109 HR 4640 IH: Future Fuels Act
U.S. House of Representatives
2005-12-18
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the Future Fuels Act
.
<enum>I</enum><header>Advanced Technology Motor Vehicle Investment Credit</header>
<section id="H5F9D2C9BB85748BDA4EB17221DABA26D" section-type="subsequent-section" display-inline="no-display-inline"><enum>101.</enum><header>Advanced technology motor vehicle investment credit</header>
<subsection id="H4274D81DA87A47AD9F74535FF6EC95B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following new section:</text>
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<section id="HCC3E1FF2486742F1B310D2AF0796455E"><enum>45N.</enum><header>Advanced technology motor vehicle investment credit</header>
<subsection id="HB1B5D5CC35F54AE394C744015F0255D4"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 38, in the case of an eligible manufacturer, the advanced technology motor vehicle investment credit determined under this section for any taxable year is an amount equal to 33 percent of the qualified investment of the taxpayer for such taxable year.</text></subsection>
<subsection id="H8609C878B30043FD9CA6276884816F22"><enum>(b)</enum><header>Limitation</header><text>The amount of the credit determined under this section for any taxable year shall not exceed $200,000,000.</text></subsection>
<subsection id="H55ED79F95EAA425100577BC085BEEA70"><enum>(c)</enum><header>Eligible manufacturer</header><text>For purposes of this section—</text>
<paragraph id="H940D30864E6D42AD8368274FF1C6E248"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>eligible manufacturer</term> means any taxpayer if more than 25 percent of the taxpayer’s gross receipts for the taxable year are derived from the manufacture of motor vehicles and component parts of such vehicles.</text></paragraph>
<paragraph id="HA5938A083B894BB0844631C556D0EDAB"><enum>(2)</enum><header>Requirement of improvement in average fuel economy</header><text>Such term shall not include any manufacturer of motor vehicles for any taxable year unless the average fuel economy of the manufacturer for light duty vehicles (other than vehicles produced with property described in subsection (d) which was taken into account for purposes of determining a credit under this section) for the most recent model year for which data is available (determined as of the first day of such taxable year) is not less than such average fuel economy for model year 2002. Terms used in this paragraph which are also used in section 30B shall have the same meaning as when used in such section.</text></paragraph></subsection>
<subsection id="H53C28B90EE484F28899026790059CD00"><enum>(d)</enum><header>Qualified investment</header><text>For purposes of this section—</text>
<paragraph id="H64B578A9CF004BDDA8A23174E8BFA195"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified investment</term> means amounts paid or incurred by the taxpayer during the taxable year—</text>
<subparagraph id="H2A3FD062FAB149C09D31FDEE429C43D8"><enum>(A)</enum><text display-inline="yes-display-inline">to re-equip or expand an existing manufacturing facility of the eligible manufacturer to produce advanced technology motor vehicles or to produce eligible components, and</text></subparagraph>
<subparagraph id="HF89E8D5B1C884EEF838FA2FEAAE75085"><enum>(B)</enum><text>for qualified engineering integration. </text></subparagraph></paragraph>
<paragraph id="HEEF2049722784C7E83391D28BEFEA3A2"><enum>(2)</enum><header>Attribution rule</header><text>In the event a facility of the taxpayer produces both advanced technology motor vehicles and other property, or eligible components and other property, only the qualified investment attributable to production of advanced technology motor vehicles and eligible components shall be taken into account for purposes of this section. </text></paragraph>
<paragraph id="HA28970EE9D7D441CB37F68153FD08EDC"><enum>(3)</enum><header>Property used outside United States, etc., not qualified</header><text>An amount shall not be treated as a qualified investment if such amount is paid or incurred for property referred to in section 50(b) or to the extent such amount is taken into account under section 179.</text></paragraph>
<paragraph id="H2B6A5A78BD1844D6AAF204DC4EFACD96"><enum>(4)</enum><header>Election</header><text>An amount shall not be treated as a qualified investment if the taxpayer elects that such amount not be so treated.</text></paragraph></subsection>
<subsection id="H3F28409FC79248BEAD33911F8E404432"><enum>(e)</enum><header>Advanced technology motor vehicles</header><text>For purposes of this section—</text>
<paragraph id="H44AA5FFCFBD747B7B8B41EB93BBED8FC"><enum>(1)</enum><header>In general</header><text>The term <term>advanced technology motor vehicle</term> means—</text>
<subparagraph id="H2C86C38DB5824B5FB4C836D14FBF83F5"><enum>(A)</enum><text>any new advanced lean burn technology motor vehicle (as defined in section 30B(c)(3), determined without regard to subparagraph (A)(iv)(II) thereof and without regard to the weight limitation under subparagraph (A)(iv)(I) thereof), and</text></subparagraph>
<subparagraph id="H4418F1DAC41745CF824E3F6B00DCD309"><enum>(B)</enum><text>any new qualified hybrid motor vehicle (as defined in section section 30B(d)(3)(A), determined without regard to clause (ii)(II) thereof and without regard to the weight limitation under subparagraph (ii)(I) thereof) that achieves at least 140 percent of the 2002 model year city fuel economy (as defined in section 30B(b)(2)(B)).</text></subparagraph></paragraph>
<paragraph id="HCFA2E7D6354449C892A2766233FC36CF"><enum>(2)</enum><header>EPA emission standard requirements</header><text>The term <quote>advanced technology motor vehicle</quote> shall not include any vehicle unless such vehicle is in compliance with any Environmental Protection Agency emission standard for fine particulate matter for the applicable make and model year of the vehicle.</text></paragraph> </subsection>
<subsection id="H1615784E769F44AF8E75630060EF1848"><enum>(f)</enum><header>Eligible components</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>eligible component</term> means any component specially designed for an advanced technology motor vehicle and installed for the purpose of meeting the performance requirements for such vehicle, including—</text>
<paragraph id="H444C0EED160043E69DFCEE7F06A6BE2B"><enum>(1)</enum><text display-inline="yes-display-inline">with respect to any gasoline-electric new qualified hybrid motor vehicle (as so defined), an electric motor or generator, power split device, power control unit, power controls, integrated starter generator, or battery,</text></paragraph>
<paragraph id="H80A4449925614DA900955481802B05CF"><enum>(2)</enum><text>with respect to any advanced lean burn technology motor vehicle (as so defined), a diesel engine, turbocharger, fuel injection system, or after-treatment system such as a particle filter or NO<subscript>X</subscript> absorber, and</text></paragraph>
<paragraph id="HF8D3CF58387B41EC879CCB9FCB44E000"><enum>(3)</enum><text>any other component identified by the Secretary as an eligible component.</text></paragraph></subsection>
<subsection id="HBDD66D09AA574D3FA0A18872A3E60978"><enum>(g)</enum><header>Qualified engineering integration</header><text>For purposes of this section, the term <term>qualified engineering integration</term> engineering tasks performed prior to the market introduction of an advanced technology vehicle which are related to—</text>
<paragraph id="H85F96C008CDF4334BC89C7559423B532"><enum>(1)</enum><text display-inline="yes-display-inline">incorporating eligible components into the design of such vehicle, or</text></paragraph>
<paragraph id="H64E9058F4F35488500AFECE8672EB3DC"><enum>(2)</enum><text display-inline="yes-display-inline">designing new tooling and equipment for facilities to manufacture such vehicle or eligible components for such vehicle.</text></paragraph></subsection>
<subsection id="H82563A84D03849C1948C974B903D13DB"><enum>(h)</enum><header>Denial of double benefit</header><text>In the case of the amount of the credit determined under this section—</text>
<paragraph id="H7EA7724D67EB4F3D00D1B6345F8F23E3"><enum>(1)</enum><text>no deduction or credit shall be allowed for such amount under any other provision of this chapter, and</text></paragraph>
<paragraph id="H64BFC0F6C1BA47CC92A814A89F74EDCA"><enum>(2)</enum><text>no increase in the adjusted basis of any property shall result from such amount.</text></paragraph></subsection>
<subsection id="HB43E4C393C9248908BF913BCE7F50385"><enum>(i)</enum><header>Aggregation and allocation rules</header><text>For purposes of this section, rules similar to the rules of paragraphs (1) and (2) of section 41(f) shall apply.</text></subsection>
<subsection id="H37B2B1E068B24E6699AD176DBCE4F87"><enum>(j)</enum><header>Recapture</header><text>The Secretary shall, by regulations, provide for recapturing any credit allowed under this section with respect to any qualified investment which ceases to be a qualified investment. </text></subsection>
<subsection id="H8932247328214A42B212FEFB65467E6D"><enum>(k)</enum><header>Termination</header><text>No credit shall be allowed under this section with respect to any amount paid or incurred after December 31, 2015.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HAC418A9305954D09A54B3BB2B600647B"><enum>(b)</enum><header>Credit allowed as part of general business credit</header><text>Section 38(b) of such Code is amended by striking <quote>plus</quote> at the end of paragraph (25), by striking the period at the end of paragraph (26) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph: </text>
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<paragraph id="H03F0E2B9ABF24CC080F400FB78FC4922"><enum>(27)</enum><text display-inline="yes-display-inline">in the case of an eligible manufacturer (as defined in section 45N(c)), the advanced technology motor vehicle investment credit determined under section 45N(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H7B342559161E4322941F4BBB20F6CE8"><enum>(c)</enum><header>Credit allowed against net income tax</header><text>Section 38(c) of such Code is amended by redesignating paragraphs (2) through (5) as paragraph (3) through (6), respectively, and by inserting after paragraph (1) the following new paragraph:</text>
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<paragraph id="H3BE18DE941454439BDBD50D2503D68DE"><enum>(2)</enum><header>Special rules for advanced technology motor vehicle investment credit</header><text>In the case of the advanced technology motor vehicle investment credit determined under section 45N(a)—</text>
<subparagraph id="H01B239D7099F4027A3C6388F14F29CD8"><enum>(A)</enum><text>this section and section 39 shall be applied separately with respect to such credit, and</text></subparagraph>
<subparagraph id="HC17FD6F22D5D47C686E71C1CD16FE700"><enum>(B)</enum><text>in applying paragraph (1) to such credit—</text>
<clause id="H2FB74B79DA2147EEA8C5A8D9D2A48DF4"><enum>(i)</enum><text>the amounts described in subparagraphs (A) and (B) of such paragraph shall be treated as being zero, and</text></clause>
<clause id="H1098218B3A9F4EE0ABC1C69F8E5B125"><enum>(ii)</enum><text>the limitation under paragraph (1) (as modified by clause (i)) shall be reduced by the credit allowed under subsection (a) for the taxable year (other than the advanced technology motor vehicle investment credit determined under section 45N(a), the empowerment zone employment employment credit, the New York Liberty Zone business employee credit, or the specified credits).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H92ACF9308FC1479097B29D77EE7562D2"><enum>(d)</enum><header>Clerical amendments</header>
<paragraph id="HD57EC2560957425AB6D500080CC308F"><enum>(1)</enum><text>Section 1016(a) of such Code is amended by striking <quote>and</quote> at the end of paragraph (36), by striking the period and the end of paragraph (37) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph: </text>
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<paragraph id="H7E86569E5EB0412FA374C8787536CB31"><enum>(38)</enum><text>to the extent provided in section 45N(h)(2).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H1F07AA3E74404AAD993500FEDD2164A8"><enum>(2)</enum><text>Section 6501(m) of such Code is amended by inserting <quote>45N(d)(4),</quote> after <quote>45C(d)(4),</quote>. </text></paragraph>
<paragraph id="HFBCD7E24022949C090F4BBF2E58902DA"><enum>(3)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:</text>
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<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H55D5E99757C843B982C56E5B005C83AE" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="HCC3E1FF2486742F1B310D2AF0796455E" level="section">Sec. 45N. Advanced technology motor vehicle investment credit</toc-entry> </toc><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H5E06784E1AB946B391726942CFEE566D"><enum>(e)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to amounts paid or incurred after December 31, 2004.</text></subsection></section>
<enum>II</enum><header>Fuel Choice</header>
<section id="HB49954D4D4B441188EF6DA96BFDC2AE" section-type="subsequent-section" display-inline="no-display-inline"><enum>201.</enum><header>Fuel economy credits proportional to alternative fuel used in dual fuel vehicles</header>
<subsection id="HAC0F6C9322F84989B4D7FF3CB27EF5F3"><enum>(a)</enum><header>Fuel economy calculations for alternative fuel vehicles</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/32905">Section 32905</external-xref> of title 49, United States Code, is amended—</text>
<paragraph id="H64CA1D23BA9647A7B4E2C05B22EE00A3"><enum>(1)</enum><text>in subsections (b) and (d)—</text>
<subparagraph id="H594A56FAD5614362AD4E02144500EDB4"><enum>(A)</enum><text>by amending paragraph (1) of each such subsection to read as follows:</text>
<quoted-block style="USC" id="H4287352C48C14723B6B88FB32897002B" display-inline="no-display-inline">
<paragraph id="H45E3FF3F9EC14087A32CA4087E2D8DAF"><enum>(1)</enum><text display-inline="yes-display-inline">the number determined by—</text>
<subparagraph id="H50C213D31F814CA200239EBD83399CD"><enum>(A)</enum><text>subtracting from 1.0 the alternative fuel use factor; and </text></subparagraph>
<subparagraph id="H134E05B7661C4BA6A39F6551D446283E"><enum>(B)</enum><text>dividing the number calculated under subparagraph (A) by the fuel economy measured under section 32904(c) when operating the model on gasoline or diesel fuel; and</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H5988B9CAB570470A8956E5B3A22FF424"><enum>(B)</enum><text>by amending paragraph (2) of each such subsection to read as follows:</text>
<quoted-block style="USC" id="HF8E340FD13BC438199D3BCA6355F8800" display-inline="no-display-inline">
<paragraph id="HF8926F8ECECD4CB291B61E73D3E63456"><enum>(2)</enum><text display-inline="yes-display-inline">the number determined by dividing the alternative fuel use factor by the fuel economy measured under subsection (a) when operating the model on alternative fuel.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H1062C47C8FEC43DF001E8B98F9EE0030"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block style="USC" id="H97C8062954594532935832604DC3E09F" display-inline="no-display-inline">
<subsection id="H4E34A8DC16B54D729810E59FBD200641"><enum>(h)</enum><header>Determination of alternative fuel use factor</header>
<paragraph id="H979C87F5B629410DBE118382298138C3"><enum>(1)</enum><header>Definition</header><text>For purposes of subsections (b) and (d), the term <term>alternative fuel use factor</term> means the factor determined by the Administrator under paragraph (3). </text></paragraph>
<paragraph id="H1C68D524F9254C1E8B6E187E899C04C3"><enum>(2)</enum><header>Aggregate amount of fuel</header><text>At the beginning of each calendar year, the Secretary of Transportation shall estimate the aggregate amount of fuel and the aggregate amount of alternative fuel used to operate all dual fuel automobiles during the most recent 12-month period. </text></paragraph>
<paragraph id="H1F18CE86EABE48E19832333B9090C4FE"><enum>(3)</enum><header>Determination of alternative fuel use factor</header><text>The Administrator shall determine, by regulation, the alternative fuel use factor for dual fueled automobiles, on an energy equivalent basis, by calculating the ratio that the amount of alternative fuel used by each model bears to the total amount of fuel used by such model.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HA52AAF778DEF4945BCBE777846F5C6CB"><enum>(b)</enum><header>Applicability of existing standard</header><text>The amendments made by this section shall not affect the application of <external-xref legal-doc="usc" parsable-cite="usc/49/32901">section 32901</external-xref> of title 49, United States Code, to automobiles manufactured before model year 2007. </text></subsection>
<subsection id="HBF46F7DECAC1498AA709E4D663992D29"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall take effect on January 1, 2007.</text></subsection></section>
<section id="H0F87E20197EC4CEC903935B6F352E711"><enum>202.</enum><header>Flexible fuel vehicle standards</header>
<subsection id="HF25929E3678744B6814BF27B80FE6664"><enum>(a)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="HC4EF7EC5A1A34C8D8144276329E140FA"><enum>(1)</enum><header>Alternative fuel; alternative fueled automobile; automobile</header><text>The terms <term>alternative fuel</term>, <term>alternative fueled automobile</term>, and <term>automobile</term> have the meanings given such terms in <external-xref legal-doc="usc" parsable-cite="usc/49/32901">section 32901</external-xref> of title 49, United States Code.</text></paragraph>
<paragraph id="H65480030ADAC4479AAF8F7981FEE3510"><enum>(2)</enum><header>Flexible fuel vehicles</header><text>The term <term>flexible fuel vehicle</term> means a light duty motor vehicle warranted by the manufacturer to operate using gasoline and 1 or more alternative fuels, including ethanol and methanol in blends up to 85 percent alternative fuel by volume.</text> </paragraph> </subsection>
<subsection id="HC10DBD77A5C54B68AC7CC94419D87646"><enum>(b)</enum><header>Increasing percentage of alternative fueled automobiles or flexible fuel vehicles</header>
<paragraph id="H4DBFEF72FA1545FEBE4DB0CC00BF8EF0"><enum>(1)</enum><header>In general</header><text>Of the new automobiles sold by a manufacturer in the United States—</text>
<subparagraph id="HF396DC770A564B198CEA394D484533"><enum>(A)</enum><text>not less than 10 percent manufactured by that manufacturer for model year 2009 shall be alternative fueled automobiles or flexible fuel vehicles;</text></subparagraph>
<subparagraph id="H42497E497AD04D42A0FEEF4C8568C227"><enum>(B)</enum><text display-inline="yes-display-inline">not less than 20 percent manufactured by that manufacturer for model year 2010 shall be alternative fueled automobiles or flexible fuel vehicles;</text></subparagraph>
<subparagraph id="HB53D15EDEDD941348848A648F2260066"><enum>(C)</enum><text display-inline="yes-display-inline">not less than 35 percent manufactured by that manufacturer for model year 2011 shall be alternative fueled automobiles or flexible fuel vehicles; and</text></subparagraph>
<subparagraph id="HAF58B143901441E88DF000D1C089266"><enum>(D)</enum><text display-inline="yes-display-inline">not less than 50 percent manufactured by that manufacturer for model year 2012, and each year thereafter, shall be alternative fueled automobiles or flexible fuel vehicles.</text></subparagraph></paragraph>
<paragraph id="H3581669604AD45C9B11B26D9C149DFCC"><enum>(2)</enum><header>Rulemaking</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall issue regulations to carry out this subsection.</text></paragraph></subsection>
<subsection id="HCB22799F3F0540F59F5017656436286F"><enum>(c)</enum><header>Alternative fuel retail outlets</header>
<paragraph id="HDDB166A058514456BECD385100B9B88F"><enum>(1)</enum><header>Requirement</header><text>Beginning in the first year in which 10 percent or more of the registered vehicles in a county are capable of using an alternative fuel, each retail motor fuel outlet in that county with 10 or more vehicle fuel pumps shall offer such alternative fuel at not less than 10 percent of such pumps.</text></paragraph>
<paragraph id="HE83B1E4FEBB74AAE953039B9B9DC51B"><enum>(2)</enum><header>Credits</header><text>A retail motor fuel outlet shall be in compliance with the requirement under paragraph (1) if a sufficient number of credits have been purchased for it from another retail motor fuel outlet that operates more than the minimum required number of alternative fuel pumps, and is within 20 miles of the purchasing retail motor fuel outlet.</text> </paragraph>
<paragraph id="HAA5AC7F05F9743F797F96B8D747DAA3F"><enum>(3)</enum><header>Projections</header><text>Not later than July 1st of each year, the Secretary of Energy shall—</text>
<subparagraph id="H95EEBA5BFEBE485AB3060011FCCAF213"><enum>(A)</enum><text>identify the counties in which at least 10 percent of the registered vehicles are expected to be capable of using a designated alternative fuel within the following 18-month period;</text></subparagraph>
<subparagraph id="H520E588132A242BF85E8201C3831C19C"><enum>(B)</enum><text>notify owners and operators of retail motor fuel outlets in the counties identified under subparagraph (A) of the alternative fuel pump requirement under this subsection; and</text></subparagraph>
<subparagraph id="HC14DA564B0234B990050BC73FA85BB8B"><enum>(C)</enum><text display-inline="yes-display-inline">grant counties an exemption to the requirement in paragraph (1) if they demonstrate to the Secretary that there is not an adequate alternative fuel supply to meet the requirement.</text></subparagraph></paragraph>
<paragraph id="H89A1DCE3AF034ADB903EABE8F36A3D6"><enum>(4)</enum><header>Rulemaking</header><text>The Secretary of Energy shall issue regulations to carry out this subsection.</text></paragraph></subsection></section>
<enum>III</enum><header>Fuel efficiency</header>
<section id="H1E29A56346D34ED68302B98902CA9328"><enum>301.</enum><header>Oil savings studies</header>
<subsection id="H15438CCE39404650A8A83F5349FBE6BA"><enum>(a)</enum><header>In general</header><text>The Secretary of Transportation shall develop and implement pilot projects the purpose of which is to reduce vehicle miles traveled.</text></subsection>
<subsection id="H5DDB7AE28B0A445DA4ABE6FB23BF83C5"><enum>(b)</enum><header>Highway congestion tolling evaluation study</header><text>The Secretary shall carry out evaluation projects in no less than 6 metropolitan areas selected by the Secretary to determine how technology can best be applied to assess mileage-based road user charges on major highways at peak-commuting times for the purposes of—</text>
<paragraph id="HA414242C192D483CA6DE2C3E6FD7619"><enum>(1)</enum><text>reducing oil usage;</text></paragraph>
<paragraph id="H9CAC8078D4964DA8861C4677401D4C8B"><enum>(2)</enum><text>lessening highway congestion; and</text></paragraph>
<paragraph id="H8FD399E1227F49339B9EC92845E3529E"><enum>(3)</enum><text>expanding travel alternatives.</text></paragraph></subsection>
<subsection id="H330C3FB3E3774C3A9902EABC401DCF11"><enum>(c)</enum><header>Parking cash-out evaluation project</header>
<paragraph id="HFEF5FF2291C342E18ECF4C0814F9E16C"><enum>(1)</enum><header>In general</header><text>The Secretary shall carry out a national evaluation pilot project to assess how offering commuters the option to receive the cash value of their workplace parking place, if any, instead of free parking can—</text>
<subparagraph id="H7CB5C4B7D43548D29E3CF8C5B254D701"><enum>(A)</enum><text>reduce oil usage;</text></subparagraph>
<subparagraph id="HECBB2226E54C432DB7A926EF483D0058"><enum>(B)</enum><text>lessen highway congestion; and</text></subparagraph>
<subparagraph id="H72EC001EF25D4E1F8DE7703BDC696C67"><enum>(C)</enum><text>expand travel alternatives</text></subparagraph></paragraph>
<paragraph id="H2DB85C73DCA1402BA2690082039D0092" commented="no"><enum>(2)</enum><header>Employer requirement</header><text display-inline="yes-display-inline">Under the evaluation pilot project, any employer that is participating in the pilot project and offers free-of-charge commuter parking to the employees of the employer must also offer a cashout alternative to employees.</text></paragraph></subsection>
<subsection id="HB451AD79C3EB4DF9979946291EEDE100"><enum>(d)</enum><header>Report</header><text display-inline="yes-display-inline">The Secretary shall submit to Congress every 2 years after the date of the enactment of this Act, a report on the progress and results of pilot projects under this section. The report shall provide an analysis and summary of project implementation, changes in oil usage and travel demand, and other matters as deemed appropriate by the Secretary.</text></subsection>
<subsection id="H2342E50B358C4B928C22F16EACFCFA"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out subsection (b) $4,000,000, and to carry out subsection (c) $4,000,000, for each of fiscal years 2007 through 2016.</text></subsection></section>
<section id="HFA75AA9676F14E90A568F9DDFB212DA7" section-type="subsequent-section" display-inline="no-display-inline"><enum>302.</enum><header>Insurance savings incentive program</header>
<subsection id="H734061D5C3C54A03B83E6C22DFE0077"><enum>(a)</enum><header>Per-mile Insurance</header><text display-inline="yes-display-inline">The Secretary of Transportation shall establish a program to provide incentives to insurance providers to sell automobile insurance policies on a per-mile basis.</text></subsection>
<subsection id="HD40180F1920644C59786C57D3390C4AB"><enum>(b)</enum><header>Incentives</header>
<paragraph id="H3F9959A859DA4ECE9F4860FC8704068D"><enum>(1)</enum><header>Start-up costs</header><text display-inline="yes-display-inline">Under the program, the Secretary of Transportation shall assist automobile insurance providers with the development and startup costs necessary to offer customers of such providers the option of purchasing automobile insurance at a per-mile-driven rate.</text></paragraph>
<paragraph id="HCC7780FAB5C842F58E4378A2F5062346"><enum>(2)</enum><header>Per-mile compensation</header><text display-inline="yes-display-inline">Under the program, the Secretary of Transportation shall compensate an insurance provider at the rate of one cent per mile driven by each passenger vehicle for which the insurance premiums are determined by the insurance provider to be the multiplicative product of a per-mile-driven rate and a variable number of miles driven. Such per-mile-driven rate may reflect both traditional underwriting factors and the coverages selected. An insurance provider may only receive incentive payments for an insurance policy under this section if the per-mile-driven premium charges on such policy apply to all vehicles of a household insured by such provider and account for at least 70 percent of the total premium charge for liability and collision coverages of each vehicle insured by such provider.</text></paragraph></subsection>
<subsection id="H25D1588769B241F98EE5626E04E3B78D"><enum>(c)</enum><header>Authorization of appropriations</header>
<paragraph id="HD026E7A8ED284D79AB0976C43D9EF600"><enum>(1)</enum><header>Administrative costs</header><text>There is authorized to be appropriated for the administrative costs of the program established under subsection (a) $10,000,000.</text></paragraph>
<paragraph id="HE73B12206F294DD8B3992F7CCCD9738B"><enum>(2)</enum><header>Start-up costs</header><text>There is authorized to be appropriated to fund start-up costs under subsection (b)(1) $20,000,000.</text></paragraph>
<paragraph id="H8C06A54575E84D9DAF10EEBFCCBD1B61"><enum>(3)</enum><header>Per-mile compensation</header><text>There is authorized to be appropriated to fund incentives under subsection (b)(2) $220,000,000.</text></paragraph>
<paragraph id="H018A30EF3FDC4AFFBFA19BDDF2B97BFC"><enum>(4)</enum><header>Availability</header><text>Funds appropriated under this subsection shall remain available until expended.</text></paragraph></subsection></section>
<section id="H435C0D59B70E4843AEB658A2F0AA6B09" section-type="subsequent-section" display-inline="no-display-inline"><enum>303.</enum><header>Transit-oriented development corridors</header>
<subsection id="HB3058CD82BF8466FA51317493B6968FC"><enum>(a)</enum><header>Definitions</header><text>In this section the following definitions apply:</text>
<paragraph id="H73B8E7898C98475689D2E3CE1478D770"><enum>(1)</enum><header>Definitions from title 49, united states code</header><text>The terms <term>capital project</term>, <term>local governmental authority</term>, <term>mass transportation</term>, and <term>urbanized area</term> have the meanings such terms have under <external-xref legal-doc="usc" parsable-cite="usc/49/5302">section 5302</external-xref> of title 49, United States Code.</text></paragraph>
<paragraph id="H492F6723C9914B12BC7179EA2889F91F"><enum>(2)</enum><header>State</header><text>The term <term>State</term> means a State of the United States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and the United States Virgin Islands.</text></paragraph>
<paragraph id="HEAF47797420B4D8ABC257EE69820A596"><enum>(3)</enum><header>Transit-oriented development corridor</header><text display-inline="yes-display-inline">The term <term>transit-oriented development corridor</term> means rights-of-way for fixed-guideway mass transportation facilities, including commercial development that is connected with any such facility physically and functionally.</text></paragraph></subsection>
<subsection id="H2DB74B92877E40AF9EC8DB02A68C26F6"><enum>(b)</enum><header>In general</header><text display-inline="yes-display-inline">In consultation with State transportation departments and metropolitan planning organizations, the Secretary shall designate, in urbanized areas, at least 20 transit-oriented development corridors by 2015 and 50 transit-oriented development corridors by 2025.</text></subsection>
<subsection id="H0700F5E95077450F8E4D431F377CC927"><enum>(c)</enum><header>Transit grants</header><text display-inline="yes-display-inline">The Secretary shall award grants to a State or local governmental authority to construct or improve transit facilities, bicycle transportation facilities, and pedestrian walkways in transit-oriented development corridors, including capital projects.</text></subsection>
<subsection id="HB44F00523C574EBC969CFC5D23F025ED"><enum>(d)</enum><header>Research and development</header><text display-inline="yes-display-inline">In order to support effective deployment of grants and incentives under this section, the Secretary shall establish a transit-oriented development corridors research and development program for the conduct of research on best practices and performance criteria for transit-oriented development corridors.</text></subsection>
<subsection id="HFAFCE5FE5FCC46B7ACB358E9A6AE00D2"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section $500,000,000 for each of fiscal years 2007 through 2016, of which $2,000,000 per fiscal year is authorized for the research and development program under subsection (d).</text></subsection>
<subsection id="H9466AA8DA6794AFAB7E1D2DD00D86E39"><enum>(f)</enum><header>Labor standards</header><text>The Secretary shall not provide a grant under this section for a transit project unless the Secretary receives reasonable assurances from a State that laborers and mechanics employed by contractors or subcontractors in the performance of construction or modernization on the transit project will be paid wages not less than those prevailing on similar construction or modernization in the locality as determined by the Secretary of Labor under the Act of March 3, 1931 (known as the Davis-Bacon Act) (<external-xref legal-doc="usc" parsable-cite="usc/40/276a">40 U.S.C. 276a et seq.</external-xref>).</text></subsection></section>
<section id="HC2042A972FA34520BBEDF206DFFEC8FF"><enum>304.</enum><header>Motor vehicle tires supporting maximum fuel efficiency</header>
<subsection id="HACE8783FA3DD4F538BBB1E835E07954D"><enum>(a)</enum><header>Standards for tires manufactured for interstate commerce</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/30123">Section 30123</external-xref> of title 49, United States Code, is amended—</text>
<paragraph id="HDBFA21D880254E3A816C4C70B195353D"><enum>(1)</enum><text>in subsection (b), by inserting after the first sentence the following: <quote>The grading system shall include standards for rating the fuel efficiency of tires designed for use on passenger cars and light trucks.</quote>; and</text></paragraph>
<paragraph id="HAB37BD18D87349E4B364D118DB328E8C"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block style="USC" id="H3FAD10D5F3714CEDB70524BF7728F3CC" display-inline="no-display-inline">
<subsection id="HEBA6183602EC4883B4C6F3F391C8BE9"><enum>(d)</enum><header>National tire fuel efficiency program</header>
<paragraph id="H67C9443246D64BF1A31DFD3D16EDC7A9" display-inline="yes-display-inline"><enum>(1)</enum><text>The Secretary shall develop and carry out a national tire fuel efficiency program for tires designed for use on passenger cars and light trucks.</text></paragraph>
<paragraph id="H8F9B4BEC2BEF47EC80E42D23E2BABA70" indent="up1"><enum>(2)</enum><text>The program shall include the following:</text>
<subparagraph id="HDE018C3AA707412283F40081006F4CB3"><enum>(A)</enum><text>Policies and procedures for testing and labeling tires for fuel economy to enable tire buyers to make informed purchasing decisions about the fuel economy of tires.</text></subparagraph>
<subparagraph id="HFC061A73ADCD48DB97AD3CC8F6CCEDBA"><enum>(B)</enum><text>Policies and procedures to promote the purchase of energy-efficient replacement tires, including purchase incentives, website listings on the Internet, printed fuel economy guide booklets, and mandatory requirements for tire retailers to provide tire buyers with fuel-efficiency information on tires.</text></subparagraph>
<subparagraph id="H8AC40722D1F647409F7CCBC36FDD4273"><enum>(C)</enum><text>Minimum fuel economy standards for tires, promulgated by the Secretary.</text></subparagraph></paragraph>
<paragraph id="H37C3FE1ABB8448EFB20287F0957757D5" indent="up1"><enum>(3)</enum><text>The minimum fuel economy standards for tires shall—</text>
<subparagraph id="HB44A1D95DF3D4D57891690004176B32B"><enum>(A)</enum><text display-inline="yes-display-inline">ensure, in conjunction with the requirements under paragraph (2)(B), that the average fuel economy of replacement tires is equal to or better than the average fuel economy of tires sold as original equipment;</text></subparagraph>
<subparagraph id="H50AC83A59A924D62AE12BA0041290005"><enum>(B)</enum><text>secure the maximum technically feasible and cost-effective fuel savings;</text></subparagraph>
<subparagraph id="HCC52E0E0964249A6876CE6AFBC0ADEC"><enum>(C)</enum><text>not adversely affect tire safety;</text></subparagraph>
<subparagraph id="H0F1E17BADBD94944BF63BD0600CD3E8B"><enum>(D)</enum><text>not adversely affect the average tire life of replacement tires;</text></subparagraph>
<subparagraph id="HB6AD47385A194336A4D47763004F168C"><enum>(E)</enum><text>incorporate the results from—</text>
<clause id="HCC0D4FB3F7B04DADBEDC51ACAE5C700"><enum>(i)</enum><text>laboratory testing; and</text></clause>
<clause id="HB33201AAD49041B7829FEF57A5C5684"><enum>(ii)</enum><text>to the extent appropriate and available, on-road fleet testing programs conducted by the manufacturers; and</text></clause></subparagraph>
<subparagraph id="H11FF86E8647E4A4E91004887E3A89C1F"><enum>(F)</enum><text>not adversely affect efforts to manage scrap tires.</text></subparagraph></paragraph>
<paragraph id="H70AE1C4D65F64760BAF199E756F63BCF" indent="up1"><enum>(4)</enum><text>The policies, procedures, and standards developed under paragraph (2) shall apply to all types and models of tires that are covered by the uniform tire quality grading standards under <external-xref legal-doc="regulation" parsable-cite="cfr/49/575.104">section 575.104</external-xref> of title 49, Code of Federal Regulations (or any successor regulation).</text></paragraph>
<paragraph id="H69DDB61D40964DFAB915AE16BF4B278C" indent="up1"><enum>(5)</enum><text>Not less often than every three years, the Secretary shall review the minimum fuel economy standards in effect for tires under this subsection and revise the standards as necessary to ensure compliance with requirements under paragraph (3). The Secretary may not, however, reduce the average fuel economy standards applicable to replacement tires.</text></paragraph>
<paragraph id="H6A8107D4E1BA4D7FAA800619F69E5CC8" indent="up1"><enum>(6)</enum><text>Nothing in this chapter shall be construed to preempt any provision of State law relating to higher fuel economy standards applicable to replacement tires designed for use on passenger cars and light trucks.</text></paragraph>
<paragraph id="H8CAD7A0AD5B3443BA6DE9EC5777E6D8" indent="up1"><enum>(7)</enum><text>Nothing in this chapter shall apply to—</text>
<subparagraph id="H8457A0D944954895A9E9EEBCA65C1177"><enum>(A)</enum><text>a tire or group of tires with the same SKU, plant, and year, for which the volume of tires produced or imported is less than 15,000 annually;</text></subparagraph>
<subparagraph id="H7B71FD420A974C6291005C7DCFAF2FB"><enum>(B)</enum><text>a deep tread, winter-type snow tire, space-saver tire, or temporary use spare tire;</text></subparagraph>
<subparagraph id="HDE38ED97893745249B44648F6FD5D0C0"><enum>(C)</enum><text>a tire with a normal rim diameter of 12 inches or less;</text></subparagraph>
<subparagraph id="HB1632EBF53ED4CC1BBF6A4BCA8F093E4"><enum>(D)</enum><text>a motorcycle tire; or</text></subparagraph>
<subparagraph id="H1BF006C9F8FA4F00A4ECDEC8F64B3693"><enum>(E)</enum><text>a tire manufactured specifically for use in an off-road motorized recreational vehicle.</text></subparagraph></paragraph>
<paragraph id="H74781DB7CADC4D96AB0078BAFD001471" indent="up1"><enum>(8)</enum><text>In this subsection, the term <quote>fuel economy</quote>, with respect to tires, means the extent to which the tires contribute to the fuel economy of the motor vehicles on which the tires are mounted.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H1C0F353536A54CE8BC3FA210F5421073"><enum>(b)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/30103">Section 30103(b)</external-xref> of title 49, United States Code, is amended in paragraph (1) by striking <quote>When</quote> and inserting <quote>Except as provided in section 30123(d) of this title, when</quote>.</text></subsection>
<subsection id="HD8FAC918A60B4A2DA6ECEC904D7E295C"><enum>(c)</enum><header>Time for implementation</header><text>The Secretary of Transportation shall ensure that the national tire fuel efficiency program required under subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/49/30123">section 30123</external-xref> of title 49, United States Code (as added by subsection (a)(2)), is administered so as to apply the policies, procedures, and standards developed under paragraph (2) of such subsection (d) beginning not later than March 31, 2008.</text></subsection></section>