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ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
[[Page 121 STAT. 1492]]
Public Law 110-140
110th Congress
An Act
To move the United States toward greater energy independence and
security, to increase the production of clean renewable fuels, to
protect consumers, to increase the efficiency of products, buildings,
and vehicles, to promote research on and deploy greenhouse gas capture
and storage options, and to improve the energy performance of the
Federal Government, and for other purposes. <<NOTE: Dec. 19,
2007 - [H.R. 6]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Energy Independence and
Security Act of 2007. 42 USC 17001 note.>> assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy Independence
and Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Relationship to other law.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
Subtitle A--Increased Corporate Average Fuel Economy Standards
Sec. 101. Short title.
Sec. 102. Average fuel economy standards for automobiles and certain
other vehicles.
Sec. 103. Definitions.
Sec. 104. Credit trading program.
Sec. 105. Consumer information.
Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies.
Sec. 108. National Academy of Sciences study of medium-duty and heavy-
duty truck fuel economy.
Sec. 109. Extension of flexible fuel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling
procedures.
Sec. 111. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption from separate calculation requirement.
Subtitle B--Improved Vehicle Technology
Sec. 131. Transportation electrification.
Sec. 132. Domestic manufacturing conversion grant program.
Sec. 133. Inclusion of electric drive in Energy Policy Act of 1992.
Sec. 134. Loan guarantees for fuel-efficient automobile parts
manufacturers.
Sec. 135. Advanced battery loan guarantee program.
Sec. 136. Advanced technology vehicles manufacturing incentive program.
Subtitle C--Federal Vehicle Fleets
Sec. 141. Federal vehicle fleets.
Sec. 142. Federal fleet conservation requirements.
[[Page 121 STAT. 1493]]
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS
Subtitle A--Renewable Fuel Standard
Sec. 201. Definitions.
Sec. 202. Renewable fuel standard.
Sec. 203. Study of impact of Renewable Fuel Standard.
Sec. 204. Environmental and resource conservation impacts.
Sec. 205. Biomass based diesel and biodiesel labeling.
Sec. 206. Study of credits for use of renewable electricity in electric
vehicles.
Sec. 207. Grants for production of advanced biofuels.
Sec. 208. Integrated consideration of water quality in determinations on
fuels and fuel additives.
Sec. 209. Anti-backsliding.
Sec. 210. Effective date, savings provision, and transition rules.
Subtitle B--Biofuels Research and Development
Sec. 221. Biodiesel.
Sec. 222. Biogas.
Sec. 223. Grants for biofuel production research and development in
certain States.
Sec. 224. Biorefinery energy efficiency.
Sec. 225. Study of optimization of flexible fueled vehicles to use E-85
fuel.
Sec. 226. Study of engine durability and performance associated with the
use of biodiesel.
Sec. 227. Study of optimization of biogas used in natural gas vehicles.
Sec. 228. Algal biomass.
Sec. 229. Biofuels and biorefinery information center.
Sec. 230. Cellulosic ethanol and biofuels research.
Sec. 231. Bioenergy research and development, authorization of
appropriation.
Sec. 232. Environmental research and development.
Sec. 233. Bioenergy research centers.
Sec. 234. University based research and development grant program.
Subtitle C--Biofuels Infrastructure
Sec. 241. Prohibition on franchise agreement restrictions related to
renewable fuel infrastructure.
Sec. 242. Renewable fuel dispenser requirements.
Sec. 243. Ethanol pipeline feasibility study.
Sec. 244. Renewable fuel infrastructure grants.
Sec. 245. Study of the adequacy of transportation of domestically-
produced renewable fuel by railroads and other modes of
transportation.
Sec. 246. Federal fleet fueling centers.
Sec. 247. Standard specifications for biodiesel.
Sec. 248. Biofuels distribution and advanced biofuels infrastructure.
Subtitle D--Environmental Safeguards
Sec. 251. Waiver for fuel or fuel additives.
TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND
LIGHTING
Subtitle A--Appliance Energy Efficiency
Sec. 301. External power supply efficiency standards.
Sec. 302. Updating appliance test procedures.
Sec. 303. Residential boilers.
Sec. 304. Furnace fan standard process.
Sec. 305. Improving schedule for standards updating and clarifying State
authority.
Sec. 306. Regional standards for furnaces, central air conditioners, and
heat pumps.
Sec. 307. Procedure for prescribing new or amended standards.
Sec. 308. Expedited rulemakings.
Sec. 309. Battery chargers.
Sec. 310. Standby mode.
Sec. 311. Energy standards for home appliances.
Sec. 312. Walk-in coolers and walk-in freezers.
Sec. 313. Electric motor efficiency standards.
Sec. 314. Standards for single package vertical air conditioners and
heat pumps.
Sec. 315. Improved energy efficiency for appliances and buildings in
cold climates.
Sec. 316. Technical corrections.
Subtitle B--Lighting Energy Efficiency
Sec. 321. Efficient light bulbs.
[[Page 121 STAT. 1494]]
Sec. 322. Incandescent reflector lamp efficiency standards.
Sec. 323. Public building energy efficient and renewable energy systems.
Sec. 324. Metal halide lamp fixtures.
Sec. 325. Energy efficiency labeling for consumer electronic products.
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
Sec. 401. Definitions.
Subtitle A--Residential Building Efficiency
Sec. 411. Reauthorization of weatherization assistance program.
Sec. 412. Study of renewable energy rebate programs.
Sec. 413. Energy code improvements applicable to manufactured housing.
Subtitle B--High-Performance Commercial Buildings
Sec. 421. Commercial high-performance green buildings.
Sec. 422. Zero Net Energy Commercial Buildings Initiative.
Sec. 423. Public outreach.
Subtitle C--High-Performance Federal Buildings
Sec. 431. Energy reduction goals for Federal buildings.
Sec. 432. Management of energy and water efficiency in Federal
buildings.
Sec. 433. Federal building energy efficiency performance standards.
Sec. 434. Management of Federal building efficiency.
Sec. 435. Leasing.
Sec. 436. High-performance green Federal buildings.
Sec. 437. Federal green building performance.
Sec. 438. Storm water runoff requirements for Federal development
projects.
Sec. 439. Cost-effective technology acceleration program.
Sec. 440. Authorization of appropriations.
Sec. 441. Public building life-cycle costs.
Subtitle D--Industrial Energy Efficiency
Sec. 451. Industrial energy efficiency.
Sec. 452. Energy-intensive industries program.
Sec. 453. Energy efficiency for data center buildings.
Subtitle E--Healthy High-Performance Schools
Sec. 461. Healthy high-performance schools.
Sec. 462. Study on indoor environmental quality in schools.
Subtitle F--Institutional Entities
Sec. 471. Energy sustainability and efficiency grants and loans for
institutions.
Subtitle G--Public and Assisted Housing
Sec. 481. Application of International Energy Conservation Code to
public and assisted housing.
Subtitle H--General Provisions
Sec. 491. Demonstration project.
Sec. 492. Research and development.
Sec. 493. Environmental Protection Agency demonstration grant program
for local governments.
Sec. 494. Green Building Advisory Committee.
Sec. 495. Advisory Committee on Energy Efficiency Finance.
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
Subtitle A--United States Capitol Complex
Sec. 501. Capitol complex photovoltaic roof feasibility studies.
Sec. 502. Capitol complex E-85 refueling station.
Sec. 503. Energy and environmental measures in Capitol complex master
plan.
Sec. 504. Promoting maximum efficiency in operation of Capitol power
plant.
Sec. 505. Capitol power plant carbon dioxide emissions feasibility study
and demonstration projects.
Subtitle B--Energy Savings Performance Contracting
Sec. 511. Authority to enter into contracts; reports.
Sec. 512. Financing flexibility.
Sec. 513. Promoting long-term energy savings performance contracts and
verifying savings.
[[Page 121 STAT. 1495]]
Sec. 514. Permanent reauthorization.
Sec. 515. Definition of energy savings.
Sec. 516. Retention of savings.
Sec. 517. Training Federal contracting officers to negotiate energy
efficiency contracts.
Sec. 518. Study of energy and cost savings in nonbuilding applications.
Subtitle C--Energy Efficiency in Federal Agencies
Sec. 521. Installation of photovoltaic system at Department of Energy
headquarters building.
Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. Standard relating to solar hot water heaters.
Sec. 524. Federally-procured appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. OMB government efficiency reports and scorecards.
Sec. 529. Electricity sector demand response.
Subtitle D--Energy Efficiency of Public Institutions
Sec. 531. Reauthorization of State energy programs.
Sec. 532. Utility energy efficiency programs.
Subtitle E--Energy Efficiency and Conservation Block Grants
Sec. 541. Definitions.
Sec. 542. Energy Efficiency and Conservation Block Grant Program.
Sec. 543. Allocation of funds.
Sec. 544. Use of funds.
Sec. 545. Requirements for eligible entities.
Sec. 546. Competitive grants.
Sec. 547. Review and evaluation.
Sec. 548. Funding.
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT
Subtitle A--Solar Energy
Sec. 601. Short title.
Sec. 602. Thermal energy storage research and development program.
Sec. 603. Concentrating solar power commercial application studies.
Sec. 604. Solar energy curriculum development and certification grants.
Sec. 605. Daylighting systems and direct solar light pipe technology.
Sec. 606. Solar Air Conditioning Research and Development Program.
Sec. 607. Photovoltaic demonstration program.
Subtitle B--Geothermal Energy
Sec. 611. Short title.
Sec. 612. Definitions.
Sec. 613. Hydrothermal research and development.
Sec. 614. General geothermal systems research and development.
Sec. 615. Enhanced geothermal systems research and development.
Sec. 616. Geothermal energy production from oil and gas fields and
recovery and production of geopressured gas resources.
Sec. 617. Cost sharing and proposal evaluation.
Sec. 618. Center for geothermal technology transfer.
Sec. 619. GeoPowering America.
Sec. 620. Educational pilot program.
Sec. 621. Reports.
Sec. 622. Applicability of other laws.
Sec. 623. Authorization of appropriations.
Sec. 624. International geothermal energy development.
Sec. 625. High cost region geothermal energy grant program.
Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies
Sec. 631. Short title.
Sec. 632. Definition.
Sec. 633. Marine and hydrokinetic renewable energy research and
development.
Sec. 634. National Marine Renewable Energy Research, Development, and
Demonstration Centers.
Sec. 635. Applicability of other laws.
Sec. 636. Authorization of appropriations.
[[Page 121 STAT. 1496]]
Subtitle D--Energy Storage for Transportation and Electric Power
Sec. 641. Energy storage competitiveness.
Subtitle E--Miscellaneous Provisions
Sec. 651. Lightweight materials research and development.
Sec. 652. Commercial insulation demonstration program.
Sec. 653. Technical criteria for clean coal power Initiative.
Sec. 654. H-Prize.
Sec. 655. Bright Tomorrow Lighting Prizes.
Sec. 656. Renewable Energy innovation manufacturing partnership.
TITLE VII--CARBON CAPTURE AND SEQUESTRATION
Subtitle A--Carbon Capture and Sequestration Research, Development, and
Demonstration
Sec. 701. Short title.
Sec. 702. Carbon capture and sequestration research, development, and
demonstration program.
Sec. 703. Carbon capture.
Sec. 704. Review of large-scale programs.
Sec. 705. Geologic sequestration training and research.
Sec. 706. Relation to Safe Drinking Water Act.
Sec. 707. Safety research.
Sec. 708. University based research and development grant program.
Subtitle B--Carbon Capture and Sequestration Assessment and Framework
Sec. 711. Carbon dioxide sequestration capacity assessment.
Sec. 712. Assessment of carbon sequestration and methane and nitrous
oxide emissions from ecosystems.
Sec. 713. Carbon dioxide sequestration inventory.
Sec. 714. Framework for geological carbon sequestration on public land.
TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY
Subtitle A--Management Improvements
Sec. 801. National media campaign.
Sec. 802. Alaska Natural Gas Pipeline administration.
Sec. 803. Renewable energy deployment.
Sec. 804. Coordination of planned refinery outages.
Sec. 805. Assessment of resources.
Sec. 806. Sense of Congress relating to the use of renewable resources
to generate energy.
Sec. 807. Geothermal assessment, exploration information, and priority
activities.
Subtitle B--Prohibitions on Market Manipulation and False Information
Sec. 811. Prohibition on market manipulation.
Sec. 812. Prohibition on false information.
Sec. 813. Enforcement by the Federal Trade Commission.
Sec. 814. Penalties.
Sec. 815. Effect on other laws.
TITLE IX--INTERNATIONAL ENERGY PROGRAMS
Sec. 901. Definitions.
Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries
Sec. 911. United States assistance for developing countries.
Sec. 912. United States exports and outreach programs for India, China,
and other countries.
Sec. 913. United States trade missions to encourage private sector trade
and investment.
Sec. 914. Actions by Overseas Private Investment Corporation.
Sec. 915. Actions by United States Trade and Development Agency.
Sec. 916. Deployment of international clean and efficient energy
technologies and investment in global energy markets.
Sec. 917. United States-Israel energy cooperation.
Subtitle B--International Clean Energy Foundation
Sec. 921. Definitions.
[[Page 121 STAT. 1497]]
Sec. 922. Establishment and management of Foundation.
Sec. 923. Duties of Foundation.
Sec. 924. Annual report.
Sec. 925. Powers of the Foundation; related provisions.
Sec. 926. General personnel authorities.
Sec. 927. Authorization of appropriations.
Subtitle C--Miscellaneous Provisions
Sec. 931. Energy diplomacy and security within the Department of State.
Sec. 932. National Security Council reorganization.
Sec. 933. Annual national energy security strategy report.
Sec. 934. Convention on Supplementary Compensation for Nuclear Damage
contingent cost allocation.
Sec. 935. Transparency in extractive industries resource payments.
TITLE X--GREEN JOBS
Sec. 1001. Short title.
Sec. 1002. Energy efficiency and renewable energy worker training
program.
TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE
Subtitle A--Department of Transportation
Sec. 1101. Office of Climate Change and Environment.
Subtitle B--Railroads
Sec. 1111. Advanced technology locomotive grant pilot program.
Sec. 1112. Capital grants for class II and class III railroads.
Subtitle C--Marine Transportation
Sec. 1121. Short sea transportation initiative.
Sec. 1122. Short sea shipping eligibility for capital construction fund.
Sec. 1123. Short sea transportation report.
Subtitle D--Highways
Sec. 1131. Increased Federal share for CMAQ projects.
Sec. 1132. Distribution of rescissions.
Sec. 1133. Sense of Congress regarding use of complete streets design
techniques.
TITLE XII--SMALL BUSINESS ENERGY PROGRAMS
Sec. 1201. Express loans for renewable energy and energy efficiency.
Sec. 1202. Pilot program for reduced 7(a) fees for purchase of energy
efficient technologies.
Sec. 1203. Small business energy efficiency.
Sec. 1204. Larger 504 loan limits to help business develop energy
efficient technologies and purchases.
Sec. 1205. Energy saving debentures.
Sec. 1206. Investments in energy saving small businesses.
Sec. 1207. Renewable fuel capital investment company.
Sec. 1208. Study and report.
TITLE XIII--SMART GRID
Sec. 1301. Statement of policy on modernization of electricity grid.
Sec. 1302. Smart grid system report.
Sec. 1303. Smart grid advisory committee and smart grid task force.
Sec. 1304. Smart grid technology research, development, and
demonstration.
Sec. 1305. Smart grid interoperability framework.
Sec. 1306. Federal matching fund for smart grid investment costs.
Sec. 1307. State consideration of smart grid.
Sec. 1308. Study of the effect of private wire laws on the development
of combined heat and power facilities.
Sec. 1309. DOE study of security attributes of smart grid systems.
TITLE XIV--POOL AND SPA SAFETY
Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.
Sec. 1404. Federal swimming pool and spa drain cover standard.
Sec. 1405. State swimming pool safety grant program.
Sec. 1406. Minimum State law requirements.
Sec. 1407. Education program.
[[Page 121 STAT. 1498]]
Sec. 1408. CPSC report.
TITLE XV--REVENUE PROVISIONS
Sec. 1500. Amendment of 1986 Code.
Sec. 1501. Extension of additional 0.2 percent FUTA surtax.
Sec. 1502. 7-year amortization of geological and geophysical
expenditures for certain major integrated oil companies.
TITLE XVI--EFFECTIVE DATE
Sec. 1601. Effective date.
SEC. 2. <<NOTE: 42 USC 17001.>> DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Institution of higher education.--The term ``institution
of higher education'' has the meaning given the term in section
101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 3. <<NOTE: 42 USC 17002.>> RELATIONSHIP TO OTHER LAW.
Except to the extent expressly provided in this Act or an amendment
made by this Act, nothing in this Act or an amendment made by this Act
supersedes, limits the authority provided or responsibility conferred
by, or authorizes any violation of any provision of law (including a
regulation), including any energy or environmental law or regulation.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
Subtitle A--Increased <<NOTE: Ten-in-Ten Fuel Economy Act.>> Corporate
Average Fuel Economy Standards
SEC. 101. <<NOTE: 42 USC 30101 note.>> SHORT TITLE.
This subtitle may be cited as the ``Ten-in-Ten Fuel Economy Act''.
SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND CERTAIN
OTHER VEHICLES.
(a) Increased Standards.--Section 32902 of title 49, United States
Code, is amended--
(1) in subsection (a)--
(A) by striking ``Non-Passenger Automobiles.--''
and inserting ``Prescription of Standards by
Regulation.--'';
(B) by striking ``(except passenger automobiles)''
in subsection (a); and
(C) by striking the last sentence;
(2) by striking subsection (b) and inserting the following:
``(b) Standards for Automobiles and Certain Other Vehicles.--
[[Page 121 STAT. 1499]]
``(1) In general.--The Secretary of Transportation, after
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, shall prescribe separate
average fuel economy standards for--
``(A) passenger automobiles manufactured by
manufacturers in each model year beginning with model
year 2011 in accordance with this subsection;
``(B) non-passenger automobiles manufactured by
manufacturers in each model year beginning with model
year 2011 in accordance with this subsection; and
``(C) work trucks and commercial medium-duty or
heavy-duty on-highway vehicles in accordance with
subsection (k).
``(2) Fuel economy standards for automobiles.--
``(A) Automobile fuel economy average for model
years 2011 through 2020.--The Secretary shall prescribe
a separate average fuel economy standard for passenger
automobiles and a separate average fuel economy standard
for non-passenger automobiles for each model year
beginning with model year 2011 to achieve a combined
fuel economy average for model year 2020 of at least 35
miles per gallon for the total fleet of passenger and
non-passenger automobiles manufactured for sale in the
United States for that model year.
``(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 each fleet of passenger and non-passenger automobiles
manufactured for sale in the United States shall be the
maximum feasible average fuel economy standard for each
fleet for that model year.
``(C) Progress toward standard required.--In
prescribing average fuel economy standards under
subparagraph (A), the Secretary shall prescribe annual
fuel economy standard increases that increase the
applicable average fuel economy standard ratably
beginning with model year 2011 and ending with model
year 2020.
``(3) Authority of the <<NOTE: Regulations.>> secretary.--
The Secretary shall--
``(A) prescribe by regulation separate average fuel
economy standards for passenger and non-passenger
automobiles based on 1 or more vehicle attributes
related to fuel economy and express each standard in the
form of a mathematical function; and
``(B) issue regulations under this title prescribing
average fuel economy standards for at least 1, but not
more than 5, model years.
``(4) Minimum standard.--In addition to any standard
prescribed pursuant to paragraph (3), each manufacturer shall
also meet the minimum standard for domestically manufactured
passenger automobiles, which shall be the greater of--
``(A) 27.5 miles per gallon; or
``(B) 92 <<NOTE: Federal
Register, publication.>> percent of the average fuel
economy projected by the Secretary for the combined
domestic and non-domestic passenger automobile fleets
manufactured for sale in the United States by all
manufacturers in the model year, which projection shall
be published in the Federal
[[Page 121 STAT. 1500]]
Register when the standard for that model year is
promulgated in accordance with this section.''; and
(3) in subsection (c)--
(A) by striking ``(1) Subject to paragraph (2) of
this subsection, the'' and inserting ``The''; and
(B) by striking paragraph (2).
(b) Fuel Economy Standard for Commercial Medium-Duty and Heavy-Duty
On-Highway Vehicles and Work Trucks.--Section 32902 of title 49, United
States Code, is amended by adding at the end the following:
``(k) Commercial Medium- and Heavy-Duty On-Highway Vehicles and Work
Trucks.--
``(1) Study.--Not later than 1 year after the National
Academy of Sciences publishes the results of its study under
section 108 of the Ten-in-Ten Fuel Economy Act, the Secretary of
Transportation, in consultation with the Secretary of Energy and
the Administrator of the Environmental Protection Agency, shall
examine the fuel efficiency of commercial medium- and heavy-duty
on-highway vehicles and work trucks and determine--
``(A) the appropriate test procedures and
methodologies for measuring the fuel efficiency of such
vehicles and work trucks;
``(B) the appropriate metric for measuring and
expressing commercial medium- and heavy-duty on-highway
vehicle and work truck fuel efficiency performance,
taking into consideration, among other things, the work
performed by such on-highway vehicles and work trucks
and types of operations in which they are used;
``(C) the range of factors, including, without
limitation, design, functionality, use, duty cycle,
infrastructure, and total overall energy consumption and
operating costs that affect commercial medium- and
heavy-duty on-highway vehicle and work truck fuel
efficiency; and
``(D) such other factors and conditions that could
have an impact on a program to improve commercial
medium- and heavy-duty on-highway vehicle and work truck
fuel efficiency.
``(2) Rulemaking.--Not <<NOTE: Deadline.>> later than 24
months after completion of the study required under paragraph
(1), the Secretary, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection Agency, by
regulation, shall determine in a rulemaking proceeding how to
implement a commercial medium- and heavy-duty on-highway vehicle
and work truck fuel efficiency improvement program designed to
achieve the maximum feasible improvement, and shall adopt and
implement appropriate test methods, measurement metrics, fuel
economy standards, and compliance and enforcement protocols that
are appropriate, cost-effective, and technologically feasible
for commercial medium- and heavy-duty on-highway vehicles and
work trucks. The Secretary may prescribe separate standards for
different classes of vehicles under this subsection.
``(3) Lead-time; regulatory stability.--The commercial
medium- and heavy-duty on-highway vehicle and work truck fuel
economy standard adopted pursuant to this subsection shall
provide not less than--
[[Page 121 STAT. 1501]]
``(A) 4 full model years of regulatory lead-time;
and
``(B) 3 full model years of regulatory stability.''.
SEC. 103. 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 and rated at less than
10,000 pounds gross vehicle weight, except--
``(A) a vehicle operated only on a rail line;
``(B) a vehicle manufactured in different stages by
2 or more manufacturers, if no intermediate or final-
stage manufacturer of that vehicle manufactures more
than 10,000 multi-stage vehicles per year; or
``(C) a work truck.'';
(2) by redesignating paragraphs (7) through (16) as
paragraphs (8) through (17), respectively;
(3) by inserting after paragraph (6) the following:
``(7) `commercial medium- and heavy-duty on-highway vehicle'
means an on-highway vehicle with a gross vehicle weight rating
of 10,000 pounds or more.'';
(4) in paragraph (9)(A), as redesignated, by inserting ``or
a mixture of biodiesel and diesel fuel meeting the standard
established by the American Society for Testing and Materials or
under section 211(u) of the Clean Air Act (42 U.S.C. 7545(u))
for fuel containing 20 percent biodiesel (commonly known as
`B20')'' after ``alternative fuel'';
(5) by redesignating paragraph (17), as redesignated, as
paragraph (18);
(6) by inserting after paragraph (16), as redesignated, the
following:
``(17) `non-passenger automobile' means an automobile that
is not a passenger automobile or a work truck.''; and
(7) by adding at the end the following:
``(19) `work truck' means a vehicle that--
``(A) is rated at between 8,500 and 10,000 pounds
gross vehicle weight; and
``(B) is not a medium-duty passenger vehicle (as
defined in section 86.1803-01 of title 40, Code of
Federal Regulations, as in effect on the date of the
enactment of the Ten-in-Ten Fuel Economy Act).''.
SEC. 104. CREDIT TRADING PROGRAM.
(a) In General.--Section 32903 of title 49, United States Code, is
amended--
(1) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsections (a) through (d) of
section 32902'';
(2) in subsection (a)(2)--
(A) by striking ``3 consecutive model years'' and
inserting ``5 consecutive model years'';
(B) by striking ``clause (1) of this subsection,''
and inserting ``paragraph (1)'';
(3) by redesignating subsection (f) as subsection (h); and
(4) by inserting after subsection (e) the following:
[[Page 121 STAT. 1502]]
``(f) Credit Trading Among Manufacturers.--
``(1) In general.--The Secretary of Transportation may
establish, by regulation, a 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 such that the total oil savings
associated with manufacturers that exceed the prescribed
standards are preserved when trading credits to manufacturers
that fail to achieve the prescribed standards.
``(2) Limitation.--The trading of credits by a manufacturer
to the category of passenger automobiles manufactured
domestically is limited to the extent that the fuel economy
level of such automobiles shall comply with the requirements of
section 32902(b)(4), without regard to any trading of credits
from other manufacturers.
``(g) Credit Transferring Within a Manufacturer's Fleet.--
``(1) In general.--The <<NOTE: Regulations.>> Secretary of
Transportation shall establish by regulation a fuel economy
credit transferring program to allow any manufacturer whose
automobiles exceed any of the average fuel economy standards
prescribed under section 32902 to transfer the credits earned
under this section and to apply such credits within that
manufacturer's fleet to a compliance category of automobiles
that fails to achieve the prescribed standards.
``(2) Years for which used.--Credits transferred under this
subsection are available to be used in the same model years that
the manufacturer could have applied such credits under
subsections (a), (b), (d), and (e), as well as for the model
year in which the manufacturer earned such credits.
``(3) Maximum increase.--The maximum increase in any
compliance category attributable to transferred credits is--
``(A) for model years 2011 through 2013, 1.0 mile
per gallon;
``(B) for model years 2014 through 2017, 1.5 miles
per gallon; and
``(C) for model year 2018 and subsequent model
years, 2.0 miles per gallon.
``(4) Limitation.--The transfer of credits by a manufacturer
to the category of passenger automobiles manufactured
domestically is limited to the extent that the fuel economy
level of such automobiles shall comply with the requirements
under section 32904(b)(4), without regard to any transfer of
credits from other categories of automobiles described in
paragraph (6)(B).
``(5) Years available.--A credit may be transferred under
this subsection only if it is earned after model year 2010.
``(6) Definitions.--In this subsection:
``(A) Fleet.--The term `fleet' means all automobiles
manufactured by a manufacturer in a particular model
year.
``(B) Compliance category of automobiles.--The term
`compliance category of automobiles' means any of the
following 3 categories of automobiles for which
compliance is separately calculated under this chapter:
[[Page 121 STAT. 1503]]
``(i) Passenger automobiles manufactured
domestically.
``(ii) Passenger automobiles not manufactured
domestically.
``(iii) Non-passenger automobiles.''.
(b) Conforming Amendments.--
(1) Limitations.--Section 32902(h) of title 49, United
States Code, is amended--
(A) in paragraph (1), by striking ``and'' at the
end;
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) may not consider, when prescribing a fuel economy
standard, the trading, transferring, or availability of credits
under section 32903.''.
(2) Separate calculations.--Section 32904(b)(1)(B) is
amended by striking ``chapter.'' and inserting ``chapter, except
for the purposes of section 32903.''.
SEC. 105. CONSUMER INFORMATION.
Section 32908 of title 49, United States Code, is amended by adding
at the end the following:
``(g) Consumer <<NOTE: Regulations.>> Information.--
``(1) Program.--The Secretary of Transportation, in
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, shall develop and
implement by rule a program to require manufacturers--
``(A) to label new automobiles sold in the United
States with--
``(i) <<NOTE: Criteria. Deadline.>> information
reflecting an automobile's performance on the
basis of criteria that the Administrator shall
develop, not later than 18 months after the date
of the enactment of the Ten-in-Ten Fuel Economy
Act, to reflect fuel economy and greenhouse gas
and other emissions over the useful life of the
automobile;
``(ii) a rating system that would make it easy
for consumers to compare the fuel economy and
greenhouse gas and other emissions of automobiles
at the point of purchase, including a designation
of automobiles--
``(I) with the lowest greenhouse gas
emissions over the useful life of the
vehicles; and
``(II) the highest fuel economy; and
``(iii) a permanent and prominent display that
an automobile is capable of operating on an
alternative fuel; and
``(B) to include in the owner's manual for vehicles
capable of operating on alternative fuels information
that describes that capability and the benefits of using
alternative fuels, including the renewable nature and
environmental benefits of using alternative fuels.
``(2) Consumer education.--
``(A) In general.--The Secretary of Transportation,
in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
shall develop and implement by rule a consumer education
program to improve consumer understanding of automobile
[[Page 121 STAT. 1504]]
performance described in paragraph (1)(A)(i) and to
inform consumers of the benefits of using alternative
fuel in automobiles and the location of stations with
alternative fuel capacity.
``(B) Fuel savings education campaign.--The
Secretary of Transportation shall establish a consumer
education campaign on the fuel savings that would be
recognized from the purchase of vehicles equipped with
thermal management technologies, including energy
efficient air conditioning systems and glass.
``(3) Fuel tank labels for alternative fuel automobiles.--
The Secretary of Transportation shall by rule require a label to
be attached to the fuel compartment of vehicles capable of
operating on alternative fuels, with the form of alternative
fuel stated on the label. A label attached in compliance with
the requirements of section 32905(h) is deemed to meet the
requirements of this paragraph.
``(4) Rulemaking deadline.--The Secretary of Transportation
shall issue a final rule under this subsection not later than 42
months after the date of the enactment of the Ten-in-Ten Fuel
Economy Act.''.
SEC. 106. <<NOTE: 49 USC 32902 note.>> CONTINUED APPLICABILITY OF
EXISTING STANDARDS.
Nothing in this subtitle, or the amendments made by this subtitle,
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. 107. <<NOTE: 49 USC 32902 note.>> NATIONAL ACADEMY OF SCIENCES
STUDIES.
(a) In <<NOTE: Contracts.>> 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 and medium-duty
and heavy-duty truck fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the automotive and medium-duty and 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 subtitle.
(b) Report.--The Academy shall submit the report to the Secretary,
the Committee on Commerce, Science, and Transportation of the Senate,
and the Committee on Energy and Commerce of the House of
Representatives, with its findings and recommendations not later than 5
years after the date on which the Secretary executes the agreement with
the Academy.
(c) Quinquennial Updates.--After submitting the initial report, the
Academy shall update the report at 5 year intervals thereafter through
2025.
[[Page 121 STAT. 1505]]
SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY AND HEAVY-
DUTY TRUCK FUEL ECONOMY.
(a) In <<NOTE: Contracts.>> 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 medium-duty and heavy-duty truck fuel economy
standards, including--
(1) an assessment of technologies and costs to evaluate fuel
economy for medium-duty and heavy-duty trucks;
(2) an analysis of existing and potential technologies that
may be used practically to improve medium-duty and heavy-duty
truck fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the medium-duty and heavy-duty truck
manufacturing process;
(4) an assessment of how such technologies may be used to
meet fuel economy standards to be prescribed under section
32902(k) of title 49, United States Code, as amended by this
subtitle; and
(5) associated costs and other impacts on the operation of
medium-duty and heavy-duty trucks, including congestion.
(b) Report.--The Academy shall submit the report to the Secretary,
the Committee on Commerce, Science, and Transportation of the Senate,
and the Committee on Energy and Commerce of the House of
Representatives, with its findings and recommendations not later than 1
year after the date on which the Secretary executes the agreement with
the Academy.
SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.
(a) In General.--Section 32906 of title 49, United States Code, is
amended to read as follows:
``Sec. 32906. Maximum fuel economy increase for alternative fuel
automobiles
``(a) In General.--For each of model years 1993 through 2019 for
each category of automobile (except an electric automobile), the maximum
increase in average fuel economy for a manufacturer attributable to dual
fueled automobiles is--
``(1) 1.2 miles a gallon for each of model years 1993
through 2014;
``(2) 1.0 miles per gallon for model year 2015;
``(3) 0.8 miles per gallon for model year 2016;
``(4) 0.6 miles per gallon for model year 2017;
``(5) 0.4 miles per gallon for model year 2018;
``(6) 0.2 miles per gallon for model year 2019; and
``(7) 0 miles per gallon for model years after 2019.
``(b) Calculation.--In applying subsection (a), the Administrator of
the Environmental Protection Agency shall determine the increase in a
manufacturer's average fuel economy attributable to dual fueled
automobiles by subtracting from the manufacturer's average fuel economy
calculated under section 32905(e) the number equal to what the
manufacturer's average fuel economy would be if it were calculated by
the formula under section 32904(a)(1) by including as the denominator
for each model of dual fueled automobiles the fuel economy when the
automobiles are operated on gasoline or diesel fuel.''.
[[Page 121 STAT. 1506]]
(b) Conforming Amendments.--Section 32905 of title 49, United States
Code, is amended--
(1) in subsection (b), by striking ``1993-2010,'' and
inserting ``1993 through 2019,'';
(2) in subsection (d), by striking ``1993-2010,'' and
inserting ``1993 through 2019,'';
(3) by striking subsections (f) and (g); and
(4) by redesignating subsection (h) as subsection (f).
(c) B20 Biodiesel Flexible Fuel Credit.--Section 32905(b)(2) of
title 49, United States Code, is amended to read as follows:
``(2) .5 divided by the fuel economy--
``(A) measured under subsection (a) when operating
the model on alternative fuel; or
``(B) measured based on the fuel content of B20 when
operating the model on B20, which is deemed to contain
0.15 gallon of fuel.''.
SEC. 110. <<NOTE: 42 USC 32908 note.>> PERIODIC REVIEW OF ACCURACY OF
FUEL ECONOMY LABELING PROCEDURES.
Beginning in <<NOTE: Effective date. Deadlines.>> December 2009, and
not less often than every 5 years thereafter, the Administrator of the
Environmental Protection Agency, in consultation with the Secretary of
Transportation, 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 CFR 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) <<NOTE: Reports.>> submit a report to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Energy and Commerce of the House of Representatives
that describes the results of the reevaluation process.
SEC. 111. CONSUMER TIRE INFORMATION.
(a) In General.--Chapter 323 of title 49, United States Code, is
amended by inserting after section 32304 the following:
``Sec. 32304A. Consumer tire information
``(a) Rulemaking.--
``(1) In <<NOTE: Deadline.>> general.--Not later than 24
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
replacement tires designed for use on motor vehicles to educate
consumers about the effect of tires on automobile fuel
efficiency, safety, and durability.
``(2) Items included in rule.--The rulemaking shall
include--
``(A) a national tire fuel efficiency rating system
for motor vehicle replacement 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;
[[Page 121 STAT. 1507]]
``(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, safety, and durability of
replacement tires.
``(3) Applicability.--This section shall apply only to
replacement tires covered under section 575.104(c) of title 49,
Code of Federal Regulations, in effect on the date of the
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) Application With State and Local Laws and Regulations.--
Nothing in this section prohibits a State or political subdivision
thereof from enforcing a law or regulation on tire fuel efficiency
consumer information that was in effect on January 1, 2006. After a
requirement promulgated under this section is in effect, a State or
political subdivision thereof may adopt or enforce a law or regulation
on tire fuel efficiency consumer information enacted or promulgated
after January 1, 2006, if the requirements of that law or regulation are
identical to the requirement promulgated under this section. Nothing in
this section shall be construed to preempt a State or political
subdivision thereof from regulating the fuel efficiency of tires
(including establishing testing methods for determining compliance with
such standards) not otherwise preempted under this chapter.''.
(b) Enforcement.--Section 32308 of title 49, United States Code, is
amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Section 32304A.--Any <<NOTE: Penalties.>> person who fails to
comply with the national tire fuel efficiency information program under
section 32304A 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 323 of
title 49, United States Code, is amended by inserting after the item
relating to section 32304 the following:
``32304A. Consumer tire information''.
[[Page 121 STAT. 1508]]
SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.
Section 32912 of title 49, United States Code, is amended by adding
at the end 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 support rulemaking under this
chapter; and
``(2) 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 to make
grants to manufacturers for retooling, reequipping, or expanding
existing manufacturing facilities in the United States to
produce advanced technology vehicles and components.''.
SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.
(a) Repeal.--Paragraphs (6), (7), and (8) of section 32904(b) of
title 49, United States Code, are repealed.
(b) Effect of <<NOTE: 49 USC 32904 note.>> Repeal on Existing
Exemptions.--Any exemption granted under section 32904(b)(6) of title
49, United States Code, prior to the date of the enactment of this Act
shall remain in effect subject to its terms through model year 2013.
(c) Accrual and Use of Credits.--Any manufacturer holding an
exemption under section 32904(b)(6) of title 49, United States Code,
prior to the date of the enactment of this Act may accrue and use
credits under sections 32903 and 32905 of such title beginning with
model year 2011.
Subtitle B--Improved Vehicle Technology
SEC. 131. <<NOTE: 42 USC 17011.>> TRANSPORTATION ELECTRIFICATION.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Battery.--The term ``battery'' means an electrochemical
energy storage system powered directly by electrical current.
(3) Electric transportation technology.--The term ``electric
transportation technology'' means--
(A) technology used in vehicles that use an electric
motor for all or part of the motive power of the
vehicles, including battery electric, hybrid electric,
plug-in hybrid electric, fuel cell, and plug-in fuel
cell vehicles, or rail transportation; or
(B) equipment relating to transportation or mobile
sources of air pollution that use an electric motor to
replace an internal combustion engine for all or part of
the work of the equipment, including--
[[Page 121 STAT. 1509]]
(i) corded electric equipment linked to
transportation or mobile sources of air pollution;
and
(ii) electrification technologies at airports,
ports, truck stops, and material-handling
facilities.
(4) Nonroad vehicle.--The term ``nonroad vehicle'' means a
vehicle--
(A) powered--
(i) by a nonroad engine, as that term is
defined in section 216 of the Clean Air Act (42
U.S.C. 7550); or
(ii) fully or partially by an electric motor
powered by a fuel cell, a battery, or an off-board
source of electricity; and
(B) that is not a motor vehicle or a vehicle used
solely for competition.
(5) Plug-in electric drive vehicle.--The term ``plug-in
electric drive vehicle'' means a vehicle that--
(A) draws motive power from a battery with a
capacity of at least 4 kilowatt-hours;
(B) can be recharged from an external source of
electricity for motive power; and
(C) is a light-, medium-, or heavy-duty motor
vehicle or nonroad vehicle (as those terms are defined
in section 216 of the Clean Air Act (42 U.S.C. 7550)).
(6) Qualified electric transportation project.--The term
``qualified electric transportation project'' means an electric
transportation technology project that would significantly
reduce emissions of criteria pollutants, greenhouse gas
emissions, and petroleum, including--
(A) shipside or shoreside electrification for
vessels;
(B) truck-stop electrification;
(C) electric truck refrigeration units;
(D) battery-powered auxiliary power units for
trucks;
(E) electric airport ground support equipment;
(F) electric material and cargo handling equipment;
(G) electric or dual-mode electric rail;
(H) any distribution upgrades needed to supply
electricity to the project; and
(I) any ancillary infrastructure, including panel
upgrades, battery chargers, in-situ transformers, and
trenching.
(b) Plug-in Electric Drive Vehicle Program.--
(1) Establishment.--The Secretary shall establish a
competitive program to provide grants on a cost-shared basis to
State governments, local governments, metropolitan
transportation authorities, air pollution control districts,
private or nonprofit entities, or combinations of those
governments, authorities, districts, and entities, to carry out
one or more projects to encourage the use of plug-in electric
drive vehicles or other emerging electric vehicle technologies,
as determined by the Secretary.
(2) Administration.--The <<NOTE: Grants.>> Secretary shall,
in consultation with the Secretary of Transportation and the
Administrator, establish requirements for applications for
grants under this section, including reporting of data to be
summarized for dissemination to grantees and the public,
including safety,
[[Page 121 STAT. 1510]]
vehicle, and component performance, and vehicle and component
life cycle costs.
(3) Priority.--In making awards under this subsection, the
Secretary shall--
(A) give priority consideration to applications
that--
(i) encourage early widespread use of vehicles
described in paragraph (1); and
(ii) are likely to make a significant
contribution to the advancement of the production
of the vehicles in the United States; and
(B) ensure, to the maximum extent practicable, that
the program established under this subsection includes a
variety of applications, manufacturers, and end-uses.
(4) Reporting.--The Secretary shall require a grant
recipient under this subsection to submit to the Secretary, on
an annual basis, data relating to safety, vehicle performance,
life cycle costs, and emissions of vehicles demonstrated under
the grant, including emissions of greenhouse gases.
(5) Cost <<NOTE: Applicability.>> sharing.--Section 988 of
the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a
grant made under this subsection.
(6) Authorization of appropriations.--There is authorized to
be appropriated to carry out this subsection $90,000,000 for
each of fiscal years 2008 through 2012, of which not less than
\1/3\ of the total amount appropriated shall be available each
fiscal year to make grants to local and municipal governments.
(c) Near-Term <<NOTE: Grants.>> Transportation Sector
Electrification Program.--
(1) In <<NOTE: Deadline.>> general.--Not later than 1 year
after the date of enactment of this Act, the Secretary, in
consultation with the Secretary of Transportation and the
Administrator, shall establish a program to provide grants for
the conduct of qualified electric transportation projects.
(2) Priority.--In providing grants under this subsection,
the Secretary shall give priority to large-scale projects and
large-scale aggregators of projects.
(3) Cost <<NOTE: Applicability.>> sharing.--Section 988 of
the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a
grant made under this subsection.
(4) Authorization of appropriations.--There is authorized to
be appropriated to carry out this subsection $95,000,000 for
each of fiscal years 2008 through 2013.
(d) Education Program.--
(1) In general.--The Secretary shall develop a nationwide
electric drive transportation technology education program under
which the Secretary shall provide--
(A) teaching materials to secondary schools and high
schools; and
(B) assistance for programs relating to electric
drive system and component engineering to institutions
of higher education.
(2) Electric vehicle competition.--The program established
under paragraph (1) shall include a plug-in hybrid electric
vehicle competition for institutions of higher education, which
shall be known as the ``Dr. Andrew Frank Plug-In Electric
Vehicle Competition''.
[[Page 121 STAT. 1511]]
(3) Engineers.--In carrying out the program established
under paragraph (1), the Secretary shall provide financial
assistance to institutions of higher education to create new, or
support existing, degree programs to ensure the availability of
trained electrical and mechanical engineers with the skills
necessary for the advancement of--
(A) plug-in electric drive vehicles; and
(B) other forms of electric drive transportation
technology vehicles.
(4) Authorization of appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this subsection.
SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is
amended to read as follows:
``SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
``(a) Program.--
``(1) In general.--The Secretary shall establish a program
to encourage domestic production and sales of efficient hybrid
and advanced diesel vehicles and components of those vehicles.
``(2) Inclusions.--The program shall include grants to
automobile manufacturers and suppliers and hybrid component
manufacturers to encourage domestic production of efficient
hybrid, plug-in electric hybrid, plug-in electric drive, and
advanced diesel vehicles.
``(3) Priority.--Priority shall be given to the
refurbishment or retooling of manufacturing facilities that have
recently ceased operation or will cease operation in the near
future.
``(b) Coordination With State and Local Programs.--The Secretary may
coordinate implementation of this section with State and local programs
designed to accomplish similar goals, including the retention and
retraining of skilled workers from the manufacturing facilities,
including by establishing matching grant arrangements.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry out
this section.''.
SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is
amended--
(1) by redesignating subsections (a) through (d) as
subsections (b) through (e), respectively;
(2) by inserting before subsection (b) the following:
``(a) Definitions.--In this section:
``(1) Fuel cell electric vehicle.--The term `fuel cell
electric vehicle' means an on-road or non-road vehicle that uses
a fuel cell (as defined in section 803 of the Spark M. Matsunaga
Hydrogen Act of 2005 (42 U.S.C. 16152)).
``(2) Hybrid electric vehicle.--The term `hybrid electric
vehicle' means a new qualified hybrid motor vehicle (as defined
in section 30B(d)(3) of the Internal Revenue Code of 1986).
[[Page 121 STAT. 1512]]
``(3) Medium- or heavy-duty electric vehicle.--The term
`medium- or heavy-duty electric vehicle' means an electric,
hybrid electric, or plug-in hybrid electric vehicle with a gross
vehicle weight of more than 8,501 pounds.
``(4) Neighborhood electric vehicle.--The term `neighborhood
electric vehicle' means a 4-wheeled on-road or nonroad vehicle
that--
``(A) has a top attainable speed in 1 mile of more
than 20 mph and not more than 25 mph on a paved level
surface; and
``(B) is propelled by an electric motor and on-
board, rechargeable energy storage system that is
rechargeable using an off-board source of electricity.
``(5) Plug-in electric drive vehicle.--The term `plug-in
electric drive vehicle' means a vehicle that--
``(A) draws motive power from a battery with a
capacity of at least 4 kilowatt-hours;
``(B) can be recharged from an external source of
electricity for motive power; and
``(C) is a light-, medium-, or heavy duty motor
vehicle or nonroad vehicle (as those terms are defined
in section 216 of the Clean Air Act (42 U.S.C.
7550)).'';
(3) in subsection (b) (as redesignated by paragraph (1))--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) Allocation.--The Secretary''; and
(B) by adding at the end the following:
``(2) Electric <<NOTE: Deadline.>> vehicles.--Not later than
January 31, 2009, the Secretary shall--
``(A) allocate credit in an amount to be determined
by the Secretary for--
``(i) acquisition of--
``(I) a hybrid electric vehicle;
``(II) a plug-in electric drive
vehicle;
``(III) a fuel cell electric
vehicle;
``(IV) a neighborhood electric
vehicle; or
``(V) a medium- or heavy-duty
electric vehicle; and
``(ii) investment in qualified alternative
fuel infrastructure or nonroad equipment, as
determined by the Secretary; and
``(B) allocate more than 1, but not to exceed 5,
credits for investment in an emerging technology
relating to any vehicle described in subparagraph (A) to
encourage--
``(i) a reduction in petroleum demand;
``(ii) technological advancement; and
``(iii) a reduction in vehicle emissions.'';
(4) in subsection (c) (as redesignated by paragraph (1)), by
striking ``subsection (a)'' and inserting ``subsection (b)'';
and
(5) by adding at the end the following:
``(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2013.''.
[[Page 121 STAT. 1513]]
SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS
MANUFACTURERS.
(a) In General.--Section 712(a)(2) of the Energy Policy Act of 2005
(42 U.S.C. 16062(a)(2)) (as amended by section 132) is amended by
inserting ``and loan guarantees under section 1703'' after ``grants''.
(b) Conforming Amendment.--Section 1703(b) of the Energy Policy Act
of 2005 (42 U.S.C. 16513(b)) is amended by striking paragraph (8) and
inserting the following:
``(8) Production facilities for the manufacture of fuel
efficient vehicles or parts of those vehicles, including
electric drive vehicles and advanced diesel vehicles.''.
SEC. 135. <<NOTE: 42 USC 17012.>> ADVANCED BATTERY LOAN GUARANTEE
PROGRAM.
(a) Establishment of Program.--The Secretary shall establish a
program to provide guarantees of loans by private institutions for the
construction of facilities for the manufacture of advanced vehicle
batteries and battery systems that are developed and produced in the
United States, including advanced lithium ion batteries and hybrid
electrical system and component manufacturers and software designers.
(b) Requirements.--The Secretary may provide a loan guarantee under
subsection (a) to an applicant if--
(1) without a loan guarantee, credit is not available to the
applicant under reasonable terms or conditions sufficient to
finance the construction of a facility described in subsection
(a);
(2) the prospective earning power of the applicant and the
character and value of the security pledged provide a reasonable
assurance of repayment of the loan to be guaranteed in
accordance with the terms of the loan; and
(3) the loan bears interest at a rate determined by the
Secretary to be reasonable, taking into account the current
average yield on outstanding obligations of the United States
with remaining periods of maturity comparable to the maturity of
the loan.
(c) Criteria.--In selecting recipients of loan guarantees from among
applicants, the Secretary shall give preference to proposals that--
(1) meet all applicable Federal and State permitting
requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest need
for the facility.
(d) Maturity.--A loan guaranteed under subsection (a) shall have a
maturity of not more than 20 years.
(e) Terms and Conditions.--The loan agreement for a loan guaranteed
under subsection (a) shall provide that no provision of the loan
agreement may be amended or waived without the consent of the Secretary.
(f) Assurance of Repayment.--The Secretary shall require that an
applicant for a loan guarantee under subsection (a) provide an assurance
of repayment in the form of a performance bond, insurance, collateral,
or other means acceptable to the Secretary in an amount equal to not
less than 20 percent of the amount of the loan.
[[Page 121 STAT. 1514]]
(g) Guarantee Fee.--The recipient of a loan guarantee under
subsection (a) shall pay the Secretary an amount determined by the
Secretary to be sufficient to cover the administrative costs of the
Secretary relating to the loan guarantee.
(h) Full Faith and Credit.--The full faith and credit of the United
States is pledged to the payment of all guarantees made under this
section. Any such guarantee made by the Secretary shall be conclusive
evidence of the eligibility of the loan for the guarantee with respect
to principal and interest. The validity of the guarantee shall be
incontestable in the hands of a holder of the guaranteed loan.
(i) Reports.--Until each guaranteed loan under this section has been
repaid in full, the Secretary shall annually submit to Congress a report
on the activities of the Secretary under this section.
(j) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
(k) Termination of Authority.--The authority of the Secretary to
issue a loan guarantee under subsection (a) terminates on the date that
is 10 years after the date of enactment of this Act.
SEC. 136. <<NOTE: 42 USC 17013.>> ADVANCED TECHNOLOGY VEHICLES
MANUFACTURING INCENTIVE PROGRAM.
(a) Definitions.--In this section:
(1) Advanced technology vehicle.--The term ``advanced
technology vehicle'' means a light duty vehicle that meets--
(A) the Bin 5 Tier II emission standard established
in regulations issued by the Administrator of the
Environmental Protection Agency under section 202(i) of
the Clean Air Act (42 U.S.C. 7521(i)), or a lower-
numbered Bin emission standard;
(B) any new emission standard in effect for fine
particulate matter prescribed by the Administrator under
that Act (42 U.S.C. 7401 et seq.); and
(C) at least 125 percent of the average base year
combined fuel economy for vehicles with substantially
similar attributes.
(2) Combined fuel economy.--The term ``combined fuel
economy'' means--
(A) the combined city/highway miles per gallon
values, as reported in accordance with section 32904 of
title 49, United States Code; and
(B) in the case of an electric drive vehicle with
the ability to recharge from an off-board source, the
reported mileage, as determined in a manner consistent
with the Society of Automotive Engineers recommended
practice for that configuration or a similar practice
recommended by the Secretary.
(3) Engineering integration costs.--The term ``engineering
integration costs'' includes the cost of engineering tasks
relating to--
(A) incorporating qualifying components into the
design of advanced technology vehicles; and
[[Page 121 STAT. 1515]]
(B) designing tooling and equipment and developing
manufacturing processes and material suppliers for
production facilities that produce qualifying components
or advanced technology vehicles.
(4) Qualifying components.--The term ``qualifying
components'' means components that the Secretary determines to
be--
(A) designed for advanced technology vehicles; and
(B) installed for the purpose of meeting the
performance requirements of advanced technology
vehicles.
(b) Advanced <<NOTE: Awards.>> Vehicles Manufacturing Facility.--The
Secretary shall provide facility funding awards under this section to
automobile manufacturers and component suppliers to pay not more than 30
percent of the cost of--
(1) reequipping, expanding, or establishing a manufacturing
facility in the United States to produce--
(A) qualifying advanced technology vehicles; or
(B) qualifying components; and
(2) engineering integration performed in the United States
of qualifying vehicles and qualifying components.
(c) Period of <<NOTE: Applicability.>> Availability.--An award under
subsection (b) shall apply to--
(1) facilities and equipment placed in service before
December 30, 2020; and
(2) engineering integration costs incurred during the period
beginning on the date of enactment of this Act and ending on
December 30, 2020.
(d) Direct Loan Program.--
(1) In <<NOTE: Deadline.>> general.--Not later than 1 year
after the date of enactment of this Act, and subject to the
availability of appropriated funds, the Secretary shall carry
out a program to provide a total of not more than
$25,000,000,000 in loans to eligible individuals and entities
(as determined by the Secretary) for the costs of activities
described in subsection (b).
(2) Application.--An applicant for a loan under this
subsection shall submit to the Secretary an application at such
time, in such manner, and containing such information as the
Secretary may require, including a written assurance that--
(A) all laborers and mechanics employed by
contractors or subcontractors during construction,
alteration, or repair that is financed, in whole or in
part, by a loan under this section shall be paid wages
at rates not less than those prevailing on similar
construction in the locality, as determined by the
Secretary of Labor in accordance with sections 3141-
3144, 3146, and 3147 of title 40, United States Code;
and
(B) the Secretary of Labor shall, with respect to
the labor standards described in this paragraph, have
the authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (5 U.S.C. App.) and section
3145 of title 40, United States Code.
(3) Selection of eligible projects.--The Secretary shall
select eligible projects to receive loans under this subsection
in cases in which, as determined by the Secretary, the award
recipient--
(A) is financially viable without the receipt of
additional Federal funding associated with the proposed
project;
[[Page 121 STAT. 1516]]
(B) will provide sufficient information to the
Secretary for the Secretary to ensure that the qualified
investment is expended efficiently and effectively; and
(C) has met such other criteria as may be
established and published by the Secretary.
(4) Rates, terms, and repayment of loans.--A loan provided
under this subsection--
(A) shall have an interest rate that, as of the date
on which the loan is made, is equal to the cost of funds
to the Department of the Treasury for obligations of
comparable maturity;
(B) shall have a term equal to the lesser of--
(i) the projected life, in years, of the
eligible project to be carried out using funds
from the loan, as determined by the Secretary; and
(ii) 25 years;
(C) may be subject to a deferral in repayment for
not more than 5 years after the date on which the
eligible project carried out using funds from the loan
first begins operations, as determined by the Secretary;
and
(D) shall be made by the Federal Financing Bank.
(e) Improvement.--The <<NOTE: Regulations.>> Secretary shall issue
regulations that require that, in order for an automobile manufacturer
to be eligible for an award or loan under this section during a
particular year, the adjusted average fuel economy of the manufacturer
for light duty vehicles produced by the manufacturer during the most
recent year for which data are available shall be not less than the
average fuel economy for all light duty vehicles of the manufacturer for
model year 2005. In order to determine fuel economy baselines for
eligibility of a new manufacturer or a manufacturer that has not
produced previously produced equivalent vehicles, the Secretary may
substitute industry averages.
(f) Fees.--Administrative costs shall be no more than $100,000 or 10
basis point of the loan.
(g) Priority.--The Secretary shall, in making awards or loans to
those manufacturers that have existing facilities, give priority to
those facilities that are oldest or have been in existence for at least
20 years. Such facilities can currently be sitting idle.
(h) Set Aside for Small Automobile Manufacturers and Component
Suppliers.--
(1) Definition of covered firm.--In this subsection, the
term ``covered firm'' means a firm that--
(A) employs less than 500 individuals; and
(B) manufactures automobiles or components of
automobiles.
(2) Set aside.--Of the amount of funds that are used to
provide awards for each fiscal year under subsection (b), the
Secretary shall use not less than 10 percent to provide awards
to covered firms or consortia led by a covered firm.
(i) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.
[[Page 121 STAT. 1517]]
Subtitle C--Federal Vehicle Fleets
SEC. 141. FEDERAL VEHICLE FLEETS.
Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is
amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Vehicle Emission Requirements.--
``(1) Definitions.--In this subsection:
``(A) Federal agency.--The term `Federal agency'
does not include any office of the legislative branch,
except that it does include the House of Representatives
with respect to an acquisition described in paragraph
(2)(C).
``(B) Medium duty passenger vehicle.--The term
`medium duty passenger vehicle' has the meaning given
that term section 523.2 of title 49 of the Code of
Federal Regulations, as in effect on the date of
enactment of this paragraph.
``(C) Member's representational allowance.--The term
`Member's Representational Allowance' means the
allowance described in section 101(a) of the House of
Representatives Administrative Reform Technical
Corrections Act (2 U.S.C. 57b(a)).
``(2) Prohibition.--
``(A) In general.--Except as provided in
subparagraph (B), no Federal agency shall acquire a
light duty motor vehicle or medium duty passenger
vehicle that is not a low greenhouse gas emitting
vehicle.
``(B) Exception.--
The <<NOTE: Certification.>> prohibition in subparagraph
(A) shall not apply to acquisition of a vehicle if the
head of the agency certifies in writing, in a separate
certification for each individual vehicle purchased,
either--
``(i) that no low greenhouse gas emitting
vehicle is available to meet the functional needs
of the agency and details in writing the
functional needs that could not be met with a low
greenhouse gas emitting vehicle; or
``(ii) that the agency has taken specific
alternative more cost-effective measures to reduce
petroleum consumption that--
``(I) have reduced a measured and
verified quantity of greenhouse gas
emissions equal to or greater than the
quantity of greenhouse gas reductions
that would have been achieved through
acquisition of a low greenhouse gas
emitting vehicle over the lifetime of
the vehicle; or
``(II) will reduce each year a
measured and verified quantity of
greenhouse gas emissions equal to or
greater than the quantity of greenhouse
gas reductions that would have been
achieved each year through acquisition
of a low greenhouse gas emitting
vehicle.
``(C) Special <<NOTE: Applicability.>> rule for
vehicles provided by funds contained in members'
representational allowance.--This paragraph shall apply
to the acquisition of a light
[[Page 121 STAT. 1518]]
duty motor vehicle or medium duty passenger vehicle
using any portion of a Member's Representational
Allowance, including an acquisition under a long-term
lease.
``(3) Guidance.--
``(A) In general.--Each year, the Administrator of
the Environmental Protection Agency shall issue guidance
identifying the makes and model numbers of vehicles that
are low greenhouse gas emitting vehicles.
``(B) Consideration.--In identifying vehicles under
subparagraph (A), the Administrator shall take into
account the most stringent standards for vehicle
greenhouse gas emissions applicable to and enforceable
against motor vehicle manufacturers for vehicles sold
anywhere in the United States.
``(C) Requirement.--The Administrator shall not
identify any vehicle as a low greenhouse gas emitting
vehicle if the vehicle emits greenhouse gases at a
higher rate than such standards allow for the
manufacturer's fleet average grams per mile of carbon
dioxide-equivalent emissions for that class of vehicle,
taking into account any emissions allowances and
adjustment factors such standards provide.''.
SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.
Part J of title III of the Energy Policy and Conservation Act (42
U.S.C. 6374 et seq.) is amended by adding at the end the following:
``SEC. 400FF. <<NOTE: 42 USC 6374e.>> FEDERAL FLEET CONSERVATION
REQUIREMENTS.
``(a) Mandatory Reduction in Petroleum Consumption.--
``(1) In <<NOTE: Deadline. Regulations.>> general.--Not
later than 18 months after the date of enactment of this
section, the Secretary shall issue regulations for Federal
fleets subject to section 400AA to require that, beginning in
fiscal year 2010, each Federal agency shall reduce petroleum
consumption and increase alternative fuel consumption each year
by an amount necessary to meet the goals described in paragraph
(2).
``(2) Goals.--The <<NOTE: Deadline.>> goals of the
requirements under paragraph (1) are that not later than October
1, 2015, and for each year thereafter, each Federal agency shall
achieve at least a 20 percent reduction in annual petroleum
consumption and a 10 percent increase in annual alternative fuel
consumption, as calculated from the baseline established by the
Secretary for fiscal year 2005.
``(3) Milestones.--The Secretary shall include in the
regulations described in paragraph (1)--
``(A) interim numeric milestones to assess annual
agency progress towards accomplishing the goals
described in that paragraph; and
``(B) a requirement that agencies annually report on
progress towards meeting each of the milestones and the
2015 goals.
``(b) Plan.--
``(1) Requirement.--
``(A) In general.--The regulations under subsection
(a) shall require each Federal agency to develop a plan,
and implement the measures specified in the plan by
dates
[[Page 121 STAT. 1519]]
specified in the plan, to meet the required petroleum
reduction levels and the alternative fuel consumption
increases, including the milestones specified by the
Secretary.
``(B) Inclusions.--The plan shall--
``(i) identify the specific measures the
agency will use to meet the requirements of
subsection (a)(2); and
``(ii) quantify the reductions in petroleum
consumption or increases in alternative fuel
consumption projected to be achieved by each
measure each year.
``(2) Measures.--The plan may allow an agency to meet the
required petroleum reduction level through--
``(A) the use of alternative fuels;
``(B) the acquisition of vehicles with higher fuel
economy, including hybrid vehicles, neighborhood
electric vehicles, electric vehicles, and plug-in hybrid
vehicles if the vehicles are commercially available;
``(C) the substitution of cars for light trucks;
``(D) an increase in vehicle load factors;
``(E) a decrease in vehicle miles traveled;
``(F) a decrease in fleet size; and
``(G) other measures.''.
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS
Subtitle A--Renewable Fuel Standard
SEC. 201. DEFINITIONS.
Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is
amended to read as follows:
``(1) Definitions.--In this section:
``(A) Additional renewable fuel.--The term
`additional renewable fuel' means fuel that is produced
from renewable biomass and that is used to replace or
reduce the quantity of fossil fuel present in home
heating oil or jet fuel.
``(B) Advanced biofuel.--
``(i) In general.--The term `advanced biofuel'
means renewable fuel, other than ethanol derived
from corn starch, that has lifecycle greenhouse
gas emissions, as determined by the Administrator,
after notice and opportunity for comment, that are
at least 50 percent less than baseline lifecycle
greenhouse gas emissions.
``(ii) Inclusions.--The types of fuels
eligible for consideration as `advanced biofuel'
may include any of the following:
``(I) Ethanol derived from
cellulose, hemicellulose, or lignin.
``(II) Ethanol derived from sugar or
starch (other than corn starch).
``(III) Ethanol derived from waste
material, including crop residue, other
vegetative waste material, animal waste,
and food waste and yard waste.
[[Page 121 STAT. 1520]]
``(IV) Biomass-based diesel.
``(V) Biogas (including landfill gas
and sewage waste treatment gas) produced
through the conversion of organic matter
from renewable biomass.
``(VI) Butanol or other alcohols
produced through the conversion of
organic matter from renewable biomass.
``(VII) Other fuel derived from
cellulosic biomass.
``(C) Baseline lifecycle greenhouse gas emissions.--
The term `baseline lifecycle greenhouse gas emissions'
means the average lifecycle greenhouse gas emissions, as
determined by the Administrator, after notice and
opportunity for comment, for gasoline or diesel
(whichever is being replaced by the renewable fuel) sold
or distributed as transportation fuel in 2005.
``(D) Biomass-based <<NOTE: Notice.>> diesel.--The
term `biomass-based diesel' means renewable fuel that is
biodiesel as defined in section 312(f) of the Energy
Policy Act of 1992 (42 U.S.C. 13220(f)) and that has
lifecycle greenhouse gas emissions, as determined by the
Administrator, after notice and opportunity for comment,
that are at least 50 percent less than the baseline
lifecycle greenhouse gas emissions. Notwithstanding the
preceding sentence, renewable fuel derived from co-
processing biomass with a petroleum feedstock shall be
advanced biofuel if it meets the requirements of
subparagraph (B), but is not biomass-based diesel.
``(E) Cellulosic biofuel.--The term `cellulosic
biofuel' means renewable fuel derived from any
cellulose, hemicellulose, or lignin that is derived from
renewable biomass and that has lifecycle greenhouse gas
emissions, as determined by the Administrator, that are
at least 60 percent less than the baseline lifecycle
greenhouse gas emissions.
``(F) Conventional biofuel.--The term `conventional
biofuel' means renewable fuel that is ethanol derived
from corn starch.
``(G) Greenhouse gas.--The term `greenhouse gas'
means carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, sulfur hexafluoride.
The Administrator may include any other
anthropogenically-emitted gas that is determined by the
Administrator, after notice and comment, to contribute
to global warming.
``(H) Lifecycle greenhouse gas emissions.--The term
`lifecycle greenhouse gas emissions' means the aggregate
quantity of greenhouse gas emissions (including direct
emissions and significant indirect emissions such as
significant emissions from land use changes), as
determined by the Administrator, related to the full
fuel lifecycle, including all stages of fuel and
feedstock production and distribution, from feedstock
generation or extraction through the distribution and
delivery and use of the finished fuel to the ultimate
consumer, where the mass values for all greenhouse gases
are adjusted to account for their relative global
warming potential.
``(I) Renewable biomass.--The term `renewable
biomass' means each of the following:
[[Page 121 STAT. 1521]]
``(i) Planted crops and crop residue harvested
from agricultural land cleared or cultivated at
any time prior to the enactment of this sentence
that is either actively managed or fallow, and
nonforested.
``(ii) Planted trees and tree residue from
actively managed tree plantations on non-federal
land cleared at any time prior to enactment of
this sentence, including land belonging to an
Indian tribe or an Indian individual, that is held
in trust by the United States or subject to a
restriction against alienation imposed by the
United States.
``(iii) Animal waste material and animal
byproducts.
``(iv) Slash and pre-commercial thinnings that
are from non-federal forestlands, including
forestlands belonging to an Indian tribe or an
Indian individual, that are held in trust by the
United States or subject to a restriction against
alienation imposed by the United States, but not
forests or forestlands that are ecological
communities with a global or State ranking of
critically imperiled, imperiled, or rare pursuant
to a State Natural Heritage Program, old growth
forest, or late successional forest.
``(v) Biomass obtained from the immediate
vicinity of buildings and other areas regularly
occupied by people, or of public infrastructure,
at risk from wildfire.
``(vi) Algae.
``(vii) Separated yard waste or food waste,
including recycled cooking and trap grease.
``(J) Renewable fuel.--The term `renewable fuel'
means fuel that is produced from renewable biomass and
that is used to replace or reduce the quantity of fossil
fuel present in a transportation fuel.
``(K) Small refinery.--The term `small refinery'
means a refinery for which the average aggregate daily
crude oil throughput for a calendar year (as determined
by dividing the aggregate throughput for the calendar
year by the number of days in the calendar year) does
not exceed 75,000 barrels.
``(L) Transportation fuel.--The term `transportation
fuel' means fuel for use in motor vehicles, motor
vehicle engines, nonroad vehicles, or nonroad engines
(except for ocean-going vessels).''.
SEC. 202. RENEWABLE FUEL STANDARD.
(a) Renewable Fuel Program.--Paragraph (2) of section 211(o) (42
U.S.C. 7545(o)(2)) of the Clean Air Act is amended as follows:
(1) Regulations.--Clause (i) of subparagraph (A) is amended
by adding the <<NOTE: Deadline.>> following at the end thereof:
``Not later than 1 year after the date of enactment of this
sentence, the Administrator shall revise the regulations under
this paragraph to ensure that transportation fuel sold or
introduced into commerce in the United States (except in
noncontiguous States or territories), on an annual average
basis, contains at least the applicable volume of renewable
fuel, advanced biofuel, cellulosic biofuel, and biomass-based
diesel, determined
[[Page 121 STAT. 1522]]
in accordance with subparagraph (B) and, in the case of any such
renewable fuel produced from new facilities that commence
construction after the date of enactment of this sentence,
achieves at least a 20 percent reduction in lifecycle greenhouse
gas emissions compared to baseline lifecycle greenhouse gas
emissions.''.
(2) Applicable volumes of renewable fuel.--Subparagraph (B)
is amended to read as follows:
``(B) Applicable volumes.--
``(i) Calendar years after 2005.--
``(I) Renewable fuel.--For the
purpose of subparagraph (A), the
applicable volume of renewable fuel for
the calendar years 2006 through 2022
shall be determined in accordance with
the following table:
Applicable volume of renewable fuel.......
``Calendar(in billions of gallons):.................
2006.................................. 4.0
2007.................................. 4.7
2008.................................. 9.0
2009.................................. 11.1
2010.................................. 12.95
2011.................................. 13.95
2012.................................. 15.2
2013.................................. 16.55
2014.................................. 18.15
2015.................................. 20.5
2016.................................. 22.25
2017.................................. 24.0
2018.................................. 26.0
2019.................................. 28.0
2020.................................. 30.0
2021.................................. 33.0
2022.................................. 36.0
``(II) Advanced biofuel.--For the
purpose of subparagraph (A), of the
volume of renewable fuel required under
subclause (I), the applicable volume of
advanced biofuel for the calendar years
2009 through 2022 shall be determined in
accordance with the following table:
Applicable volume of advanced biofuel.....
``Calendar(in billions of gallons):.................
2009.................................. 0.6
2010.................................. 0.95
2011.................................. 1.35
2012.................................. 2.0
2013.................................. 2.75
2014.................................. 3.75
2015.................................. 5.5
2016.................................. 7.25
2017.................................. 9.0
2018.................................. 11.0
2019.................................. 13.0
2020.................................. 15.0
2021.................................. 18.0
2022.................................. 21.0
[[Page 121 STAT. 1523]]
``(III) Cellulosic biofuel.--For the
purpose of subparagraph (A), of the
volume of advanced biofuel required
under subclause (II), the applicable
volume of cellulosic biofuel for the
calendar years 2010 through 2022 shall
be determined in accordance with the
following table:
Applicable volume of cellulosic biofuel...
``Calendar(in billions of gallons):.................
2010.................................. 0.1
2011.................................. 0.25
2012.................................. 0.5
2013.................................. 1.0
2014.................................. 1.75
2015.................................. 3.0
2016.................................. 4.25
2017.................................. 5.5
2018.................................. 7.0
2019.................................. 8.5
2020.................................. 10.5
2021.................................. 13.5
2022.................................. 16.0
``(IV) Biomass-based diesel.--For
the purpose of subparagraph (A), of the
volume of advanced biofuel required
under subclause (II), the applicable
volume of biomass-based diesel for the
calendar years 2009 through 2012 shall
be determined in accordance with the
following table:
Applicable volume of biomass-based diesel.
``Calendar(in billions of gallons):.................
2009.................................. 0.5
2010.................................. 0.65
2011.................................. 0.80
2012.................................. 1.0
``(ii) Other calendar years.--For the purposes
of subparagraph (A), the applicable volumes of
each fuel specified in the tables in clause (i)
for calendar years after the calendar years
specified in the tables shall be determined by the
Administrator, in coordination with the Secretary
of Energy and the Secretary of Agriculture, based
on a review of the implementation of the program
during calendar years specified in the tables, and
an analysis of--
``(I) the impact of the production
and use of renewable fuels on the
environment, including on air quality,
climate change, conversion of wetlands,
ecosystems, wildlife habitat, water
quality, and water supply;
``(II) the impact of renewable fuels
on the energy security of the United
States;
``(III) the expected annual rate of
future commercial production of
renewable fuels, including advanced
biofuels in each category (cellulosic
biofuel and biomass-based diesel);
[[Page 121 STAT. 1524]]
``(IV) the impact of renewable fuels
on the infrastructure of the United
States, including deliverability of
materials, goods, and products other
than renewable fuel, and the sufficiency
of infrastructure to deliver and use
renewable fuel;
``(V) the impact of the use of
renewable fuels on the cost to consumers
of transportation fuel and on the cost
to transport goods; and
``(VI) the impact of the use of
renewable fuels on other factors,
including job creation, the price and
supply of agricultural commodities,
rural economic development, and food
prices.
The <<NOTE: Regulations. Deadline.>> Administrator
shall promulgate rules establishing the applicable
volumes under this clause no later than 14 months
before the first year for which such applicable
volume will apply.
``(iii) Applicable volume of advanced
biofuel.--For the purpose of making the
determinations in clause (ii), for each calendar
year, the applicable volume of advanced biofuel
shall be at least the same percentage of the
applicable volume of renewable fuel as in calendar
year 2022.
``(iv) Applicable volume of cellulosic
biofuel.--For the purpose of making the
determinations in clause (ii), for each calendar
year, the applicable volume of cellulosic biofuel
established by the Administrator shall be based on
the assumption that the Administrator will not
need to issue a waiver for such years under
paragraph (7)(D).
``(v) Minimum applicable volume of biomass-
based diesel.--For the purpose of making the
determinations in clause (ii), the applicable
volume of biomass-based diesel shall not be less
than the applicable volume listed in clause
(i)(IV) for calendar year 2012.''.
(b) Applicable Percentages.--Paragraph (3) of section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)(3)) is amended as follows:
(1) In subparagraph (A), by striking ``2011'' and inserting
``2021''.
(2) In subparagraph (A), by striking ``gasoline'' and
inserting ``transportation fuel, biomass-based diesel, and
cellulosic biofuel''.
(3) In subparagraph (B), by striking ``2012'' and inserting
``2021'' in clause (i).
(4) In subparagraph (B), by striking ``gasoline'' and
inserting ``transportation fuel'' in clause (ii)(II).
(c) Modification of Greenhouse Gas Percentages.--Paragraph (4) of
section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(4)) is amended to
read as follows:
``(4) Modification of greenhouse gas reduction
percentages.--
``(A) In general.--The Administrator may, in the
regulations under the last sentence of paragraph
(2)(A)(i), adjust the 20 percent, 50 percent, and 60
percent reductions in lifecycle greenhouse gas emissions
specified in paragraphs (2)(A)(i) (relating to renewable
fuel), (1)(D) (relating to biomass-based diesel),
(1)(B)(i) (relating to advanced biofuel),
[[Page 121 STAT. 1525]]
and (1)(E) (relating to cellulosic biofuel) to a lower
percentage. For the 50 and 60 percent reductions, the
Administrator may make such an adjustment only if he
determines that generally such reduction is not
commercially feasible for fuels made using a variety of
feedstocks, technologies, and processes to meet the
applicable reduction.
``(B) Amount of adjustment.--In promulgating
regulations under this paragraph, the specified 50
percent reduction in greenhouse gas emissions from
advanced biofuel and in biomass-based diesel may not be
reduced below 40 percent. The specified 20 percent
reduction in greenhouse gas emissions from renewable
fuel may not be reduced below 10 percent, and the
specified 60 percent reduction in greenhouse gas
emissions from cellulosic biofuel may not be reduced
below 50 percent.
``(C) Adjusted reduction levels.--An adjustment
under this paragraph to a percent less than the
specified 20 percent greenhouse gas reduction for
renewable fuel shall be the minimum possible adjustment,
and the adjusted greenhouse gas reduction shall be
established by the Administrator at the maximum
achievable level, taking cost in consideration, for
natural gas fired corn-based ethanol plants, allowing
for the use of a variety of technologies and processes.
An adjustment in the 50 or 60 percent greenhouse gas
levels shall be the minimum possible adjustment for the
fuel or fuels concerned, and the adjusted greenhouse gas
reduction shall be established at the maximum achievable
level, taking cost in consideration, allowing for the
use of a variety of feedstocks, technologies, and
processes.
``(D) 5-year <<NOTE: Deadline.>> review.--Whenever
the Administrator makes any adjustment under this
paragraph, not later than 5 years thereafter he shall
review and revise (based upon the same criteria and
standards as required for the initial adjustment) the
regulations establishing the adjusted level.
``(E) Subsequent adjustments.--After the
Administrator has promulgated a final rule under the
last sentence of paragraph (2)(A)(i) with respect to the
method of determining lifecycle greenhouse gas
emissions, except as provided in subparagraph (D), the
Administrator may not adjust the percent greenhouse gas
reduction levels unless he determines that there has
been a significant change in the analytical methodology
used for determining the lifecycle greenhouse gas
emissions. If he makes such determination, he may adjust
the 20, 50, or 60 percent reduction levels through
rulemaking using the criteria and standards set forth in
this paragraph.
``(F) Limit on upward adjustments.--If, under
subparagraph (D) or (E), the Administrator revises a
percent level adjusted as provided in subparagraphs (A),
(B), and (C) to a higher percent, such higher percent
may not exceed the applicable percent specified in
paragraph (2)(A)(i), (1)(D), (1)(B)(i), or (1)(E).
``(G) Applicability of adjustments.--If the
Administrator adjusts, or revises, a percent level
referred to in
[[Page 121 STAT. 1526]]
this paragraph or makes a change in the analytical
methodology used for determining the lifecycle
greenhouse gas emissions, such adjustment, revision, or
change (or any combination thereof) shall only apply to
renewable fuel from new facilities that commence
construction after the effective date of such
adjustment, revision, or change.''.
(d) Credits for Additional Renewable Fuel.--Paragraph (5) of section
211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is amended by adding
the following new subparagraph at the end thereof:
``(E) Credits for additional renewable fuel.--The
Administrator may issue regulations providing: (i) for
the generation of an appropriate amount of credits by
any person that refines, blends, or imports additional
renewable fuels specified by the Administrator; and (ii)
for the use of such credits by the generator, or the
transfer of all or a portion of the credits to another
person, for the purpose of complying with paragraph
(2).''.
(e) Waivers.--
(1) In general.--Paragraph (7)(A) of section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is amended by inserting
``, by any person subject to the requirements of this
subsection, or by the Administrator on his own motion'' after
``one or more States'' in subparagraph (A) and by striking out
``State'' in subparagraph (B).
(2) Cellulosic biofuel.--Paragraph (7) of section 211(o) of
the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding
the following at the end thereof:
``(D) Cellulosic <<NOTE: Deadline.>> biofuel.--(i)
For any calendar year for which the projected volume of
cellulosic biofuel production is less than the minimum
applicable volume established under paragraph (2)(B), as
determined by the Administrator based on the estimate
provided under paragraph (3)(A), not later than November
30 of the preceding calendar year, the Administrator
shall reduce the applicable volume of cellulosic biofuel
required under paragraph (2)(B) to the projected volume
available during that calendar year. For any calendar
year in which the Administrator makes such a reduction,
the Administrator may also reduce the applicable volume
of renewable fuel and advanced biofuels requirement
established under paragraph (2)(B) by the same or a
lesser volume.
``(ii) Whenever the Administrator reduces the
minimum cellulosic biofuel volume under this
subparagraph, the Administrator shall make available for
sale cellulosic biofuel credits at the higher of $0.25
per gallon or the amount by which $3.00 per gallon
exceeds the average wholesale price of a gallon of
gasoline in the United States. Such amounts shall be
adjusted for inflation by the Administrator for years
after 2008.
``(iii) <<NOTE: Deadline. Regulations.>> Eighteen
months after the date of enactment of this subparagraph,
the Administrator shall promulgate regulations to govern
the issuance of credits under this subparagraph. The
regulations shall set forth the method for determining
the exact price of credits in the event of a waiver. The
price of such credits shall not be changed more
frequently than once each quarter. These regulations
[[Page 121 STAT. 1527]]
shall include such provisions, including limiting the
credits' uses and useful life, as the Administrator
deems appropriate to assist market liquidity and
transparency, to provide appropriate certainty for
regulated entities and renewable fuel producers, and to
limit any potential misuse of cellulosic biofuel credits
to reduce the use of other renewable fuels, and for such
other purposes as the Administrator determines will help
achieve the goals of this subsection. The regulations
shall limit the number of cellulosic biofuel credits for
any calendar year to the minimum applicable volume (as
reduced under this subparagraph) of cellulosic biofuel
for that year.''.
(3) Biomass-based diesel.--Paragraph (7) of section 211(o)
of the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding
the following at the end thereof:
``(E) Biomass-based diesel.--
``(i) Market evaluation.--The Administrator,
in consultation with the Secretary of Energy and
the Secretary of Agriculture, shall periodically
evaluate the impact of the biomass-based diesel
requirements established under this paragraph on
the price of diesel fuel.
``(ii) Waiver.--If the Administrator
determines that there is a significant renewable
feedstock disruption or other market circumstances
that would make the price of biomass-based diesel
fuel increase significantly, the Administrator, in
consultation with the Secretary of Energy and the
Secretary of Agriculture, shall issue an order to
reduce, for up to a 60-day period, the quantity of
biomass-based diesel required under subparagraph
(A) by an appropriate quantity that does not
exceed 15 percent of the applicable annual
requirement for biomass-based diesel. For any
calendar year in which the Administrator makes a
reduction under this subparagraph, the
Administrator may also reduce the applicable
volume of renewable fuel and advanced biofuels
requirement established under paragraph (2)(B) by
the same or a lesser volume.
``(iii) Extensions.--If the Administrator
determines that the feedstock disruption or
circumstances described in clause (ii) is
continuing beyond the 60-day period described in
clause (ii) or this clause, the Administrator, in
consultation with the Secretary of Energy and the
Secretary of Agriculture, may issue an order to
reduce, for up to an additional 60-day period, the
quantity of biomass-based diesel required under
subparagraph (A) by an appropriate quantity that
does not exceed an additional 15 percent of the
applicable annual requirement for biomass-based
diesel.
``(F) Modification
of <<NOTE: Regulations. Deadline.>> applicable
volumes.--For any of the tables in paragraph (2)(B), if
the Administrator waives--
``(i) at least 20 percent of the applicable
volume requirement set forth in any such table for
2 consecutive years; or
[[Page 121 STAT. 1528]]
``(ii) at least 50 percent of such volume
requirement for a single year,
the Administrator shall promulgate a rule (with