[Congressional Record Volume 153, Number 55 (Thursday, March 29, 2007)]
[Senate]
[Pages S4187-S4188]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BIDEN:
  S. 1055. A bill to promote the future of the American automobile 
industry, and for other purposes; to the Committee on Finance.
  Mr. BIDEN. Mr. President, today I am introducing The American 
Automobile Industry Promotion Act of 2007 to jump-start next generation 
battery technology development in the United States and extend 
incentives to American-made highly efficient vehicles.
  This legislation authorizes $100 million a year for 5 years to 
advance new battery technology--an amount double the administration's 
current budget request. On a national and international level, we must 
do whatever it takes to help our domestic auto manufacturers remain 
competitive.
  Right now, the Japanese dominate the market for lithium ion batteries 
because they invested hundreds of millions of dollars in developing 
this technology and in supporting their domestic industry. And, the 
Koreans and the Chinese are not far behind. American auto manufacturers 
are playing catch-up and we need to move quickly.
  Specifically, I am proposing to support the development of advanced 
electric components, systems and vehicles, by providing funds for 
battery research to national laboratories, small businesses, and 
institutes of higher learning. The bill will also establish, through a 
competitive selection process, an Industry Alliance of private, U.S. 
based, for-profit firms whose primary business is battery development. 
The Industry Alliance would be an advisory resource on short and long 
term battery technology development.
  The new research initiative will have four major areas of focus: (1) 
Research and Development including battery technology, high-efficiency 
charging systems, high-powered drive-train systems, control systems and 
power train development, and nanomaterial technology for battery and 
fuel cell systems. (2) Demonstration. The initiative also creates a 
demonstration program which would devote resources toward 
demonstration, testing and evaluation of hybrid electric vehicles for 
many different applications including military, mass market passenger 
and SUV vehicles. (3) Education. The initiative will support curriculum 
development in secondary, high school, as well as higher education 
institutions that focus on electric drive systems and component 
engineering. (4) Testing. Finally, the initiative would work with the 
EPA to develop testing and certification procedures for criteria 
pollutants, fuel economy, and petroleum use in vehicles.
  In addition to research and development for the lithium ion battery, 
the American Automobile Industry Promotion Act will also set a national 
standard for biodiesel, a cleaner-burning fuel made from natural and 
renewable sources; and expand tax credit eligibility for consumers who 
purchase more fuel-efficient diesel vehicles. Today's diesels are 
cleaner than their predecessors, are in compliance with EPA emissions 
standards, and are 30 percent more fuel efficient than an equivalent 
gasoline engine. Specifically, the bill expands the emissions 
requirements to qualify for a tax credit for various weight diesel 
vehicles, increasing the number of American-manufactured more fuel 
efficient diesel vehicles that qualify. This provision would expire in 
four years, at which time all highly efficient vehicles will have to 
meet higher emissions standards to qualify for the tax credit.
  Now is the time to act. It's not too late, but we do not have the 
luxury of waiting. If we are ever to be truly competitive in the global 
auto market and free from our dependence on foreign oil, we must move 
forward on all fronts.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1055

       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 ``American Automobile Industry 
     Promotion Act of 2007''.

     SEC. 2. ADVANCED ENERGY INITIATIVE FOR VEHICLES.

       (a) Purposes.--The purposes of this section are--
       (1) to enable and promote, in partnership with industry, 
     comprehensive development, demonstration, and 
     commercialization of a wide range of electric drive 
     components, systems, and vehicles using diverse electric 
     drive transportation technologies;
       (2) to make critical public investments to help private 
     industry, institutions of higher education, National 
     Laboratories, and research institutions to expand innovation, 
     industrial growth, and jobs in the United States;
       (3) to expand the availability of the existing electric 
     infrastructure for fueling light duty transportation and 
     other on-road and nonroad vehicles that are using petroleum 
     and are mobile sources of emissions--
       (A) including the more than 3,000,000 reported units (such 
     as electric forklifts, golf carts, and similar nonroad 
     vehicles) in use on the date of enactment of this Act; and
       (B) with the goal of enhancing the energy security of the 
     United States, reduce dependence on imported oil, and reduce 
     emissions through the expansion of grid-supported mobility;
       (4) to accelerate the widespread commercialization of all 
     types of electric drive vehicle technology into all sizes and 
     applications of vehicles, including commercialization of 
     plug-in hybrid electric vehicles and plug-in hybrid fuel cell 
     vehicles; and
       (5) to improve the energy efficiency of and reduce the 
     petroleum use in transportation.
       (b) Definitions.--In this section:
       (1) Battery.--The term ``battery'' means an energy storage 
     device used in an on-road or nonroad vehicle powered in whole 
     or in part using an off-board or on-board source of 
     electricity.
       (2) Electric drive transportation technology.--The term 
     ``electric drive transportation technology'' means--
       (A) a vehicle that--
       (i) uses an electric motor for all or part of the motive 
     power of the vehicle; and
       (ii) may use off-board electricity, including battery 
     electric vehicles, fuel cell vehicles, engine dominant hybrid 
     electric vehicles, plug-in hybrid electric vehicles, plug-in 
     hybrid fuel cell vehicles, and electric rail; or
       (B) equipment relating to transportation or mobile sources 
     of air pollution that uses an electric motor to replace an 
     internal combustion engine for all or part of the work of the 
     equipment, including corded electric equipment linked to 
     transportation or mobile sources of air pollution.
       (3) Engine dominant hybrid electric vehicle.--The term 
     ``engine dominant hybrid electric vehicle'' means an on-road 
     or nonroad vehicle that--
       (A) is propelled by an internal combustion engine or heat 
     engine using--
       (i) any combustible fuel; and
       (ii) an on-board, rechargeable storage device; and
       (B) has no means of using an off-board source of 
     electricity.
       (4) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
     means an on-road or nonroad vehicle that uses a fuel cell (as 
     defined in section 803 of the Energy Policy Act of 2005 (42 
     U.S.C. 16152)).
       (5) Initiative.--The term ``Initiative'' means the Advanced 
     Battery Initiative established by the Secretary under 
     subsection (f)(1).
       (6) Nonroad vehicle.--The term ``nonroad vehicle'' has the 
     meaning given the term in section 216 of the Clean Air Act 
     (42 U.S.C. 7550).
       (7) Plug-in hybrid electric vehicle.--The term ``plug-in 
     hybrid electric vehicle'' means an on-road or nonroad vehicle 
     that is propelled by an internal combustion engine or heat 
     engine using--
       (A) any combustible fuel;
       (B) an on-board, rechargeable storage device; and
       (C) a means of using an off-board source of electricity.
       (8) Plug-in hybrid fuel cell vehicle.--The term ``plug-in 
     hybrid fuel cell vehicle'' means an onroad or nonroad vehicle 
     that is propelled by a fuel cell using--
       (A) any compatible fuel;
       (B) an on-board, rechargeable storage device; and
       (C) a means of using an off-board source of electricity.

[[Page S4188]]

       (9) Industry alliance.--The term ``Industry Alliance'' 
     means the entity selected by the Secretary under subsection 
     (f)(2).
       (10) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 
     15801).
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (c) Goals.--The goals of the electric drive transportation 
     technology program established under subsection (e) shall be 
     to develop, in partnership with industry and institutions of 
     higher education, projects that focus on--
       (1) innovative electric drive technology developed in the 
     United States;
       (2) growth of employment in the United States in electric 
     drive design and manufacturing;
       (3) validation of the plug-in hybrid potential through 
     fleet demonstrations; and
       (4) acceleration of fuel cell commercialization through 
     comprehensive development and commercialization of battery 
     technology systems independent of fundamental fuel cell 
     vehicle technology development.
       (d) Assessment.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall offer to enter 
     into an arrangement with the National Academy of Sciences--
       (1) to conduct an assessment (in cooperation with industry, 
     standards development organizations, and other entities, as 
     appropriate), of state-of-the-art battery technologies with 
     potential application for electric drive transportation;
       (2) to identify knowledge gaps in the scientific and 
     technological bases of battery manufacture and use;
       (3) to identify fundamental research areas that would 
     likely have a significant impact on the development of 
     superior battery technologies for electric drive vehicle 
     applications; and
       (4) to recommend steps to the Secretary to accelerate the 
     development of battery technologies for electric drive 
     transportation.
       (e) Program.--The Secretary shall conduct a program of 
     research, development, demonstration, and commercial 
     application for electric drive transportation technology, 
     including--
       (1) high-capacity, high-efficiency batteries;
       (2) high-efficiency on-board and off-board charging 
     components;
       (3) high-powered drive train systems for passenger and 
     commercial vehicles and for nonroad equipment;
       (4) control system development and power train development 
     and integration for plug-in hybrid electric vehicles, plug-in 
     hybrid fuel cell vehicles, and engine dominant hybrid 
     electric vehicles, including--
       (A) development of efficient cooling systems;
       (B) analysis and development of control systems that 
     minimize the emissions profile when clean diesel engines are 
     part of a plug-in hybrid drive system; and
       (C) development of different control systems that optimize 
     for different goals, including--
       (i) battery life;
       (ii) reduction of petroleum consumption; and
       (iii) green house gas reduction;
       (5) nanomaterial technology applied to both battery and 
     fuel cell systems;
       (6) large-scale demonstrations, testing, and evaluation of 
     plug-in hybrid electric vehicles in different applications 
     with different batteries and control systems, including--
       (A) military applications;
       (B) mass market passenger and light-duty truck 
     applications;
       (C) private fleet applications; and
       (D) medium- and heavy-duty applications;
       (7) a nationwide education strategy for electric drive 
     transportation technologies providing secondary and high 
     school teaching materials and support for education offered 
     by institutions of higher education that is focused on 
     electric drive system and component engineering;
       (8) development, in consultation with the Administrator of 
     the Environmental Protection Agency, of procedures for 
     testing and certification of criteria pollutants, fuel 
     economy, and petroleum use for light-, medium-, and heavy-
     duty vehicle applications, including consideration of--
       (A) the vehicle and fuel as a system, not just an engine; 
     and
       (B) nightly off-board charging; and
       (9) advancement of battery and corded electric 
     transportation technologies in mobile source applications 
     by--
       (A) improvement in battery, drive train, and control system 
     technologies; and
       (B) working with industry and the Administrator of the 
     Environmental Protection Agency--
       (i) to understand and inventory markets; and
       (ii) to identify and implement methods of removing barriers 
     for existing and emerging applications.
       (f) Advanced Battery Initiative.--
       (1) In general.--The Secretary shall establish and carry 
     out an Advanced Battery Initiative in accordance with this 
     subsection to support research, development, demonstration, 
     and commercial application of battery technologies.
       (2) 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.
       (3) Research.--
       (A) Grants.--The Secretary shall carry out research 
     activities of the Initiative through competitively-awarded 
     grants to--
       (i) researchers, including Industry Alliance participants;
       (ii) small businesses;
       (iii) National Laboratories; and
       (iv) institutions of higher education.
       (B) Industry alliance.--The Secretary shall annually 
     solicit from the Industry Alliance--
       (i) comments to identify advanced battery technology needs 
     relevant to electric drive technology;
       (ii) an assessment of the progress of research activities 
     of the Initiative; and
       (iii) assistance in annually updating advanced battery 
     technology roadmaps.
       (4) Availability to the public.--The information and 
     roadmaps developed under this subsection shall be available 
     to the public.
       (5) Preference.--In making awards under this subsection, 
     the Secretary shall give preference to participants in the 
     Industry Alliance.
       (g) Cost Sharing.--In carrying out this section, the 
     Secretary shall require cost sharing in accordance with 
     section 988 of the Energy Policy Act of 2005 (42 U.S.C. 
     16352).
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000 for 
     each of fiscal years 2008 through 2012.

     SEC. 3. AVAILABILITY OF NEW ADVANCED LEAN BURN TECHNOLOGY 
                   MOTOR VEHICLE CREDIT FOR HIGH-EFFICIENCY DIESEL 
                   MOTOR VEHICLES.

       (a) In General.--Section 30B(c)(3)(A) of the Internal 
     Revenue Code of 1986 (defining new advanced lean burn 
     technology motor vehicle credit) is amended--
       (1) by adding ``and'' at the end of clause (ii), and
       (2) by striking clause (iv).
       (b) Effective Date.--The amendments made by this section 
     shall apply to property purchased after the date of the 
     enactment of this Act.

     SEC. 4. BIODIESEL STANDARDS.

       Section 211 of the Clean Air Act (42 U.S.C. 7545) is 
     amended--
       (1) by redesignating the first subsection (r) (relating to 
     the definition of the term ``manufacturer'') as subsection 
     (t) and moving the subsection so as to appear after 
     subsection (s); and
       (2) by inserting after subsection (o) the following:
       ``(p) Biodiesel Standards.--
       ``(1) Definitions.--In this subsection:
       ``(A) Biodiesel.--
       ``(i) 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.

       ``(ii) 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.

       ``(B) Biodiesel blend.--
       ``(i) In general.--The term `biodiesel blend' means a 
     mixture of biodiesel and diesel fuel (as defined in section 
     4083(a) of the Internal Revenue Code of 1986).
       ``(ii) Inclusions.--The term `biodiesel blend' includes--

       ``(I) a blend of biodiesel and diesel fuel approximately 5 
     percent of the content of which is biodiesel (commonly known 
     as `B5'); and
       ``(II) a blend of biodiesel and diesel fuel approximately 
     20 percent of the content of which is biodiesel (commonly 
     known as `B20').

       ``(2) Standards.--Not later than 180 days after the date of 
     enactment of the American Automobile Industry Promotion Act 
     of 2007, the Administrator shall promulgate regulations to 
     establish standards for each biodiesel blend that is sold or 
     introduced into commerce in the United States.''.
                                 ______