I 

110TH CONGRESS 

1ST SESSION H. R. 1506 

To increase fuel economy standards for automobiles, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 13, 2007 

Mr. MARKEY (for himself, Mr. PLATTS, Mr. GEORGE MILLER of California, 

Mr. KIRK, Mr. RANGEL, Mrs. BONO, Mr. FRANK of Massachusetts, Mr. 

WOLF, Mr. LANTOS, Mr. YOUNG of Florida, Mr. LEWIS of Georgia, Mr. 

KING of New York, Ms. ESHOO, Mr. TOM DAVIS of Virginia, Mr. 

SESTAK, Mr. GILCHREST, Ms. SOLIS, Mr. CASTLE, Ms. DEGETTE, Mr. 

GERLACH, Mr. OLVER, Mr. SHAYS, Mr. WYNN, Mr. RAMSTAD, Mrs. 

CAPPS, Mr. LOBIONDO, Mr. WEINER, Mr. REICHERT, Ms. HOOLEY, Mr. 

SAXTON, Mr. INSLEE, Mr. SMITH of New Jersey, Mr. BUTTERFIELD, Mr. 

LATOURETTE, Mr. HODES, Mr. BARTLETT of Maryland, Ms. SHEA-PORTER, Mr. KUHL of New York, Mr. PETRI, Mr. GRIJALVA, Mr. VAN

HOLLEN, and Mr. PALLONE) introduced the following bill; which was referred to the Committee on Energy and Commerce 

A BILL 

To increase fuel economy standards for automobiles, 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 Economy Reform 

5 Act’’. 


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1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) United States dependence on oil imports im4 poses tremendous burdens on America’s economy, 

5 foreign policy, and military. 

6 (2) According to the Energy Information Ad7 ministration, 60 percent of the crude oil and petro8 leum products consumed in the United States be9 tween April 2005 and March 2006 (12,400,000 bar10 rels per day) was imported. At a cost of $60 per 

11 barrel of oil, Americans remit an average of 

12 $500,000 per minute to other countries for petro13 leum, money that could have been spent creating do14 mestic jobs and strengthening our Nation’s economy. 

15 (3) A significant percentage of these petroleum 

16 imports originate in countries controlled by regimes 

17 that are unstable or openly hostile to the interests 

18 of the United States. Dependence on production 

19 from these countries contributes to the volatility of 

20 domestic and global markets and the ‘‘risk pre21 mium’’ paid by American consumers. 

22 (4) The Energy Information Administration 

23 projects that the total petroleum demand in the 

24 United States will increase by 23 percent between 

25 2006 and 2026, while domestic crude production is 

26 expected to decrease by 11 percent, resulting in an 


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1 anticipated 28 percent increase in petroleum im2 ports. Absent significant action, our Nation will be3 come more vulnerable to oil price increases, more de4 pendent upon foreign oil, and less able to pursue our 

5 national interests. 

6 (5) It is technically feasible to achieve oil sav7 ings of more than 2,500,000 barrels of oil per day 

8 by 2017 and 7,000,000 barrels of oil per day by 

9 2026. This goal can be achieved by improving the 

10 gasoline efficiency of vehicles, replacing oil with cel11 lulosic biofuels, and encouraging the use of public 

12 transit and other alternative transportation options. 

13 (6) Two-thirds of all domestic oil use occurs in 

14 the transportation sector, which is 97 percent reliant 

15 upon petroleum-based fuels. Passenger vehicles, in16 cluding light trucks under 10,000 pounds gross vehi17 cle weight, represent over 60 percent of the oil used 

18 in the transportation sector. 

19 (7) Corporate average fuel economy of all cars 

20 and trucks improved by 70 percent between 1975 

21 and 1987. Between 1987 and 2006, fuel economy 

22 improvements have stagnated and are much worse 

23 than the vehicle fuel economy in many developed 

24 countries and some developing countries, including 

25 China. 


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1 (8) Significant improvements in engine tech2 nology occurred between 1986 and 2006. These ad3 vances have been used to make vehicles larger and 

4 more powerful, rather than to increase fuel economy. 

5 Between 1985 and 2005, average vehicle horsepower 

6 nearly doubled, average vehicle weight increased by 

7 25 percent, and acceleration times for new vehicles 

8 improved by 25 percent. During the same time pe9 riod, average vehicle fuel economy decreased by 2 

10 percent. 

11 (9) According to a 2002 fuel economy report by 

12 the National Academies of Science, improvements in 

13 automotive technology offer the opportunity to sig14 nificantly increase fuel economy while maintaining 

15 vehicle size and performance and improving safety. 

16 The fleet analyzed by the Academies would be able 

17 to improve its fuel economy by 10–15 miles per gal18 lon within 10–15 years using technologies that were 

19 commercially available in 2002. 

20 (10) The 2002 fuel economy study clearly 

21 states that fuel economy can be increased without 

22 negatively impacting the safety of America’s cars 

23 and trucks. Some new technologies can increase both 

24 safety and fuel economy (such as high strength ma25 terials, unibody design, lower bumpers). Design 


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1 changes related to fuel economy also present oppor2 tunities to reduce the incompatibility of tall, stiff, 

3 heavy vehicles with the majority of vehicles on the 

4 road. 

5 (11) A 2004 report by David Greene of Oak 

6 Ridge National Labs entitled, ‘‘The Effect of Fuel 

7 Economy on Automobile Safety: A Reexamination’’, 

8 demonstrates that fuel economy is not linked with 

9 increased fatalities. The report notes that, ‘‘higher 

10 mpg is significantly correlated with fewer fatalities’’. 

11 In other words, a thorough analysis of data from 

12 1966 to 2002 indicates that vehicle manufacturers 

13 can simultaneously increase fuel economy and im14 prove vehicle safety. 

15 (12) A 2002 study entitled, ‘‘An Analysis of 

16 Traffic Deaths by Vehicle Type and Model’’, by 

17 Marc Ross and Tom Wenzel from the University of 

18 Michigan, demonstrates that large vehicles do not 

19 have lower fatality rates than smaller vehicles. Ross 

20 and Wenzel analyzed Federal accident data between 

21 1995 and 1999 and showed that the Honda Civic 

22 and Volkswagen Jetta both had lower fatality rates 

23 for the driver than the Ford Explorer, the Dodge 

24 Ram, or the Toyota 4Runner. Even the largest vehi25 cles, such as the Chevrolet Tahoe and Suburban, 


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1 had fatality rates that were no better than the Jetta 

2 or the Nissan Maxima. In other words, a well-de3 signed compact car can be safer than a sport-utility 

4 vehicle or a pickup truck. Design, rather than 

5 weight, is the key to vehicle safety. 

6 (13) Significant change must occur to strength7 en the economic competitiveness of the domestic 

8 auto industry. According to a recent study by the 

9 University of Michigan, a sustained gasoline price of 

10 $2.86 per gallon would lead Detroit’s Big 3 auto11 makers’ profits to shrink by $7,000,000,000 as they 

12 absorb 75 percent of the lost vehicle sales. This 

13 would put nearly 300,000 Americans out of work. 

14 SEC. 3. DEFINITION OF AUTOMOBILE. 

15 (a) IN GENERAL.—Section 32901(a)(3) of title 49, 

16 United States Code, is amended by striking ‘‘rated 

17 at—’’ and all that follows through the period at the end 

18 and inserting ‘‘rated at not more than 10,000 pounds 

19 gross vehicle weight.’’. 

20 (b) FUEL ECONOMY INFORMATION.—Section 

21 32908(a) of title 49, United States Code, is amended, by 

22 striking ‘‘section—’’ and all that follows through ‘‘(2)’’ 

23 and inserting ‘‘section, the term’’. 


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

2 this section shall apply to model year 2009 and each sub3 sequent model year. 

4 SEC. 4. AVERAGE FUEL ECONOMY STANDARDS. 

5 (a) STANDARDS.—Section 32902 of title 49, United 

6 States Code, is amended— 

7 (1) in subsection (a)— 

8 (A) in the header, by inserting ‘‘MANUFAC9 TURED BEFORE MODEL YEAR 2012’’ after 

10 ‘‘NON-PASSENGER AUTOMOBILES’’; and 

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

12 ‘‘This subsection shall not apply to automobiles 

13 manufactured after model year 2011.’’; 

14 (2) in subsection (b)— 

15 (A) in the header, by inserting ‘‘MANUFAC16 TURED BEFORE MODEL YEAR 2012’’ after 

17 ‘‘PASSENGER AUTOMOBILES’’; 

18 (B) by inserting ‘‘and before model year 

19 2009’’ after ‘‘1984’’; and 

20 (C) by adding at the end the following: 

21 ‘‘Such standard shall be increased by 4 percent 

22 per year for model years 2009 through 2011 

23 (rounded to the nearest 1/10 mile per gallon)’’; 

24 (3) by amending subsection (c) to read as fol25 lows: 


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1 ‘‘(c) AUTOMOBILES MANUFACTURED AFTER MODEL

2 YEAR 2011.—(1) Not later than 18 months before the be3 ginning of each model year after model year 2011, the 

4 Secretary of Transportation shall prescribe, by regula5 tion— 

6 ‘‘(A) an average fuel economy standard for 

7 automobiles manufactured by a manufacturer in 

8 that model year that is the same for each manufac9 turer; or 

10 ‘‘(B) based on 1 or more vehicle attributes that 

11 relate to fuel economy— 

12 ‘‘(i) separate standards for different class13 es of automobiles; or 

14 ‘‘(ii) standards expressed in the form of a 

15 mathematical function. 

16 Any standards prescribed under subparagraph (B) 

17 shall apply equally to all manufacturers. 

18 ‘‘(2)(A) Except as provided under paragraph (3) and 

19 subsection (d), standards under paragraph (1) shall at20 tain— 

21 ‘‘(i) a projected level of average fuel economy of 

22 at least 27.5 miles per gallon for automobiles manu23 factured by a manufacturer for model year 2012; 

24 and 


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1 ‘‘(ii) a projected level of average fuel economy 

2 of at least 35 miles per gallon for automobiles man3 ufactured by a manufacturer for model year 2018. 

4 ‘‘(B)(i) The projected level of average fuel economy 

5 for automobiles manufactured by a manufacturer for 

6 model year 2013 and each succeeding model year shall be 

7 increased by not less than 4 percent from the level for 

8 the prior model year (rounded to the nearest 1/10 mile 

9 per gallon). 

10 ‘‘(ii)(I) Notwithstanding clause (i), the Secretary of 

11 Transportation may increase the projected level of average 

12 fuel economy for automobiles manufactured by a manufac13 turer by less than 4 percent from the level for the prior 

14 model year for 1 or more model years if the Secretary of 

15 Transportation, in consultation with the Secretary of En16 ergy, determines that— 

17 ‘‘(aa) the minimum increase required under 

18 clause (i) for each model year— 

19 ‘‘(AA) is technologically unachievable; or 

20 ‘‘(BB) is shown, by clear and convincing 

21 evidence, not to be cost effective (as determined 

22 under paragraph (4)); and 

23 ‘‘(bb) an increase of less than the minimum in24 crease required under clause (i) for a model year will 

25 not result in a failure to attain the projected levels 


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1 of average fuel economy required under subpara2 graph (A). 

3 ‘‘(II) If a lower increase is prescribed for a model 

4 year under subclause (I), such increase shall be the max5 imum increase that— 

6 ‘‘(aa) is technologically achievable; and 

7 ‘‘(bb) is cost effective. 

8 ‘‘(C) Notwithstanding subparagraphs (A) and (B), 

9 the fleetwide average fuel economy standard for auto10 mobiles manufactured by a manufacturer in a model year 

11 for that manufacturer’s domestic fleet and for its foreign 

12 fleet as calculated under section 32904 as in effect before 

13 the date of enactment of the Fuel Economy Reform Act 

14 shall not be less than 92 percent of the average fuel econ15 omy projected by the Secretary for the combined domestic 

16 and foreign fleets manufactured by that manufacturer in 

17 that model year. 

18 ‘‘(3)(A) In determining cost effectiveness under para19 graph (2)(B)(ii), the Secretary of Transportation shall 

20 take into account the total value to the Nation of reduced 

21 petroleum use, including the value of reducing external 

22 costs of petroleum use, using— 

23 ‘‘(i) a value for such external costs equal to 50 

24 percent of the value of a gallon of gasoline saved; or 


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1 ‘‘(ii) the amount determined in an analysis of 

2 the external costs of petroleum use that considers— 

3 ‘‘(I) value to consumers; 

4 ‘‘(II) economic security; 

5 ‘‘(III) national security; 

6 ‘‘(IV) foreign policy; 

7 ‘‘(V) the impact of oil use— 

8 ‘‘(aa) on sustained cartel rents paid to 

9 foreign suppliers; 

10 ‘‘(bb) on long-run potential gross do11 mestic product due to higher normal-mar12 ket oil price levels, including inflationary 

13 impacts; 

14 ‘‘(cc) on import costs, wealth trans15 fers, and potential gross domestic product 

16 due to increased trade imbalances; 

17 ‘‘(dd) on import costs and wealth 

18 transfers during oil shocks; 

19 ‘‘(ee) on macroeconomic dislocation 

20 and adjustment costs during oil shocks; 

21 ‘‘(ff) on the cost of existing energy se22 curity policies, including the management 

23 of the Strategic Petroleum Reserve; 

24 ‘‘(gg) on the timing and severity of 

25 the oil peaking problem; 


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1 ‘‘(hh) on the risk, probability, size, 

2 and duration of oil supply disruptions; 

3 ‘‘(ii) on OPEC strategic behavior and 

4 long-run oil pricing; 

5 ‘‘(jj) on the short term elasticity of 

6 energy demand and the magnitude of price 

7 increases resulting from a supply shock; 

8 ‘‘(kk) on oil imports, military costs, 

9 and related security costs, including intel10 ligence, homeland security, sea lane secu11 rity and infrastructure, and other military 

12 activities; 

13 ‘‘(ll) on oil imports, diplomatic and 

14 foreign policy flexibility, and connections to 

15 geopolitical strife, terrorism, and inter16 national development activities; 

17 ‘‘(mm) all relevant environmental haz18 ards under the jurisdiction of the Environ19 mental Protection Agency; and 

20 ‘‘(nn) on well-to-wheels urban and 

21 local air emissions of ‘pollutants’ and their 

22 uninternalized costs; 

23 ‘‘(VI) the impact of the oil or energy inten24 sity of the United States economy on the sensi25 tivity of the economy to oil price changes, inVerDate Aug 31 2005 02:48 Mar 15, 2007 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1506.IH H1506

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1 cluding the magnitude of gross domestic prod2 uct losses in response to short term price 

3 shocks or long term price increases; 

4 ‘‘(VII) the impact of United States pay5 ments for oil imports on political, economic, and 

6 military developments in unstable or unfriendly 

7 oil exporting countries; 

8 ‘‘(VIII) the uninternalized costs of pipeline 

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

10 from production, handling, and transport, and 

11 related landscape damage; and 

12 ‘‘(IX) additional relevant factors, as deter13 mined by the Secretary. 

14 ‘‘(B) When considering the value to consumers of a 

15 gallon of gasoline saved, the Secretary of Transportation 

16 may not use a value less than the greatest of— 

17 ‘‘(i) the average national cost of a gallon of gas18 oline sold in the United States during the 12-month 

19 period ending on the date on which the new fuel 

20 economy standard is proposed; 

21 ‘‘(ii) the most recent weekly estimate by the 

22 Energy Information Administration of the Depart23 ment of Energy of the average national cost of a 

24 gallon of gasoline (all grades) sold in the United 

25 States; or 


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1 ‘‘(iii) the gasoline prices projected by the En2 ergy Information Administration for the 20-year pe3 riod beginning in the year following the year in 

4 which the standards are established. 

5 ‘‘(4) In prescribing standards under this subsection, 

6 the Secretary may prescribe standards for 1 or more 

7 model years. 

8 ‘‘(5)(A) Not later than December 31, 2009, the Sec9 retary of Transportation, the Secretary of Energy, and the 

10 Administrator of the Environmental Protection Agency 

11 shall submit a joint report to Congress on the state of 

12 global automotive efficiency technology development, and 

13 on the accuracy of tests used to measure fuel economy 

14 of automobiles under section 32904(c), utilizing the study 

15 and assessment of the National Academy of Sciences re16 ferred to in subparagraph (B). 

17 ‘‘(B) The Secretary shall enter into appropriate ar18 rangements with the National Academy of Sciences to con19 duct a comprehensive study of the technological opportuni20 ties to enhance fuel economy and an analysis and assess21 ment of the accuracy of fuel economy tests used by the 

22 Administrator of the Environmental Protection Agency to 

23 measure fuel economy for each model under section 

24 32904(c). Such analysis and assessment shall identify any 

25 additional factors or methods that should be included in 


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1 tests to measure fuel economy for each model to more ac2 curately reflect actual fuel economy of automobiles. The 

3 Secretary and the Administrator of the Environmental 

4 Protection Agency shall furnish, at the request of the 

5 Academy, any information which the Academy determines 

6 to be necessary to conduct the study, analysis, and assess7 ment under this subparagraph. 

8 ‘‘(C) The report submitted under subparagraph (A) 

9 shall include— 

10 ‘‘(i) the study of the National Academy of 

11 Sciences referred to in subparagraph (B); and 

12 ‘‘(ii) an assessment by the Secretary of techno13 logical opportunities to enhance fuel economy and 

14 opportunities to increase overall fleet safety. 

15 ‘‘(D) The report submitted under subparagraph (A) 

16 shall identify and examine additional opportunities to re17 form the regulatory structure under this chapter, includ18 ing approaches that seek to merge vehicle and fuel require19 ments into a single system that achieves equal or greater 

20 reduction in petroleum use and environmental benefits. 

21 ‘‘(E) The report submitted under subparagraph (A) 

22 shall— 

23 ‘‘(i) include conclusions reached by the Admin24 istrator of the Environmental Protection Agency, as 


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1 a result of detailed analysis and public comment, on 

2 the accuracy of current fuel economy tests; 

3 ‘‘(ii) identify any additional factors that the Ad4 ministrator determines should be included in tests to 

5 measure fuel economy for each model to more accu6 rately reflect actual fuel economy of automobiles; 

7 and 

8 ‘‘(iii) include a description of options, formu9 lated by the Secretary and the Administrator, to in10 corporate such additional factors in fuel economy 

11 tests in a manner that will not effectively increase 

12 or decrease average fuel economy for any automobile 

13 manufacturer. 

14 ‘‘(F) There is authorized to be appropriated to the 

15 Secretary such amounts as are required to carry out the 

16 study, analysis, and assessment required by subparagraph 

17 (B).’’; and 

18 (4) in subsection (g)(2), by striking ‘‘(and sub19 mit the amendment to Congress when required 

20 under subsection (c)(2) of this section)’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) IN GENERAL.—Chapter 329 of title 49, 

23 United States Code, is amended— 

24 (A) in section 32903— 


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1 (i) by striking ‘‘passenger’’ each place 

2 it appears; 

3 (ii) by striking ‘‘section 32902(b)–(d) 

4 of this title’’ each place it appears and in5 serting ‘‘subsection (c) or (d) of section 

6 32902’’; 

7 (iii) by striking subsection (e); and 

8 (iv) by redesignating subsection (f) as 

9 subsection (e); and 

10 (B) in section 32904(a)— 

11 (i) by striking ‘‘passenger’’ each place 

12 it appears; and 

13 (ii) in paragraph (1), by striking 

14 ‘‘subject to’’ and all that follows through 

15 ‘‘section 32902(b)–(d) of this title’’ and in16 serting ‘‘subsection (c) or (d) of section 

17 32902’’. 

18 (2) EFFECTIVE DATE.—The amendments made 

19 by paragraph (1) shall apply to automobiles manu20 factured after model year 2011. 

21 SEC. 5. AUTOMOBILE SAFETY. 

22 Nothing in this Act shall be construed to limit, con23 strain, supercede, or expand the authority of the Secretary 

24 of Transportation to prescribe motor vehicle safety stand25 ards to reduce traffic accidents and deaths and injuries 


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1 resulting from traffic accidents conferred by chapter 301 

2 of title 49, United States Code. 

Æ 


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