I
106TH CONGRESS
2D SESSION
H. R. 4270
To amend the Internal Revenue Code of 1986 to provide incentives for
the production, sale, and use of highly fuel-efficient, advanced-technology
motor vehicles and to amend the Energy Policy Act of 1992 to undertake
an assessment of the relative effectiveness of current and potential meth-
ods to further encourage the development of the most fuel efficient
vehicles for use in interstate commerce in the United States.
IN THE HOUSE OF REPRESENTATIVES
APRIL 13, 2000
Mr. KILDEE (for himself, Mr. UPTON, Mr. DINGELL, Mr. LEVIN, Mr. TOWNS,
and Mr. KNOLLENBERG) introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committee
on Commerce, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to provide
incentives for the production, sale, and use of highly
fuel-efficient, advanced-technology motor vehicles and to
amend the Energy Policy Act of 1992 to undertake an
assessment of the relative effectiveness of current and
potential methods to further encourage the development
of the most fuel efficient vehicles for use in interstate
commerce in the United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Advanced Technology
Motor Vehicle Fuel Economy Act of 2000’’.
TITLE I—AMENDMENTS TO THE
INTERNAL 
REVENUE 
CODE
OF 1986
SEC. 101. CREDIT FOR CERTAIN ENERGY EFFICIENT
MOTOR VEHICLES.
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
section:
‘‘SEC. 30B. CREDIT FOR HYBRID VEHICLES.
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the sum of the
credit amounts for each qualified hybrid vehicle placed in
service during the taxable year.
‘‘(b) CREDIT
AMOUNT.—For purposes of this
section—
‘‘(1) IN GENERAL.—The credit amount for each
qualified hybrid vehicle with a rechargeable energy
storage system that provides the applicable percent-
age of the maximum available power shall be the
amount specified in the following table:
‘‘Applicable percentage
Credit amount
Greater than or equal to 5 percent but less than 10 percent ............
$500
Greater than or equal to 10 percent but less than 20 percent––– $1,000
Greater than or equal to 20 percent but less than 30 percent––– $1,500
Greater than or equal to 30 percent .................................................. $2,000.
‘‘(2) INCREASE IN CREDIT AMOUNT FOR RE-
GENERATIVE BRAKING SYSTEM.—In the case of a
qualified hybrid vehicle that actively employs a re-
generative braking system which supplies to the re-
chargeable energy storage system the applicable per-
centage of the energy available from braking in a
typical 60 miles per hour to 0 miles per hour brak-
ing event, the credit amount determined under this
section shall be increased by the amount specified in
the following table:
‘‘Applicable percentage
Credit amount
Greater than or equal to 20 percent but less than 40 percent ..........
$250
Greater than or equal to 40 percent but less than 60 percent ..........
$500
Greater than or equal to 60 percent .................................................. $1,000.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED HYBRID VEHICLE.—The term
‘qualified hybrid vehicle’ means an automobile that
meets all applicable regulatory requirements and
that can draw propulsion energy from both of the
following onboard sources of stored energy:
‘‘(A) A consumable fuel.
‘‘(B) 
A 
rechargeable 
energy 
storage
system.
‘‘(2) MAXIMUM AVAILABLE POWER.—The term
‘maximum available power’ means the maximum
value of the sum of the heat engine and electric
drive system power or other nonheat energy conver-
sion devices available for a driver’s command for
maximum acceleration at vehicle speeds under 75
miles per hour.
‘‘(3) AUTOMOBILE.—The term ‘automobile’ has
the meaning given such term by section 4064(b)(1)
(without regard to subparagraphs (B) and (C) there-
of). A vehicle shall not fail to be treated as an auto-
mobile solely by reason of weight if such vehicle is
rated at 8,500 pounds gross vehicle weight rating or
less.
‘‘(d) APPLICATION WITH OTHER CREDITS.—The
credit allowed by subsection (a) for any taxable year shall
not exceed the excess (if any) of—
‘‘(1) the regular tax for the taxable year re-
duced by the sum of the credits allowable under sub-
part A and the preceding sections of this subpart,
over
‘‘(2) the tentative minimum tax for the taxable
year.
‘‘(e) SPECIAL RULES.—
‘‘(1) BASIS
REDUCTION.—The basis of any
property for which a credit is allowable under sub-
section (a) shall be reduced by the amount of such
credit (determined without regard to subsection (d)).
‘‘(2) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to
any property which ceases to be property eligible for
such credit.
‘‘(3) 
PROPERTY
USED
OUTSIDE
UNITED
STATES, ETC., NOT QUALIFIED.—No credit shall be
allowed under this section with respect to—
‘‘(A) any property for which a credit is al-
lowed under section 30,
‘‘(B) any property referred to in section
50(b), or
‘‘(C) any property taken into account
under section 179 or 179A.
‘‘(4) ELECTION
TO
NOT
TAKE
CREDIT.—No
credit shall be allowed under subsection (a) for any
vehicle if the taxpayer elects to not have this section
apply to such vehicle.
‘‘(f) REGULATIONS.—
‘‘(1) TREASURY.—The Secretary shall prescribe
such regulations as may be necessary or appropriate
to carry out the purposes of this section.
‘‘(2) ENVIRONMENTAL PROTECTION AGENCY.—
The Administrator of the Environmental Protection
Agency, in coordination with the Secretary of Trans-
portation and consistent with the laws administered
by such agency for automobiles, shall timely pre-
scribe such regulations as may be necessary or ap-
propriate solely for the purpose of specifying the
testing and calculation procedures to determine
whether a vehicle meets the qualifications for a cred-
it under this section.
‘‘(g) APPLICATION OF SECTION.—This section shall
apply to any qualified hybrid vehicles placed in service
after December 31, 1999, and before January 1, 2009.’’
(b) CONFORMING AMENDMENTS.—
(1) Subsection (a) of section 1016 of such Code
is amended by striking ‘‘and’’ at the end of para-
graph (26), by striking the period at the end of
paragraph (27) and inserting ‘‘, and’’, and by add-
ing at the end the following new paragraph:
‘‘(28) to the extent provided in section
30B(e)(1).’’
(2) The table of sections for subpart B of part
IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new
item:
‘‘Sec. 30B. Credit for hybrid vehicles.’’
SEC. 102. EXTENSION OF CREDIT FOR CERTAIN QUALIFIED
ELECTRIC VEHICLES.
(a) EXTENSION OF CREDIT FOR QUALIFIED ELEC-
TRIC VEHICLES.—Subsection (e) of section 30 of the In-
ternal Revenue Code of 1986 (relating to termination) is
amended by striking ‘‘December 31, 2004’’ and inserting
‘‘December 31, 2008’’.
(b) REPEAL OF PHASEOUT.—Subsection (b) of sec-
tion 30 of such Code (relating to limitations) is amended
by striking paragraph (2) and by redesignating paragraph
(3) as paragraph (2).
SEC. 103. EFFECTIVE DATE.
The amendments made by this title shall apply to ve-
hicles placed in service after the date of the enactment
of this Act.
TITLE II—AMENDMENTS TO THE
ENERGY POLICY ACT OF 1992
SEC. 201. STUDY OF CURRENT AND FUTURE ENERGY CON-
SERVATION REGARDING MOTOR VEHICLE
AND RELATED TRANSPORTATION IN INTER-
STATE COMMERCE IN THE UNITED STATES.
(a) IN GENERAL.—Subtitle G of title I of the Energy
Policy Act of 1992 (42 U.S.C. 13451 note) is amended
by adding the following new sections:
‘‘SEC. 
174. 
TRANSPORTATION 
ENERGY 
CONSERVATION
STUDY.
‘‘(a) STUDY AGREEMENT.—The Secretary of Trans-
portation (with the participation of the Secretary of En-
ergy) shall, within 90 days after the date of enactment
of this section, enter into an agreement with the National
Academy of Sciences to conduct a comprehensive study of
voluntary, mandatory, and other means and measures
used by private and public sectors for the purposes of con-
serving energy in transportation of people and goods in
interstate commerce in the United States, and for the pro-
vision of services by motor vehicles and other modes of
transportation, and identify and examine potential vol-
untary, mandatory, and other approaches to such con-
servation. Such study shall also examine the use, accept-
ance, effectiveness, costs, impact on mobility, and other
relevant factors concerning such current and potential
means and measures for energy conservation and shall
consider the ubiquitous nature of such transportation and
its importance in the economy. The study shall also take
into consideration such factors as current and future en-
ergy supplies available to the United States, the avail-
ability in the United States of adequate, reliable, conven-
ient, consumer-friendly transportation locally, regionally,
and nationally, the geographic size and population of the
United States, and the availability and impact of tech-
nologies and fuels that affect energy conservation. The
study shall also compare existing and planned energy con-
servation approaches in other economically developed
countries and integrated economic regions, taking into
consideration similar factors.
‘‘(b) REQUIREMENTS.—The study shall be comprised
of the following aspects:
‘‘(1) An overview of the United States energy
supply situation, including an assessment of current
and projected fuel supplies.
‘‘(2) The impact of current and projected fuel
supplies on national security and trade.
‘‘(3) An assessment of energy use by the trans-
portation and several other sectors of the economy.
‘‘(4) An assessment of the relative effectiveness
of past and current motor vehicle energy conserva-
tion programs for motor vehicles and other modes of
transportation, policies, and proposals in the United
States, including consideration of, among others—
‘‘(A) regulatory requirements, direct and
indirect;
‘‘(B) corporate average fuel economy man-
date;
‘‘(C) dispersal of authority over the provi-
sion and regulation of transportation;
‘‘(iii) cooperative government/industry ar-
rangements such as Smart Growth, Clean Cit-
ies, Energy Star, Partnership for a New Gen-
eration of Vehicles, European Automobile Coop-
erative Research program, and Japanese Coop-
erative Automobile Research program;
‘‘(iv) efforts to encourage and accelerate
lean burn, clean diesel hybrids, fuel cells and
other advanced technologies, and alternative
fuels;
‘‘(v) congestion mitigation measures;
‘‘(vi) intelligent transportation systems
(ITS); and
‘‘(vii) other potential approaches.
‘‘(B) In making such identification, the study
should assess, to the extent applicable, the market-
ability, risks, benefits, practicability, acceptability,
and costs of such approaches as well as any legal or
market barriers to the introduction of such ap-
proaches, such as cost of energy, public awareness,
fueling infrastructure, fuel quality, and other exist-
ing regulations (e.g., Environmental Protection
Agency Tier 2 regulations, California emissions
standards, Federal Motor Vehicle Safety Standards).
‘‘(7) An assessment of the effects on personal
mobility and the United States economy that have
resulted from the implementation of current con-
servation policies and measures and that likely
would result from the implementation of future
approaches.
‘‘(8) Conclusions that appropriately follow from
the foregoing study, including—
‘‘(A) the effectiveness of prior and existing
transportation policies in fostering increased en-
ergy conservation;
‘‘(B) the need for and timing of energy
conservation measures for motor vehicles; and
‘‘(C) other potential future approaches and
policies that recommend themselves for further
consideration.
‘‘(c) REPORT.—The Secretary of Transportation
shall submit to Congress, not later than 18 months after
the date of enactment of this Act, a report describing the
results of the study under this section, including any ap-
propriate recommendations, together with the basis for
them and their estimated costs and benefits.
‘‘SEC. 175. STUDY OF LEAN BURN TECHNOLOGY.
‘‘(a) SCOPE OF STUDY.—The Secretary of Transpor-
tation (with the participation of the Secretary of Energy)
shall, within 60 days after the date of enactment of this
Act, commission a study regarding lean burn technology
in increasing fuel efficiency, to include consideration of,
among other things:
‘‘(1) POTENTIAL
BENEFITS.—The potential
benefits of introducing lean burn technology,
including—
‘‘(A) its impact on fuel consumption; and
‘‘(B) the cost effectiveness (i.e., value) of
implementing lean burn technology as a bridge
to longer term advanced technologies for fuel
economy improvement.
‘‘(2) POTENTIAL
BARRIERS.—The potential
barriers to introduction of lean burn technology,
including—
‘‘(A) emissions control technology for lean
burn technology;
‘‘(B) the compatibility of existing fuels to
advanced technologies;
‘‘(C) the conflict between lean burn tech-
nology and stringent emissions limits; and
‘‘(D) any legal and market barriers to the
introduction of lean burn technologies, such as
cost of energy, public awareness, fueling infra-
structure, fuel quality, and other existing regu-
lations (e.g., Environmental Protection Agency
Tier 2 regulations, California emissions stand-
ards, Federal Motor Vehicle Safety Standards);
‘‘(3) 
RECOMMENDATIONS.—Recommendations
for removing or addressing any potential barriers,
including—
‘‘(A) the implementation of new tech-
nologies with the least disruption to the econ-
omy; and
‘‘(B) the incremental cost of increasing
fuel efficiency.
‘‘(4) Overall recommendations on the value of
pursuing lean burn technology as a means of im-
proving fuel efficiency.
‘‘(b) REPORT.—The Secretary shall submit to Con-
gress, not later than 12 months after the date of enact-
ment of this Act, a report describing the results of the
study under this section, including any appropriate rec-
ommendations, together with the basis for them and their
estimated costs and benefits.’’.
SEC. 202. EXTENSION OF CREDITS FOR FLEXIBLE FUEL VE-
HICLES.
(a) PURPOSE.—The purpose of this section is to ex-
tend the manufacturing incentives for dual fuel vehicles,
as set forth in subsections (b) and (d) of section 32905
of title 49, United States Code, from the 2004 model year
through the 2008 model year, and to extend in like man-
ner the maximum fuel economy increase, as set forth in
subsection (a)(1) of section 32906 of title 49, United
States Code.
(b) AMENDMENTS.—
(1) Section 32905 of title 49, United States
Code, is amended as follows:
(A) Subsections (b) and (d) are each
amended by striking ‘‘model years 1993–2004’’
and inserting ‘‘model years 1993–2008’’.
(B) Subsection (f) is amended by striking
‘Not later than December 31, 2001, the Sec-
retary’ and inserting ‘‘Not later than December
31, 2005, the Secretary shall’’.
(C) Subsection (f)(1) is amended by strik-
ing ‘‘model year 2004’’ and inserting ‘‘model
year 2008’’.
(D) Subsection (g) is amended by striking
‘‘Not later than September 30, 2000’’ and in-
serting ‘‘Not later than September 30, 2004’’.
(2) Subsection (a)(1) of section 32906 of title
49, United States Code, is amended as follows:
(A) Subsection (a)(1)(A) is amended by
striking ‘‘the model years 1993–2004’’ and in-
serting ‘‘model years 1993–2008’’.
(B) Subsection (a)(1)(B) is amended by
striking ‘‘the model years 2005–2008’’ and in-
serting ‘‘2009–2012’’.
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