II 

110TH CONGRESS 

1ST SESSION S. 1118 

To improve the energy security of the United States by raising average 

fuel economy standards, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 16, 2007 

Mr. DORGAN (for himself and Mr. CRAIG) introduced the following bill; which 

was read twice and referred to the Committee on Commerce, Science, and 

Transportation 

A BILL 

To improve the energy security of the United States by 

raising average fuel economy standards, and for other 

purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fuel Efficiency Energy 

5 Act of 2007’’. 

6 SEC. 2. DEFINITIONS. 

7 (a) AUTOMOBILE.—Section 32901(a)(3) of title 49, 

8 United States Code, is amended— 

9 (1) by striking ‘‘4-wheeled’’; and 


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1 (2) by striking ‘‘, and rated at—’’ and all that 

2 follows and inserting a period. 

3 (b) MEDIUM-DUTY TRUCK.—Section 32901(a) of 

4 such title is amended— 

5 (1) by redesignating paragraphs (14), (15), and 

6 (16) as paragraphs (15), (16), and (17), respec7 tively; and 

8 (2) by inserting after paragraph (13) the fol9 lowing: 

10 ‘‘(14) ‘medium-duty truck’ means a truck (as 

11 defined in section 30127) with a gross vehicle weight 

12 between 10,000 and 26,000 pounds.’’. 

13 (c) PASSENGER AUTOMOBILE.—Section 

14 32901(a)(17) of such title, as redesignated by subsection 

15 (b)(1), is amended by striking ‘‘decides by regulation— 

16 ’’ and all that follows through the period and inserting 

17 ‘‘determines by regulation, to have a significant feature 

18 (except 4-wheel drive) designed for off-highway oper19 ation.’’. 

20 (d) FUEL ECONOMY INFORMATION.—Section 

21 32908(a) of such title is amended— 

22 (1) in the subsection heading, by striking 

23 ‘‘DEFINITIONS’’ and inserting ‘‘DEFINITION’’; and 

24 (2) by striking ‘‘section—’’ and all that follows 

25 through ‘‘(2)’’ and inserting ‘‘section, the term’’. 


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1 SEC. 3. ANNUAL INCREASE IN AVERAGE FUEL ECONOMY 

2 STANDARDS. 

3 (a) FUEL EFFICIENCY STANDARDS.— 

4 (1) IN GENERAL.—Section 32902 of title 49, 

5 United States Code, is amended by striking sub6 sections (a) through (c) and inserting the following: 

7 ‘‘(a) IN GENERAL.—Not later than 18 months before 

8 the beginning of each model year beginning with model 

9 year 2012, the Secretary of Transportation, shall pre10 scribe, by regulation, average fuel economy standards for 

11 automobiles manufactured by a manufacturer for that 

12 model year in accordance with subsection (b). The Sec13 retary of Transportation shall prescribe separate average 

14 fuel economy standards for different classes of auto15 mobiles. The Secretary shall establish average fuel econ16 omy standards for medium-duty trucks that are consistent 

17 with the projected benefits of hybridization. 

18 ‘‘(b) ANNUAL INCREASES IN FUEL ECONOMY STAND19 ARDS.— 

20 ‘‘(1) FOR MODEL YEAR 2012.—For model year 

21 2012, the average fuel economy standard for each 

22 class of automobiles shall be the average combined 

23 highway and city miles per gallon performance of all 

24 automobiles within that class of automobiles in 2011 

(rounded to the nearest 1 25 ⁄10 mile per gallon). 


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1 ‘‘(2) FOR MODEL YEARS AFTER MODEL YEAR

2 2012.—For each model year beginning with model 

3 year 2013 and ending with model year 2030, the av4 erage fuel economy attained by the fleet of auto5 mobiles manufactured or sold in the United States 

6 shall be at least 4 percent greater than the average 

7 fuel economy standard for the fleet in the previous 

model year (rounded to the nearest 1 8 ⁄10 mile per gal9 lon). 

10 ‘‘(c) AMENDING FUEL ECONOMY STANDARDS.— 

11 ‘‘(1) IN GENERAL.—Notwithstanding sub12 sections (a) and (b), the Secretary of Transportation 

13 may prescribe an average fuel economy standard for 

14 a class of automobiles in a model year that is lower 

15 than the standard required under subsection (b) if 

16 the Secretary of Transportation, in consultation with 

17 the National Academy of Sciences, determines that 

18 the average fuel economy standard prescribed in ac19 cordance with subsections (a) and (b) for that class 

20 of automobiles in that model year— 

21 ‘‘(A) is not technologically achievable; 

22 ‘‘(B) cannot be achieved without materially 

23 reducing the overall safety of automobiles man24 ufactured or sold in the United States and no 


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1 offsetting safety improvements can be prac2 ticably implemented for that model year; or 

3 ‘‘(C) is shown not to be cost effective. 

4 ‘‘(2) MAXIMUM STANDARD.—Any average fuel 

5 economy standard prescribed for a class of auto6 mobiles in a model year under paragraph (1) shall 

7 be the maximum standard that— 

8 ‘‘(A) is technologically achievable; 

9 ‘‘(B) can be achieved without materially 

10 reducing the overall safety of automobiles man11 ufactured or sold in the United States; and 

12 ‘‘(C) is cost effective. 

13 ‘‘(3) CONSIDERATIONS IN DETERMINATION OF

14 COST EFFECTIVENESS.—In determining cost effec15 tiveness under paragraph (1)(C), the Secretary of 

16 Transportation shall take into account the total 

17 value to the United States of reduced petroleum use, 

18 including the value of reducing external costs of pe19 troleum use, using a value for such costs equal to 50 

20 percent of the value of 1 gallon of gasoline saved or 

21 the amount determined in an analysis of the external 

22 costs of petroleum use that considers— 

23 ‘‘(A) value to consumers; 

24 ‘‘(B) economic security; 

25 ‘‘(C) national security; 


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1 ‘‘(D) foreign policy; 

2 ‘‘(E) the impact of oil use— 

3 ‘‘(i) on sustained cartel rents paid to 

4 foreign suppliers; 

5 ‘‘(ii) on long-run potential gross do6 mestic product due to higher normal-mar7 ket oil price levels, including inflationary 

8 impacts; 

9 ‘‘(iii) on import costs, wealth trans10 fers, and potential gross domestic product 

11 due to increased trade imbalances; 

12 ‘‘(iv) on import costs and wealth 

13 transfers during oil shocks; 

14 ‘‘(v) on macroeconomic dislocation 

15 and adjustment costs during oil shocks; 

16 ‘‘(vi) on the cost of existing energy se17 curity policies, including the management 

18 of the Strategic Petroleum Reserve; 

19 ‘‘(vii) on the timing and severity of 

20 the oil peaking problem; 

21 ‘‘(viii) on the risk, probability, size, 

22 and duration of oil supply disruptions; 

23 ‘‘(ix) on the strategic behavior of the 

24 Organization of the Petroleum Exporting 

25 Countries and long-run oil pricing; 


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1 ‘‘(x) on the short term elasticity of en2 ergy demand and the magnitude of price 

3 increases resulting from a supply shock; 

4 ‘‘(xi) on oil imports, military costs, 

5 and related security costs, including intel6 ligence, homeland security, sea lane secu7 rity and infrastructure, and other military 

8 activities; 

9 ‘‘(xii) on oil imports, diplomatic and 

10 foreign policy flexibility, and connections to 

11 geopolitical strife, terrorism, and inter12 national development activities; 

13 ‘‘(xiii) all relevant environmental haz14 ards under the jurisdiction of the Environ15 mental Protection Agency; and 

16 ‘‘(xiv) on well-to-wheels urban and 

17 local air emissions of pollutants and their 

18 uninternalized costs; 

19 ‘‘(F) the impact of the oil or energy inten20 sity of the United States economy on the sensi21 tivity of the economy to oil price changes, in22 cluding the magnitude of gross domestic prod23 uct losses in response to short term price 

24 shocks or long term price increases; 


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1 ‘‘(G) the impact of United States pay2 ments for oil imports on political, economic, and 

3 military developments in unstable or unfriendly 

4 oil-exporting countries; 

5 ‘‘(H) the uninternalized costs of pipeline 

6 and storage oil seepage, and for risk of oil spills 

7 from production, handling, and transport, and 

8 related landscape damage; and 

9 ‘‘(I) additional relevant factors, as deter10 mined by the Secretary. 

11 ‘‘(4) MINIMUM VALUATION.—When considering 

12 the value to consumers of a gallon of gasoline saved, 

13 the Secretary of Transportation may not use a value 

14 less than the greatest of— 

15 ‘‘(A) the average national cost of a gallon 

16 of gasoline sold in the United States during the 

17 12-month period ending on the date on which 

18 the new fuel economy standard is proposed; 

19 ‘‘(B) the most recent weekly estimate by 

20 the Energy Information Administration of the 

21 Department of Energy of the average national 

22 cost of a gallon of gasoline (all grades) sold in 

23 the United States; and 

24 ‘‘(C) the gasoline prices projected by the 

25 Energy Information Administration for the 20- 


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1 year period beginning in the year following the 

2 year in which the standards are established.’’. 

3 (2) CONFORMING AMENDMENTS.—Title 49, 

4 United States Code, is amended— 

5 (A) in section 32902— 

6 (i) in subsection (d) by striking ‘‘sub7 section (b) or (c) of this section’’ and in8 serting ‘‘subsection (a), (b), or (c)’’; 

9 (ii) by striking subsection (f); 

10 (iii) in subsection (g)— 

11 (I) by striking ‘‘subsection (a) or 

12 (d)’’ and inserting ‘‘this section’’; and 

13 (II) by striking ‘‘(and submit the 

14 amendment to Congress when re15 quired under subsection (c)(2) of this 

16 section)’’; and 

17 (iv) in subsection (h) by striking 

18 ‘‘subsections (c), (f), and (g) of this sec19 tion’’ and inserting ‘‘subsections (c) and 

20 (g)’’; 

21 (B) in section 32903— 

22 (i) by striking ‘‘section 32902(b)–(d) 

23 of this title’’ each place it occurs and in24 serting ‘‘subsections (a) through (d) of sec25 tion 32902’’; and 


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1 (ii) in subsection (e), by striking ‘‘sec2 tion 32902(a) of this title’’ and inserting 

3 ‘‘subsections (a) through (d) of section 

4 32902’’; and 

5 (C) in section 32904— 

6 (i) in subsection (a)— 

7 (I) by striking ‘‘subject to—’’ 

8 and all that follows through ‘‘(B) sec9 tion 32902(a)–(d) of this title’’ and 

10 inserting ‘‘subject to subsections (a) 

11 through (d) of section 32902’’; and 

12 (II) by redesignating clauses (i) 

13 and (ii) as subparagraphs (A) and 

14 (B), respectively. 

15 (b) REPEAL OF CREDIT FOR DUAL FUELED AUTO16 MOBILES.— 

17 (1) IN GENERAL.—Section 32905 of title 49, 

18 United States Code, is amended— 

19 (A) by amending subsection (b) to read as 

20 follows: 

21 ‘‘(b) DUAL FUELED AUTOMOBILES.—The Adminis22 trator of the Environmental Protection Agency shall meas23 ure the fuel economy for any model of dual fueled auto24 mobile manufactured in model year 2012 and any model 

25 year thereafter, in accordance with section 32904.’’; and 


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1 (B) by amending subsection (d) to read as 

2 follows: 

3 ‘‘(d) GASEOUS FUEL DUAL FUELED AUTO4 MOBILES.—The Administrator of the Environmental Pro5 tection Agency shall measure the fuel economy for any 

6 model of gaseous fuel dual fueled automobile manufac7 tured in model year 2012 and any model year thereafter, 

8 in accordance with section 32904.’’. 

9 (2) CONFORMING AMENDMENTS.—Section 

10 32905 of such title is further amended— 

11 (A) by striking subsection (f); and 

12 (B) redesignating subsections (g) and (h) 

13 as subsections (f) and (g), respectively. 

14 SEC. 4. REQUIREMENT TO INCREASE PERCENTAGE OF 

15 DUAL FUELED AUTOMOBILES. 

16 Section 32902 of title 49, United States Code, as 

17 amended by section 3, is further amended by inserting 

18 after subsection (e) the following: 

19 ‘‘(f) REQUIREMENT FOR ANNUAL INCREASE IN DUEL

20 FUELED AUTOMOBILES.—Each manufacturer shall en21 sure that the percentage of automobiles manufactured by 

22 such manufacturer in each of model years 2012 through 

23 2022 that are dual fueled automobiles is not less than 10 

24 percent greater than the percentage of automobiles manuVerDate Aug 31 2005 19:39 Apr 17, 2007 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1118.IS S1118

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1 factured by such manufacturer in the previous model year 

2 that are dual fueled automobiles.’’. 

3 SEC. 5. EFFECTIVE DATE. 

4 The amendments made by this Act shall— 

5 (1) take effect on January 1, 2010; and 

6 (2) apply to automobiles manufactured for 

7 model year 2012 and for each subsequent model 

8 year. 

Æ 


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