--H.R.6--
H.R.6
One Hundred Tenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Thursday,
the fourth day of January, two thousand and seven
An Act
To move the United States toward greater energy independence and
security, to increase the production of clean renewable fuels, to protect
consumers, to increase the efficiency of products, buildings, and vehicles, to
promote research on and deploy greenhouse gas capture and storage options, and
to improve the energy performance of the Federal Government, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Energy Independence and
Security Act of 2007'.
(b) Table of Contents- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 3. Relationship to other law.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
Subtitle A--Increased Corporate Average Fuel Economy Standards
Sec. 102. Average fuel economy standards for automobiles and certain
other vehicles.
Sec. 104. Credit trading program.
Sec. 105. Consumer information.
Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies.
Sec. 108. National Academy of Sciences study of medium-duty and
heavy-duty truck fuel economy.
Sec. 109. Extension of flexible fuel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling
procedures.
Sec. 111. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption from separate calculation requirement.
Subtitle B--Improved Vehicle Technology
Sec. 131. Transportation electrification.
Sec. 132. Domestic manufacturing conversion grant program.
Sec. 133. Inclusion of electric drive in Energy Policy Act of
1992.
Sec. 134. Loan guarantees for fuel-efficient automobile parts
manufacturers.
Sec. 135. Advanced battery loan guarantee program.
Sec. 136. Advanced technology vehicles manufacturing incentive
program.
Subtitle C--Federal Vehicle Fleets
Sec. 141. Federal vehicle fleets.
Sec. 142. Federal fleet conservation requirements.
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS
Subtitle A--Renewable Fuel Standard
Sec. 202. Renewable fuel standard.
Sec. 203. Study of impact of Renewable Fuel Standard.
Sec. 204. Environmental and resource conservation impacts.
Sec. 205. Biomass based diesel and biodiesel labeling.
Sec. 206. Study of credits for use of renewable electricity in electric
vehicles.
Sec. 207. Grants for production of advanced biofuels.
Sec. 208. Integrated consideration of water quality in determinations on
fuels and fuel additives.
Sec. 209. Anti-backsliding.
Sec. 210. Effective date, savings provision, and transition rules.
Subtitle B--Biofuels Research and Development
Sec. 223. Grants for biofuel production research and development in
certain States.
Sec. 224. Biorefinery energy efficiency.
Sec. 225. Study of optimization of flexible fueled vehicles to use E-85
fuel.
Sec. 226. Study of engine durability and performance associated with the
use of biodiesel.
Sec. 227. Study of optimization of biogas used in natural gas
vehicles.
Sec. 229. Biofuels and biorefinery information center.
Sec. 230. Cellulosic ethanol and biofuels research.
Sec. 231. Bioenergy research and development, authorization of
appropriation.
Sec. 232. Environmental research and development.
Sec. 233. Bioenergy research centers.
Sec. 234. University based research and development grant program.
Subtitle C--Biofuels Infrastructure
Sec. 241. Prohibition on franchise agreement restrictions related to
renewable fuel infrastructure.
Sec. 242. Renewable fuel dispenser requirements.
Sec. 243. Ethanol pipeline feasibility study.
Sec. 244. Renewable fuel infrastructure grants.
Sec. 245. Study of the adequacy of transportation of
domestically-produced renewable fuel by railroads and other modes of
transportation.
Sec. 246. Federal fleet fueling centers.
Sec. 247. Standard specifications for biodiesel.
Sec. 248. Biofuels distribution and advanced biofuels
infrastructure.
Subtitle D--Environmental Safeguards
Sec. 251. Waiver for fuel or fuel additives.
TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND
LIGHTING
Subtitle A--Appliance Energy Efficiency
Sec. 301. External power supply efficiency standards.
Sec. 302. Updating appliance test procedures.
Sec. 303. Residential boilers.
Sec. 304. Furnace fan standard process.
Sec. 305. Improving schedule for standards updating and clarifying State
authority.
Sec. 306. Regional standards for furnaces, central air conditioners, and
heat pumps.
Sec. 307. Procedure for prescribing new or amended standards.
Sec. 308. Expedited rulemakings.
Sec. 309. Battery chargers.
Sec. 311. Energy standards for home appliances.
Sec. 312. Walk-in coolers and walk-in freezers.
Sec. 313. Electric motor efficiency standards.
Sec. 314. Standards for single package vertical air conditioners and
heat pumps.
Sec. 315. Improved energy efficiency for appliances and buildings in
cold climates.
Sec. 316. Technical corrections.
Subtitle B--Lighting Energy Efficiency
Sec. 321. Efficient light bulbs.
Sec. 322. Incandescent reflector lamp efficiency standards.
Sec. 323. Public building energy efficient and renewable energy
systems.
Sec. 324. Metal halide lamp fixtures.
Sec. 325. Energy efficiency labeling for consumer electronic
products.
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
Subtitle A--Residential Building Efficiency
Sec. 411. Reauthorization of weatherization assistance program.
Sec. 412. Study of renewable energy rebate programs.
Sec. 413. Energy code improvements applicable to manufactured
housing.
Subtitle B--High-Performance Commercial Buildings
Sec. 421. Commercial high-performance green buildings.
Sec. 422. Zero Net Energy Commercial Buildings Initiative.
Sec. 423. Public outreach.
Subtitle C--High-Performance Federal Buildings
Sec. 431. Energy reduction goals for Federal buildings.
Sec. 432. Management of energy and water efficiency in Federal
buildings.
Sec. 433. Federal building energy efficiency performance
standards.
Sec. 434. Management of Federal building efficiency.
Sec. 436. High-performance green Federal buildings.
Sec. 437. Federal green building performance.
Sec. 438. Storm water runoff requirements for Federal development
projects.
Sec. 439. Cost-effective technology acceleration program.
Sec. 440. Authorization of appropriations.
Sec. 441. Public building life-cycle costs.
Subtitle D--Industrial Energy Efficiency
Sec. 451. Industrial energy efficiency.
Sec. 452. Energy-intensive industries program.
Sec. 453. Energy efficiency for data center buildings.
Subtitle E--Healthy High-Performance Schools
Sec. 461. Healthy high-performance schools.
Sec. 462. Study on indoor environmental quality in schools.
Subtitle F--Institutional Entities
Sec. 471. Energy sustainability and efficiency grants and loans for
institutions.
Subtitle G--Public and Assisted Housing
Sec. 481. Application of International Energy Conservation Code to
public and assisted housing.
Subtitle H--General Provisions
Sec. 491. Demonstration project.
Sec. 492. Research and development.
Sec. 493. Environmental Protection Agency demonstration grant program
for local governments.
Sec. 494. Green Building Advisory Committee.
Sec. 495. Advisory Committee on Energy Efficiency Finance.
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
Subtitle A--United States Capitol Complex
Sec. 501. Capitol complex photovoltaic roof feasibility studies.
Sec. 502. Capitol complex E-85 refueling station.
Sec. 503. Energy and environmental measures in Capitol complex master
plan.
Sec. 504. Promoting maximum efficiency in operation of Capitol power
plant.
Sec. 505. Capitol power plant carbon dioxide emissions feasibility study
and demonstration projects.
Subtitle B--Energy Savings Performance Contracting
Sec. 511. Authority to enter into contracts; reports.
Sec. 512. Financing flexibility.
Sec. 513. Promoting long-term energy savings performance contracts and
verifying savings.
Sec. 514. Permanent reauthorization.
Sec. 515. Definition of energy savings.
Sec. 516. Retention of savings.
Sec. 517. Training Federal contracting officers to negotiate energy
efficiency contracts.
Sec. 518. Study of energy and cost savings in nonbuilding
applications.
Subtitle C--Energy Efficiency in Federal Agencies
Sec. 521. Installation of photovoltaic system at Department of Energy
headquarters building.
Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. Standard relating to solar hot water heaters.
Sec. 524. Federally-procured appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. OMB government efficiency reports and scorecards.
Sec. 529. Electricity sector demand response.
Subtitle D--Energy Efficiency of Public Institutions
Sec. 531. Reauthorization of State energy programs.
Sec. 532. Utility energy efficiency programs.
Subtitle E--Energy Efficiency and Conservation Block Grants
Sec. 542. Energy Efficiency and Conservation Block Grant Program.
Sec. 543. Allocation of funds.
Sec. 545. Requirements for eligible entities.
Sec. 546. Competitive grants.
Sec. 547. Review and evaluation.
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT
Subtitle A--Solar Energy
Sec. 602. Thermal energy storage research and development program.
Sec. 603. Concentrating solar power commercial application
studies.
Sec. 604. Solar energy curriculum development and certification
grants.
Sec. 605. Daylighting systems and direct solar light pipe
technology.
Sec. 606. Solar Air Conditioning Research and Development Program.
Sec. 607. Photovoltaic demonstration program.
Subtitle B--Geothermal Energy
Sec. 613. Hydrothermal research and development.
Sec. 614. General geothermal systems research and development.
Sec. 615. Enhanced geothermal systems research and development.
Sec. 616. Geothermal energy production from oil and gas fields and
recovery and production of geopressured gas resources.
Sec. 617. Cost sharing and proposal evaluation.
Sec. 618. Center for geothermal technology transfer.
Sec. 619. GeoPowering America.
Sec. 620. Educational pilot program.
Sec. 622. Applicability of other laws.
Sec. 623. Authorization of appropriations.
Sec. 624. International geothermal energy development.
Sec. 625. High cost region geothermal energy grant program.
Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies
Sec. 633. Marine and hydrokinetic renewable energy research and
development.
Sec. 634. National Marine Renewable Energy Research, Development, and
Demonstration Centers.
Sec. 635. Applicability of other laws.
Sec. 636. Authorization of appropriations.
Subtitle D--Energy Storage for Transportation and Electric Power
Sec. 641. Energy storage competitiveness.
Subtitle E--Miscellaneous Provisions
Sec. 651. Lightweight materials research and development.
Sec. 652. Commercial insulation demonstration program.
Sec. 653. Technical criteria for clean coal power Initiative.
Sec. 655. Bright Tomorrow Lighting Prizes.
Sec. 656. Renewable Energy innovation manufacturing partnership.
TITLE VII--CARBON CAPTURE AND SEQUESTRATION
Subtitle A--Carbon Capture and Sequestration Research, Development, and
Demonstration
Sec. 702. Carbon capture and sequestration research, development, and
demonstration program.
Sec. 703. Carbon capture.
Sec. 704. Review of large-scale programs.
Sec. 705. Geologic sequestration training and research.
Sec. 706. Relation to Safe Drinking Water Act.
Sec. 707. Safety research.
Sec. 708. University based research and development grant program.
Subtitle B--Carbon Capture and Sequestration Assessment and Framework
Sec. 711. Carbon dioxide sequestration capacity assessment.
Sec. 712. Assessment of carbon sequestration and methane and nitrous
oxide emissions from ecosystems.
Sec. 713. Carbon dioxide sequestration inventory.
Sec. 714. Framework for geological carbon sequestration on public
land.
TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY
Subtitle A--Management Improvements
Sec. 801. National media campaign.
Sec. 802. Alaska Natural Gas Pipeline administration.
Sec. 803. Renewable energy deployment.
Sec. 804. Coordination of planned refinery outages.
Sec. 805. Assessment of resources.
Sec. 806. Sense of Congress relating to the use of renewable resources
to generate energy.
Sec. 807. Geothermal assessment, exploration information, and priority
activities.
Subtitle B--Prohibitions on Market Manipulation and False Information
Sec. 811. Prohibition on market manipulation.
Sec. 812. Prohibition on false information.
Sec. 813. Enforcement by the Federal Trade Commission.
Sec. 815. Effect on other laws.
TITLE IX--INTERNATIONAL ENERGY PROGRAMS
Subtitle A--Assistance to Promote Clean and Efficient Energy Technologies in
Foreign Countries
Sec. 911. United States assistance for developing countries.
Sec. 912. United States exports and outreach programs for India, China,
and other countries.
Sec. 913. United States trade missions to encourage private sector trade
and investment.
Sec. 914. Actions by Overseas Private Investment Corporation.
Sec. 915. Actions by United States Trade and Development Agency.
Sec. 916. Deployment of international clean and efficient energy
technologies and investment in global energy markets.
Sec. 917. United States-Israel energy cooperation.
Subtitle B--International Clean Energy Foundation
Sec. 922. Establishment and management of Foundation.
Sec. 923. Duties of Foundation.
Sec. 925. Powers of the Foundation; related provisions.
Sec. 926. General personnel authorities.
Sec. 927. Authorization of appropriations.
Subtitle C--Miscellaneous Provisions
Sec. 931. Energy diplomacy and security within the Department of
State.
Sec. 932. National Security Council reorganization.
Sec. 933. Annual national energy security strategy report.
Sec. 934. Convention on Supplementary Compensation for Nuclear Damage
contingent cost allocation.
Sec. 935. Transparency in extractive industries resource payments.
TITLE X--GREEN JOBS
Sec. 1002. Energy efficiency and renewable energy worker training
program.
TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE
Subtitle A--Department of Transportation
Sec. 1101. Office of Climate Change and Environment.
Subtitle B--Railroads
Sec. 1111. Advanced technology locomotive grant pilot program.
Sec. 1112. Capital grants for class II and class III railroads.
Subtitle C--Marine Transportation
Sec. 1121. Short sea transportation initiative.
Sec. 1122. Short sea shipping eligibility for capital construction
fund.
Sec. 1123. Short sea transportation report.
Subtitle D--Highways
Sec. 1131. Increased Federal share for CMAQ projects.
Sec. 1132. Distribution of rescissions.
Sec. 1133. Sense of Congress regarding use of complete streets design
techniques.
TITLE XII--SMALL BUSINESS ENERGY PROGRAMS
Sec. 1201. Express loans for renewable energy and energy
efficiency.
Sec. 1202. Pilot program for reduced 7(a) fees for purchase of energy
efficient technologies.
Sec. 1203. Small business energy efficiency.
Sec. 1204. Larger 504 loan limits to help business develop energy
efficient technologies and purchases.
Sec. 1205. Energy saving debentures.
Sec. 1206. Investments in energy saving small businesses.
Sec. 1207. Renewable fuel capital investment company.
Sec. 1208. Study and report.
TITLE XIII--SMART GRID
Sec. 1301. Statement of policy on modernization of electricity
grid.
Sec. 1302. Smart grid system report.
Sec. 1303. Smart grid advisory committee and smart grid task
force.
Sec. 1304. Smart grid technology research, development, and
demonstration.
Sec. 1305. Smart grid interoperability framework.
Sec. 1306. Federal matching fund for smart grid investment costs.
Sec. 1307. State consideration of smart grid.
Sec. 1308. Study of the effect of private wire laws on the development
of combined heat and power facilities.
Sec. 1309. DOE study of security attributes of smart grid systems.
TITLE XIV--POOL AND SPA SAFETY
Sec. 1404. Federal swimming pool and spa drain cover standard.
Sec. 1405. State swimming pool safety grant program.
Sec. 1406. Minimum State law requirements.
Sec. 1407. Education program.
TITLE XV--REVENUE PROVISIONS
Sec. 1500. Amendment of 1986 Code.
Sec. 1501. Extension of additional 0.2 percent FUTA surtax.
Sec. 1502. 7-year amortization of geological and geophysical
expenditures for certain major integrated oil companies.
TITLE XVI--EFFECTIVE DATE
Sec. 1601. Effective date.
SEC. 2. DEFINITIONS.
(1) DEPARTMENT- The term `Department' means the Department of
Energy.
(2) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher
education' has the meaning given the term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).
(3) SECRETARY- The term `Secretary' means the Secretary of Energy.
SEC. 3. RELATIONSHIP TO OTHER LAW.
Except to the extent expressly provided in this Act or an amendment made
by this Act, nothing in this Act or an amendment made by this Act supersedes,
limits the authority provided or responsibility conferred by, or authorizes
any violation of any provision of law (including a regulation), including any
energy or environmental law or regulation.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL
ECONOMY
Subtitle A--Increased Corporate Average Fuel Economy
Standards
SEC. 101. SHORT TITLE.
This subtitle may be cited as the `Ten-in-Ten Fuel Economy Act'.
SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND CERTAIN OTHER
VEHICLES.
(a) Increased Standards- Section 32902 of title 49, United States Code, is
amended--
(A) by striking `Non-Passenger Automobiles- ' and inserting
`Prescription of Standards by Regulation- ';
(B) by striking `(except passenger automobiles)' in subsection (a);
and
(C) by striking the last sentence;
(2) by striking subsection (b) and inserting the following:
`(b) Standards for Automobiles and Certain Other Vehicles-
`(1) IN GENERAL- The Secretary of Transportation, after consultation
with the Secretary of Energy and the Administrator of the Environmental
Protection Agency, shall prescribe separate average fuel economy standards
for--
`(A) passenger automobiles manufactured by manufacturers in each model
year beginning with model year 2011 in accordance with this
subsection;
`(B) non-passenger automobiles manufactured by manufacturers in each
model year beginning with model year 2011 in accordance with this
subsection; and
`(C) work trucks and commercial medium-duty or heavy-duty on-highway
vehicles in accordance with subsection (k).
`(2) FUEL ECONOMY STANDARDS FOR AUTOMOBILES-
`(A) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2011 THROUGH
2020- The Secretary shall prescribe a separate average fuel economy
standard for passenger automobiles and a separate average fuel economy
standard for non-passenger automobiles for each model year beginning with
model year 2011 to achieve a combined fuel economy average for model year
2020 of at least 35 miles per gallon for the total fleet of passenger and
non-passenger automobiles manufactured for sale in the United States for
that model year.
`(B) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2021 THROUGH
2030- For model years 2021 through 2030, the average fuel economy required
to be attained by each fleet of passenger and non-passenger automobiles
manufactured for sale in the United States shall be the maximum feasible
average fuel economy standard for each fleet for that model year.
`(C) PROGRESS TOWARD STANDARD REQUIRED- In prescribing average fuel
economy standards under subparagraph (A), the Secretary shall prescribe
annual fuel economy standard increases that increase the applicable
average fuel economy standard ratably beginning with model year 2011 and
ending with model year 2020.
`(3) AUTHORITY OF THE SECRETARY- The Secretary shall--
`(A) prescribe by regulation separate average fuel economy standards
for passenger and non-passenger automobiles based on 1 or more vehicle
attributes related to fuel economy and express each standard in the form
of a mathematical function; and
`(B) issue regulations under this title prescribing average fuel
economy standards for at least 1, but not more than 5, model
years.
`(4) MINIMUM STANDARD- In addition to any standard prescribed pursuant
to paragraph (3), each manufacturer shall also meet the minimum standard for
domestically manufactured passenger automobiles, which shall be the greater
of--
`(A) 27.5 miles per gallon; or
`(B) 92 percent of the average fuel economy projected by the Secretary
for the combined domestic and non-domestic passenger automobile fleets
manufactured for sale in the United States by all manufacturers in the
model year, which projection shall be published in the Federal Register
when the standard for that model year is promulgated in accordance with
this section.'; and
(A) by striking `(1) Subject to paragraph (2) of this subsection, the'
and inserting `The'; and
(B) by striking paragraph (2).
(b) Fuel Economy Standard for Commercial Medium-Duty and Heavy-Duty
On-Highway Vehicles and Work Trucks- Section 32902 of title 49, United States
Code, is amended by adding at the end the following:
`(k) Commercial Medium- and Heavy-Duty On-Highway Vehicles and Work
Trucks-
`(1) STUDY- Not later than 1 year after the National Academy of Sciences
publishes the results of its study under section 108 of the Ten-in-Ten Fuel
Economy Act, the Secretary of Transportation, in consultation with the
Secretary of Energy and the Administrator of the Environmental Protection
Agency, shall examine the fuel efficiency of commercial medium- and
heavy-duty on-highway vehicles and work trucks and determine--
`(A) the appropriate test procedures and methodologies for measuring
the fuel efficiency of such vehicles and work trucks;
`(B) the appropriate metric for measuring and expressing commercial
medium- and heavy-duty on-highway vehicle and work truck fuel efficiency
performance, taking into consideration, among other things, the work
performed by such on-highway vehicles and work trucks and types of
operations in which they are used;
`(C) the range of factors, including, without limitation, design,
functionality, use, duty cycle, infrastructure, and total overall energy
consumption and operating costs that affect commercial medium- and
heavy-duty on-highway vehicle and work truck fuel efficiency; and
`(D) such other factors and conditions that could have an impact on a
program to improve commercial medium- and heavy-duty on-highway vehicle
and work truck fuel efficiency.
`(2) RULEMAKING- Not later than 24 months after completion of the study
required under paragraph (1), the Secretary, in consultation with the
Secretary of Energy and the Administrator of the Environmental Protection
Agency, by regulation, shall determine in a rulemaking proceeding how to
implement a commercial medium- and heavy-duty on-highway vehicle and work
truck fuel efficiency improvement program designed to achieve the maximum
feasible improvement, and shall adopt and implement appropriate test
methods, measurement metrics, fuel economy standards, and compliance and
enforcement protocols that are appropriate, cost-effective, and
technologically feasible for commercial medium- and heavy-duty on-highway
vehicles and work trucks. The Secretary may prescribe separate standards for
different classes of vehicles under this subsection.
`(3) LEAD-TIME; REGULATORY STABILITY- The commercial medium- and
heavy-duty on-highway vehicle and work truck fuel economy standard adopted
pursuant to this subsection shall provide not less than--
`(A) 4 full model years of regulatory lead-time; and
`(B) 3 full model years of regulatory stability.'.
SEC. 103. DEFINITIONS.
(a) In General- Section 32901(a) of title 49, United States Code, is
amended--
(1) by striking paragraph (3) and inserting the following:
`(3) except as provided in section 32908 of this title, `automobile'
means a 4-wheeled vehicle that is propelled by fuel, or by alternative fuel,
manufactured primarily for use on public streets, roads, and highways and
rated at less than 10,000 pounds gross vehicle weight, except--
`(A) a vehicle operated only on a rail line;
`(B) a vehicle manufactured in different stages by 2 or more
manufacturers, if no intermediate or final-stage manufacturer of that
vehicle manufactures more than 10,000 multi-stage vehicles per year;
or
(2) by redesignating paragraphs (7) through (16) as paragraphs (8)
through (17), respectively;
(3) by inserting after paragraph (6) the following:
`(7) `commercial medium- and heavy-duty on-highway vehicle' means an
on-highway vehicle with a gross vehicle weight rating of 10,000 pounds or
more.';
(4) in paragraph (9)(A), as redesignated, by inserting `or a mixture of
biodiesel and diesel fuel meeting the standard established by the American
Society for Testing and Materials or under section 211(u) of the Clean Air
Act (42 U.S.C. 7545(u)) for fuel containing 20 percent biodiesel (commonly
known as `B20')' after `alternative fuel';
(5) by redesignating paragraph (17), as redesignated, as paragraph
(18);
(6) by inserting after paragraph (16), as redesignated, the
following:
`(17) `non-passenger automobile' means an automobile that is not a
passenger automobile or a work truck.'; and
(7) by adding at the end the following:
`(19) `work truck' means a vehicle that--
`(A) is rated at between 8,500 and 10,000 pounds gross vehicle weight;
and
`(B) is not a medium-duty passenger vehicle (as defined in section
86.1803-01 of title 40, Code of Federal Regulations, as in effect on the
date of the enactment of the Ten-in-Ten Fuel Economy Act).'.
SEC. 104. CREDIT TRADING PROGRAM.
(a) In General- Section 32903 of title 49, United States Code, is
amended--
(1) by striking `section 32902(b)-(d) of this title' each place it
appears and inserting `subsections (a) through (d) of section 32902';
(2) in subsection (a)(2)--
(A) by striking `3 consecutive model years' and inserting `5
consecutive model years';
(B) by striking `clause (1) of this subsection,' and inserting
`paragraph (1)';
(3) by redesignating subsection (f) as subsection (h); and
(4) by inserting after subsection (e) the following:
`(f) Credit Trading Among Manufacturers-
`(1) IN GENERAL- The Secretary of Transportation may establish, by
regulation, a fuel economy credit trading program to allow manufacturers
whose automobiles exceed the average fuel economy standards prescribed under
section 32902 to earn credits to be sold to manufacturers whose automobiles
fail to achieve the prescribed standards such that the total oil savings
associated with manufacturers that exceed the prescribed standards are
preserved when trading credits to manufacturers that fail to achieve the
prescribed standards.
`(2) LIMITATION- The trading of credits by a manufacturer to the
category of passenger automobiles manufactured domestically is limited to
the extent that the fuel economy level of such automobiles shall comply with
the requirements of section 32902(b)(4), without regard to any trading of
credits from other manufacturers.
`(g) Credit Transferring Within a Manufacturer's Fleet-
`(1) IN GENERAL- The Secretary of Transportation shall establish by
regulation a fuel economy credit transferring program to allow any
manufacturer whose automobiles exceed any of the average fuel economy
standards prescribed under section 32902 to transfer the credits earned
under this section and to apply such credits within that manufacturer's
fleet to a compliance category of automobiles that fails to achieve the
prescribed standards.
`(2) YEARS FOR WHICH USED- Credits transferred under this subsection are
available to be used in the same model years that the manufacturer could
have applied such credits under subsections (a), (b), (d), and (e), as well
as for the model year in which the manufacturer earned such credits.
`(3) MAXIMUM INCREASE- The maximum increase in any compliance category
attributable to transferred credits is--
`(A) for model years 2011 through 2013, 1.0 mile per gallon;
`(B) for model years 2014 through 2017, 1.5 miles per gallon;
and
`(C) for model year 2018 and subsequent model years, 2.0 miles per
gallon.
`(4) LIMITATION- The transfer of credits by a manufacturer to the
category of passenger automobiles manufactured domestically is limited to
the extent that the fuel economy level of such automobiles shall comply with
the requirements under section 32904(b)(4), without regard to any transfer
of credits from other categories of automobiles described in paragraph
(6)(B).
`(5) YEARS AVAILABLE- A credit may be transferred under this subsection
only if it is earned after model year 2010.
`(6) DEFINITIONS- In this subsection:
`(A) FLEET- The term `fleet' means all automobiles manufactured by a
manufacturer in a particular model year.
`(B) COMPLIANCE CATEGORY OF AUTOMOBILES- The term `compliance category
of automobiles' means any of the following 3 categories of automobiles for
which compliance is separately calculated under this chapter:
`(i) Passenger automobiles manufactured domestically.
`(ii) Passenger automobiles not manufactured
domestically.
`(iii) Non-passenger automobiles.'.
(b) Conforming Amendments-
(1) LIMITATIONS- Section 32902(h) of title 49, United States Code, is
amended--
(A) in paragraph (1), by striking `and' at the end;
(B) in paragraph (2), by striking the period at the end and inserting
`; and'; and
(C) by adding at the end the following:
`(3) may not consider, when prescribing a fuel economy standard, the
trading, transferring, or availability of credits under section
32903.'.
(2) SEPARATE CALCULATIONS- Section 32904(b)(1)(B) is amended by striking
`chapter.' and inserting `chapter, except for the purposes of section
32903.'.
SEC. 105. CONSUMER INFORMATION.
Section 32908 of title 49, United States Code, is amended by adding at the
end the following:
`(g) Consumer Information-
`(1) PROGRAM- The Secretary of Transportation, in consultation with the
Secretary of Energy and the Administrator of the Environmental Protection
Agency, shall develop and implement by rule a program to require
manufacturers--
`(A) to label new automobiles sold in the United States
with--
`(i) information reflecting an automobile's performance on the basis
of criteria that the Administrator shall develop, not later than 18
months after the date of the enactment of the Ten-in-Ten Fuel Economy
Act, to reflect fuel economy and greenhouse gas and other emissions over
the useful life of the automobile;
`(ii) a rating system that would make it easy for consumers to
compare the fuel economy and greenhouse gas and other emissions of
automobiles at the point of purchase, including a designation of
automobiles--
`(I) with the lowest greenhouse gas emissions over the useful life
of the vehicles; and
`(II) the highest fuel economy; and
`(iii) a permanent and prominent display that an automobile is
capable of operating on an alternative fuel; and
`(B) to include in the owner's manual for vehicles capable of
operating on alternative fuels information that describes that capability
and the benefits of using alternative fuels, including the renewable
nature and environmental benefits of using alternative fuels.
`(A) IN GENERAL- The Secretary of Transportation, in consultation with
the Secretary of Energy and the Administrator of the Environmental
Protection Agency, shall develop and implement by rule a consumer
education program to improve consumer understanding of automobile
performance described in paragraph (1)(A)(i) and to inform consumers of
the benefits of using alternative fuel in automobiles and the location of
stations with alternative fuel capacity.
`(B) FUEL SAVINGS EDUCATION CAMPAIGN- The Secretary of Transportation
shall establish a consumer education campaign on the fuel savings that
would be recognized from the purchase of vehicles equipped with thermal
management technologies, including energy efficient air conditioning
systems and glass.
`(3) FUEL TANK LABELS FOR ALTERNATIVE FUEL AUTOMOBILES- The Secretary of
Transportation shall by rule require a label to be attached to the fuel
compartment of vehicles capable of operating on alternative fuels, with the
form of alternative fuel stated on the label. A label attached in compliance
with the requirements of section 32905(h) is deemed to meet the requirements
of this paragraph.
`(4) RULEMAKING DEADLINE- The Secretary of Transportation shall issue a
final rule under this subsection not later than 42 months after the date of
the enactment of the Ten-in-Ten Fuel Economy Act.'.
SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS.
Nothing in this subtitle, or the amendments made by this subtitle, shall
be construed to affect the application of section 32902 of title 49, United
States Code, to passenger automobiles or non-passenger automobiles
manufactured before model year 2011.
SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) In General- As soon as practicable after the date of enactment of this
Act, the Secretary of Transportation shall execute an agreement with the
National Academy of Sciences to develop a report evaluating vehicle fuel
economy standards, including--
(1) an assessment of automotive technologies and costs to reflect
developments since the Academy's 2002 report evaluating the corporate
average fuel economy standards was conducted;
(2) an analysis of existing and potential technologies that may be used
practically to improve automobile and medium-duty and heavy-duty truck fuel
economy;
(3) an analysis of how such technologies may be practically integrated
into the automotive and medium-duty and heavy-duty truck manufacturing
process; and
(4) an assessment of how such technologies may be used to meet the new
fuel economy standards under chapter 329 of title 49, United States Code, as
amended by this subtitle.
(b) Report- The Academy shall submit the report to the Secretary, the
Committee on Commerce, Science, and Transportation of the Senate, and the
Committee on Energy and Commerce of the House of Representatives, with its
findings and recommendations not later than 5 years after the date on which
the Secretary executes the agreement with the Academy.
(c) Quinquennial Updates- After submitting the initial report, the Academy
shall update the report at 5 year intervals thereafter through 2025.
SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY AND HEAVY-DUTY
TRUCK FUEL ECONOMY.
(a) In General- As soon as practicable after the date of enactment of this
Act, the Secretary of Transportation shall execute an agreement with the
National Academy of Sciences to develop a report evaluating medium-duty and
heavy-duty truck fuel economy standards, including--
(1) an assessment of technologies and costs to evaluate fuel economy for
medium-duty and heavy-duty trucks;
(2) an analysis of existing and potential technologies that may be used
practically to improve medium-duty and heavy-duty truck fuel economy;
(3) an analysis of how such technologies may be practically integrated
into the medium-duty and heavy-duty truck manufacturing process;
(4) an assessment of how such technologies may be used to meet fuel
economy standards to be prescribed under section 32902(k) of title 49,
United States Code, as amended by this subtitle; and
(5) associated costs and other impacts on the operation of medium-duty
and heavy-duty trucks, including congestion.
(b) Report- The Academy shall submit the report to the Secretary, the
Committee on Commerce, Science, and Transportation of the Senate, and the
Committee on Energy and Commerce of the House of Representatives, with its
findings and recommendations not later than 1 year after the date on which the
Secretary executes the agreement with the Academy.
SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.
(a) In General- Section 32906 of title 49, United States Code, is amended
to read as follows:
`Sec. 32906. Maximum fuel economy increase for alternative fuel
automobiles
`(a) In General- For each of model years 1993 through 2019 for each
category of automobile (except an electric automobile), the maximum increase
in average fuel economy for a manufacturer attributable to dual fueled
automobiles is--
`(1) 1.2 miles a gallon for each of model years 1993 through 2014;
`(2) 1.0 miles per gallon for model year 2015;
`(3) 0.8 miles per gallon for model year 2016;
`(4) 0.6 miles per gallon for model year 2017;
`(5) 0.4 miles per gallon for model year 2018;
`(6) 0.2 miles per gallon for model year 2019; and
`(7) 0 miles per gallon for model years after 2019.
`(b) Calculation- In applying subsection (a), the Administrator of the
Environmental Protection Agency shall determine the increase in a
manufacturer's average fuel economy attributable to dual fueled automobiles by
subtracting from the manufacturer's average fuel economy calculated under
section 32905(e) the number equal to what the manufacturer's average fuel
economy would be if it were calculated by the formula under section
32904(a)(1) by including as the denominator for each model of dual fueled
automobiles the fuel economy when the automobiles are operated on gasoline or
diesel fuel.'.
(b) Conforming Amendments- Section 32905 of title 49, United States Code,
is amended--
(1) in subsection (b), by striking `1993-2010,' and inserting `1993
through 2019,';
(2) in subsection (d), by striking `1993-2010,' and inserting `1993
through 2019,';
(3) by striking subsections (f) and (g); and
(4) by redesignating subsection (h) as subsection (f).
(c) B20 Biodiesel Flexible Fuel Credit- Section 32905(b)(2) of title 49,
United States Code, is amended to read as follows:
`(2) .5 divided by the fuel economy--
`(A) measured under subsection (a) when operating the model on
alternative fuel; or
`(B) measured based on the fuel content of B20 when operating the
model on B20, which is deemed to contain 0.15 gallon of fuel.'.
SEC. 110. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING
PROCEDURES.
Beginning in December 2009, and not less often than every 5 years
thereafter, the Administrator of the Environmental Protection Agency, in
consultation with the Secretary of Transportation, shall--
(1) reevaluate the fuel economy labeling procedures described in the
final rule published in the Federal Register on December 27, 2006 (71 Fed.
Reg. 77,872; 40 CFR parts 86 and 600) to determine whether changes in the
factors used to establish the labeling procedures warrant a revision of that
process; and
(2) submit a report to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Energy and Commerce of the
House of Representatives that describes the results of the reevaluation
process.
SEC. 111. CONSUMER TIRE INFORMATION.
(a) In General- Chapter 323 of title 49, United States Code, is amended by
inserting after section 32304 the following:
`Sec. 32304A. Consumer tire information
`(1) IN GENERAL- Not later than 24 months after the date of enactment of
the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation shall,
after notice and opportunity for comment, promulgate rules establishing a
national tire fuel efficiency consumer information program for replacement
tires designed for use on motor vehicles to educate consumers about the
effect of tires on automobile fuel efficiency, safety, and durability.
`(2) ITEMS INCLUDED IN RULE- The rulemaking shall include--
`(A) a national tire fuel efficiency rating system for motor vehicle
replacement tires to assist consumers in making more educated tire
purchasing decisions;
`(B) requirements for providing information to consumers, including
information at the point of sale and other potential information
dissemination methods, including the Internet;
`(C) specifications for test methods for manufacturers to use in
assessing and rating tires to avoid variation among test equipment and
manufacturers; and
`(D) a national tire maintenance consumer education program including,
information on tire inflation pressure, alignment, rotation, and tread
wear to maximize fuel efficiency, safety, and durability of replacement
tires.
`(3) APPLICABILITY- This section shall apply only to replacement tires
covered under section 575.104(c) of title 49, Code of Federal Regulations,
in effect on the date of the enactment of the Ten-in-Ten Fuel Economy
Act.
`(b) Consultation- The Secretary shall consult with the Secretary of
Energy and the Administrator of the Environmental Protection Agency on the
means of conveying tire fuel efficiency consumer information.
`(c) Report to Congress- The Secretary shall conduct periodic assessments
of the rules promulgated under this section to determine the utility of such
rules to consumers, the level of cooperation by industry, and the contribution
to national goals pertaining to energy consumption. The Secretary shall
transmit periodic reports detailing the findings of such assessments to the
Senate Committee on Commerce, Science, and Transportation and the House of
Representatives Committee on Energy and Commerce.
`(d) Tire Marking- The Secretary shall not require permanent labeling of
any kind on a tire for the purpose of tire fuel efficiency information.
`(e) Application With State and Local Laws and Regulations- Nothing in
this section prohibits a State or political subdivision thereof from enforcing
a law or regulation on tire fuel efficiency consumer information that was in
effect on January 1, 2006. After a requirement promulgated under this section
is in effect, a State or political subdivision thereof may adopt or enforce a
law or regulation on tire fuel efficiency consumer information enacted or
promulgated after January 1, 2006, if the requirements of that law or
regulation are identical to the requirement promulgated under this section.
Nothing in this section shall be construed to preempt a State or political
subdivision thereof from regulating the fuel efficiency of tires (including
establishing testing methods for determining compliance with such standards)
not otherwise preempted under this chapter.'.
(b) Enforcement- Section 32308 of title 49, United States Code, is
amended--
(1) by redesignating subsections (c) and (d) as subsections (d) and (e),
respectively; and
(2) by inserting after subsection (b) the following:
`(c) Section 32304A- Any person who fails to comply with the national tire
fuel efficiency information program under section 32304A is liable to the
United States Government for a civil penalty of not more than $50,000 for each
violation.'.
(c) Conforming Amendment- The chapter analysis for chapter 323 of title
49, United States Code, is amended by inserting after the item relating to
section 32304 the following:
`32304A. Consumer tire information'.
SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.
Section 32912 of title 49, United States Code, is amended by adding at the
end the following:
`(e) Use of Civil Penalties- For fiscal year 2008 and each fiscal year
thereafter, from the total amount deposited in the general fund of the
Treasury during the preceding fiscal year from fines, penalties, and other
funds obtained through enforcement actions conducted pursuant to this section
(including funds obtained under consent decrees), the Secretary of the
Treasury, subject to the availability of appropriations, shall--
`(1) transfer 50 percent of such total amount to the account providing
appropriations to the Secretary of Transportation for the administration of
this chapter, which shall be used by the Secretary to support rulemaking
under this chapter; and
`(2) transfer 50 percent of such total amount to the account providing
appropriations to the Secretary of Transportation for the administration of
this chapter, which shall be used by the Secretary to carry out a program to
make grants to manufacturers for retooling, reequipping, or expanding
existing manufacturing facilities in the United States to produce advanced
technology vehicles and components.'.
SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.
(a) Repeal- Paragraphs (6), (7), and (8) of section 32904(b) of title 49,
United States Code, are repealed.
(b) Effect of Repeal on Existing Exemptions- Any exemption granted under
section 32904(b)(6) of title 49, United States Code, prior to the date of the
enactment of this Act shall remain in effect subject to its terms through
model year 2013.
(c) Accrual and Use of Credits- Any manufacturer holding an exemption
under section 32904(b)(6) of title 49, United States Code, prior to the date
of the enactment of this Act may accrue and use credits under sections 32903
and 32905 of such title beginning with model year 2011.
Subtitle B--Improved Vehicle Technology
SEC. 131. TRANSPORTATION ELECTRIFICATION.
(a) Definitions- In this section:
(1) ADMINISTRATOR- The term `Administrator' means the Administrator of
the Environmental Protection Agency.
(2) BATTERY- The term `battery' means an electrochemical energy storage
system powered directly by electrical current.
(3) ELECTRIC TRANSPORTATION TECHNOLOGY- The term `electric
transportation technology' means--
(A) technology used in vehicles that use an electric motor for all or
part of the motive power of the vehicles, including battery electric,
hybrid electric, plug-in hybrid electric, fuel cell, and plug-in fuel cell
vehicles, or rail transportation; or
(B) equipment relating to transportation or mobile sources of air
pollution that use an electric motor to replace an internal combustion
engine for all or part of the work of the equipment, including--
(i) corded electric equipment linked to transportation or mobile
sources of air pollution; and
(ii) electrification technologies at airports, ports, truck stops,
and material-handling facilities.
(4) NONROAD VEHICLE- The term `nonroad vehicle' means a vehicle--
(i) by a nonroad engine, as that term is defined in section 216 of
the Clean Air Act (42 U.S.C. 7550); or
(ii) fully or partially by an electric motor powered by a fuel cell,
a battery, or an off-board source of electricity; and
(B) that is not a motor vehicle or a vehicle used solely for
competition.
(5) PLUG-IN ELECTRIC DRIVE VEHICLE- The term `plug-in electric drive
vehicle' means a vehicle that--
(A) draws motive power from a battery with a capacity of at least 4
kilowatt-hours;
(B) can be recharged from an external source of electricity for motive
power; and
(C) is a light-, medium-, or heavy-duty motor vehicle or nonroad
vehicle (as those terms are defined in section 216 of the Clean Air Act
(42 U.S.C. 7550)).
(6) QUALIFIED ELECTRIC TRANSPORTATION PROJECT- The term `qualified
electric transportation project' means an electric transportation technology
project that would significantly reduce emissions of criteria pollutants,
greenhouse gas emissions, and petroleum, including--
(A) shipside or shoreside electrification for vessels;
(B) truck-stop electrification;
(C) electric truck refrigeration units;
(D) battery-powered auxiliary power units for trucks;
(E) electric airport ground support equipment;
(F) electric material and cargo handling equipment;
(G) electric or dual-mode electric rail;
(H) any distribution upgrades needed to supply electricity to the
project; and
(I) any ancillary infrastructure, including panel upgrades, battery
chargers, in-situ transformers, and trenching.
(b) Plug-in Electric Drive Vehicle Program-
(1) ESTABLISHMENT- The Secretary shall establish a competitive program
to provide grants on a cost-shared basis to State governments, local
governments, metropolitan transportation authorities, air pollution control
districts, private or nonprofit entities, or combinations of those
governments, authorities, districts, and entities, to carry out one or more
projects to encourage the use of plug-in electric drive vehicles or other
emerging electric vehicle technologies, as determined by the
Secretary.
(2) ADMINISTRATION- The Secretary shall, in consultation with the
Secretary of Transportation and the Administrator, establish requirements
for applications for grants under this section, including reporting of data
to be summarized for dissemination to grantees and the public, including
safety, vehicle, and component performance, and vehicle and component life
cycle costs.
(3) PRIORITY- In making awards under this subsection, the Secretary
shall--
(A) give priority consideration to applications that--
(i) encourage early widespread use of vehicles described in
paragraph (1); and
(ii) are likely to make a significant contribution to the
advancement of the production of the vehicles in the United States;
and
(B) ensure, to the maximum extent practicable, that the program
established under this subsection includes a variety of applications,
manufacturers, and end-uses.
(4) REPORTING- The Secretary shall require a grant recipient under this
subsection to submit to the Secretary, on an annual basis, data relating to
safety, vehicle performance, life cycle costs, and emissions of vehicles
demonstrated under the grant, including emissions of greenhouse gases.
(5) COST SHARING- Section 988 of the Energy Policy Act of 2005 (42
U.S.C. 16352) shall apply to a grant made under this subsection.
(6) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this subsection $90,000,000 for each of fiscal
years 2008 through 2012, of which not less than 1/3 of the total amount
appropriated shall be available each fiscal year to make grants to local and
municipal governments.
(c) Near-Term Transportation Sector Electrification Program-
(1) IN GENERAL- Not later than 1 year after the date of enactment of
this Act, the Secretary, in consultation with the Secretary of
Transportation and the Administrator, shall establish a program to provide
grants for the conduct of qualified electric transportation projects.
(2) PRIORITY- In providing grants under this subsection, the Secretary
shall give priority to large-scale projects and large-scale aggregators of
projects.
(3) COST SHARING- Section 988 of the Energy Policy Act of 2005 (42
U.S.C. 16352) shall apply to a grant made under this subsection.
(4) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this subsection $95,000,000 for each of fiscal
years 2008 through 2013.
(1) IN GENERAL- The Secretary shall develop a nationwide electric drive
transportation technology education program under which the Secretary shall
provide--
(A) teaching materials to secondary schools and high schools;
and
(B) assistance for programs relating to electric drive system and
component engineering to institutions of higher education.
(2) ELECTRIC VEHICLE COMPETITION- The program established under
paragraph (1) shall include a plug-in hybrid electric vehicle competition
for institutions of higher education, which shall be known as the `Dr.
Andrew Frank Plug-In Electric Vehicle Competition'.
(3) ENGINEERS- In carrying out the program established under paragraph
(1), the Secretary shall provide financial assistance to institutions of
higher education to create new, or support existing, degree programs to
ensure the availability of trained electrical and mechanical engineers with
the skills necessary for the advancement of--
(A) plug-in electric drive vehicles; and
(B) other forms of electric drive transportation technology
vehicles.
(4) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as may be necessary to carry out this
subsection.
SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is amended
to read as follows:
`SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
`(1) IN GENERAL- The Secretary shall establish a program to encourage
domestic production and sales of efficient hybrid and advanced diesel
vehicles and components of those vehicles.
`(2) INCLUSIONS- The program shall include grants to automobile
manufacturers and suppliers and hybrid component manufacturers to encourage
domestic production of efficient hybrid, plug-in electric hybrid, plug-in
electric drive, and advanced diesel vehicles.
`(3) PRIORITY- Priority shall be given to the refurbishment or retooling
of manufacturing facilities that have recently ceased operation or will
cease operation in the near future.
`(b) Coordination With State and Local Programs- The Secretary may
coordinate implementation of this section with State and local programs
designed to accomplish similar goals, including the retention and retraining
of skilled workers from the manufacturing facilities, including by
establishing matching grant arrangements.
`(c) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry out this
section.'.
SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is
amended--
(1) by redesignating subsections (a) through (d) as subsections (b)
through (e), respectively;
(2) by inserting before subsection (b) the following:
`(a) Definitions- In this section:
`(1) FUEL CELL ELECTRIC VEHICLE- The term `fuel cell electric vehicle'
means an on-road or non-road vehicle that uses a fuel cell (as defined in
section 803 of the Spark M. Matsunaga Hydrogen Act of 2005 (42 U.S.C.
16152)).
`(2) HYBRID ELECTRIC VEHICLE- The term `hybrid electric vehicle' means a
new qualified hybrid motor vehicle (as defined in section 30B(d)(3) of the
Internal Revenue Code of 1986).
`(3) MEDIUM- OR HEAVY-DUTY ELECTRIC VEHICLE- The term `medium- or
heavy-duty electric vehicle' means an electric, hybrid electric, or plug-in
hybrid electric vehicle with a gross vehicle weight of more than 8,501
pounds.
`(4) NEIGHBORHOOD ELECTRIC VEHICLE- The term `neighborhood electric
vehicle' means a 4-wheeled on-road or nonroad vehicle that--
`(A) has a top attainable speed in 1 mile of more than 20 mph and not
more than 25 mph on a paved level surface; and
`(B) is propelled by an electric motor and on-board, rechargeable
energy storage system that is rechargeable using an off-board source of
electricity.
`(5) PLUG-IN ELECTRIC DRIVE VEHICLE- The term `plug-in electric drive
vehicle' means a vehicle that--
`(A) draws motive power from a battery with a capacity of at least 4
kilowatt-hours;
`(B) can be recharged from an external source of electricity for
motive power; and
`(C) is a light-, medium-, or heavy duty motor vehicle or nonroad
vehicle (as those terms are defined in section 216 of the Clean Air Act
(42 U.S.C. 7550)).';
(3) in subsection (b) (as redesignated by paragraph (1))--
(A) by striking `The Secretary' and inserting the following:
`(1) ALLOCATION- The Secretary'; and
(B) by adding at the end the following:
`(2) ELECTRIC VEHICLES- Not later than January 31, 2009, the Secretary
shall--
`(A) allocate credit in an amount to be determined by the Secretary
for--
`(I) a hybrid electric vehicle;
`(II) a plug-in electric drive vehicle;
`(III) a fuel cell electric vehicle;
`(IV) a neighborhood electric vehicle; or
`(V) a medium- or heavy-duty electric vehicle; and
`(ii) investment in qualified alternative fuel infrastructure or
nonroad equipment, as determined by the Secretary; and
`(B) allocate more than 1, but not to exceed 5, credits for investment
in an emerging technology relating to any vehicle described in
subparagraph (A) to encourage--
`(i) a reduction in petroleum demand;
`(ii) technological advancement; and
`(iii) a reduction in vehicle emissions.';
(4) in subsection (c) (as redesignated by paragraph (1)), by striking
`subsection (a)' and inserting `subsection (b)'; and
(5) by adding at the end the following:
`(f) Authorization of Appropriations- There are authorized to be
appropriated such sums as are necessary to carry out this section for each of
fiscal years 2008 through 2013.'.
SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS
MANUFACTURERS.
(a) In General- Section 712(a)(2) of the Energy Policy Act of 2005 (42
U.S.C. 16062(a)(2)) (as amended by section 132) is amended by inserting `and
loan guarantees under section 1703' after `grants'.
(b) Conforming Amendment- Section 1703(b) of the Energy Policy Act of 2005
(42 U.S.C. 16513(b)) is amended by striking paragraph (8) and inserting the
following:
`(8) Production facilities for the manufacture of fuel efficient
vehicles or parts of those vehicles, including electric drive vehicles and
advanced diesel vehicles.'.
SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.
(a) Establishment of Program- The Secretary shall establish a program to
provide guarantees of loans by private institutions for the construction of
facilities for the manufacture of advanced vehicle batteries and battery
systems that are developed and produced in the United States, including
advanced lithium ion batteries and hybrid electrical system and component
manufacturers and software designers.
(b) Requirements- The Secretary may provide a loan guarantee under
subsection (a) to an applicant if--
(1) without a loan guarantee, credit is not available to the applicant
under reasonable terms or conditions sufficient to finance the construction
of a facility described in subsection (a);
(2) the prospective earning power of the applicant and the character and
value of the security pledged provide a reasonable assurance of repayment of
the loan to be guaranteed in accordance with the terms of the loan;
and
(3) the loan bears interest at a rate determined by the Secretary to be
reasonable, taking into account the current average yield on outstanding
obligations of the United States with remaining periods of maturity
comparable to the maturity of the loan.
(c) Criteria- In selecting recipients of loan guarantees from among
applicants, the Secretary shall give preference to proposals that--
(1) meet all applicable Federal and State permitting requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest need for the
facility.
(d) Maturity- A loan guaranteed under subsection (a) shall have a maturity
of not more than 20 years.
(e) Terms and Conditions- The loan agreement for a loan guaranteed under
subsection (a) shall provide that no provision of the loan agreement may be
amended or waived without the consent of the Secretary.
(f) Assurance of Repayment- The Secretary shall require that an applicant
for a loan guarantee under subsection (a) provide an assurance of repayment in
the form of a performance bond, insurance, collateral, or other means
acceptable to the Secretary in an amount equal to not less than 20 percent of
the amount of the loan.
(g) Guarantee Fee- The recipient of a loan guarantee under subsection (a)
shall pay the Secretary an amount determined by the Secretary to be sufficient
to cover the administrative costs of the Secretary relating to the loan
guarantee.
(h) Full Faith and Credit- The full faith and credit of the United States
is pledged to the payment of all guarantees made under this section. Any such
guarantee made by the Secretary shall be conclusive evidence of the
eligibility of the loan for the guarantee with respect to principal and
interest. The validity of the guarantee shall be incontestable in the hands of
a holder of the guaranteed loan.
(i) Reports- Until each guaranteed loan under this section has been repaid
in full, the Secretary shall annually submit to Congress a report on the
activities of the Secretary under this section.
(j) Authorization of Appropriations- There are authorized to be
appropriated such sums as are necessary to carry out this section.
(k) Termination of Authority- The authority of the Secretary to issue a
loan guarantee under subsection (a) terminates on the date that is 10 years
after the date of enactment of this Act.
SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.
(a) Definitions- In this section:
(1) ADVANCED TECHNOLOGY VEHICLE- The term `advanced technology vehicle'
means a light duty vehicle that meets--
(A) the Bin 5 Tier II emission standard established in regulations
issued by the Administrator of the Environmental Protection Agency under
section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)), or a
lower-numbered Bin emission standard;
(B) any new emission standard in effect for fine particulate matter
prescribed by the Administrator under that Act (42 U.S.C. 7401 et seq.);
and
(C) at least 125 percent of the average base year combined fuel
economy for vehicles with substantially similar attributes.
(2) COMBINED FUEL ECONOMY- The term `combined fuel economy'
means--
(A) the combined city/highway miles per gallon values, as reported in
accordance with section 32904 of title 49, United States Code;
and
(B) in the case of an electric drive vehicle with the ability to
recharge from an off-board source, the reported mileage, as determined in
a manner consistent with the Society of Automotive Engineers recommended
practice for that configuration or a similar practice recommended by the
Secretary.
(3) ENGINEERING INTEGRATION COSTS- The term `engineering integration
costs' includes the cost of engineering tasks relating to--
(A) incorporating qualifying components into the design of advanced
technology vehicles; and
(B) designing tooling and equipment and developing manufacturing
processes and material suppliers for production facilities that produce
qualifying components or advanced technology vehicles.
(4) QUALIFYING COMPONENTS- The term `qualifying components' means
components that the Secretary determines to be--
(A) designed for advanced technology vehicles; and
(B) installed for the purpose of meeting the performance requirements
of advanced technology vehicles.
(b) Advanced Vehicles Manufacturing Facility- The Secretary shall provide
facility funding awards under this section to automobile manufacturers and
component suppliers to pay not more than 30 percent of the cost of--
(1) reequipping, expanding, or establishing a manufacturing facility in
the United States to produce--
(A) qualifying advanced technology vehicles; or
(B) qualifying components; and
(2) engineering integration performed in the United States of qualifying
vehicles and qualifying components.
(c) Period of Availability- An award under subsection (b) shall apply
to--
(1) facilities and equipment placed in service before December 30, 2020;
and
(2) engineering integration costs incurred during the period beginning
on the date of enactment of this Act and ending on December 30, 2020.
(1) IN GENERAL- Not later than 1 year after the date of enactment of
this Act, and subject to the availability of appropriated funds, the
Secretary shall carry out a program to provide a total of not more than
$25,000,000,000 in loans to eligible individuals and entities (as determined
by the Secretary) for the costs of activities described in subsection
(b).
(2) APPLICATION- An applicant for a loan under this subsection shall
submit to the Secretary an application at such time, in such manner, and
containing such information as the Secretary may require, including a
written assurance that--
(A) all laborers and mechanics employed by contractors or
subcontractors during construction, alteration, or repair that is
financed, in whole or in part, by a loan under this section shall be paid
wages at rates not less than those prevailing on similar construction in
the locality, as determined by the Secretary of Labor in accordance with
sections 3141-3144, 3146, and 3147 of title 40, United States Code;
and
(B) the Secretary of Labor shall, with respect to the labor standards
described in this paragraph, have the authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and section 3145
of title 40, United States Code.
(3) SELECTION OF ELIGIBLE PROJECTS- The Secretary shall select eligible
projects to receive loans under this subsection in cases in which, as
determined by the Secretary, the award recipient--
(A) is financially viable without the receipt of additional Federal
funding associated with the proposed project;
(B) will provide sufficient information to the Secretary for the
Secretary to ensure that the qualified investment is expended efficiently
and effectively; and
(C) has met such other criteria as may be established and published by
the Secretary.
(4) RATES, TERMS, AND REPAYMENT OF LOANS- A loan provided under this
subsection--
(A) shall have an interest rate that, as of the date on which the loan
is made, is equal to the cost of funds to the Department of the Treasury
for obligations of comparable maturity;
(B) shall have a term equal to the lesser of--
(i) the projected life, in years, of the eligible project to be
carried out using funds from the loan, as determined by the Secretary;
and
(C) may be subject to a deferral in repayment for not more than 5
years after the date on which the eligible project carried out using funds
from the loan first begins operations, as determined by the Secretary;
and
(D) shall be made by the Federal Financing Bank.
(e) Improvement- The Secretary shall issue regulations that require that,
in order for an automobile manufacturer to be eligible for an award or loan
under this section during a particular year, the adjusted average fuel economy
of the manufacturer for light duty vehicles produced by the manufacturer
during the most recent year for which data are available shall be not less
than the average fuel economy for all light duty vehicles of the manufacturer
for model year 2005. In order to determine fuel economy baselines for
eligibility of a new manufacturer or a manufacturer that has not produced
previously produced equivalent vehicles, the Secretary may substitute industry
averages.
(f) Fees- Administrative costs shall be no more than $100,000 or 10 basis
point of the loan.
(g) Priority- The Secretary shall, in making awards or loans to those
manufacturers that have existing facilities, give priority to those facilities
that are oldest or have been in existence for at least 20 years. Such
facilities can currently be sitting idle.
(h) Set Aside for Small Automobile Manufacturers and Component
Suppliers-
(1) DEFINITION OF COVERED FIRM- In this subsection, the term `covered
firm' means a firm that--
(A) employs less than 500 individuals; and
(B) manufactures automobiles or components of automobiles.
(2) SET ASIDE- Of the amount of funds that are used to provide awards
for each fiscal year under subsection (b), the Secretary shall use not less
than 10 percent to provide awards to covered firms or consortia led by a
covered firm.
(i) Authorization of Appropriations- There are authorized to be
appropriated such sums as are necessary to carry out this section for each of
fiscal years 2008 through 2012.
Subtitle C--Federal Vehicle Fleets
SEC. 141. FEDERAL VEHICLE FLEETS.
Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is
amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:
`(f) Vehicle Emission Requirements-
`(1) DEFINITIONS- In this subsection:
`(A) FEDERAL AGENCY- The term `Federal agency' does not include any
office of the legislative branch, except that it does include the House of
Representatives with respect to an acquisition described in paragraph
(2)(C).
`(B) MEDIUM DUTY PASSENGER VEHICLE- The term `medium duty passenger
vehicle' has the meaning given that term section 523.2 of title 49 of the
Code of Federal Regulations, as in effect on the date of enactment of this
paragraph.
`(C) Member's REPRESENTATIONAL ALLOWANCE- The term `Member's
Representational Allowance' means the allowance described in section
101(a) of the House of Representatives Administrative Reform Technical
Corrections Act (2 U.S.C. 57b(a)).
`(A) IN GENERAL- Except as provided in subparagraph (B), no Federal
agency shall acquire a light duty motor vehicle or medium duty passenger
vehicle that is not a low greenhouse gas emitting vehicle.
`(B) EXCEPTION- The prohibition in subparagraph (A) shall not apply to
acquisition of a vehicle if the head of the agency certifies in writing,
in a separate certification for each individual vehicle purchased,
either--
`(i) that no low greenhouse gas emitting vehicle is available to
meet the functional needs of the agency and details in writing the
functional needs that could not be met with a low greenhouse gas
emitting vehicle; or
`(ii) that the agency has taken specific alternative more
cost-effective measures to reduce petroleum consumption
that--
`(I) have reduced a measured and verified quantity of greenhouse
gas emissions equal to or greater than the quantity of greenhouse gas
reductions that would have been achieved through acquisition of a low
greenhouse gas emitting vehicle over the lifetime of the vehicle;
or
`(II) will reduce each year a measured and verified quantity of
greenhouse gas emissions equal to or greater than the quantity of
greenhouse gas reductions that would have been achieved each year
through acquisition of a low greenhouse gas emitting
vehicle.
`(C) SPECIAL RULE FOR VEHICLES PROVIDED BY FUNDS CONTAINED IN MEMBERS'
REPRESENTATIONAL ALLOWANCE- This paragraph shall apply to the acquisition
of a light duty motor vehicle or medium duty passenger vehicle using any
portion of a Member's Representational Allowance, including an acquisition
under a long-term lease.
`(A) IN GENERAL- Each year, the Administrator of the Environmental
Protection Agency shall issue guidance identifying the makes and model
numbers of vehicles that are low greenhouse gas emitting
vehicles.
`(B) CONSIDERATION- In identifying vehicles under subparagraph (A),
the Administrator shall take into account the most stringent standards for
vehicle greenhouse gas emissions applicable to and enforceable against
motor vehicle manufacturers for vehicles sold anywhere in the United
States.
`(C) REQUIREMENT- The Administrator shall not identify any vehicle as
a low greenhouse gas emitting vehicle if the vehicle emits greenhouse
gases at a higher rate than such standards allow for the manufacturer's
fleet average grams per mile of carbon dioxide-equivalent emissions for
that class of vehicle, taking into account any emissions allowances and
adjustment factors such standards provide.'.
SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.
Part J of title III of the Energy Policy and Conservation Act (42 U.S.C.
6374 et seq.) is amended by adding at the end the following:
`SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.
`(a) Mandatory Reduction in Petroleum Consumption-
`(1) IN GENERAL- Not later than 18 months after the date of enactment of
this section, the Secretary shall issue regulations for Federal fleets
subject to section 400AA to require that, beginning in fiscal year 2010,
each Federal agency shall reduce petroleum consumption and increase
alternative fuel consumption each year by an amount necessary to meet the
goals described in paragraph (2).
`(2) GOALS- The goals of the requirements under paragraph (1) are that
not later than October 1, 2015, and for each year thereafter, each Federal
agency shall achieve at least a 20 percent reduction in annual petroleum
consumption and a 10 percent increase in annual alternative fuel
consumption, as calculated from the baseline established by the Secretary
for fiscal year 2005.
`(3) MILESTONES- The Secretary shall include in the regulations
described in paragraph (1)--
`(A) interim numeric milestones to assess annual agency progress
towards accomplishing the goals described in that paragraph; and
`(B) a requirement that agencies annually report on progress towards
meeting each of the milestones and the 2015 goals.
`(A) IN GENERAL- The regulations under subsection (a) shall require
each Federal agency to develop a plan, and implement the measures
specified in the plan by dates specified in the plan, to meet the required
petroleum reduction levels and the alternative fuel consumption increases,
including the milestones specified by the Secretary.
`(B) INCLUSIONS- The plan shall--
`(i) identify the specific measures the agency will use to meet the
requirements of subsection (a)(2); and
`(ii) quantify the reductions in petroleum consumption or increases
in alternative fuel consumption projected to be achieved by each measure
each year.
`(2) MEASURES- The plan may allow an agency to meet the required
petroleum reduction level through--
`(A) the use of alternative fuels;
`(B) the acquisition of vehicles with higher fuel economy, including
hybrid vehicles, neighborhood electric vehicles, electric vehicles, and
plug-in hybrid vehicles if the vehicles are commercially
available;
`(C) the substitution of cars for light trucks;
`(D) an increase in vehicle load factors;
`(E) a decrease in vehicle miles traveled;
`(F) a decrease in fleet size; and
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF
BIOFUELS
Subtitle A--Renewable Fuel Standard
SEC. 201. DEFINITIONS.
Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is amended to
read as follows:
`(1) DEFINITIONS- In this section:
`(A) ADDITIONAL RENEWABLE FUEL- The term `additional renewable fuel'
means fuel that is produced from renewable biomass and that is used to
replace or reduce the quantity of fossil fuel present in home heating oil
or jet fuel.
`(i) IN GENERAL- The term `advanced biofuel' means renewable fuel,
other than ethanol derived from corn starch, that has lifecycle
greenhouse gas emissions, as determined by the Administrator, after
notice and opportunity for comment, that are at least 50 percent less
than baseline lifecycle greenhouse gas emissions.
`(ii) INCLUSIONS- The types of fuels eligible for consideration as
`advanced biofuel' may include any of the following:
`(I) Ethanol derived from cellulose, hemicellulose, or
lignin.
`(II) Ethanol derived from sugar or starch (other than corn
starch).
`(III) Ethanol derived from waste material, including crop
residue, other vegetative waste material, animal waste, and food waste
and yard waste.
`(IV) Biomass-based diesel.
`(V) Biogas (including landfill gas and sewage waste treatment
gas) produced through the conversion of organic matter from renewable
biomass.
`(VI) Butanol or other alcohols produced through the conversion of
organic matter from renewable biomass.
`(VII) Other fuel derived from cellulosic biomass.
`(C) BASELINE LIFECYCLE GREENHOUSE GAS EMISSIONS- The term `baseline
lifecycle greenhouse gas emissions' means the average lifecycle greenhouse
gas emissions, as determined by the Administrator, after notice and
opportunity for comment, for gasoline or diesel (whichever is being
replaced by the renewable fuel) sold or distributed as transportation fuel
in 2005.
`(D) BIOMASS-BASED DIESEL- The term `biomass-based diesel' means
renewable fuel that is biodiesel as defined in section 312(f) of the
Energy Policy Act of 1992 (42 U.S.C. 13220(f)) and that has lifecycle
greenhouse gas emissions, as determined by the Administrator, after notice
and opportunity for comment, that are at least 50 percent less than the
baseline lifecycle greenhouse gas emissions. Notwithstanding the preceding
sentence, renewable fuel derived from co-processing biomass with a
petroleum feedstock shall be advanced biofuel if it meets the requirements
of subparagraph (B), but is not biomass-based diesel.
`(E) CELLULOSIC BIOFUEL- The term `cellulosic biofuel' means renewable
fuel derived from any cellulose, hemicellulose, or lignin that is derived
from renewable biomass and that has lifecycle greenhouse gas emissions, as
determined by the Administrator, that are at least 60 percent less than
the baseline lifecycle greenhouse gas emissions.
`(F) CONVENTIONAL BIOFUEL- The term `conventional biofuel' means
renewable fuel that is ethanol derived from corn starch.
`(G) GREENHOUSE GAS- The term `greenhouse gas' means carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, sulfur
hexafluoride. The Administrator may include any other
anthropogenically-emitted gas that is determined by the Administrator,
after notice and comment, to contribute to global warming.
`(H) LIFECYCLE GREENHOUSE GAS EMISSIONS- The term `lifecycle
greenhouse gas emissions' means the aggregate quantity of greenhouse gas
emissions (including direct emissions and significant indirect emissions
such as significant emissions from land use changes), as determined by the
Administrator, related to the full fuel lifecycle, including all stages of
fuel and feedstock production and distribution, from feedstock generation
or extraction through the distribution and delivery and use of the
finished fuel to the ultimate consumer, where the mass values for all
greenhouse gases are adjusted to account for their relative global warming
potential.
`(I) RENEWABLE BIOMASS- The term `renewable biomass' means each of the
following:
`(i) Planted crops and crop residue harvested from agricultural land
cleared or cultivated at any time prior to the enactment of this
sentence that is either actively managed or fallow, and
nonforested.
`(ii) Planted trees and tree residue from actively managed tree
plantations on non-federal land cleared at any time prior to enactment
of this sentence, including land belonging to an Indian tribe or an
Indian individual, that is held in trust by the United States or subject
to a restriction against alienation imposed by the United
States.
`(iii) Animal waste material and animal byproducts.
`(iv) Slash and pre-commercial thinnings that are from non-federal
forestlands, including forestlands belonging to an Indian tribe or an
Indian individual, that are held in trust by the United States or
subject to a restriction against alienation imposed by the United
States, but not forests or forestlands that are ecological communities
with a global or State ranking of critically imperiled, imperiled, or
rare pursuant to a State Natural Heritage Program, old growth forest, or
late successional forest.
`(v) Biomass obtained from the immediate vicinity of buildings and
other areas regularly occupied by people, or of public infrastructure,
at risk from wildfire.
`(vii) Separated yard waste or food waste, including recycled
cooking and trap grease.
`(J) RENEWABLE FUEL- The term `renewable fuel' means fuel that is
produced from renewable biomass and that is used to replace or reduce the
quantity of fossil fuel present in a transportation fuel.
`(K) SMALL REFINERY- The term `small refinery' means a refinery for
which the average aggregate daily crude oil throughput for a calendar year
(as determined by dividing the aggregate throughput for the calendar year
by the number of days in the calendar year) does not exceed 75,000
barrels.
`(L) TRANSPORTATION FUEL- The term `transportation fuel' means fuel
for use in motor vehicles, motor vehicle engines, nonroad vehicles, or
nonroad engines (except for ocean-going vessels).'.
SEC. 202. RENEWABLE FUEL STANDARD.
(a) Renewable Fuel Program- Paragraph (2) of section 211(o) (42 U.S.C.
7545(o)(2)) of the Clean Air Act is amended as follows:
(1) REGULATIONS- Clause (i) of subparagraph (A) is amended by adding the
following at the end thereof: `Not later than 1 year after the date of
enactment of this sentence, the Administrator shall revise the regulations
under this paragraph to ensure that transportation fuel sold or introduced
into commerce in the United States (except in noncontiguous States or
territories), on an annual average basis, contains at least the applicable
volume of renewable fuel, advanced biofuel, cellulosic biofuel, and
biomass-based diesel, determined in accordance with subparagraph (B) and, in
the case of any such renewable fuel produced from new facilities that
commence construction after the date of enactment of this sentence, achieves
at least a 20 percent reduction in lifecycle greenhouse gas emissions
compared to baseline lifecycle greenhouse gas emissions.'.
(2) APPLICABLE VOLUMES OF RENEWABLE FUEL- Subparagraph (B) is amended to
read as follows:
`(i) CALENDAR YEARS AFTER 2005-
`(I) RENEWABLE FUEL- For the purpose of subparagraph (A), the
applicable volume of renewable fuel for the calendar years 2006
through 2022 shall be determined in accordance with the following
table:
Applicable volume of renewable fuel
`Calendar year:
(in billions of gallons):
2006
--4.0
2007
--4.7
2008
--9.0
2009
--11.1
2010
--12.95
2011
--13.95
2012
--15.2
2013
--16.55
2014
--18.15
2015
--20.5
2016
--22.25
2017
--24.0
2018
--26.0
2019
--28.0
2020
--30.0
2021
--33.0
2022
--36.0
`(II) ADVANCED BIOFUEL- For the purpose of subparagraph (A), of
the volume of renewable fuel required under subclause (I), the
applicable volume of advanced biofuel for the calendar years 2009
through 2022 shall be determined in accordance with the following
table:
Applicable volume of advanced biofuel
`Calendar year:
(in billions of gallons):
2009
--0.6
2010
--0.95
2011
--1.35
2012
--2.0
2013
--2.75
2014
--3.75
2015
--5.5
2016
--7.25
2017
--9.0
2018
--11.0
2019
--13.0
2020
--15.0
2021
--18.0
2022
--21.0
`(III) CELLULOSIC BIOFUEL- For the purpose of subparagraph (A), of
the volume of advanced biofuel required under subclause (II), the
applicable volume of cellulosic biofuel for the calendar years 2010
through 2022 shall be determined in accordance with the following
table:
Applicable volume of cellulosic biofuel
`Calendar year:
(in billions of gallons):
2010
--0.1
2011
--0.25
2012
--0.5
2013
--1.0
2014
--1.75
2015
--3.0
2016
--4.25
2017
--5.5
2018
--7.0
2019
--8.5
2020
--10.5
2021
--13.5
2022
--16.0
`(IV) BIOMASS-BASED DIESEL- For the purpose of subparagraph (A),
of the volume of advanced biofuel required under subclause (II), the
applicable volume of biomass-based diesel for the calendar years 2009
through 2012 shall be determined in accordance with the following
table:
Applicable volume of biomass-based diesel
`Calendar year:
(in billions of gallons):
2009
--0.5
2010
--0.65
2011
--0.80
2012
--1.0
`(ii) OTHER CALENDAR YEARS- For the purposes of subparagraph (A),
the applicable volumes of each fuel specified in the tables in clause
(i) for calendar years after the calendar years specified in the tables
shall be determined by the Administrator, in coordination with the
Secretary of Energy and the Secretary of Agriculture, based on a review
of the implementation of the program during calendar years specified in
the tables, and an analysis of--
`(I) the impact of the production and use of renewable fuels on
the environment, including on air quality, climate change, conversion
of wetlands, ecosystems, wildlife habitat, water quality, and water
supply;
`(II) the impact of renewable fuels on the energy security of the
United States;
`(III) the expected annual rate of future commercial production of
renewable fuels, including advanced biofuels in each category
(cellulosic biofuel and biomass-based diesel);
`(IV) the impact of renewable fuels on the infrastructure of the
United States, including deliverability of materials, goods, and
products other than renewable fuel, and the sufficiency of
infrastructure to deliver and use renewable fuel;
`(V) the impact of the use of renewable fuels on the cost to
consumers of transportation fuel and on the cost to transport goods;
and
`(VI) the impact of the use of renewable fuels on other factors,
including job creation, the price and supply of agricultural
commodities, rural economic development, and food
prices.
The Administrator shall promulgate rules establishing the applicable
volumes under this clause no later than 14 months before the first year
for which such applicable volume will apply.
`(iii) APPLICABLE VOLUME OF ADVANCED BIOFUEL- For the purpose of
making the determinations in clause (ii), for each calendar year, the
applicable volume of advanced biofuel shall be at least the same
percentage of the applicable volume of renewable fuel as in calendar
year 2022.
`(iv) APPLICABLE VOLUME OF CELLULOSIC BIOFUEL- For the purpose of
making the determinations in clause (ii), for each calendar year, the
applicable volume of cellulosic biofuel established by the Administrator
shall be based on the assumption that the Administrator will not need to
issue a waiver for such years under paragraph (7)(D).
`(v) MINIMUM APPLICABLE VOLUME OF BIOMASS-BASED DIESEL- For the
purpose of making the determinations in clause (ii), the applicable
volume of biomass-based diesel shall not be less than the applicable
volume listed in clause (i)(IV) for calendar year 2012.'.
(b) Applicable Percentages- Paragraph (3) of section 211(o) of the Clean
Air Act (42 U.S.C. 7545(o)(3)) is amended as follows:
(1) In subparagraph (A), by striking `2011' and inserting `2021'.
(2) In subparagraph (A), by striking `gasoline' and inserting
`transportation fuel, biomass-based diesel, and cellulosic biofuel'.
(3) In subparagraph (B), by striking `2012' and inserting `2021' in
clause (i).
(4) In subparagraph (B), by striking `gasoline' and inserting
`transportation fuel' in clause (ii)(II).
(c) Modification of Greenhouse Gas Percentages- Paragraph (4) of section
211(o) of the Clean Air Act (42 U.S.C. 7545(o)(4)) is amended to read as
follows:
`(4) MODIFICATION OF GREENHOUSE GAS REDUCTION PERCENTAGES-
`(A) IN GENERAL- The Administrator may, in the regulations under the
last sentence of paragraph (2)(A)(i), adjust the 20 percent, 50 percent,
and 60 percent reductions in lifecycle greenhouse gas emissions specified
in paragraphs (2)(A)(i) (relating to renewable fuel), (1)(D) (relating to
biomass-based diesel), (1)(B)(i) (relating to advanced biofuel), and
(1)(E) (relating to cellulosic biofuel) to a lower percentage. For the 50
and 60 percent reductions, the Administrator may make such an adjustment
only if he determines that generally such reduction is not commercially
feasible for fuels made using a variety of feedstocks, technologies, and
processes to meet the applicable reduction.
`(B) AMOUNT OF ADJUSTMENT- In promulgating regulations under this
paragraph, the specified 50 percent reduction in greenhouse gas emissions
from advanced biofuel and in biomass-based diesel may not be reduced below
40 percent. The specified 20 percent reduction in greenhouse gas emissions
from renewable fuel may not be reduced below 10 percent, and the specified
60 percent reduction in greenhouse gas emissions from cellulosic biofuel
may not be reduced below 50 percent.
`(C) ADJUSTED REDUCTION LEVELS- An adjustment under this paragraph to
a percent less than the specified 20 percent greenhouse gas reduction for
renewable fuel shall be the minimum possible adjustment, and the adjusted
greenhouse gas reduction shall be established by the Administrator at the
maximum achievable level, taking cost in consideration, for natural gas
fired corn-based ethanol plants, allowing for the use of a variety of
technologies and processes. An adjustment in the 50 or 60 percent
greenhouse gas levels shall be the minimum possible adjustment for the
fuel or fuels concerned, and the adjusted greenhouse gas reduction shall
be established at the maximum achievable level, taking cost in
consideration, allowing for the use of a variety of feedstocks,
technologies, and processes.
`(D) 5-year review- Whenever the Administrator makes any adjustment
under this paragraph, not later than 5 years thereafter he shall review
and revise (based upon the same criteria and standards as required for the
initial adjustment) the regulations establishing the adjusted
level.
`(E) SUBSEQUENT ADJUSTMENTS- After the Administrator has promulgated a
final rule under the last sentence of paragraph (2)(A)(i) with respect to
the method of determining lifecycle greenhouse gas emissions, except as
provided in subparagraph (D), the Administrator may not adjust the percent
greenhouse gas reduction levels unless he determines that there has been a
significant change in the analytical methodology used for determining the
lifecycle greenhouse gas emissions. If he makes such determination, he may
adjust the 20, 50, or 60 percent reduction levels through rulemaking using
the criteria and standards set forth in this paragraph.
`(F) LIMIT ON UPWARD ADJUSTMENTS- If, under subparagraph (D) or (E),
the Administrator revises a percent level adjusted as provided in
subparagraphs (A), (B), and (C) to a higher percent, such higher percent
may not exceed the applicable percent specified in paragraph (2)(A)(i),
(1)(D), (1)(B)(i), or (1)(E).
`(G) APPLICABILITY OF ADJUSTMENTS- If the Administrator adjusts, or
revises, a percent level referred to in this paragraph or makes a change
in the analytical methodology used for determining the lifecycle
greenhouse gas emissions, such adjustment, revision, or change (or any
combination thereof) shall only apply to renewable fuel from new
facilities that commence construction after the effective date of such
adjustment, revision, or change.'.
(d) Credits for Additional Renewable Fuel- Paragraph (5) of section 211(o)
of the Clean Air Act (42 U.S.C. 7545(o)(5)) is amended by adding the following
new subparagraph at the end thereof:
`(E) CREDITS FOR ADDITIONAL RENEWABLE FUEL- The Administrator may
issue regulations providing: (i) for the generation of an appropriate
amount of credits by any person that refines, blends, or imports
additional renewable fuels specified by the Administrator; and (ii) for
the use of such credits by the generator, or the transfer of all or a
portion of the credits to another person, for the purpose of complying
with paragraph (2).'.
(1) IN GENERAL- Paragraph (7)(A) of section 211(o) of the Clean Air Act
(42 U.S.C. 7545(o)(7)(A)) is amended by inserting `, by any person subject
to the requirements of this subsection, or by the Administrator on his own
motion' after `one or more States' in subparagraph (A) and by striking out
`State' in subparagraph (B).
(2) CELLULOSIC BIOFUEL- Paragraph (7) of section 211(o) of the Clean Air
Act (42 U.S.C. 7545(o)(7)) is amended by adding the following at the end
thereof:
`(D) CELLULOSIC BIOFUEL- (i) For any calendar year for which the
projected volume of cellulosic biofuel production is less than the minimum
applicable volume established under paragraph (2)(B), as determined by the
Administrator based on the estimate provided under paragraph (3)(A), not
later than November 30 of the preceding calendar year, the Administrator
shall reduce the applicable volume of cellulosic biofuel required under
paragraph (2)(B) to the projected volume available during that calendar
year. For any calendar year in which the Administrator makes such a
reduction, the Administrator may also reduce the applicable volume of
renewable fuel and advanced biofuels requirement established under
paragraph (2)(B) by the same or a lesser volume.
`(ii) Whenever the Administrator reduces the minimum cellulosic
biofuel volume under this subparagraph, the Administrator shall make
available for sale cellulosic biofuel credits at the higher of $0.25 per
gallon or the amount by which $3.00 per gallon exceeds the average
wholesale price of a gallon of gasoline in the United States. Such amounts
shall be adjusted for inflation by the Administrator for years after
2008.
`(iii) Eighteen months after the date of enactment of this
subparagraph, the Administrator shall promulgate regulations to govern the
issuance of credits under this subparagraph. The regulations shall set
forth the method for determining the exact price of credits in the event
of a waiver. The price of such credits shall not be changed more
frequently than once each quarter. These regulations shall include such
provisions, including limiting the credits' uses and useful life, as the
Administrator deems appropriate to assist market liquidity and
transparency, to provide appropriate certainty for regulated entities and
renewable fuel producers, and to limit any potential misuse of cellulosic
biofuel credits to reduce the use of other renewable fuels, and for such
other purposes as the Administrator determines will help achieve the goals
of this subsection. The regulations shall limit the number of cellulosic
biofuel credits for any calendar year to the minimum applicable volume (as
reduced under this subparagraph) of cellulosic biofuel for that
year.'.
(3) BIOMASS-BASED DIESEL- Paragraph (7) of section 211(o) of the Clean
Air Act (42 U.S.C. 7545(o)(7)) is amended by adding the following at the end
thereof:
`(E) BIOMASS-BASED DIESEL-
`(i) MARKET EVALUATION- The Administrator, in consultation with the
Secretary of Energy and the Secretary of Agriculture, shall periodically
evaluate the impact of the biomass-based diesel requirements established
under this paragraph on the price of diesel fuel.
`(ii) WAIVER- If the Administrator determines that there is a
significant renewable feedstock disruption or other market circumstances
that would make the price of biomass-based diesel fuel increase
significantly, the Administrator, in consultation with the Secretary of
Energy and the Secretary of Agriculture, shall issue an order to reduce,
for up to a 60-day period, the quantity of biomass-based diesel required
under subparagraph (A) by an appropriate quantity that does not exceed
15 percent of the applicable annual requirement for biomass-based
diesel. For any calendar year in which the Administrator makes a
reduction under this subparagraph, the Administrator may also reduce the
applicable volume of renewable fuel and advanced biofuels requirement
established under paragraph (2)(B) by the same or a lesser
volume.
`(iii) EXTENSIONS- If the Administrator determines that the
feedstock disruption or circumstances described in clause (ii) is
continuing beyond the 60-day period described in clause (ii) or this
clause, the Administrator, in consultation with the Secretary of Energy
and the Secretary of Agriculture, may issue an order to reduce, for up
to an additional 60-day period, the quantity of biomass-based diesel
required under subparagraph (A) by an appropriate quantity that does not
exceed an additional 15 percent of the applicable annual requirement for
biomass-based diesel.
`(F) MODIFICATION OF APPLICABLE VOLUMES- For any of the tables in
paragraph (2)(B), if the Administrator waives--
`(i) at least 20 percent of the applicable volume requirement set
forth in any such table for 2 consecutive years; or
`(ii) at least 50 percent of such volume requirement for a single
year,
the Administrator shall promulgate a rule (within 1 year after issuing
such waiver) that modifies the applicable volumes set forth in the table
concerned for all years following the final year to which the waiver
applies, except that no such modification in applicable volumes shall be
made for any year before 2016. In promulgating such a rule, the
Administrator shall comply with the processes, criteria, and standards set
forth in paragraph (2)(B)(ii).'.
SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STANDARD.
(a) In General- The Secretary of Energy, in consultation with the
Secretary of Agriculture and the Administrator of the Environmental Protection
Agency, shall enter into an arrangement with the National Academy of Sciences
under which the Academy shall conduct a study to assess the impact of the
requirements described in section 211(o) of the Clean Air Act on each industry
relating to the production of feed grains, livestock, food, forest products,
and energy.
(b) Participation- In conducting the study under this section, the
National Academy of Sciences shall seek the participation, and consider the
input, of--
(1) producers of feed grains;
(2) producers of livestock, poultry, and pork products;
(3) producers of food and food products;
(5) individuals and entities interested in issues relating to
conservation, the environment, and nutrition;
(6) users and consumers of renewable fuels;
(7) producers and users of biomass feedstocks; and
(8) land grant universities.
(c) Considerations- In conducting the study, the National Academy of
Sciences shall consider--
(1) the likely impact on domestic animal agriculture feedstocks that, in
any crop year, are significantly below current projections;
(2) policy options to alleviate the impact on domestic animal
agriculture feedstocks that are significantly below current projections;
and
(3) policy options to maintain regional agricultural and silvicultural
capability.
(d) Components- The study shall include--
(1) a description of the conditions under which the requirements
described in section 211(o) of the Clean Air Act should be suspended or
reduced to prevent adverse impacts to domestic animal agriculture feedstocks
described in subsection (c)(2) or regional agricultural and silvicultural
capability described in subsection (c)(3); and
(2) recommendations for the means by which the Federal Government could
prevent or minimize adverse economic hardships and impacts.
(e) Deadline for Completion of Study- Not later than 18 months after the
date of enactment of this Act, the Secretary shall submit to Congress a report
that describes the results of the study under this section.
(f) Periodic Reviews- Section 211(o) of the Clean Air Act is amended by
adding the following at the end thereof:
`(11) PERIODIC REVIEWS- To allow for the appropriate adjustment of the
requirements described in subparagraph (B) of paragraph (2), the
Administrator shall conduct periodic reviews of--
`(A) existing technologies;
`(B) the feasibility of achieving compliance with the requirements;
and
`(C) the impacts of the requirements described in subsection (a)(2) on
each individual and entity described in paragraph (2).'.
SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVATION IMPACTS.
(a) In General- Not later than 3 years after the enactment of this section
and every 3 years thereafter, the Administrator of the Environmental
Protection Agency, in consultation with the Secretary of Agriculture and the
Secretary of Energy, shall assess and report to Congress on the impacts to
date and likely future impacts of the requirements of section 211(o) of the
Clean Air Act on the following:
(1) Environmental issues, including air quality, effects on hypoxi