I 
109TH CONGRESS 
2D SESSION 
H. R. 5959 
To amend the Internal Revenue Code of 1986 to impose an excise tax 
on automobiles sold in the United States that are not alternative fueled 
automobiles, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2006 
Ms. ZOE LOFGREN of California introduced the following bill; which was re-
ferred to the Committee on Ways and Means, and in addition to the 
Committee on Energy and Commerce, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
an excise tax on automobiles sold in the United States 
that are not alternative fueled 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 ‘‘To Encourage Alter-
natively fueled vehicle Manufacturing up for Energy Inde-
pendence Act of 2006’’ or the ‘‘TEAM up for Energy 
Independence Act’’. 
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SEC. 2. FINDINGS. 
The Congress finds that— 
(1) Climate change threatens the security and 
stability of our planet. The temperature of the Earth 
is increasing at a rate unseen in modern times. The 
rate of warming has been nearly 3 times the cen-
tury-long average since 1970. 
(2) Climate forecasters predict that if green-
house gases continue to accumulate in the atmos-
phere at the current rate, temperatures will rise dra-
matically, weather patterns sharply shift, ice sheets 
shrink, and sea levels will rise. 
(3) Climate scientists agree that human activi-
ties are the driving force behind the rise in global 
temperatures. Smokestacks and automobile emis-
sions have been primary contributors of carbon diox-
ide and other heat-trapping gases that significantly 
contribute to the warming trend. 
(4) In addition to the alarming data about cli-
mate change, rising gas prices and instability in oil 
producing regions have reinforced the need for the 
United States to secure our energy independence, 
and make progress by developing and distributing 
alternatively fueled vehicles. 
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(5) Alternative fueled cars can lessen the im-
pact of climate change, and help provide for the sta-
bility and safety of the world. 
(6) Biodiesel helps to provide hope that our 
country can achieve sustainable energy independence 
and combat the effects of global warming. 
(7) Vehicles which utilize E–85 ethanol fuel 
could reduce our usage of petroleum fuels by up to 
40 percent. 
(8) Currently, there are just 6,000,000 E–85 
capable vehicles on United States roads, compared 
to approximately 230,000,000 gasoline and diesel 
fueled vehicles. 
(9) Just 556 fueling stations in the United 
States currently provide E–85 fuel, accounting for 
less than one percent of fueling stations. Only 450 
retail pumps currently provide consumers with bio-
diesel fuel. 
(10) Congress must do more to make alter-
native fueled vehicles practical and accessible to ev-
eryone. 
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SEC. 3. EXCISE TAX ON AUTOMOBILES SOLD IN UNITED 
STATES 
THAT 
ARE 
NOT 
ALTERNATIVE 
FUELED AUTOMOBILES. 
(a) IN GENERAL.—Part I of subchapter A of chapter 
32 of the Internal Revenue Code of 1986 is amended by 
inserting before section 4064 the following new section: 
‘‘SEC. 4061. AUTOMOBILES THAT ARE NOT ALTERNATIVE 
FUELED AUTOMOBILES. 
‘‘(a) TAX IMPOSED.— 
‘‘(1) IN GENERAL.—There is hereby imposed on 
the 1st retail sale of each passenger automobile sold 
by the manufacturer, producer, or importer thereof 
a tax in the amount of the applicable percentage of 
the price for which so sold. 
‘‘(2) EXCEPTION
FOR
ALTERNATIVE
FUELED 
AUTOMOBILES.—Paragraph (1) shall not apply to 
any alternative fueled automobile. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a), the applicable percentage shall be deter-
mined in accordance with the following table: 
‘‘Passenger automobiles sold in calendar year: 
The appli-
cable per-
centage is: 
2007 ..............................................................................................
5 percent. 
2008 ..............................................................................................
10 percent. 
2009 ..............................................................................................
20 percent.
2010 ..............................................................................................
40 percent. 
2011 or thereafter ........................................................................
80 percent. 
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‘‘(c) DEFINITIONS.—For purposes of subsection 
(a)— 
‘‘(1) PASSENGER
AUTOMOBILE.—The term 
‘passenger automobile’ has the meaning given such 
term by section 32901(a)(16) of title 49, United 
States Code, except that such term includes in the 
case of each automobile parts or accessories therefor 
sold on or in connection therewith or with the sale 
thereof. 
‘‘(2) ALTERNATIVE
FUELED
AUTOMOBILE.— 
The term ‘alternative fueled automobile’ means an 
alternative fueled automobile, as defined by section 
32901(a)(2) of title 49, United States Code, that 
uses a fuel that has greenhouse gas emissions less 
than 80 percent of those from petroleum-derived 
transportation fuel, calculated over the full fuel cycle 
(as weighted by global warming potential and using 
the emissions per kilowatt-hour from a natural gas 
combined cycle power plant as the basis for crediting 
any electricity co-produced with the transportation 
fuel). 
‘‘(3) APPLICATION OF SECTION 32901 OF TITLE 
49.—Section 32901(a) of title 49, United States 
Code, shall be applied— 
‘‘(A) in paragraph (3)— 
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‘‘(i) by substituting ‘10,000 pounds’ 
for ‘6,000 pounds’ in subparagraph (A) 
thereof, and 
‘‘(ii) without regard to subparagraph 
(B) thereof, and 
‘‘(B) in paragraph (16)(B) by substituting 
‘10,000 pounds’ for ‘6,000 pounds’.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The heading for part I of subchapter A of 
chapter 32 of such Code is amended to read as fol-
lows: 
‘‘PART I—NON-ALTERNATIVE FUEL VEHICLES 
AND GAS GUZZLERS’’. 
(2) The item in the table of parts for sub-
chapter A of chapter 32 of such Code relating to 
part I is amended to read as follows: 
‘‘PART I. NON-ALTERNATIVE FUEL VEHICLES AND GAS GUZZLERS.’’. 
(3) The table of sections for part I of sub-
chapter A of chapter 32 of such Code is amended to 
read as follows: 
‘‘Sec. 4061. Automobiles that are not alternative fueled automobiles.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to automobiles sold after December 
31, 2006. 
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SEC. 4. USE OF FUNDS FROM TAX. 
(a) REFUELING INFRASTRUCTURE GRANTS.—The 
Secretary of Energy shall obligate such sums as are avail-
able in the trust fund to make grants to fueling stations 
owned by entities which own or control 10 or fewer such 
businesses for alternative fuel refueling infrastructure 
projects, including new dispensing facilities and additional 
equipment or upgrades and improvements to existing re-
fueling sites for alternative fuel vehicles. 
(b) TRUST FUND.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a trust fund. The 
trust fund shall consist of such amounts as are de-
posited into the trust fund under paragraph (2) and 
any interest earned on investment of amounts in the 
trust fund, and may be used only for the purposes 
described in subsection (a). 
(2) SOURCE OF FUNDS.—The Secretary of the 
Treasury shall deposit into the trust fund all 
amounts collected pursuant to the tax imposed 
under section 4061 of the Internal Revenue Code of 
1986, as added by section 2 of this Act. 
(c) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘alternative fuel’’ means an alter-
native fuel, as defined in section 301(2) of the En-
ergy Policy Act of 1992 (42 U.S.C. 13211(2)) that 
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has greenhouse gas emissions less than 80 percent 
of those from petroleum-derived transportation fuel, 
calculated over the full fuel cycle (as weighted by 
global warming potential and using the emissions 
per kilowatt-hour from a natural gas combined cycle 
power plant as the basis for crediting any electricity 
co-produced with the transportation fuel); 
(2) the term ‘‘E–85 fuel’’ means a transpor-
tation fuel consisting of 85 percent ethanol and gas-
oline; and 
(3) the term ‘‘trust fund’’ means the trust fund 
established under subsection (b). 
SEC. 5. INFORMATION DISCLOSURE RELATED TO ALTER-
NATIVE FUELED AUTOMOBILES. 
Section 3 of the Automobile Information Disclosure 
Act (15 U.S.C. 1232) is amended by redesignating sub-
sections (b) through (h) as subsections (c) through (i), re-
spectively, and inserting after subsection (a) the following: 
‘‘(b) whether such automobile is an alternative fueled 
automobile (as defined in section 32901(a)(2) of title 49, 
United States Code) and the type or types of fuel on which 
the automobile is capable of operating;’’. 
Æ 
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