[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1926 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 1926

    To improve passenger automobile fuel economy and safety, reduce 
  greenhouse gas emissions, reduce dependence on foreign oil, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 8, 2002

Mr. Kerry (for himself and Mr. Hollings) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
    To improve passenger automobile fuel economy and safety, reduce 
  greenhouse gas emissions, reduce dependence on foreign oil, 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.

    This Act may be cited as the ``National Fuel Savings and Security 
Act of 2002''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short Title.
Sec. 2. Table of Contents.
Sec. 3. Average fuel economy standards for passenger automobiles and 
                            light trucks.
Sec. 4. Fuel economy truth in testing.
Sec. 5. Ensuring safety of passenger automobiles and light trucks.
Sec. 6. High Occupancy Vehicle exception.
Sec. 7. Credit trading program.
Sec. 8. Green labels for fuel economy.
Sec. 9. Light truck challenge.
Sec. 10. Secretary of Transportation to certify benefits.
Sec. 11. Department of Transportation engineering award program.
Sec. 12. Cooperative technology agreements.

SEC. 3. AVERAGE FUEL ECONOMY STANDARDS FOR PASSENGER AUTOMOBILES AND 
              LIGHT TRUCKS.

    (a) Increased Standards.--Section 32902 of title 49, United States 
Code, is amended--
            (1) by striking ``Non-Passenger Automobiles.--'' in 
        subsection (a) and inserting ``Prescription of Standards by 
        Regulation.--''; and
            (2) by striking ``(except passenger automobiles)'' in 
        subsection (a) and inserting ``(except passenger automobiles 
        and light trucks)'';
            (3) by striking subsection (b) and inserting the following:
    ``(b) Standards for Passenger Automobiles and Light Trucks.--
            ``(1) In general.--The Secretary of Transportation, after 
        consultation with the Administrator of the Environmental 
        Protection Agency, shall prescribe average fuel economy 
        standards for passenger automobiles and light trucks 
        manufactured by a manufacturer in each model year beginning 
        with model year 2005 in order to achieve a combined average 
        fuel economy standard for passenger automobiles and light 
        trucks for model year 2013 of at least 35 miles per gallon.
            ``(2) Annual progress toward standard required.--In 
        prescribing average fuel economy standards under paragraph (1), 
        the Secretary shall prescribe appropriate annual fuel economy 
        standard increases for passenger automobiles and light trucks 
        that--
                    ``(A) increase the applicable average fuel economy 
                standard ratably over the 9 model-year period beginning 
                with model year 2005 and ending with model year 2013;
                    ``(B) require that each manufacturer achieve--
                            ``(i) a fuel economy standard for passenger 
                        automobiles manufactured by that manufacturer 
                        of at least 33.2 miles per gallon no later than 
                        model year 2010; and
                            ``(ii) a fuel economy standard for light 
                        trucks manufacturered produced by that 
                        manufacturer of at least 26.3 miles per gallon 
                        no later than model year 2010; and
                    ``(C) for any model year within that 9 model-year 
                period does not result in an average fuel economy 
                standard lower than--
                            ``(i) 27.5 miles per gallon for passenger 
                        automobiles; or
                            ``(ii) 20.7 miles per gallon for light duty 
                        trucks.
            ``(3) Deadline for regulations.--The Secretary shall 
        promulgate the regulations required by paragraphs (1) and (2) 
        in final form no later than 18 months after the date of 
        enactment of the National Fuel Savings and Security Act of 
        2002.
            ``(4) Default standards.--If the Secretary fails to meet 
        the requirement of paragraph (3), the average fuel economy 
        standard for passenger automobiles and light trucks 
        manufactured by a manufacturer in each model year beginning 
        with model year 2005 is the average fuel economy standard set 
        forth in the following tables:

 
------------------------------------------------------------------------
                                 The average fuel economy standard for
       ``For model year                passenger automobiles is:
------------------------------------------------------------------------
MD23``2005...................  28 miles per gallon
``2006.......................  28.5 miles per gallonD23
``2007.......................  30 miles per gallonD23
``2008.......................  31 miles per gallonD23
``2009.......................  32.5 miles per gallonD23
``2010.......................  34 miles per gallonD23
``2011.......................  35 miles per gallonD23
``2012.......................  36.5 miles per gallonD23
``2013 and thereafter........  38.3 miles per gallon
------------------------------------------------------------------------


 
------------------------------------------------------------------------
                                 The average fuel economy standard for
       ``For model year                     light trucks is:
------------------------------------------------------------------------
MD23``2005...................  21.5 miles per gallon D23
``2006.......................  22.5 miles per gallonD23
``2007.......................  23.5 miles per gallonD23
``2008.......................  24.5 miles per gallonD23
``2009.......................  26 miles per gallonD23
``2010.......................  27.5 miles per gallonD23
``2011.......................  29.5 miles per gallonD23
``2012.......................  31 miles per gallonD23
``2013 and thereafter........  32 miles per gallon
------------------------------------------------------------------------

            ``(5) Combined standard for model years after model year 
        2010.--Unless the default standards under paragraph (4) are in 
        effect, for model years after model year 2010, the Secretary 
        may by rulemaking establish--
                    ``(A) separate average fuel economy standards for 
                passenger automobiles and light trucks manufactured by 
                a manufacturer; or
                    ``(B) a combined average fuel economy standard for 
                passenger automobiles and light trucks manufactured by 
                a manufacturer.'';
            (4) by striking ``the standard'' in subsection (c)(1) and 
        inserting ``a standard'';
            (5) by striking the first and last sentences of subsection 
        (c)(2); and
            (6) by striking ``(and submit the amendment to Congress 
        when required under subsection (c)(2) of this section)'' in 
        subsection (g).
    (b) Definition of Light Trucks.--
            (1) In general.--Section 32901(a) of title 49, United 
        States Code, is amended by adding at the end the following:
            ``(17) `light truck' means an automobile that the Secretary 
        decides by regulation--
                    ``(A) is manufactured primarily for transporting 
                not more than 10 individuals;
                    ``(B) is rated at not more than 10,000 pounds gross 
                vehicle weight;
                    ``(C) is not a passenger automobile; and
                    ``(D) does not fall within the exceptions from the 
                definition of `medium duty passenger vehicle' under 
                section 8601-01 of title 40, Code of Federal 
                Regulations.''.
            (2) Deadline for regulations.--The Secretary of 
        Transportation--
                    (A) shall issue proposed regulations implementing 
                the amendment made by paragraph (1) not later than 1 
                year after the date of the enactment of this Act; and
                    (B) shall issue final regulations implementing the 
                amendment not later than 18 months after the date of 
                the enactment of this Act.
            (3) Effective date.--Regulations prescribed under paragraph 
        (1) shall apply beginning with model year 2007.
    (c) Applicability of Existing Standards.--This section does not 
affect the application of section 32902 of title 49, United States 
Code, to passenger automobiles or non-passenger automobiles 
manufactured before model year 2005.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation to carry out the 
provisions of chapter 329 of title 49, United States Code, $25,000,000 
for each of fiscal years 2003 through 2015.

SEC. 4. FUEL ECONOMY TRUTH IN TESTING.

    (a) In General.--Section 32907 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(c) Improved Testing Procedures.--
            ``(1) In general.--The Administrator of the Environmental 
        Protection Agency shall conduct--
                    ``(A) an ongoing examination of the accuracy of 
                fuel economy testing of passenger automobiles and light 
                trucks by the Administrator performed in accordance 
                with the procedures in effect as of the date of 
                enactment of the National Fuel Savings and Security Act 
                of 2002 for the purpose of determining whether, and to 
                what extent, the fuel economy of passenger automobiles 
                and light trucks as tested by the Administrator differs 
                from the fuel economy reasonably to be expected from 
                those automobiles and trucks when driven by average 
                drivers under average driving conditions; and
                    ``(B) an assessment of the extent to which fuel 
                economy changes during the life of passenger 
                automobiles and light trucks.
            ``(2) Report.--The Administrator of the Environmental 
        Protection Agency shall, within 12 months after the date of 
        enactment of the National Fuel Savings and Security Act of 2002 
        and annually thereafter, submit to the Committee on Commerce, 
        Science, and Transportation of the Senate and the Committee on 
        Commerce of the House of Representatives a report on the 
        results of the study required by paragraph (1). The report 
        shall include--
                    ``(A) a comparison between--
                            ``(i) fuel economy measured, for each model 
                        in the applicable model year, through testing 
                        procedures in effect as of the date of 
                        enactment of the National Fuel Savings and 
                        Security Act of 2002; and
                            ``(ii) fuel economy of such passenger 
                        automobiles and light trucks during actual on-
                        road performance, as determined under that 
                        paragraph;
                    ``(B) a statement of the percentage difference, if 
                any, between actual on-road fuel economy and fuel 
                economy measured by test procedures of the 
                Environmental Protection Administration; and
                    ``(C) a plan to reduce, by model year 2015, the 
                percentage difference identified under subparagraph (B) 
                by using uniform test methods that reflect actual on-
                the-road fuel economy consumers experience under normal 
                driving conditions to no greater than 5 percent.''.

SEC. 5. ENSURING SAFETY OF PASSENGER AUTOMOBILES AND LIGHT TRUCKS.

    (a) In General.--The Secretary of Transportation shall exercise 
such authority under Federal law as the Secretary may have to ensure 
that--
            (1) passenger automobiles and light trucks (as those terms 
        are defined in section 32901 of title 49, United States Code) 
        are safe;
            (2) progress is made in improving the overall safety of 
        passenger automobiles and light trucks; and
            (3) progress is made in maximizing United States 
        employment.
    (b) Improved Crashworthiness.--Subchapter II of chapter 301 of 
title 49, United States Code, is amended by adding at the end the 
following:
``Sec. 30128. Improved crashworthiness
    ``(a) Rollovers.--Within 3 years after the date of enactment of the 
National Fuel Savings and Security Act of 2002, the Secretary of 
Transportation, through the National Highway Traffic Safety 
Administration, shall prescribe a motor vehicle safety standard under 
this chapter for rollover crashworthiness standards that includes--
            ``(1) dynamic roof crush standards;
            ``(2) improved seat structure and safety belt design;
            ``(3) side impact head protection airbags; and
            ``(4) roof injury protection measures.
    ``(b) Smaller Vehicle Crash Protection.--Within 3 years after the 
date of enactment of the National Fuel Savings and Security Act of 
2002, the Secretary, through the National Highway Traffic Safety 
Administration, shall prescribe a motor vehicle safety standard under 
this chapter that will reduce the average amount of damage suffered by 
passenger automobiles (as defined in section 32901(a)(16)) in 
collisions with light trucks (as defined in section 32901(a)(17)) by 30 
percent, based on collisions between vehicles of the model years to 
which the standard applies as compared to vehicles of model year 
2002.''.
    (c) Conforming Amendment.--The chapter analysis for chapter 301 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 30127 the following:

``30128. Improved crashworthiness.''.

SEC. 6. HIGH OCCUPANCY VEHICLE EXCEPTION.

    (a) In General.--Notwithstanding section 102(a)(1) of title 23, 
United States Code, a State may, for the purpose of promoting energy 
conservation, permit a vehicle with fewer than 2 occupants to operate 
in high occupancy vehicle lanes if it is a hybrid vehicle or is 
certified by the Secretary of Transportation, after consultation with 
the Administrator of the Environmental Protection Agency, to be a 
vehicle that runs only on an alternative fuel.
    (b) Hybrid Vehicle Defined.--In this section, the term ``hybrid 
vehicle'' means a motor vehicle--
            (1) which--
                    (A) draws propulsion energy from onboard sources of 
                stored energy which are both--
                            (i) an internal combustion or heat engine 
                        using combustible fuel; and
                            (ii) a rechargeable energy storage system; 
                        or
                    (B) recovers kinetic energy through regenerative 
                braking and provides at least 13 percent maximum power 
                from the electrical storage device;
            (2) which, in the case of a passenger automobile or light 
        truck--
                    (A) for 2002 and later model vehicles, has received 
                a certificate of conformity under section 206 of the 
                Clean Air Act (42 U.S.C. 7525) and meets or exceeds the 
                equivalent qualifying California low emission vehicle 
                standard under section 243(e)(2) of the Clean Air Act 
                (42 U.S.C. 7583(e)(2)) for that make and model year; 
                and
                    (B) for 2004 and later model vehicles, has received 
                a certificate that such vehicle meets the Tier II 
                emission level established in regulations prescribed by 
                the Administrator of the Environmental Protection 
                Agency under section 202(i) of the Clean Air Act (42 
                U.S.C. 7521(i)) for that make and model year vehicle; 
                and
            (3) which is made by a manufacturer.
    (c) Alternative Fuel Defined.--In this section, the term 
``alternative fuel'' has the meaning such term has under section 301(2) 
of the Energy Policy Act of 1992 (42 U.S.C. 13211(2)).

SEC. 7. CREDIT TRADING PROGRAM.

    (a) In General.--Section 32903 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(g) Vehicle Credit Trading System.--
            ``(1) In general.--The Secretary of Transportation, with 
        technical assistance from the Administrator of the 
        Environmental Protection Agency, shall establish a system under 
        which manufacturers with credits under this section may sell 
        those credits to other manufacturers.
            ``(2) Purposes.--The purposes of the system are:
                    ``(A) Reducing the adverse effects of inefficient 
                consumption of fuel by passenger automobiles and light 
                trucks.
                    ``(B) Accelerating introduction of alternative 
                technology fuel vehicles into use in the United States.
                    ``(C) Encouraging manufacturers to exceed the 
                average fuel economy standards established by section 
                32902.
                    ``(D) Reducing emissions of carbon dioxide by 
                passenger automobiles and light trucks.
                    ``(E) Decreasing the United States' consumption of 
                oil as vehicular fuel.
                    ``(F) Providing manufacturers flexibility in 
                meeting the average fuel economy standards established 
                by section 32902.
                    ``(G) Increasing consumer choice.
            ``(3) Program requirements.--The system established under 
        paragraph (1) shall--
                    ``(A) use a method for establishing an accurate 
                baseline using units of gallons of fuel consumed per 
                100 miles for model year 2002;
                    ``(B) make only credits accrued after model year 
                2004 eligible for transfer or sale;
                    ``(C) use techniques and methods that minimize 
                reporting costs for manufacturers;
                    ``(D) be based on vehicle classifications and fuel 
                consumption ratings developed from data maintained by 
                the Environmental Protection Agency;
                    ``(E) provide for monitoring and verification of 
                credit purchases to ensure that there is no double-
                counting of credits;
                    ``(F) require participating manufacturers to report 
                monthly sales of vehicles to the Administrator of the 
                Environmental Protection Agency; and
                    ``(G) make manufacturer-specific credit, transfer, 
                sale, and purchase information publicly available 
                through annual reports and monthly posting of 
                transactions on the Internet.
            ``(4) Credits may be traded between passenger automobiles 
        and light trucks and between domestic and import fleets.--The 
        system shall provide that credits earned under this section--
                    ``(A) with respect to passenger automobiles may be 
                applied with respect to light trucks;
                    ``(B) with respect to light trucks may be applied 
                with respect to passenger automobiles;
                    ``(C) with respect to passenger automobiles 
                manufactured domestically may be applied with respect 
                to passenger automobiles not manufactured domestically; 
                and
                    ``(D) with respect to passenger automobiles not 
                manufactured domestically may be applied with respect 
                to passenger automobiles manufactured domestically.
            ``(5) Report.--The Secretary and the Administrator shall 
        jointly submit an annual report to the Congress--
                    ``(A) describing the effectiveness of the credits 
                provided by this subsection achieving the purposes 
                described in paragraph (2); and
                    ``(B) setting forth a full accounting of all 
                credits, transfers, sales, and purchases for the most 
                recent model year for which data is available.''.
    (b) No Carryback of Credits.--Section 32903(a) of title 49, United 
States Code, is amended--
            (1) by striking ``applied to--'' and inserting ``applied--
        '';
            (2) by inserting ``for model years before model year 2006, 
        to'' in paragraph (1) before ``any'';
            (3) by striking ``and'' after the semicolon in paragraph 
        (1);
            (4) by striking ``earned.'' in paragraph (2) and inserting 
        ``earned; and''; and
            (5) by adding at the end the following:
            ``(3) for model years after 2001, in accordance with the 
        vehicle credit trading system established under subsection (g), 
        to any of the 3 consecutive model years immediately after the 
        model year for which the credit was earned.''.
    (d) Use of Credit Value To Calculate Civil Penalty.--Section 
32912(b) is amended--
            (1) by inserting ``and is unable to purchase sufficient 
        credits under section 32903(g) to comply with the standard'' 
        after ``title'' the first place it appears; and
            (2) by striking all after ``penalty'' and inserting ``of 
        the greater of--
            ``(1) an amount determined by multiplying--
                    ``(A) the number of credits necessary to enable the 
                manufacturer to meet that standard; by
                    ``(B) the weighted average open market price of a 
                credit under section 32903(g) for the next preceding 
                model year; or
            ``(2) $5 multiplied by each .1 of a mile a gallon by which 
        the applicable average fuel economy standard under section 
        32902 exceeds the average fuel economy--
                    ``(A) calculated under section 32904(a)(1)(A) or 
                (B) for automobiles to which the standard applied 
                manufactured by the manufacturer during the model year;
                    ``(B) multiplied by the number of those 
                automobiles; and
                    ``(C) reduced by the credits available to the 
                manufacturer under section 32903 for the model year.''.
    (c) Conforming Amendments.--Section 32903 of title 49, United 
States Code, is amended--
            (1) by inserting ``or light trucks'' after ``passenger 
        automobiles'' each place it appears in subsection (c);
            (2) by inserting after ``manufacturer.'' in subsection (d) 
        ``Credits earned with respect to passenger automobiles may be 
        used with respect to nonpassenger automobiles and light duty 
        trucks.''; and
            (3) by inserting after ``manufacturer.'' in subsection (e) 
        ``Credits earned with respect to non-passenger automobiles or 
        light trucks may be used with respect to passenger 
        automobiles.''.

SEC. 8. GREEN LABELS FOR FUEL ECONOMY.

    Section 32908 of title 49, United States Code, is amended--
            (1) by striking ``title.'' in subsection (a)(1) and 
        inserting ``title, and a light truck (as defined in section 
        32901(17) after model year 2005; and'';
            (2) by redesignating subparagraph (F) of subsection (b)(1) 
        as subparagraph (H), and inserting after subparagraph (E) the 
        following:
                    ``(F) a label (or a logo imprinted on a label 
                required by this paragraph) that--
                            ``(i) reflects an automobile's performance 
                        on the basis of criteria developed by the 
                        Administrator to reflect the fuel economy and 
                        greenhouse gas and other emissions consequences 
                        of operating the automobile over its likely 
                        useful life;
                            ``(ii) permits consumers to compare 
                        performance results under clause (i) among all 
                        passenger automobiles and light duty trucks (as 
                        defined in section 32901); and
                            ``(ii) is designed to encourage the 
                        manufacture and sale of passenger automobiles 
                        and light trucks that meet or exceed applicable 
                        fuel economy standards under section 32902.
                    ``(G) a fuelstar under paragraph (5).''; and
            (3) by adding at the end of subsection (b) the following:
            ``(4) Green label program.--
                    ``(A) Marketing analysis.--Within 2 years after the 
                date of enactment of the National Fuel Savings and 
                Security Act of 2002, the Administrator shall complete 
                a study of social marketing strategies with the goal of 
                maximizing consumer understanding of point-of-sale 
                labels or logos described in paragraph (1)(F).
                    ``(B) Eligibility.--Within 3 years after that date, 
                the Administrator shall issue requirements for the 
                label or logo required by paragraph (1)(F) to ensure 
                that a passenger automobile or light truck is not 
                eligible for the label or logo unless it--
                            ``(i) meets or exceeds the applicable fuel 
                        economy standard; or
                            ``(ii) will have the lowest greenhouse gas 
                        emissions over the useful life of the vehicle 
                        of all vehicles in the vehicle class to which 
                        it belongs in that model year.
                    ``(C) Criteria.--In developing criteria for the 
                label or logo, the Administrator shall also consider, 
                among others as appropriate, the following factors:
                            ``(i) The recyclability of the automobile.
                            ``(ii) Any other pollutants or harmful 
                        byproducts related to the automobile, which may 
                        include those generated during manufacture of 
                        the automobile, those issued during use of the 
                        automobile, or those generated after the 
                        automobile ceases to be operated.
            ``(5) Fuelstar program.--
                    ``(A) In general.--The Secretary shall establish a 
                program, to be known as the `fuelstar' program, under 
                which stars shall be imprinted on or attached to the 
                label required by paragraph (1).
                    ``(B) Green stars.--Under the program a 
                manufacturer may place green stars on the label 
                maintained on an automobile under paragraph (1) as 
                follows:
                            ``(i) 1 green star for any automobile that 
                        meets the average fuel economy standard for the 
                        model year under section 32902.
                            ``(ii) 1 additional green star for each 2 
                        miles per gallon by which the automobile 
                        exceeds that standard.
                    ``(C) Gold stars.--Under the program a manufacturer 
                may place a gold star on the label maintained on an 
                automobile under paragraph (1) if--
                            ``(i) in the case of a passenger 
                        automobile, it obtains a fuel economy of 50 
                        miles per gallon or more; and
                            ``(ii) in the case of a light truck, it 
                        obtains a fuel economy of 37 miles per gallon 
                        or more.''.

SEC. 9. LIGHT TRUCK CHALLENGE.

    (a) In General.--The Secretary of Transportation shall conduct an 
open competition for a project to demonstrate the feasibility of 
multiple fuel hybrid electric vehicle powertrains in sport utility 
vehicles and light trucks. The Secretary shall execute a contract with 
the entity determined by the Secretary to be the winner of the 
competition under which the Secretary will provide $10,000,000 to that 
entity in each of fiscal years 2003 and 2004 to carry out the project.
    (b) Project Requirements.--Under the contract, the Secretary shall 
require the entity to which the contract is awarded to--
            (1) select a current model year production vehicle;
            (2) modify that vehicle so that it--
                    (A) meets all existing vehicle performance 
                characteristics of the sport utility vehicle or light 
                truck selected for the project;
                    (B) improves the vehicle's fuel economy rating by 
                50 percent or more (as measured by gasoline 
                consumption); and
            (3) meet the requirements of paragraph (2) in such a way 
        that incorporation of the modification in the manufacturer's 
        production process would not increase the vehicle's incremental 
        production costs by more than 10 percent.
    (c) Eligible Entrants.--The competition conducted by the Secretary 
shall be open to any entity, or consortium of nongovernmental entities, 
educational institutions, and not-for-profit organizations, that--
            (1) has the technical capability and resources needed to 
        complete the project successfully; and
            (2) has sufficient financial resources in addition to the 
        contract amount, if necessary, to complete the contract 
        successfully.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $10,000,000 for each of 
fiscal years 2003 and 2004 to carry out this section.

SEC. 10. SECRETARY OF TRANSPORTATION TO CERTIFY BENEFITS.

    Beginning with model year 2005, the Secretary of Transportation, in 
consultation with the Administrator of the Environmental Protection 
Agency, shall determine and certify annually to the Congress--
            (1) the annual reduction in United States consumption of 
        petroleum used for vehicle fuel, and
            (2) the annual reduction in greenhouse gas emissions,
properly attributable to the implementation of the average fuel economy 
standards imposed under section 32902 of title 49, United States Code, 
as a result of the amendments made by this Act.

SEC. 11. DEPARTMENT OF TRANSPORTATION ENGINEERING AWARD PROGRAM.

    (a) Engineering Team Awards.--The Secretary of Transportation shall 
establish an engineering award program to recognize the engineering 
team of any manufacturer of passenger automobiles or light trucks (as 
such terms are defined in section 32901 of title 49, United States 
Code) whose work directly results in production models of--
            (1) the first large sport utility vehicle, van, or light 
        truck to achieve a fuel economy rating of 30 miles per gallon 
        under section 32902 of such title;
            (2) the first mid-sized sport utility vehicle, van, or 
        light truck to achieve a fuel economy rating of 35 miles per 
        gallon under section 32902 of such title; and
            (3) the first mid-sized sport utility vehicle, van, or 
        light truck to achieve a fuel economy rating of 40 miles per 
        gallon under section 32902 of such title.
    (b) Manufacturer's Award.--The Secretary of Transportation shall 
establish an Oil Independence Award to recognize the first manufacturer 
of domestically-manufactured (within the meaning of section 32903 of 
title 49, United States Code) passenger automobiles and light trucks to 
achieve a combined fuel economy rating of 37 miles per gallon under 
section 32902 of such title.
    (c) Requirements for Participation in Engineering Team Awards 
Program.--In establishing the engineering team awards program under 
subsection (a), the Secretary shall establish eligibility requirements 
that include--
            (1) a requirement that the vehicle, van, or truck be 
        domestically-manufactured or manufacturable (if a prototype) 
        within the meaning of section 32903 of title 49, United States 
        Code;
            (2) a requirement that the vehicle, van, or truck meet all 
        applicable Federal standards for emissions and safety (except 
        that crash testing shall not be required for a prototype); and
            (3) such additional requirements as the Secretary may 
        require in order to carry out the program.
    (d) Amount of Prize.--The Secretary shall award a prize of not less 
than $10,000 to each engineering team determined by the Secretary to 
have successfully met the requirements of subsection (a)(1), (2), or 
(3). The Secretary shall provide for recognition of any manufacturer to 
have met the requirements of subsection (b) with appropriate ceremonies 
and activities, and may provide a monetary award in an amount 
determined by the Secretary to be appropriate.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation such sums as may be 
necessary to carry out this section.

SEC. 12. COOPERATIVE TECHNOLOGY AGREEMENTS.

    (a) In General.--The Secretary of Transportation, in cooperation 
with the Administrator of the Environmental Protection Agency, may 
execute a cooperative research and development agreement with any 
manufacturer of passenger automobiles or light trucks (as those terms 
are defined in section 32901 of title 49, United States Code) to 
implement, utilize, and incorporate in production government-developed 
or jointly-developed fuel economy technology that will result in 
improvements in the average fuel economy of any class of vehicles 
produced by that manufacturer of at least 55 percent greater than the 
average fuel economy of that class of vehicles for model year 2000.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation and the Administrator 
of the Environmental Protection Agency such sums as may be necessary to 
carry out this section.
                                 <all>