110 HR 670 IH: DRIVE Act
U.S. House of Representatives
2007-01-24
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited as the Dependence Reduction through Innovation in Vehicles and
Energy Act
or the DRIVE Act
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Title I—OIL SAVINGS ACTION PLAN AND REQUIREMENTS
Sec. 101. Oil savings target and action plan.
Sec. 102. Standards and requirements.
Sec. 103. Evaluation.
Sec. 104. Review and update of action plan.
Sec. 105. Baseline and analysis requirements.
Sec. 106. Review and scoring of Federal actions related to oil
savings action plan.
Sec. 107. Federal Government oil usage audit.
Sec. 108. Nationwide media campaign to decrease oil
consumption.
Title II—FUEL EFFICIENT VEHICLES FOR THE 21st CENTURY
Sec. 201. Tire efficiency program.
Sec. 202. Reduction of school bus idling.
Sec. 203. Fuel efficiency for heavy duty trucks.
Sec. 204. Lightweight materials research and
development.
Sec. 205. Hybrid and advanced diesel vehicles.
Sec. 206. Advanced technology motor vehicles manufacturing
credit.
Sec. 207. Consumer incentives to purchase advanced technology
vehicles.
Sec. 208. Federal fleet requirements.
Sec. 209. Tax incentives for private fleets.
Sec. 210. Reducing incentives to guzzle gas.
Sec. 211. Fuel Choice for Transportation.
Sec. 212. Flexible fuel vehicle economy
calculations.
Title III—FUEL CHOICES FOR THE 21st CENTURY
Sec. 301. Fuel Choice action plan.
Sec. 302. Ethanol action plan.
Sec. 303. Fuel neutrality for alternative fuel vehicle
refueling property credit.
Sec. 304. Alternative fuel vehicle refueling
property.
Sec. 305. Use of CAFÉ penalties to build alternative fueling
infrastructure.
Sec. 306. Cellulosic biomass fuel.
Sec. 307. Production incentives for cellulosic
biofuels.
Sec. 308. Transit-Oriented Development Corridors.
Sec. 309. Saving oil by reducing miles-of-travel: Pilot
projects.
Sec. 310. Saving oil by reducing vehicle-miles-of-travel:
Research and development.
Sec. 311. Biofuels.
Title IV—Electricity for Transportation
Sec. 401. Near-term vehicle technology program.
Sec. 402. Amendments to Alternative Motor Vehicle
Credit.
Sec. 403. Idling Reduction Tax Credit.
Sec. 404. Plug-in Hybrid Electric Vehicle Prize.
2.
(a)Congress
finds that—
(1)the United States
is dangerously dependent on oil;
(2)that dependence
threatens the national security, weakens the economy, and harms the environment
of the United States;
(3)the United States
currently imports nearly 60 percent of oil needed in the United States, and
that percentage is expected to grow to almost 70 percent by 2025 if no actions
are taken;
(4)approximately
2,500,000 barrels of oil per day are imported from countries in the Persian
Gulf region;
(5)that dependence on
foreign oil undermines the war on terror by financing both sides of the
war;
(6)in 2004 alone, the
United States sent $103,000,000,000 to undemocratic countries, some of which
use revenues to support terrorism and spread ideology hostile to the United
States, as documented by the Council on Foreign Relations;
(7)terrorists have
identified oil as a strategic vulnerability and have increased attacks against
oil infrastructure worldwide;
(8)the International Energy Agency in its
World Outlook 2006 report projected that non-OPEC conventional crude oil
output peaks by the middle of the next decade…trends would accentuate consuming
countries’ vulnerability to a severe supply disruption and resulting price
shock
and recommended that strong policy action is needed to
move the world onto a more sustainable energy path
;
(9)oil imports
comprise nearly 30 percent of the dangerously high United States trade
deficit;
(10)it is technically
feasible to achieve oil savings of more than 2,500,000 barrels per day by 2015
and 5,000,000 barrels per day by 2025;
(11)those goals can
be achieved by establishing a set of flexible policies, including—
(A)increasing the
gasoline-efficiency of cars, trucks, tires, and oil;
(B)providing economic
incentives for companies and consumers to produce and purchase 21st Century
fuel efficient and flexible fuel vehicles;
(C)encouraging the
use of transit and the reduction of truck and bus idling;
(D)increasing
production and commercialization of alternative liquid fuels;
(E)increasing the
efficiency of current oil based fuels with combustion enhancers and other
advanced technology; and
(F)increasing the use
of electricity as a transportation fuel;
(12)vehicle
technology available as of the date of enactment of this Act (including popular
hybrid-electric vehicle models, the sales of which in the United States
increased 173 percent in the first 5 months of 2005 as compared with the same
period in 2004) make an oil savings plan eminently achievable;
(13)alternative and
renewable liquid transportation fuels are already available (including corn and
sugar based ethanol, biodiesel, methanol, and diesel fuels derived from coal)
to make such an oil savings and fuel choice plan eminently achievable;
(14)achieving those
goals will benefit consumers and businesses through lower fuel bills and
reduction in world oil prices;
(15)achieving those
goals will help protect the economy of the United States from high and volatile
oil prices and from the threats caused by global instability, terrorism, and
natural disaster; and
(16)it is urgent,
essential, and feasible to implement an action plan to achieve oil savings as
soon as practicable because any delay in initiating action will—
(A)make achieving
necessary oil savings more difficult and expensive;
(B)increase the risks
to the national security, economy, and environment of the United States;
and
(C)leave the American
people and economy vulnerable to the threats posed by terrorism, natural
disaster, political instability, and the shrinking ability of global oil
supplies to meet rapidly expanding oil demands.
(b)The
purposes of this Act are—
(1)to
accelerate market penetration of flexible fuel, electric drive, and alternative
motor vehicles;
(2)to
enable the accelerated market penetration of efficient technologies and
alternative fuels without adverse impact on air quality while maintaining a
policy of fuel neutrality, so as to allow market forces to elect the
technologies and fuels that are consumer-friendly, safe, environmentally-sound,
and economic;
(3)to provide
time-limited financial incentives to encourage production and consumer purchase
of oil saving technologies and fuels nationwide;
(4)to promote a
nationwide diversity of motor vehicle fuels and advanced motor vehicle
technology, including advanced lean burn technology, hybrid technology,
flexible fuel motor vehicles, alternatively fueled motor vehicles, and other
oil saving technologies; and
(5)to
decrease American dependence on imported oil.
<enum>I</enum><header>OIL
SAVINGS ACTION PLAN AND REQUIREMENTS</header>
<section display-inline="no-display-inline" id="HE5B415E29B7441DCB13F6078E0272184" section-type="subsequent-section"><enum>101.</enum><header>Oil savings target
and action plan</header><text display-inline="no-display-inline">Not later than
270 days after the date of enactment of this Act, the Director of the Office of
Management and Budget (referred to in this title as the
<quote>Director</quote>) shall publish in the Federal Register an action plan
consisting of—</text>
<paragraph id="H47FCAA789BC54B86A7AE2D67492128F1"><enum>(1)</enum><text>a
list of requirements proposed or to be proposed pursuant to section 102 that
are authorized to be issued under law in effect on the date of enactment of
this Act, and this Act, that will be sufficient, when taken together, to save
from the baseline determined under section 105—</text>
<subparagraph id="H2DF0AB617288400FA907FE5129767464"><enum>(A)</enum><text>2,500,000 barrels
of oil per day on average during calendar year 2015; and</text>
</subparagraph><subparagraph id="H1FAD53BB6DF54585823775D82CCB8469"><enum>(B)</enum><text>5,000,000 barrels
of oil per day on average during calendar year 2025; and</text>
</subparagraph></paragraph><paragraph id="H51EAEEB77E374F91BE78BF4D6DA74B15"><enum>(2)</enum><text>a
Federal Government-wide analysis demonstrating—</text>
<subparagraph id="HF7ACC7686F8E4206880566E5F22C9FBD"><enum>(A)</enum><text>the expected oil
savings from the baseline to be accomplished by each requirement; and</text>
</subparagraph><subparagraph id="H2770D7BB5F624B53AD64B2E11E205831"><enum>(B)</enum><text>that all such
requirements, taken together, will achieve the oil savings specified in this
section.</text>
</subparagraph></paragraph></section><section id="HA6E73B027EB34B97B4108224CCB9B189"><enum>102.</enum><header>Standards and
requirements</header>
<subsection id="H303A1447E37547B68D4CC096FCCA719"><enum>(a)</enum><header>In
General</header><text>On or before the date by which publication of the action
plan is required under section 101, the Secretary of Energy, the Secretary of
Transportation, the Secretary of Defense, the Secretary of Agriculture, the
Administrator of the Environmental Protection Agency, and the head of any other
agency authorized to take an action listed in the action plan shall each
propose, or issue a notice of intent to propose, regulations establishing each
standard or other requirement listed in the action plan that is under the
jurisdiction of the respective agency using authorities described in subsection
(b). If a notice of intent to propose is issued, the head of the responsible
agency shall propose such regulations not later than 330 days after the date of
enactment of this Act.</text>
</subsection><subsection id="H7880E4CDD85B4517AC38A63F907343E6"><enum>(b)</enum><header>Authorities</header><text>The
head of each agency described in subsection (a) shall use to carry out this
section—</text>
<paragraph id="HAA4B338020D64F4F00BEE0EA00660078"><enum>(1)</enum><text>any authority in
existence on the date of enactment of this Act (including regulations);
and</text>
</paragraph><paragraph id="H5D42BD37A7AF4B20AD227B5FBB40C901"><enum>(2)</enum><text>any new authority
provided under this Act (including an amendment made by this Act).</text>
</paragraph></subsection><subsection id="H310ADBA403D146209B544F7BD18E0013"><enum>(c)</enum><header>Final
Regulations</header><text>Not later than 18 months after the date of enactment
of this Act, the head of each agency described in subsection (a) shall
promulgate final versions of the regulations required under this
section.</text>
</subsection><subsection id="H6F8ECE6FB7634800B3ACC7CE0F11B68"><enum>(d)</enum><header>Content of
Regulations</header><text>Each proposed and final regulation promulgated under
this section shall—</text>
<paragraph id="H1E910271BBC945D48C9B81ACF1371651"><enum>(1)</enum><text>be sufficient to
achieve at least the oil savings resulting from the regulation under the action
plan published under section 101; and</text>
</paragraph><paragraph id="H05BA707ABB4B44E98323F97404879556"><enum>(2)</enum><text>be accompanied by
an analysis by the applicable agency demonstrating that the regulation will
achieve such oil savings, as measured from the baseline determined under
section 105.</text>
</paragraph></subsection></section><section id="H462D3C773D014BBEA0DF346916183FD8"><enum>103.</enum><header>Evaluation</header>
<subsection id="H7E044639D0594C908EC77D305B50302E"><enum>(a)</enum><header>In
General</header><text>Not later than 2 years after the date of enactment of
this Act, and after an opportunity for public comment, the Director shall
publish in the Federal Register a Federal Government-wide analysis of the oil
savings achieved and the expected oil savings under the standards and
requirements established under this Act and the amendments made by this Act
from the baseline established under section 105, and a determination whether
such oil savings will meet the targets established under section 101.</text>
</subsection><subsection id="H4F19A7CAB46E4360B3E1F39753E2B412"><enum>(b)</enum><header>Inadequate Oil
Savings</header><text>If the oil savings are less than the targets established
under section 101, simultaneously with the analysis required under subsection
(a)—</text>
<paragraph id="HD9CFC02251CD4C1EA36F2F0019A056D8"><enum>(1)</enum><text>the Director shall
publish a revised action plan that is sufficient to achieve the targets;
and</text>
</paragraph><paragraph id="H260E375643DC403C86819D855B111E3D"><enum>(2)</enum><text>the head of each
agency referred to in section 102(a) shall propose new or revised regulations
sufficient to achieve such targets under section 102(a).</text>
</paragraph></subsection><subsection id="H97630586EF7B4F53B2FECC4143FF95D6"><enum>(c)</enum><header>Final
Regulations</header><text>Not later than 180 days after the date on which
regulations are proposed under subsection (b)(2), the head of each agency shall
promulgate final versions of those regulations that comply with section
102(d).</text>
</subsection></section><section id="H283E79ED879D48169724BE2330434081"><enum>104.</enum><header>Review and
update of action plan</header>
<subsection id="HCFD30081846149C09F9CE39FB3739982"><enum>(a)</enum><header>Review</header><text>Not
later than January 1, 2011, and every 3 years thereafter, the Director shall
publish a report that—</text>
<paragraph id="H391E8B16576A48BFBF394EE781BE4E58"><enum>(1)</enum><text>evaluates the
progress achieved in implementing the oil savings targets established under
section 101;</text>
</paragraph><paragraph id="H0A771E524F824EF199736BB81C4C736F"><enum>(2)</enum><text>analyzes the
expected oil savings under the standards and requirements established under
this Act and the amendments made by this Act; and</text>
</paragraph><paragraph id="H7904BB65B74E4085AC52EB7D15C8462D"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H2E4604621BED4137B7FD9E104FFDA0EB"><enum>(A)</enum><text>analyzes the potential
to achieve oil savings that are in addition to the savings required by section
101; and</text>
</subparagraph><subparagraph id="H699F3BA5250042F8942D5C001D3FA96" indent="up1"><enum>(B)</enum><text>if the President determines that it is
in the national interest, establishes a higher oil savings target for calendar
year 2017 or any subsequent calendar year.</text>
</subparagraph></paragraph></subsection><subsection id="H4072DF90F5D449B4AFEF07E985511B30"><enum>(b)</enum><header>Inadequate Oil
Savings</header><text>If the oil savings are less than the targets established
under section 101, simultaneously with the report required under subsection
(a)—</text>
<paragraph id="HE35E078013224B6AB687598B9EFCC8DA"><enum>(1)</enum><text>the Director shall
publish a revised action plan that is sufficient to achieve the targets;
and</text>
</paragraph><paragraph id="HC57FB26D05E0474B8DD911B4FE823E7"><enum>(2)</enum><text>the head of each
agency referred to in section 102(a) shall propose new or revised regulations
sufficient to achieve such targets under section 102(a).</text>
</paragraph></subsection><subsection id="H0948B50879574B78B24795A3BD2374D"><enum>(c)</enum><header>Final
Regulations</header><text>Not later than 180 days after the date on which
regulations are proposed under subsection (b)(2), the head of each agency
referred to in section 102(a) shall promulgate final versions of those
regulations that comply with section 102(d).</text>
</subsection></section><section id="HCADDECADD5944FDE995C4F79A6A2544E"><enum>105.</enum><header>Baseline and
analysis requirements</header><text display-inline="no-display-inline">In
performing the analyses and promulgating proposed or final regulations to
establish standards and other requirements necessary to achieve the oil savings
required by this title, the Director, the Secretary of Energy, the Secretary of
Transportation, the Secretary of Defense, the Secretary of Agriculture, the
Administrator of the Environmental Protection Agency, and the head of any other
agency authorized to take an action listed in the action plan shall—</text>
<paragraph id="HD102F76CA1D44D33B82640C03DEE0EC"><enum>(1)</enum><text>determine oil
savings as the projected reduction in oil consumption from the baseline
established by the reference case contained in the report of the Energy
Information Administration entitled <quote>Annual Energy Outlook
2006</quote>;</text>
</paragraph><paragraph id="H3EA91F045F5C461383D7A3339800ED06"><enum>(2)</enum><text>determine the oil
savings projections required on an annual basis for each of calendar years 2009
through 2026; and</text>
</paragraph><paragraph id="H7CFF2C37C67C4A8993408554FB310049"><enum>(3)</enum><text>account for any
overlap among the standards and other requirements to ensure that the projected
oil savings from all the promulgated standards and requirements, taken
together, are as accurate as practicable.</text>
</paragraph></section><section id="H9E2D4D96CDE440AB8984589C61EFA9B0"><enum>106.</enum><header>Review and
scoring of Federal actions related to oil savings action plan</header>
<subsection id="H99E4DDB956104B8899A29927183CB387"><enum>(a)</enum><header>Office of
Management and Budget</header>
<paragraph id="HA1BCC4E482974C4400887225A7457B68"><enum>(1)</enum><header>Requirement</header><text>The
Director shall—</text>
<subparagraph id="HC1087A32965D42F8A6402DF6A2505F25"><enum>(A)</enum><text>establish
procedures to evaluate all proposals for Federal legislative or executive
actions which could be reasonably considered to impact the supply or demand of
oil in the United States; and</text>
</subparagraph><subparagraph id="HD098A35B93694EB7BAB4823C5F64F616"><enum>(B)</enum><text>report to the
Congress on the net impact the reviewed proposal would have on reaching the
goals of the action plan required under section 101, including a score in terms
of projected decreases or increases to oil usage.</text>
</subparagraph></paragraph><paragraph id="H122B8478EF6F4086A17BF0A6B9D4E749"><enum>(2)</enum><header>Conclusions</header><text>The
conclusions of the Director under paragraph (1) shall also be published in the
public record and considered as part of any rulemaking procedure or impact
statement.</text>
</paragraph></subsection><subsection id="H885247537A03456B903234AB834CE604"><enum>(b)</enum><header>Comptroller
General</header>
<paragraph id="H566FD56034EF4702B5064BEFF2DD5BC"><enum>(1)</enum><header>Requirement</header><text>The
Comptroller General shall—</text>
<subparagraph id="HDF946E3C565F4C5085996D145FE7C5B8"><enum>(A)</enum><text>establish
procedures to evaluate all proposals for Federal legislative or executive
actions which could be reasonably considered to impact the supply or demand of
oil in the United States; and</text>
</subparagraph><subparagraph id="H7C08E10D78A145F99695E295F56959C"><enum>(B)</enum><text>report to the
Congress on the net impact the reviewed proposal would have on reaching the
goals of the action plan required under section 101, including a score in terms
of projected decreases or increases to oil usage.</text>
</subparagraph></paragraph><paragraph id="H956EDE1C311C48509C9B97FE04BB89A8"><enum>(2)</enum><header>Conclusions</header><text>The
conclusions of the Comptroller General under paragraph (1) shall also be
published in the public record and considered as part of any rulemaking
procedure or impact statement.</text>
</paragraph></subsection></section><section id="H274CE4520E6D47839C6C66576DA1F8A1"><enum>107.</enum><header>Federal
Government oil usage audit</header><text display-inline="no-display-inline">Not
later than 2 years after the date of enactment of this Act, each Federal agency
shall complete an audit of oil-derived fuel usage in the agency. The head of
the agency shall establish an oil usage baseline and develop a plan to reduce
oil consumption by 10 percent over 5 years and 20 percent in 10 years. The
Secretary of Energy shall compile an annual report containing all agency
reports and recommendations under this section and deliver it to the Congress
not later than January 31 of each year.</text>
</section><section id="H2DD0FAFAF0D143CC800085BC880030B0"><enum>108.</enum><header>Nationwide
media campaign to decrease oil consumption</header>
<subsection id="H22AD1CB06D984CFABA58BDD3E77FCF8"><enum>(a)</enum><header>In
General</header><text>The Secretary of Energy, acting through the Assistant
Secretary for Energy Efficiency and Renewable Energy (referred to in this
section as the <quote>Secretary</quote>), shall develop and conduct a national
media campaign for the purpose of decreasing oil consumption in the United
States over the next decade.</text>
</subsection><subsection id="H197F12F91E90433E9869A1CADA5553A8"><enum>(b)</enum><header>Contract With
Entity</header><text>The Secretary shall carry out subsection (a) directly or
through—</text>
<paragraph id="H1E1AA715B77C4795B2F8A8174C507473"><enum>(1)</enum><text>competitively bid
contracts with 1 or more nationally recognized media firms for the development
and distribution of monthly television, radio, and newspaper public service
announcements; or</text>
</paragraph><paragraph id="H3FD1A8C7AB9F42EE9F9132CD1779FE00"><enum>(2)</enum><text>collective
agreements with 1 or more nationally recognized institutes, businesses, or
nonprofit organizations for the funding, development, and distribution of
monthly television, radio, and newspaper public service announcements.</text>
</paragraph></subsection><subsection id="HF6733AAA46A54041B4D67BD00DC22DB"><enum>(c)</enum><header>Use of
Funds</header>
<paragraph id="HFE0BD0519DDE416482DF408093D54C7F"><enum>(1)</enum><header>In
general</header><text>Amounts made available to carry out this section shall be
used for the following:</text>
<subparagraph id="HB275FA766A9E4CC1A5DCA3A5BE11E506"><enum>(A)</enum><header>Advertising
costs</header>
<clause id="H12D4FCE6893141A9A3740392EDEB1EFD"><enum>(i)</enum><text>The
purchase of media time and space.</text>
</clause><clause id="H1384A3B83F224BECAF8500839051FA5E"><enum>(ii)</enum><text>Creative and
talent costs.</text>
</clause><clause id="H0EFA02364BD54DA4B6CA706226B2DDD0"><enum>(iii)</enum><text>Testing and
evaluation of advertising.</text>
</clause><clause id="H7812A5C353204F269129C56F011C358D"><enum>(iv)</enum><text>Evaluation of the
effectiveness of the media campaign.</text>
</clause><clause id="H451FAE3FAED34E0D963CFC6ED2A60431"><enum>(v)</enum><text>The
negotiated fees for the winning bidder on requests from proposals issued either
by the Secretary for purposes otherwise authorized in this section.</text>
</clause><clause id="H3E2CAF33B7E44FBE87D8DC0006DA7EA"><enum>(vi)</enum><text>Entertainment
industry outreach, interactive outreach, media projects and activities, public
information, news media outreach, and corporate sponsorship and
participation.</text>
</clause></subparagraph><subparagraph id="HAA6445E6C478471FB8E4A22198DEA582"><enum>(B)</enum><header>Administrative
costs</header><text>Operational and management expenses.</text>
</subparagraph></paragraph><paragraph id="HC5305B94749E4B75B14C149100A113F3"><enum>(2)</enum><header>Limitations</header><text>In
carrying out this section, the Secretary shall allocate not less than 85
percent of funds made available under subsection (e) for each fiscal year for
the advertising functions specified under paragraph (1)(A).</text>
</paragraph></subsection><subsection id="H4657530CDDA0490BB8B76C6DBD00A194"><enum>(d)</enum><header>Reports</header><text>The
Secretary shall annually submit to Congress a report that describes—</text>
<paragraph id="H82BBB577CB834F029EB024E271FF30F"><enum>(1)</enum><text>the strategy of the
national media campaign and whether specific objectives of the campaign were
accomplished, including—</text>
<subparagraph id="H9286DDC7E2B048AFB909CBEB47E85BD7"><enum>(A)</enum><text>determinations
concerning the rate of change of oil consumption, in both absolute and per
capita terms; and</text>
</subparagraph><subparagraph id="H4916BF7B17FE4E08862FB814BB680DF"><enum>(B)</enum><text>an evaluation that
enables consideration whether the media campaign contributed to reduction of
oil consumption;</text>
</subparagraph></paragraph><paragraph id="HBA9A150075914438B4BF69F7D636A266"><enum>(2)</enum><text>steps taken to
ensure that the national media campaign operates in an effective and efficient
manner consistent with the overall strategy and focus of the campaign;</text>
</paragraph><paragraph id="H2F3BD430D32E470693BE4393FBC5FF07"><enum>(3)</enum><text>plans to purchase
advertising time and space;</text>
</paragraph><paragraph id="HE0837DD7AF4844F6BCC417689B00AD8"><enum>(4)</enum><text>policies and
practices implemented to ensure that Federal funds are used responsibly to
purchase advertising time and space and eliminate the potential for waste,
fraud, and abuse; and</text>
</paragraph><paragraph id="H522C28F43C324AAE9EAFF60060CA10E0"><enum>(5)</enum><text>all contracts or
cooperative agreements entered into with a corporation, partnership, or
individual working on behalf of the national media campaign.</text>
</paragraph></subsection><subsection id="H8AC766947C7A4CB8862D001F79DEA2AD"><enum>(e)</enum><header>Authorization of
Appropriations</header><text>There is authorized to be appropriated to carry
out this section $50,000,000 for each of fiscal years 2008 through 2012.</text>
</subsection></section><enum>II</enum><header>FUEL
EFFICIENT VEHICLES FOR THE 21st CENTURY</header>
<section id="H1C644CE547EE40DFA17828810788FB2F"><enum>201.</enum><header>Tire efficiency
program</header>
<subsection id="HE893BFC6AF664892A1481FFA3B42913B"><enum>(a)</enum><header>Standards for
Tires Manufactured for Interstate Commerce</header><text>Section 30123 of title
49, United States Code, is amended—</text>
<paragraph id="HD8827B3F21AB4BC485957257CC00315D"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="H8825ADE15F3B40BE856067542C5018A"><enum>(A)</enum><text>in the first
sentence, by striking <quote>The Secretary</quote> and inserting the
following:</text>
<quoted-block id="H7D91034BD3E04DF390D46894791F0581" style="OLC">
<paragraph id="HECFDCE8D942D4822BC98A3C3DBE0BE59"><enum>(1)</enum><header>Uniform quality
grading system</header>
<subparagraph id="H21F9AD67BCFA4652B2705D76284C4404"><enum>(A)</enum><header>In
general</header><text>The
Secretary</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H28E86EE5A88142A6AEBA77F6B6140119"><enum>(B)</enum><text>in the second
sentence, by striking <quote>The Secretary</quote> and inserting the
following:</text>
<quoted-block id="H18B75CDB4DD74278BABFEA9D1796D71" style="OLC">
<paragraph id="H224CCF505C124A2FB7A2914F63F2C1D6"><enum>(2)</enum><header>Nomenclature and
marketing practices</header><text>The
Secretary</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H707B607B90DE4F8EA1F9BF034446E436"><enum>(C)</enum><text>in the third
sentence, by striking <quote>A tire standard</quote> and inserting the
following:</text>
<quoted-block id="H0B9D3D2FBD9F48D382D8F22F005CF57B" style="OLC">
<paragraph id="H2318F9F3629842B798226346B26B552"><enum>(3)</enum><header>Effect of
standards and regulations</header><text>A tire
standard</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H90D33CB43CA243F4B051008448EC58D4"><enum>(D)</enum><text>in paragraph (1),
as designated by subparagraph (A), by adding at the end the following:</text>
<quoted-block id="H20F77E9B5F0542C19DA5FCAA4229662C" style="OLC">
<subparagraph id="HDDDDD57AB8004DC48522420052AE8578"><enum>(B)</enum><header>Inclusion</header><text>The
grading system established pursuant to subparagraph (A) shall include standards
for rating the fuel efficiency of tires designed for use on passenger cars and
light trucks.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H1ABB6F00F1794B1189B1812736289CB"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block id="H2B2215F690E549F299805219D4B6A6F0" style="OLC">
<subsection id="H10DA4F351BDD4F06A9A4308D15FA4065"><enum>(d)</enum><header>National Tire
Efficiency Program</header>
<paragraph id="H21F85CACD3DE4C1CBFBFC2A6D9D631B"><enum>(1)</enum><header>Definition</header><text>In
this subsection, the term <term>fuel economy</term>, with respect to a tire,
means the extent to which the tire contributes to the fuel economy of the motor
vehicle on which the tire is mounted.</text>
</paragraph><paragraph id="H3145DC414C874630BE7C42ED7E3F8DAE"><enum>(2)</enum><header>Program</header><text>The
Secretary shall develop and carry out a national tire fuel efficiency program
for tires designed for use on passenger cars and light trucks.</text>
</paragraph><paragraph id="HAC99A54AE29F4F17A9848DB273B72332"><enum>(3)</enum><header>Requirements</header><text>Not
later than March 31, 2008, the Secretary shall issue regulations, which
establish—</text>
<subparagraph id="H064E8A2C1A784AF7B0FA02005D9454F2"><enum>(A)</enum><text>policies and
procedures for testing and labeling tires for fuel economy to enable tire
buyers to make informed purchasing decisions about the fuel economy of
tires;</text>
</subparagraph><subparagraph id="HB22DA930CE89413793BBCDB8E011D603"><enum>(B)</enum><text>policies and
procedures to promote the purchase of energy efficient replacement tires,
including purchase incentives, website listings on the Internet, printed fuel
economy guide booklets, and mandatory requirements for tire retailers to
provide tire buyers with fuel efficiency information on tires; and</text>
</subparagraph><subparagraph id="H0D941DED306A4362B8BCEAAEB6E0DEDC"><enum>(C)</enum><text>minimum fuel
economy standards for tires.</text>
</subparagraph></paragraph><paragraph id="H679C23323522494086BC9C02E8A8AAC"><enum>(4)</enum><header>Minimum fuel
economy standards</header><text>In promulgating minimum fuel economy standards
for tires, the Secretary shall design standards that—</text>
<subparagraph id="H8F578F7AA73947BC9BABC9B47F8184A3"><enum>(A)</enum><text>ensure, in
conjunction with the requirements under paragraph (3)(B), that the average fuel
economy of replacement tires is not less than the average fuel economy of tires
sold as original equipment;</text>
</subparagraph><subparagraph id="H2B13A9A5DBA64EA98E20AB626423BB3C"><enum>(B)</enum><text>secure the maximum
technically feasible and cost-effective fuel savings;</text>
</subparagraph><subparagraph id="HE0346D98B3A24A9CA2D2A05D08200F3"><enum>(C)</enum><text>do not adversely
affect tire safety;</text>
</subparagraph><subparagraph id="HDC7DE30161C7497E8CF8A8B8D22D5FCE"><enum>(D)</enum><text>incorporate the
results from—</text>
<clause id="H686CF595C0BF45DBA65C7E7785A2D0E2"><enum>(i)</enum><text>laboratory
testing; and</text>
</clause><clause id="H507C3E7A05A44F04B4F2BDEB5006F42B"><enum>(ii)</enum><text>to the extent
appropriate and available, on-road fleet testing programs conducted by
manufacturers; and</text>
</clause></subparagraph><subparagraph id="H416028BB2D0E4E32A8905FEFA5C65D00"><enum>(E)</enum><text>do not adversely
affect efforts to manage scrap tires.</text>
</subparagraph></paragraph><paragraph id="H197B2B6F0D99451B8DF6E5E0EAF8B3D9"><enum>(5)</enum><header>Applicability</header><text>The
policies, procedures, and standards developed under paragraph (3) shall apply
to all tire types and models regulated under the uniform tire quality grading
standards in <external-xref legal-doc="regulation" parsable-cite="cfr/49/575.104">section 575.104</external-xref> of title 49, Code of Federal Regulations (or a
successor regulation).</text>
</paragraph><paragraph id="H0B6BB67932D24BA1913FAC51399F6049"><enum>(6)</enum><header>Review</header>
<subparagraph id="HEEA0F620BB5C4BFD907897BBA2F32982"><enum>(A)</enum><header>In
general</header><text>Not less than once every 3 years, the Secretary
shall—</text>
<clause id="H2F3B4FD8CB3F423793A155CA6B76C837"><enum>(i)</enum><text>review the minimum
fuel economy standards in effect for tires under this subsection; and</text>
</clause><clause id="HA729CBA136E74E139235965BE181AB7"><enum>(ii)</enum><text>subject to
subparagraph (B), revise the standards as necessary to ensure compliance with
standards described in paragraph (4).</text>
</clause></subparagraph><subparagraph id="HB565EF2F6E014E61944B71004D8E339E"><enum>(B)</enum><header>Limitation</header><text>The
Secretary may not reduce the average fuel economy standards applicable to
replacement tires.</text>
</subparagraph></paragraph><paragraph id="H8ED7712C6EC74703A2681E02BAC6807D"><enum>(7)</enum><header>No preemption of
state law</header><text>Nothing in this section shall be construed to preempt
any provision of State law relating to higher fuel economy standards applicable
to replacement tires designed for use on passenger cars and light
trucks.</text>
</paragraph><paragraph id="HCDBF23C4844C41BDAB5FB272BFA6F063"><enum>(8)</enum><header>Exceptions</header><text>Nothing
in this section shall apply to—</text>
<subparagraph id="H18AF58B96A9B4AB19F97E249AE176142"><enum>(A)</enum><text>a tire or group of
tires with the same stock keeping unit, plant, and year, for which the volume
of tires produced or imported is less than 15,000 annually;</text>
</subparagraph><subparagraph id="HB8B007E0771249C080A392A1268DCF77"><enum>(B)</enum><text>a deep tread,
winter-type snow tire, space-saver tire, or temporary use spare tire;</text>
</subparagraph><subparagraph id="H702480B4F2564CF48FC5139D829F1000"><enum>(C)</enum><text>a tire with a
normal rim diameter of 12 inches or less;</text>
</subparagraph><subparagraph id="H7D4583857DEC4ED19941B62B5EE64F00"><enum>(D)</enum><text>a motorcycle tire;
or</text>
</subparagraph><subparagraph id="H8500D0B7D1AB4176A8C90057F72F2980"><enum>(E)</enum><text>a tire
manufactured specifically for use in an off-road motorized recreational
vehicle.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HC20D520072514FE289ECAE491195399"><enum>(b)</enum><header>Conforming
Amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/30103">Section 30103(b)(1)</external-xref> of title 49, United States Code, is
amended by striking <quote>When</quote> and inserting <quote>Except as provided
in section 30123(d), if</quote>.</text>
</subsection><subsection id="H6C893443DE284AC3A5AB53867DC512D3"><enum>(c)</enum><header>Time for
Implementation</header><text>Beginning not later than March 31, 2008, the
Secretary of Transportation shall administer the national tire fuel efficiency
program established under <external-xref legal-doc="usc" parsable-cite="usc/49/30123">section 30123(d)</external-xref> of title 49, United States Code, in
accordance with the policies, procedures, and standards developed under section
30123(d)(3) of such title.</text>
</subsection><subsection id="H98AE8A6DCB4648A1BA109EC1D3F3A29D"><enum>(d)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated, for each
of fiscal years 2008 through 2012, such sums as may be necessary to carry out
<external-xref legal-doc="usc" parsable-cite="usc/49/30123">section 30123(d)</external-xref> of title 49, United States Code, as added by subsection
(a).</text>
</subsection></section><section id="HA323913F980B492AA9E390438B8183EB"><enum>202.</enum><header>Reduction of
school bus idling</header>
<subsection id="H4EA295703CD24BED86C93D6EA84E4430"><enum>(a)</enum><header>Statement of
Policy</header><text>Congress encourages each local educational agency (as
defined in section 9101(26) of the <act-name parsable-cite="ESEA">Elementary
and Secondary Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/7801">20 U.S.C. 7801(26)</external-xref>)) that
receives Federal funds under the <act-name parsable-cite="ESEA">Elementary and
Secondary Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/6301">20 U.S.C. 6301 et seq.</external-xref>) to develop
a policy to reduce the incidence of school bus idling at schools while picking
up and unloading students.</text>
</subsection><subsection id="HC12DD7FD28CA43D3A776DA7D5E4BB5EC"><enum>(b)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated to the
Administrator of the Environmental Protection Agency, working in coordination
with the Secretary of Education, $5,000,000 for each of fiscal years 2008
through 2012 for use in educating States and local education agencies
about—</text>
<paragraph id="H5B9C94644DA34130ACDFA64513AB7E65"><enum>(1)</enum><text>benefits of
reducing school bus idling; and</text>
</paragraph><paragraph id="H56B8638E45174D11A55E6D286EB40400"><enum>(2)</enum><text>ways in which
school bus idling may be reduced.</text>
</paragraph></subsection></section><section id="H1864554C48DC4B73A344B252DCF0F046"><enum>203.</enum><header>Fuel efficiency
for heavy duty trucks</header><text display-inline="no-display-inline">Part C
of subtitle VI of title 49, United States Code, is amended by inserting after
chapter 329 the following:</text>
<quoted-block id="H1032F2E1B3714C038D9B8B1EAE5D184F" style="USC">
<chapter id="H3B8F222E20974FA9BC3BF1D41199B8D9"><enum>330</enum><header>HEAVY DUTY
VEHICLE FUEL ECONOMY STANDARDS</header>
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec.</toc-entry>
<toc-entry level="section">33001. Purpose and policy.</toc-entry>
<toc-entry level="section">33002. Definition.</toc-entry>
<toc-entry level="section">33003. Testing and
assessment.</toc-entry>
<toc-entry level="section">33004. Standards.</toc-entry>
<toc-entry level="section">33005. Authorization of
appropriations.</toc-entry>
</toc>
<section id="H7D315BA3AC3E446F9E411C740037B59B"><enum>33001.</enum><header>Purpose and
policy</header><text display-inline="no-display-inline">The purpose of this
chapter is to reduce petroleum consumption by heavy duty motor vehicles.</text>
</section><section id="H05744A7CDA1241349F885054FB149DDE"><enum>33002.</enum><header>Definition</header><text display-inline="no-display-inline">In this chapter, the term <quote>heavy duty
motor vehicle</quote>—</text>
<paragraph id="HAEEFE32BF5124A47B0EDAE37EF7082"><enum>(1)</enum><text>means a vehicle
having a gross vehicle weight rating of at least 10,000 pounds that is driven
or drawn by mechanical power and manufactured primarily for use on public
streets, roads, and highways; and</text>
</paragraph><paragraph id="H86E4B97DDDB941C0929F681EE075E355"><enum>(2)</enum><text>does not include a
vehicle operated only on a rail line.</text>
</paragraph></section><section id="HFF7527908A6643B2B155A49E3C9BC19F"><enum>33003.</enum><header>Testing and
assessment</header>
<subsection id="H643BD2E617064DA88FB12F33476990F4"><enum>(a)</enum><header>General
Requirements</header><text>The Administrator of the Environmental Protection
Agency (referred to in this section as the <quote>Administrator</quote>) shall
develop and coordinate a national testing and assessment program to—</text>
<paragraph id="HA30BB5C065DF4FA6AE6D518700809214"><enum>(1)</enum><text>determine the fuel
economy of heavy duty vehicles; and</text>
</paragraph><paragraph id="HE0D7706BA80846BB90B92528F9CEE97B"><enum>(2)</enum><text>assess the fuel
efficiency attainable through available technology.</text>
</paragraph></subsection><subsection id="H2DD40A2A9E6946B3AE6B48F2F339DE3"><enum>(b)</enum><header>Testing</header><text>The
Administrator shall—</text>
<paragraph id="H370562C30B0243A0A39CF890001235BB"><enum>(1)</enum><text>design a National
testing program to assess the fuel economy of heavy duty vehicles (based on the
program for light duty vehicles); and</text>
</paragraph><paragraph id="H497633620D6B4F9A9C1962A5D0870673"><enum>(2)</enum><text>implement the
program described in paragraph (1) not later than 18 months after the date of
enactment of this chapter.</text>
</paragraph></subsection><subsection id="HDE4BAA11AF9F44F793B1F59BC1D6CF06"><enum>(c)</enum><header>Assessment</header><text>The
Administrator shall consult with the Secretary of Transportation on the
assessment of available technologies to enhance the fuel efficiency of heavy
duty vehicles to ensure that vehicle use and needs are considered appropriately
in the assessment.</text>
</subsection><subsection id="H4A7A87769E1D45838CB0B22600B2C00"><enum>(d)</enum><header>Reporting</header><text>The
Administrator shall—</text>
<paragraph id="H20489C62ED8F46D4BE794E369B1DF2ED"><enum>(1)</enum><text>not later than 2
years after the date of enactment of this chapter, submit a report to Congress
regarding the results of the assessment of available technologies to improve
the fuel efficiency of heavy duty vehicles.</text>
</paragraph><paragraph id="H10330E5BE41044DF8B71EE9C12F63C3"><enum>(2)</enum><text>submit a report to
Congress, at least biannually, that addresses the fuel economy of heavy duty
vehicles; and</text>
</paragraph></subsection></section><section id="H70E526F4013D46AEB364A45CC3EC3577"><enum>33004.</enum><header>Standards</header>
<subsection id="HCA037F5A35B045548DF0678EE0999BB3"><enum>(a)</enum><header>General
Requirements</header><text>Not later than 18 months after completing the
testing and assessments under section 33003, the Secretary of Transportation
shall prescribe average heavy duty vehicle fuel economy standards. Each
standard shall be the maximum feasible average fuel economy level that the
Secretary decides that manufacturers can achieve in that model year. The
Secretary may prescribe separate standards for different classes of heavy duty
motor vehicles. The standards for each model year shall be completed not later
than 18 months before the beginning of each model year.</text>
</subsection><subsection id="H2F0E9679C4B54F7E87A4DDDA35AFADE2"><enum>(b)</enum><header>Considerations
and Consultation</header><text>In determining maximum feasible average fuel
economy, the Secretary shall consider—</text>
<paragraph id="HAEE874DBBE244C4DB7F4564396079F44"><enum>(1)</enum><text>relevant available
heavy duty motor vehicle fuel consumption information;</text>
</paragraph><paragraph id="HE25A9B796286459B0033C9EFAA45A380"><enum>(2)</enum><text>technological
feasibility;</text>
</paragraph><paragraph id="HFA7764F2205041C48F1F44CBE49BE4FD"><enum>(3)</enum><text>economic
practicability;</text>
</paragraph><paragraph id="H67990D24989F46E4B97E62671CFC424E"><enum>(4)</enum><text>the desirability
of reducing United States dependence on oil;</text>
</paragraph><paragraph id="H368E94938E5C4345804C36B4F46BE326"><enum>(5)</enum><text>the effects of
average fuel economy standards on vehicle safety;</text>
</paragraph><paragraph id="H00E7C81CD0A94FF684A1E385BD2DCE00"><enum>(6)</enum><text>the effects of
average fuel economy standards on levels of employment and competitiveness of
manufacturers; and</text>
</paragraph><paragraph id="H6327F384BE434C3A887373EB001F1614"><enum>(7)</enum><text>the extent to
which the standard will carry out the purpose described in section
33001.</text>
</paragraph></subsection><subsection id="H82A75631CE7649619CD0709EED928582"><enum>(c)</enum><header>Cooperation</header><text>The
Secretary may advise, assist, and cooperate with departments, agencies, and
instrumentalities of the United States Government, States, and other public and
private agencies in developing fuel economy standards for heavy duty motor
vehicles.</text>
</subsection><subsection id="H6623FC75236F4B458137468D49858757"><enum>(d)</enum><header>Effective Dates
of Standards</header><text>The Secretary shall specify the effective date and
model years of each heavy duty motor vehicle fuel economy standard prescribed
under this chapter.</text>
</subsection><subsection id="HA9A8ED3BF8D5447F9EDA709672198B69"><enum>(e)</enum><text>5-Year Plan for
Testing Standards.—The Secretary shall establish, periodically review, and
continually update a 5-year plan for testing heavy duty motor vehicle fuel
economy standards prescribed under this chapter. In developing and establishing
testing priorities, the Secretary shall consider factors the Secretary
considers appropriate, consistent with the purpose described in section 33001
and the Secretary’s other duties and powers under this chapter.</text>
</subsection></section><section id="HD04EF18E85A84890B17C3061F20B33"><enum>33005.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated, for each of fiscal years 2008 through 2012, such
sums as may be necessary to carry out this
chapter.</text>
</section></chapter><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HC362B53F0EB44833BBD2FECE5169AB7D"><enum>204.</enum><header>Lightweight
materials research and development</header>
<subsection id="HCC347E26469249C097F9FE32098BA7FC"><enum>(a)</enum><header>In
General</header><text>As soon as practicable after the date of enactment of
this Act, the Secretary of Energy shall establish a research and development
program to determine ways in which—</text>
<paragraph id="H6F1FEB2D4D7C446FA831F8B273B0EA75"><enum>(1)</enum><text>the weight of
vehicles may be reduced to improve fuel efficiency without compromising
passenger safety; and</text>
</paragraph><paragraph id="H6DE76A802E6145838950F65B28DB57F7"><enum>(2)</enum><text>the cost of
lightweight materials (such as steel alloys and carbon fibers) required for the
construction of lighter-weight vehicles may be reduced.</text>
</paragraph></subsection><subsection id="H91AD44BE27F247FF889386AAF865BB63"><enum>(b)</enum><header>Authorization of
Appropriations</header><text>There is authorized to be appropriated to carry
out this section $50,000,000 for each of fiscal years 2008 through 2012.</text>
</subsection></section><section id="HB4E01389407146EEAA89ADF75D08FD05"><enum>205.</enum><header>Hybrid and
advanced diesel vehicles</header>
<subsection id="H1FA5B98750B7409EA9689DF6B2EECA6C"><enum>(a)</enum><header>Hybrid
Vehicles</header><text>The Energy Policy Act of 2005 is amended by striking
section 711 (<external-xref legal-doc="usc" parsable-cite="usc/42/16061">42 U.S.C. 16061</external-xref>) and inserting the following:</text>
<quoted-block id="HE8C6A11DF02742FB9BB5512F8E961499" style="OLC">
<section id="H4D2EF1486A864E7881988D9CCCB0E4B"><enum>711.</enum><header>Hybrid
vehicles</header>
<subsection id="HD3CCA052F29B4A3BBB23F7CD44C2BE57"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H209C8ECD6D8044DB939FE6D8146B709C"><enum>(1)</enum><header>Cost</header><text>The
term <term>cost</term> has the meaning given the term <term>cost of a loan
guarantee</term> within the meaning of section 502(5)(C) of the
<act-name parsable-cite="FCRA90">Federal Credit Reform Act of 1990</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a(5)(C)</external-xref>).</text>
</paragraph><paragraph id="HD8987544FF1A44F59F2C1700F02FB0B7"><enum>(2)</enum><header>Eligible
project</header><text>The term <term>eligible project</term> means a project
to—</text>
<subparagraph id="H95B362591A18443180B259DBD836D709"><enum>(A)</enum><text>improve hybrid
technologies under subsection (b); or</text>
</subparagraph><subparagraph id="H05867D93A8074A83A10161006B96C58C"><enum>(B)</enum><text>encourage domestic
production of efficient hybrid and advanced diesel vehicles under section
712(a).</text>
</subparagraph></paragraph><paragraph id="H092CDEBB35BB4A25A4D7C1C20203C35E"><enum>(3)</enum><header>Guarantee</header>
<subparagraph id="HAEE31615E51C4FD08394CC49602D5872"><enum>(A)</enum><header>In
general</header><text>The term <term>guarantee</term> has the meaning given the
term <term>loan guarantee</term> in section 502 of the
<act-name parsable-cite="FCRA90">Federal Credit Reform Act of 1990</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text>
</subparagraph><subparagraph id="H7136A09135004A0EB6EC005D74891C87"><enum>(B)</enum><header>Inclusion</header><text>The
term <term>guarantee</term> includes a loan guarantee commitment (as defined in
section 502 of the <act-name parsable-cite="FCRA90">Federal Credit Reform Act
of 1990</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>)).</text>
</subparagraph></paragraph><paragraph id="H4664B06A9B7842EBA155948300DCBCF"><enum>(4)</enum><header>Hybrid
technology</header><text>The term <term>hybrid technology</term> means a
battery or other rechargeable energy storage system, power electronic, hybrid
systems integration, and any other technology for use in hybrid vehicles,
including plug-in hybrid vehicles and their components.</text>
</paragraph><paragraph id="H59C79E4264E7491AAE91D6517BCA916C"><enum>(5)</enum><header>Obligation</header><text>The
term <term>obligation</term> means the loan or other debt obligation that is
guaranteed under this section.</text>
</paragraph></subsection><subsection id="HA7BCB17B7DD945E79568CA00B5A8227C"><enum>(b)</enum><header>Authorization</header><text>The
Secretary shall accelerate efforts directed toward the improvement of hybrid
technologies, including through the provision of loan guarantees under
subsection (c).</text>
</subsection><subsection id="HF4F2A14014A745E0A1105BE2370CE72"><enum>(c)</enum><header>Loan
Guarantees</header>
<paragraph id="H319FD1584E4147BCAB87484CEA009594"><enum>(1)</enum><header>In
general</header><text>The Secretary shall make guarantees under this section
for eligible projects on such terms and conditions as the Secretary, in
consultation with the Secretary of the Treasury, determines to be
appropriate.</text>
</paragraph><paragraph id="H7DECF0903D574AA8B3E9DFE86D43FA79"><enum>(2)</enum><header>Specific
appropriation or contribution</header><text>No guarantee shall be made
unless—</text>
<subparagraph id="H54F6E3C145C64B9AB73C1E53CC80A5F3"><enum>(A)</enum><text>an appropriation
for the cost has been made; or</text>
</subparagraph><subparagraph id="HE2FC6C9FD71943F2856475DA822C1F27"><enum>(B)</enum><text>the Secretary has
received from the borrower a payment in full for the cost of the obligation and
deposited the payment into the Treasury.</text>
</subparagraph></paragraph><paragraph id="H08849EF3F86F4E8DA0ACDD772BF4E2F3"><enum>(3)</enum><header>Amount</header><text>Unless
otherwise provided by law, a guarantee by the Secretary shall not exceed an
amount equal to 80 percent of the project cost of the hybrid technology that is
the subject of the guarantee, as estimated at the time at which the guarantee
is issued.</text>
</paragraph><paragraph id="HEE51CD30A03F481EA354BD2C6C9CC173"><enum>(4)</enum><header>Repayment</header>
<subparagraph id="HC6CE574D28F8427200AA85006549DC7"><enum>(A)</enum><header>In
general</header><text>No guarantee shall be made unless the Secretary
determines that there is a reasonable prospect of repayment of the principal
and interest on the obligation by the borrower.</text>
</subparagraph><subparagraph id="H9BCD26EDEC86433BAC4987E6375EB15E"><enum>(B)</enum><header>Amount</header><text>No
guarantee shall be made unless the Secretary determines that the amount of the
obligation (when combined with amounts available to the borrower from other
sources) will be sufficient to carry out the project.</text>
</subparagraph><subparagraph id="H395FBF25616A4BA7B0007FCB4E146119"><enum>(C)</enum><header>Subordination</header><text>The
obligation shall be subject to the condition that the obligation is not
subordinate to other financing.</text>
</subparagraph></paragraph><paragraph id="HCB66BA0964EF4252997BB432EB824F9E"><enum>(5)</enum><header>Interest
rate</header><text>An obligation shall bear interest at a rate that does not
exceed a level that the Secretary determines appropriate, taking into account
the prevailing rate of interest in the private sector for similar loans and
risks.</text>
</paragraph><paragraph id="HA46DA4FBD7184D99AD4682C784757EEA"><enum>(6)</enum><header>Term</header><text>The
term of an obligation shall require full repayment over a period not to exceed
the lesser of—</text>
<subparagraph id="HB2F534E6E6884AC5AB06EDB2300E3BA"><enum>(A)</enum><text>30 years; or</text>
</subparagraph><subparagraph id="H6BB4BF68F8284B16B761F07E67ABE6CD"><enum>(B)</enum><text>90 percent of the
projected useful life of the physical asset to be financed by the obligation
(as determined by the Secretary).</text>
</subparagraph></paragraph><paragraph id="HA4BC3A1E7E1F482692761B50BA43BD3B"><enum>(7)</enum><header>Defaults</header>
<subparagraph id="H80ED254106F04E4D00D9A90400D2985C"><enum>(A)</enum><header>Payment by
secretary</header>
<clause id="H549B30CE4418487F8869FAE0A7F50098"><enum>(i)</enum><header>In
general</header><text>If a borrower defaults on the obligation (as defined in
regulations promulgated by the Secretary and specified in the guarantee
contract), the holder of the guarantee shall have the right to demand payment
of the unpaid amount from the Secretary.</text>
</clause><clause id="H1E46D3C41C8D4045A2E842C97CD07035"><enum>(ii)</enum><header>Payment
required</header><text>Within such period as may be specified in the guarantee
or related agreements, the Secretary shall pay to the holder of the guarantee
the unpaid interest on, and unpaid principal of the obligation as to which the
borrower has defaulted, unless the Secretary finds that—</text>
<subclause id="H87B3843BFEF54BA184945D6CE2E0F9E5"><enum>(I)</enum><text>there was no
default by the borrower in the payment of interest or principal; or</text>
</subclause><subclause id="HC40A5682FA724E2DB1D15C12B9B8EA0"><enum>(II)</enum><text>the default has
been remedied.</text>
</subclause></clause><clause id="H50F6A91456CE4139AC50DAE308D3D37"><enum>(iii)</enum><header>Forbearance</header><text>Nothing
in this subsection precludes any forbearance by the holder of the obligation
for the benefit of the borrower that may be agreed upon by the parties to the
obligation and approved by the Secretary.</text>
</clause></subparagraph><subparagraph id="H6C059E97D87D4E238977C9D4ACA6BD00"><enum>(B)</enum><header>Subrogation</header>
<clause id="HA8629D19DB794018B055DB8D4646F9C8"><enum>(i)</enum><header>In
general</header><text>If the Secretary makes a payment under subparagraph (A),
the Secretary shall be subrogated to the rights of the recipient of the payment
as specified in the guarantee or related agreements including, where
appropriate, the authority (notwithstanding any other provision of law)
to—</text>
<subclause id="H5173601DC3BB436D95838CD230C34B58"><enum>(I)</enum><text>complete,
maintain, operate, lease, or otherwise dispose of any property acquired
pursuant to the guarantee or related agreements; or</text>
</subclause><subclause id="H307CEEEF4D524268A348E48CCA3EC81B"><enum>(II)</enum><text>permit the
borrower, pursuant to an agreement with the Secretary, to continue to pursue
the purposes of the eligible project, as the Secretary determines to be in the
public interest.</text>
</subclause></clause><clause id="H0A408682AFE94E7DA098EBF70032338C"><enum>(ii)</enum><header>Superiority of
rights</header><text>The rights of the Secretary, with respect to any property
acquired pursuant to a guarantee or related agreement, shall be superior to the
rights of any other person with respect to the property.</text>
</clause><clause id="HB9EAC54A6F9945679CED1D8D37A8866B"><enum>(iii)</enum><header>Terms and
conditions</header><text>A guarantee agreement shall include such detailed
terms and conditions as the Secretary determines appropriate to—</text>
<subclause id="H9068EF0BBA004A53B205D3549236B676"><enum>(I)</enum><text>protect the
interests of the United States in the case of default; and</text>
</subclause><subclause id="H69DBE5E33CC541B4AD8B06C4AA16BF5"><enum>(II)</enum><text>have available all
the patents and technology necessary for any person selected, including the
Secretary, to complete and operate the eligible project.</text>
</subclause></clause></subparagraph><subparagraph id="H1AD422D159ED4C1C9E2BDB9120974705"><enum>(C)</enum><header>Payment of
principal and interest by secretary</header><text>With respect to any
obligation guaranteed under this section, the Secretary may enter into a
contract to pay, and pay, holders of the obligation, for and on behalf of the
borrower, from funds appropriated for that purpose, the principal and interest
payments that become due and payable on the unpaid balance of the obligation if
the Secretary finds that—</text>
<clause id="H8352B8CF44B2475600A7A59EBBE9D7F"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="HEAF9FEFF38C3404EB525546795BE8655"><enum>(I)</enum><text>the borrower is unable
to meet the payments and is not in default;</text>
</subclause><subclause id="HF761ED5B82C747B3825380A78C97BB8" indent="up1"><enum>(II)</enum><text>it is in the public interest to permit
the borrower to continue to pursue the purposes of the eligible project;
and</text>
</subclause><subclause id="HC1DA0519ACE44C56A62D9EC591E73BF5" indent="up1"><enum>(III)</enum><text>the probable net benefit to the Federal
Government in paying the principal and interest will be greater than the
benefit that would result in the event of a default;</text>
</subclause></clause><clause id="HC487C147F1E94E51976B1D4846C57639"><enum>(ii)</enum><text>the amount of the
payment that the Secretary is authorized to pay will be no greater than the
amount of principal and interest that the borrower is obligated to pay under
the agreement being guaranteed; and</text>
</clause><clause id="HD202A25D2DC24844A7850243BC1062DB"><enum>(iii)</enum><text>the borrower
agrees to reimburse the Secretary for the payment (including interest) on terms
and conditions that are satisfactory to the Secretary.</text>
</clause></subparagraph><subparagraph id="H2699529C8EB54AF0A3C92C171FB1D69"><enum>(D)</enum><header>Action by
attorney general</header>
<clause id="H765B5A757A494456B5BF8093C8FB8D7"><enum>(i)</enum><header>Notification</header><text>If
the borrower defaults on an obligation, the Secretary shall notify the Attorney
General of the default.</text>
</clause><clause id="HB8B9730D91AF445B96510084007854A2"><enum>(ii)</enum><header>Recovery</header><text>On
receipt of notification, the Attorney General shall take such action as the
Attorney General determines to be appropriate to recover the unpaid principal
and interest due from—</text>
<subclause id="H047F4477EFBB4CE98748DBD59C38995C"><enum>(I)</enum><text>such assets of the
defaulting borrower as are associated with the obligation; or</text>
</subclause><subclause id="H3FAA4554BA9A4D4798FEE46ECA3E74E9"><enum>(II)</enum><text>any other
security pledged to secure the obligation.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="HE79B95C71E0F4B9C801BE8CF7E213826"><enum>(8)</enum><header>Fees</header>
<subparagraph id="HA74116F67843447B9506549E07CD8605"><enum>(A)</enum><header>In
general</header><text>The Secretary shall charge and collect fees for
guarantees in amounts the Secretary determines are sufficient to cover
applicable administrative expenses.</text>
</subparagraph><subparagraph id="H371361769DE24EC4B9C2E9975B71D7B0"><enum>(B)</enum><header>Availability</header><text>Fees
collected under this paragraph shall—</text>
<clause id="H445B4D1E8A774562BABBAA7696DBEA7C"><enum>(i)</enum><text>be
deposited by the Secretary into the Treasury; and</text>
</clause><clause id="H83DEA3B8DA144A3694ABD0B698E6BEAA"><enum>(ii)</enum><text>remain available
until expended, subject to such other conditions as are contained in annual
appropriations Acts.</text>
</clause></subparagraph></paragraph><paragraph id="H81F7E405224F454FB32F34C5241D9F3F"><enum>(9)</enum><header>Records;
audits</header>
<subparagraph id="HEE68D58B405A4D18B12D205E00B1C543"><enum>(A)</enum><header>In
general</header><text>A recipient of a guarantee shall keep such records and
other pertinent documents as the Secretary shall prescribe by regulation,
including such records as the Secretary may require to facilitate an effective
audit.</text>
</subparagraph><subparagraph id="H15467732F1AD4AEF93381DB6F8CAB132"><enum>(B)</enum><header>Access</header><text>The
Secretary and the Comptroller General of the United States, or their duly
authorized representatives, shall have access, for the purpose of audit, to the
records and other pertinent documents.</text>
</subparagraph></paragraph><paragraph id="H5BD60B0F5FFD44F4AE1E798E7F7E05E6"><enum>(10)</enum><header>Full faith and
credit</header><text>The full faith and credit of the United States is pledged
to the payment of all guarantees issued under this section with respect to
principal and interest.</text>
</paragraph></subsection><subsection id="HA0F9FA728D15428C001D00E32BF3842"><enum>(d)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated such sums
as are necessary to provide the cost of guarantees under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H784168AB296E47D09F1EB7E946842100"><enum>(b)</enum><header>Efficient Hybrid
and Advanced Diesel Vehicles</header><text>Section 712(a) of the Energy Policy
Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16062">42 U.S.C. 16062(a)</external-xref>) is amended in the second sentence by striking
<quote>grants to automobile manufacturers</quote> and inserting <quote>grants
and the provision of loan guarantees under section 711(c) to automobile
manufacturers and suppliers</quote>.</text>
</subsection></section><section id="H1CD7C91AFA814F0FA374A702C24B494D"><enum>206.</enum><header>Advanced
technology motor vehicles manufacturing credit</header>
<subsection id="HBCA887D84F4A460297D3B9A6184795CD"><enum>(a)</enum><header>In
General</header><text>Subpart B of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to foreign tax credit, etc.) is amended
by adding at the end the following new section:</text>
<quoted-block id="HE0612162824E46E2AF999900403368F1" style="OLC">
<section id="H244311B56AE44EC2BF8B7677A627DC25"><enum>30D.</enum><header>Advanced
technology motor vehicles manufacturing credit</header>
<subsection id="H184D2160D6DD4468AD3BA446394BFD2B"><enum>(a)</enum><header>Credit
Allowed</header><text display-inline="yes-display-inline">There shall be
allowed as a credit against the tax imposed by this chapter for the taxable
year an amount equal to the sum of—</text>
<paragraph id="H1218A81B50514716AE21B3FFA436D8B0"><enum>(1)</enum><text>in the case of a
qualified investment of an eligible taxpayer for such taxable year relating to
plug-in hybrid electric vehicles or pure electric vehicles, 50 percent of so
much of such qualified investment as does not exceed $150,000,000, and</text>
</paragraph><paragraph id="H283F937881404DA0AF3C4B943F6D19C9"><enum>(2)</enum><text>in the case of any
other qualified investment of an eligible taxpayer for such taxable year, 35
percent of so much of such qualified investment as does not exceed
$50,000,000.</text>
</paragraph></subsection><subsection id="H8D29E95758A4497F905C99C75B09AC4D"><enum>(b)</enum><header>Qualified
Investment</header><text>For purposes of this section—</text>
<paragraph id="HB20712A213444F78BE326D776B1C946C"><enum>(1)</enum><header>In
general</header><text>The qualified investment for any taxable year is equal to
the incremental costs incurred during such taxable year—</text>
<subparagraph id="H95811302000B40F98DE0910053120086"><enum>(A)</enum><text>to re-equip,
expand, or establish any manufacturing facility of the eligible taxpayer to
produce advanced technology motor vehicles or to produce eligible
components,</text>
</subparagraph><subparagraph id="HB26735DA91D6479593C472D05801D32F"><enum>(B)</enum><text>for engineering
integration of such vehicles and components as described in subsection (d),
and</text>
</subparagraph><subparagraph id="HF683FAEA30864900BF304817F079FD77"><enum>(C)</enum><text>for research and
development related to advanced technology motor vehicles and eligible
components.</text>
</subparagraph></paragraph><paragraph id="H0B67E914298C43D9881C3F7300CC826"><enum>(2)</enum><header>Attribution
rules</header><text>In the event a facility of the eligible taxpayer produces
both advanced technology motor vehicles and conventional motor vehicles, or
eligible and non-eligible components, only the qualified investment
attributable to production of advanced technology motor vehicles and eligible
components shall be taken into account.</text>
</paragraph></subsection><subsection id="H8F683CF6AB3A4480B5985C62B70463E2"><enum>(c)</enum><header>Advanced
Technology Motor Vehicles and Eligible Components</header><text>For purposes of
this section—</text>
<paragraph id="HCAA2A59911234304AA8389818B940290"><enum>(1)</enum><header>Advanced
technology motor vehicle</header><text>The term <term>advanced technology motor
vehicle</term> means—</text>
<subparagraph id="HD855F49436714FCAAAEFCF2B472FE84B"><enum>(A)</enum><text>any new advanced
lean burn technology motor vehicle (as defined in section 30B(c)(3)),</text>
</subparagraph><subparagraph id="H18812F1BA620425A8FE5C9CAD2A16031"><enum>(B)</enum><text>any new qualified
hybrid motor vehicle (as defined in section 30B(d)(3)(A) and determined without
regard to any gross vehicle weight rating), or</text>
</subparagraph><subparagraph id="HECECE7349A7F4631AE90ADC2FC378DA1"><enum>(C)</enum><text display-inline="yes-display-inline">any new plug-in hybrid electric
vehicle.</text>
</subparagraph></paragraph><paragraph id="H5A9FB04AEA46420A823863F61CCA7CE"><enum>(2)</enum><header>Plug-in hybrid
electric vehicle</header><text>For purposes of this section, the term
<quote>plug-in hybrid electric vehicle</quote> means a light-duty, medium-duty,
or heavy-duty on-road or nonroad vehicle that is propelled by an internal
combustion engine or heat engine and/or an electric motor and energy storage
system using (or capable of using)—</text>
<subparagraph id="H4C1F8579981546B1B1206BDD1131153D"><enum>(A)</enum><text>any combustible
fuel,</text>
</subparagraph><subparagraph id="H7B3090038CC24F8DAB09C29E00F60756"><enum>(B)</enum><text>an on-board,
rechargeable storage device, and</text>
</subparagraph><subparagraph id="H640E3CF51EFC49EAB232B76D3618C4E2"><enum>(C)</enum><text>a means of using
an off-board source of electricity to operate the vehicle in intermittent or
continuous all-electric mode.</text>
</subparagraph></paragraph><paragraph id="H0CF0A3DD07224BC40007F869E2EE424E"><enum>(3)</enum><header>Eligible
components</header><text>The term <term>eligible component</term> means any
component inherent to any advanced technology motor vehicle, including—</text>
<subparagraph id="H88FDB424F9B34ACE92FF38F764CE5381"><enum>(A)</enum><text>with respect to
any gasoline or diesel-electric new qualified hybrid motor vehicle—</text>
<clause id="H73FEC0A9E45E43B4B3FFE5B4EED87EC2"><enum>(i)</enum><text>electric motor or
generator,</text>
</clause><clause id="H7BFAAC761E3B4E348050B5C2E671B59"><enum>(ii)</enum><text>power split
device,</text>
</clause><clause id="H2920653290D14ADCAB90B500858C2166"><enum>(iii)</enum><text>power control
unit,</text>
</clause><clause id="HEA5FE20CDCA44D91AE62CEE7D0005FA7"><enum>(iv)</enum><text>power
controls,</text>
</clause><clause id="H2C43FE1528A54A58AFA13B77BC622FE"><enum>(v)</enum><text>integrated starter
generator, or</text>
</clause><clause id="HE71B849DA15541F6BB83B8C8F0006201"><enum>(vi)</enum><text>battery,</text>
</clause></subparagraph><subparagraph id="H018CC1AADE084F22BB1F0476396679D2"><enum>(B)</enum><text>with respect to
any hydraulic new qualified hybrid motor vehicle—</text>
<clause id="H2E00A9057E34497887A8CB69F813EB8D"><enum>(i)</enum><text>hydraulic
accumulator vessel,</text>
</clause><clause id="H09A9B0539C114A998639E23C78B69BCF"><enum>(ii)</enum><text>hydraulic pump,
or</text>
</clause><clause id="H32AF546F5DD144C0B2C40213366BF7D0"><enum>(iii)</enum><text>hydraulic
pump-motor assembly,</text>
</clause></subparagraph><subparagraph id="H9F647AC3D9CB4AE09FD8A20000971D00"><enum>(C)</enum><text>with respect to
any new advanced lean burn technology motor vehicle—</text>
<clause id="HAB80348978714819B860FF95FE002D1D"><enum>(i)</enum><text>diesel
engine,</text>
</clause><clause id="HB3EC3B020A6645E58F078100D1BEE876"><enum>(ii)</enum><text>turbocharger,</text>
</clause><clause id="H440141CEFA074545A5003967D99869B5"><enum>(iii)</enum><text>fuel injection
system, or</text>
</clause><clause id="H4A5D126E75ED4E7C9D1BF2BB00DE8B42"><enum>(iv)</enum><text>after-treatment
system, such as a particle filter or NOx absorber, and</text>
</clause></subparagraph><subparagraph id="H955E7B7B1198432AA8AB1C5936009F77"><enum>(D)</enum><text>with respect to
any advanced technology motor vehicle, any other component submitted for
approval by the Secretary.</text>
</subparagraph></paragraph></subsection><subsection id="H779954154E29403E819DF4F4FBD32554"><enum>(d)</enum><header>Engineering
Integration Costs</header><text>For purposes of subsection (b)(1)(B), costs for
engineering integration are costs incurred prior to the market introduction of
advanced technology vehicles for engineering tasks related to—</text>
<paragraph id="H9B7745E0A08849A39E21BF5CCD79A5F"><enum>(1)</enum><text>establishing
functional, structural, and performance requirements for component and
subsystems to meet overall vehicle objectives for a specific
application,</text>
</paragraph><paragraph id="H73DBCA73D94647D39247EAD00BD1727"><enum>(2)</enum><text>designing
interfaces for components and subsystems with mating systems within a specific
vehicle application,</text>
</paragraph><paragraph id="H07CE2A4B249D48E1B4585D83865622BE"><enum>(3)</enum><text>designing cost
effective, efficient, and reliable manufacturing processes to produce
components and subsystems for a specific vehicle application, and</text>
</paragraph><paragraph id="H71244A84851C46D081AEF0D442EF2684"><enum>(4)</enum><text>validating
functionality and performance of components and subsystems for a specific
vehicle application.</text>
</paragraph></subsection><subsection id="H77CB4E01CA72402880CB27105EE4A57E"><enum>(e)</enum><header>Eligible
Taxpayer</header><text>For purposes of this section, the term <term>eligible
taxpayer</term> means any taxpayer if more than 50 percent of its gross
receipts for the taxable year is derived from the manufacture of motor vehicles
or any component parts of such vehicles.</text>
</subsection><subsection id="H04ADB8A61ECE47B9B95B7023B2BB0037"><enum>(f)</enum><header>Limitation Based
on Amount of Tax</header><text>The credit allowed under subsection (a) for the
taxable year shall not exceed the excess of—</text>
<paragraph id="H1F69A8A3D2FA4567A4252266F9EFF4DF"><enum>(1)</enum><text>the sum of—</text>
<subparagraph id="H65385775BCD04116AEE22D927DA6C024"><enum>(A)</enum><text>the regular tax
liability (as defined in section 26(b)) for such taxable year, plus</text>
</subparagraph><subparagraph id="HD00CA76AF6744005A92E9423A4FCD57"><enum>(B)</enum><text>the tax imposed by
section 55 for such taxable year and any prior taxable year beginning after
1986 and not taken into account under section 53 for any prior taxable year,
over</text>
</subparagraph></paragraph><paragraph id="HD5E338701722474C82A7CD25BFAA5315"><enum>(2)</enum><text>the sum of the
credits allowable under subpart A and sections 27, 30, and 30B for the taxable
year.</text>
</paragraph></subsection><subsection id="H366ED70A71C64E1D828C97C2F45B925D"><enum>(g)</enum><header>Reduction in
Basis</header><text>For purposes of this subtitle, if a credit is allowed under
this section for any expenditure with respect to any property, the increase in
the basis of such property which would (but for this paragraph) result from
such expenditure shall be reduced by the amount of the credit so
allowed.</text>
</subsection><subsection id="HDDCA8288D50A422B8E72ED2718844437"><enum>(h)</enum><header>No Double
Benefit</header>
<paragraph id="H9ACF2DC9BDD948D699FD385FEF6BB655"><enum>(1)</enum><header>Coordination
with other deductions and credits</header><text>Except as provided in paragraph
(2), the amount of any deduction or other credit allowable under this chapter
for any cost taken into account in determining the amount of the credit under
subsection (a) shall be reduced by the amount of such credit attributable to
such cost.</text>
</paragraph><paragraph id="H93F4C04D06B84F3CA1B241A35365E69F"><enum>(2)</enum><header>Research and
development costs</header>
<subparagraph id="H856E6D266F8B408C9B45A9E7A66C9D6B"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), any amount
described in subsection (b)(1)(C) taken into account in determining the amount
of the credit under subsection (a) for any taxable year shall not be taken into
account for purposes of determining the credit under section 41 for such
taxable year.</text>
</subparagraph><subparagraph id="HBB5250A2F6B74652B5E458A543670011"><enum>(B)</enum><header>Costs taken into
account in determining base period research expenses</header><text>Any amounts
described in subsection (b)(1)(C) taken into account in determining the amount
of the credit under subsection (a) for any taxable year which are qualified
research expenses (within the meaning of section 41(b)) shall be taken into
account in determining base period research expenses for purposes of applying
section 41 to subsequent taxable years.</text>
<clause id="H96E49F4F24FE4279AA0360EFC8C1A83C" indent="up3"><enum>(i)</enum><header>Business Carryovers
Allowed</header><text>If the credit allowable under subsection (a) for a
taxable year exceeds the limitation under subsection (f) for such taxable year,
such excess (to the extent of the credit allowable with respect to property
subject to the allowance for depreciation) shall be allowed as a credit
carryback and carryforward under rules similar to the rules of section
39.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HB965257B3B324433B0DD495C8F238EF6"><enum>(j)</enum><header>Special
Rules</header><text>For purposes of this section, rules similar to the rules of
paragraphs (4) and (5) of section 179A(e) and paragraphs (1) and (2) of section
41(f) shall apply</text>
</subsection><subsection id="H07E8DEF3296B444C00B8B997208007D2"><enum>(k)</enum><header>Election not to
Take Credit</header><text>No credit shall be allowed under subsection (a) for
any property if the taxpayer elects not to have this section apply to such
property.</text>
</subsection><subsection id="HA170FC780DD04BCAAD004BA96B5825AD"><enum>(l)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as necessary to carry out the
provisions of this section.</text>
</subsection><subsection id="H56C4D8C7402C4EE7AC722CB446A13C15"><enum>(m)</enum><header>Termination</header><text>This
section shall not apply to any qualified investment after December 31,
2015.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2B18795C7FE54B50001D9315FAD9D895"><enum>(b)</enum><header>Conforming
Amendments</header>
<paragraph id="HE679F0D504634AEEA7B348F2A7E600D2"><enum>(1)</enum><text>Section 1016(a) of
the Internal Revenue Code of 1986 is amended by striking <quote>and</quote> at
the end of paragraph (36), by striking the period at the end of paragraph (37)
and inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block id="H8230CCBE412643B595074DD1897204F5" style="OLC">
<paragraph id="HA431A5FF808548AF9DB24DD0585429C"><enum>(38)</enum><text>to the extent
provided in section
30D(g).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB8D8624958E34B4EB8BCFB2D002E82C3"><enum>(2)</enum><text>Section 6501(m) of
such Code is amended by inserting <quote>30D(k),</quote> after
<quote>30C(e)(5),</quote>.</text>
</paragraph><paragraph id="H28397DEE85D943BF853DDACDB3D65D"><enum>(3)</enum><text>The
table of sections for subpart B of part IV of subchapter A of chapter 1 of such
Code is amended by inserting after the item relating to section 30C the
following new item:</text>
<quoted-block id="H5B9E07A7C502443EA887F2557E648DAA" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 30D. Advanced technology motor
vehicles manufacturing
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA3901DA47D484EA5A7E018ABF7B70525"><enum>(c)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply to amounts
incurred in taxable years beginning after December 31, 2006.</text>
</subsection></section><section id="H6BBA30FE949E43FDA027BC71A9E47F89"><enum>207.</enum><header>Consumer
incentives to purchase advanced technology vehicles</header>
<subsection id="HB50E2ECD0CE6407A8FB99238BFF6178B"><enum>(a)</enum><header>Flexible fuel
vehicle credit</header>
<paragraph id="HB364EEFC99E64A8CA8D476F6F2522013"><enum>(1)</enum><header>In
general</header><text>Subpart B of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to foreign tax credit, etc.), as
amended by this Act, is amended by adding at the end the following new
section:</text>
<quoted-block id="HB77A9AE1F864447184E6B4CFBB841C38" style="OLC">
<section id="H6F88D80241D0462DB0628BA5352DD51B"><enum>30E.</enum><header>Flexible fuel
vehicle credit</header>
<subsection id="H2ACA4CBDDD4949FF849D666B73E99B00"><enum>(a)</enum><header>Allowance of
Credit</header><text>There shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to the GEM flexible fuel
vehicle credit.</text>
</subsection><subsection id="HA5A39F8551D24949B6CDE1F011007996"><enum>(b)</enum><header>GEM Flexible
Fuel Vehicle Credit</header>
<paragraph id="HC04B293EE57D4FF3886BABB9E6A8254F"><enum>(1)</enum><header>In
general</header><text>For the purposes of subsection (a), the GEM flexible fuel
vehicle credit determined under this subsection for the taxable year is the
credit amount determined under paragraph (2) with respect to a GEM flexible
fuel vehicle placed in service by the taxpayer during the taxable year.</text>
</paragraph><paragraph id="H50DD9B04283F47789EC6760079409B93"><enum>(2)</enum><header>Credit
amount</header><text>In the case of a new qualified GEM flexible fuel vehicle
which is a passenger automobile or light truck and which has a gross vehicle
weight rating of not more than 8,500 pounds, the amount shall be $300.</text>
</paragraph></subsection><subsection id="H883A37FF435F49D481E2310707C2A906"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="H7159B6CC168846ECB6E15787B4E422BC"><enum>(1)</enum><header>Gem flexible
fuel vehicle</header><text>The term <term>GEM flexible fuel vehicle</term>
means a motor vehicle warrantied by its manufacturer to operate on any
combination of gasoline, E85, and M85.</text>
</paragraph><paragraph id="HCB6C93AC0B02480BB635342FF4C900B5"><enum>(2)</enum><header>E<enum-in-header>85</enum-in-header></header><text>The
term <term>E85</term> means a fuel blend containing 85 percent ethanol and 15
percent gasoline by volume.</text>
</paragraph><paragraph id="H635A504EC9D14A3EB986DE5756BB47D2"><enum>(3)</enum><header>M<enum-in-header>85</enum-in-header></header><text>The
term <term>M85</term> means a fuel blend containing 85 percent methanol and 15
percent gasoline by volume.</text>
</paragraph></subsection><subsection id="H1D67C5DD5AC14C3C9F7744CCA0D87CD"><enum>(d)</enum><header>Termination</header><text>This
section shall not apply to taxable years beginning after December 31,
2010.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5DC71AD16E8D4E22B4759FBC001411CC"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part IV of
subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to
foreign tax credit, etc.), as amended by this Act, is amended by adding at the
end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H218332F985A747E19DBB005803A4B36F" style="OLC">
<toc container-level="quoted-block-container" idref="HB77A9AE1F864447184E6B4CFBB841C38" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H6F88D80241D0462DB0628BA5352DD51B" level="section">Sec. 30E. Flexible fuel vehicle
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H906337C339C74768AED727A56EBD6EB0"><enum>(b)</enum><header>Elimination on
Number of New Qualified Hybrid and Advanced Lean Burn Technology Vehicles
Eligible for Alternative Motor Vehicle Credit</header>
<paragraph id="H17C59285A2334B78BF5DCC3290E0CD18"><enum>(1)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B</external-xref> of the Internal Revenue Code of 1986 is
amended by striking subsection (f) and by redesignating subsections (g) through
(j) as subsections (f) through (i), respectively.</text>
</paragraph><paragraph id="H36A9D7D9494A4E3C00808BDFD76694B0"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H70D8DDFCA5FD4CB983483EF37E4CD8EE"><enum>(A)</enum><text>Paragraphs (4) and
(6) of <external-xref legal-doc="usc" parsable-cite="usc/26/30B">section 30B(h)</external-xref> of the Internal Revenue Code of 1986 are each amended by
striking <quote>(determined without regard to subsection (g))</quote> and
inserting <quote>determined without regard to subsection (f))</quote>.</text>
</subparagraph><subparagraph id="H4EDEB26E11884A44999376EFF55CB9D7"><enum>(B)</enum><text>Section 38(b)(25)
of such Code is amended by striking <quote>section 30B(g)(1)</quote> and
inserting <quote>section 30B(f)(1)</quote>.</text>
</subparagraph><subparagraph id="H4B7B28B8253C43DB8833087EEFADB704"><enum>(C)</enum><text>Section 55(c)(2)
of such Code is amended by striking <quote>section 30B(g)(2)</quote> and
inserting <quote>section 30B(f)(2)</quote>.</text>
</subparagraph><subparagraph id="H0AB46D65E9494EBDA323A672C028A8FB"><enum>(D)</enum><text>Section
1016(a)(36) of such Code is amended by striking <quote>section
30B(h)(4)</quote> and inserting <quote>section 30B(g)(4)</quote>.</text>
</subparagraph><subparagraph id="H7B262EE0618F4AC3A200979E8776D800"><enum>(E)</enum><text>Section 6501(m) of
such Code is amended by striking <quote>section 30B(h)(9)</quote> and inserting
<quote>section 30B(g)(9)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H98DA4F5E0C4A45B29BB6A713CAE13D5"><enum>(c)</enum><header>Extension of
Alternative Vehicle Credit for New Qualified Hybrid Motor
Vehicles</header><text>Paragraph (3) of section 30B(i) of the Internal Revenue
Code of 1986 (as redesignated by subsection (a)) is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection id="H7AB809E83F4B481BA2F211A68F566318"><enum>(d)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply to property
placed in service after December 31, 2006, in taxable years ending after such
date.</text>
</subsection></section><section id="HFA4868BB2A7245F3851731007409AA1F"><enum>208.</enum><header>Federal fleet
requirements</header>
<subsection id="H25C5C4FAC06648B4A294F5E86996F101"><enum>(a)</enum><header>Regulations</header>
<paragraph id="H9615F4DEC82B4957B0CBE51450F289F2"><enum>(1)</enum><header>In
general</header><text>The Secretary of Energy shall issue regulations for
Federal fleets subject to the Energy Policy Act of 1992 (42 U.S.C. 13201 et
seq.) requiring that not later than fiscal year 2015 each Federal agency
achieve at least a 20 percent reduction in petroleum consumption, as calculated
from the baseline established by the Secretary for fiscal year 1999.</text>
</paragraph><paragraph id="HE8431867D92542B58EC6BE22CF0D327"><enum>(2)</enum><header>Requirement</header><text>Not
later than fiscal year 2011, of the Federal vehicles required to be alternative
fueled vehicles under title V of the Energy Policy Act of 1992 (42 U.S.C. 13251
et seq.), at least 30 percent shall be flexible fuel hybrid motor vehicles or
flexible fuel plug-in hybrid motor vehicles.</text>
</paragraph><paragraph id="HFA68F1F903E54907902CA7FC760084EF"><enum>(3)</enum><header>Exception</header><text>The
regulations issued under this subsection shall not apply to ground vehicles of
the Department of Defense whose primary purpose is combat or the support of
troops in combat operations.</text>
</paragraph></subsection><subsection id="H707D70D18C0241EAB3B2EC8B12A578D5"><enum>(b)</enum><header>Inclusion of
Electric Drive in Energy Policy Act of 1992</header><text>Section 508(a) of the
Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13258">42 U.S.C. 13258(a)</external-xref>) is amended—</text>
<paragraph id="H16CF3F1818F64BB491F3A592F4D78DD5"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> before <quote>The Secretary</quote>; and</text>
</paragraph><paragraph id="H97515C676400422CABD3F2E0A344D5F9"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H53FA1EBF399B4A01AFA0CC7C07CBCCE5" style="OLC">
<paragraph id="HFC2E70E5F7DD407E954EC42D64A0CE02" indent="up1"><enum>(2)</enum><text>Not later than January 31, 2008, the
Secretary shall—</text>
<subparagraph id="H4A268623BC3F410F857CF1FFEBE4575"><enum>(A)</enum><text>allocate credit in an amount to be
determined by the Secretary for—</text>
<clause id="H867C19F085D6464480A931449855DC22"><enum>(i)</enum><text>acquisition of—</text>
<subclause id="H04ACF477A82F474D8F20BB00B600C109"><enum>(I)</enum><text>a light-duty hybrid electric
vehicle;</text>
</subclause><subclause id="HA2294ABC19D24E3FA7C3EFA4B323F87B"><enum>(II)</enum><text>a plug-in hybrid electric
vehicle;</text>
</subclause><subclause id="H6BE4E5798315463DB5BAE9127E85B54F"><enum>(III)</enum><text>a fuel cell electric vehicle;</text>
</subclause><subclause id="H6BF844B207054AE4A820A9C500E5A4CE"><enum>(IV)</enum><text>a medium- or heavy-duty hybrid electric
vehicle;</text>
</subclause><subclause id="H103F1B4F3E8447C3A9060068F97B6551"><enum>(V)</enum><text>a neighborhood electric vehicle;
or</text>
</subclause><subclause id="HE570030D24B748F0BE2D626D7F2466C"><enum>(VI)</enum><text>a medium- or heavy-duty dedicated
vehicle; and</text>
</subclause></clause><clause id="H8761C3CAE6AA404D8B6F6EB763DF3C31"><enum>(ii)</enum><text>investment in qualified
alternative fuel infrastructure or nonroad equipment, as determined by the
Secretary; and</text>
</clause></subparagraph><subparagraph id="H3F30FDB5E7294DEA8CC61EDB9900FE8C"><enum>(B)</enum><text>allocate more than 1, but not to
exceed 5, credits for investment in an emerging technology relating to any
vehicle described in subparagraph (A) to encourage—</text>
<clause id="HCDF3B1C48A1540F3912EF101C7DD2F7F"><enum>(i)</enum><text>a reduction in petroleum
demand;</text>
</clause><clause id="H0F2D64E57CF44B178D7EB67F00E3B59C"><enum>(ii)</enum><text>technological advancement;
and</text>
</clause><clause id="HA0F60DA50E14442395506EB32511FE4F"><enum>(iii)</enum><text>environmental
safety.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H80F32E673D3D4BA4875829E8DF781F5"><enum>(c)</enum><header>Authorization of
Appropriations</header><text>There is authorized to be appropriated to carry
out this section (including the amendments made by subsection (b)) $10,000,000
for the period of fiscal years 2008 through 2012.</text>
</subsection></section><section id="HFD58D559C3174CF3B612CB2F8B195264"><enum>209.</enum><header>Tax incentives
for private fleets</header>
<subsection id="H5731EBA9D945418D832088E503047448"><enum>(a)</enum><header>In
General</header><text>Subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section 48B the
following new section:</text>
<quoted-block id="H981101F1E359465D9098D8E8FCEFAF07" style="OLC">
<section id="HD0552A673CFE4115B66B6486C945CB74"><enum>48C.</enum><header>Fuel-Efficient
fleet credit</header>
<subsection id="H7C96609DB7284BAEAA5336762404187B"><enum>(a)</enum><header>General
Rule</header><text>For purposes of section 46, the fuel-efficient fleet credit
for any taxable year is 15 percent of the qualified fuel-efficient vehicle
investment amount of an eligible taxpayer for such taxable year.</text>
</subsection><subsection id="HEC5430638E664C61A8A1C6C12C177341"><enum>(b)</enum><header>Vehicle Purchase
Requirement</header><text>In the case of any eligible taxpayer which places
less than 10 qualified fuel-efficient vehicles in service during the taxable
year, the qualified fuel-efficient vehicle investment amount shall be
zero.</text>
</subsection><subsection id="HCA2B015CA3524AB58BC3ACF1FC675190"><enum>(c)</enum><header>Qualified
Fuel-Efficient Vehicle Investment Amount</header><text>For purposes of this
section—</text>
<paragraph id="H29C6FE016F5F42D9B53BEE86A03399B"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified fuel-efficient vehicle
investment amount</term> means the basis of any qualified fuel-efficient
vehicle placed in service by an eligible taxpayer during the taxable
year.</text>
</paragraph><paragraph id="H9D9DE331079447E6B6FA20580403F2E1"><enum>(2)</enum><header>Qualified
fuel-efficient vehicle</header><text>The term <term>qualified fuel-efficient
vehicle</term> means an automobile which has a fuel economy which is at least
10 percent greater than the average fuel economy standard for an automobile of
the same class and model year.</text>
</paragraph><paragraph id="H97368A8A37394597AEFF999902430751"><enum>(3)</enum><header>Other
terms</header><text>The terms <term>automobile</term>, <term>average fuel
economy standard</term>, <term>fuel economy</term>, and <term>model year</term>
have the meanings given to such terms under <external-xref legal-doc="usc" parsable-cite="usc/49/32901">section 32901</external-xref> of title 49, United
States Code.</text>
</paragraph></subsection><subsection id="H9A422AD587F94B0EB13C7CC800236FB5"><enum>(d)</enum><header>Eligible
Taxpayer</header><text>The term <term>eligible taxpayer</term> means, with
respect to any taxable year, a taxpayer who owns a fleet of 100 or more
vehicles which are used in the trade or business of the taxpayer on the first
day of such taxable year.</text>
</subsection><subsection id="HA7661E8C3A8C4D8DBBE9A504E704760"><enum>(e)</enum><header>Termination</header><text>This
section shall not apply to any vehicle placed in service after December 31,
2010.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H26F0DCB0D4FA4BA8985FC000FA7B57F"><enum>(b)</enum><header>Credit Treated as
Part of Investment Credit</header><text>Section 46 of the Internal Revenue Code
of 1986 is amended by striking <quote>and</quote> at the end of paragraph (3),
by striking the period at the end of paragraph (4) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block id="H486AC7883AA9418094A1DC2209E1BE80" style="OLC">
<paragraph id="HF61A0256385944C18D18A57E37D38C6F"><enum>(5)</enum><text>the fuel-efficient
fleet
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H15DDACB56A4F47059118D6EE49E6E662"><enum>(c)</enum><header>Conforming
Amendments</header>
<paragraph id="H0B75F1CD1A734D26A0FDC28FCA701432"><enum>(1)</enum><text>Section
49(a)(1)(C) of the Internal Revenue Code of 1986 is amended by striking
<quote>and</quote> at the end of clause (iii), by striking the period at the
end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end
the following new clause:</text>
<quoted-block id="H7C3EE66065014CB5BD0392973C615C60" style="OLC">
<clause id="HB95F4A4B5D6D4EE00057E9496612371F"><enum>(v)</enum><text>the basis of any
qualified fuel-efficient vehicle which is taken into account under section
48C.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF8D2D8A091864A458960F3D5C662B9B6"><enum>(2)</enum><text>The table of
sections for subpart E of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 48 the following new
item:</text>
<quoted-block id="HEFFA5D7623984AABABA627AB293D475F" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 48C. Fuel-efficient fleet
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H55693F745094475ABA5242B9A481AF97"><enum>(d)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply to periods
after December 31, 2006, in taxable years ending after such date, under rules
similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as
in effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990).</text>
</subsection></section><section id="H468DBD0FAB454DA9B64238FD6568CC2C"><enum>210.</enum><header>Reducing
incentives to guzzle gas</header>
<subsection id="H6917CD68C6D8468EB505929CF0D1FF1"><enum>(a)</enum><header>Inclusion of
Heavy Vehicles in Limitation on Depreciation of Certain Luxury
Automobiles</header>
<paragraph id="H1F7DE50812DD4BD58F63EE54A8247F7F"><enum>(1)</enum><header>In
general</header><text>Section 280F(d)(5)(A) of the Internal Revenue Code of
1986 (defining passenger automobile) is amended—</text>
<subparagraph id="HB9D3D29AB5CA4229AB38A1F3D3EC0405"><enum>(A)</enum><text>by striking clause
(ii) and inserting the following new clause:</text>
<quoted-block id="HC6F0543E806A42F4968B6562EF99BCAD" style="OLC">
<clause id="H21A72BA66C5E46D8A9683DF38F6CDB64"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="HED77949294C147C8872347D046BF9819"><enum>(I)</enum><text>which is rated at 6,000
pounds unloaded gross vehicle weight or less, or</text>
</subclause><subclause id="H72E6819D82C34C13001DDD22D586B3F1" indent="up1"><enum>(II)</enum><text>which is rated at more than 6,000 pounds
but not more than 14,000 pounds gross vehicle
weight.</text>
</subclause></clause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H0A6216B17A8F44E28B6FA8317F14BFF2"><enum>(B)</enum><text>by striking
<quote>clause (ii)</quote> in the second sentence and inserting <quote>clause
(ii)(I)</quote>.</text>
</subparagraph></paragraph><paragraph id="H2DDB122805174935AB51C0C9AF888DFE"><enum>(2)</enum><header>Exception for
vehicles used in farming business</header><text>Section 280F(d)(5)(B) of such
Code (relating to exception for certain vehicles) is amended by striking
<quote>and</quote> at the end of clause (ii), by redesignating clause (iii) as
clause (iv), and by inserting after clause (ii) the following new
clause:</text>
<quoted-block id="H4AA019C1B274422B8F00A7383EB1E0A4" style="OLC">
<clause id="HCCAF793949C34BF19FDA300087684C1"><enum>(iii)</enum><text>any vehicle used
in a farming business (as defined in section 263A(e)(4),
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD98A02D62B1642C79D36909721C028E"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
property placed in service after the date of the enactment of this Act.</text>
</paragraph></subsection><subsection id="H1D24F2A572FB4555AE44ED42C58794BA"><enum>(b)</enum><header>Updated
Depreciation Deduction Limits</header>
<paragraph id="H2CC2E5E258014F1DA495D86F812557CB"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 280F(a)(1) of the Internal
Revenue Code of 1986 (relating to limitation on amount of depreciation for
luxury automobiles) is amended to read as follows:</text>
<quoted-block id="H66B12E8A286A41E282E6E9009152E26D" style="OLC">
<subparagraph id="H2FF0EAEFA1724EEDA9F4F88CAB9009C"><enum>(I)</enum><header>Limitation</header><text>The
amount of the depreciation deduction for any taxable year shall not exceed for
any passenger automobile—</text>
<clause id="H65DC74ED52304EB597B062D1608BE91E"><enum>(i)</enum><text>for the 1st
taxable year in the recovery period—</text>
<subclause id="H1FE73223D2B04D049859CD7E90890004"><enum>(I)</enum><text>described in
subsection (d)(5)(A)(ii)(I), $4,000,</text>
</subclause><subclause id="H343719964124478CBEDDA800B6522E70"><enum>(II)</enum><text>described in the
second sentence of subsection (d)(5)(A), $5,000, and</text>
</subclause><subclause id="H7A231D06EC4E40E5B700AFBBADFBF7D3"><enum>(III)</enum><text>described in
subsection (d)(5)(A)(ii)(II), $6,000,</text>
</subclause></clause><clause id="HB47B4A97B6854D3693D7A29E8540A43"><enum>(ii)</enum><text>for the 2nd
taxable year in the recovery period—</text>
<subclause id="HE5DE6435E69348C4929F337BD53BAAD6"><enum>(I)</enum><text>described in
subsection (d)(5)(A)(ii)(I), $6,400,</text>
</subclause><subclause id="H99C6F8A75EC340D594394CC058955BF7"><enum>(II)</enum><text>described in the
second sentence of subsection (d)(5)(A), $8,000, and</text>
</subclause><subclause id="H96A6686A55CA458AB2F07D2300474B80"><enum>(III)</enum><text>described in
subsection (d)(5)(A)(ii)(II), $9,600,</text>
</subclause></clause><clause id="H0BF11980D6D24DABAC4B8D4287DB1FB1"><enum>(iii)</enum><text>for the 3rd
taxable year in the recovery period—</text>
<subclause id="H7003149FBA9B462AA2B89995B16344C5"><enum>(I)</enum><text>described in
subsection (d)(5)(A)(ii)(I), $3,850,</text>
</subclause><subclause id="HB02A4918813B4F1DAF47EEE96CBF2E9E"><enum>(II)</enum><text>described in the
second sentence of subsection (d)(5)(A), $4,800, and</text>
</subclause><subclause id="H28416F6AB227471F802753B917F984F9"><enum>(III)</enum><text>described in
subsection (d)(5)(A)(ii)(II), $5,775, and</text>
</subclause></clause><clause id="HC16679C663674435ACBFB1A08A2636F"><enum>(iv)</enum><text>for each
succeeding taxable year in the recovery period—</text>
<subclause id="H0940995B891541B6A2E44D7B71227521"><enum>(I)</enum><text>described in
subsection (d)(5)(A)(ii)(I), $2,325,</text>
</subclause><subclause id="H0F5F561FEC734E2999646F4D3EFC60DC"><enum>(II)</enum><text>described in the
second sentence of subsection (d)(5)(A), $2,900, and</text>
</subclause><subclause id="HB8B46303EAE349F582E0B954B24D2CAC"><enum>(III)</enum><text>described in
subsection (d)(5)(A)(ii)(II),
$3,475.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HACE3B7A144BE4A98809952EBFF4429BB"><enum>(2)</enum><header>Years after
recovery period</header><text>Section 280F(a)(1)(B)(ii) of such Code is amended
to read as follows:</text>
<quoted-block id="H8E700E9CAC384C0B994491B31360E28C" style="OLC">
<clause id="HEA474177C9AD4417B2E57EFF7824A33B"><enum>(ii)</enum><header>Limitation</header><text>The
amount treated as an expense under clause (i) for any taxable year shall not
exceed for any passenger automobile—</text>
<subclause id="HABFF82FD16A5495692B0D9451B7D18C8"><enum>(I)</enum><text>described in
subsection (d)(5)(A)(ii)(I), $2,325,</text>
</subclause><subclause id="H1FE9BB6779BE4AD489CFED22EEFDF035"><enum>(II)</enum><text>described in the
second sentence of subsection (d)(5)(A), $2,900, and</text>
</subclause><subclause id="HB98B2AFD3CB64C51ACB6F03C4B16986F"><enum>(III)</enum><text>described in
subsection (d)(5)(A)(ii)(II),
$3,475.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HCC1FF0483B774D69AF5E008D96307900"><enum>(3)</enum><header>Inflation
adjustment</header><text>Section 280F(d)(7) of such Code (relating to
automobile price inflation adjustment) is amended—</text>
<subparagraph id="H28415E43EDB641BF99375DB47C87FA9C"><enum>(A)</enum><text>by striking
<quote>after 1988</quote> in subparagraph (A) and inserting <quote>after
2006</quote>, and</text>
</subparagraph><subparagraph id="HE59E958187314EB29EFDF7ECCB18676"><enum>(B)</enum><text>by striking
subparagraph (B) and inserting the following new subparagraph:</text>
<quoted-block id="HE9D8607B08B64EE9A48DD0C500C21271" style="OLC">
<subparagraph id="H51359BF4C43848DBB651CF6C26B8BF00"><enum>(B)</enum><header>Automobile price
inflation adjustment</header><text>For purposes of this paragraph—</text>
<clause id="H9D37341AAA094D4C87C9C201B1B11CF3"><enum>(i)</enum><header>In
general</header><text>The automobile price inflation adjustment for any
calendar year is the percentage (if any) by which—</text>
<subclause id="HA7BF042DF94249588BADD37173012475"><enum>(I)</enum><text>the average wage
index for the preceding calendar year, exceeds</text>
</subclause><subclause id="H80DB345D99EA488C820418FDFFE595FA"><enum>(II)</enum><text>the average wage
index for 2005.</text>
</subclause></clause><clause id="H080A163F94204E66B3B9CE70941EB648"><enum>(ii)</enum><header>Average wage
index</header><text>The term <term>average wage index</term> means the average
wage index published by the Social Security
Administration.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H777A115853324AAAAA1DA96723E2906C"><enum>(4)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
property placed in service after the date of the enactment of this Act.</text>
</paragraph></subsection><subsection id="HB14DB45E0D864AB18243BEAC3100C068"><enum>(c)</enum><header>Expensing
Limitation for Farm Vehicles</header>
<paragraph id="H78BA91B5D8C24720875E391C52923E5B"><enum>(1)</enum><header>In
general</header><text>Paragraph (6) of section 179(b) of the Internal Revenue
Code of 1986 (relating to limitations) is amended to read as follows:</text>
<quoted-block id="H76C886437E794544AF39E428729F19AE" style="OLC">
<paragraph id="H643160C56AB74CFD8EBB21E6B65DAD25"><enum>(6)</enum><header>Limitation on
cost taken into account for farm vehicles</header><text>The cost of any vehicle
described in section 280F(d)(5)(B)(iii) for any taxable year which may be taken
into account under this section shall not exceed
$30,000.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HFCF85829CB6A41EB80138BD34511F813"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
property placed in service after the date of the enactment of this Act.</text>
</paragraph></subsection></section><section id="H256082B73FF847F6A5EE37ECFC32EBDF"><enum>211.</enum><header>Fuel Choice for
Transportation</header>
<subsection id="H801EA32F45EC40D89D6677BA4239DBD"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="HD73EDC8E1F824014A5D02869A5E2FBF8"><enum>(1)</enum><header>Alternative
fuel; alternative fuel automobile</header><text>The terms <term>alternative
fuel</term> and <term>alternative fuel automobile</term> have the meanings
given such terms in <external-xref legal-doc="usc" parsable-cite="usc/49/32901">section 32901</external-xref> of title 49, United States Code.</text>
</paragraph><paragraph id="H664DC57CA0014683861656376F65BB6E"><enum>(2)</enum><header>E<enum-in-header>85</enum-in-header></header><text>The
term <term>E85</term> means a fuel blend containing 85 percent ethanol and 15
percent gasoline by volume.</text>
</paragraph><paragraph id="HF472CF8E9E4449A2A5D7D0157DDAA0C3"><enum>(3)</enum><header>M<enum-in-header>85</enum-in-header></header><text>The
term <term>M85</term> means a fuel blend containing 85 percent methanol and 15
percent gasoline by volume.</text>
</paragraph><paragraph id="H395B2AECB1E64FC3898CF3261BB87E00"><enum>(4)</enum><header>Flexible fuel
vehicle</header><text>The term <term>flexible fuel vehicle</term> means a motor
vehicle warranted by its manufacturer to operate on any and all blends of
gasoline, E85, and M85.</text>
</paragraph><paragraph id="HCABFB553B4B04FFD98C44433001C3C00"><enum>(5)</enum><header>Fuel
choice-enabling motor vehicle</header><text>The term <term>fuel choice-enabling
motor vehicle</term> means—</text>
<subparagraph id="H9B901157370D4020971136D799019627"><enum>(A)</enum><text>a flexible fuel
motor vehicle; or</text>
</subparagraph><subparagraph id="H02483AA559C7467FB3007F582CB2A564"><enum>(B)</enum><text>a vehicle
warranted by its manufacturer to operate on biodiesel.</text>
</subparagraph></paragraph><paragraph id="HDC604A0393874891A4148221E8A4023C"><enum>(6)</enum><header>Light-duty motor
vehicle</header><text>The term <term>light-duty motor vehicle</term> means, as
defined in regulations promulgated by the Administrator of the Environmental
Protection Agency in effect on the date of enactment of this Act—</text>
<subparagraph id="H8788761793504BE29DA0EEA478256990"><enum>(A)</enum><text>a light-duty
truck; or</text>
</subparagraph><subparagraph id="HFC08555C226B4501B8AA02F80DEE700"><enum>(B)</enum><text>a light-duty
vehicle.</text>
</subparagraph></paragraph></subsection><subsection id="H96D898F012FE486CA6BB6F68AC87A3C8"><enum>(b)</enum><header>Fuel Choice for
Transportation</header>
<paragraph id="H51AD70F7CFE94D00BF49D2CCE2C167C"><enum>(1)</enum><header>Rulemaking</header><text>Not
later than 1 year after the date of enactment of this Act, the Secretary of
Transportation shall issue regulations to carry out the provisions of this
subsection.</text>
</paragraph><paragraph id="H38BA64EE7BAB45E0B5CB03015F50F0E2"><enum>(2)</enum><header>Schedule</header><text>Not
less than 50 percent of each light-duty motor vehicles manufacturer’s annual
production of passenger cars manufactured on and after January 1, 2012, and
before January 1, 2013, and no less than 80 percent of each manufacturer’s
production of passenger cars manufactured on and after January 1, 2013 shall be
fuel choice enabling motor vehicles or alternative fuel automobiles.</text>
</paragraph><paragraph id="HD53F95A1F5C04B72B5E5A0861535948"><enum>(3)</enum><header>Temporary
exemption from requirements</header><text>Upon application by a manufacturer,
in such manner and containing such information as the Secretary shall prescribe
in the regulations promulgated under this section, the Secretary may at any
time, under such terms and conditions and to such extent as the Secretary deems
appropriate, temporarily exempt or renew the exemption of a motor vehicle from
the requirements of subsection (b) if the Secretary finds that there has been a
disruption in the supply of any component required for compliance with the
regulations, or a disruption in the use and installation by the manufacturer of
such component due to unavoidable events not under the control of the
manufacturer, that will prevent a manufacturer from meeting its anticipated
production volume of vehicles that meet the requirements of this subsection.
Each application for such exemption must be filed by the manufacturer affected,
and must specify the models, lines, and types of vehicles actually affected,
although the Secretary may consolidate applications of a similar nature of 1 or
more manufacturers. Any exemption or renewal shall be conditioned upon the
manufacturer’s commitment to recall the exempted vehicles for installation of
omitted components within a reasonable time proposed by the manufacturer and
approved by the Secretary after such components become available in sufficient
quantities to satisfy both anticipated production and recall volume
requirements. Notice of each application shall be published in the Federal
Register and notice of each decision to grant or deny a temporary exemption,
and the reasons for granting or denying it, shall be published in the Federal
Register. The Secretary shall require labeling for each exempted motor vehicle
which can only be removed after recall and installation of the required
components. If a vehicle is delivered without the fuel choice capability
required in this section, the Secretary shall require that written notification
of the exemption be delivered to the dealer and first purchasers for purposes
other than resale of such exempted motor vehicle in such a manner, and
containing such information, as the Secretary deems appropriate.</text>
</paragraph></subsection></section><section id="HAE7A4D96235B4D29A616F8EC24005400"><enum>212.</enum><header>Flexible fuel
vehicle economy calculations</header>
<subsection id="HF7ED2887A0B54FE38FAA161DA559143B"><enum>(a)</enum><header>In
General</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32905">Section 32905</external-xref> of title 49, United States Code, is
amended—</text>
<paragraph id="HF85CCA2BC82A46E9A13F85335F884184"><enum>(1)</enum><text>in subsections (b)
and (d)—</text>
<subparagraph id="H4D927778E7A44ADEB5501DB8D2990383"><enum>(A)</enum><text>by amending
paragraph (1) of each subsection to read as follows:</text>
<quoted-block id="H6242FD6ACBCF48F3B5563456E5EF4433" style="OLC">
<paragraph id="H27E8907E637C4D68AC57A1FC8DFBF50"><enum>(1)</enum><text>the number
determined by—</text>
<subparagraph id="H2180268455B24B43ABF230F74443F54D"><enum>(A)</enum><text>subtracting from
1.0 the alternative fuel use factor for the model; and</text>
</subparagraph><subparagraph id="HA6454BF48D9B4113A1F6DF653C9D6773"><enum>(B)</enum><text>dividing the
difference calculated under subparagraph (A) by the fuel economy measured under
section 32904(c) when operating the model on gasoline or diesel fuel;
and</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HB90C17C8DB0F456B80C96068286E70AC"><enum>(B)</enum><text>by amending
paragraph (2) of each subsection to read as follows:</text>
<quoted-block id="H38C2A4DF821D4A62B5F5918993A318CB" style="OLC">
<paragraph id="HF888809F818C4B5FB171AAE8EBF37741"><enum>(2)</enum><text>the number
determined by dividing the alternative fuel use factor for the model by the
fuel economy measured under subsection (a) when operating the model on
alternative fuel.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HC83E25543A5B42E6BD40B345CB7DAEE"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block id="H4855D2FC478C402AA8DABA09EC8FB59F" style="OLC">
<subsection id="H10D425B8D91345A0AED07F519B7105E"><enum>(h)</enum><header>Determination of
Alternative Fuel Use Factor</header>
<paragraph id="H740E1BA7D2C14F36A8B29B70B7646D01"><enum>(1)</enum><text>For purposes of
subsections (b) and (d), the term <term>alternative fuel use factor</term>
means, for a model of automobile, the factor determined by the Administrator
under this subsection.</text>
</paragraph><paragraph id="HC56BB698E9EC465AA633DE8504007FA0"><enum>(2)</enum><text>At the beginning
of each calendar year, the Secretary of Transportation shall estimate, by
model, the aggregate amount of fuel and the aggregate amount of alternative
fuel used to operate all dual fuel automobiles during the most recent 12-month
period.</text>
</paragraph><paragraph id="H05908C7EF71E495E8D66B4E964F5913D"><enum>(3)</enum><text>The Administrator
shall determine, by regulation, the alternative fuel use factor for each model
of dual fuel automobile as the fraction that represents, on an energy
equivalent basis, the ratio that the amount of alternative fuel determined
under paragraph (2) bears to the amount of fuel determined under paragraph
(2).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H85862F840813453DB985E37EE6923517"><enum>(b)</enum><header>Effective
Date</header><text>The amendments made by this section shall take effect on
January 1, 2008.</text>
</subsection><subsection id="HA14366802C994587B37F6771F417C41"><enum>(c)</enum><header>Applicability of
Existing Standards</header><text>The amendments made by this section shall not
affect the application of <external-xref legal-doc="usc" parsable-cite="usc/49/32901">section 32901</external-xref> of title 49, United States Code, to
automobiles manufactured before model year 2008.</text>
</subsection></section><enum>III</enum><header>FUEL CHOICES FOR
THE 21st CENTURY</header>
<section id="HC313D058C0C9425CAD2217F314FFE236"><enum>301.</enum><header>Fuel Choice
action plan</header>
<subsection id="HB20CE4BC96A141A3BE5D04D0F072C442"><enum>(a)</enum><header>Action
Plan</header><text>Not later than 1 year after the date of enactment of this
Act, the Secretary of Energy shall transmit to the Congress an action plan
detailing specific plans to ensure that—</text>
<paragraph id="H07F9071F45EB4625A2C6930627808858"><enum>(1)</enum><text>not later than
December 31, 2015, not less than 10 percent of the Nation’s total ground
transportation fuel demand can be supplied by fuels derived from sources other
than oil; and</text>
</paragraph><paragraph id="H6AF8314892074175001DDD3DF2BD7F8"><enum>(2)</enum><text>not later than
December 31, 2025, not less than 20 percent of the Nation’s total ground
transportation fuel demand can be supplied by fuels derived from sources other
than oil.</text>
</paragraph></subsection><subsection id="H612C80F825E9404398B02DDC304509C8"><enum>(b)</enum><header>Fuels</header><text>The
action plan may include plans for the use of fuels such as ethanol (derived
from agricultural products, cellulosic bioproducts, or waste products),
methanol, alternative diesel fuels, hydrogen, and electricity. The plan shall
seek to the fullest extent practicable to meet the following goals:</text>
<paragraph id="HDE278CA7FA4F4B8D84AB1D21082D12C4"><enum>(1)</enum><text>Not less than 50
percent of the fuels will be derived from renewable resources.</text>
</paragraph><paragraph id="H646E1CB552874BB1B99290E6F900D3F0"><enum>(2)</enum><text>Not less than 50
percent of the fuels shall be produced from domestic resources.</text>
</paragraph></subsection><subsection id="HD2A340E8C21E442BB8FEF399F1A00962"><enum>(c)</enum><header>Renewable
content in transportation fuels</header><text>Section 211(o) of the Clean Air
Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)</external-xref>) is amended—</text>
<paragraph id="HD1C54C80188D4DC8A4A2CEB9C523D4AC"><enum>(1)</enum><text>in paragraph
(2)(B)—</text>
<subparagraph id="H8181F476129D49E4A7C39EDD6227B460"><enum>(A)</enum><text>in clause
(i)—</text>
<clause id="HA8DFA688BA2043ADBEC1B263B351512F"><enum>(i)</enum><text>by
striking <quote><header-in-text level="clause" style="OLC">2012</header-in-text></quote> and inserting <quote><header-in-text level="clause" style="OLC">2015</header-in-text></quote> in the heading;</text>
</clause><clause id="H7A65CB8667224A558613711428910097"><enum>(ii)</enum><text>by
striking <quote>2012</quote> and inserting <quote>2015</quote>; and</text>
</clause><clause id="H031A8E184DA747759D823FDC9AC29DC"><enum>(iii)</enum><text>by
amending the table to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA5A90D47755A497C9DA9682D98FA7400" style="OLC">
<table align-to-level="section" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" subformat="S6211" table-type="subformat-2-Flush-Right-Boxhead-Fig">
<tgroup cols="2"><colspec coldef="txt" colname="col1" colsep="0" colwidth="275" min-data-value="0"></colspec><colspec coldef="txt" colname="col2" colsep="0" colwidth="80" min-data-value="0"></colspec>
<thead>
<row><entry align="left" colname="I49" rowsep="0"><bold></bold></entry><entry align="right" colname="I50" rowsep="0"><bold>Applicable volume of renewable fuel</bold></entry>
</row>
<row><entry align="left" colname="I49" rowsep="0"><bold>Calendar
year</bold></entry><entry align="right" colname="I50" rowsep="0"><bold>(in
billions of gallons)</bold></entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2006</entry><entry align="right" colname="I07" rowsep="0">4.0</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2007</entry><entry align="right" colname="I07" rowsep="0">4.7</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2008</entry><entry align="right" colname="I07" rowsep="0">5.4</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2009</entry><entry align="right" colname="I07" rowsep="0">6.1</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2010</entry><entry align="right" colname="I07" rowsep="0">6.8</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2011</entry><entry align="right" colname="I07" rowsep="0">8.0</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2012</entry><entry align="right" colname="I07" rowsep="0">9.0</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="I07" rowsep="0">11.0</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2014</entry><entry align="right" colname="I07" rowsep="0">13.0</entry>
</row>
<row><entry align="left" colname="I15" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="I07" rowsep="0">15.0</entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H842507E910EA48AA8571388BAA15A8E8"><enum>(B)</enum><text>in clause
(ii)—</text>
<clause id="H7A2C71CC35704429A1CB545F32005EBF"><enum>(i)</enum><text>by
striking <quote><header-in-text level="clause" style="OLC">2013</header-in-text></quote> and inserting <quote><header-in-text level="clause" style="OLC">2016</header-in-text></quote> in the heading;</text>
</clause><clause id="HF9F3F64A859A4758B600E669B415379C"><enum>(ii)</enum><text>by
striking <quote>2013</quote> and inserting <quote>2016</quote>; and</text>
</clause><clause id="HFB8782C582194C51AE296053D3341894"><enum>(iii)</enum><text>by
striking <quote>2012</quote> and inserting <quote>2015</quote>;</text>
</clause></subparagraph><subparagraph id="HC1122129B30C445DB9E4B8EDA0F6347F"><enum>(C)</enum><text>in clause (iii),
by striking <quote>2013</quote> and inserting <quote>2016</quote>; and</text>
</subparagraph><subparagraph id="HD8C6DB682C474A4A9700864F9500F3E3"><enum>(D)</enum><text>in clause
(iv)—</text>
<clause id="HB5BF79198DF44150A6498837C475CD6C"><enum>(i)</enum><text>by
striking <quote>2013</quote> and inserting <quote>2016</quote>; and</text>
</clause><clause id="HB33EACC86C8A4855ACF4E798FDF367BD"><enum>(ii)</enum><text>by
striking <quote>2012</quote> and inserting <quote>2015</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="H0C15B445B2C84030A0D4917CE2B3DD8C"><enum>(2)</enum><text>in paragraph
(3)(A), by striking <quote>2011</quote> and inserting
<quote>2014</quote>;</text>
</paragraph><paragraph id="HC710000C65BD4C3C91EAC31224CBF327"><enum>(3)</enum><text>in paragraph
(3)(B)(i), by striking <quote>2012</quote> and inserting <quote>2015</quote>;
and</text>
</paragraph><paragraph id="HEA836E9AB8D3434D8967A3563DD52BD2"><enum>(4)</enum><text>in paragraph
(6)(A), by striking <quote>2012</quote> and inserting
<quote>2015</quote>.</text>
</paragraph></subsection></section><section id="HE42AEEF3ED804255ABD4C9F065B52936"><enum>302.</enum><header>Ethanol action
plan</header><text display-inline="no-display-inline">The Secretary of Energy
shall complete an action plan to be delivered to Congress not later than 1 year
after the date of enactment of this Act detailing specific plans to achieve a
nationwide inclusion of not less than 10 percent ethanol in the ground
transportation fuel supply by December 31, 2015. The plan shall seek to the
fullest extent practicable to require that not less than 75 percent of the
total ethanol content be produced from renewable, domestic resources.</text>
</section><section id="H4F4BCF1D694741B69722D644FCB0D47"><enum>303.</enum><header>Fuel neutrality
for alternative fuel vehicle refueling property credit</header>
<subsection id="H6378D3E173C5487C8B487D5E8953EDC7"><enum>(a)</enum><header>Eligibility for
infrastructure credit</header><text display-inline="yes-display-inline">Section
30C(c)(1) of the Internal Revenue Code of 1986 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H27755FF389E54EE5ADEA0C8DA4E2994" style="OLC">
<paragraph id="HBC760CF6C0AE40DC89C2CE6CCE7C01A2"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the term
<quote>qualified alternative fuel vehicle refueling property</quote> has the
meaning given to such term by section 179A(d), but only with respect to any
alternative fuel (as defined in section 301 of the Energy Policy Act of 1992
(<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211</external-xref>) including Section 1346 of the Energy Policy Act of
2005).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H12652D402F7240A480E36B07C2A634A5"><enum>(b)</enum><header>Duration of
infrastructure credit</header><text>Section 30C(g) such Code is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="H2B65CB039E204AD7A6FE268DE055CC76" style="OLC">
<subsection id="HFA91E1C1C3F445F2A3F1584D7D8D2F1B"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply to property placed in service after December 31,
2014.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4F2628F146FC48458882F229DD8067A0"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after December 31, 2008.</text>
</subsection></section><section id="H9348064892044CE8B94FEA73C1CAC21E"><enum>304.</enum><header>Alternative
fuel vehicle refueling property</header>
<subsection id="HA4492501F2344FF1A1B63F99F276D5C8"><enum>(a)</enum><header>Increase in
Credit</header>
<paragraph id="HE9DF3CE0317440C3A2F626BC5187CB19"><enum>(1)</enum><header>In
general</header><text>Subsection (a) of section 30C of the Internal Revenue
Code of 1986 is amended by striking <quote>30 percent</quote> and inserting
<quote>50 percent</quote>.</text>
</paragraph><paragraph id="H0063E3278FED4993A1F92000FFAED75B"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
property placed in service after December 31, 2006, in taxable years ending
after such date.</text>
</paragraph></subsection><subsection id="H146D1BF2AD584F63931743231E5D54F6"><enum>(b)</enum><header>Alternative Fuel
Retail Outlets</header>
<paragraph id="HF5B8CCAFEF1245F081FE633DBBE13C89"><enum>(1)</enum><header>Owner or
lessor</header><text>For purposes of this subsection, the term <term>owner or
lessor</term> means—</text>
<subparagraph id="H87AE586EB36842AA9F5F6F8B82696B2F"><enum>(A)</enum><text>a franchisor who
owns, leases, or controls a retail gasoline outlet at which the franchisee is
authorized or permitted, under the franchise agreement, to sell alternative
fuel; and</text>
</subparagraph><subparagraph id="H02AF7F6101E2472FAA4B9DFBDF5EB600"><enum>(B)</enum><text>a refiner or
distributor who owns, leases, or controls a retail gasoline outlet.</text>
</subparagraph></paragraph><paragraph id="H32BB0911A32748D7B6A95B5F4CFB008D"><enum>(2)</enum><header>Requirement</header><text>Beginning
in the year in which 10 percent or more of the registered vehicles in a county
are capable of using a designated alternative fuel, each owner or lessor of a
retail gasoline outlet with 10 or more vehicle fuel pumps in that county shall
offer such designated alternative fuel at not less than 10 percent of such
pumps.</text>
</paragraph><paragraph id="HDF7B5CF2C11E42188D718EDFE5BF14EF"><enum>(3)</enum><header>Compliance</header><text>An
owner or lessor is in compliance with the requirement under paragraph (2) if
the owner or lessor—</text>
<subparagraph id="H5010212BDF7E4CD39B2E4F60DBF0E38"><enum>(A)</enum><text>provides
alternative fuel at vehicle pumps owned or controlled by the owner or lessor;
or</text>
</subparagraph><subparagraph id="HFF500302EAD74E419B2E76AE004261EE"><enum>(B)</enum><text>purchases credits
from another owner or lessor who operates more than the minimum required number
of alternative fuel pumps.</text>
</subparagraph></paragraph><paragraph id="H92A55D94BB8740E29FEB0068FE67241"><enum>(4)</enum><header>Projections</header><text>Not
later than July 1st of each year, the Secretary of Energy shall—</text>
<subparagraph id="HAB9119F35211425F9116FC56D915BD00"><enum>(A)</enum><text>identify the
counties in which at least 10 percent of the registered vehicles are expected
to be capable of using a designated alternative fuel within the following
18-month period; and</text>
</subparagraph><subparagraph id="HD437EE51B91247CE88AE7872993F8F2C"><enum>(B)</enum><text>notify owners and
lessors with retail gasoline outlets in the counties identified under
subparagraph (A) of the alternative fuel pump requirement under this
subsection.</text>
</subparagraph></paragraph><paragraph id="HA239DD7DB53241928237FA2B29A28C20"><enum>(5)</enum><header>Rulemaking</header><text>The
Secretary of Energy shall issue regulations to carry out the provisions of this
subsection.</text>
</paragraph></subsection></section><section id="H656EB1A5BDB64E7998B6D1EC43CF9ECB"><enum>305.</enum><header>Use of CAFÉ
penalties to build alternative fueling infrastructure</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/32912">Section 32912</external-xref> of title 49, United States
Code, is amended by adding at the end the following:</text>
<quoted-block id="H08EA3E84D51B4ABEA1107EBB3683FB79" style="OLC">
<subsection id="H152AA87BFD044B31BB45C368C179E167"><enum>(e)</enum><header>Alternative
Fueling Infrastructure Trust Fund</header><paragraph commented="no" display-inline="yes-display-inline" id="H4E81FF283C7D41918D467E34CCA36EBB"><enum>(1)</enum><text>There is established in
the Treasury of the United States a trust fund, to be known as the Alternative
Fueling Infrastructure Trust Fund, consisting of such amounts as are deposited
into the Trust Fund under paragraph (2) and any interest earned on investment
of amounts in the Trust Fund.</text>
</paragraph><paragraph id="H1982F49AC143413FA835DAC9F869CDB6" indent="up1"><enum>(2)</enum><text>The Secretary of Transportation shall
remit 90 percent of the amount collected in civil penalties under this section
to the Trust Fund.</text>
</paragraph><paragraph id="H96F121CA606B4DD4AAFD67EDC6CF8CD7" indent="up1"><enum>(3)</enum><text>The Secretary of Energy may obligate
such sums as are available in the Trust Fund for the Clean Cities grant program
to increase the number of locations at which consumers may purchase fuel
containing ethanol, biodiesel, and other alternative
fuels.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HFF978870E3CF48E98B6540F2D6DACED9"><enum>306.</enum><header>Cellulosic
biomass fuel</header><text display-inline="no-display-inline">Section
211(o)(2)(B)(iii) of the <act-name parsable-cite="CAA">Clean Air Act</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(2)(B)(iii)</external-xref>) is amended to read as follows:</text>
<quoted-block act-name="Clean Air Act" id="HCCAE72B1726345FA9B9CA4E440074AA" style="OLC">
<clause id="HAD5B060DA2EC4501B9BC14382862EBA"><enum>(iii)</enum><header>Minimum
quantity derived from cellulosic biomass</header>
<subclause id="H41F80F03B55C4EF79CAA638EA4F0B86"><enum>(I)</enum><header>Calendar years
2008 through 2015</header><text>For each of calendar years 2008 through 2015,
the applicable volume referred to in clause (ii) shall contain a minimum number
of gallons that are derived from cellulosic biomass determined in accordance
with the following table:</text>
<table align-to-level="section" line-rules="no-gen" table-type="subformat">
<tgroup cols="2">
<thead>
<row><entry></entry><entry colname="I50">Applicable minimum
number of gallons derived from cellulosic biomass</entry>
</row>
<row><entry colname="I49">Calendar year:</entry><entry colname="I50">(in millions of gallons):</entry>
</row>
</thead>
<tbody>
<row><entry colname="I51">2008</entry><entry align="right" colname="I52">30.0</entry>
</row>
<row><entry colname="I51">2009</entry><entry align="right" colname="I52">45.0</entry>
</row>
<row><entry colname="I51">2010</entry><entry align="right" colname="I52">75.0</entry>
</row>
<row><entry colname="I51">2011</entry><entry align="right" colname="I52">120.0</entry>
</row>
<row><entry colname="I51">2012</entry><entry align="right" colname="I52">180.0</entry>
</row>
<row><entry colname="I51">2013</entry><entry align="right" colname="I52">250.0</entry>
</row>
<row><entry colname="I51">2014</entry><entry align="right" colname="I52">500.0</entry>
</row>
<row><entry colname="I51">2015</entry><entry align="right" colname="I52">1,000.0.</entry>
</row>
</tbody>
</tgroup>
</table>
</subclause><subclause id="HB5313D73A1994B9095162C28FD35EB84"><enum>(II)</enum><header>Calendar year
2016 and thereafter</header><text>For calendar year 2016 and each calendar year
thereafter, the applicable volume referred to in clause (ii) shall contain a
minimum number of gallons that are derived from cellulosic biomass this is
equal to the product obtained by multiplying—</text>
<item id="H633A75D9142C48C3852B3800D3305830"><enum>(aa)</enum><text>the
applicable volume referred to in clause (ii) for the calendar year; and</text>
</item><item id="H3F9C6A0452FC4A6DB3F24C6445BD7EA5"><enum>(bb)</enum><text>the
ratio that 1,000,000,000 gallons of cellulosic biomass bears to the applicable
volume referred to in clause (ii) for calendar year 2015.</text>
</item></subclause><subclause id="H8FB13EF81795468581AE0468EBF5B100"><enum>(III)</enum><header>Ratio</header><text>For
calendar year 2008 and each calendar year thereafter, the 2.5-to-1 ratio
referred to in paragraph (4) shall not
apply.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB320E70200004D758B00C12F8EDC7396"><enum>307.</enum><header>Production
incentives for cellulosic biofuels</header><text display-inline="no-display-inline">Section 942(f) of the Energy Policy Act of
2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16251">42 U.S.C. 16251(f)</external-xref>) is amended by striking <quote>$250,000,000</quote>
and inserting <quote>$200,000,000 for each of fiscal years 2007 through
2011</quote>.</text>
</section><section id="H298C308BA22748C2A01F542859F976E9"><enum>308.</enum><header>Transit-Oriented
Development Corridors</header>
<subsection id="HAAA37CBBCC984E628032A75B2500BB28"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H6125215F232C4324B4D8B49017601357"><enum>(1)</enum><header>Transit-oriented
development corridor</header><text>The term <term>Transit-Oriented Development
Corridor</term> or <term>TODC</term> means a geographic area designated by the
Secretary under subsection (b).</text>
</paragraph><paragraph id="H200162062FC241F59DA132C057BA81F5"><enum>(2)</enum><header>Other
terms</header><text>The terms <term>fixed guide way</term>, <term>local
governmental authority</term>, <term>mass transportation</term>,
<term>Secretary</term>, <term>State</term>, and <term>urbanized area</term>
have the meanings given the terms in <external-xref legal-doc="usc" parsable-cite="usc/49/5302">section 5302</external-xref> of title 49, United States
Code.</text>
</paragraph></subsection><subsection id="H55EDA6FD9D4245BF90942706434FED3B"><enum>(b)</enum><header>Transit-Oriented
Development Corridors</header>
<paragraph id="HFF509B0239644517B3008D232BCE5E9"><enum>(1)</enum><header>In
general</header><text>The Secretary shall develop and carry out a program to
designate geographic areas in urbanized areas as Transit-Oriented Development
Corridors.</text>
</paragraph><paragraph id="H2AB43FB40B864372AFF5557B86006CF1"><enum>(2)</enum><header>Criteria</header><text>An
area designated as a TODC under paragraph (1) shall include rights-of-way for
fixed guide way mass transportation facilities (including commercial
development of facilities that have a physical and functional connection with
each facility).</text>
</paragraph><paragraph id="H6CDA417396224A8D8D8BD51015B9C3AF"><enum>(3)</enum><header>Number of
todcs</header><text>In consultation with State transportation departments and
metropolitan planning organizations, the Secretary shall designate—</text>
<subparagraph id="H1370160E0ADF4121A600D219F2D488F"><enum>(A)</enum><text>not fewer than 10
TODCs by December 31, 2015; and</text>
</subparagraph><subparagraph id="HF18AF3A20A19448EB3F3E5E3FAD7BBB"><enum>(B)</enum><text>not fewer than 20
TODCs by December 31, 2025.</text>
</subparagraph></paragraph><paragraph id="H35EC13E9BF604DA99CEF33E090333F87"><enum>(4)</enum><header>Transit
grants</header>
<subparagraph id="HBA908F3442814F3980DD57265E02E21E"><enum>(A)</enum><header>In
general</header><text>The Secretary make grants to eligible states and local
governmental authorities to pay the Federal share of the cost of designating
geographic areas in urbanized areas as TODCs.</text>
</subparagraph><subparagraph id="HFFD5E51EA85748DDA7C7B6A6647BAE61"><enum>(B)</enum><header>Application</header><text>Each
eligible State or local governmental authority that desires to receive a grant
under this paragraph shall submit an application to the Secretary, at such
time, in such manner, and accompanied by such additional information as the
Secretary may reasonably require.</text>
</subparagraph><subparagraph id="HDA2D539BBA0945AC81419968281D0120"><enum>(C)</enum><header>Labor
standards</header><text>Subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States
Code shall apply to projects that receive funding under this section.</text>
</subparagraph><subparagraph id="HA7608C920812479F85D1634C936CFF"><enum>(D)</enum><header>Federal
share</header><text>The Federal share of the cost of a project under this
subsection shall be 50 percent.</text>
</subparagraph></paragraph></subsection><subsection id="HE3888D10F358476AAA1193B672C0C9B0"><enum>(c)</enum><header>TODC Research
and Development</header><text>To support effective deployment of grants and
incentives under this section, the Secretary shall establish a TODC research
and development program to conduct research on the best practices and
performance criteria for TODCs.</text>
</subsection><subsection id="HD4DF59CEA40E44EAA236F71F5CE124F7"><enum>(d)</enum><header>Authorization of
Appropriations</header><text>There is authorized to be appropriated to carry
out this section $50,000,000 for each of fiscal years 2008 through 2012.</text>
</subsection></section><section id="H9A4CCE3293894CF18B00D7507CC335F"><enum>309.</enum><header>Saving oil by
reducing miles-of-travel: Pilot projects</header>
<subsection id="HAF2AA859344341029B58F46836670264"><enum>(a)</enum><header>In
General</header><text>The Secretary of Transportation (in this section referred
to as the <quote>Secretary</quote>) shall develop and implement pilot projects
the purpose of which is to reduce vehicle miles traveled.</text>
</subsection><subsection id="HB8477538811F4ED3867E3485423CA672"><enum>(b)</enum><header>Highway
Congestion Tolling Evaluation Study</header><text>The Secretary shall carry out
evaluation projects in no less than 6 metropolitan areas selected by the
Secretary to determine how technology can best be applied to assess
mileage-based road user charges on major highways at peak-commuting times for
the purposes of—</text>
<paragraph id="H260B88299F8149EC91A5C623B2AFA49B"><enum>(1)</enum><text>reducing oil
usage;</text>
</paragraph><paragraph id="H58AF752B83C34B45968742367F310038"><enum>(2)</enum><text>lessening highway
congestion; and</text>
</paragraph><paragraph id="HA50C120B7CC040D182238F7500D68B48"><enum>(3)</enum><text>expanding travel
alternatives.</text>
</paragraph></subsection><subsection id="H7C9C1C5EDCC74B24AFAE20497149407D"><enum>(c)</enum><header>Parking Cash-Out
Evaluation Project</header>
<paragraph id="HFD7F260678F642B9841C0037A2990007"><enum>(1)</enum><header>In
general</header><text>The Secretary shall carry out a national evaluation pilot
project to assess how offering commuters the option to receive the cash value
of their workplace parking place, if any, instead of free parking can—</text>
<subparagraph id="HE305925D377E41AB926B05E194B8CBA0"><enum>(A)</enum><text>reduce oil
usage;</text>
</subparagraph><subparagraph id="HA276327F99C14F97B51E89472B364BF3"><enum>(B)</enum><text>lessen highway
congestion; and</text>
</subparagraph><subparagraph id="HA5779C576C914514B4135021F2D5D17C"><enum>(C)</enum><text>expand travel
alternatives.</text>
</subparagraph></paragraph><paragraph id="H6007296B43AB4903A06CF199E17DE90"><enum>(2)</enum><header>Employer
requirement</header><text>Under the evaluation pilot project, any employer that
is participating in the pilot project and offers free-of-charge commuter
parking to the employees of the employer must also offer a cashout alternative
to employees.</text>
</paragraph></subsection><subsection id="H72C8C7168846485C80BCAE140016DC0"><enum>(d)</enum><header>Report</header><text>The
Secretary shall submit to Congress every 2 years after the date of the
enactment of this Act a report on the progress and results of pilot projects
under this section. The report shall provide an analysis and summary of project
implementation, changes in oil usage and travel demand, and other matters as
deemed appropriate by the Secretary.</text>
</subsection><subsection id="H73596872858246A38F4EC2EFA8136CD0"><enum>(e)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated to carry
out subsection (b) $4,000,000, and to carry out subsection (c) $4,000,000, for
each of fiscal years 2008 through 2016.</text>
</subsection></section><section id="HD5313507DBAA482898C8C2AF66DDD1B2"><enum>310.</enum><header>Saving oil by
reducing vehicle-miles-of-travel: Research and development</header>
<subsection id="HA16D2AC6CEEB4CB2AC8CED7BFE8365AE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of
Transportation shall establish a new research program the purpose of which is
to investigate the oil-savings potential and feasibility of programs which
convert fixed costs of driving to variable costs.</text>
</subsection><subsection id="HB63197E8B66341F38E3FF9018BB68B2"><enum>(b)</enum><header>Research
Program</header><text>The program’s research shall include studies of the
potential and feasibility of—</text>
<paragraph id="H377CFA57ECDC426F85E5179777FFDF23"><enum>(1)</enum><text>varying vehicle
registration fees based on vehicle-miles of travel;</text>
</paragraph><paragraph id="H927038C346D34CF189616C28A428AB3C"><enum>(2)</enum><text>varying vehicle
lease fees based on vehicle-miles of travel;</text>
</paragraph><paragraph id="H812ED1927B0C4830908600C7A21D9E80"><enum>(3)</enum><text>varying vehicle
rental rates based on vehicle-miles of travel; and</text>
</paragraph><paragraph id="H241866021DF84A5F86F0D80001A8915D"><enum>(4)</enum><text>other such costs
which could be linked to vehicle-miles of travel in order to provide incentives
to reduce driving.</text>
</paragraph></subsection><subsection id="HCBED1228D7234AE1BDB48EDF620063C6"><enum>(c)</enum><header>Report</header><text>The
Secretary shall submit to Congress and publish on the Department of
Transportation web site at least one research product per year.</text>
</subsection><subsection id="H8AEBDEEFD9ED4614B88225C10073F19F"><enum>(d)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated to carry
out this section $2,000,000 for each of fiscal years 2008 through 2017.</text>
</subsection></section><section id="H22D115AA09C84B7297A6C8CB6CE3F457"><enum>311.</enum><header>Biofuels</header>
<subsection id="HE6C5553710F848DCABF3BA7D68D45B98"><enum>(a)</enum><header>Energy Policy
Act of 2005 Amendments</header><text>The Energy Policy Act of 2005 is
amended—</text>
<paragraph id="H994B060E303B4FEFA23B7EFC4968BDA8"><enum>(1)</enum><text>in section
208(c)(2)(A) by striking <quote>be limited to sugar producers and the
production of ethanol in the States of Florida, Louisiana, Texas, and Hawaii,
divided equally among the States,</quote>;</text>
</paragraph><paragraph id="H5FC599D0EFEA4695A73DAB6FC9CD94C5"><enum>(2)</enum><text>in section
932(a)(1)(C)(ii) by striking <quote>, but not including municipal solid waste,
gas derived from the biodegradation of municipal solid waste, or paper that is
commonly recycled</quote>;</text>
</paragraph><paragraph id="H364BD8A6E30141BA863F826FF123C130"><enum>(3)</enum><text>in section
946(c)(1) by striking <quote>ethanol</quote> and inserting
<quote>transportation fuel produced from biomass</quote>;</text>
</paragraph><paragraph id="HFB239569DB7241C8AB3E91FB5E599730"><enum>(4)</enum><text>in section 1510(b)
by striking <quote>fuel ethanol</quote> and inserting <quote>transportation
fuel produced from biomass,</quote> and</text>
</paragraph><paragraph id="H268037165961465BBFB016DA30B300F3"><enum>(5)</enum><text>in section
1514(c)(1)(A) by striking <quote>biomass ethanol</quote> and inserting
<quote>transportation fuel produced from biomass</quote>.</text>
</paragraph></subsection><subsection id="HA93C9B774AF744FD9545C955701D365F"><enum>(b)</enum><header>Internal Revenue
Code of 1986 Amendment</header>
<paragraph id="H45598E0E224D4F8B8EA4A8CB00517EF6"><enum>(1)</enum><header>Amendment</header><text>Section
30C(c)(1)(A) of the Internal Revenue Code of 1986 is amended by striking
<quote>one or more of the following: ethanol, natural gas, compressed natural
gas, liquefied natural gas, liquefied petroleum gas, or hydrogen</quote> and
inserting <quote>an alternative fuel (as defined in section 301 of the Energy
Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211</external-xref>)), including section 1346 of the Energy
Policy Act of 2005</quote>.</text>
</paragraph><paragraph id="HAF3C43F71B924D7DA318626E89A95C60"><enum>(2)</enum><header>Effect</header><text>The
amendment made by paragraph (1) shall take effect as if enacted by section 1342
of the Energy Policy Act of 2005.</text>
</paragraph></subsection><subsection id="H7D77570AE69942AEAE064604B79FE282"><enum>(c)</enum><header><act-name parsable-cite="CAA">Clean Air Act</act-name> Amendments</header><text>The
<act-name parsable-cite="CAA">Clean Air Act</act-name> is amended—</text>
<paragraph id="H0AA8C097C6924477937D1D2ECE6E77C0"><enum>(1)</enum><text>in section 212 (42
U.S.C. 7546)—</text>
<subparagraph id="H29B00D0EE1E748DF8073C4DB1200C347"><enum>(A)</enum><text>by adding at the
end of subsection (a) the following new paragraph:</text>
<quoted-block id="H8A99926F45854D3CB024EE00005DAC2F" style="OLC">
<paragraph id="H53F7FFFDB99E4BD6B912A0264DC6DFD"><enum>(4)</enum><header>Biofuel</header><text>The
term <term>biofuel</term> means any transportation fuel produced from
biomass.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H3E06EF5496F147748458EBED75A2C04B"><enum>(B)</enum><text>by striking
<quote>ethanol</quote> each place it appears and inserting
<quote>biofuel</quote>; and</text>
</subparagraph></paragraph><paragraph id="H5628D6C81DF446B0B86BF66FF9082834"><enum>(2)</enum><text>in section 211(r)
(<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(r)</external-xref>) by striking <quote>ethanol</quote> each place it appears
and inserting <quote>biofuel</quote>.</text>
</paragraph></subsection></section><enum>IV</enum><header>Electricity for
Transportation</header>
<section display-inline="no-display-inline" id="HB4B9F95E36FE4C5B9E365E7B03B3A684" section-type="subsequent-section"><enum>401.</enum><header>Near-term vehicle
technology program</header>
<subsection id="H0124ECAD673C4CEAA63BC8CD5524F9FB"><enum>(a)</enum><header>Purposes</header><text>The
purposes of this section are to enhance the energy security of the United
States, reduce dependence on imported oil, improve the energy efficiency of the
transportation sector, and reduce emissions through the expansion of grid
supported mobility, through programs to—</text>
<paragraph id="HCB32CE9976F94753A39500E37BF93572"><enum>(1)</enum><text>develop, in
partnership with industry, research institutions, National Laboratories, and
institutions of higher education, projects to foster—</text>
<subparagraph id="HB7AA87CE9E29482282FD89D574BA764"><enum>(A)</enum><text>the
commercialization of electric drive vehicle technology for various sizes and
applications of vehicles, including commercialization of plug-in hybrid
electric vehicles and plug-in hybrid fuel cell vehicles;</text>
</subparagraph><subparagraph id="HFBB3A4202D6A4A0DBF077EA67C3B5D86"><enum>(B)</enum><text>growth in
employment in the United States in electric drive design and manufacturing of
components and vehicles;</text>
</subparagraph><subparagraph id="H33C61808E3FF4A2B8F2C005D576C51EF"><enum>(C)</enum><text>validation of the
potential for plug-in hybrid vehicles through fleet demonstrations and data
collection; and</text>
</subparagraph><subparagraph id="H14CAFC8609824D3EB2A8AC540038E614"><enum>(D)</enum><text>acceleration of
fuel cell commercialization through comprehensive development and
commercialization of the electric drive technology systems that are the
foundational technology of the fuel cell vehicle system;</text>
</subparagraph></paragraph><paragraph id="HEACBF00255B849F6BEBDEDC261E47E89"><enum>(2)</enum><text>make critical
public investments to help private industry, institutions of higher education,
National Laboratories, and research institutions to expand innovation,
industrial growth, and jobs in the United States through the development,
demonstration, and commercialization of a wide range of electric drive
components, systems, and vehicles using diverse electric drive transportation
technologies;</text>
</paragraph><paragraph id="HEC480271698E4A55983F9CAC9EEC8827"><enum>(3)</enum><text>optimize the
availability of the existing electric infrastructure for use in fueling light
duty transportation and other on-road and nonroad vehicles in lieu of vehicles
and equipment that use petroleum, including the more than 3,000,000 reported
units (such as electric forklifts, golf carts, and similar nonroad vehicles) in
use on the date of enactment of this Act; and</text>
</paragraph><paragraph id="H3C5B4D092F894CED911C46998750DC4E"><enum>(4)</enum><text>develop advanced
communication, metering and charging technologies necessary for the integration
of electric drive transportation technology into the smart grid of the
future.</text>
</paragraph></subsection><subsection id="H6612C37548DA424BB5895FE496439457"><enum>(b)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H352FF7A9E5B24ACAAD7818CBA9405DC6"><enum>(1)</enum><header>Administrator</header><text>The
term <quote>Administrator</quote> means the Administrator of the Environmental
Protection Agency.</text>
</paragraph><paragraph id="H649680F5DB4F4B5AAF59A114A9B48244"><enum>(2)</enum><header>Battery</header><text>The
term <quote>battery</quote> means an electrochemical energy storage device used
in an on-road or nonroad vehicle powered in whole or in part using an off-board
or on-board source of electricity.</text>
</paragraph><paragraph id="HE79EB185880242A7B8851CBAA3F13CB8"><enum>(3)</enum><header>Electric drive
transportation technology</header><text>The term <quote>electric drive
transportation technology</quote> means—</text>
<subparagraph id="H19ABBDB1DCFE44A39C28B46C3BBF1B55"><enum>(A)</enum><text>vehicles that use
an electric motor for all or part of their motive power and that may or may not
use off-board electricity, including battery electric vehicles, fuel cell
vehicles, engine dominant hybrid electric vehicles, plug-in hybrid electric
vehicles, plug-in hybrid fuel cell vehicles, and electric rail; or</text>
</subparagraph><subparagraph id="H3DBCD5965F764FDBB76542BD16EF204D"><enum>(B)</enum><text>equipment relating
to transportation or mobile sources of air pollution that use an electric motor
to replace an internal combustion engine for all or part of the work of the
equipment, including corded electric equipment linked to transportation or
mobile sources of air pollution, and electrification technologies at airports,
ports, truck stops, and material handling facilities.</text>
</subparagraph></paragraph><paragraph id="H282C7914283B44FE9467258F1D9C427F"><enum>(4)</enum><header>Engine dominant
hybrid electric vehicle</header><text>The term <quote>engine dominant hybrid
electric vehicle</quote> means an on-road or nonroad vehicle that—</text>
<subparagraph id="HB404C555380F488AAFF0091C6FA5DD3"><enum>(A)</enum><text>is propelled by an
internal combustion engine or heat engine using—</text>
<clause id="H18F64E0A63054312B928892287B1683C"><enum>(i)</enum><text>any
combustible fuel;</text>
</clause><clause id="H12E90016A9E8479786C2E874ACAF1139"><enum>(ii)</enum><text>an
on-board, rechargeable storage device; and</text>
</clause></subparagraph><subparagraph id="HFFF09947DC1248E8AE4B80101D1BE957"><enum>(B)</enum><text>has no means of
using an off-board source of electricity.</text>
</subparagraph></paragraph><paragraph id="H0A32A57C91264976A6DF6FD0DEE8B8E4"><enum>(5)</enum><header>Fuel cell
vehicle</header><text>The term <quote>fuel cell vehicle</quote> means an
on-road or nonroad vehicle that uses a fuel cell (as defined in section 3 of
the Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of
1990).</text>
</paragraph><paragraph id="H204E0D38FA164E84B04F9979CDE1ADE0"><enum>(6)</enum><header>Institution of
higher education</header><text>The term <quote>institution of higher
education</quote> has the meaning given the term in section 2 of the Energy
Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15801">42 U.S.C. 15801</external-xref>).</text>
</paragraph><paragraph id="H4A3DECA82E544651BB3DFB42B10CA9"><enum>(7)</enum><header>Nonroad
vehicle</header><text>The term <quote>nonroad vehicle</quote> means a vehicle
that is powered by a nonroad engine, as that term is defined in section 216 of
the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7550">42 U.S.C. 7550</external-xref>), or fully or partially by an electric motor
powered by a fuel cell, a battery, or an off-board source of electricity and
that is not a motor vehicle or a vehicle used solely for competition.</text>
</paragraph><paragraph id="H5B7048AACC0D4607A130B61EF3EF0ED"><enum>(8)</enum><header>Plug-in hybrid
electric vehicle</header><text>The term <quote>plug-in hybrid electric
vehicle</quote> means a light-duty, medium-duty, or heavy-duty on-road or
nonroad vehicle that is propelled by an internal combustion engine or heat
engine and/or an electric motor and energy storage system using—</text>
<subparagraph id="H3A7CA0324834422C9DE8D1D8B900ABCB"><enum>(A)</enum><text>any combustible
fuel;</text>
</subparagraph><subparagraph id="H968D7285C5CA4A6CADEE62FDF2679D"><enum>(B)</enum><text>an on-board,
rechargeable storage device; and</text>
</subparagraph><subparagraph id="H99C6832E917040F68FA429F5EDC452D"><enum>(C)</enum><text>a means of using an
off-board source of electricity to operate the vehicle in intermittent or
continuous all-electric mode.</text>
</subparagraph></paragraph><paragraph id="H929F8D81EBF44463007623B064F7A799"><enum>(9)</enum><header>Plug-in hybrid
fuel cell vehicle</header><text>The term <quote>plug-in hybrid fuel cell
vehicle</quote> means a fuel cell vehicle with an on-board, rechargeable
storage device powered by an off-board source of electricity.</text>
</paragraph><paragraph id="HEA1B19C40DB7482E9446843BF7A3D2D"><enum>(10)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of Energy.</text>
</paragraph></subsection><subsection id="H26537D76C597413D8C279048918F144B"><enum>(c)</enum><header>Electric Drive
Transportation Program</header>
<paragraph id="HE23911E9F91E440BA5F84C1891F549D"><enum>(1)</enum><header>Research and
development</header><text>The Secretary shall conduct a program of research,
development, demonstration, and commercial application for electric drive
transportation technology, including—</text>
<subparagraph id="H350EC921D1FC445B83B308167185C775"><enum>(A)</enum><text>high capacity,
high efficiency batteries that have improved battery life, energy storage
capacity and power delivery capacity when compared to technology that is in
commercial service;</text>
</subparagraph><subparagraph id="HA1CCEE16CEB44ED9B3797CE921DBCBD2"><enum>(B)</enum><text>high efficiency
on-board and off-board charging components;</text>
</subparagraph><subparagraph id="HEC957EB8F96647FD9D073BFF59436697"><enum>(C)</enum><text>high power and
energy efficient drive train systems for passenger and commercial vehicles and
for nonroad vehicles;</text>
</subparagraph><subparagraph id="HB3CF04C36AFC4083BBBB77F0A1C10058"><enum>(D)</enum><text>control system
development and power train development and integration for plug-in hybrid
electric vehicles, plug-in hybrid fuel cell vehicles, and engine dominant
hybrid electric vehicles, including—</text>
<clause id="HF447E81FCD5C4356A527D4BAEF291916"><enum>(i)</enum><text>development of
efficient cooling systems;</text>
</clause><clause id="HF957E62DE71A44C98E820390B1183C51"><enum>(ii)</enum><text>analysis and
development of control systems that minimize the emissions profile when clean
diesel engines are part of a plug-in hybrid drive system; and</text>
</clause><clause id="HC4B6DCF3667F4C259207E9C4C373D690"><enum>(iii)</enum><text>development of
different control systems that optimize for different goals, including battery
life, reduction of petroleum consumption, and greenhouse gas reduction;</text>
</clause></subparagraph><subparagraph id="HD39899773A8C42D2806946C872254B66"><enum>(E)</enum><text>nanomaterial
technology applied to both battery and fuel cell systems; and</text>
</subparagraph><subparagraph id="H664C072E13D040099B1CFF00EEE3AA3E"><enum>(F)</enum><text>smart vehicle and
grid interconnection devices and software that enable communications between
the grid of the future and electric drive vehicles</text>
</subparagraph></paragraph><paragraph id="H98B80DE55D9547CD9354A3688FAC666D"><enum>(2)</enum><header>Market
assessment and electricity usage</header><text>The Secretary, in consultation
with the Administrator and with industry, shall implement a program to—</text>
<subparagraph id="H18F76E93CD91470D9400246B6313274B"><enum>(A)</enum><text>understand and
inventory existing electric drive technologies and markets;</text>
</subparagraph><subparagraph id="H6D7C2D3C5D3F4166A3539738D39856F1"><enum>(B)</enum><text>identify and
implement methods of removing barriers for existing and emerging applications
of electric drive transportation technologies;</text>
</subparagraph><subparagraph id="H136A394AE5594FE4AC8FA9CCC6533376"><enum>(C)</enum><text>work with
utilities to develop low-cost, simple methods of utilizing off-peak electricity
or managing any on-peak electricity use;</text>
</subparagraph><subparagraph id="HB4118B9282B047AD9F4580D2009C007C"><enum>(D)</enum><text>develop systems
and processes to enable plug-in hybrid vehicles to enhance the availability of
emergency back-up power for consumers and study and demonstrate the potential
value to the grid to utilize the energy stored in the on-board storage systems
to improve the efficiency and reliability of the grid generation system;
and</text>
</subparagraph><subparagraph id="H5D72362B0C4542C3B55C6557103916E6"><enum>(E)</enum><text>work with
utilities and other interested stakeholders to study and demonstration the
linkages and implications of the introduction of plug-in hybrids and other
types of electric transportation and the production of electricity from
renewable resources.</text>
</subparagraph></paragraph><paragraph id="HBA7CE49B1BF74DD0B1E1968383E3F3DF"><enum>(3)</enum><header>Grants to
encourage off-peak electricity usage</header><text>The Secretary shall award
grants to partially fund public and private electric utility programs and
technologies that encourage owners of electric drive transportation
technologies to use off-peak electricity or have the load managed by the
utility.</text>
</paragraph><paragraph id="HFDCC9EC1736D498E00196EFD90144EE9"><enum>(4)</enum><header>Plug-in hybrid
electric vehicle and electric drive transportation testing and
certification</header>
<subparagraph id="HA8A9FCE1045A4220AA9C7BFCBA56A455"><enum>(A)</enum><header>In
general</header><text>For purposes of enabling the introduction of plug-in
hybrid electric vehicles and electric drive transportation technology into
commercial use, the Secretary shall develop, in collaboration with industry and
in consultation with the Administrator, a program to test the emissions of
criteria pollutants, energy use and the petroleum reduction potential of
light-, medium-, and heavy-duty plug-in hybrid electric vehicles and other
forms of electric drive transportation in both actual driving and test
conditions. The Secretary shall also cooperate with the Administrator in the
development of the program described in subparagraph (B) to establish
certification standards for light-, medium- and heavy-duty plug-in hybrid
electric vehicles.</text>
</subparagraph><subparagraph id="H5D4B027D38A34D079CAF27B0E6FB31BA"><enum>(B)</enum><header>Testing
program</header><text>The testing program shall consider the results of prior
testing activities of the public and private sectors, and shall utilize the
capabilities of the Department of Energy’s Field Operations Program and
Qualified Vehicle Testing Sites. Test procedures shall include consideration
of—</text>
<clause id="H3D7EF4B8DD11452DB1557E3993E8088B"><enum>(i)</enum><text>the
vehicle and fuel as a system, not just an engine;</text>
</clause><clause id="H7B3E5A0EC031457F907CCACA1100872E"><enum>(ii)</enum><text>nightly off-board
charging; and</text>
</clause><clause id="HEF7F087F5E6042C690FF2E1C91BBBEEC"><enum>(iii)</enum><text>different
engine-turn on speed control strategies.</text>
</clause></subparagraph><subparagraph id="H3411C9368DF74936BC9437A9BF28F2B5"><enum>(C)</enum><header>Certification
program</header><text>Within 6 months of the date of enactment of this section,
the Administrator shall develop a task force including vehicle manufacturers,
environmental organizations, utilities, fleet operators, research organizations
and representatives of Federal agencies, including the Department of
Transportation and the Department of Energy, to consider the establishment of
minimum certification standards for plug-in hybrid electric vehicles.</text>
</subparagraph><subparagraph id="H529D336B51A740138B111FD7007EB500"><enum>(D)</enum><header>Duties</header><text>The
task force established under subparagraph (C) shall—</text>
<clause id="H6EDC4A72600F468E00687DA701A70035"><enum>(i)</enum><text>identify critical
path issues in the establishment of a certification protocol;</text>
</clause><clause id="HA32420A678DD408F80EB5329849B4C1F"><enum>(ii)</enum><text>identify criteria
for the establishment of a plug-in hybrid certification protocol that would be
applicable to various plug-in hybrid vehicle technologies and applications and
vehicle control strategies;</text>
</clause><clause id="HBDBE0074808344E8BF81773C855DA5C1"><enum>(iii)</enum><text>evaluate test
data available from hybrid vehicle test programs and fuel economy
analysis;</text>
</clause><clause id="HFA9F732F373540D4886B7378B3EF7E82"><enum>(iv)</enum><text>work with the
Administrator to develop guidelines to permit the emissions reductions
attributable to the use of plug-in hybrid vehicles to be recognized for
purposes of State Implementation Plans; and</text>
</clause><clause id="H91AEEE4C5D3C4CB6AEEE17812136CEB9"><enum>(iv)</enum><text>recommend a
certification protocol for certifying the emissions, fuel economy and petroleum
usage of plug-in hybrid vehicles.</text>
</clause></subparagraph><subparagraph id="H7EE54B1DF108445E8E3E6C8F6EBBF33E"><enum>(E)</enum><header>Public
comment</header><text>Within 18 months of the date of enactment of this
section, the Administrator shall publish the recommended certification protocol
for public comment.</text>
</subparagraph><subparagraph id="HCCA3A5A4AC644453BE4759FE00D84E9B"><enum>(F)</enum><header>Final
protocol</header><text>Not later than two years after the date of enactment of
this section, the Administrator shall publish a final certification protocol
for plug-in hybrid vehicles.</text>
</subparagraph></paragraph><paragraph id="HA91F4F0DDA4646789D4D3351F881FB97"><enum>(5)</enum><header>City
cars</header><text>Not later than 1 year after the date of enactment of this
section, the Secretary, in consultation with the Secretary of Transportation,
shall study and report to Congress on the benefits, including petroleum
savings, of and barriers to the widespread deployment 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 and recommend appropriate safety
requirements for such vehicles based on patterns of usage.</text>
</paragraph></subsection><subsection id="H423357A8127C423DA4DD83983300FDA7"><enum>(d)</enum><header>Plug-in hybrid
electric vehicle demonstration program</header>
<paragraph id="H3768629455814ADE933B925BEA420168"><enum>(1)</enum><header>Establishment</header><text>The
Secretary shall establish a competitive demonstration 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
for demonstration of plug-in hybrid electric vehicles</text>
</paragraph><paragraph id="H7B0B89AD37B0438A8C424E70DECA4217"><enum>(2)</enum><header>Administration</header><text>The
Secretary shall establish requirements for applications for grants under this
section. The Secretary shall require, at a minimum, that applicants describe
how data will be collected and summarized for dissemination to the Department,
other grantees and the public, on—</text>
<subparagraph id="H92D806823FDA4C9D827C6122BBBD5FDE"><enum>(A)</enum><text>vehicle and
component performance, including performance of the battery, energy management,
and charging systems, under various driving speeds, trip ranges, traffic and
other driving conditions;</text>
</subparagraph><subparagraph id="H7C582F30F0CB495F8DDDC9300EC5D57"><enum>(B)</enum><text>vehicle and
component costs, including acquisition, operating and maintenance costs;</text>
</subparagraph><subparagraph id="H7BC3E4E9E5174FC78278ED8BBD002DB6"><enum>(C)</enum><text>vehicle emissions,
including emissions of greenhouse gases; and</text>
</subparagraph><subparagraph id="H6FE19217388A4FB6003D0272448B307B"><enum>(D)</enum><text>petroleum
displacement as a result of the project.</text>
</subparagraph></paragraph><paragraph id="H4B145D5F3E804256AF1552225123FE5F"><enum>(3)</enum><header>Solicitation</header><text>Not
later than 180 days after the date of enactment of this section, the Secretary
shall solicit proposals to demonstrate plug-in hybrid electric vehicles.
Thereafter, the Secretary shall make annual solicitations for proposals to
carry out this section.</text>
</paragraph><paragraph id="H43CA474DD8A84337AE3160FE6000FCF6"><enum>(4)</enum><header>Selection
criteria</header>
<subparagraph id="HA29B439C0D5C42BB9B006BD545B27F2"><enum>(A)</enum><header>Priority</header><text>When
making awards under this subsection, the Secretary shall consider each
applicant’s previous experience involving plug-in hybrid electric vehicles and
shall give priority consideration to applications that—</text>
<clause id="HE3A7E7780A52416F917F7F98E4E961DA"><enum>(i)</enum><text>demonstrate a path
to commercialization for the vehicles demonstrated;</text>
</clause><clause id="H7B2D58F1F9C44042AA8B022E443DA36D"><enum>(ii)</enum><text>demonstrate
technologies that optimize the performance of the vehicle in terms of miles per
gallon and emission reduction in urban and suburban environments; or</text>
</clause><clause id="H29805AB7065C48C19BB7B547B74D290"><enum>(iii)</enum><text>are
likely to make a significant contribution to the advancement of the technology
and production in the United States.</text>
</clause></subparagraph><subparagraph id="HAC8B14A0294743CCBAED9FDEEC130000"><enum>(B)</enum><header>Scope of
demonstrations</header><text>When making awards under this subsection, the
Secretary shall ensure that the program will—</text>
<clause id="H573652F73E554F1A8D9000E62DFA0001"><enum>(i)</enum><text>demonstrate the
operation of plug-in hybrid vehicles under various driving speeds, trip ranges,
driving conditions, climate conditions and topography conditions;</text>
</clause><clause id="HBEA3099FCF434FE4BAF6FB00E724BE81"><enum>(ii)</enum><text>demonstrate
light-, medium- and heavy-duty vehicles with a variety of battery and
engine-turn-on control systems;</text>
</clause><clause id="H391E6C9562E345FAA57BC04821F27C45"><enum>(iii)</enum><text>demonstrate
plug-in hybrid vehicles in a variety of applications including military
applications, mass market passenger and light-duty truck applications, and
fleet applications;</text>
</clause><clause id="HFDB2D9E118A648B59F3DC69860BAF00"><enum>(iv)</enum><text>demonstrate
vehicles from original equipment manufacturers, Tier One suppliers, or other
entities capable of achieving commercialization of the technology; and</text>
</clause><clause id="HF4AA2F139C1A461687A871C0EFED1DBC"><enum>(v)</enum><text>provide an
opportunity for innovation and creativity from small and breakthrough
technology companies.</text>
</clause></subparagraph></paragraph><paragraph id="H458B35F9A19D4E8A9995BA652DBC4D58"><enum>(5)</enum><header>Other
requirements</header>
<subparagraph id="HB17E8C5C4B724039AC33077C287BBF37"><enum>(A)</enum><header>Continuing
eligibility</header><text>An applicant that has received a grant in one year
may apply for additional funds in subsequent years, but the Secretary shall not
provide more than an aggregate of $20,000,000 in Federal assistance under the
program to any applicant for fiscal years 2008 through 2013.</text>
</subparagraph><subparagraph id="H3766A5CE15084DEF001E8EF6E8597923"><enum>(B)</enum><header>Information</header><text>The
Secretary shall establish mechanisms to ensure that nonproprietary information,
test data, specifications, and knowledge gained by participants in the program
are shared among the program participants and available to other interested
parties, including other applicants.</text>
</subparagraph></paragraph></subsection><subsection id="H965C1315849F4160B042F159E30271F2"><enum>(e)</enum><header>Education
program</header><text>The Secretary shall develop a nationwide education
strategy for electric drive transportation technologies providing secondary and
high school teaching materials and support for education offered by
institutions of higher education that is focused on electric drive system and
component engineering, including—</text>
<paragraph id="HAF737D4A35804D09BBB3B82C1E8BBCF3"><enum>(1)</enum><text>the Plug-In Hybrid
Electric Vehicle competition for institutions of higher education to be named
in honor of the pioneering work of Dr. Andrew Frank; and</text>
</paragraph><paragraph id="H95C6E52A23BC4AA492D2C1EA00627581"><enum>(2)</enum><text>a
program to award funds to institutions of higher education to create or support
degree programs to ensure the availability of trained electrical and mechanical
engineers with the skills necessary for the advancement of plug-in hybrid
electric vehicles and other forms of electric-drive transportation.</text>
</paragraph></subsection><subsection id="H2670CC8BD078431694DF8B296F79383B"><enum>(f)</enum><header>Near-term
electric transportation deployment program</header>
<paragraph id="H886FBF0B13144777B5411133B34B4034"><enum>(1)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
section, after consultation with the Secretary and the Secretary of
Transportation, the Administrator shall establish a program of grants and loans
to deploy qualified electric transportation that can reduce petroleum use,
greenhouse gas emissions and criteria pollutants by 40 percent or more when
compared to commercially available, nonelectric technologies.</text>
</paragraph><paragraph id="H9B780CA6A2E346099BEB2183A43CFEC3"><enum>(2)</enum><header>Definition</header><text>For
purposes of this subsection, the term <quote>qualified electric transportation
project</quote> includes ship-to-shore electrification, truck stop
electrification, electric truck refrigeration units; electric airport ground
support equipment, electric material handing equipment, electric or dual mode
electric freight rail, and associated infrastructure, including, but not
limited to, panel upgrades, battery chargers, and trenching.</text>
</paragraph><paragraph id="H24DE6695C8194E518F5DBF47963B5660"><enum>(3)</enum><header>Grants</header><text>Two
thirds of the funds made available by the Administrator for grants to qualified
electric transportation projects shall be allocated competitively based on the
overall cost-effectiveness of the project in reducing emissions of criteria
pollutants, emissions of greenhouse gases, and petroleum usage. One-third of
the grant funds made available shall be awarded to projects as applications are
received as long as the projects meet the minimum standard for the reduction of
40 percent in emissions of criteria pollutants, emissions of greenhouse gases
and petroleum usage. Large scale projects and large scale aggregators of
projects are encouraged.</text>
</paragraph><paragraph id="H9D41358BDF6E491596ACCCA84233BFE9"><enum>(4)</enum><header>Loans</header><text>The
Administrator shall establish a revolving loan program to provide loans for
qualified electric transportation projects. Of funds appropriated to carry out
the purposes of this subsection, amounts not utilized for grants under
paragraph (3) shall be used to fund the loan program. The Administrator shall
establish criteria for loans under this paragraph.</text>
</paragraph></subsection><subsection id="HBB9349608AA6447BA3DA96A5F3B93800"><enum>(g)</enum><header>Transition to
fuel and technology neutral regulations</header>
<paragraph id="H45699037D95646478B65784F8DE13843"><enum>(1)</enum><header>Findings</header>
<subparagraph id="HC3A570B0738245C79BDA6C3B7F8ED6B"><enum>(A)</enum><text>Congress finds that
in light of advances in automotive engine technologies since the passage of the
Clean Air Act, it is necessary to modify the control of mobile source emissions
pursuant to the Clean Air Act to establish fuel and technology neutral mobile
source emissions control programs.</text>
</subparagraph><subparagraph id="H2237FF3F3E12440C8364DE8C9B99C78"><enum>(B)</enum><text>Congress finds that
replacement of current emissions control requirements with a market-based
program that encourages the use of the most fuel efficient and environmentally
benign vehicles will provide opportunities for all vehicle types, including
vehicles with spark-ignited engines, compression-ignited engines, other engine
types, dual fueled vehicles, flexible fuel vehicles, fuel cell electric
vehicles, battery electric vehicles, plug-in hybrid electric vehicles, corded
electric vehicle equipment and other electric propulsion technologies.</text>
</subparagraph></paragraph><paragraph id="H1D8E78429C1B4716BA10C513E5E9F00"><enum>(2)</enum><header>Reports</header><text>Within
1 year of the date of enactment of this section, the Administrator shall report
to Congress on all of the fuel and technology-specific definitions in Federal
environmental law and regulations and recommend how such definitions might be
changed to be fuel and technology neutral. Within 18 months of the date of
enactment of this section, the Administrator shall report to Congress on how
petroleum reductions, emissions reductions, and reductions in full fuel cycle
criteria pollutants could be incorporated into the fuel and technology neutral
emissions reduction program required under paragraph (3).</text>
</paragraph><paragraph id="HAD8C756A40F64395889BB23FEAEC93C5"><enum>(3)</enum><header>Rulemaking</header><text>After
providing the report required under paragraph (2), the Administrator shall,
within 2 years of the date of enactment of this section, adopt final rules to
implement a fuel and technology neutral program to reduce tailpipe and
evaporative emissions of criteria pollutants from mobile sources. Such program
shall take effect not later than 10 years after the date of enactment of this
section.</text>
</paragraph><paragraph id="H18A2F91F135442A0A2D760A5F7AB8F"><enum>(4)</enum><header>Definition</header><text>For
purposes of this subsection, <quote>fuel and technology neutral mobile source
emissions control programs</quote> means programs that contain minimum
standards for emissions of criteria pollutants from mobile sources and a
credit-based compliance mechanism for manufacturers that includes averaging,
banking and trading of credits for exceeding the minimum standard.</text>
</paragraph></subsection><subsection id="HBFBFA9AA5CC74B9A96C7847FCD5B8342"><enum>(h)</enum><header>Cost
sharing</header><text>Notwithstanding section 988(c) of the Energy Policy Act
of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16352">42 U.S.C. 16352</external-xref>), the Secretary shall reduce to 30 percent the
non-Federal cost share required from local and municipal governments
participating in the programs authorized in this section.</text>
</subsection><subsection id="H83E646BB49724835BEFEDDCDA18F6E52"><enum>(i)</enum><header>Merit
review</header><text>Notwithstanding section 989 of the Energy Policy Act of
2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16353">42 U.S.C. 16353</external-xref>), not more than 30 percent of the total funding awarded
under this section shall be directly awarded to National Laboratories, not more
than 10 percent of the total funding awarded under this section shall be
awarded, directly or indirectly, to projects for the development. or
demonstration of fuel cell vehicles or plug-in hybrid fuel cell vehicles, not
more than 30 percent of the total funding awarded under subsection (f) shall be
awarded, directly or indirectly, to ship-to-shore-electrification projects, and
not more than 5 percent of the total funding awarded under this section shall
be awarded, directly or indirectly, to projects for the development or
demonstration of electric rail or magnetic levitation trains.</text>
</subsection><subsection id="HECB664C1D2804952000188AB5D74F27C"><enum>(j)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated to carry
out the programs under subsections (c) and (e) $110,000,000 for each of fiscal
years 2008 through 2013. There are authorized to be appropriated to carry out
the program under subsection (d) $60,000,000 for each of fiscal years 2008
through 2012, of which $20,000,000 shall be available only for award to local
and municipal governments. There are authorized to be appropriated to carry out
the programs under subsections (f) and (g) $125,000,000 for each of fiscal
years 2008 through 2013.</text>
</subsection></section><section display-inline="no-display-inline" id="HDC15166111984EA2AC437DD82F647254" section-type="subsequent-section"><enum>402.</enum><header>Amendments to
Alternative Motor Vehicle Credit</header>
<subsection id="H911871EA00F04228BD24E66736F0E7C7"><enum>(a)</enum><header>2002 model year
city fuel economy</header><text display-inline="yes-display-inline">Section
30B(c)(2)(A)(ii) of Subpart B of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HB457A28824A24839B215D96D4FA9B4DD" style="OLC">
<clause id="H895693CD6C4F44D982F2374DDCF0D920"><enum>(ii)</enum><header>2002 model year
city fuel economy</header><text>For purposes of this section, the 2002 model
year city fuel economy with respect to a vehicle shall be determined on a
gasoline equivalent basis as determined by the Administrator of the
Environmental Protection Agency using the tables provided in subsection
(b)(2)(B) with respect to such vehicle, except that for purposes of subsection
(d)(2)(A)(i) city fuel economy must not include fuel economy increases
resulting from off-vehicle sources of
electricity.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1975CB7A9B5541D5BFC562A61B906502"><enum>(b)</enum><header>New Qualified
Hybrid Motor Vehicle Credit</header><text>Section 30B(d) of Subpart B of Part
IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H9FECEA56C0A14A1DB7AFD30AD54EDBA" style="OLC">
<subsection id="H766F0A30012C43DAB5B1DD200973CE32"><enum>(d)</enum><header>New qualified
hybrid motor vehicle credit</header>
<paragraph id="HA5E3E0D7194742A488A5F2A03B2E4F91"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a), the new qualified hybrid
motor vehicle credit determined under this subsection for the taxable year is
the credit amount determined under paragraph (2) with respect to a new
qualified hybrid motor vehicle placed in service by the taxpayer during the
taxable year.</text>
</paragraph><paragraph id="H44A187414EB94934A10016DEB7DD88B3"><enum>(2)</enum><header>Credit
amount</header>
<subparagraph id="H611998C1512A49C100DB166F005871A2"><enum>(A)</enum><header>Credit amount
for passenger automobiles and light trucks</header>
<clause id="H549B56CE06FD40A7888BBA93E4CDF754"><enum>(i)</enum><text>in
the case of a new qualified hybrid motor vehicle which is a passenger
automobile or light truck and which has a gross vehicle weight rating of not
more than 8,500 pounds, the amount determined under this paragraph is the sum
of the amounts determined under clauses (ii), (iii), and (iv).</text>
</clause><clause id="HFE244FE4F5EB4971ACE24D781EE95717"><enum>(ii)</enum><header>Fuel
economy</header><text>The amount determined under this clause is the amount
which would be determined under subsection (c)(2)(A) if such vehicle were a
vehicle referred to in such subsection.</text>
</clause><clause id="H8C08AF631FA64F5799E690E3D2904B30"><enum>(iii)</enum><header>Conservation
credit</header><text>The amount determined under this clause is the amount
which would be determined under subsection (c)(2)(B) if such vehicle were a
vehicle referred to in such subsection.</text>
</clause><clause id="H7BCE1E20806E43FDA1DEBF4051FAF678"><enum>(iv)</enum><header>Increase for
battery-powered range from off-vehicle electricity</header><text>The amount
determined under this clause in 2009 to 2015 as follows:</text>
<subclause id="HF73CB08BAD074D67BBC24269D3891727"><enum>(I)</enum><text>$800 if such
vehicle uses a 4 kWh traction battery.</text>
</subclause><subclause id="H86E0555F94F04666A3DDC9F12D13E3AE"><enum>(II)</enum><text>$1200 if such
vehicle uses a 5 kWh traction battery.</text>
</subclause><subclause id="HCA3559D3414B4C519C4DE0F858E200E7"><enum>(III)</enum><text>$1600 if such
vehicle uses a 6 kWh traction battery.</text>
</subclause><subclause id="H1A450C711F534A13805C882D550300AF"><enum>(IV)</enum><text>$2000 if such
vehicle uses a 7 kWh traction battery.</text>
</subclause><subclause id="H42BCD07B470D4CA18B699E23A3BFE347"><enum>(V)</enum><text>$2400 if such
vehicle uses a 8 kWh traction battery.</text>
</subclause><subclause id="H09DFBAD78EBF4CC38856DFD511F5C660"><enum>(VI)</enum><text>$2800 if such
vehicle uses a 9 kWh traction battery.</text>
</subclause><subclause id="HCC2CE571CDE54063BF2B62ACA9003341"><enum>(VII)</enum><text>$3000 if such
vehicle uses a 10 kWh traction battery.</text>
</subclause><subclause id="H3625430022D3496BADC84E007E8CB2F9"><enum>(VIII)</enum><text>$3200 if such
vehicle uses a 11 kWh traction battery.</text>
</subclause><subclause id="H20F3054745B046FEA7BE5D04F314D571"><enum>(IX)</enum><text>$3400 if such
vehicle uses a 12 kWh traction battery.</text>
</subclause><subclause id="H5DEBA92261174274B52E121BF6C582F6"><enum>(X)</enum><text>$3800 if such
vehicle uses a 13 kWh traction battery.</text>
</subclause><subclause id="H45292D785085405CBAA9492E191E969B"><enum>(XI)</enum><text>$4000 if such
vehicle uses a 14 kWh traction battery.</text>
</subclause><subclause id="H3D44CB1AC83A44A7A244E9E8F35E0057"><enum>(XII)</enum><text>$4200 if such
vehicle uses a 15 kWh traction battery.</text>
</subclause></clause></subparagraph><subparagraph id="H2B7082F1DA2C46F1B3253C365CCC431E"><enum>(B)</enum><header>Credit amount
for other motor vehicles</header>
<clause id="HE6A7AB284DFB4D39B5A0FC17B4742300"><enum>(i)</enum><header>In
general</header><text>In the case of any new qualified hybrid motor vehicle to
which subparagraph (A) does not apply, the amount determined under this
paragraph is the amount equal to the applicable percentage of the qualified
incremental hybrid cost of the vehicle as certified under clause (v).</text>
</clause><clause id="HF6CECFDFED8C4779A8E0B9961FC4655B"><enum>(ii)</enum><header>Applicable
percentage</header><text>For purposes of clause (i), the applicable percentage
is—</text>
<subclause id="H1D7A4C59D7A944DF9F0007F8E99C4FE7"><enum>(I)</enum><text>20 percent if the
vehicle achieves an increase in city fuel economy relative to a comparable
vehicle of at least 30 percent but less than 40 percent,</text>
</subclause><subclause id="HF9F40634754B428D9497F6A6E35242D1"><enum>(II)</enum><text>30 percent if the
vehicle achieves such an increase of at least 40 percent but less than 50
percent,</text>
</subclause><subclause id="H59A2F3BFE4EF438B8749440166DE5B9C"><enum>(III)</enum><text>40 percent if
the vehicle achieves such an increase of at least 50 percent, and</text>
</subclause><subclause id="HCF4B77C97E5746CCB5B8CAD657AFE1C3"><enum>(IV)</enum><text>40 percent for a
plug-in hybrid electric vehicle that can use off-board electricity to recharge
an energy storage device capable of ten (or greater) miles of all electric
range.</text>
</subclause><continuation-text continuation-text-level="clause">More than 40
percent shall be granted if the all electric range is greater than 10 miles, as
determined by the Administrator of the Environmental Protection Agency.</continuation-text></clause><clause id="H992969DCB6B542E6BCB6E2AA68E9E643"><enum>(iii)</enum><header>Qualified
incremental hybrid cost</header><text>For purposes of this subparagraph, the
qualified incremental hybrid cost of any vehicle is equal to the amount of the
excess of the manufacturer’s suggested retail price for such vehicle over such
price for a comparable vehicle, to the extent such amount does not
exceed—</text>
<subclause id="H9C46283C66F54E8BBA1F6E225DC700BD"><enum>(I)</enum><text>$7,500, if such
vehicle has a gross vehicle weight rating of not more than 14,000
pounds,</text>
</subclause><subclause id="H1CBA6496660F4839A97D9268783B09F4"><enum>(II)</enum><text>$15,000, if such
vehicle has a gross vehicle weight rating of more than 14,000 pounds but not
more than 26,000 pounds, and</text>
</subclause><subclause id="H7692D237073745588E5382FED59D12BF"><enum>(III)</enum><text>$30,000, if such
vehicle has a gross vehicle weight rating of more than 26,000 pounds.</text>
</subclause></clause><clause id="H1F9C7B126B66467BBF56A9E96DE48EE9"><enum>(iv)</enum><header>Comparable
vehicle</header><text>For purposes of this subparagraph, the term
<quote>comparable vehicle</quote> means, with respect to any new qualified
hybrid motor vehicle, any vehicle which is powered solely by a gasoline or
diesel internal combustion engine and which is comparable in weight, size, and
use to such vehicle.</text>
</clause><clause id="H9BCA038867C74F86BF1C008F74D3D090"><enum>(v)</enum><header>Certification</header><text>A
certification described in clause (i) shall be made by the manufacturer and
shall be determined in accordance with guidance prescribed by the Secretary.
Such guidance shall specify procedures and methods for calculating fuel economy
savings and incremental hybrid costs.</text>
</clause></subparagraph></paragraph><paragraph id="H53C3D45064B74897A1034600D56B26DA"><enum>(3)</enum><header>New qualified
hybrid motor vehicle</header><text>For purposes of this subsection—</text>
<subparagraph id="HD9DC5D87BE1C4A4F848039C481FC94B"><enum>(A)</enum><header>In
general</header><text>The term <quote>new qualified hybrid motor
vehicle</quote> means a motor vehicle—</text>
<clause id="H860845F1CBD147F9AAC3B8CA985770BB"><enum>(i)</enum><text>which draws
propulsion energy from onboard sources of stored energy which are both—</text>
<subclause id="HF2D04E362D5A4FE0B7BABC48239C4F82"><enum>(I)</enum><text>an internal
combustion or heat engine using consumable fuel, and</text>
</subclause><subclause id="H04EF6D4A89054B2BB1D890CEF754644"><enum>(II)</enum><text>a rechargeable
energy storage system,</text>
</subclause></clause><clause id="H8A07542CAC96472CA986E8F1AF9617B"><enum>(ii)</enum><text>which, in the case
of a vehicle to which paragraph (2)(A) applies, has received a certificate of
conformity under the Clean Air Act and meets or exceeds the equivalent
qualifying California low emission vehicle standard under section 243(e)(2) of
the Clean Air Act for that make and model year, and—</text>
<subclause id="H8A6BBE5459FA4AF09D34415578DB997B"><enum>(I)</enum><text>in the case of a
vehicle having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5
Tier II emission standard established in regulations prescribed by the
Administrator of the Environmental Protection Agency under section 202(i) of
the Clean Air Act for that make and model year vehicle, and</text>
</subclause><subclause id="HC9F191620E604A7F89381D3DDA83684E"><enum>(II)</enum><text>in the case of a
vehicle having a gross vehicle weight rating of more than 6,000 pounds but not
more than 8,500 pounds, the Bin 8 Tier II emission standard which is so
established,</text>
</subclause></clause><clause id="H3CD232BD901640A59F73DD223C96541F"><enum>(iii)</enum><text>which has a
maximum available power of at least—</text>
<subclause id="H042C364BB21A45B8AFCFAD74B40529E8"><enum>(I)</enum><text>4 percent in the
case of a vehicle to which paragraph (2)(A) applies,</text>
</subclause><subclause id="HF067152425764FFB853660C14031FBE1"><enum>(II)</enum><text>10 percent in the
case of a vehicle which has a gross vehicle weight rating of more than 8,500
pounds and not more than 14,000 pounds, and</text>
</subclause><subclause id="H94BFD47820F9412AA887E7DF1387AD1C"><enum>(III)</enum><text>15 percent in
the case of a vehicle in excess of 14,000 pounds,</text>
</subclause></clause><clause id="HF6123275B68F43E9A2B5D2378CCC729D"><enum>(iv)</enum><text>which, in the
case of a vehicle to which paragraph (2)(B) applies, has an internal combustion
or heat engine which has received a certificate of conformity under the Clean
Air Act as meeting the emission standards set in the regulations prescribed by
the Administrator of the Environmental Protection Agency for 2004 through 2007
model year diesel heavy duty engines or Otto cycle heavy duty engines, as
applicable,</text>
</clause><clause id="H2C4ACA06F0FA4218B62487BF8600BE90"><enum>(v)</enum><text>the original use
of which commences with the taxpayer,</text>
</clause><clause id="H3EEB50D7EE934C6085F9B68EC814C8B6"><enum>(vi)</enum><text>which is acquired
for use or lease by the taxpayer and not for resale, and</text>
</clause><clause id="H269A706F3309437CB4DE12EDC2A8722F"><enum>(vii)</enum><text>which is made by
a manufacturer.</text>
</clause><clause id="H5A92DB4121F84817BDF1A328F8E803FF"><enum>(viii)</enum><text>which includes
plug-in hybrid electric vehicles for purposes of paragraphs (2)(A) and
(2)(B).</text>
</clause><continuation-text continuation-text-level="subparagraph">Such
term shall not include any vehicle which is not a passenger automobile or light
truck if such vehicle has a gross vehicle weight rating of less than 8,500
pounds.</continuation-text></subparagraph><subparagraph id="H96DD3D8389934B74BC8C035324C199C5"><enum>(B)</enum><header>Consumable
fuel</header><text>For purposes of subparagraph (A)(i)(I), the term
<quote>consumable fuel</quote> means any solid, liquid, or gaseous matter which
releases energy when consumed by an auxiliary power unit.</text>
</subparagraph><subparagraph id="HD08CEBBF11834EE0A9C84F8963FB5E05"><enum>(C)</enum><header>Maximum
available power</header>
<clause id="HEC2F29C5B51648F18CAEDEB1715D31BA"><enum>(i)</enum><header>Certain
passenger automobiles and light trucks</header><text>In the case of a vehicle
to which paragraph (2)(A) applies, the term <quote>maximum available
power</quote> means the maximum power available from the rechargeable energy
storage system, during a standard 10 second pulse power or equivalent test,
divided by such maximum power and the SAE net power of the heat engine.</text>
</clause><clause id="H18B07D0E0A1040E6A6E6A6903C841F83"><enum>(ii)</enum><header>Other motor
vehicles</header><text>In the case of a vehicle to which paragraph (2)(B)
applies, the term <quote>maximum available power</quote> means the maximum
power available from the rechargeable energy storage system, during a standard
10 second pulse power or equivalent test, divided by the vehicle’s total
traction power. For purposes of the preceding sentence, the term <quote>total
traction power</quote> means the sum of the peak power from the rechargeable
energy storage system and the heat engine peak power of the vehicle, except
that if such storage system is the sole means by which the vehicle can be
driven, the total traction power is the peak power of such storage
system.</text>
</clause></subparagraph><subparagraph id="H1264C9F84DF34E0B86736202E9D09940"><enum>(D)</enum><header>All electric
range</header><text>For purposes of paragraph (2)(B) the term <quote>all
electric range</quote> means miles traveled in a hybrid electric vehicle
capable of using an off-vehicle source of electricity and tested using the
Environmental Protection Agency’s Federal Urban Driving Schedule or a new
driving schedule for plug-in hybrid electric vehicles.</text>
</subparagraph><subparagraph id="HECE6671A44C542638059F1567F9BB5AB"><enum>(E)</enum><header>KWH traction
battery</header><text>For purposes of paragraph (2)(A)(iii) the term <quote>kWh
traction battery</quote> means the size of an electrochemical storage device as
measured by from 100 percent state of charge to 0 percent state of charge as
defined at <inline-comment display="yes">10 C.F.R.
_____</inline-comment>.</text>
</subparagraph><subparagraph id="H7D5985010FDA4B7FAF611F02505FEF45"><enum>(F)</enum><header>Plug-in hybrid
electric vehicle</header><text>For purposes of paragraphs (2)(A) and (2)(B),
the term <quote>plug-in hybrid electric vehicle</quote> means a light-duty,
medium-duty, or heavy-duty on-road or vehicle that is propelled by an internal
combustion engine or heat engine and/or an electric motor and energy storage
system using:</text>
<clause id="H97612BDC84E847CAB9B6D546816631ED"><enum>(i)</enum><text>any combustible
fuel,</text>
</clause><clause id="H24AABF09138B43DCA1B026925BA8C28E"><enum>(ii)</enum><text>an on-board,
rechargeable storage device, and</text>
</clause><clause id="H73450B1F2BC94F9DBE883F957830A6B"><enum>(iii)</enum><text>a
means of using an off-board source of electricity to operate the vehicle in
intermittent or continuous all-electric
mode.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H47EDD08202DC483CB3A3EA572C4745B0"><enum>(c)</enum><header>Driving schedule
for plug-in hybrid electric vehicles</header>
<paragraph id="HA8507CDCC26F4310B8D950922EED4348"><enum>(1)</enum><header>Establishment</header><text>Not
later than 18 months after the date of enactment of this section, the
Administrator of the Environmental Protection Agency shall develop a driving
schedule for plug-in hybrid electric vehicles based on a test that shall start
with a full battery and end when the battery reaches 20 percent state of charge
after intermittent use of the battery and electric motor for vehicle propulsion
at speeds no greater than 35 miles per hour, and which does not count vehicle
miles traveled while the engine is operating.</text>
</paragraph><paragraph id="H243C85B2DDA14217B6B6A05CB3B5C338"><enum>(2)</enum><header>Bonus
credits</header><text>Vehicles that can travel in all electric mode during a
separate test of higher speed operation shall be entitled to bonus all electric
range miles for purposes of the credit provided in Section 30B of the Internal
Revenue Code of 1986, on a schedule to be established by rule by the
Administrator.</text>
</paragraph></subsection><subsection id="H22DDD50209884AB4002460C21B71132D"><enum>(d)</enum><header>Duration of tax
credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B(i)</external-xref> of the Internal Revenue Code of 1986, as
amended by this Act, is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H58D1D6F702494EE9927538B2F497A67B" style="OLC">
<subsection id="H6CB5BC53BAEF4146A0CE35EA001EE4AB"><enum>(i)</enum><header>Termination</header><text>This
section shall not apply to any property purchased after—</text>
<paragraph id="H5D02D4622B3F405780A6E1EB44FA748"><enum>(1)</enum><text>in the case of a
new qualified fuel cell motor vehicle (as described in subsection (b)),
December 31, 2014,</text>
</paragraph><paragraph id="HD64C141F9CDD4CB998E98D41DE66CA9E"><enum>(2)</enum><text>in the case of a
new advanced lean burn technology motor vehicle (as described in subsection
(c)) or a new qualified hybrid motor vehicle (as described in subsection
(d)(2)(A)), December 31, 2010,</text>
</paragraph><paragraph id="H4A5FF36DCFD1489DAD6B68FC187E7F50"><enum>(3)</enum><text>in the case of a
new qualified hybrid motor vehicle (as described in subsection (d)(2)(B)),
December 31, 2010,</text>
</paragraph><paragraph id="HB92C02D308D54207A4E5513D1C205DC"><enum>(4)</enum><text>in the case of a
new qualified alternative fuel vehicle (as described in subsection (e)),
December 31, 2010, and</text>
</paragraph><paragraph id="H349CC55F1161462E9FBE2F67403D646B"><enum>(5)</enum><text>in the case of a
new qualified hybrid motor vehicle which is a plug-in hybrid electric vehicle
range (as described in subsection (d)(2)(A) and (d) (2) (B), December 31,
2015.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H237CD288B1BD4447BC2B40B500FD2C78"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect for
property or vehicles placed in service after December 31, 2008.</text>
</subsection></section><section id="H643CDB7164E44CD2B3E9716009D925FB"><enum>403.</enum><header>Idling
Reduction Tax Credit</header>
<subsection id="HB16F8ECC8DA340449C11E600DAE7918F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart D of part IV
of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to
business-related credits) is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="HB9F2D76F558142A6BE42159BA12D3DB7" style="OLC">
<section id="HF63C4ABF74764172A8009463A0025C77"><enum>45O.</enum><header>Idling
reduction credit</header>
<subsection id="H4D285BC99D9243D28C70F541FB5E0314"><enum>(a)</enum><header>General
rule</header><text>For purposes of section 38, the idling reduction tax credit
determined under this section for the taxable year is an amount equal to 50
percent of the amount paid or incurred for the purchase and installation of
each qualifying idling reduction device or qualifying idle reduction
infrastructure placed in service by the taxpayer during the taxable
year.</text>
</subsection><subsection id="H93573A82F7434C8DA95D32C8D1FF72C4"><enum>(b)</enum><header>Limitation</header><text>The
maximum amount allowed as a credit under subsection (a) shall not exceed $3,500
per device or per qualifying infrastructure.</text>
</subsection><subsection id="H361A8E11981A49059EEF70FEAE39F5F7"><enum>(c)</enum><header>Definitions</header><text>For
purposes of subsection (a)—</text>
<paragraph id="HCCB1C43F167549C981D57614998733AA"><enum>(1)</enum><header>Qualifying
idling reduction device</header><text>The term <quote>qualifying idling
reduction device</quote> means any device or system of devices that—</text>
<subparagraph id="H76174D6F73C847EAA490EA1BA85DB763"><enum>(A)</enum><text>is installed on a
heavy-duty diesel-powered on-highway vehicle,</text>
</subparagraph><subparagraph id="H044D9631B3F14516B0AE00AB3DA3D4C0"><enum>(B)</enum><text>is designed to
provide to such vehicle those services (such as heat, air conditioning, or
electricity) that would otherwise require the operation of the main drive
engine while the vehicle is temporarily parked or remains stationary using
either—</text>
<clause id="HBC9E6191032544AD8820EB825B08058B"><enum>(i)</enum><text>an
all electric unit such as a battery powered unit or from grid-supplied
electricity, or</text>
</clause><clause id="H164345C6226A46F2A3135FD6E4BC42D4"><enum>(ii)</enum><text>a
dual fuel unit powered by diesel or other fuels, and is capable of providing
such services from grid-supplied electricity or on-truck batteries
alone,</text>
</clause></subparagraph><subparagraph id="HE4F436B344214AEB89DD7CB68E853109"><enum>(C)</enum><text>the original use
of which commences with the taxpayer,</text>
</subparagraph><subparagraph id="HB550AAFEC09644C991A9EFCB415922D8"><enum>(D)</enum><text>is acquired for
use by the taxpayer and not for resale, and</text>
</subparagraph><subparagraph id="H2D5EA241B15542D6ACBF007C67CB4427"><enum>(E)</enum><text>is certified by
the Secretary of Energy, in consultation with the Administrator of the
Environmental Protection Agency and the Secretary of Transportation, to reduce
long-duration idling of such vehicle at a motor vehicle rest stop or other
location where such vehicles are temporarily parked or remain
stationary.</text>
</subparagraph></paragraph><paragraph id="HBF7DA9045F924949A237402FC5F03E90"><enum>(2)</enum><header>Heavy-duty
diesel-powered on-highway vehicle</header><text>The term <quote>heavy-duty
diesel-powered on-highway vehicle</quote> means any vehicle, machine, tractor,
trailer, or semi-trailer propelled or drawn by mechanical power and used upon
the highways in the transportation of passengers or property, or any
combination thereof determined by the Federal Highway Administration.</text>
</paragraph><paragraph id="H12BF4F54B4F44673B78BAFD406C37D81"><enum>(3)</enum><header>Long-duration
idling</header><text>The term <quote>long-duration idling</quote> means the
operation of a main drive engine, for a period greater than 15 consecutive
minutes, where the main drive engine is not engaged in gear. Such term does not
apply to routine stoppages associated with traffic movement or
congestion.</text>
</paragraph><paragraph id="HF5F5D297C0F54890ADCAD1F1F8992291"><enum>(4)</enum><header>Qualifying idle
reduction infrastructure</header><text>The term <quote>qualifying idle
reduction infrastructure</quote> means either —</text>
<subparagraph id="HECD5E21633764C9697A32F1DC9077988"><enum>(A)</enum><text>off-truck
equipment to supply electric power, including electric receptacles, boxes,
wiring, conduit, and other connections to one truck space, or</text>
</subparagraph><subparagraph id="HB7263E32C3B74F2588C1C03EA3C98B7"><enum>(B)</enum><text>off-truck equipment
that directly provides air conditioning, heating, electric power, and other
connections and services to one truck space.</text>
</subparagraph></paragraph></subsection><subsection id="H98908F951CAF471F86BF3CCA07822E8D"><enum>(d)</enum><header>No double
benefit</header><text>For purposes of this section—</text>
<paragraph id="H6887C8B1745A40B6BF88FA9034732577"><enum>(1)</enum><header>Reduction in
basis</header><text>If a credit is determined under this section with respect
to any property by reason of expenditures described in subsection (a), the
basis of such property shall be reduced by the amount of the credit so
determined.</text>
</paragraph><paragraph id="HE04EE1AAF26142BCB9E6C4D8AF2E442B"><enum>(2)</enum><header>Other deductions
and credits</header><text>No deduction or credit shall be allowed under any
other provision of this chapter with respect to the amount of the credit
determined under this section.</text>
</paragraph><paragraph id="HFEA4FB2674AC471CADC9401B1E1E5D01"><enum>(3)</enum><header>Election not to
claim credit</header><text>This section shall not apply to a taxpayer for any
taxable year if such taxpayer elects to have this section not apply for such
taxable
year.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF9A5662793614B70AD1FB21E62FD88AD"><enum>(b)</enum><header>Credit to be
part of general business credit</header><text>Subsection (b) of section 38 of
such Code (relating to general business credit) is amended by striking
<quote>plus</quote> at the end of paragraph (30), by striking the period at the
end of paragraph (31) and inserting <quote>, plus</quote> , and by adding at
the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H21627AF4B4074C1FACC38152A732C2D" style="OLC">
<paragraph id="H57FBDD1104B24E84BDD4A7C313314722"><enum>(32)</enum><text>the idling
reduction tax credit determined under section
45O(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1D4A63C52DAE434CA4F7F2AC731D4411"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="HA944B1487A6249A38E00957BDB49D218"><enum>(1)</enum><text>The table of
sections for subpart D of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 45M the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="HEB1C155FFD4046D58B6DA700FDB9D8B7" style="OLC">
<toc container-level="quoted-block-container" idref="HB9F2D76F558142A6BE42159BA12D3DB7" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HF63C4ABF74764172A8009463A0025C77" level="section">Sec. 45O. Idling reduction
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA07CF7E9EDAD4F869400CCB3DDF97D"><enum>(2)</enum><text>Section 1016(a) of
such Code, as amended by this Act, is amended by striking <quote>and</quote> at
the end of paragraph (37), by striking the period at the end of paragraph (38)
and inserting <quote>, and</quote>, and by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HAD409C693D894B2CA345108B01E7A5F8" style="OLC">
<paragraph id="H0CAEA8B3D4014510A8AB26DCAA6FF334"><enum>(39)</enum><text>in the case of a
facility with respect to which a credit was allowed under section 45O, to the
extent provided in section
45O(d)(A).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H52C2A39318EE436290AC5C17D5841DDE"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.</text>
</subsection><subsection id="HF2D1DABD8EC245F68E4CAEBF62AECC16"><enum>(e)</enum><header>Determination of
certification standards by Secretary of Energy for certifying idling reduction
devices</header><text>Not later than 6 months after the date of the enactment
of this section and in order to reduce air pollution and fuel consumption, the
Secretary of Energy, in consultation with the Administrator of the
Environmental Protection Agency and the Secretary of Transportation, shall
publish the standards under which the Secretary, in consultation with the
Administrator of the Environmental Protection Agency and the Secretary of
Transportation, will, for purposes of section 45O of the Internal Revenue Code
of 1986 (as added by this section), certify the idling reduction devices and
qualifying infrastructure which will reduce long-duration idling of vehicles at
motor vehicle rest stops or other locations where such vehicles are temporarily
parked or remain stationary in order to reduce air pollution and fuel
consumption.</text>
</subsection></section><section id="H00FC4D1D10AE4224A420CC79F2027E52"><enum>404.</enum><header>Plug-in Hybrid
Electric Vehicle Prize</header>
<subsection id="H75EACCC671B644B2A18C99E178624928"><enum>(a)</enum><header>In
general</header><text>The Secretary of Energy (in this section referred to as
the <quote>Secretary</quote>) shall carry out a program to competitively award
cash prizes to advance the research, development, demonstration, and commercial
application of plug-in hybrid electric vehicle technology.</text>
</subsection><subsection id="H336C265FF64D465EAEFDF0000037A068"><enum>(b)</enum><header>Categories</header><text>The
Secretary shall establish prizes for—</text>
<paragraph id="HBD3F81A1E0BD44E28DCAA33333C8AA7C"><enum>(1)</enum><text>batteries using
nanotechnology for application in plug-in hybrid electric vehicles or in
plug-in hybrid fuel cell vehicles;</text>
</paragraph><paragraph id="HD02733A8E09741E588BB5C0200C28E"><enum>(2)</enum><text>prototypes of
plug-in hybrid electric vehicles that best meet or exceed objective performance
criteria;</text>
</paragraph><paragraph id="HCC8AF7213A9A41B188DB3DB4A476D436"><enum>(3)</enum><text>demonstrations of
prototypes of plug-in hybrid electric vehicles in medium duty, heavy-duty,
nonroad vehicle or military applications that are designed to facilitate the
eventual market success of plug-in hybrid electric vehicle technologies;</text>
</paragraph><paragraph id="HD8296877C56744C7A871211B022B9D45"><enum>(4)</enum><text>advancements in
plug-in hybrid electric vehicle technology for light-duty passenger vehicle
applications that can significantly advance the petroleum reduction and
environmental benefits or control system technology;</text>
</paragraph><paragraph id="H8C26FDEF93064C56AFEBABD6EB7F4E56"><enum>(5)</enum><text>advancements in
plug-in hybrid electric vehicles technology for light-duty passenger
applications to obtain at least 30 miles of continuous all electric range at
highway speeds, to seat two or more passengers, to use four or more wheels, to
demonstrate zero to 60 mile per hour acceleration in 10 seconds or less, to
meet Environmental Protection Agency criteria pollutant standards, and to be
able to pass safety standards for passenger vehicles set by the National
Highway Transportation Safety Administration; and</text>
</paragraph><paragraph id="H90B2619116AA41EDA0B02FE918868CE3"><enum>(6)</enum><text>other plug-in
hybrid electric vehicle technology advances deemed necessary by the
Secretary.</text>
</paragraph></subsection><subsection id="H91ED3DD3D152413586F97F1C51BB936B"><enum>(c)</enum><header>Advancements</header><text>Prizes
authorized under this section shall be awarded to the most significant advance
or advances that meet criteria established by the Secretary.</text>
</subsection><subsection id="H15514E807F9A42CAB9774B96495300E4"><enum>(d)</enum><header>Eligibility</header><text>To
be eligible to win a prize under this section, an individual or entity—</text>
<paragraph id="H856D54342C1641D4B414C4E838DA00CA"><enum>(1)</enum><text>shall have
complied with all the requirements prescribed by the Secretary;</text>
</paragraph><paragraph id="H7CBCC8FCEB004EF99E61BC245C00C235"><enum>(2)</enum><text>in the case of a
private entity, shall be incorporated in and maintain a primary place of
business in the United States, and in the case of an individual, whether
participating singly or in a group, shall be a citizen of, or an alien lawfully
admitted for permanent residence in, the United States; and</text>
</paragraph><paragraph id="H83A6F3C4DC2442CFBED9EC68BA40E658"><enum>(3)</enum><text>shall not be a
Federal entity, a Federal employee acting within the scope of his employment,
or an employee of a National Laboratory acting within the scope of his
employment.</text>
</paragraph></subsection><subsection id="HC32AABC559B14E77A0E45658C6CEE921"><enum>(e)</enum><header>Judges</header><text>The
Secretary shall assemble a panel of qualified judges to select the winner or
winners on the basis of the criteria established under subsection (c). Judges
for each prize competition shall include individuals from outside the
Department of Energy, including from the private sector. A judge may
not—</text>
<paragraph id="H7334D4F910E04590BC4873C28D09C53C"><enum>(1)</enum><text>have personal or
financial interests in, or be an employee, officer, director, or agent of, any
entity that is a registered participant in the prize competition for which he
or she will serve as a judge; or</text>
</paragraph><paragraph id="H153D74D9A1B54B71A309D81546B0F38C"><enum>(2)</enum><text>have a familial or
financial relationship with an individual who is a registered participant in
the prize competition for which he or she will serve as a judge.</text>
</paragraph></subsection><subsection id="H8C6A4DF8687F43DE9C398000AC026232"><enum>(f)</enum><header>Nonsubstitution</header><text>The
program created under this section shall not be considered a substitute for
Federal research and development programs.</text>
</subsection><subsection id="H7111D2428770412392B3A600D7BEFC5C"><enum>(g)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated to the
Secretary for carrying out this section $50,000,000 for each of the fiscal
years 2008 through 2011, of which no more than $1,000,000 for any fiscal year
may be used for administrative expenses. Funds appropriated pursuant to this
subsection shall remain available until expended.</text>
</subsection><subsection id="H11ACDEB2733C43789C91023BB41681F2"><enum>(h)</enum><header>Sunset</header><text>The
authority to announce prize competitions under this section shall terminate on
September 30, 2017.</text>
</subsection></section>