ury, in coordination with the Secretary of Transpor-
tation and the Administrator of the Environmental 
Protection Agency, shall prescribe such regulations 
as necessary to determine whether a motor vehicle 
meets the requirements to be eligible for a credit 
under this section.’’. 
(b) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.—Section 38(c)(4)(B) is amended by redesig-
nating clauses (i) through (xii) as clauses (ii) through 
(xiii), respectively, and by inserting before clause (ii) (as 
so redesignated) the following new clause: 
‘‘(i) the credit determined under sec-
tion 30E,’’. 
(c) DISPLAY OF CREDIT.—Section 32908(b) of title 
49, United States Code, is amended— 
(1) in paragraph (1)— 
(A) by redesignating subparagraphs (E) 
and (F) as subparagraphs (F) and (G), and 
(B) by inserting after subparagraph (D) 
the following new subparagraph: 
‘‘(E) the amount of the vehicle energy perform-
ance credit allowable with respect to the sale of the 
automobile under section 30E of the Internal Rev-
enue Code of 1986 (26 U.S.C. 30E).’’, and 
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(2) in paragraph (2), by striking ‘‘paragraph 
(1)(E)’’ and inserting ‘‘paragraph (1)(F)’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 38(b) is amended by striking ‘‘plus’’ 
at the end of paragraph (40), by striking the period 
at the end of paragraph (41) and inserting ‘‘, plus’’, 
and by adding at the end the following new para-
graph: 
‘‘(42) the portion of the vehicle energy perform-
ance rebate to which section 30E(c)(1) applies.’’. 
(2) Section 1016(a) is amended by striking 
‘‘and’’ at the end of paragraph (37), by striking the 
period at the end of paragraph (38) and inserting ‘‘, 
and’’, and by adding at the end the following new 
paragraph: 
‘‘(39) to the extent provided in section 
30E(e)(1).’’. 
(3) Section 6501(m) is amended by inserting 
‘‘30E(e)(6),’’ after ‘‘30D(e)(4),’’. 
(4) The table of section for subpart C of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 30D the 
following new item: 
‘‘Sec. 30E. Vehicle energy performance rebate.’’. 
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SEC. 3. LOW VEHICLE ENERGY PERFORMANCE FEE. 
(a) IN GENERAL.—Section 4064 is amended to read 
as follows: 
‘‘SEC. 4064. LOW VEHICLE ENERGY PERFORMANCE FEE. 
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 
on the sale by the manufacturer of each low energy per-
formance vehicle a tax equal to the product of $5,000, 
multiplied by the quotient of— 
‘‘(1) the excess of— 
‘‘(A) the median vehicle energy perform-
ance for the model year immediately preceding 
the model year of such vehicle, over 
‘‘(B) the vehicle energy performance of 
such vehicle, divided by 
‘‘(2) the excess of— 
‘‘(A) the best vehicle energy performance 
for the model year immediately preceding the 
model year of such vehicle, over 
‘‘(B) the median vehicle energy perform-
ance for the model year immediately preceding 
the model year of such vehicle. 
‘‘(b) LOW ENERGY PERFORMANCE VEHICLE.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘low energy per-
formance vehicle’ means a passenger automobile or 
light truck— 
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‘‘(A) which is treated as a motor vehicle 
for purposes of title II of the Clean Air Act, 
‘‘(B) which achieves vehicle energy per-
formance that is lower than the median vehicle 
energy performance, and 
‘‘(C) which is made by a manufacturer be-
ginning with model year 2029. 
‘‘(2) EXCEPTION
FOR
CERTAIN
VEHICLES.— 
The term ‘low energy performance vehicle’ does not 
include any vehicle— 
‘‘(A) which— 
‘‘(i) has a gross vehicle weight rating 
of more than 8,500 pounds, and 
‘‘(ii) is determined by the Secretary to 
be a vehicle which is designed for commer-
cial use, or 
‘‘(B) sold for use and used— 
‘‘(i) as an ambulance or combination 
ambulance-hearse, 
‘‘(ii) by the United States or by a 
State or local government for police or 
other law enforcement purposes, or 
‘‘(iii) for other emergency uses pre-
scribed by the Secretary by regulations. 
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‘‘(c) OTHER DEFINITIONS.—For purposes of this 
section: 
‘‘(1) VEHICLE
ENERGY
PERFORMANCE.—The 
term ‘vehicle energy performance’ means, with re-
spect to any vehicle, the combined fuel-economy rat-
ing determined for the model and model year of such 
vehicle. 
‘‘(2) MEDIAN
VEHICLE
ENERGY
PERFORM-
ANCE.—The term ‘median vehicle energy perform-
ance’ means, with respect to any model year, the 
median combined fuel-economy rating for all new 
motor vehicles of such model year sold in the United 
States. 
‘‘(3) BEST VEHICLE ENERGY PERFORMANCE.— 
The term ‘best vehicle energy performance’ means, 
with respect to any model year, the highest com-
bined fuel-economy rating of any model of motor ve-
hicle of such model year sold the United States. 
‘‘(4) COMBINED FUEL-ECONOMY RATING.—The 
term ‘combined fuel-economy rating’ means the com-
bined fuel-economy rating determined in accordance 
with section 32908 of title 49, United States Code, 
and expressed in miles per gallon of gasoline equiva-
lent. 
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‘‘(5) MODEL YEAR.—The term ‘model year’ has 
the meaning given such term under section 32901(a) 
of such title 49. 
‘‘(6) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ means any vehicle which is manufactured pri-
marily for use on public streets, roads, and highways 
(not including a vehicle operated exclusively on a rail 
or rails) and which has at least 4 wheels. 
‘‘(7) OTHER TERMS.—The terms ‘automobile’, 
‘passenger automobile’, ‘light truck’, and ‘manufac-
turer’ have the meanings given such terms in regula-
tions prescribed by the Administrator of the Envi-
ronmental Protection Agency for purposes of the ad-
ministration of title II of the Clean Air Act (42 
U.S.C. 7521 et seq.). 
‘‘(d) INFLATION ADJUSTMENT.—In the case of any 
model year beginning in a calendar year after 2029, each 
dollar amount in subsection (a)(2) shall be increased by 
an amount equal to— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the model year begins, determined by substituting 
‘2028’ for ‘2016’ in subparagraph (A)(ii) thereof. 
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Any increase determined under the preceding sentence 
shall be rounded to the nearest multiple of $100.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The heading for part I of subchapter A of 
chapter 32 is amended by striking ‘‘GAS’’ and in-
serting ‘‘FUEL’’. 
(2) The table of parts for subchapter A of chap-
ter 32 is amended by striking ‘‘Gas’’ in the item re-
lating to part I and inserting ‘‘Fuel’’. 
(3) The table of sections for part I of sub-
chapter A of chapter 32 is amended by striking 
‘‘Gas’’ in the item relating to section 4064 and in-
serting ‘‘Fuel’’. 
(4) The heading for subsection (d) of section 
1016 is amended by striking ‘‘GAS GUZZLER TAX’’ 
and inserting ‘‘LOW VEHICLE ENERGY PERFORM-
ANCE FEE’’. 
(5) The heading for subsection (e) of section 
4217 is amended by striking ‘‘GAS GUZZLER TAX’’ 
and inserting ‘‘LOW VEHICLE ENERGY PERFORM-
ANCE FEE’’. 
(6) The heading for subparagraph (B) of sec-
tion 4217(e)(3) is amended by striking ‘‘GAS GUZ-
ZLER TAX’’ and inserting ‘‘LOW VEHICLE ENERGY 
PERFORMANCE FEE’’. 
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(7) Section 4217(e) is amended by striking 
‘‘gas guzzler tax’’ each place it appears and insert-
ing ‘‘low vehicle energy performance fee’’. 
SEC. 4. FUEL ECONOMY OF DUAL FUELED AUTOMOBILES. 
(a) MEASUREMENT OF FUEL ECONOMY FOR ELEC-
TRIC DUAL FUELED AUTOMOBILES.—Section 32905(e) of 
title 49, United States Code, is amended— 
(1) in paragraph (1), in the matter preceding 
subparagraph (A)— 
(A) by striking ‘‘At the request of the 
manufacturer, the Administrator may’’ and in-
serting ‘‘The Administrator shall’’; and 
(B) by striking ‘‘model year 2015’’ and in-
serting ‘‘model year 2026’’; and 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) REVIEW AND UPDATING OF FORMULA.— 
Not later than 3 years after the date of the enact-
ment of this paragraph, and every 3 years there-
after, the Administrator shall, using real-world data 
if possible, review and update the formula for deter-
mining under paragraph (1) percentage utilization 
on gasoline or diesel fuel and percentage utilization 
on electricity.’’. 
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(b) FUEL
ECONOMY
INFORMATION
FOR
DUAL 
FUELED AUTOMOBILES.— 
(1) 
LABELING
REQUIREMENTS
AND
CON-
TENTS.—Section 32908(b)(3) of title 49, United 
States Code, is amended— 
(A) by redesignating subparagraphs (B), 
(C), and (D) as subparagraphs (D), (E), and 
(F), respectively; and 
(B) by inserting after subparagraph (A) 
the following: 
‘‘(B) indicate the fuel economy of the auto-
mobile when operated primarily on alternative fuel; 
‘‘(C) indicate the multi-day average fuel econ-
omy of the automobile when operated on a combina-
tion of alternative fuel and gasoline or diesel fuel, 
with the percentage utilization of alternative fuel 
and the percentage utilization of gasoline or diesel 
fuel being determined by a formula based on real- 
world data and updated not less frequently than 
every 3 years;’’. 
(2) FUEL ECONOMY INFORMATION BOOKLET.— 
Section 32908(c)(2)(B) of title 49, United States 
Code, is amended— 
(A) in clause (i), by striking ‘‘; and’’ and 
inserting a semicolon; 
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(B) by redesignating clause (ii) as clause 
(iii); and 
(C) by inserting after clause (i) the fol-
lowing: 
‘‘(ii) information on the multi-day average fuel 
economy of the automobile when operated on a com-
bination of alternative fuel and gasoline or diesel 
fuel, as indicated under subsection (b)(3)(C); and’’. 
(c) APPLICABILITY.—The amendments made by this 
section shall apply with respect to automobiles of model 
year 2027 or later. 
Æ 
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