cation to reduce the cost of materials such as steel 
alloys and carbon fibers. 
(c) PLUG-IN HYBRID ELECTRIC VEHICLE DEM-
ONSTRATION PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a competitive grant pilot demonstration pro-
gram to provide not more than 25 grants annually 
to State governments, local governments, metropoli-
tan transportation authorities, or combinations 
thereof to carry out a project or projects for dem-
onstration of plug-in hybrid electric vehicles. 
(2) APPLICATIONS.— 
(A) REQUIREMENTS.—The Secretary shall 
issue requirements for applying for grants 
under the demonstration pilot program. The 
Secretary shall require that applications, at a 
minimum, include a description of how data will 
be— 
(i) collected on the— 
(I) performance of the vehicle or 
vehicles and the components, includ-
ing the battery, energy management, 
and charging systems, under various 
driving speeds, trip ranges, traffic, 
and other driving conditions; 
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(II) costs of the vehicle or vehi-
cles, including acquisition, operating, 
and maintenance costs, and how the 
project or projects will be self-sus-
taining after Federal assistance is 
completed; and 
(III) emissions of the vehicle or 
vehicles, including greenhouse gases, 
and the amount of petroleum dis-
placed as a result of the project or 
projects; and 
(ii) summarized for dissemination to 
the Department, other grantees, and the 
public. 
(B) PARTNERS.—An applicant under sub-
paragraph (A) may carry out a project or 
projects under the pilot program in partnership 
with one or more private entities. 
(3) SELECTION CRITERIA.— 
(A) PREFERENCE.—When making awards 
under this subsection, the Secretary shall con-
sider each applicant’s previous experience in-
volving plug-in hybrid electric vehicles and shall 
give preference to proposals that— 
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(i) provide the greatest demonstration 
per award dollar, with preference increas-
ing as the number of miles that a plug-in 
hybrid electric vehicle can operate solely on 
electric power under city driving conditions 
increases; and 
(ii) demonstrate the greatest commit-
ment on the part of the applicant to ensure 
funding for the proposed project or 
projects and the greatest likelihood that 
each project proposed in the application 
will be maintained or expanded after Fed-
eral assistance under this subsection is 
completed. 
(B) BREADTH OF DEMONSTRATIONS.—In 
awarding grants under this subsection, the Sec-
retary shall ensure the program will dem-
onstrate plug-in hybrid electric vehicles under 
various circumstances, including— 
(i) driving speeds; 
(ii) trip ranges; 
(iii) driving conditions; 
(iv) climate conditions; and 
(v) topography, 
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to optimize understanding and function of plug- 
in hybrid electric vehicles. 
(4) PILOT PROJECT REQUIREMENTS.— 
(A) SUBSEQUENT FUNDING.—An applicant 
that has received a grant in one year may apply 
for additional funds in subsequent years, but 
the Secretary shall not provide more than 
$10,000,000 in Federal assistance under the 
pilot program to any applicant for the period 
encompassing fiscal years 2008 through fiscal 
year 2012. 
(B) INFORMATION.—The Secretary shall 
establish mechanisms to ensure that the infor-
mation and knowledge gained by participants in 
the pilot program are shared among the pilot 
program participants and are available to other 
interested parties, including other applicants. 
(5) AWARD AMOUNTS.—The Secretary shall de-
termine grant amounts, but the maximum size of 
grants shall decline as the cost of producing plug-in 
hybrid electric vehicles declines or the cost of con-
verting a hybrid electric vehicle to a plug-in hybrid 
electric vehicle declines. 
(d) COST SHARING.—The Secretary shall carry out 
the program under this section in compliance with section 
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