Short title and table of contents

(a)

Short title

This Act may be cited as the

Gasoline Price Stabilization Act of 2007

. (b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Strategic petroleum reserve drawdown.

Sec. 3. Minimum inventory levels.

Sec. 4. Ban on exporting of Alaskan oil.

Sec. 5. Sense of Congress regarding the Organization of the Petroleum Exporting Countries and the World Trade Organization.

Sec. 6. Windfall profits tax and credit for purchasing fuel-efficient American-made passenger vehicles.

Sec. 7. Merger moratoriums.

Sec. 8. Petroleum Industry Concentration and Market Power Review Commission.

Sec. 9. Increased average fuel economy standards for passenger automobiles and light trucks.

Sec. 10. Fuel economy of the Federal fleet of vehicles.

Strategic petroleum reserve drawdown

(a)

Drawdowns authorized to address State or regional economic harm

Section 161(d)(2)(C) of the Energy Policy and Conservation Act (42 U.S.C. 6241(d)(2)(C)) is amended by inserting , or on a State or regional economy after national economy. (b)

Drawdowns authorized to combat anti-competitive conduct

Section 161(d) of the Energy Policy and Conservation Act (42 U.S.C. 6241(d)) is further amended by adding at the end the following new paragraph:

(3)(A)For purposes of this section, in addition to the circumstances set forth in section 3(8) and in paragraph (2) of this subsection, a severe energy supply interruption exists if the President determines that— (i)there is a significant reduction in supply that— (I)is of significant scope and duration; and (II)has caused a significant increase in the price of petroleum products; (ii)the increase in price is likely to cause a significant adverse impact on the national economy, or on a State or regional economy; and (iii)the reduction in supply is substantially caused by conduct that lessens competition (or tends to create a monopoly) by— (I)at least one foreign country or international entity; or (II)at least one producer, refiner, or marketer of petroleum products. (B)Proceeds from the sale of petroleum drawn down pursuant to a Presidential determination under subparagraph (A) shall— (i)be deposited in the SPR Petroleum Account established under section 167; and (ii)be used only for the purposes specified in such section.

(c)

Reporting and consultation requirements

When the price of a barrel of crude oil exceeds $50 (in constant 2005 United States dollars) on the New York Mercantile Exchange for a period greater than 14 days, the President, through the Secretary of Energy, shall, not later than 30 days after the end of the 14-day period, submit to Congress a report that— (1)states the results of a comprehensive review of the causes and potential consequences of the price increase; (2)provides an estimate of the likely duration of the price increase, based on analyses and forecasts of the Energy Information Administration; (3)provides an analysis of the effects of the price increase on the cost of gasoline at the wholesale and retail levels; and (4)states whether, and provides a specific rationale for why, the President does or does not support the drawdown and distribution of a specified amount of oil from the Strategic Petroleum Reserve. (d)

General accounting office study

The Comptroller General of the United States shall, not later than one year after the date of the enactment of this Act, submit to Congress a review of the drawdown authority of the President with respect to the Strategic Petroleum Reserve. Such review shall address— (1)how and why the authority has changed over time; (2)under what circumstances Presidents have actually exercised the authority; (3)what the impact on oil prices was as a result of the exercising of the presidential authority; and (4)the implications of expanding the drawdown authority beyond the severe energy supply interruption standard described in section 3(8) or 161(d) of the Energy Policy and Conservation Act (42 U.S.C. 6202(8), 6241(d)), by— (A)allowing the release of oil as a regular hedging tool for oil companies; (B)allowing such companies to tap the Strategic Petroleum Reserve as necessary to dampen price shocks; and (C)requiring such companies to replace the oil (and additional barrels) at some predetermined time in the future.

Minimum inventory levels

(a)

Establishing minimum levels

The Secretary of Energy shall establish minimum inventory levels that producers, refiners, and marketers of crude oil and petroleum products must maintain in order to limit the impact unexpected supply disruptions have on prices at the wholesale and retail levels. (b)

Regional variations

For purposes of subsection (a), the minimum inventory levels shall take into account regional variations in supply and demand, and market structure. (c)

Administrative procedures

For purposes of subsection (a), the Secretary may perform the following procedures: (1)

Different industry segments

Set varying levels for each segment of the oil industry as the Secretary determines appropriate. (2)

Different products

Set different levels for the various crude oil and petroleum products, including gasoline, home heating oil, and jet fuel. (3)

Seasonal adjustment

Adjust minimum inventory levels to reflect seasonal adjustments.

Ban on exporting of Alaskan oil

(a)

Repeal of provision authorizing exports

Section 28(s) of the Mineral Leasing Act (30 U.S.C. 185(s)) is repealed. (b)

Reimposition of prohibition on crude oil exports

Section 7(d) of the Export Administration Act of 1979 (50 U.S.C. App. 2406(d)) shall be effective as of the date of the enactment of this Act, and those provisions of the Export Administration Act of 1979 (including sections 11 and 12) shall apply to the extent necessary to carry out such section 7(d), notwithstanding section 20 of such Act and notwithstanding any other provision of law that would otherwise allow the export of oil to which such section 7(d) applies.

Sense of Congress regarding the Organization of the Petroleum Exporting Countries and the World Trade Organization

(a)

Findings

Congress makes the following findings: (1)No free market exists in oil production because of collusion among large oil-producing countries. (2)The Organization of the Petroleum Exporting Countries (in this section referred to as OPEC) and other oil-producing countries have repeatedly agreed to coordinated cutbacks in production, thus manipulating world oil markets, resulting in de facto price fixing. (3)Such manipulation led to the highest price per barrel of oil in nearly a decade, substantial increases in consumer prices for items such as home heating oil and gasoline, and continued price volatility. (4)Rising oil prices greatly harm consumers, farmers, small businesses, and manufacturers, increase the likelihood of inflation, increase the cost of conducting interstate and international commerce, and pose a strong threat to continued economic growth. (5)Article XI of the General Agreement on Tariffs and Trade of 1994 (in this section referred to as GATT) prohibits members of the World Trade Organization (in this section referred to as WTO) from setting quantitative restrictions on the import or export of resources or products across their borders; specifically the language reads: No prohibitions or restrictions other than duties, taxes or other charges, whether made effective through quotas, import or export licenses or other measures, shall be instituted or maintained by any contracting party on the importation of any product of the territory of any other contracting party or on the exportation or sale for export of any product destined for the territory of any other contracting party.. (6)The precise meaning of such article XI was spelled out in a GATT Panel Report issued in 1988 entitled Japan—Trade in Semi-conductors, which notes, . . . this wording [in article XI] was comprehensive: it applied to all measures instituted or maintained by a contracting party prohibiting or restricting the importation, exportation, or sale for export of products other than measures that take the form of duties, taxes, or other charges. . . . This wording indicated clearly that any measure instituted or maintained by a contracting party which restricted the exportation or sale for export of products was covered by this provision, irrespective of the legal status of the measure.. (7)Oil production restrictions clearly qualify as a quantitative restriction based on the original WTO rules and the 1988 GATT panel report, which certify that only duties, taxes, or other charges are allowable, not pacts among countries to limit production of a product for export. (8)Article XX of GATT, which sets out a series of exceptions to article XI, notes that none of the exceptions is valid if it is applied in a manner which would constitute . . . a disguised restriction on international trade, a phrase which describes production restrictions of OPEC. (9)Of the 12 OPEC countries, eight are members of the WTO (Angola, Kuwait, Indonesia, Nigeria, Qatar, Venezuela, Saudi Arabia, and United Arab Emirates), and four have observer status and have applied to join the WTO (Algeria, Libya, Iran, Iraq). (10)In addition, of the remaining large oil-producing nations, Mexico, Norway, and Oman are members of the WTO, and Russia has applied for membership. (11)Given the substantial WTO membership and pending membership of oil-producing countries, filing a complaint would likely have an immediate impact on the current and future behavior of these countries. (b)

Filing of complaint

The President shall instruct the United States Trade Representative to file a complaint in the World Trade Organization against oil-producing countries for violating their obligations under the rules of that organization.

Windfall profits tax and credit for purchasing fuel-efficient American-made passenger vehicles

(a)

Windfall profits tax

(1)

In general

Subtitle E of the Internal Revenue Code of 1986 (relating to alcohol, tobacco, and certain other excise taxes) is amended by adding at the end thereof the following new chapter:

Windfall profits on crude oil

Sec. 5896. Imposition of tax.

Sec. 5897. Windfall profit; removal price; adjusted base price; qualified investment.

Sec. 5898. Special rules and definitions.

5896.

Imposition of tax

(a)

In general

In addition to any other tax imposed under this title, there is hereby imposed on any integrated oil company (as defined in section 291(b)(4)) an excise tax equal to the excess of— (1)the amount equal to 50 percent of the windfall profit from all barrels of taxable crude oil removed from the property during each taxable year, over (2)the amount of qualified investment by such company during such taxable year. (b)

Fractional part of barrel

In the case of a fraction of a barrel, the tax imposed by subsection (a) shall be the same fraction of the amount of such tax imposed on the whole barrel. (c)

Tax paid by producer

The tax imposed by this section shall be paid by the producer of the taxable crude oil.

5897.

Windfall profit; removal price; adjusted base price; qualified investment

(a)

General rule

For purposes of this chapter, the term windfall profit means the excess of the removal price of the barrel of taxable crude oil over the adjusted base price of such barrel. (b)

Removal price

For purposes of this chapter— (1)

In general

Except as otherwise provided in this subsection, the term removal price means the amount for which the barrel of taxable crude oil is sold. (2)

Sales between related persons

In the case of a sale between related persons, the removal price shall not be less than the constructive sales price for purposes of determining gross income from the property under section 613. (3)

Oil removed from property before sale

If crude oil is removed from the property before it is sold, the removal price shall be the constructive sales price for purposes of determining gross income from the property under section 613. (4)

Refining begun on property

If the manufacture or conversion of crude oil into refined products begins before such oil is removed from the property— (A)such oil shall be treated as removed on the day such manufacture or conversion begins, and (B)the removal price shall be the constructive sales price for purposes of determining gross income from the property under section 613. (5)

Property

The term property has the meaning given such term by section 614. (c)

Adjusted base price defined

(1)

In general

For purposes of this chapter, the term adjusted base price means $50 for each barrel of taxable crude oil plus an amount equal to— (A)such base price, multiplied by (B)the inflation adjustment for the calendar year in which the taxable crude oil is removed from the property.

The amount determined under the preceding sentence shall be rounded to the nearest cent.

(2)

Inflation adjustment

(A)

In general

For purposes of paragraph (1), the inflation adjustment for any calendar year after 2008 is the percentage by which— (i)the implicit price deflator for the gross national product for the preceding calendar year, exceeds (ii)such deflator for the calendar year ending December 31, 2007. (B)

First revision of price deflator used

For purposes of subparagraph (A), the first revision of the price deflator shall be used. (d)

Qualified investment

For purposes of this chapter— (1)

In general

The term qualified investment means any amount paid or incurred with respect to— (A)section 263(c) costs, (B)qualified refinery property (as defined in section 179C(c) and determined without regard to any termination date), (C)any qualified facility described in paragraph (1), (2), (3), or (4) of section 45(d) (determined without regard to any placed in service date), (D)any facility for the production of alcohol used as a fuel (within the meaning of section 40) or biodiesel or agri-biodiesel used as a fuel (within the meaning of section 40A). (2)

Section 263(c) costs

For purposes of this subsection, the term section 263(c) costs means intangible drilling and development costs incurred by the taxpayer which (by reason of an election under section 263(c)) may be deducted as expenses for purposes of this title (other than this paragraph). Such term shall not include costs incurred in drilling a nonproductive well.

5898.

Special rules and definitions

(a)

Withholding and deposit of tax

The Secretary shall provide such rules as are necessary for the withholding and deposit of the tax imposed under section 5896 on any taxable crude oil. (b)

Records and information

Each taxpayer liable for tax under section 5896 shall keep such records, make such returns, and furnish such information (to the Secretary and to other persons having an interest in the taxable crude oil) with respect to such oil as the Secretary may by regulations prescribe. (c)

Return of windfall profit tax

The Secretary shall provide for the filing and the time of such filing of the return of the tax imposed under section 5896. (d)

Definitions

For purposes of this chapter— (1)

Producer

The term producer means the holder of the economic interest with respect to the crude oil. (2)

Crude oil

(A)

In general

The term crude oil includes crude oil condensates and natural gasoline. (B)

Exclusion of newly discovered oil

Such term shall not include any oil produced from a well drilled after the date of the enactment of the Gasoline Price Stabilization Act of 2007, except with respect to any oil produced from a well drilled after such date on any proven oil or gas property (within the meaning of section 613A(c)(6)(A)). (3)

Barrel

The term barrel means 42 United States gallons. (e)

Adjustment of removal price

In determining the removal price of oil from a property in the case of any transaction, the Secretary may adjust the removal price to reflect clearly the fair market value of oil removed. (f)

Regulations

The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter. (g)

Termination

This section shall not apply to taxable crude oil removed after the date which is 3 years after the date of the enactment of this section.

(2)

Clerical amendment

The table of chapters for subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

Chapter 56. Windfall profit on crude oil.

(3)

Deductibility of windfall profit tax

The first sentence of section 164(a) of the Internal Revenue Code of 1986 (relating to deduction for taxes) is amended by inserting after paragraph (5) the following new paragraph:

(6)The windfall profit tax imposed by section 5896.

(4)

Effective date

(A)

In general

The amendments made by this section shall apply to crude oil removed after the date of the enactment of this Act, in taxable years ending after such date. (B)

Transitional rules

For the period ending December 31, 2007, the Secretary of the Treasury or the Secretary’s delegate shall prescribe rules relating to the administration of chapter 56 of the Internal Revenue Code of 1986. To the extent provided in such rules, such rules shall supplement or supplant for such period the administrative provisions contained in chapter 56 of such Code (or in so much of subtitle F of such Code as relates to such chapter 56). (b)

Credit for purchasing fuel-efficient American-made passenger vehicles

(1)

In general

Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:

25E.

Purchase of fuel-efficient American-made passenger vehicles

(a)

In general

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the cost of any qualified passenger vehicle purchased by the taxpayer during the taxable year. (b)

Maximum credit

The credit allowed by this section for the taxable year shall not exceed— (1)$3,000 in the case of a qualified passenger vehicle not described in paragraph (2) or (3), (2)$4,500 in the case of a qualified passenger vehicle the fuel economy of which is— (A)in the case of a truck or sport utility vehicle, at least 45 miles per gallon but less than 55 miles per gallon, and (B)in any other case, at least 55 miles per gallon but less than 65 miles per gallon, and (3)$6,000 in the case of a qualified passenger vehicle the fuel economy of which is— (A)in the case of a truck or sport utility vehicle, at least 55 miles per gallon, and (B)in any other case, at least 65 miles per gallon. (c)

Qualified passenger vehicle

For purposes of this section— (1)

In general

The term qualified passenger vehicle means any automobile (as defined in section 4064(b)(1))— (A)which is purchased after the date of the enactment of this section, (B)which is assembled in the United States by individuals employed under a collective bargaining agreement, (C)the original use of which begins with the taxpayer, (D)substantially all of the use of which is for personal, nonbusiness purposes, and (E)the fuel economy of such automobile is— (i)at least 35 miles per gallon in the case of a truck or sport utility vehicle, and (ii)at least 45 miles per gallon in any other case. (2)

Fuel economy

Fuel economy shall be determined in accordance with section 4064. (d)

Special rules

(1)

Basis reduction

The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit. (2)

Property used outside United States not qualified

No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b)(1).

(2)

Clerical amendment

The table of sections for such subpart A is amended by inserting after the item relating to section 25D the following new item:

Sec. 25E. Purchase of fuel-efficient American-made passenger vehicles.

(3)

Effective date

The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

Merger moratoriums

(a)

Prohibition on certain mergers in oil industry

Section 7 of the Clayton Act (15 U.S.C. 18) is amended by adding at the end the following:

No person engaged in commerce in the petroleum industry may be acquired by another person unless the acquisition is likely to result in a net benefit to consumers by maintaining or increasing competition.

(b)

Moratorium on large petroleum and cruel oil mergers

(1)

One-year moratorium

During the one-year period beginning on the date of the enactment of this Act and except as provided in paragraph (2), with respect to petroleum and crude oil products no explorer, producer, transporter, refiner, or wholesale distributor of such products, or operator of a retail gasoline outlet, with annual net sales or total assets of more than $10,000,000 shall merge or acquire, directly or indirectly, any voting securities or assets of any other such explorer, producer, transporter, refiner, distributor, or operator with annual net sales or total assets of more than $10,000,000. (2)

Waiver Authority

The Attorney General may waive the moratorium imposed by paragraph (1) only under extraordinary circumstances, such as insolvency or similar financial distress of one of the affected parties.

Petroleum Industry Concentration and Market Power Review Commission

(a)

Establishment of commission

There is established a commission to be known as the Petroleum Industry Concentration and Market Power Review Commission (in this section referred to as the Commission). (b)

Duties of the commission

(1)

Study on petroleum industry

The Commission shall study the nature, causes, and consequences of concentration of ownership in the exploration, production, transportation, refinement, wholesale distribution, and retail sale of crude oil and petroleum products in the United States in the broadest possible terms. (2)

Issues to be addressed

The study shall include an examination of the following matters: (A)The nature and extent of the concentration described in paragraph (1). (B)Current trends in such concentration and what such industry is likely to look like in the near term and longer term future. (C)The effect of such concentration on the exploration, production, transportation, refinement, wholesale distribution, and retail sale of crude oil and petroleum products. (D)The effect of such concentration on prices at the wholesale and retail levels. (E)The effect of such concentration on consumers of petroleum products, including retail consumers, businesses (including fuel dependent industries such as aviation and trucking), and farmers. (F)The relationship between current laws and administrative practices and the support and encouragement of such concentration. (G)Such related matters as the Commission determines to be important. (c)

Membership of commission

(1)

Composition

The Commission shall be composed of 12 members as follows: (A)Three persons shall be appointed by the President pro tempore of the Senate upon the recommendation of the Majority Leader of the Senate, after consultation with the Chairman of the Committee on Energy and Natural Resources. (B)Three persons shall be appointed by the President pro tempore of the Senate upon the recommendation of the Minority Leader of the Senate, after consultation with the ranking minority member of the Committee on Energy and Natural Resources. (C)Three persons shall be appointed by the Speaker of the House of Representatives, after consultation with the Chairman of the Committee on Energy and Commerce. (D)Three persons shall be appointed by the Minority Leader of the House of Representatives, after consultation with the ranking minority member of the Committee on Energy and Commerce. (2)

Qualifications of members

(A)

Appointments

Persons who are appointed under paragraph (1) shall be persons who— (i)have expertise in petroleum economics and antitrust, or have other pertinent qualifications or experience relating to petroleum industries; and (ii)are not officers or employees of the United States. (B)

Other consideration

Persons who are appointed under paragraph (1) shall— (i)be representative of a broad cross sector of— (I)explorers, producers, transporters, refiners, wholesale distributors, and retail sellers in the petroleum industry; (II)various antitrust perspectives within the United States; and (III)consumers, fuel-dependent businesses, and other interests that the Secretary considers necessary to ensure a balanced representation of perspectives and expertise in the petroleum industry; and (ii)provide fresh insights to analyzing the causes and impacts of the concentration of ownership described in subsection (b)(1). (3)

Period of appointment and vacancies

(A)

Period of appointment

Members shall be appointed not later than 60 days after the date of enactment of this Act and the appointment shall be for the life of the Commission. (B)

Vacancies

Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment. (4)

Meetings

(A)

In general

The Commission shall meet at the call of the Chairman. (B)

Initial meeting

Not later than 30 days after the date on which all members of the Commission have been appointed, the Commission shall hold its first meeting. (5)

Chairman and vice chairman

The members of the Commission shall elect a chairman and vice chairman from among the members of the Commission. (6)

Quorum

A majority of the members of the Commission shall constitute a quorum for the transaction of business. (d)

Final report

(1)

Findings, conclusion, and recommendations of Commission

Not later than 12 months after the date of the initial meeting of the Commission, the Commission shall submit to the President and Congress a final report that contains— (A)the findings and conclusions of the study of the Commission required under subsection (b); and (B)recommendations for addressing any problems identified in such study. (2)

Separate views

Any member of the Commission may submit additional findings and recommendations as part of the final report. (e)

Powers of commission

(1)

Hearings

The Commission may hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as the Commission may find advisable to fulfill the requirements of this section. The Commission shall hold at least one hearing in Washington, D.C., and at least four in a variety of geographic regions of the United States. (2)

Information from Federal agencies

The Commission may secure directly from any Federal department or agency such information as the Commission considers necessary to carry out the provisions of this section. Upon request of the Chairman of the Commission, the head of such department or agency shall furnish such information to the Commission. (3)

Mails

The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the Federal Government. (f)

Commission personnel matters

(1)

Compensation of members

Each member of the Commission shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Commission. (2)

Travel expenses

The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of duties of the Commission. (3)

Staff

(A)

In general

The Chairman of the Commission may, without regard to the civil service laws and regulations, appoint and terminate an executive director and such other additional personnel as may be necessary to enable the Commission to perform its duties. The employment of an executive director shall be subject to confirmation by the Commission. (B)

Compensation

The Chairman of the Commission may fix the compensation of the executive director and other personnel without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the executive director and other personnel may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title. (4)

Detail of government employees

Upon request of the Chairman, the head of any Federal department or agency may detail any of the personnel of that department or agency to the Commission to assist it in carrying out its duties under this section. Such detail shall be without reimbursement and without interruption or loss of civil service status or privilege. (5)

Procurement of temporary and intermittent services

The Chairman of the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title. (g)

Support services

The Administrator of General Services shall provide to the Commission on a reimbursable basis such administrative support services as the Commission may request. (h)

Authorization for appropriations

There is authorized to be appropriated $2,000,000 to carry out the provisions of this section.

Increased average fuel economy standards

(a)

In General

Section 32902 of title 49, United States Code, is amended— (1)in subsection (c)— (A)by striking (1) Subject to paragraph (2) of this subsection, the and inserting The; and (B)by striking paragraph (2); and (2)by redesignating subsections (i) and (j) in order as subsections (k) and (l), and by inserting after subsection (h) the following:

(i)

Standards for Model Years After 2009

The Secretary of Transportation shall prescribe by regulation average fuel economy standards for automobiles manufactured by a manufacturer in model years after model year 2009, that shall— (1)ensure that the average fuel economy achieved by automobiles (including passenger automobiles) manufactured by a manufacturer in model years after 2017 is no less than 37 miles per gallon, and in model years after 2022 is no less than 40 miles per gallon; (2)ensure that improvements to fuel economy standards do not degrade the safety of automobiles manufactured by a manufacturer; and (3)maximize the retention of jobs in the automobile manufacturing sector of the United States. (j)

Sized-Based Standards

The Secretary may establish separate standards for different classes of automobiles (including passenger automobiles) according to size.

(b)

Conforming Amendments

Such section is further amended— (1)in subsection (c)(1) in the first sentence by inserting and subsection (i) after of this subsection; and (2)in subsection (k) (as redesignated by subsection (a)) by striking or (g) and inserting (g), or (i).

10.

Fuel economy of the Federal fleet of vehicles

(a)

Baseline average fuel economy

The head of each executive agency shall determine, for each class of vehicles that are in the agency’s fleet of vehicles in fiscal year 2008, the average fuel economy for all of the vehicles in that class that are in the agency’s fleet of vehicles for that fiscal year. For the purposes of this section, the average fuel economy so determined for the agency’s vehicles in a class of vehicles shall be the baseline average fuel economy for the agency’s fleet of vehicles in that class. (b)

Increase of average fuel economy

The head of an executive agency shall manage the procurement of vehicles in each class of vehicles for that agency in such a manner that— (1)not later than September 30, 2010, the average fuel economy of the new vehicles in the agency’s fleet of vehicles in each class of vehicles is not less than three miles per gallon higher than the baseline average fuel economy determined for that class; and (2)not later than September 30, 2013, the average fuel economy of the new vehicles in the agency’s fleet of vehicles in each class of vehicles is not less than six miles per gallon higher than the baseline average fuel economy determined for that class. (c)

Calculation of average fuel economy

Average fuel economy shall be calculated for the purposes of this section in accordance with guidance which the Secretary of Transportation shall prescribe for the implementation of this section. (d)

Definitions

(1)The term “class of vehicles” means a class of vehicles for which an average fuel economy standard is in effect under chapter 329 of title 49, United States Code. (2)The term “executive agency” has the meaning given the term in section 4(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)). (3)The term “new vehicle”, with respect to the fleet of vehicles of an executive agency, means a vehicle procured by or for the agency after September 30, 2009.