CLEANUP Act

To deny corporate average fuel economy credits obtained through a violation of law, establish an Air Quality Restoration Trust Fund within the Department of the Treasury, and for other purposes. 1. Short title This Act may be cited as the Compensating Losses to the Environment from Automobiles with Noxious Undisclosed Pollution Act of 2016 CLEANUP Act 2. Definitions In this Act: (1) Administrator The term Administrator (2) Electric drive vehicle The term electric drive vehicle (A) (i) is— (I) a light-duty vehicle (as defined in section 86.1803–01 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this Act)) that draws motive power from a battery with a capacity of at least 4 kilowatt-hours; or (II) a heavy-duty vehicle (as defined in section 86.1803–01 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this Act)) with a gross vehicle weight rating— (aa) greater than 8,500 pounds and less than 14,000 pounds that draws motive power from a battery with a capacity of at least 10 kilowatt-hours; (bb) greater than 14,000 pounds but less than 33,000 pounds that draws motive power from a battery with a capacity of at least 15 kilowatt-hours; or (cc) greater than 33,000 pounds that draws motive power from a battery with a capacity of at least 20 kilowatt-hours; and (ii) can be recharged from an external source of electricity for motive power; or (B) is a motor vehicle (as defined in section 216 of the Clean Air Act ( 42 U.S.C. 7550 42 U.S.C. 16152 (3) Eligible applicant The term eligible applicant (A) a State; (B) an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act 25 U.S.C. 450b (C) a unit of local government; or (D) a group composed of not fewer than 2— (i) States; (ii) Indian tribes; or (iii) units of local government. (4) Qualified electric drive vehicle infrastructure (A) In general The term qualified electric drive vehicle infrastructure (i) supports the electric refueling needs of electric drive vehicles; and (ii) serves smart grid functions (as defined in section 1306(d) the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17386 (B) Inclusions The term qualified electric drive vehicle infrastructure (i) a street parking location; (ii) a parking garage; (iii) a parking lot; (iv) a home; (v) a gas station; and (vi) a highway rest stop. (5) Secretary The term Secretary 3. Average fuel economy credits obtained by reason of violation of law (a) Denial of credits Section 32903 of title 49, United States Code, is amended by adding at the end the following: (i) Denial of credits obtained by reason of violation of law If the Secretary determines that a manufacturer has obtained credits under this section by reason of a practice that violates this title or title II of the Clean Air Act ( 42 U.S.C. 7521 et seq. . (b) Additional civil penalty Section 32912 of title 49, United States Code, is amended— (1) in subsection (c)(1)— (A) in subparagraph (A), by striking of this section or for each credit to be used in calculating a civil penalty under subsection (f) (B) in subparagraph (B), by inserting or each credit, as the case may be (2) by adding at the end the following: (f) Civil penalty with respect to average fuel economy credits obtained by reason of violation of law In addition to any other penalty under this title and except as provided under subsection (c), a manufacturer that obtains credits under section 32903 by reason of a practice that violates this title or title II of the Clean Air Act ( 42 U.S.C. 7521 et seq. . 4. Air Quality Restoration Trust Fund (a) Establishment There is established in the Treasury of the United States a trust fund to be known as the Air Quality Restoration Trust Fund Trust Fund (1) such amounts as are deposited in the Trust Fund under subsection (b); and (2) any interest on, and proceeds from, any investment made under subsection (d). (b) Transfers The Secretary shall deposit in the Trust Fund an amount equal to all administrative and civil penalties or other payments paid to the Federal Government after the date of enactment of this Act in connection with any violation or alleged violation of title II of the Clean Air Act ( 42 U.S.C. 7521 et seq. (c) Availability Amounts in the Trust Fund shall— (1) be available for expenditure to the extent and in the amounts provided in advance by appropriation Acts solely for making expenditures under subsection (f); and (2) remain available until expended, without fiscal year limitation. (d) Investment Amounts in the Trust Fund shall be invested in accordance with section 9702 of title 31, United States Code. (e) Administration Not later than 180 days after the date of enactment of this Act, after providing notice and an opportunity for public comment, the Secretary, in consultation with the Administrator and the heads of any other relevant Federal agency, shall establish such procedures as the Secretary determines to be necessary to deposit amounts in, and expend amounts from, the Trust Fund pursuant to this section, including— (1) procedures to assess whether a project carried out under subsection (f) achieves compliance with applicable requirements, including procedures by which the Secretary may determine whether an expenditure pursuant to the project achieves compliance; (2) auditing requirements to ensure that amounts in the Trust Fund are expended as intended; and (3) procedures for identification and allocation of funds available to the Secretary under other provisions of law that may be necessary to pay the administrative expenses directly attributable to the management of the Trust Fund. (f) Use of funds Amounts from the Trust Fund shall be available solely for making grants to eligible applicants to support projects that— (1) increase qualified electric drive vehicle infrastructure; (2) retrofit school buses or heavy-duty fleets to reduce air emissions significantly; (3) purchase hybrid or zero emissions school buses or heavy-duty vehicles; (4) purchase electric drive vehicles for municipal fleets; (5) provide public health grants to help track, treat, and reduce the number of air emissions-related illnesses, such as asthma, cardiovascular disease, and lung cancer; or (6) provide grants for projects to improve air quality in low-income communities.

Summary: Compensating Losses to the Environment from Automobiles with Noxious Undisclosed Pollution Act of 2016 or the CLEANUP Act This bill directs the Department of the Treasury to deny Corporate Average Fuel Economy (CAFE)credits to any automobile manufacturer that circumvents emission control requirements to obtain CAFE credits unlawfully. Manufacturers earn CAFE credits when the average fuel economy for a given annualfleet of vehicles exceeds the minimalrequiredCAFE standards. Additionally, the National Highway Traffic Safety Administration(NHTSA)is authorized to collect additional penalties from manufacturers that obtain CAFE credits unlawfully. The bill also establishes an Air Quality RestorationTrust Fund funded with deposits from penalties NHTSA collects from manufacturers under this bill. The fund must be used solely forproviding grants to support specific programs that restore and improve air quality.