[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 357 Reported in Senate (RS)]

                                                       Calendar No. 630
110th CONGRESS
  2d Session
                                 S. 357

                          [Report No. 110-278]

    To improve passenger automobile fuel economy and safety, reduce 
  greenhouse gas emissions, reduce dependence on foreign oil, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 22, 2007

  Mrs. Feinstein (for herself, Ms. Snowe, Mr. Inouye, Mr. Durbin, Mr. 
Kerry, Mrs. Boxer, Mr. Nelson of Florida, Ms. Cantwell, Mr. Lautenberg, 
  Mr. Lieberman, Mr. Menendez, Ms. Collins, Mr. Reed, Mr. Leahy, Mr. 
Sanders, Mr. Dodd, Mr. Akaka, and Mr. Cardin) introduced the following 
 bill; which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

                             April 7, 2008

               Reported by Mr. Inouye, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
    To improve passenger automobile fuel economy and safety, reduce 
  greenhouse gas emissions, reduce dependence on foreign oil, and for 
                            other purposes.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Ten-in-
Ten Fuel Economy Act''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Average fuel economy standards for passenger 
                            automobiles and light trucks.
<DELETED>Sec. 3. Passenger car program reform.
<DELETED>Sec. 4. Definition of work truck.
<DELETED>Sec. 5. Definition of light truck.
<DELETED>Sec. 6. Ensuring safety of passenger automobiles and light 
                            trucks.
<DELETED>Sec. 7. Onboard fuel economy indicators and devices.
<DELETED>Sec. 8. Secretary of Transportation to certify benefits.
<DELETED>Sec. 9. Credit trading program.
<DELETED>Sec. 10. Report to Congress.
<DELETED>Sec. 11. Labels for fuel economy and greenhouse gas emissions.

<DELETED>SEC. 2. AVERAGE FUEL ECONOMY STANDARDS FOR PASSENGER 
              AUTOMOBILES AND LIGHT TRUCKS.</DELETED>

<DELETED>    (a) Increased Standards.--Section 32902 of title 49, 
United States Code, is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) by striking ``Non-Passenger 
                Automobiles.--'' and inserting ``Prescription of 
                Standards by Regulation.--''; and</DELETED>
                <DELETED>    (B) by striking ``(except passenger 
                automobiles)'' and inserting ``(except passenger 
                automobiles and light trucks)''; and</DELETED>
        <DELETED>    (2) by amending subsection (b) to read as 
        follows:</DELETED>
<DELETED>    ``(b) Standards for Passenger Automobiles and Light 
Trucks.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary of 
        Transportation, after consultation with the Administrator of 
        the Environmental Protection Agency, shall prescribe average 
        fuel economy standards for passenger automobiles and light 
        trucks manufactured by a manufacturer in each model year 
        beginning with model year 2010 in order to achieve a combined 
        average fuel economy standard for passenger automobiles and 
        light trucks for model year 2019 of at least 35 miles per 
        gallon (or such other number of miles per gallon as the 
        Secretary may prescribe under subsection (c)).</DELETED>
        <DELETED>    ``(2) Elimination of suv loophole.--Beginning not 
        later than model year 2013, the regulations prescribed under 
        this section may not make any distinction between passenger 
        automobiles and light trucks.</DELETED>
        <DELETED>    ``(3) Progress toward standard required.--In 
        prescribing average fuel economy standards under paragraph (1), 
        the Secretary shall prescribe appropriate annual fuel economy 
        standard increases for passenger automobiles and light trucks 
        that--</DELETED>
                <DELETED>    ``(A) increase the applicable average fuel 
                economy standard ratably beginning with model year 2010 
                and ending with model year 2019;</DELETED>
                <DELETED>    ``(B) require that each manufacturer 
                achieve--</DELETED>
                        <DELETED>    ``(i) a fuel economy standard for 
                        passenger automobiles manufactured by that 
                        manufacturer of at least 29.5 miles per gallon 
                        not later than model year 2010; and</DELETED>
                        <DELETED>    ``(ii) a fuel economy standard for 
                        light trucks manufactured by that manufacturer 
                        of at least 23.5 miles per gallon not later 
                        than model year 2010.</DELETED>
        <DELETED>    ``(4) Fuel economy baseline for passenger 
        automobiles.--Notwithstanding the maximum feasible average fuel 
        economy level established by regulations prescribed under 
        subsection (c), the minimum fleetwide average fuel economy 
        standard for passenger automobiles manufactured by a 
        manufacturer in a model year for that manufacturer's domestic 
        fleet and foreign fleet, as calculated under section 32904 as 
        in effect before the date of the enactment of the Ten-in-Ten 
        Fuel Economy Act, shall be the greater of--</DELETED>
                <DELETED>    ``(A) 27.5 miles per gallon; or</DELETED>
                <DELETED>    ``(B) 92 percent of the average fuel 
                economy projected by the Secretary for the combined 
                domestic and foreign fleets manufactured by all 
                manufacturers in that model year.</DELETED>
        <DELETED>    ``(5) Deadline for regulations.--The Secretary 
        shall promulgate the regulations required by paragraphs (1) and 
        (2) in final form not later than 18 months after the date of 
        the enactment of the Ten-in-Ten Fuel Economy Act.''.</DELETED>

<DELETED>SEC. 3. PASSENGER CAR PROGRAM REFORM.</DELETED>

<DELETED>    Section 32902(c) of title 49, United States Code, is 
amended to read as follows:</DELETED>
<DELETED>    ``(c) Amending Passenger Automobile Standards.--Not later 
than 18 months before the beginning of each model year, the Secretary 
of Transportation may prescribe regulations amending a standard 
prescribed under subsection (b) for a model year to a level that the 
Secretary determines to be the maximum feasible average fuel economy 
level for that model year. Section 553 of title 5 applies to a 
proceeding to amend any standard prescribed under subsection (b). Any 
interested person may make an oral presentation and a transcript shall 
be taken of that presentation. The Secretary may prescribe separate 
standards for different classes of passenger automobiles.''.</DELETED>

<DELETED>SEC. 4. DEFINITION OF WORK TRUCK.</DELETED>

<DELETED>    (a) Definition of Work Truck.--Section 32901(a) of title 
49 is amended by adding at the end the following:</DELETED>
        <DELETED>    ``(17) `work truck' means an automobile that the 
        Secretary determines by regulation--</DELETED>
                <DELETED>    ``(A) is rated at between 8,500 and 10,000 
                pounds gross vehicle weight; and</DELETED>
                <DELETED>    ``(B) is not a medium-duty passenger 
                vehicle (as defined in section 86.1803-01 of title 40, 
                Code of Federal Regulations).''.</DELETED>
<DELETED>    (b) Deadline for Regulations.--The Secretary of 
Transportation--</DELETED>
        <DELETED>    (1) shall issue proposed regulations implementing 
        the amendment made by subsection (a) not later than 1 year 
        after the date of the enactment of this Act; and</DELETED>
        <DELETED>    (2) shall issue final regulations implementing the 
        amendment not later than 18 months after the date of the 
        enactment of this Act.</DELETED>
<DELETED>    (c) Fuel Economy Standards for Work Trucks.--The Secretary 
of Transportation, in consultation with the Administrator of the 
Environmental Protection Agency, shall prescribe standards to achieve 
the maximum feasible fuel economy for work trucks (as defined in 
section 32901(a)(17) of title 49, United States Code) manufactured by a 
manufacturer in each model year beginning with model year 
2013.</DELETED>

<DELETED>SEC. 5. DEFINITION OF LIGHT TRUCK.</DELETED>

<DELETED>    (a) Definition of Light Truck.--</DELETED>
        <DELETED>    (1) In general.--Section 32901(a) of title 49, 
        United States Code, is amended by inserting after paragraph 
        (11) the following:</DELETED>
        <DELETED>    ``(11) `light truck' means an automobile that the 
        Secretary determines by regulation--</DELETED>
                <DELETED>    ``(A) is manufactured primarily for 
                transporting not more than 10 individuals;</DELETED>
                <DELETED>    ``(B) is rated at not more than 10,000 
                pounds gross vehicle weight;</DELETED>
                <DELETED>    ``(C) is not a passenger automobile; 
                and</DELETED>
                <DELETED>    ``(D) is not a work truck.''.</DELETED>
        <DELETED>    (2) Deadline for regulations.--The Secretary of 
        Transportation--</DELETED>
                <DELETED>    (A) shall issue proposed regulations 
                implementing the amendment made by paragraph (1) not 
                later than 1 year after the date of the enactment of 
                this Act; and</DELETED>
                <DELETED>    (B) shall issue final regulations 
                implementing the amendment not later than 18 months 
                after the date of the enactment of this Act.</DELETED>
        <DELETED>    (3) Effective date.--Regulations prescribed under 
        paragraph (1) shall apply beginning with model year 
        2010.</DELETED>
<DELETED>    (b) Applicability of Existing Standards.--This section 
does not affect the application of section 32902 of title 49, United 
States Code, to passenger automobiles or non-passenger automobiles 
manufactured before model year 2010.</DELETED>
<DELETED>    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of Transportation $25,000,000 for 
each of fiscal years 2009 through 2021 to carry out the provisions of 
chapter 329 of title 49, United States Code.</DELETED>

<DELETED>SEC. 6. ENSURING SAFETY OF PASSENGER AUTOMOBILES AND LIGHT 
              TRUCKS.</DELETED>

<DELETED>    (a) In General.--The Secretary of Transportation shall 
exercise such authority under Federal law as the Secretary may have to 
ensure that--</DELETED>
        <DELETED>    (1) passenger automobiles and light trucks (as 
        such terms are defined in section 32901 of title 49, United 
        States Code) are safe;</DELETED>
        <DELETED>    (2) progress is made in improving the overall 
        safety of passenger automobiles and light trucks; and</DELETED>
        <DELETED>    (3) progress is made in maximizing United States 
        employment.</DELETED>
<DELETED>    (b) Vehicle Safety.--Subchapter II of chapter 301 of title 
49, United States Code, is amended by adding at the end the 
following:</DELETED>
<DELETED>``Sec. 30129. Vehicle compatibility and aggressivity reduction 
              standard</DELETED>
<DELETED>    ``(a) Standards.--The Secretary of Transportation shall 
issue a motor vehicle safety standard to reduce vehicle incompatibility 
and aggressivity between passenger vehicles and non-passenger vehicles. 
The standard shall address characteristics necessary to ensure better 
management of crash forces in multiple vehicle frontal and side impact 
crashes between different types, sizes, and weights of vehicles with a 
gross vehicle weight of 10,000 pounds or less in order to decrease 
occupant deaths and injuries.</DELETED>
<DELETED>    ``(b) Consumer Information.--The Secretary shall develop 
and implement a public information side and frontal compatibility crash 
test program with vehicle ratings based on risks to occupants, risks to 
other motorists, and combined risks by vehicle make and 
model.''.</DELETED>
<DELETED>    (c) Rulemaking Deadlines.--</DELETED>
        <DELETED>    (1) Rulemaking.--The Secretary of Transportation 
        shall issue--</DELETED>
                <DELETED>    (A) a notice of a proposed rulemaking 
                under section 30129 of title 49, United States Code, 
                not later than January 1, 2010; and</DELETED>
                <DELETED>    (B) a final rule under such section not 
                later than December 31, 2011.</DELETED>
        <DELETED>    (2) Effective date of requirements.--Any 
        requirement imposed under the final rule issued under paragraph 
        (1) shall become fully effective not later than September 1, 
        2013.</DELETED>
<DELETED>    (d) Conforming Amendment.--The chapter analysis for 
chapter 301 is amended by inserting after the item relating to section 
30128 the following:</DELETED>

<DELETED>``30129. Vehicle compatibility and aggressivity reduction 
                            standard.''.

<DELETED>SEC. 7. ONBOARD FUEL ECONOMY INDICATORS AND DEVICES.</DELETED>

<DELETED>    (a) In General.--Chapter 329 of title 49, United States 
Code, is amended by adding at the end the following:</DELETED>
<DELETED>``Sec. 32920. Fuel economy indicators and devices</DELETED>
<DELETED>    ``(a) In General.--The Secretary of Transportation, in 
consultation with the Administrator of the Environmental Protection 
Agency, shall prescribe a fuel economy standard for passenger 
automobiles and light trucks manufactured by a manufacturer in each 
model year beginning with model year 2014 that requires each such 
automobile and light truck to be equipped with--</DELETED>
        <DELETED>    ``(1) an onboard electronic instrument that 
        provides real-time and cumulative fuel economy data;</DELETED>
        <DELETED>    ``(2) an onboard electronic instrument that 
        signals a driver when inadequate tire pressure may be affecting 
        fuel economy; and</DELETED>
        <DELETED>    ``(3) a device that will allow drivers to place 
        the automobile or light truck in a mode that will automatically 
        produce greater fuel economy.</DELETED>
<DELETED>    ``(b) Exception.--Subsection (a) shall not apply to any 
vehicle that is not subject to an average fuel economy standard under 
section 32902(b).</DELETED>
<DELETED>    ``(c) Enforcement.--Subchapter IV of chapter 301 of this 
title shall apply to a fuel economy standard prescribed under 
subsection (a) to the same extent and in the same manner as if that 
standard were a motor vehicle safety standard under chapter 
301.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The chapter analysis for 
chapter 329 of title 49, United States Code, is amended by inserting 
after the item relating to section 32919 the following:</DELETED>

<DELETED>``32920. Fuel economy indicators and devices.''.

<DELETED>SEC. 8. SECRETARY OF TRANSPORTATION TO CERTIFY 
              BENEFITS.</DELETED>

<DELETED>    Beginning with model year 2010, the Secretary of 
Transportation, in consultation with the Administrator of the 
Environmental Protection Agency, shall annually determine and certify 
to Congress the reduction in United States consumption of gasoline and 
petroleum distillates used for vehicle fuel and the reduction in 
greenhouse gas emissions during the most recent year that are properly 
attributable to the implementation of the average fuel economy 
standards imposed under section 32902 of title 49, United States Code, 
as a result of the amendments made by this Act.</DELETED>

<DELETED>SEC. 9. CREDIT TRADING PROGRAM.</DELETED>

<DELETED>    Section 32903 of title 49, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by striking ``passenger'' each place it 
        appears;</DELETED>
        <DELETED>    (2) by striking ``section 32902(b)-(d) of this 
        title'' each place it appears and inserting ``subsection (a), 
        (c), or (d) of section 32902'';</DELETED>
        <DELETED>    (3) in subsection (a)(2), by striking ``clause (1) 
        of this subsection'' and inserting ``paragraph (1)''; 
        and</DELETED>
        <DELETED>    (4) by amending subsection (e) to read as 
        follows:</DELETED>
<DELETED>    ``(e) Credit Trading Among Manufacturers.--The Secretary 
of Transportation may establish, by regulation, a corporate average 
fuel economy credit trading program to allow manufacturers whose 
automobiles exceed the average fuel economy standards prescribed under 
section 32902 to earn credits to be sold to manufacturers whose 
automobiles fail to achieve the prescribed standards.''.</DELETED>

<DELETED>SEC. 10. REPORT TO CONGRESS.</DELETED>

<DELETED>    Not later than December 31, 2014, the Secretary of 
Transportation shall submit to Congress a report on the progress made 
by the automobile manufacturing industry towards meeting the 35 miles 
per gallon average fuel economy standard required under section 
32902(b)(1) of title 49, United States Code.</DELETED>

<DELETED>SEC. 11. LABELS FOR FUEL ECONOMY AND GREENHOUSE GAS 
              EMISSIONS.</DELETED>

<DELETED>    Section 32908 of title 49, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in subsection (a)(1), by striking ``of this 
        title'' and inserting ``and a light truck manufactured by a 
        manufacturer in a model year after model year 2010; 
        and'';</DELETED>
        <DELETED>    (2) in subsection (b)--</DELETED>
                <DELETED>    (A) in paragraph (1)--</DELETED>
                        <DELETED>    (i) by redesignating subparagraph 
                        (F) as subparagraph (H); and</DELETED>
                        <DELETED>    (ii) by inserting after 
                        subparagraph (E) the following:</DELETED>
        <DELETED>    ``(F) a label (or a logo imprinted on a label 
        required by this paragraph) that--</DELETED>
                <DELETED>    ``(i) reflects an automobile's performance 
                on the basis of criteria developed by the Administrator 
                to reflect the fuel economy and greenhouse gas and 
                other emissions consequences of operating the 
                automobile over its likely useful life;</DELETED>
                <DELETED>    ``(ii) permits consumers to compare 
                performance results under clause (i) among all 
                passenger automobiles and light duty trucks; 
                and</DELETED>
                <DELETED>    ``(iii) is designed to encourage the 
                manufacture and sale of passenger automobiles and light 
                trucks that meet or exceed applicable fuel economy 
                standards under section 32902.</DELETED>
        <DELETED>    ``(G) a fuelstar under paragraph (5).''; 
        and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
<DELETED>    ``(4) Green Label Program.--</DELETED>
        <DELETED>    ``(A) Marketing analysis.--Not later than 2 years 
        after the date of the enactment of the Ten-in-Ten Fuel Economy 
        Act, the Administrator shall complete a study of social 
        marketing strategies with the goal of maximizing consumer 
        understanding of point-of-sale labels or logos described in 
        paragraph (1)(F).</DELETED>
        <DELETED>    ``(B) Eligibility.--Not later than 3 years after 
        the date described in subparagraph (A), the Administrator shall 
        issue requirements for the label or logo required under 
        paragraph (1)(F) to ensure that a passenger automobile or light 
        truck is not eligible for the label or logo unless it--
        </DELETED>
                <DELETED>    ``(i) meets or exceeds the applicable fuel 
                economy standard; or</DELETED>
                <DELETED>    ``(ii) will have the lowest greenhouse gas 
                emissions over the useful life of the vehicle of all 
                vehicles in the vehicle class to which it belongs in 
                that model year.</DELETED>
        <DELETED>    ``(C) Criteria.--In developing criteria for the 
        label or logo, the Administrator shall also consider, among 
        others as appropriate, the following factors:</DELETED>
                <DELETED>    ``(i) The recyclability of the 
                automobile.</DELETED>
                <DELETED>    ``(ii) Any other pollutants or harmful 
                byproducts related to the automobile, which may include 
                those generated during manufacture of the automobile, 
                those issued during use of the automobile, or those 
                generated after the automobile ceases to be 
                operated.</DELETED>
<DELETED>    ``(5) Fuelstar Program.--</DELETED>
        <DELETED>    ``(A) In general.--The Secretary shall establish a 
        program, to be known as the `Fuelstar Program', under which 
        stars shall be imprinted on or attached to the label required 
        by paragraph (1).</DELETED>
        <DELETED>    ``(B) Green stars.--Under the Fuelstar Program, a 
        manufacturer may include on the label maintained on an 
        automobile under paragraph (1)--</DELETED>
                <DELETED>    ``(i) 1 green star for any automobile that 
                meets the average fuel economy standard for the model 
                year under section 32902; and</DELETED>
                <DELETED>    ``(ii) 1 additional green star for each 2 
                miles per gallon by which the automobile exceeds such 
                standard.</DELETED>
        <DELETED>    ``(C) Gold stars.--Under the Fuelstar Program, a 
        manufacturer may include a gold star on the label maintained on 
        an automobile under paragraph (1) if--</DELETED>
                <DELETED>    ``(i) in the case of a passenger 
                automobile, the automobile attains a fuel economy of at 
                least 50 miles per gallon; and</DELETED>
                <DELETED>    ``(ii) in the case of a light truck, the 
                truck attains a fuel economy of at least 37 miles per 
                gallon.''.</DELETED>

           TITLE I--CORPORATE AVERAGE FUEL ECONOMY STANDARDS

SEC. 101. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This title may be cited as the ``Ten-in-Ten Fuel 
Economy Act''.
    (b) Table of Contents.--The table of contents for this title is as 
follows:

           TITLE I--CORPORATE AVERAGE FUEL ECONOMY STANDARDS

Sec. 101. Short title; table of contents.
Sec. 102. Average fuel economy standards for automobiles, medium-duty 
                            trucks, and heavy duty trucks.
Sec. 103. Amending fuel economy standards.
Sec. 104. Definitions.
Sec. 105. Ensuring safety of automobiles.
Sec. 106. Credit trading program.
Sec. 107. Labels for fuel economy and greenhouse gas emissions.
Sec. 108. Continued applicability of existing standards.
Sec. 109. National Academy of Sciences studies.
Sec. 110. Standards for executive agency automobiles.
Sec. 111. Ensuring availability of flexible fuel vehicles.
Sec. 112. Increasing consumer awareness of flexible fuel vehicles.
Sec. 113. Periodic review of accuracy of fuel economy labeling 
                            procedures.
Sec. 114. Tire fuel efficiency consumer information.
Sec. 115. Advanced battery initiative.
Sec. 116. Biodiesel standards.
Sec. 117. Use of civil penalties for research and development.
Sec. 118. Energy security fund and alternative fuel grant program.
Sec. 119. Authorization of appropriations.

SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES, MEDIUM-DUTY 
              TRUCKS, AND HEAVY DUTY TRUCKS.

    (a) Increased Standards.--Section 32902 of title 49, United States 
Code, is amended--
            (1) by striking ``Non-Passenger Automobiles.--'' in 
        subsection (a) and inserting ``Prescription of Standards by 
        Regulation.--'';
            (2) by striking ``automobiles (except passenger 
        automobiles)'' in subsection (a) and inserting ``automobiles, 
        medium-duty trucks, and heavy-duty trucks''; and
            (3) by striking subsection (b) and inserting the following:
    ``(b) Standards for Automobiles, Medium-Duty Trucks, and Heavy-Duty 
Trucks.--
            ``(1) In general.--The Secretary of Transportation, after 
        consultation with the Administrator of the Environmental 
        Protection Agency, shall prescribe average fuel economy 
        standards for automobiles, medium-duty trucks, and heavy-duty 
        trucks manufactured by a manufacturer in each model year 
        beginning with model year 2011 in accordance with subsection 
        (c).
            ``(2) Annual increases in fuel economy standards.--
                    ``(A) Baseline average fuel economy standards for 
                medium- and heavy-duty trucks.--For the first 2 model 
                years beginning after the submission to Congress of the 
                initial report by the National Academy of Sciences 
                required by section 10 of the Ten-in-Ten Act, the 
                average fuel economy required to be attained for each 
                attribute class of medium-duty trucks and heavy-duty 
                trucks shall be the average combined highway and city 
                miles-per-gallon performance of all vehicles within 
                that class in the model year immediately preceding the 
                first of those 2 model years (rounded to the nearest 
                \1/10\ mile per gallon).
                    ``(B) Medium- and heavy-duty truck fuel economy 
                average after baseline model year.--For each model year 
                beginning after the 2 model years specified in 
                subparagraph (A), the average fuel economy required to 
                be attained by the fleet of medium-duty trucks and 
                heavy-duty trucks manufactured in the United States 
                shall be at least 4 percent greater than the average 
                fuel economy required to be attained for the fleet in 
                the previous model year (rounded to the nearest \1/10\ 
                mile per gallon). Standards shall be issued for medium-
                duty trucks and heavy-duty trucks for 20 model years.
            ``(3) Fuel economy target for automobiles.--
                    ``(A) Automobile fuel economy average for model 
                years 2011 through 2020.--The Secretary shall prescribe 
                average fuel economy standards for automobiles in each 
                model year beginning with model year 2011 to achieve a 
                combined fuel economy standard for model year 2020 of 
                at least 35 miles per gallon for the fleet of 
                automobiles manufactured or sold in the United States. 
                The average fuel economy standards prescribed by the 
                Secretary shall be the maximum feasible average fuel 
                economy standards for model years 2011 through 2019.
                    ``(B) Automobile fuel economy average for model 
                years 2021 through 2030.--For model years 2021 through 
                2030, the average fuel economy required to be attained 
                by the fleet of automobiles manufactured or sold in the 
                United States shall be at least 4 percent greater than 
                the average fuel economy standard required to be 
                attained for the fleet in the previous model year 
                (rounded to the nearest \1/10\ mile per gallon).''.
    (b) Authority of Secretary.--Section 32902 of title 49, United 
States Code, is amended by adding at the end thereof the following:
    ``(k) Authority of the Secretary.--
            ``(1) Vehicle attributes.--The authority of the Secretary 
        to prescribe by regulation average fuel economy standards for 
        automobiles, medium-duty trucks, and heavy-duty trucks under 
        this section includes the authority--
                    ``(A) to prescribe standards based on vehicle 
                attributes and to express the standards in the form of 
                a mathematical function; and
                    ``(B) to issue regulations under this title 
                prescribing average fuel economy standards for 1 or 
                more model years.
            ``(2) Prohibition of uniform percentage increase.--When the 
        Secretary prescribes a standard, or prescribes an amendment 
        under this section that changes a standard, the standard may 
        not be expressed as a uniform percentage increase from the 
        fuel-economy performance of attribute classes or categories 
        already achieved in a model year by a manufacturer.''.

SEC. 103. AMENDING FUEL ECONOMY STANDARDS.

    (a) In General.--Section 32902(c) of title 49, United States Code, 
is amended to read as follows:
    ``(c) Amending Fuel Economy Standards.--
            ``(1) In general.--Notwithstanding subsections (a) and (b), 
        the Secretary of Transportation--
                    ``(A) may prescribe a standard higher than that 
                required under subsection (b); or
                    ``(B) may prescribe an average fuel economy 
                standard for a class of automobiles, medium-duty 
                trucks, or heavy-duty trucks that is the maximum 
                feasible level for the model year, despite being lower 
                than the standard required under subsection (b), if the 
                Secretary determines, based on clear and convincing 
                evidence, that the average fuel economy standard 
                prescribed in accordance with subsections (a) and (b) 
                for that class of vehicles in that model year is shown 
                not to be cost-effective.
            ``(2) Requirements for lower standard.--Before adopting an 
        average fuel economy standard for a class of automobiles, 
        medium-duty trucks, or heavy-duty trucks in a model year under 
        paragraph (1)(B), the Secretary of Transportation shall do the 
        following:
                    ``(A) Notice of proposed rule.--Except for 
                standards to be promulgated by 2011, at least 30 months 
                before the model year for which the standard is to 
                apply, the Secretary shall post a notice of proposed 
                rulemaking for the proposed standard. The notice shall 
                include a detailed analysis of the basis for the 
                Secretary's determination under paragraph (1)(B).
                    ``(B) Final rule.--At least 18 months before the 
                model year for which the standard is to apply, the 
                Secretary shall promulgate a final rule establishing 
                the standard.
                    ``(C) Report.--The Secretary shall submit a report 
                to Congress that outlines the steps that need to be 
                taken to avoid further reductions in average fuel 
                economy standards.
            ``(3) Maximum feasible standard.--An average fuel economy 
        standard prescribed for a class of automobiles, medium-duty 
        trucks, or heavy-duty trucks in a model year under paragraph 
        (1) shall be the maximum feasible standard.''.
    (b) Feasibility Criteria.--Section 32902(f) of title 49, United 
States Code, is amended to read as follows:
    ``(f) Decisions on Maximum Feasible Average Fuel Economy.--
            ``(1) In general.--When deciding maximum feasible average 
        fuel economy under this section, the Secretary shall consider--
                    ``(A) economic practicability;
                    ``(B) the effect of other motor vehicle standards 
                of the Government on fuel economy;
                    ``(C) environmental impacts; and
                    ``(D) the need of the United States to conserve 
                energy.
            ``(2) Limitations.--In setting any standard under 
        subsection (b), (c), or (d), the Secretary shall ensure that 
        each standard is the highest standard that--
                    ``(A) is technologically achievable;
                    ``(B) can be achieved without materially reducing 
                the overall safety of automobiles, medium-duty trucks, 
                and heavy-duty trucks manufactured or sold in the 
                United States;
                    ``(C) is not less than the standard for that class 
                of vehicles from any prior year; and
                    ``(D) is cost-effective.
            ``(3) Determining cost-effectiveness.--
                    ``(A) In general.--In determining cost 
                effectiveness under paragraph (2)(D), the Secretary 
                shall take into account the total value to the United 
                States of reduced fuel use, including the monetary 
                value of the reduced fuel use over the life of the 
                vehicle.
                    ``(B) Additional factors for consideration by 
                secretary.--The Secretary shall consider in the 
                analysis the following factors:
                            ``(i) Economic security.
                            ``(ii) The impact of the oil or energy 
                        intensity of the United States economy on the 
                        sensitivity of the economy to oil and other 
                        fuel price changes, including the magnitude of 
                        gross domestic product losses in response to 
                        short term price shocks or long term price 
                        increases.
                            ``(iii) National security, including the 
                        impact of United States payments for oil and 
                        other fuel imports on political, economic, and 
                        military developments in unstable or unfriendly 
                        oil-exporting countries.
                            ``(iv) The uninternalized costs of pipeline 
                        and storage oil seepage, and for risk of oil 
                        spills from production, handling, and 
                        transport, and related landscape damage.
                            ``(v) The emissions of pollutants including 
                        greenhouse gases over the lifecycle of the fuel 
                        and the resulting costs to human health, the 
                        economy, and the environment.
                            ``(vi) Such additional factors as the 
                        Secretary deems relevant.
            ``(4) Minimum valuation.--When considering the value to 
        consumers of a gallon of gasoline saved, the Secretary of 
        Transportation shall use as a minimum value the value of the 
        gasoline prices projected by the Energy Information 
        Administration for the period covered by the standard beginning 
        in the year following the year in which the standards are 
        established.
            ``(5) Cost-effective defined.--In this subsection, the term 
        `cost-effective' means that the total value to the United 
        States of reduced fuel use from a proposed fuel economy 
        standard is greater than or equal to the total cost to the 
        United States of such standard. Notwithstanding this 
        definition, the Secretary shall not base the level of any 
        standard on any technology whose cost to the United States is 
        substantially more than the value to the United States of the 
        reduction in fuel use attributable to that technology.''.
    (c) Consultation Requirement.--Section 32902(i) of title 49, United 
States Code, is amended by inserting ``and the Administrator of the 
Environmental Protection Agency'' after ``Energy''.
    (d) Comments.--Section 32902(j) of title 49, United States Code, is 
amended--
            (1) by striking paragraph (1) and inserting ``(1) Before 
        issuing a notice proposing to prescribe or amend an average 
        fuel economy standard under subsection (b), (c), or (g) of this 
        section, the Secretary of Transportation shall give the 
        Secretary of Energy and Administrator of the Environmental 
        Protection Agency at least 10 days after the receipt of the 
        notice during which the Secretary of Energy and Administrator 
        may, if the Secretary of Energy or Administrator concludes that 
        the proposed standard would adversely affect the conservation 
        goals of the Secretary of Energy or environmental protection 
        goals of the Administrator, provide written comments to the 
        Secretary of Transportation about the impact of the standard on 
        those goals. To the extent the Secretary of Transportation does 
        not revise a proposed standard to take into account comments of 
        the Secretary of Energy or Administrator on any adverse impact 
        of the standard, the Secretary of Transportation shall include 
        those comments in the notice.''; and
            (2) by inserting ``and the Administrator'' after ``Energy'' 
        each place it appears in paragraph (2).
    (e) Technical and Conforming Amendments.--
            (1) Section 32902(d) of title 49, United States Code, is 
        amended by striking ``passenger'' each place it appears.
            (2) Section 32902(g) of title 49, United States Code, is 
        amended--
                    (A) by striking ``subsection (a) or (d)'' each 
                place it appears in paragraph (1) and inserting 
                ``subsection (b), (c), or (d)''; and
                    (B) striking ``(and submit the amendment to 
                Congress when required under subsection (c)(2) of this 
                section)'' in paragraph (2).

SEC. 104. DEFINITIONS.

    (a) In General.--Section 32901(a) of title 49, United States Code, 
is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) except as provided in section 32908 of this title, 
        `automobile' means a 4-wheeled vehicle that is propelled by 
        fuel, or by alternative fuel, manufactured primarily for use on 
        public streets, roads, and highways (except a vehicle operated 
        only on a rail line), and rated at not more than 10,000 pounds 
        gross vehicle weight.'';
            (2) by inserting after paragraph (10) the following:
            ``(10A) `heavy-duty truck' means a truck (as defined in 
        section 30127) with a gross vehicle weight in excess of 26,000 
        pounds.'';
            (3) by inserting after paragraph (13) the following:
            ``(13A) `medium-duty truck' means a truck (as defined in 
        section 30127) with a gross vehicle weight of at least 10,000 
        pounds but not more than 26,000 pounds.''; and
            (4) by striking paragraph (16).
    (b) Deadline for Regulations.--The Secretary of Transportation--
            (1) shall issue proposed regulations implementing the 
        amendments made by subsection (a) not later than 1 year after 
        the date of the enactment of this Act; and
            (2) shall issue final regulations implementing the 
        amendments not later than 18 months after the date of the 
        enactment of this Act.
    (c) Effective Date.--Regulations prescribed under subsection (b) 
shall apply beginning with model year 2010.

SEC. 105. ENSURING SAFETY OF AUTOMOBILES.

    (a) In General.--The Secretary of Transportation shall exercise 
such authority under Federal law as the Secretary may have to ensure 
that automobiles (as defined in section 32901 of title 49, United 
States Code) are safe.
    (b) Vehicle Safety.--Subchapter II of chapter 301 of title 49, 
United States Code, is amended by adding at the end the following:
``Sec. 30129. Vehicle compatibility and aggressivity reduction standard
    ``(a) Standards.--The Secretary of Transportation shall issue a 
motor vehicle safety standard to reduce automobile incompatibility and 
aggressivity. The standard shall address characteristics necessary to 
ensure better management of crash forces in multiple vehicle frontal 
and side impact crashes between different types, sizes, and weights of 
automobiles with a gross vehicle weight of 10,000 pounds or less in 
order to decrease occupant deaths and injuries.
    ``(b) Consumer Information.--The Secretary shall develop and 
implement a public information side and frontal compatibility crash 
test program with vehicle ratings based on risks to occupants, risks to 
other motorists, and combined risks by vehicle make and model.''.
    (c) Rulemaking Deadlines.--
            (1) Rulemaking.--The Secretary of Transportation shall 
        issue--
                    (A) a notice of a proposed rulemaking under section 
                30129 of title 49, United States Code, not later than 
                January 1, 2010; and
                    (B) a final rule under such section not later than 
                December 31, 2012.
            (2) Effective date of requirements.--Any requirement 
        imposed under the final rule issued under paragraph (1) shall 
        become fully effective not later than September 1, 2013.
    (d) Conforming Amendment.--The chapter analysis for chapter 301 is 
amended by inserting after the item relating to section 30128 the 
following:

``30129. Vehicle compatibility and aggressivity reduction standard.''.

SEC. 106. CREDIT TRADING PROGRAM.

    Section 32903 of title 49, United States Code, is amended--
            (1) by striking ``passenger'' each place it appears;
            (2) by striking ``section 32902(b)-(d) of this title'' each 
        place it appears and inserting ``subsection (a), (c), or (d) of 
        section 32902'';
            (3) by striking ``3 consecutive model years'' in 
        subsections (a)(1) and (a)(2) and inserting ``5 consecutive 
        model years'';
            (4) in subsection (a)(2), by striking ``clause (1) of this 
        subsection,'' and inserting ``paragraph (1)''; and
            (5) by striking ``3 model years'' in subsection (b)(2) and 
        inserting ``5 model years''; and
            (6) by striking subsection (e) and inserting the following:
    ``(e) Credit Trading Among Manufacturers.--The Secretary of 
Transportation may establish, by regulation, a corporate average fuel 
economy credit trading program to allow manufacturers whose automobiles 
exceed the average fuel economy standards prescribed under section 
32902 to earn credits to be sold to manufacturers whose automobiles 
fail to achieve the prescribed standards.''.

SEC. 107. LABELS FOR FUEL ECONOMY AND GREENHOUSE GAS EMISSIONS.

    Section 32908 of title 49, United States Code, is amended--
            (1) by redesignating subparagraph (F) of subsection (b)(1) 
        as subparagraph (H) and inserting after subparagraph (E) the 
        following:
            ``(F) a label (or a logo imprinted on a label required by 
        this paragraph) that--
                    ``(i) reflects an automobile's performance on the 
                basis of criteria developed by the Administrator to 
                reflect the fuel economy and greenhouse gas and other 
                emissions consequences of operating the automobile over 
                its likely useful life;
                    ``(ii) permits consumers to compare performance 
                results under clause (i) among all automobiles; and
                    ``(iii) is designed to encourage the manufacture 
                and sale of automobiles that meet or exceed applicable 
                fuel economy standards under section 32902.
            ``(G) a fuelstar under paragraph (5).''; and
            (2) by adding at the end of subsection (b) the following:
    ``(4) Green label program.--
            ``(A) Marketing analysis.--Not later than 2 years after the 
        date of the enactment of the Ten-in-Ten Fuel Economy Act, the 
        Administrator shall implement a consumer education program and 
        execute marketing strategies to improve consumer understanding 
        of automobile performance described in paragraph (1)(F).
            ``(B) Eligibility.--Not later than 3 years after the date 
        described in subparagraph (A), the Administrator shall issue 
        requirements for the label or logo required under paragraph 
        (1)(F) to ensure that an automobile is not eligible for the 
        label or logo unless it--
                    ``(i) meets or exceeds the applicable fuel economy 
                standard; or
                    ``(ii) will have the lowest greenhouse gas 
                emissions over the useful life of the vehicle of all 
                vehicles in the vehicle attribute class to which it 
                belongs in that model year.
    ``(5) Fuelstar program.--
            ``(A) In general.--The Secretary shall establish a program, 
        to be known as the `Fuelstar Program', under which stars shall 
        be imprinted on or attached to the label required by paragraph 
        (1).
            ``(B) Green stars.--Under the Fuelstar Program, a 
        manufacturer may include on the label maintained on an 
        automobile under paragraph (1)--
                    ``(i) 1 green star for any automobile that meets 
                the average fuel economy standard for the model year 
                under section 32902; and
                    ``(ii) 1 additional green star for each 2 miles per 
                gallon by which the automobile exceeds such standard.
            ``(C) Gold stars.--Under the Fuelstar Program, a 
        manufacturer may include a gold star on the label maintained on 
        an automobile under paragraph (1) if the automobile attains a 
        fuel economy of at least 50 miles per gallon.''.

SEC. 108. CONTINUED APPLICABILITY OF EXISTING STANDARDS.

    Nothing in this title, or the amendments made by this title, shall 
be construed to affect the application of section 32902 of title 49, 
United States Code, to passenger automobiles or non-passenger 
automobiles manufactured before model year 2011.

SEC. 109. NATIONAL ACADEMY OF SCIENCES STUDIES.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary of Transportation shall execute an agreement 
with the National Academy of Sciences to develop a report evaluating 
vehicle fuel economy standards, including--
            (1) an assessment of automotive technologies and costs to 
        reflect developments since the Academy's 2002 report evaluating 
        the corporate average fuel economy standards was conducted;
            (2) an analysis of existing and potential technologies that 
        may be used practically to improve automobile, medium-duty 
        truck, or heavy-duty truck fuel economy;
            (3) an analysis of how such technologies may be practically 
        integrated into the automotive, medium-duty truck, or heavy-
        duty truck manufacturing process; and
            (4) an assessment of how such technologies may be used to 
        meet the new fuel economy standards under chapter 329 of title 
        49, United States Code, as amended by this title.
    (b) Quinquennial Updates.--After submitting the initial report, the 
Academy shall update the report at 5 year intervals thereafter through 
2025.
    (c) Report.--The Academy shall submit the report to the Secretary, 
the Senate Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Energy and Commerce, with its 
findings and recommendations no later than 18 months after the date on 
which the Secretary executes the agreement with the Academy.

SEC. 110. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.

    (a) In General.--Section 32917 of title 49, United States Code, is 
amended to read as follows:
``Sec. 32917. Standards for executive agency automobiles
    ``(a) Fuel Efficiency.--The head of an Executive agency shall 
ensure that each new automobile procured by the Executive agency is as 
fuel efficient as practicable.
    ``(b) Definitions.--In this section:
            ``(1) Executive agency.--The term `Executive agency' has 
        the meaning given that term in section 105 of title 5.
            ``(2) New automobile.--The term `new automobile', with 
        respect to the fleet of automobiles of an executive agency, 
        means an automobile that is leased for at least 60 consecutive 
        days or bought, by or for the Executive agency, after September 
        30, 2008. The term does not include any vehicle designed for 
        combat-related missions, law enforcement work, or emergency 
        rescue work.''.
    (b) Report.--The Administrator of the General Services 
Administration shall develop a report describing and evaluating the 
efforts of the heads of the Executive agencies to comply with section 
32917 of title 49, United States Code, for fiscal year 2009. The 
Administrator shall submit the report to Congress no later than 
December 31, 2009.

SEC. 111. ENSURING AVAILABILITY OF FLEXIBLE FUEL AUTOMOBILES.

    (a) Amendment.--
            (1) In general.--Chapter 329 of title 49, United States 
        Code, is amended by inserting after section 32902 the 
        following:
``Sec. 32902A. Requirement to manufacture flexible fuel automobiles
    ``(a) In General.--For each model year, each manufacturer of new 
automobiles described in subsection (b) shall ensure that the 
percentage of such automobiles manufactured in a particular model year 
that are flexible fuel vehicles shall be not less than the percentage 
set forth for that model year in the following table:

                                    The percentage of flexible fuel
``If the model year is:                 automobiles shall be:
    2012..........................................          50 percent 
    2013..........................................          60 percent 
    2014..........................................          70 percent 
    2015..........................................          80 percent.
    ``(b) Automobiles to Which Section Applies.--An automobile is 
described in this subsection if it--
            ``(1) is capable of operating on gasoline or diesel fuel;
            ``(2) is distributed in interstate commerce for sale in the 
        United States; and
            ``(3) does not contain certain engines that the Secretary 
        of Transportation, in consultation with the Administrator of 
        the Environmental Protection Agency and the Secretary of 
        Energy, may temporarily exclude from the definition because it 
        is technologically infeasible for the engines to have flexible 
        fuel capability at any time during a period that the 
        Secretaries and the Administrator are engaged in an active 
        research program with the vehicle manufacturers to develop that 
        capability for the engines.''.
            (2) Definition of flexible fuel automobile.--Section 
        32901(a) of title 49, United States Code, is amended by 
        inserting after paragraph (8), the following:
            ``(8A) `flexible fuel automobile' means an automobile 
        described in paragraph (8)(A).''.
            (3) Clerical amendment.--The table of sections for chapter 
        329 of title 49, United States Code, is amended by inserting 
        after the item relating to section 32902 the following:

``Sec. 32902A. Requirement to manufacture flexible fuel automobiles.''.
    (b) Rulemaking.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Secretary of Transportation 
        shall issue regulations to carry out the amendments made by 
        subsection (a).
            (2) Hardship exemption.--The regulations issued pursuant to 
        paragraph (1) shall include a process by which a manufacturer 
        may be exempted from the requirement under section 32902A(a) 
        upon demonstrating that such requirement would create a 
        substantial economic hardship for the manufacturer.

SEC. 112. INCREASING CONSUMER AWARENESS OF FLEXIBLE FUEL AUTOMOBILES.

    Section 32908 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(g) Increasing Consumer Awareness of Flexible Fuel Automobiles.--
(1) The Secretary of Transportation shall prescribe regulations that 
require the manufacturer of automobiles distributed in interstate 
commerce for sale in the United States--
            ``(A) to prominently display a permanent badge or emblem on 
        the quarter panel or tailgate of each such automobile that 
        indicates such vehicle is capable of operating on alternative 
        fuel; and
            ``(B) to include information in the owner's manual of each 
        such automobile information that describes--
                    ``(i) the capability of the automobile to operate 
                using alternative fuel;
                    ``(ii) the benefits of using alternative fuel, 
                including the renewable nature, and the environmental 
                benefits of using alternative fuel; and
            ``(C) to contain a fuel tank cap that is clearly labeled to 
        inform consumers that the automobile is capable of operating on 
        alternative fuel.
    ``(2) The Secretary of Transportation shall collaborate with 
autombile retailers to develop voluntary methods for providing 
prospective purchasers of automobiles with information regarding the 
benefits of using alternative fuel in automobiles, including--
            ``(A) the renewable nature of alternative fuel; and
            ``(B) the environmental benefits of using alternative 
        fuel.''.

SEC. 113. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING 
              PROCEDURES.

    Beginning in December, 2009, and not less often than every 5 years 
thereafter, the Secretary of Transportation, in consultation with the 
Administrator of the Environmental Protection Agency, shall--
            (1) reevaluate the fuel economy labeling procedures 
        described in the final rule published in the Federal Register 
        on December 27, 2006 (71 Fed. Reg. 77,872; 40 C.F.R. parts 86 
        and 600) to determine whether changes in the factors used to 
        establish the labeling procedures warrant a revision of that 
        process; and
            (2) submit a report to the Senate Committee on Commerce, 
        Science, and Transportation and the House of Representatives 
        Committee on Energy and Commerce that describes the results of 
        the reevaluation process.

SEC. 114. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.

    (a) In General.--Chapter 301 of title 49, United States Code, is 
amended by inserting after section 30123 the following new section:
``Sec. 30123A. Tire fuel efficiency consumer information
    ``(a) Rulemaking.--
            ``(1) In general.--Not later than 18 months after the date 
        of enactment of the Ten-in-Ten Fuel Economy Act, the Secretary 
        of Transportation shall, after notice and opportunity for 
        comment, promulgate rules establishing a national tire fuel 
        efficiency consumer information program for tires designed for 
        use on motor vehicles to educate consumers about the effect of 
        tires on automobile fuel efficiency.
            ``(2) Items included in rule.--The rulemaking shall 
        include--
                    ``(A) a national tire fuel efficiency rating system 
                for motor vehicle tires to assist consumers in making 
                more educated tire purchasing decisions;
                    ``(B) requirements for providing information to 
                consumers, including information at the point of sale 
                and other potential information dissemination methods, 
                including the Internet;
                    ``(C) specifications for test methods for 
                manufacturers to use in assessing and rating tires to 
                avoid variation among test equipment and manufacturers; 
                and
                    ``(D) a national tire maintenance consumer 
                education program including, information on tire 
                inflation pressure, alignment, rotation, and tread wear 
                to maximize fuel efficiency.
            ``(3) Applicability.--This section shall not apply to tires 
        excluded from coverage under section 575.104(c)(2) of title 49, 
        Code of Federal Regulations, as in effect on date of enactment 
        of the Ten-in-Ten Fuel Economy Act.
    ``(b) Consultation.--The Secretary shall consult with the Secretary 
of Energy and the Administrator of the Environmental Protection Agency 
on the means of conveying tire fuel efficiency consumer information.
    ``(c) Report to Congress.--The Secretary shall conduct periodic 
assessments of the rules promulgated under this section to determine 
the utility of such rules to consumers, the level of cooperation by 
industry, and the contribution to national goals pertaining to energy 
consumption. The Secretary shall transmit periodic reports detailing 
the findings of such assessments to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Energy and Commerce.
    ``(d) Tire Marking.--The Secretary shall not require permanent 
labeling of any kind on a tire for the purpose of tire fuel efficiency 
information.
    ``(e) Preemption.--When a requirement under this section is in 
effect, a State or political subdivision of a State may adopt or 
enforce a law or regulation on tire fuel efficiency consumer 
information only if the law or regulation is identical to that 
requirement. Nothing in this section shall be construed to preempt a 
State or political subdivision of a State from regulating the fuel 
efficiency of tires not otherwise preempted under this chapter.''.
    (b) Enforcement.--Section 30165(a) of title 49, United States Code, 
is amended by adding at the end the following:
            ``(4) Section 30123A.--Any person who fails to comply with 
        the national tire fuel efficiency consumer information program 
        under section 30123A is liable to the United States Government 
        for a civil penalty of not more than $50,000 for each 
        violation.''.
    (c) Conforming Amendment.--The chapter analysis for chapter 301 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 30123 the folllowing:

``30123A. Tire fuel efficiency consumer information.''.

SEC. 115. ADVANCED BATTERY INITIATIVE.

    (a) In General.--The Secretary of Transportation shall establish 
and carry out an Advanced Battery Initiative in accordance with this 
section to support research, development, demonstration, and commercial 
application of battery technologies.
    (b) Industry Alliance.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall competitively select an 
Industry Alliance to represent participants who are private, for-profit 
firms headquartered in the United States, the primary business of which 
is the manufacturing of batteries.
    (c) Research.--
            (1) Grants.--The Secretary shall carry out research 
        activities of the Initiative through competitively-awarded 
        grants to--
                    (A) researchers, including Industry Alliance 
                participants;
                    (B) small businesses;
                    (C) National Laboratories; and
                    (D) institutions of higher education.
            (2) Industry alliance.--The Secretary shall annually 
        solicit from the Industry Alliance--
                    (A) comments to identify advanced battery 
                technology needs relevant to electric drive technology;
                    (B) an assessment of the progress of research 
                activities of the Initiative; and
                    (C) assistance in annually updating advanced 
                battery technology roadmaps.
    (d) Availability to the Public.--The information and roadmaps 
developed under this section shall be available to the public.
    (e) Preference.--In making awards under this subsection, the 
Secretary shall give preference to participants in the Industry 
Alliance.
    (f) Cost Sharing.--In carrying out this section, the Secretary 
shall require cost sharing in accordance with section 120(b) of title 
23, United States Code.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2008 through 2012.

SEC. 116. BIODIESEL STANDARDS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the President, in consultation with the 
Secretary of Transportation, the Secretary of Energy, and the 
Administrator of the Environmental Protection Administration, shall 
promulgate standards for biodiesel blend sold or introduced into 
commerce in the United States.
    (b) Definitions.--In this section:
            (1) Biodiesel.--
                    (A) In general.--The term ``biodiesel'' means the 
                monoalkyl esters of long chain fatty acids derived from 
                plant or animal matter that meet--
                            (i) the registration requirements for fuels 
                        and fuel additives established by the 
                        Environmental Protection Agency under section 
                        211 of the Clean Air Act (42 U.S.C. 7545); and
                            (ii) the requirements of the American 
                        Society of Testing and Materials D6751.
                    (B) Inclusions.--The term ``biodiesel'' includes 
                esters described in subparagraph (A) derived from--
                            (i) animal waste, including poultry fat, 
                        poultry waste, and other waste material; and
                            (ii) municipal solid waste, sludge, and oil 
                        derived from wastewater or the treatment of 
                        wastewater.
            (2) Biodiesel blend.--The term ``biodiesel blend'' means a 
        mixture of biodiesel and diesel fuel, including--
                    (A) a blend of biodiesel and diesel fuel 
                approximately 5 percent of the content of which is 
                biodiesel (commonly known as ``B5''); and
                    (B) a blend of biodiesel and diesel fuel 
                approximately 20 percent of the content of which is 
                biodiesel (commonly known as ``B20'').

SEC. 117. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.

    Section 32912 of title 49, United States Code, is amended by adding 
at the end thereof the following:
    ``(e) Use of Civil Penalties.--For fiscal year 2008 and each fiscal 
year thereafter, from the total amount deposited in the general fund of 
the Treasury during the preceding fiscal year from fines, penalties, 
and other funds obtained through enforcement actions conducted pursuant 
to this section (including funds obtained under consent decrees), the 
Secretary of the Treasury, subject to the availability of 
appropriations, shall--
            ``(1) transfer 50 percent of such total amount to the 
        account providing appropriations to the Secretary of 
        Transportation for the administration of this chapter, which 
        shall be used by the Secretary to carry out a program of 
        research and development into fuel saving automotive 
        technologies and to support rulemaking under this chapter; and
            ``(2) transfer 50 percent of such total amount to the 
        Energy Security Fund established by section 118(a) of the Ten-
        in-Ten Fuel Economy Act.

SEC. 118. ENERGY SECURITY FUND AND ALTERNATIVE FUEL GRANT PROGRAM.

    (a) Establishment of Fund.--
            (1) In general.--There is established in the Treasury a 
        fund, to be known as the ``Energy Security Fund'' (referred to 
        in this section as the ``Fund''), consisting of--
                    (A) amounts transferred to the Fund under section 
                32912(e)(2) of title 49, United States Code; and
                    (B) amounts credited to the Fund under paragraph 
                (2)(C).
            (2) Investment of amounts.--
                    (A) In general.--The Secretary of the Treasury 
                shall invest in interest-bearing obligations of the 
                United States such portion of the Fund as is not, in 
                the judgment of the Secretary of the Treasury, required 
                to meet current withdrawals.
                    (B) Sale of obligations.--Any obligation acquired 
                by the Fund may be sold by the Secretary of the 
                Treasury at the market price.
                    (C) Credits to fund.--The interest on, and the 
                proceeds from the sale or redemption of, any 
                obligations held in the Fund shall be credited to, and 
                form a part of, the Fund in accordance with section 
                9602 of the Internal Revenue Code of 1986.
            (3) Use of amounts in fund.--Amounts in the Fund shall be 
        made available to the Secretary of Energy, subject to the 
        availability of appropriations, to carry out the grant program 
        under subsection (b).
    (b) Alternative Fuels Grant Program.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary of Energy, acting through 
        the Clean Cities Program of the Department of Energy, shall 
        establish and carry out a program under which the Secretary 
        shall provide grants to expand the availability to consumers of 
        alternative fuels (as defined in section 32901(a) of title 49, 
        United States Code).
            (2) Eligibility.--
                    (A) In general.--Except as provided in subparagraph 
                (B), any entity that is eligible to receive assistance 
                under the Clean Cities Program shall be eligible to 
                receive a grant under this subsection.
                    (B) Exceptions.--
                            (i) Certain oil companies.--A large, 
                        vertically-integrated oil company shall not be 
                        eligible to receive a grant under this 
                        subsection.
                            (ii) Prohibition of dual benefits.--An 
                        entity that receives any other Federal funds 
                        for the construction or expansion of 
                        alternative refueling infrastructure shall not 
                        be eligible to receive a grant under this 
                        subsection for the construction or expansion of 
                        the same alternative refueling infrastructure.
                    (C) Ensuring compliance.--Not later than 30 days 
                after the date of enactment of this Act, the Secretary 
                of Energy shall promulgate regulations to ensure that, 
                before receiving a grant under this subsection, an 
                eligible entity meets applicable standards relating to 
                the installation, construction, and expansion of 
                infrastructure necessary to increase the availability 
                to consumers of alternative fuels (as defined in 
                section 32901(a) of title 49, United States Code).
            (3) Maximum amount.--
                    (A) Grants.--The amount of a grant provided under 
                this subsection shall not exceed $30,000.
                    (B) Amount per station.--An eligible entity shall 
                receive not more than $90,000 under this subsection for 
                any station of the eligible entity during a fiscal 
                year.
            (4) Use of funds.--
                    (A) In general.--A grant provided under this 
                subsection shall be used for the construction or 
                expansion of alternative fueling infrastructure.
                    (B) Administrative expenses.--Not more than 3 
                percent of the amount of a grant provided under this 
                subsection shall be used for administrative expenses.

SEC. 119. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary of 
Transportation $25,000,000 for each of fiscal years 2009 through 2021 
to carry out the provisions of chapter 329 of title 49, United States 
Code.

                        TITLE II--PRICE GOUGING

SEC. 201. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short title.--This title may be cited as the ``Petroleum 
Consumer Price Gouging Protection Act''.
    (b) Table of contents.--The table of contents for this title is as 
follows:

Sec. 201. Short title; table of contents.
Sec. 202. Definitions.
Sec. 203. Prohibition on price gouging during energy emergencies.
Sec. 204. Prohibition on market manipulation.
Sec. 205. Prohibition on false information.
Sec. 206. Presidential declaration of energy emergency.
Sec. 207. Enforcement by the Federal Trade Commission.
Sec. 208. Enforcement by State Attorneys General.
Sec. 209. Penalties.
Sec. 210. Effect on other laws.

SEC. 202. DEFINITIONS.

    In this title:
            (1) Affected area.--The term ``affected area'' means an 
        area covered by a Presidential declaration of energy emergency.
            (2) Supplier.--The term ``supplier'' means any person 
        engaged in the trade or business of selling or reselling, at 
        retail or wholesale, or distributing crude oil, gasoline, or 
        petroleum distillates.
            (3) Price gouging.--The term ``price gouging'' means the 
        charging of an unconscionably excessive price by a supplier in 
        an affected area.
            (4) Unconscionably excessive price.--The term 
        ``unconscionably excessive price'' means a price charged in an 
        affected area for crude oil, gasoline, or petroleum distillates 
        that--
                    (A)(i) represents a gross disparity between the 
                price at which it was offered for sale in the usual 
                course of the supplier's business immediately prior to 
                the President's declaration of an energy emergency;
                    (ii) grossly exceeds the price at which the same or 
                similar crude oil, gasoline, or petroleum distillate 
                was readily obtainable by other purchasers in the 
                affected area; or
                    (iii) represents an exercise of unfair leverage or 
                unconscionable means on the part of the supplier, 
                during a period of declared energy emergency; and
                    (B) is not attributable to increased wholesale or 
                operational costs outside the control of the supplier, 
                incurred in connection with the sale of crude oil, 
                gasoline, or petroleum distillates.
            (5) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.

SEC. 203. PROHIBITION ON PRICE GOUGING DURING ENERGY EMERGENCIES.

    (a) In General.--During any energy emergency declared by the 
President under section 206 of this title, it is unlawful for any 
supplier to sell, or offer to sell, crude oil, gasoline, or petroleum 
distillates in, or for use in, the area to which that declaration 
applies at an unconscionably excessive price.
    (b) Factors Considered.--In determining whether a violation of 
subsection (a) has occurred, there shall be taken into account, among 
other factors, the price that would reasonably equate supply and demand 
in a competitive and freely functioning market.

SEC. 204. PROHIBITION ON MARKET MANIPULATION.

    It is unlawful for any person, directly or indirectly, to use or 
employ, in connection with the purchase or sale of crude oil, gasoline, 
or petroleum distillates at wholesale, any manipulative or deceptive 
device or contrivance, in contravention of such rules and regulations 
as the Commission may prescribe as necessary or appropriate in the 
public interest or for the protection of United States citizens.

SEC. 205. PROHIBITION ON FALSE INFORMATION.

    (a) In General.--It is unlawful for any person to report 
information related to the wholesale price of crude oil, gasoline, or 
petroleum distillates to the Commission if--
            (1) that person knew, or reasonably should have known, the 
        information to be false or misleading;
            (2) the information was required by law to be reported; and
            (3) the person intended the false or misleading data to 
        affect data compiled by the Commission for statistical or 
        analytical purposes with respect to the market for crude oil, 
        gasoline, or petroleum distillates.

SEC. 206. PRESIDENTIAL DECLARATION OF ENERGY EMERGENCY.

    (a) In General.--If the President finds that the health, safety, 
welfare, or economic well-being of the citizens of the United States is 
at risk because of a shortage or imminent shortage of adequate supplies 
of crude oil, gasoline, or petroleum distillates due to a disruption in 
the national distribution system for crude oil, gasoline, or petroleum 
distillates (including such a shortage related to a major disaster (as 
defined in section 102(2) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5122(2))), or significant pricing 
anomalies in national energy markets for crude oil, gasoline, or 
petroleum distillates, the President may declare that a Federal energy 
emergency exists.
    (b) Scope and Duration.--The emergency declaration shall specify--
            (1) the period, not to exceed 30 days, for which the 
        declaration applies;
            (2) the circumstance or condition necessitating the 
        declaration; and
            (3) the area or region to which it applies, which, for the 
        48 contiguous states may not be limited to a single State.
    (c) Extensions.--The President may--
            (1) extend a declaration under subsection (a) for a period 
        of not more than 30 days; and
            (2) extend such a declaration more than once.

SEC. 207. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) Enforcement.--This title shall be enforced by the Federal Trade 
Commission. In enforcing section 203 of this title, the Commission 
shall give priority to enforcement actions concerning companies with 
total United States wholesale or retail sales of crude oil, gasoline, 
and petroleum distillates in excess of $500,000,000 per year but shall 
not exclude enforcement actions against companies with total United 
States wholesale sales of $500,000,000 or less per year.
    (b) Violation is Unfair or Deceptive Act or Practice.--The 
violation of any provision of this title shall be treated as an unfair 
or deceptive act or practice proscribed under a rule issued under 
section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
57a(a)(1)(B)).
    (c) Commission Actions.--Following the declaration of an energy 
emergency by the President under section 206 of this title, the 
Commission shall--
            (1) establish within the Commission--
                    (A) a toll-free hotline that a consumer may call to 
                report an incident of price gouging in the affected 
                area; and
                    (B) a program to develop and distribute to the 
                public informational materials to assist residents of 
                the affected area in detecting and avoiding price 
                gouging;
            (2) consult with the Attorney General, the United States 
        Attorney for the districts in which a disaster occurred (if the 
        declaration is related to a major disaster), and State and 
        local law enforcement officials to determine whether any 
        supplier in the affected area is charging or has charged an 
        unconscionably excessive price for crude oil, gasoline, or 
        petroleum distillates in the affected area; and
            (3) conduct an investigation to determine whether any 
        supplier in the affected area has violated section 203 of this 
        title, and upon such finding, take any action the Commission 
        determines to be appropriate to remedy the violation.

SEC. 208. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

    (a) In General.--A State, as parens patriae, may bring a civil 
action on behalf of its residents in an appropriate district court of 
the United States to enforce the provisions of section 203 of this 
title, or to impose the civil penalties authorized by section 209 for 
violations of section 203, whenever the attorney general of the State 
has reason to believe that the interests of the residents of the State 
have been or are being threatened or adversely affected by a supplier 
engaged in the sale or resale, at retail or wholesale, or distribution 
of crude oil, gasoline, or petroleum distillates in violation of 
section 203 of this title.
    (b) Notice.--The State shall serve written notice to the Commission 
of any civil action under subsection (a) prior to initiating the 
action. The notice shall include a copy of the complaint to be filed to 
initiate the civil action, except that if it is not feasible for the 
State to provide such prior notice, the State shall provide such notice 
immediately upon instituting the civil action.
    (c) Authority To Intervene.--Upon receiving the notice required by 
subsection (b), the Commission may intervene in the civil action and, 
upon intervening--
            (1) may be heard on all matters arising in such civil 
        action; and
            (2) may file petitions for appeal of a decision in such 
        civil action.
    (d) Construction.--For purposes of bringing any civil action under 
subsection (a), nothing in this section shall prevent the attorney 
general of a State from exercising the powers conferred on the Attorney 
General by the laws of such State to conduct investigations or to 
administer oaths or affirmations or to compel the attendance of 
witnesses or the production of documentary and other evidence.
    (e) Venue; Service of Process.--In a civil action brought under 
subsection (a)--
            (1) the venue shall be a judicial district in which--
                    (A) the defendant operates;
                    (B) the defendant was authorized to do business; or
                    (C) where the defendant in the civil action is 
                found;
            (2) process may be served without regard to the territorial 
        limits of the district or of the State in which the civil 
        action is instituted; and
            (3) a person who participated with the defendant in an 
        alleged violation that is being litigated in the civil action 
        may be joined in the civil action without regard to the 
        residence of the person.
    (f) Limitation on State Action While Federal Action Is Pending.--If 
the Commission has instituted a civil action or an administrative 
action for violation of this title, a State attorney general, or 
official or agency of a State, may not bring an action under this 
section during the pendency of that action against any defendant named 
in the complaint of the Commission or the other agency for any 
violation of this title alleged in the Commission's civil or 
administrative action.
    (g) No Preemption.--Nothing contained in this section shall 
prohibit an authorized State official from proceeding in State court to 
enforce a civil or criminal statute of that State.

SEC. 209. PENALTIES.

    (a) Civil Penalty.--
            (1) In general.--In addition to any penalty applicable 
        under the Federal Trade Commission Act, any supplier--
                    (A) that violates section 204 or section 205 of 
                this title is punishable by a civil penalty of not more 
                than $1,000,000; and
                    (B) that violates section 203 of this title is 
                punishable by a civil penalty of--
                            (i) not more than $500,000, in the case of 
                        an independent small business marketer of 
                        gasoline (within the meaning of section 324(c) 
                        of the Clean Air Act (42 U.S.C. 7625(c))); and
                            (ii) not more than $5,000,000 in the case 
                        of any other supplier.
            (2) Method of assessment.--The penalties provided by 
        paragraph (1) shall be assessed in the same manner as civil 
        penalties imposed under section 5 of the Federal Trade 
        Commission Act (15 U.S.C. 45).
            (3) Multiple offenses; mitigating factors.--In assessing 
        the penalty provided by subsection (a)--
                    (A) each day of a continuing violation shall be 
                considered a separate violation; and
                    (B) the Commission shall take into consideration 
                the seriousness of the violation and the efforts of the 
                person committing the violation to remedy the harm 
                caused by the violation in a timely manner.
    (b) Criminal Penalty.--Violation of section 203 of this title is 
punishable by a fine of not more than $5,000,000, imprisonment for not 
more than 5 years, or both.

SEC. 210. EFFECT ON OTHER LAWS.

    (a) Other Authority of the Commission.--Nothing in this title shall 
be construed to limit or affect in any way the Commission's authority 
to bring enforcement actions or take any other measure under the 
Federal Trade Commission Act (15 U.S.C. 41 et seq.) or any other 
provision of law.
    (b) State Law.--Nothing in this title preempts any State law.
                                                       Calendar No. 630

110th CONGRESS

  2d Session

                                 S. 357

                          [Report No. 110-278]

_______________________________________________________________________

                                 A BILL

    To improve passenger automobile fuel economy and safety, reduce 
  greenhouse gas emissions, reduce dependence on foreign oil, and for 
                            other purposes.

_______________________________________________________________________

                             April 7, 2008

                       Reported with an amendment