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hydrogen fuel cells and traditional internal com-
bustion engines; and 
(18) cooperation between the United States and 
Israel in the field of research and development of al-
ternative renewable energy sources would be in the 
interests of both countries, and both countries stand 
to gain much from such cooperation. 
SEC. 9323. GRANT PROGRAM. 
(a) AUTHORITY.—Pursuant to the responsibilities de-
scribed in section 102(10), (14), and (17) of the Depart-
ment of Energy Organization Act (42 U.S.C. 7112(10), 
(14), and (17)) and section 103(9) of the Energy Reorga-
nization Act of 1974 (42 U.S.C. 5813(9)), the Secretary, 
in consultation with the BIRD or BSF, shall award grants 
to eligible entities. 
(b) APPLICATION.— 
(1) SUBMISSION OF APPLICATIONS.—To receive 
a grant under this section, an eligible entity shall 
submit an application to the Secretary containing 
such information and assurances as the Secretary, in 
consultation with the BIRD or BSF, may require. 
(2) SELECTION OF ELIGIBLE ENTITIES.—The 
Secretary, in consultation with the Directors of the 
BIRD and BSF, may review any application sub-
mitted by any eligible entity and select any eligible 
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entity meeting criteria established by the Secretary, 
in consultation with the Advisory Board, for a grant 
under this section. 
(c) AMOUNT OF GRANT.—The amount of each grant 
awarded for a fiscal year under this section shall be deter-
mined by the Secretary, in consultation with the BIRD 
or BSF. 
(d) RECOUPMENT.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall establish procedures and criteria for 
recoupment in connection with any eligible project 
carried out by an eligible entity that receives a grant 
under this section, which has led to the development 
of a product or process which is marketed or used. 
(2) AMOUNT REQUIRED.— 
(A) Except as provided in subparagraph 
(B), such recoupment shall be required as a 
condition for award and be proportional to the 
Federal share of the costs of such project, and 
shall be derived from the proceeds of royalties 
or licensing fees received in connection with 
such product or process. 
(B) In the case where a product or process 
is used by the recipient of a grant under this 
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section for the production and sale of its own 
products or processes, the recoupment shall 
consist of a payment equivalent to the payment 
which would be made under subparagraph (A). 
(3) WAIVER.—The Secretary may at any time 
waive or defer all or some of the recoupment re-
quirements of this subsection as necessary, depend-
ing on— 
(A) the commercial competitiveness of the 
entity or entities developing or using the prod-
uct or process; 
(B) the profitability of the project; and 
(C) the commercial viability of the product 
or process utilized. 
(e) PRIVATE FUNDS.—The Secretary may accept 
contributions of funds from private sources to carry out 
this part. 
(f) OFFICE OF ENERGY EFFICIENCY AND RENEW-
ABLE ENERGY.—The Secretary shall carry out this sec-
tion through the existing programs at the Office of Energy 
Efficiency and Renewable Energy. 
(g) REPORT.—Not later than 180 days after receiv-
ing a grant under this section, each recipient shall submit 
a report to the Secretary— 
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(1) documenting how the recipient used the 
grant funds; and 
(2) evaluating the level of success of each 
project funded by the grant. 
SEC. 9324. INTERNATIONAL ENERGY ADVISORY BOARD. 
(a) ESTABLISHMENT.—There is established in the 
Department of Energy an International Energy Advisory 
Board. 
(b) DUTIES.—The Advisory Board shall advise the 
Secretary on— 
(1) criteria for the recipients of grants awarded 
under section 9323(a); 
(2) the total amount of grant money to be 
awarded to all grantees selected by the Secretary, in 
consultation with the BIRD; and 
(3) the total amount of grant money to be 
awarded to all grantees selected by the Secretary, in 
consultation with the BSF, for each fiscal year. 
(c) MEMBERSHIP.— 
(1) COMPOSITION.—The Advisory Board shall 
be composed of— 
(A) 1 member appointed by the Secretary 
of Commerce; 
(B) 1 member appointed by the Secretary 
of Energy; and 
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(C) 2 members who shall be Israeli citi-
zens, appointed by the Secretary of Energy 
after consultation with appropriate officials in 
the Israeli Government. 
(2) DEADLINE FOR APPOINTMENTS.—The ini-
tial appointments under paragraph (1) shall be 
made not later than 60 days after the date of enact-
ment of this Act. 
(3) TERM.—Each member of the Advisory 
Board shall be appointed for a term of 4 years. 
(4) VACANCIES.—A vacancy on the Advisory 
Board shall be filled in the manner in which the 
original appointment was made. 
(5) BASIC PAY.— 
(A) COMPENSATION.—A member of the 
Advisory Board shall serve without pay. 
(B) TRAVEL EXPENSES.—Each member of 
the Advisory Board shall receive travel ex-
penses, including per diem in lieu of subsist-
ence, in accordance with applicable provisions of 
subchapter I of chapter 57 of title 5, United 
States Code. 
(6) QUORUM.—Three members of the Advisory 
Board shall constitute a quorum. 
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(7) CHAIRPERSON.—The Chairperson of the 
Advisory Board shall be designated by the Secretary 
of Energy at the time of the appointment. 
(8) MEETINGS.—The Advisory Board shall 
meet at least once annually at the call of the Chair-
person. 
(d) TERMINATION.—Section 14(a)(2)(B) of the Fed-
eral Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the Advisory Board. 
SEC. 9325. DEFINITIONS. 
In this part: 
(1) ADVISORY
BOARD.—The term ‘‘Advisory 
Board’’ means the International Energy Advisory 
Board established by section 9324(a). 
(2) BIRD.—The term ‘‘BIRD’’ means the 
Israel-United States Binational Industrial Research 
and Development Foundation. 
(3) BSF.—The term ‘‘BSF’’ means the United 
States-Israel Binational Science Foundation. 
(4) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a joint venture comprised of both Israeli 
and United States private business entities or a joint 
venture comprised of both Israeli academic persons 
(who reside and work in Israel) and United States 
academic persons, that— 
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(A) carries out an eligible project; and 
(B) is selected by the Secretary, in con-
sultation with the BIRD or BSF, using the cri-
teria established by the Secretary, in consulta-
tion with the Advisory Board. 
(5) ELIGIBLE
PROJECT.—The term ‘‘eligible 
project’’ means a project to encourage cooperation 
between the United States and Israel on research, 
development, or commercialization of alternative en-
ergy, improved energy efficiency, or renewable en-
ergy sources. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy, acting through the Assist-
ant Secretary of Energy for Energy Efficiency and 
Renewable Energy. 
SEC. 9326. TERMINATION. 
The grant program authorized under section 9323 
and the Advisory Board shall terminate upon the expira-
tion of the 7-year period which begins on the date of the 
enactment of this Act. 
SEC. 9327. AUTHORIZATION OF APPROPRIATIONS. 
The Secretary is authorized to expend not more than 
$20,000,000 to carry out this part for each of fiscal years 
2008 through 2014 from funds previously authorized to 
the Office of Energy Efficiency and Renewable Energy. 
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SEC. 9328. CONSTITUTIONAL AUTHORITY. 
The Constitutional authority on which this part rests 
is the power of Congress to regulate commerce with for-
eign nations as enumerated in Article I, Section 8 of the 
United States Constitution. 
Subtitle E—Advanced Plug-In 
Hybrid Vehicles and Components 
SEC. 9401. ADVANCED BATTERY LOAN GUARANTEE PRO-
GRAM. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary 
of Energy shall establish a program to provide guarantees 
of loans by private institutions for the construction of fa-
cilities for the manufacture of advanced vehicle batteries 
and battery systems that are developed and produced in 
the United States, including advanced lithium ion bat-
teries and hybrid electrical system and component manu-
facturers and software designers. 
(b) REQUIREMENTS.—The Secretary may provide a 
loan guarantee under subsection (a) to an applicant if— 
(1) without a loan guarantee, credit is not 
available to the applicant under reasonable terms or 
conditions sufficient to finance the construction of a 
facility described in subsection (a); 
(2) the prospective earning power of the appli-
cant and the character and value of the security 
pledged provide a reasonable assurance of repayment 
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of the loan to be guaranteed in accordance with the 
terms of the loan; and 
(3) the loan bears interest at a rate determined 
by the Secretary to be reasonable, taking into ac-
count the current average yield on outstanding obli-
gations of the United States with remaining periods 
of maturity comparable to the maturity of the loan. 
(c) CRITERIA.—In selecting recipients of loan guar-
antees from among applicants, the Secretary shall give 
preference to proposals that— 
(1) meet all applicable Federal and State per-
mitting requirements; 
(2) are most likely to be successful; and 
(3) are located in local markets that have the 
greatest need for the facility. 
(d) MATURITY.—A loan guaranteed under subsection 
(a) shall have a maturity of not more than 20 years. 
(e) TERMS AND CONDITIONS.—The loan agreement 
for a loan guaranteed under subsection (a) shall provide 
that no provision of the loan agreement may be amended 
or waived without the consent of the Secretary. 
(f) ASSURANCE
OF REPAYMENT.—The Secretary 
shall require that an applicant for a loan guarantee under 
subsection (a) provide an assurance of repayment in the 
form of a performance bond, insurance, collateral, or other 
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means acceptable to the Secretary in an amount equal to 
not less than 20 percent of the amount of the loan. 
(g) GUARANTEE FEE.—The recipient of a loan guar-
antee under subsection (a) shall pay the Secretary an 
amount determined by the Secretary to be sufficient to 
cover the administrative costs of the Secretary relating to 
the loan guarantee. 
(h) FULL FAITH AND CREDIT.—The full faith and 
credit of the United States is pledged to the payment of 
all guarantees made under this section. Any such guar-
antee made by the Secretary shall be conclusive evidence 
of the eligibility of the loan for the guarantee with respect 
to principal and interest. The validity of the guarantee 
shall be incontestable in the hands of a holder of the guar-
anteed loan. 
(i) REPORTS.—Until each guaranteed loan under this 
section has been repaid in full, the Secretary shall annu-
ally submit to Congress a report on the activities of the 
Secretary under this section. 
(j) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
(k) TERMINATION OF AUTHORITY.—The authority of 
the Secretary to issue a loan guarantee under subsection 
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(a) terminates on the date that is 10 years after the date 
of enactment of this Act. 
SEC. 
9402. 
DOMESTIC 
MANUFACTURING 
CONVERSION 
GRANT PROGRAM. 
Section 712 of the Energy Policy Act of 2005 (42 
U.S.C. 16062) is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘and components thereof’’ 
after ‘‘sales of efficient hybrid and advanced 
diesel vehicles’’; 
(B) by inserting ‘‘and hybrid component 
manufacturers’’ after ‘‘grants to automobile 
manufacturers’’; 
(C) by inserting ‘‘, plug-in electric hybrid,’’ 
after ‘‘production of efficient hybrid’’; 
(D) by inserting ‘‘and suppliers’’ after 
‘‘automobile manufacturers’’; and 
(E) by adding at the end the following: 
‘‘Priority shall be given to the refurbishment or 
retooling of manufacturing facilities that have 
recently ceased operation or will cease operation 
in the near future.’’; and 
(2) by striking subsection (b) and inserting the 
following: 
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‘‘(b) COORDINATION WITH STATE AND LOCAL PRO-
GRAMS.—The Secretary may coordinate implementation of 
this section with State and local programs designed to ac-
complish similar goals, including the retention and retrain-
ing of skilled workers from the such manufacturing facili-
ties, including by establishing matching grant arrange-
ments. 
‘‘(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. 9403. PLUG-IN HYBRID VEHICLE PROGRAM. 
(a) PLUG-IN
ELECTRIC
DRIVE
VEHICLE
PRO-
GRAM.— 
(1) ESTABLISHMENT.—The Secretary of En-
ergy (in this section referred to as the ‘‘Secretary’’) 
shall establish a competitive program to provide 
grants on a cost-shared basis to State governments, 
local governments, metropolitan transportation au-
thorities, air pollution control districts, private or 
nonprofit entities or combinations thereof, to carry 
out a project or projects to encourage the use of 
plug-in electric drive vehicles or other emerging elec-
tric vehicle technologies, as determined by the Sec-
retary. 
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(2) ADMINISTRATION.—The Secretary shall es-
tablish requirements for applications for grants 
under this section, including reporting of data to be 
summarized for dissemination to the Department, 
other grantees, and the public, including vehicle and 
component performance and vehicle and component 
life cycle costs. 
(3) SELECTION CRITERIA.— 
(A) PRIORITY.—When making awards 
under this subsection, the Secretary shall give 
priority consideration to applications that en-
courage early widespread utilization of such ve-
hicles and are likely to make a significant con-
tribution to the advancement of the production 
of such vehicles in the United States. 
(B) SCOPE OF PROGRAMS.—When making 
awards under this subsection, the Secretary 
shall ensure that the programs will maximize 
diversity in applications, manufacturers, end- 
uses and vehicle control systems. 
(4) AUTHORIZATIONS
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary to carry out the program under this sub-
section, such sums as may be necessary. 
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(5) CERTAIN APPLICANTS.—A battery manufac-
turer that proposes to supply to an applicant for a 
grant under this section a battery with a capacity of 
greater than 1 kilowatt-hour for use in a plug-in 
electric drive vehicle shall— 
(A) ensure that the applicant includes in 
the application a description of the price of the 
battery per kilowatt hour; 
(B) on approval by the Secretary of the 
application, publish, or permit the Secretary to 
publish, the price described in subparagraph 
(A); and 
(C) for any order received by the battery 
manufacturer for at least 1,000 batteries, offer 
batteries at that price. 
(b) ELECTRIC DRIVE EDUCATION PROGRAM.— 
(1) IN GENERAL.—The Secretary shall develop 
a nationwide electric drive transportation education 
program under which the Secretary shall provide— 
(A) teaching materials to secondary schools 
and high schools; and 
(B) assistance for programs relating to 
electric drive system and component engineer-
ing to institutions of higher education. 
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(2) ELECTRIC
VEHICLE
COMPETITION.—The 
program established under paragraph (1) shall in-
clude a plug-in hybrid electric vehicle competition for 
institutions of higher education, which shall be 
known as the ‘‘Dr. Andrew Frank Plug-In Hybrid 
Electric Vehicle Competition’’. 
(3) ENGINEERS.—In carrying out the program 
established under paragraph (1), the Secretary shall 
provide financial assistance to institutions of higher 
education to create new, or support existing, degree 
programs to ensure the availability of trained elec-
trical and mechanical engineers with the skills nec-
essary for the advancement of— 
(A) plug-in electric drive vehicles; and 
(B) other forms of electric drive vehicles. 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary to carry out this subsection such sums as may 
be necessary. 
SEC. 9404. PLUG-IN HYBRID DEMONSTRATION VEHICLES. 
(a) IN GENERAL.—The Secretary of Energy shall es-
tablish a program to make grants to owners of domestic 
motor vehicle manufacturing or production facilities for 
the production of plug-in hybrid electric motors or conver-
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sion modules to be used as electricity storage capacity for 
utilities. 
(b) PROGRAMS.—The Secretary of Energy shall es-
tablish programs to determine how to best integrate plug- 
in hybrid vehicles into the electric power grid and into the 
overall electricity infrastructure. These programs shall be 
conducted in 5 separate regions across the United States 
at the discretion of the Secretary. 
(c) PILOT PROGRAMS.—The Secretary shall establish 
during the first 6 months of 2008, with other govern-
mental entities, no less than 5 separate pilot programs to 
convert at least 1000 vehicles in each program to plug- 
hybrid electric vehicles. 
(d) FEDERAL CONTRIBUTION.—The Department of 
Energy shall contribute up to 50 percent of the cost of 
conversion modules. 
(e) INSTALLATION.—Installations of electricity stor-
age devices shall be undertaken by trained and certified 
mechanics. 
(f) MONITORING.—The Secretary of Energy shall re-
quire the monitoring of reliability, efficiency, breakeven 
costs, and customer satisfaction for a period of 3 years. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as may be necessary to carry out this section. 
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SEC. 9405. INCENTIVE FOR FEDERAL AND STATE FLEETS 
FOR MEDIUM AND HEAVY DUTY HYBRIDS. 
Section 301 of the Energy Policy Act of 1992 (42 
U.S.C. 13211) is amended— 
(1) in paragraph (3), by striking ‘‘or a dual 
fueled vehicle’’ and inserting ‘‘, a dual fueled vehicle, 
or a medium or heavy duty vehicle that is a hybrid 
vehicle’’; 
(2) by redesignating paragraphs (11), (12), 
(13), and (14) as paragraphs (12), (14), (15), and 
(16), respectively; 
(3) by inserting after paragraph (10) the fol-
lowing new paragraph: 
‘‘(11) the term ‘hybrid vehicle’ means a vehicle 
powered both by a diesel or gasoline engine and an 
electric motor or hydraulic energy storage device 
that is recharged as the vehicle operates;’’; and 
(4) by inserting after paragraph (12) (as so re-
designated by paragraph (2) of this section) the fol-
lowing new paragraph: 
‘‘(13) the term ‘medium or heavy duty vehicle’ 
means a vehicle that— 
‘‘(A) in the case of a medium duty vehicle, 
has a gross vehicle weight rating of more than 
8,500 pounds but not more than 14,000 
pounds; and 
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‘‘(B) in the case of a heavy duty vehicle, 
has a gross vehicle weight rating of more than 
14,000 pounds;’’. 
SEC. 9406. INCLUSION OF ELECTRIC DRIVE IN ENERGY 
POLICY ACT OF 1992. 
Section 508 of the Energy Policy Act of 1992 (42 
U.S.C. 13258) is amended— 
(1) by striking ‘‘The Secretary’’ in subsection 
(a) and inserting ‘‘(1) The Secretary’’; and 
(2) by adding at the end of subsection (a) the 
following: 
‘‘(2) Not later than January 31, 2009, the Secretary 
shall allocate credit in an amount to be determined by the 
Secretary for acquisition of— 
‘‘(A) a hybrid electric vehicle; 
‘‘(B) a plug-in hybrid electric vehicle; 
‘‘(C) a fuel cell electric vehicle; 
‘‘(D) a neighborhood electric vehicle; or 
‘‘(E) a medium-duty or heavy-duty electric, hy-
brid electric, hybrid hydraulic, or plug-in hybrid elec-
tric vehicle.’’; and 
(3) by adding at the end the following: 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) FUEL
CELL
ELECTRIC
VEHICLE.—The 
term ‘fuel cell electric vehicle’ means an on-road or 
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nonroad vehicle that uses a fuel cell (as defined in 
section 803 of the Spark M. Matsunaga Hydrogen 
Research, Development, and Demonstration Act of 
2005 (42 U.S.C. 16152). 
‘‘(2) HYBRID ELECTRIC VEHICLE.—The term 
‘hybrid electric vehicle’ means a new qualified hybrid 
motor vehicle (as defined in section 30B(d)(3) of the 
Internal Revenue Code of 1986). 
‘‘(3) MEDIUM-DUTY OR HEAVY-DUTY ELECTRIC, 
HYBRID ELECTRIC, OR PLUG-IN HYBRID ELECTRIC 
VEHICLE.—The term ‘medium-duty or heavy-duty 
electric, hybrid electric, or plug-in hybrid electric ve-
hicle’ is an electric, hybrid electric, or plug-in hybrid 
electric motor vehicle greater than 8,501 pounds 
gross vehicle rating. 
‘‘(4) NEIGHBORHOOD
ELECTRIC
VEHICLE.— 
The term ‘neighborhood electric vehicle’ means a 4- 
wheeled on-road or nonroad vehicle, with a top at-
tainable speed in 1 mile of more than 20 mph and 
not more than 25 mph on a paved level surface, that 
is propelled by an electric motor and on board, re-
chargeable energy storage system that is recharge-
able using an off-board source of electricity. 
‘‘(5) PLUG-IN
HYBRID
ELECTRIC
VEHICLE.— 
The term ‘plug-in hybrid electric vehicle’ means a 
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