II 109th CONGRESS 1st Session S. 1994 IN THE SENATE OF THE UNITED STATES November 10, 2005 Mr. Harkin (for himself, Mr. Lugar, and Mr. Obama) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To require that an increasing percentage of new automobiles be dual fueled automobiles, to revise the method for calculating corporate average fuel economy for such vehicles, and for other purposes.

1.

Short title

This Act may be cited as the Fuel Security and Consumer Choice Act.

2.

Requirement to manufacturer dual fueled automobiles

(a)

Requirement

(1)

In general

Chapter 329 of title 49, United States Code, is amended by inserting after section 32902 the following:

32902A.

Requirement to manufacture dual fueled automobiles

(a)

Requirement

(1)

In general

Each manufacturer of new automobiles that are capable of operating on gasoline or diesel fuel shall ensure that the percentage of such automobiles, manufactured in any model year beginning not less than 18 months after the date of enactment of this section and distributed in commerce for sale in the United States, which are dual fueled automobiles is equal to not less than the applicable percentage set forth in the following table: For each of the following model years:The percentage of dual fueled automobiles manufactured shall be not less than: year 110 year 220 year 330 year 440 year 550 year 660 year 770 year 880 year 990 year 10 and beyond100. (2)

Model years

For purposes of the table under paragraph (1)— (A)the term year 1 means the first model year beginning not less than 18 months after the date of enactment of this section; (B)the term year 2 means the model year immediately following the model year described in subparagraph (A); (C)the term year 3 means the model year immediately following the model year described in subparagraph (B); (D)the term year 4 means the model year immediately following the model year described in subparagraph (C); (E)the term year 5 means the model year immediately following the model year described in subparagraph (D); (F)the term year 6 means the model year immediately following the model year described in subparagraph (E); (G)the term year 7 means the model year immediately following the model year described in subparagraph (F); (H)the term year 8 means the model year immediately following the model year described in subparagraph (G); (I)the term year 9 means the model year immediately following the model year described in subparagraph (H); and (J)the term year 10 means the model year immediately following the model year described in subparagraph (I). (b)

Production credits for exceeding flexible fuel automobile production requirement

(1)

Earning and period for applying credits

If the number of dual fueled automobiles manufactured by a manufacturer in a particular model year exceeds the number required under subsection (a), the manufacturer earns credits under this section, which may be applied to any of the 3 consecutive model years immediately after the model year for which the credits are earned. (2)

Trading credits

A manufacturer that has earned credits under paragraph (1) may sell credits to another manufacturer to enable the purchaser to meet the requirement under subsection (a).

. (2)

Technical amendment

The table of sections for chapter 329 of title 49, United States Code, is amended by inserting after the item relating to section 32902 the following: 32902A. Requirement to manufacture dual fueled automobiles. . (b)

Activities to promote the use of certain alternative fuels

The Secretary of Transportation shall carry out activities to promote the use of fuel mixtures containing gasoline or diesel fuel and 1 or more alternative fuels, including a mixture containing at least 85 percent of methanol, denatured ethanol, and other alcohols by volume with gasoline or other fuels, to power automobiles in the United States.

3.

Manufacturing incentives for dual fueled automobiles

Section 32905(b) of title 49, United States Code, is amended— (1)by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (2)by inserting (1) before Except; (3)by striking model years 1993–2010 and inserting model year 1993 through the first model year beginning not less than 18 months after the date of enactment of the Fuel Security and Consumer Choice Act; and (4)by adding at the end the following: (2)Except as provided in paragraph (5) of this subsection, subsection (d) of this section, or section 32904(a)(2) of this title, the Administrator shall measure the fuel economy for each model of dual fueled automobiles manufactured by a manufacturer in the first model year beginning not less than 30 months after the date of enactment of the Fuel Security and Consumer Choice Act by dividing 1.0 by the sum of— (A)0.7 divided by the fuel economy measured under section 32904(c) of this title when operating the model on gasoline or diesel fuel; and (B)0.3 divided by the fuel economy measured under subsection (a) when operating the model on alternative fuel. (3)Except as provided in paragraph (5) of this subsection, subsection (d) of this section, or section 32904(a)(2) of this title, the Administrator shall measure the fuel economy for each model of dual fueled automobiles manufactured by a manufacturer in the first model year beginning not less than 42 months after the date of enactment of the Fuel Security and Consumer Choice Act by dividing 1.0 by the sum of— (A)0.9 divided by the fuel economy measured under section 32904(c) of this title when operating the model on gasoline or diesel fuel; and (B)0.1 divided by the fuel economy measured under subsection (a) when operating the model on alternative fuel. (4)Except as provided in subsection (d) of this section, or section 32904(a)(2) of this title, the Administrator shall measure the fuel economy for each model of dual fueled automobiles manufactured by a manufacturer in each model year beginning not less than 54 months after the date of enactment of the Fuel Security and Consumer Choice Act in accordance with section 32904(c) of this title. (5)Notwithstanding paragraphs (2) through (4) of this subsection, the fuel economy for all dual fueled automobiles manufactured to comply with the requirements under section 32902A(a) of this title, including automobiles for which dual fueled automobile credits have been used or traded under section 32902A(b) of this title, shall be measured in accordance with section 32904(c) of this title. .