D) FINAL CERTIFICATION PROTOCOL.— 

22 (i) IN GENERAL.—Not later than 18 

23 months after the date of enactment of this 

24 Act, the Administrator shall— 


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1 (I) publish in the Federal Reg2 ister the recommended certification 

3 protocol developed under subpara4 graph (C)(v); and 

5 (II) provide an opportunity for 

6 public comment with respect to the 

7 recommended certification protocol. 

8 (ii) PUBLICATION.—Not later than 2 

9 years after the date of enactment of this 

10 Act, the Administrator shall publish in the 

11 Federal Register the final certification pro12 tocol for plug-in hybrid electric vehicles. 

13 (f) EDUCATION PROGRAM.— 

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

15 a nationwide electric drive transportation technology 

16 program under which the Secretary provides— 

17 (A) to secondary schools and high schools, 

18 teaching materials; and 

19 (B) to institutions of higher education, as20 sistance for programs relating to electric drive 

21 system and component engineering. 

22 (2) ELECTRIC VEHICLE COMPETITION.—The 

23 program established under paragraph (1) shall in24 clude a plug-in hybrid electric vehicle competition for 

25 institutions of higher education, which shall be 


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1 known as the ‘‘Dr. Andrew Frank Plug-In Hybrid 

2 Electric Vehicle Competition’’. 

3 (3) ENGINEERS.—In carrying out the program 

4 established under paragraph (1), the Secretary shall 

5 provide financial assistance to institutions of higher 

6 education to create new, or support existing, degree 

7 programs to ensure the availability of trained elec8 trical and mechanical engineers with the skills nec9 essary for the advancement of— 

10 (A) plug-in hybrid electric vehicles; and 

11 (B) other forms of electric drive transpor12 tation technology vehicles. 

13 (g) NEAR-TERM ELECTRIC TRANSPORTATION DE14 PLOYMENT PROGRAM.— 

15 (1) IN GENERAL.—Not later than 1 year after 

16 the date of enactment of this Act, the Administrator, 

17 after consultation with the Secretary and the Sec18 retary of Transportation, shall establish a program 

19 under which the Administrator shall provide grants 

20 and loans to eligible entities for the conduct of quali21 fied electric transportation projects that would re22 duce emissions of criteria pollutants, greenhouse gas 

23 emissions, and petroleum usage by at least 40 per24 cent as compared to commercially available, non25 electric technologies. 


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1 (2) GRANTS.— 

2 (A) IN GENERAL.—Of the amounts made 

3 available for grants under paragraph (1)— 

(i) 2 4 ⁄3 shall be made available by the 

5 Administrator on a competitive basis to 

6 qualified electric transportation projects 

7 based on the overall cost-effectiveness of 

8 the projects in reducing emissions of cri9 teria pollutants, emissions of greenhouse 

10 gases, and petroleum usage; and 

(ii) 1 11 ⁄3 shall be made available by the 

12 Administrator to qualified electric trans13 portation projects in the order that the 

14 grant applications are received, provided 

15 that the projects meet the minimum stand16 ard for the reduction of emissions of cri17 teria pollutants, emissions of greenhouse 

18 gases, and petroleum usage under para19 graph (1). 

20 (B) PREFERENCE.—In providing grants 

21 under this subsection, the Administrator shall 

22 give preference to large-scale projects and large 

23 -scale aggregators of projects. 

24 (3) REVOLVING LOAN PROGRAM.— 


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1 (A) IN GENERAL.—The Administrator 

2 shall establish a revolving loan program to pro3 vide loans to eligible entities for the conduct of 

4 qualified electric transportation projects. 

5 (B) CRITERIA.—The Administrator shall 

6 establish criteria for the provision of loans 

7 under this paragraph. 

8 (C) FUNDING.—Of amounts made avail9 able to carry out this subsection, the Adminis10 trator shall use any amounts not used to pro11 vide grants under paragraph (2) to carry out 

12 the revolving loan program under this para13 graph. 

14 (h) COST-SHARING REQUIREMENT.—Notwith15 standing section 988(c) of the Energy Policy Act of 2005 

16 (42 U.S.C. 16352(c)), the non-Federal share of the cost 

17 of carrying out any activities assisted under this section 

18 shall be 30 percent. 

19 (i) MERIT REVIEW.—Notwithstanding section 989 of 

20 the Energy Policy Act of 2005 (42 U.S.C. 16353)— 

21 (1) of the amounts made available to carry out 

22 this section under subsection (j)— 

23 (A) not more than 30 percent shall be pro24 vided to National Laboratories; 


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1 (B) not more than 10 percent shall be pro2 vided, directly or indirectly, to projects for the 

3 development or demonstration of fuel cell vehi4 cles or plug-in hybrid fuel cell vehicles; and 

5 (C) not more than 5 percent shall be pro6 vided, directly or indirectly, to projects for the 

7 development or demonstration of electric rail or 

8 magnetic levitation trains; and 

9 (2) of the amounts made available to carry out 

10 subsection (g) under subsection (j)(2), not more 

11 than 30 percent shall be provided, directly or indi12 rectly, to ship-to-shore electrification projects. 

13 (j) AUTHORIZATION OF APPROPRIATIONS.— 

14 (1) IN GENERAL.—There is authorized to be 

15 appropriated to carry out this section (other than 

16 subsection (g)) $110,000,000 for each of fiscal years 

17 2008 through 2013. 

18 (2) NEAR-TERM ELECTRIC TRANSPORTATION

19 DEPLOYMENT PROGRAM.—There is authorized to be 

20 appropriated to carry out subsection (g) 

21 $125,000,000 for each of fiscal years 2008 through 

22 2013. 


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1 SEC. 207. PLUG-IN HYBRID ELECTRIC AND HYDROGEN VE2 HICLE PRIZES. 

3 Section 1008 of the Energy Policy Act of 2005 (42 

4 U.S.C. 16396) is amended— 

5 (1) in subsection (c), by inserting ‘‘, including 

6 plug-in hybrid and hydrogen vehicle technologies’’ 

7 before the period at the end; and 

8 (2) in subsection (e)(2)— 

9 (A) by striking ‘‘$5,000,000’’ and inserting 

10 ‘‘$450,000,000’’; and 

11 (B) by inserting ‘‘, to remain available 

12 until expended’’ before the period at the end. 

13 SEC. 208. LIGHTWEIGHT MATERIALS RESEARCH AND DE14 VELOPMENT. 

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

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

17 shall establish a research and development program to de18 termine ways in which— 

19 (1) the weight of vehicles may be reduced to im20 prove fuel efficiency without compromising pas21 senger safety; and 

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

23 steel alloys and carbon fibers) required for the con24 struction of lighter-weight vehicles may be reduced. 


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1 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $60,000,000 for each of fiscal years 2008 through 2013. 

4 SEC. 209. HYBRID AND ADVANCED DIESEL VEHICLES. 

5 (a) HYBRID VEHICLES.—Section 711 of the Energy 

6 Policy Act of 2005 (42 U.S.C. 16061) is amended to read 

7 as follows: 

8 ‘‘SEC. 711. HYBRID VEHICLES. 

9 ‘‘(a) DEFINITIONS.—In this section: 

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

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

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

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

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

15 project’ means a project to— 

16 ‘‘(A) improve hybrid technologies under 

17 subsection (b); or 

18 ‘‘(B) encourage domestic production of ef19 ficient hybrid and advanced diesel vehicles 

20 under section 712(a). 

21 ‘‘(3) GUARANTEE.— 

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

23 has the meaning given the term ‘loan guar24 antee’ in section 502 of the Federal Credit Re25 form Act of 1990 (2 U.S.C. 661a). 


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

2 includes a loan guarantee commitment (as de3 fined in section 502 of the Federal Credit Re4 form Act of 1990 (2 U.S.C. 661a)). 

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

6 technology’ means a battery or other rechargeable 

7 energy storage system, power electronic, hybrid sys8 tems integration, and any other technology for use 

9 in hybrid vehicles (including plug-in hybrid electric 

10 vehicles and the components of the vehicles). 

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

12 means the loan or other debt obligation that is guar13 anteed under this section. 

14 ‘‘(b) AUTHORIZATION.—The Secretary shall accel15 erate efforts directed toward the improvement of hybrid 

16 technologies, including through the provision of loan guar17 antees under subsection (c). 

18 ‘‘(c) LOAN GUARANTEES.— 

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

20 guarantees under this section for eligible projects on 

21 such terms and conditions as the Secretary, in con22 sultation with the Secretary of the Treasury, deter23 mines to be appropriate. 

24 ‘‘(2) SPECIFIC APPROPRIATION OR CONTRIBU25 TION.—No guarantee shall be made unless— 


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

2 been made; or 

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

4 borrower a payment in full for the cost of the 

5 obligation and deposited the payment into the 

6 Treasury. 

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

8 law, a guarantee by the Secretary shall not exceed 

9 an amount equal to 80 percent of the project cost 

10 of the hybrid technology that is the subject of the 

11 guarantee, as estimated at the time at which the 

12 guarantee is issued. 

13 ‘‘(4) REPAYMENT.— 

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

15 made unless the Secretary determines that 

16 there is a reasonable prospect of repayment of 

17 the principal and interest on the obligation by 

18 the borrower. 

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

20 made unless the Secretary determines that the 

21 amount of the obligation (when combined with 

22 amounts available to the borrower from other 

23 sources) will be sufficient to carry out the 

24 project. 


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1 ‘‘(C) SUBORDINATION.—The obligation 

2 shall be subject to the condition that the obliga3 tion is not subordinate to other financing. 

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

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

6 the Secretary determines appropriate, taking into 

7 account the prevailing rate of interest in the private 

8 sector for similar loans and risks. 

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

10 require full repayment over a period not to exceed 

11 the lesser of— 

12 ‘‘(A) 30 years; or 

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

14 of the physical asset to be financed by the obli15 gation (as determined by the Secretary). 

16 ‘‘(7) DEFAULTS.— 

17 ‘‘(A) PAYMENT BY SECRETARY.— 

18 ‘‘(i) IN GENERAL.—If a borrower de19 faults on the obligation (as defined in reg20 ulations promulgated by the Secretary and 

21 specified in the guarantee contract), the 

22 holder of the guarantee shall have the 

23 right to demand payment of the unpaid 

24 amount from the Secretary. 


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1 ‘‘(ii) PAYMENT REQUIRED.—Within 

2 such period as may be specified in the 

3 guarantee or related agreements, the Sec4 retary shall pay to the holder of the guar5 antee the unpaid interest on, and unpaid 

6 principal of the obligation as to which the 

7 borrower has defaulted, unless the Sec8 retary finds that— 

9 ‘‘(I) there was no default by the 

10 borrower in the payment of interest or 

11 principal; or 

12 ‘‘(II) the default has been rem13 edied. 

14 ‘‘(iii) FORBEARANCE.—Nothing in 

15 this subsection precludes any forbearance 

16 by the holder of the obligation for the ben17 efit of the borrower that may be agreed 

18 upon by the parties to the obligation and 

19 approved by the Secretary. 

20 ‘‘(B) SUBROGATION.— 

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

22 makes a payment under subparagraph (A), 

23 the Secretary shall be subrogated to the 

24 rights of the recipient of the payment as 

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1 ments including, where appropriate, the 

2 authority (notwithstanding any other pro3 vision of law) to— 

4 ‘‘(I) complete, maintain, operate, 

5 lease, or otherwise dispose of any 

6 property acquired pursuant to the 

7 guarantee or related agreements; or 

8 ‘‘(II) permit the borrower, pursu9 ant to an agreement with the Sec10 retary, to continue to pursue the pur11 poses of the eligible project, as the 

12 Secretary determines to be in the pub13 lic interest. 

14 ‘‘(ii) SUPERIORITY OF RIGHTS.—The 

15 rights of the Secretary, with respect to any 

16 property acquired pursuant to a guarantee 

17 or related agreement, shall be superior to 

18 the rights of any other person with respect 

19 to the property. 

20 ‘‘(iii) TERMS AND CONDITIONS.—A 

21 guarantee agreement shall include such de22 tailed terms and conditions as the Sec23 retary determines appropriate to— 


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1 ‘‘(I) protect the interests of the 

2 United States in the case of default; 

3 and 

4 ‘‘(II) have available all the pat5 ents and technology necessary for any 

6 person selected, including the Sec7 retary, to complete and operate the el8 igible project. 

9 ‘‘(C) PAYMENT OF PRINCIPAL AND INTER10 EST BY SECRETARY.—With respect to any obli11 gation guaranteed under this section, the Sec12 retary may enter into a contract to pay, and 

13 pay, holders of the obligation, for and on behalf 

14 of the borrower, from funds appropriated for 

15 that purpose, the principal and interest pay16 ments that become due and payable on the un17 paid balance of the obligation if the Secretary 

18 finds that— 

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

20 the payments and is not in default; 

21 ‘‘(II) it is in the public interest to per22 mit the borrower to continue to pursue the 

23 purposes of the eligible project; and 

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

25 Federal Government in paying the prinVerDate Aug 31 2005 18:21 Jan 22, 2007 Jkt 059200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S339.IS S339

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1 cipal and interest will be greater than the 

2 benefit that would result in the event of a 

3 default; 

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

5 the Secretary is authorized to pay will be 

6 no greater than the amount of principal 

7 and interest that the borrower is obligated 

8 to pay under the agreement being guaran9 teed; and 

10 ‘‘(iii) the borrower agrees to reim11 burse the Secretary for the payment (in12 cluding interest) on terms and conditions 

13 that are satisfactory to the Secretary. 

14 ‘‘(D) ACTION BY ATTORNEY GENERAL.— 

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

16 defaults on an obligation, the Secretary 

17 shall notify the Attorney General of the de18 fault. 

19 ‘‘(ii) RECOVERY.—On receipt of noti20 fication, the Attorney General shall take 

21 such action as the Attorney General deter22 mines to be appropriate to recover the un23 paid principal and interest due from— 


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1 ‘‘(I) such assets of the defaulting 

2 borrower as are associated with the 

3 obligation; or 

4 ‘‘(II) any other security pledged 

5 to secure the obligation. 

6 ‘‘(8) FEES.— 

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

8 charge and collect fees for guarantees in 

9 amounts the Secretary determines are sufficient 

10 to cover applicable administrative expenses. 

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

12 this paragraph shall— 

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

14 the Treasury; and 

15 ‘‘(ii) remain available until expended, 

16 subject to such other conditions as are con17 tained in annual appropriations Acts. 

18 ‘‘(9) RECORDS; AUDITS.— 

19 ‘‘(A) IN GENERAL.—A recipient of a guar20 antee shall keep such records and other perti21 nent documents as the Secretary shall prescribe 

22 by regulation, including such records as the 

23 Secretary may require to facilitate an effective 

24 audit. 


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

2 Comptroller General of the United States, or 

3 their duly authorized representatives, shall have 

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

5 and other pertinent documents. 

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

7 faith and credit of the United States is pledged to 

8 the payment of all guarantees issued under this sec9 tion with respect to principal and interest. 

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

11 are authorized to be appropriated such sums as are nec12 essary to provide the cost of guarantees under this sec13 tion.’’. 

14 (b) EFFICIENT HYBRID AND ADVANCED DIESEL VE15 HICLES.—Section 712(a) of the Energy Policy Act of 2005 

16 (42 U.S.C. 16062(a)) is amended in the second sentence 

17 by striking ‘‘grants to automobile manufacturers’’ and in18 serting ‘‘grants and the provision of loan guarantees under 

19 section 711(c) to automobile manufacturers and sup20 pliers’’. 

21 SEC. 210. ADVANCED TECHNOLOGY MOTOR VEHICLES MAN22 UFACTURING CREDIT. 

23 (a) IN GENERAL.—Subpart B of part IV of sub24 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 (relating to foreign tax credit, etc.) is amended by 

2 adding at the end the following new section: 

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

4 MANUFACTURING CREDIT. 

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

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

7 taxable year an amount equal to 35 percent of the quali8 fied investment of an eligible taxpayer for such taxable 

9 year. 

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

11 section— 

12 ‘‘(1) IN GENERAL.—The term ‘qualified invest13 ment’ means, with respect to any taxable year, the 

14 sum of— 

15 ‘‘(A) the costs paid or incurred by the eli16 gible taxpayer during such taxable year— 

17 ‘‘(i) to re-equip, expand, or establish 

18 any manufacturing facility in the United 

19 States of the eligible taxpayer to produce 

20 advanced technology motor vehicles or to 

21 produce eligible components, and 

22 ‘‘(ii) for qualified research (as defined 

23 in section 41(d)) related to advanced tech24 nology motor vehicles and eligible compo25 nents performed in the United States, and 


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1 ‘‘(B) qualified engineering integration 

2 costs performed in the United States. 

3 ‘‘(2) ATTRIBUTION RULES.—For purposes of 

4 paragraph (1)(A)(i), in the case of a manufacturing 

5 facility of the eligible taxpayer which produces both 

6 advanced technology motor vehicles and other motor 

7 vehicles, or eligible components and other compo8 nents, only the amount paid or incurred for the pro9 duction of advanced technology motor vehicles and 

10 eligible components shall be taken into account. 

11 ‘‘(c) ELIGIBLE TAXPAYER.—For purposes of this sec12 tion— 

13 ‘‘(1) IN GENERAL.—The term ‘eligible taxpayer’ 

14 means— 

15 ‘‘(A) any motor vehicle manufacturer if 

16 more than 50 percent of its gross receipts for 

17 the taxable year is derived from the manufac18 ture of motor vehicles or any component parts 

19 of such vehicles, and 

20 ‘‘(B) any motor vehicle component parts 

21 manufacturer if more than 20 percent of its 

22 gross receipts for the taxable year is derived 

23 from the manufacture of any component parts 

24 of motor vehicles. 


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1 ‘‘(2) MOTOR VEHICLE MANUFACTURER.—The 

2 term ‘motor vehicle manufacturer’ means any tax3 payer who manufacturers motor vehicles. 

4 ‘‘(3) MOTOR VEHICLE COMPONENT PARTS MAN5 UFACTURER.—The term ‘motor vehicle component 

6 parts manufacturer’ means any taxpayer who manu7 factures motor vehicle component parts, but is not 

8 a motor vehicle manufacturer. 

9 ‘‘(d) DEFINITIONS.—For purposes of this section— 

10 ‘‘(1) ADVANCED TECHNOLOGY MOTOR VEHI11 CLE.—The term ‘advanced technology motor vehicle’ 

12 means— 

13 ‘‘(A) any new qualified fuel cell motor vehi14 cle (as defined in section 30B(b)(3)); 

15 ‘‘(B) any new advanced lean burn tech16 nology motor vehicle (as defined in section 

17 30B(c)(3)); 

18 ‘‘(C) any new qualified hybrid motor vehi19 cle (as defined in section 30B(d)(3)(A) and de20 termined without regard to any gross vehicle 

21 weight rating); 

22 ‘‘(D) any new qualified alternative motor 

23 fuel vehicle (as defined in section 30B(e)(4)); 

24 ‘‘(E) any plug-in hybrid electric vehicle; 

25 and 


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1 ‘‘(F) any electric vehicle. 

2 ‘‘(2) ELIGIBLE COMPONENTS.—The term ‘eligi3 ble component’ means any component inherent to 

4 any advanced technology motor vehicle but not in5 herent to a motor vehicle which is not an advanced 

6 technology motor vehicle, including— 

7 ‘‘(A) with respect to any gasoline or diesel8 electric new qualified hybrid motor vehicle, 

9 any— 

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, any— 

18 ‘‘(i) accumulator or other energy stor19 age device, 

20 ‘‘(ii) hydraulic pump, or 

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

22 ‘‘(iv) power control unit, or 

23 ‘‘(v) power controls, 

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

25 lean burn technology motor vehicle, any— 


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1 ‘‘(i) diesel engine, 

2 ‘‘(ii) turbocharger, 

3 ‘‘(iii) fuel injection system, or 

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

5 a particle filter or NOx absorber, and 

6 ‘‘(D) with respect to any advanced tech7 nology motor vehicle, any other component sub8 mitted for approval by the Secretary. 

9 ‘‘(3) MOTOR VEHICLE.—The term ‘motor vehi10 cle’ has the meaning given such term by section 

11 30(c)(2). 

12 ‘‘(4) PLUG-IN HYBRID ELECTRIC VEHICLE.— 

13 ‘‘(A) IN GENERAL.—The term ‘plug-in hy14 brid electric vehicle’ means a light-duty, me15 dium-duty, or heavy-duty on-road or nonroad 

16 vehicle that is propelled by any combination 

17 of— 

18 ‘‘(i) an electric motor and on-board, 

19 rechargeable energy storage system capable 

20 of operating the vehicle in intermittent or 

21 continuous all-electric mode and which is 

22 rechargeable using an off-board source of 

23 electricity, and 

24 ‘‘(ii) an internal combustion engine or 

25 heat engine using any combustible fuel. 


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1 ‘‘(B) NONROAD VEHICLE.—The term 

2 ‘nonroad vehicle’ means a vehicle powered by a 

3 nonroad engine, as that term is defined in sec4 tion 216 of the Clean Air Act (42 U.S.C. 

5 7550). 

6 ‘‘(5) QUALIFIED ENGINEERING INTEGRATION

7 COSTS.—For purposes of subsection (b)(1)(B), the 

8 term ‘qualified engineering integration costs’ means, 

9 with respect to any advanced technology motor vehi10 cle, costs incurred prior to the market introduction 

11 of such motor vehicle for engineering tasks related 

12 to— 

13 ‘‘(A) establishing functional, structural, 

14 and performance requirements for components 

15 and subsystems to meet overall vehicle objec16 tives for a specific application, 

17 ‘‘(B) designing interfaces for components 

18 and subsystems with mating systems within a 

19 specific vehicle application, 

20 ‘‘(C) designing cost effective, efficient, and 

21 reliable manufacturing processes to produce 

22 components and subsystems for a specific vehi23 cle application, and 


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1 ‘‘(D) validating functionality and perform2 ance of components and subsystems for a spe3 cific vehicle application. 

4 ‘‘(e) LIMITATION BASED ON AMOUNT OF TAX.— 

5 ‘‘(1) IN GENERAL.—The credit allowed under 

6 subsection (a) for any taxable year shall not exceed 

7 the sum of— 

8 ‘‘(A) the taxpayer’s regular tax liability (as 

9 defined in section 26(b)) for the taxable year, 

10 plus 

11 ‘‘(B) the tax imposed under section 55 for 

12 the taxable year. 

13 ‘‘(2) CARRYOVER OF UNUSED CREDIT

14 AMOUNTS.— 

15 ‘‘(A) IN GENERAL.—If the credit allowable 

16 under subsection (a) for a taxable year exceeds 

17 the limitation under paragraph (1) for such tax18 able year, such excess shall be allowed— 

19 ‘‘(i) as a credit carryback to each of 

20 the 13 taxable years preceding such year, 

21 and 

22 ‘‘(ii) as a credit carryforward to each 

23 of the 20 taxable years following such year. 


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1 ‘‘(B) AMOUNT CARRIED TO EACH YEAR.— 

2 For purposes of this paragraph, rules similar to 

3 the rules of section 39(a)(2) shall apply. 

4 ‘‘(f) SPECIAL RULES.— 

5 ‘‘(1) REDUCTION IN BASIS.—For purposes of 

6 this subtitle, if a credit is allowed under this section 

7 for any expenditure with respect to any property, the 

8 increase in the basis of such property which would 

9 (but for this paragraph) result from such expendi10 ture shall be reduced by the amount of the credit so 

11 allowed. 

12 ‘‘(2) INVESTMENTS AND PROPERTY OUTSIDE

13 THE UNITED STATES.—No credit shall be allowed 

14 under subsection (a) with respect to— 

15 ‘‘(A) any manufacturing facility which is 

16 located outside the United States, and 

17 ‘‘(B) any engineering integration or re18 search and development conducted outside the 

19 United States. 

20 ‘‘(3) AGGREGATION OF EXPENDITURES; ALLO21 CATIONS.—For purposes of this section, rules simi22 lar to the rules of paragraphs (1) and (2) of section 

23 41(f) shall apply. 

24 ‘‘(4) RECAPTURE.—The Secretary shall, by reg25 ulation, provide for recapturing the benefit of any 


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1 credit allowable under subsection (a) with respect to 

2 any manufacturing facility which ceases to produce 

3 advanced technology motor vehicles or eligible com4 ponents. 

5 ‘‘(5) PUBLIC STATEMENT.— 

6 ‘‘(A) IN GENERAL.—No credit shall be al7 lowed under subsection (a) for any taxable year 

8 unless the eligible taxpayer makes publicly 

9 available a statement describing the activities of 

10 the eligible taxpayer for which the credit is al11 lowed and the public benefits of such activities, 

12 including the estimated amount of any reduc13 tion in national oil consumption in future years 

14 as a result of such activities. 

15 ‘‘(B) TIME FOR PUBLICATION.—The state16 ment required under subparagraph (A) shall be 

17 made available not later than 90 days after the 

18 end of the taxable year for which the credit 

19 under subsection (a) is allowed and shall be in 

20 such form as the Secretary shall prescribe. 

21 ‘‘(6) NO DOUBLE BENEFIT.— 

22 ‘‘(A) COORDINATION WITH OTHER DEDUC23 TIONS AND CREDITS.—Except as provided in 

24 subparagraph (B), the amount of any deduction 

25 or other credit allowable under this chapter for 


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1 any cost taken into account in determining the 

2 amount of the credit under subsection (a) shall 

3 be reduced by the amount of such credit attrib4 utable to such cost. 

5 ‘‘(B) RESEARCH AND DEVELOPMENT

6 COSTS.— 

7 ‘‘(i) IN GENERAL.—Except as pro8 vided in clause (ii), any amount described 

9 in subsection (b)(1)(A)(ii) taken into ac10 count in determining the amount of the 

11 credit under subsection (a) for any taxable 

12 year shall not be taken into account for 

13 purposes of determining the credit under 

14 section 41 for such taxable year. 

15 ‘‘(ii) COSTS TAKEN INTO ACCOUNT IN

16 DETERMINING BASE PERIOD RESEARCH

17 EXPENSES.—Any amounts described in 

18 subsection (b)(1)(A)(ii) taken into account 

19 in determining the amount of the credit 

20 under subsection (a) for any taxable year 

21 which are qualified research expenses 

22 (within the meaning of section 41(b)) shall 

23 be taken into account in determining base 

24 period research expenses for purposes of 


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1 applying section 41 to subsequent taxable 

2 years. 

3 ‘‘(g) ELECTION NOT TO TAKE CREDIT.—No credit 

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

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

6 property. 

7 ‘‘(h) REGULATIONS.—The Secretary shall prescribe 

8 such regulations as necessary to carry out the provisions 

9 of this section.’’. 

10 (b) CONFORMING AMENDMENTS.— 

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

12 Code of 1986, as amended by this Act, is amended 

13 by striking ‘‘and’’ at the end of paragraph (37), by 

14 striking the period at the end of paragraph (38) and 

15 inserting ‘‘, and’’, and by adding at the end the fol16 lowing new paragraph: 

17 ‘‘(39) to the extent provided in section 

18 30D(f)(1).’’. 

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

20 by inserting ‘‘30D(g),’’ after ‘‘30C(e)(5),’’. 

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

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

23 amended by inserting after the item relating to sec24 tion 30C the following new item: 

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


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

2 this section shall apply to amounts incurred in taxable 

3 years beginning after December 31, 1993. 

4 SEC. 211. CONSUMER INCENTIVES TO PURCHASE AD5 VANCED TECHNOLOGY VEHICLES. 

6 (a) ELIMINATION ON NUMBER OF NEW QUALIFIED

7 HYBRID AND ADVANCED LEAN BURN TECHNOLOGY VE8 HICLES ELIGIBLE FOR ALTERNATIVE MOTOR VEHICLE

9 CREDIT.— 

10 (1) IN GENERAL.—Section 30B of the Internal 

11 Revenue Code of 1986 is amended by striking sub12 section (f) and by redesignating subsections (g) 

13 through (j) as subsections (f) through (i), respec14 tively. 

15 (2) CONFORMING AMENDMENTS.— 

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

17 30B(h) of the Internal Revenue Code of 1986 

18 are each amended by striking ‘‘(determined 

19 without regard to subsection (g))’’ and inserting 

20 ‘‘determined without regard to subsection (f))’’. 

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

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

23 inserting ‘‘section 30B(f)(1)’’. 


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

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

3 inserting ‘‘section 30B(f)(2)’’. 

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

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

6 inserting ‘‘section 30B(g)(4)’’. 

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

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

9 inserting ‘‘section 30B(g)(9)’’. 

10 (b) EXTENSION OF ALTERNATIVE VEHICLE CREDIT

11 FOR NEW QUALIFIED HYBRID MOTOR VEHICLES.—Para12 graph (3) of section 30B(i) of the Internal Revenue Code 

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

14 by striking ‘‘December 31, 2009’’ and inserting ‘‘Decem15 ber 31, 2010’’. 

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

17 this section shall apply to property placed in service after 

18 December 31, 2006, in taxable years ending after such 

19 date. 

20 SEC. 212. CONSUMER INCENTIVES TO PURCHASE PLUG-IN 

21 HYBRID ELECTRIC VEHICLES. 

22 (a) NEW QUALIFIED HYBRID MOTOR VEHICLE IN23 CLUDES PLUG-IN ELECTRIC VEHICLES.— 

24 (1) IN GENERAL.—Section 30B(d)(3)(A) of the 

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1 fied hybrid motor vehicle) is amended by striking 

2 ‘‘and’’ at the end of clause (vi), by striking the pe3 riod at the end of clause (vii) and inserting ‘‘, and’’, 

4 and by inserting after clause (vii) the following new 

5 clause: 

6 ‘‘(viii) which includes plug-in hybrid 

7 electric vehicles for purposes of paragraphs 

8 (2)(A) and (2)(B).’’. 

9 (2) DEFINITION.—Section 30B(d)(3) of such 

10 Code is amended by adding at the end the following 

11 new subparagraph: 

12 ‘‘(D) PLUG-IN HYBRID ELECTRIC VEHI13 CLE.— 

14 ‘‘(i) IN GENERAL.—The term ‘plug-in 

15 hybrid electric vehicle’ means a light-duty, 

16 medium-duty, or heavy-duty on-road or 

17 nonroad vehicle that is propelled by any 

18 combination of— 

19 ‘‘(I) an electric motor and on20 board, rechargeable energy storage 

21 system capable of operating the vehi22 cle in intermittent or continuous all23 electric mode and which is recharge24 able using an off-board source of elec25 tricity, and 


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1 ‘‘(II) an internal combustion en2 gine or heat engine using any combus3 tible fuel. 

4 ‘‘(ii) NONROAD VEHICLE.—The term 

5 ‘nonroad vehicle’ means a vehicle powered 

6 by a nonroad engine, as that term is de7 fined in section 216 of the Clean Air Act 

8 (42 U.S.C. 7550).’’ 

9 (b) CREDIT AMOUNT FOR PASSENGER AUTOMOBILES

10 AND LIGHT TRUCKS.— 

11 (1) IN GENERAL.—Section 30B(d)(2)(A) of the 

12 Internal Revenue Code of 1986 is amended— 

13 (A) by striking ‘‘clauses (i) and (ii)’’ and 

14 inserting ‘‘clauses (i), (ii), and (iii)’’, 

15 (B) by inserting ‘‘, except that for pur16 poses of any plug-in hybrid electric vehicle, sub17 section (c)(2)(A)(ii) shall not include fuel econ18 omy increases resulting from off-board sources 

19 of electricity’’ after ‘‘such subsection’’ in clause 

20 (i), and 

21 (C) by adding at the end the following new 

22 clause: 

23 ‘‘(iii) INCREASE FOR BATTERY-POW24 ERED RANGE FROM OFF-BOARD ELEC25 TRICITY.—The amount determined under 


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1 this clause in 2009 through 2015 as fol2 lows: 

3 ‘‘(I) $800 if such vehicle uses a 

4 4 kWh traction battery. 

5 ‘‘(II) $1200 if such vehicle uses a 

6 5 kWh traction battery. 

7 ‘‘(III) $1600 if such vehicle uses 

8 a 6 kWh traction battery. 

9 ‘‘(IV) $2000 if such vehicle uses 

10 a 7 kWh traction battery. 

11 ‘‘(V) $2400 if such vehicle uses a 

12 8 kwh traction battery. 

13 ‘‘(VI) $2800 if such vehicle uses 

14 a 9 kWh traction battery. 

15 ‘‘(VII) $3000 if such vehicle uses 

16 a 10 kWh traction battery. 

17 ‘‘(VIII) $3200 if such vehicle 

18 uses a 11 kWh traction battery. 

19 ‘‘(IX) $3400 if such vehicle uses 

20 a 12 kWh traction battery. 

21 ‘‘(X) $3800 if such vehicle uses a 

22 13 kWh traction battery. 

23 ‘‘(XI) $4000 if such vehicle uses 

24 a 14 kWh traction battery. 


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1 ‘‘(XII) $4200 if such vehicle uses 

2 a 15 kWh traction battery.’’. 

3 (2) DEFINITION.—Section 30B(d)(3) of such 

4 Code, as amended by subsection (a)(2), is amended 

5 by adding at the end the following new subpara6 graph: 

7 ‘‘(E) KWH TRACTION BATTERY.—For pur8 poses of paragraph (2)(A)(iii), the term ‘kWh 

9 traction battery’ means the size of an electro10 chemical storage device as measured by from 

11 100 percent state of charge to 0 percent state 

12 of charge.’’. 

13 (c) CREDIT AMOUNT FOR OTHER MOTOR VEHI14 CLES.— 

15 (1) IN GENERAL.—Section 30B(d)(2)(B)(ii) of 

16 the Internal Revenue Code of 1986 is amended by 

17 striking ‘‘and’’ at the end of subclause (II), by strik18 ing the period at the end of subclause (III) and in19 serting ‘‘, and’’, and by adding at the end the fol20 lowing new subclause: 

21 ‘‘(IV) 40 percent for a plug-in 

22 hybrid electric vehicle that can use 

23 off-board electricity to recharge an en24 ergy storage device capable of at least 

25 10 miles of all electric range and a 


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1 percentage greater than 40 percent if 

2 the all electric range is greater than 

3 10 miles, as determined by the Ad4 ministrator of the Environmental Pro5 tection Agency.’’. 

6 (2) DEFINITION.—Section 30B(d)(3) of such 

7 Code, as amended by subsection (b)(2), is amended 

8 by adding at the end the following new subpara9 graph: 

10 ‘‘(F) ALL ELECTRIC RANGE.—For pur11 poses of paragraph (2)(B)— 

12 ‘‘(i) IN GENERAL.—The term ‘all elec13 tric range’ means miles traveled in a hy14 brid electric vehicle capable of using an 

15 off-board source of electricity and tested 

16 using the Environmental Protection Agen17 cy’s Federal Urban Driving Schedule or a 

18 new driving schedule for plug-in hybrid 

19 electric vehicles. 

20 ‘‘(ii) DRIVING SCHEDULE FOR PLUG21 IN HYBRID ELECTRIC VEHICLES.— 

22 ‘‘(I) ESTABLISHMENT.—Not 

23 later than 18 months after the date of 

24 enactment of this subparagraph, the 

25 Administrator of the Environmental 


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1 Protection Agency shall develop a 

2 driving schedule for plug-in hybrid 

3 electric vehicles based on a test that 

4 shall start with a full battery and end 

5 when the battery reaches 20 percent 

6 state of charge after intermittent use 

7 of the battery and electric motor for 

8 vehicle propulsion at speeds no great9 er than 35 miles per hour, and which 

10 does not count vehicle miles traveled 

11 while the engine is operating. 

12 ‘‘(II) BONUS CREDITS.—Vehicles 

13 that can travel in all electric mode 

14 during a separate test of higher speed 

15 operation shall be entitled to bonus all 

16 electric range miles for purposes of 

17 the credit provided in this section on 

18 a schedule to be established by rule by 

19 the Administrator.’’. 

20 (d) DURATION OF TAX CREDIT.—Section 30B(i)(3) 

21 of the Internal Revenue Code of 1986, as redesignated and 

22 amended by this Act, is amended by inserting ‘‘(December 

23 31, 2015, in the case of a new qualified hybrid motor vehi24 cle which is a plug-in hybrid electric vehicle)’’ after ‘‘De25 cember 31, 2010’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2008. 

4 SEC. 213. FEDERAL FLEET REQUIREMENTS. 

5 (a) REGULATIONS.— 

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

7 shall issue regulations for Federal fleets subject to 

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

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

10 each Federal agency achieve at least a 30 percent 

11 reduction in petroleum consumption, as calculated 

12 from the baseline established by the Secretary for 

13 fiscal year 2005. 

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

15 2016, of the Federal vehicles required to be alter16 native fueled vehicles under title V of the Energy 

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

18 least 30 percent shall be hybrid motor vehicles (in19 cluding plug-in hybrid motor vehicles) or new ad20 vanced lean burn technology motor vehicles (as de21 fined in section 30B(c)(3) of the Internal Revenue 

22 Code of 1986). 

23 (b) INCLUSION OF ELECTRIC DRIVE IN ENERGY

24 POLICY ACT OF 1992.—Section 508(a) of the Energy Pol25 icy Act of 1992 (42 U.S.C. 13258(a)) is amended— 


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1 (1) by striking ‘‘The Secretary’’ and inserting 

2 the following: 

3 ‘‘(1) ALLOCATION.—The Secretary’’; and 

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

5 ‘‘(2) ELECTRIC VEHICLES.—Not later than 

6 January 31, 2009, the Secretary shall— 

7 ‘‘(A) allocate credit in an amount to be de8 termined by the Secretary for— 

9 ‘‘(i) acquisition of— 

10 ‘‘(I) a light-duty hybrid electric 

11 vehicle; 

12 ‘‘(II) a plug-in hybrid electric ve13 hicle; 

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

15 ‘‘(IV) a medium- or heavy-duty 

16 hybrid electric vehicle; 

17 ‘‘(V) a neighborhood electric ve18 hicle; or 

19 ‘‘(VI) a medium- or heavy-duty 

20 dedicated vehicle; and 

21 ‘‘(ii) investment in qualified alter22 native fuel infrastructure or nonroad 

23 equipment, as determined by the Sec24 retary; and 


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1 ‘‘(B) allocate more than 1, but not to ex2 ceed 5, credits for investment in an emerging 

3 technology relating to any vehicle described in 

4 subparagraph (A) 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 2008 through 

12 2013. 

13 SEC. 214. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE 

14 AND BIODIESEL PURCHASING REQUIRE15 MENT. 

16 Section 306 of the Energy Policy Act of 1992 (42 

17 U.S.C. 13215) is amended to read as follows: 

18 ‘‘SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASO19 LINE AND BIODIESEL PURCHASING REQUIRE20 MENT. 

21 ‘‘(a) ETHANOL-BLENDED GASOLINE.—The head of 

22 each Federal agency shall ensure that, in areas in which 

23 ethanol-blended gasoline is reasonably available at a gen24 erally competitive price, the Federal agency purchases eth25 anol-blended gasoline containing at least 10 percent ethVerDate Aug 31 2005 18:21 Jan 22, 2007 Jkt 059200 PO 00000 Frm 00081 Fmt 6652 Sfmt 6201 E:\BILLS\S339.IS S339

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1 anol, rather than gasoline that is not ethanol-blended, for 

2 use in vehicles used by the agency that use gasoline. 

3 ‘‘(b) BIODIESEL.— 

4 ‘‘(1) DEFINITION OF BIODIESEL.—In this sub5 section, the term ‘biodiesel’ has the meaning given 

6 the term in section 312(f). 

7 ‘‘(2) REQUIREMENT.—The head of each Fed8 eral agency shall ensure that the Federal agency 

9 purchases, for use in fueling fleet vehicles that use 

10 diesel fuel used by the Federal agency at the loca11 tion at which fleet vehicles of the Federal agency are 

12 centrally fueled, in areas in which the biodiesel13 blended diesel fuel described in subparagraphs (A) 

14 and (B) is available at a generally competitive 

15 price— 

16 ‘‘(A) as of the date that is 5 years after 

17 the date of enactment of this paragraph, bio18 diesel-blended diesel fuel that contains at least 

19 20 percent biodiesel, rather than diesel fuel that 

20 is not biodiesel-blended; and 

21 ‘‘(B) as of the date that is 10 years after 

22 the date of enactment of this paragraph, bio23 diesel-blended diesel fuel that contains at least 

24 80 percent biodiesel, rather than diesel fuel that 

25 is not biodiesel-blended. 


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1 ‘‘(3) REQUIREMENT OF FEDERAL LAW.—This 

2 subsection shall not be considered a requirement of 

3 Federal law for the purposes of section 312. 

4 ‘‘(c) EXEMPTION.—This section does not apply to 

5 fuel used in vehicles excluded from the definition of ‘fleet’ 

6 by subparagraphs (A) through (H) of section 301(9).’’. 

7 SEC. 215. USE OF THE EXISTING FLEXIBLE FUEL VEHICLE 

8 FLEET OF THE FEDERAL GOVERNMENT. 

9 (a) USE OF ALTERNATIVE FUELS BY FLEXIBLE

10 FUEL VEHICLES.—Section 400AA(a)(3) of the Energy 

11 Policy and Conservation Act (42 U.S.C. 6374(a)(3)) is 

12 amended by striking subparagraph (E) and inserting the 

13 following: 

14 ‘‘(E) USE OF ALTERNATIVE FUELS BY

15 FLEXIBLE FUEL VEHICLES.— 

16 ‘‘(i) IN GENERAL.—Flexible fuel vehi17 cles acquired pursuant to this section shall 

18 be operated on alternative fuels unless the 

19 Secretary determines that an agency quali20 fies for a waiver of that requirement for 

21 vehicles operated by the agency in a par22 ticular geographic area in which— 

23 ‘‘(I) the alternative fuel otherwise 

24 required to be used in the vehicle is 

25 not reasonably available to retail purVerDate Aug 31 2005 18:21 Jan 22, 2007 Jkt 059200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\S339.IS S339

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1 chasers of the fuel, as certified to the 

2 Secretary by the head of the agency; 

3 or 

4 ‘‘(II) the cost of the alternative 

5 fuel otherwise required to be used in 

6 the vehicle is unreasonably more ex7 pensive compared to gasoline, as cer8 tified to the Secretary by the head of 

9 the agency. 

10 ‘‘(ii) COMPLIANCE.—The Secretary 

11 shall monitor compliance with this sub12 paragraph by all agency fleets and shall 

13 submit annually to Congress a report 

14 that— 

15 ‘‘(I) describes the extent to which 

16 the requirements of this subparagraph 

17 are being achieved; and 

18 ‘‘(II) includes information on an19 nual reductions achieved from the use 

20 of petroleum-based fuels and the prob21 lems, if any, encountered in acquiring 

22 alternative fuels.’’. 

23 (b) ALTERNATIVE COMPLIANCE AND FLEXIBILITY.— 

24 Section 514 of the Energy Policy Act of 1992 (42 U.S.C. 

25 13263a) is amended to read as follows: 


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1 ‘‘SEC. 514. ALTERNATIVE COMPLIANCE. 

2 ‘‘(a) APPLICATION FOR WAIVER.—Any head of a 

3 Federal agency described in section 303(b)(3), any cov4 ered person subject to section 501, and any State subject 

5 to section 507(o) may petition the Secretary for a waiver 

6 of the applicable requirements of section 303, 501, or 

7 507(o). 

8 ‘‘(b) GRANT OF WAIVER.—The Secretary may grant 

9 a waiver of the requirements of section 303, 501, or 

10 507(o) upon a showing that the fleet owned, operated, 

11 leased, or otherwise controlled by the Federal agency, 

12 State, or covered person— 

13 ‘‘(1) will achieve a reduction in its annual con14 sumption of petroleum fuels equal to— 

15 ‘‘(A) the reduction in consumption of pe16 troleum that would result from 100 percent 

17 compliance with fuel use requirements in sec18 tion 303 or 501, as appropriate; or 

19 ‘‘(B) for entities covered under section 

20 507(o), a reduction equal to the covered entity’s 

21 consumption of alternative fuels if all its alter22 native fuel vehicles given credit under section 

23 508 were to use alternative fuel 100 percent of 

24 the time; and 


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1 ‘‘(2) is in compliance with all applicable vehicle 

2 emission standards established by the Administrator 

3 under the Clean Air Act (42 U.S.C. 7401 et seq.). 

4 ‘‘(c) REVOCATION OF WAIVER.—The Secretary shall 

5 revoke any waiver granted under this section if the Fed6 eral agency, State, or covered person fails to comply with 

7 subsection (b).’’. 

8 SEC. 216. STANDARDS FOR EXECUTIVE AGENCY AUTO9 MOBILES. 

10 (a) IN GENERAL.—Section 32917 of title 49, United 

11 States Code, is amended to read as follows: 

12 ‘‘§ 32917. Standards for executive agency automobiles 

13 ‘‘(a) DEFINITIONS.—In this section: 

14 ‘‘(1) AUTOMOBILE.—The term ‘automobile’ 

15 does not include any vehicle designed for combat-re16 lated missions, law enforcement work, or emergency 

17 rescue work. 

18 ‘‘(2) EXECUTIVE AGENCY.—The term ‘Execu19 tive agency’ has the meaning given that term in sec20 tion 105 of title 5. 

21 ‘‘(3) NEW AUTOMOBILE.—The term ‘new auto22 mobile’, with respect to the fleet of automobiles of 

23 an executive agency, means an automobile that is 

24 leased for at least 60 consecutive days or purchased, 


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1 by or for the Executive agency, after September 30, 

2 2005. 

3 ‘‘(b) BASELINE AVERAGE FUEL ECONOMY.—In ac4 cordance with guidance issued under subsection (e), the 

5 head of each Executive agency shall calculate the average 

6 fuel economy for all automobiles in the Executive agency’s 

7 fleet of automobiles that were leased or purchased during 

8 fiscal year 2005, which calculation shall serve as the base9 line average fuel economy for the Executive agency’s fleet 

10 of automobiles. 

11 ‘‘(c) INCREASE OF AVERAGE FUEL ECONOMY.—The 

12 head of each Executive agency shall manage the procure13 ment of automobiles for that Executive agency so that by 

14 not later than September 30, 2008, the average fuel econ15 omy of the new automobiles in the Executive agency’s fleet 

16 of automobiles is not less than 3 miles per gallon higher 

17 than the baseline average fuel economy determined under 

18 subsection (b) for that Executive agency. 

19 ‘‘(d) FUEL EFFICIENCY.—The head of an Executive 

20 agency shall ensure that each new automobile procured by 

21 the Executive agency is as fuel efficient as practicable. 

22 ‘‘(e) CALCULATION OF AVERAGE FUEL ECONOMY.— 

23 The Secretary of Transportation shall issue regulations to 

24 carry out this section, including regulations regarding the 

25 calculation of average fuel economy.’’. 


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1 (b) CONFORMING AMENDMENT.—Section 

2 32901(a)(3) of title 49, United States Code, is amended 

3 by striking ‘‘section 32908 of this title,’’ and inserting 

4 ‘‘sections 32908 and 32917,’’. 

5 SEC. 217. TAX INCENTIVES FOR PRIVATE FLEETS. 

6 (a) IN GENERAL.—Subpart E of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 is amended by inserting after section 48B the fol9 lowing new section: 

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

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

12 the fuel-efficient fleet credit for any taxable year is 15 per13 cent of the qualified fuel-efficient vehicle investment 

14 amount of an eligible taxpayer for such taxable year. 

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

16 case of any eligible taxpayer which places less than 10 

17 qualified fuel-efficient vehicles in service during the tax18 able year, the qualified fuel-efficient vehicle investment 

19 amount shall be zero. 

20 ‘‘(c) QUALIFIED FUEL-EFFICIENT VEHICLE INVEST21 MENT AMOUNT.—For purposes of this section— 

22 ‘‘(1) IN GENERAL.—The term ‘qualified fuel-ef23 ficient vehicle investment amount’ means the basis 

24 of any qualified fuel-efficient vehicle placed in serv25 ice by an eligible taxpayer during the taxable year. 


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

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

3 automobile which has a fuel economy which is at 

4 least 125 percent greater than the average fuel econ5 omy standard for an automobile of the same class 

6 and model year. 

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

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

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

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

11 ‘‘(d) ELIGIBLE TAXPAYER.—The term ‘eligible tax12 payer’ means, with respect to any taxable year, a taxpayer 

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

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

15 of such taxable year. 

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

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

18 (b) CREDIT TREATED AS PART OF INVESTMENT

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

20 1986 is amended by striking ‘‘and’’ at the end of para21 graph (3), by striking the period at the end of paragraph 

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

23 following new paragraph: 

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

25 (c) CONFORMING AMENDMENTS.— 


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

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

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

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

5 at the end the following new clause: 

6 ‘‘(v) the basis of any qualified fuel-ef7 ficient vehicle which is taken into account 

8 under section 48C.’’. 

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

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

11 amended by inserting after the item relating to sec12 tion 48 the following new item: 

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

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

14 this section shall apply to periods after December 31, 

15 2006, in taxable years ending after such date, under rules 

16 similar to the rules of section 48(m) of the Internal Rev17 enue Code of 1986 (as in effect on the day before the date 

18 of the enactment of the Revenue Reconciliation Act of 

19 1990). 

20 SEC. 218. REDUCING INCENTIVES TO GUZZLE GAS. 

21 (a) INCLUSION OF HEAVY VEHICLES IN LIMITATION

22 ON DEPRECIATION OF CERTAIN LUXURY AUTO23 MOBILES.— 


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

2 the Internal Revenue Code of 1986 (defining pas3 senger automobile) is amended— 

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

5 following new clause: 

6 ‘‘(ii)(I) which is rated at 6,000 

7 pounds unloaded gross vehicle weight or 

8 less, or 

9 ‘‘(II) which is rated at more than 

10 6,000 pounds but not more than 14,000 

11 pounds gross vehicle weight.’’, 

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

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

14 (2) EXCEPTION FOR VEHICLES USED IN FARM15 ING BUSINESS.—Section 280F(d)(5)(B) of such 

16 Code (relating to exception for certain vehicles) is 

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

18 by redesignating clause (iii) as clause (iv), and by in19 serting after clause (ii) the following new clause: 

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

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

22 and’’. 

23 (3) EFFECTIVE DATE.—The amendments made 

24 by this subsection shall apply to property placed in 

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


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1 (b) UPDATED DEPRECIATION DEDUCTION LIMITS.— 

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

3 280F(a)(1) of the Internal Revenue Code of 1986 

4 (relating to limitation on amount of depreciation for 

5 luxury automobiles) is amended to read as follows: 

6 ‘‘(I) LIMITATION.—The amount of the de7 preciation deduction for any taxable year shall 

8 not exceed for any passenger automobile— 

9 ‘‘(i) for the 1st taxable year in the re10 covery period— 

11 ‘‘(I) described in subsection 

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

13 ‘‘(II) described in the second sen14 tence of subsection (d)(5)(A), $5,000, 

15 and 

16 ‘‘(III) described in subsection 

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

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

19 recovery period— 

20 ‘‘(I) described in subsection 

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

22 ‘‘(II) described in the second sen23 tence of subsection (d)(5)(A), $8,000, 

24 and 


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1 ‘‘(III) described in subsection 

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

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

4 recovery period— 

5 ‘‘(I) described in subsection 

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

7 ‘‘(II) described in the second sen8 tence of subsection (d)(5)(A), $4,800, 

9 and 

10 ‘‘(III) described in subsection 

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

12 ‘‘(iv) for each succeeding taxable year 

13 in the recovery period— 

14 ‘‘(I) described in subsection 

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

16 ‘‘(II) described in the second sen17 tence of subsection (d)(5)(A), $2,900, 

18 and 

19 ‘‘(III) described in subsection 

20 (d)(5)(A)(ii)(II), $3,475.’’. 

21 (2) YEARS AFTER RECOVERY PERIOD.—Section 

22 280F(a)(1)(B)(ii) of such Code is amended to read 

23 as follows: 

24 ‘‘(ii) LIMITATION.—The amount treat25 ed as an expense under clause (i) for any 


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1 taxable year shall not exceed for any pas2 senger automobile— 

3 ‘‘(I) described in subsection 

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

5 ‘‘(II) described in the second sen6 tence of subsection (d)(5)(A), $2,900, 

7 and 

8 ‘‘(III) described in subsection 

9 (d)(5)(A)(ii)(II), $3,475.’’. 

10 (3) INFLATION ADJUSTMENT.—Section 

11 280F(d)(7) of such Code (relating to automobile 

12 price inflation adjustment) is amended— 

13 (A) by striking ‘‘after 1988’’ in subpara14 graph (A) and inserting ‘‘after 2007’’, and 

15 (B) by striking subparagraph (B) and in16 serting the following new subparagraph: 

17 ‘‘(B) AUTOMOBILE PRICE INFLATION AD18 JUSTMENT.—For purposes of this paragraph— 

19 ‘‘(i) IN GENERAL.—The automobile 

20 price inflation adjustment for any calendar 

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

22 ‘‘(I) the average wage index for 

23 the preceding calendar year, exceeds 

24 ‘‘(II) the average wage index for 

25 2006. 


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1 ‘‘(ii) AVERAGE WAGE INDEX.—The 

2 term ‘average wage index’ means the aver3 age wage index published by the Social Se4 curity Administration.’’. 

5 (4) EFFECTIVE DATE.—The amendments made 

6 by this subsection shall apply to property placed in 

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

8 (c) EXPENSING LIMITATION FOR FARM VEHICLES.— 

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

10 179(b) of the Internal Revenue Code of 1986 (relat11 ing to limitations) is amended to read as follows: 

12 ‘‘(6) LIMITATION ON COST TAKEN INTO AC13 COUNT FOR FARM VEHICLES.—The cost of any vehi14 cle described in section 280F(d)(5)(B)(iii) for any 

15 taxable year which may be taken into account under 

16 this section shall not exceed $30,000.’’. 

17 (2) EFFECTIVE DATE.—The amendment made 

18 by this subsection shall apply to property placed in 

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

20 SEC. 219. INCREASING THE EFFICIENCY OF MOTOR VEHI21 CLES. 

22 (a) DEFINITIONS.—In this section: 

23 (1) ALTERNATIVE FUEL.—The term ‘‘alter24 native fuel’’ has the meaning given the term in sec25 tion 32901(a) of title 49, United States Code. 


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

2 containing 85 percent ethanol and 15 percent gaso3 line or diesel by volume. 

4 (3) FLEXIBLE FUEL MOTOR VEHICLE.—The 

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

6 motor vehicle warrantied by the manufacturer of the 

7 vehicle to operate on any combination of gasoline, 

8 E85, and M85. 

9 (4) HYBRID MOTOR VEHICLE.—The term ‘‘hy10 brid motor vehicle’’ means a new qualified hybrid 

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

12 Internal Revenue Code of 1986) that achieves at 

13 least 125 percent of the model year 2002 city fuel 

14 economy. 

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

16 ‘‘light-duty motor vehicle’’ means, as defined in reg17 ulations promulgated by the Administrator of the 

18 Environmental Protection Agency that are in effect 

19 on the date of the enactment of this Act— 

20 (A) a light-duty truck; or 

21 (B) a light-duty vehicle. 

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

23 containing 85 percent methanol and 15 percent gas24 oline or diesel by volume. 


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

2 term ‘‘plug-in hybrid motor vehicle’’ means a hybrid 

3 motor vehicle that— 

4 (A) has an onboard, rechargeable storage 

5 device capable of propelling the vehicle solely by 

6 electricity for at least 10 miles; and 

7 (B) achieves at least 125 percent of the 

8 model year 2002 city fuel economy. 

9 (8) QUALIFIED MOTOR VEHICLE.—The term 

10 ‘‘qualified motor vehicle’’ means— 

11 (A) a new advanced lean burn technology 

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

13 of the Internal Revenue Code of 1986) that 

14 achieves at least 125 percent of the model year 

15 2002 city fuel economy; 

16 (B) an alternative fueled automobile (as 

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

18 States Code); 

19 (C) a flexible fuel motor vehicle; 

20 (D) a new qualified fuel cell motor vehicle 

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

22 Revenue Code of 1986); 

23 (E) a hybrid motor vehicle; 

24 (F) a plug-in hybrid motor vehicle; 

25 (G) an electric motor vehicle; and 


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1 (H) any other appropriate motor vehicle 

2 that uses substantially new technology and 

3 achieve at least 175 percent of the model year 

4 2002 city fuel economy, as determined by the 

5 Secretary of Transportation, by regulation. 

6 (b) REQUIREMENTS.— 

7 (1) IN GENERAL.—Not less than 50 percent of 

8 light-duty motor vehicles manufactured for model 

9 year 2012 and each model year thereafter and sold 

10 in the United States shall be qualified motor vehi11 cles. 

12 (2) NEW TECHNOLOGY.—Not less than 10 per13 cent of the qualified motor vehicles manufactured for 

14 model year 2017 and each model year thereafter and 

15 sold in the United States shall be— 

16 (A) hybrid motor vehicles; 

17 (B) plug-in hybrid motor vehicles; 

18 (C) new advanced lean burn technology 

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

20 of the Internal Revenue Code of 1986); 

21 (D) new qualified fuel cell motor vehicles 

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

23 Revenue Code of 1986); 

24 (E) electric motor vehicles; or 


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1 (F) any other appropriate motor vehicle 

2 that uses substantially new technology and 

3 achieve at least 175 percent of the model year 

4 2002 city fuel economy, as determined by the 

5 Secretary of Transportation, by regulation. 

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

7 date of enactment of this Act, the Secretary of Transpor8 tation shall promulgate regulations to carry out this sec9 tion. 

10 TITLE III—FUEL CHOICES FOR 

11 THE 21ST CENTURY 

12 SEC. 301. INCREASE IN ALTERNATIVE FUEL VEHICLE RE13 FUELING PROPERTY CREDIT. 

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

15 the Internal Revenue Code of 1986 is amended by striking 

16 ‘‘30 percent’’ and inserting ‘‘50 percent’’. 

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

18 this section shall apply to property placed in service after 

19 December 31, 2006, in taxable years ending after such 

20 date. 

21 SEC. 302. EXTENSION OF BIODIESEL INCOME AND EXCISE 

22 TAX CREDITS. 

23 (a) IN GENERAL.—Sections 40A(g), 6426(c)(6), and 

24 6427(e)(5)(B) of the Internal Revenue Code of 1986 are 


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1 each amended by striking ‘‘December 31, 2008’’ and in2 serting ‘‘December 31, 2014’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect on January 1, 2009. 

5 SEC. 303. SMALL ETHANOL PRODUCER CREDIT EXPANDED 

6 FOR PRODUCERS OF SUCROSE AND CEL7 LULOSIC ETHANOL. 

8 (a) IN GENERAL.—Subparagraph (C) of section 

9 40(b)(4) of the Internal Revenue Code of 1986 (relating 

10 to small ethanol producer credit) is amended by inserting 

11 ‘‘(30,000,000 gallons for any sucrose or cellulosic ethanol 

12 producer)’’ after ‘‘15,000,000 gallons’’. 

13 (b) SUCROSE OR CELLULOSIC ETHANOL PRO14 DUCER.—Section 40(b)(4) of the Internal Revenue Code 

15 of 1986 is amended by adding at the end the following 

16 new subparagraph: 

17 ‘‘(E) SUCROSE OR CELLULOSIC ETHANOL

18 PRODUCER.— 

19 ‘‘(i) IN GENERAL.—For purposes of 

20 this paragraph, the term ‘sucrose or cel21 lulosic ethanol producer’ means a producer 

22 of ethanol using sucrose feedstock or a 

23 producer of cellulosic biomass ethanol (as 

24 defined in section 168(l)(3)). 


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1 ‘‘(ii) SUCROSE FEEDSTOCK.—For pur2 poses of clause (i), the term ‘sucrose feed3 stock’ means any raw sugar, refined sugar, 

4 or sugar equivalents (including juice and 

5 extract). Such term does not include any 

6 molasses, beet thick juice, or other similar 

7 products as determined by the Secretary.’’. 

8 (c) CONFORMING AMENDMENTS.— 

9 (1) Section 40(g)(2) of the Internal Revenue 

10 Code of 1986 is amended by striking ‘‘15,000,000 

11 gallon limitation’’ and inserting ‘‘15,000,000 and 

12 30,000,000 gallon limitations’’. 

13 (2) Section 40(g)(5)(B) of such Code is amend14 ed by striking ‘‘15,000,000 gallons’’ and inserting 

15 ‘‘the gallon limitation under subsection (b)(4)(C)’’. 

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

17 this section shall apply to taxable years beginning after 

18 the date of the enactment of this Act. 

19 SEC. 304. USE OF CAFE PENALTIES TO BUILD ALTERNATIVE 

20 FUELING INFRASTRUCTURE. 

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

22 amended by adding at the end the following: 

23 ‘‘(e) ALTERNATIVE FUELING INFRASTRUCTURE

24 GRANT PROGRAM.— 

25 ‘‘(1) TRUST FUND.— 


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1 ‘‘(A) ESTABLISHMENT.—There is estab2 lished in the Treasury of the United States a 

3 trust fund, to be known as the ‘Alternative 

4 Fueling Infrastructure Trust Fund’ (referred to 

5 in this subsection as the ‘Trust Fund’), con6 sisting of such amounts as are deposited into 

7 the Trust Fund under subparagraph (B) and 

8 any interest earned on investment of amounts 

9 in the Trust Fund. 

10 ‘‘(B) TRANSFERS OF CIVIL PENALTIES.— 

11 The Secretary of Transportation shall remit 90 

12 percent of the amount collected in civil penalties 

13 under this section to the Trust Fund. 

14 ‘‘(2) ESTABLISHMENT OF GRANT PROGRAM.— 

15 ‘‘(A) GRANTS AUTHORIZED.—The Sec16 retary of Energy may award grants to the enti17 ties described in paragraph (3) for the purpose 

18 of increasing the number of locations at which 

19 consumers may purchase alternative fuels. 

20 ‘‘(B) OBLIGATION OF FUNDS.—The Sec21 retary of Energy shall obligate such sums as 

22 are available in the Trust Fund for grants 

23 under this subsection. 

24 ‘‘(3) GRANT RECIPIENTS.— 


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1 ‘‘(A) IN GENERAL.—Grants awarded pur2 suant to paragraph (2)(A) may be awarded 

3 to— 

4 ‘‘(i) owners of individual fueling sta5 tions in an amount not greater than 

6 $150,000 per site or $500,000 per entity; 

7 and 

8 ‘‘(ii) corporations (including nonprofit 

9 corporations) with demonstrated experience 

10 in alternative fueling infrastructure. 

11 ‘‘(B) PRIORITY.—In awarding grants 

12 under this paragraph, the Secretary of Energy 

13 shall— 

14 ‘‘(i) give priority to recognized non15 profit corporations that have proven expe16 rience in the administration of grant fund17 ing and demonstrated technical expertise 

18 in the establishment of alternative fueling 

19 infrastructure; 

20 ‘‘(ii) consider the number of vehicles 

21 produced for sale in the preceding produc22 tion year capable of using each type of al23 ternative fuel; and 

24 ‘‘(iii) identify 1 primary group for 

25 each type of alternative fuel. 


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1 ‘‘(4) USE OF FUNDS.— 

2 ‘‘(A) IN GENERAL.—Grants awarded under 

3 paragraph (2)(A) may be used to— 

4 ‘‘(i) construct new facilities to dis5 pense alternative fuels; 

6 ‘‘(ii) purchase equipment to upgrade, 

7 expand, or otherwise improve existing al8 ternative fuel facilities; or 

9 ‘‘(iii) purchase equipment or pay for 

10 specific turnkey fueling services by alter11 native fuel providers. 

12 ‘‘(B) MATCHING REQUIREMENT.—The 

13 Secretary of Energy may not award a grant 

14 under paragraph (2)(A) unless the grant recipi15 ent agrees to provide $1 of non-Federal con16 tributions for every $3 of grant funds received 

17 under this subsection. 

18 ‘‘(C) ADMINISTRATIVE EXPENSES.—A re19 cipient of a grant under paragraph (2)(A) may 

20 not use more than 10 percent of any such grant 

21 for administrative expenses. 

22 ‘‘(5) SELECTION OF ALTERNATIVE FUEL STA23 TIONS.—Each grant recipient shall select the loca24 tion for each alternative fuel station to be con25 structed with grant funds received under paragraph 


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1 (2)(A) on a formal, open, and competitive basis, 

2 based on— 

3 ‘‘(A) the public demand for each alter4 native fuel in a particular county based on state 

5 registration records showing the number of ve6 hicles that can be operated with alternative fuel; 

7 and 

8 ‘‘(B) the opportunity to create or expand 

9 corridors of alternative fuel stations along inter10 state or State highways; and 

11 ‘‘(C) maximizing the geographic dispersion 

12 of alternative fuel stations. 

13 ‘‘(6) OPERATION OF ALTERNATIVE FUEL STA14 TIONS.—A facility constructed or upgraded with 

15 grant funds received under paragraph (2)(A) shall— 

16 ‘‘(A) provide alternative fuel available to 

17 the public for a period of not less than 4 years; 

18 ‘‘(B) establish a marketing plan to advance 

19 the sale and use of alternative fuels; 

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

22 ‘‘(D) provide point of sale materials on al23 ternative fuel; 

24 ‘‘(E) clearly label the dispenser with con25 sistent materials; 


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1 ‘‘(F) price the alternative fuel at the same 

2 margin that is received for unleaded gasoline; 

3 and 

4 ‘‘(G) support and use all available tax in5 centives to reduce the cost of the alternative 

6 fuel to the lowest possible retail price. 

7 ‘‘(7) NOTIFICATION REQUIREMENTS.— 

8 ‘‘(A) OPENING.—Not later than the date 

9 on which each alternative fuel station begins to 

10 offer alternative fuel to the public, the grant re11 cipient that used grant funds to construct such 

12 station shall notify the Secretary of Energy of 

13 such opening and the Secretary shall add the 

14 new alternative fuel station to the alternative 

15 fuel station locator on its website. 

16 ‘‘(B) SEMI-ANNUAL REPORT.—Not later 

17 than 6 months after receiving a grant under 

18 this subsection, and every 6 months thereafter, 

19 each grant recipient shall submit a report to the 

20 Secretary of Energy that describes— 

21 ‘‘(i) the status of each alternative fuel 

22 station constructed with grant funds re23 ceived under this subsection; 


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1 ‘‘(ii) the amount of alternative fuel 

2 dispensed at each station during the pre3 ceding 6-month period; and 

4 ‘‘(iii) the average price per gallon of 

5 the alternative fuel sold at each station 

6 during the preceding 6-month period. 

7 ‘‘(8) ALTERNATIVE FUEL DEFINED.—In this 

8 subsection, the term ‘alternative fuel’ means— 

9 ‘‘(A) any fuel of which— 

10 ‘‘(i) not less than 85 percent of the 

11 volume consists of ethanol, natural gas, 

12 compressed natural gas, liquefied natural 

13 gas, liquefied petroleum gas, or hydrogen; 

14 or 

15 ‘‘(ii) a percentage determined by the 

16 Secretary, by rule, that is not less than 70 

17 percent, of the volume consists of the ele18 ments listed in clause (i), to provide for re19 quirements relating to cold start, safety, or 

20 vehicle functions; or 

21 ‘‘(B) any mixture of biodiesel and diesel 

22 fuel determined without regard to any use of 

23 kerosene that contains at least 20 percent bio24 diesel.’’. 


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1 SEC. 305. ACCELERATING CONVERSION TO ALTERNATIVE 

2 FUELS INFRASTRUCTURE. 

3 (a) FINDINGS.—Congress finds that— 

4 (1) as of the date of enactment of this Act, an 

5 estimated 5,000,000 to 6,000,000 flexible-fuel vehi6 cles are on roads in the United States; 

7 (2) based on the report of the Department of 

8 Energy entitled ‘‘Transportation Energy Date Book: 

9 Edition 25,’’ only 740 refueling sites providing E– 

10 85 or biodiesel existed in the United States in 2005, 

11 equivalent to less than 1 percent of total United 

12 States refueling stations; and 

13 (3) as the number of flexible-fuel vehicles on 

14 roads in the United States increases, an increase in 

15 the availability of alternative refueling infrastructure 

16 must occur in order to enable the displacement of 

17 petroleum consumption. 

18 (b) GOAL.—Congress declares that it is the goal of 

19 the United States to increase the accessibility of alter20 native fuels to retail consumers, and to ensure that at 

21 least 10 percent of motor vehicle refueling stations provide 

22 alternative fuels, by calendar year 2015. 

23 (c) INFRASTRUCTURE PILOT PROGRAM FOR ALTER24 NATIVE FUELS.— 

25 (1) IN GENERAL.—The Secretary of Energy, in 

26 consultation with the Secretary of Transportation 


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1 and the Administrator of the Environmental Protec2 tion Agency (referred to in this subsection as the 

3 ‘‘Secretary’’), shall establish a competitive grant 

4 pilot program (referred to in this subsection as the 

5 ‘‘pilot program’’), to be administered through the 

6 Clean Cities Program of the Department of Energy, 

7 to provide not more than 10 geographically-dispersed 

8 project grants to State governments, local govern9 ments, metropolitan transportation authorities, or 

10 partnerships of those entities to carry out 1 or more 

11 projects for the purposes described in paragraph (2). 

12 (2) GRANT PURPOSES.—A grant under this 

13 subsection shall be used for the establishment of re14 fueling infrastructure corridors for alternative fuels 

15 along the National Highway System, including— 

16 (A) installation of infrastructure and 

17 equipment necessary to ensure adequate dis18 tribution of qualified alternative fuels within the 

19 corridor; 

20 (B) installation of infrastructure and 

21 equipment necessary to directly support vehicles 

22 powered by qualified alternative fuels; and 

23 (C) operation and maintenance of infra24 structure and equipment installed as part of a 

25 project funded by the grant. 


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1 (3) APPLICATIONS.— 

2 (A) REQUIREMENTS.— 

3 (i) IN GENERAL.—Subject to clause 

4 (ii), not later than 90 days after the date 

5 of enactment of this Act, the Secretary 

6 shall issue requirements for use in apply7 ing for grants under the pilot program. 

8 (ii) MINIMUM REQUIREMENTS.—At a 

9 minimum, the Secretary shall require that 

10 an application for a grant under this sub11 section— 

12 (I) be submitted by— 

13 (aa) the head of a State or 

14 local government or a metropoli15 tan transportation authority, or 

16 any combination of those entities; 

17 and 

18 (bb) a registered participant 

19 in the Clean Cities Program of 

20 the Department of Energy; and 

21 (II) include— 

22 (aa) a description of the 

23 project proposed in the applica24 tion, including the ways in which 


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1 the project meets the require2 ments of this subsection; 

3 (bb) an estimate of the de4 gree of use of the project, includ5 ing the estimated size of fleet of 

6 alternative fueled vehicles avail7 able within the geographic region 

8 of the corridor; 

9 (cc) an estimate of the po10 tential petroleum displaced and 

11 air pollution emissions reduced as 

12 a result of the project, and a 

13 plan to collect and disseminate 

14 petroleum displacement and envi15 ronmental data relating to the 

16 project to be funded under the 

17 grant, over the expected life of 

18 the project; 

19 (dd) a description of the 

20 means by which the project will 

21 be sustainable without Federal 

22 assistance after the completion of 

23 the term of the grant; 

24 (ee) a complete description 

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1 ing acquisition, construction, op2 eration, and maintenance costs 

3 over the expected life of the 

4 project; 

5 (ff) a description of which 

6 costs of the project will be sup7 ported by Federal assistance 

8 under this subsection; and 

9 (gg) documentation to the 

10 satisfaction of the Secretary that 

11 diesel fuel containing sulfur at 

12 not more than 15 parts per mil13 lion is available for carrying out 

14 the project, and a commitment 

15 by the applicant to use that fuel 

16 in carrying out the project. 

17 (B) PARTNERS.—An applicant under sub18 paragraph (A) may carry out a project under 

19 the pilot program in partnership with public 

20 and private entities. 

21 (4) SELECTION CRITERIA.—In evaluating appli22 cations under the pilot program, the Secretary 

23 shall— 

24 (A) consider the experience of each appli25 cant with previous, similar projects; and 


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1 (B) give priority consideration to applica2 tions that— 

3 (i) are most likely to maximize dis4 placement of petroleum consumption and 

5 environmental protection; 

6 (ii) demonstrate the greatest commit7 ment on the part of the applicant to ensure 

8 funding for the proposed project and the 

9 greatest likelihood that the project will be 

10 maintained or expanded after Federal as11 sistance under this subsection is com12 pleted; 

13 (iii) represent a partnership of public 

14 and private entities; and 

15 (iv) exceed the minimum requirements 

16 of paragraph (3)(A)(ii). 

17 (5) PILOT PROJECT REQUIREMENTS.— 

18 (A) MAXIMUM AMOUNT.—The Secretary 

19 shall provide not more than $20,000,000 in 

20 Federal assistance under the pilot program to 

21 any applicant. 

22 (B) COST SHARING.—The non-Federal 

23 share of the cost of any activity relating to 

24 qualified alternative fuel infrastructure develop25 ment carried out using funds from a grant 


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1 under this subsection shall be not less than 20 

2 percent. 

3 (C) MAXIMUM PERIOD OF GRANTS.—The 

4 Secretary shall not provide funds to any appli5 cant under the pilot program for more than 2 

6 years. 

7 (D) DEPLOYMENT AND DISTRIBUTION.— 

8 The Secretary shall seek, to the maximum ex9 tent practicable, to ensure a broad geographic 

10 distribution of project sites funded by grants 

11 under this subsection. 

12 (E) TRANSFER OF INFORMATION AND

13 KNOWLEDGE.—The Secretary shall establish 

14 mechanisms to ensure that the information and 

15 knowledge gained by participants in the pilot 

16 program are transferred among the pilot pro17 gram participants and to other interested par18 ties, including other applicants that submitted 

19 applications. 

20 (6) SCHEDULE.— 

21 (A) INITIAL GRANTS.— 

22 (i) IN GENERAL.—Not later than 90 

23 days after the date of enactment of this 

24 Act, the Secretary shall publish in the Fed25 eral Register, Commerce Business Daily, 


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1 and such other publications as the Sec2 retary considers to be appropriate, a notice 

3 and request for applications to carry out 

4 projects under the pilot program. 

5 (ii) DEADLINE.—An application de6 scribed in clause (i) shall be submitted to 

7 the Secretary by not later than 180 days 

8 after the date of publication of the notice 

9 under that clause. 

10 (iii) INITIAL SELECTION.—Not later 

11 than 90 days after the date by which appli12 cations for grants are due under clause 

13 (ii), the Secretary shall select by competi14 tive, peer-reviewed proposal up to 5 appli15 cations for projects to be awarded a grant 

16 under the pilot program. 

17 (B) ADDITIONAL GRANTS.— 

18 (i) IN GENERAL.—Not later than 2 

19 years after the date of enactment of this 

20 Act, the Secretary shall publish in the Fed21 eral Register, Commerce Business Daily, 

22 and such other publications as the Sec23 retary considers to be appropriate, a notice 

24 and request for additional applications to 

25 carry out projects under the pilot program 


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1 that incorporate the information and 

2 knowledge obtained through the implemen3 tation of the first round of projects author4 ized under the pilot program. 

5 (ii) DEADLINE.—An application de6 scribed in clause (i) shall be submitted to 

7 the Secretary by not later than 180 days 

8 after the date of publication of the notice 

9 under that clause. 

10 (iii) INITIAL SELECTION.—Not later 

11 than 90 days after the date by which appli12 cations for grants are due under clause 

13 (ii), the Secretary shall select by competi14 tive, peer-reviewed proposal such additional 

15 applications for projects to be awarded a 

16 grant under the pilot program as the Sec17 retary determines to be appropriate. 

18 (7) REPORTS TO CONGRESS.— 

19 (A) INITIAL REPORT.—Not later than 60 

20 days after the date on which grants are award21 ed under this subsection, the Secretary shall 

22 submit to Congress a report containing— 

23 (i) an identification of the grant re24 cipients and a description of the projects to 

25 be funded under the pilot program; 


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1 (ii) an identification of other appli2 cants that submitted applications for the 

3 pilot program but to which funding was 

4 not provided; and 

5 (iii) a description of the mechanisms 

6 used by the Secretary to ensure that the 

7 information and knowledge gained by par8 ticipants in the pilot program are trans9 ferred among the pilot program partici10 pants and to other interested parties, in11 cluding other applicants that submitted ap12 plications. 

13 (B) EVALUATION.—Not later than 2 years 

14 after the date of enactment of this Act, and an15 nually thereafter until the termination of the 

16 pilot program, the Secretary shall submit to 

17 Congress a report containing an evaluation of 

18 the effectiveness of the pilot program, including 

19 an assessment of the petroleum displacement 

20 and benefits to the environment derived from 

21 the projects included in the pilot program. 

22 (8) AUTHORIZATION OF APPROPRIATIONS.— 

23 There is authorized to be appropriated to the Sec24 retary to carry out this subsection $200,000,000, to 

25 remain available until expended. 


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1 SEC. 306. INCREASING CONSUMER AWARENESS OF FLEXI2 BLE FUEL AUTOMOBILES. 

3 Section 32908 of title 49, United States Code, is 

4 amended by adding at the end the following: 

5 ‘‘(g) INCREASING CONSUMER AWARENESS OF FLEXI6 BLE FUEL AUTOMOBILES.— 

7 ‘‘(1) IN GENERAL.—The Secretary of Transpor8 tation shall prescribe regulations that require the 

9 manufacturer of automobiles distributed in inter10 state commerce for sale in the United States— 

11 ‘‘(A) to prominently display a permanent 

12 badge or emblem on the quarter panel or tail13 gate of each such automobile that indicates 

14 such automobile is capable of operating on al15 ternative fuel; and 

16 ‘‘(B) to include information in the owner’s 

17 manual of each such automobile information 

18 that describes— 

19 ‘‘(i) the capability of the automobile 

20 to operate using alternative fuel; and 

21 ‘‘(ii) the benefits of using alternative 

22 fuel, including the renewable nature, the 

23 increased fuel efficiency, and the environ24 mental benefits of using alternative fuel. 

25 ‘‘(2) COLLABORATION.—The Secretary of 

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1 tailers to develop voluntary methods for providing 

2 prospective purchasers of automobiles with informa3 tion regarding the benefits of using alternative fuel 

4 in automobiles, including— 

5 ‘‘(A) the renewable nature of alternative 

6 fuel; and 

7 ‘‘(B) the environmental benefits of using 

8 alternative fuel.’’. 

9 SEC. 307. MINIMUM QUANTITY OF RENEWABLE FUEL DE10 RIVED FROM CELLULOSIC BIOMASS. 

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

12 7545(o)(2)(B)) is amended by striking clause (iii) and in13 serting the following: 

14 ‘‘(iii) MINIMUM QUANTITY DERIVED

15 FROM CELLULOSIC BIOMASS.—The applica16 ble volume referred to in clause (ii) shall 

17 contain a minimum of— 

18 ‘‘(I) for each of calendar years 

19 2010 through 2012, 75,000,000 gal20 lons that are derived from cellulosic 

21 biomass; and 

22 ‘‘(II) for calendar year 2013 and 

23 each calendar year thereafter, 

24 250,000,000 gallons that are derived 

25 from cellulosic biomass.’’. 


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1 SEC. 308. MINIMUM QUANTITY OF RENEWABLE FUEL DE2 RIVED FROM SUGAR. 

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

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

5 at the end the following: 

6 ‘‘(v) MINIMUM QUANTITY DERIVED

7 FROM SUGAR.—For calendar year 2008 

8 and each calendar year thereafter, the ap9 plicable volume referred to in clause (ii) 

10 shall contain a minimum of 100,000,000 

11 gallons that are derived from domestically12 grown sugarcane, sugar beets, or sugar 

13 components.’’. 

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

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

16 amended— 

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

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

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

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

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

22 by striking ‘‘6.8’’ and inserting ‘‘6.9’’; 

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

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

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

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


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1 SEC. 309. BIOENERGY RESEARCH AND DEVELOPMENT. 

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

3 U.S.C. 16231(c)) is amended— 

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

5 ‘‘$213,000,000’’ and inserting ‘‘$326,000,000’’; 

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

7 ‘‘$251,000,000’’ and inserting ‘‘$377,000,000’’; and 

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

9 ‘‘$274,000,000’’ and inserting ‘‘$398,000,000’’. 

10 SEC. 310. PRODUCTION INCENTIVES FOR CELLULOSIC 

11 BIOFUELS. 

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

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

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

15 through 2011’’. 

16 SEC. 311. LOW-INTEREST LOAN AND GRANT PROGRAM FOR 

17 RETAIL DELIVERY OF E–85 FUEL. 

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

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

20 1942(a)) is amended— 

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

22 the end; 

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

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

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


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1 ‘‘(11) building infrastructure, including pump 

2 stations, for the retail delivery to consumers of any 

3 fuel that contains not less than 85 percent ethanol, 

4 by volume.’’. 

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

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

7 amended by adding at the end the following: 

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

9 RETAIL DELIVERY OF E–85 FUEL. 

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

11 low-interest loan and grant program to assist farmer12 owned ethanol producers (including cooperatives and lim13 ited liability corporations) to develop and build infrastruc14 ture, including pump stations, for the retail delivery to 

15 consumers of any fuel that contains not less than 85 per16 cent ethanol, by volume. 

17 ‘‘(b) TERMS.— 

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

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

20 percent for each year. 

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

22 under this section shall be amortized over the ex23 pected life of the infrastructure project that is being 

24 financed with the proceeds of the loan. 


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

2 are authorized to be appropriated such sums as are nec3 essary to carry out this section.’’. 

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

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

6 shall promulgate such regulations as are necessary to 

7 carry out the amendments made by this section. 

8 SEC. 312. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS. 

9 (a) DEFINITIONS.—In this section: 

10 (1) TRANSIT-ORIENTED DEVELOPMENT COR11 RIDOR.—The term ‘‘Transit-Oriented Development 

12 Corridor’’ (referred to in this section as ‘‘TODC’’) 

13 means a geographic area designated by the Sec14 retary under subsection (b). 

15 (2) OTHER TERMS.—The terms ‘‘fixed guide16 way’’, ‘‘local governmental authority’’, ‘‘mass trans17 portation’’, ‘‘Secretary’’, ‘‘State’’, and ‘‘urbanized 

18 area’’ have the meanings given such terms in section 

19 5302 of title 49, United States Code. 

20 (b) TRANSIT-ORIENTED DEVELOPMENT COR21 RIDORS.— 

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

23 and carry out a program to designate geographic 

24 areas in urbanized areas as Transit-Oriented Devel25 opment Corridors. 


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1 (2) CRITERIA.—Each TODC shall include 

2 rights-of-way for fixed guideway mass transportation 

3 facilities (including commercial development of facili4 ties that have a physical and functional connection 

5 with each facility). 

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

7 State transportation departments and metropolitan 

8 planning organizations, the Secretary shall des9 ignate— 

10 (A) not fewer than 10 TODCs by Decem11 ber 31, 2015; and 

12 (B) not fewer than 20 TODCs by Decem13 ber 31, 2025. 

14 (4) TRANSIT GRANTS.— 

15 (A) IN GENERAL.—The Secretary may 

16 award grants to eligible States and local gov17 ernmental authorities to pay the Federal share 

18 of the cost of designating geographic areas in 

19 urbanized areas as TODCs. 

20 (B) APPLICATION.—Each eligible State or 

21 local governmental authority desiring a grant 

22 under this paragraph shall submit an applica23 tion to the Secretary, at such time, in such 

24 manner, and accompanied by such additional 


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1 information as the Secretary may reasonably 

2 require. 

3 (C) LABOR STANDARDS.—Subchapter IV 

4 of chapter 31 of title 40, United States Code 

5 shall apply to projects that receive funding 

6 under this section. 

7 (D) FEDERAL SHARE.—The Federal share 

8 of the cost of a project under this subsection 

9 shall be 50 percent. 

10 (c) TODC RESEARCH AND DEVELOPMENT.—To sup11 port effective deployment of grants and incentives under 

12 this section, the Secretary shall establish a TODC re13 search and development program to conduct research on 

14 the best practices and performance criteria for TODCs. 

15 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated $50,000,000 for each 

17 of fiscal years 2007 through 2012 to carry out this sec18 tion. 

19 TITLE IV—NATIONWIDE ENERGY 

20 SECURITY MEDIA CAMPAIGN 

21 SEC. 401. NATIONWIDE MEDIA CAMPAIGN TO DECREASE 

22 OIL CONSUMPTION. 

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

24 through the Assistant Secretary for Energy Efficiency and 

25 Renewable Energy (referred to in this section as the ‘‘SecVerDate Aug 31 2005 18:21 Jan 22, 2007 Jkt 059200 PO 00000 Frm 00125 Fmt 6652 Sfmt 6201 E:\BILLS\S339.IS S339

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1 retary’’), shall develop and conduct a national media cam2 paign for the purpose of decreasing oil consumption in the 

3 United States over the next decade. 

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

5 carry out subsection (a) directly or through— 

6 (1) competitively bid contracts with 1 or more 

7 nationally recognized media firms for the develop8 ment and distribution of monthly television, radio, 

9 and newspaper public service announcements; or 

10 (2) collective agreements with 1 or more nation11 ally recognized institutes, businesses, or nonprofit 

12 organizations for the funding, development, and dis13 tribution of monthly television, radio, and newspaper 

14 public service announcements. 

15 (c) USE OF FUNDS.— 

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

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

18 (A) ADVERTISING COSTS.— 

19 (i) The purchase of media time and 

20 space. 

21 (ii) Creative and talent costs. 

22 (iii) Testing and evaluation of adver23 tising. 

24 (iv) Evaluation of the effectiveness of 

25 the media campaign. 


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1 (v) The negotiated fees for the win2 ning bidder on requests from proposals 

3 issued either by the Secretary for purposes 

4 otherwise authorized in this section. 

5 (vi) Entertainment industry outreach, 

6 interactive outreach, media projects and 

7 activities, public information, news media 

8 outreach, and corporate sponsorship and 

9 participation. 

10 (B) ADMINISTRATIVE COSTS.—Operational 

11 and management expenses. 

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

13 the Secretary shall allocate not less than 85 percent 

14 of funds made available under subsection (e) for 

15 each fiscal year for the advertising functions speci16 fied under paragraph (1)(A). 

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

18 to Congress a report that describes— 

19 (1) the strategy of the national media campaign 

20 and whether specific objectives of the campaign were 

21 accomplished, including— 

22 (A) determinations concerning the rate of 

23 change of oil consumption, in both absolute and 

24 per capita terms; and 


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1 (B) an evaluation that enables consider2 ation whether the media campaign contributed 

3 to reduction of oil consumption; 

4 (2) steps taken to ensure that the national 

5 media campaign operates in an effective and effi6 cient manner consistent with the overall strategy 

7 and focus of the campaign; 

8 (3) plans to purchase advertising time and 

9 space; 

10 (4) policies and practices implemented to ensure 

11 that Federal funds are used responsibly to purchase 

12 advertising time and space and eliminate the poten13 tial for waste, fraud, and abuse; and 

14 (5) all contracts or cooperative agreements en15 tered into with a corporation, partnership, or indi16 vidual working on behalf of the national media cam17 paign. 

18 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to carry out this section 

20 $5,000,000 for each of fiscal years 2006 through 2010. 

Æ 


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