In the Senate of the United States,
December 13, 2007.
Resolved, That the Senate agrees to the amendments
of the House of Representatives to the amendments of the
Senate to the bill (H.R. 6) entitled ‘‘An Act to reduce our
Nation’s dependency on foreign oil by investing in clean, re-
newable, and alternative energy resources, promoting new
emerging energy technologies, developing greater efficiency,
and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other pur-
poses.’’, with the following
SENATE AMENDMENT TO HOUSE AMENDMENTS TO
SENATE AMENDMENTS:
In lieu of the matter proposed to be inserted by the
House amendment to the text of the bill, insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘En-
ergy Independence and Security Act of 2007’’.
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(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Relationship to other law.
TITLE I—ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL
ECONOMY
Subtitle A—Increased Corporate Average Fuel Economy Standards
Sec. 101. Short title.
Sec. 102. Average fuel economy standards for automobiles and certain other vehi-
cles.
Sec. 103. Definitions.
Sec. 104. Credit trading program.
Sec. 105. Consumer information.
Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies.
Sec. 108. National Academy of Sciences study of medium-duty and heavy-duty
truck fuel economy.
Sec. 109. Extension of flexible fuel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling procedures.
Sec. 111. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption from separate calculation requirement.
Subtitle B—Improved Vehicle Technology
Sec. 131. Transportation electrification.
Sec. 132. Domestic manufacturing conversion grant program.
Sec. 133. Inclusion of electric drive in Energy Policy Act of 1992.
Sec. 134. Loan guarantees for fuel-efficient automobile parts manufacturers.
Sec. 135. Advanced battery loan guarantee program.
Sec. 136. Advanced technology vehicles manufacturing incentive program.
Subtitle C—Federal Vehicle Fleets
Sec. 141. Federal vehicle fleets.
Sec. 142. Federal fleet conservation requirements.
TITLE II—ENERGY SECURITY THROUGH INCREASED PRODUCTION
OF BIOFUELS
Subtitle A—Renewable Fuel Standard
Sec. 201. Definitions.
Sec. 202. Renewable fuel standard.
Sec. 203. Study of impact of Renewable Fuel Standard.
Sec. 204. Environmental and resource conservation impacts.
Sec. 205. Biomass based diesel and biodiesel labeling.
Sec. 206. Study of credits for use of renewable electricity in electric vehicles.
Sec. 207. Grants for production of advanced biofuels.
Sec. 208. Integrated consideration of water quality in determinations on fuels
and fuel additives.
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Sec. 209. Anti-backsliding.
Sec. 210. Effective date, savings provision, and transition rules.
Subtitle B—Biofuels Research and Development
Sec. 221. Biodiesel.
Sec. 222. Biogas.
Sec. 223. Grants for biofuel production research and development in certain
States.
Sec. 224. Biorefinery energy efficiency.
Sec. 225. Study of optimization of flexible fueled vehicles to use E–85 fuel.
Sec. 226. Study of engine durability and performance associated with the use of
biodiesel.
Sec. 227. Study of optimization of biogas used in natural gas vehicles.
Sec. 228. Algal biomass.
Sec. 229. Biofuels and biorefinery information center.
Sec. 230. Cellulosic ethanol and biofuels research.
Sec. 231. Bioenergy research and development, authorization of appropriation.
Sec. 232. Environmental research and development.
Sec. 233. Bioenergy research centers.
Sec. 234. University based research and development grant program.
Subtitle C—Biofuels Infrastructure
Sec. 241. Prohibition on franchise agreement restrictions related to renewable fuel
infrastructure.
Sec. 242. Renewable fuel dispenser requirements.
Sec. 243. Ethanol pipeline feasibility study.
Sec. 244. Renewable fuel infrastructure grants.
Sec. 245. Study of the adequacy of transportation of domestically-produced re-
newable fuel by railroads and other modes of transportation.
Sec. 246. Federal fleet fueling centers.
Sec. 247. Standard specifications for biodiesel.
Sec. 248. Biofuels distribution and advanced biofuels infrastructure.
Subtitle D—Environmental Safeguards
Sec. 251. Waiver for fuel or fuel additives.
TITLE III—ENERGY SAVINGS THROUGH IMPROVED STANDARDS
FOR APPLIANCE AND LIGHTING
Subtitle A—Appliance Energy Efficiency
Sec. 301. External power supply efficiency standards.
Sec. 302. Updating appliance test procedures.
Sec. 303. Residential boilers.
Sec. 304. Furnace fan standard process.
Sec. 305. Improving schedule for standards updating and clarifying State author-
ity.
Sec. 306. Regional standards for furnaces, central air conditioners, and heat
pumps.
Sec. 307. Procedure for prescribing new or amended standards.
Sec. 308. Expedited rulemakings.
Sec. 309. Battery chargers.
Sec. 310. Standby mode.
Sec. 311. Energy standards for home appliances.
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Sec. 312. Walk-in coolers and walk-in freezers.
Sec. 313. Electric motor efficiency standards.
Sec. 314. Standards for single package vertical air conditioners and heat pumps.
Sec. 315. Improved energy efficiency for appliances and buildings in cold cli-
mates.
Sec. 316. Technical corrections.
Subtitle B—Lighting Energy Efficiency
Sec. 321. Efficient light bulbs.
Sec. 322. Incandescent reflector lamp efficiency standards.
Sec. 323. Public building energy efficient and renewable energy systems.
Sec. 324. Metal halide lamp fixtures.
Sec. 325. Energy efficiency labeling for consumer electronic products.
TITLE IV—ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
Sec. 401. Definitions.
Subtitle A—Residential Building Efficiency
Sec. 411. Reauthorization of weatherization assistance program.
Sec. 412. Study of renewable energy rebate programs.
Sec. 413. Energy code improvements applicable to manufactured housing.
Subtitle B—High-Performance Commercial Buildings
Sec. 421. Commercial high-performance green buildings.
Sec. 422. Zero Net Energy Commercial Buildings Initiative.
Sec. 423. Public outreach.
Subtitle C—High-Performance Federal Buildings
Sec. 431. Energy reduction goals for Federal buildings.
Sec. 432. Management of energy and water efficiency in Federal buildings.
Sec. 433. Federal building energy efficiency performance standards.
Sec. 434. Management of Federal building efficiency.
Sec. 435. Leasing.
Sec. 436. High-performance green Federal buildings.
Sec. 437. Federal green building performance.
Sec. 438. Storm water runoff requirements for Federal development projects.
Sec. 439. Cost-effective technology acceleration program.
Sec. 440. Authorization of appropriations.
Sec. 441. Public building life-cycle costs.
Subtitle D—Industrial Energy Efficiency
Sec. 451. Industrial energy efficiency.
Sec. 452. Energy-intensive industries program.
Sec. 453. Energy efficiency for data center buildings.
Subtitle E—Healthy High-Performance Schools
Sec. 461. Healthy high-performance schools.
Sec. 462. Study on indoor environmental quality in schools.
Subtitle F—Institutional Entities
Sec. 471. Energy sustainability and efficiency grants and loans for institutions.
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Subtitle G—Public and Assisted Housing
Sec. 481. Application of International Energy Conservation Code to public and
assisted housing.
Subtitle H—General Provisions
Sec. 491. Demonstration project.
Sec. 492. Research and development.
Sec. 493. Environmental Protection Agency demonstration grant program for
local governments.
Sec. 494. Green Building Advisory Committee.
Sec. 495. Advisory Committee on Energy Efficiency Finance.
TITLE V—ENERGY SAVINGS IN GOVERNMENT AND PUBLIC
INSTITUTIONS
Subtitle A—United States Capitol Complex
Sec. 501. Capitol complex photovoltaic roof feasibility studies.
Sec. 502. Capitol complex E–85 refueling station.
Sec. 503. Energy and environmental measures in Capitol complex master plan.
Sec. 504. Promoting maximum efficiency in operation of Capitol power plant.
Sec. 505. Capitol power plant carbon dioxide emissions feasibility study and
demonstration projects.
Subtitle B—Energy Savings Performance Contracting
Sec. 511. Authority to enter into contracts; reports.
Sec. 512. Financing flexibility.
Sec. 513. Promoting long-term energy savings performance contracts and
verifying savings.
Sec. 514. Permanent reauthorization.
Sec. 515. Definition of energy savings.
Sec. 516. Retention of savings.
Sec. 517. Training Federal contracting officers to negotiate energy efficiency con-
tracts.
Sec. 518. Study of energy and cost savings in nonbuilding applications.
Subtitle C—Energy Efficiency in Federal Agencies
Sec. 521. Installation of photovoltaic system at Department of Energy head-
quarters building.
Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. Standard relating to solar hot water heaters.
Sec. 524. Federally-procured appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. OMB government efficiency reports and scorecards.
Sec. 529. Electricity sector demand response.
Subtitle D—Energy Efficiency of Public Institutions
Sec. 531. Reauthorization of State energy programs.
Sec. 532. Utility energy efficiency programs.
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Subtitle E—Energy Efficiency and Conservation Block Grants
Sec. 541. Definitions.
Sec. 542. Energy Efficiency and Conservation Block Grant Program.
Sec. 543. Allocation of funds.
Sec. 544. Use of funds.
Sec. 545. Requirements for eligible entities.
Sec. 546. Competitive grants.
Sec. 547. Review and evaluation.
Sec. 548. Funding.
TITLE VI—ACCELERATED RESEARCH AND DEVELOPMENT
Subtitle A—Solar Energy
Sec. 601. Short title.
Sec. 602. Thermal energy storage research and development program.
Sec. 603. Concentrating solar power commercial application studies.
Sec. 604. Solar energy curriculum development and certification grants.
Sec. 605. Daylighting systems and direct solar light pipe technology.
Sec. 606. Solar Air Conditioning Research and Development Program.
Sec. 607. Photovoltaic demonstration program.
Subtitle B—Geothermal Energy
Sec. 611. Short title.
Sec. 612. Definitions.
Sec. 613. Hydrothermal research and development.
Sec. 614. General geothermal systems research and development.
Sec. 615. Enhanced geothermal systems research and development.
Sec. 616. Geothermal energy production from oil and gas fields and recovery and
production of geopressured gas resources.
Sec. 617. Cost sharing and proposal evaluation.
Sec. 618. Center for geothermal technology transfer.
Sec. 619. GeoPowering America.
Sec. 620. Educational pilot program.
Sec. 621. Reports.
Sec. 622. Applicability of other laws.
Sec. 623. Authorization of appropriations.
Sec. 624. International geothermal energy development.
Sec. 625. High cost region geothermal energy grant program.
Subtitle C—Marine and Hydrokinetic Renewable Energy Technologies
Sec. 631. Short title.
Sec. 632. Definition.
Sec. 633. Marine and hydrokinetic renewable energy research and development.
Sec. 634. National Marine Renewable Energy Research, Development, and Dem-
onstration Centers.
Sec. 635. Applicability of other laws.
Sec. 636. Authorization of appropriations.
Subtitle D—Energy Storage for Transportation and Electric Power
Sec. 641. Energy storage competitiveness.
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Subtitle E—Miscellaneous Provisions
Sec. 651. Lightweight materials research and development.
Sec. 652. Commercial insulation demonstration program.
Sec. 653. Technical criteria for clean coal power Initiative.
Sec. 654. H-Prize.
Sec. 655. Bright Tomorrow Lighting Prizes.
Sec. 656. Renewable Energy innovation manufacturing partnership.
TITLE VII—CARBON CAPTURE AND SEQUESTRATION
Subtitle A—Carbon Capture and Sequestration Research, Development, and
Demonstration
Sec. 701. Short title.
Sec. 702. Carbon capture and sequestration research, development, and dem-
onstration program.
Sec. 703. Carbon capture.
Sec. 704. Review of large-scale programs.
Sec. 705. Geologic sequestration training and research.
Sec. 706. Relation to Safe Drinking Water Act.
Sec. 707. Safety research.
Sec. 708. University based research and development grant program.
Subtitle B—Carbon Capture and Sequestration Assessment and Framework
Sec. 711. Carbon dioxide sequestration capacity assessment.
Sec. 712. Assessment of carbon sequestration and methane and nitrous oxide
emissions from ecosystems.
Sec. 713. Carbon dioxide sequestration inventory.
Sec. 714. Framework for geological carbon sequestration on public land.
TITLE VIII—IMPROVED MANAGEMENT OF ENERGY POLICY
Subtitle A—Management Improvements
Sec. 801. National media campaign.
Sec. 802. Alaska Natural Gas Pipeline administration.
Sec. 803. Renewable energy deployment.
Sec. 804. Coordination of planned refinery outages.
Sec. 805. Assessment of resources.
Sec. 806. Sense of Congress relating to the use of renewable resources to generate
energy.
Sec. 807. Geothermal assessment, exploration information, and priority activities.
Subtitle B—Prohibitions on Market Manipulation and False Information
Sec. 811. Prohibition on market manipulation.
Sec. 812. Prohibition on false information.
Sec. 813. Enforcement by the Federal Trade Commission.
Sec. 814. Penalties.
Sec. 815. Effect on other laws.
TITLE IX—INTERNATIONAL ENERGY PROGRAMS
Sec. 901. Definitions.
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Subtitle A—Assistance to Promote Clean and Efficient Energy Technologies in
Foreign Countries
Sec. 911. United States assistance for developing countries.
Sec. 912. United States exports and outreach programs for India, China, and
other countries.
Sec. 913. United States trade missions to encourage private sector trade and in-
vestment.
Sec. 914. Actions by Overseas Private Investment Corporation.
Sec. 915. Actions by United States Trade and Development Agency.
Sec. 916. Deployment of international clean and efficient energy technologies and
investment in global energy markets.
Sec. 917. United States-Israel energy cooperation.
Subtitle B—International Clean Energy Foundation
Sec. 921. Definitions.
Sec. 922. Establishment and management of Foundation.
Sec. 923. Duties of Foundation.
Sec. 924. Annual report.
Sec. 925. Powers of the Foundation; related provisions.
Sec. 926. General personnel authorities.
Sec. 927. Authorization of appropriations.
Subtitle C—Miscellaneous Provisions
Sec. 931. Energy diplomacy and security within the Department of State.
Sec. 932. National Security Council reorganization.
Sec. 933. Annual national energy security strategy report.
Sec. 934. Convention on Supplementary Compensation for Nuclear Damage con-
tingent cost allocation.
Sec. 935. Transparency in extractive industries resource payments.
TITLE X—GREEN JOBS
Sec. 1001. Short title.
Sec. 1002. Energy efficiency and renewable energy worker training program.
TITLE XI—ENERGY TRANSPORTATION AND INFRASTRUCTURE
Subtitle A—Department of Transportation
Sec. 1101. Office of Climate Change and Environment.
Subtitle B—Railroads
Sec. 1111. Advanced technology locomotive grant pilot program.
Sec. 1112. Capital grants for class II and class III railroads.
Subtitle C—Marine Transportation
Sec. 1121. Short sea transportation initiative.
Sec. 1122. Short sea shipping eligibility for capital construction fund.
Sec. 1123. Short sea transportation report.
Subtitle D—Highways
Sec. 1131. Increased Federal share for CMAQ projects.
Sec. 1132. Distribution of rescissions.
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Sec. 1133. Sense of Congress regarding use of complete streets design techniques.
TITLE XII—SMALL BUSINESS ENERGY PROGRAMS
Sec. 1201. Express loans for renewable energy and energy efficiency.
Sec. 1202. Pilot program for reduced 7(a) fees for purchase of energy efficient
technologies.
Sec. 1203. Small business energy efficiency.
Sec. 1204. Larger 504 loan limits to help business develop energy efficient tech-
nologies and purchases.
Sec. 1205. Energy saving debentures.
Sec. 1206. Investments in energy saving small businesses.
Sec. 1207. Renewable fuel capital investment company.
Sec. 1208. Study and report.
TITLE XIII—SMART GRID
Sec. 1301. Statement of policy on modernization of electricity grid.
Sec. 1302. Smart grid system report.
Sec. 1303. Smart grid advisory committee and smart grid task force.
Sec. 1304. Smart grid technology research, development, and demonstration.
Sec. 1305. Smart grid interoperability framework.
Sec. 1306. Federal matching fund for smart grid investment costs.
Sec. 1307. State consideration of smart grid.
Sec. 1308. Study of the effect of private wire laws on the development of combined
heat and power facilities.
Sec. 1309. DOE study of security attributes of smart grid systems.
TITLE XIV—POOL AND SPA SAFETY
Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.
Sec. 1404. Federal swimming pool and spa drain cover standard.
Sec. 1405. State swimming pool safety grant program.
Sec. 1406. Minimum State law requirements.
Sec. 1407. Education program.
Sec. 1408. CPSC report.
TITLE XV—REVENUE PROVISIONS
Sec. 1500. Amendment of 1986 Code.
Sec. 1501. Extension of additional 0.2 percent FUTA surtax.
Sec. 1502. 7-year amortization of geological and geophysical expenditures for cer-
tain major integrated oil companies.
TITLE XVI—EFFECTIVE DATE
Sec. 1601. Effective date.
SEC. 2. DEFINITIONS.
In this Act:
(1) DEPARTMENT.—The term ‘‘Department’’
means the Department of Energy.
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(2) INSTITUTION OF HIGHER EDUCATION.—The
term ‘‘institution of higher education’’ has the mean-
ing given the term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
SEC. 3. RELATIONSHIP TO OTHER LAW.
Except to the extent expressly provided in this Act or
an amendment made by this Act, nothing in this Act or
an amendment made by this Act supersedes, limits the au-
thority provided or responsibility conferred by, or author-
izes any violation of any provision of law (including a reg-
ulation), including any energy or environmental law or
regulation.
TITLE 
I—ENERGY 
SECURITY
THROUGH IMPROVED VEHI-
CLE FUEL ECONOMY
Subtitle A—Increased Corporate
Average Fuel Economy Standards
SEC. 101. SHORT TITLE.
This subtitle may be cited as the ‘‘Ten-in-Ten Fuel
Economy Act’’.
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SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTO-
MOBILES AND CERTAIN OTHER VEHICLES.
(a) INCREASED STANDARDS.—Section 32902 of title
49, United States Code, is amended—
(1) in subsection (a)—
(A) by striking ‘‘NON-PASSENGER AUTO-
MOBILES.—’’ and inserting ‘‘PRESCRIPTION OF
STANDARDS BY REGULATION.—’’;
(B) by striking ‘‘(except passenger auto-
mobiles)’’ in subsection (a); and
(C) by striking the last sentence;
(2) by striking subsection (b) and inserting the
following:
‘‘(b) STANDARDS FOR AUTOMOBILES AND CERTAIN
OTHER VEHICLES.—
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation, after consultation with the Secretary of En-
ergy and the Administrator of the Environmental
Protection Agency, shall prescribe separate average
fuel economy standards for—
‘‘(A) passenger automobiles manufactured
by manufacturers in each model year beginning
with model year 2011 in accordance with this
subsection;
‘‘(B) non-passenger automobiles manufac-
tured by manufacturers in each model year be-
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ginning with model year 2011 in accordance
with this subsection; and
‘‘(C) work trucks and commercial medium-
duty or heavy-duty on-highway vehicles in ac-
cordance with subsection (k).
‘‘(2) FUEL
ECONOMY
STANDARDS
FOR
AUTO-
MOBILES.—
‘‘(A) AUTOMOBILE FUEL ECONOMY AVERAGE
FOR
MODEL
YEARS
2011
THROUGH
2020.—The
Secretary shall prescribe a separate average fuel
economy standard for passenger automobiles and
a separate average fuel economy standard for
non-passenger automobiles for each model year
beginning with model year 2011 to achieve a
combined fuel economy average for model year
2020 of at least 35 miles per gallon for the total
fleet of passenger and non-passenger automobiles
manufactured for sale in the United States for
that model year.
‘‘(B) AUTOMOBILE FUEL ECONOMY AVERAGE
FOR
MODEL
YEARS
2021
THROUGH
2030.—For
model years 2021 through 2030, the average fuel
economy required to be attained by each fleet of
passenger and non-passenger automobiles manu-
factured for sale in the United States shall be the
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maximum feasible average fuel economy stand-
ard for each fleet for that model year.
‘‘(C) PROGRESS
TOWARD
STANDARD
RE-
QUIRED.—In prescribing average fuel economy
standards under subparagraph (A), the Sec-
retary shall prescribe annual fuel economy
standard increases that increase the applicable
average fuel economy standard ratably beginning
with model year 2011 and ending with model
year 2020.
‘‘(3) AUTHORITY OF THE SECRETARY.—The Sec-
retary shall—
‘‘(A) prescribe by regulation separate aver-
age fuel economy standards for passenger and
non-passenger automobiles based on 1 or more
vehicle attributes related to fuel economy and ex-
press each standard in the form of a mathe-
matical function; and
‘‘(B) issue regulations under this title pre-
scribing average fuel economy standards for at
least 1, but not more than 5, model years.
‘‘(4) MINIMUM STANDARD.—In addition to any
standard prescribed pursuant to paragraph (3), each
manufacturer shall also meet the minimum standard
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for domestically manufactured passenger automobiles,
which shall be the greater of—
‘‘(A) 27.5 miles per gallon; or
‘‘(B) 92 percent of the average fuel economy
projected by the Secretary for the combined do-
mestic and non-domestic passenger automobile
fleets manufactured for sale in the United States
by all manufacturers in the model year, which
projection shall be published in the Federal Reg-
ister when the standard for that model year is
promulgated in accordance with this section.’’;
and
(3) in subsection (c)—
(A) by striking ‘‘(1) Subject to paragraph
(2) of this subsection, the’’ and inserting ‘‘The’’;
and
(B) by striking paragraph (2).
(b) FUEL ECONOMY STANDARD FOR COMMERCIAL ME-
DIUM-DUTY
AND HEAVY-DUTY ON-HIGHWAY VEHICLES
AND WORK TRUCKS.—Section 32902 of title 49, United
States Code, is amended by adding at the end the following:
‘‘(k) COMMERCIAL MEDIUM- AND HEAVY-DUTY ON-
HIGHWAY VEHICLES AND WORK TRUCKS.—
‘‘(1) STUDY.—Not later than 1 year after the
National Academy of Sciences publishes the results of
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its study under section 108 of the Ten-in-Ten Fuel
Economy Act, the Secretary of Transportation, in
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agen-
cy, shall examine the fuel efficiency of commercial
medium- and heavy-duty on-highway vehicles and
work trucks and determine—
‘‘(A) the appropriate test procedures and
methodologies for measuring the fuel efficiency of
such vehicles and work trucks;
‘‘(B) the appropriate metric for measuring
and expressing commercial medium- and heavy-
duty on-highway vehicle and work truck fuel effi-
ciency performance, taking into consideration,
among other things, the work performed by such
on-highway vehicles and work trucks and types
of operations in which they are used;
‘‘(C) the range of factors, including, without
limitation, design, functionality, use, duty cycle,
infrastructure, and total overall energy consump-
tion and operating costs that affect commercial
medium- and heavy-duty on-highway vehicle and
work truck fuel efficiency; and
‘‘(D) such other factors and conditions that
could have an impact on a program to improve
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commercial medium- and heavy-duty on-high-
way vehicle and work truck fuel efficiency.
‘‘(2) RULEMAKING.—Not later than 24 months
after completion of the study required under para-
graph (1), the Secretary, in consultation with the Sec-
retary of Energy and the Administrator of the Envi-
ronmental Protection Agency, by regulation, shall de-
termine in a rulemaking proceeding how to imple-
ment a commercial medium- and heavy-duty on-high-
way vehicle and work truck fuel efficiency improve-
ment program designed to achieve the maximum fea-
sible improvement, and shall adopt and implement
appropriate test methods, measurement metrics, fuel
economy standards, and compliance and enforcement
protocols that are appropriate, cost-effective, and tech-
nologically feasible for commercial medium- and
heavy-duty on-highway vehicles and work trucks. The
Secretary may prescribe separate standards for dif-
ferent classes of vehicles under this subsection.
‘‘(3) LEAD-TIME; REGULATORY STABILITY.—The
commercial medium- and heavy-duty on-highway ve-
hicle and work truck fuel economy standard adopted
pursuant to this subsection shall provide not less
than—
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‘‘(A) 4 full model years of regulatory lead-
time; and
‘‘(B) 3 full model years of regulatory sta-
bility.’’.
SEC. 103. DEFINITIONS.
(a) IN GENERAL.—Section 32901(a) of title 49, United
States Code, is amended—
(1) by striking paragraph (3) and inserting the
following:
‘‘(3) except as provided in section 32908 of this
title, ‘automobile’ means a 4-wheeled vehicle that is
propelled by fuel, or by alternative fuel, manufactured
primarily for use on public streets, roads, and high-
ways and rated at less than 10,000 pounds gross vehi-
cle weight, except—
‘‘(A) a vehicle operated only on a rail line;
‘‘(B) a vehicle manufactured in different
stages by 2 or more manufacturers, if no inter-
mediate or final-stage manufacturer of that vehi-
cle manufactures more than 10,000 multi-stage
vehicles per year; or
‘‘(C) a work truck.’’;
(2) by redesignating paragraphs (7) through (16)
as paragraphs (8) through (17), respectively;
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(3) by inserting after paragraph (6) the fol-
lowing:
‘‘(7) ‘commercial medium- and heavy-duty on-
highway vehicle’ means an on-highway vehicle with a
gross vehicle weight rating of 10,000 pounds or
more.’’;
(4) in paragraph (9)(A), as redesignated, by in-
serting ‘‘or a mixture of biodiesel and diesel fuel meet-
ing the standard established by the American Society
for Testing and Materials or under section 211(u) of
the Clean Air Act (42 U.S.C. 7545(u)) for fuel con-
taining 20 percent biodiesel (commonly known as
‘B20’)’’ after ‘‘alternative fuel’’;
(5) by redesignating paragraph (17), as redesig-
nated, as paragraph (18);
(6) by inserting after paragraph (16), as redesig-
nated, the following:
‘‘(17) ‘non-passenger automobile’ means an auto-
mobile that is not a passenger automobile or a work
truck.’’; and
(7) by adding at the end the following:
‘‘(19) ‘work truck’ means a vehicle that—
‘‘(A) is rated at between 8,500 and 10,000
pounds gross vehicle weight; and
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‘‘(B) is not a medium-duty passenger vehi-
cle (as defined in section 86.1803–01 of title 40,
Code of Federal Regulations, as in effect on the
date of the enactment of the Ten-in-Ten Fuel
Economy Act).’’.
SEC. 104. CREDIT TRADING PROGRAM.
(a) IN GENERAL.—Section 32903 of title 49, United
States Code, is amended—
(1) by striking ‘‘section 32902(b)–(d) of this
title’’ each place it appears and inserting ‘‘subsections
(a) through (d) of section 32902’’;
(2) in subsection (a)(2)—
(A) by striking ‘‘3 consecutive model years’’
and inserting ‘‘5 consecutive model years’’;
(B) by striking ‘‘clause (1) of this sub-
section,’’ and inserting ‘‘paragraph (1)’’;
(3) by redesignating subsection (f) as subsection
(h); and
(4) by inserting after subsection (e) the following:
‘‘(f) CREDIT TRADING AMONG MANUFACTURERS.—
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation may establish, by regulation, a fuel economy
credit trading program to allow manufacturers whose
automobiles exceed the average fuel economy stand-
ards prescribed under section 32902 to earn credits to
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be sold to manufacturers whose automobiles fail to
achieve the prescribed standards such that the total
oil savings associated with manufacturers that exceed
the prescribed standards are preserved when trading
credits to manufacturers that fail to achieve the pre-
scribed standards.
‘‘(2) LIMITATION.—The trading of credits by a
manufacturer to the category of passenger automobiles
manufactured domestically is limited to the extent
that the fuel economy level of such automobiles shall
comply with the requirements of section 32902(b)(4),
without regard to any trading of credits from other
manufacturers.
‘‘(g) CREDIT TRANSFERRING WITHIN
A MANUFAC-
TURER’S FLEET.—
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation shall establish by regulation a fuel economy
credit transferring program to allow any manufac-
turer whose automobiles exceed any of the average fuel
economy standards prescribed under section 32902 to
transfer the credits earned under this section and to
apply such credits within that manufacturer’s fleet to
a compliance category of automobiles that fails to
achieve the prescribed standards.
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‘‘(2) YEARS FOR WHICH USED.—Credits trans-
ferred under this subsection are available to be used
in the same model years that the manufacturer could
have applied such credits under subsections (a), (b),
(d), and (e), as well as for the model year in which
the manufacturer earned such credits.
‘‘(3) MAXIMUM INCREASE.—The maximum in-
crease in any compliance category attributable to
transferred credits is—
‘‘(A) for model years 2011 through 2013,
1.0 mile per gallon;
‘‘(B) for model years 2014 through 2017,
1.5 miles per gallon; and
‘‘(C) for model year 2018 and subsequent
model years, 2.0 miles per gallon.
‘‘(4) LIMITATION.—The transfer of credits by a
manufacturer to the category of passenger automobiles
manufactured domestically is limited to the extent
that the fuel economy level of such automobiles shall
comply 
with 
the 
requirements 
under 
section
32904(b)(4), without regard to any transfer of credits
from other categories of automobiles described in
paragraph (6)(B).
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‘‘(5) YEARS AVAILABLE.—A credit may be trans-
ferred under this subsection only if it is earned after
model year 2010.
‘‘(6) DEFINITIONS.—In this subsection:
‘‘(A) FLEET.—The term ‘fleet’ means all
automobiles manufactured by a manufacturer in
a particular model year.
‘‘(B) COMPLIANCE
CATEGORY
OF
AUTO-
MOBILES.—The term ‘compliance category of
automobiles’ means any of the following 3 cat-
egories of automobiles for which compliance is
separately calculated under this chapter:
‘‘(i) Passenger automobiles manufac-
tured domestically.
‘‘(ii) Passenger automobiles not manu-
factured domestically.
‘‘(iii) Non-passenger automobiles.’’.
(b) CONFORMING AMENDMENTS.—
(1) LIMITATIONS.—Section 32902(h) of title 49,
United States Code, is amended—
(A) in paragraph (1), by striking ‘‘and’’ at
the end;
(B) in paragraph (2), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
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‘‘(3) may not consider, when prescribing a fuel
economy standard, the trading, transferring, or avail-
ability of credits under section 32903.’’.
(2) 
SEPARATE
CALCULATIONS.—Section
32904(b)(1)(B) is amended by striking ‘‘chapter.’’
and inserting ‘‘chapter, except for the purposes of sec-
tion 32903.’’.
SEC. 105. CONSUMER INFORMATION.
Section 32908 of title 49, United States Code, is
amended by adding at the end the following:
‘‘(g) CONSUMER INFORMATION.—
‘‘(1) PROGRAM.—The Secretary of Transpor-
tation, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protec-
tion Agency, shall develop and implement by rule a
program to require manufacturers—
‘‘(A) to label new automobiles sold in the
United States with—
‘‘(i) information reflecting an auto-
mobile’s performance on the basis of criteria
that the Administrator shall develop, not
later than 18 months after the date of the
enactment of the Ten-in-Ten Fuel Economy
Act, to reflect fuel economy and greenhouse
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gas and other emissions over the useful life
of the automobile;
‘‘(ii) a rating system that would make
it easy for consumers to compare the fuel
economy and greenhouse gas and other
emissions of automobiles at the point of
purchase, 
including 
a 
designation 
of
automobiles—
‘‘(I) with the lowest greenhouse
gas emissions over the useful life of the
vehicles; and
‘‘(II) the highest fuel economy;
and
‘‘(iii) a permanent and prominent dis-
play that an automobile is capable of oper-
ating on an alternative fuel; and
‘‘(B) to include in the owner’s manual for
vehicles capable of operating on alternative fuels
information that describes that capability and
the benefits of using alternative fuels, including
the renewable nature and environmental benefits
of using alternative fuels.
‘‘(2) CONSUMER EDUCATION.—
‘‘(A) 
IN
GENERAL.—The 
Secretary 
of
Transportation, in consultation with the Sec-
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retary of Energy and the Administrator of the
Environmental Protection Agency, shall develop
and implement by rule a consumer education
program to improve consumer understanding of
automobile performance described in paragraph
(1)(A)(i) and to inform consumers of the benefits
of using alternative fuel in automobiles and the
location of stations with alternative fuel capac-
ity.
‘‘(B) FUEL
SAVINGS
EDUCATION
CAM-
PAIGN.—The Secretary of Transportation shall
establish a consumer education campaign on the
fuel savings that would be recognized from the
purchase of vehicles equipped with thermal man-
agement technologies, including energy efficient
air conditioning systems and glass.
‘‘(3) FUEL
TANK
LABELS
FOR
ALTERNATIVE
FUEL
AUTOMOBILES.—The Secretary of Transpor-
tation shall by rule require a label to be attached to
the fuel compartment of vehicles capable of operating
on alternative fuels, with the form of alternative fuel
stated on the label. A label attached in compliance
with the requirements of section 32905(h) is deemed
to meet the requirements of this paragraph.
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‘‘(4) RULEMAKING DEADLINE.—The Secretary of
Transportation shall issue a final rule under this sub-
section not later than 42 months after the date of the
enactment of the Ten-in-Ten Fuel Economy Act.’’.
SEC. 106. CONTINUED APPLICABILITY OF EXISTING STAND-
ARDS.
Nothing in this subtitle, or the amendments made by
this subtitle, shall be construed to affect the application of
section 32902 of title 49, United States Code, to passenger
automobiles or non-passenger automobiles manufactured be-
fore model year 2011.
SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) IN GENERAL.—As soon as practicable after the
date of enactment of this Act, the Secretary of Transpor-
tation shall execute an agreement with the National Acad-
emy of Sciences to develop a report evaluating vehicle fuel
economy standards, including—
(1) an assessment of automotive technologies and
costs to reflect developments since the Academy’s 2002
report evaluating the corporate average fuel economy
standards was conducted;
(2) an analysis of existing and potential tech-
nologies that may be used practically to improve
automobile and medium-duty and heavy-duty truck
fuel economy;
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(3) an analysis of how such technologies may be
practically integrated into the automotive and me-
dium-duty and heavy-duty truck manufacturing
process; and
(4) an assessment of how such technologies may
be used to meet the new fuel economy standards under
chapter 329 of title 49, United States Code, as
amended by this subtitle.
(b) REPORT.—The Academy shall submit the report to
the Secretary, the Committee on Commerce, Science, and
Transportation of the Senate, and the Committee on Energy
and Commerce of the House of Representatives, with its
findings and recommendations not later than 5 years after
the date on which the Secretary executes the agreement with
the Academy.
(c) QUINQUENNIAL UPDATES.—After submitting the
initial report, the Academy shall update the report at 5
year intervals thereafter through 2025.
SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF ME-
DIUM-DUTY AND HEAVY-DUTY TRUCK FUEL
ECONOMY.
(a) IN GENERAL.—As soon as practicable after the
date of enactment of this Act, the Secretary of Transpor-
tation shall execute an agreement with the National Acad-
emy of Sciences to develop a report evaluating medium-
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duty and heavy-duty truck fuel economy standards,
including—
(1) an assessment of technologies and costs to
evaluate fuel economy for medium-duty and heavy-
duty trucks;
(2) an analysis of existing and potential tech-
nologies that may be used practically to improve me-
dium-duty and heavy-duty truck fuel economy;
(3) an analysis of how such technologies may be
practically integrated into the medium-duty and
heavy-duty truck manufacturing process;
(4) an assessment of how such technologies may
be used to meet fuel economy standards to be pre-
scribed under section 32902(k) of title 49, United
States Code, as amended by this subtitle; and
(5) associated costs and other impacts on the op-
eration of medium-duty and heavy-duty trucks, in-
cluding congestion.
(b) REPORT.—The Academy shall submit the report to
the Secretary, the Committee on Commerce, Science, and
Transportation of the Senate, and the Committee on Energy
and Commerce of the House of Representatives, with its
findings and recommendations not later than 1 year after
the date on which the Secretary executes the agreement with
the Academy.
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SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT
PROGRAM.
(a) IN GENERAL.—Section 32906 of title 49, United
States Code, is amended to read as follows:
‘‘§ 32906. Maximum fuel economy increase for alter-
native fuel automobiles
‘‘(a) IN GENERAL.—For each of model years 1993
through 2019 for each category of automobile (except an
electric automobile), the maximum increase in average fuel
economy for a manufacturer attributable to dual fueled
automobiles is—
‘‘(1) 1.2 miles a gallon for each of model years
1993 through 2014;
‘‘(2) 1.0 miles per gallon for model year 2015;
‘‘(3) 0.8 miles per gallon for model year 2016;
‘‘(4) 0.6 miles per gallon for model year 2017;
‘‘(5) 0.4 miles per gallon for model year 2018;
‘‘(6) 0.2 miles per gallon for model year 2019;
and
‘‘(7) 0 miles per gallon for model years after
2019.
‘‘(b) CALCULATION.—In applying subsection (a), the
Administrator of the Environmental Protection Agency
shall determine the increase in a manufacturer’s average
fuel economy attributable to dual fueled automobiles by sub-
tracting from the manufacturer’s average fuel economy cal-
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culated under section 32905(e) the number equal to what
the manufacturer’s average fuel economy would be if it were
calculated by the formula under section 32904(a)(1) by in-
cluding as the denominator for each model of dual fueled
automobiles the fuel economy when the automobiles are op-
erated on gasoline or diesel fuel.’’.
(b) CONFORMING AMENDMENTS.—Section 32905 of
title 49, United States Code, is amended—
(1) in subsection (b), by striking ‘‘1993–2010,’’
and inserting ‘‘1993 through 2019,’’;
(2) in subsection (d), by striking ‘‘1993–2010,’’
and inserting ‘‘1993 through 2019,’’;
(3) by striking subsections (f) and (g); and
(4) by redesignating subsection (h) as subsection
(f).
(c) B20 BIODIESEL FLEXIBLE FUEL CREDIT.—Sec-
tion 32905(b)(2) of title 49, United States Code, is amended
to read as follows:
‘‘(2) .5 divided by the fuel economy—
‘‘(A) measured under subsection (a) when
operating the model on alternative fuel; or
‘‘(B) measured based on the fuel content of
B20 when operating the model on B20, which is
deemed to contain 0.15 gallon of fuel.’’.
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SEC. 110. PERIODIC REVIEW OF ACCURACY OF FUEL ECON-
OMY LABELING PROCEDURES.
Beginning in December, 2009, and not less often than
every 5 years thereafter, the Administrator of the Environ-
mental Protection Agency, in consultation with the Sec-
retary of Transportation, shall—
(1) reevaluate the fuel economy labeling proce-
dures described in the final rule published in the Fed-
eral Register on December 27, 2006 (71 Fed. Reg.
77,872; 40 C.F.R. parts 86 and 600) to determine
whether changes in the factors used to establish the la-
beling procedures warrant a revision of that process;
and
(2) submit a report to the Committee on Com-
merce, Science, and Transportation of the Senate and
the Committee on Energy and Commerce of the House
of Representatives that describes the results of the re-
evaluation process.
SEC. 111. CONSUMER TIRE INFORMATION.
(a) IN GENERAL.—Chapter 323 of title 49, United
States Code, is amended by inserting after section 32304
the following:
‘‘§ 32304A. Consumer tire information
‘‘(a) RULEMAKING.—
‘‘(1) IN GENERAL.—Not later than 24 months
after the date of enactment of the Ten-in-Ten Fuel
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Economy Act, the Secretary of Transportation shall,
after notice and opportunity for comment, promulgate
rules establishing a national tire fuel efficiency con-
sumer information program for replacement tires de-
signed for use on motor vehicles to educate consumers
about the effect of tires on automobile fuel efficiency,
safety, and durability.
‘‘(2) ITEMS
INCLUDED
IN
RULE.—The rule-
making shall include—
‘‘(A) a national tire fuel efficiency rating
system for motor vehicle replacement tires to as-
sist consumers in making more educated tire
purchasing decisions;
‘‘(B) requirements for providing informa-
tion to consumers, including information at the
point of sale and other potential information
dissemination methods, including the Internet;
‘‘(C) specifications for test methods for
manufacturers to use in assessing and rating
tires to avoid variation among test equipment
and manufacturers; and
‘‘(D) a national tire maintenance consumer
education program including, information on
tire inflation pressure, alignment, rotation, and
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tread wear to maximize fuel efficiency, safety,
and durability of replacement tires.
‘‘(3) APPLICABILITY.—This section shall apply
only to replacement tires covered under section
575.104(c) of title 49, Code of Federal Regulations, in
effect on the date of the enactment of the Ten-in-Ten
Fuel Economy Act.
‘‘(b) CONSULTATION.—The Secretary shall consult
with the Secretary of Energy and the Administrator of the
Environmental Protection Agency on the means of con-
veying tire fuel efficiency consumer information.
‘‘(c) REPORT TO CONGRESS.—The Secretary shall con-
duct periodic assessments of the rules promulgated under
this section to determine the utility of such rules to con-
sumers, the level of cooperation by industry, and the con-
tribution to national goals pertaining to energy consump-
tion. The Secretary shall transmit periodic reports detail-
ing the findings of such assessments to the Senate Com-
mittee on Commerce, Science, and Transportation and the
House of Representatives Committee on Energy and Com-
merce.
‘‘(d) TIRE MARKING.—The Secretary shall not require
permanent labeling of any kind on a tire for the purpose
of tire fuel efficiency information.
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‘‘(e) APPLICATION WITH STATE AND LOCAL LAWS AND
REGULATIONS.—Nothing in this section prohibits a State
or political subdivision thereof from enforcing a law or reg-
ulation on tire fuel efficiency consumer information that
was in effect on January 1, 2006. After a requirement pro-
mulgated under this section is in effect, a State or political
subdivision thereof may adopt or enforce a law or regula-
tion on tire fuel efficiency consumer information enacted
or promulgated after January 1, 2006, if the requirements
of that law or regulation are identical to the requirement
promulgated under this section. Nothing in this section
shall be construed to preempt a State or political subdivi-
sion thereof from regulating the fuel efficiency of tires (in-
cluding establishing testing methods for determining com-
pliance with such standards) not otherwise preempted
under this chapter.’’.
(b) ENFORCEMENT.—Section 32308 of title 49, United
States Code, is amended—
(1) by redesignating subsections (c) and (d) as
subsections (d)and (e), respectively; and
(2) by inserting after subsection (b) the fol-
lowing:
‘‘(c) SECTION 32304A.—Any person who fails to com-
ply with the national tire fuel efficiency information pro-
gram under section 32304A is liable to the United States
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Government for a civil penalty of not more than $50,000
for each violation.’’.
(c) CONFORMING AMENDMENT.—The chapter analysis
for chapter 323 of title 49, United States Code, is amended
by inserting after the item relating to section 32304 the fol-
lowing:
‘‘32304A. Consumer tire information’’.
SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DE-
VELOPMENT.
Section 32912 of title 49, United States Code, is
amended by adding at the end the following:
‘‘(e) USE OF CIVIL PENALTIES.—For fiscal year 2008
and each fiscal year thereafter, from the total amount de-
posited in the general fund of the Treasury during the pre-
ceding fiscal year from fines, penalties, and other funds ob-
tained through enforcement actions conducted pursuant to
this section (including funds obtained under consent de-
crees), the Secretary of the Treasury, subject to the avail-
ability of appropriations, shall—
‘‘(1) transfer 50 percent of such total amount to
the account providing appropriations to the Secretary
of Transportation for the administration of this chap-
ter, which shall be used by the Secretary to support
rulemaking under this chapter; and
‘‘(2) transfer 50 percent of such total amount to
the account providing appropriations to the Secretary
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of Transportation for the administration of this chap-
ter, which shall be used by the Secretary to carry out
a program to make grants to manufacturers for re-
tooling, reequipping, or expanding existing manufac-
turing facilities in the United States to produce ad-
vanced technology vehicles and components.’’.
SEC. 113. EXEMPTION FROM SEPARATE CALCULATION RE-
QUIREMENT.
(a) REPEAL.—Paragraphs (6), (7), and (8) of section
32904(b) of title 49, United States Code, are repealed.
(b) EFFECT OF REPEAL ON EXISTING EXEMPTIONS.—
Any exemption granted under section 32904(b)(6) of title
49, United States Code, prior to the date of the enactment
of this Act shall remain in effect subject to its terms through
model year 2013.
(c) ACCRUAL AND USE OF CREDITS.—Any manufac-
turer holding an exemption under section 32904(b)(6) of
title 49, United States Code, prior to the date of the enact-
ment of this Act may accrue and use credits under sections
32903 and 32905 of such title beginning with model year
2011.
Subtitle B—Improved Vehicle
Technology
SEC. 131. TRANSPORTATION ELECTRIFICATION.
(a) DEFINITIONS.—In this section:
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(1) 
ADMINISTRATOR.—The 
term 
‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency.
(2) BATTERY.—The term ‘‘battery’’ means an
electrochemical energy storage system powered di-
rectly by electrical current.
(3) ELECTRIC TRANSPORTATION TECHNOLOGY.—
The 
term 
‘‘electric 
transportation 
technology’’
means—
(A) technology used in vehicles that use an
electric motor for all or part of the motive power
of the vehicles, including battery electric, hybrid
electric, plug-in hybrid electric, fuel cell, and
plug-in fuel cell vehicles, or rail transportation;
or
(B) equipment relating to transportation or
mobile sources of air pollution that use an elec-
tric motor to replace an internal combustion en-
gine for all or part of the work of the equipment,
including—
(i) corded electric equipment linked to
transportation or mobile sources of air pol-
lution; and
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(ii) electrification technologies at air-
ports, ports, truck stops, and material-han-
dling facilities.
(4) NONROAD VEHICLE.—The term ‘‘nonroad ve-
hicle’’ means a vehicle—
(A) powered—
(i) by a nonroad engine, as that term
is defined in section 216 of the Clean Air
Act (42 U.S.C. 7550); or
(ii) fully or partially by an electric
motor powered by a fuel cell, a battery, or
an off-board source of electricity; and
(B) that is not a motor vehicle or a vehicle
used solely for competition.
(5) PLUG-IN
ELECTRIC
DRIVE
VEHICLE.—The
term ‘‘plug-in electric drive vehicle’’ means a vehicle
that—
(A) draws motive power from a battery
with a capacity of at least 4 kilowatt-hours;
(B) can be recharged from an external
source of electricity for motive power; and
(C) is a light-, medium-, or heavy-duty
motor vehicle or nonroad vehicle (as those terms
are defined in section 216 of the Clean Air Act
(42 U.S.C. 7550)).
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(6) 
QUALIFIED
ELECTRIC
TRANSPORTATION
PROJECT.—The term ‘‘qualified electric transpor-
tation project’’ means an electric transportation tech-
nology project that would significantly reduce emis-
sions of criteria pollutants, greenhouse gas emissions,
and petroleum, including—
(A) shipside or shoreside electrification for
vessels;
(B) truck-stop electrification;
(C) electric truck refrigeration units;
(D) battery powered auxiliary power units
for trucks;
(E) electric airport ground support equip-
ment;
(F) electric material and cargo handling
equipment;
(G) electric or dual-mode electric rail;
(H) any distribution upgrades needed to
supply electricity to the project; and
(I) any ancillary infrastructure, including
panel upgrades, battery chargers, in-situ trans-
formers, and trenching.
(b) PLUG-IN ELECTRIC DRIVE VEHICLE PROGRAM.—
(1) ESTABLISHMENT.—The Secretary shall estab-
lish a competitive program to provide grants on a
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cost-shared basis to State governments, local govern-
ments, metropolitan transportation authorities, air
pollution control districts, private or nonprofit enti-
ties, or combinations of those governments, authori-
ties, districts, and entities, to carry out 1 or more
projects to encourage the use of plug-in electric drive
vehicles or other emerging electric vehicle technologies,
as determined by the Secretary.
(2) ADMINISTRATION.—The Secretary shall, in
consultation with the Secretary of Transportation
and the Administrator, establish requirements for ap-
plications for grants under this section, including re-
porting of data to be summarized for dissemination
to grantees and the public, including safety, vehicle,
and component performance, and vehicle and compo-
nent life cycle costs.
(3) PRIORITY.—In making awards under this
subsection, the Secretary shall—
(A) give priority consideration to applica-
tions that—
(i) encourage early widespread use of
vehicles described in paragraph (1); and
(ii) are likely to make a significant
contribution to the advancement of the pro-
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duction of the vehicles in the United States;
and
(B) ensure, to the maximum extent prac-
ticable, that the program established under this
subsection includes a variety of applications,
manufacturers, and end-uses.
(4) REPORTING.—The Secretary shall require a
grant recipient under this subsection to submit to the
Secretary, on an annual basis, data relating to safety,
vehicle performance, life cycle costs, and emissions of
vehicles demonstrated under the grant, including
emissions of greenhouse gases.
(5) COST SHARING.—Section 988 of the Energy
Policy Act of 2005 (42 U.S.C. 16352) shall apply to
a grant made under this subsection.
(6) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection $90,000,000 for each of fiscal years
2008 through 2012, of which not less than 1⁄3 of the
total amount appropriated shall be available each fis-
cal year to make grants to local and municipal gov-
ernments.
(c) NEAR-TERM TRANSPORTATION SECTOR ELEC-
TRIFICATION PROGRAM.—
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(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, the Secretary, in
consultation with the Secretary of Transportation
and the Administrator, shall establish a program to
provide grants for the conduct of qualified electric
transportation projects.
(2) PRIORITY.—In providing grants under this
subsection, the Secretary shall give priority to large-
scale projects and large-scale aggregators of projects.
(3) COST SHARING.—Section 988 of the Energy
Policy Act of 2005 (42 U.S.C. 16352) shall apply to
a grant made under this subsection.
(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection $95,000,000 for each of fiscal years
2008 through 2013.
(d) EDUCATION PROGRAM.—
(1) IN GENERAL.—The Secretary shall develop a
nationwide electric drive transportation technology
education program under which the Secretary shall
provide—
(A) teaching materials to secondary schools
and high schools; and
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(B) assistance for programs relating to elec-
tric drive system and component engineering to
institutions of higher education.
(2) ELECTRIC VEHICLE COMPETITION.—The pro-
gram established under paragraph (1) shall include a
plug-in hybrid electric vehicle competition for institu-
tions of higher education, which shall be known as the
‘‘Dr. Andrew Frank Plug-In Electric Vehicle Com-
petition’’.
(3) ENGINEERS.—In carrying out the program
established under paragraph (1), the Secretary shall
provide financial assistance to institutions of higher
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 transpor-
tation technology vehicles.
(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated such sums as
may be necessary to carry out this subsection.
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SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT
PROGRAM.
Section 712 of the Energy Policy Act of 2005 (42
U.S.C. 16062) is amended to read as follows:
‘‘SEC. 
712. 
DOMESTIC 
MANUFACTURING 
CONVERSION
GRANT PROGRAM.
‘‘(a) PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a program to encourage domestic production and
sales of efficient hybrid and advanced diesel vehicles
and components of those vehicles.
‘‘(2) INCLUSIONS.—The program shall include
grants to automobile manufacturers and suppliers
and hybrid component manufacturers to encourage
domestic production of efficient hybrid, plug-in elec-
tric hybrid, plug-in electric drive, and advanced die-
sel vehicles.
‘‘(3) PRIORITY.—Priority shall be given to the
refurbishment or retooling of manufacturing facilities
that have recently ceased operation or will cease oper-
ation in the near future.
‘‘(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-
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ing of skilled workers from the manufacturing facilities, in-
cluding by establishing matching grant arrangements.
‘‘(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. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POL-
ICY ACT OF 1992.
Section 508 of the Energy Policy Act of 1992 (42
U.S.C. 13258) is amended—
(1) by redesignating subsections (a) through (d)
as subsections (b) through (e), respectively;
(2) by inserting before subsection (b) the fol-
lowing:
‘‘(a) 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 sec-
tion 803 of the Spark M. Matsunaga Hydrogen Act
of 2005 (42 U.S.C. 16152)).
‘‘(2) HYBRID
ELECTRIC
VEHICLE.—The term
‘hybrid electric vehicle’ means a new qualified hybrid
motor vehicle (as defined in section 30B(d)(3) of the
Internal Revenue Code of 1986).
‘‘(3) MEDIUM- OR HEAVY-DUTY ELECTRIC VEHI-
CLE.—The term ‘medium- or heavy-duty electric vehi-
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cle’ means an electric, hybrid electric, or plug-in hy-
brid electric vehicle with a gross vehicle weight of
more than 8,501 pounds.
‘‘(4) NEIGHBORHOOD ELECTRIC VEHICLE.—The
term ‘neighborhood electric vehicle’ means a 4-wheeled
on-road or nonroad vehicle that—
‘‘(A) has a top attainable speed in 1 mile
of more than 20 mph and not more than 25 mph
on a paved level surface; and
‘‘(B) is propelled by an electric motor and
on-board, rechargeable energy storage system that
is rechargeable using an off-board source of elec-
tricity.
‘‘(5) PLUG-IN ELECTRIC DRIVE VEHICLE.—The
term ‘plug-in electric drive vehicle’ means a vehicle
that—
‘‘(A) draws motive power from a battery
with a capacity of at least 4 kilowatt-hours;
‘‘(B) can be recharged from an external
source of electricity for motive power; and
‘‘(C) is a light-, medium-, or heavy duty
motor vehicle or nonroad vehicle (as those terms
are defined in section 216 of the Clean Air Act
(42 U.S.C. 7550).’’;
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(3) in subsection (b) (as redesignated by para-
graph (1))—
(A) by striking ‘‘The Secretary’’ and insert-
ing the following:
‘‘(1) ALLOCATION.—The Secretary’’; and
(B) by adding at the end the following:
‘‘(2) ELECTRIC VEHICLES.—Not later than Jan-
uary 31, 2009, the Secretary shall—
‘‘(A) allocate credit in an amount to be de-
termined by the Secretary for—
‘‘(i) acquisition of—
‘‘(I) a hybrid electric vehicle;
‘‘(II) a plug-in electric drive vehi-
cle;
‘‘(III) a fuel cell electric vehicle;
‘‘(IV) a neighborhood electric vehi-
cle; or
‘‘(V) a medium- or heavy-duty
electric vehicle; and
‘‘(ii) investment in qualified alter-
native fuel infrastructure or nonroad equip-
ment, as determined by the Secretary; and
‘‘(B) allocate more than 1, but not to exceed
5, credits for investment in an emerging tech-
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nology relating to any vehicle described in sub-
paragraph (A) to encourage—
‘‘(i) a reduction in petroleum demand;
‘‘(ii) technological advancement; and
‘‘(iii) a reduction in vehicle emis-
sions.’’;
(4) in subsection (c) (as redesignated by para-
graph (1)), by striking ‘‘subsection (a)’’ and inserting
‘‘subsection (b)’’; and
(5) by adding at the end the following:
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section for each of fiscal years 2008
through 2013.’’.
SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTO-
MOBILE PARTS MANUFACTURERS.
(a) IN GENERAL.—Section 712(a)(2) of the Energy
Policy Act of 2005 (42 U.S.C. 16062(a)(2)) (as amended
by section 132) is amended by inserting ‘‘and loan guaran-
tees under section 1703’’ after ‘‘grants’’.
(b) CONFORMING AMENDMENT.—Section 1703(b) of
the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is
amended by striking paragraph (8) and inserting the fol-
lowing:
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‘‘(8) Production facilities for the manufacture of
fuel efficient vehicles or parts of those vehicles, includ-
ing electric drive vehicles and advanced diesel vehi-
cles.’’.
SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PRO-
GRAM.
(a) ESTABLISHMENT
OF PROGRAM.—The Secretary
shall establish a program to provide guarantees of loans by
private institutions for the construction of facilities for the
manufacture of advanced vehicle batteries and battery sys-
tems that are developed and produced in the United States,
including advanced lithium ion batteries and hybrid elec-
trical system and component manufacturers 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 avail-
able to the applicant under reasonable terms or condi-
tions sufficient to finance the construction of a facil-
ity 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
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(3) the loan bears interest at a rate determined
by the Secretary to be reasonable, taking into account
the current average yield on outstanding obligations
of the United States with remaining periods of matu-
rity comparable to the maturity of the loan.
(c) CRITERIA.—In selecting recipients of loan guaran-
tees from among applicants, the Secretary shall give pref-
erence 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 sub-
section (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.
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(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.
(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 guarantee
made by the Secretary shall be conclusive evidence of the
eligibility of the loan for the guarantee with respect to prin-
cipal and interest. The validity of the guarantee shall be
incontestable in the hands of a holder of the guaranteed
loan.
(i) REPORTS.—Until each guaranteed loan under this
section has been repaid in full, the Secretary shall annually
submit to Congress a report on the activities of the Sec-
retary under this section.
(j) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
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.
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SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFAC-
TURING INCENTIVE PROGRAM.
(a) DEFINITIONS.—In this section:
(1) ADVANCED
TECHNOLOGY
VEHICLE.—The
term ‘‘advanced technology vehicle’’ means a light
duty vehicle that meets—
(A) the Bin 5 Tier II emission standard es-
tablished in regulations issued by the Adminis-
trator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act (42
U.S.C. 7521(i)), or a lower-numbered Bin emis-
sion standard;
(B) any new emission standard in effect for
fine particulate matter prescribed by the Admin-
istrator under that Act (42 U.S.C. 7401 et seq.);
and
(C) at least 125 percent of the average base
year combined fuel economy for vehicles with
substantially similar attributes.
(2) COMBINED FUEL ECONOMY.—The term ‘‘com-
bined fuel economy’’ means—
(A) the combined city/highway miles per
gallon values, as reported in accordance with sec-
tion 32904 of title 49, United States Code; and
(B) in the case of an electric drive vehicle
with the ability to recharge from an off-board
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source, the reported mileage, as determined in a
manner consistent with the Society of Auto-
motive Engineers recommended practice for that
configuration or a similar practice recommended
by the Secretary.
(3) ENGINEERING
INTEGRATION
COSTS.—The
term ‘‘engineering integration costs’’ includes the cost
of engineering tasks relating to—
(A) incorporating qualifying components
into the design of advanced technology vehicles;
and
(B) designing tooling and equipment and
developing manufacturing processes and mate-
rial suppliers for production facilities that
produce qualifying components or advanced tech-
nology vehicles.
(4) 
QUALIFYING
COMPONENTS.—The 
term
‘‘qualifying components’’ means components that the
Secretary determines to be—
(A) designed for advanced technology vehi-
cles; and
(B) installed for the purpose of meeting the
performance requirements of advanced technology
vehicles.
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(b) ADVANCED VEHICLES MANUFACTURING FACIL-
ITY.—The Secretary shall provide facility funding awards
under this section to automobile manufacturers and compo-
nent suppliers to pay not more than 30 percent of the cost
of—
(1) reequipping, expanding, or establishing a
manufacturing facility in the United States to
produce—
(A) qualifying advanced technology vehicles;
or
(B) qualifying components; and
(2) engineering integration performed in the
United States of qualifying vehicles and qualifying
components.
(c) PERIOD OF AVAILABILITY.—An award under sub-
section (b) shall apply to—
(1) facilities and equipment placed in service be-
fore December 30, 2020; and
(2) engineering integration costs incurred during
the period beginning on the date of enactment of this
Act and ending on December 30, 2020.
(d) DIRECT LOAN PROGRAM.—
(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, and subject to the
availability of appropriated funds, the Secretary shall
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carry out a program to provide a total of not more
than $25,000,000,000 in loans to eligible individuals
and entities (as determined by the Secretary) for the
costs of activities described in subsection (b).
(2) APPLICATION.—An applicant for a loan
under this subsection shall submit to the Secretary an
application at such time, in such manner, and con-
taining such information as the Secretary may re-
quire, including a written assurance that—
(A) all laborers and mechanics employed by
contractors or subcontractors during construc-
tion, alteration, or repair that is financed, in
whole or in part, by a loan under this section
shall be paid wages at rates not less than those
prevailing on similar construction in the local-
ity, as determined by the Secretary of Labor in
accordance with sections 3141–3144, 3146, and
3147 of title 40, United States Code; and
(B) the Secretary of Labor shall, with re-
spect to the labor standards described in this
paragraph, have the authority and functions set
forth in Reorganization Plan Numbered 14 of
1950 (5 U.S.C. App.) and section 3145 of title
40, United States Code.
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(3) SELECTION
OF
ELIGIBLE
PROJECTS.—The
Secretary shall select eligible projects to receive loans
under this subsection in cases in which, as determined
by the Secretary, the award recipient—
(A) is financially viable without the receipt
of additional Federal funding associated with the
proposed project;
(B) will provide sufficient information to
the Secretary for the Secretary to ensure that the
qualified investment is expended efficiently and
effectively; and
(C) has met such other criteria as may be
established and published by the Secretary.
(4) 
RATES, 
TERMS, 
AND
REPAYMENT
OF
LOANS.—A loan provided under this subsection—
(A) shall have an interest rate that, as of
the date on which the loan is made, is equal to
the cost of funds to the Department of the Treas-
ury for obligations of comparable maturity;
(B) shall have a term equal to the lesser
of—
(i) the projected life, in years, of the el-
igible project to be carried out using funds
from the loan, as determined by the Sec-
retary; and
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(ii) 25 years;
(C) may be subject to a deferral in repay-
ment for not more than 5 years after the date on
which the eligible project carried out using funds
from the loan first begins operations, as deter-
mined by the Secretary; and
(D) shall be made by the Federal Financing
Bank.
(e) IMPROVEMENT.—The Secretary shall issue regula-
tions that require that, in order for an automobile manufac-
turer to be eligible for an award or loan under this section
during a particular year, the adjusted average fuel economy
of the manufacturer for light duty vehicles produced by the
manufacturer during the most recent year for which data
are available shall be not less than the average fuel economy
for all light duty vehicles of the manufacturer for model
year 2005. In order to determine fuel economy baselines for
eligibility of a new manufacturer or a manufacturer that
has not produced previously produced equivalent vehicles,
the Secretary may substitute industry averages.
(f) FEES.—Administrative costs shall be no more than
$100,000 or 10 basis point of the loan.
(g) PRIORITY.—The Secretary shall, in making
awards or loans to those manufacturers that have existing
facilities, give priority to those facilities that are oldest or
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have been in existence for at least 20 years. Such facilities
can currently be sitting idle.
(h) SET ASIDE FOR SMALL AUTOMOBILE MANUFAC-
TURERS AND COMPONENT SUPPLIERS.—
(1) DEFINITION OF COVERED FIRM.—In this sub-
section, the term ‘‘covered firm’’ means a firm that—
(A) employs less than 500 individuals; and
(B) manufactures automobiles or compo-
nents of automobiles.
(2) SET ASIDE.—Of the amount of funds that
are used to provide awards for each fiscal year under
subsection (b), the Secretary shall use not less than 10
percent to provide awards to covered firms or con-
sortia led by a covered firm.
(i) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section for each of fiscal years 2008
through 2012.
Subtitle C—Federal Vehicle Fleets
SEC. 141. FEDERAL VEHICLE FLEETS.
Section 303 of the Energy Policy Act of 1992 (42
U.S.C. 13212) is amended—
(1) by redesignating subsection (f) as subsection
(g); and
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(2) by inserting after subsection (e) the following
new subsection:
‘‘(f) VEHICLE EMISSION REQUIREMENTS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) FEDERAL AGENCY.—The term ‘Federal
agency’ does not include any office of the legisla-
tive branch, except that it does include the House
of Representatives with respect to an acquisition
described in paragraph (2)(C).
‘‘(B) MEDIUM
DUTY
PASSENGER
VEHI-
CLE.—The term ‘medium duty passenger vehicle’
has the meaning given that term section 523.2 of
title 49 of the Code of Federal Regulations, as in
effect on the date of enactment of this paragraph.
‘‘(C) MEMBER’S
REPRESENTATIONAL
AL-
LOWANCE.—The term ‘Member’s Representa-
tional Allowance’ means the allowance described
in section 101(a) of the House of Representatives
Administrative Reform Technical Corrections
Act (2 U.S.C. 57b(a)).
‘‘(2) PROHIBITION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), no Federal agency shall ac-
quire a light duty motor vehicle or medium duty
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passenger vehicle that is not a low greenhouse
gas emitting vehicle.
‘‘(B) EXCEPTION.—The prohibition in sub-
paragraph (A) shall not apply to acquisition of
a vehicle if the head of the agency certifies in
writing, in a separate certification for each indi-
vidual vehicle purchased, either—
‘‘(i) that no low greenhouse gas emit-
ting vehicle is available to meet the func-
tional needs of the agency and details in
writing the functional needs that could not
be met with a low greenhouse gas emitting
vehicle; or
‘‘(ii) that the agency has taken specific
alternative more cost-effective measures to
reduce petroleum consumption that—
‘‘(I) have reduced a measured and
verified quantity of greenhouse gas
emissions equal to or greater than the
quantity of greenhouse gas reductions
that would have been achieved through
acquisition of a low greenhouse gas
emitting vehicle over the lifetime of the
vehicle; or
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‘‘(II) will reduce each year a
measured and verified quantity of
greenhouse gas emissions equal to or
greater than the quantity of greenhouse
gas reductions that would have been
achieved each year through acquisition
of a low greenhouse gas emitting vehi-
cle.
‘‘(C) SPECIAL
RULE
FOR
VEHICLES
PRO-
VIDED BY FUNDS CONTAINED IN MEMBERS’ REP-
RESENTATIONAL
ALLOWANCE.—This paragraph
shall apply to the acquisition of a light duty
motor vehicle or medium duty passenger vehicle
using any portion of a Member’s Representa-
tional Allowance, including an acquisition under
a long-term lease.
‘‘(3) GUIDANCE.—
‘‘(A) IN GENERAL.—Each year, the Admin-
istrator of the Environmental Protection Agency
shall issue guidance identifying the makes and
model numbers of vehicles that are low green-
house gas emitting vehicles.
‘‘(B) CONSIDERATION.—In identifying vehi-
cles under subparagraph (A), the Administrator
shall take into account the most stringent stand-
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ards for vehicle greenhouse gas emissions appli-
cable to and enforceable against motor vehicle
manufacturers for vehicles sold anywhere in the
United States.
‘‘(C) REQUIREMENT.—The Administrator
shall not identify any vehicle as a low green-
house gas emitting vehicle if the vehicle emits
greenhouse gases at a higher rate than such
standards allow for the manufacturer’s fleet aver-
age grams per mile of carbon dioxide-equivalent
emissions for that class of vehicle, taking into ac-
count any emissions allowances and adjustment
factors such standards provide.’’.
SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.
Part J of title III of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6374 et seq.) is amended by adding
at the end the following:
‘‘SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIRE-
MENTS.
‘‘(a) MANDATORY REDUCTION IN PETROLEUM CON-
SUMPTION.—
‘‘(1) IN GENERAL.—Not later than 18 months
after the date of enactment of this section, the Sec-
retary shall issue regulations for Federal fleets subject
to section 400AA to require that, beginning in fiscal
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specified in the plan by dates specified in the
plan, to meet the required petroleum reduction
levels and the alternative fuel consumption in-
creases, including the milestones specified by the
Secretary.
‘‘(B) INCLUSIONS.—The plan shall—
‘‘(i) identify the specific measures the
agency will use to meet the requirements of
subsection (a)(2); and
‘‘(ii) quantify the reductions in petro-
leum consumption or increases in alter-
native fuel consumption projected to be
achieved by each measure each year.
‘‘(2) MEASURES.—The plan may allow an agen-
cy to meet the required petroleum reduction level
through—
‘‘(A) the use of alternative fuels;
‘‘(B) the acquisition of vehicles with higher
fuel economy, including hybrid vehicles, neigh-
borhood electric vehicles, electric vehicles, and
plug-in hybrid vehicles if the vehicles are com-
mercially available;
‘‘(C) the substitution of cars for light trucks;
‘‘(D) an increase in vehicle load factors;
‘‘(E) a decrease in vehicle miles traveled;
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‘‘(F) a decrease in fleet size; and
‘‘(G) other measures.’’.
TITLE 
II—ENERGY 
SECURITY
THROUGH INCREASED PRO-
DUCTION OF BIOFUELS
Subtitle A—Renewable Fuel
Standard
SEC. 201. DEFINITIONS.
Section 211(o)(1) of the Clean Air Act (42 U.S.C.
7545(o)) is amended to read as follows:
‘‘(1) DEFINITIONS.—In this section:
‘‘(A) ADDITIONAL RENEWABLE FUEL.—The
term ‘additional renewable fuel’ means fuel that
is produced from renewable biomass and that is
used to replace or reduce the quantity of fossil
fuel present in home heating oil or jet fuel.
‘‘(B) ADVANCED BIOFUEL.—
‘‘(i) IN GENERAL.—The term ‘advanced
biofuel’ means renewable fuel, other than
ethanol derived from corn starch, that has
lifecycle greenhouse gas emissions, as deter-
mined by the Administrator, after notice
and opportunity for comment, that are at
least 50 percent less than baseline lifecycle
greenhouse gas emissions.
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‘‘(ii) INCLUSIONS.—The types of fuels
eligible for consideration as ‘advanced
biofuel’ may include any of the following:
‘‘(I) Ethanol derived from cel-
lulose, hemicellulose, or lignin.
‘‘(II) Ethanol derived from sugar
or starch (other than corn starch).
‘‘(III) Ethanol derived from waste
material, including crop residue, other
vegetative 
waste 
material, 
animal
waste, and food waste and yard waste.
‘‘(IV) Biomass-based diesel.
‘‘(V) Biogas (including landfill
gas and sewage waste treatment gas)
produced through the conversion of or-
ganic matter from renewable biomass.
‘‘(VI) Butanol or other alcohols
produced through the conversion of or-
ganic matter from renewable biomass.
‘‘(VII) Other fuel derived from cel-
lulosic biomass.
‘‘(C) BASELINE
LIFECYCLE
GREENHOUSE
GAS
EMISSIONS.—The term ‘baseline lifecycle
greenhouse gas emissions’ means the average
lifecycle greenhouse gas emissions, as determined
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by the Administrator, after notice and oppor-
tunity for comment, for gasoline or diesel
(whichever is being replaced by the renewable
fuel) sold or distributed as transportation fuel in
2005.
‘‘(D) BIOMASS-BASED
DIESEL.—The term
‘biomass-based diesel’ means renewable fuel that
is biodiesel as defined in section 312(f) of the
Energy Policy Act of 1992 (42 U.S.C. 13220(f))
and that has lifecycle greenhouse gas emissions,
as determined by the Administrator, after notice
and opportunity for comment, that are at least
50 percent less than the baseline lifecycle green-
house gas emissions. Notwithstanding the pre-
ceding sentence, renewable fuel derived from co-
processing biomass with a petroleum feedstock
shall be advanced biofuel if it meets the require-
ments of subparagraph (B), but is not biomass-
based diesel.
‘‘(E) CELLULOSIC BIOFUEL.—The term ‘cel-
lulosic biofuel’ means renewable fuel derived
from any cellulose, hemicellulose, or lignin that
is derived from renewable biomass and that has
lifecycle greenhouse gas emissions, as determined
by the Administrator, that are at least 60 per-
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cent less than the baseline lifecycle greenhouse
gas emissions.
‘‘(F) CONVENTIONAL
BIOFUEL.—The term
‘conventional biofuel’ means renewable fuel that
is ethanol derived from corn starch.
‘‘(G) GREENHOUSE GAS.—The term ‘green-
house 
gas’ 
means 
carbon 
dioxide,
hydrofluorocarbons, 
methane, 
nitrous 
oxide,
perfluorocarbons, sulfur hexafluoride. The Ad-
ministrator 
may 
include 
any 
other
anthropogenically-emitted gas that is determined
by the Administrator, after notice and comment,
to contribute to global warming.
‘‘(H) LIFECYCLE GREENHOUSE GAS EMIS-
SIONS.—The term ‘lifecycle greenhouse gas emis-
sions’ means the aggregate quantity of green-
house gas emissions (including direct emissions
and significant indirect emissions such as sig-
nificant emissions from land use changes), as de-
termined by the Administrator, related to the full
fuel lifecycle, including all stages of fuel and
feedstock production and distribution, from feed-
stock generation or extraction through the dis-
tribution and delivery and use of the finished
fuel to the ultimate consumer, where the mass
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values for all greenhouse gases are adjusted to ac-
count for their relative global warming potential.
‘‘(I) RENEWABLE BIOMASS.—The term ‘re-
newable biomass’ means each of the following:
‘‘(i) Planted crops and crop residue
harvested from agricultural land cleared or
cultivated at any time prior to the enact-
ment of this sentence that is either actively
managed or fallow, and nonforested.
‘‘(ii) Planted trees and tree residue
from actively managed tree plantations on
non-federal land cleared at any time prior
to enactment of this sentence, including
land belonging to an Indian tribe or an In-
dian individual, that is held in trust by the
United States or subject to a restriction
against alienation imposed by the United
States.
‘‘(iii) Animal waste material and ani-
mal byproducts.
‘‘(iv) 
Slash 
and 
pre-commercial
thinnings 
that 
are 
from 
non-federal
forestlands, including forestlands belonging
to an Indian tribe or an Indian individual,
that are held in trust by the United States
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or subject to a restriction against alienation
imposed by the United States, but not for-
ests or forestlands that are ecological com-
munities with a global or State ranking of
critically imperiled, imperiled, or rare pur-
suant to a State Natural Heritage Program,
old growth forest, or late successional forest.
‘‘(v) Biomass obtained from the imme-
diate vicinity of buildings and other areas
regularly occupied by people, or of public
infrastructure, at risk from wildfire.
‘‘(vi) Algae.
‘‘(vii) Separated yard waste or food
waste, including recycled cooking and trap
grease.
‘‘(J) RENEWABLE FUEL.—The term ‘renew-
able fuel’ means fuel that is produced from re-
newable biomass and that is used to replace or
reduce the quantity of fossil fuel present in a
transportation fuel.
‘‘(K) SMALL REFINERY.—The term ‘small
refinery’ means a refinery for which the average
aggregate daily crude oil throughput for a cal-
endar year (as determined by dividing the aggre-
gate throughput for the calendar year by the
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number of days in the calendar year) does not
exceed 75,000 barrels.
‘‘(L) TRANSPORTATION
FUEL.—The term
‘transportation fuel’ means fuel for use in motor
vehicles, motor vehicle engines, nonroad vehicles,
or nonroad engines (except for ocean-going ves-
sels).’’.
SEC. 202. RENEWABLE FUEL STANDARD.
(a) RENEWABLE FUEL PROGRAM.—Paragraph (2) of
section 211(o) (42 U.S.C. 7545(o)(2)) of the Clean Air Act
is amended as follows:
(1) REGULATIONS.—Clause (i) of subparagraph
(A) is amended by adding the following at the end
thereof: ‘‘Not later than 1 year after the date of enact-
ment of this sentence, the Administrator shall revise
the regulations under this paragraph to ensure that
transportation fuel sold or introduced into commerce
in the United States (except in noncontiguous States
or territories), on an annual average basis, contains
at least the applicable volume of renewable fuel, ad-
vanced biofuel, cellulosic biofuel, and biomass-based
diesel, determined in accordance with subparagraph
(B) and, in the case of any such renewable fuel pro-
duced from new facilities that commence construction
after the date of enactment of this sentence, achieves
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at least a 20 percent reduction in lifecycle greenhouse
gas emissions compared to baseline lifecycle green-
house gas emissions.’’
(2) APPLICABLE
VOLUMES
OF
RENEWABLE
FUEL.—Subparagraph (B) is amended to read as fol-
lows:
‘‘(B) APPLICABLE VOLUMES.—
‘‘(i) CALENDAR YEARS AFTER 2005.—
‘‘(I) RENEWABLE FUEL.—For the
purpose of subparagraph (A), the ap-
plicable volume of renewable fuel for
the calendar years 2006 through 2022
shall be determined in accordance with
the following table:
Applicable volume of
renewable fuel
‘‘Calendar year:
(in billions of gallons):
2006 ...........................................................................................................
4.0
2007 ...........................................................................................................
4.7
2008 ...........................................................................................................
9.0
2009 ...........................................................................................................
11.1
2010 ...........................................................................................................
12.95
2011 ...........................................................................................................
13.95
2012 ...........................................................................................................
15.2
2013 ...........................................................................................................
16.55
2014 ...........................................................................................................
18.15
2015 ...........................................................................................................
20.5
2016 ...........................................................................................................
22.25
2017 ...........................................................................................................
24.0
2018 ...........................................................................................................
26.0
2019 ...........................................................................................................
28.0
2020 ...........................................................................................................
30.0
2021 ...........................................................................................................
33.0
2022 ...........................................................................................................
36.0
‘‘(II) ADVANCED
BIOFUEL.—For
the purpose of subparagraph (A), of the
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volume of renewable fuel required
under subclause (I), the applicable vol-
ume of advanced biofuel for the cal-
endar years 2009 through 2022 shall be
determined in accordance with the fol-
lowing table:
Applicable volume of
advanced biofuel
‘‘Calendar year:
(in billions of gallons):
2009 ...........................................................................................................
0.6
2010 ...........................................................................................................
0.95
2011 ...........................................................................................................
1.35
2012 ...........................................................................................................
2.0
2013 ...........................................................................................................
2.75
2014 ...........................................................................................................
3.75
2015 ...........................................................................................................
5.5
2016 ...........................................................................................................
7.25
2017 ...........................................................................................................
9.0
2018 ...........................................................................................................
11.0
2019 ...........................................................................................................
13.0
2020 ...........................................................................................................
15.0
2021 ...........................................................................................................
18.0
2022 ...........................................................................................................
21.0
‘‘(III) CELLULOSIC
BIOFUEL.—
For the purpose of subparagraph (A),
of the volume of advanced biofuel re-
quired under subclause (II), the appli-
cable volume of cellulosic biofuel for the
calendar years 2010 through 2022 shall
be determined in accordance with the
following table:
Applicable volume of
cellulosic biofuel
‘‘Calendar year:
(in billions of gallons):
2010 ...........................................................................................................
0.1
2011 ...........................................................................................................
0.25
2012 ...........................................................................................................
0.5
2013 ...........................................................................................................
1.0
2014 ...........................................................................................................
1.75
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Applicable volume of
cellulosic biofuel
‘‘Calendar year:
(in billions of gallons):
2015 ...........................................................................................................
3.0
2016 ...........................................................................................................
4.25
2017 ...........................................................................................................
5.5
2018 ...........................................................................................................
7.0
2019 ...........................................................................................................
8.5
2020 ...........................................................................................................
10.5
2021 ...........................................................................................................
13.5
2022 ...........................................................................................................
16.0
‘‘(IV) BIOMASS-BASED DIESEL.—
For the purpose of subparagraph (A),
of the volume of advanced biofuel re-
quired under subclause (II), the appli-
cable volume of biomass-based diesel for
the calendar years 2009 through 2012
shall be determined in accordance with
the following table:
Applicable volume of
biomass-based diesel
‘‘Calendar year:
(in billions of gallons):
2009 ...........................................................................................................
0.5
2010 ...........................................................................................................
0.65
2011 ...........................................................................................................
0.80
2012 ...........................................................................................................
1.0
‘‘(ii) OTHER CALENDAR YEARS.—For
the purposes of subparagraph (A), the ap-
plicable volumes of each fuel specified in the
tables in clause (i) for calendar years after
the calendar years specified in the tables
shall be determined by the Administrator,
in coordination with the Secretary of En-
ergy and the Secretary of Agriculture, based
on a review of the implementation of the
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program during calendar years specified in
the tables, and an analysis of—
‘‘(I) the impact of the production
and use of renewable fuels on the envi-
ronment, including on air quality, cli-
mate change, conversion of wet lands,
eco-systems, wildlife habitat, water
quality, and water supply;
‘‘(II) the impact of renewable fuels
on the energy security of the United
States;
‘‘(III) the expected annual rate of
future commercial production of re-
newable 
fuels, 
including 
advanced
biofuels in each category (cellulosic
biofuel and biomass-based diesel);
‘‘(IV) the impact of renewable
fuels on the infrastructure of the
United States, including deliverability
of materials, goods, and products other
than renewable fuel, and the suffi-
ciency of infrastructure to deliver and
use renewable fuel;
‘‘(V) the impact of the use of re-
newable fuels on the cost to consumers
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of transportation fuel and on the cost
to transport goods; and
‘‘(VI) the impact of the use of re-
newable fuels on other factors, includ-
ing job creation, the price and supply
of agricultural commodities, rural eco-
nomic development, and food prices.
The Administrator shall promulgate rules
establishing the applicable volumes under
this clause no later than 14 months before
the first year for which such applicable vol-
ume will apply.
‘‘(iii) APPLICABLE
VOLUME
OF
AD-
VANCED BIOFUEL.—For the purpose of mak-
ing the determinations in clause (ii), for
each calendar year, the applicable volume of
advanced biofuel shall be at least the same
percentage of the applicable volume of re-
newable fuel as in calendar year 2022.
‘‘(iv) APPLICABLE
VOLUME
OF
CEL-
LULOSIC
BIOFUEL.—For the purpose of
making the determinations in clause (ii),
for each calendar year, the applicable vol-
ume of cellulosic biofuel established by the
Administrator shall be based on the as-
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sumption that the Administrator will not
need to issue a waiver for such years under
paragraph (7)(D).
‘‘(v) MINIMUM APPLICABLE VOLUME OF
BIOMASS-BASED DIESEL.—For the purpose
of making the determinations in clause (ii),
the applicable volume of biomass-based die-
sel shall not be less than the applicable vol-
ume listed in clause (i)(IV) for calendar
year 2012.’’.
(b) APPLICABLE PERCENTAGES.—Paragraph (3) of
section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(3))
is amended as follows:
(1) In subparagraph (A), by striking ‘‘2011’’
and inserting ‘‘2021’’.
(2) In subparagraph (A), by striking ‘‘gasoline’’
and inserting ‘‘transportation fuel, biomass-based die-
sel, and cellulosic biofuel’’.
(3) In subparagraph (B), by striking ‘‘2012’’
and inserting ‘‘2021’’ in clause (i).
(4) In subparagraph (B), by striking ‘‘gasoline’’
and inserting ‘‘transportation fuel’’ in clause (ii)(II).
(c) MODIFICATION OF GREENHOUSE GAS PERCENT-
AGES.—Paragraph (4) of section 211(o) of the Clean Air
Act (42 U.S.C. 7545(o)(4)) is amended to read as follows:
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‘‘(4) MODIFICATION OF GREENHOUSE GAS RE-
DUCTION PERCENTAGES.—
‘‘(A) IN
GENERAL.—The Administrator
may, in the regulations under the last sentence
of paragraph (2)(A)(i), adjust the 20 percent, 50
percent, and 60 percent reductions in lifecycle
greenhouse gas emissions specified in paragraphs
(2)(A)(i)(relating to renewable fuel), (1)(D) (re-
lating to biomass-based diesel), (1)(B)(i)(relating
to advanced biofuel), and (1)(E) (relating to cel-
lulosic biofuel) to a lower percentage. For the 50
and 60 percent reductions, the Administrator
may make such an adjustment only if he deter-
mines that generally such reduction is not com-
mercially feasible for fuels made using a variety
of feedstocks, technologies, and processes to meet
the applicable reduction.
‘‘(B) AMOUNT
OF
ADJUSTMENT.—In pro-
mulgating regulations under this paragraph, the
specified 50 percent reduction in greenhouse gas
emissions from advanced biofuel and in biomass-
based diesel may not be reduced below 40 per-
cent. The specified 20 percent reduction in green-
house gas emissions from renewable fuel may not
be reduced below 10 percent, and the specified 60
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percent reduction in greenhouse gas emissions
from cellulosic biofuel may not be reduced below
50 percent.
‘‘(C) ADJUSTED
REDUCTION
LEVELS.—An
adjustment under this paragraph to a percent
less than the specified 20 percent greenhouse gas
reduction for renewable fuel shall be the min-
imum possible adjustment, and the adjusted
greenhouse gas reduction shall be established by
the Administrator at the maximum achievable
level, taking cost in consideration, for natural
gas fired corn-based ethanol plants, allowing for
the use of a variety of technologies and processes.
An adjustment in the 50 or 60 percent green-
house gas levels shall be the minimum possible
adjustment for the fuel or fuels concerned, and
the adjusted greenhouse gas reduction shall be es-
tablished at the maximum achievable level, tak-
ing cost in consideration, allowing for the use of
a variety of feedstocks, technologies, and proc-
esses.
‘‘(D) 5-YEAR
REVIEW.—Whenever the Ad-
ministrator makes any adjustment under this
paragraph, not later than 5 years thereafter he
shall review and revise (based upon the same cri-
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teria and standards as required for the initial
adjustment) the regulations establishing the ad-
justed level.
‘‘(E) SUBSEQUENT
ADJUSTMENTS.—After
the Administrator has promulgated a final rule
under the last sentence of paragraph (2)(A)(i)
with respect to the method of determining
lifecycle greenhouse gas emissions, except as pro-
vided in subparagraph (D), the Administrator
may not adjust the percent greenhouse gas reduc-
tion levels unless he determines that there has
been a significant change in the analytical meth-
odology used for determining the lifecycle green-
house gas emissions. If he makes such determina-
tion, he may adjust the 20, 50, or 60 percent re-
duction levels through rulemaking using the cri-
teria and standards set forth in this paragraph.
‘‘(F) LIMIT ON UPWARD ADJUSTMENTS.—If,
under subparagraph (D) or (E), the Adminis-
trator revises a percent level adjusted as provided
in subparagraph (A), (B), and (C) to a higher
percent, such higher percent may not exceed the
applicable 
percent 
specified 
in 
paragraph
(2)(A)(i), (1)(D),(1)(B)(i), or (1)(E).
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‘‘(G) APPLICABILITY OF ADJUSTMENTS.—If
the Administrator adjusts, or revises, a percent
level referred to in this paragraph or makes a
change in the analytical methodology used for
determining the lifecycle greenhouse gas emis-
sions, such adjustment, revision, or change (or
any combination thereof) shall only apply to re-
newable fuel from new facilities that commence
construction after the effective date of such ad-
justment, revision, or change.’’.
(d) CREDITS FOR ADDITIONAL RENEWABLE FUEL.—
Paragraph (5) of section 211(o) of the Clean Air Act (42
U.S.C. 7545(o)(5)) is amended by adding the following new
subparagraph at the end thereof:
‘‘(E) CREDITS
FOR
ADDITIONAL
RENEW-
ABLE FUEL.—The Administrator may issue reg-
ulations providing (i) for the generation of an
appropriate amount of credits by any person
that refines, blends, or imports additional renew-
able fuels specified by the Administrator and (ii)
for the use of such credits by the generator, or the
transfer of all or a portion of the credits to an-
other person, for the purpose of complying with
paragraph (2).’’.
(e) WAIVERS.—
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(1) IN GENERAL.—Paragraph (7)(A) of section
211(o) of the Clean Air Act (42 U.S.C. 7545(o)(7)(A))
is amended by inserting ‘‘, by any person subject to
the requirements of this subsection, or by the Admin-
istrator on his own motion’’ after ‘‘one or more
States’’ in subparagraph (A) and by striking out
‘‘State’’ in subparagraph (B).
(2) CELLULOSIC
BIOFUEL.—Paragraph (7) of
section 211(o) of the Clean Air Act (42 U.S.C.
7545(o)(7)) is amended by adding the following at the
end thereof:
‘‘(D) CELLULOSIC BIOFUEL.—(i) For any
calendar year for which the projected volume of
cellulosic biofuel production is less than the min-
imum applicable volume established under para-
graph (2)(B), as determined by the Adminis-
trator based on the estimate provided under
paragraph (3)(A), not later than November 30 of
the preceding calendar year, the Administrator
shall reduce the applicable volume of cellulosic
biofuel required under paragraph (2)(B) to the
projected volume available during that calendar
year. For any calendar year in which the Ad-
ministrator makes such a reduction, the Admin-
istrator may also reduce the applicable volume of
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renewable fuel and advanced biofuels require-
ment established under paragraph (2)(B) by the
same or a lesser volume.
‘‘(ii) Whenever the Administrator reduces
the minimum cellulosic biofuel volume under this
subparagraph, the Administrator shall make
available for sale cellulosic biofuel credits at the
higher of $0.25 per gallon or the amount by
which $3.00 per gallon exceeds the average
wholesale price of a gallon of gasoline in the
United States. Such amounts shall be adjusted
for inflation by the Administrator for years after
2008.
‘‘(iii) 18 months after date of enactment of
this subparagraph, the Administrator shall pro-
mulgate regulations to govern the issuance of
credits under this subparagraph. The regulations
shall set forth the method for determining the
exact price of credits in the event of a waiver.
The price of such credits shall not be changed
more frequently than once each quarter. These
regulations shall include such provisions, includ-
ing limiting the credits’ uses and useful life, as
the Administrator deems appropriate to assist
market liquidity and transparency, to provide
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appropriate certainty for regulated entities and
renewable fuel producers, and to limit any po-
tential misuse of cellulosic biofuel credits to re-
duce the use of other renewable fuels, and for
such other purposes as the Administrator deter-
mines will help achieve the goals of this sub-
section. The regulations shall limit the number of
cellulosic biofuel credits for any calendar year to
the minimum applicable volume (as reduced
under this subparagraph) of cellulosic biofuel for
that year.’’.
(3) BIOMASS-BASED DIESEL.—Paragraph (7) of
section 211(o) of the Clean Air Act (42 U.S.C.
7545(o)(7)) is amended by adding the following at the
end thereof:
‘‘(E) BIOMASS-BASED DIESEL.—
‘‘(i) MARKET
EVALUATION.—The Ad-
ministrator, in consultation with the Sec-
retary of Energy and the Secretary of Agri-
culture, shall periodically evaluate the im-
pact of the biomass-based diesel require-
ments established under this paragraph on
the price of diesel fuel.
‘‘(ii) WAIVER.—If the Administrator
determines that there is a significant renew-
†
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able feedstock disruption or other market
circumstances that would make the price of
biomass-based diesel fuel increase signifi-
cantly, the Administrator, in consultation
with the Secretary of Energy and the Sec-
retary of Agriculture, shall issue an order to
reduce, for up to a 60-day period, the quan-
tity of biomass-based diesel required under
subparagraph (A) by an appropriate quan-
tity that does not exceed 15 percent of the
applicable annual requirement for biomass-
based diesel. For any calendar year in
which the Administrator makes a reduction
under this subparagraph, the Administrator
may also reduce the applicable volume of re-
newable fuel and advanced biofuels require-
ment established under paragraph (2)(B) by
the same or a lesser volume.
‘‘(iii) EXTENSIONS.—If the Adminis-
trator determines that the feedstock disrup-
tion or circumstances described in clause
(ii) is continuing beyond the 60-day period
described in clause (ii) or this clause, the
Administrator, in consultation with the
Secretary of Energy and the Secretary of
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Agriculture, may issue an order to reduce,
for up to an additional 60-day period, the
quantity of biomass-based diesel required
under subparagraph (A) by an appropriate
quantity that does not exceed an additional
15 percent of the applicable annual require-
ment for biomass-based diesel.
‘‘(F) MODIFICATION
OF
APPLICABLE
VOL-
UMES.—For any of the tables in paragraph
(2)(B), if the Administrator waives—
‘‘(i) at least 20 percent of the applica-
ble volume requirement set forth in any
such table for 2 consecutive years; or
‘‘(ii) at least 50 percent of such volume
requirement for a single year,
the Administrator shall promulgate a rule (with-
in one year after issuing such waiver) that
modifies the applicable volumes set forth in the
table concerned for all years following the final
year to which the waiver applies, except that no
such modification in applicable volumes shall be
made for any year before 2016. In promulgating
such a rule, the Administrator shall comply with
the processes, criteria, and standards set forth in
paragraph (2)(B)(ii).’’.
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SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STAND-
ARD.
(a) IN GENERAL.—The Secretary of Energy, in con-
sultation with the Secretary of Agriculture and the Admin-
istrator of the Environmental Protection Agency, shall enter
into an arrangement with the National Academy of
Sciences under which the Academy shall conduct a study
to assess the impact of the requirements described in section
211(o) of the Clean Air Act on each industry relating to
the production of feed grains, livestock, food, forest products,
and energy.
(b) PARTICIPATION.—In conducting the study under
this section, the National Academy of Sciences shall seek
the participation, and consider the input, of—
(1) producers of feed grains;
(2) producers of livestock, poultry, and pork
products;
(3) producers of food and food products;
(4) producers of energy;
(5) individuals and entities interested in issues
relating to conservation, the environment, and nutri-
tion;
(6) users and consumer of renewable fuels;
(7) producers and users of biomass feedstocks;
and
(8) land grant universities.
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(c) CONSIDERATIONS.—In conducting the study, the
National Academy of Sciences shall consider—
(1) the likely impact on domestic animal agri-
culture feedstocks that, in any crop year, are signifi-
cantly below current projections;
(2) policy options to alleviate the impact on do-
mestic animal agriculture feedstocks that are signifi-
cantly below current projections; and
(3) policy options to maintain regional agricul-
tural and silvicultural capability.
(d) COMPONENTS.—The study shall include—
(1) a description of the conditions under which
the requirements described in section 211(o) of the
Clean Air Act should be suspended or reduced to pre-
vent adverse impacts to domestic animal agriculture
feedstocks described in subsection (c)(2) or regional
agricultural and silvicultural capability described in
subsection (c)(3); and
(2) recommendations for the means by which the
Federal Government could prevent or minimize ad-
verse economic hardships and impacts.
(e) DEADLINE FOR COMPLETION OF STUDY.—Not later
than 18 months after the date of enactment of this Act, the
Secretary shall submit to Congress a report that describes
the results of the study under this section.
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HR 6 EAS2
(f) PERIODIC REVIEWS.—Section 211(o) of the Clean
Air Act is amended by adding the following at the end
thereof:
‘‘(11) PERIODIC REVIEWS.—To allow for the ap-
propriate adjustment of the requirements described in
subparagraph (B) of paragraph (2), the Adminis-
trator shall conduct periodic reviews of—
‘‘(A) existing technologies;
‘‘(B) the feasibility of achieving compliance
with the requirements; and
‘‘(C) the impacts of the requirements de-
scribed in subsection (a)(2) on each individual
and entity described in paragraph (2).’’.
SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVA-
TION IMPACTS.
(a) IN GENERAL.—Not later than 3 years after the en-
actment of this section and every 3 years thereafter, the Ad-
ministrator of the Environmental Protection Agency, in
consultation with the Secretary of Agriculture and the Sec-
retary of Energy, shall assess and report to Congress on
the impacts to date and likely future impacts of the require-
ments of section 211(o) of the Clean Air Act on the fol-
lowing:
(1) Environmental issues, including air quality,
effects on hypoxia, pesticides, sediment, nutrient and
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HR 6 EAS2
pathogen levels in waters, acreage and function of wa-
ters, and soil environmental quality.
(2) Resource conservation issues, including soil
conservation, water availability, and ecosystem health
and biodiversity, including impacts on forests, grass-
lands, and wetlands.
(3) The growth and use of cultivated invasive or
noxious plants and their impacts on the environment
and agriculture.
In advance of preparing the report required by this sub-
section, the Administrator may seek the views of the Na-
tional Academy of Sciences or another appropriate inde-
pendent research institute. The report shall include the an-
nual volume of imported renewable fuels and feedstocks for
renewable fuels, and the environmental impacts outside the
United States of producing such fuels and feedstocks. The
report required by this subsection shall include rec-
ommendations for actions to address any adverse impacts
found.
(b) EFFECT ON AIR QUALITY AND OTHER ENVIRON-
MENTAL REQUIREMENTS.—Except as provided in section
211(o)(12) of the Clean Air Act, nothing in the amendments
made by this title to section 211(o) of the Clean Air Act
shall be construed as superseding, or limiting, any more
environmentally protective requirement under the Clean
†
HR 6 EAS2
Air Act, or under any other provision of State or Federal
law or regulation, including any environmental law or reg-
ulation.
SEC. 205. BIOMASS BASED DIESEL AND BIODIESEL LABEL-
ING.
(a) IN GENERAL.—Each retail diesel fuel pump shall
be labeled in a manner that informs consumers of the per-
cent of biomass-based diesel or biodiesel that is contained
in the biomass-based diesel blend or biodiesel blend that is
offered for sale, as determined by the Federal Trade Com-
mission.
(b) LABELING REQUIREMENTS.—Not later than 180
days after the date of enactment of this section, the Federal
Trade Commission shall promulgate biodiesel labeling re-
quirements as follows:
(1) Biomass-based diesel blends or biodiesel
blends that contain less than or equal to 5 percent
biomass-based diesel or biodiesel by volume and that
meet ASTM D975 diesel specifications shall not re-
quire any additional labels.
(2) Biomass based diesel blends or biodiesel
blends that contain more than 5 percent biomass-
based diesel or biodiesel by volume but not more than
20 percent by volume shall be labeled ‘‘contains bio-
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mass-based diesel or biodiesel in quantities between 5
percent and 20 percent’’.
(3) Biomass-based diesel or biodiesel blends that
contain more than 20 percent biomass based or bio-
diesel by volume shall be labeled ‘‘contains more than
20 percent biomass-based diesel or biodiesel’’.
(c) DEFINITIONS.—In this section:
(1) ASTM.—The term ‘‘ASTM’’ means the Amer-
ican Society of Testing and Materials.
(2) BIOMASS-BASED
DIESEL.—The term ‘‘bio-
mass-based diesel’’ means biodiesel as defined in sec-
tion 312(f) of the Energy Policy Act of 1992 (42
U.S.C. 13220(f)).
(3) BIODIESEL.—The term ‘‘biodiesel’’ means the
monoalkyl esters of long chain fatty acids derived
from plant or animal matter that meet—
(A) the registration requirements for fuels
and fuel additives under this section; and
(B) the requirements of ASTM standard
D6751.
(4) BIOMASS-BASED
DIESEL
AND
BIODIESEL
BLENDS.—The terms ‘‘biomass-based diesel blend’’
and ‘‘biodiesel blend’’ means a blend of ‘‘biomass-
based diesel’’ or ‘‘biodiesel’’ fuel that is blended with
petroleum based diesel fuel.
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HR 6 EAS2
SEC. 206. STUDY OF CREDITS FOR USE OF RENEWABLE
ELECTRICITY IN ELECTRIC VEHICLES.
(a) DEFINITION OF ELECTRIC VEHICLE.—In this sec-
tion, the term ‘‘electric vehicle’’ means an electric motor ve-
hicle (as defined in section 601 of the Energy Policy Act
of 1992 (42 U.S.C. 13271)) for which the rechargeable stor-
age battery—
(1) receives a charge directly from a source of
electric current that is external to the vehicle; and
(2) provides a minimum of 80 percent of the mo-
tive power of the vehicle.
(b) STUDY.—The Administrator of the Environmental
Protection Agency shall conduct a study on the feasibility
of issuing credits under the program established under sec-
tion 211(o) of the Clean Air Act to electric vehicles powered
by electricity produced from renewable energy sources.
(c) REPORT.—Not later than 18 months after the date
of enactment of this Act, the Administrator shall submit
to the Committee on Energy and Natural Resources of the
United States Senate and the Committee on Energy and
Commerce of the United States House of Representatives a
report that describes the results of the study, including a
description of—
(1) existing programs and studies on the use of
renewable electricity as a means of powering electric
vehicles; and
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HR 6 EAS2
(2) alternatives for—
(A) designing a pilot program to determine
the feasibility of using renewable electricity to
power electric vehicles as an adjunct to a renew-
able fuels mandate;
(B) allowing the use, under the pilot pro-
gram designed under subparagraph (A), of elec-
tricity generated from nuclear energy as an ad-
ditional source of supply;
(C) identifying the source of electricity used
to power electric vehicles; and
(D) equating specific quantities of elec-
tricity to quantities of renewable fuel under sec-
tion 211(o) of the Clean Air Act.
SEC. 
207. 
GRANTS 
FOR 
PRODUCTION 
OF 
ADVANCED
BIOFUELS.
(a) IN GENERAL.—The Secretary of Energy shall es-
tablish a grant program to encourage the production of ad-
vanced biofuels.
(b) REQUIREMENTS
AND
PRIORITY.—In making
grants under this section, the Secretary—
(1) shall make awards to the proposals for ad-
vanced biofuels with the greatest reduction in lifecycle
greenhouse gas emissions compared to the comparable
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motor vehicle fuel lifecycle emissions during calendar
year 2005; and
(2) shall not make an award to a project that
does not achieve at least a 80 percent reduction in
such lifecycle greenhouse gas emissions.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$500,000,000 for the period of fiscal years 2008 through
2015.
SEC. 208. INTEGRATED CONSIDERATION OF WATER QUAL-
ITY IN DETERMINATIONS ON FUELS AND
FUEL ADDITIVES.
Section 211(c)(1) of the Clean Air Act (42 U.S.C.
7545(c)(1)) is amended as follows:
(1) By striking ‘‘nonroad vehicle (A) if in the
judgment of the Administrator’’ and inserting
‘‘nonroad vehicle if, in the judgment of the Adminis-
trator, any fuel or fuel additive or’’; and
(2) In subparagraph (A), by striking ‘‘air pollu-
tion which’’ and inserting ‘‘air pollution or water
pollution (including any degradation in the quality
of groundwater) that’’.
SEC. 209. ANTI-BACKSLIDING.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by adding at the end the following:
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‘‘(v) PREVENTION
OF
AIR
QUALITY
DETERIORA-
TION.—
‘‘(1) STUDY.—
‘‘(A) IN
GENERAL.—Not later than 18
months after the date of enactment of this sub-
section, the Administrator shall complete a study
to determine whether the renewable fuel volumes
required by this section will adversely impact air
quality as a result of changes in vehicle and en-
gine emissions of air pollutants regulated under
this Act.
‘‘(B) CONSIDERATIONS.—The study shall
include consideration of—
‘‘(i) different blend levels, types of re-
newable fuels, and available vehicle tech-
nologies; and
‘‘(ii) appropriate national, regional,
and local air quality control measures.
‘‘(2) REGULATIONS.—Not later than 3 years
after the date of enactment of this subsection, the Ad-
ministrator shall—
‘‘(A) promulgate fuel regulations to imple-
ment appropriate measures to mitigate, to the
greatest extent achievable, considering the results
of the study under paragraph (1), any adverse
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impacts on air quality, as the result of the re-
newable volumes required by this section; or
‘‘(B) make a determination that no such
measures are necessary.’’.
SEC. 210. EFFECTIVE DATE, SAVINGS PROVISION, AND
TRANSITION RULES.
(a) TRANSITION RULES.—(1) For calendar year 2008,
transportation fuel sold or introduced into commerce in the
United States (except in noncontiguous States or terri-
tories), that is produced from facilities that commence con-
struction after the date of enactment of this Act shall be
treated as renewable fuel within the meaning of section
211(o) of the Clean Air Act only if it achieves at least a
20 percent reduction in lifecycle greenhouse gas emissions
compared to baseline lifecycle greenhouse gas emissions. For
calendar years 2008 and 2009, any ethanol plant that is
fired with natural gas, biomass, or any combination thereof
is deemed to be in compliance with such 20 percent reduc-
tion requirement and with the 20 percent reduction require-
ment of section 211(o)(1) of the Clean Air Act. The terms
used in this subsection shall have the same meaning as pro-
vided in the amendment made by this Act to section 211(o)
of the Clean Air Act.
(2) Until January 1, 2009, the Administrator of the
Environmental Protection Agency shall implement section
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211(o) of the Clean Air Act and the rules promulgated
under that section in accordance with the provisions of that
section as in effect before the enactment of this Act and in
accordance with the rules promulgated before the enactment
of this Act, except that for calendar year 2008, the number
‘‘9.0’’ shall be substituted for the number ‘‘5.4’’ in the table
in section 211(o)(2)(B) and in the corresponding rules pro-
mulgated to carry out those provisions. The Administrator
is authorized to take such other actions as may be necessary
to carry out this paragraph notwithstanding any other pro-
vision of law.
(b) SAVINGS CLAUSE.—Section 211(o) of the Clean Air
Act (42 U.S.C. 7545(o)) is amended by adding the following
new paragraph at the end thereof:
‘‘(12) EFFECT ON OTHER PROVISIONS.—Nothing
in this subsection, or regulations issued pursuant to
this subsection, shall affect or be construed to affect
the regulatory status of carbon dioxide or any other
greenhouse gas, or to expand or limit regulatory au-
thority regarding carbon dioxide or any other green-
house gas, for purposes of other provisions (including
section 165) of this Act. The previous sentence shall
not affect implementation and enforcement of this
subsection.’’.
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(c) EFFECTIVE DATE.—The amendments made by this
title to section 211(o) of the Clean Air Act shall take effect
January 1, 2009, except that the Administrator shall pro-
mulgate regulations to carry out such amendments not later
than one year after the enactment of this Act.
Subtitle B—Biofuels Research and
Development
SEC. 221. BIODIESEL.
(a) BIODIESEL STUDY.—Not later than 180 days after
the date of enactment of this Act, the Secretary, in consulta-
tion with the Administrator of the Environmental Protec-
tion Agency, shall submit to Congress a report on any re-
search and development challenges inherent in increasing
the proportion of diesel fuel sold in the United States that
is biodiesel.
(b) MATERIAL FOR THE ESTABLISHMENT OF STAND-
ARDS.—The Director of the National Institute of Standards
and Technology, in consultation with the Secretary, shall
make publicly available the physical property data and
characterization of biodiesel and other biofuels as appro-
priate.
SEC. 222. BIOGAS.
Not later than 180 days after the date of enactment
of this Act, the Secretary, in consultation with the Adminis-
trator of the Environmental Protection Agency, shall sub-
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mit to Congress a report on any research and development
challenges inherent in increasing the amount of transpor-
tation fuels sold in the United States that are fuel with
biogas or a blend of biogas and natural gas.
SEC. 223. GRANTS FOR BIOFUEL PRODUCTION RESEARCH
AND DEVELOPMENT IN CERTAIN STATES.
(a) IN GENERAL.—The Secretary shall provide grants
to eligible entities for research, development, demonstration,
and commercial application of biofuel production tech-
nologies in States with low rates of ethanol production, in-
cluding low rates of production of cellulosic biomass eth-
anol, as determined by the Secretary.
(b) ELIGIBILITY.—To be eligible to receive a grant
under this section, an entity shall—
(1)(A) be an institution of higher education (as
defined in section 2 of the Energy Policy Act of 2005
(42 U.S.C. 15801)), including tribally controlled col-
leges or universities, located in a State described in
subsection (a); or
(B) be a consortium including at least 1 such in-
stitution of higher education, and industry, State
agencies, Indian tribal agencies, National Labora-
tories, or local government agencies located in the
State; and
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(2) have proven experience and capabilities with
relevant technologies.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary to carry out
this section $25,000,000 for each of fiscal years 2008
through 2010.
SEC. 224. BIOREFINERY ENERGY EFFICIENCY.
Section 932 of Energy Policy Act of 2005 (42 U.S.C.
16232) is amended by adding at the end the following new
subsections:
‘‘(g) BIOREFINERY ENERGY EFFICIENCY.—The Sec-
retary shall establish a program of research, development,
demonstration, and commercial application for increasing
energy efficiency and reducing energy consumption in the
operation of biorefinery facilities.
‘‘(h) RETROFIT TECHNOLOGIES FOR THE DEVELOP-
MENT OF ETHANOL FROM CELLULOSIC MATERIALS.—The
Secretary shall establish a program of research, develop-
ment, demonstration, and commercial application on tech-
nologies and processes to enable biorefineries that exclu-
sively use corn grain or corn starch as a feedstock to
produce ethanol to be retrofitted to accept a range of bio-
mass, including lignocellulosic feedstocks.’’.
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SEC. 225. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED
VEHICLES TO USE E–85 FUEL.
(a) IN GENERAL.—The Secretary, in consultation with
the Secretary of Transportation and the Administrator of
the Environmental Protection Agency, shall conduct a
study of whether optimizing flexible fueled vehicles to oper-
ate using E–85 fuel would increase the fuel efficiency of
flexible fueled vehicles.
(b) REPORT.—Not later than 180 days after the date
of enactment of this Act, the Secretary shall submit to the
Committee on Science and Technology and the Committee
on Energy and Commerce of the House of Representatives,
and to the Committee on Energy and Natural Resources,
the Committee on Environment and Public Works, and the
Committee on Commerce, Science, and Transportation of
the Senate, a report that describes the results of the study
under this section, including any recommendations of the
Secretary.
SEC. 226. STUDY OF ENGINE DURABILITY AND PERFORM-
ANCE ASSOCIATED WITH THE USE OF BIO-
DIESEL.
(a) IN GENERAL.—Not later than 30 days after the
date of enactment of this Act, the Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, shall initiate a study on the effects of the use of
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biodiesel on the performance and durability of engines and
engine systems.
(b) COMPONENTS.—The study under this section shall
include—
(1) an assessment of whether the use of biodiesel
lessens the durability and performance of conven-
tional diesel engines and engine systems; and
(2) an assessment of the effects referred to in sub-
section (a) with respect to biodiesel blends at varying
concentrations, including the following percentage
concentrations of biodiesel:
(A) 5 percent biodiesel.
(B) 10 percent biodiesel.
(C) 20 percent biodiesel.
(D) 30 percent biodiesel.
(E) 100 percent biodiesel.
(c) REPORT.—Not later than 24 months after the date
of enactment of this Act, the Secretary shall submit to the
Committee on Science and Technology and the Committee
on Energy and Commerce of the House of Representatives,
and to the Committee on Energy and Natural Resources
and the Committee on Environment and Public Works of
the Senate, a report that describes the results of the study
under this section, including any recommendations of the
Secretary.
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SEC. 227. STUDY OF OPTIMIZATION OF BIOGAS USED IN
NATURAL GAS VEHICLES.
(a) IN GENERAL.—The Secretary, in consultation with
the Administrator of the Environmental Protection Agency
and the Secretary of Transportation, shall conduct a study
of methods of increasing the fuel efficiency of vehicles using
biogas by optimizing natural gas vehicle systems that can
operate on biogas, including the advancement of vehicle fuel
systems and the combination of hybrid-electric and plug-
in hybrid electric drive platforms with natural gas vehicle
systems using biogas.
(b) REPORT.—Not later than 180 days after the date
of enactment of this Act, the Secretary shall submit to the
Committee on Energy and Natural Resources, the Com-
mittee on Environment and Public Works, and the Com-
mittee on Commerce, Science, and Transportation of the
Senate, and to the Committee on Science and Technology
and the Committee on Energy and Commerce of the House
of Representatives, a report that describes the results of the
study, including any recommendations of the Secretary.
SEC. 228. ALGAL BIOMASS.
(a) IN GENERAL.—Not later than 90 days after the
date of enactment of this Act, the Secretary shall submit
to the Committee on Science and Technology of the House
of Representatives and the Committee on Energy and Nat-
ural Resources of the Senate a report on the progress of
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the research and development that is being conducted on
the use of algae as a feedstock for the production of biofuels.
(b) CONTENTS.—The report shall identify continuing
research and development challenges and any regulatory or
other barriers found by the Secretary that hinder the use
of this resource, as well as recommendations on how to en-
courage and further its development as a viable transpor-
tation fuel.
SEC. 229. BIOFUELS AND BIOREFINERY INFORMATION CEN-
TER.
(a) IN GENERAL.—The Secretary, in cooperation with
the Secretary of Agriculture, shall establish a biofuels and
biorefinery information center to make available to inter-
ested parties information on—
(1) renewable fuel feedstocks, including the vari-
eties of fuel capable of being produced from various
feedstocks;
(2) biorefinery processing techniques related to
various renewable fuel feedstocks;
(3) the distribution, blending, storage, and retail
dispensing infrastructure necessary for the transport
and use of renewable fuels;
(4) Federal and State laws and incentives re-
lated to renewable fuel production and use;
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(5) renewable fuel research and development ad-
vancements;
(6) renewable fuel development and biorefinery
processes and technologies;
(7) renewable fuel resources, including informa-
tion on programs and incentives for renewable fuels;
(8) renewable fuel producers;
(9) renewable fuel users; and
(10) potential renewable fuel users.
(b) ADMINISTRATION.—In administering the biofuels
and biorefinery information center, the Secretary shall—
(1) continually update information provided by
the center;
(2) make information available relating to proc-
esses and technologies for renewable fuel production;
(3) make information available to interested par-
ties on the process for establishing a biorefinery; and
(4) make information and assistance provided by
the center available through a toll-free telephone num-
ber and website.
(c) COORDINATION AND NONDUPLICATION.—To max-
imum extent practicable, the Secretary shall ensure that the
activities under this section are coordinated with, and do
not duplicate the efforts of, centers at other government
agencies.
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(d) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section.
SEC. 230. CELLULOSIC ETHANOL AND BIOFUELS RE-
SEARCH.
(a) DEFINITION OF ELIGIBLE ENTITY.—In this sec-
tion, the term ‘‘eligible entity’’ means—
(1) an 1890 Institution (as defined in section 2
of the Agricultural Research, Extension, and Edu-
cation Reform Act of 1998 (7 U.S.C. 7061));
(2) a part B institution (as defined in section
322 of the Higher Education Act of 1965 (20 U.S.C.
1061)) (commonly referred to as ‘‘Historically Black
Colleges and Universities’’);
(3) a tribal college or university (as defined in
section 316(b) of the Higher Education Act of 1965
(20 U.S.C. 1059c(b)); or
(4) a Hispanic-serving institution (as defined in
section 502(a) of the Higher Education Act of 1965
(20 U.S.C. 1101a(a)).
(b) GRANTS.—The Secretary shall make cellulosic eth-
anol and biofuels research and development grants to 10
eligible entities selected by the Secretary to receive a grant
under this section through a peer-reviewed competitive proc-
ess.
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(c) COLLABORATION.—An eligible entity that is se-
lected to receive a grant under subsection (b) shall collabo-
rate with 1 of the Bioenergy Research Centers of the Office
of Science of the Department.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary to make
grants described in subsection (b) $50,000,000 for fiscal
year 2008, to remain available until expended.
SEC. 231. BIOENERGY RESEARCH AND DEVELOPMENT, AU-
THORIZATION OF APPROPRIATION.
Section 931 of the Energy Policy Act of 2005 (42
U.S.C. 16231) is amended—
(1) in subsection (b)—
(A) in paragraph (2), by striking ‘‘and’’ at
the end;
(B) in paragraph (3), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(4) $963,000,000 for fiscal year 2010.’’; and
(2) in subsection (c)—
(A) in paragraph (2)—
(i) by striking ‘‘$251,000,000’’ and in-
serting ‘‘$377,000,000’’; and
(ii) by striking ‘‘and’’ at the end;
(B) in paragraph (3)—
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sustainable use of resources, including soil, water, en-
ergy, forests, and land, and ensure protection of air,
water, and soil quality; and’’.
(b) TOOLS AND EVALUATION.—Section 307(d) of the
Biomass Research and Development Act of 2000 (7 U.S.C.
8606(d)) is amended—
(1) in paragraph (3)(E), by striking ‘‘and’’ at
the end;
(2) in paragraph (4), by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(5) the improvement and development of ana-
lytical tools to facilitate the analysis of life-cycle en-
ergy and greenhouse gas emissions, including emis-
sions related to direct and indirect land use changes,
attributable to all potential biofuel feedstocks and pro-
duction processes; and
‘‘(6) the systematic evaluation of the impact of
expanded biofuel production on the environment, in-
cluding forest lands, and on the food supply for hu-
mans and animals.’’.
(c) 
SMALL-SCALE
PRODUCTION
AND
USE
OF
BIOFUELS.—Section 307(e) of the Biomass Research and
Development Act of 2000 (7 U.S.C. 8606(e)) is amended—
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(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(4) to facilitate small-scale production, local,
and on-farm use of biofuels, including the develop-
ment of small-scale gasification technologies for pro-
duction of biofuel from cellulosic feedstocks.’’.
SEC. 233. BIOENERGY RESEARCH CENTERS.
Section 977 of the Energy Policy Act of 2005 (42
U.S.C. 16317) is amended by adding at the end the fol-
lowing:
‘‘(f) BIOENERGY RESEARCH CENTERS.—
‘‘(1) ESTABLISHMENT
OF
CENTERS.—In car-
rying out the program under subsection (a), the Sec-
retary shall establish at least 7 bioenergy research
centers, which may be of varying size.
‘‘(2) GEOGRAPHIC
DISTRIBUTION.—The Sec-
retary shall establish at least 1 bioenergy research
center in each Petroleum Administration for Defense
District or Subdistrict of a Petroleum Administration
for Defense District.
‘‘(3) GOALS.—The goals of the centers established
under this subsection shall be to accelerate basic
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transformational 
research 
and 
development 
of
biofuels, including biological processes.
‘‘(4) SELECTION AND DURATION.—
‘‘(A) IN
GENERAL.—A center under this
subsection shall be selected on a competitive basis
for a period of 5 years.
‘‘(B) REAPPLICATION.—After the end of the
period described in subparagraph (A), a grantee
may reapply for selection on a competitive basis.
‘‘(5) INCLUSION.—A center that is in existence
on the date of enactment of this subsection—
‘‘(A) shall be counted towards the require-
ment for establishment of at least 7 bioenergy re-
search centers; and
‘‘(B) may continue to receive support for a
period of 5 years beginning on the date of estab-
lishment of the center.’’.
SEC. 234. UNIVERSITY BASED RESEARCH AND DEVELOP-
MENT GRANT PROGRAM.
(a) ESTABLISHMENT.—The Secretary shall establish a
competitive grant program, in a geographically diverse
manner, for projects submitted for consideration by institu-
tions of higher education to conduct research and develop-
ment of renewable energy technologies. Each grant made
shall not exceed $2,000,000.
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(b) ELIGIBILITY.—Priority shall be given to institu-
tions of higher education with—
(1) established programs of research in renewable
energy;
(2) locations that are low income or outside of
an urbanized area;
(3) a joint venture with an Indian tribe; and
(4) proximity to trees dying of disease or insect
infestation as a source of woody biomass.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary $25,000,000
for carrying out this section.
(d) DEFINITIONS.—In this section:
(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has
the meaning as defined in section 126(c) of the En-
ergy Policy Act of 2005.
(2) RENEWABLE ENERGY.—The term ‘‘renewable
energy’’ has the meaning as defined in section 902 of
the Energy Policy Act of 2005.
(3) URBANIZED
AREA.—The term ‘‘urbanized
area’’ has the mean as defined by the U.S. Bureau of
the Census.
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Subtitle C—Biofuels Infrastructure
SEC. 241. PROHIBITION ON FRANCHISE AGREEMENT RE-
STRICTIONS RELATED TO RENEWABLE FUEL
INFRASTRUCTURE.
(a) IN GENERAL.—Title I of the Petroleum Marketing
Practices Act (15 U.S.C. 2801 et seq.) is amended by adding
at the end the following:
‘‘SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLA-
TION OF RENEWABLE FUEL PUMPS.
‘‘(a) DEFINITION.—In this section:
‘‘(1) RENEWABLE FUEL.—The term ‘renewable
fuel’ means any fuel—
‘‘(A) at least 85 percent of the volume of
which consists of ethanol; or
‘‘(B) any mixture of biodiesel and diesel or
renewable diesel (as defined in regulations adopt-
ed pursuant to section 211(o) of the Clean Air
Act (40 CFR, Part 80)), determined without re-
gard to any use of kerosene and containing at
least 20 percent biodiesel or renewable diesel.
‘‘(2) 
FRANCHISE-RELATED
DOCUMENT.—The
term ‘franchise-related document’ means—
‘‘(A) a franchise under this Act; and
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‘‘(B) any other contract or directive of a
franchisor relating to terms or conditions of the
sale of fuel by a franchisee.
‘‘(b) PROHIBITIONS.—
‘‘(1) IN
GENERAL.—No franchise-related docu-
ment entered into or renewed on or after the date of
enactment of this section shall contain any provision
allowing a franchisor to restrict the franchisee or any
affiliate of the franchisee from—
‘‘(A) installing on the marketing premises
of the franchisee a renewable fuel pump or tank,
except that the franchisee’s franchisor may re-
strict the installation of a tank on leased mar-
keting premises of such franchisor;
‘‘(B) converting an existing tank or pump
on the marketing premises of the franchisee for
renewable fuel use, so long as such tank or pump
and the piping connecting them are either war-
ranted by the manufacturer or certified by a rec-
ognized standards setting organization to be
suitable for use with such renewable fuel;
‘‘(C) advertising (including through the use
of signage) the sale of any renewable fuel;
‘‘(D) selling renewable fuel in any specified
area on the marketing premises of the franchisee
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(including any area in which a name or logo of
a franchisor or any other entity appears);
‘‘(E) purchasing renewable fuel from sources
other than the franchisor if the franchisor does
not offer its own renewable fuel for sale by the
franchisee;
‘‘(F) listing renewable fuel availability or
prices, including on service station signs, fuel
dispensers, or light poles; or
‘‘(G) allowing for payment of renewable fuel
with a credit card,
so long as such activities described in subparagraphs
(A) through (G) do not constitute mislabeling, mis-
branding, willful adulteration, or other trademark
violations by the franchisee.
‘‘(2) EFFECT OF PROVISION.—Nothing in this
section shall be construed to preclude a franchisor
from requiring the franchisee to obtain reasonable in-
demnification and insurance policies.
‘‘(c) EXCEPTION
TO 3-GRADE REQUIREMENT.—No
franchise-related document that requires that 3 grades of
gasoline be sold by the applicable franchisee shall prevent
the franchisee from selling an renewable fuel in lieu of 1,
and only 1, grade of gasoline.’’.
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(b) DISPENSER FEASIBILITY STUDY.—Not later than
24 months after the date of enactment of this Act, the Sec-
retary, in consultation with the Department of Transpor-
tation, shall report to the Congress on the feasibility of re-
quiring motor fuel retailers to install E–85 compatible dis-
pensers and related systems at retail fuel facilities in re-
gions where flexible-fuel vehicle market penetration has
reached 15 percent of motor vehicles. In conducting such
study, the Secretary shall consider and report on the fol-
lowing factors:
(1) The commercial availability of E–85 fuel
and the number of competing E–85 wholesale sup-
pliers in a given region.
(2) The level of financial assistance provided on
an annual basis by the Federal Government, State
governments, and nonprofit entities for the installa-
tion of E–85 compatible infrastructure.
(3) The number of retailers whose retail locations
are unable to support more than 2 underground stor-
age tank dispensers.
(4) The expense incurred by retailers in the in-
stallation and sale of E–85 compatible dispensers and
related systems and any potential effects on the price
of motor vehicle fuel.
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SEC. 243. ETHANOL PIPELINE FEASIBILITY STUDY.
(a) IN GENERAL.—The Secretary, in coordination
with the Secretary of Transportation, shall conduct a study
of the feasibility of the construction of pipelines dedicated
to the transportation of ethanol.
(b) FACTORS FOR CONSIDERATION.—In conducting the
study under subsection (a), the Secretary shall take into
consideration—
(1) the quantity of ethanol production that
would make dedicated pipelines economically viable;
(2) existing or potential barriers to the construc-
tion of pipelines dedicated to the transportation of
ethanol, including technical, siting, financing, and
regulatory barriers;
(3) market risk (including throughput risk) and
means of mitigating the risk;
(4) regulatory, financing, and siting options that
would mitigate the risk and help ensure the construc-
tion of 1 or more pipelines dedicated to the transpor-
tation of ethanol;
(5) financial incentives that may be necessary
for the construction of pipelines dedicated to the
transportation of ethanol, including the return on eq-
uity that sponsors of the initial dedicated ethanol
pipelines will require to invest in the pipelines;
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(6) technical factors that may compromise the
safe transportation of ethanol in pipelines, including
identification of remedial and preventive measures to
ensure pipeline integrity; and
(7) such other factors as the Secretary considers
to be appropriate.
(c) REPORT.—Not later than 15 months after the date
of enactment of this Act, the Secretary shall submit to Con-
gress a report describing the results of the study conducted
under this section.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary to carry out
this section $1,000,000 for each of fiscal years 2008 and
2009, to remain available until expended.
SEC. 244. RENEWABLE FUEL INFRASTRUCTURE GRANTS.
(a) DEFINITION OF RENEWABLE FUEL BLEND.—For
purposes of this section, the term ‘‘renewable fuel blend’’
means gasoline blend that contain not less than 11 percent,
and not more than 85 percent, renewable fuel or diesel fuel
that contains at least 10 percent renewable fuel.
(b) INFRASTRUCTURE DEVELOPMENT GRANTS.—
(1) ESTABLISHMENT.—The Secretary shall estab-
lish a program for making grants for providing as-
sistance to retail and wholesale motor fuel dealers or
other entities for the installation, replacement, or con-
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version of motor fuel storage and dispensing infra-
structure to be used exclusively to store and dispense
renewable fuel blends.
(2) SELECTION
CRITERIA.—Not later than 12
months after the date of enactment of this Act, the
Secretary shall establish criteria for evaluating appli-
cations for grants under this subsection that will
maximize the availability and use of renewable fuel
blends, and that will ensure that renewable fuel blends
are available across the country. Such criteria shall
provide for—
(A) consideration of the public demand for
each renewable fuel blend in a particular geo-
graphic area based on State registration records
showing the number of flexible-fuel vehicles;
(B) consideration of the opportunity to cre-
ate or expand corridors of renewable fuel blend
stations along interstate or State highways;
(C) consideration of the experience of each
applicant with previous, similar projects;
(D) consideration of population, number of
flexible-fuel vehicles, number of retail fuel outlets,
and saturation of flexible-fuel vehicles; and
(E) priority consideration to applications
that—
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(i) are most likely to maximize dis-
placement of petroleum consumption, meas-
ured as a total quantity and a percentage;
(ii) are best able to incorporate exist-
ing infrastructure while maximizing, to the
extent practicable, the use of renewable fuel
blends; and
(iii) demonstrate the greatest commit-
ment on the part of the applicant to ensure
funding for the proposed project and the
greatest likelihood that the project will be
maintained or expanded after Federal as-
sistance under this subsection is completed.
(3) LIMITATIONS.—Assistance provided under
this subsection shall not exceed—
(A) 33 percent of the estimated cost of the
installation, replacement, or conversion of motor
fuel storage and dispensing infrastructure; or
(B) $180,000 for a combination of equip-
ment at any one retail outlet location.
(4) OPERATION
OF
RENEWABLE
FUEL
BLEND
STATIONS.—The Secretary shall establish rules that
set forth requirements for grant recipients under this
section that include providing to the public the renew-
able fuel blends, establishing a marketing plan that
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informs consumers of the price and availability of the
renewable fuel blends, clearly labeling the dispensers
and related equipment, and providing periodic re-
ports on the status of the renewable fuel blend sales,
the type and amount of the renewable fuel blends dis-
pensed at each location, and the average price of such
fuel.
(5) NOTIFICATION
REQUIREMENTS.—Not later
than the date on which each renewable fuel blend sta-
tion begins to offer renewable fuel blends to the public,
the grant recipient that used grant funds to construct
or upgrade such station shall notify the Secretary of
such opening. The Secretary shall add each new re-
newable fuel blend station to the renewable fuel blend
station locator on its Website when it receives notifi-
cation under this subsection.
(6) DOUBLE COUNTING.—No person that receives
a credit under section 30C of the Internal Revenue
Code of 1986 may receive assistance under this sec-
tion.
(7) RESERVATION
OF
FUNDS.—The Secretary
shall reserve funds appropriated for the renewable fuel
blends infrastructure development grant program for
technical and marketing assistance described in sub-
section (c).