I 
109TH CONGRESS 
1ST SESSION H. R. 4384 
To improve the energy efficiency of the United States. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 17, 2005 
Mr. SHAYS (for himself and Mr. HINCHEY) introduced the following bill; which 
was referred to the Committee on Energy and Commerce, and in addition 
to the Committees on Ways and Means, Resources, and Transportation 
and Infrastructure, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To improve the energy efficiency of the United States. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Energy For Our Future Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—SAVE OIL 
Sec. 101. Help consumers buy more fuel efficient cars. 
Sec. 102. Energy efficient motor vehicles manufacturing credit.
Sec. 103. Transit-oriented development corridors. 
Sec. 104. Automobile Fuel Economy Standards. 
Sec. 105. Inclusion of sports utility vehicles in limitation on depreciation of cer-
tain luxury automobiles. 
Sec. 106. Fuel efficiency standards for replacement tires. 
TITLE II—REDUCE HEAT AND ELECTRIC BILLS 
Sec. 201. Weatherization assistance. 
Sec. 202. Energy Star programs. 
Sec. 203. Renewable electricity production credit. 
Sec. 204. Efficiency resource standard. 
Sec. 205. Federal renewable portfolio standard. 
Sec. 206. Net metering. 
TITLE III—SAVE TAX PAYERS MONEY 
Sec. 301. Repeal of certain provisions of the Energy Policy Act of 2005. 
Sec. 302. Repeal of certain tax provisions of the Energy Policy Act of 2005. 
TITLE IV—STATE AND LOCAL AUTHORITY 
Sec. 401. State consumer product energy efficiency standards. 
Sec. 402. Appeals from consistency determinations under Coastal Zone Man-
agement Act of 1972. 
Sec. 403. Siting of interstate electric transmission facilities. 
Sec. 404. New natural gas storage facilities. 
Sec. 405. Process coordination; hearings; rules of procedure. 
Sec. 406. Repeal of preemption of State law relating to automobile fuel econ-
omy standards. 
TITLE I—SAVE OIL 
SEC. 101. HELP CONSUMERS BUY MORE FUEL EFFICIENT 
CARS. 
(a) REPEAL OF LIMIT ON NUMBER OF CARS ELIGI-
BLE FOR CREDIT.—Section 30B of the Internal Revenue 
Code of 1986 (relating to alternative motor vehicle credit) 
is amended by striking subsection (f). 
(b) EMISSIONS STANDARDS.—Clause (iv) of section 
30B(c)(3)(A) of such Code is amended to read as follows: 
‘‘(iv) for 2004 and later model vehi-
cles, has received a certificate that such ve-
hicle meets or exceeds the Bin 5 Tier II
emission standard established in regula-
tions prescribed by the Administrator of 
the 
Environmental 
Protection 
Agency 
under section 202(i) of the Clean Air Act 
for that make and model year vehicle,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the amend-
ments made by section 1341(a) of the Energy Tax Incen-
tives Act of 2005. 
SEC. 102. ENERGY EFFICIENT MOTOR VEHICLES MANUFAC-
TURING CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to foreign tax credit, etc.) is amended by 
adding at the end the following new section: 
‘‘SEC. 30D. ENERGY EFFICIENT MOTOR VEHICLES MANU-
FACTURING CREDIT. 
‘‘(a) CREDIT ALLOWED.—In the case of an eligible 
taxpayer, subject to a credit allocation under subsection 
(e) to such eligible taxpayer, there shall be allowed as a 
credit against the tax imposed by this chapter for the tax-
able year to an amount equal to the sum of— 
‘‘(1) the initial investment credit determined 
under subsection (b) for the taxable year,
‘‘(2) the fuel economy achievement credit deter-
mined under subsection (c) for such taxable year, 
and 
‘‘(3) the eligible components R&D credit deter-
mined under subsection (d) for such taxable year. 
‘‘(b) INITIAL INVESTMENT CREDIT.—For purposes 
of this section, the initial investment credit is equal to 20 
percent of the qualified investment of an eligible taxpayer 
with respect to energy efficient motor vehicles during the 
taxable year beginning in 2006. 
‘‘(c) FUEL ECONOMY ACHIEVEMENT CREDIT.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—In the case of an eligible 
taxpayer who meets the requirements of paragraph 
(2) for a model year ending in a taxable year speci-
fied in the table contained in paragraph (3), the fuel 
economy achievement credit for such taxable year is 
equal to 30 percent of the sum of— 
‘‘(A) at the election of the eligible tax-
payer, such qualified investment for any pre-
ceding taxable year beginning after 2005 if 
such taxable year has not previously been taken 
into account under this subsection by such tax-
payer, plus
‘‘(B) at the election of the eligible tax-
payer, the qualified investment with respect to 
energy efficient motor vehicles of the eligible 
taxpayer for the taxable year beginning in 
2015. 
‘‘(2) DEMONSTRATED COMBINED FLEET ECON-
OMY
IMPROVEMENTS.—The requirements of this 
paragraph are met for any model year ending in a 
taxable year if the eligible taxpayer can demonstrate 
to the satisfaction of the Secretary that the percent-
age by which the taxpayer’s overall combined fuel 
economy standard for the taxpayer’s vehicle fleet for 
such model year exceeds such standard for such tax-
payer’s 2005 model year as reported to the National 
Highway Traffic Safety Administration under sec-
tion 32907 of title 49, United States Code, is not 
less than the percentage determined for such model 
year under paragraph (3). 
‘‘(3) PERCENTAGE INCREASE.—The percentage 
determined under this paragraph for any taxable 
year is equal to— 
‘‘Model year ending in 
Percentage 
taxable year 
increase 
2008 ...................................................................................................
2009 ...................................................................................................
2010 ...................................................................................................
2011 ...................................................................................................
2012 ...................................................................................................
27.5
2013 ...................................................................................................
‘‘Model year ending in 
Percentage 
taxable year 
increase 
2014 ...................................................................................................
42.5
2015 ...................................................................................................
50. 
‘‘(d) ELIGIBLE COMPONENTS R&D CREDIT.—For 
purposes of this section, the eligible R&D credit for any 
taxable year is equal to 30 percent of the research and 
development costs paid or incurred by an eligible taxpayer 
for such taxable year with respect to eligible components 
used or to be used in the manufacture of energy efficient 
motor vehicles. 
‘‘(e) LIMITATION.— 
‘‘(1) INITIAL INVESTMENT CREDIT AND FUEL 
ECONOMY ACHIEVEMENT CREDIT.—Subject to para-
graph (2), the aggregate amount of initial invest-
ment credits and fuel economy achievement credits 
allowed under subsection (a) for any taxable year be-
ginning in a calendar year after 2005 shall be allo-
cated by the Secretary among all eligible tax-
payers— 
‘‘(A) based on each eligible taxpayer’s per-
centage of the total qualified investment of all 
such taxpayers, and 
‘‘(B) such that such aggregate amount 
does not exceed— 
‘‘(i) $1,000,000,000, plus
‘‘(ii) any amount of credit unallocated 
during any preceding calendar year. 
‘‘(2) ELIGIBLE COMPONENTS R&D CREDIT.—Of 
the dollar amount available for allocation under 
paragraph (1) for any taxable year, 10 percent of 
such amount shall be allocated in the same manner 
by the Secretary among all eligible taxpayers with 
respect to the eligible components R&D credit. 
‘‘(f) QUALIFIED INVESTMENT.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The qualified investment 
for any taxable year is equal to the incremental costs 
incurred during such taxable year— 
‘‘(A) to re-equip or expand any manufac-
turing facility of the eligible taxpayer to 
produce energy efficient motor vehicles or to 
produce eligible components, and 
‘‘(B) for engineering integration of such 
vehicles and components as described in sub-
section (h). 
‘‘(2) ATTRIBUTION RULES.—In the event a fa-
cility of the eligible taxpayer produces both energy 
efficient motor vehicles and conventional motor vehi-
cles, or eligible and non-eligible components, only the 
qualified investment attributable to production of en-
ergy efficient motor vehicles and the research and 
development costs attributable to eligible components 
shall be taken into account. 
‘‘(g) ENERGY EFFICIENT MOTOR VEHICLES AND EL-
IGIBLE COMPONENTS.—For purposes of this section— 
‘‘(1) ENERGY
EFFICIENT
MOTOR
VEHICLE.— 
The term ‘energy efficient motor vehicle’ means— 
‘‘(A) any new advanced lean burn tech-
nology motor vehicle (as defined in section 
30B(c)(3) determined without regard to sub-
paragraph (A)(iv)(II) thereof or the weight lim-
itation under subparagraph (A)(iv)(I) thereof), 
‘‘(B) any new qualified hybrid motor vehi-
cle (as defined in section 30B(d)(3)(A) deter-
mined 
without 
regard 
to 
subparagraph 
(A)(ii)(II) thereof, the weight limitation under 
subparagraph (A)(ii)(I) thereof, and subpara-
graph (A)(iv) thereof), or 
‘‘(C) any other new technology motor vehi-
cle identified by the Secretary as offering a sub-
stantial increase in fuel economy. 
‘‘(2) ELIGIBLE COMPONENTS.—The term ‘eligi-
ble component’ means any component inherent to 
any energy efficient motor vehicle, including—
‘‘(A) with respect to any gasoline-electric 
new qualified hybrid motor vehicle— 
‘‘(i) electric motor or generator, 
‘‘(ii) power split device, 
‘‘(iii) power control unit, 
‘‘(iv) power controls, 
‘‘(v) integrated starter generator, or 
‘‘(vi) battery, 
‘‘(B) with respect to any new advanced 
lean burn technology motor vehicle— 
‘‘(i) diesel engine, 
‘‘(ii) turbocharger, 
‘‘(iii) fuel injection system, or 
‘‘(iv) after-treatment system, such as 
a particle filter or NOx absorber, and 
‘‘(C) with respect to any energy efficient 
motor vehicle, any other component approved 
by the Secretary. 
‘‘(h) ENGINEERING INTEGRATION COSTS.—For pur-
poses of subsection (f)(1)(B), costs for engineering inte-
gration are costs incurred prior to the market introduction 
of energy efficient vehicles for engineering tasks related 
to— 
‘‘(1) incorporating eligible components into the 
design of energy efficient motor vehicles, and
‘‘(2) designing new tooling and equipment for 
production facilities which produce eligible compo-
nents or energy efficient motor vehicles. 
‘‘(i) ELIGIBLE TAXPAYER.—For purposes of this sec-
tion, the term ‘eligible taxpayer’ means, with respect to 
any taxable year, any taxpayer if more than 25 percent 
of the taxpayer’s gross receipts for the taxable year is de-
rived from the manufacture of motor vehicles or any com-
ponent parts of such vehicles. 
‘‘(j) LIMITATION BASED ON AMOUNT OF TAX.—The 
credit allowed under subsection (a) for the taxable year 
shall not exceed the excess of— 
‘‘(1) the sum of— 
‘‘(A) the regular tax liability (as defined in 
section 26(b)) for such taxable year, plus 
‘‘(B) the tax imposed by section 55 for 
such taxable year, over 
‘‘(2) the sum of the credits allowable under sub-
part A and sections 27, 30, 30B, and 30C for the 
taxable year. 
‘‘(k) REDUCTION IN BASIS.—For purposes of this 
subtitle, if a credit is allowed under this section for any 
expenditure with respect to any property, the increase in 
the basis of such property which would (but for this para-
graph) result from such expenditure shall be reduced by 
the amount of the credit so allowed. 
‘‘(l) NO DOUBLE BENEFIT.— 
‘‘(1) COORDINATION WITH OTHER DEDUCTIONS 
AND
CREDITS.—The amount of any deduction or 
other credit allowable under this chapter for any 
cost taken into account in determining the amount 
of the credit under subsection (a) shall be reduced 
by the amount of such credit attributable to such 
cost. 
‘‘(2) RESEARCH AND DEVELOPMENT COSTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), any amount described in 
subsection (d) taken into account in deter-
mining the amount of the credit under sub-
section (a) for any taxable year shall not be 
taken into account for purposes of determining 
the credit under section 41 for such taxable 
year. 
‘‘(B) COSTS TAKEN INTO ACCOUNT IN DE-
TERMINING
BASE
PERIOD
RESEARCH
EX-
PENSES.—Any amounts described in subsection 
(d) taken into account in determining the 
amount of the credit under subsection (a) for 
any taxable year which are qualified research
expenses (within the meaning of section 41(b)) 
shall be taken into account in determining base 
period research expenses for purposes of apply-
ing section 41 to subsequent taxable years. 
‘‘(m) BUSINESS CARRYOVERS ALLOWED.—If the 
credit allowable under subsection (a) for a taxable year 
exceeds the limitation under subsection (j) for such tax-
able year, such excess (to the extent of the credit allowable 
with respect to property subject to the allowance for depre-
ciation) shall be allowed as a credit carryback and 
carryforward under rules similar to the rules of section 
39. 
‘‘(n) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) DEFINITIONS.—Any term which is used in 
this section and in chapter 329 of title 49, United 
States Code, shall have the meaning given such term 
by such chapter. 
‘‘(2) SPECIAL
RULES.—Rules similar to the 
rules of paragraphs (4) and (5) of section 179A(e) 
and paragraphs (1) and (2) of section 41(f) shall 
apply. 
‘‘(o) ELECTION NOT TO TAKE CREDIT.—No credit 
shall be allowed under subsection (a) for any property if
the taxpayer elects not to have this section apply to such 
property. 
‘‘(p) REGULATIONS.—The Secretary shall prescribe 
such regulations as necessary to carry out the provisions 
of this section. 
‘‘(q) TERMINATION.—This section shall not apply to 
any qualified investment made after December 31, 2015.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(38) to the extent provided in section 
30D(k).’’. 
(2) Section 6501(m) of such Code is amended 
by inserting ‘‘30D(o),’’ after ‘‘30C(e)(5),’’. 
(3) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 30C the following new item: 
‘‘Sec. 30D. Energy efficient motor vehicles manufacturing credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply to amounts incurred in taxable 
years beginning after December 31, 2005.
SEC. 103. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS. 
(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) DEFINITIONS
FROM
TITLE
49, UNITED 
STATES CODE.—The terms ‘‘capital project’’, ‘‘local 
governmental authority’’, ‘‘mass transportation’’, 
and ‘‘urbanized area’’ have the meanings such terms 
have under section 5302 of title 49, United States 
Code. 
(2) STATE.—The term ‘‘State’’ means a State 
of the United States, the District of Columbia, Puer-
to Rico, the Northern Mariana Islands, Guam, 
American Samoa, and the United States Virgin Is-
lands. 
(3) TRANSIT-ORIENTED
DEVELOPMENT
COR-
RIDOR.—The term ‘‘transit-oriented development 
corridor’’ means rights-of-way for fixed-guideway 
mass transportation facilities, including commercial 
development that is connected with any such facility 
physically and functionally. 
(b) IN GENERAL.—In consultation with State trans-
portation departments and metropolitan planning organi-
zations, the Secretary of Transportation shall designate, 
in urbanized areas, at least 20 transit-oriented develop-
ment corridors by 2015 and 50 transit-oriented develop-
ment corridors by 2025.
(c) TRANSIT GRANTS.—The Secretary of Transpor-
tation shall award grants to a State or local governmental 
authority to construct or improve transit facilities, bicycle 
transportation facilities, and pedestrian walkways in a 
transit-oriented development corridor, including capital 
projects. 
(d) RESEARCH AND DEVELOPMENT.—In order to 
support effective deployment of grants and incentives 
under this section, the Secretary of Transportation shall 
establish a transit-oriented development corridors research 
and development program for the conduct of research on 
best practices and performance criteria for transit-ori-
ented development corridors. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$500,000,000 for each of fiscal years 2007 through 2016, 
of which $2,000,000 per fiscal year is authorized for the 
research and development program under subsection (d). 
(f) LABOR STANDARDS.—The Secretary of Transpor-
tation shall not provide a grant under this section unless 
the Secretary receives reasonable assurances from a State 
that laborers and mechanics employed by contractors or 
subcontractors in the performance of construction or mod-
ernization on the a transit project will be paid wages not 
less than those prevailing on similar construction or mod-
ernization in the locality as determined by the Secretary 
of Labor under the Act of March 3, 1931 (known as the 
Davis-Bacon Act) (40 U.S.C. 276a et seq.). 
SEC. 104. AUTOMOBILE FUEL ECONOMY STANDARDS. 
(a) PHASED INCREASES IN FUEL ECONOMY STAND-
ARDS.— 
(1) PASSENGER AUTOMOBILES.— 
(A) 
MINIMUM
STANDARDS.—Section 
32902(b) of title 49, United States Code, is 
amended to read as follows: 
‘‘(b) PASSENGER AUTOMOBILES.—Except as other-
wise provided under this section, the average fuel economy 
standard for passenger automobiles manufactured by a 
manufacturer in a model year— 
‘‘(1) after model year 1984 and before model 
year 2008 shall be 25 miles per gallon; 
‘‘(2) after model year 2007 and before model 
year 2011 shall be 28 miles per gallon; 
‘‘(3) after model year 2010 and before model 
year 2014 shall be 32 miles per gallon; 
‘‘(4) after model year 2013 and before model 
year 2017 shall be 36 miles per gallon; and 
‘‘(5) after model year 2016 shall be 40 miles 
per gallon.’’.
(B) HIGHER STANDARDS SET BY REGULA-
TION.—Section 32902(c) of title 49, United 
States Code, is amended— 
(i) by striking paragraph (2); and 
(ii) in paragraph (1)— 
(I) by striking ‘‘Subject to para-
graph (2) of this subsection, the’’ and 
inserting ‘‘The’’; 
(II) by striking ‘‘amending the 
standard’’ and inserting ‘‘increasing 
the standard otherwise applicable’’; 
and 
(III) by striking ‘‘Section 553’’ 
and inserting the following: ‘‘(2) Sec-
tion 553’’. 
(b) INCREASED INCLUSIVENESS OF DEFINITIONS OF 
AUTOMOBILE AND PASSENGER AUTOMOBILE.— 
(1) AUTOMOBILE.— 
(A) IN GENERAL.—Section 32901(a)(3) of 
title 49, United States Code, is amended— 
(i) by striking ‘‘6,000 pounds’’ each 
place it appears and inserting ‘‘12,000 
pounds’’; and 
(ii) in subparagraph (B)—
(I) by striking ‘‘10,000 pounds’’ 
and inserting ‘‘14,000 pounds’’; and 
(II) in clause (ii), by striking ‘‘an 
average fuel economy standard’’ and 
all that follows through ‘‘conservation 
or’’. 
(B) SPECIAL RULE.—Section 32908(a)(1) 
of such title is amended by striking ‘‘8,500 
pounds’’ and inserting ‘‘14,000 pounds’’. 
(2) 
PASSENGER
AUTOMOBILE.—Section 
32901(a)(16) of title 49, United States Code, is 
amended to read as follows: 
‘‘(16) ‘passenger automobile’ means an auto-
mobile having a gross vehicle weight of 10,000 
pounds or less that is designed to be used principally 
for the transportation of persons;’’. 
(3) APPLICABILITY.—The amendments made 
by this section shall apply with respect to auto-
mobiles manufactured for model years beginning 
after the date of enactment of this Act. 
(c) CIVIL PENALTIES.— 
(1) INCREASED PENALTY FOR VIOLATIONS OF 
FUEL ECONOMY STANDARDS.—Section 32912(b) of 
title 49, United States Code, is amended—
(A) by inserting ‘‘(1)’’ before ‘‘Except as 
provided’’; 
(B) by striking ‘‘$5’’ and inserting ‘‘the 
dollar amount applicable under paragraph (2)’’; 
(C) by redesignating paragraphs (1), (2), 
and (3) as subparagraphs (A), (B), and (C), re-
spectively; and 
(D) by adding at the end the following: 
‘‘(2)(A) The dollar amount referred to in para-
graph (1) is $10, as increased from time to time 
under subparagraph (B); 
‘‘(B) Effective on October 1 of each year, the 
dollar amount applicable under subparagraph (A) 
shall be increased by the percentage (rounded to the 
nearest 1⁄10 of 1 percent) by which the price index 
for July of such year exceeds the price index for 
July of the preceding year. The amount calculated 
under the preceding sentence shall be rounded to the 
nearest $0.10. 
‘‘(C) In this paragraph, the term ‘price index’ 
means the Consumer Price Index for all-urban con-
sumers published monthly by the Department of 
Labor.’’.
(2) 
CONFORMING
AMENDMENT.—Section 
32912(c)(1) of title 49, United States Code, is 
amended— 
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraphs (C) 
and (D) as subparagraphs (B) and (C), respec-
tively. 
(3) APPLICABILITY.—The amendments made 
by subsection (a) shall apply with respect to auto-
mobiles manufactured for model years beginning 
after the date of enactment of this Act. 
SEC. 105. INCLUSION OF SPORTS UTILITY VEHICLES IN 
LIMITATION ON DEPRECIATION OF CERTAIN 
LUXURY AUTOMOBILES. 
(a) IN GENERAL.—Subparagraph (A) of section 
280F(d)(5) of the Internal Revenue Code of 1986 (defin-
ing passenger automobile) is amended by striking clause 
(ii) and all that follows and inserting the following new 
clause: 
‘‘(ii)(I) except as provided in sub-
clause (II) or (III), which is rated at 6,000 
pounds unloaded gross vehicle weight or 
less,
‘‘(II) in the case of a truck or van, 
which is rated at 6,000 pounds gross vehi-
cle weight or less, or 
‘‘(III) in the case of a sports utility 
vehicle not described in subclause (I), 
which is rated at more than 6,000 pounds 
but not more than 14,000 pounds gross ve-
hicle weight.’’. 
(b) DEFINITION.—Paragraph (5) of section 280F(d) 
of such Code is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) SPORTS
UTILITY
VEHICLES.—The 
term ‘sports utility vehicle’ does not include any 
vehicle which— 
‘‘(i) does not have the primary load 
carrying device or container attached, 
‘‘(ii) has a seating capacity of more 
than 12 individuals, 
‘‘(iii) is designed for more than 9 indi-
viduals in seating rearward of the driver’s 
seat, 
‘‘(iv) is equipped with an open cargo 
area, or a covered box not readily acces-
sible from the passenger compartment, of 
at least 72.0 inches in interior length, or
‘‘(v) has an integral enclosure, fully 
enclosing the driver compartment and load 
carrying device, does not have seating rear-
ward of the driver’s seat, and has no body 
section protruding more than 30 inches 
ahead of the leading edge of the wind-
shield.’’. 
(c) CONFORMING AMENDMENT.—Section 179(b) of 
such Code (relating to limitations) is amended by striking 
paragraph (6). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 106. FUEL EFFICIENCY STANDARDS FOR REPLACE-
MENT TIRES. 
(a) STANDARDS FOR TIRES MANUFACTURED FOR 
INTERSTATE COMMERCE.—Section 30123 of title 49, 
United States Code, is amended— 
(1) in subsection (b), by inserting after the first 
sentence the following: ‘‘The grading system shall 
include standards for rating the fuel efficiency of 
tires designed for use on passenger cars and light 
trucks.’’; and 
(2) by adding at the end of the following:
‘‘(d) NATIONAL
TIRE
FUEL
EFFICIENCY
PRO-
GRAM.—(1) The Secretary shall develop and carry out a 
national tire efficiency program for tires designed for use 
on passenger cars and light trucks. 
‘‘(2) The program shall include the following: 
‘‘(A) Policies and procedures for testing and la-
beling tires for fuel economy to enable tire buyers to 
make informed purchasing decisions about the fuel 
economy of tires. 
‘‘(B) Policies and procedures to promote the 
purchase of energy-efficient replacement tires, in-
cluding purchase incentives, website listings on the 
Internet, printed fuel economy guide booklets, and 
mandatory requirements for tire retailers to provide 
tire buyers with fuel-efficiency information on tires. 
‘‘(C) Minimum fuel economy standards for 
tires, promulgated by the Secretary. 
‘‘(3) The minimum fuel economy standards for tires 
shall— 
‘‘(A) ensure that, in conjunction with the re-
quirements of paragraph (2)(B), the average fuel 
economy of replacement tires is equal to or better 
than the average fuel economy of tires sold as origi-
nal equipment;
‘‘(B) secure the maximum technically feasible 
and cost-effective fuel savings; and 
‘‘(C) not adversely affect tire safety; 
‘‘(D) not adversely affect the average tire life of 
replacement tires; 
‘‘(E) incorporate the results from— 
‘‘(i) laboratory testing; and 
‘‘(ii) to the extent appropriate and avail-
able, on-road fleet testing programs conducted 
by manufacturers; and 
‘‘(F) not adversely affect efforts to manage 
scrap tires. 
‘‘(4) The policies, procedures, and standards devel-
oped under paragraph (2) shall apply to all tire types an 
models that are covered by the Uniform Tire Quality 
Grading Standards in section 575.104 of title 49, Code 
of Federal Regulations (or any successor regulation). 
‘‘(5) Not less than every 3 years, the Secretary shall 
review the minimum fuel economy standards in effect for 
tires under this subsection and revise the standards as 
necessary to ensure compliance with requirements under 
paragraph (3). The Secretary may not reduce the average 
fuel economy standards applicable to replacement tires. 
‘‘(6) Nothing in this section shall be construed to pre-
empt any provisions of State law relating to higher fuel
economy standards applicable to replacement tires de-
signed for use on passenger cars and light trucks. Nothing 
in this chapter shall apply to— 
‘‘(A) a tire or group of tires with the same 
product identification number, plant, and year, for 
which the volume of tires produced or imported is 
less than 15,000 annually; 
‘‘(B) a deep tread, winter-type snow tire, space- 
saver tire, or temporary use spare tire; 
‘‘(C) a tire with a normal rim diameter of 12 
inches or less; 
‘‘(D) a motorcycle tire; or 
‘‘(E) a tire manufactured specifically for use in 
an off-road motorized recreational vehicle. 
‘‘(7) In this subsection, the term ‘fuel economy’, with 
respect to tires, means the extent to which the tire con-
tribute to the fuel economy of the motor vehicles on which 
the tire are mounted.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
30103(b)(1) of title 49, United States Code, is amended 
by striking ‘‘When’’ and inserting ‘‘Except as provided in 
section 30123(d) of this title, when’’. 
(c) IMPLEMENTATION.—The Secretary of Transpor-
tation shall ensure that the national tire fuel efficiency 
program required under subsection (d) of section 30123
of title 49, United States Code, (as added by subsection 
(a)(2)), is administered so as to apply the policies, proce-
dures, and standards developed under paragraph (2) of 
such subsection beginning not later than March 31, 2008. 
TITLE II—REDUCE HEAT AND 
ELECTRIC BILLS 
SEC. 201. WEATHERIZATION ASSISTANCE. 
Section 422 of the Energy Conservation and Produc-
tion Act (42 U.S.C. 6872) is amended— 
(1) by striking ‘‘$500,000,000’’ and inserting 
‘‘$1,000,000,000’’; 
(2) by striking ‘‘$600,000,000’’ and inserting 
‘‘$1,200,000,000’’; and 
(3) by striking ‘‘$700,000,000’’ and inserting 
‘‘$1,400,000,000’’. 
SEC. 202. ENERGY STAR PROGRAMS. 
There are authorized to be appropriated for carrying 
out the Energy Star program under section 324A of the 
Energy Policy and Conservation Act— 
(1) to the Administrator of the Environmental 
Protection Agency $100,000,000 for each fiscal 
year; and 
(2) to the Secretary of Energy $12,000,000 for 
each fiscal year.
SEC. 203. RENEWABLE ELECTRICITY PRODUCTION CREDIT. 
(a) EXTENSION.—Section 45(d) of the Internal Rev-
enue Code of 1986 (relating to qualified facilities) is 
amended— 
(1) by striking ‘‘January 1, 2008’’ each place 
it appears in paragraphs (1), (2), (3), (5), (6), and 
(7) and inserting ‘‘January 1, 2012’’, and 
(2) by striking ‘‘January 1, 2006’’ in paragraph 
(4) and inserting ‘‘January 1, 2012 (January 1, 
2010, in the case of a facility using solar energy)’’. 
(b) REPEAL OF MUNICIPAL SOLID WASTE AS QUALI-
FIED RESOURCE.—Paragraph (1) of section 45(c) of such 
Code is amended by striking subparagraph (G). 
(c) EXTENSION OF CREDIT FOR RESIDENTIAL EN-
ERGY EFFICIENT PROPERTY.—Subsection (g) of section 
25D of such Code (relating to termination) is amended 
by striking ‘‘December 31, 2007’’ and inserting ‘‘Decem-
ber 31, 2012’’. 
SEC. 204. EFFICIENCY RESOURCE STANDARD. 
(a) AMENDMENT.—Title VII of the Public Utility 
Regulatory Policies Act of 1978 is amended by adding the 
following new section at the end thereof: 
‘‘SEC. 610. EFFICIENCY RESOURCE STANDARD FOR RETAIL 
ELECTRICITY AND NATURAL GAS SUPPLIERS. 
‘‘(a) RESOURCE STANDARD.—Each retail electricity 
and natural gas supplier shall undertake energy savings
measures in each calendar year from 2006 through 2015 
that produce electricity demand savings and electricity and 
natural gas usage savings, as a percentage of the sup-
plier’s base amount as shown in the following table. These 
targets represent savings realized from measures installed 
in the current year, plus cumulative savings realized from 
measures installed in all previous years. Each retail elec-
tricity and natural gas supplier subject to this subsection 
may use any electricity or natural gas savings measures 
available to it to achieve compliance with the performance 
standard established under this section, so long as the 
electricity and natural gas savings achieved by such meas-
ures can be calculated and verified pursuant to the rules 
promulgated under subsection (b). 
‘‘Year 
Reductions in peak 
electricity demand 
Reductions in 
electricity 
and natural 
gas usage 
2006 .......................................................
0.25% ...............................
0.25% 
2007 .......................................................
0.75% ...............................
0.75% 
2008 .......................................................
1.75% ...............................
1.5% 
2009 .......................................................
2.75% ...............................
2.25% 
2010 and thereafter ...............................
3.75% ...............................
3.0% 
‘‘(b) DETERMINATION OF COMPLIANCE.—The Sec-
retary shall promulgate rules not later than one year after 
the enactment of this section regarding the means to be 
used to calculate and verify compliance with the perform-
ance standard established under subsection (a). Each re-
tail electric and natural gas supplier subject to this section 
shall calculate its compliance with such standard in ac-
cordance with such rules. The rules shall include each of 
the following: 
‘‘(1) Procedures and standards for defining and 
measuring electricity savings achieved or obtained by 
electricity and natural gas suppliers (hereinafter in 
this section referred to as ‘electricity and natural 
gas savings’) from customer facility end-uses that 
occur in a calendar year from all measures in place 
in that year (including measures implemented in 
previous years that produce electricity and natural 
gas savings in such calendar year). 
‘‘(2) Procedures and standards for verification 
of electricity and natural gas savings reported by the 
retail electricity and natural gas supplier. 
‘‘(3) Requirements for the contents and format 
of a bi-annual report from each retail electricity and 
natural gas supplier demonstrating its compliance 
with the requirements of subsection (a). The bi-an-
nual report must include sufficient detail regarding 
the calculation of electricity and natural gas savings 
to enable the regulatory authority to verify and en-
force compliance with the requirements of this sec-
tion and the regulations under this section.
‘‘(c) CREDIT AND TRADING SYSTEM.—(1) After con-
sultation with the Administrator of the Environmental 
Protection Agency, the Secretary shall promulgate rules 
establishing a nationwide credit and credit trading system 
for electricity and natural gas savings. Under such rules 
the Secretary may certify as credits electricity or natural 
savings achieved by a retail electricity or natural gas sup-
plier in a given year in excess of the quantity of electricity 
or natural gas savings required that calendar year for such 
supplier to meet the resource standard, as long as such 
savings comply with the rules established under subsection 
(b). The Secretary shall also certify as credits customer 
energy savings created by retail electric or natural gas 
suppliers or other entities, as long as such savings comply 
with the rules established under subsection (b). An elec-
tricity savings credit shall equal one kilowatt hour; a nat-
ural gas savings credit shall constitute one therm. 
‘‘(2) The Secretary shall not award credits to any re-
tail electricity or natural gas supplier subject to State ad-
ministration and enforcement under subsection (d) unless 
the Secretary has determined that such administration 
and enforcement are at least equivalent to administration 
and enforcement by the Secretary. 
‘‘(3) An electricity or natural gas savings credit is 
not a property right. Nothing in this or any other provi-
sion of law shall be construed to limit the authority of 
the United States to terminate or limit such credits. 
‘‘(4) A retail electric or natural gas supplier may sell 
such credit to any other entity, and other entities may sell 
such credits to retail electric or natural gas suppliers, in 
accordance with the accounting and verification rules es-
tablished by the Secretary. Such credit may be used by 
a purchasing retail electricity or natural gas supplier for 
purposes of complying with the resource standards set 
forth in subsection (a). 
‘‘(5) In order to receive an electricity or natural gas 
savings credit, the recipient of an electricity savings credit 
shall pay a fee, calculated by the Secretary, in an amount 
that is equal to the administrative costs of issuing, record-
ing, monitoring the sale or exchange of, and tracking the 
credit or does not exceed five percent of the dollar value 
of the credit, whichever is lower. The Secretary shall re-
tain the fee and use it to pay these administrative costs. 
‘‘(6) A credit may be counted toward compliance with 
subsection (a) only once. A retail electricity or natural gas 
supplier may satisfy the requirements of subsection (a) 
through the accumulation of 
‘‘(A) electricity or natural gas savings credits 
obtained by purchase or exchange under paragraph 
(7);
‘‘(B) electricity or natural gas savings credits 
borrowed against future years under paragraph (8); 
or 
‘‘(C) any combination of credits under subpara-
graphs (A) and (B). 
‘‘(7) An electricity or natural gas savings credit may 
be sold or exchanged by the entity to whom issued or by 
any other entity that acquires the credit. An energy effi-
ciency credit for any year that is not used to satisfy the 
minimum energy savings requirement of subsection (a) for 
that year may be carried forward for use within the next 
4 years. 
‘‘(8) During the first year covered by the standards, 
a retail electricity or natural gas supplier that has reason 
to believe that it will not have sufficient electricity savings 
credits to comply with subsection (a) may 
‘‘(A) submit a plan to the Secretary dem-
onstrating that the retail electricity or natural gas 
supplier will earn sufficient credits within the next 
two calendar years which, when taken into account, 
will enable the retail electricity or natural gas sup-
plier to meet the requirements of subsection (a) for 
the calendar year involved; and 
‘‘(B) upon the approval of the plan by the Sec-
retary, apply credits that the plan demonstrates will
be earned within the next two calendar years to 
meet the requirements of subsection (a) for the cal-
endar year involved. 
‘‘(9) Any retail electricity or natural gas supplier may 
elect to comply with the requirements of this section in 
any calendar year by paying a fee of 3 cents per kilowatt 
hour, and 30 cents per therm, for any portion of the elec-
tricity or natural gas savings it would be obligated to 
achieve in that year by not later than March 31 of the 
following year. Funds produced from such fees shall be 
deposited in an escrow account established by the Sec-
retary, and shall be distributed to the States for their use 
in creating electricity or natural gas savings at customer 
facilities. 
‘‘(d) ENFORCEMENT OF COMPLIANCE.—(1) If the 
State regulatory authority with ratemaking jurisdiction 
over a State-regulated retail electricity or natural gas sup-
plier notifies the Secretary that it will enforce compliance 
by such supplier with the performance standards under 
subsection (a) of this section, such State regulatory au-
thority shall have the authority to administer and enforce 
such standards for such supplier under State law. If the 
State regulatory authority does not so notify the Sec-
retary, the Secretary shall exercise such authority until re-
ceiving such notice from the State regulatory authority.