SECTION 1. SHORT TITLE.

    This Act may be cited as the ``New Bridging Industry and Government 
Through Hi-Tech Research on Energy Efficiency Act of 2008''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Congress enacted legislation to dramatically increase 
        Corporate Average Fuel Economy standards (hereafter in this 
        section referred to as ``CAFE standards''), mandating a fleet-
        wide fuel economy of 35 miles per gallon by 2020.
            (2) The new CAFE standards represent a 27 percent increase 
        over current CAFE standards.
            (3) The new CAFE standards require Chrysler, Ford, and 
        General Motors to increase their research and development 
        investments at an estimated cost of $85,000,000,000.
            (4) Chrysler, Ford, and General Motors currently invest a 
        total of approximately $16,000,000,000 each year to research 
        and develop safer, more efficient, and alternatively fueled 
        automobiles.
            (5) Chrysler, Ford, and General Motors employ more than 
        65,000 Americans to research and develop new technologies.
            (6) These required investments will place a large cost 
        burden on an already struggling industry, representing an 
        estimated additional $7,000,000,000 per year above current 
        research and development investments.
            (7) Investments of finite funds in new energy efficiency 
        initiatives should not detract from current investments in 
        improved vehicle safety technology.
            (8) Energy availability is a national security issue of the 
        utmost importance.
            (9) A significant portion of United States energy use comes 
        from imported petroleum products from unstable regions.
            (10) Clean diesel technology is a more efficient way to 
        utilize petroleum products to reduce emissions in the short-
        term while alternative energy sources are developed.
            (11) Harmonization of biodiesel composition standards will 
        enable more widespread use of clean diesel technology 
        throughout the country.
            (12) Electric vehicle propulsion can help reduce dependence 
        on petroleum-based energy.
            (13) Energy storage is critical in making electric vehicles 
        commercially viable.
            (14) Technical challenges remain before adequate energy 
        storage for electric vehicles becomes a reality.
            (15) There is no current domestic production of advanced 
        battery technology applicable to hybrid or electric vehicles.
            (16) Domestic research, development, demonstration, and 
        production of advanced battery and electric vehicle technology 
        will create many high-paying jobs.
            (17) Hydrogen fuel cell vehicles represent the long-term 
        goal of nearly emission-free transportation.
            (18) Increased availability of hydrogen fuel is crucial to 
        increase the viability of leap-ahead hydrogen vehicle 
        technology.
            (19) The United States Government currently invests Federal 
        funds across numerous agencies into research and development of 
        advanced fuel and efficiency enhancing technology, spending 
        approximately $400,000,000 in fiscal year 2007 and 
        approximately $1,100,000,000 in fiscal year 2008.
            (20) Expanding and coordinating these currently disparate 
        efforts would yield greater gains in the development of viable 
        efficient alternative fuel technologies.
            (21) The Federal Government can and should concert its 
        efforts in order to adequately provide relief from the large 
        cost burden placed on the auto industry by requiring extensive 
        research and development of advanced technology.

SEC. 3. ADVANCED BATTERY RESEARCH AND DEVELOPMENT.

    (a) Definition.--For purposes of this section, the term ``battery'' 
means an electrochemical energy storage system powered directly by 
electrical current.
    (b) Research and Development Grant Program.--
            (1) In general.--The Secretary of Energy shall establish a 
        program for making grants to National Laboratories and 
        institutions of higher education for research, development, and 
        demonstration of high-efficiency advanced battery technologies. 
        Such grants may be used for--
                    (A) exploratory research;
                    (B) battery system devlopment;
                    (C) vehicle technology demonstration and 
                validation; and
                    (D) United States advanced battery production 
                capability development.
            (2) Priority consideration.--In awarding grants under this 
        section, the Secretary of Energy shall give priority 
        consideration to National Laboratories and institutions of 
        higher education that partner with original equipment 
        maunfacturers of vehicles that will use the high-efficiency 
        advanced battery technologies being researched, developed, or 
        demonstrated.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
$150,000,000 for each of the fiscal years 2009 through 2013.

SEC. 4. RESEARCH AND DEVELOPMENT TAX CREDIT.

    (a) Permanent Extension.--Section 41 of the Internal Revenue Code 
of 1986 (relating to credit for increasing research activities) is 
amended by striking subsection (h).
    (b) Refundability.--Section 41 of such Code, as amended by 
subsection (a), is amended by adding at the end the following new 
subsection:
    ``(h) Portion of Credit Treated as Refundable.--
            ``(1) In general.--For purposes of this title, so much of 
        the credit which would be allowed under this section for any 
        taxable year (determined without regard to this subsection) 
        that is attributable to expenditures for technology designed to 
        meet Corporate Average Fuel Economy standards shall be treated 
        as allowed under subpart C and not under this section.
            ``(2) Special rule for partnerships.--In the case of a 
        partnership that elects to have this subsection apply--
                    ``(A) paragraph (1) shall apply at the partnership 
                level (and not at the partner level),
                    ``(B) the amount of the credit determined under 
                paragraph (1) shall be treated as an overpayment of 
                tax,
                    ``(C) the partnership shall be treated as the 
                person who made the overpayment of tax, and the 
                Secretary shall refund the amount of such overpayment 
                to the partnership, and
                    ``(D) the amount of credits under this section that 
                would otherwise be separately stated to the partners of 
                the partnership pursuant to section 702(a) shall be 
                reduced by the amount determined under paragraph 
                (1).''.
    (c) Conforming Amendment.--Section 45C(b)(1) of such Code is 
amended by striking subparagraph (D).
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2007.

SEC. 5. INTERAGENCY GROUP ON CAFE STANDARDS.

    (a) Establishment and Membership.--
            (1) In general.--There is established an Interagency 
        Working Group on Corporate Average Fuel Economy Standards 
        comprised of 1 representative of the following:
                    (A) the Departments of Agriculture, Commerce, 
                Defense, Energy, Interior, Labor, and Transportation, 
                appointed by the respective Secretaries of such 
                Departments;
                    (B) the Environmental Protection Agency, appointed 
                by the Administrator of such agency;
                    (C) the National Science Foundation and the Office 
                of Management and Budget, appointed by the respective 
                Directors of such agencies;
                    (D) 3 representatives of the automobile 
                manufacturing industry, appointed by the President; and
                    (E) members representing such additional Federal 
                agencies as the President shall appoint.
            (2) Chairperson.--The Interagency Working Group established 
        under subsection (a)(1) shall be chaired by the representative 
        of the Department of Defense, the Department of Energy, the 
        Department of Transportation, the Department of Commerce, or 
        the Environmental Protection Agency, as determined by the 
        membership. The chairperson shall serve for a term of 1 year.
    (b) Purpose and Duties.--
            (1) Purpose.--The purpose of the Interagency Working Group 
        is to ensure Federal agencies' work to research and develop 
        advanced fuel technology is coordinated and concerted in order 
        to increase vehicle fuel efficiency and reduce emissions.
            (2) Duties.--The Interagency Working Group established 
        under subsection (a)(1) shall--
                    (A) meet not less than 4 times annually to examine 
                the status of efforts by auto companies to meet the 
                corporate automobile fuel economy standards required 
                under section 32902 of title 49, United States Code;
                    (B) propose policy recommendations for solutions to 
                meet such standards;
                    (C) formulate a recommended budget for all Federal 
                spending on research and development of advanced fuel 
                technologies and submit such recommended budget to the 
                President and to Congress;
                    (D) review agency priorities and technical issues 
                for Federally funded technology research and 
                development;
                    (E) promote communications among the government, 
                private sector, and academia on research and 
                development requirements and programs; and
                    (F) submit a report of its activities to Congress 
                annually.

SEC. 6. HARMONIZATION OF BIOFUELS PRODUCTION STANDARDS.

    (a) In General.--The Administrator of the Environmental Protection 
Agency shall work with national and international standard setting 
organizations, along with other government organizations, to harmonize 
standards for the production of biofuels from a variety of feedstocks 
and the blending of such fuels with petroleum-based fuels at various 
concentrations.
    (b) Annual Report.--Not later than 1 year after the date of 
enactment of this Act, and annually thereafter, the Administrator of 
the Environmental Protection Agency shall transmit to the Congress a 
report on progress made under subsection (a).

SEC. 7. HYDROGEN FUELING PUMPS.

    (a) Grant Program.--The Secretary of Transportation shall establish 
a program for making grants with the goal of establishing at least 100 
publicly available hydrogen fueling pumps at retail gas stations by 
2013 in at least 2 selected regions.
    (b) Required Contribution.--As a condition of receiving a grant 
under subsection (a), the owner or operator of a gas station shall be 
required to contribute, or obtain funding from a State or local 
government entity for, at least 10 percent of the cost of the hydrogen 
fueling pump.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation for carrying out this 
section $50,000,000 for each of the fiscal years 2009 through 2013.

SEC. 8. FEDERAL ACQUISITION OF HYDROGEN FUEL CELL VEHICLES.

    There are authorized to be appropriated to the Administrator of the 
General Services Administration for the acquisition of hydrogen fuel 
cell vehicles for use by Federal agencies $50,000,000 for each of the 
fiscal years 2012 through 2014.
Output: New Bridging Industry and Government Through Hi-Tech Research on Energy Efficiency Act of 2008 - Requires the Secretary of Energy to establish a program for making grants to National Laboratories and institutions of higher education for research, development, and demonstration of high-efficiency advanced battery technologies. Allows such grants to be used for: (1) exploratory research; (2) battery system development; (3) vehicle technology demonstration and validation; and (4) U.S. advanced battery production capability development.

Defines "battery" to mean an electrochemical energy storage system powered directly by electrical current.

Requires the Secretary to give priority consideration to National Laboratories and institutions of higher education that partner with original equipment manufacturers of vehicles that will use the technologies.

Amends the Internal Revenue Code to extend and revise the credit for increasing research activities.

Establishes an Interagency Working Group on Corporate Average Fuel Economy Standards to ensure that federal agencies' work to research and develop advanced fuel technology is coordinated and concerted in order to increase vehicle fuel efficiency and reduce emissions.

Requires the Administrator of the Environmental Protection Agency (EPA) to work with national and international standard setting organizations to harmonize standards for the production of biofuels from a variety of feedstocks and the blending of such fuels with petroleum-based fuels at various concentrations.

Requires the Secretary of Transportation to establish a program for making grants with the goal of establishing at least 100 publicly available hydrogen fueling pumps at retail gas stations by 2013 in at least two selected regions.

Authorizes funds to be appropriated to the Administrator of the General Services Administration (GSA) for the acquisition of hydrogen fuel cell vehicles for use by federal agencies for each of FY2012-FY2014.