(3) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 30C the following new item: 
‘‘Sec. 30D. Energy efficient motor vehicles manufacturing credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply to amounts incurred in taxable 
years beginning after December 31, 2007. 
SEC. 103. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS. 
(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) DEFINITIONS
FROM
TITLE
49, UNITED 
STATES CODE.—The terms ‘‘capital project’’, ‘‘local 
governmental authority’’, ‘‘public transportation’’, 
and ‘‘urbanized area’’ have the meanings such terms 
have under section 5302(a) of title 49, United 
States Code. 
(2) STATE.—The term ‘‘State’’ means a State 
of the United States, the District of Columbia, Puer-
to Rico, the Northern Mariana Islands, Guam, 
American Samoa, and the United States Virgin Is-
lands. 
(3) TRANSIT-ORIENTED
DEVELOPMENT
COR-
RIDOR.—The term ‘‘transit-oriented development 
corridor’’ means rights-of-way for fixed-guideway 
public transportation facilities, including commercial 
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development that is connected with any such facility 
physically and functionally. 
(b) IN GENERAL.—In consultation with State trans-
portation departments and metropolitan planning organi-
zations, the Secretary of Transportation shall designate, 
in urbanized areas, at least 20 transit-oriented develop-
ment corridors by 2015 and 50 transit-oriented develop-
ment corridors by 2025. 
(c) TRANSIT GRANTS.—The Secretary of Transpor-
tation shall award grants to a State or local governmental 
authority to construct or improve transit facilities, bicycle 
transportation facilities, and pedestrian walkways in a 
transit-oriented development corridor, including capital 
projects. 
(d) RESEARCH AND DEVELOPMENT.—In order to 
support effective deployment of grants and incentives 
under this section, the Secretary of Transportation shall 
establish a transit-oriented development corridors research 
and development program for the conduct of research on 
best practices and performance criteria for transit-ori-
ented development corridors. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$500,000,000 for each of fiscal years 2008 through 2019, 
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of which $2,000,000 per fiscal year is authorized for the 
research and development program under subsection (d). 
(f) LABOR STANDARDS.—The Secretary of Transpor-
tation shall not provide a grant under this section unless 
the Secretary receives reasonable assurances from a State 
that laborers and mechanics employed by contractors or 
subcontractors in the performance of construction or mod-
ernization on the a transit project will be paid wages not 
less than those prevailing on similar construction or mod-
ernization in the locality as determined by the Secretary 
of Labor under subchapter IV of chapter 31 of title 40, 
United States Code (known as the Davis-Bacon Act). 
SEC. 104. AUTOMOBILE FUEL ECONOMY STANDARDS. 
(a) PHASED INCREASES IN FUEL ECONOMY STAND-
ARDS.— 
(1) PASSENGER AUTOMOBILES.— 
(A) 
MINIMUM
STANDARDS.—Section 
32902(b) of title 49, United States Code, is 
amended to read as follows: 
‘‘(b) PASSENGER AUTOMOBILES.—Except as other-
wise provided under this section, the average fuel economy 
standard for passenger automobiles manufactured by a 
manufacturer in a model year— 
‘‘(1) after model year 1984 and before model 
year 2008 shall be 25 miles per gallon; 
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‘‘(2) after model year 2007 and before model 
year 2011 shall be 28 miles per gallon; 
‘‘(3) after model year 2010 and before model 
year 2014 shall be 32 miles per gallon; 
‘‘(4) after model year 2013 and before model 
year 2017 shall be 36 miles per gallon; and 
‘‘(5) after model year 2016 shall be 40 miles 
per gallon.’’. 
(B) HIGHER STANDARDS SET BY REGULA-
TION.—Section 32902(c) of title 49, United 
States Code, is amended— 
(i) by striking paragraph (2); and 
(ii) in paragraph (1)— 
(I) by striking ‘‘(1) Subject to 
paragraph (2) of this subsection, the’’ 
and inserting ‘‘The’’; and 
(II) by striking ‘‘amending the 
standard’’ and inserting ‘‘increasing 
the standard otherwise applicable’’. 
(b) INCREASED INCLUSIVENESS OF DEFINITIONS OF 
AUTOMOBILE AND PASSENGER AUTOMOBILE.— 
(1) AUTOMOBILE.— 
(A) IN GENERAL.—Section 32901(a)(3) of 
title 49, United States Code, is amended— 
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