[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1506 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1506

   To increase fuel economy standards for automobiles, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 2007

 Mr. Markey (for himself, Mr. Platts, Mr. George Miller of California, 
Mr. Kirk, Mr. Rangel, Mrs. Bono, Mr. Frank of Massachusetts, Mr. Wolf, 
Mr. Lantos, Mr. Young of Florida, Mr. Lewis of Georgia, Mr. King of New 
York, Ms. Eshoo, Mr. Tom Davis of Virginia, Mr. Sestak, Mr. Gilchrest, 
Ms. Solis, Mr. Castle, Ms. DeGette, Mr. Gerlach, Mr. Olver, Mr. Shays, 
   Mr. Wynn, Mr. Ramstad, Mrs. Capps, Mr. LoBiondo, Mr. Weiner, Mr. 
Reichert, Ms. Hooley, Mr. Saxton, Mr. Inslee, Mr. Smith of New Jersey, 
 Mr. Butterfield, Mr. LaTourette, Mr. Hodes, Mr. Bartlett of Maryland, 
Ms. Shea-Porter, Mr. Kuhl of New York, Mr. Petri, Mr. Grijalva, Mr. Van 
   Hollen, and Mr. Pallone) introduced the following bill; which was 
            referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
   To increase fuel economy standards for automobiles, 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 ``Fuel Economy Reform Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) United States dependence on oil imports imposes 
        tremendous burdens on America's economy, foreign policy, and 
        military.
            (2) According to the Energy Information Administration, 60 
        percent of the crude oil and petroleum products consumed in the 
        United States between April 2005 and March 2006 (12,400,000 
        barrels per day) was imported. At a cost of $60 per barrel of 
        oil, Americans remit an average of $500,000 per minute to other 
        countries for petroleum, money that could have been spent 
        creating domestic jobs and strengthening our Nation's economy.
            (3) A significant percentage of these petroleum imports 
        originate in countries controlled by regimes that are unstable 
        or openly hostile to the interests of the United States. 
        Dependence on production from these countries contributes to 
        the volatility of domestic and global markets and the ``risk 
        premium'' paid by American consumers.
            (4) The Energy Information Administration projects that the 
        total petroleum demand in the United States will increase by 23 
        percent between 2006 and 2026, while domestic crude production 
        is expected to decrease by 11 percent, resulting in an 
        anticipated 28 percent increase in petroleum imports. Absent 
        significant action, our Nation will become more vulnerable to 
        oil price increases, more dependent upon foreign oil, and less 
        able to pursue our national interests.
            (5) It is technically feasible to achieve oil savings of 
        more than 2,500,000 barrels of oil per day by 2017 and 
        7,000,000 barrels of oil per day by 2026. This goal can be 
        achieved by improving the gasoline efficiency of vehicles, 
        replacing oil with cellulosic biofuels, and encouraging the use 
        of public transit and other alternative transportation options.
            (6) Two-thirds of all domestic oil use occurs in the 
        transportation sector, which is 97 percent reliant upon 
        petroleum-based fuels. Passenger vehicles, including light 
        trucks under 10,000 pounds gross vehicle weight, represent over 
        60 percent of the oil used in the transportation sector.
            (7) Corporate average fuel economy of all cars and trucks 
        improved by 70 percent between 1975 and 1987. Between 1987 and 
        2006, fuel economy improvements have stagnated and are much 
        worse than the vehicle fuel economy in many developed countries 
        and some developing countries, including China.
            (8) Significant improvements in engine technology occurred 
        between 1986 and 2006. These advances have been used to make 
        vehicles larger and more powerful, rather than to increase fuel 
        economy. Between 1985 and 2005, average vehicle horsepower 
        nearly doubled, average vehicle weight increased by 25 percent, 
        and acceleration times for new vehicles improved by 25 percent. 
        During the same time period, average vehicle fuel economy 
        decreased by 2 percent.
            (9) According to a 2002 fuel economy report by the National 
        Academies of Science, improvements in automotive technology 
        offer the opportunity to significantly increase fuel economy 
        while maintaining vehicle size and performance and improving 
        safety. The fleet analyzed by the Academies would be able to 
        improve its fuel economy by 10-15 miles per gallon within 10-15 
        years using technologies that were commercially available in 
        2002.
            (10) The 2002 fuel economy study clearly states that fuel 
        economy can be increased without negatively impacting the 
        safety of America's cars and trucks. Some new technologies can 
        increase both safety and fuel economy (such as high strength 
        materials, unibody design, lower bumpers). Design changes 
        related to fuel economy also present opportunities to reduce 
        the incompatibility of tall, stiff, heavy vehicles with the 
        majority of vehicles on the road.
            (11) A 2004 report by David Greene of Oak Ridge National 
        Labs entitled, ``The Effect of Fuel Economy on Automobile 
        Safety: A Reexamination'', demonstrates that fuel economy is 
        not linked with increased fatalities. The report notes that, 
        ``higher mpg is significantly correlated with fewer 
        fatalities''. In other words, a thorough analysis of data from 
        1966 to 2002 indicates that vehicle manufacturers can 
        simultaneously increase fuel economy and improve vehicle 
        safety.
            (12) A 2002 study entitled, ``An Analysis of Traffic Deaths 
        by Vehicle Type and Model'', by Marc Ross and Tom Wenzel from 
        the University of Michigan, demonstrates that large vehicles do 
        not have lower fatality rates than smaller vehicles. Ross and 
        Wenzel analyzed Federal accident data between 1995 and 1999 and 
        showed that the Honda Civic and Volkswagen Jetta both had lower 
        fatality rates for the driver than the Ford Explorer, the Dodge 
        Ram, or the Toyota 4Runner. Even the largest vehicles, such as 
        the Chevrolet Tahoe and Suburban, had fatality rates that were 
        no better than the Jetta or the Nissan Maxima. In other words, 
        a well-designed compact car can be safer than a sport-utility 
        vehicle or a pickup truck. Design, rather than weight, is the 
        key to vehicle safety.
            (13) Significant change must occur to strengthen the 
        economic competitiveness of the domestic auto industry. 
        According to a recent study by the University of Michigan, a 
        sustained gasoline price of $2.86 per gallon would lead 
        Detroit's Big 3 automakers' profits to shrink by $7,000,000,000 
        as they absorb 75 percent of the lost vehicle sales. This would 
        put nearly 300,000 Americans out of work.

SEC. 3. DEFINITION OF AUTOMOBILE.

    (a) In General.--Section 32901(a)(3) of title 49, United States 
Code, is amended by striking ``rated 
at--'' and all that follows through the period at the end and inserting 
``rated at not more than 10,000 pounds gross vehicle weight.''.
    (b) Fuel Economy Information.--Section 32908(a) of title 49, United 
States Code, is amended, by striking ``section--'' and all that follows 
through ``(2)'' and inserting ``section, the term''.
    (c) Effective Date.--The amendments made by this section shall 
apply to model year 2009 and each subsequent model year.

SEC. 4. AVERAGE FUEL ECONOMY STANDARDS.

    (a) Standards.--Section 32902 of title 49, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) in the header, by inserting ``Manufactured 
                Before Model Year 2012'' after ``Non-Passenger 
                Automobiles''; and
                    (B) by adding at the end the following: ``This 
                subsection shall not apply to automobiles manufactured 
                after model year 2011.'';
            (2) in subsection (b)--
                    (A) in the header, by inserting ``Manufactured 
                Before Model Year 2012'' after ``Passenger 
                Automobiles'';
                    (B) by inserting ``and before model year 2009'' 
                after ``1984''; and
                    (C) by adding at the end the following: ``Such 
                standard shall be increased by 4 percent per year for 
                model years 2009 through 2011 (rounded to the nearest 
                1/10 mile per gallon)'';
            (3) by amending subsection (c) to read as follows:
    ``(c) Automobiles Manufactured After Model Year 2011.--(1) Not 
later than 18 months before the beginning of each model year after 
model year 2011, the Secretary of Transportation shall prescribe, by 
regulation--
            ``(A) an average fuel economy standard for automobiles 
        manufactured by a manufacturer in that model year that is the 
        same for each manufacturer; or
            ``(B) based on 1 or more vehicle attributes that relate to 
        fuel economy--
                    ``(i) separate standards for different classes of 
                automobiles; or
                    ``(ii) standards expressed in the form of a 
                mathematical function.
        Any standards prescribed under subparagraph (B) shall apply 
        equally to all manufacturers.
    ``(2)(A) Except as provided under paragraph (3) and subsection (d), 
standards under paragraph (1) shall attain--
            ``(i) a projected level of average fuel economy of at least 
        27.5 miles per gallon for automobiles manufactured by a 
        manufacturer for model year 2012; and
            ``(ii) a projected level of average fuel economy of at 
        least 35 miles per gallon for automobiles manufactured by a 
        manufacturer for model year 2018.
    ``(B)(i) The projected level of average fuel economy for 
automobiles manufactured by a manufacturer for model year 2013 and each 
succeeding model year shall be increased by not less than 4 percent 
from the level for the prior model year (rounded to the nearest 1/10 
mile per gallon).
    ``(ii)(I) Notwithstanding clause (i), the Secretary of 
Transportation may increase the projected level of average fuel economy 
for automobiles manufactured by a manufacturer by less than 4 percent 
from the level for the prior model year for 1 or more model years if 
the Secretary of Transportation, in consultation with the Secretary of 
Energy, determines that--
            ``(aa) the minimum increase required under clause (i) for 
        each model year--
                    ``(AA) is technologically unachievable; or
                    ``(BB) is shown, by clear and convincing evidence, 
                not to be cost effective (as determined under paragraph 
                (4)); and
            ``(bb) an increase of less than the minimum increase 
        required under clause (i) for a model year will not result in a 
        failure to attain the projected levels of average fuel economy 
        required under subparagraph (A).
    ``(II) If a lower increase is prescribed for a model year under 
subclause (I), such increase shall be the maximum increase that--
            ``(aa) is technologically achievable; and
            ``(bb) is cost effective.
    ``(C) Notwithstanding subparagraphs (A) and (B), the fleetwide 
average fuel economy standard for automobiles manufactured by a 
manufacturer in a model year for that manufacturer's domestic fleet and 
for its foreign fleet as calculated under section 32904 as in effect 
before the date of enactment of the Fuel Economy Reform Act shall not 
be less than 92 percent of the average fuel economy projected by the 
Secretary for the combined domestic and foreign fleets manufactured by 
that manufacturer in that model year.
    ``(3)(A) In determining cost effectiveness under paragraph 
(2)(B)(ii), the Secretary of Transportation shall take into account the 
total value to the Nation of reduced petroleum use, including the value 
of reducing external costs of petroleum use, using--
            ``(i) a value for such external costs equal to 50 percent 
        of the value of a gallon of gasoline saved; or
            ``(ii) the amount determined in an analysis of the external 
        costs of petroleum use that considers--
                    ``(I) value to consumers;
                    ``(II) economic security;
                    ``(III) national security;
                    ``(IV) foreign policy;
                    ``(V) the impact of oil use--
                            ``(aa) on sustained cartel rents paid to 
                        foreign suppliers;
                            ``(bb) on long-run potential gross domestic 
                        product due to higher normal-market oil price 
                        levels, including inflationary impacts;
                            ``(cc) on import costs, wealth transfers, 
                        and potential gross domestic product due to 
                        increased trade imbalances;
                            ``(dd) on import costs and wealth transfers 
                        during oil shocks;
                            ``(ee) on macroeconomic dislocation and 
                        adjustment costs during oil shocks;
                            ``(ff) on the cost of existing energy 
                        security policies, including the management of 
                        the Strategic Petroleum Reserve;
                            ``(gg) on the timing and severity of the 
                        oil peaking problem;
                            ``(hh) on the risk, probability, size, and 
                        duration of oil supply disruptions;
                            ``(ii) on OPEC strategic behavior and long-
                        run oil pricing;
                            ``(jj) on the short term elasticity of 
                        energy demand and the magnitude of price 
                        increases resulting from a supply shock;
                            ``(kk) on oil imports, military costs, and 
                        related security costs, including intelligence, 
                        homeland security, sea lane security and 
                        infrastructure, and other military activities;
                            ``(ll) on oil imports, diplomatic and 
                        foreign policy flexibility, and connections to 
                        geopolitical strife, terrorism, and 
                        international development activities;
                            ``(mm) all relevant environmental hazards 
                        under the jurisdiction of the Environmental 
                        Protection Agency; and
                            ``(nn) on well-to-wheels urban and local 
                        air emissions of `pollutants' and their 
                        uninternalized costs;
                    ``(VI) the impact of the oil or energy intensity of 
                the United States economy on the sensitivity of the 
                economy to oil price changes, including the magnitude 
                of gross domestic product losses in response to short 
                term price shocks or long term price increases;
                    ``(VII) the impact of United States payments for 
                oil imports on political, economic, and military 
                developments in unstable or unfriendly oil exporting 
                countries;
                    ``(VIII) the uninternalized costs of pipeline and 
                storage oil seepage, and for risk of oil spills from 
                production, handling, and transport, and related 
                landscape damage; and
                    ``(IX) additional relevant factors, as determined 
                by the Secretary.
    ``(B) When considering the value to consumers of a gallon of 
gasoline saved, the Secretary of Transportation may not use a value 
less than the greatest of--
            ``(i) the average national cost of a gallon of gasoline 
        sold in the United States during the 12-month period ending on 
        the date on which the new fuel economy standard is proposed;
            ``(ii) the most recent weekly estimate by the Energy 
        Information Administration of the Department of Energy of the 
        average national cost of a gallon of gasoline (all grades) sold 
        in the United States; or
            ``(iii) the gasoline prices projected by the Energy 
        Information Administration for the 20-year period beginning in 
        the year following the year in which the standards are 
        established.
    ``(4) In prescribing standards under this subsection, the Secretary 
may prescribe standards for 1 or more model years.
    ``(5)(A) Not later than December 31, 2009, the Secretary of 
Transportation, the Secretary of Energy, and the Administrator of the 
Environmental Protection Agency shall submit a joint report to Congress 
on the state of global automotive efficiency technology development, 
and on the accuracy of tests used to measure fuel economy of 
automobiles under section 32904(c), utilizing the study and assessment 
of the National Academy of Sciences referred to in subparagraph (B).
    ``(B) The Secretary shall enter into appropriate arrangements with 
the National Academy of Sciences to conduct a comprehensive study of 
the technological opportunities to enhance fuel economy and an analysis 
and assessment of the accuracy of fuel economy tests used by the 
Administrator of the Environmental Protection Agency to measure fuel 
economy for each model under section 32904(c). Such analysis and 
assessment shall identify any additional factors or methods that should 
be included in tests to measure fuel economy for each model to more 
accurately reflect actual fuel economy of automobiles. The Secretary 
and the Administrator of the Environmental Protection Agency shall 
furnish, at the request of the Academy, any information which the 
Academy determines to be necessary to conduct the study, analysis, and 
assessment under this subparagraph.
    ``(C) The report submitted under subparagraph (A) shall include--
            ``(i) the study of the National Academy of Sciences 
        referred to in subparagraph (B); and
            ``(ii) an assessment by the Secretary of technological 
        opportunities to enhance fuel economy and opportunities to 
        increase overall fleet safety.
    ``(D) The report submitted under subparagraph (A) shall identify 
and examine additional opportunities to reform the regulatory structure 
under this chapter, including approaches that seek to merge vehicle and 
fuel requirements into a single system that achieves equal or greater 
reduction in petroleum use and environmental benefits.
    ``(E) The report submitted under subparagraph (A) shall--
            ``(i) include conclusions reached by the Administrator of 
        the Environmental Protection Agency, as a result of detailed 
        analysis and public comment, on the accuracy of current fuel 
        economy tests;
            ``(ii) identify any additional factors that the 
        Administrator determines should be included in tests to measure 
        fuel economy for each model to more accurately reflect actual 
        fuel economy of automobiles; and
            ``(iii) include a description of options, formulated by the 
        Secretary and the Administrator, to incorporate such additional 
        factors in fuel economy tests in a manner that will not 
        effectively increase or decrease average fuel economy for any 
        automobile manufacturer.
    ``(F) There is authorized to be appropriated to the Secretary such 
amounts as are required to carry out the study, analysis, and 
assessment required by subparagraph (B).''; and
            (4) in subsection (g)(2), by striking ``(and submit the 
        amendment to Congress when required under subsection (c)(2) of 
        this section)''.
    (b) Conforming Amendments.--
            (1) In general.--Chapter 329 of title 49, United States 
        Code, is amended--
                    (A) in section 32903--
                            (i) by striking ``passenger'' each place it 
                        appears;
                            (ii) by striking ``section 32902(b)-(d) of 
                        this title'' each place it appears and 
                        inserting ``subsection (c) or (d) of section 
                        32902'';
                            (iii) by striking subsection (e); and
                            (iv) by redesignating subsection (f) as 
                        subsection (e); and
                    (B) in section 32904(a)--
                            (i) by striking ``passenger'' each place it 
                        appears; and
                            (ii) in paragraph (1), by striking 
                        ``subject to'' and all that follows through 
                        ``section 32902(b)-(d) of this title'' and 
                        inserting ``subsection (c) or (d) of section 
                        32902''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply to automobiles manufactured after model year 2011.

SEC. 5. AUTOMOBILE SAFETY.

    Nothing in this Act shall be construed to limit, constrain, 
supercede, or expand the authority of the Secretary of Transportation 
to prescribe motor vehicle safety standards to reduce traffic accidents 
and deaths and injuries resulting from traffic accidents conferred by 
chapter 301 of title 49, United States Code.
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