Title: Fuel Economy Harmonization Act
Policy area: Transportation and Public Works

Summary:
Fuel Economy Harmonization Act
This bill revises requirements for calculating Corporate Average Fuel Economy (CAFE) credits earned by a passenger automobile manufacturer for exceeding minimal required CAFE standards in a particular model year. Beginning in model year 2016 through model year 2021, a manufacturer may apply any credits earned after model year 2009 to subsequent model years.
The bill revises fuel economy credit transferring program requirements allowing a manufacturer of a fleet that exceeds CAFE standards to transfer the earned credits and to apply them within that fleet to a compliance category of automobiles that fails to achieve prescribed CAFE standards. The maximum increases in any compliance category attributable to transferred credits are:
The bill requires the Environmental Protection Agency to modify its calculation of average fuel economy for model years 2012 through 2025 at the request of a manufacturer for its passenger and nonpassenger automobiles.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1273 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1273

   To amend chapter 329 of title 49, United States Code, relating to 
            average fuel economy standards for automobiles.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 25, 2017

 Mr. Blunt (for himself, Ms. Stabenow, Mrs. McCaskill, Mr. Moran, Mr. 
 Peters, and Mr. Young) introduced the following bill; which was read 
     twice and referred to the Committee on Commerce, Science, and 
                             Transportation

_______________________________________________________________________

                                 A BILL


 
   To amend chapter 329 of title 49, United States Code, relating to 
            average fuel economy standards for automobiles.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fuel Economy Harmonization Act''.

SEC. 2. CREDITS FOR EXCEEDING AVERAGE FUEL ECONOMY STANDARDS.

    Section 32903 of title 49, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively;
                    (B) in the matter preceding subparagraph (A), as 
                redesignated, by striking ``When'' and inserting the 
                following:
            ``(1) In general.--When'';
                    (C) in paragraph (1)(B), as redesignated, by 
                striking ``paragraph (1)'' and inserting ``subparagraph 
                (A),''; and
                    (D) by adding at the end the following:
            ``(2) Model years 2016 through 2021.--Notwithstanding 
        paragraph (1)(B), beginning with model year 2016 and ending 
        with model year 2021, a manufacturer may apply any credits 
        earned after model year 2009 pursuant to paragraph (1), which 
        have not been applied pursuant to paragraph (1)(A), to any 
        model year beginning after the model year for which the credits 
        are earned.'';
            (2) in subsection (b)(2)(B), by striking ``subsection 
        (a)(1) of this section'' and inserting ``subsection 
        (a)(1)(A)''; and
            (3) in subsection (g)--
                    (A) in paragraph (3)--
                            (i) in subparagraph (A), by striking 
                        ``2011'' and inserting ``2010'';
                            (ii) in subparagraph (B), by striking 
                        ``2017, 1.5 miles per gallon; and'' and 
                        inserting ``2016, 1.5 miles per gallon;''; and
                            (iii) by striking subparagraph (C) and 
                        inserting the following:
                    ``(C) for model years 2017 and 2018, 2.0 miles per 
                gallon;
                    ``(D) for model years 2019 through 2021, 4.0 miles 
                per gallon; and
                    ``(E) for model year 2022 and subsequent model 
                years, 6.0 miles per gallon.''; and
                    (B) in paragraph (5), by striking ``2010'' and 
                inserting ``2009''.

SEC. 3. CALCULATION OF AVERAGE FUEL ECONOMY.

    Section 32904(a) of title 49, United States Code, is amended by 
adding at the end the following:
    ``(3) For model years 2012 through 2025, if requested by a 
manufacturer, the average fuel economy calculated by the Administrator 
for the manufacturer's passenger and nonpassenger automobiles shall 
include off-cycle technology fuel economy credits equivalent to the 
credits calculated by the Administrator for the off-cycle technology 
under the Administrator's vehicle emissions standards for the same or 
closest model year, provided that the technology has a direct impact 
upon improving fuel economy performance.''.
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