139 
SEC. 243. ADVANCED TECHNOLOGY VEHICLES MANUFAC-
TURING INCENTIVE PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) ADJUSTED AVERAGE FUEL ECONOMY.—The 
term ‘‘adjusted average fuel economy’’ means the av-
erage fuel economy of a manufacturer for all light 
duty vehicles produced by the manufacturer, ad-
justed such that the fuel economy of each vehicle 
that qualifies for an award shall be considered to be 
equal to the average fuel economy for vehicles of a 
similar footprint for model year 2005. 
(2) ADVANCED
TECHNOLOGY
VEHICLE.—The 
term ‘‘advanced technology vehicle’’ means a light 
duty vehicle that meets— 
(A) the Bin 5 Tier II emission standard 
established in regulations issued by the Admin-
istrator of the Environmental Protection Agen-
cy under section 202(i) of the Clean Air Act 
(42 U.S.C. 7521(i)), or a lower-numbered Bin 
emission standard; 
(B) any new emission standard for fine 
particulate matter prescribed by the Adminis-
trator under that Act (42 U.S.C. 7401 et seq.); 
and 
(C) at least 125 percent of the average 
base year combined fuel economy, calculated on 
VerDate Aug 31 2005 
01:58 Jun 30, 2007
Jkt 059200
PO 00000
Frm 00139
Fmt 6652
Sfmt 6201
E:\BILLS\H2950.IH
H2950
ccoleman on PRODPC75 with BILLS
140 
an energy-equivalent basis, for vehicles of a 
substantially similar footprint. 
(3) COMBINED
FUEL
ECONOMY.—The term 
‘‘combined fuel economy’’ means— 
(A) the combined city/highway miles per 
gallon values, as reported in accordance with 
section 32908 of title 49, United States Code; 
and 
(B) in the case of an electric drive vehicle 
with the ability to recharge from an off-board 
source, the reported mileage, as determined in 
a manner consistent with the Society of Auto-
motive Engineers recommended practice for 
that configuration or a similar practice rec-
ommended by the Secretary, using a petroleum 
equivalence factor for the off-board electricity 
(as defined in section 474 of title 10, Code of 
Federal Regulations). 
(4) ENGINEERING
INTEGRATION
COSTS.—The 
term ‘‘engineering integration costs’’ includes the 
cost of engineering tasks relating to— 
(A) incorporating qualifying components 
into the design of advanced technology vehicles; 
and 
VerDate Aug 31 2005 
01:58 Jun 30, 2007
Jkt 059200
PO 00000
Frm 00140
Fmt 6652
Sfmt 6201
E:\BILLS\H2950.IH
H2950
ccoleman on PRODPC75 with BILLS
141 
(B) designing new tooling and equipment 
and developing new manufacturing processes 
and material suppliers for production facilities 
that produce qualifying components or ad-
vanced technology vehicles. 
(5) 
QUALIFYING
COMPONENTS.—The 
term 
‘‘qualifying components’’ means components that the 
Secretary determines to be— 
(A) specially designed for advanced tech-
nology vehicles; and 
(B) installed for the purpose of meeting 
the performance requirements of advanced tech-
nology vehicles. 
(b) ADVANCED VEHICLES MANUFACTURING FACIL-
ITY.—The Secretary shall provide facility funding awards 
under this section to automobile manufacturers and com-
ponent suppliers to pay not more than 30 percent of the 
cost of— 
(1) reequipping, expanding, or establishing a 
manufacturing facility in the United States to 
produce— 
(A) qualifying advanced technology vehi-
cles; or 
(B) qualifying components; and 
VerDate Aug 31 2005 
01:58 Jun 30, 2007
Jkt 059200
PO 00000
Frm 00141
Fmt 6652
Sfmt 6201
E:\BILLS\H2950.IH
H2950
ccoleman on PRODPC75 with BILLS
142 
(2) engineering integration performed in the 
United States of qualifying vehicles and qualifying 
components. 
(c) PERIOD OF AVAILABILITY.—An award under sub-
section (b) shall apply to— 
(1) facilities and equipment placed in service 
before December 30, 2017; and 
(2) engineering integration costs incurred dur-
ing the period beginning on the date of enactment 
of this Act and ending on December 30, 2017. 
(d) IMPROVEMENT.—The Secretary shall issue regu-
lations that require that, in order for an automobile manu-
facturer to be eligible for an award under this section dur-
ing a particular year, the adjusted average fuel economy 
of the manufacturer for light duty vehicles produced by 
the manufacturer during the most recent year for which 
data are available shall be not less than the average fuel 
economy for all light duty vehicles of the manufacturer 
for model year 2005. 
(e) SET ASIDE FOR SMALL AUTOMOBILE MANUFAC-
TURERS AND COMPONENT SUPPLIERS.— 
(1) DEFINITION OF COVERED FIRM.—In this 
subsection, the term ‘‘covered firm’’ means a firm 
that— 
(A) employs less than 500 individuals; and 
VerDate Aug 31 2005 
01:58 Jun 30, 2007
Jkt 059200
PO 00000
Frm 00142
Fmt 6652
Sfmt 6201
E:\BILLS\H2950.IH
H2950
ccoleman on PRODPC75 with BILLS