SECTION 1. ADVANCED BATTERY LOAN GUARANTEE PRO-
GRAM. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary 
of Energy shall establish a program to provide guarantees 
of loans by private institutions for the construction of fa-
cilities for the manufacture of advanced vehicle batteries 
and battery systems that are developed and produced in 
the United States, including advanced lithium ion bat-
teries and hybrid electrical system and component manu-
facturers and software designers. 
(b) REQUIREMENTS.—The Secretary may provide a 
loan guarantee under subsection (a) to an applicant if— 
(1) without a loan guarantee, credit is not 
available to the applicant under reasonable terms or 
conditions sufficient to finance the construction of a 
facility described in subsection (a); 
(2) the prospective earning power of the appli-
cant and the character and value of the security 
pledged provide a reasonable assurance of repayment 
of the loan to be guaranteed in accordance with the 
terms of the loan; and 
(3) the loan bears interest at a rate determined 
by the Secretary to be reasonable, taking into ac-
count the current average yield on outstanding obli-
gations of the United States with remaining periods 
of maturity comparable to the maturity of the loan. 
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(c) CRITERIA.—In selecting recipients of loan guar-
antees from among applicants, the Secretary shall give 
preference to proposals that— 
(1) meet all applicable Federal and State per-
mitting requirements; 
(2) are most likely to be successful; and 
(3) are located in local markets that have the 
greatest need for the facility. 
(d) MATURITY.—A loan guaranteed under subsection 
(a) shall have a maturity of not more than 20 years. 
(e) TERMS AND CONDITIONS.—The loan agreement 
for a loan guaranteed under subsection (a) shall provide 
that no provision of the loan agreement may be amended 
or waived without the consent of the Secretary. 
(f) ASSURANCE
OF REPAYMENT.—The Secretary 
shall require that an applicant for a loan guarantee under 
subsection (a) provide an assurance of repayment in the 
form of a performance bond, insurance, collateral, or other 
means acceptable to the Secretary in an amount equal to 
not less than 20 percent of the amount of the loan. 
(g) GUARANTEE FEE.—The recipient of a loan guar-
antee under subsection (a) shall pay the Secretary an 
amount determined by the Secretary to be sufficient to 
cover the administrative costs of the Secretary relating to 
the loan guarantee. 
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(h) FULL FAITH AND CREDIT.—The full faith and 
credit of the United States is pledged to the payment of 
all guarantees made under this section. Any such guar-
antee made by the Secretary shall be conclusive evidence 
of the eligibility of the loan for the guarantee with respect 
to principal and interest. The validity of the guarantee 
shall be incontestable in the hands of a holder of the guar-
anteed loan. 
(i) REPORTS.—Until each guaranteed loan under this 
section has been repaid in full, the Secretary shall annu-
ally submit to Congress a report on the activities of the 
Secretary under this section. 
(j) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
(k) TERMINATION OF AUTHORITY.—The authority of 
the Secretary to issue a loan guarantee under subsection 
(a) terminates on the date that is 10 years after the date 
of enactment of this Act. 
SEC. 2. DOMESTIC MANUFACTURING CONVERSION GRANT 
PROGRAM. 
Section 712 of the Energy Policy Act of 2005 (42 
U.S.C. 16062) is amended— 
(1) in subsection (a)— 
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(A) by inserting ‘‘and components thereof’’ 
after ‘‘sales of efficient hybrid and advanced 
diesel vehicles’’; 
(B) by inserting ‘‘and hybrid component 
manufacturers’’ after ‘‘grants to automobile 
manufacturers’’; 
(C) by inserting ‘‘, plug-in electric hybrid,’’ 
after ‘‘production of efficient hybrid’’; 
(D) by inserting ‘‘and suppliers’’ after 
‘‘automobile manufacturers’’; and 
(E) by adding at the end the following: 
‘‘Priority shall be given to the refurbishment or 
retooling of manufacturing facilities that have 
recently ceased operation or will cease operation 
in the near future.’’; and 
(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) COORDINATION WITH STATE AND LOCAL PRO-
GRAMS.—The Secretary may coordinate implementation of 
this section with State and local programs designed to ac-
complish similar goals, including the retention and retrain-
ing of skilled workers from the such manufacturing facili-
ties, including by establishing matching grant arrange-
ments. 
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‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as may be necessary to carry out this section.’’. 
SEC. 3. PLUG-IN HYBRID VEHICLE PROGRAM. 
(a) PLUG-IN
ELECTRIC
DRIVE
VEHICLE
PRO-
GRAM.— 
(1) ESTABLISHMENT.—The Secretary of En-
ergy (in this section referred to as the ‘‘Secretary’’) 
shall establish a competitive program to provide 
grants on a cost-shared basis to State governments, 
local governments, metropolitan transportation au-
thorities, air pollution control districts, private or 
nonprofit entities or combinations thereof, to carry 
out a project or projects to encourage the use of 
plug-in electric drive vehicles or other emerging elec-
tric vehicle technologies, as determined by the Sec-
retary. 
(2) ADMINISTRATION.—The Secretary shall es-
tablish requirements for applications for grants 
under this section, including reporting of data to be 
summarized for dissemination to the Department, 
other grantees, and the public, including vehicle and 
component performance and vehicle and component 
life cycle costs. 
(3) SELECTION CRITERIA.— 
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(A) PRIORITY.—When making awards 
under this subsection, the Secretary shall give 
priority consideration to applications that en-
courage early widespread utilization of such ve-
hicles and are likely to make a significant con-
tribution to the advancement of the production 
of such vehicles in the United States. 
(B) SCOPE OF PROGRAMS.—When making 
awards under this subsection, the Secretary 
shall ensure that the programs will maximize 
diversity in applications, manufacturers, end- 
uses and vehicle control systems. 
(4) AUTHORIZATIONS
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary to carry out the program under this sub-
section, such sums as may be necessary. 
(5) CERTAIN APPLICANTS.—A battery manufac-
turer that proposes to supply to an applicant for a 
grant under this section a battery with a capacity of 
greater than 1 kilowatt-hour for use in a plug-in 
electric drive vehicle shall— 
(A) ensure that the applicant includes in 
the application a description of the price of the 
battery per kilowatt hour; 
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(B) on approval by the Secretary of the 
application, publish, or permit the Secretary to 
publish, the price described in subparagraph 
(A); and 
(C) for any order received by the battery 
manufacturer for at least 1,000 batteries, offer 
batteries at that price. 
(b) ELECTRIC DRIVE EDUCATION PROGRAM.— 
(1) IN GENERAL.—The Secretary shall develop 
a nationwide electric drive transportation education 
program under which the Secretary shall provide— 
(A) teaching materials to secondary schools 
and high schools; and 
(B) assistance for programs relating to 
electric drive system and component engineer-
ing to institutions of higher education. 
(2) ELECTRIC
VEHICLE
COMPETITION.—The 
program established under paragraph (1) shall in-
clude a plug-in hybrid electric vehicle competition for 
institutions of higher education, which shall be 
known as the ‘‘Dr. Andrew Frank Plug-In Hybrid 
Electric Vehicle Competition’’. 
(3) ENGINEERS.—In carrying out the program 
established under paragraph (1), the Secretary shall 
provide financial assistance to institutions of higher 
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education to create new, or support existing, degree 
programs to ensure the availability of trained elec-
trical and mechanical engineers with the skills nec-
essary for the advancement of— 
(A) plug-in electric drive vehicles; and 
(B) other forms of electric drive vehicles. 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary to carry out this subsection such sums as may 
be necessary. 
SEC. 4. PLUG-IN HYBRID DEMONSTRATION VEHICLES. 
(a) IN GENERAL.—The Secretary of Energy shall es-
tablish a program to make grants to owners of domestic 
motor vehicle manufacturing or production facilities for 
the production of plug-in hybrid electric motors or conver-
sion modules to be used as electricity storage capacity for 
utilities. 
(b) PROGRAMS.—The Secretary of Energy shall es-
tablish programs to determine how to best integrate plug- 
in hybrid vehicles into the electric power grid and into the 
overall electricity infrastructure. These programs shall be 
conducted in 5 separate regions across the United States 
at the discretion of the Secretary. 
(c) PILOT PROGRAMS.—The Secretary shall establish 
during the first 6 months of 2008, with other govern-
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mental entities, no less than 5 separate pilot programs to 
convert at least 1000 vehicles in each program to plug- 
hybrid electric vehicles. 
(d) FEDERAL CONTRIBUTION.—The Department of 
Energy shall contribute up to 50 percent of the cost of 
conversion modules. 
(e) INSTALLATION.—Installations of electricity stor-
age devices shall be undertaken by trained and certified 
mechanics. 
(f) MONITORING.—The Secretary of Energy shall re-
quire the monitoring of reliability, efficiency, breakeven 
costs, and customer satisfaction for a period of 3 years. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as may be necessary to carry out this section. 
SEC. 5. INCENTIVE FOR FEDERAL AND STATE FLEETS FOR 
MEDIUM AND HEAVY DUTY HYBRIDS. 
Section 301 of the Energy Policy Act of 1992 (42 
U.S.C. 13211) is amended— 
(1) in paragraph (3), by striking ‘‘or a dual 
fueled vehicle’’ and inserting ‘‘, a dual fueled vehicle, 
or a medium or heavy duty vehicle that is a hybrid 
vehicle’’; 
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(2) by redesignating paragraphs (11), (12), 
(13), and (14) as paragraphs (12), (14), (15), and 
(16), respectively; 
(3) by inserting after paragraph (10) the fol-
lowing new paragraph: 
‘‘(11) the term ‘hybrid vehicle’ means a vehicle 
powered both by a diesel or gasoline engine and an 
electric motor or hydraulic energy storage device 
that is recharged as the vehicle operates;’’; and 
(4) by inserting after paragraph (12) (as so re-
designated by paragraph (2) of this section) the fol-
lowing new paragraph: 
‘‘(13) the term ‘medium or heavy duty vehicle’ 
means a vehicle that— 
‘‘(A) in the case of a medium duty vehicle, 
has a gross vehicle weight rating of more than 
8,500 pounds but not more than 14,000 
pounds; and 
‘‘(B) in the case of a heavy duty vehicle, 
has a gross vehicle weight rating of more than 
14,000 pounds;’’. 
SEC. 6. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY 
ACT OF 1992. 
Section 508 of the Energy Policy Act of 1992 (42 
U.S.C. 13258) is amended— 
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(1) by striking ‘‘The Secretary’’ in subsection 
(a) and inserting ‘‘(1) The Secretary’’; and 
(2) by adding at the end of subsection (a) the 
following: 
‘‘(2) Not later than January 31, 2009, the Secretary 
shall allocate credit in an amount to be determined by the 
Secretary for acquisition of— 
‘‘(A) a hybrid electric vehicle; 
‘‘(B) a plug-in hybrid electric vehicle; 
‘‘(C) a fuel cell electric vehicle; 
‘‘(D) a neighborhood electric vehicle; or 
‘‘(E) a medium-duty or heavy-duty electric, hy-
brid electric, hybrid hydraulic, or plug-in hybrid elec-
tric vehicle.’’; and 
(3) by adding at the end the following: 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) FUEL
CELL
ELECTRIC
VEHICLE.—The 
term ‘fuel cell electric vehicle’ means an on-road or 
nonroad vehicle that uses a fuel cell (as defined in 
section 803 of the Spark M. Matsunaga Hydrogen 
Research, Development, and Demonstration Act of 
2005 (42 U.S.C. 16152)). 
‘‘(2) HYBRID ELECTRIC VEHICLE.—The term 
‘hybrid electric vehicle’ means a new qualified hybrid 
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motor vehicle (as defined in section 30B(d)(3) of the 
Internal Revenue Code of 1986). 
‘‘(3) MEDIUM-DUTY OR HEAVY-DUTY ELECTRIC, 
HYBRID ELECTRIC, OR PLUG-IN HYBRID ELECTRIC 
VEHICLE.—The term ‘medium-duty or heavy-duty 
electric, hybrid electric, or plug-in hybrid electric ve-
hicle’ is an electric, hybrid electric, or plug-in hybrid 
electric motor vehicle greater than 8,501 pounds 
gross vehicle rating. 
‘‘(4) NEIGHBORHOOD
ELECTRIC
VEHICLE.— 
The term ‘neighborhood electric vehicle’ means a 4- 
wheeled on-road or nonroad vehicle, with a top at-
tainable speed in 1 mile of more than 20 mph and 
not more than 25 mph on a paved level surface, that 
is propelled by an electric motor and on board, re-
chargeable energy storage system that is recharge-
able using an off-board source of electricity. 
‘‘(5) PLUG-IN
HYBRID
ELECTRIC
VEHICLE.— 
The term ‘plug-in hybrid electric vehicle’ means a 
light-duty, medium-duty, or heavy-duty on-road or 
nonroad vehicle that is propelled by any combination 
of— 
‘‘(A) an electric motor and on-board, re-
chargeable energy storage system capable of op-
erating the vehicle in intermittent or continuous 
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(8) any distribution upgrades needed to supply 
electricity to the qualified electric transportation 
projects; and 
(9) any ancillary infrastructure, including panel 
upgrades, battery chargers, in-situ transformer, and 
trenching. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to carry this section such sums as may be 
necessary. 
SEC. 8. STUDYING THE BENEFITS OF PLUG-IN HYBRID 
ELECTRIC DRIVE VEHICLES AND ELECTRIC 
DRIVE TRANSPORTATION. 
(a) STUDY.— 
(1) CITY CARS.—Not later than 1 year after the 
date of enactment of this section, the Secretary of 
Transportation in consultation with the Secretary of 
Energy and appropriate Federal agencies and inter-
ested stakeholders in the public, private and non- 
profit sectors, shall study and report to Congress on 
the benefits of and barriers to the widespread use of 
a potentially new class of vehicles known as city cars 
with performance capability that exceeds that of low 
speed vehicles but is less than that of passenger ve-
hicles, and which may be battery electric, fuel cell 
electric, or plug-in hybrid electric vehicles. Such 
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study shall examine the benefits and issues associ-
ated with limiting city cars to a maximum speed of 
35 mph, 45 mph, 55 mph, or any other maximum 
speed, and make a recommendation regarding max-
imum speed. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
Such sums as may be necessary are authorized to be 
appropriated to carry out this subsection. 
(b) DEFINITIONS.—In this section— 
(1) NONROAD VEHICLE.—The term ‘‘nonroad 
vehicle’’ has the meaning given that term in section 
216 of the Clean Air Act (42 U.S.C. 7550), or vehi-
cles of the same classification that are fully or par-
tially powered by an electric motor powered by a fuel 
cell, a battery, or an off-board source of electricity. 
(2) PLUG-IN ELECTRIC DRIVE VEHICLE.—The 
term ‘‘plug-in electric drive vehicle’’ means a means 
a light-duty, medium-duty, or heavy-duty on-road or 
nonroad battery electric, hybrid or fuel cell vehicle 
that can be recharged from an external electricity 
source for motive power. 
(3) PLUG-IN HYBRID ELECTRIC VEHICLE.—The 
term ‘‘plug-in hybrid electric vehicle’’ means a light- 
duty, medium-duty, or heavy-duty on-road or 
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nonroad vehicle that is propelled by any combination 
of— 
(A) an electric motor and on-board, re-
chargeable energy storage system capable of op-
erating the vehicle in intermittent or continuous 
all-electric mode and which is rechargeable 
using an off-board source of electricity; and 
(B) an internal combustion engine or heat 
engine using any combustible fuel. 
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Union Calendar No. 194 
110TH CONGRESS 
1ST SESSION 
H. R. 3239 
[Report No. 110–307, Part I] 
A BILL 
To promote advanced plug-in hybrid vehicles and 
vehicle components. 
AUGUST 3, 2007 
Committees on Oversight and Government Reform and 
Science and Technology discharged; committed to the 
Committee of the Whole House on the State of the 
Union and ordered to be printed 
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