A bill to amend title 49, United States Code, to set minimum fuel economy requirements for federal vehicles, to authorize grants to States to purchase fuel efficient vehicles, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fuel-Efficient Fleets Act of 2006''.

SEC. 2. FUEL ECONOMY OF THE FEDERAL FLEET.

    Section 32917 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(c) New Vehicles.--
            ``(1) In general.--Except as provided in paragraph (2), or 
        by a waiver granted by the Adminstrator of the General Services 
        Administration, each passenger automobile purchased, or leased 
        for at least 60 consecutive days, by an executive agency after 
        the date of enactment of the Fuel-Efficient Fleets Act of 2006 
        shall achieve a minimum fuel economy as follows:
                    ``(A) For vans (except minivans), not less than 15 
                miles per gallon.
                    ``(B) For minivans, not less than 20 miles per 
                gallon.
                    ``(C) For pickup trucks, not less than 24 miles per 
                gallon.
                    ``(D) For sport utility vehicles, not less than 36 
                miles per gallon.
                    ``(E) For passenger automobiles not described in 
                subparagraphs (A) through (D), not less than 45 miles 
                per gallon.
            ``(2) Phase-in period.--Of the automobiles described in 
        paragraph (1), not fewer than--
                    ``(A) 25 percent of such automobiles purchased by 
                an executive agency during the 1-year period beginning 
                on the date of the enactment of the Fuel-Efficient 
                Fleets Act of 2006 shall achieve the minimum fuel 
                economy described in paragraph (1)(D);
                    ``(B) 50 percent of such automobiles purchased by 
                an executive agency during the 1-year period beginning 
                1 year after the date of the enactment of the Fuel-
                Efficient Fleets Act of 2006 shall achieve the minimum 
                fuel economy described in paragraph (1)(D); and
                    ``(C) 75 percent of such automobiles purchased by 
                an executive agency during the 1-year period beginning 
                2 years after the date of the enactment of the Fuel-
                Efficient Fleets Act of 2006 shall achieve the minimum 
                fuel economy described in paragraph (1)(D); and
                    ``(D) 100 percent of such automobiles purchased by 
                an executive agency during the 1-year period beginning 
                3 years after the date of the enactment of the Fuel-
                Efficient Fleets Act of 2006 shall achieve the minimum 
                fuel economy described in paragraph (1)(D).''.

SEC. 3. FUEL ECONOMY STANDARD EVALUATION.

    (a) Study.--The Secretary of Energy, in consultation with the 
Secretary of Transportation, shall annually evaluate the fuel economy 
standards under section 32917(c)(1) of title 49, United States Code, 
based on relevant technological advances during the previous year.
    (b) Increased Standards.--If the Secretary of Energy determines 
that significant technological improvements make it feasible to achieve 
higher fuel economy, the Secretary shall increase the fuel economy 
standards under section 32917(c)(1) of title 49, United States Code 
consistent with such determination.

SEC. 4. GRANTS TO STATES.

    (a) Grants Authorized.--The Secretary of Transportation may award 
grants to assist States to purchase vans, trucks, sport utility 
vehicles, minivans, or passenger automobiles that meet the fuel economy 
requirements for new federal fleet vehicles described in section 
32917(c) of title 49, United States Code, as added by section 2.
    (b) Eligibility.--Grants shall be made available to States that 
comply with the minimum fuel economy standards described in section 
32917(c) of title 49, United States Code.
    (c) Duration.--The Secretary shall award grants to eligible States 
under this section for periods not to exceed 1 year.
    (d) Use of Funds.--Grants awarded under this section shall be used 
to purchase vehicles that meet the fuel economy requirements described 
in subsection (b).
    (e) Application.--The appropriate official of a State seeking a 
grant under this section shall submit an application to the Secretary 
of Transportation, at such time and in such manner as the Secretary may 
require, containing a vehicle purchase plan in accordance with 
subsection (b).
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated $100,000,000 for fiscal year 2007, which shall remain 
available for the 5-year period beginning on the date of the enactment 
of this Act, for grants to eligible States under this section.

SEC. 5. BUY AMERICAN PREFERENCE.

    An executive agency (as defined in section 32917(a) of title 49, 
United States Code) that purchases or leases (for at least 60 
consecutive days) passenger automobiles (as defined in section 32901 of 
title 49, United States Code) shall, when determining which models to 
purchase, give a preference to automobiles that are assembled in the 
United States from components, of which not less than 50 percent were 
manufactured in the United States.

Summary: Fuel-Efficient Fleets Act of 2006 - Amends federal transportation law to set forth certain phased-in minimum fuel economy standards for new federal fleet vehicles.

Authorizes the award of grants to assist states in purchasing vans, trucks, sport utility vehicles, minivans, or passenger automobiles that meet the new federal fleet vehicle fuel economy standards.

Subjects federal agencies to Buy American requirements requiring not less than 50% of newly purchased or leased federal fleet vehicles to be U.S. manufactured.