technologies in areas such as efficiency, biomass, 
and hydrogen that could play a role in reducing de-
mand for oil and meeting growing domestic eco-
nomic needs for fuel; 
(4) such an entity could encourage the develop-
ment of those technologies, help break through pri-
vate sector risk barriers to their development, and 
advise Congress and the President on policies needed 
to foster their use; and 
(5) such an effort would improve the Nation’s 
energy and national security by lowering demand for 
petroleum, increasing domestic fuel supplies, cre-
ating jobs, and improving the environment. 
SEC. 202. DEFINITIONS. 
In this title— 
(1) ADVISORY COUNCIL.—The term ‘‘Advisory 
Council’’ means the Advisory Council established 
under section 204. 
(2) CENTER.—The term ‘‘Center’’ means the 
New Manhattan Center for High Efficiency Vehicles 
established under section 203(c). 
(3) RESEARCH.—The term ‘‘research’’ includes 
research on the technologies, materials, and manu-
facturing processes required for high efficiency vehi-
cles. 
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SEC. 203. NEW MANHATTAN CENTER FOR HIGH EFFI-
CIENCY VEHICLES. 
(a) SUMMIT.—Not later than 60 days after the date 
of enactment of this Act, the President shall convene a 
summit of the principal advisors and directors of all pro-
grams in the Federal Government related to the develop-
ment of vehicle (or related and component parts) tech-
nologies and alternative fuels, including ethanol and 
biofuels, electric drive, and hydrogen. Such summit shall 
include leading researchers at the Federal laboratories and 
representatives of private sector partners, and affiliated 
labor unions, engaged in the production and manufac-
turing of these vehicle and fuel technologies. The summit 
shall be for the purpose of— 
(1) reviewing the progress and promise for each 
of these technologies toward increasing fuel econ-
omy, the interrelationship of these technologies to 
each other, and additional funding resources needed 
to accelerate the progress of these programs toward 
improving efficiency and economy dramatically in 
the next decade, including review of technology de-
veloped and lessons learned from the Federal Gov-
ernment’s initiative known as the Partnership for a 
New Generation of Vehicles; and 
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(2) making recommendations as to the organi-
zation and structure of the Center described in this 
section. 
(b) PROGRAM.—The Secretary of Energy, in con-
sultation with the Secretary of Defense, the Secretary of 
Transportation, and the Administrator of the Environ-
mental Protection Agency, shall carry out a program con-
sisting of a collaborative effort with industry, government, 
and academia to support research, development, dem-
onstration, and commercial application activities related to 
high efficiency vehicles. Such program shall include exam-
ination of motors, clutches, sensors, controllers, cooling 
systems, variable combustion engine technologies, flexible 
fueled and dual fuel fueling systems, hybrid electric flexi-
ble fuel vehicles, electric drive accessory components, and 
advanced batteries in an effort to— 
(1) reduce production costs to the lowest pos-
sible level, with special emphasis on identifying elec-
tric drive components and systems that can be ad-
vanced through research and development toward 
commercialization; 
(2) increase fuel economy; and 
(3) coordinate related Federal research, devel-
opment, and commercialization programs in accord-
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ance with the recommendations resulting from the 
summit convened under subsection (a). 
(c) GRANTS.—Such program shall consist of grants 
to— 
(1) the Center, made in accordance with the 
memorandum of understanding entered into under 
subsection (e); 
(2) researchers, including Center participants; 
(3) small businesses; 
(4) National Laboratories; and 
(5) institutions of higher education. 
(d) CENTER.—Not later than 90 days after the date 
of enactment of this Act, the Secretary of Energy shall 
competitively select a consortium to serve as the New 
Manhattan Center for High Efficiency Vehicles, which 
shall consist of participants who are private, for-profit 
United States firms, open to large and small businesses, 
that, as a group, are broadly representative of United 
States high efficiency vehicle research, development, infra-
structure, and manufacturing expertise as a whole. 
(e) MEMORANDUM OF UNDERSTANDING.—The Sec-
retary of Energy shall enter into a memorandum of under-
standing with the Center for the purposes of this title. The 
memorandum of understanding shall require the following: 
(1) That the Center shall have— 
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(A) a charter agreed to by all representa-
tives of the automotive industry that are par-
ticipating members of the Center; and 
(B) an annual operating plan that is devel-
oped in the consultation with the Secretary of 
Energy and the Advisory Council. 
(2) That the total amount of funds made avail-
able to the Center by Federal, State, and local gov-
ernment agencies for any fiscal year for the support 
of the research and development activities of the 
Center under this section may not exceed 50 percent 
of the total cost of such activities. 
(3) That the Center, in conducting research 
and development activities pursuant to the memo-
randum of understanding, cooperate with and draw 
on the expertise of the National Laboratories of the 
Department of Energy and of colleges and univer-
sities in the United States in the field of automotive 
manufacturing technology. 
(4) That an independent, commercial auditor be 
retained— 
(A) to determine the extent to which the 
funds made available to the Center by the 
United States for the research and development 
activities of the Center have been expended in 
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a manner that is consistent withe the purposes 
of this title, the charter of the Center, and the 
annual operating plan of the Center; and 
(B) to submit to the Secretary of Energy, 
the Center, and the Comptroller General of the 
United States an annual report containing the 
findings and determinations of such auditor. 
(5) That the Center take all steps necessary to 
maximize the expeditious and timely transfer of 
technology developed and owned by the Center to the 
participants in the Center in accordance with the 
agreement between the Center and those partici-
pants and for the purpose of improving the high effi-
ciency vehicle manufacturing productivity of United 
States automotive firms. 
(f) COST SHARING.—In carrying out this section, the 
Secretary of Energy shall require cost sharing in accord-
ance with section 988 of the Energy Policy Act of 2005 
(42 U.S.C. 16352). 
(g) RIGHTS
TO INTELLECTUAL PROPERTY.—The 
Secretary of Energy may require (in accordance with sec-
tion 202(a)(ii) of title 35, United States Code, section 152 
of the Atomic Energy Act of 1954 (42 U.S.C. 2182), and 
section 9 of the Federal Nonnuclear Energy Research and 
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Development Act of 1974 (42 U.S.C. 5908)) that for any 
new invention developed under this title— 
(1) the Center participants who are active par-
ticipants in research, development, and demonstra-
tion activities related to the high efficiency vehicle 
technologies that are covered by this section shall be 
granted the first option to negotiate with the inven-
tion owner, at least in the field of high efficiency ve-
hicles, nonexclusive licenses and royalties on terms 
that are reasonable under the circumstances; 
(2) for 1 year after a United States patent is 
issued for the invention— 
(A) the patent holder shall not negotiate 
any license or royalty with any entity that is 
not a participant in the Center; and 
(B) the patent holder shall negotiate non-
exclusive licenses and royalties in good faith 
with any interested participant in the Center; 
and 
(3) such other terms are applied as the Sec-
retary determines are required to promote acceler-
ated commercialization of inventions made under 
this section. 
(h) NATIONAL ACADEMY REVIEW.—The Secretary of 
Energy shall enter into an arrangement with the National 
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Academy of Sciences to conduct periodic reviews of the 
program under this section. 
SEC. 204. ADVISORY COUNCIL. 
(a) ESTABLISHMENT.—There is established the Advi-
sory Council on Federal Participation in the New Manhat-
tan Center for High Efficiency Vehicles. 
(b) FUNCTIONS.—(1) The Advisory Council shall ad-
vise the Center and the Secretary of Energy on appro-
priate technology goals for the research and development 
activities of the Center, and shall develop a plan to achieve 
those goals. The plan shall provide for the development 
of high-quality, high-yield high efficiency vehicle manufac-
turing technologies that meet the national energy security 
and commercial needs of the United States. 
(2) The Advisory Council shall— 
(A) conduct an annual review of the activities 
of the Center for the purpose of determining the ex-
tent of the progress made by the Center in carrying 
out the plan referred to in paragraph (1); and 
(B) on the basis of its determinations under 
subparagraph (A), submit to the Center any rec-
ommendations for modification of the plan or the 
technological goals in the plan considered appro-
priate by the Advisory Council. 
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(3) The Advisory Council shall review the research 
activities of the Center and shall submit to the Secretary 
of Energy and the Congress an annual report containing 
a description of the extent to which the Center is achieving 
its research and development goals. 
(c) MEMBERSHIP.—The Advisory Council shall be 
composed of 12 members as follows: 
(1) The Under Secretary for Science of the De-
partment of Energy. 
(2) The Administrator of the Research and In-
novative Technology Administration. 
(3) The Director of the National Science Foun-
dation. 
(4) The Chairman of the Federal Laboratory 
Consortium for Technology Transfer. 
(5) Eight members appointed by the President 
as follows: 
(A) Three members who are eminent indi-
viduals in the automotive technology and manu-
facturing industry. 
(B) Two members who are eminent indi-
viduals in the fields of alternative fuels tech-
nology. 
(C) Two members who represent organized 
labor in these related manufacturing fields. 
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(D) One member who represents consumer 
interests in energy efficiency and conservation. 
(d) TERMS OF MEMBERSHIP.—Each member of the 
Advisory Council appointed under subsection (c)(5) shall 
be appointed for a term of three years, except that of the 
members first appointed, two shall be appointed for a term 
of one year, two shall be appointed for a term of two years, 
and three shall be appointed for a term of three years, 
as designated by the President at the time of appointment. 
A member of the Advisory Council may serve after the 
expiration of the member’s term until a successor has 
taken office. 
(e) VACANCIES.—A vacancy in the Advisory Council 
shall not affect its powers but, in the case of a member 
appointed under subsection (c)(5), shall be filled in the 
same manner as the original appointment was made. Any 
member appointed to fill a vacancy for an unexpired term 
shall be appointed for the remainder of such term. 
(f) QUORUM.—Seven members of the Advisory Coun-
cil shall constitute a quorum. 
(g) MEETINGS.—The Advisory Council shall meet at 
the call of the Chairman or a majority of its members. 
(h) COMPENSATION.—(1) Each member of the Advi-
sory Council shall serve without compensation. 
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(2) While away from their homes or regular places 
of business in the performance of duties for the Advisory 
Council, members of the Advisory Council shall be allowed 
travel expenses, including per diem in lieu of subsistence, 
at rates authorized for employees of agencies under sec-
tions 5702 and 5703 of title 5, United States Code. 
(i) FEDERAL ADVISORY COMMITTEE ACT.—Section 
14 of the Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply to the Advisory Council. 
SEC. 205. RESPONSIBILITIES. 
The Comptroller General of the United States shall— 
(1) review the annual reports of the auditor 
submitted to the Comptroller General in accordance 
with section 202(d)(4)(B); and 
(2) transmit to the Congress comments of the 
accuracy and completeness of those reports, and any 
additional comments on the reports that the Comp-
troller General considers appropriate. 
SEC. 206. EXPORT OF HIGH-EFFICIENCY VEHICLE MANU-
FACTURING. 
Any export of materials, equipment, and technology 
developed by the Center in whole or in part with financial 
assistance provided under this title shall be subject to the 
Export Administration Act of 1979 (50 U.S.C. App. 2401 
et seq.), as continued in effect under the International 
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Emergency Economic Powers Act, and shall not be subject 
to the Arms Export Control Act. 
SEC. 207. PROTECTION OF INFORMATION. 
(a) FREEDOM OF INFORMATION ACT.—Section 552 
of title 5, United States Code, shall not apply to informa-
tion obtained by the Federal Government on a confidential 
basis under this title. 
(b) INFORMATION.—Notwithstanding any other pro-
vision of law, intellectual property, trade secrets, and tech-
nical data owned and developed by the Center or any of 
the participants in the Center may not be disclosed by any 
officer or employee of the Department of Energy except 
as provided in the provision included in the memorandum 
of understanding pursuant to section 202(d). 
SEC. 208. AUTHORIZATION ON APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary of Energy for carrying out this title $500,000,000 
for each of the fiscal years 2008 through 2017. 
SEC. 209. 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 
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that are developed and produced in the United States, in-
cluding advanced lithium ion batteries. 
(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 
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 
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(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 
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 
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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 
(a) terminates on the date that is 10 years after the date 
of enactment of this Act. 
SEC. 
210. 
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, 
including vehicles and components derived from 
the activities of the New Manhattan Center for 
High Efficiency Vehicles’’ after ‘‘sales of effi-
cient hybrid and advanced diesel vehicles’’; 
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(B) by inserting ‘‘, plug-in electric hybrid, 
flexible-fuel,’’ after ‘‘production of efficient hy-
brid’’; and 
(C) 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: 
‘‘(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 for car-
rying out this section— 
‘‘(1) $200,000,000 for each of the fiscal years 
2008 through 2012; and 
‘‘(2) such sums as may be necessary for each 
of the fiscal years 2013 through 2016.’’. 
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TITLE 
III—BIOFUELS 
INFRA-
STRUCTURE DEVELOPMENT 
SEC. 301. BIOFUELS INFRASTRUCTURE DEVELOPMENT. 
(a) GRANT PROGRAM.—The Secretary of Energy 
shall establish a program for making grants for providing 
assistance to retail and wholesale motor fuel dealers or 
other entities for the installation, replacement, or conver-
sion of motor fuel storage and dispensing infrastructure 
to be used exclusively to store and dispense biobased fuel 
(as defined in section 303(2) of the Biomass Research and 
Development Act of 2000 (7 U.S.C. 8101 note)), including 
E–85 gasoline, biodiesel, or biodiesel blended fuel. Such 
infrastructure may include equipment used in the blend-
ing, distribution, and transport of such fuels. 
(b) RETAIL TECHNICAL AND MARKETING ASSIST-
ANCE.—The Secretary of Energy shall enter into contracts 
with entities with demonstrated experience in assisting re-
tail fueling stations in installing refueling systems and 
marketing alternative fuels nationally, for the provision of 
technical and marketing assistance to recipients of grants 
under this section. Such assistance shall include— 
(1) technical advice for compliance with applica-
ble Federal and State environmental requirements; 
(2) help in identifying supply sources and se-
curing long-term contracts; and 
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(3) provision of public outreach, education, and 
labeling materials. 
(c) ALLOCATION.—Grants under this section shall be 
made to applicants based upon criteria that will maximize 
the availability and use of the alternative fuel, and that 
will ensure that alternative fuels are available across the 
country, such as population, number of vehicles that can 
operate on E–85, number of diesel powered vehicles, num-
ber of retail fuel outlets, and saturation of vehicles capable 
of operating on the fuels described in subsection (a). The 
Secretary of Energy may also reserve funds appropriated 
for carrying out this section to support biofuels infrastruc-
ture development projects with a cost of greater than 
$1,000,000, that are of national significance. The Sec-
retary shall reserve funds appropriated for the biofuels in-
frastructure development grant program for technical and 
marketing assistance described in subsection (b). Grants 
shall be prioritized based on criteria that include— 
(1) the public demand for each alternative fuel 
in a particular geographic area based on State reg-
istration records showing the number of automobiles 
that can be operated with alternative fuel; and 
(2) the opportunity to create or expand cor-
ridors of alternative fuel stations along interstate or 
State highways. 
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(d) COMBINED APPLICATIONS.—States and local gov-
ernment entities and nonprofit entities may apply for as-
sistance under this section on behalf of a group of retailers 
within a certain geographic area, or to carry out regional 
or multistate deployment projects. Any such application 
shall certify the availability and details of a program to 
match the Federal grant as required under subsection (e) 
and list the retail locations that would receive the funds. 
(e) LIMITATIONS.—Assistance provided under this 
section shall not exceed— 
(1) 33 percent of the estimated cost of the in-
stallation, replacement, or conversion of motor fuel 
storage and dispensing infrastructure; or 
(2) $180,000 for a combination of equipment at 
any one retail outlet. 
(f) OPERATION OF ALTERNATIVE FUEL STATIONS.— 
The Secretary shall establish rules that set forth require-
ments for grant recipients under this section that include 
providing to the public the alternative fuel, establishing 
a marketing plan that informs consumers of the price and 
availability of the alternative fuel, clearly labeling the dis-
pensers and related equipment, and providing periodic re-
ports on the status of the alternative fuel sales, the type 
and amount of the alternative fuel dispensed at each loca-
tion, and the average price of such fuel. 
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(g) NOTIFICATION REQUIREMENTS.—Not later than 
the date on which each alternative fuel station begins to 
offer alternative fuel to the public, the grant recipient that 
used grant funds to construct or upgrade such station 
shall notify the Secretary of Energy of such opening. The 
Secretary of Energy shall add each new alternative fuel 
station to the alternative fuel station locator on its 
Website when it receives notification under this sub-
section. 
(h) INELIGIBILITY.—No person may receive assist-
ance under this section and receive a credit under section 
30C of the Internal Revenue Code of 1986. 
(i) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy for carrying out this section $200,000,000 for each 
of the fiscal years 2008 through 2012, and such sums as 
may be necessary thereafter. 
TITLE IV—GOVERNMENT USE 
AND DIVERSITY OF SUPPLY 
SEC. 401. RENEWABLE FUEL REGULATIONS. 
The Secretary of Energy shall issue regulations under 
section 212 of the Clean Air Act (as added by section 1511 
of the Energy Policy Act of 2005) to provide for cellulosic 
ethanol production loan guarantees and issue a request for 
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proposals under subsection (b) of such section 212 within 
90 days after the enactment of this Act. 
SEC. 402. GRANTS FOR CELLULOSIC ETHANOL PRODUC-
TION. 
Subsection (s) of section 211 of the Clean Air Act 
is redesignated as subsection (t) and subsection (r) of such 
section 211 (as added by section 1512 of the Energy Pol-
icy Act of 2005), relating to conversion assistance for cel-
lulosic biomass, waste-derived ethanol, and approved re-
newable fuels, is redesignated as subsection (s) and 
amended as follows: 
(1) By adding the following new subparagraphs 
at the end of paragraph (3): 
‘‘(D) $500,000,000 for fiscal year 2009. 
‘‘(E) $500,000,000 for fiscal year 2010.’’. 
(2) By adding the following new paragraph at 
the end thereof: 
‘‘(5) GEOGRAPHICAL DISPERSION.—The grants 
under this subsection shall be made to recipients dis-
tributed regionally across the country in such man-
ner that an eligible production facility is constructed 
in each PADD (and each of the subpads in PADD 
1) throughout the country with each such facility 
using, to the extent possible, a different feedstock 
material.’’. 
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SEC. 403. STANDARD SPECIFICATIONS FOR BIODIESEL. 
Section 211 of the Clean Air Act is amended by add-
ing the following new subsection at the end thereof: 
‘‘(u) STANDARD SPECIFICATIONS FOR BIODIESEL.— 
Not later than 180 days after the enactment of this sub-
section, the Administrator shall promulgate regulations es-
tablishing a series of uniform per gallon fuel standards 
for categories of biodiesel fuel and designate an identifica-
tion number for fuel meeting each the standard in each 
such category so that vehicle manufacturers are able to 
design engines to use biodiesel fuel meeting one or more 
of such standards.’’. 
SEC. 404. REQUIREMENT FOR GREATER USE OF ALTER-
NATIVE FUELS IN FEDERAL FLEET. 
Section 400AA(a)(3)(E) of the Energy Policy and 
Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended 
by adding at the end the following new clauses: 
‘‘(iii) The report under clause (ii) also shall include 
an identification of the geographic areas where the alter-
native fuel required to be used in dual fueled vehicles ac-
quired pursuant to this section is not reasonably available, 
as certified under clause (i)(I), and a list of such areas 
where it would be most beneficial, in order of priority, to 
install a pump for dispensing a fuel known as E–85 or 
biodiesel fuel for such vehicles. 
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‘‘(iv) The Secretary may not grant a waiver under 
clause (i) in any fiscal year following a fiscal year in which 
the report under clause (ii) is not filed. In the case of 
an agency that receives a waiver under clause (i) for 2 
successive fiscal years, the agency shall submit to the Sec-
retary and Congress recommendations for solving the 
problems causing the need for the waiver.’’. 
SEC. 405. REQUIREMENT FOR INSPECTOR GENERAL INVES-
TIGATIONS 
RELATING 
TO 
ALTERNATIVE 
FUEL USE AND SUPPLY IN FEDERAL AGEN-
CIES AND REGULATIONS. 
(a) REQUIREMENT.—The Inspector General of each 
department or agency shall conduct a comprehensive in-
vestigation into alternative fuel use and supply within the 
department or agency to identify the reasons why alter-
native fuels are not being used in all dual fueled vehicles 
operated by the department or agency. 
(b) MATTERS COVERED.—At a minimum, the inves-
tigation required under subsection (a) shall cover the fol-
lowing: 
(1) The location of the dual fueled vehicles op-
erated by the department or agency and the location 
of the nearest alternative fuel pumps. 
(2) Whether dual fueled vehicles operated by 
the department or agency would make better use of 
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