SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Heavy Duty Hybrid Vehicle Research, 
Development, and Demonstration Act of 2008''.

SEC. 2. ADVANCED HEAVY DUTY HYBRID VEHICLE TECHNOLOGY RESEARCH, 
              DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL APPLICATION 
              PROGRAM.

    (a) Definitions.--In this section:
            (1) Advanced heavy duty hybrid vehicle.--The term 
        ``advanced heavy duty hybrid vehicle'' means a vehicle with a 
        gross weight of more than 14,000 pounds but less than 33,000 
        pounds that is fueled, in part, by a rechargeable energy 
        storage system.
            (2) Greenhouse gas.--The term ``greenhouse gas'' means--
                    (A) carbon dioxide;
                    (B) methane;
                    (C) nitrous oxide;
                    (D) hydrofluorocarbons;
                    (E) perfluorocarbons; or
                    (F) sulfur hexafluoride.
            (3) Plug-in hybrid vehicle.--The term ``plug-in hybrid'' 
        means a vehicle fueled, in part, by electrical power that can 
        be recharged by connecting the vehicle to an electric power 
        source.
            (4) Program.--The term ``program'' means the competitive 
        research, development, demonstration, and commercial 
        application program established under this section.
            (5) Retrofit.--The term ``retrofit'' means the process of 
        creating an advanced heavy duty hybrid vehicle by converting an 
        existing, fuel-powered vehicle.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Establishment.--The Secretary shall establish a competitive 
research, development, demonstration, and commercial application 
program under which the Secretary shall provide grants to eligible 
applicants to carry out projects to advance research and development, 
and to demonstrate technologies, for advanced heavy duty hybrid 
vehicles.
    (c) Applications.--
            (1) In general.--The Secretary shall establish requirements 
        for applying for grants under the program.
            (2) Selection criteria.--
                    (A) In general.--The Secretary shall establish 
                selection criteria for awarding grants under the 
                program.
                    (B) Factors.--In evaluating applications, the 
                Secretary shall--
                            (i) consider the ability of applicants to 
                        successfully complete both phases described in 
                        subsection (d); and
                            (ii) give priority to applicants who, as 
                        determined by the Secretary, are best able to--
                                    (I) fill existing research gaps and 
                                achieve the greatest advances beyond 
                                the state of current technology; and
                                    (II) achieve the greatest reduction 
                                in fuel consumption and emissions.
            (3) Partners.--An applicant for a grant under this section 
        may carry out a project in partnership with other entities.
            (4) Schedule.--
                    (A) Application request.--
                            (i) In general.--Not later than 180 days 
                        after the date of the enactment of this Act, 
                        the Secretary shall publish in the Federal 
                        Register, and elsewhere as appropriate, a 
                        request for applications to undertake projects 
                        under the program.
                            (ii) Application deadline.--The 
                        applications shall be due not later than 90 
                        days after the date of the publication.
                    (B) Application selection.--Not later than 90 days 
                after the date on which applications for grants under 
                the program are due, the Secretary shall select, 
                through a competitive process, all applicants to be 
                awarded a grant under the program.
            (5) Number of grants.--
                    (A) In general.--The Secretary shall determine the 
                number of grants to be awarded under the program based 
                on the technical merits of the applications received.
                    (B) Minimum and maximum number.--The number of 
                grants awarded under the program shall be not less than 
                3 and not more than 7 grants.
                    (C) Plug-in hybrid vehicle technology.--At least 
                half of the grants awarded under this section shall be 
                used to promote plug-in hybrid vehicle technology.
            (6) Award amounts.--The Secretary shall award not more than 
        $3,000,000 to a recipient per year for each of the 3 years of 
        the project.
    (d) Program Requirements; 2 Phases.--
            (1) In general.--As a condition of the receipt of a grant 
        under this section, each grant recipient shall be required to 
        complete 2 phases in accordance with this subsection.
            (2) Phase 1.--
                    (A) In general.--In phase 1, the recipient shall 
                conduct research and demonstrate advanced hybrid 
                technology by producing or retrofitting 1 or more 
                advanced heavy duty hybrid vehicles.
                    (B) Report.--Not later than 60 days after the 
                completion of phase 1, the recipient shall submit to 
                the Secretary a report containing data and analysis 
                of--
                            (i) the performance of each vehicle in 
                        carrying out the testing procedures developed 
                        by the Secretary under subparagraph (E);
                            (ii) the performance during the testing of 
                        the components of each vehicle, including the 
                        battery, energy management system, charging 
                        system, and power controls;
                            (iii) the projected cost of each vehicle, 
                        including acquisition, operating, and 
                        maintenance costs; and
                            (iv) the emission levels of each vehicle, 
                        including greenhouse gas levels.
                    (C) Termination.--The Secretary may terminate the 
                grant program with respect to the project of a 
                recipient at the conclusion of phase 1 if the Secretary 
                determines that the recipient cannot successfully 
                complete the requirements of phase 2.
                    (D) Timing.--Phase 1 shall--
                            (i) begin on the date of receipt of a grant 
                        under the program; and
                            (ii) have a duration of 1 year.
                    (E) Testing procedures.--
                            (i) In general.--The Secretary shall 
                        develop standard testing procedures to be used 
                        by recipients in testing each vehicle.
                            (ii) Vehicle performance.--The procedures 
                        shall include testing the performance of a 
                        vehicle under typical operating conditions.
            (3) Phase 2.--
                    (A) In general.--In phase 2, the recipient shall 
                demonstrate advanced manufacturing processes and 
                technologies by producing or retrofitting 50 advanced 
                heavy duty hybrid vehicles.
                    (B) Report.--Not later than 60 days after the 
                completion of phase 2, the recipient shall submit to 
                the Secretary a report containing an analysis of --
                            (i) the technological challenges 
                        encountered by the recipient in the development 
                        of the vehicles;
                            (ii) the technological challenges involved 
                        in mass producing the vehicles; and
                            (iii) the manufacturing cost of each 
                        vehicle, the estimated sale price of each 
                        vehicle, and the cost of a comparable non-
                        hybrid vehicle.
                    (C) Timing.--Phase 2 shall--
                            (i) begins on the conclusion of phase 1; 
                        and
                            (ii) have a duration of 2 years.
    (e) Research on Vehicle Usage and Alternative Drive Trains.--
            (1) In general.--The Secretary shall conduct research into 
        alternative power train designs for use in advanced heavy duty 
        hybrid vehicles.
            (2) Comparison.--The research shall compare the estimated 
        cost (including operating and maintenance costs, the cost of 
        emission reductions, and fuel savings) of each design with 
        similar nonhybrid power train designs under the conditions in 
        which those vehicles are typically used, including (for each 
        vehicle type)--
                    (A) the number of miles driven;
                    (B) time spent with the engine at idle;
                    (C) horsepower requirements;
                    (D) the length of time the maximum or near maximum 
                power output of the vehicle is needed; and
                    (E) any other factors that the Secretary considers 
                appropriate.
    (f) Report to Congress.--Not later than 60 days after the date the 
Secretary receives the reports from grant recipients under subsection 
(d)(3)(B), the Secretary shall submit to Congress a report containing a 
description of--
            (1) the grant recipients and the projects funded;
            (2) all applicants who submitted applications for the 
        program;
            (3) all data contained in reports submitted by grant 
        recipients under subsection (d);
            (4) the vehicles produced or retrofitted by recipients in 
        phases 1 and 2 of the program, including an analysis of the 
        fuel efficiency of the vehicles; and
            (5) the results of the research carried out under 
        subsections (e) and (i).
    (g) Coordination and Nonduplication.--To the maximum extent 
practicable, the Secretary shall coordinate, and not duplicate, 
activities under this section with other programs and laboratories of 
the Department of Energy and other Federal research programs.
    (h) Cost Sharing.--Section 988 of the Energy Policy Act of 2005 (42 
U.S.C. 16352) shall apply to the program.
    (i) Electrical Grid Research Pilot Program.--The Secretary, acting 
through the National Laboratories and Technology Centers of the 
Department of Energy, shall establish a pilot program to research and 
test the effects on the domestic electric power grid of the widespread 
use of plug-in hybrid vehicles, including plug-in hybrid vehicles that 
are advanced heavy duty hybrid vehicles.
    (j) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Secretary to carry out this section $16,000,000 for each of 
        fiscal years 2009 through 2011.
            (2) Limitations.--Of the funds authorized under paragraph 
        (1), not more than $1,000,000 of the amount made available for 
        a fiscal year may be used--
                    (A) to carry out the research required under 
                subsection (e);
                    (B) to carry out the pilot program required under 
                subsection (i); and
                    (C) to administer the program.

SEC. 3. EXPANDING RESEARCH IN HYBRID TECHNOLOGY FOR LARGE VEHICLES.

    Subsection (g)(1) of the United States Energy Storage 
Competitiveness Act of 2007 (42 U.S.C. 17231(g)(1)) is amended by 
inserting ``vehicles with a gross weight over 16,000 pounds,'' before 
``stationary applications,''.
Output: Heavy Duty Hybrid Vehicle Research, Development, and Demonstration Act of 2008 - Directs the Secretary of Energy to establish a competitive program to provide between three and seven grants of up to $3 million in each of three years to advance research and development and to demonstrate technologies, including plug-in hybrid technology, for advanced heavy duty hybrid vehicles (vehicles with a gross weight of between 14,000 and 33,000 pounds that are fueled, in part, by a rechargeable energy storage system); and (2) conduct research into alternative power train designs for use in advanced heavy duty hybrid vehicles.

Amends the United States Energy Storage Competitiveness Act of 2007 to direct the Secretary to conduct an applied research program on energy storage systems to support vehicles with a gross weight over 16,000 pounds.