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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 339 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Dependence 
Reduction through Innovation in Vehicles and Energy Act''or the ``DRIVE 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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

Sec. 101. Oil savings target and action plan.
Sec. 102. Standards and requirements.
Sec. 103. Initial evaluation.
Sec. 104. Review and update of action plan.
Sec. 105. Baseline and analysis requirements.
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.
          TITLE IV--NATIONWIDE ENERGY SECURITY MEDIA CAMPAIGN

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

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) the United States is dangerously dependent on oil;
            (2) that dependence threatens the national security, 
        weakens the economy, hurts families, and harms the environment 
        of the United States;
            (3) the United States currently imports more than 60 
        percent of the oil needed in the United States, and that 
        percentage is expected to grow to almost 70 percent by 2025 if 
        no actions are taken;
            (4) nearly 2,500,000 barrels of oil per day are imported 
        from countries in the Persian Gulf region;
            (5) dependence on foreign oil has led to strategic 
        partnerships with some regimes that do not share the democratic 
        values of the United States;
            (6) terrorists have identified oil as a strategic 
        vulnerability and have increased attacks against oil 
        infrastructure worldwide;
            (7) oil imports comprise more than 31 percent of the 
        dangerously high United States trade deficit;
            (8) it is technically feasible to achieve oil savings of 
        more than 2,500,000 barrels per day by 2017 and 7,000,000 
        barrels per day by 2026;
            (9) those goals can be achieved by establishing a set of 
        flexible policies, including--
                    (A) increasing the efficiency of transportation;
                    (B) providing economic incentives for manufacturers 
                and consumers to produce and purchase fuel-efficient 
                vehicles and clean alternative fuels;
                    (C) encouraging the use of transit and the 
                reduction of truck idling; and
                    (D) the commercialization of clean alternative 
                liquid fuels and expansion of alternative fuels 
                infrastructure;
            (10) technology available as of the date of enactment of 
        this Act (including popular hybrid-electric vehicle models, the 
        sales of which in the United States have increased tenfold in 
        the past 5 years) make an oil savings plan eminently 
        achievable;
            (11) achieving those goals will benefit consumers and 
        businesses through lower fuel bills and reduction in world oil 
        prices;
            (12) achieving those goals will help protect the economy of 
        the United States by reducing vulnerability to volatile oil 
        prices and price shocks and by developing clean energy and 
        energy efficiency technology in the United States; and
            (13) it is urgent, essential, and feasible to implement an 
        action plan to achieve oil savings as soon as practicable 
        because any delay in initiating action will--
                    (A) make achieving necessary oil savings more 
                difficult and expensive;
                    (B) increase the risks to the national security, 
                economy, and environment of the United States; and
                    (C) harm consumers who want to purchase, and 
                businesses who want to provide, oil savings 
                technologies and fuels, and harm individuals who are 
                exposed to greater air pollution.
    (b) Purposes.--The purposes of this Act are--
            (1) to accelerate market penetration of advanced technology 
        vehicles, flexible fuel vehicles, biofuels, and other oil 
        saving technologies;
            (2) to enable the accelerated market penetration of 
        efficient transportation and clean alternative fuels without 
        adverse impact on air quality while maintaining a policy of 
        fuel neutrality, so as to allow market forces to elect the 
        technologies and fuels that are consumer-friendly, safe, 
        environmentally-sound, and economic;
            (3) to provide time-limited financial incentives to 
        encourage production and consumer purchase of oil saving 
        technologies and fuels nationwide; and
            (4) to promote a nationwide diversity of clean alternative 
        motor vehicle fuels and advanced motor vehicle technology, 
        including advanced lean burn technology, hybrid technology, 
        flexible fuel motor vehicles, alternatively fueled motor 
        vehicles, and other oil saving technologies.

               TITLE I--OIL SAVINGS PLAN AND REQUIREMENTS

SEC. 101. OIL SAVINGS TARGET AND ACTION PLAN.

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

SEC. 102. STANDARDS AND REQUIREMENTS.

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

SEC. 103. INITIAL EVALUATION.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Director shall--
            (1) publish in the Federal Register a Federal Government-
        wide analysis of--
                    (A) the oil savings achieved from the baseline 
                established under section 105; and
                    (B) the expected oil savings under the standards 
                and requirements of this Act (and amendments made by 
                this Act); and
            (2) determine whether oil savings will meet the targets 
        established under section 101.
    (b) Insufficient Oil Savings.--If the oil savings are less than the 
targets established under section 101, simultaneously with the analysis 
required under subsection (a)--
            (1) the Director shall publish a revised action plan that 
        is sufficient to achieve the targets; and
            (2) the head of each agency referred to in section 102(a) 
        shall propose new or revised regulations that are sufficient to 
        achieve the targets under subsections (a), (b), and (c), 
        respectively, of section 102.
    (c) Final Regulations.--Not later than 180 days after the date on 
which regulations are proposed under subsection (b)(2), the head of 
each agency referred to in section 102(a) shall promulgate final 
versions of those regulations that comply with section 102(a).

SEC. 104. REVIEW AND UPDATE OF ACTION PLAN.

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

SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS.

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

SEC. 106. NONREGULATORY MEASURES.

    The action plan required under section 101 and the revised action 
plans required under sections 103 and 104 shall include--
            (1) a projection of the barrels of oil displaced by 
        efficiency and sources of energy other than oil, including 
        biofuels, electricity, and hydrogen; and
            (2) a projection of the barrels of oil saved through 
        enactment of this Act and the Energy Policy Act of 2005 (42 
        U.S.C. 15801 et seq.).

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

SEC. 201. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.

    (a) In General.--Chapter 301 of title 49, United States Code, is 
amended by inserting after section 30123 the following:

``SEC. 30123A. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.

    ``(a) Rulemaking.--
            ``(1) In general.--Not later than 18 months after the date 
        of the enactment of this section, the Secretary of 
        Transportation shall, after notice and opportunity for comment, 
        promulgate rules establishing a national tire fuel efficiency 
        consumer information program for tires designed for use on 
        motor vehicles to educate consumers about the effect of tires 
        on automobile fuel efficiency.
            ``(2) Items to be included in rules.--The rules promulgated 
        under paragraph (1) shall include--
                    ``(A) a national tire fuel efficiency rating system 
                for motor vehicle tires to assist consumers in making 
                more educated tire purchasing decisions;
                    ``(B) requirements for providing information to 
                consumers, including point of sale information and 
                other potential information dissemination methods, 
                including the Internet;
                    ``(C) specifications for test methods for 
                manufacturers to use in assessing and rating tires to 
                avoid variation among test equipment and manufacturers; 
                and
                    ``(D) a national tire maintenance consumer 
                education program to maximize fuel efficiency, which 
                shall include information on tire inflation pressure, 
                alignment, rotation, and tread wear.
    ``(b) Consultation.--The Secretary shall consult with the Secretary 
of Energy and the Administrator of the Environmental Protection Agency 
on the means of conveying tire fuel efficiency consumer information.
    ``(c) Tire Marking.--The Secretary may not require permanent 
labeling of any kind on a tire for the purpose of tire fuel efficiency 
information.
    ``(d) Reports to Congress.--
            ``(1) In general.--The Secretary shall periodically assess 
        the rules promulgated under this section to determine--
                    ``(A) the utility of such rules to consumers;
                    ``(B) the level of cooperation by industry; and
                    ``(C) the contribution to national goals pertaining 
                to energy consumption.
            ``(2) Submission.--The Secretary shall submit periodic 
        reports detailing the findings of the assessments conducted 
        under paragraph (1) to--
                    ``(A) the Committee on Commerce, Science, and 
                Transportation of the Senate; and
                    ``(B) the Committee on Energy and Commerce of the 
                House of Representatives.
    ``(e) Applicability.--This section shall not apply to tires 
excluded from coverage under section 575.104(c)(2) of title 49, Code of 
Federal Regulations, as in effect on date of the enactment of this 
section.
    ``(f) Preemption.--
            ``(1) In general.--A State or political subdivision of a 
        State may not adopt or enforce a law or regulation on tire fuel 
        efficiency consumer information that conflicts with a 
        requirement under this section.
            ``(2) Savings provision.--Nothing in this section may be 
        construed to preempt a State or political subdivision of a 
        State from regulating the fuel efficiency of tires if such 
        regulation is not otherwise preempted under this section.''.
    (b) Enforcement.--Section 30165(a) of title 49, United States Code, 
is amended by adding at the end the following:
            ``(4) Section 30123a.--Any person who fails to comply with 
        the national tire fuel efficiency consumer information program 
        under section 30123A shall be subject to the United States 
        Government for a civil penalty of not more than $50,000 for 
        each violation.''.
    (c) Table of Contents.--The table of contents for chapter 301 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 30123 the following:

``30123A. Tire fuel efficiency consumer information .''.

SEC. 202. TIRE EFFICIENCY PROGRAM.

    (a) Standards for Tires Manufactured for Interstate Commerce.--
Section 30123 of title 49, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in the first sentence, by striking ``The 
                Secretary'' and inserting the following:
            ``(1) Uniform quality grading system.--
                    ``(A) In general.--The Secretary'';
                    (B) in the second sentence, by striking ``The 
                Secretary also shall'' and inserting the following:
                    ``(B) Inclusion.--The grading system established 
                pursuant to subparagraph (A) shall include standards 
                for rating the fuel efficiency of tires designed for 
                use on passenger cars and light trucks.
            ``(2) Nomenclature and marketing practices.--The Secretary 
        shall''; and
                    (C) in the third sentence, by striking ``A tire 
                standard'' and inserting the following:
            ``(3) Effect of standards and regulations.--A tire 
        standard''; and
            (2) by adding at the end the following:
    ``(d) National Tire Efficiency Program.--
            ``(1) Defined term.--In this subsection, the term `fuel 
        economy', with respect to a tire, means the extent to which the 
        tire contributes to the fuel economy of the automobile on which 
        the tire is mounted.
            ``(2) Program.--The Secretary shall develop and carry out a 
        national tire fuel efficiency program for tires designed for 
        use on passenger automobiles and light trucks.
            ``(3) Requirements.--Not later than March 31, 2009, the 
        Secretary shall issue regulations, which establish--
                    ``(A) policies and procedures for testing and 
                labeling tires for fuel economy to enable tire buyers 
                to make informed purchasing decisions about the fuel 
                economy of tires;
                    ``(B) policies and procedures to promote the 
                purchase of energy efficient replacement tires, 
                including purchase incentives, website listings on the 
                Internet, printed fuel economy guide booklets, and 
                mandatory requirements for tire retailers to provide 
                tire buyers with fuel efficiency information on tires; 
                and
                    ``(C) minimum fuel economy standards for tires.
            ``(4) Minimum fuel economy standards.--In promulgating 
        minimum fuel economy standards for tires, the Secretary shall 
        design standards that--
                    ``(A) ensure, in conjunction with the requirements 
                under paragraph (3)(B), that the average fuel economy 
                of replacement tires is not less than the average fuel 
                economy of tires sold as original equipment;
                    ``(B) secure the maximum technically feasible and 
                cost-effective fuel savings;
                    ``(C) do not adversely affect tire safety;
                    ``(D) incorporate the results from--
                            ``(i) laboratory testing; and
                            ``(ii) on-road fleet testing programs 
                        conducted by manufacturers, to the extent 
                        appropriate and available; and
                    ``(E) do not adversely affect efforts to manage 
                scrap tires.
            ``(5) Applicability.--The policies, procedures, and 
        standards developed under paragraph (3) shall apply to all tire 
        types and models regulated under the uniform tire quality 
        grading standards in section 575.104 of title 49, Code of 
        Federal Regulations (or a successor regulation).
            ``(6) Review.--
                    ``(A) In general.--Not less frequently than once 
                every 3 years, the Secretary shall--
                            ``(i) review the minimum fuel economy 
                        standards in effect for tires under this 
                        subsection; and
                            ``(ii) subject to subparagraph (B), revise 
                        the standards as necessary to ensure compliance 
                        with standards described in paragraph (4).
                    ``(B) Limitation.--The Secretary may not reduce the 
                average fuel economy standards applicable to 
                replacement tires.
            ``(7) No preemption of state law.--Nothing in this section 
        shall be construed to preempt any provision of State law 
        relating to higher fuel economy standards applicable to 
        replacement tires designed for use on passenger automobiles and 
        light trucks.
            ``(8) Exceptions.--Nothing in this section shall apply to--
                    ``(A) a tire or group of tires with the same stock 
                keeping unit, plant, and year, for which the volume of 
                tires produced or imported is less than 15,000 
                annually;
                    ``(B) a deep tread, winter-type snow tire, space-
                saver tire, or temporary use spare tire;
                    ``(C) a tire with a normal rim diameter of 12 
                inches or less;
                    ``(D) a motorcycle tire; or
                    ``(E) a tire manufactured specifically for use in 
                an off-road motorized recreational vehicle.''.
    (b) Conforming Amendment.--Section 30103(b)(1) of title 49, United 
States Code, is amended by striking ``When'' and inserting ``Except as 
provided in section 30123(d), if''.
    (c) Time for Implementation.--Beginning not later than March 31, 
2009, the Secretary of Transportation shall administer the national 
tire fuel efficiency program established under section 30123(d) of 
title 49, United States Code, as added by subsection (a).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated, for each of fiscal years 2008 through 2012, such sums as 
may be necessary to carry out section 30123(d) of title 49, United 
States Code, as added by subsection (a).

SEC. 203. REDUCTION OF SCHOOL BUS IDLING.

    (a) Statement of Policy.--Congress encourages each local 
educational agency (as defined in section 9101(26) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7801(26))) that receives 
Federal funds under the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6301 et seq.) to develop a policy to reduce the incidence of 
school bus idling at schools while picking up and unloading students.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator of the Environmental Protection 
Agency, working in coordination with the Secretary of Education, 
$5,000,000 for each of fiscal years 2008 through 2013 for use in 
educating States and local education agencies about--
            (1) benefits of reducing school bus idling; and
            (2) ways in which school bus idling may be reduced.

SEC. 204. FUEL EFFICIENCY FOR HEAVY DUTY TRUCKS.

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

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

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

``Sec.
``33001. Purpose and policy.
``33002. Definition.
``33003. Testing and assessment.
``33004. Standards.
``33005. Authorization of appropriations.
``Sec. 33001. Purpose and policy
    ``The purpose of this chapter is to reduce petroleum consumption by 
heavy duty motor vehicles.
``Sec. 33002. Definition
    ``In this chapter, the term `heavy duty motor vehicle'--
            ``(1) means a vehicle having a gross vehicle weight rating 
        of at least 10,000 pounds that is driven or drawn by mechanical 
        power and manufactured primarily for use on public streets, 
        roads, and highways; and
            ``(2) does not include a vehicle operated only on a rail 
        line.
``Sec. 33003. Testing and assessment
    ``(a) General Requirements.--The Administrator of the Environmental 
Protection Agency (referred to in this section as the `Administrator') 
shall develop and coordinate a national testing and assessment program 
to--
            ``(1) determine the fuel economy of heavy duty vehicles; 
        and
            ``(2) assess the fuel efficiency attainable through 
        available technology.
    ``(b) Testing.--Not later than 18 months after the date of the 
enactment of this chapter, the Administrator shall design and implement 
a National testing program to assess the fuel economy of heavy duty 
vehicles that is modeled on the fuel economy program established under 
chapter 329.
    ``(c) Assessment.--The Administrator shall consult with the 
Secretary of Transportation on the assessment of available technologies 
to enhance the fuel efficiency of heavy duty vehicles to ensure that 
the assessment appropriately considers vehicle use and needs.
    ``(d) Reporting.--The Administrator shall--
            ``(1) not later than 2 years after the date of the 
        enactment of this chapter, submit a report to Congress 
        regarding the results of the assessment of available 
        technologies to improve the fuel efficiency of heavy duty 
        vehicles.
            ``(2) not less frequently than once every 2 years, submit a 
        report to Congress that addresses the fuel economy of heavy 
        duty vehicles; and
``Sec. 33004. Standards
    ``(a) General Requirements.--Not later than 18 months after 
completing the testing and assessments under section 33003, the 
Secretary of Transportation shall promulgate regulations prescribing 
average heavy duty vehicle fuel economy standards. Each standard shall 
be the maximum feasible average fuel economy level that the Secretary 
determines that manufacturers can achieve for that model year. The 
Secretary may prescribe separate standards for different classes of 
heavy duty motor vehicles. The standards for each model year shall be 
completed not later than 18 months before the beginning of each model 
year.
    ``(b) Considerations and Consultation.--In determining maximum 
feasible average fuel economy, the Secretary shall consider--
            ``(1) relevant available heavy duty motor vehicle fuel 
        consumption information;
            ``(2) technological feasibility;
            ``(3) economic practicability;
            ``(4) the desirability of reducing United States dependence 
        on oil;
            ``(5) the effects of average fuel economy standards on 
        vehicle safety;
            ``(6) the effects of average fuel economy standards on 
        levels of employment and competitiveness of the heavy truck 
        manufacturing industry; and
            ``(7) the extent to which the standard will carry out the 
        purpose described in section 33001.
    ``(c) Cooperation.--The Secretary may advise, assist, and cooperate 
with departments, agencies, and instrumentalities of the Federal 
Government, States, and other public and private agencies in developing 
fuel economy standards for heavy duty motor vehicles.
    ``(d) 5-Year Plan for Testing Standards.--The Secretary shall 
establish, periodically review, and continually update a 5-year plan 
for testing heavy duty motor vehicle fuel economy standards prescribed 
under this chapter. In developing and establishing testing priorities, 
the Secretary shall consider factors the Secretary considers 
appropriate, consistent with the purpose described in section 33001 and 
the Secretary's other duties and powers under this chapter.
``Sec. 33005. Authorization of appropriations
    ``There are authorized to be appropriated, for each of fiscal years 
2008 through 2013, such sums as may be necessary to carry out this 
chapter.''.

SEC. 205. IDLING REDUCTION TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45O. IDLING REDUCTION CREDIT.

    ``(a) General Rule.--For purposes of section 38, the idling 
reduction tax credit determined under this section for the taxable year 
is an amount equal to 50 percent of the amount paid or incurred for the 
purchase and installation of each qualifying idling reduction device or 
qualifying idle reduction infrastructure placed in service by the 
taxpayer during the taxable year.
    ``(b) Limitation.--The maximum amount allowed as a credit under 
subsection (a) shall not exceed $3,500 per device or per 
infrastructure.
    ``(c) Definitions.--For purposes of subsection (a)--
            ``(1) Qualifying idling reduction device.--The term 
        `qualifying idling reduction device' means any device or system 
        of devices which--
                    ``(A) is installed on a heavy-duty diesel-powered 
                on-highway vehicle,
                    ``(B) is designed to provide to such vehicle those 
                services (such as heat, air conditioning, or 
                electricity) that would otherwise require the operation 
                of the main drive engine while the vehicle is 
                temporarily parked or remains stationary using either--
                            ``(i) an all electric unit, such as a 
                        battery powered unit or from grid-supplied 
                        electricity, or
                            ``(ii) a dual fuel unit powered by diesel 
                        or other fuels, and capable of providing such 
                        services from grid-supplied electricity or on-
                        truck batteries alone,
                    ``(C) the original use of which commences with the 
                taxpayer,
                    ``(D) is acquired for use by the taxpayer and not 
                for resale, and
                    ``(E) is certified by the Secretary of Energy, in 
                consultation with the Administrator of the 
                Environmental Protection Agency and the Secretary of 
                Transportation, to reduce long-duration idling of such 
                vehicle at a motor vehicle rest stop or other location 
                where such vehicles are temporarily parked or remain 
                stationary.
            ``(2) Heavy-duty diesel-powered on-highway vehicle.--The 
        term `heavy-duty diesel-powered on-highway vehicle' means any 
        vehicle, machine, tractor, trailer, or semi-trailer propelled 
        or drawn by mechanical power and used upon the highways in the 
        transportation of passengers or property, or any combination 
        thereof determined by the Federal Highway Administration.
            ``(3) Long-duration idling.--The term `long-duration 
        idling' means the operation of a main drive engine, for a 
        period greater than 15 consecutive minutes, where the main 
        drive engine is not engaged in gear. Such term does not apply 
        to routine stoppages associated with traffic movement or 
        congestion.
            ``(4) Qualifying idle reduction infrastructure.--The term 
        `qualifying idle reduction infrastructure' means either--
                    ``(A) off-truck equipment to supply electric power, 
                including electric receptacles, boxes, wiring, conduit, 
                and other connections to one truck space, or
                    ``(B) off-truck equipment that directly provides 
                air conditioning, heating, electric power, and other 
                connections and services to one truck space.
    ``(d) No Double Benefit.--For purposes of this section--
            ``(1) Reduction in basis.--If a credit is determined under 
        this section with respect to any property by reason of 
        expenditures described in subsection (a), the basis of such 
        property shall be reduced by the amount of the credit so 
        determined.
            ``(2) Other deductions and credits.--No deduction or credit 
        shall be allowed under any other provision of this chapter with 
        respect to the amount of the credit determined under this 
        section.
    ``(e) Election Not to Claim Credit.--This section shall not apply 
to a taxpayer for any taxable year if such taxpayer elects to have this 
section not apply for such taxable year.''.
    (b) Credit to Be Part of General Business Credit.--Subsection (b) 
of section 38 of the Internal Revenue Code of 1986 (relating to general 
business credit) is amended by striking ``plus'' at the end of 
paragraph (30), by striking the period at the end of paragraph (31) and 
inserting ``, plus'' , and by adding at the end the following new 
paragraph:
            ``(32) the idling reduction tax credit determined under 
        section 45O(a).''.
    (c) Conforming Amendments.--
            (1) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by inserting after the item relating to section 45N 
        the following new item:

``Sec. 45O. Idling reduction credit.''.
            (2) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following:
            ``(38) in the case of a facility with respect to which a 
        credit was allowed under section 45O, to the extent provided in 
        section 45O(d)(1).''.
            (3) Section 6501(m) of such Code is amended by inserting 
        ``45O(e),'' after ``45D(c)(4),''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
    (e) Determination of Certification Standards by Secretary of Energy 
for Certifying Idling Reduction Devices.--Not later than 6 months after 
the date of the enactment of this Act and in order to reduce air 
pollution and fuel consumption, the Secretary of Energy, in 
consultation with the Administrator of the Environmental Protection 
Agency and the Secretary of Transportation, shall publish the standards 
under which the Secretary, in consultation with the Administrator of 
the Environmental Protection Agency and the Secretary of 
Transportation, will, for purposes of section 45O of the Internal 
Revenue Code of 1986 (as added by this section), certify the idling 
reduction devices and idling reduction infrastructure which will reduce 
long-duration idling of vehicles at motor vehicle rest stops or other 
locations where such vehicles are temporarily parked or remain 
stationary in order to reduce air pollution and fuel consumption.

SEC. 206. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.

    (a) Purposes.--The purposes of this section are to enhance the 
energy security of the United States, reduce dependence on imported 
oil, improve the energy efficiency of the transportation sector, and 
reduce emissions through the expansion of grid-supported mobility by--
            (1) developing, in partnership with private industry, 
        research institutions, National Laboratories, and institutions 
        of higher education, projects to promote--
                    (A) the commercialization of electric drive 
                transportation technology and hybrid vehicle technology 
                for various sizes and applications of vehicles, 
                including the commercialization of plug-in hybrid 
                electric vehicles and plug-in hybrid fuel cell 
                vehicles;
                    (B) growth in employment in the United States in--
                            (i) electric drive transportation 
                        technology and hybrid vehicle system design; 
                        and
                            (ii) the manufacturing of electric drive 
                        and hybrid components and vehicles;
                    (C) the validation of the potential for plug-in 
                hybrid vehicles through fleet demonstrations and data 
                collection; and
                    (D) the acceleration of fuel cell commercialization 
                through comprehensive development and commercialization 
                of the electric drive transportation technology systems 
                that are the foundational technology of the fuel cell 
                vehicle system;
            (2) making critical public investments to help private 
        industry, research institutions, National Laboratories, and 
        institutions of higher education to expand innovation, 
        industrial growth, and jobs in the United States through the 
        development, demonstration, and commercialization of a wide 
        range of electric drive transportation technology and hybrid 
        technology components, systems, and vehicles using diverse 
        transportation technologies;
            (3) optimizing the availability of the existing electric 
        infrastructure for fueling light-duty transportation and other 
        on-road and nonroad vehicles in lieu of vehicles and equipment 
        that use petroleum, including the more than 3,000,000 reported 
        units (such as electric forklifts, golf carts, and similar 
        nonroad vehicles) in use on the date of enactment of this Act; 
        and
            (4) developing advanced communication, metering, and 
        charging technologies necessary for the integration of electric 
        drive transportation technology into the smart grid of the 
        future.
    (b) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Battery.--The term ``battery'' means an electrochemical 
        energy storage device used in an on-road or nonroad vehicle 
        powered in whole or in part using an off-board or on-board 
        source of electricity.
            (3) Electric drive transportation technology.--The term 
        ``electric drive transportation technology'' means--
                    (A) vehicles that use an electric motor for all or 
                part of the motive power of the vehicles and that may 
                or may not use off-board electricity, including battery 
                electric vehicles, fuel cell vehicles, engine dominant 
                hybrid vehicles, plug-in hybrid electric vehicles, 
                plug-in hybrid fuel cell vehicles, and electric rail; 
                or
                    (B) equipment relating to transportation or mobile 
                sources of air pollution that use an electric motor to 
                replace an internal combustion engine for all or part 
                of the work of the equipment, including--
                            (i) corded electric equipment linked to 
                        transportation or mobile sources of air 
                        pollution; and
                            (ii) electrification technologies at 
                        airports, ports, truck stops, and material-
                        handling facilities.
            (4) Energy storage device.--
                    (A) In general.--The term ``energy storage device'' 
                means the onboard device used in an on-road or nonroad 
                vehicle to store energy.
                    (B) Inclusions.--The term ``energy storage device'' 
                includes--
                            (i) in the case of an electric or hybrid 
                        electric vehicle, a battery, ultracapacitor, or 
                        similar device; and
                            (ii) in the case of a hybrid hydraulic 
                        vehicle, an accumulator or similar device.
            (5) Engine dominant hybrid vehicle.--The term ``engine 
        dominant hybrid vehicle'' means an on-road or nonroad vehicle 
        that--
                    (A) is propelled by an internal combustion engine 
                or heat engine using--
                            (i) any combustible fuel; and
                            (ii) an on-board, rechargeable energy 
                        storage device; and
                    (B) has no means of using an off-board source of 
                energy.
            (6) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
        means an on-road or nonroad vehicle that uses a fuel cell (as 
        defined in section 803 of the Spark M. Matsunaga Hydrogen 
        Research, Development, and Demonstration Act of 1990 (42 U.S.C. 
        16152)).
            (7) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 
        15801).
            (8) Nonroad vehicle.--The term ``nonroad vehicle'' means a 
        vehicle powered by a nonroad engine, as that term is defined in 
        section 216 of the Clean Air Act (42 U.S.C. 7550).
            (9) Plug-in hybrid electric vehicle.--The term ``plug-in 
        hybrid electric vehicle'' means a light-duty, medium-duty, or 
        heavy-duty on-road or nonroad vehicle that is propelled by any 
        combination of--
                    (A) an electric motor and on-board, rechargeable 
                energy storage system capable of operating the vehicle 
                in intermittent or continuous all-electric mode and 
                which is rechargeable using an off-board source of 
                electricity; and
                    (B) an internal combustion engine or heat engine 
                using any combustible fuel.
            (10) Plug-in hybrid fuel cell vehicle.--The term ``plug-in 
        hybrid fuel cell vehicle'' means a fuel cell vehicle with an 
        on-board, rechargeable storage device powered by an off-board 
        source of electricity.
            (11) Qualified electric transportation project.--The term 
        ``qualified electric transportation project'' includes a 
        project relating to--
                    (A) ship-to-shore electrification;
                    (B) truck-stop electrification;
                    (C) electric truck refrigeration units;
                    (D) electric airport ground support equipment;
                    (E) electric material handing equipment;
                    (F) electric or dual-mode electric freight rail; 
                and
                    (G) any associated infrastructure, including panel 
                upgrades, battery chargers, and trenching.
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (13) Task force.--The term ``Task Force'' means the task 
        force established under subsection (e)(2)(A).
    (c) Electric Drive and Hybrid Transportation Research and 
Development.--The Secretary shall carry out a research, development, 
demonstration, and commercial application program for electric drive 
transportation technology and engine dominant hybrid vehicle 
technology, including--
            (1) high capacity, high efficiency energy storage devices 
        that, as compared to existing technologies that are in 
        commercial service, have improved the life, energy storage 
        capacity, and power delivery capacity of the energy storage 
        device;
            (2) high efficiency on-board and off-board charging 
        components;
            (3) high power and energy-efficient drive train systems for 
        passenger and commercial vehicles and for nonroad vehicles;
            (4) control system development and power train development 
        and integration for plug-in hybrid electric vehicles, plug-in 
        hybrid fuel cell vehicles, and engine dominant hybrid vehicles, 
        including--
                    (A) development of efficient cooling systems;
                    (B) analysis and development of control systems 
                that minimize the emissions profile when clean diesel 
                engines are part of a plug-in hybrid drive system; and
                    (C) development of different control systems that 
                optimize for different goals, including--
                            (i) energy storage device life;
                            (ii) reduction of petroleum consumption; 
                        and
                            (iii) greenhouse gas reduction;
            (5) nanomaterial technology applied to energy storage 
        device and fuel cell systems; and
            (6) smart vehicle and grid interconnection devices and 
        software that enable communications between the grid of the 
        future and electric drive transportation technology vehicles.
    (d) Market Assessment and Electricity Usage Program.--
            (1) In general.--The Secretary, in consultation with the 
        Administrator and private industry, shall carry out a program--
                    (A) to inventory and analyze existing electric 
                drive transportation technologies and hybrid 
                technologies and markets;
                    (B) to identify and implement methods of removing 
                barriers for existing and emerging applications of 
                electric drive transportation technologies and hybrid 
                transportation technologies;
                    (C) to work with utilities to develop low-cost, 
                simple methods of--
                            (i) using off-peak electricity; or
                            (ii) managing on-peak electricity use;
                    (D) to develop systems and processes--
                            (i) to enable plug-in hybrid vehicles to 
                        enhance the availability of emergency back-up 
                        power for consumers; and
                            (ii) to study and demonstrate the potential 
                        value to the electric grid to use the energy 
                        stored in the on-board storage systems to 
                        improve the efficiency and reliability of the 
                        grid generation system; and
                    (E) to work with utilities and other interested 
                stakeholders to study and demonstrate the implications 
                of the introduction of plug-in hybrid vehicles and 
                other types of electric transportation on the 
                production of electricity from renewable resources.
            (2) Off-peak electricity usage grants.--In carrying out the 
        program under paragraph (1), the Secretary shall provide grants 
        to assist eligible public and private electric utilities for 
        the conduct of programs or activities to encourage owners of 
        electric drive transportation technologies--
                    (A) to use off-peak electricity; or
                    (B) to have the load managed by the utility.
    (e) Plug-in Hybrid Electric Vehicle, Electric Drive Transportation 
Technology, and Hybrid Vehicle Testing and Certification Program.--
            (1) Testing program.--
                    (A) In general.--To facilitate the introduction of 
                plug-in hybrid electric vehicles, electric drive 
                transportation technologies, and hybrid vehicle 
                technologies into commercial use, the Secretary, in 
                consultation with the Administrator and in 
                collaboration with private industry, shall develop and 
                carry out a program to test the emissions of criteria 
                pollutants, energy use, and the petroleum reduction 
                potential of light-duty, medium-duty, and heavy-duty 
                plug-in hybrid electric vehicles and other forms of 
                electric drive transportation technologies under test 
                conditions and actual driving conditions.
                    (B) Test procedures.--
                            (i) Development.--In developing test 
                        procedures for the program under subparagraph 
                        (A), the Secretary shall take into account the 
                        results of previous testing activities of the 
                        public and private sectors.
                            (ii) Considerations.--The test procedures 
                        developed for the program under subparagraph 
                        (A) shall consider--
                                    (I) the vehicle and fuel as a 
                                system, not just an engine;
                                    (II) nightly off-board charging, as 
                                applicable; and
                                    (III) different engine-turn on 
                                speed control strategies.
                    (C) Field operations program.--In conducting tests 
                under the program under subparagraph (A), the Secretary 
                shall use the capabilities of the Field Operations 
                Program and qualified vehicle testing sites of the 
                Department of Energy.
            (2) Certification standards task force.--
                    (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, the Administrator, in 
                cooperation with the Secretary, shall establish a task 
                force to develop minimum certification standards for 
                plug-in hybrid electric vehicles.
                    (B) Composition.--The Task Force shall be comprised 
                of members, to be appointed by the Administrator, that 
                represent--
                            (i) vehicle manufacturers;
                            (ii) environmental organizations;
                            (iii) utilities;
                            (iv) fleet operators;
                            (v) research organizations; and
                            (vi) appropriate Federal agencies, 
                        including the Department of Transportation and 
                        the Department of Energy.
                    (C) Duties.--The Task Force shall--
                            (i) identify critical path issues in the 
                        establishment of a certification protocol;
                            (ii) identify criteria for the 
                        establishment of a plug-in hybrid electric 
                        vehicle certification protocol that would be 
                        applicable to various plug-in hybrid vehicle 
                        technologies, applications, and control 
                        strategies;
                            (iii) evaluate test data available from 
                        plug-in hybrid electric vehicle test programs 
                        and fuel economy analyses;
                            (iv) work with the Administrator to develop 
                        guidelines to permit the emissions reductions 
                        attributable to the use of plug-in hybrid 
                        vehicles to be recognized for purposes of State 
                        implementation plans; and
                            (v) recommend a certification protocol for 
                        certifying the emissions, fuel economy, and 
                        petroleum usage of plug-in hybrid electric 
                        vehicles.
                    (D) Final certification protocol.--
                            (i) In general.--Not later than 18 months 
                        after the date of enactment of this Act, the 
                        Administrator shall--
                                    (I) publish in the Federal Register 
                                the recommended certification protocol 
                                developed under subparagraph (C)(v); 
                                and
                                    (II) provide an opportunity for 
                                public comment with respect to the 
                                recommended certification protocol.
                            (ii) Publication.--Not later than 2 years 
                        after the date of enactment of this Act, the 
                        Administrator shall publish in the Federal 
                        Register the final certification protocol for 
                        plug-in hybrid electric vehicles.
    (f) Education Program.--
            (1) In general.--The Secretary shall develop a nationwide 
        electric drive transportation technology program under which 
        the Secretary provides--
                    (A) to secondary schools and high schools, teaching 
                materials; and
                    (B) to institutions of higher education, assistance 
                for programs relating to electric drive system and 
                component engineering.
            (2) Electric vehicle competition.--The program established 
        under paragraph (1) shall include a plug-in hybrid electric 
        vehicle competition for institutions of higher education, which 
        shall be known as the ``Dr. Andrew Frank Plug-In Hybrid 
        Electric Vehicle Competition''.
            (3) Engineers.--In carrying out the program established 
        under paragraph (1), the Secretary shall provide financial 
        assistance to institutions of higher education to create new, 
        or support existing, degree programs to ensure the availability 
        of trained electrical and mechanical engineers with the skills 
        necessary for the advancement of--
                    (A) plug-in hybrid electric vehicles; and
                    (B) other forms of electric drive transportation 
                technology vehicles.
    (g) Near-Term Electric Transportation Deployment Program.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator, after consultation 
        with the Secretary and the Secretary of Transportation, shall 
        establish a program under which the Administrator shall provide 
        grants and loans to eligible entities for the conduct of 
        qualified electric transportation projects that would reduce 
        emissions of criteria pollutants, greenhouse gas emissions, and 
        petroleum usage by at least 40 percent as compared to 
        commercially available, non-electric technologies.
            (2) Grants.--
                    (A) In general.--Of the amounts made available for 
                grants under paragraph (1)--
                            (i) \2/3\ shall be made available by the 
                        Administrator on a competitive basis to 
                        qualified electric transportation projects 
                        based on the overall cost-effectiveness of the 
                        projects in reducing emissions of criteria 
                        pollutants, emissions of greenhouse gases, and 
                        petroleum usage; and
                            (ii) \1/3\ shall be made available by the 
                        Administrator to qualified electric 
                        transportation projects in the order that the 
                        grant applications are received, provided that 
                        the projects meet the minimum standard for the 
                        reduction of emissions of criteria pollutants, 
                        emissions of greenhouse gases, and petroleum 
                        usage under paragraph (1).
                    (B) Preference.--In providing grants under this 
                subsection, the Administrator shall give preference to 
                large-scale projects and large -scale aggregators of 
                projects.
            (3) Revolving loan program.--
                    (A) In general.--The Administrator shall establish 
                a revolving loan program to provide loans to eligible 
                entities for the conduct of qualified electric 
                transportation projects.
                    (B) Criteria.--The Administrator shall establish 
                criteria for the provision of loans under this 
                paragraph.
                    (C) Funding.--Of amounts made available to carry 
                out this subsection, the Administrator shall use any 
                amounts not used to provide grants under paragraph (2) 
                to carry out the revolving loan program under this 
                paragraph.
    (h) Cost-Sharing Requirement.--Notwithstanding section 988(c) of 
the Energy Policy Act of 2005 (42 U.S.C. 16352(c)), the non-Federal 
share of the cost of carrying out any activities assisted under this 
section shall be 30 percent.
    (i) Merit Review.--Notwithstanding section 989 of the Energy Policy 
Act of 2005 (42 U.S.C. 16353)--
            (1) of the amounts made available to carry out this section 
        under subsection (j)--
                    (A) not more than 30 percent shall be provided to 
                National Laboratories;
                    (B) not more than 10 percent shall be provided, 
                directly or indirectly, to projects for the development 
                or demonstration of fuel cell vehicles or plug-in 
                hybrid fuel cell vehicles; and
                    (C) not more than 5 percent shall be provided, 
                directly or indirectly, to projects for the development 
                or demonstration of electric rail or magnetic 
                levitation trains; and
            (2) of the amounts made available to carry out subsection 
        (g) under subsection (j)(2), not more than 30 percent shall be 
        provided, directly or indirectly, to ship-to-shore 
        electrification projects.
    (j) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this section (other than subsection (g)) $110,000,000 
        for each of fiscal years 2008 through 2013.
            (2) Near-term electric transportation deployment program.--
        There is authorized to be appropriated to carry out subsection 
        (g) $125,000,000 for each of fiscal years 2008 through 2013.

SEC. 207. PLUG-IN HYBRID ELECTRIC AND HYDROGEN VEHICLE PRIZES.

    Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396) is 
amended--
            (1) in subsection (c), by inserting ``, including plug-in 
        hybrid and hydrogen vehicle technologies'' before the period at 
        the end; and
            (2) in subsection (e)(2)--
                    (A) by striking ``$5,000,000'' and inserting 
                ``$450,000,000''; and
                    (B) by inserting ``, to remain available until 
                expended'' before the period at the end.

SEC. 208. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary of Energy shall establish a research and 
development program to determine ways in which--
            (1) the weight of vehicles may be reduced to improve fuel 
        efficiency without compromising passenger safety; and
            (2) the cost of lightweight materials (such as steel alloys 
        and carbon fibers) required for the construction of lighter-
        weight vehicles may be reduced.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $60,000,000 for each of fiscal 
years 2008 through 2013.

SEC. 209. HYBRID AND ADVANCED DIESEL VEHICLES.

    (a) Hybrid Vehicles.--Section 711 of the Energy Policy Act of 2005 
(42 U.S.C. 16061) is amended to read as follows:

``SEC. 711. HYBRID VEHICLES.

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

SEC. 210. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

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

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

    ``(a) Credit Allowed.--There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount equal to 
35 percent of the qualified investment of an eligible taxpayer for such 
taxable year.
    ``(b) Qualified Investment.--For purposes of this section--
            ``(1) In general.--The term `qualified investment' means, 
        with respect to any taxable year, the sum of--
                    ``(A) the costs paid or incurred by the eligible 
                taxpayer during such taxable year--
                            ``(i) to re-equip, expand, or establish any 
                        manufacturing facility in the United States of 
                        the eligible taxpayer to produce advanced 
                        technology motor vehicles or to produce 
                        eligible components, and
                            ``(ii) for qualified research (as defined 
                        in section 41(d)) related to advanced 
                        technology motor vehicles and eligible 
                        components performed in the United States, and
                    ``(B) qualified engineering integration costs 
                performed in the United States.
            ``(2) Attribution rules.--For purposes of paragraph 
        (1)(A)(i), in the case of a manufacturing facility of the 
        eligible taxpayer which produces both advanced technology motor 
        vehicles and other motor vehicles, or eligible components and 
        other components, only the amount paid or incurred for the 
        production of advanced technology motor vehicles and eligible 
        components shall be taken into account.
    ``(c) Eligible Taxpayer.--For purposes of this section--
            ``(1) In general.--The term `eligible taxpayer' means--
                    ``(A) any motor vehicle manufacturer if more than 
                50 percent of its gross receipts for the taxable year 
                is derived from the manufacture of motor vehicles or 
                any component parts of such vehicles, and
                    ``(B) any motor vehicle component parts 
                manufacturer if more than 20 percent of its gross 
                receipts for the taxable year is derived from the 
                manufacture of any component parts of motor vehicles.
            ``(2) Motor vehicle manufacturer.--The term `motor vehicle 
        manufacturer' means any taxpayer who manufacturers motor 
        vehicles.
            ``(3) Motor vehicle component parts manufacturer.--The term 
        `motor vehicle component parts manufacturer' means any taxpayer 
        who manufactures motor vehicle component parts, but is not a 
        motor vehicle manufacturer.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Advanced technology motor vehicle.--The term 
        `advanced technology motor vehicle' means--
                    ``(A) any new qualified fuel cell motor vehicle (as 
                defined in section 30B(b)(3));
                    ``(B) any new advanced lean burn technology motor 
                vehicle (as defined in section 30B(c)(3));
                    ``(C) any new qualified hybrid motor vehicle (as 
                defined in section 30B(d)(3)(A) and determined without 
                regard to any gross vehicle weight rating);
                    ``(D) any new qualified alternative motor fuel 
                vehicle (as defined in section 30B(e)(4));
                    ``(E) any plug-in hybrid electric vehicle; and
                    ``(F) any electric vehicle.
            ``(2) Eligible components.--The term `eligible component' 
        means any component inherent to any advanced technology motor 
        vehicle but not inherent to a motor vehicle which is not an 
        advanced technology motor vehicle, including--
                    ``(A) with respect to any gasoline or diesel-
                electric new qualified hybrid motor vehicle, any--
                            ``(i) electric motor or generator,
                            ``(ii) power split device,
                            ``(iii) power control unit,
                            ``(iv) power controls,
                            ``(v) integrated starter generator, or
                            ``(vi) battery,
                    ``(B) with respect to any hydraulic new qualified 
                hybrid motor vehicle, any--
                            ``(i) accumulator or other energy storage 
                        device,
                            ``(ii) hydraulic pump, or
                            ``(iii) hydraulic pump-motor assembly,
                            ``(iv) power control unit, or
                            ``(v) power controls,
                    ``(C) with respect to any new advanced lean burn 
                technology motor vehicle, any--
                            ``(i) diesel engine,
                            ``(ii) turbocharger,
                            ``(iii) fuel injection system, or
                            ``(iv) after-treatment system, such as a 
                        particle filter or NOx absorber, and
                    ``(D) with respect to any advanced technology motor 
                vehicle, any other component submitted for approval by 
                the Secretary.
            ``(3) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term by section 30(c)(2).
            ``(4) Plug-in hybrid electric vehicle.--
                    ``(A) In general.--The term `plug-in hybrid 
                electric vehicle' means a light-duty, medium-duty, or 
                heavy-duty on-road or nonroad vehicle that is propelled 
                by any combination of--
                            ``(i) an electric motor and on-board, 
                        rechargeable energy storage system capable of 
                        operating the vehicle in intermittent or 
                        continuous all-electric mode and which is 
                        rechargeable using an off-board source of 
                        electricity, and
                            ``(ii) an internal combustion engine or 
                        heat engine using any combustible fuel.
                    ``(B) Nonroad vehicle.--The term `nonroad vehicle' 
                means a vehicle powered by a nonroad engine, as that 
                term is defined in section 216 of the Clean Air Act (42 
                U.S.C. 7550).
            ``(5) Qualified engineering integration costs.--For 
        purposes of subsection (b)(1)(B), the term `qualified 
        engineering integration costs' means, with respect to any 
        advanced technology motor vehicle, costs incurred prior to the 
        market introduction of such motor vehicle for engineering tasks 
        related to--
                    ``(A) establishing functional, structural, and 
                performance requirements for components and subsystems 
                to meet overall vehicle objectives for a specific 
                application,
                    ``(B) designing interfaces for components and 
                subsystems with mating systems within a specific 
                vehicle application,
                    ``(C) designing cost effective, efficient, and 
                reliable manufacturing processes to produce components 
                and subsystems for a specific vehicle application, and
                    ``(D) validating functionality and performance of 
                components and subsystems for a specific vehicle 
                application.
    ``(e) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the sum of--
                    ``(A) the taxpayer's regular tax liability (as 
                defined in section 26(b)) for the taxable year, plus
                    ``(B) the tax imposed under section 55 for the 
                taxable year.
            ``(2) Carryover of unused credit amounts.--
                    ``(A) In general.--If the credit allowable under 
                subsection (a) for a taxable year exceeds the 
                limitation under paragraph (1) for such taxable year, 
                such excess shall be allowed--
                            ``(i) as a credit carryback to each of the 
                        13 taxable years preceding such year, and
                            ``(ii) as a credit carryforward to each of 
                        the 20 taxable years following such year.
                    ``(B) Amount carried to each year.--For purposes of 
                this paragraph, rules similar to the rules of section 
                39(a)(2) shall apply.
    ``(f) Special Rules.--
            ``(1) Reduction in basis.--For purposes of this subtitle, 
        if a credit is allowed under this section for any expenditure 
        with respect to any property, the increase in the basis of such 
        property which would (but for this paragraph) result from such 
        expenditure shall be reduced by the amount of the credit so 
        allowed.
            ``(2) Investments and property outside the united states.--
        No credit shall be allowed under subsection (a) with respect 
        to--
                    ``(A) any manufacturing facility which is located 
                outside the United States, and
                    ``(B) any engineering integration or research and 
                development conducted outside the United States.
            ``(3) Aggregation of expenditures; allocations.--For 
        purposes of this section, rules similar to the rules of 
        paragraphs (1) and (2) of section 41(f) shall apply.
            ``(4) Recapture.--The Secretary shall, by regulation, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any manufacturing facility 
        which ceases to produce advanced technology motor vehicles or 
        eligible components.
            ``(5) Public statement.--
                    ``(A) In general.--No credit shall be allowed under 
                subsection (a) for any taxable year unless the eligible 
                taxpayer makes publicly available a statement 
                describing the activities of the eligible taxpayer for 
                which the credit is allowed and the public benefits of 
                such activities, including the estimated amount of any 
                reduction in national oil consumption in future years 
                as a result of such activities.
                    ``(B) Time for publication.--The statement required 
                under subparagraph (A) shall be made available not 
                later than 90 days after the end of the taxable year 
                for which the credit under subsection (a) is allowed 
                and shall be in such form as the Secretary shall 
                prescribe.
            ``(6) No double benefit.--
                    ``(A) Coordination with other deductions and 
                credits.--Except as provided in subparagraph (B), the 
                amount of any deduction or other credit allowable under 
                this chapter for any cost taken into account in 
                determining the amount of the credit under subsection 
                (a) shall be reduced by the amount of such credit 
                attributable to such cost.
                    ``(B) Research and development costs.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), any amount described in subsection 
                        (b)(1)(A)(ii) taken into account in determining 
                        the amount of the credit under subsection (a) 
                        for any taxable year shall not be taken into 
                        account for purposes of determining the credit 
                        under section 41 for such taxable year.
                            ``(ii) Costs taken into account in 
                        determining base period research expenses.--Any 
                        amounts described in subsection (b)(1)(A)(ii) 
                        taken into account in determining the amount of 
                        the credit under subsection (a) for any taxable 
                        year which are qualified research expenses 
                        (within the meaning of section 41(b)) shall be 
                        taken into account in determining base period 
                        research expenses for purposes of applying 
                        section 41 to subsequent taxable years.
    ``(g) Election Not to Take Credit.--No credit shall be allowed 
under subsection (a) for any property if the taxpayer elects not to 
have this section apply to such property.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986, 
        as amended by this Act, is amended by striking ``and'' at the 
        end of paragraph (37), by striking the period at the end of 
        paragraph (38) and inserting ``, and'', and by adding at the 
        end the following new paragraph:
            ``(39) to the extent provided in section 30D(f)(1).''.
            (2) Section 6501(m) of such Code is amended by inserting 
        ``30D(g),'' after ``30C(e)(5),''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 30C the following new item:

``Sec. 30D. Advanced technology motor vehicles manufacturing credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts incurred in taxable years beginning after December 31, 
1993.

SEC. 211. CONSUMER INCENTIVES TO PURCHASE ADVANCED TECHNOLOGY VEHICLES.

    (a) Elimination on Number of New Qualified Hybrid and Advanced Lean 
Burn Technology Vehicles Eligible for Alternative Motor Vehicle 
Credit.--
            (1) In general.--Section 30B of the Internal Revenue Code 
        of 1986 is amended by striking subsection (f) and by 
        redesignating subsections (g) through (j) as subsections (f) 
        through (i), respectively.
            (2) Conforming amendments.--
                    (A) Paragraphs (4) and (6) of section 30B(h) of the 
                Internal Revenue Code of 1986 are each amended by 
                striking ``(determined without regard to subsection 
                (g))'' and inserting ``determined without regard to 
                subsection (f))''.
                    (B) Section 38(b)(25) of such Code is amended by 
                striking ``section 30B(g)(1)'' and inserting ``section 
                30B(f)(1)''.
                    (C) Section 55(c)(2) of such Code is amended by 
                striking ``section 30B(g)(2)'' and inserting ``section 
                30B(f)(2)''.
                    (D) Section 1016(a)(36) of such Code is amended by 
                striking ``section 30B(h)(4)'' and inserting ``section 
                30B(g)(4)''.
                    (E) Section 6501(m) of such Code is amended by 
                striking ``section 30B(h)(9)'' and inserting ``section 
                30B(g)(9)''.
    (b) Extension of Alternative Vehicle Credit for New Qualified 
Hybrid Motor Vehicles.--Paragraph (3) of section 30B(i) of the Internal 
Revenue Code of 1986 (as redesignated by subsection (a)) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2006, in taxable 
years ending after such date.

SEC. 212. CONSUMER INCENTIVES TO PURCHASE PLUG-IN HYBRID ELECTRIC 
              VEHICLES.

    (a) New Qualified Hybrid Motor Vehicle Includes Plug-in Electric 
Vehicles.--
            (1) In general.--Section 30B(d)(3)(A) of the Internal 
        Revenue Code of 1986 (defining new qualified hybrid motor 
        vehicle) is amended by striking ``and'' at the end of clause 
        (vi), by striking the period at the end of clause (vii) and 
        inserting ``, and'', and by inserting after clause (vii) the 
        following new clause:
                            ``(viii) which includes plug-in hybrid 
                        electric vehicles for purposes of paragraphs 
                        (2)(A) and (2)(B).''.
            (2) Definition.--Section 30B(d)(3) of such Code is amended 
        by adding at the end the following new subparagraph:
                    ``(D) Plug-in hybrid electric vehicle.--
                            ``(i) In general.--The term `plug-in hybrid 
                        electric vehicle' means a light-duty, medium-
                        duty, or heavy-duty on-road or nonroad vehicle 
                        that is propelled by any combination of--
                                    ``(I) an electric motor and on-
                                board, rechargeable energy storage 
                                system capable of operating the vehicle 
                                in intermittent or continuous all-
                                electric mode and which is rechargeable 
                                using an off-board source of 
                                electricity, and
                                    ``(II) an internal combustion 
                                engine or heat engine using any 
                                combustible fuel.
                            ``(ii) Nonroad vehicle.--The term `nonroad 
                        vehicle' means a vehicle powered by a nonroad 
                        engine, as that term is defined in section 216 
                        of the Clean Air Act (42 U.S.C. 7550).''
    (b) Credit Amount for Passenger Automobiles and Light Trucks.--
            (1) In general.--Section 30B(d)(2)(A) of the Internal 
        Revenue Code of 1986 is amended--
                    (A) by striking ``clauses (i) and (ii)'' and 
                inserting ``clauses (i), (ii), and (iii)'',
                    (B) by inserting ``, except that for purposes of 
                any plug-in hybrid electric vehicle, subsection 
                (c)(2)(A)(ii) shall not include fuel economy increases 
                resulting from off-board sources of electricity'' after 
                ``such subsection'' in clause (i), and
                    (C) by adding at the end the following new clause:
                            ``(iii) Increase for battery-powered range 
                        from off-board electricity.--The amount 
                        determined under this clause in 2009 through 
                        2015 as follows:
                                    ``(I) $800 if such vehicle uses a 4 
                                kWh traction battery.
                                    ``(II) $1200 if such vehicle uses a 
                                5 kWh traction battery.
                                    ``(III) $1600 if such vehicle uses 
                                a 6 kWh traction battery.
                                    ``(IV) $2000 if such vehicle uses a 
                                7 kWh traction battery.
                                    ``(V) $2400 if such vehicle uses a 
                                8 kwh traction battery.
                                    ``(VI) $2800 if such vehicle uses a 
                                9 kWh traction battery.
                                    ``(VII) $3000 if such vehicle uses 
                                a 10 kWh traction battery.
                                    ``(VIII) $3200 if such vehicle uses 
                                a 11 kWh traction battery.
                                    ``(IX) $3400 if such vehicle uses a 
                                12 kWh traction battery.
                                    ``(X) $3800 if such vehicle uses a 
                                13 kWh traction battery.
                                    ``(XI) $4000 if such vehicle uses a 
                                14 kWh traction battery.
                                    ``(XII) $4200 if such vehicle uses 
                                a 15 kWh traction battery.''.
            (2) Definition.--Section 30B(d)(3) of such Code, as amended 
        by subsection (a)(2), is amended by adding at the end the 
        following new subparagraph:
                    ``(E) Kwh traction battery.--For purposes of 
                paragraph (2)(A)(iii), the term `kWh traction battery' 
                means the size of an electrochemical storage device as 
                measured by from 100 percent state of charge to 0 
                percent state of charge.''.
    (c) Credit Amount for Other Motor Vehicles.--
            (1) In general.--Section 30B(d)(2)(B)(ii) of the Internal 
        Revenue Code of 1986 is amended by striking ``and'' at the end 
        of subclause (II), by striking the period at the end of 
        subclause (III) and inserting ``, and'', and by adding at the 
        end the following new subclause:
                                    ``(IV) 40 percent for a plug-in 
                                hybrid electric vehicle that can use 
                                off-board electricity to recharge an 
                                energy storage device capable of at 
                                least 10 miles of all electric range 
                                and a percentage greater than 40 
                                percent if the all electric range is 
                                greater than 10 miles, as determined by 
                                the Administrator of the Environmental 
                                Protection Agency.''.
            (2) Definition.--Section 30B(d)(3) of such Code, as amended 
        by subsection (b)(2), is amended by adding at the end the 
        following new subparagraph:
                    ``(F) All electric range.--For purposes of 
                paragraph (2)(B)--
                            ``(i) In general.--The term `all electric 
                        range' means miles traveled in a hybrid 
                        electric vehicle capable of using an off-board 
                        source of electricity and tested using the 
                        Environmental Protection Agency's Federal Urban 
                        Driving Schedule or a new driving schedule for 
                        plug-in hybrid electric vehicles.
                            ``(ii) Driving schedule for plug-in hybrid 
                        electric vehicles.--
                                    ``(I) Establishment.--Not later 
                                than 18 months after the date of 
                                enactment of this subparagraph, the 
                                Administrator of the Environmental 
                                Protection Agency shall develop a 
                                driving schedule for plug-in hybrid 
                                electric vehicles based on a test that 
                                shall start with a full battery and end 
                                when the battery reaches 20 percent 
                                state of charge after intermittent use 
                                of the battery and electric motor for 
                                vehicle propulsion at speeds no greater 
                                than 35 miles per hour, and which does 
                                not count vehicle miles traveled while 
                                the engine is operating.
                                    ``(II) Bonus credits.--Vehicles 
                                that can travel in all electric mode 
                                during a separate test of higher speed 
                                operation shall be entitled to bonus 
                                all electric range miles for purposes 
                                of the credit provided in this section 
                                on a schedule to be established by rule 
                                by the Administrator.''.
    (d) Duration of Tax Credit.--Section 30B(i)(3) of the Internal 
Revenue Code of 1986, as redesignated and amended by this Act, is 
amended by inserting ``(December 31, 2015, in the case of a new 
qualified hybrid motor vehicle which is a plug-in hybrid electric 
vehicle)'' after ``December 31, 2010''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2008.

SEC. 213. FEDERAL FLEET REQUIREMENTS.

    (a) Regulations.--
            (1) In general.--The Secretary of Energy shall issue 
        regulations for Federal fleets subject to the Energy Policy Act 
        of 1992 (42 U.S.C. 13201 et seq.) requiring that not later than 
        fiscal year 2016 each Federal agency achieve at least a 30 
        percent reduction in petroleum consumption, as calculated from 
        the baseline established by the Secretary for fiscal year 2005.
            (2) Requirement.--Not later than fiscal year 2016, of the 
        Federal vehicles required to be alternative fueled vehicles 
        under title V of the Energy Policy Act of 1992 (42 U.S.C. 13251 
        et seq.), at least 30 percent shall be hybrid motor vehicles 
        (including plug-in hybrid motor vehicles) or new advanced lean 
        burn technology motor vehicles (as defined in section 30B(c)(3) 
        of the Internal Revenue Code of 1986).
    (b) Inclusion of Electric Drive in Energy Policy Act of 1992.--
Section 508(a) of the Energy Policy Act of 1992 (42 U.S.C. 13258(a)) is 
amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) Allocation.--The Secretary''; and
            (2) by adding at the end the following:
            ``(2) Electric vehicles.--Not later than January 31, 2009, 
        the Secretary shall--
                    ``(A) allocate credit in an amount to be determined 
                by the Secretary for--
                            ``(i) acquisition of--
                                    ``(I) a light-duty hybrid electric 
                                vehicle;
                                    ``(II) a plug-in hybrid electric 
                                vehicle;
                                    ``(III) a fuel cell electric 
                                vehicle;
                                    ``(IV) a medium- or heavy-duty 
                                hybrid electric vehicle;
                                    ``(V) a neighborhood electric 
                                vehicle; or
                                    ``(VI) a medium- or heavy-duty 
                                dedicated vehicle; and
                            ``(ii) investment in qualified alternative 
                        fuel infrastructure or nonroad equipment, as 
                        determined by the Secretary; and
                    ``(B) allocate more than 1, but not to exceed 5, 
                credits for investment in an emerging technology 
                relating to any vehicle described in subparagraph (A) 
                to encourage--
                            ``(i) a reduction in petroleum demand;
                            ``(ii) technological advancement; and
                            ``(iii) environmental safety.''.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section (including the amendments made 
by subsection (b)) $10,000,000 for the period of fiscal years 2008 
through 2013.

SEC. 214. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL 
              PURCHASING REQUIREMENT.

    Section 306 of the Energy Policy Act of 1992 (42 U.S.C. 13215) is 
amended to read as follows:

``SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL 
              PURCHASING REQUIREMENT.

    ``(a) Ethanol-Blended Gasoline.--The head of each Federal agency 
shall ensure that, in areas in which ethanol-blended gasoline is 
reasonably available at a generally competitive price, the Federal 
agency purchases ethanol-blended gasoline containing at least 10 
percent ethanol, rather than gasoline that is not ethanol-blended, for 
use in vehicles used by the agency that use gasoline.
    ``(b) Biodiesel.--
            ``(1) Definition of biodiesel.--In this subsection, the 
        term `biodiesel' has the meaning given the term in section 
        312(f).
            ``(2) Requirement.--The head of each Federal agency shall 
        ensure that the Federal agency purchases, for use in fueling 
        fleet vehicles that use diesel fuel used by the Federal agency 
        at the location at which fleet vehicles of the Federal agency 
        are centrally fueled, in areas in which the biodiesel-blended 
        diesel fuel described in subparagraphs (A) and (B) is available 
        at a generally competitive price--
                    ``(A) as of the date that is 5 years after the date 
                of enactment of this paragraph, biodiesel-blended 
                diesel fuel that contains at least 20 percent 
                biodiesel, rather than diesel fuel that is not 
                biodiesel-blended; and
                    ``(B) as of the date that is 10 years after the 
                date of enactment of this paragraph, biodiesel-blended 
                diesel fuel that contains at least 80 percent 
                biodiesel, rather than diesel fuel that is not 
                biodiesel-blended.
            ``(3) Requirement of federal law.--This subsection shall 
        not be considered a requirement of Federal law for the purposes 
        of section 312.
    ``(c) Exemption.--This section does not apply to fuel used in 
vehicles excluded from the definition of `fleet' by subparagraphs (A) 
through (H) of section 301(9).''.

SEC. 215. USE OF THE EXISTING FLEXIBLE FUEL VEHICLE FLEET OF THE 
              FEDERAL GOVERNMENT.

    (a) Use of Alternative Fuels by Flexible Fuel Vehicles.--Section 
400AA(a)(3) of the Energy Policy and Conservation Act (42 U.S.C. 
6374(a)(3)) is amended by striking subparagraph (E) and inserting the 
following:
                    ``(E) Use of alternative fuels by flexible fuel 
                vehicles.--
                            ``(i) In general.--Flexible fuel vehicles 
                        acquired pursuant to this section shall be 
                        operated on alternative fuels unless the 
                        Secretary determines that an agency qualifies 
                        for a waiver of that requirement for vehicles 
                        operated by the agency in a particular 
                        geographic area in which--
                                    ``(I) the alternative fuel 
                                otherwise required to be used in the 
                                vehicle is not reasonably available to 
                                retail purchasers of the fuel, as 
                                certified to the Secretary by the head 
                                of the agency; or
                                    ``(II) the cost of the alternative 
                                fuel otherwise required to be used in 
                                the vehicle is unreasonably more 
                                expensive compared to gasoline, as 
                                certified to the Secretary by the head 
                                of the agency.
                            ``(ii) Compliance.--The Secretary shall 
                        monitor compliance with this subparagraph by 
                        all agency fleets and shall submit annually to 
                        Congress a report that--
                                    ``(I) describes the extent to which 
                                the requirements of this subparagraph 
                                are being achieved; and
                                    ``(II) includes information on 
                                annual reductions achieved from the use 
                                of petroleum-based fuels and the 
                                problems, if any, encountered in 
                                acquiring alternative fuels.''.
    (b) Alternative Compliance and Flexibility.--Section 514 of the 
Energy Policy Act of 1992 (42 U.S.C. 13263a) is amended to read as 
follows:

``SEC. 514. ALTERNATIVE COMPLIANCE.

    ``(a) Application for Waiver.--Any head of a Federal agency 
described in section 303(b)(3), any covered person subject to section 
501, and any State subject to section 507(o) may petition the Secretary 
for a waiver of the applicable requirements of section 303, 501, or 
507(o).
    ``(b) Grant of Waiver.--The Secretary may grant a waiver of the 
requirements of section 303, 501, or 507(o) upon a showing that the 
fleet owned, operated, leased, or otherwise controlled by the Federal 
agency, State, or covered person--
            ``(1) will achieve a reduction in its annual consumption of 
        petroleum fuels equal to--
                    ``(A) the reduction in consumption of petroleum 
                that would result from 100 percent compliance with fuel 
                use requirements in section 303 or 501, as appropriate; 
                or
                    ``(B) for entities covered under section 507(o), a 
                reduction equal to the covered entity's consumption of 
                alternative fuels if all its alternative fuel vehicles 
                given credit under section 508 were to use alternative 
                fuel 100 percent of the time; and
            ``(2) is in compliance with all applicable vehicle emission 
        standards established by the Administrator under the Clean Air 
        Act (42 U.S.C. 7401 et seq.).
    ``(c) Revocation of Waiver.--The Secretary shall revoke any waiver 
granted under this section if the Federal agency, State, or covered 
person fails to comply with subsection (b).''.

SEC. 216. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.

    (a) In General.--Section 32917 of title 49, United States Code, is 
amended to read as follows:
``Sec. 32917. Standards for executive agency automobiles
    ``(a) Definitions.--In this section:
            ``(1) Automobile.--The term `automobile' does not include 
        any vehicle designed for combat-related missions, law 
        enforcement work, or emergency rescue work.
            ``(2) Executive agency.--The term `Executive agency' has 
        the meaning given that term in section 105 of title 5.
            ``(3) New automobile.--The term `new automobile', with 
        respect to the fleet of automobiles of an executive agency, 
        means an automobile that is leased for at least 60 consecutive 
        days or purchased, by or for the Executive agency, after 
        September 30, 2005.
    ``(b) Baseline Average Fuel Economy.--In accordance with guidance 
issued under subsection (e), the head of each Executive agency shall 
calculate the average fuel economy for all automobiles in the Executive 
agency's fleet of automobiles that were leased or purchased during 
fiscal year 2005, which calculation shall serve as the baseline average 
fuel economy for the Executive agency's fleet of automobiles.
    ``(c) Increase of Average Fuel Economy.--The head of each Executive 
agency shall manage the procurement of automobiles for that Executive 
agency so that by not later than September 30, 2008, the average fuel 
economy of the new automobiles in the Executive agency's fleet of 
automobiles is not less than 3 miles per gallon higher than the 
baseline average fuel economy determined under subsection (b) for that 
Executive agency.
    ``(d) Fuel Efficiency.--The head of an Executive agency shall 
ensure that each new automobile procured by the Executive agency is as 
fuel efficient as practicable.
    ``(e) Calculation of Average Fuel Economy.--The Secretary of 
Transportation shall issue regulations to carry out this section, 
including regulations regarding the calculation of average fuel 
economy.''.
    (b) Conforming Amendment.--Section 32901(a)(3) of title 49, United 
States Code, is amended by striking ``section 32908 of this title,'' 
and inserting ``sections 32908 and 32917,''.

SEC. 217. TAX INCENTIVES FOR PRIVATE FLEETS.

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

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

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

``Sec. 48C. Fuel-efficient fleet credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2006, in taxable years ending after 
such date, under rules similar to the rules of section 48(m) of the 
Internal Revenue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 1990).

SEC. 218. REDUCING INCENTIVES TO GUZZLE GAS.

    (a) Inclusion of Heavy Vehicles in Limitation on Depreciation of 
Certain Luxury Automobiles.--
            (1) In general.--Section 280F(d)(5)(A) of the Internal 
        Revenue Code of 1986 (defining passenger automobile) is 
        amended--
                    (A) by striking clause (ii) and inserting the 
                following new clause:
                            ``(ii)(I) which is rated at 6,000 pounds 
                        unloaded gross vehicle weight or less, or
                            ``(II) which is rated at more than 6,000 
                        pounds but not more than 14,000 pounds gross 
                        vehicle weight.'',
                    (B) by striking ``clause (ii)'' in the second 
                sentence and inserting ``clause (ii)(I)''.
            (2) Exception for vehicles used in farming business.--
        Section 280F(d)(5)(B) of such Code (relating to exception for 
        certain vehicles) is amended by striking ``and'' at the end of 
        clause (ii), by redesignating clause (iii) as clause (iv), and 
        by inserting after clause (ii) the following new clause:
                            ``(iii) any vehicle used in a farming 
                        business (as defined in section 263A(e)(4), 
                        and''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after the date of the 
        enactment of this Act.
    (b) Updated Depreciation Deduction Limits.--
            (1) In general.--Subparagraph (A) of section 280F(a)(1) of 
        the Internal Revenue Code of 1986 (relating to limitation on 
        amount of depreciation for luxury automobiles) is amended to 
        read as follows:
                    ``(I) Limitation.--The amount of the depreciation 
                deduction for any taxable year shall not exceed for any 
                passenger automobile--
                            ``(i) for the 1st taxable year in the 
                        recovery period--
                                    ``(I) described in subsection 
                                (d)(5)(A)(ii)(I), $4,000,
                                    ``(II) described in the second 
                                sentence of subsection (d)(5)(A), 
                                $5,000, and
                                    ``(III) described in subsection 
                                (d)(5)(A)(ii)(II), $6,000,
                            ``(ii) for the 2nd taxable year in the 
                        recovery period--
                                    ``(I) described in subsection 
                                (d)(5)(A)(ii)(I), $6,400,
                                    ``(II) described in the second 
                                sentence of subsection (d)(5)(A), 
                                $8,000, and
                                    ``(III) described in subsection 
                                (d)(5)(A)(ii)(II), $9,600,
                            ``(iii) for the 3rd taxable year in the 
                        recovery period--
                                    ``(I) described in subsection 
                                (d)(5)(A)(ii)(I), $3,850,
                                    ``(II) described in the second 
                                sentence of subsection (d)(5)(A), 
                                $4,800, and
                                    ``(III) described in subsection 
                                (d)(5)(A)(ii)(II), $5,775, and
                            ``(iv) for each succeeding taxable year in 
                        the recovery period--
                                    ``(I) described in subsection 
                                (d)(5)(A)(ii)(I), $2,325,
                                    ``(II) described in the second 
                                sentence of subsection (d)(5)(A), 
                                $2,900, and
                                    ``(III) described in subsection 
                                (d)(5)(A)(ii)(II), $3,475.''.
            (2) Years after recovery period.--Section 280F(a)(1)(B)(ii) 
        of such Code is amended to read as follows:
                            ``(ii) Limitation.--The amount treated as 
                        an expense under clause (i) for any taxable 
                        year shall not exceed for any passenger 
                        automobile--
                                    ``(I) described in subsection 
                                (d)(5)(A)(ii)(I), $2,325,
                                    ``(II) described in the second 
                                sentence of subsection (d)(5)(A), 
                                $2,900, and
                                    ``(III) described in subsection 
                                (d)(5)(A)(ii)(II), $3,475.''.
            (3) Inflation adjustment.--Section 280F(d)(7) of such Code 
        (relating to automobile price inflation adjustment) is 
        amended--
                    (A) by striking ``after 1988'' in subparagraph (A) 
                and inserting ``after 2007'', and
                    (B) by striking subparagraph (B) and inserting the 
                following new subparagraph:
                    ``(B) Automobile price inflation adjustment.--For 
                purposes of this paragraph--
                            ``(i) In general.--The automobile price 
                        inflation adjustment for any calendar year is 
                        the percentage (if any) by which--
                                    ``(I) the average wage index for 
                                the preceding calendar year, exceeds
                                    ``(II) the average wage index for 
                                2006.
                            ``(ii) Average wage index.--The term 
                        `average wage index' means the average wage 
                        index published by the Social Security 
                        Administration.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after the date of the 
        enactment of this Act.
    (c) Expensing Limitation for Farm Vehicles.--
            (1) In general.--Paragraph (6) of section 179(b) of the 
        Internal Revenue Code of 1986 (relating to limitations) is 
        amended to read as follows:
            ``(6) Limitation on cost taken into account for farm 
        vehicles.--The cost of any vehicle described in section 
        280F(d)(5)(B)(iii) for any taxable year which may be taken into 
        account under this section shall not exceed $30,000.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to property placed in service after the date of the 
        enactment of this Act.

SEC. 219. INCREASING THE EFFICIENCY OF MOTOR VEHICLES.

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

              TITLE III--FUEL CHOICES FOR THE 21ST CENTURY

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

    (a) In General.--Subsection (a) of section 30C of the Internal 
Revenue Code of 1986 is amended by striking ``30 percent'' and 
inserting ``50 percent''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2006, in taxable years 
ending after such date.

SEC. 302. EXTENSION OF BIODIESEL INCOME AND EXCISE TAX CREDITS.

    (a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of 
the Internal Revenue Code of 1986 are each amended by striking 
``December 31, 2008'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2009.

SEC. 303. SMALL ETHANOL PRODUCER CREDIT EXPANDED FOR PRODUCERS OF 
              SUCROSE AND CELLULOSIC ETHANOL.

    (a) In General.--Subparagraph (C) of section 40(b)(4) of the 
Internal Revenue Code of 1986 (relating to small ethanol producer 
credit) is amended by inserting ``(30,000,000 gallons for any sucrose 
or cellulosic ethanol producer)'' after ``15,000,000 gallons''.
    (b) Sucrose or Cellulosic Ethanol Producer.--Section 40(b)(4) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(E) Sucrose or cellulosic ethanol producer.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `sucrose or cellulosic 
                        ethanol producer' means a producer of ethanol 
                        using sucrose feedstock or a producer of 
                        cellulosic biomass ethanol (as defined in 
                        section 168(l)(3)).
                            ``(ii) Sucrose feedstock.--For purposes of 
                        clause (i), the term `sucrose feedstock' means 
                        any raw sugar, refined sugar, or sugar 
                        equivalents (including juice and extract). Such 
                        term does not include any molasses, beet thick 
                        juice, or other similar products as determined 
                        by the Secretary.''.
    (c) Conforming Amendments.--
            (1) Section 40(g)(2) of the Internal Revenue Code of 1986 
        is amended by striking ``15,000,000 gallon limitation'' and 
        inserting ``15,000,000 and 30,000,000 gallon limitations''.
            (2) Section 40(g)(5)(B) of such Code is amended by striking 
        ``15,000,000 gallons'' and inserting ``the gallon limitation 
        under subsection (b)(4)(C)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 304. USE OF CAFE PENALTIES TO BUILD ALTERNATIVE FUELING 
              INFRASTRUCTURE.

    Section 32912 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(e) Alternative Fueling Infrastructure Grant Program.--
            ``(1) Trust fund.--
                    ``(A) Establishment.--There is established in the 
                Treasury of the United States a trust fund, to be known 
                as the `Alternative Fueling Infrastructure Trust Fund' 
                (referred to in this subsection as the `Trust Fund'), 
                consisting of such amounts as are deposited into the 
                Trust Fund under subparagraph (B) and any interest 
                earned on investment of amounts in the Trust Fund.
                    ``(B) Transfers of civil penalties.--The Secretary 
                of Transportation shall remit 90 percent of the amount 
                collected in civil penalties under this section to the 
                Trust Fund.
            ``(2) Establishment of grant program.--
                    ``(A) Grants authorized.--The Secretary of Energy 
                may award grants to the entities described in paragraph 
                (3) for the purpose of increasing the number of 
                locations at which consumers may purchase alternative 
                fuels.
                    ``(B) Obligation of funds.--The Secretary of Energy 
                shall obligate such sums as are available in the Trust 
                Fund for grants under this subsection.
            ``(3) Grant recipients.--
                    ``(A) In general.--Grants awarded pursuant to 
                paragraph (2)(A) may be awarded to--
                            ``(i) owners of individual fueling stations 
                        in an amount not greater than $150,000 per site 
                        or $500,000 per entity; and
                            ``(ii) corporations (including nonprofit 
                        corporations) with demonstrated experience in 
                        alternative fueling infrastructure.
                    ``(B) Priority.--In awarding grants under this 
                paragraph, the Secretary of Energy shall--
                            ``(i) give priority to recognized non-
                        profit corporations that have proven experience 
                        in the administration of grant funding and 
                        demonstrated technical expertise in the 
                        establishment of alternative fueling 
                        infrastructure;
                            ``(ii) consider the number of vehicles 
                        produced for sale in the preceding production 
                        year capable of using each type of alternative 
                        fuel; and
                            ``(iii) identify 1 primary group for each 
                        type of alternative fuel.
            ``(4) Use of funds.--
                    ``(A) In general.--Grants awarded under paragraph 
                (2)(A) may be used to--
                            ``(i) construct new facilities to dispense 
                        alternative fuels;
                            ``(ii) purchase equipment to upgrade, 
                        expand, or otherwise improve existing 
                        alternative fuel facilities; or
                            ``(iii) purchase equipment or pay for 
                        specific turnkey fueling services by 
                        alternative fuel providers.
                    ``(B) Matching requirement.--The Secretary of 
                Energy may not award a grant under paragraph (2)(A) 
                unless the grant recipient agrees to provide $1 of non-
                Federal contributions for every $3 of grant funds 
                received under this subsection.
                    ``(C) Administrative expenses.--A recipient of a 
                grant under paragraph (2)(A) may not use more than 10 
                percent of any such grant for administrative expenses.
            ``(5) Selection of alternative fuel stations.--Each grant 
        recipient shall select the location for each alternative fuel 
        station to be constructed with grant funds received under 
        paragraph (2)(A) on a formal, open, and competitive basis, 
        based on--
                    ``(A) the public demand for each alternative fuel 
                in a particular county based on state registration 
                records showing the number of vehicles that can be 
                operated with alternative fuel; and
                    ``(B) the opportunity to create or expand corridors 
                of alternative fuel stations along interstate or State 
                highways; and
                    ``(C) maximizing the geographic dispersion of 
                alternative fuel stations.
            ``(6) Operation of alternative fuel stations.--A facility 
        constructed or upgraded with grant funds received under 
        paragraph (2)(A) shall--
                    ``(A) provide alternative fuel available to the 
                public for a period of not less than 4 years;
                    ``(B) establish a marketing plan to advance the 
                sale and use of alternative fuels;
                    ``(C) prominently display the price of alternative 
                fuel on the marquee and in the station;
                    ``(D) provide point of sale materials on 
                alternative fuel;
                    ``(E) clearly label the dispenser with consistent 
                materials;
                    ``(F) price the alternative fuel at the same margin 
                that is received for unleaded gasoline; and
                    ``(G) support and use all available tax incentives 
                to reduce the cost of the alternative fuel to the 
                lowest possible retail price.
            ``(7) Notification requirements.--
                    ``(A) Opening.--Not later than the date on which 
                each alternative fuel station begins to offer 
                alternative fuel to the public, the grant recipient 
                that used grant funds to construct such station shall 
                notify the Secretary of Energy of such opening and the 
                Secretary shall add the new alternative fuel station to 
                the alternative fuel station locator on its website.
                    ``(B) Semi-annual report.--Not later than 6 months 
                after receiving a grant under this subsection, and 
                every 6 months thereafter, each grant recipient shall 
                submit a report to the Secretary of Energy that 
                describes--
                            ``(i) the status of each alternative fuel 
                        station constructed with grant funds received 
                        under this subsection;
                            ``(ii) the amount of alternative fuel 
                        dispensed at each station during the preceding 
                        6-month period; and
                            ``(iii) the average price per gallon of the 
                        alternative fuel sold at each station during 
                        the preceding 6-month period.
            ``(8) Alternative fuel defined.--In this subsection, the 
        term `alternative fuel' means--
                    ``(A) any fuel of which--
                            ``(i) not less than 85 percent of the 
                        volume consists of ethanol, natural gas, 
                        compressed natural gas, liquefied natural gas, 
                        liquefied petroleum gas, or hydrogen; or
                            ``(ii) a percentage determined by the 
                        Secretary, by rule, that is not less than 70 
                        percent, of the volume consists of the elements 
                        listed in clause (i), to provide for 
                        requirements relating to cold start, safety, or 
                        vehicle functions; or
                    ``(B) any mixture of biodiesel and diesel fuel 
                determined without regard to any use of kerosene that 
                contains at least 20 percent biodiesel.''.

SEC. 305. ACCELERATING CONVERSION TO ALTERNATIVE FUELS INFRASTRUCTURE.

    (a) Findings.--Congress finds that--
            (1) as of the date of enactment of this Act, an estimated 
        5,000,000 to 6,000,000 flexible-fuel vehicles are on roads in 
        the United States;
            (2) based on the report of the Department of Energy 
        entitled ``Transportation Energy Date Book: Edition 25,'' only 
        740 refueling sites providing E-85 or biodiesel existed in the 
        United States in 2005, equivalent to less than 1 percent of 
        total United States refueling stations; and
            (3) as the number of flexible-fuel vehicles on roads in the 
        United States increases, an increase in the availability of 
        alternative refueling infrastructure must occur in order to 
        enable the displacement of petroleum consumption.
    (b) Goal.--Congress declares that it is the goal of the United 
States to increase the accessibility of alternative fuels to retail 
consumers, and to ensure that at least 10 percent of motor vehicle 
refueling stations provide alternative fuels, by calendar year 2015.
    (c) Infrastructure Pilot Program for Alternative Fuels.--
            (1) In general.--The Secretary of Energy, in consultation 
        with the Secretary of Transportation and the Administrator of 
        the Environmental Protection Agency (referred to in this 
        subsection as the ``Secretary''), shall establish a competitive 
        grant pilot program (referred to in this subsection as the 
        ``pilot program''), to be administered through the Clean Cities 
        Program of the Department of Energy, to provide not more than 
        10 geographically-dispersed project grants to State 
        governments, local governments, metropolitan transportation 
        authorities, or partnerships of those entities to carry out 1 
        or more projects for the purposes described in paragraph (2).
            (2) Grant purposes.--A grant under this subsection shall be 
        used for the establishment of refueling infrastructure 
        corridors for alternative fuels along the National Highway 
        System, including--
                    (A) installation of infrastructure and equipment 
                necessary to ensure adequate distribution of qualified 
                alternative fuels within the corridor;
                    (B) installation of infrastructure and equipment 
                necessary to directly support vehicles powered by 
                qualified alternative fuels; and
                    (C) operation and maintenance of infrastructure and 
                equipment installed as part of a project funded by the 
                grant.
            (3) Applications.--
                    (A) Requirements.--
                            (i) In general.--Subject to clause (ii), 
                        not later than 90 days after the date of 
                        enactment of this Act, the Secretary shall 
                        issue requirements for use in applying for 
                        grants under the pilot program.
                            (ii) Minimum requirements.--At a minimum, 
                        the Secretary shall require that an application 
                        for a grant under this subsection--
                                    (I) be submitted by--
                                            (aa) the head of a State or 
                                        local government or a 
                                        metropolitan transportation 
                                        authority, or any combination 
                                        of those entities; and
                                            (bb) a registered 
                                        participant in the Clean Cities 
                                        Program of the Department of 
                                        Energy; and
                                    (II) include--
                                            (aa) a description of the 
                                        project proposed in the 
                                        application, including the ways 
                                        in which the project meets the 
                                        requirements of this 
                                        subsection;
                                            (bb) an estimate of the 
                                        degree of use of the project, 
                                        including the estimated size of 
                                        fleet of alternative fueled 
                                        vehicles available within the 
                                        geographic region of the 
                                        corridor;
                                            (cc) an estimate of the 
                                        potential petroleum displaced 
                                        and air pollution emissions 
                                        reduced as a result of the 
                                        project, and a plan to collect 
                                        and disseminate petroleum 
                                        displacement and environmental 
                                        data relating to the project to 
                                        be funded under the grant, over 
                                        the expected life of the 
                                        project;
                                            (dd) a description of the 
                                        means by which the project will 
                                        be sustainable without Federal 
                                        assistance after the completion 
                                        of the term of the grant;
                                            (ee) a complete description 
                                        of the costs of the project, 
                                        including acquisition, 
                                        construction, operation, and 
                                        maintenance costs over the 
                                        expected life of the project;
                                            (ff) a description of which 
                                        costs of the project will be 
                                        supported by Federal assistance 
                                        under this subsection; and
                                            (gg) documentation to the 
                                        satisfaction of the Secretary 
                                        that diesel fuel containing 
                                        sulfur at not more than 15 
                                        parts per million is available 
                                        for carrying out the project, 
                                        and a commitment by the 
                                        applicant to use that fuel in 
                                        carrying out the project.
                    (B) Partners.--An applicant under subparagraph (A) 
                may carry out a project under the pilot program in 
                partnership with public and private entities.
            (4) Selection criteria.--In evaluating applications under 
        the pilot program, the Secretary shall--
                    (A) consider the experience of each applicant with 
                previous, similar projects; and
                    (B) give priority consideration to applications 
                that--
                            (i) are most likely to maximize 
                        displacement of petroleum consumption and 
                        environmental protection;
                            (ii) demonstrate the greatest commitment on 
                        the part of the applicant to ensure funding for 
                        the proposed project and the greatest 
                        likelihood that the project will be maintained 
                        or expanded after Federal assistance under this 
                        subsection is completed;
                            (iii) represent a partnership of public and 
                        private entities; and
                            (iv) exceed the minimum requirements of 
                        paragraph (3)(A)(ii).
            (5) Pilot project requirements.--
                    (A) Maximum amount.--The Secretary shall provide 
                not more than $20,000,000 in Federal assistance under 
                the pilot program to any applicant.
                    (B) Cost sharing.--The non-Federal share of the 
                cost of any activity relating to qualified alternative 
                fuel infrastructure development carried out using funds 
                from a grant under this subsection shall be not less 
                than 20 percent.
                    (C) Maximum period of grants.--The Secretary shall 
                not provide funds to any applicant under the pilot 
                program for more than 2 years.
                    (D) Deployment and distribution.--The Secretary 
                shall seek, to the maximum extent practicable, to 
                ensure a broad geographic distribution of project sites 
                funded by grants under this subsection.
                    (E) Transfer of information and knowledge.--The 
                Secretary shall establish mechanisms to ensure that the 
                information and knowledge gained by participants in the 
                pilot program are transferred among the pilot program 
                participants and to other interested parties, including 
                other applicants that submitted applications.
            (6) Schedule.--
                    (A) Initial grants.--
                            (i) In general.--Not later than 90 days 
                        after the date of enactment of this Act, the 
                        Secretary shall publish in the Federal 
                        Register, Commerce Business Daily, and such 
                        other publications as the Secretary considers 
                        to be appropriate, a notice and request for 
                        applications to carry out projects under the 
                        pilot program.
                            (ii) Deadline.--An application described in 
                        clause (i) shall be submitted to the Secretary 
                        by not later than 180 days after the date of 
                        publication of the notice under that clause.
                            (iii) Initial selection.--Not later than 90 
                        days after the date by which applications for 
                        grants are due under clause (ii), the Secretary 
                        shall select by competitive, peer-reviewed 
                        proposal up to 5 applications for projects to 
                        be awarded a grant under the pilot program.
                    (B) Additional grants.--
                            (i) In general.--Not later than 2 years 
                        after the date of enactment of this Act, the 
                        Secretary shall publish in the Federal 
                        Register, Commerce Business Daily, and such 
                        other publications as the Secretary considers 
                        to be appropriate, a notice and request for 
                        additional applications to carry out projects 
                        under the pilot program that incorporate the 
                        information and knowledge obtained through the 
                        implementation of the first round of projects 
                        authorized under the pilot program.
                            (ii) Deadline.--An application described in 
                        clause (i) shall be submitted to the Secretary 
                        by not later than 180 days after the date of 
                        publication of the notice under that clause.
                            (iii) Initial selection.--Not later than 90 
                        days after the date by which applications for 
                        grants are due under clause (ii), the Secretary 
                        shall select by competitive, peer-reviewed 
                        proposal such additional applications for 
                        projects to be awarded a grant under the pilot 
                        program as the Secretary determines to be 
                        appropriate.
            (7) Reports to congress.--
                    (A) Initial report.--Not later than 60 days after 
                the date on which grants are awarded under this 
                subsection, the Secretary shall submit to Congress a 
                report containing--
                            (i) an identification of the grant 
                        recipients and a description of the projects to 
                        be funded under the pilot program;
                            (ii) an identification of other applicants 
                        that submitted applications for the pilot 
                        program but to which funding was not provided; 
                        and
                            (iii) a description of the mechanisms used 
                        by the Secretary to ensure that the information 
                        and knowledge gained by participants in the 
                        pilot program are transferred among the pilot 
                        program participants and to other interested 
                        parties, including other applicants that 
                        submitted applications.
                    (B) Evaluation.--Not later than 2 years after the 
                date of enactment of this Act, and annually thereafter 
                until the termination of the pilot program, the 
                Secretary shall submit to Congress a report containing 
                an evaluation of the effectiveness of the pilot 
                program, including an assessment of the petroleum 
                displacement and benefits to the environment derived 
                from the projects included in the pilot program.
            (8) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection $200,000,000, to remain available until expended.

SEC. 306. INCREASING CONSUMER AWARENESS OF FLEXIBLE FUEL AUTOMOBILES.

    Section 32908 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(g) Increasing Consumer Awareness of Flexible Fuel Automobiles.--
            ``(1) In general.--The Secretary of Transportation shall 
        prescribe regulations that require the manufacturer of 
        automobiles distributed in interstate commerce for sale in the 
        United States--
                    ``(A) to prominently display a permanent badge or 
                emblem on the quarter panel or tailgate of each such 
                automobile that indicates such automobile is capable of 
                operating on alternative fuel; and
                    ``(B) to include information in the owner's manual 
                of each such automobile information that describes--
                            ``(i) the capability of the automobile to 
                        operate using alternative fuel; and
                            ``(ii) the benefits of using alternative 
                        fuel, including the renewable nature, the 
                        increased fuel efficiency, and the 
                        environmental benefits of using alternative 
                        fuel.
            ``(2) Collaboration.--The Secretary of Transportation shall 
        collaborate with automobile retailers to develop voluntary 
        methods for providing prospective purchasers of automobiles 
        with information regarding the benefits of using alternative 
        fuel in automobiles, including--
                    ``(A) the renewable nature of alternative fuel; and
                    ``(B) the environmental benefits of using 
                alternative fuel.''.

SEC. 307. MINIMUM QUANTITY OF RENEWABLE FUEL DERIVED FROM CELLULOSIC 
              BIOMASS.

    Section 211(o)(2)(B) of the Clean Air Act (42 U.S.C. 7545(o)(2)(B)) 
is amended by striking clause (iii) and inserting the following:
                            ``(iii) Minimum quantity derived from 
                        cellulosic biomass.--The applicable volume 
                        referred to in clause (ii) shall contain a 
                        minimum of--
                                    ``(I) for each of calendar years 
                                2010 through 2012, 75,000,000 gallons 
                                that are derived from cellulosic 
                                biomass; and
                                    ``(II) for calendar year 2013 and 
                                each calendar year thereafter, 
                                250,000,000 gallons that are derived 
                                from cellulosic biomass.''.

SEC. 308. MINIMUM QUANTITY OF RENEWABLE FUEL DERIVED FROM SUGAR.

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

SEC. 309. BIOENERGY RESEARCH AND DEVELOPMENT.

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

SEC. 310. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

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

SEC. 311. LOW-INTEREST LOAN AND GRANT PROGRAM FOR RETAIL DELIVERY OF E-
              85 FUEL.

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

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

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

SEC. 312. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.

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

          TITLE IV--NATIONWIDE ENERGY SECURITY MEDIA CAMPAIGN

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

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