I 
110TH CONGRESS 
1ST SESSION H. R. 1506 
To increase fuel economy standards for automobiles, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 13, 2007 
Mr. MARKEY (for himself, Mr. PLATTS, Mr. GEORGE MILLER of California, 
Mr. KIRK, Mr. RANGEL, Mrs. BONO, Mr. FRANK of Massachusetts, Mr. 
WOLF, Mr. LANTOS, Mr. YOUNG of Florida, Mr. LEWIS of Georgia, Mr. 
KING of New York, Ms. ESHOO, Mr. TOM DAVIS of Virginia, Mr. 
SESTAK, Mr. GILCHREST, Ms. SOLIS, Mr. CASTLE, Ms. DEGETTE, Mr. 
GERLACH, Mr. OLVER, Mr. SHAYS, Mr. WYNN, Mr. RAMSTAD, Mrs. 
CAPPS, Mr. LOBIONDO, Mr. WEINER, Mr. REICHERT, Ms. HOOLEY, Mr. 
SAXTON, Mr. INSLEE, Mr. SMITH of New Jersey, Mr. BUTTERFIELD, Mr. 
LATOURETTE, Mr. HODES, Mr. BARTLETT of Maryland, Ms. SHEA-POR-
TER, Mr. KUHL of New York, Mr. PETRI, Mr. GRIJALVA, Mr. VAN 
HOLLEN, and Mr. PALLONE) introduced the following bill; which was re-
ferred to the Committee on Energy and Commerce 
A BILL 
To increase fuel economy standards for automobiles, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fuel Economy Reform 
Act’’. 
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SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) United States dependence on oil imports im-
poses tremendous burdens on America’s economy, 
foreign policy, and military. 
(2) According to the Energy Information Ad-
ministration, 60 percent of the crude oil and petro-
leum products consumed in the United States be-
tween April 2005 and March 2006 (12,400,000 bar-
rels per day) was imported. At a cost of $60 per 
barrel of oil, Americans remit an average of 
$500,000 per minute to other countries for petro-
leum, money that could have been spent creating do-
mestic jobs and strengthening our Nation’s economy. 
(3) A significant percentage of these petroleum 
imports originate in countries controlled by regimes 
that are unstable or openly hostile to the interests 
of the United States. Dependence on production 
from these countries contributes to the volatility of 
domestic and global markets and the ‘‘risk pre-
mium’’ paid by American consumers. 
(4) The Energy Information Administration 
projects that the total petroleum demand in the 
United States will increase by 23 percent between 
2006 and 2026, while domestic crude production is 
expected to decrease by 11 percent, resulting in an 
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anticipated 28 percent increase in petroleum im-
ports. Absent significant action, our Nation will be-
come more vulnerable to oil price increases, more de-
pendent upon foreign oil, and less able to pursue our 
national interests. 
(5) It is technically feasible to achieve oil sav-
ings of more than 2,500,000 barrels of oil per day 
by 2017 and 7,000,000 barrels of oil per day by 
2026. This goal can be achieved by improving the 
gasoline efficiency of vehicles, replacing oil with cel-
lulosic biofuels, and encouraging the use of public 
transit and other alternative transportation options. 
(6) Two-thirds of all domestic oil use occurs in 
the transportation sector, which is 97 percent reliant 
upon petroleum-based fuels. Passenger vehicles, in-
cluding light trucks under 10,000 pounds gross vehi-
cle weight, represent over 60 percent of the oil used 
in the transportation sector. 
(7) Corporate average fuel economy of all cars 
and trucks improved by 70 percent between 1975 
and 1987. Between 1987 and 2006, fuel economy 
improvements have stagnated and are much worse 
than the vehicle fuel economy in many developed 
countries and some developing countries, including 
China. 
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(8) Significant improvements in engine tech-
nology occurred between 1986 and 2006. These ad-
vances have been used to make vehicles larger and 
more powerful, rather than to increase fuel economy. 
Between 1985 and 2005, average vehicle horsepower 
nearly doubled, average vehicle weight increased by 
25 percent, and acceleration times for new vehicles 
improved by 25 percent. During the same time pe-
riod, average vehicle fuel economy decreased by 2 
percent. 
(9) According to a 2002 fuel economy report by 
the National Academies of Science, improvements in 
automotive technology offer the opportunity to sig-
nificantly increase fuel economy while maintaining 
vehicle size and performance and improving safety. 
The fleet analyzed by the Academies would be able 
to improve its fuel economy by 10–15 miles per gal-
lon within 10–15 years using technologies that were 
commercially available in 2002. 
(10) The 2002 fuel economy study clearly 
states that fuel economy can be increased without 
negatively impacting the safety of America’s cars 
and trucks. Some new technologies can increase both 
safety and fuel economy (such as high strength ma-
terials, unibody design, lower bumpers). Design 
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changes related to fuel economy also present oppor-
tunities to reduce the incompatibility of tall, stiff, 
heavy vehicles with the majority of vehicles on the 
road. 
(11) A 2004 report by David Greene of Oak 
Ridge National Labs entitled, ‘‘The Effect of Fuel 
Economy on Automobile Safety: A Reexamination’’, 
demonstrates that fuel economy is not linked with 
increased fatalities. The report notes that, ‘‘higher 
mpg is significantly correlated with fewer fatalities’’. 
In other words, a thorough analysis of data from 
1966 to 2002 indicates that vehicle manufacturers 
can simultaneously increase fuel economy and im-
prove vehicle safety. 
(12) A 2002 study entitled, ‘‘An Analysis of 
Traffic Deaths by Vehicle Type and Model’’, by 
Marc Ross and Tom Wenzel from the University of 
Michigan, demonstrates that large vehicles do not 
have lower fatality rates than smaller vehicles. Ross 
and Wenzel analyzed Federal accident data between 
1995 and 1999 and showed that the Honda Civic 
and Volkswagen Jetta both had lower fatality rates 
for the driver than the Ford Explorer, the Dodge 
Ram, or the Toyota 4Runner. Even the largest vehi-
cles, such as the Chevrolet Tahoe and Suburban, 
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had fatality rates that were no better than the Jetta 
or the Nissan Maxima. In other words, a well-de-
signed compact car can be safer than a sport-utility 
vehicle or a pickup truck. Design, rather than 
weight, is the key to vehicle safety. 
(13) Significant change must occur to strength-
en the economic competitiveness of the domestic 
auto industry. According to a recent study by the 
University of Michigan, a sustained gasoline price of 
$2.86 per gallon would lead Detroit’s Big 3 auto-
makers’ profits to shrink by $7,000,000,000 as they 
absorb 75 percent of the lost vehicle sales. This 
would put nearly 300,000 Americans out of work. 
SEC. 3. DEFINITION OF AUTOMOBILE. 
(a) IN GENERAL.—Section 32901(a)(3) of title 49, 
United States Code, is amended by striking ‘‘rated 
at—’’ and all that follows through the period at the end 
and inserting ‘‘rated at not more than 10,000 pounds 
gross vehicle weight.’’. 
(b) 
FUEL
ECONOMY
INFORMATION.—Section 
32908(a) of title 49, United States Code, is amended, by 
striking ‘‘section—’’ and all that follows through ‘‘(2)’’ 
and inserting ‘‘section, the term’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to model year 2009 and each sub-
sequent model year. 
SEC. 4. AVERAGE FUEL ECONOMY STANDARDS. 
(a) STANDARDS.—Section 32902 of title 49, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) in the header, by inserting ‘‘MANUFAC-
TURED BEFORE MODEL YEAR 2012’’ after 
‘‘NON-PASSENGER AUTOMOBILES’’; and 
(B) by adding at the end the following: 
‘‘This subsection shall not apply to automobiles 
manufactured after model year 2011.’’; 
(2) in subsection (b)— 
(A) in the header, by inserting ‘‘MANUFAC-
TURED BEFORE MODEL YEAR 2012’’ after 
‘‘PASSENGER AUTOMOBILES’’; 
(B) by inserting ‘‘and before model year 
2009’’ after ‘‘1984’’; and 
(C) by adding at the end the following: 
‘‘Such standard shall be increased by 4 percent 
per year for model years 2009 through 2011 
(rounded to the nearest 1/10 mile per gallon)’’; 
(3) by amending subsection (c) to read as fol-
lows: 
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‘‘(c) AUTOMOBILES MANUFACTURED AFTER MODEL 
YEAR 2011.—(1) Not later than 18 months before the be-
ginning of each model year after model year 2011, the 
Secretary of Transportation shall prescribe, by regula-
tion— 
‘‘(A) an average fuel economy standard for 
automobiles manufactured by a manufacturer in 
that model year that is the same for each manufac-
turer; or 
‘‘(B) based on 1 or more vehicle attributes that 
relate to fuel economy— 
‘‘(i) separate standards for different class-
es of automobiles; or 
‘‘(ii) standards expressed in the form of a 
mathematical function. 
Any standards prescribed under subparagraph (B) 
shall apply equally to all manufacturers. 
‘‘(2)(A) Except as provided under paragraph (3) and 
subsection (d), standards under paragraph (1) shall at-
tain— 
‘‘(i) a projected level of average fuel economy of 
at least 27.5 miles per gallon for automobiles manu-
factured by a manufacturer for model year 2012; 
and 
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‘‘(ii) a projected level of average fuel economy 
of at least 35 miles per gallon for automobiles man-
ufactured by a manufacturer for model year 2018. 
‘‘(B)(i) The projected level of average fuel economy 
for automobiles manufactured by a manufacturer for 
model year 2013 and each succeeding model year shall be 
increased by not less than 4 percent from the level for 
the prior model year (rounded to the nearest 1/10 mile 
per gallon). 
‘‘(ii)(I) Notwithstanding clause (i), the Secretary of 
Transportation may increase the projected level of average 
fuel economy for automobiles manufactured by a manufac-
turer by less than 4 percent from the level for the prior 
model year for 1 or more model years if the Secretary of 
Transportation, in consultation with the Secretary of En-
ergy, determines that— 
‘‘(aa) the minimum increase required under 
clause (i) for each model year— 
‘‘(AA) is technologically unachievable; or 
‘‘(BB) is shown, by clear and convincing 
evidence, not to be cost effective (as determined 
under paragraph (4)); and 
‘‘(bb) an increase of less than the minimum in-
crease required under clause (i) for a model year will 
not result in a failure to attain the projected levels 
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of average fuel economy required under subpara-
graph (A). 
‘‘(II) If a lower increase is prescribed for a model 
year under subclause (I), such increase shall be the max-
imum increase that— 
‘‘(aa) is technologically achievable; and 
‘‘(bb) is cost effective. 
‘‘(C) Notwithstanding subparagraphs (A) and (B), 
the fleetwide average fuel economy standard for auto-
mobiles manufactured by a manufacturer in a model year 
for that manufacturer’s domestic fleet and for its foreign 
fleet as calculated under section 32904 as in effect before 
the date of enactment of the Fuel Economy Reform Act 
shall not be less than 92 percent of the average fuel econ-
omy projected by the Secretary for the combined domestic 
and foreign fleets manufactured by that manufacturer in 
that model year. 
‘‘(3)(A) In determining cost effectiveness under para-
graph (2)(B)(ii), the Secretary of Transportation shall 
take into account the total value to the Nation of reduced 
petroleum use, including the value of reducing external 
costs of petroleum use, using— 
‘‘(i) a value for such external costs equal to 50 
percent of the value of a gallon of gasoline saved; or 
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‘‘(ii) the amount determined in an analysis of 
the external costs of petroleum use that considers— 
‘‘(I) value to consumers; 
‘‘(II) economic security; 
‘‘(III) national security; 
‘‘(IV) foreign policy; 
‘‘(V) the impact of oil use— 
‘‘(aa) on sustained cartel rents paid to 
foreign suppliers; 
‘‘(bb) on long-run potential gross do-
mestic product due to higher normal-mar-
ket oil price levels, including inflationary 
impacts; 
‘‘(cc) on import costs, wealth trans-
fers, and potential gross domestic product 
due to increased trade imbalances; 
‘‘(dd) on import costs and wealth 
transfers during oil shocks; 
‘‘(ee) on macroeconomic dislocation 
and adjustment costs during oil shocks; 
‘‘(ff) on the cost of existing energy se-
curity policies, including the management 
of the Strategic Petroleum Reserve; 
‘‘(gg) on the timing and severity of 
the oil peaking problem; 
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‘‘(hh) on the risk, probability, size, 
and duration of oil supply disruptions; 
‘‘(ii) on OPEC strategic behavior and 
long-run oil pricing; 
‘‘(jj) on the short term elasticity of 
energy demand and the magnitude of price 
increases resulting from a supply shock; 
‘‘(kk) on oil imports, military costs, 
and related security costs, including intel-
ligence, homeland security, sea lane secu-
rity and infrastructure, and other military 
activities; 
‘‘(ll) on oil imports, diplomatic and 
foreign policy flexibility, and connections to 
geopolitical strife, terrorism, and inter-
national development activities; 
‘‘(mm) all relevant environmental haz-
ards under the jurisdiction of the Environ-
mental Protection Agency; and 
‘‘(nn) on well-to-wheels urban and 
local air emissions of ‘pollutants’ and their 
uninternalized costs; 
‘‘(VI) the impact of the oil or energy inten-
sity of the United States economy on the sensi-
tivity of the economy to oil price changes, in-
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cluding the magnitude of gross domestic prod-
uct losses in response to short term price 
shocks or long term price increases; 
‘‘(VII) the impact of United States pay-
ments for oil imports on political, economic, and 
military developments in unstable or unfriendly 
oil exporting countries; 
‘‘(VIII) the uninternalized costs of pipeline 
and storage oil seepage, and for risk of oil spills 
from production, handling, and transport, and 
related landscape damage; and 
‘‘(IX) additional relevant factors, as deter-
mined by the Secretary. 
‘‘(B) When considering the value to consumers of a 
gallon of gasoline saved, the Secretary of Transportation 
may not use a value less than the greatest of— 
‘‘(i) the average national cost of a gallon of gas-
oline sold in the United States during the 12-month 
period ending on the date on which the new fuel 
economy standard is proposed; 
‘‘(ii) the most recent weekly estimate by the 
Energy Information Administration of the Depart-
ment of Energy of the average national cost of a 
gallon of gasoline (all grades) sold in the United 
States; or 
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‘‘(iii) the gasoline prices projected by the En-
ergy Information Administration for the 20-year pe-
riod beginning in the year following the year in 
which the standards are established. 
‘‘(4) In prescribing standards under this subsection, 
the Secretary may prescribe standards for 1 or more 
model years. 
‘‘(5)(A) Not later than December 31, 2009, the Sec-
retary of Transportation, the Secretary of Energy, and the 
Administrator of the Environmental Protection Agency 
shall submit a joint report to Congress on the state of 
global automotive efficiency technology development, and 
on the accuracy of tests used to measure fuel economy 
of automobiles under section 32904(c), utilizing the study 
and assessment of the National Academy of Sciences re-
ferred to in subparagraph (B). 
‘‘(B) The Secretary shall enter into appropriate ar-
rangements with the National Academy of Sciences to con-
duct a comprehensive study of the technological opportuni-
ties to enhance fuel economy and an analysis and assess-
ment of the accuracy of fuel economy tests used by the 
Administrator of the Environmental Protection Agency to 
measure fuel economy for each model under section 
32904(c). Such analysis and assessment shall identify any 
additional factors or methods that should be included in 
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tests to measure fuel economy for each model to more ac-
curately reflect actual fuel economy of automobiles. The 
Secretary and the Administrator of the Environmental 
Protection Agency shall furnish, at the request of the 
Academy, any information which the Academy determines 
to be necessary to conduct the study, analysis, and assess-
ment under this subparagraph. 
‘‘(C) The report submitted under subparagraph (A) 
shall include— 
‘‘(i) the study of the National Academy of 
Sciences referred to in subparagraph (B); and 
‘‘(ii) an assessment by the Secretary of techno-
logical opportunities to enhance fuel economy and 
opportunities to increase overall fleet safety. 
‘‘(D) The report submitted under subparagraph (A) 
shall identify and examine additional opportunities to re-
form the regulatory structure under this chapter, includ-
ing approaches that seek to merge vehicle and fuel require-
ments into a single system that achieves equal or greater 
reduction in petroleum use and environmental benefits. 
‘‘(E) The report submitted under subparagraph (A) 
shall— 
‘‘(i) include conclusions reached by the Admin-
istrator of the Environmental Protection Agency, as 
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a result of detailed analysis and public comment, on 
the accuracy of current fuel economy tests; 
‘‘(ii) identify any additional factors that the Ad-
ministrator determines should be included in tests to 
measure fuel economy for each model to more accu-
rately reflect actual fuel economy of automobiles; 
and 
‘‘(iii) include a description of options, formu-
lated by the Secretary and the Administrator, to in-
corporate such additional factors in fuel economy 
tests in a manner that will not effectively increase 
or decrease average fuel economy for any automobile 
manufacturer. 
‘‘(F) There is authorized to be appropriated to the 
Secretary such amounts as are required to carry out the 
study, analysis, and assessment required by subparagraph 
(B).’’; and 
(4) in subsection (g)(2), by striking ‘‘(and sub-
mit the amendment to Congress when required 
under subsection (c)(2) of this section)’’. 
(b) CONFORMING AMENDMENTS.— 
(1) IN
GENERAL.—Chapter 329 of title 49, 
United States Code, is amended— 
(A) in section 32903— 
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(i) by striking ‘‘passenger’’ each place 
it appears; 
(ii) by striking ‘‘section 32902(b)–(d) 
of this title’’ each place it appears and in-
serting ‘‘subsection (c) or (d) of section 
32902’’; 
(iii) by striking subsection (e); and 
(iv) by redesignating subsection (f) as 
subsection (e); and 
(B) in section 32904(a)— 
(i) by striking ‘‘passenger’’ each place 
it appears; and 
(ii) in paragraph (1), by striking 
‘‘subject to’’ and all that follows through 
‘‘section 32902(b)–(d) of this title’’ and in-
serting ‘‘subsection (c) or (d) of section 
32902’’. 
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) shall apply to automobiles manu-
factured after model year 2011. 
SEC. 5. AUTOMOBILE SAFETY. 
Nothing in this Act shall be construed to limit, con-
strain, supercede, or expand the authority of the Secretary 
of Transportation to prescribe motor vehicle safety stand-
ards to reduce traffic accidents and deaths and injuries 
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resulting from traffic accidents conferred by chapter 301 
of title 49, United States Code. 
Æ 
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