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‘‘(2) projects the baseline quantity of the petroleum motor 
fuel reduction of the State or covered person during the fol-
lowing model year. 
‘‘(d) REVOCATION
OF WAIVER.—If a State or covered person 
that receives a waiver under this section fails to comply with 
this section, the Secretary— 
‘‘(1) shall revoke the waiver; and 
‘‘(2) may impose on the State or covered person a penalty 
under section 512.’’. 
(b) CONFORMING AMENDMENT.—Section 511 of the Energy 
Policy Act of 1992 (42 U.S.C. 13261) is amended by striking ‘‘or 
507’’ and inserting ‘‘507, or 514’’. 
(c) TABLE OF CONTENTS AMENDMENT.—The table of contents 
of the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is amended 
by striking the item relating to section 514 and inserting the 
following:
‘‘Sec. 514. Alternative compliance. 
‘‘Sec. 515. Authorization of appropriations.’’.
SEC. 704. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS. 
(a) IN GENERAL.—Not later than 180 days after the date of 
enactment of this section, the Secretary shall complete a study 
to determine the effect that titles III, IV, and V of the Energy 
Policy Act of 1992 (42 U.S.C. 13211 et seq.) have had on— 
(1) the development of alternative fueled vehicle technology; 
(2) the availability of that technology in the market; and 
(3) the cost of alternative fueled vehicles. 
(b) TOPICS.—As part of the study under subsection (a), the 
Secretary shall specifically identify— 
(1) the number of alternative fueled vehicles acquired by 
fleets or covered persons required to acquire alternative fueled 
vehicles; 
(2) the quantity, by type, of alternative fuel actually used 
in alternative fueled vehicles acquired by fleets or covered 
persons; 
(3) the quantity of petroleum displaced by the use of alter-
native fuels in alternative fueled vehicles acquired by fleets 
or covered persons; 
(4) the direct and indirect costs of compliance with require-
ments under titles III, IV, and V of the Energy Policy Act 
of 1992 (42 U.S.C. 13211 et seq.), including— 
(A) vehicle acquisition requirements imposed on fleets 
or covered persons; 
(B) administrative and recordkeeping expenses; 
(C) fuel and fuel infrastructure costs; 
(D) associated training and employee expenses; and 
(E) any other factors or expenses the Secretary deter-
mines to be necessary to compile reliable estimates of the 
overall costs and benefits of complying with programs 
under those titles for fleets, covered persons, and the 
national economy; 
(5) the existence of obstacles preventing compliance with 
vehicle acquisition requirements and increased use of alter-
native fuel in alternative fueled vehicles acquired by fleets 
or covered persons; and 
(6) the projected impact of amendments to the Energy 
Policy Act of 1992 made by this title.
H. R. 6—224
(c) REPORT.—Upon completion of the study under this section, 
the Secretary shall submit to Congress a report that describes 
the results of the study and includes any recommendations of 
the Secretary for legislative or administrative changes concerning 
the alternative fueled vehicle requirements under titles III, IV, 
and V of the Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.). 
SEC. 705. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE 
FUELED VEHICLE PURCHASING REQUIREMENTS. 
Section 310(b)(1) of the Energy Policy Act of 1992 (42 U.S.C. 
13218(b)(1)) is amended by striking ‘‘1 year after the date of enact-
ment of this subsection’’ and inserting ‘‘February 15, 2006’’. 
SEC. 706. JOINT FLEXIBLE FUEL/HYBRID VEHICLE COMMERCIALIZA-
TION INITIATIVE. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means— 
(A) a for-profit corporation; 
(B) a nonprofit corporation; or 
(C) an institution of higher education. 
(2) PROGRAM.—The term ‘‘program’’ means a program 
established under subsection (b). 
(b) ESTABLISHMENT.—The Secretary shall establish a program 
to improve technologies for the commercialization of— 
(1) a combination hybrid/flexible fuel vehicle; or 
(2) a plug-in hybrid/flexible fuel vehicle. 
(c) GRANTS.—In carrying out the program, the Secretary shall 
provide grants that give preference to proposals that— 
(1) achieve the greatest reduction in miles per gallon of 
petroleum fuel consumption; 
(2) achieve not less than 250 miles per gallon of petroleum 
fuel consumption; and 
(3) have the greatest potential of commercialization to the 
general public within 5 years. 
(d) VERIFICATION.—Not later than 90 days after the date of 
enactment of this Act, the Secretary shall publish in the Federal 
Register procedures to verify— 
(1) the hybrid/flexible fuel vehicle technologies to be dem-
onstrated; and 
(2) that grants are administered in accordance with this 
section. 
(e) REPORT.—Not later than 260 days after the date of enact-
ment of this Act, and annually thereafter, the Secretary shall submit 
to Congress a report that— 
(1) identifies the grant recipients; 
(2) describes the technologies to be funded under the pro-
gram; 
(3) assesses the feasibility of the technologies described 
in paragraph (2) in meeting the goals described in subsection 
(c); 
(4) identifies applications submitted for the program that 
were not funded; and 
(5) makes recommendations for Federal legislation to 
achieve commercialization of the technology demonstrated. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section, to remain available 
until expended— 
(1) $3,000,000 for fiscal year 2006;
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(2) $7,000,000 for fiscal year 2007; 
(3) $10,000,000 for fiscal year 2008; and 
(4) $20,000,000 for fiscal year 2009. 
SEC. 707. EMERGENCY EXEMPTION. 
Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) 
is amended in paragraph (9)(E) by inserting before the semicolon 
at the end ‘‘, including vehicles directly used in the emergency 
repair of transmission lines and in the restoration of electricity 
service following power outages, as determined by the Secretary’’. 
Subtitle B—Hybrid Vehicles, Advanced 
Vehicles, and Fuel Cell Buses 
PART 1—HYBRID VEHICLES 
SEC. 711. HYBRID VEHICLES. 
The Secretary shall accelerate efforts directed toward the 
improvement of batteries and other rechargeable energy storage 
systems, power electronics, hybrid systems integration, and other 
technologies for use in hybrid vehicles. 
SEC. 712. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES. 
(a) PROGRAM.—The Secretary shall establish a program to 
encourage domestic production and sales of efficient hybrid and 
advanced diesel vehicles. The program shall include grants to auto-
mobile manufacturers to encourage domestic production of efficient 
hybrid and advanced diesel vehicles. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section 
such sums as may be necessary for each of the fiscal years 2006 
through 2015. 
PART 2—ADVANCED VEHICLES 
SEC. 721. PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary, in consultation with the 
Secretary of Transportation, shall establish a competitive grant 
pilot program (referred to in this part as the ‘‘pilot program’’), 
to be administered through the Clean Cities Program of the Depart-
ment, to provide not more than 30 geographically dispersed project 
grants to State governments, local governments, or metropolitan 
transportation authorities to carry out a project or projects for 
the purposes described in subsection (b). 
(b) GRANT PURPOSES.—A grant under this section may be used 
for the following purposes: 
(1) The acquisition of alternative fueled vehicles or fuel 
cell vehicles, including— 
(A) passenger vehicles (including neighborhood electric 
vehicles); and 
(B) motorized 2-wheel bicycles or other vehicles for 
use by law enforcement personnel or other State or local 
government or metropolitan transportation authority 
employees. 
(2) The acquisition of alternative fueled vehicles, hybrid 
vehicles, or fuel cell vehicles, including—