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(2) describes the technologies to be funded under 
the program; 
(3) assesses the feasibility of the technologies de-
scribed in paragraph (2) in meeting the goals de-
scribed in subsection (c); 
(4) identifies applications submitted for the pro-
gram that were not funded; and 
(5) makes recommendations for Federal legisla-
tion to achieve commercialization of the technology 
demonstrated. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this section, to 
remain available until expended— 
(1) $3,000,000 for fiscal year 2005; 
(2) $7,000,000 for fiscal year 2006; 
(3) $10,000,000 for fiscal year 2007; and 
(4) $20,000,000 for fiscal year 2008. 
Subtitle B—Automobile Efficiency 
CHAPTER 1—MAXIMUM AVERAGE FUEL 
ECONOMY 
SEC. 711. REVISED CONSIDERATIONS FOR DECISIONS ON 
MAXIMUM FEASIBLE AVERAGE FUEL ECON-
OMY. 
Section 32902(f) of title 49, United States Code, is 
amended to read as follows:
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‘‘(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM 
FEASIBLE
AVERAGE
FUEL
ECONOMY.—When deciding 
maximum feasible average fuel economy under this section, 
the Secretary of Transportation shall consider the following 
matters: 
‘‘(1) Technological feasibility. 
‘‘(2) Economic practicability. 
‘‘(3) The effect of other motor vehicle standards 
of the Government on fuel economy. 
‘‘(4) The need of the United States to conserve 
energy. 
‘‘(5) The desirability of reducing United States 
dependence on imported oil. 
‘‘(6) The effects of the average fuel economy 
standards on motor vehicle and passenger safety. 
‘‘(7) The effects of increased fuel economy on air 
quality. 
‘‘(8) The adverse effects of average fuel economy 
standards on the relative competitiveness of manufac-
turers. 
‘‘(9) The effects of compliance with average fuel 
economy standards on levels of employment in the 
United States. 
‘‘(10) The cost and lead time necessary for the 
introduction of the necessary new technologies.
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‘‘(11) The potential for advanced technology ve-
hicles, such as hybrid and fuel cell vehicles, to con-
tribute to the achievement of significant reductions in 
fuel consumption. 
‘‘(12) The extent to which the necessity for vehi-
cle manufacturers to incur near-term costs to comply 
with the average fuel economy standards adversely af-
fects the availability of resources for the development 
of advanced technology for the propulsion of motor ve-
hicles. 
‘‘(13) The report of the National Research Coun-
cil that is entitled ‘Effectiveness and Impact of Cor-
porate Average Fuel Economy Standards’, issued in 
January 2002.’’. 
SEC. 712. INCREASED FUEL ECONOMY STANDARDS. 
(a) NEW REGULATIONS REQUIRED.— 
(1) NON-PASSENGER AUTOMOBILES.— 
(A) REQUIREMENT
FOR
NEW
REGULA-
TIONS.—The Secretary of Transportation shall 
issue, under section 32902 of title 49, United 
States Code, new regulations setting forth in-
creased average fuel economy standards for non- 
passenger automobiles. The regulations shall be 
determined on the basis of the maximum feasible 
average fuel economy levels for the non-passenger
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automobiles, taking into consideration the mat-
ters set forth in subsection (f) of such section. 
The new regulations under this paragraph shall 
apply for model years after the 2007 model year, 
subject to subsection (b). 
(B) TIME FOR ISSUING REGULATIONS.—The 
Secretary of Transportation shall issue the final 
regulations under subparagraph (A) not later 
than April 1, 2006. 
(2) PASSENGER AUTOMOBILES.— 
(A) REQUIREMENT
FOR
NEW
REGULA-
TIONS.—The Secretary of Transportation shall 
issue, under section 32902 of title 49, United 
States Code, new regulations setting forth in-
creased average fuel economy standards for pas-
senger automobiles. The regulations shall be de-
termined on the basis of the maximum feasible 
average fuel economy levels for the passenger 
automobiles, taking into consideration the mat-
ters set forth in subsection (f) of such section. 
(B) TIME FOR ISSUING REGULATIONS.—The 
Secretary of Transportation shall issue the final 
regulations under subparagraph (A) not later 
than 21⁄2 years after the date of the enactment of 
this Act.
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(b) PHASED INCREASES.—The regulations issued pur-
suant to subsection (a) shall specify standards that take ef-
fect successively over several vehicle model years not exceed-
ing 15 vehicle model years. 
(c) CLARIFICATION OF AUTHORITY TO AMEND PAS-
SENGER AUTOMOBILE STANDARD.—Section 32902(b) of 
title 49, United States Code, is amended by inserting before 
the period at the end the following: ‘‘or such other number 
as the Secretary prescribes under subsection (c)’’. 
(d) ENVIRONMENTAL
ASSESSMENT.—When issuing 
final regulations setting forth increased average fuel econ-
omy standards under section 32902(a) or section 32902(c) 
of title 49, United States Code, the Secretary of Transpor-
tation shall also issue an environmental assessment of the 
effects of the increased standards on the environment under 
the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.). 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary of Transpor-
tation $5,000,000 for each of fiscal years 2006 through 2010 
for carrying out this section and for administering the regu-
lations issued pursuant to this section.
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SEC. 713. EXPEDITED PROCEDURES FOR CONGRESSIONAL 
INCREASE IN FUEL ECONOMY STANDARDS. 
(a) CONDITION FOR APPLICABILITY.—If the Secretary 
of Transportation fails to issue final regulations with re-
spect to non-passenger automobiles under section 712, or 
fails to issue final regulations with respect to passenger 
automobiles under such section, on or before the date by 
which such final regulations are required by such section 
to be issued, respectively, then this section shall apply with 
respect to a bill described in subsection (b). 
(b) BILL.—A bill referred to in this subsection is a 
bill that satisfies the following requirements: 
(1) INTRODUCTION.—The bill is introduced by 
one or more Members of Congress not later than 60 
days after the date referred to in subsection (a). 
(2) TITLE.—The title of the bill is as follows: ‘‘A 
bill to establish new average fuel economy standards 
for certain motor vehicles.’’. 
(3) TEXT.—The bill provides after the enacting 
clause only the text specified in subparagraph (A) or 
(B) or any provision described in subparagraph (C), 
as follows: 
(A) NON-PASSENGER AUTOMOBILES.—In the 
case of a bill relating to a failure timely to issue 
final regulations relating to non-passenger auto-
mobiles, the following text:
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‘‘That, section 32902 of title 49, United States Code, is 
amended by adding at the end the following new subsection: 
‘‘ ‘(l) NON-PASSENGER AUTOMOBILES.—The average 
fuel economy standard for non-passenger automobiles man-
ufactured by a manufacturer in a model year after model 
year ll shall be ll miles per gallon.’ ’’, the first blank 
space being filled in with a subsection designation, the sec-
ond blank space being filled in with the number of a year, 
and the third blank space being filled in with a number. 
(B) PASSENGER
AUTOMOBILES.—In the 
case of a bill relating to a failure timely to issue 
final regulations relating to passenger auto-
mobiles, the following text: 
‘‘That, section 32902(b) of title 49, United States Code, is 
amended to read as follows: 
‘‘ ‘(b) PASSENGER AUTOMOBILES.—Except as provided 
in this section, the average fuel economy standard for pas-
senger automobiles manufactured by a manufacturer in a 
model year after model year ll shall be ll miles per 
gallon.’ ’’, the first blank space being filled in with the num-
ber of a year and the second blank space being filled in 
with a number. 
(C) SUBSTITUTE
TEXT.—Any text sub-
stituted by an amendment that is in order under 
subsection (c)(3).
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(c) EXPEDITED PROCEDURES.—A bill described in 
subsection (b) shall be considered in a House of Congress 
in accordance with the procedures provided for the consider-
ation of joint resolutions in paragraphs (3) through (8) of 
section 8066(c) of the Department of Defense Appropria-
tions Act, 1985 (as contained in section 101(h) of Public 
Law 98–473; 98 Stat. 1936), with the following exceptions: 
(1) REFERENCES
TO
RESOLUTION.—The ref-
erences in such paragraphs to a resolution shall be 
deemed to refer to the bill described in subsection (b). 
(2) COMMITTEES OF JURISDICTION.—The com-
mittees to which the bill is referred under this sub-
section shall— 
(A) in the Senate, be the Committee on 
Commerce, Science, and Transportation; and 
(B) in the House of Representatives, be the 
Committee on Energy and Commerce. 
(3) AMENDMENTS.— 
(A) AMENDMENTS
IN
ORDER.—Only four 
amendments to the bill are in order in each 
House, as follows: 
(i) Two amendments proposed by the 
majority leader of that House. 
(ii) Two amendments proposed by the 
minority leader of that House.
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(B) FORM AND CONTENT.—To be in order 
under subparagraph (A), an amendment shall 
propose to strike all after the enacting clause and 
substitute text that only includes the same text as 
is proposed to be stricken except for one or more 
different numbers in the text. 
(C) DEBATE, ET
CETERA.—Subparagraph 
(B) of section 8066(c)(5) of the Department of 
Defense Appropriations Act, 1985 (98 Stat. 
1936) shall apply to the consideration of each 
amendment proposed under this paragraph in 
the same manner as such subparagraph (B) ap-
plies to debatable motions. 
SEC. 714. EXTENSION OF MAXIMUM FUEL ECONOMY IN-
CREASE FOR ALTERNATIVE FUELED VEHI-
CLES. 
(a) MANUFACTURING INCENTIVES.—Section 32905 of 
title 49, United States Code, is amended— 
(1) in subsections (b) and (d), by striking 
‘‘1993–2004’’ and inserting ‘‘1993–2008’’; 
(2) in subsection (f), by striking ‘‘2001’’ and in-
serting ‘‘2007’’; and 
(3) in subsection (f)(1), by striking ‘‘2004’’ and 
inserting ‘‘2008’’.
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(b) EXTENSION
OF MAXIMUM FUEL ECONOMY IN-
CREASE.—Section 32906(a)(1) of title 49, United States 
Code, is amended— 
(1) in subparagraph (A), by striking ‘‘1993– 
2004’’ and inserting ‘‘1993 through 2008’’; and 
(2) in subparagraph (B), by striking ‘‘2005– 
2008’’ and inserting ‘‘2009 through 2012’’. 
CHAPTER 2—ADVANCED CLEAN VEHICLES 
SEC. 721. HYBRID VEHICLES RESEARCH AND DEVELOP-
MENT. 
(a) RECHARGEABLE ENERGY STORAGE SYSTEMS AND 
OTHER TECHNOLOGIES.—The Secretary of Energy shall ac-
celerate research and development directed toward the im-
provement of batteries and other rechargeable energy storage 
systems, power electronics, hybrid systems integration, and 
other technologies for use in hybrid vehicles. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Funds are 
hereby authorized to be appropriated for each of fiscal years 
2006, 2007, and 2008 in the amount $50,000,000 for re-
search and development activities under this section. 
SEC. 722. DIESEL FUELED VEHICLES RESEARCH AND DE-
VELOPMENT. 
(a) DIESEL COMBUSTION
AND AFTER TREATMENT 
TECHNOLOGIES.—The Secretary of Energy shall accelerate 
research and development directed toward the improvement
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of diesel combustion and after treatment technologies for use 
in diesel fueled motor vehicles. 
(b) GOALS.—The Secretary shall carry out subsection 
(a) with a view to achieving the following goals: 
(1) 
COMPLIANCE
WITH
CERTAIN
EMISSION 
STANDARDS BY 2010.—Developing and demonstrating 
diesel technologies that, not later than 2010, meet the 
following standards: 
(A) TIER-2 EMISSION STANDARDS.—The tier 
2 emission standards. 
(B) HEAVY-DUTY EMISSION STANDARDS OF 
2007.—The heavy-duty emission standards of 
2007. 
(2) 
POST-2010
HIGHLY
EFFICIENT
TECH-
NOLOGIES.—Developing the next generation of low 
emissions, high efficiency diesel engine technologies, 
including homogeneous charge compression ignition 
technology. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Funds are 
hereby authorized to be appropriated for each of fiscal years 
2006, 2007, and 2008 in the amount of $75,000,000 for re-
search and development of advanced combustion engines 
and advanced fuels.
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SEC. 723. PROCUREMENT OF ALTERNATIVE FUELED PAS-
SENGER AUTOMOBILES. 
(a) VEHICLE FLEETS NOT COVERED BY REQUIRE-
MENT IN ENERGY POLICY ACT OF 1992.—The head of each 
agency of the executive branch shall coordinate with the Ad-
ministrator of General Services to ensure that only alter-
native fueled vehicles are procured by or for each agency 
fleet of passenger automobiles that is not in a fleet of vehi-
cles to which section 303 of the Energy Policy Act of 1992 
(42 U.S.C. 13212) applies. 
(b) WAIVER AUTHORITY.—The head of an agency, in 
consultation with the Administrator, may waive the appli-
cability of the policy regarding the procurement of alter-
native fueled vehicles in subsection (a) to— 
(1) the procurement for such agency of any vehi-
cles described in subparagraphs (A) through (F) of 
section 303(b)(3) of the Energy Policy Act of 1992 (42 
U.S.C. 13212(b)(3)); or 
(2) a procurement of vehicles for such agency if 
the procurement of alternative fueled vehicles cannot 
meet the requirements of the agency for vehicles due 
to insufficient availability of the alternative fuel used 
to power such vehicles. 
(c) APPLICABILITY TO PROCUREMENTS AFTER FISCAL 
YEAR 2005.—This subsection applies with respect to pro-
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curements of alternative fueled vehicles in fiscal year 2006 
and subsequent fiscal years. 
SEC. 724. PROCUREMENT OF HYBRID LIGHT DUTY TRUCKS. 
(a) VEHICLE FLEETS NOT COVERED BY REQUIRE-
MENT IN ENERGY POLICY ACT OF 1992.— 
(1) HYBRID VEHICLES.—The head of each agen-
cy of the executive branch shall coordinate with the 
Administrator of General Services to ensure that only 
hybrid vehicles are procured by or for each agency 
fleet of light duty trucks that is not in a fleet of vehi-
cles to which section 303 of the Energy Policy Act of 
1992 (42 U.S.C. 13212) applies. 
(2) WAIVER AUTHORITY.—The head of an agen-
cy, in consultation with the Administrator, may 
waive the applicability of the policy regarding the 
procurement of hybrid vehicles in paragraph (1) to 
that agency to the extent that the head of that agency 
determines necessary— 
(A) to meet specific requirements of the 
agency for capabilities of light duty trucks; 
(B) to procure vehicles consistent with the 
standards applicable to the procurement of fleet 
vehicles for the Federal Government;
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(C) to adjust to limitations on the commer-
cial availability of light duty trucks that are hy-
brid vehicles; or 
(D) to avoid the necessity of procuring a 
hybrid vehicle for the agency when each of the 
hybrid vehicles available for meeting the require-
ments of the agency has a cost to the United 
States that exceeds the costs of comparable non-
hybrid vehicles by a factor that is significantly 
higher than the difference between— 
(i) the real cost of the hybrid vehicle to 
retail purchasers, taking into account the 
benefit of any tax incentives available to re-
tail purchasers for the purchase of the hy-
brid vehicle; and 
(ii) the costs of the comparable non-
hybrid vehicles to retail purchasers. 
(3) APPLICABILITY
TO
PROCUREMENTS
AFTER 
FISCAL YEAR 2005.—This subsection applies with re-
spect to procurements of light duty trucks in fiscal 
year 2006 and subsequent fiscal years. 
(b) INAPPLICABILITY
TO
DEPARTMENT
OF
DE-
FENSE.—This section does not apply to the Department of 
Defense, which is subject to comparable requirements under 
section 318 of the National Defense Authorization Act for
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Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1055; 
10 U.S.C. 2302 note). 
SEC. 725. DEFINITIONS. 
In this chapter: 
(1) ALTERNATIVE FUELED VEHICLE.—The term 
‘‘alternative fueled vehicle’’ means— 
(A) an alternative fueled vehicle, as defined 
in section 301(3) of the Energy Policy Act of 
1992 (42 U.S.C. 13211(3)); 
(B) a motor vehicle that operates on a blend 
of fuel that is at least 20 percent (by volume) 
biodiesel, as defined in section 312(f) of the En-
ergy Policy Act of 1992 (42 U.S.C. 13220(f)); 
and 
(C) a motor vehicle that operates on a blend 
of fuel that is at least 20 percent (by volume) 
bioderived hydrocarbons (including aliphatic 
compounds) produced from agricultural and ani-
mal waste. 
(2) HEAVY-DUTY
EMISSION
STANDARDS
OF 
2007.—The term ‘‘heavy-duty emission standards of 
2007’’ means the motor vehicle emission standards 
promulgated by the Administrator of the Environ-
mental Protection Agency on January 18, 2001, 
under section 202 of the Clean Air Act to apply to
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heavy-duty vehicles of model years beginning with the 
2007 vehicle model year. 
(3) HYBRID VEHICLE.—The term ‘‘hybrid vehi-
cle’’ means— 
(A) a motor vehicle that draws propulsion 
energy from on board sources of stored energy 
that are both— 
(i) an internal combustion or heat en-
gine using combustible fuel; and 
(ii) a rechargeable energy storage sys-
tem; and 
(B) any other vehicle that is defined as a 
hybrid vehicle in regulations prescribed by the 
Secretary of Energy for the administration of 
title III of the Energy Policy Act of 1992. 
(4) MOTOR VEHICLE.—The term ‘‘motor vehicle’’ 
means any vehicle that is manufactured primarily for 
use on public streets, roads, and highways (not in-
cluding a vehicle operated exclusively on a rail or 
rails) and that has at least four wheels. 
(5) TIER 2 EMISSION STANDARDS DEFINED.—The 
term ‘‘tier 2 emission standards’’ means the motor ve-
hicle emission standards promulgated by the Admin-
istrator of the Environmental Protection Agency on 
February 10, 2000, under section 202 of the Clean
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Air Act (42 U.S.C. 7521) to apply to passenger auto-
mobiles, light trucks, and larger passenger vehicles of 
model years after the 2003 vehicle model year. 
(6) TERMS DEFINED IN EPA REGULATIONS.—The 
terms ‘‘passenger automobile’’ and ‘‘light truck’’ have 
the meanings given such terms in regulations pre-
scribed by the Administrator of the Environmental 
Protection Agency for purposes of the administration 
of title II of the Clean Air Act (42 U.S.C. 7521 et 
seq.). 
Subtitle C—Miscellaneous 
SEC. 731. RAILROAD EFFICIENCY. 
(a) ESTABLISHMENT.—The Secretary shall (in co-
operation with the Secretary of Transportation and the Ad-
ministrator of the Environmental Protection Agency) estab-
lish a cost-shared, public-private research partnership in-
volving the Federal Government, railroad carriers, loco-
motive manufacturers and equipment suppliers, and the As-
sociation of American Railroads, to develop and dem-
onstrate railroad locomotive technologies that increase fuel 
economy, reduce emissions, and lower costs of operation. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary to carry out 
this section— 
(1) $25,000,000 for fiscal year 2006;
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(2) $35,000,000 for fiscal year 2007; and 
(3) $50,000,000 for fiscal year 2008. 
SEC. 732. CONSERVE BY BICYCLING PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) PROGRAM.—The term ‘‘program’’ means the 
Conserve by Bicycling Program established by sub-
section (b). 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Transportation. 
(b) ESTABLISHMENT.—There is established within the 
Department of Transportation a program to be known as 
the ‘‘Conserve by Bicycling Program’’. 
(c) PROJECTS.— 
(1) IN GENERAL.—In carrying out the program, 
the Secretary shall establish not more than 10 pilot 
projects that are— 
(A) dispersed geographically throughout the 
United States; and 
(B) designed to conserve energy resources by 
encouraging the use of bicycles in place of motor 
vehicles. 
(2) REQUIREMENTS.—A pilot project described 
in paragraph (1) shall— 
(A) use education and marketing to convert 
motor vehicle trips to bicycle trips;