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(32) In section 32505(b)(3), strike ‘‘the judicial’’ and ‘‘was conducted’’
and substitute ‘‘any judicial’’ and ‘‘is conducted’’, respectively.
(33) In section 32703(3), strike ‘‘public’’.
(34) Section 32705(c)(2)(A) is amended to read as follows:
‘‘(A) the lessee’s mileage disclosure requirements under paragraph (1)
of this subsection; and’’.
(35) In section 32706(e)(3), strike ‘‘the judicial’’ and ‘‘was conducted’’
and substitute ‘‘any judicial’’ and ‘‘is conducted’’, respectively.
(36) Section 32904(b) is amended as follows:
(A) Redesignate paragraphs (3)–(6) as paragraphs (5)–(8), re-
spectively.
(B) Strike ‘‘(b) SEPARATE CALCULATIONS
FOR PASSENGER
AUTOMOBILES MANUFACTURED DOMESTICALLY AND NOT DOMESTI-
CALLY.—(1)’’ through the end of paragraph (2) and substitute the
following:
‘‘(b) SEPARATE CALCULATIONS FOR PASSENGER AUTOMOBILES MANUFAC-
TURED DOMESTICALLY AND NOT DOMESTICALLY.—(1)(A) Except as provided
in paragraphs (6) and (7) of this subsection, the Administrator shall make
separate calculations under subsection (a)(1)(B) of this section for—
‘‘(i) passenger automobiles manufactured domestically by a manufac-
turer (or included in this category under paragraph (5) of this sub-
section); and
‘‘(ii) passenger automobiles not manufactured domestically by that
manufacturer (or excluded from this category under paragraph (5) of
this subsection).
‘‘(B) Passenger automobiles described in subparagraph (A)(i) and (ii) of
this paragraph are deemed to be manufactured by separate manufacturers
under this chapter.
‘‘(2) In this subsection (except as provided in paragraph (3)), a passenger
automobile is deemed to be manufactured domestically in a model year if at
least 75 percent of the cost to the manufacturer is attributable to value added
in the United States or Canada, unless the assembly of the automobile is com-
pleted in Canada and the automobile is imported into the United States more
than 30 days after the end of the model year.
‘‘(3)(A) In this subsection, a passenger automobile is deemed to be manu-
factured domestically in a model year, as provided in subparagraph (B) of
this paragraph, if at least 75 percent of the cost to the manufacturer is attrib-
utable to value added in the United States, Canada, or Mexico, unless the as-
sembly of the automobile is completed in Canada or Mexico and the auto-
mobile is imported into the United States more than 30 days after the end
of the model year.
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‘‘(B) Subparagraph (A) of this paragraph applies to automobiles manufac-
tured by a manufacturer and sold in the United States, regardless of the place
of assembly, as follows:
‘‘(i) A manufacturer that began assembling automobiles in Mexico be-
fore model year 1992 may elect, during the period from January 1, 1997,
through January 1, 2004, to have subparagraph (A) of this paragraph
apply to all automobiles manufactured by that manufacturer beginning
with the model year that begins after the date of the election.
‘‘(ii) For a manufacturer that began assembling automobiles in Mexico
after model year 1991, subparagraph (A) of this paragraph applies to
all automobiles manufactured by that manufacturer beginning with the
model year that begins after January 1, 1994, or the model year begin-
ning after the date the manufacturer begins assembling automobiles in
Mexico, whichever is later.
‘‘(iii) A manufacturer not described in clause (i) or (ii) of this sub-
paragraph that assembles automobiles in the United States or Canada,
but not in Mexico, may elect, during the period from January 1, 1997,
through January 1, 2004, to have subparagraph (A) of this paragraph
apply to all automobiles manufactured by that manufacturer beginning
with the model year that begins after the date of the election. However,
if the manufacturer begins assembling automobiles in Mexico before mak-
ing an election under this subparagraph, this clause does not apply, and
the manufacturer is subject to clause (ii) of this subparagraph.
‘‘(iv) For a manufacturer that does not assemble automobiles in the
United States, Canada, or Mexico, subparagraph (A) of this paragraph
applies to all automobiles manufactured by that manufacturer beginning
with the model year that begins after January 1, 1994.
‘‘(v) For a manufacturer described in clause (i) or (iii) of this sub-
paragraph that does not make an election within the specified period,
subparagraph (A) of this paragraph applies to all automobiles manufac-
tured by that manufacturer beginning with the model year that begins
after January 1, 2004.
‘‘(C) The Secretary of Transportation shall prescribe reasonable procedures
for elections under subparagraph (B) of this paragraph.
‘‘(4) In this subsection, the fuel economy of a passenger automobile that is
not manufactured domestically is deemed to be equal to the average fuel econ-
omy of all passenger automobiles manufactured by the same manufacturer
that are not manufactured domestically.’’.
(C) In paragraph (5)(B), as redesignated by subparagraph (A)
of this paragraph, strike ‘‘paragraph (2)(A)(i) and exclude under
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paragraph (2)(A)(ii)’’ and substitute ‘‘paragraph (1)(A)(i) and ex-
clude under paragraph (1)(A)(ii)’’.
(D) In paragraph (6)(A), as redesignated by subparagraph (A)
of this paragraph, strike ‘‘paragraph (2)(A)’’ and substitute ‘‘para-
graph (1)(A)’’.
(37) In section 32908(b)(1), insert ‘‘on the automobile’’ after ‘‘main-
tain the label’’.
(38) In section 32909(a)(1), strike ‘‘section 32901–32904’’ and sub-
stitute ‘‘any of sections 32901–32904’’.
(39) In section 32910(b), strike ‘‘the judicial’’ and ‘‘was conducted’’
and substitute ‘‘any judicial’’ and ‘‘is conducted’’, respectively.
(40) In section 32911(a), strike ‘‘, and 32917(b)’’ and substitute ‘‘,
32917(b), and 32918’’.
(41) Section 32913(b)(1) is amended as follows:
(A) In the catchline, strike ‘‘PENALTY REDUCTION’’ and sub-
stitute ‘‘CERTIFICATION’’.
(B) Strike ‘‘the penalty should be reduced’’ and substitute ‘‘a re-
duction in the penalty is necessary’’.
(42) Section 32916(b) is amended as follows:
(A) In paragraph (1), in the matter before clause (A), strike ‘‘sec-
tion 32904(b)(4)’’ each place it appears and substitute ‘‘section
32904(b)(6)’’.
(B) In paragraph (1)(E), strike ‘‘section 32904(b)(1)(A)’’ and
substitute ‘‘section 32904(b)(2)’’.
(C) In paragraph (2), strike ‘‘section 32904(b)(4)’’ and substitute
‘‘section 32904(b)(6)’’.
(43)(A) Section 32918 is redesignated as section 32919.
(B) Insert after section 32917 the following:
‘‘§ 32918. Retrofit devices
‘‘(a) DEFINITION.—In this section, the term ‘retrofit device’ means any
component, equipment, or other device—
‘‘(1) that is designed to be installed in or on an automobile (as an
addition to, as a replacement for, or through alteration or modification
of, any original component, equipment, or other device); and
‘‘(2) that any manufacturer, dealer, or distributor of the device rep-
resents will provide higher fuel economy than would have resulted with
the automobile as originally equipped,
as determined under regulations of the Administrator of the Environmental
Protection Agency. The term also includes a fuel additive for use in an auto-
mobile.
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‘‘(b) EXAMINATION OF FUEL ECONOMY REPRESENTATIONS.—The Federal
Trade Commission shall establish a program for systematically examining
fuel economy representations made with respect to retrofit devices. Whenever
the Commission has reason to believe that any representation may be inac-
curate, the Commission shall request the Administrator to evaluate, in accord-
ance with subsection (c) of this section, the retrofit device with respect to
which the representation was made.
‘‘(c) EVALUATION OF RETROFIT DEVICES.—(1) On application of any
manufacturer of a retrofit device (or prototype of a retrofit device), on request
of the Commission under subsection (b) of this section, or on the motion of
the Administrator, the Administrator shall evaluate, in accordance with regu-
lations prescribed under subsection (e) of this section, any retrofit device to
determine whether the retrofit device increases fuel economy and to determine
whether the representations, if any, made with respect to the retrofit device
are accurate.
‘‘(2) If under paragraph (1) of this subsection, the Administrator tests, or
causes to be tested, any retrofit device on the application of a manufacturer
of the device, the manufacturer shall supply, at the manufacturer’s expense,
one or more samples of the device to the Administrator and shall be liable
for the costs of testing incurred by the Administrator. The procedures for test-
ing retrofit devices so supplied may include a requirement for preliminary
testing by a qualified independent testing laboratory, at the expense of the
manufacturer of the device.
‘‘(d) RESULTS OF TESTS AND PUBLICATION IN FEDERAL REGISTER.—(1)
The Administrator shall publish in the Federal Register a summary of the
results of all tests conducted under this section, together with the Administra-
tor’s conclusions as to—
‘‘(A) the effect of any retrofit device on fuel economy;
‘‘(B) the effect of the device on emissions of air pollutants; and
‘‘(C) any other information the Administrator determines to be rel-
evant in evaluating the device.
‘‘(2) The summary and conclusions shall also be submitted to the Secretary
of Transportation and the Commission.
‘‘(e) REGULATIONS ESTABLISHING TESTS AND PROCEDURES FOR EVALUA-
TION OF RETROFIT DEVICES.—The Administrator shall prescribe regulations
establishing—
‘‘(1) testing and other procedures for evaluating the extent to which
retrofit devices affect fuel economy and emissions of air pollutants; and
‘‘(2) criteria for evaluating the accuracy of fuel economy representa-
tions made with respect to retrofit devices.’’.
(C) In the analysis of chapter 329, strike item 32918 and substitute—
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‘‘32918. Retrofit devices.
‘‘32919. Preemption.’’.
(44) Section 33101(2) is amended as follows:
(A) Strike ‘‘sections 33102(c)(1) and’’ and substitute ‘‘section’’.
(B) Add at the end ‘‘of this title’’.
(45) In section 33106(b)(3), strike ‘‘subparagraph (2)(B) or (C) of this
paragraph’’ and substitute ‘‘paragraph (2)(B) or (C) of this subsection’’.
(46) In section 40102(a)(30), strike ‘‘subparts I and III’’ and sub-
stitute ‘‘this subpart and subpart III’’.
(47) Section 40104 is amended as follows:
(A) Insert at the beginning of the text of the section the following:
‘‘(a) DEVELOPING CIVIL AERONAUTICS AND AIR COMMERCE.—’’.
(B) Strike ‘‘section’’ and substitute ‘‘subsection’’.
(C) Add at the end the following:
‘‘(b) DEVELOPING AND CONSTRUCTING CIVIL SUPERSONIC AIRCRAFT.—The
Secretary of Transportation may develop and construct a civil supersonic air-
craft.’’.
(48) Section 40110(a) is amended as follows:
(A) In the matter before clause (1), strike ‘‘may’’.
(B) In clause (1)—
(i) strike ‘‘acquire,’’; and
(ii) strike ‘‘services or’’ and substitute ‘‘may acquire services
or, by condemnation or otherwise,’’.
(C) In clause (2), insert ‘‘may’’ before ‘‘dispose’’.
(D) In clause (3), insert ‘‘may’’ before ‘‘construct’’.
(49) In section 41103(a), strike ‘‘all-property’’ and substitute ‘‘all-
cargo’’.
(50) Section 41110(e) is amended to read as follows:
‘‘(e) CONTINUING REQUIREMENTS.—(1) To hold a certificate issued under
section 41102 of this title, an air carrier must continue to be fit, willing, and
able to provide the transportation authorized by the certificate and to comply
with this part and regulations of the Secretary.
‘‘(2) After notice and an opportunity for a hearing, the Secretary shall
amend, modify, suspend, or revoke any part of a certificate issued under sec-
tion 41102 of this title if the Secretary finds that the air carrier—
‘‘(A) is not fit, willing, and able to provide the transportation author-
ized by the certificate and to comply with this part and regulations of
the Secretary; or
‘‘(B) does not file reports necessary for the Secretary to decide if the
carrier is complying with the requirements of clause (A) of this para-
graph.’’.