SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Automobile Fuel Efficiency 
Improvements Act of 2003''.

SEC. 2. PHASED INCREASES IN FUEL ECONOMY STANDARDS.

    (a) Passenger Automobiles.--
            (1) Minimum standards.--Subsection (b) of section 32902 of 
        title 49, United States Code, is amended to read as follows:
    ``(b) Passenger Automobiles.--Except as otherwise provided under 
this section, the average fuel economy standard for passenger 
automobiles manufactured by a manufacturer in a model year--
            ``(1) after model year 1984 and before model year 2006 
        shall be 25 miles per gallon;
            ``(2) after model year 2005 and before model year 2009 
        shall be 28 miles per gallon;
            ``(3) after model year 2008 and before model year 2012 
        shall be 32 miles per gallon;
            ``(4) after model year 2011 and before model year 2015 
        shall be 36 miles per gallon; and
            ``(5) after model year 2014 shall be 40 miles per 
        gallon.''.
            (2) Higher standards set by regulation.--Subsection (c) of 
        such section is amended--
                    (A) in the first sentence of paragraph (1)--
                            (i) by striking ``Subject to paragraph (2) 
                        of this subsection, the'' and inserting 
                        ``The''; and
                            (ii) by striking ``amending the standard'' 
                        and inserting ``increasing the standard 
                        otherwise applicable'';
                    (B) by striking paragraph (2); and
                    (C) by designating the text composed of the second 
                and third sentences of paragraph (1) as paragraph (2) 
                and realigning such paragraph, as so designated, flush 
                with the left margin.
    (b) Non-Passenger Automobiles.--Subsection (a) of such section is 
amended--
            (1) by striking ``At least 18 months before each model 
        year,'' and inserting the following:
    ``(1) The average fuel economy standard applicable for automobiles 
(except passenger automobiles) manufactured by a manufacturer in a 
model year--
            ``(A) after model year 1984 and before model year 2006 
        shall be 17 miles per gallon;
            ``(B) after model year 2005 and before model year 2009 
        shall be 19 miles per gallon;
            ``(C) after model year 2008 and before model year 2012 
        shall be 21.5 miles per gallon;
            ``(D) after model year 2011 and before model year 2015 
        shall be 24.5 miles per gallon; and
            ``(E) after model year 2014 shall be 27.5 miles per gallon, 
        except as provided under paragraph (2).
    ``(2) At least 18 months before the beginning of each model year 
after model year 2015,''; and
            (2) by adding at the end the following new paragraph:
    ``(3) If the Secretary does not increase the average fuel economy 
standard applicable under paragraph (1)(E) or (2), or applicable to any 
class under paragraph (2), within 24 months after the latest increase 
in the standard applicable under paragraph (1)(E) or (2), the Secretary 
shall submit to Congress a report containing an explanation of the 
reasons for not increasing the standard. The report shall be submitted 
not later than 90 days after the expiration of the 24-month period.''.

SEC. 3. INCREASED INCLUSIVENESS OF DEFINITIONS OF AUTOMOBILE AND 
              PASSENGER AUTOMOBILE.

    (a) Automobile.--
            (1) In general.--Paragraph (3) of section 32901(a) of title 
        49, United States Code, is amended--
                    (A) by striking ``6,000 pounds'' each place it 
                appears in subparagraphs (A) and (B) and inserting 
                ``12,000 pounds''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``10,000 pounds'' and 
                        inserting ``14,000 pounds''; and
                            (ii) in clause (ii), by striking ``an 
                        average fuel economy standard'' and all that 
                        follows through ``conservation or''.
            (2) Special rule.--Section 32908(a)(1) of such title is 
        amended by striking ``8,500 pounds'' and inserting ``14,000 
        pounds''.
    (b) Passenger Automobile.--Paragraph (16) of section 32901(a) of 
such title is amended to read as follows:
            ``(16) `passenger automobile'--
                    ``(A) means, except as provided in subparagraph 
                (B), an automobile having a gross vehicle weight of 
                12,000 pounds or less that is designed to be used 
                principally for the transportation of persons; but
                    ``(B) does not include--
                            ``(i) a vehicle that has a primary load 
                        carrying device or container attached;
                            ``(ii) a vehicle that has a seating 
                        capacity of more than 12 persons;
                            ``(iii) a vehicle that has a seating 
                        capacity of more than 9 persons behind the 
                        driver's seat; or
                            ``(iv) a vehicle that is equipped with a 
                        cargo area of at least 6 feet in interior 
                        length that does not extend beyond the frame of 
                        the vehicle and is an open area or is designed 
                        for use as an open area but is enclosed by a 
                        cap and is not readily accessible directly from 
                        the passenger compartment.''.
    (c) Applicability.--The amendments made by this section shall apply 
with respect to automobiles manufactured for model years after the 
automobile model year in which this Act is enacted.

SEC. 4. CIVIL PENALTIES.

    (a) Increased Penalty for Violations of Fuel Economy Standards.--
Subsection (b) of section 32912 of title 49, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``Standards.--'';
            (2) by striking ``$5'' and inserting ``the dollar amount 
        applicable under paragraph (2)'';
            (3) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively; and
            (4) by adding at the end the following new paragraph:
    ``(2)(A) The dollar amount referred to in paragraph (1) is $10, as 
increased from time to time under subparagraph (B).
    ``(B) Effective on October 1 of each year, the dollar amount 
applicable under subparagraph (A) shall be increased by the percentage 
(rounded to the nearest one-tenth of one percent) by which the price 
index for July of such year exceeds the price index for July of the 
preceding year. The amount calculated under the preceding sentence 
shall be rounded to the nearest $0.10.
    ``(C) In this paragraph, the term `price index' means the Consumer 
Price Index for all-urban consumers published monthly by the Department 
of Labor.''.
    (b) Conforming Amendment.--Subsection (c)(1) of such section is 
amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (B) and (C), respectively.
    (c) Applicability.--The amendments made by subsection (a) shall 
apply with respect to automobiles manufactured for model years after 
the automobile model year in which this Act is enacted.

SEC. 5. ACCURATE FUEL ECONOMY TESTING.

    (a) Biennial Report on Testing Quality.--
            (1) Requirement for report.--
                    (A) In general.--Chapter 329 of title 49, United 
                States Code, is amended by adding at the end the 
                following new section:
``Sec. 32920. Biennial report on testing quality
    ``(a) Requirement for Report.--Not later than October 1 of each 
odd-numbered year, the Secretary of Transportation shall submit to 
Congress a report on the quality of the testing for determining 
automobile fuel economy under this chapter for all currently available 
technologies for autmobiles.
    ``(b) Content of Report.--The report shall include the following 
information:
            ``(1) An assessment of the accuracy of the fuel economy 
        determined for automobiles in relation to actual highway and 
        road vehicle fuel economy.
            ``(2) A discussion of changes in testing methodology that 
        are planned to be made, together with an assessment of the 
        effects that such changes are expected to have on the accuracy 
        of the measures of automobile fuel economy resulting from the 
        use of the testing methodology as changed.
    ``(c) Consultation Requirement.--The Secretary of Transportation 
and the Administrator of the Environmental Protection Agency shall 
consult on the preparation of the biennial report under this 
section.''.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of such chapter is amended by adding at 
                the end the following new item:

``32920. Biennial report on testing quality.''.
            (2) First report.--The first report under section 32920 of 
        title 49, United States Code, as added by paragraph (1), shall 
        be submitted to Congress in 2005.
    (b) Improvement of Process for Measuring Fuel Economy.--
            (1) Study.--
                    (A) Requirement for study.--The Secretary of 
                Transportation shall provide for the John A. Volpe 
                National Transportation Systems Center to carry out a 
                study--
                            (i) to determine what practicable 
                        automobile fuel economy testing process 
                        provides the most accurate measures of actual 
                        automobile fuel economy in highway use, in 
                        urban use, and in combined highway and in urban 
                        use; and
                            (ii) to compare the average automobile fuel 
                        economy ratings calculated under the testing 
                        process determined under clause (i) for each 
                        category of automobile use described in that 
                        clause with the corresponding automobile fuel 
                        economy ratings calculated under the testing 
                        process in use under chapter 329 of title 49, 
                        United States Code, on the date of the 
                        enactment of this Act.
                    (B) Report.--Not later than two years after the 
                date of the enactment of this Act, the Secretary shall 
                submit to Congress a report on the results of the study 
                under subparagraph (A). The report shall include the 
                following:
                            (i) Determinations.--The determination and 
                        comparisons made under clauses (i) and (ii) of 
                        subparagraph (A).
                            (ii) Estimate of equivalent fuel economy.--
                        An estimate of the average adjustment to 
                        automobile fuel economy ratings calculated 
                        under the testing process used for the purposes 
                        of chapter 329 of title 49, United States Code, 
                        as of the date of enactment of this Act that is 
                        needed to conform those ratings closely to the 
                        automobile fuel economy ratings calculated 
                        under the testing process determined most 
                        accurate under subparagraph (A)(i).
            (2) Testing procedure revision.--
                    (A) Requirement for revised procedure.--Not later 
                than 180 days after the report required under paragraph 
                (1)(B) is submitted to Congress, the Secretary of 
                Transportation shall prescribe in regulations--
                            (i) a revised testing procedure for 
                        accurately measuring the actual automobile fuel 
                        economy of each model of automobile; and
                            (ii) a requirement that the revised testing 
                        procedure be applied for the purposes of 
                        chapter 329 of title 49, United States Code, to 
                        determine the average fuel economy of the 
                        automobiles manufactured in model years after 
                        model year 2006.
                    (B) Model for revised procedure.--The testing 
                procedure prescribed under subparagraph (A) shall be 
                based on the testing process identified in the report 
                required under paragraph (1)(B) as providing the most 
                accurate measures of actual automobile fuel economy.
            (3) Comparable adjustment in average fuel economy 
        standards.--
                    (A) Requirement for adjustment.--For automobiles 
                manufactured in model years after model year 2006, the 
                Secretary of Transportation shall amend each average 
                fuel economy standard prescribed under section 32902 of 
                title 49, United States Code, to take into account 
                improved accuracy in the calculation of automobile fuel 
                economy that results from use of the revised testing 
                procedure applied as required under paragraph (2).
                    (B) Condition.--The Secretary shall ensure that 
                each average fuel economy standard applied as amended 
                under subparagraph (A) is at least as stringent as the 
                corresponding average fuel economy standard that the 
                Secretary would have applied under section 32902 of 
                title 49, United States Code, if the fuel economy 
                testing procedure had not been revised as required 
                under paragraph (2).

SEC. 6. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.

    Section 32917 of title 49, United States Code, is amended--
            (1) in paragraph (1) of subsection (b)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``passenger''; and
                            (ii) by striking ``to achieve'' and all 
                        that follows and inserting ``to achieve--''; 
                        and
                    (B) by striking subparagraphs (A) and (B) and 
                inserting the following:
            ``(A) in the case of non-passenger automobiles, a fleet 
        average fuel economy for that year of at least the average fuel 
        economy standard applicable under subsection (a) of section 
        32902 of this title for the model year that includes January 1 
        of that fiscal year; and
            ``(B) in the case of passenger automobiles, a fleet average 
        fuel economy for that year of at least the average fuel economy 
        standard applicable under subsection (b) or (c) of such section 
        for such model year.'';
            (2) in paragraph (2) of subsection (b)--
                    (A) by striking ``Fleet average fuel economy is--'' 
                and inserting ``For the purposes of paragraph (1), the 
                fleet average fuel economy of non-passenger or 
                passenger automobiles in a fiscal year is--'';
                    (B) in subparagraph (A)--
                            (i) by striking ``passenger automobiles'' 
                        and inserting ``the non-passenger automobiles 
                        or passenger automobiles, respectively, that 
                        are''; and
                            (ii) by striking ``in a fiscal year'' and 
                        inserting ``in such fiscal year''; and
                    (C) in subparagraph (B), by inserting ``such'' 
                after ``the number of''; and
            (3) by adding at the end the following new subsection:
    ``(c) Minimum Number of Exceptionally Fuel-Efficient Vehicles.--The 
President shall prescribe regulations that require that--
            ``(1) at least 20 percent of the passenger automobiles 
        leased for at least 60 consecutive days or bought by executive 
        agencies in a fiscal year have a vehicle fuel economy rating 
        that is at least 5 miles per gallon higher than the average 
        fuel economy standard applicable to the automobile under 
        subsection (b) or (c) of section 32902 of this title for the 
        model year that includes January 1 of that fiscal year; and
            ``(2) beginning in fiscal year 2009, at least 10,000 
        vehicles in the fleet of automobiles used by executive agencies 
        in a fiscal year have a vehicle fuel economy at least 5 miles 
        per gallon higher than the average fuel economy standards 
        applicable to such automobiles under section 32902 of this 
        title for the model year that includes January 1 of that fiscal 
        year.''.
Output: Automobile Fuel Efficiency Improvements Act of 2003 - Amends the Federal transportation code to phase in an increase in average fuel economy standards: (1) from 25 miles per gallon for passenger automobiles manufactured between model years 1984 and 2006 to 40 miles per gallon for those manufactured after model year 2014; and (2) from 17 miles per gallon for non-passenger automobiles manufactured between model years 1984 and 2006 to 27.5 miles per gallon for those manufactured after model year 2014. Requires the Secretary of Transportation to prescribe such standards for non-passenger automobiles at least 18 months before the beginning of each model year after model year 2015.

Revises the definitions of automobile and passenger automobile, increasing the weight standards and seating capacity.

Increases the civil penalties for violations of fuel economy standards.

Requires the Secretary of Transportation to: (1) report biennially to Congress on the quality of the automobile fuel economy testing for all currently available automobile technologies; and (2) provide for the John A. Volpe National Transportation Systems Center to study what practicable automobile fuel economy testing process provides the most accurate measures of actual automobile fuel economy in highway use, in urban use, and in combined highway and in urban use.

Directs the Secretary to prescribe: (1) a revised testing procedure for accurately measuring the actual automobile fuel economy of each automobile model, based on the latter study; and (2) amended average fuel economy standards taking into account improved accuracy in their calculation resulting from use of such procedure.

Amends the Federal transportation code to revise requirements for the fleet average fuel economy standards for U.S. executive agency automobiles, both passenger and non-passenger.

Directs the President to prescribe regulations that require a specified minimum number of exceptionally fuel-efficient vehicles leased or bought by U.S. executive agencies.