Average fuel economy standards for automobiles

(a)

Increased standards

Section 32902 of title 49, United States Code, is amended— (1)by amending subsection (a) to read as follows:

(a)

Non-passenger automobiles

(1)Not later than 18 months before the beginning of each model year, the Secretary of Transportation shall prescribe by regulation average fuel economy standards for non-passenger automobiles manufactured by a manufacturer in that model year. Each standard prescribed under this paragraph shall be the maximum feasible average fuel economy level that the Secretary determines the manufacturers can achieve in that model year. (2)Each standard shall be expressed in terms of average miles per gallon of fuel and in terms of average grams per mile of carbon dioxide emissions, such that the specified average grams per mile of carbon dioxide emissions is equivalent to the average miles per gallon of fuel specified in the standard for that model year. (3)The Secretary may prescribe separate standards for different classes of automobiles under this subsection based on vehicle attributes pursuant to subsection (k).

;

(2)by amending subsection (b) to read as follows:

(b)

Passenger automobiles

(1)Not later than 18 months before the beginning of each model year, the Secretary of Transportation shall prescribe by regulation average fuel economy standards for passenger automobiles manufactured by a manufacturer in that model year. Each standard prescribed under this paragraph shall be the maximum feasible average fuel economy level that the Secretary determines the manufacturers can achieve in that model year. (2)Each standard shall be expressed in terms of average miles per gallon of fuel and in terms of average grams per mile of carbon dioxide emissions, such that the specified average grams per mile of carbon dioxide emissions is equivalent in stringency to the average miles per gallon of fuel specified in the standard for that model year. (3)The Secretary may prescribe separate standards for different classes of passenger automobiles based on vehicle attributes pursuant to subsection (k). (4)(A)Notwithstanding any other provision of this section, for any model year in which the Secretary prescribes average fuel economy standards for passenger automobiles on the basis of vehicle attributes pursuant to subsection (k), the average fuel economy standard for passenger automobiles manufactured by a manufacturer in that model year shall also provide for an alternative minimum standard that shall apply only to a manufacturer’s domestically manufactured passenger automobiles, as calculated under section 32904 as in effect on June 24, 2007. (B)The alternative minimum standard referred to in subparagraph (A) shall be the greater of— (i)27.5 miles per gallon; or (ii)92 percent of the average fuel economy projected by the Secretary for the combined domestic and foreign fleets manufactured for sale in the United States by all manufacturers in that model year, which projection shall be published in the Federal Register when the standard for that model year is promulgated in accordance with this section. (C)The alternative minimum standard under this paragraph shall apply to a manufacturer’s domestically manufactured passenger automobiles only if the passenger automobile standard established on the basis of vehicle attributes pursuant to this subsection, excluding any credits transferred by the manufacturer pursuant to section 32903(g) from other categories of automobiles described in such section, would allow that manufacturer to comply with a less stringent passenger automobile standard than the alternative minimum standard.

; and

(3)by amending subsection (c) to read as follows:

(c)

Average fuel economy for automobiles after 2021

In prescribing standards under subsections (a) and (b), the Secretary shall prescribe separate average fuel economy standards for passenger automobiles and non-passenger automobiles such that— (1)the projected combined fuel economy average for model year 2022 shall not be greater than 35 miles per gallon; and (2)the projected combined fuel economy average for model year 2022 and subsequent model years shall be not less than 32 miles per gallon,

for the total fleet of automobiles manufactured for sale in the United States.

(b)

Authority of the Secretary To prescribe standards based on vehicle attributes

Section 32902 of title 49, United States Code, is further amended by adding at the end the following:

(k)

Authority of the Secretary To prescribe standards based on vehicle attributes

(1)In prescribing average fuel economy standards under this section, the Secretary may by regulation prescribe separate average fuel economy standards for passenger automobiles and non-passenger automobiles based on vehicle attributes related to fuel economy, which includes carbon efficiency for purposes of this chapter, and express the standards in the form of a mathematical function. (2)If the Secretary prescribes standards for passenger automobiles on the basis of vehicle attributes, the Secretary shall provide a transition period during the first 3 model years in which an attribute-based standard would apply during which each manufacturer may elect whether to comply with the attribute-based standard or with the single corporate average fuel economy level prescribed under subsection (b). (l)The Secretary may prescribe regulations under this section establishing average fuel economy standards for automobiles for 1 or more consecutive model years, up to a maximum of 5 consecutive model years at one time.

(c)

Credit transferring within a manufacturer’s fleet

Section 32903 of title 49, United States Code, is amended by adding at the end the following:

(g)

Credit transferring within a manufacturer’s fleet

(1)The Secretary of Transportation shall establish by regulation a corporate average fuel economy credit transferring program to allow any manufacturer whose automobiles exceed any of the average fuel economy standards prescribed under section 32902 to transfer the credits earned under this section and to apply such credits within that manufacturer’s fleet to a compliance category of automobiles that fails to achieve the prescribed standards. (2)Credits transferred under this subsection are available to be used in the same model years that the manufacturer could have applied such credits under subsections (a), (b), (d), and (e), as well as for the model year in which the manufacturer earned such credits. The maximum increase in any compliance category attributable to transferred credits is 1.0 mile per gallon in any single model year. (3)In the case of transfers of credits to the category of automobiles described in paragraph (5)(B)(i), the transfer is limited to the extent that the fuel economy level of the manufacturer’s fleet of passenger automobiles manufactured domestically shall comply with the provisions established under section 32902(b)(4), excluding any transfers from other categories of automobiles described in paragraph (5)(B). (4)A credit transferred in conformance with this subsection may only be so transferred if such credit is earned in model year 2010 or any subsequent model year. (5)As used in this subsection— (A)the term fleet means all automobiles manufactured by a manufacturer in a particular model year; and (B)the term compliance category of automobiles means any of the 3 categories of automobiles for which compliance is separately calculated under this chapter, namely— (i)passenger automobiles manufactured domestically; (ii)passenger automobiles not manufactured domestically; and (iii)non-passenger automobiles.

(d)

Technical and conforming amendments

Chapter 329 of title 49, United States Code, is amended— (1)in section 32901(a)— (A)by redesignating paragraph (16) as paragraph (17); and (B)by inserting after paragraph (15) the following:

(16)non-passenger automobile means an automobile that is not a passenger automobile; and

;

(2)in section 32902— (A)in subsection (d)(1), by striking or (c); (B)in subsection (g)— (i)in paragraph (1), by striking subsection (a) or (d) both places it appears and inserting subsection (a), (b), (c), or (d); (ii)in paragraph (2), by striking (and submit the amendment to Congress when required under subsection (c)(2) of this section); and (C)in subsection (h), by inserting (a), (b), after subsections; (D)in subsection (j), by striking subsection (a), and inserting subsection (a), (b),; (3)in section 32903— (A)by striking section 32902(b)–(d) of this title each place it appears and inserting subsection (a) through (d) of section 32902; (B)in subsection (a)— (i)by striking 3 consecutive model years each place it appears and inserting 5 consecutive model years; (ii)in paragraph (2), by striking clause (1) of this subsection and inserting paragraph (1); and (C)in subsection (b)— (i)in paragraph (1), by striking paragraph (2) of this subsection and inserting paragraph (2) and subsection (g); and (ii)in paragraph (2), by striking 3 model years and inserting 5 model years; and (D)in subsection (e), by striking automobiles that are not passenger automobiles and inserting non-passenger automobiles; (4)in section 32904(a)(1)(B), by striking section 32902(b)–(d) and inserting subsections (b) and (d) of section 32902; (5)in section 32909(b), by striking , except that a petition for review and all that follows through referred to in section 32902(c)(2); and (6)in section 32917(b)(1)(B), by striking or (c). (e)

Effective date and transition from existing standards

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act. (2)

Transition for passenger automobiles

The standard or standards for passenger automobiles under the authority of section 32902(b) of title 49, United States Code, in effect on the day before the date of the enactment of this Act, shall remain in effect until a standard for passenger automobiles is prescribed pursuant to such section, as amended by this section. (3)

Average fuel economy standard for non-passenger automobiles in model years through 2011

The average fuel economy standard for non-passenger automobiles, under the authority of section 32902(a) of title 49, United States Code, for model years through 2011, shall be the standard described in the final rule issued by the National Highway Traffic Safety Administration entitled Average Fuel Economy Standards for Light Trucks Model Years 2008–2011 (71 Fed. Reg. 17566), as amended in a notice published by the National Highway Traffic Safety Administration on April 14, 2006 (71 Fed. Reg. 19449). (f)

Civil penalties

Section 32912 of title 49, United States Code, is amended by adding at the end the following:

(e)

Fund for domestic commercialization and production of advanced technology vehicles and components

(1)There shall be established in the Treasury of the United States a separate account to fund domestic commercialization and production of advanced technology vehicles and vehicle components. Civil penalties obtained under this section from any manufacturer that violates a standard prescribed for a model year under section 32902 of this chapter shall be credited to the separate account. (2)Amounts in the separate account shall be available, subject to annual appropriation, without regard to fiscal year limitation. Additional amounts may be appropriated to the account. (3)The Secretary is authorized to make grants from the separate account to automobile manufacturers and component suppliers to pay a portion of the cost to reequip or expand an existing manufacturing facility in the United States to produce advanced technology vehicles or components. (4)The Secretary shall deposit at the end of each fiscal year, in the United States Treasury as miscellaneous receipts, amounts in the separate account that the Secretary decides are in excess of the needs of the account. The Secretary may carry over funds to the following fiscal year, if the Secretary decides that the continued availability of the funds will be necessary to carry out the purposes of this subsection. (5)The Secretary shall promulgate regulations implementing this subsection in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency.

Tire Fuel Efficiency Consumer Information

(a)

In general

Chapter 323 of title 49, United States Code, is amended by inserting after section 32304 the following new section:

32304A.

Tire Fuel Efficiency Consumer Information

(a)

Rulemaking

(1)Not later than 18 months after the date of enactment of this section, the Secretary of Transportation shall, after notice and opportunity for comment, promulgate rules establishing a national tire fuel efficiency consumer information program for replacement tires designed for use on motor vehicles to educate consumers about the effect of replacement tires on automobile fuel efficiency. (2)

Items included in rule

The rulemaking shall include each of the following: (A)A national tire fuel efficiency rating system for motor vehicle replacement tires to assist consumers in making more educated tire purchasing decisions. (B)Requirements for providing information to consumers, including information at the point of sale of replacement tires and other potential information dissemination methods, including the internet. (C)Specifications for test methods for tire manufacturers to use in assessing and rating replacement tires to avoid variation among test equipment and manufacturers. (D)A national tire maintenance consumer education program including, information on tire inflation pressure, alignment, rotation, and tread wear to maximize fuel efficiency. (3)

Applicability

This section shall not apply to tires excluded from coverage under section 575.104(c)(2) of title 49, Code of Federal Regulations, as in effect on date of enactment of this section. (b)

Consultation

The Secretary shall consult with the Secretary of Energy and the Administrator of the Environmental Protection Agency on the means of conveying tire fuel efficiency consumer information. (c)

Report to congress

The Secretary shall conduct periodic assessments of the rules promulgated under this section to determine the utility of such rules to consumers, the level of cooperation by industry, and the contribution to national goals pertaining to energy consumption. The Secretary shall transmit periodic reports detailing the findings of such assessments to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate. (d)

Preemption

Nothing in this section shall prohibit a State or political subdivision of a State from enforcing a law or regulation on tire fuel efficiency consumer information in effect on January 1, 2006. When a requirement under this section is in effect, a State or political subdivision of a State may adopt or enforce a law or regulation on tire fuel efficiency consumer information enacted after January 1, 2006, only if the law or regulation is identical to that requirement. Nothing in this section shall be construed to preempt a State or political subdivision of a State from regulating the fuel efficiency of tires not otherwise preempted under this chapter.

(b)

Enforcement

Section 32308 of such chapter is amended by adding at the end the following:

(e)

Section 32304A

Any person who fails to comply with the national tire fuel efficiency consumer information program under section 32304A is liable to the United States Government for a civil penalty of not more than $50,000 for each violation.

(c)

Table of contents

The table of contents for chapter 301 of title 49 is amended by adding the following new item after the item relating to section 32304:

32304A. Tire fuel efficiency consumer information.