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‘‘(ii) technological advancement; and
‘‘(iii) environmental safety.’’.
(c) TABLE OF CONTENTS AMENDMENT.—The table of
contents of the Energy Policy Act of 1992 (42 U.S.C. prec.
13201) is amended by striking the item relating to section
514 and inserting the following:
‘‘Sec. 514. Alternative compliance.
‘‘Sec. 515. Authorization of appropriations.
‘‘Sec. 516. Termination of authority.’’.
SEC. 705. REPORT CONCERNING COMPLIANCE WITH ALTER-
NATIVE FUELED VEHICLE PURCHASING RE-
QUIREMENTS.
Section 310(b)(1) of the Energy Policy Act of 1992 (42
U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year after
the date of enactment of this subsection’’ and inserting
‘‘February 15, 2006’’.
SEC. 706. JOINT FLEXIBLE FUEL/HYBRID VEHICLE COMMER-
CIALIZATION INITIATIVE.
(a) DEFINITIONS.—In this section:
(1) ELIGIBLE ENTITY.—The term eligible entity
means—
(A) a for-profit corporation;
(B) a nonprofit corporation; or
(C) an institution of higher education.
(2) PROGRAM.—The term ‘‘program’’ means the
applied research program established under subsection
(b).
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(b) ESTABLISHMENT.—The Secretary shall establish
an applied research program to improve technologies for the
commercialization of—
(1) a combination hybrid/flexible fuel vehicle; or
(2) a plug-in hybrid/flexible fuel vehicle.
(c) GRANTS.—In carrying out the program, the Sec-
retary shall provide grants that give preference to proposals
that—
(1) achieve the greatest reduction in miles per
gallon of petroleum fuel consumption;
(2) achieve not less than 250 miles per gallon of
petroleum fuel consumption; and
(3) have the greatest potential of commercializa-
tion to the general public within 5 years.
(d) VERIFICATION.—Not later than 90 days after the
date of enactment of this Act, the Secretary shall publish
in the Federal Register procedures to verify—
(1) the hybrid/flexible fuel vehicle technologies to
be demonstrated; and
(2) that grants are administered in accordance
with this section.
(e) REPORT.—Not later than 260 days after the date
of enactment of this Act, and annually thereafter, the Sec-
retary shall submit to Congress a report that—
(1) identifies the grant recipients;
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(2) describes the technologies to be funded under
the program;
(3) assesses the feasibility of the technologies de-
scribed in paragraph (2) in meeting the goals de-
scribed in subsection (c);
(4) identifies applications submitted for the pro-
gram that were not funded; and
(5) makes recommendations for Federal legisla-
tion to achieve commercialization of the technology
demonstrated.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section, to
remain available until expended—
(1) $3,000,000 for fiscal year 2005;
(2) $7,000,000 for fiscal year 2006;
(3) $10,000,000 for fiscal year 2007; and
(4) $20,000,000 for fiscal year 2008.
Subtitle B—Automobile Efficiency
CHAPTER 1—MAXIMUM AVERAGE FUEL
ECONOMY
SEC. 711. REVISED CONSIDERATIONS FOR DECISIONS ON
MAXIMUM FEASIBLE AVERAGE FUEL ECON-
OMY.
Section 32902(f) of title 49, United States Code, is
amended to read as follows:
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‘‘(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM
FEASIBLE
AVERAGE
FUEL
ECONOMY.—When deciding
maximum feasible average fuel economy under this section,
the Secretary of Transportation shall consider the following
matters:
‘‘(1) Technological feasibility.
‘‘(2) Economic practicability.
‘‘(3) The effect of other motor vehicle standards
of the Government on fuel economy.
‘‘(4) The need of the United States to conserve
energy.
‘‘(5) The desirability of reducing United States
dependence on imported oil.
‘‘(6) The effects of the average fuel economy
standards on motor vehicle and passenger safety.
‘‘(7) The effects of increased fuel economy on air
quality.
‘‘(8) The adverse effects of average fuel economy
standards on the relative competitiveness of manufac-
turers.
‘‘(9) The effects of compliance with average fuel
economy standards on levels of employment in the
United States.
‘‘(10) The cost and lead time necessary for the
introduction of the necessary new technologies.
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‘‘(11) The potential for advanced technology ve-
hicles, such as hybrid and fuel cell vehicles, to con-
tribute to the achievement of significant reductions in
fuel consumption.
‘‘(12) The extent to which the necessity for vehi-
cle manufacturers to incur near-term costs to comply
with the average fuel economy standards adversely af-
fects the availability of resources for the development
of advanced technology for the propulsion of motor ve-
hicles.
‘‘(13) The report of the National Research Coun-
cil that is entitled ‘Effectiveness and Impact of Cor-
porate Average Fuel Economy Standards’, issued in
January 2002.’’.
SEC. 712. INCREASED FUEL ECONOMY STANDARDS.
(a) NEW REGULATIONS REQUIRED.—
(1) NON-PASSENGER AUTOMOBILES.—
(A) REQUIREMENT
FOR
NEW
REGULA-
TIONS.—The Secretary of Transportation shall
issue, under section 32902 of title 49, United
States Code, new regulations setting forth in-
creased average fuel economy standards for non-
passenger automobiles. The regulations shall be
determined on the basis of the maximum feasible
average fuel economy levels for the non-passenger