Subchapter B—Dual Fueled Automobiles 
SEC. 351. REQUIREMENT TO MANUFACTURE DUAL FUELED 
AUTOMOBILES. 
(a) REQUIREMENT.— 
(1) IN
GENERAL.—Chapter 329 of title 49, 
United States Code, is amended by inserting after 
section 32902 the following: 
‘‘§ 32902A. Requirement to manufacture dual fueled 
automobiles 
‘‘(a) REQUIREMENT.—Each manufacturer of new 
automobiles that are capable of operating on gasoline or 
diesel fuel shall ensure that the percentage of such auto-
mobiles, manufactured in any model year after model year 
2007 and distributed in commerce for sale in the United 
States, which are dual fueled automobiles is equal to not 
less than the applicable percentage set forth in the fol-
lowing table: 
‘‘For each of the following model 
years: 
The percentage of 
dual fueled auto-
mobiles manufactured 
shall be not less than: 
2008 .....................................................
2009 .....................................................
2010 .....................................................
2011 .....................................................
2012 .....................................................
2013 .....................................................
2014 .....................................................
2015 .....................................................
2016 .....................................................
2017 and beyond .................................
100. 
‘‘(b) PRODUCTION CREDITS FOR EXCEEDING FLEXI-
BLE FUEL AUTOMOBILE PRODUCTION REQUIREMENT.— 
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‘‘(1) EARNING
AND
PERIOD
FOR
APPLYING 
CREDITS.—If the number of dual fueled automobiles 
manufactured by a manufacturer in a particular 
model year exceeds the number required under sub-
section (a), the manufacturer earns credits under 
this section, which may be applied to any of the 3 
consecutive model years immediately after the model 
year for which the credits are earned. 
‘‘(2) TRADING CREDITS.—A manufacturer that 
has earned credits under paragraph (1) may sell 
credits to another manufacturer to enable the pur-
chaser to meet the requirement under subsection 
(a).’’. 
(2) TECHNICAL
AMENDMENT.—The table of 
sections for chapter 329 of title 49, United States 
Code, is amended by inserting after the item relating 
to section 32902 the following: 
‘‘32902A. Requirement to manufacture dual fueled automobiles.’’. 
(b) ACTIVITIES TO PROMOTE THE USE OF CERTAIN 
ALTERNATIVE FUELS.—The Secretary of Transportation 
shall carry out activities to promote the use of fuel mix-
tures containing gasoline or diesel fuel and 1 or more al-
ternative fuels, including a mixture containing at least 85 
percent of methanol, denatured ethanol, and other alcohols 
by volume with gasoline or other fuels, to power auto-
mobiles in the United States. 
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SEC. 
352. 
MANUFACTURING 
INCENTIVES 
FOR 
DUAL 
FUELED AUTOMOBILES. 
Section 32905(b) of title 49, United States Code, is 
amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; 
(2) by inserting ‘‘(1)’’ before ‘‘Except’’; 
(3) by striking ‘‘model years 1993–2010’’ and 
inserting ‘‘model year 1993 through the first model 
year beginning not less than 18 months after the 
date of enactment of the Biofuels Security Act of 
2007’’; and 
(4) by adding at the end the following: 
‘‘(2) Except as provided in paragraph (5), subsection 
(d), or section 32904(a)(2), the Administrator shall meas-
ure the fuel economy for each model of dual fueled auto-
mobiles manufactured by a manufacturer in the first 
model year beginning not less than 30 months after the 
date of enactment of the Biofuels Security Act of 2007 
by dividing 1.0 by the sum of— 
‘‘(A) 0.7 divided by the fuel economy measured 
under section 32904(c) when operating the model on 
gasoline or diesel fuel; and 
‘‘(B) 0.3 divided by the fuel economy measured 
under subsection (a) when operating the model on 
alternative fuel. 
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‘‘(3) Except as provided in paragraph (5), subsection 
(d), or section 32904(a)(2), the Administrator shall meas-
ure the fuel economy for each model of dual fueled auto-
mobiles manufactured by a manufacturer in the first 
model year beginning not less than 42 months after the 
date of enactment of the Biofuels Security Act of 2007 
by dividing 1.0 by the sum of— 
‘‘(A) 0.9 divided by the fuel economy measured 
under section 32904(c) when operating the model on 
gasoline or diesel fuel; and 
‘‘(B) 0.1 divided by the fuel economy measured 
under subsection (a) when operating the model on 
alternative fuel. 
‘‘(4) Except as provided in subsection (d) or section 
32904(a)(2), the Administrator shall measure the fuel 
economy for each model of dual fueled automobiles manu-
factured by a manufacturer in each model year beginning 
not less than 54 months after the date of enactment of 
the Biofuels Security Act of 2007 in accordance with sec-
tion 32904(c). 
‘‘(5) Notwithstanding paragraphs (2) through (4), 
the fuel economy for all dual fueled automobiles manufac-
tured to comply with the requirements under section 
32902A(a), including automobiles for which dual fueled 
automobile credits have been used or traded under section 
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32902A(b), shall be measured in accordance with section 
32904(c).’’. 
CHAPTER 2—EMISSIONS REDUCTIONS 
SEC. 361. EXTENSION OF BIODIESEL TAX CREDITS. 
(a) IN GENERAL.—Sections 40A(g), 6426(c)(6), and 
6427(e)(5)(B) of the Internal Revenue Code of 1986 are 
each amended by striking ‘‘2008’’ and inserting ‘‘2018’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 362. LOW CARBON FUEL STANDARD. 
The Clean Air Act (42 U.S.C. 7401 et seq.) is amend-
ed by adding at the end the following: 
‘‘TITLE VII—GREENHOUSE GAS 
EMISSIONS 
FROM 
VEHICLE 
AND AIRCRAFT FUELS 
‘‘SEC. 701. PURPOSE. 
‘‘The purpose of this title is to provide a reduction 
in the aggregate greenhouse gas emissions per unit of en-
ergy consumed by vehicles and aircraft. 
‘‘SEC. 702. FINDINGS. 
‘‘The Congress finds that: 
‘‘(1) The United States consumes a quarter of 
the world’s oil and the oil used in transportation ac-
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counts for a third of the United States emissions of 
the greenhouse gases that cause global warming. 
‘‘(2) To avoid catastrophic global warming, the 
United States should take decisive action with other 
nations to reduce greenhouse gas emissions by 60 to 
80 percent by 2050. 
‘‘(3) Transitioning our transportation sector to 
more efficient use of oil and low-carbon petroleum 
alternatives is essential to reducing global warming 
pollution. 
‘‘(4) It is necessary and feasible to reduce emis-
sions of greenhouse gases, enhance national security 
by reducing dependence on oil and promote economic 
well-being without sacrificing land, water and air 
quality, by enacting energy policies that motivate en-
vironmental performance. 
‘‘SEC. 703. DEFINITIONS. 
‘‘For purposes of this title: 
‘‘(1) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the Environ-
mental Protection Agency. 
‘‘(2) CARBON DIOXIDE EQUIVALENT.—With re-
spect to each greenhouse gas, the term ‘carbon diox-
ide equivalent’ means the amount of the greenhouse 
gas resulting from that fuel that traps the same 
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amount of heat as one metric ton of carbon dioxide, 
as determined by the Administrator. 
‘‘(3) GREENHOUSE GAS.—The term ‘greenhouse 
gas’ means carbon dioxide, hydrofluorocarbons, 
methane, nitrous oxide, perfluorocarbons, sulfur 
hexafluoride, and any other anthropogenically-emit-
ted gas that is determined by the Administrator, 
after notice and comment, to contribute to global 
warming to a non-negligible degree. 
‘‘(4) LIFECYCLE
GREENHOUSE
GAS
EMIS-
SIONS.—The term ‘lifecycle greenhouse gas emis-
sions’ means greenhouse gases emitted during the 
entire cycle of extraction, cultivation, production, 
manufacturing, feedstock extraction, marketing, and 
distribution for a fuel or other sources of energy, as 
well as those emitted during the use of such fuels 
and sources by vehicles and aircraft. The term in-
cludes changes in land use and land cover associated 
with each phase of such cycle. 
‘‘(5) VEHICLE.—The term ‘vehicle’ means a 
motor vehicle as defined in section 216 and any 
other device used for the transportation of persons 
or goods (other than an aircraft). 
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‘‘SEC. 704. LOW CARBON FUEL PERFORMANCE STANDARDS. 
‘‘(a) VEHICLE FUEL STANDARD.—Not later than 
January 1, 2010, the Administrator shall promulgate low 
carbon fuel performance standards for fuels and other 
sources of energy used to propel vehicles. Such standards 
shall begin to apply in the year 2015. 
‘‘(b) 
GRADUATED
REDUCTIONS
FOR
VEHICLE 
FUEL.—The Administrator shall promulgate, by rule, a 
declining standard for each 5 calendar year period begin-
ning in 2015. Each such standard shall represent a grad-
uated percentage reduction in aggregate emissions of 
greenhouse gases per Btu in each 5-year period after 2014 
through 2050 as provided in the following table. The re-
duction for each such period shall be measured from the 
baseline for vehicle fuel, as determined by the Adminis-
trator under subsection (f). 
‘‘5-year period 
Percent reduction 
2015 through 2019 ................................................
3 percent 
2020 through 2024 ................................................
6 percent 
2025 through 2029 ................................................
9 percent 
2030 through 2034 ................................................
12 percent 
2035through 2039 ..................................................
15 percent 
2040 through 2044 ................................................
18 percent 
2045 through 2049 ................................................
21 percent 
‘‘(c) ADDITIONAL REDUCTIONS.—Each 5 years dur-
ing the period 2015 through 2050 the Administrator shall 
review available control technology, safety considerations, 
and land and other resources available for production of 
fuels and other sources of energy used to propel vehicles. 
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Following such review, the Administrator may, by rule, 
promulgate a more stringent standard than the standard 
otherwise applicable under subsection (b) which more 
stringent standard, based on such review, the Adminis-
trator determines to be requisite to protect the public 
health and welfare from any known or anticipated adverse 
effects associated with greenhouse gas emissions. 
‘‘(d) STANDARD FOR AIRCRAFT FUEL.—Not later 
than January 1, 2010, the Administrator shall promulgate 
a low carbon fuel performance standard for fuels and 
other sources of energy used by aircraft. The performance 
standard for such fuels and other sources of energy for 
aircraft for each year after 2015 shall be the baseline for 
that fuel, as determined by the Administrator under sub-
section (f). Such standard shall begin to apply in the year 
2015 and continue to apply through the calendar year 
2019. The standard shall remain in effect thereafter un-
less, for each 5 year period thereafter, beginning in 2020, 
the Administrator and the Secretary of Transportation de-
termine that a more stringent standard is necessary to 
carry out the purposes of this Act. Such determination 
may be made only after a thorough review of available 
technology and safety considerations. Following such de-
termination, the Administrator shall promulgate a rule es-
tablishing a more stringent standard. 
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‘‘(e) TERMS OF STANDARDS.—Each standard under 
this section shall be expressed in carbon dioxide, or carbon 
dioxide equivalent, emissions per Btu of energy from the 
aggregate of all fuels and other sources of energy used 
by vehicles or by aircraft. 
‘‘(f) BASELINE.— 
‘‘(1) VEHICLE FUEL.—The baseline for vehicle 
fuel for purposes of the standards under this section 
shall be the aggregate greenhouse gas emissions per 
Btu from all such fuel and other sources of energy 
used by vehicles in calendar year 2007, as deter-
mined by the Administrator. 
‘‘(2) AIRCRAFT FUEL.—For fuel used by air-
craft, the baseline for purposes of the standard 
under this section shall be the aggregate greenhouse 
gas emissions per Btu from all such fuel and other 
sources of energy used by aircraft in calendar year 
2007, as determined by the Administrator. 
‘‘SEC. 705. EPA REGULATIONS; CALCULATION OF EMIS-
SIONS PER BTU. 
‘‘(a) REGULATIONS.—After consultation with the 
Secretary of Energy and the Secretary of Commerce, and 
a review of all compliance methods, the Administrator, 
after notice and opportunity for comment, shall promul-
gate, not later than January 1, 2010, and may periodically 
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