To reduce the Nation's dependence on foreign sources of oil by promoting plug-in hybrid electric vehicles and related advanced vehicle technologies.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Plug-In Hybrid Electric Vehicle Act 
of 2006''.

SEC. 2. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.

    (a) Definitions.--In this section:
            (1) Battery.--The term ``battery'' means a device or system 
        for the electrochemical storage of energy.
            (2) Biomass.--The term ``biomass'' has meaning given the 
        term in section 932 of the Energy Policy Act of 2005 (42 U.S.C. 
        16232).
            (3) E85.--The term ``E85'' means a fuel blend containing 85 
        percent ethanol and 15 percent gasoline by volume.
            (4) Electric drive transportation technology.--The term 
        ``electric drive transportation technology'' means--
                    (A) vehicles that use an electric motor for all or 
                part of their motive power and that may or may not use 
                offboard electricity, including battery electric 
                vehicles, fuel cell vehicles, hybrid electric vehicles, 
                plug-in hybrid electric vehicles, flexible fuel plug-in 
                hybrid electric vehicles, and electric rail; and
                    (B) related equipment, including electric equipment 
                necessary to recharge a plug-in hybrid electric 
                vehicle.
            (5) Flexible fuel plug-in hybrid electric vehicle.--The 
        term ``flexible fuel plug-in hybrid electric vehicle'' means a 
        plug-in hybrid electric vehicle--
                    (A) warranted by its manufacturer as capable of 
                operating on any combination of gasoline or E85 for its 
                onboard internal combustion or heat engine; or
                    (B) that uses a fuel cell for battery charging when 
                disconnected from offboard power sources.
            (6) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
        means an onroad vehicle that uses a fuel cell (as defined in 
        section 803 of the Energy Policy Act of 2005 (42 U.S.C. 
        16152)).
            (7) Hybrid electric vehicle.--The term ``hybrid electric 
        vehicle'' means an onroad vehicle that--
                    (A) can operate on either liquid combustible fuel 
                or electric power provided by an onboard battery; and
                    (B) utilizes regenerative power capture technology 
                to recover energy expended in braking the vehicle for 
                use in recharging the battery.
            (8) Plug-in hybrid electric vehicle.--The term ``plug-in 
        hybrid electric vehicle'' means a hybrid electric vehicle that 
        can operate solely on electric power for a minimum of 20 miles 
        under city driving conditions, and that is capable of 
        recharging its battery from an offboard electricity source.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application on technologies 
needed for the development of plug-in hybrid electric vehicles, 
including--
            (1) high capacity, high efficiency batteries, to--
                    (A) improve battery life, energy storage capacity, 
                and power delivery capacity, and lower cost; and
                    (B) minimize waste and hazardous material 
                production in the entire value chain, including after 
                the end of the useful life of the batteries;
            (2) high efficiency onboard and offboard charging 
        components;
            (3) high power drive train systems for passenger and 
        commercial vehicles and for supporting equipment;
            (4) onboard energy management systems, power trains, and 
        systems integration for plug-in hybrid electric vehicles, 
        flexible fuel plug-in hybrid electric vehicles, and hybrid 
        electric vehicles, including efficient cooling systems and 
        systems that minimize the emissions profile of such vehicles; 
        and
            (5) lightweight materials, including research, development, 
        demonstration, and commercial application to reduce the cost of 
        materials such as steel alloys and carbon fibers.
    (c) Plug-in Hybrid Electric Vehicle Demonstration Program.--
            (1) Establishment.--The Secretary shall establish a 
        competitive grant pilot demonstration program to provide not 
        more than 25 grants annually to State governments, local 
        governments, metropolitan transportation authorities, or 
        combinations thereof to carry out a project or projects for 
        demonstration 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, including 
                                the battery, energy management, and 
                                charging systems, under various driving 
                                speeds, trip ranges, traffic, and other 
                                driving conditions;
                                    (II) costs of the vehicle or 
                                vehicles, including acquisition, 
                                operating, and maintenance costs, and 
                                how the project or projects will be 
                                self-sustaining after Federal 
                                assistance is completed; and
                                    (III) emissions of the vehicle or 
                                vehicles, including greenhouse gases, 
                                and the amount of petroleum displaced 
                                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 subparagraph (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 consider each 
                applicant's previous experience involving plug-in 
                hybrid electric vehicles and shall give preference to 
                proposals that--
                            (i) provide the greatest demonstration per 
                        award dollar, with preference increasing 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 commitment 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 Federal assistance under this 
                        subsection is completed.
                    (B) Breadth of demonstrations.--In awarding grants 
                under this subsection, the Secretary shall ensure the 
                program will demonstrate plug-in hybrid electric 
                vehicles under various circumstances, including--
                            (i) driving speeds;
                            (ii) trip ranges;
                            (iii) driving conditions;
                            (iv) climate conditions; and
                            (v) topography,
                to optimize understanding and function of plug-in 
                hybrid electric vehicles.
            (5) 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 2007 through fiscal year 
                2011.
                    (B) Information.--The Secretary shall establish 
                mechanisms to ensure that the information 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.
            (6) Award amounts.--The Secretary shall determine 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 converting 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 988(a) through (d) and section 
989 of the Energy Policy Act of 2005 (42 U.S.C. 16352(a) through (d) 
and 16353).
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary--
            (1) for carrying out subsection (b), $250,000,000 for each 
        of fiscal years 2007 through 2011, of which up to $50,000,000 
        may be used for the program described in paragraph (5) of that 
        subsection; and
            (2) for carrying out subsection (c), $50,000,000 for each 
        of fiscal years 2007 through 2011.

Summary: Plug-In Hybrid Electric Vehicle Act of 2006 - Directs the Secretary of Energy to: (1) conduct a program of research, development, demonstration, and commercial application of technologies needed for the development of plug-in hybrid electric vehicles; and (2) establish a competitive grant pilot demonstration program to provide up to 25 grants annually to state and local governments and metropolitan transportation authorities, or combinations of them, to implement demonstration projects for plug-in hybrid electric vehicles.