[Congressional Record Volume 148, Number 9 (Thursday, February 7, 2002)]
[Senate]
[Pages S494-S497]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LOTT (for Mr. McCain):
  S. 1923. A bill to provide for increased corporate average fuel 
economy standards, and for other purposes; to the Committee on 
Commerce, Science, and Transportation.
  Mr. McCAIN. Mr. President, today, I am introducing the ``Fuel Economy 
and Security Act of 2002.'' This legislation would reduce our Nation's 
oil consumption--and in doing so, our dependence on foreign oil, by 
increasing Corporate Average Fuel Economy, CAFE, standards for 
passenger cars and light trucks. This legislation would also expand the 
current CAFE credits system by allowing credit trading between 
automobile manufacturers, as well as other industries that emit 
greenhouse gases. Increasing CAFE standards, coupled with this new 
trading system, would strengthen our national security, while 
significantly reducing greenhouse gas emissions over the next decade 
and beyond.
  The terrorist attacks waged on this country on September 11, 2001, 
have brought into focus the need to reduce our dependence on all 
foreign oil, but most importantly, oil from the Persian Gulf. Compared 
with the United States' daily oil production of 6 million barrels, this 
country imports 9 million barrels of oil per day, 2.6 million barrels 
of which come directly from the Persian Gulf. This bill would result in 
daily oil savings by 2020 that are more than what the United States 
currently imports from that region. The cumulative oil savings between 
2007 and 2020 will be approximately 6.2 billion barrels. This savings 
from increased fuel economy is essential if we are to increase our 
energy independence and national security.
  Last year, the National Academy of Sciences, NAS, issued a report 
that concluded that the benefits resulting from CAFE since its 
implementation in 1978 clearly warrant government intervention to 
ensure fuel economy levels beyond what may result from market forces 
alone. The NAS panel found that CAFE has led to marked improvements in 
reducing greenhouse gas emissions, fuel consumption, and dependence on 
foreign oil.
  The debate over CAFE is complex because it requires striking a 
careful balance among many factors, including the environment, consumer 
preferences, and domestic employment. It is also important to consider 
the need for powerful and durable vehicles in rural America. I believe 
this bill would achieve a balance of many of these competing interests 
by providing adequate lead time to implement aggressive CAFE increases; 
furthering efforts to reduce greenhouse gases; and factoring in the 
ability of automobile manufacturers to meet annual standards based on 
existing technology.
  This bill would increase fuel economy standards by combining the 
dual-fleet CAFE structure, which currently requires that manufacturers 
meet separate fuel economy standards for their light trucks and 
passenger cars. The bill requires that manufacturers' fleets average 36 
miles per gallon by 2016. Combining the fleets eliminates the often-
criticized ``SUV loophole'' and provides flexibility to automobile 
manufacturers in designing their fleets.
  Reducing fuel consumption will accomplish the critical goal of 
reducing greenhouse gas emissions. At the recent World Economic Forum 
annual meeting in New York, it was reported that out of 142 nations, 
the U.S. ranked 51st on an environmental sustainability index that 
measures overall progress toward environmental sustainability for the 
evaluated countries. Alarmingly, the U.S. ranked 133rd out of 142 on 
reducing greenhouse gas emissions, one of the key indicators used to 
determine the sustainability index.
  The Committee on Commerce, Science, and Transportation has held 
several hearings to address the complex issue of greenhouse gas 
emissions. The bill I am introducing today, focuses on one of the major 
industrial greenhouse gas emitters, the automotive industry. While this 
bill proposes significant increases in the fuel economy of vehicles, it 
also expands the options that a manufacturer has to meet these 
requirements. Title II of this legislation proposes to establish a 
national registry for entities to register greenhouse gas emissions 
reductions. The registry would support the trading of credits 
established in both the CAFE system, and other voluntary trading 
practices.
  To ensure that automakers improve fuel economy and do not rely solely 
on purchasing credits from the registry to satisfy CAFE requirements, 
the bill has limited the amount of credits that can be purchased.
  I believe this bill provides a realistic approach to reducing our 
nation's dependence on foreign oil and preserving our climate for 
future generations. I seek my colleagues' careful consideration of this 
proposal.
  I ask unanimous consent that a copy of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1923

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fuel Economy and Security 
     Act of 2002''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short Title.
Sec. 2. Table of Contents.
Title I--Improved fuel economy for vehicles
Sec. 101. Average fuel economy standards for passenger automobiles and 
              light trucks.
Sec. 102. Replacement of dual fuel credit with registry for trading 
              credits.
Sec. 103. Elimination of 2-fleet rule.
Sec. 104. Elimination of dual fuel credit.
Sec. 105. High occupancy vehicle exception.
Title II--Market--based Initiatives for Greenhouse Gas Reduction
Sec. 201. Market-based initiatives.
Sec. 202. Implementing panel.
Sec. 203. Definitions.
Title III--Vehicle Safety
Sec. 301. Roof crush standard.
Sec. 302. Safety rating labels.

              TITLE I--IMPROVED FUEL ECONOMY FOR VEHICLES

     SEC. 101. AVERAGE FUEL ECONOMY STANDARDS FOR PASSENGER 
                   AUTOMOBILES AND LIGHT 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.--''; and
       (2) by striking ``(except passenger automobiles)''in 
     subsection (a) and inserting ``(except passenger automobiles 
     and light trucks)'';
       (3) by striking subsection (b) and inserting the following:
       ``(b) Standards for Passenger Automobiles and Light 
     Trucks.--
       ``(1) In general.--The Secretary of Transportation, after 
     consultation with the Administrator of the Environmental 
     Protection

[[Page S495]]

     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 
     2007 in order to achieve a combined average fuel economy 
     standard for model year 2016 of 36 miles per gallon. In 
     prescribing average fuel economy standards under this 
     paragraph, the Secretary shall prescribe appropriate annual 
     fuel economy standard increases that increase the applicable 
     average fuel economy standard annually during the 9 model-
     year period beginning with model year 2007.
       ``(2) Deadline for regulations.--The Secretary shall 
     promulgate the regulations required by paragraph (1) in final 
     form no later than 24 months after the date of enactment of 
     the Fuel Economy and Security Act of 2002.
       ``(3) Default standards.--If the regulations required by 
     paragraph (1) are not promulgated in final form within the 
     period required by paragraph (2), then the average fuel 
     economy standard for passenger automobiles and light trucks 
     manufactured by a manufacturer is--
       ``(A) for model year 2012, a standard (expressed in miles 
     per gallon) that represents 50 percent of the difference 
     between--
       ``(i) 36 miles per gallon; and
       ``(ii) the average fuel economy for passenger automobiles 
     and light trucks manufactured by a manufacturer in model year 
     2006; and
       ``(B) 36 miles per gallon for model year 2016 and 
     thereafter.'';
       (4) by striking ``the standard'' in subsection (c)(1) and 
     inserting ``a standard'';
       (5) by striking the first and last sentences of subsection 
     (c)(2); and
       (6) by striking ``(and submit the amendment to Congress 
     when required under subsection (c)(2) of this section)'' in 
     subsection (g).
       (b) Definition of Light Trucks.--
       (1) In general.--Section 32901(a) of title 49, United 
     States Code, is amended by adding at the end the following:
       ``(17) `light truck' means an automobile that the Secretary 
     decides by regulation--
       ``(A) is manufactured primarily for transporting not more 
     than 10 individuals;
       ``(B) is rated at not more than 10,000 pounds gross vehicle 
     weight;
       ``(C) is not a passenger automobile; and
       ``(D) does not fall within the exceptions from the 
     definition of `medium duty passenger vehicle' under section 
     8601-01 of title 40, Code of Federal Regulations.''.
       (2) Deadline for regulations.--The Secretary of 
     Transportation--
       (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
       (B) shall issue final regulations implementing the 
     amendment not later than 18 months after the date of the 
     enactment of this Act.
       (3) Effective date.--Regulations prescribed under paragraph 
     (1) shall apply beginning with model year 2007.
       (c) 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 2007.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation to 
     carry out the provisions of chapter 329 of title 49, United 
     States Code, $25,000,000 for each of fiscal years 2003 
     through 2016.

     SEC. 102. FUEL ECONOMY STANDARD CREDITS.

       (a) In General.--Section 32903 of title 49, United States 
     Code, is amended by striking the second sentence of 
     subsection (a) and inserting ``The credits--
       ``(1) may be applied to any of the 3 model years 
     immediately following the model year for which the credits 
     are earned; or
       ``(2) transferred to the registry established under section 
     201 of the Fuel Economy and Security Act of 2002.''.
       (b) Greenhouse Gas Credits Applied to CAFE Standards.--
     Section 32903 of title 49, United States Code, is amended by 
     adding at the end the following:
       ``(g) Greenhouse Gas Credits.--
       ``(1) In general.--A manufacturer may apply credits 
     purchased through the registry established by section 201 of 
     the Fuel Economy and Security Act of 2002 toward any model 
     year after model year 2006 under subsection (d), subsection 
     (e), or both.
       ``(2) Limitation.--A manufacturer may not use credits 
     purchased through the registry to offset more than 10 percent 
     of the fuel economy standard applicable to any model year.''.

     SEC. 103. ELIMINATION OF 2-FLEET RULE.

       (a) In General.--Section 32904 of title 49, United States 
     Code, is amended--
       (1) by striking subsection (b); and
       (2) by redesignating subsections (c) through (e) as 
     subsections (b) through (d), respectively.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to model years 2007 and later.

     SEC. 104. ELIMINATION OF DUAL FUEL CREDIT.

       Section 32905 of title 49, United States Code, is repealed.

     SEC. 105. HIGH OCCUPANCY VEHICLE EXCEPTION.

       (a) In General.--Notwithstanding section 102(a)(1) of title 
     23, United States Code, a State may, for the purpose of 
     promoting energy conservation, permit a vehicle with fewer 
     than 2 occupants to operate in high occupancy vehicle lanes 
     if it is a hybrid vehicle or is certified by the Secretary of 
     Transportation, after consultation with the Administrator of 
     the Environmental Protection Agency, to be a vehicle that 
     utilizes only an alternative fuel.
       (b) Hybrid Vehicle Defined.--In this section, the term 
     ``hybrid vehicle'' means a motor vehicle other than a light 
     truck (as defined in section 32901(a)(17) of title 49, United 
     States Code)--
       (1) which--
       (A) draws propulsion energy from onboard sources of stored 
     energy which are both--
       (i) an internal combustion or heat engine using combustible 
     fuel; and
       (ii) a rechargeable energy storage system; or
       (B) recovers kinetic energy through regenerative braking 
     and provides at least 13 percent maximum power from the 
     electrical storage device;
       (2) which, in the case of a passenger automobile--
       (A) for 2002 and later model vehicles, has received a 
     certificate of conformity under section 206 of the Clean Air 
     Act (42 U.S.C. 7525) and meets or exceeds the equivalent 
     qualifying California low emission vehicle standard under 
     section 243(e)(2) of the Clean Air Act (42 U.S.C. 7583(e)(2)) 
     for that make and model year; and
       (B) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets the Tier II emission 
     level established in regulations prescribed by the 
     Administrator of the Environmental Protection Agency under 
     section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)) for 
     that make and model year vehicle; and
       (3) which is made by a manufacturer.
       (c) Alternative Fuel Defined.--In this section, the term 
     ``alternative fuel'' has the meaning such term has under 
     section 301(2) of the Energy Policy Act of 1992 (42 U.S.C. 
     13211(2)).

    TITLE II--MARKET--BASED INITIATIVES FOR GREENHOUSE GAS REDUCTION

     SEC. 201. MARKET-BASED INITIATIVES.

       (a) Establishment of Registry for Voluntary Trading 
     Systems.--The Secretary of Commerce, through the 
     Undersecretary for Technology, shall establish a national 
     registry system for greenhouse gas trading among industry 
     under which emission reductions from the applicable baseline 
     are assigned unique identifying numerical codes by the 
     registry. Participation in the registry is voluntary. Any 
     entity conducting business in the United States may register 
     its emission results, including emissions generated outside 
     of the United States, on an entity-wide basis with the 
     registry, and may utilize the services of the registry.
       (b) Purposes.--The purposes of the national registry are--
       (1) to encourage voluntary actions to reduce greenhouse gas 
     emissions and increase energy efficiency, including 
     increasing the fuel economy of passenger automobiles and 
     light trucks and reducing the reliance by United States 
     markets on petroleum produced outside the United States used 
     to provide vehicular fuel;
       (2) to enable participating entities to record voluntary 
     greenhouse gas emissions reductions; in a consistent format 
     that is supported by third party verification;
       (3) to encourage participants involved in existing 
     partnerships to be able to trade emissions reductions among 
     partnerships;
       (4) to further recognize, publicize, and promote 
     registrants making voluntary and mandatory reductions;
       (5) to recruit more participants in the program; and
       (6) to help various entities in the nation establish 
     emissions baselines.
       (c) Functions.--The national registry shall carry out the 
     following functions:
       (1) Referrals.--Provide referrals to approved providers for 
     advice on--
       (A) designing programs to establish emissions baselines and 
     to monitor and track greenhouse gas emissions; and
       (B) establishing emissions reduction goals based on 
     international best practices for specific industries and 
     economic sectors.
       (2) Uniform reporting format.--Adopt a uniform format for 
     reporting emissions baselines and reductions established 
     through--
       (A) the Director of the National Institute of Standards and 
     Technology for greenhouse gas baselines and reductions 
     generally; and
       (B) the Secretary of Transportation for credits under 
     section 32903 of title 49, United States Code.
       (3) Record maintenance.--Maintain a record of all emission 
     baselines and reductions verified by qualified independent 
     auditors.
       (4) Encourage participation.--Encourage organizations from 
     various sectors to monitor emissions, establish baselines and 
     reduction targets, and implement efficiency improvement and 
     renewable energy programs to achieve those targets.
       (5) Public awareness.--Recognize, publicize, and promote 
     participants that--
       (A) commit to monitor their emissions and set reduction 
     targets;
       (B) establish emission baselines; and
       (C) report on the amount of progress made on their annual 
     emissions.
       (d) Transfer of Reductions.--The registry shall--
       (1) allow for the transfer of ownership of any reductions 
     realized in accordance with the program; and

[[Page S496]]

       (2) require that the registry be notified of any such 
     transfer within 30 days after the transfer is effected.
       (e) Future Considerations.--Any reductions achieved under 
     this program shall be credited against any future mandatory 
     greenhouse gas reductions required by the government. Final 
     approval of the amount and value of credits shall be 
     determined by the agency responsible for the implementation 
     of the mandatory greenhouse gas emission reduction program, 
     except that credits under section 32903 of title 49, United 
     States Code, shall be determined by the Secretary of 
     Transportation. The Secretary of Commerce shall by rule 
     establish an appeals process, that may incorporate an 
     arbitration option, for resolving any dispute arising out of 
     such a determination made by that agency.
       (f) CAFE Standards Credits.--The Secretary of 
     Transportation shall work with the Secretary of Commerce and 
     the implementing panel established by section 202 to 
     determine the equivalency of credits earned under section 
     32903 of title 49, United States Code, for inclusion in the 
     registry. The Secretary shall by rule establish an appeals 
     process, that may incorporate an arbitration option, for 
     resolving any dispute arising out of such a determination.

     SEC. 202. IMPLEMENTING PANEL.

       (a) Establishment.--There is established within the 
     Department of Commerce an implementing panel.
       (b) Composition.--The panel shall consist of--
       (1) the Secretary of Commerce or the Secretary's designee, 
     who shall serve as Chairperson;
       (2) the Secretary of Transportation or the Secretary's 
     designee; and
       (3) 1 expert in the field of greenhouse gas emissions 
     reduction, certification, or trading from each of the 
     following agencies--
       (A) the Department of Energy;
       (B) the Environmental Protection Agency;
       (C) the Department of Agriculture;
       (D) the National Aeronautics and Space Administration;
       (E) the Department of Commerce; and
       (F) the Department of Transportation.
       (c) Experts and Consultants.--Any member of the panel may 
     secure the services of experts and consultants in accordance 
     with the provisions of section 3109 of title 5, United States 
     Code, for greenhouse gas reduction, certification, and 
     trading experts in the private and non-profit sectors and may 
     also utilize any grant, contract, cooperative agreement, or 
     other arrangement authorized by law to carry out its 
     activities under this subsection.
       (d) Duties.--The panel shall--
       (1) implement and oversee the implementation of this 
     section;
       (2) promulgate--
       (A) standards for certification of registries and operation 
     of certified registries; and
       (B) standards for measurement, verification, and recording 
     of greenhouse gas emissions and greenhouse gas emission 
     reductions by certified registries;
       (3) maintain, and make available to the public, a list of 
     certified registries; and
       (4) issue rulemakings on standards for measuring, 
     verifying, and recording greenhouse gas emissions and 
     greenhouse gas emission reductions proposed to the panel by 
     certified registries, through a standard process of issuing a 
     proposed rule, taking public comment for no less than 30 
     days, then finalizing regulations to implement this act, 
     which will provide for recognizing new forms of acceptable 
     greenhouse gas reduction certification procedures.
       (e) Certification and Operation Standards.--The standards 
     promulgated by the panel shall include--
       (1) standards for ensuring that certified registries do not 
     have any conflicts of interest, including standards that 
     prohibit a certified registry from--
       (A) owning greenhouse gas emission reductions recorded in 
     any certified registry; or
       (B) receiving compensation in the form of a commission 
     where sources receive money for the total number of tons 
     certified;
       (2) standards for authorizing certified registries to enter 
     into agreements with for-profit persons engaged in trading of 
     greenhouse gas emission reductions, subject to paragraph (1); 
     and
       (3) such other standards for certification of registries 
     and operation of certified registries as the panel determines 
     to be appropriate.
       (f) Measurement, Verification, and Recording Standards.--
     The standards promulgated by the panel shall provide for, in 
     the case of certified registries--
       (1) ensuring that certified registries accurately measure, 
     verify, and record greenhouse gas emissions and greenhouse 
     gas emission reductions, taking into account--
       (A) boundary issues such as leakage and shifted 
     utilization; and
       (B) such other factors as the panel determines to be 
     appropriate;
       (2) ensuring that--
       (A) certified registries do not double-count greenhouse gas 
     emission reductions; and
       (B) if greenhouse gas emission reductions are recorded in 
     more than 1 certified registry, such double-recording is 
     clearly indicated;
       (3) determining the ownership of greenhouse gas emission 
     reductions and recording and tracking the transfer of 
     greenhouse gas emission reductions among entities (such as 
     through assignment of serial numbers to greenhouse gas 
     emission reductions);
       (4) measuring the results of the use of carbon 
     sequestration and carbon recapture technologies;
       (5) measuring greenhouse gas emission reductions resulting 
     from improvements in--
       (A) power plants;
       (B) automobiles (including types of passenger automobiles 
     and light trucks, as defined in section 32901(a)(16) and (17) 
     respectively, produced in the same model year);
       (C) carbon re-capture, storage and sequestration, including 
     organic sequestration and manufactured emissions injection, 
     and or storage.
       (D) other sources;
       (6) measuring prevented greenhouse gas emissions through 
     the rulemaking process and based on the latest scientific 
     data, sampling, expert analysis related to measurement and 
     projections for prevented greenhouse gas emissions in tons 
     including--
       (A) organic soil carbon sequestration practices;
       (B) forest preservation and re-forestation activities which 
     adequately address the issues of permanence, leakage and 
     verification; and
       (7) such other measurement, verification, and recording 
     standards as the panel determines to be appropriate.
       (g) Certification of Registries.--Except as provided in 
     subsection (h), a registrant that desires to be a certified 
     registry shall submit to the panel an application that--
       (1) demonstrates that the registrant meets each of the 
     certification standards established by the panel under 
     subsections (d) and (e); and
       (2) meets such other requirements as the panel may 
     establish.
       (h) Automobile Industry.--The Secretary of Transportation 
     is deemed to be the certified registrant for credits earned 
     under section 32903 of title 49, United States Code.
       (i) Annual Report.--Within 1 year after the date after the 
     date of enactment of this Act and biennially thereafter, the 
     panel shall report to the Congress on the status of the 
     program established under this section. The report shall 
     include an assessment of the level of participation in the 
     program and amount of progress being made on emission 
     reduction targets.

     SEC. 203. DEFINITIONS.

       In this title:
       (1) Greenhouse gas.--The term ``greenhouse gas'' includes--
       (A) carbon dioxide;
       (B) methane;
       (C) hydro fluorocarbons;
       (D) perfluorocarbons;
       (E) nitrous oxide; and
       (F) sulfur hexafluoride.
       (2) Baseline.--The term ``baseline'' means--
       (A) the greenhouse gas emissions, determined on an entity-
     wide basis for the participant's most recent previous 3-year 
     annual average of greenhouse gas emissions prior to the date 
     of enactment of this Act; or
       (B) if data is unavailable for that 3-year period, the 
     greenhouse gas emissions as of September 30, 2002, (or as 
     close to that date as such emission levels can reasonably be 
     determined). In promulgating regulations under this title, 
     the panel shall take into account greenhouse gas emission 
     reductions or off-setting actions taken by any entity before 
     the date on which the registry is established.
       (3) Certified registry.--The term ``certified registry'' 
     means a registry that has been certified by the panel as 
     meeting the standards promulgated under section 202(e) and 
     (f) and, for the automobile industry, the Secretary of 
     Transportation.
       (4) Greenhouse gas emissions.--The term ``greenhouse gas 
     emissions'' means the quantity of greenhouse gases emitted by 
     a source during a period, measured in tons of greenhouse 
     gases.
       (5) Greenhouse gas emission reduction.--The term 
     ``greenhouse gas emission reduction'' means a quantity equal 
     to the difference between--
       (A) the greenhouse gas emissions of a source during a 
     period; and
       (B) the greenhouse gas emissions of the source during a 
     baseline period of the same duration as determined by 
     registries and entities defined as owners of emission 
     sources.
       (6) Kyoto protocol.--The term ``Kyoto protocol'' means the 
     Kyoto Protocol to the United Nations Framework Convention on 
     Climate Change (including the Montreal Protocol to the 
     Convention on Substances that Deplete the Ozone Layer).
       (7) Panel.--The term ``panel'' means the implementing panel 
     established by section 202(a).
       (8) Registrant.--The term ``registrant'' means a private 
     person that operates a database recording quantified and 
     verified greenhouse gas emissions and emissions reductions of 
     sources owned by other entities.
       (9) Source.--The term ``source'' means a source of 
     greenhouse gas emissions.

                       TITLE III--VEHICLE SAFETY

     SEC. 301. ROOF CRUSH SAFETY STANDARD.

       (a) Improved Crashworthiness.--Subchapter II of chapter 301 
     of title 49, United States Code, is amended by adding at the 
     end the following:

     ``Sec. 30128. Improved crashworthiness

       ``Within 3 years after the date of enactment of the Fuel 
     Economy and Security Act of 2002, the Secretary of 
     Transportation, through the National Highway Traffic Safety 
     Administration, shall prescribe a motor vehicle safety 
     standard under this chapter for rollover crashworthiness 
     standards that includes--

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       ``(1) dynamic roof crush standards;
       ``(2) improved seat structure and safety belt design;
       ``(3) side impact head protection airbags; and
       ``(4) roof injury protection measures.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     301 of title 49, United States Code, is amended by inserting 
     after the item relating to section 30127 the following:

``30128. Improved crashworthiness''.

     SEC. 302. SAFETY RATING LABELS.

       Section 32302 of title 49, United States Code, is amended--
       (1) by redesignating paragraphs (3) and (4) of subsection 
     (a) as paragraphs (4) and (5), respectively;
       (2) by inserting after paragraph (2) of subsection (a) the 
     following:
       ``(3) overall safety of the driver and passengers of the 
     vehicle in a collision.''; and
       (3) by striking subsection (b) and inserting the following:
       ``(b) Motor Vehicle Safety Information.--
       ``(1) In general.--In carrying out subsection (a), the 
     Secretary shall establish test criteria for use by 
     manufacturers in determining damage susceptibility, 
     crashworthiness, and the overall safety of vehicles for 
     drivers and passengers.
       ``(2) Presentation of data.--The Secretary shall prescribe 
     a system for presenting information developed under 
     paragraphs (1) through (3) of subsection (a) to the public in 
     a simple and understandable form that facilitates comparison 
     among the makes and models of passenger motor vehicles.
       ``(3) Label requirement.--Each manufacturer of a new 
     passenger motor vehicle (as defined in section 32304(a)(8)) 
     manufactured after September 30, 2005, and distributed in 
     commerce for sale in the United States shall cause the 
     information required by paragraph (2) to appear on, or 
     adjacent to, the label required by section 3 of the 
     Automobile Information Disclosure Act (15 U.S.C. 1232(b).''.
                                 ______