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DIVISION C—DIVERSIFYING EN-
ERGY DEMAND AND IMPROV-
ING EFFICIENCY
TITLE VIII—FUELS AND
VEHICLES
Subtitle A—CAFE Standards, Alter-
native 
Fuels, 
and 
Advanced
Technology
SEC. 801. INCREASED FUEL ECONOMY STANDARDS.
(a) REQUIREMENT FOR NEW REGULATIONS.—
(1) IN GENERAL.—The Secretary of Transpor-
tation shall issue, under section 32902 of title 49,
United States Code, new regulations setting forth in-
creased average fuel economy standards for auto-
mobiles that are determined on the basis of the max-
imum feasible average fuel economy levels for the
automobiles, taking into consideration the matters set
forth in subsection (f) of such section.
(2) TIME FOR ISSUING REGULATIONS.—
(A) NON-PASSENGER
AUTOMOBILES.—For
non-passenger automobiles, the Secretary of
Transportation shall issue the final regulations
not later than 15 months after the date of the en-
actment of this Act.
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(B) PASSENGER AUTOMOBILES.—For pas-
senger automobiles, the Secretary of Transpor-
tation shall issue—
(i) the proposed regulations not later
than 180 days after the date of the enact-
ment of this Act; and
(ii) the final regulations not later than
2 years after that date.
(b) PHASED INCREASES.—The regulations issued pur-
suant to subsection (a) shall specify standards that take ef-
fect successively over several vehicle model years not exceed-
ing 15 vehicle model years.
(c) CLARIFICATION OF AUTHORITY TO AMEND PAS-
SENGER AUTOMOBILE STANDARD.—Section 32902(b) of
title 49, United States Code, is amended by inserting before
the period at the end the following: ‘‘or such other number
as the Secretary prescribes under subsection (c)’’.
(d) ENVIRONMENTAL
ASSESSMENT.—When issuing
final regulations setting forth increased average fuel econ-
omy standards under this section, the Secretary of Trans-
portation shall also issue an environmental assessment of
the effects of the implementation of the increased standards
on the environment under the National Environmental Pol-
icy Act of 1969 (42 U.S.C. 4321 et seq.).
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(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Department of Trans-
portation for fiscal year 2003, to remain available until
expended, $2,000,000 to carry out this section.
SEC. 802. EXPEDITED PROCEDURES FOR CONGRESSIONAL
INCREASE IN FUEL ECONOMY STANDARDS.
(a) CONDITION FOR APPLICABILITY.—If the Secretary
of Transportation fails to issue final regulations with re-
spect to non-passenger automobiles under section 801, or
fails to issue final regulations with respect to passenger
automobiles under such section, on or before the date by
which such final regulations are required by such section
to be issued, respectively, then this section shall apply with
respect to a bill described in subsection (b).
(b) BILL.—A bill referred to in this subsection is a
bill that satisfies the following requirements:
(1) INTRODUCTION.—The bill is introduced by
one or more Members of Congress not later than 60
days after the date referred to in subsection (a).
(2) TITLE.—The title of the bill is as follows: ‘‘A
bill to establish new average fuel economy standards
for certain motor vehicles.’’.
(3) TEXT.—The bill provides after the enacting
clause only the text specified in subparagraph (A) or
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(B) or any provision described in subparagraph (C),
as follows:
(A) NON-PASSENGER AUTOMOBILES.—In the
case of a bill relating to a failure timely to issue
final regulations relating to non-passenger auto-
mobiles, the following text:
‘‘That, section 32902 of title 49, United States Code, is
amended by adding at the end the following new subsection:
‘‘ ‘(l) NON-PASSENGER AUTOMOBILES.—The average
fuel economy standard for non-passenger automobiles man-
ufactured by a manufacturer in a model year after model
year ll shall be ll miles per gallon.’ ’’, the first blank
space being filled in with a subsection designation, the sec-
ond blank space being filled in with the number of a year,
and the third blank space being filled in with a number.
(B) PASSENGER
AUTOMOBILES.—In the
case of a bill relating to a failure timely to issue
final regulations relating to passenger auto-
mobiles, the following text:
‘‘That, section 32902(b) of title 49, United States Code, is
amended to read as follows:
‘‘ ‘(b) PASSENGER AUTOMOBILES.—Except as provided
in this section, the average fuel economy standard for pas-
senger automobiles manufactured by a manufacturer in a
model year after model year ll shall be ll miles per
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gallon.’ ’’, the first blank space being filled in with the num-
ber of a year and the second blank space being filled in
with a number.
(C) SUBSTITUTE
TEXT.—Any text sub-
stituted by an amendment that is in order under
subsection (c)(3).
(c) EXPEDITED PROCEDURES.—A bill described in
subsection (b) shall be considered in a House of Congress
in accordance with the procedures provided for the consider-
ation of joint resolutions in paragraphs (3) through (8) of
section 8066(c) of the Department of Defense Appropria-
tions Act, 1985 (as contained in section 101(h) of Public
Law 98–473; 98 Stat. 1936), with the following exceptions:
(1) REFERENCES
TO
RESOLUTION.—The ref-
erences in such paragraphs to a resolution shall be
deemed to refer to the bill described in subsection (b).
(2) COMMITTEES OF JURISDICTION.—The com-
mittees to which the bill is referred under this sub-
section shall—
(A) in the Senate, be the Committee on
Commerce, Science, and Transportation; and
(B) in the House of Representatives, be the
Committee on Energy and Commerce.
(3) AMENDMENTS.—
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(A) AMENDMENTS
IN
ORDER.—Only four
amendments to the bill are in order in each
House, as follows:
(i) Two amendments proposed by the
majority leader of that House.
(ii) Two amendments proposed by the
minority leader of that House.
(B) FORM AND CONTENT.—To be in order
under subparagraph (A), an amendment shall
propose to strike all after the enacting clause and
substitute text that only includes the same text as
is proposed to be stricken except for one or more
different numbers in the text.
(C) DEBATE, ET
CETERA.—Subparagraph
(B) of section 8066(c)(5) of the Department of
Defense Appropriations Act, 1985 (98 Stat.
1936) shall apply to the consideration of each
amendment proposed pursuant to subparagraph
(A) of this paragraph in the same manner as
such subparagraph (B) applies to debatable mo-
tions.
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SEC. 803. 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:
‘‘(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.
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‘‘(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.
‘‘(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. 804. EXTENSION OF MAXIMUM FUEL ECONOMY IN-
CREASE FOR ALTERNATIVE FUELED VEHI-
CLES.
Section 32906(a)(1) of title 49, United States Code,
is amended—
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(1) in subparagraph (A), by striking ‘‘1993–
2004’’ and inserting ‘‘1993 through 2008’’; and
(2) in subparagraph (B), by striking ‘‘2005–
2008’’ and inserting ‘‘2009 through 2012’’.
SEC. 805. PROCUREMENT OF ALTERNATIVE FUELED AND
HYBRID LIGHT DUTY TRUCKS.
(a) VEHICLE FLEETS NOT COVERED BY REQUIRE-
MENT IN ENERGY POLICY ACT OF 1992.—
(1) HYBRID VEHICLES.—The head of each agen-
cy of the executive branch shall coordinate with the
Administrator of General Services to ensure that only
hybrid vehicles are procured by or for each agency
fleet of light duty trucks that is not in a fleet of vehi-
cles to which section 303 of the Energy Policy Act of
1992 (42 U.S.C. 13212) applies.
(2) WAIVER AUTHORITY.—The head of an agen-
cy, in consultation with the Administrator, may
waive the applicability of the policy regarding the
procurement of hybrid vehicles in paragraph (1) to
that agency to the extent that the head of that agency
determines necessary—
(A) to meet specific requirements of the
agency for capabilities of light duty trucks;
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(B) to procure vehicles consistent with the
standards applicable to the procurement of fleet
vehicles for the Federal Government;
(C) to adjust to limitations on the commer-
cial availability of light duty trucks that are hy-
brid vehicles; or
(D) to avoid the necessity of procuring a
hybrid vehicle for the agency when each of the
hybrid vehicles available for meeting the require-
ments of the agency has a cost to the United
States that exceeds the costs of comparable non-
hybrid vehicles by a factor that is significantly
higher than the difference between—
(i) the real cost of the hybrid vehicle to
retail purchasers, taking into account the
benefit of any tax incentives available to re-
tail purchasers for the purchase of the hy-
brid vehicle; and
(ii) the costs of the comparable non-
hybrid vehicles to retail purchasers.
(3) APPLICABILITY
TO
PROCUREMENTS
AFTER
FISCAL YEAR 2004.—This subsection applies with re-
spect to procurements of light duty trucks in fiscal
year 2005 and subsequent fiscal years.
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(b) REQUIREMENT TO EXCEED REQUIREMENT IN EN-
ERGY POLICY ACT OF 1992.—
(1) LIGHT
DUTY
TRUCKS.—The head of each
agency of the executive branch shall coordinate with
the Administrator of General Services to ensure that,
of the light duty trucks procured in fiscal years after
fiscal year 2004 for the fleets of light duty vehicles of
the agency to which section 303 of the Energy Policy
Act of 1992 (42 U.S.C. 13212) applies—
(A) 5 percent of the total number of such
trucks that are procured in each of fiscal years
2005 and 2006 are alternative fueled vehicles or
hybrid vehicles; and
(B) 10 percent of the total number of such
trucks that are procured in each fiscal year after
fiscal year 2006 are alternative fueled vehicles or
hybrid vehicles.
(2) COUNTING OF TRUCKS.—Light duty trucks
acquired for an agency of the executive branch that
are counted to comply with section 303 of the Energy
Policy Act of 1992 (42 U.S.C. 13212) for a fiscal year
shall be counted to determine the total number of light
duty trucks procured for that agency for that fiscal
year for the purposes of paragraph (1), but shall not
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be counted to satisfy the requirement in that para-
graph.
(c) DEFINITIONS.—In this section:
(1) HYBRID VEHICLE.—The term ‘‘hybrid vehi-
cle’’ means—
(A) a motor vehicle that draws propulsion
energy from onboard sources of stored energy
that are both—
(i) an internal combustion or heat en-
gine using combustible fuel; and
(ii) a rechargeable energy storage sys-
tem; and
(B) any other vehicle that is defined as a
hybrid vehicle in regulations prescribed by the
Secretary of Energy for the administration of
title III of the Energy Policy Act of 1992.
(2) ALTERNATIVE FUELED VEHICLE.—The term
‘‘alternative fueled vehicle’’ has the meaning given
that term in section 301 of the Energy Policy Act of
1992 (42 U.S.C. 13211).
(d) INAPPLICABILITY
TO
DEPARTMENT
OF
DE-
FENSE.—This section does not apply to the Department of
Defense, which is subject to comparable requirements under
section 318 of the National Defense Authorization Act for
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Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1055;
10 U.S.C. 2302 note).
SEC. 806. USE OF ALTERNATIVE FUELS.
(a) EXCLUSIVE USE OF ALTERNATIVE FUELS IN DUAL
FUELED VEHICLES.—The head of each agency of the execu-
tive branch shall coordinate with the Administrator of Gen-
eral Services to ensure that, not later than January 1, 2009,
the fuel actually used in the fleet of dual fueled vehicles used
by the agency is an alternative fuel.
(b) WAIVER AUTHORITY.—
(1) CAPABILITY WAIVER.—
(A) AUTHORITY.—If the Secretary of Trans-
portation determines that not all of the dual
fueled vehicles can operate on alternative fuels at
all times, the Secretary may waive the require-
ment of subsection (a) in part, but only to the
extent that—
(i) not later than January 1, 2009, not
less than 50 percent of the total annual vol-
ume of fuel used in the dual fueled vehicles
shall be alternative fuels; and
(ii) not later than January 1, 2011,
not less than 75 percent of the total annual
volume of fuel used in the dual fueled vehi-
cles shall be alternative fuels.
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(B) EXPIRATION.—In no case may a waiver
under subparagraph (A) remain in effect after
December 31, 2012.
(2) REGIONAL FUEL AVAILABILITY WAIVER.—The
Secretary may waive the applicability of the require-
ment of subsection (a) to vehicles used by an agency
in a particular geographic area where the alternative
fuel otherwise required to be used in the vehicles is
not reasonably available to retail purchasers of the
fuel, as certified to the Secretary by the head of the
agency.
(c) DEFINITIONS.—In this section:
(1) ALTERNATIVE FUEL.—The term ‘‘alternative
fuel’’ has the meaning given that term in section
32901(a)(1) of title 49, United States Code.
(2) DUAL FUELED VEHICLE.—The term ‘‘dual
fueled vehicle’’ has the meaning given the term ‘‘dual
fueled automobile’’ in section 32901(a)(8) of title 49,
United States Code.
(3) FLEET.—The term ‘‘fleet’’, with respect to
dual fueled vehicles, has the meaning that is given
that term with respect to light duty motor vehicles in
section 301(9) of the Energy Policy Act of 1992 (42
U.S.C. 13211(9)).
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SEC. 807. HYBRID ELECTRIC AND FUEL CELL VEHICLES.
(a) EXPANSION OF SCOPE.—The Secretary of Energy
shall expand the research and development program of the
Department of Energy on advanced technologies for improv-
ing the environmental cleanliness of vehicles to emphasize
research and development on the following:
(1) Fuel cells, including—
(A) high temperature membranes for fuel
cells; and
(B) fuel cell auxiliary power systems.
(2) Hydrogen storage.
(3) Advanced vehicle engine and emission control
systems.
(4) Advanced batteries and power electronics for
hybrid vehicles.
(5) Advanced fuels.
(6) Advanced materials.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Department of Energy
for fiscal year 2003, the amount of $225,000,000 for car-
rying out the expanded research and development program
provided for under this section.
SEC. 808. DIESEL FUELED VEHICLES.
(a) DIESEL COMBUSTION
AND AFTER TREATMENT
TECHNOLOGIES.—The Secretary of Energy shall accelerate
research and development directed toward the improvement
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of diesel combustion and after treatment technologies for use
in diesel fueled motor vehicles.
(b) GOAL.—
(1) COMPLIANCE WITH TIER 2 EMISSION STAND-
ARDS BY 2010.—The Secretary shall carry out sub-
section (a) with a view to developing and dem-
onstrating diesel technology meeting tier 2 emission
standards not later than 2010.
(2) TIER 2 EMISSION STANDARDS DEFINED.—In
this subsection, the term ‘‘tier 2 emission standards’’
means the motor vehicle emission standards promul-
gated by the Administrator of the Environmental
Protection Agency on February 10, 2000, under sec-
tions 202 and 211 of the Clean Air Act to apply to
passenger cars, light trucks, and larger passenger ve-
hicles of model years after the 2003 vehicle model
year.
SEC. 809. FUEL CELL DEMONSTRATION.
(a) PROGRAM REQUIRED.—The Secretary of Energy
and the Secretary of Defense shall jointly carry out a pro-
gram to demonstrate—
(1) fuel cell technologies developed in the PNGV
and Freedom Car programs;
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(2) fuel cell technologies developed in research
and development programs of the Department of De-
fense; and
(3) follow-on fuel cell technologies.
(b) PURPOSES OF PROGRAM.—The purposes of the pro-
gram are to identify and support technological advances
that are necessary to achieve accelerated availability of fuel
cell technology for use both for nonmilitary and military
purposes.
(c) COOPERATION WITH INDUSTRY.—
(1) IN GENERAL.—The demonstration program
shall be carried out in cooperation with industry, in-
cluding the automobile manufacturing industry and
the automotive systems and component suppliers in-
dustry.
(2) COST SHARING.—The Secretary of Energy
and the Secretary of Defense shall provide for indus-
try to bear, in cash or in kind, at least one-half of
the total cost of carrying out the demonstration pro-
gram.
(d) DEFINITIONS.—In this section:
(1) PNGV PROGRAM.—The term ‘‘PNGV pro-
gram’’ means the Partnership for a New Generation
of Vehicles, a cooperative program engaged in by the
Departments of Commerce, Energy, Transportation,