Short title

This Act may be cited as the

New Bridging Industry and Government Through Hi-Tech Research on Energy Efficiency Act of 2008

Findings

Congress makes the following findings: (1)Congress enacted legislation to dramatically increase Corporate Average Fuel Economy standards (hereafter in this section referred to as CAFE standards), mandating a fleet-wide fuel economy of 35 miles per gallon by 2020. (2)The new CAFE standards represent a 27 percent increase over current CAFE standards. (3)The new CAFE standards require Chrysler, Ford, and General Motors to increase their research and development investments at an estimated cost of $85,000,000,000. (4)Chrysler, Ford, and General Motors currently invest a total of approximately $16,000,000,000 each year to research and develop safer, more efficient, and alternatively fueled automobiles. (5)Chrysler, Ford, and General Motors employ more than 65,000 Americans to research and develop new technologies. (6)These required investments will place a large cost burden on an already struggling industry, representing an estimated additional $7,000,000,000 per year above current research and development investments. (7)Investments of finite funds in new energy efficiency initiatives should not detract from current investments in improved vehicle safety technology. (8)Energy availability is a national security issue of the utmost importance. (9)A significant portion of United States energy use comes from imported petroleum products from unstable regions. (10)Clean diesel technology is a more efficient way to utilize petroleum products to reduce emissions in the short-term while alternative energy sources are developed. (11)Harmonization of biodiesel composition standards will enable more widespread use of clean diesel technology throughout the country. (12)Electric vehicle propulsion can help reduce dependence on petroleum-based energy. (13)Energy storage is critical in making electric vehicles commercially viable. (14)Technical challenges remain before adequate energy storage for electric vehicles becomes a reality. (15)There is no current domestic production of advanced battery technology applicable to hybrid or electric vehicles. (16)Domestic research, development, demonstration, and production of advanced battery and electric vehicle technology will create many high-paying jobs. (17)Hydrogen fuel cell vehicles represent the long-term goal of nearly emission-free transportation. (18)Increased availability of hydrogen fuel is crucial to increase the viability of leap-ahead hydrogen vehicle technology. (19)The United States Government currently invests Federal funds across numerous agencies into research and development of advanced fuel and efficiency enhancing technology, spending approximately $400,000,000 in fiscal year 2007 and approximately $1,100,000,000 in fiscal year 2008. (20)Expanding and coordinating these currently disparate efforts would yield greater gains in the development of viable efficient alternative fuel technologies. (21)The Federal Government can and should concert its efforts in order to adequately provide relief from the large cost burden placed on the auto industry by requiring extensive research and development of advanced technology.

Advanced battery research and development

(a)

Definition

For purposes of this section, the term battery means an electrochemical energy storage system powered directly by electrical current. (b)

Research and development grant program

(1)

In general

The Secretary of Energy shall establish a program for making grants to National Laboratories and institutions of higher education for research, development, and demonstration of high-efficiency advanced battery technologies. Such grants may be used for— (A)exploratory research; (B)battery system devlopment; (C)vehicle technology demonstration and validation; and (D)United States advanced battery production capability development. (2)

Priority consideration

In awarding grants under this section, the Secretary of Energy shall give priority consideration to National Laboratories and institutions of higher education that partner with original equipment maunfacturers of vehicles that will use the high-efficiency advanced battery technologies being researched, developed, or demonstrated. (c)

Authorization of appropriations

There are authorized to be appropriated to the Secretary of Energy for carrying out this section $150,000,000 for each of the fiscal years 2009 through 2013.

Research and development tax credit

(a)

Permanent extension

Section 41 of the Internal Revenue Code of 1986 (relating to credit for increasing research activities) is amended by striking subsection (h). (b)

Refundability

Section 41 of such Code, as amended by subsection (a), is amended by adding at the end the following new subsection:

(h)

Portion of credit treated as refundable

(1)

In general

For purposes of this title, so much of the credit which would be allowed under this section for any taxable year (determined without regard to this subsection) that is attributable to expenditures for technology designed to meet Corporate Average Fuel Economy standards shall be treated as allowed under subpart C and not under this section. (2)

Special rule for partnerships

In the case of a partnership that elects to have this subsection apply— (A)paragraph (1) shall apply at the partnership level (and not at the partner level), (B)the amount of the credit determined under paragraph (1) shall be treated as an overpayment of tax, (C)the partnership shall be treated as the person who made the overpayment of tax, and the Secretary shall refund the amount of such overpayment to the partnership, and (D)the amount of credits under this section that would otherwise be separately stated to the partners of the partnership pursuant to section 702(a) shall be reduced by the amount determined under paragraph (1).

(c)

Conforming amendment

Section 45C(b)(1) of such Code is amended by striking subparagraph (D). (d)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after December 31, 2007.

Interagency Group on CAFE Standards

(a)

Establishment and membership

(1)

In general

There is established an Interagency Working Group on Corporate Average Fuel Economy Standards comprised of 1 representative of the following: (A)the Departments of Agriculture, Commerce, Defense, Energy, Interior, Labor, and Transportation, appointed by the respective Secretaries of such Departments; (B)the Environmental Protection Agency, appointed by the Administrator of such agency; (C)the National Science Foundation and the Office of Management and Budget, appointed by the respective Directors of such agencies; (D)3 representatives of the automobile manufacturing industry, appointed by the President; and (E)members representing such additional Federal agencies as the President shall appoint. (2)

Chairperson

The Interagency Working Group established under subsection (a)(1) shall be chaired by the representative of the Department of Defense, the Department of Energy, the Department of Transportation, the Department of Commerce, or the Environmental Protection Agency, as determined by the membership. The chairperson shall serve for a term of 1 year. (b)

Purpose and Duties

(1)

Purpose

The purpose of the Interagency Working Group is to ensure Federal agencies’ work to research and develop advanced fuel technology is coordinated and concerted in order to increase vehicle fuel efficiency and reduce emissions. (2)

Duties

The Interagency Working Group established under subsection (a)(1) shall— (A)meet not less than 4 times annually to examine the status of efforts by auto companies to meet the corporate automobile fuel economy standards required under section 32902 of title 49, United States Code; (B)propose policy recommendations for solutions to meet such standards; (C)formulate a recommended budget for all Federal spending on research and development of advanced fuel technologies and submit such recommended budget to the President and to Congress; (D)review agency priorities and technical issues for Federally funded technology research and development; (E)promote communications among the government, private sector, and academia on research and development requirements and programs; and (F)submit a report of its activities to Congress annually.

Harmonization of biofuels production standards

(a)

In general

The Administrator of the Environmental Protection Agency shall work with national and international standard setting organizations, along with other government organizations, to harmonize standards for the production of biofuels from a variety of feedstocks and the blending of such fuels with petroleum-based fuels at various concentrations. (b)

Annual report

Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Administrator of the Environmental Protection Agency shall transmit to the Congress a report on progress made under subsection (a).

Hydrogen fueling pumps

(a)

Grant program

The Secretary of Transportation shall establish a program for making grants with the goal of establishing at least 100 publicly available hydrogen fueling pumps at retail gas stations by 2013 in at least 2 selected regions. (b)

Required contribution

As a condition of receiving a grant under subsection (a), the owner or operator of a gas station shall be required to contribute, or obtain funding from a State or local government entity for, at least 10 percent of the cost of the hydrogen fueling pump. (c)

Authorization of appropriations

There are authorized to be appropriated to the Secretary of Transportation for carrying out this section $50,000,000 for each of the fiscal years 2009 through 2013.

Federal acquisition of hydrogen fuel cell vehicles

There are authorized to be appropriated to the Administrator of the General Services Administration for the acquisition of hydrogen fuel cell vehicles for use by Federal agencies $50,000,000 for each of the fiscal years 2012 through 2014.