[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3239 Reported in House (RH)]






                                                 Union Calendar No. 194
110th CONGRESS
  1st Session
                                H. R. 3239

                      [Report No. 110-307, Part I]

  To promote advanced plug-in hybrid vehicles and vehicle components.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2007

  Mr. Boucher (for himself and Mr. Dingell) introduced the following 
 bill; which was referred to the Committee on Energy and Commerce, and 
 in addition to the Committees on Oversight and Government Reform and 
 Science and Technology, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

                             August 3, 2007

           Reported from the Committee on Energy and Commerce

                             August 3, 2007

     Committees on Oversight and Government Reform and Science and 
Technology discharged; committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
  To promote advanced plug-in hybrid vehicles and vehicle components.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.

    (a) Establishment of Program.--The Secretary of Energy shall 
establish a program to provide guarantees of loans by private 
institutions for the construction of facilities for the manufacture of 
advanced vehicle batteries and battery systems that are developed and 
produced in the United States, including advanced lithium ion batteries 
and hybrid electrical system and component manufacturers and software 
designers.
    (b) Requirements.--The Secretary may provide a loan guarantee under 
subsection (a) to an applicant if--
            (1) without a loan guarantee, credit is not available to 
        the applicant under reasonable terms or conditions sufficient 
        to finance the construction of a facility described in 
        subsection (a);
            (2) the prospective earning power of the applicant and the 
        character and value of the security pledged provide a 
        reasonable assurance of repayment of the loan to be guaranteed 
        in accordance with the terms of the loan; and
            (3) the loan bears interest at a rate determined by the 
        Secretary to be reasonable, taking into account the current 
        average yield on outstanding obligations of the United States 
        with remaining periods of maturity comparable to the maturity 
        of the loan.
    (c) Criteria.--In selecting recipients of loan guarantees from 
among applicants, the Secretary shall give preference to proposals 
that--
            (1) meet all applicable Federal and State permitting 
        requirements;
            (2) are most likely to be successful; and
            (3) are located in local markets that have the greatest 
        need for the facility.
    (d) Maturity.--A loan guaranteed under subsection (a) shall have a 
maturity of not more than 20 years.
    (e) Terms and Conditions.--The loan agreement for a loan guaranteed 
under subsection (a) shall provide that no provision of the loan 
agreement may be amended or waived without the consent of the 
Secretary.
    (f) Assurance of Repayment.--The Secretary shall require that an 
applicant for a loan guarantee under subsection (a) provide an 
assurance of repayment in the form of a performance bond, insurance, 
collateral, or other means acceptable to the Secretary in an amount 
equal to not less than 20 percent of the amount of the loan.
    (g) Guarantee Fee.--The recipient of a loan guarantee under 
subsection (a) shall pay the Secretary an amount determined by the 
Secretary to be sufficient to cover the administrative costs of the 
Secretary relating to the loan guarantee.
    (h) Full Faith and Credit.--The full faith and credit of the United 
States is pledged to the payment of all guarantees made under this 
section. Any such guarantee made by the Secretary shall be conclusive 
evidence of the eligibility of the loan for the guarantee with respect 
to principal and interest. The validity of the guarantee shall be 
incontestable in the hands of a holder of the guaranteed loan.
    (i) Reports.--Until each guaranteed loan under this section has 
been repaid in full, the Secretary shall annually submit to Congress a 
report on the activities of the Secretary under this section.
    (j) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (k) Termination of Authority.--The authority of the Secretary to 
issue a loan guarantee under subsection (a) terminates on the date that 
is 10 years after the date of enactment of this Act.

SEC. 2. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

    Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``and components thereof'' after 
                ``sales of efficient hybrid and advanced diesel 
                vehicles'';
                    (B) by inserting ``and hybrid component 
                manufacturers'' after ``grants to automobile 
                manufacturers'';
                    (C) by inserting ``, plug-in electric hybrid,'' 
                after ``production of efficient hybrid'';
                    (D) by inserting ``and suppliers'' after 
                ``automobile manufacturers''; and
                    (E) by adding at the end the following: ``Priority 
                shall be given to the refurbishment or retooling of 
                manufacturing facilities that have recently ceased 
                operation or will cease operation in the near 
                future.''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Coordination With State and Local Programs.--The Secretary 
may coordinate implementation of this section with State and local 
programs designed to accomplish similar goals, including the retention 
and retraining of skilled workers from the such manufacturing 
facilities, including by establishing matching grant arrangements.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.''.

SEC. 3. PLUG-IN HYBRID VEHICLE PROGRAM.

    (a) Plug-In Electric Drive Vehicle Program.--
            (1) Establishment.--The Secretary of Energy (in this 
        section referred to as the ``Secretary'') shall establish a 
        competitive program to provide grants on a cost-shared basis to 
        State governments, local governments, metropolitan 
        transportation authorities, air pollution control districts, 
        private or nonprofit entities or combinations thereof, to carry 
        out a project or projects to encourage the use of plug-in 
        electric drive vehicles or other emerging electric vehicle 
        technologies, as determined by the Secretary.
            (2) Administration.--The Secretary shall establish 
        requirements for applications for grants under this section, 
        including reporting of data to be summarized for dissemination 
        to the Department, other grantees, and the public, including 
        vehicle and component performance and vehicle and component 
        life cycle costs.
            (3) Selection criteria.--
                    (A) Priority.--When making awards under this 
                subsection, the Secretary shall give priority 
                consideration to applications that encourage early 
                widespread utilization of such vehicles and are likely 
                to make a significant contribution to the advancement 
                of the production of such vehicles in the United 
                States.
                    (B) Scope of programs.--When making awards under 
                this subsection, the Secretary shall ensure that the 
                programs will maximize diversity in applications, 
                manufacturers, end-uses and vehicle control systems.
            (4) Authorizations of appropriations.--There are authorized 
        to be appropriated to the Secretary to carry out the program 
        under this subsection, such sums as may be necessary.
            (5) Certain applicants.--A battery manufacturer that 
        proposes to supply to an applicant for a grant under this 
        section a battery with a capacity of greater than 1 kilowatt-
        hour for use in a plug-in electric drive vehicle shall--
                    (A) ensure that the applicant includes in the 
                application a description of the price of the battery 
                per kilowatt hour;
                    (B) on approval by the Secretary of the 
                application, publish, or permit the Secretary to 
                publish, the price described in subparagraph (A); and
                    (C) for any order received by the battery 
                manufacturer for at least 1,000 batteries, offer 
                batteries at that price.
    (b) Electric Drive Education Program.--
            (1) In general.--The Secretary shall develop a nationwide 
        electric drive transportation education program under which the 
        Secretary shall provide--
                    (A) teaching materials to secondary schools and 
                high schools; and
                    (B) assistance for programs relating to electric 
                drive system and component engineering to institutions 
                of higher education.
            (2) Electric vehicle competition.--The program established 
        under paragraph (1) shall include a plug-in hybrid electric 
        vehicle competition for institutions of higher education, which 
        shall be known as the ``Dr. Andrew Frank Plug-In Hybrid 
        Electric Vehicle Competition''.
            (3) Engineers.--In carrying out the program established 
        under paragraph (1), the Secretary shall provide financial 
        assistance to institutions of higher education to create new, 
        or support existing, degree programs to ensure the availability 
        of trained electrical and mechanical engineers with the skills 
        necessary for the advancement of--
                    (A) plug-in electric drive vehicles; and
                    (B) other forms of electric drive vehicles.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary to carry out this 
        subsection such sums as may be necessary.

SEC. 4. PLUG-IN HYBRID DEMONSTRATION VEHICLES.

    (a) In General.--The Secretary of Energy shall establish a program 
to make grants to owners of domestic motor vehicle manufacturing or 
production facilities for the production of plug-in hybrid electric 
motors or conversion modules to be used as electricity storage capacity 
for utilities.
    (b) Programs.--The Secretary of Energy shall establish programs to 
determine how to best integrate plug-in hybrid vehicles into the 
electric power grid and into the overall electricity infrastructure. 
These programs shall be conducted in 5 separate regions across the 
United States at the discretion of the Secretary.
    (c) Pilot Programs.--The Secretary shall establish during the first 
6 months of 2008, with other governmental entities, no less than 5 
separate pilot programs to convert at least 1000 vehicles in each 
program to plug-hybrid electric vehicles.
    (d) Federal Contribution.--The Department of Energy shall 
contribute up to 50 percent of the cost of conversion modules.
    (e) Installation.--Installations of electricity storage devices 
shall be undertaken by trained and certified mechanics.
    (f) Monitoring.--The Secretary of Energy shall require the 
monitoring of reliability, efficiency, breakeven costs, and customer 
satisfaction for a period of 3 years.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.

SEC. 5. INCENTIVE FOR FEDERAL AND STATE FLEETS FOR MEDIUM AND HEAVY 
              DUTY HYBRIDS.

    Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is 
amended--
            (1) in paragraph (3), by striking ``or a dual fueled 
        vehicle'' and inserting ``, a dual fueled vehicle, or a medium 
        or heavy duty vehicle that is a hybrid vehicle'';
            (2) by redesignating paragraphs (11), (12), (13), and (14) 
        as paragraphs (12), (14), (15), and (16), respectively;
            (3) by inserting after paragraph (10) the following new 
        paragraph:
            ``(11) the term `hybrid vehicle' means a vehicle powered 
        both by a diesel or gasoline engine and an electric motor or 
        hydraulic energy storage device that is recharged as the 
        vehicle operates;''; and
            (4) by inserting after paragraph (12) (as so redesignated 
        by paragraph (2) of this section) the following new paragraph:
            ``(13) the term `medium or heavy duty vehicle' means a 
        vehicle that--
                    ``(A) in the case of a medium duty vehicle, has a 
                gross vehicle weight rating of more than 8,500 pounds 
                but not more than 14,000 pounds; and
                    ``(B) in the case of a heavy duty vehicle, has a 
                gross vehicle weight rating of more than 14,000 
                pounds;''.

SEC. 6. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is 
amended--
            (1) by striking ``The Secretary'' in subsection (a) and 
        inserting ``(1) The Secretary''; and
            (2) by adding at the end of subsection (a) the following:
    ``(2) Not later than January 31, 2009, the Secretary shall allocate 
credit in an amount to be determined by the Secretary for acquisition 
of--
            ``(A) a hybrid electric vehicle;
            ``(B) a plug-in hybrid electric vehicle;
            ``(C) a fuel cell electric vehicle;
            ``(D) a neighborhood electric vehicle; or
            ``(E) a medium-duty or heavy-duty electric, hybrid 
        electric, hybrid hydraulic, or plug-in hybrid electric 
        vehicle.''; and
            (3) by adding at the end the following:
    ``(e) Definitions.--In this section:
            ``(1) Fuel cell electric vehicle.--The term `fuel cell 
        electric vehicle' means an on-road or nonroad vehicle that uses 
        a fuel cell (as defined in section 803 of the Spark M. 
        Matsunaga Hydrogen Research, Development, and Demonstration Act 
        of 2005 (42 U.S.C. 16152)).
            ``(2) Hybrid electric vehicle.--The term `hybrid electric 
        vehicle' means a new qualified hybrid motor vehicle (as defined 
        in section 30B(d)(3) of the Internal Revenue Code of 1986).
            ``(3) Medium-duty or heavy-duty electric, hybrid electric, 
        or plug-in hybrid electric vehicle.--The term `medium-duty or 
        heavy-duty electric, hybrid electric, or plug-in hybrid 
        electric vehicle' is an electric, hybrid electric, or plug-in 
        hybrid electric motor vehicle greater than 8,501 pounds gross 
        vehicle rating.
            ``(4) Neighborhood electric vehicle.--The term 
        `neighborhood electric vehicle' means a 4-wheeled on-road or 
        nonroad vehicle, with a top attainable speed in 1 mile of more 
        than 20 mph and not more than 25 mph on a paved level surface, 
        that is propelled by an electric motor and on board, 
        rechargeable energy storage system that is rechargeable using 
        an off-board source of electricity.
            ``(5) Plug-in hybrid electric vehicle.--The term `plug-in 
        hybrid electric vehicle' means a light-duty, medium-duty, or 
        heavy-duty on-road or nonroad vehicle that is propelled by any 
        combination of--
                    ``(A) an electric motor and on-board, rechargeable 
                energy storage system capable of operating the vehicle 
                in intermittent or continuous all-electric mode and 
                which is rechargeable using an off-board source of 
                electricity; and
                    ``(B) an internal combustion engine or heat engine 
                using any combustible fuel.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2008 through 2013.''.

SEC. 7. NEAR-TERM ELECTRIC DRIVE TRANSPORTATION DEPLOYMENT PROGRAM.

    (a) Revolving Loan Program.--
            (1) In general.--The Secretary shall establish a revolving 
        loan program to provide loans to eligible entities for the 
        conduct of qualified electric transportation projects.
            (2) Criteria.--The Secretary shall establish criteria for 
        the provision of loans under this subsection.
    (b) Market Assessment and Electricity Usage Program.--
            (1) In general.--The Administrator of the Environmental 
        Protection Agency, in consultation with the Secretary and 
        private industry, shall carry out a program--
                    (A) to inventory and analyze existing electric 
                drive transportation technologies and hybrid 
                technologies and markets; and
                    (B) to identify and implement methods of removing 
                barriers for existing and emerging applications of 
                electric drive transportation technologies and hybrid 
                transportation technologies.
            (2) Electricity usage.--The Secretary, in consultation with 
        the Administrator of the Environmental Protection Agency and 
        private industry, shall carry out a program--
                    (A) to develop systems and processes--
                            (i) to enable plug-in electric vehicles to 
                        enhance the availability of emergency back-up 
                        power for consumers; and
                            (ii) to study and demonstrate the potential 
                        value to the electric grid of using the energy 
                        stored in the on-board storage systems to 
                        improve the efficiency of the grid generation 
                        system; and
                    (B) to work with utilities and other interested 
                stakeholders to study and demonstrate the implications 
                of the introduction of plug-in electric vehicles and 
                other types of electric transportation on the 
                production of electricity from renewable resources.
            (3) Off-peak electricity usage grants.--In carrying out the 
        program under paragraph (2), the Secretary shall provide grants 
        to assist eligible public and private electric utilities to 
        conduct programs or activities to encourage owners of electric 
        drive transportation technologies--
                    (A) to use off-peak electricity; or
                    (B) to have the load managed by the utility.
    (c) Definition of Qualified Electric Transportation Project.--In 
this section, the term ``qualified electric transportation project'' 
includes a project relating to--
            (1) ship-side or shore-side electrification for vessels;
            (2) truck-stop electrification;
            (3) electric truck refrigeration units;
            (4) battery-powered auxiliary power units for trucks;
            (5) electric airport ground support equipment;
            (6) electric material/cargo handling equipment;
            (7) electric or dual-mode electric freight rail;
            (8) any distribution upgrades needed to supply electricity 
        to the qualified electric transportation projects; and
            (9) any ancillary infrastructure, including panel upgrades, 
        battery chargers, in-situ transformer, and trenching.
    (d) Authorization of Appropriations.--There are authorized to carry 
this section such sums as may be necessary.

SEC. 8. STUDYING THE BENEFITS OF PLUG-IN HYBRID ELECTRIC DRIVE VEHICLES 
              AND ELECTRIC DRIVE TRANSPORTATION.

    (a) Study.--
            (1) City cars.--Not later than 1 year after the date of 
        enactment of this section, the Secretary of Transportation in 
        consultation with the Secretary of Energy and appropriate 
        Federal agencies and interested stakeholders in the public, 
        private and non-profit sectors, shall study and report to 
        Congress on the benefits of and barriers to the widespread use 
        of a potentially new class of vehicles known as city cars with 
        performance capability that exceeds that of low speed vehicles 
        but is less than that of passenger vehicles, and which may be 
        battery electric, fuel cell electric, or plug-in hybrid 
        electric vehicles. Such study shall examine the benefits and 
        issues associated with limiting city cars to a maximum speed of 
        35 mph, 45 mph, 55 mph, or any other maximum speed, and make a 
        recommendation regarding maximum speed.
            (2) Authorization of appropriations.--Such sums as may be 
        necessary are authorized to be appropriated to carry out this 
        subsection.
    (b) Definitions.--In this section--
            (1) Nonroad vehicle.--The term ``nonroad vehicle'' has the 
        meaning given that term in section 216 of the Clean Air Act (42 
        U.S.C. 7550), or vehicles of the same classification that are 
        fully or partially powered by an electric motor powered by a 
        fuel cell, a battery, or an off-board source of electricity.
            (2) Plug-in electric drive vehicle.--The term ``plug-in 
        electric drive vehicle'' means a means a light-duty, medium-
        duty, or heavy-duty on-road or nonroad battery electric, hybrid 
        or fuel cell vehicle that can be recharged from an external 
        electricity source for motive power.
            (3) Plug-in hybrid electric vehicle.--The term ``plug-in 
        hybrid electric vehicle'' means a light-duty, medium-duty, or 
        heavy-duty on-road or nonroad vehicle that is propelled by any 
        combination of--
                    (A) an electric motor and on-board, rechargeable 
                energy storage system capable of operating the vehicle 
                in intermittent or continuous all-electric mode and 
                which is rechargeable using an off-board source of 
                electricity; and
                    (B) an internal combustion engine or heat engine 
                using any combustible fuel.
                                                 Union Calendar No. 194

110th CONGRESS

  1st Session

                               H. R. 3239

                      [Report No. 110-307, Part I]

_______________________________________________________________________

                                 A BILL

  To promote advanced plug-in hybrid vehicles and vehicle components.

_______________________________________________________________________

                             August 3, 2007

     Committees on Oversight and Government Reform and Science and 
Technology discharged; committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed