culated under section 32904 as in effect on June 24, 
2007. 
‘‘(B) The alternative minimum standard referred to 
in subparagraph (A) shall be the greater of— 
‘‘(i) 27.5 miles per gallon; or 
‘‘(ii) 92 percent of the average fuel economy 
projected by the Secretary for the combined domes-
tic and foreign fleets manufactured for sale in the 
United States by all manufacturers in that model 
year, which projection shall be published in the Fed-
eral Register when the standard for that model year 
is promulgated in accordance with this section. 
‘‘(C) The alternative minimum standard under this 
paragraph shall apply to a manufacturer’s domestically 
manufactured passenger automobiles only if the passenger 
automobile standard established on the basis of vehicle at-
tributes pursuant to this subsection, excluding any credits 
transferred by the manufacturer pursuant to section 
32903(g) from other categories of automobiles described 
in such section, would allow that manufacturer to comply 
with a less stringent passenger automobile standard than 
the alternative minimum standard.’’; and 
(3) by amending subsection (c) to read as fol-
lows: 
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‘‘(c) AVERAGE FUEL ECONOMY FOR AUTOMOBILES 
AFTER
2021.—In prescribing standards under sub-
sections (a) and (b), the Secretary shall prescribe separate 
average fuel economy standards for passenger automobiles 
and non-passenger automobiles such that— 
‘‘(1) the projected combined fuel economy aver-
age for model year 2022 shall not be greater than 
35 miles per gallon; and 
‘‘(2) the projected combined fuel economy aver-
age for model year 2022 and subsequent model 
years shall be not less than 32 miles per gallon, 
for the total fleet of automobiles manufactured for sale 
in the United States.’’. 
(b) AUTHORITY OF THE SECRETARY TO PRESCRIBE 
STANDARDS BASED ON VEHICLE ATTRIBUTES.—Section 
32902 of title 49, United States Code, is further amended 
by adding at the end the following: 
‘‘(k) AUTHORITY OF THE SECRETARY TO PRESCRIBE 
STANDARDS BASED ON VEHICLE ATTRIBUTES.—(1) In 
prescribing average fuel economy standards under this 
section, the Secretary may by regulation prescribe sepa-
rate average fuel economy standards for passenger auto-
mobiles and non-passenger automobiles based on vehicle 
attributes related to fuel economy, which includes carbon 
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efficiency for purposes of this chapter, and express the 
standards in the form of a mathematical function. 
‘‘(2) If the Secretary prescribes standards for pas-
senger automobiles on the basis of vehicle attributes, the 
Secretary shall provide a transition period during the first 
3 model years in which an attribute-based standard would 
apply during which each manufacturer may elect whether 
to comply with the attribute-based standard or with the 
single corporate average fuel economy level prescribed 
under subsection (b). 
‘‘(l) The Secretary may prescribe regulations under 
this section establishing average fuel economy standards 
for automobiles for 1 or more consecutive model years, up 
to a maximum of 5 consecutive model years at one time.’’. 
(c) CREDIT TRANSFERRING WITHIN A MANUFAC-
TURER’S FLEET.—Section 32903 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(g) CREDIT TRANSFERRING WITHIN A MANUFAC-
TURER’S FLEET.—(1) The Secretary of Transportation 
shall establish by regulation a corporate average fuel econ-
omy 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 
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such credits within that manufacturer’s fleet to a compli-
ance category of automobiles that fails to achieve the pre-
scribed standards. 
‘‘(2) Credits transferred under this subsection are 
available to be used in the same model years that the man-
ufacturer could have applied such credits under sub-
sections (a), (b), (d), and (e), as well as for the model 
year in which the manufacturer earned such credits. The 
maximum increase in any compliance category attributable 
to transferred credits is 1.0 mile per gallon in any single 
model year. 
‘‘(3) In the case of transfers of credits to the category 
of automobiles described in paragraph (5)(B)(i), the 
transfer is limited to the extent that the fuel economy level 
of the manufacturer’s fleet of passenger automobiles man-
ufactured domestically shall comply with the provisions es-
tablished under section 32902(b)(4), excluding any trans-
fers from other categories of automobiles described in 
paragraph (5)(B). 
‘‘(4) A credit transferred in conformance with this 
subsection may only be so transferred if such credit is 
earned in model year 2010 or any subsequent model year. 
‘‘(5) As used in this subsection— 
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‘‘(A) the term ‘fleet’ means all automobiles 
manufactured by a manufacturer in a particular 
model year; and 
‘‘(B) the term ‘compliance category of auto-
mobiles’ means any of the 3 categories of auto-
mobiles for which compliance is separately calculated 
under this chapter, namely— 
‘‘(i) passenger automobiles manufactured 
domestically; 
‘‘(ii) passenger automobiles not manufac-
tured domestically; and 
‘‘(iii) non-passenger automobiles.’’. 
(d) TECHNICAL AND CONFORMING AMENDMENTS.— 
Chapter 329 of title 49, United States Code, is amended— 
(1) in section 32901(a)— 
(A) by redesignating paragraph (16) as 
paragraph (17); and 
(B) by inserting after paragraph (15) the 
following: 
‘‘(16) ‘non-passenger automobile’ means an 
automobile that is not a passenger automobile; and’’; 
(2) in section 32902— 
(A) in subsection (d)(1), by striking ‘‘or 
(c)’’; 
(B) in subsection (g)— 
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