Vehicle and Fuel Choices for American Security Act - Instructs the Director of the Office of Management and Budget to publish in the Federal Register an oil savings target and action plan for specified calendar years.
Amends federal transportation law to direct the Secretary of Transportation to develop a national tire fuel efficiency program for passenger cars and light trucks.
Directs the Administrator of the Environmental Protection Agency to develop a national testing and assessment program to determine the fuel economy of heavy duty vehicles.
Instructs the Secretary of Transportation to: (1) prescribe average heavy duty vehicle fuel economy standards; and (2) conduct a research and development program for electric drive transportation technology.
Directs the Secretary of Energy to establish a lightweight material research and development program.
Amends the Energy Policy Act of 2005 to direct the Secretary of Energy to accelerate efforts to improve hybrid technologies.
Amends the Internal Revenue Code (IRC) to allow an advanced technology motor vehicles manufacturing tax credit.
Terminates the limitation on the number of qualified hybrid and advanced lean burn technology vehicles eligible for the alternative motor vehicle credit.
Directs the Secretary of Energy to issue regulations requiring that by FY2016 each federal agency achieve at least a 30% reduction in its fleet petroleum consumption.
Amends the IRC to: (1) establish a fuel-efficient tax credit for private fleets; (2) subject heavy vehicles to the depreciation limitation for certain luxury automobiles; and (3) increase the alternative fuel vehicle refueling property credit.
Requires certain minimum percentages of light-duty motor vehicles manufactured for model years 2012 and beyond to use specified propulsion technologies and fuels.
Amends federal transportation law to establish the Alternative Fueling Infrastructure Trust Fund.
Amends the Clean Air Act to prescribe minimum annual quantities of renewable fuel from cellulosic biomass and sugar.
Amends the the Consolidated Farm and Rural Development Act to direct the Secretary of Agriculture to establish a low-interest loan and grant program for farmer-owned ethanol producers to develop infrastructure, including pump stations, for the retail delivery of any fuel containing at least 85% ethanol.
Amends federal transportation law to direct the Secretary of Transportation to develop a program to designate Transit-Oriented Development Corridors.
Directs the Secretary of Energy to conduct a national media campaign to decrease oil consumption in the United States over the next decade.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2025 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 2025
To promote the national security and stability of the United States
economy by reducing the dependence of the United States on oil through
the use of alternative fuels and new technology, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 16, 2005
Mr. Bayh (for himself, Mr. Brownback, Mr. Lieberman, Mr. Coleman, Mr.
Graham, Mr. Salazar, Mr. Sessions, Mr. Nelson of Florida, Mr. Lugar,
and Mr. Obama) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To promote the national security and stability of the United States
economy by reducing the dependence of the United States on oil through
the use of alternative fuels and new technology, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Vehicle and Fuel
Choices for American Security Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I--OIL SAVINGS PLAN AND REQUIREMENTS
Sec. 101. Oil savings target and action plan.
Sec. 102. Standards and requirements.
Sec. 103. Initial evaluation.
Sec. 104. Review and update of action plan.
Sec. 105. Baseline and analysis requirements.
TITLE II--FUEL EFFICIENT VEHICLES FOR THE 21ST CENTURY
Sec. 201. Tire efficiency program.
Sec. 202. Reduction of school bus idling.
Sec. 203. Fuel efficiency for heavy duty trucks.
Sec. 204. Near-term vehicle technology program.
Sec. 205. Lightweight materials research and development.
Sec. 206. Hybrid and advanced diesel vehicles.
Sec. 207. Advanced technology motor vehicles manufacturing credit.
Sec. 208. Consumer incentives to purchase advanced technology vehicles.
Sec. 209. Federal fleet requirements.
Sec. 210. Tax incentives for private fleets.
Sec. 211. Reducing incentives to guzzle gas.
Sec. 212. Increasing the efficiency of motor vehicles.
TITLE III--FUEL CHOICES FOR THE 21ST CENTURY
Sec. 301. Increase in alternative fuel vehicle refueling property
credit.
Sec. 302. Use of CAFE penalties to build alternative fueling
infrastructure.
Sec. 303. Minimum quantity of renewable fuel derived from cellulosic
biomass.
Sec. 304. Minimum quantity of renewable fuel derived from sugar.
Sec. 305. Bioenergy research and development.
Sec. 306. Production incentives for cellulosic biofuels.
Sec. 307. Low-interest loan and grant program for retail delivery of E-
85 fuel.
Sec. 308. Transit-Oriented Development Corridors.
TITLE IV--NATIONWIDE ENERGY SECURITY MEDIA CAMPAIGN
Sec. 401. Nationwide media campaign to decrease oil consumption.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) the United States is dangerously dependent on oil;
(2) that dependence threatens the national security,
weakens the economy, and harms the environment of the United
States;
(3) the United States currently imports nearly 60 percent
of oil needed in the United States, and that percentage is
expected to grow to almost 70 percent by 2025 if no actions are
taken;
(4) approximately 2,500,000 barrels of oil per day are
imported from countries in the Persian Gulf region;
(5) dependence on foreign oil has led to strategic
partnerships with some regimes that do not share the democratic
values of the United States;
(6) terrorists have identified oil as a strategic
vulnerability and have increased attacks against oil
infrastructure worldwide;
(7) oil imports comprise nearly 30 percent of the
dangerously high United States trade deficit;
(8) it is technically feasible to achieve oil savings of
more than 2,500,000 barrels per day by 2017 and 7,000,000
barrels per day by 2026;
(9) those goals can be achieved by establishing a set of
flexible policies, including--
(A) increasing the gasoline-efficiency of cars,
trucks, tires, and oil;
(B) providing economic incentives for companies and
consumers to purchase fuel-efficient vehicles;
(C) encouraging the use of transit and the
reduction of truck idling; and
(D) increasing production and commercialization of
alternative liquid fuels;
(10) technology available as of the date of enactment of
this Act (including popular hybrid-electric vehicle models, the
sales of which in the United States increased 173 percent in
the first 5 months of 2005 as compared with the same period in
2004) make an oil savings plan eminently achievable;
(11) achieving those goals will benefit consumers and
businesses through lower fuel bills and reduction in world oil
prices;
(12) achieving those goals will help protect the economy of
the United States from high and volatile oil prices; and
(13) it is urgent, essential, and feasible to implement an
action plan to achieve oil savings as soon as practicable
because any delay in initiating action will--
(A) make achieving necessary oil savings more
difficult and expensive; and
(B) increase the risks to the national security,
economy, and environment of the United States.
(b) Purposes.--The purposes of this Act are--
(1) to accelerate market penetration of electric drive and
alternative motor vehicles;
(2) to enable the accelerated market penetration of
efficient technologies and alternative fuels without adverse
impact on air quality while maintaining a policy of fuel
neutrality, so as to allow market forces to elect the
technologies and fuels that are consumer-friendly, safe,
environmentally-sound, and economic;
(3) to provide time-limited financial incentives to
encourage production and consumer purchase of oil saving
technologies and fuels nationwide; and
(4) to promote a nationwide diversity of motor vehicle
fuels and advanced motor vehicle technology, including advanced
lean burn technology, hybrid technology, flexible fuel motor
vehicles, alternatively fueled motor vehicles, and other oil
saving technologies.
TITLE I--OIL SAVINGS PLAN AND REQUIREMENTS
SEC. 101. OIL SAVINGS TARGET AND ACTION PLAN.
Not later than 270 days after the date of enactment of this Act,
the Director of the Office of Management and Budget (referred to in
this title as the ``Director'') shall publish in the Federal Register
an action plan consisting of--
(1) a list of requirements proposed or to be proposed
pursuant to section 102 that are authorized to be issued under
law in effect on the date of enactment of this Act, and this
Act, that will be sufficient, when taken together, to save from
the baseline determined under section 105--
(A) 2,500,000 barrels of oil per day on average
during calendar year 2016;
(B) 7,000,000 barrels of oil per day on average
during calendar year 2026; and
(C) 10,000,000 barrels per day on average during
calendar year 2031; and
(2) a Federal Government-wide analysis of--
(A) the expected oil savings from the baseline to
be accomplished by each requirement; and
(B) whether all such requirements, taken together,
will achieve the oil savings specified in this section.
SEC. 102. STANDARDS AND REQUIREMENTS.
(a) In General.--On or before the date of publication of the action
plan under section 101, the Secretary of Energy, the Secretary of
Transportation, the Secretary of Defense, the Secretary of Agriculture,
the Administrator of the Environmental Protection Agency, and the head
of any other agency the President determines appropriate shall each
propose, or issue a notice of intent to propose, regulations
establishing each standard or other requirement listed in the action
plan that is under the jurisdiction of the respective agency using
authorities described in subsection (b).
(b) Authorities.--The head of each agency described in subsection
(a) shall use to carry out this section--
(1) any authority in existence on the date of enactment of
this Act (including regulations); and
(2) any new authority provided under this Act (including an
amendment made by this Act).
(c) Final Regulations.--Not later than 18 months after the date of
enactment of this Act, the head of each agency described in subsection
(a) shall promulgate final versions of the regulations required under
this section.
(d) Agency Analyses.--Each proposed and final regulation
promulgated under this section shall--
(1) be designed to achieve at least the oil savings
resulting from the regulation under the action plan published
under section 101; and
(2) be accompanied by an analysis by the applicable agency
describing the manner in which the regulation will promote the
achievement of the oil savings from the baseline determined
under section 105.
SEC. 103. INITIAL EVALUATION.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Director shall publish in the Federal Register a
Federal Government-wide analysis of the oil savings achieved from the
baseline established under section 105.
(b) Inadequate Oil Savings.--If the oil savings are less than the
targets established under section 101, simultaneously with the analysis
required under subsection (a)--
(1) the Director shall publish a revised action plan that
is adequate to achieve the targets; and
(2) the Secretary of Energy, the Secretary of
Transportation, and the Administrator shall propose new or
revised regulations under subsections (a), (b), and (c),
respectively, of section 102.
(c) Final Regulations.--Not later than 180 days after the date on
which regulations are proposed under subsection (b)(2), the Secretary
of Energy, the Secretary of Transportation, and the Administrator shall
promulgate final versions of those regulations.
SEC. 104. REVIEW AND UPDATE OF ACTION PLAN.
(a) Review.--Not later than January 1, 2011, and every 3 years
thereafter, the Director shall submit to Congress, and publish, a
report that--
(1) evaluates the progress achieved in implementing the oil
savings targets established under section 101;
(2) analyzes the expected oil savings under the standards
and requirements established under this Act and the amendments
made by this Act; and
(3)(A) analyzes the potential to achieve oil savings that
are in addition to the savings required by section 101; and
(B) if the President determines that it is in the national
interest, establishes a higher oil savings target for calendar
year 2017 or any subsequent calendar year.
(b) Inadequate Oil Savings.--If the oil savings are less than the
targets established under section 101, simultaneously with the report
required under subsection (a)--
(1) the Director shall publish a revised action plan that
is adequate to achieve the targets; and
(2) the Secretary of Energy, the Secretary of
Transportation, and the Administrator shall propose new or
revised regulations under subsections (a), (b), and (c),
respectively, of section 102.
(c) Final Regulations.--Not later than 180 days after the date on
which regulations are proposed under subsection (b)(2), the Secretary
of Energy, the Secretary of Transportation, and the Administrator shall
promulgate final versions of those regulations.
SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS.
In performing the analyses and promulgating proposed or final
regulations to establish standards and other requirements necessary to
achieve the oil savings required by this title, the Secretary of
Energy, the Secretary of Transportation, the Secretary of Defense, the
Secretary of Agriculture, the Administrator of the Environmental
Protection Agency, and the head of any other agency the President
determines to be appropriate shall--
(1) determine oil savings as the projected reduction in oil
consumption from the baseline established by the reference case
contained in the report of the Energy Information
Administration entitled ``Annual Energy Outlook 2005'';
(2) determine the oil savings projections required on an
annual basis for each of calendar years 2009 through 2026; and
(3) account for any overlap among the standards and other
requirements to ensure that the projected oil savings from all
the promulgated standards and requirements, taken together, are
as accurate as practicable.
TITLE II--FUEL EFFICIENT VEHICLES FOR THE 21ST CENTURY
SEC. 201. TIRE EFFICIENCY PROGRAM.
(a) Standards for Tires Manufactured for Interstate Commerce.--
Section 30123 of title 49, United States Code, is amended--
(1) in subsection (b)--
(A) in the first sentence, by striking ``The
Secretary'' and inserting the following:
``(1) Uniform quality grading system.--
``(A) In general.--The Secretary'';
(B) in the second sentence, by striking ``The
Secretary'' and inserting the following:
``(2) Nomenclature and marketing practices.--The
Secretary'';
(C) in the third sentence, by striking ``A tire
standard'' and inserting the following:
``(3) Effect of standards and regulations.--A tire
standard''; and
(D) in paragraph (1), as designated by subparagraph
(A), by adding at the end the following:
``(B) Inclusion.--The grading system established
pursuant to subparagraph (A) shall include standards
for rating the fuel efficiency of tires designed for
use on passenger cars and light trucks.''; and
(2) by adding at the end the following:
``(d) National Tire Efficiency Program.--
``(1) Definition.--In this subsection, the term `fuel
economy', with respect to a tire, means the extent to which the
tire contributes to the fuel economy of the motor vehicle on
which the tire is mounted.
``(2) Program.--The Secretary shall develop and carry out a
national tire fuel efficiency program for tires designed for
use on passenger cars and light trucks.
``(3) Requirements.--Not later than March 31, 2008, the
Secretary shall issue regulations, which establish--
``(A) policies and procedures for testing and
labeling tires for fuel economy to enable tire buyers
to make informed purchasing decisions about the fuel
economy of tires;
``(B) policies and procedures to promote the
purchase of energy efficient replacement tires,
including purchase incentives, website listings on the
Internet, printed fuel economy guide booklets, and
mandatory requirements for tire retailers to provide
tire buyers with fuel efficiency information on tires;
and
``(C) minimum fuel economy standards for tires.
``(4) Minimum fuel economy standards.--In promulgating
minimum fuel economy standards for tires, the Secretary shall
design standards that--
``(A) ensure, in conjunction with the requirements
under paragraph (3)(B), that the average fuel economy
of replacement tires is not less than the average fuel
economy of tires sold as original equipment;
``(B) secure the maximum technically feasible and
cost-effective fuel savings;
``(C) do not adversely affect tire safety;
``(D) incorporate the results from--
``(i) laboratory testing; and
``(ii) to the extent appropriate and
available, on-road fleet testing programs
conducted by manufacturers; and
``(E) do not adversely affect efforts to manage
scrap tires.
``(5) Applicability.--The policies, procedures, and
standards developed under paragraph (3) shall apply to all tire
types and models regulated under the uniform tire quality
grading standards in section 575.104 of title 49, Code of
Federal Regulations (or a successor regulation).
``(6) Review.--
``(A) In general.--Not less than once every 3
years, the Secretary shall--
``(i) review the minimum fuel economy
standards in effect for tires under this
subsection; and
``(ii) subject to subparagraph (B), revise
the standards as necessary to ensure compliance
with standards described in paragraph (4).
``(B) Limitation.--The Secretary may not reduce the
average fuel economy standards applicable to
replacement tires.
``(7) No preemption of state law.--Nothing in this section
shall be construed to preempt any provision of State law
relating to higher fuel economy standards applicable to
replacement tires designed for use on passenger cars and light
trucks.
``(8) Exceptions.--Nothing in this section shall apply to--
``(A) a tire or group of tires with the same stock
keeping unit, plant, and year, for which the volume of
tires produced or imported is less than 15,000
annually;
``(B) a deep tread, winter-type snow tire, space-
saver tire, or temporary use spare tire;
``(C) a tire with a normal rim diameter of 12
inches or less;
``(D) a motorcycle tire; or
``(E) a tire manufactured specifically for use in
an off-road motorized recreational vehicle.''.
(b) Conforming Amendment.--Section 30103(b)(1) of title 49, United
States Code, is amended by striking ``When'' and inserting ``Except as
provided in section 30123(d), if''.
(c) Time for Implementation.--Beginning not later than March 31,
2008, the Secretary of Transportation shall administer the national
tire fuel efficiency program established under section 30123(d) of
title 49, United States Code, in accordance with the policies,
procedures, and standards developed under section 30123(d)(3) of such
title.
(d) Authorization of Appropriations.--There are authorized to be
appropriated, for each of fiscal years 2007 through 2011, such sums as
may be necessary to carry out section 30123(d) of title 49, United
States Code, as added by subsection (a).
SEC. 202. REDUCTION OF SCHOOL BUS IDLING.
(a) Statement of Policy.--Congress encourages each local
educational agency (as defined in section 9101(26) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801(26))) that receives
Federal funds under the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6301 et seq.) to develop a policy to reduce the incidence of
school bus idling at schools while picking up and unloading students.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Administrator of the Environmental Protection
Agency, working in coordination with the Secretary of Education,
$5,000,000 for each of fiscal years 2007 through 2012 for use in
educating States and local education agencies about--
(1) benefits of reducing school bus idling; and
(2) ways in which school bus idling may be reduced.
SEC. 203. FUEL EFFICIENCY FOR HEAVY DUTY TRUCKS.
Part C of subtitle VI of title 49, United States Code, is amended
by inserting after chapter 329 the following:
``CHAPTER 330--HEAVY DUTY VEHICLE FUEL ECONOMY STANDARDS
``Chapter 330--Heavy Duty Vehicle Fuel Economy Standards
``Sec.
``33001. Purpose and policy.
``33002. Definition.
``33003. Testing and assessment.
``33004. Standards.
``33005. Authorization of appropriations.
``Sec. 33001. Purpose and policy
``The purpose of this chapter is to reduce petroleum consumption by
heavy duty motor vehicles.
``Sec. 33002. Definition
``In this chapter, the term `heavy duty motor vehicle'--
``(1) means a vehicle having a gross vehicle weight rating
of at least 10,000 pounds that is driven or drawn by mechanical
power and manufactured primarily for use on public streets,
roads, and highways; and
``(2) does not include a vehicle operated only on a rail
line.
``Sec. 33003. Testing and assessment
``(a) General Requirements.--The Administrator of the Environmental
Protection Agency (referred to in this section as the `Administrator')
shall develop and coordinate a national testing and assessment program
to--
``(1) determine the fuel economy of heavy duty vehicles;
and
``(2) assess the fuel efficiency attainable through
available technology.
``(b) Testing.--The Administrator shall--
``(1) design a National testing program to assess the fuel
economy of heavy duty vehicles (based on the program for light
duty vehicles); and
``(2) implement the program described in paragraph (1) not
later than 18 months after the date of enactment of this
chapter.
``(c) Assessment.--The Administrator shall consult with the
Secretary of Transportation on the assessment of available technologies
to enhance the fuel efficiency of heavy duty vehicles to ensure that
vehicle use and needs are considered appropriately in the assessment.
``(d) Reporting.--The Administrator shall--
``(1) not later than 2 years after the date of enactment of
this chapter, submit a report to Congress regarding the results
of the assessment of available technologies to improve the fuel
efficiency of heavy duty vehicles.
``(2) submit a report to Congress, at least biannually,
that addresses the fuel economy of heavy duty vehicles; and
``Sec. 33004. Standards
``(a) General Requirements.--Not later than 18 months after
completing the testing and assessments under section 33003, the
Secretary of Transportation shall prescribe average heavy duty vehicle
fuel economy standards. Each standard shall be the maximum feasible
average fuel economy level that the Secretary decides that
manufacturers can achieve in that model year. The Secretary may
prescribe separate standards for different classes of heavy duty motor
vehicles. The standards for each model year shall be completed not
later than 18 months before the beginning of each model year.
``(b) Considerations and Consultation.--In determining maximum
feasible average fuel economy, the Secretary shall consider--
``(1) relevant available heavy duty motor vehicle fuel
consumption information;
``(2) technological feasibility;
``(3) economic practicability;
``(4) the desirability of reducing United States dependence
on oil;
``(5) the effects of average fuel economy standards on
vehicle safety;
``(6) the effects of average fuel economy standards on
levels of employment and competitiveness of the heavy truck
manufacturing industry ; and
``(7) the extent to which the standard will carry out the
purpose described in section 33001.
``(c) Cooperation.--The Secretary may advise, assist, and cooperate
with departments, agencies, and instrumentalities of the United States
Government, States, and other public and private agencies in developing
fuel economy standards for heavy duty motor vehicles.
``(d) 5-Year Plan for Testing Standards.--The Secretary shall
establish, periodically review, and continually update a 5-year plan
for testing heavy duty motor vehicle fuel economy standards prescribed
under this chapter. In developing and establishing testing priorities,
the Secretary shall consider factors the Secretary considers
appropriate, consistent with the purpose described in section 33001 and
the Secretary's other duties and powers under this chapter.
``Sec. 33005. Authorization of appropriations
``There are authorized to be appropriated, for each of fiscal years
2007 through 2011, such sums as may be necessary to carry out this
chapter.''.
SEC. 204. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.
(a) Purposes.--The purposes of this section are--
(1) to enable and promote, in partnership with industry,
comprehensive development, demonstration, and commercialization
of a wide range of electric drive components, systems, and
vehicles using diverse electric drive transportation
technologies;
(2) to make critical public investments to help private
industry, institutions of higher education, National
Laboratories, and research institutions to expand innovation,
industrial growth, and jobs in the United States;
(3) to expand the availability of the existing electric
infrastructure for fueling light duty transportation and other
on-road and nonroad vehicles that are using petroleum and are
mobile sources of emissions--
(A) including the more than 3,000,000 reported
units (such as electric forklifts, golf carts, and
similar nonroad vehicles) in use on the date of
enactment of this Act; and
(B) with the goal of enhancing the energy security
of the United States, reduce dependence on imported
oil, and reduce emissions through the expansion of grid
supported mobility;
(4) to accelerate the widespread commercialization of all
types of electric drive vehicle technology into all sizes and
applications of vehicles, including commercialization of plug-
in hybrid electric vehicles and plug-in hybrid fuel cell
vehicles; and
(5) to improve the energy efficiency of and reduce the
petroleum use in transportation.
(b) Definitions.--In this section:
(1) Battery.--The term ``battery'' means an energy storage
device used in an on-road or nonroad vehicle powered in whole
or in part using an off-board or on-board source of
electricity.
(2) Electric drive transportation technology.--The term
``electric drive transportation technology'' means--
(A) vehicles that use an electric motor for all or
part of their motive power and that may or may not use
off-board electricity, including battery electric
vehicles, fuel cell vehicles, engine dominant hybrid
electric vehicles, plug-in hybrid electric vehicles,
plug-in hybrid fuel cell vehicles, and electric rail;
or
(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 corded electric
equipment linked to transportation or mobile sources of
air pollution.
(3) Engine dominant hybrid electric vehicle.--The term
``engine dominant hybrid electric vehicle'' means an on-road or
nonroad vehicle that--
(A) is propelled by an internal combustion engine
or heat engine using--
(i) any combustible fuel;
(ii) an on-board, rechargeable storage
device; and
(B) has no means of using an off-board source of
electricity.
(4) Fuel cell vehicle.--The term ``fuel cell vehicle''
means an on-road or nonroad vehicle that uses a fuel cell (as
defined in section 3 of the Spark M. Matsunaga Hydrogen
Research, Development, and Demonstration Act of 1990).
(5) Nonroad vehicle.--The term ``nonroad vehicle'' has the
meaning given the term in section 216 of the Clean Air Act (42
U.S.C. 7550).
(6) Plug-in hybrid electric vehicle.--The term ``plug-in
hybrid electric vehicle'' means an on-road or nonroad vehicle
that is propelled by an internal combustion engine or heat
engine using--
(A) any combustible fuel;
(B) an on-board, rechargeable storage device; and
(C) a means of using an off-board source of
electricity.
(7) Plug-in hybrid fuel cell vehicle.--The term ``plug-in
hybrid fuel cell vehicle'' means a fuel cell vehicle with a
battery powered by an off-board source of electricity.
(c) Program.--The Secretary shall conduct a program of research,
development, demonstration, and commercial application for electric
drive transportation technology, including--
(1) high capacity, high efficiency batteries;
(2) high efficiency on-board and off-board charging
components;
(3) high power drive train systems for passenger and
commercial vehicles and for nonroad equipment;
(4) control system development and power train development
and integration for plug-in hybrid electric vehicles, plug-in
hybrid fuel cell vehicles, and engine dominant hybrid electric
vehicles, including--
(A) development of efficient cooling systems;
(B) analysis and development of control systems
that minimize the emissions profile when clean diesel
engines are part of a plug-in hybrid drive system; and
(C) development of different control systems that
optimize for different goals, including--
(i) battery life;
(ii) reduction of petroleum consumption;
and
(iii) green house gas reduction;
(5) nanomaterial technology applied to both battery and
fuel cell systems;
(6) large-scale demonstrations, testing, and evaluation of
plug-in hybrid electric vehicles in different applications with
different batteries and control systems, including--
(A) military applications;
(B) mass market passenger and light-duty truck
applications;
(C) private fleet applications; and
(D) medium- and heavy-duty applications;
(7) a nationwide education strategy for electric drive
transportation technologies providing secondary and high school
teaching materials and support for university education focused
on electric drive system and component engineering;
(8) development, in consultation with the Administrator of
the Environmental Protection Agency, of procedures for testing
and certification of criteria pollutants, fuel economy, and
petroleum use for light-, medium-, and heavy-duty vehicle
applications, including consideration of--
(A) the vehicle and fuel as a system, not just an
engine; and
(B) nightly off-board charging; and
(9) advancement of battery and corded electric
transportation technologies in mobile source applications by--
(A) improvement in battery, drive train, and
control system technologies; and
(B) working with industry and the Administrator of
the Environmental Protection Agency to--
(i) understand and inventory markets; and
(ii) identify and implement methods of
removing barriers for existing and emerging
applications.
(d) Goals.--The goals of the electric drive transportation
technology program established under subsection (c) shall be to
develop, in partnership with industry and institutions of higher
education, projects that focus on--
(1) innovative electric drive technology developed in the
United States;
(2) growth of employment in the United States in electric
drive design and manufacturing;
(3) validation of the plug-in hybrid potential through
fleet demonstrations; and
(4) acceleration of fuel cell commercialization through
comprehensive development and commercialization of the electric
drive technology systems that are the foundational technology
of the fuel cell vehicle system.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $300,000,000 for each of fiscal
years 2007 through 2012.
SEC. 205. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.
(a) In General.--As soon as practicable after the date of enactment
of this Act, the Secretary of Energy shall establish a research and
development program to determine ways in which--
(1) the weight of vehicles may be reduced to improve fuel
efficiency without compromising passenger safety; and
(2) the cost of lightweight materials (such as steel alloys
and carbon fibers) required for the construction of lighter-
weight vehicles may be reduced.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $60,000,000 for each of fiscal
years 2007 through 2012.
SEC. 206. HYBRID AND ADVANCED DIESEL VEHICLES.
(a) Hybrid Vehicles.--The Energy Policy Act of 2005 is amended by
striking section 711 (42 U.S.C. 16061) and inserting the following:
``SEC. 711. HYBRID VEHICLES.
``(a) Definitions.--In this section:
``(1) Cost.--The term `cost' has the meaning given the term
`cost of a loan guarantee' within the meaning of section
502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a(5)(C)).
``(2) Eligible project.--The term `eligible project' means
a project to--
``(A) improve hybrid technologies under subsection
(b); or
``(B) encourage domestic production of efficient
hybrid and advanced diesel vehicles under section
712(a).
``(3) Guarantee.--
``(A) In general.--The term `guarantee' has the
meaning given the term `loan guarantee' in section 502
of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a).
``(B) Inclusion.--The term `guarantee' includes a
loan guarantee commitment (as defined in section 502 of
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
``(4) Hybrid technology.--The term `hybrid technology'
means a battery or other rechargeable energy storage system,
power electronic, hybrid systems integration, and any other
technology for use in hybrid vehicles.
``(5) Obligation.--The term `obligation' means the loan or
other debt obligation that is guaranteed under this section.
``(b) Authorization.--The Secretary shall accelerate efforts
directed toward the improvement of hybrid technologies, including
through the provision of loan guarantees under subsection (c).
``(c) Loan Guarantees.--
``(1) In general.--The Secretary shall make guarantees
under this section for eligible projects on such terms and
conditions as the Secretary, in consultation with the Secretary
of the Treasury, determines to be appropriate.
``(2) Specific appropriation or contribution.--No guarantee
shall be made unless--
``(A) an appropriation for the cost has been made;
or
``(B) the Secretary has received from the borrower
a payment in full for the cost of the obligation and
deposited the payment into the Treasury.
``(3) Amount.--Unless otherwise provided by law, a
guarantee by the Secretary shall not exceed an amount equal to
80 percent of the project cost of the hybrid technology that is
the subject of the guarantee, as estimated at the time at which
the guarantee is issued.
``(4) Repayment.--
``(A) In general.--No guarantee shall be made
unless the Secretary determines that there is a
reasonable prospect of repayment of the principal and
interest on the obligation by the borrower.
``(B) Amount.--No guarantee shall be made unless
the Secretary determines that the amount of the
obligation (when combined with amounts available to the
borrower from other sources) will be sufficient to
carry out the project.
``(C) Subordination.--The obligation shall be
subject to the condition that the obligation is not
subordinate to other financing.
``(5) Interest rate.--An obligation shall bear interest at
a rate that does not exceed a level that the Secretary
determines appropriate, taking into account the prevailing rate
of interest in the private sector for similar loans and risks.
``(6) Term.--The term of an obligation shall require full
repayment over a period not to exceed the lesser of--
``(A) 30 years; or
``(B) 90 percent of the projected useful life of
the physical asset to be financed by the obligation (as
determined by the Secretary).
``(7) Defaults.--
``(A) Payment by secretary.--
``(i) In general.--If a borrower defaults
on the obligation (as defined in regulations
promulgated by the Secretary and specified in
the guarantee contract), the holder of the
guarantee shall have the right to demand
payment of the unpaid amount from the
Secretary.
``(ii) Payment required.--Within such
period as may be specified in the guarantee or
related agreements, the Secretary shall pay to
the holder of the guarantee the unpaid interest
on, and unpaid principal of the obligation as
to which the borrower has defaulted, unless the
Secretary finds that--
``(I) there was no default by the
borrower in the payment of interest or
principal; or
``(II) the default has been
remedied.
``(iii) Forbearance.--Nothing in this
subsection precludes any forbearance by the
holder of the obligation for the benefit of the
borrower that may be agreed upon by the parties
to the obligation and approved by the
Secretary.
``(B) Subrogation.--
``(i) In general.--If the Secretary makes a
payment under subparagraph (A), the Secretary
shall be subrogated to the rights of the
recipient of the payment as specified in the
guarantee or related agreements including,
where appropriate, the authority
(notwithstanding any other provision of law)
to--
``(I) complete, maintain, operate,
lease, or otherwise dispose of any
property acquired pursuant to the
guarantee or related agreements; or
``(II) permit the borrower,
pursuant to an agreement with the
Secretary, to continue to pursue the
purposes of the eligible project, as
the Secretary determines to be in the
public interest.
``(ii) Superiority of rights.--The rights
of the Secretary, with respect to any property
acquired pursuant to a guarantee or related
agreement, shall be superior to the rights of
any other person with respect to the property.
``(iii) Terms and conditions.--A guarantee
agreement shall include such detailed terms and
conditions as the Secretary determines
appropriate to--
``(I) protect the interests of the
United States in the case of default;
and
``(II) have available all the
patents and technology necessary for
any person selected, including the
Secretary, to complete and operate the
eligible project.
``(C) Payment of principal and interest by
secretary.--With respect to any obligation guaranteed
under this section, the Secretary may enter into a
contract to pay, and pay, holders of the obligation,
for and on behalf of the borrower, from funds
appropriated for that purpose, the principal and
interest payments that become due and payable on the
unpaid balance of the obligation if the Secretary finds
that--
``(i)(I) the borrower is unable to meet the
payments and is not in default;
``(II) it is in the public interest to
permit the borrower to continue to pursue the
purposes of the eligible project; and
``(III) the probable net benefit to the
Federal Government in paying the principal and
interest will be greater than the benefit that
would result in the event of a default;
``(ii) the amount of the payment that the
Secretary is authorized to pay will be no
greater than the amount of principal and
interest that the borrower is obligated to pay
under the agreement being guaranteed; and
``(iii) the borrower agrees to reimburse
the Secretary for the payment (including
interest) on terms and conditions that are
satisfactory to the Secretary.
``(D) Action by attorney general.--
``(i) Notification.--If the borrower
defaults on an obligation, the Secretary shall
notify the Attorney General of the default.
``(ii) Recovery.--On receipt of
notification, the Attorney General shall take
such action as the Attorney General determines
to be appropriate to recover the unpaid
principal and interest due from--
``(I) such assets of the defaulting
borrower as are associated with the
obligation; or
``(II) any other security pledged
to secure the obligation.
``(8) Fees.--
``(A) In general.--The Secretary shall charge and
collect fees for guarantees in amounts the Secretary
determines are sufficient to cover applicable
administrative expenses.
``(B) Availability.--Fees collected under this
paragraph shall--
``(i) be deposited by the Secretary into
the Treasury; and
``(ii) remain available until expended,
subject to such other conditions as are
contained in annual appropriations Acts.
``(9) Records; audits.--
``(A) In general.--A recipient of a guarantee shall
keep such records and other pertinent documents as the
Secretary shall prescribe by regulation, including such
records as the Secretary may require to facilitate an
effective audit.
``(B) Access.--The Secretary and the Comptroller
General of the United States, or their duly authorized
representatives, shall have access, for the purpose of
audit, to the records and other pertinent documents.
``(10) Full faith and credit.--The full faith and credit of
the United States is pledged to the payment of all guarantees
issued under this section with respect to principal and
interest.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to provide the cost of
guarantees under this section.''.
(b) Efficient Hybrid and Advanced Diesel Vehicles.--Section 712(a)
of the Energy Policy Act of 2005 (42 U.S.C. 16062(a)) is amended in the
second sentence by striking ``grants to automobile manufacturers'' and
inserting ``grants and the provision of loan guarantees under section
711(c) to automobile manufacturers and suppliers''.
SEC. 207. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to foreign tax credit,
etc.) is amended by adding at the end the following new section:
``SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.
``(a) Credit Allowed.--There shall be allowed as a credit against
the tax imposed by this chapter for the taxable year an amount equal to
35 percent of so much of the qualified investment of an eligible
taxpayer for such taxable year as does not exceed $75,000,000.
``(b) Qualified Investment.--For purposes of this section--
``(1) In general.--The qualified investment for any taxable
year is equal to the incremental costs incurred during such
taxable year--
``(A) to re-equip, expand, or establish any
manufacturing facility of the eligible taxpayer to
produce advanced technology motor vehicles or to
produce eligible components,
``(B) for engineering integration of such vehicles
and components as described in subsection (d), and
``(C) for research and development related to
advanced technology motor vehicles and eligible
components.
``(2) Attribution rules.--In the event a facility of the
eligible taxpayer produces both advanced technology motor
vehicles and conventional motor vehicles, or eligible and non-
eligible components, only the qualified investment attributable
to production of advanced technology motor vehicles and
eligible components shall be taken into account.
``(c) Advanced Technology Motor Vehicles and Eligible Components.--
For purposes of this section--
``(1) Advanced technology motor vehicle.--The term
`advanced technology motor vehicle' means--
``(A) any new advanced lean burn technology motor
vehicle (as defined in section 30B(c)(3)), or
``(B) any new qualified hybrid motor vehicle (as
defined in section 30B(d)(2)(A) and determined without
regard to any gross vehicle weight rating).
``(2) Eligible components.--The term `eligible component'
means any component inherent to any advanced technology motor
vehicle, including--
``(A) with respect to any gasoline or diesel-
electric new qualified hybrid motor vehicle--
``(i) electric motor or generator,
``(ii) power split device,
``(iii) power control unit,
``(iv) power controls,
``(v) integrated starter generator, or
``(vi) battery,
``(B) with respect to any hydraulic new qualified
hybrid motor vehicle--
``(i) hydraulic accumulator vessel,
``(ii) hydraulic pump, or
``(iii) hydraulic pump-motor assembly,
``(C) with respect to any new advanced lean burn
technology motor vehicle--
``(i) diesel engine,
``(ii) turbocharger,
``(iii) fuel injection system, or
``(iv) after-treatment system, such as a
particle filter or NOx absorber, and
``(D) with respect to any advanced technology motor
vehicle, any other component submitted for approval by
the Secretary.
``(d) Engineering Integration Costs.--For purposes of subsection
(b)(1)(B), costs for engineering integration are costs incurred prior
to the market introduction of advanced technology vehicles for
engineering tasks related to--
``(1) establishing functional, structural, and performance
requirements for component and subsystems to meet overall
vehicle objectives for a specific application,
``(2) designing interfaces for components and subsystems
with mating systems within a specific vehicle application,
``(3) designing cost effective, efficient, and reliable
manufacturing processes to produce components and subsystems
for a specific vehicle application, and
``(4) validating functionality and performance of
components and subsystems for a specific vehicle application.
``(e) Eligible Taxpayer.--For purposes of this section, the term
`eligible taxpayer' means any taxpayer if more than 50 percent of its
gross receipts for the taxable year is derived from the manufacture of
motor vehicles or any component parts of such vehicles.
``(f) Limitation Based on Amount of Tax.--The credit allowed under
subsection (a) for the taxable year shall not exceed the excess of--
``(1) the sum of--
``(A) the regular tax liability (as defined in
section 26(b)) for such taxable year, plus
``(B) the tax imposed by section 55 for such
taxable year and any prior taxable year beginning after
1986 and not taken into account under section 53 for
any prior taxable year, over
``(2) the sum of the credits allowable under subpart A and
sections 27, 30, and 30B for the taxable year.
``(g) Reduction in Basis.--For purposes of this subtitle, if a
credit is allowed under this section for any expenditure with respect
to any property, the increase in the basis of such property which would
(but for this paragraph) result from such expenditure shall be reduced
by the amount of the credit so allowed.
``(h) No Double Benefit.--
``(1) Coordination with other deductions and credits.--
Except as provided in paragraph (2), the amount of any
deduction or other credit allowable under this chapter for any
cost taken into account in determining the amount of the credit
under subsection (a) shall be reduced by the amount of such
credit attributable to such cost.
``(2) Research and development costs.--
``(A) In general.--Except as provided in
subparagraph (B), any amount described in subsection
(b)(1)(C) taken into account in determining the amount
of the credit under subsection (a) for any taxable year
shall not be taken into account for purposes of
determining the credit under section 41 for such
taxable year.
``(B) Costs taken into account in determining base
period research expenses.--Any amounts described in
subsection (b)(1)(C) taken into account in determining
the amount of the credit under subsection (a) for any
taxable year which are qualified research expenses
(within the meaning of section 41(b)) shall be taken
into account in determining base period research
expenses for purposes of applying section 41 to
subsequent taxable years.
``(i) Business Carryovers Allowed.--If the credit allowable under
subsection (a) for a taxable year exceeds the limitation under
subsection (f) for such taxable year, such excess (to the extent of the
credit allowable with respect to property subject to the allowance for
depreciation) shall be allowed as a credit carryback and carryforward
under rules similar to the rules of section 39.
``(j) Special Rules.--For purposes of this section, rules similar
to the rules of paragraphs (4) and (5) of section 179A(e) and
paragraphs (1) and (2) of section 41(f) shall apply
``(k) Election Not to Take Credit.--No credit shall be allowed
under subsection (a) for any property if the taxpayer elects not to
have this section apply to such property.
``(l) Regulations.--The Secretary shall prescribe such regulations
as necessary to carry out the provisions of this section.
``(m) Termination.--This section shall not apply to any qualified
investment after December 31, 2015.''.
(b) Conforming Amendments.--
(1) Section 1016(a) of the Internal Revenue Code of 1986 is
amended by striking ``and'' at the end of paragraph (35), by
striking the period at the end of paragraph (36) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(37) to the extent provided in section 30D(g).''.
(2) Section 6501(m) of such Code is amended by inserting
``30D(k),'' after ``30C(e)(5),''.
(3) The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 30C the following new item:
``Sec. 30D. Advanced technology motor vehicles manufacturing credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts incurred in taxable years beginning after December 31,
2005.
SEC. 208. CONSUMER INCENTIVES TO PURCHASE ADVANCED TECHNOLOGY VEHICLES.
(a) Elimination on Number of New Qualified Hybrid and Advanced Lean
Burn Technology Vehicles Eligible for Alternative Motor Vehicle
Credit.--
(1) In general.--Section 30D of the Internal Revenue Code
of 1986 is amended by striking subsection (f) and by
redesignating subsections (g) through (j) as subsections (f)
through (i), respectively.
(2) Conforming amendments.--
(A) Paragraphs (4) and (6) of section 30B(h) of the
Internal Revenue Code of 1986 are each amended amended
by striking ``(determined without regard to subsection
(g))'' and inserting ``determined without regard to
subsection (f))''.
(B) Section 38(b)(25) of such Code is amended by
striking ``section 30B(g)(1)'' and inserting ``section
30B(f)(1)''.
(C) Section 55(c)(2) of such Code is amended by
striking ``section 30B(g)(2)'' and inserting ``section
30B(f)(2)''.
(D) Section 1016(a)(36) of such Code is amended by
striking ``section 30B(h)(4)'' and inserting ``section
30B(g)(4)''.
(E) Section 6501(m) of such Code is amended by
striking ``section 30B(h)(9)'' and inserting ``section
30B(g)(9)''.
(b) Extension of Alternative Vehicle Credit for New Qualified
Hybrid Motor Vehicles.--Paragraph (3) of section 30B(i) of the Internal
Revenue Code of 1986 (as redesignated by subsection (a)) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2005, in taxable
years ending after such date.
SEC. 209. FEDERAL FLEET REQUIREMENTS.
(a) Regulations.--
(1) In general.--The Secretary of Energy shall issue
regulations for Federal fleets subject to the Energy Policy Act
of 1992 (42 U.S.C. 13201 et seq.) requiring that not later than
fiscal year 2016 each Federal agency achieve at least a 30
percent reduction in petroleum consumption, as calculated from
the baseline established by the Secretary for fiscal year 1999.
(2) Requirement.--Not later than fiscal year 2016, of the
Federal vehicles required to be alternative fueled vehicles
under title V of the Energy Policy Act of 1992 (42 U.S.C. 13251
et seq.), at least 30 percent shall be hybrid motor vehicles
(including plug-in hybrid motor vehicles) or new advanced lean
burn technology motor vehicles (as defined in section 30B(c)(3)
of the Internal Revenue Code of 1986).
(b) Inclusion of Electric Drive in Energy Policy Act of 1992.--
Section 508(a) of the Energy Policy Act of 1992 (42 U.S.C. 13258(a)) is
amended--
(1) by inserting ``(1)'' before ``The Secretary''; and
(2) by adding at the end the following:
``(2) Not later than January 31, 2007, the Secretary shall--
``(A) allocate credit in an amount to be determined by the
Secretary for--
``(i) acquisition of--
``(I) a light-duty hybrid electric vehicle;
``(II) a plug-in hybrid electric vehicle;
``(III) a fuel cell electric vehicle;
``(IV) a medium- or heavy-duty hybrid
electric vehicle;
``(V) a neighborhood electric vehicle; or
``(VI) a medium- or heavy-duty dedicated
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) environmental safety.''.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section (including the amendments made
by subsection (b)) $10,000,000 for the period of fiscal years 2007
through 2012.
SEC. 210. TAX INCENTIVES FOR PRIVATE FLEETS.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48B the following new section:
``SEC. 48C. FUEL-EFFICIENT FLEET CREDIT.
``(a) General Rule.--For purposes of section 46, the fuel-efficient
fleet credit for any taxable year is 15 percent of the qualified fuel-
efficient vehicle investment amount of an eligible taxpayer for such
taxable year.
``(b) Vehicle Purchase Requirement.--In the case of any eligible
taxpayer which places less than 10 qualified fuel-efficient vehicles in
service during the taxable year, the qualified fuel-efficient vehicle
investment amount shall be zero.
``(c) Qualified Fuel-Efficient Vehicle Investment Amount.--For
purposes of this section--
``(1) In general.--The term `qualified fuel-efficient
vehicle investment amount' means the basis of any qualified
fuel-efficient vehicle placed in service by an eligible
taxpayer during the taxable year.
``(2) Qualified fuel-efficient vehicle.--The term
`qualified fuel-efficient vehicle' means an automobile which
has a fuel economy which is at least 125 percent greater than
the average fuel economy standard for an automobile of the same
class and model year.
``(3) Other terms.--The terms `automobile', `average fuel
economy standard', `fuel economy', and `model year' have the
meanings given to such terms under section 32901 of title 49,
United States Code.
``(d) Eligible Taxpayer.--The term `eligible taxpayer' means, with
respect to any taxable year, a taxpayer who owns a fleet of 100 or more
vehicles which are used in the trade or business of the taxpayer on the
first day of such taxable year.
``(e) Termination.--This section shall not apply to any vehicle
placed in service after December 31, 2010.''.
(b) Credit Treated as Part of Investment Credit.--Section 46 of the
Internal Revenue Code of 1986 is amended by striking ``and'' at the end
of paragraph (3), by striking the period at the end of paragraph (4)
and inserting ``, and'', and by adding at the end the following new
paragraph:
``(5) the fuel-efficient fleet credit.''.
(c) Conforming Amendments.--
(1) Section 49(a)(1)(C) of the Internal Revenue Code of
1986 is amended by striking ``and'' at the end of clause (iii),
by striking the period at the end of clause (iv) and inserting
``, and'', and by adding at the end the following new clause:
``(v) the basis of any qualified fuel-
efficient vehicle which is taken into account
under section 48C.''.
(2) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 48 the following new item:
``Sec. 48C. Fuel-efficient fleet credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2005, in taxable years ending after
such date, under rules similar to the rules of section 48(m) of the
Internal Revenue Code of 1986 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990).
SEC. 211. REDUCING INCENTIVES TO GUZZLE GAS.
(a) Inclusion of Heavy Vehicles in Limitation on Depreciation of
Certain Luxury Automobiles.--
(1) In general.--Section 280F(d)(5)(A) of the Internal
Revenue Code of 1986 (defining passenger automobile) is
amended--
(A) by striking clause (ii) and inserting the
following new clause:
``(ii)(I) which is rated at 6,000 pounds
unloaded gross vehicle weight or less, or
``(II) which is rated at more than 6,000
pounds but not more than 14,000 pounds gross
vehicle weight.'',
(B) by striking ``clause (ii)'' in the second
sentence and inserting ``clause (ii)(I)''.
(2) Exception for vehicles used in farming business.--
Section 280F(d)(5)(B) of such Code (relating to exception for
certain vehicles) is amended by striking ``and'' at the end of
clause (ii), by redesignating clause (iii) as clause (iv), and
by inserting after clause (ii) the following new clause:
``(iii) any vehicle used in a farming
business (as defined in section 263A(e)(4),
and''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of the
enactment of this Act.
(b) Updated Depreciation Deduction Limits.--
(1) In general.--Subparagraph (A) of section 280F(a)(1) of
the Internal Revenue Code of 1986 (relating to limitation on
amount of depreciation for luxury automobiles) is amended to
read as follows:
``(I) Limitation.--The amount of the depreciation
deduction for any taxable year shall not exceed for any
passenger automobile--
``(i) for the 1st taxable year in the
recovery period--
``(I) described in subsection
(d)(5)(A)(ii)(I), $4,000,
``(II) described in the second
sentence of subsection (d)(5)(A),
$5,000, and
``(III) described in subsection
(d)(5)(A)(ii)(II), $6,000,
``(ii) for the 2nd taxable year in the
recovery period--
``(I) described in subsection
(d)(5)(A)(ii)(I), $6,400,
``(II) described in the second
sentence of subsection (d)(5)(A),
$8,000, and
``(III) described in subsection
(d)(5)(A)(ii)(II), $9,600,
``(iii) for the 3rd taxable year in the
recovery period--
``(I) described in subsection
(d)(5)(A)(ii)(I), $3,850,
``(II) described in the second
sentence of subsection (d)(5)(A),
$4,800, and
``(III) described in subsection
(d)(5)(A)(ii)(II), $5,775, and
``(iv) for each succeeding taxable year in
the recovery period--
``(I) described in subsection
(d)(5)(A)(ii)(I), $2,325,
``(II) described in the second
sentence of subsection (d)(5)(A),
$2,900, and
``(III) described in subsection
(d)(5)(A)(ii)(II), $3,475.''.
(2) Years after recovery period.--Section 280F(a)(1)(B)(ii)
of such Code is amended to read as follows:
``(ii) Limitation.--The amount treated as
an expense under clause (i) for any taxable
year shall not exceed for any passenger
automobile--
``(I) described in subsection
(d)(5)(A)(ii)(I), $2,325,
``(II) described in the second
sentence of subsection (d)(5)(A),
$2,900, and
``(III) described in subsection
(d)(5)(A)(ii)(II), $3,475.''.
(3) Inflation adjustment.--Section 280F(d)(7) of such Code
(relating to automobile price inflation adjustment) is
amended--
(A) by striking ``after 1988'' in subparagraph (A)
and inserting ``after 2006'', and
(B) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) Automobile price inflation adjustment.--For
purposes of this paragraph--
``(i) In general.--The automobile price
inflation adjustment for any calendar year is
the percentage (if any) by which--
``(I) the average wage index for
the preceding calendar year, exceeds
``(II) the average wage index for
2005.
``(ii) Average wage index.--The term
`average wage index' means the average wage
index published by the Social Security
Administration.''.
(4) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of the
enactment of this Act.
(c) Expensing Limitation for Farm Vehicles.--
(1) In general.--Paragraph (6) of section 179(b) of the
Internal Revenue Code of 1986 (relating to limitations) is
amended to read as follows:
``(6) Limitation on cost taken into account for farm
vehicles.--The cost of any vehicle described in section
280F(d)(5)(B)(iii) for any taxable year which may be taken into
account under this section shall not exceed $30,000.''.
(2) Effective date.--The amendment made by this subsection
shall apply to property placed in service after the date of the
enactment of this Act.
SEC. 212. INCREASING THE EFFICIENCY OF MOTOR VEHICLES.
(a) Definitions.--In this section:
(1) Alternative fuel.--The term ``alternative fuel'' has
the meaning given the term in section 32901(a) of title 49,
United States Code.
(2) E85.--The term ``E85'' means a fuel blend containing 85
percent ethanol and 15 percent gasoline or diesel by volume.
(3) Flexible fuel motor vehicle.--The term ``flexible fuel
motor vehicle'' means a light duty motor vehicle warrantied by
the manufacturer of the vehicle to operate on any combination
of gasoline, E85, and M85.
(4) Hybrid motor vehicle.--The term ``hybrid motor
vehicle'' means a new qualified hybrid motor vehicle (as
defined in section 30B(d)(3) of the Internal Revenue Code of
1986) that achieves at least 125 percent of the model year 2002
city fuel economy.
(5) Light-duty motor vehicle.--The term ``light-duty motor
vehicle'' means, as defined in regulations promulgated by the
Administrator of the Environmental Protection Agency in effect
on the date of enactment of this Act--
(A) a light-duty truck; or
(B) a light-duty vehicle.
(6) M85.--The term ``M85'' means a fuel blend containing 85
percent methanol and 15 percent gasoline or diesel by volume.
(7) Plug-in hybrid motor vehicle.--The term ``plug-in
hybrid electric vehicle'' means a hybrid motor vehicle that--
(A) has an onboard, rechargeable storage device
capable of propelling the vehicle solely by electricity
for at least 10 miles; and
(B) achieves at least 125 percent of the model year
2002 city fuel economy.
(8) Qualified motor vehicle.--The term ``qualified motor
vehicle'' means--
(A) a new advanced lean burn technology motor
vehicle (as defined in section 30B(c)(3) of the
Internal Revenue Code of 1986) that achieves at least
125 percent of the model year 2002 city fuel economy;
(B) an alternative fueled automobile (as defined in
section 32901(a) of title 49, United States Code);
(C) a flexible fuel motor vehicle;
(D) a new qualified fuel cell motor vehicle (as
defined in section 30B(b)(3) of the Internal Revenue
Code of 1986);
(E) a hybrid motor vehicle;
(F) a plug-in hybrid motor vehicle; and
(G) any other appropriate motor vehicle that uses
substantially new technology and achieve at least 175
percent of the model year 2002 city fuel economy, as
determined by the Secretary of Transportation, by
regulation.
(b) Requirements.--
(1) Model year 2012.--Not less than 10 percent of light-
duty motor vehicles manufactured for model year 2012 and sold
in the United States shall be qualified motor vehicles.
(2) Model year 2013.--Not less than 20 percent of light-
duty motor vehicles manufactured for model year 2013 and sold
in the United States shall be qualified motor vehicles.
(3) Model year 2014.--Not less than 30 percent of light-
duty motor vehicles manufactured for model year 2014 and sold
in the United States shall be qualified motor vehicles.
(4) Model year 2015.--Not less than 40 percent of light-
duty motor vehicles manufactured for model year 2015 shall be
qualified motor vehicles.
(5) Model year 2016.--Not less than 50 percent of light-
duty motor vehicles manufactured for model year 2016 shall be
qualified motor vehicles.
(6) Model years 2017 and thereafter.--Not less than 50
percent of light-duty motor vehicles manufactured for model
year 2017 and each model year thereafter and sold in the United
States shall be qualified motor vehicles, of which not less
than 10 percent shall be--
(A) hybrid motor vehicles;
(B) plug-in hybrid motor vehicles;
(C) new advanced lean burn technology motor
vehicles (as defined in section 30B(c)(3) of the
Internal Revenue Code of 1986);
(D) new qualified fuel cell motor vehicles (as
defined in section 30B(b)(3) of the Internal Revenue
Code of 1986); or
(E) any other appropriate motor vehicle that uses
substantially new technology and achieve at least 175
percent of the model year 2002 city fuel economy, as
determined by the Secretary of Transportation, by
regulation.
(c) Rulemaking.--Not later than 1 year after the date of enactment
of this Act, the Secretary of Transportation shall promulgate
regulations to carry out this section.
TITLE III--FUEL CHOICES FOR THE 21ST CENTURY
SEC. 301. INCREASE IN ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY
CREDIT.
(a) In General.--Subsection (a) of section 30C of the Internal
Revenue Code of 1986 is amended by striking ``30 percent'' and
inserting ``50 percent''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2005, in taxable years
ending after such date.
SEC. 302. USE OF CAFE PENALTIES TO BUILD ALTERNATIVE FUELING
INFRASTRUCTURE.
Section 32912 of title 49, United States Code, is amended by adding
at the end the following
``(e) Alternative Fueling Infrastructure Trust Fund.--(1) There is
established in the Treasury of the United States a trust fund, to be
known as the Alternative Fueling Infrastructure Trust Fund, consisting
of such amounts as are deposited into the Trust Fund under paragraph
(2) and any interest earned on investment of amounts in the Trust Fund.
``(2) The Secretary of Transportation shall remit 90 percent of the
amount collected in civil penalties under this section to the Trust
Fund.
``(3)(A) The Secretary of Energy shall obligate such sums as are
available in the Trust Fund to establish a grant program to increase
the number of locations at which consumers may purchase alternative
fuels.
``(B)(i) The Secretary of Energy may award grants under this
paragraph, in an amount equal to not more than $150,000 per fueling
station, to--
``(I) individual fueling stations; and
``(II) corporations (including nonprofit corporations) with
demonstrated experience in the administration of grant funding
for the purpose of alternative fueling infrastructure.
``(ii) In awarding grants under this paragraph, the Secretary shall
consider the number of vehicles in service capable of using a specific
type of alternative fuel.
``(iii) Grant recipients shall provide a non-Federal match of not
less than $1 for every $3 of grant funds received under this paragraph.
``(iv) Each grant recipient shall select the locations for each
alternative fuel station to be constructed with grant funds received
under this paragraph on a formal, open, and competitive basis.
``(C) Grant funds received under this paragraph may be used to--
``(i) construct new facilities to dispense alternative
fuels;
``(ii) purchase equipment to upgrade, expand, or otherwise
improve existing alternative fuel facilities; or
``(iii) purchase equipment or pay for specific turnkey
fueling services by alternative fuel providers.
``(D) Facilities constructed or upgraded with grant funds under
this paragraph shall--
``(i) provide alternative fuel available to the public for
a period not less than 4 years;
``(ii) establish a marketing plan to advance the sale and
use of alternative fuels;
``(iii) prominently display the price of alternative fuel
on the marquee and in the station;
``(iv) provide point of sale materials on alternative fuel;
``(v) clearly label the dispenser with consistent
materials;
``(vi) price the alternative fuel at the same margin that
is received for unleaded gasoline; and
``(vii) support and use all available tax incentives to
reduce the cost of the alternative fuel to the lowest possible
retail price.
``(E) Not later than the date on which each alternative fuel
station begins to offer alternative fuel to the public, the grant
recipient that used grant funds to construct such station shall notify
the Secretary of Energy of such opening. The Secretary of Energy shall
add each new alternative fuel station to the alternative fuel station
locator on its Website when it receives notification under this
subparagraph.
``(F) Not later than 6 months after the receipt of a grant award
under this paragraph, and every 6 months thereafter, each grant
recipient shall submit a report to the Secretary of Energy that
describes--
``(i) the status of each alternative fuel station
constructed with grant funds received under this paragraph;
``(ii) the amount of alternative fuel dispensed at each
station during the preceding 6-month period; and
``(iii) the average price per gallon of the alternative
fuel sold at each station during the preceding 6-month
period.''.
SEC. 303. MINIMUM QUANTITY OF RENEWABLE FUEL DERIVED FROM CELLULOSIC
BIOMASS.
Section 211(o)(2)(B) of the Clean Air Act (42 U.S.C. 7545(o)(2)(B))
is amended by striking clause (iii) and inserting the following:
``(iii) Minimum quantity derived from
cellulosic biomass.--
``(I) In general.--The applicable
volume referred to in clause (ii) shall
contain a minimum of--
``(aa) for each of calendar
years 2010 through 2012,
75,000,000 gallons that are
derived from cellulosic
biomass; and
``(bb) for calendar year
2013 and each calendar year
thereafter, 250,000,000 gallons
that are derived from
cellulosic biomass.
``(II) Ratio.--For calendar year
2010 and each calendar year thereafter,
the 2.5-to-1 ratio referred to in
paragraph (4) shall not apply.''.
SEC. 304. MINIMUM QUANTITY OF RENEWABLE FUEL DERIVED FROM SUGAR.
(a) In General.--Section 211(o)(2)(B) of the Clean Air Act (42
U.S.C. 7545(o)(2)(B)) is amended by adding at the end the following:
``(v) Minimum quantity derived from
sugar.--For calendar year 2008 and each
calendar year thereafter, the applicable volume
referred to in clause (ii) shall contain a
minimum of 100,000,000 gallons that are derived
from domestically-grown sugarcane, sugar beets,
or sugar components.''.
(b) Applicable Volume.--Section 211(o)(2)(B)(i) of the Clean Air
Act (42 U.S.C. 7545(o)(2)(B)(i)) is amended--
(1) in the item relating to calendar year 2008, by striking
``5.4'' and inserting ``5.5'';
(2) in the item relating to calendar year 2009, by striking
``6.1'' and inserting ``6.2'';
(3) in the item relating to calendar year 2010, by striking
``6.8'' and inserting ``6.9'';
(4) in the item relating to calendar year 2011, by striking
``7.4'' and inserting ``7.5''; and
(5) in the item relating to calendar year 2012, by striking
``7.5'' and inserting ``7.6''.
SEC. 305. BIOENERGY RESEARCH AND DEVELOPMENT.
Section 931(c) of the Energy Policy Act of 2005 (42 U.S.C.
16231(c)) is amended--
(1) in paragraph (1), by striking ``$213,000,000'' and
inserting ``$326,000,000'';
(2) in paragraph (2), by striking ``$251,000,000'' and
inserting ``$377,000,000''; and
(3) in paragraph (3), by striking ``$274,000,000'' and
inserting ``$398,000,000''.
SEC. 306. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.
Section 942(f) of the Energy Policy Act of 2005 (42 U.S.C.
16251(f)) is amended by striking ``$250,000,000'' and inserting
``$200,000,000 for each of fiscal years 2007 through 2011''.
SEC. 307. LOW-INTEREST LOAN AND GRANT PROGRAM FOR RETAIL DELIVERY OF E-
85 FUEL.
(a) Purposes of Loans.--Section 312(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1942(a)) is amended--
(1) in paragraph (9)(B)(ii), by striking ``or'' at the end;
(2) in paragraph (10), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(11) building infrastructure, including pump stations,
for the retail delivery to consumers of any fuel that contains
not less than 85 percent ethanol, by volume.''.
(b) Program.--Subtitle B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941 et seq.) is amended by adding at the end
the following:
``SEC. 320. LOW-INTEREST LOAN AND GRANT PROGRAM FOR RETAIL DELIVERY OF
E-85 FUEL.
``(a) In General.--The Secretary shall establish a low-interest
loan and grant program to assist farmer-owned ethanol producers
(including cooperatives and limited liability corporations) to develop
and build infrastructure, including pump stations, for the retail
delivery to consumers of any fuel that contains not less than 85
percent ethanol, by volume.
``(b) Terms.--
``(1) Interest rate.--A low-interest loan under this
section shall be fixed at not more than 5 percent for each
year.
``(2) Amortization.--The repayment of a loan under this
section shall be amortized over the expected life of the
infrastructure project that is being financed with the proceeds
of the loan.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
(c) Regulations.--As soon as practicable after the date of
enactment of this Act, the Secretary of Agriculture shall promulgate
such regulations as are necessary to carry out the amendments made by
this section.
SEC. 308. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.
(a) Definitions.--In this section:
(1) Transit-oriented development corridor.--The term
``Transit-Oriented Development Corridor'' or ``TODC'' means a
geographic area designated by the Secretary under subsection
(b).
(2) Other terms.--The terms ``fixed guide way'', ``local
governmental authority'', ``mass transportation'',
``Secretary'', ``State'', and ``urbanized area'' have the
meanings given the terms in section 5302 of title 49, United
States Code.
(b) Transit-Oriented Development Corridors.--
(1) In general.--The Secretary shall develop and carry out
a program to designate geographic areas in urbanized areas as
Transit-Oriented Development Corridors.
(2) Criteria.--An area designated as a TODC under paragraph
(1) shall include rights-of-way for fixed guide way mass
transportation facilities (including commercial development of
facilities that have a physical and functional connection with
each facility).
(3) Number of todcs.--In consultation with State
transportation departments and metropolitan planning
organizations, the Secretary shall designate--
(A) not fewer than 10 TODCs by December 31, 2015;
and
(B) not fewer than 20 TODCs by December 31, 2025.
(4) Transit grants.--
(A) In general.--The Secretary make grants to
eligible states and local governmental authorities to
pay the Federal share of the cost of designating
geographic areas in urbanized areas as TODCs.
(B) Application.--Each eligible State or local
governmental authority that desires to receive a grant
under this paragraph shall submit an application to the
Secretary, at such time, in such manner, and
accompanied by such additional information as the
Secretary may reasonably require.
(C) Labor standards.--Subchapter IV of chapter 31
of title 40, United States Code shall apply to projects
that receive funding under this section.
(D) Federal share.--The Federal share of the cost
of a project under this subsection shall be 50 percent.
(c) TODC Research and Development.--To support effective deployment
of grants and incentives under this section, the Secretary shall
establish a TODC research and development program to conduct research
on the best practices and performance criteria for TODCs.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for each of fiscal
years 2007 through 2012.
TITLE IV--NATIONWIDE ENERGY SECURITY MEDIA CAMPAIGN
SEC. 401. NATIONWIDE MEDIA CAMPAIGN TO DECREASE OIL CONSUMPTION.
(a) In General.--The Secretary of Energy, acting through the
Assistant Secretary for Energy Efficiency and Renewable Energy
(referred to in this section as the ``Secretary''), shall develop and
conduct a national media campaign for the purpose of decreasing oil
consumption in the United States over the next decade.
(b) Contract With Entity.--The Secretary shall carry out subsection
(a) directly or through--
(1) competitively bid contracts with 1 or more nationally
recognized media firms for the development and distribution of
monthly television, radio, and newspaper public service
announcements; or
(2) collective agreements with 1 or more nationally
recognized institutes, businesses, or nonprofit organizations
for the funding, development, and distribution of monthly
television, radio, and newspaper public service announcements.
(c) Use of Funds.--
(1) In general.--Amounts made available to carry out this
section shall be used for the following:
(A) Advertising costs.--
(i) The purchase of media time and space.
(ii) Creative and talent costs.
(iii) Testing and evaluation of
advertising.
(iv) Evaluation of the effectiveness of the
media campaign.
(v) The negotiated fees for the winning
bidder on requests from proposals issued either
by the Secretary for purposes otherwise
authorized in this section.
(vi) Entertainment industry outreach,
interactive outreach, media projects and
activities, public information, news media
outreach, and corporate sponsorship and
participation.
(B) Administrative costs.--Operational and
management expenses.
(2) Limitations.--In carrying out this section, the
Secretary shall allocate not less than 85 percent of funds made
available under subsection (e) for each fiscal year for the
advertising functions specified under paragraph (1)(A).
(d) Reports.--The Secretary shall annually submit to Congress a
report that describes--
(1) the strategy of the national media campaign and whether
specific objectives of the campaign were accomplished,
including--
(A) determinations concerning the rate of change of
oil consumption, in both absolute and per capita terms;
and
(B) an evaluation that enables consideration
whether the media campaign contributed to reduction of
oil consumption;
(2) steps taken to ensure that the national media campaign
operates in an effective and efficient manner consistent with
the overall strategy and focus of the campaign;
(3) plans to purchase advertising time and space;
(4) policies and practices implemented to ensure that
Federal funds are used responsibly to purchase advertising time
and space and eliminate the potential for waste, fraud, and
abuse; and
(5) all contracts or cooperative agreements entered into
with a corporation, partnership, or individual working on
behalf of the national media campaign.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2006 through 2010.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
Sponsor introductory remarks on measure. (CR S2024-2025)
Sponsor introductory remarks on measure. (CR S4692)
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