New Motor Vehicle Fuel Economy Standards:
Some easily predictable consequences
23 Jun 2007 in Legislation
H.R. 6 (Rahall) passed the House 264-163 and now the Senate 65-27, but with amendment that requires a conference. This presents a good opportunity to describe the economic implications of some of its more notable provisions.
We start with corporate average fuel economy standards for motor vehicles.
It was approved six days after introduction. In the Senate, the bill was replaced by a substitute (Senate Amendment 1502 [Reid]), which then was subject to dozens of additional amendments, not all of them germane to fuel economy. Some amendments were adopted. Neither H.R. 6 nor any of these amendments was subjected to significant economic and policy analysis.
This means sorting out the likely consequences of the bill probably will not occur until after it is enacted. It might begin to occur sooner because, as indicated above, a conference with the House is required. Some opponents of the bill are well positioned to affect the conference report or prevent a bill from getting out of conference. The Bush administration's position on the bill is mixed, and while it does not reflect the version approved by the Senate, no veto threat has been issued.
The bill and its amendments are complex, so there is ample opportunity for certain provisions to exert subtle influences. Nevertheless, some effects can be predicted with elementary economics reasoning.
First, to comply with the new standards manufacturers must design and build vehicles for which there is little or no consumer demand. If consumers demanded fuel economy averaging 35 miles per gallon (mpg), automakers would be competing aggressively to provide them. The bill will severely restrict the supply or remove from the market highly popular vehicles (such as mid- and full-size SUVs). For every vehicle getting 22 mpg, another vehicle getting 48 mpg must be sold. Market demand for 22-mpg cars and SUVs is significant, but market demand for 48-mpg cars is negligible. Unless consumer tastes unexpectedly change, manufacturers likely will cross-subsidize, discounting the price of high-mpg vehicles and collecting premiums on low-mpg vehicles. It is the judgment of a majority of Members and Senators that few, if any, consumers ought to be able to purchase 22-mpg cars and SUVs.
Second, future vehicles will be less safe than current vehicles. Achieving higher fuel economy generally comes at the expense of reduced safety, though much of the additional safety risk can be reduced through expensive engineering changes. Congress understands this and has addressed it by authorizing the Department of Transportation to regulate vehicles so as to "reduce automobile incompatibility."
The standard shall address characteristics necessary to ensure better management of crash forces in multiple vehicle frontal and side impact crashes between different types, sizes, and weights of automobiles with a gross vehicle weight of 10,000 pounds or less in order to decrease occupant deaths and injuries.
DOT will have some authority to set standards that make tradeoffs between fuel economy and safety. Nevertheless, safety is sure to decline. There will be more highway deaths and injuries than otherwise would have been the case. If the bill had also authorized DOT to mandate and enforce significantly lower speed limits (e.g., 45 mph on interstate highways), it would have had the ability to overcome these additional safety risks. Nevertheless, it is the judgment of a majority in Congress it is worth bearing these additional safety risks in order to save fuel.
Third, future vehicles will be more expensive than they otherwise would have been. This will be especially so for the limited supply of heavy, low-mpg vehicles, as prices for these vehicles will be bid up in response to their scarcity. To the extent that higher vehicle prices reduce sales, some of the new safety risks will be avoided. It is the judgment of a majority in Congress that higher prices do not impose an inequitable burden on lower income households.
Fourth, consumers will adapt to the restricted marketplace in many ways, some of which are predictable. For example, higher fuel economy reduces the marginal cost of driving and will result in greater vehicle miles traveled. The average number of vehicles per household will rise because some of the tasks previously performed using large vehicles will require more vehicles to accomplish. Some large-vehicle activities, such as towing boats and trailers, cannot be managed this way. Consumers will retain vehicles longer and delay replacement. The average age of the vehicle fleet will rise. for each of these reasons, actual motor fuel fuel savings will be less than expected. Because these adaptive effects are known to occur, it is the judgment of a majority in Congress that reductions in fuel savings resulting from adaptive consumer response will not be significant.
TITLE V--CORPORATE AVERAGE FUEL ECONOMY STANDARDS
SEC. 501. SHORT TITLE.
This title may be cited as the ``Ten-in-Ten Fuel Economy Act''.
SEC. 502. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND CERTAIN OTHER VEHICLES.
(a) Increased Standards.--Section 32902 of title 49, United States Code, is amended--
(1) by striking ``NON-PASSENGER AUTOMOBILES.--'' in subsection (a) and inserting ``PRESCRIPTION OF STANDARDS BY REGULATION.--'';
(2) by striking ``(except passenger automobiles)'' in subsection (a); and
(3) by striking subsection (b) and inserting the following:
``(b) Standards for Automobiles and Certain Other Vehicles.--
``(1) IN GENERAL.--The Secretary of Transportation, after consultation with the Administrator of the Environmental Protection Agency, shall prescribe average fuel economy standards for--
``(A) automobiles manufactured by manufacturers in each model year beginning with model year 2011 in accordance with subsection (c); and
``(B) commercial medium-duty or heavy-duty on-highway vehicles in accordance with subsection (k).
``(2) FUEL ECONOMY TARGET FOR AUTOMOBILES.--
``(A) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2011 THROUGH 2020.--The Secretary shall prescribe average fuel economy standards for automobiles in each model year beginning with model year 2011 to achieve a combined fuel economy average for model year 2020 of at least 35 miles per gallon for the fleet of automobiles manufactured or sold in the United States. The average fuel economy standards prescribed by the Secretary shall be the maximum feasible average fuel economy standards for model years 2011 through 2019.
``(B) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2021 THROUGH 2030.--For model years 2021 through 2030, the average fuel economy required to be attained by the fleet of automobiles manufactured or sold in the United States shall be the maximum feasible average fuel economy standard for the fleet.
``(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.''.
(b) Fuel Economy Target for Commercial Medium-Duty and Heavy-Duty On-Highway Vehicles.--Section 32902 of title 49, United States Code, is amended by adding at the end thereof the following:
``(k) Commercial Medium- and Heavy-Duty On-Highway Vehicles.--
``(1) STUDY.--No later than 18 months after the date of enactment 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 determine--
``(A) the appropriate test procedures and methodologies for measuring commercial medium- and heavy-duty on-highway vehicle fuel efficiency;
``(B) the appropriate metric for measuring and expressing commercial medium- and heavy-duty on-highway vehicle fuel efficiency performance, taking into consideration, among other things, the work performed by such on-highway vehicles 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 effect commercial medium- and heavy-duty on-highway vehicle 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 fuel efficiency.
``(2) RULEMAKING.--No later than 24 months after completion of the study required by 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 procedure how to implement a commercial medium- and heavy-duty on-highway vehicle fuel efficiency improvement program designed to achieve the maximum feasible improvement, and shall adopt 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.
``(3) LEAD-TIME; REGULATORY STABILITY.--Any commercial medium- and heavy-duty
[Page: S8182]
on-highway vehicle fuel efficiency regulatory program adopted pursuant to this subsection shall provide no less than 4 full model years of regulatory lead-time and 3 full model years of regulatory stability.
``(4) COMMERCIAL MEDIUM- AND HEAVY-DUTY ON-HIGHWAY VEHICLE DEFINED.--In this subsection, the term `commercial medium- and heavy-duty on-highway vehicle' means an on-highway vehicle with a gross vehicle weight rating of more than 8,500 pounds, and that, in the case of a vehicle with a gross vehicle weight rating of less than 10,000 pounds, is not an automobile.''.
(c) Authority of Secretary.--Section 32902 of title 49, United States Code, as amended by subsection (b), is further amended by adding at the end thereof the following:
``(l) Authority of the Secretary.--
``(1) VEHICLE ATTRIBUTES; MODEL YEARS COVERED.--The Secretary shall--
``(A) prescribe by regulation average fuel economy standards for automobiles based on vehicle attributes related to fuel economy and to express the standards in the form of a mathematical function; and
``(B) issue regulations under this title prescribing average fuel economy standards for 1 or more model years.
``(2) PROHIBITION OF UNIFORM PERCENTAGE INCREASE.--When the Secretary prescribes a standard, or prescribes an amendment under this section that changes a standard, the standard may not be expressed as a uniform percentage increase from the fuel-economy performance of attribute classes or categories already achieved in a model year by a manufacturer.''.
SEC. 503. AMENDING FUEL ECONOMY STANDARDS.
(a) In General.--Section 32902(c) of title 49, United States Code, is amended to read as follows:
``(c) Amending Fuel Economy Standards.--Notwithstanding subsections (a) and (b), the Secretary of Transportation--
``(1) may prescribe a standard higher than that required under subsection (b); or
``(2) may prescribe an average fuel economy standard for automobiles that is the maximum feasible level for the model year, despite being lower than the standard required under subsection (b), if the Secretary determines, based on clear and convincing evidence, that the average fuel economy standard prescribed in accordance with subsections (a) and (b) for automobiles in that model year is shown not to be cost-effective.''.
(b) Feasibility Criteria.--Section 32902(f) of title 49, United States Code, is amended to read as follows:
``(f) Decisions on Maximum Feasible Average Fuel Economy.--
``(1) IN GENERAL.--When deciding maximum feasible average fuel economy under this section, the Secretary shall consider--
``(A) economic practicability;
``(B) the effect of other motor vehicle standards of the Government on fuel economy;
``(C) environmental impacts; and
``(D) the need of the United States to conserve energy.
``(2) LIMITATIONS.--In setting any standard under subsection (b), (c), or (d), the Secretary shall ensure that each standard is the highest standard that--
``(A) is technologically achievable;
``(B) can be achieved without materially reducing the overall safety of automobiles manufactured or sold in the United States;
``(C) is not less than the standard for that class of vehicles from any prior year; and
``(D) is cost-effective.
``(3) COST-EFFECTIVE DEFINED.--In this subsection, the term `cost-effective' means that the value to the United States of reduced fuel use from a proposed fuel economy standard is greater than or equal to the cost to the United States of such standard. In determining cost-effectiveness, the Secretary shall give priority to those technologies and packages of technologies that offer the largest reduction in fuel use relative to their costs.
``(4) FACTORS FOR CONSIDERATION BY SECRETARY IN DETERMINING COST-EFFECTIVENESS.--The Secretary shall consult with the Administrator of the Environmental Protection Agency, and may consult with such other departments and agencies as the Secretary deems appropriate, and shall consider in the analysis the following factors:
``(A) Economic security.
``(B) The impact of the oil or energy intensity of the United States economy on the sensitivity of the economy to oil and other fuel price changes, including the magnitude of gross domestic product losses in response to short term price shocks or long term price increases.
``(C) National security, including the impact of United States payments for oil and other fuel imports on political, economic, and military developments in unstable or unfriendly oil-exporting countries.
``(D) The uninternalized costs of pipeline and storage oil seepage, and for risk of oil spills from production, handling, and transport, and related landscape damage.
``(E) The emissions of pollutants including greenhouse gases over the lifecycle of the fuel and the resulting costs to human health, the economy, and the environment.
``(F) Such additional factors as the Secretary deems relevant.
``(5) MINIMUM VALUATION.--When considering the value to consumers of a gallon of gasoline saved, the Secretary of Transportation shall use as a minimum value the greater of--
``(A) the average value of gasoline prices projected by the Energy Information Administration over the period covered by the standard; or
``(B) the average value of gasoline prices for the 5-year period immediately preceding the year in which the standard is established.''.
(c) Consultation Requirement.--Section 32902(i) of title 49, United States Code, is amended by inserting ``and the Administrator of the Environmental Protection Agency'' after ``Energy''.
(d) Comments.--Section 32902(j) of title 49, United States Code, is amended--
(1) by striking paragraph (1) and inserting ``(1) Before issuing a notice proposing to prescribe or amend an average fuel economy standard under subsection (b), (c), or (g) of this section, the Secretary of Transportation shall give the Secretary of Energy and Administrator of the Environmental Protection Agency at least 30 days after the receipt of the notice during which the Secretary of Energy and Administrator may, if the Secretary of Energy or Administrator concludes that the proposed standard would adversely affect the conservation goals of the Secretary of Energy or environmental protection goals of the Administrator, provide written comments to the Secretary of Transportation about the impact of the standard on those goals. To the extent the Secretary of Transportation does not revise a proposed standard to take into account comments of the Secretary of Energy or Administrator on any adverse impact of the standard, the Secretary of Transportation shall include those comments in the notice.''; and
(2) by inserting ``and the Administrator'' after ``Energy'' each place it appears in paragraph (2).
(e) Alternative Fuel Economy Standards for Low Volume Manufacturers and New Entrants.--Section 32902(d) of title 49, United States Code, is amended to read as follows:
``(d) Alternative Average Fuel Economy Standard.--
``(1) IN GENERAL.--Upon the application of an eligible manufacturer, the Secretary of Transportation may prescribe an alternative average fuel economy standard for automobiles manufactured by that manufacturer if the Secretary determines that--
``(A) the applicable standard prescribed under subsection (a), (b), or (c) is more stringent than the maximum feasible average fuel economy level that manufacturer can achieve; and
``(B) the alternative average fuel economy standard prescribed under this subsection is the maximum feasible average fuel economy level that manufacturer can achieve.
``(2) APPLICATION OF ALTERNATIVE STANDARD.--The Secretary may provide for the application of an alternative average fuel economy standard prescribed under paragraph (1) to--
``(A) the manufacturer that applied for the alternative average fuel economy standard;
``(B) all automobiles to which this subsection applies; or
``(C) classes of automobiles manufactured by eligible manufacturers.
``(3) IMPORTERS.--Notwithstanding paragraph (1), an importer registered under section 30141(c) may not be exempted as a manufacturer under paragraph (1) for an automobile that the importer--
``(A) imports; or
``(B) brings into compliance with applicable motor vehicle safety standards prescribed under chapter 301 for an individual described in section 30142.
``(4) APPLICATION.--The Secretary of Transportation may prescribe the contents of an application for an alternative average fuel economy standard.
``(5) ELIGIBLE MANUFACTURER DEFINED.--In this section, the term `eligible manufacturer' means a manufacturer that--
``(A) is not owned in whole or in part by another manufacturer that sold greater than 0.5 percent of the number of automobiles sold in the United States in the model year prior to the model year to which the application relates;
``(B) sold in the United States fewer than 0.4 percent of the number of automobiles sold in the United States in the model year that is 2 years before the model year to which the application relates; and
``(C) will sell in the United States fewer than 0.4 percent of the automobiles sold in the United States for the model year for which the alternative average fuel economy standard will apply.
``(6) LIMITATION.--For purposes of this subsection, notwithstanding section 32901(a)(4), the term `automobile manufactured by a manufacturer' includes every automobile manufactuered by a person that controls, is controlled by, or is under common control with the manufacturer.
(f) Technical and Conforming Amendments.--
(1) Section 32902(d) of title 49, United States Code, is amended by striking ``passenger'' each place it appears.
(2) Section 32902(g) of title 49, United States Code, is amended--
(A) by striking ``subsection (a) or (d)'' each place it appears in paragraph (1) and inserting ``subsection (b), (c), or (d)''; and
(B) striking ``(and submit the amendment to Congress when required under subsection (c)(2) of this section)'' in paragraph (2).
[Page: S8183]
SEC. 504. 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 not more than 10,000 pounds gross vehicle weight, except--
``(A) a vehicle operated only on a rail line;
``(B) a vehicle manufactured by 2 or more manufacturers in different stages and less than 10,000 of which are manufactured per year; or
``(C) a work truck.''; and
(2) by adding at the end the following:
``(17) `work truck' means an automobile that the Secretary determines by regulation--
``(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).''.
(b) Deadline for Regulations.--The Secretary of Transportation--
(1) shall issue proposed regulations implementing the amendments made by subsection (a) not later than 1 year after the date of enactment of this Act; and
(2) shall issue final regulations implementing the amendments not later than 18 months after the date of the enactment of this Act.
(c) Effective Date.--Regulations prescribed under subsection (b) shall apply beginning with model year 2010.
SEC. 505. ENSURING SAFETY OF AUTOMOBILES.
(a) In General.--Subchapter II of chapter 301 of title 49, United States Code, is amended by adding at the end the following:
``§30129. Vehicle compatibility standard
``(a) Standards.--The Secretary of Transportation shall issue a motor vehicle safety standard to reduce automobile incompatibility. The standard shall address characteristics necessary to ensure better management of crash forces in multiple vehicle frontal and side impact crashes between different types, sizes, and weights of automobiles with a gross vehicle weight of 10,000 pounds or less in order to decrease occupant deaths and injuries.
``(b) Consumer Information.--The Secretary shall develop and implement a public information side and frontal compatibility crash test program with vehicle ratings based on risks to occupants, risks to other motorists, and combined risks by vehicle make and model.''.
(b) Rulemaking Deadlines.--
(1) RULEMAKING.--The Secretary of Transportation shall issue--
(A) a notice of a proposed rulemaking under section 30129 of title 49, United States Code, not later than January 1, 2012; and
(B) a final rule under such section not later than December 31, 2014.
(2) EFFECTIVE DATE OF REQUIREMENTS.--Any requirement imposed under the final rule issued under paragraph (1) shall become fully effective not later than September 1, 2018.
(c) Conforming Amendment.--The chapter analysis for chapter 301 is amended by inserting after the item relating to section 30128 the following:
``30129..Vehicle compatibility standard''.
SEC. 506. CREDIT TRADING PROGRAM.
Section 32903 of title 49, United States Code, is amended--
(1) by striking ``passenger'' each place it appears;
(2) by striking ``section 32902(b)-(d) of this title'' each place it appears and inserting ``subsection (a), (c), or (d) of section 32902'';
(3) by striking ``3 consecutive model years'' in subsection (a)(2) and inserting ``5 consecutive model years'';
(4) in subsection (a)(2), by striking ``clause (1) of this subsection,'' and inserting ``paragraph (1)''; and
(5) by striking subsection (e) and inserting the following:
``(e) Credit Trading Among Manufacturers.--The Secretary of Transportation may establish, by regulation, a corporate average fuel economy credit trading program to allow manufacturers whose automobiles exceed the average fuel economy standards prescribed under section 32902 to earn credits to be sold to manufacturers whose automobiles fail to achieve the prescribed standards such that the total oil savings associated with manufacturers that exceed the prescribed standards are preserved when transferring credits to manufacturers that fail to achieve the prescribed standards.''.
SEC. 507. LABELS FOR FUEL ECONOMY AND GREENHOUSE GAS EMISSIONS.
Section 32908 of title 49, United States Code, is amended--
(1) by redesignating subparagraph (F) of subsection (b)(1) as subparagraph (H) and inserting after subparagraph (E) the following:
``(F) a label (or a logo imprinted on a label required by this paragraph) that--
``(i) reflects an automobile's performance on the basis of criteria developed by the Administrator to reflect the fuel economy and greenhouse gas and other emissions consequences of operating the automobile over its likely useful life;
``(ii) permits consumers to compare performance results under clause (i) among all automobiles; and
``(iii) is designed to encourage the manufacture and sale of automobiles that meet or exceed applicable fuel economy standards under section 32902.
``(G) a fuelstar under paragraph (5).''; and
(2) by adding at the end of subsection (b) the following:
``(4) Green Label Program.--
``(A) MARKETING ANALYSIS.--Not later than 2 years after the date of the enactment of the Ten-in-Ten Fuel Economy Act, the Administrator shall implement a consumer education program and execute marketing strategies to improve consumer understanding of automobile performance described in paragraph (1)(F).
``(B) ELIGIBILITY.--Not later than 3 years after the date described in subparagraph (A), the Administrator shall issue requirements for the label or logo required under paragraph (1)(F) to ensure that an automobile is not eligible for the label or logo unless it--
``(i) meets or exceeds the applicable fuel economy standard; or
``(ii) will have the lowest greenhouse gas emissions over the useful life of the vehicle of all vehicles in the vehicle attribute class to which it belongs in that model year.
``(5) Fuelstar Program.--
``(A) IN GENERAL.--The Secretary shall establish a program, to be known as the `Fuelstar Program', under which stars shall be imprinted on or attached to the label required by paragraph (1).
``(B) GREEN STARS.--Under the Fuelstar Program, a manufacturer may include on the label maintained on an automobile under paragraph (1)--
``(i) 1 green star for any automobile that meets the average fuel economy standard for the model year under section 32902; and
``(ii) 1 additional green star for each 2 miles per gallon by which the automobile exceeds such standard.
``(C) GOLD STARS.--Under the Fuelstar Program, a manufacturer may include a gold star on the label maintained on an automobile under paragraph (1) if the automobile attains a fuel economy of at least 50 miles per gallon.''.
SEC. 508. CONTINUED APPLICABILITY OF EXISTING STANDARDS.
Nothing in this title, or the amendments made by this title, shall be construed to affect the application of section 32902 of title 49, United States Code, to passenger automobiles or non-passenger automobiles manufactured before model year 2011.
SEC. 509. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) In General.--As soon as practicable after the date of enactment of this Act, the Secretary of Transportation shall execute an agreement with the National Academy of Sciences to develop a report evaluating vehicle fuel economy standards, including--
(1) an assessment of automotive technologies and costs to reflect developments since the Academy's 2002 report evaluating the corporate average fuel economy standards was conducted;
(2) an analysis of existing and potential technologies that may be used practically to improve automobile 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 title.
(b) Quinquennial Updates.--After submitting the initial report, the Academy shall update the report at 5 year intervals thereafter through 2025.
(c) Report.--The Academy shall submit the report to the Secretary, the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce, with its findings and recommendations no later than 18 months after the date on which the Secretary executes the agreement with the Academy.
SEC. 510. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.
(a) In General.--Section 32917 of title 49, United States Code, is amended to read as follows:``§32917. Standards for Executive agency automobiles
``(a) Fuel Efficiency.--The head of an Executive agency shall ensure that each new automobile procured by the Executive agency is as fuel efficient as practicable.
``(b) Definitions.--In this section:
``(1) EXECUTIVE AGENCY.--The term `Executive agency' has the meaning given that term in section 105 of title 5.
``(2) NEW AUTOMOBILE.--The term `new automobile', with respect to the fleet of automobiles of an executive agency, means an automobile that is leased for at least 60 consecutive days or bought, by or for the Executive agency, after September 30, 2008. The term does not include any vehicle designed for combat-related missions, law enforcement work, or emergency rescue work.''.
(b) Report.--The Administrator of the General Services Administration shall develop a report describing and evaluating the efforts of the heads of the Executive agencies to comply with section 32917 of title 49, United States Code, for fiscal year 2009. The Administrator shall submit the report to Congress no later than December 31, 2009.
SEC. 511. INCREASING CONSUMER AWARENESS OF FLEXIBLE FUEL AUTOMOBILES.
Section 32908 of title 49, United States Code, is amended by adding at the end the following:
``(g) Increasing Consumer Awareness of Flexible Fuel Automobiles.--(1) The Secretary of Energy, in consultation with the
Secretary of Transportation, shall prescribe regulations that require the manufacturer of automobiles distributed in interstate commerce for sale in the United States--
``(A) to prominently display a permanent badge or emblem on the quarter panel or tailgate of each such automobile that indicates such vehicle is capable of operating on alternative fuel; and
``(B) to include information in the owner's manual of each such automobile information that describes--
``(i) the capability of the automobile to operate using alternative fuel;
``(ii) the benefits of using alternative fuel, including the renewable nature, and the environmental benefits of using alternative fuel; and
``(C) to contain a fuel tank cap that is clearly labeled to inform consumers that the automobile is capable of operating on alternative fuel.
``(2) The Secretary of Transportation shall collaborate with automobile retailers to develop voluntary methods for providing prospective purchasers of automobiles with information regarding the benefits of using alternative fuel in automobiles, including--
``(A) the renewable nature of alternative fuel; and
``(B) the environmental benefits of using alternative fuel.''.
SEC. 512. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING PROCEDURES.
Beginning in 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 C.F.R. parts 86 and 600) to determine whether changes in the factors used to establish the labeling procedures warrant a revision of that process; and
(2) submit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce that describes the results of the reevaluation process.
SEC. 513. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.
(a) In General.--Chapter 301 of title 49, United States Code, is amended by inserting after section 30123 the following new section:``§30123A. Tire fuel efficiency consumer information
``(a) Rulemaking.--
``(1) IN GENERAL.--Not later than 18 months after the date of enactment of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation shall, after notice and opportunity for comment, promulgate rules establishing a national tire fuel efficiency consumer information program for tires designed for use on motor vehicles to educate consumers about the effect of tires on automobile fuel efficiency.
``(2) ITEMS INCLUDED IN RULE.--The rulemaking shall include--
``(A) a national tire fuel efficiency rating system for motor vehicle tires to assist consumers in making more educated tire purchasing decisions;
``(B) requirements for providing information to consumers, including information at the point of sale and other potential information dissemination methods, including the Internet;
``(C) specifications for test methods for manufacturers to use in assessing and rating tires to avoid variation among test equipment and manufacturers; and
``(D) a national tire maintenance consumer education program including, information on tire inflation pressure, alignment, rotation, and tread wear to maximize fuel efficiency.
``(3) APPLICABILITY.--This section shall not apply to tires excluded from coverage under section 575.104(c)(2) of title 49, Code of Federal Regulations, as in effect on date of enactment of the Ten-in-Ten Fuel Economy Act.
``(b) Consultation.--The Secretary shall consult with the Secretary of Energy and the Administrator of the Environmental Protection Agency on the means of conveying tire fuel efficiency consumer information.
``(c) Report to Congress.--The Secretary shall conduct periodic assessments of the rules promulgated under this section to determine the utility of such rules to consumers, the level of cooperation by industry, and the contribution to national goals pertaining to energy consumption. The Secretary shall transmit periodic reports detailing the findings of such assessments to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce.
``(d) Tire Marking.--The Secretary shall not require permanent labeling of any kind on a tire for the purpose of tire fuel efficiency information.
``(e) Preemption.--When a requirement under this section is in effect, a State or political subdivision of a State may adopt or enforce a law or regulation on tire fuel efficiency consumer information only if the law or regulation is identical to that requirement. Nothing in this section shall be construed to preempt a State or political subdivision of a State from regulating the fuel efficiency of tires not otherwise preempted under this chapter.''.
(b) Enforcement.--Section 30165(a) of title 49, United States Code, is amended by adding at the end the following:
``(4) SECTION 30123a.--Any person who fails to comply with the national tire fuel efficiency consumer information program under section 30123A is liable to the United States Government for a civil penalty of not more than $50,000 for each violation.''.
(c) Conforming Amendment.--The chapter analysis for chapter 301 of title 49, United States Code, is amended by inserting after the item relating to section 30123 the following:
``30123A. Tire fuel efficiency consumer information''.
SEC. 514. ADVANCED BATTERY INITIATIVE.
(a) In General.--The Secretary of Energy, in consultation with the Secretary of Transportation, shall establish and carry out an Advanced Battery Initiative in accordance with this section to support research, development, demonstration, and commercial application of battery technologies.
(b) Industry Alliance.--Not later than 180 days after the date of enactment of this Act, the Secretary shall competitively select an Industry Alliance to represent participants who are private, for-profit firms headquartered in the United States, the primary business of which is the manufacturing of batteries.
(c) Research.--
(1) GRANTS.--The Secretary shall carry out research activities of the Initiative through competitively-awarded grants to--
(A) researchers, including Industry Alliance participants;
(B) small businesses;
(C) National Laboratories; and
(D) institutions of higher education.
(2) INDUSTRY ALLIANCE.--The Secretary shall annually solicit from the Industry Alliance--
(A) comments to identify advanced battery technology and battery systems needs relevant to--
(i) electric drive technology; and
(ii) other applications the Secretary deems appropriate;
(B) an assessment of the progress of research activities of the Initiative; and
(C) assistance in annually updating advanced battery technology and battery systems roadmaps.
(d) Availability to the Public.--The information and roadmaps developed under this section shall be available to the public.
(e) Preference.--In making awards under this subsection, the Secretary shall give preference to participants in the Industry Alliance.
(f) Cost Sharing.--In carrying out this section, the Secretary shall require cost sharing in accordance with section 120(b) of title 23, United States Code.
(g) Authorization of Appropriations.--There are authorized to be appropriated to carry out this section such sums as may be necessary for each of fiscal years 2008 through 2012.
SEC. 515. BIODIESEL STANDARDS.
(a) In General.--Not later than 180 days after the date of enactment of this Act, the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Transportation and the Secretary of Energy, shall promulgate regulations to ensure that all diesel-equivalent fuels derived from renewable biomass that are introduced into interstate commerce are tested and certified to comply with appropriate American Society for Testing and Materials standards.
(b) Definitions.--In this section:
(1) BIODIESEL.--
(A) IN GENERAL.--The term ``biodiesel'' means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet--
(i) the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U.S.C. 7545); and
(ii) the requirements of the American Society of Testing and Materials D6751.
(B) INCLUSIONS.--The term ``biodiesel'' includes esters described in subparagraph (A) derived from--
(i) animal waste, including poultry fat, poultry waste, and other waste material; and
(ii) municipal solid waste, sludge, and oil derived from wastewater or the treatment of wastewater.
(2) BIODIESEL BLEND.--The term ``biodiesel blend'' means a mixture of biodiesel and diesel fuel, including--
(A) a blend of biodiesel and diesel fuel approximately 5 percent of the content of which is biodiesel (commonly known as ``B5''); and
(B) a blend of biodiesel and diesel fuel approximately 20 percent of the content of which is biodiesel (commonly known as ``B20'').
SEC. 516. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.
Section 32912 of title 49, United States Code, is amended by adding at the end thereof the following:
``(e) Use of Civil Penalties.--For fiscal year 2008 and each fiscal year thereafter, from the total amount deposited in the general fund of the Treasury during the preceding fiscal year from fines, penalties, and other funds obtained through enforcement actions conducted pursuant to this section (including funds obtained under consent decrees), the Secretary of the Treasury, subject to the availability of appropriations, shall--
``(1) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which
(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 not more than 10,000 pounds gross vehicle weight, except--
``(A) a vehicle operated only on a rail line;
``(B) a vehicle manufactured by 2 or more manufacturers in different stages and less than 10,000 of which are manufactured per year; or
``(C) a work truck.''; and
(2) by adding at the end the following:
``(17) `work truck' means an automobile that the Secretary determines by regulation--
``(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).''.
(b) Deadline for Regulations.--The Secretary of Transportation--
(1) shall issue proposed regulations implementing the amendments made by subsection (a) not later than 1 year after the date of enactment of this Act; and
(2) shall issue final regulations implementing the amendments not later than 18 months after the date of the enactment of this Act.
(c) Effective Date.--Regulations prescribed under subsection (b) shall apply beginning with model year 2010.
SEC. 505. ENSURING SAFETY OF AUTOMOBILES.
(a) In General.--Subchapter II of chapter 301 of title 49, United States Code, is amended by adding at the end the following:
``§30129. Vehicle compatibility standard
``(a) Standards.--The Secretary of Transportation shall issue a motor vehicle safety standard to reduce automobile incompatibility. The standard shall address characteristics necessary to ensure better management of crash forces in multiple vehicle frontal and side impact crashes between different types, sizes, and weights of automobiles with a gross vehicle weight of 10,000 pounds or less in order to decrease occupant deaths and injuries.
``(b) Consumer Information.--The Secretary shall develop and implement a public information side and frontal compatibility crash test program with vehicle ratings based on risks to occupants, risks to other motorists, and combined risks by vehicle make and model.''.
(b) Rulemaking Deadlines.--
(1) RULEMAKING.--The Secretary of Transportation shall issue--
(A) a notice of a proposed rulemaking under section 30129 of title 49, United States Code, not later than January 1, 2012; and
(B) a final rule under such section not later than December 31, 2014.
(2) EFFECTIVE DATE OF REQUIREMENTS.--Any requirement imposed under the final rule issued under paragraph (1) shall become fully effective not later than September 1, 2018.
(c) Conforming Amendment.--The chapter analysis for chapter 301 is amended by inserting after the item relating to section 30128 the following:
``30129..Vehicle compatibility standard''.
SEC. 506. CREDIT TRADING PROGRAM.
Section 32903 of title 49, United States Code, is amended--
(1) by striking ``passenger'' each place it appears;
(2) by striking ``section 32902(b)-(d) of this title'' each place it appears and inserting ``subsection (a), (c), or (d) of section 32902'';
(3) by striking ``3 consecutive model years'' in subsection (a)(2) and inserting ``5 consecutive model years'';
(4) in subsection (a)(2), by striking ``clause (1) of this subsection,'' and inserting ``paragraph (1)''; and
(5) by striking subsection (e) and inserting the following:
``(e) Credit Trading Among Manufacturers.--The Secretary of Transportation may establish, by regulation, a corporate average fuel economy credit trading program to allow manufacturers whose automobiles exceed the average fuel economy standards prescribed under section 32902 to earn credits to be sold to manufacturers whose automobiles fail to achieve the prescribed standards such that the total oil savings associated with manufacturers that exceed the prescribed standards are preserved when transferring credits to manufacturers that fail to achieve the prescribed standards.''.
SEC. 507. LABELS FOR FUEL ECONOMY AND GREENHOUSE GAS EMISSIONS.
Section 32908 of title 49, United States Code, is amended--
(1) by redesignating subparagraph (F) of subsection (b)(1) as subparagraph (H) and inserting after subparagraph (E) the following:
``(F) a label (or a logo imprinted on a label required by this paragraph) that--
``(i) reflects an automobile's performance on the basis of criteria developed by the Administrator to reflect the fuel economy and greenhouse gas and other emissions consequences of operating the automobile over its likely useful life;
``(ii) permits consumers to compare performance results under clause (i) among all automobiles; and
``(iii) is designed to encourage the manufacture and sale of automobiles that meet or exceed applicable fuel economy standards under section 32902.
``(G) a fuelstar under paragraph (5).''; and
(2) by adding at the end of subsection (b) the following:
``(4) Green Label Program.--
``(A) MARKETING ANALYSIS.--Not later than 2 years after the date of the enactment of the Ten-in-Ten Fuel Economy Act, the Administrator shall implement a consumer education program and execute marketing strategies to improve consumer understanding of automobile performance described in paragraph (1)(F).
``(B) ELIGIBILITY.--Not later than 3 years after the date described in subparagraph (A), the Administrator shall issue requirements for the label or logo required under paragraph (1)(F) to ensure that an automobile is not eligible for the label or logo unless it--
``(i) meets or exceeds the applicable fuel economy standard; or
``(ii) will have the lowest greenhouse gas emissions over the useful life of the vehicle of all vehicles in the vehicle attribute class to which it belongs in that model year.
``(5) Fuelstar Program.--
``(A) IN GENERAL.--The Secretary shall establish a program, to be known as the `Fuelstar Program', under which stars shall be imprinted on or attached to the label required by paragraph (1).
``(B) GREEN STARS.--Under the Fuelstar Program, a manufacturer may include on the label maintained on an automobile under paragraph (1)--
``(i) 1 green star for any automobile that meets the average fuel economy standard for the model year under section 32902; and
``(ii) 1 additional green star for each 2 miles per gallon by which the automobile exceeds such standard.
``(C) GOLD STARS.--Under the Fuelstar Program, a manufacturer may include a gold star on the label maintained on an automobile under paragraph (1) if the automobile attains a fuel economy of at least 50 miles per gallon.''.
SEC. 508. CONTINUED APPLICABILITY OF EXISTING STANDARDS.
Nothing in this title, or the amendments made by this title, shall be construed to affect the application of section 32902 of title 49, United States Code, to passenger automobiles or non-passenger automobiles manufactured before model year 2011.
SEC. 509. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) In General.--As soon as practicable after the date of enactment of this Act, the Secretary of Transportation shall execute an agreement with the National Academy of Sciences to develop a report evaluating vehicle fuel economy standards, including--
(1) an assessment of automotive technologies and costs to reflect developments since the Academy's 2002 report evaluating the corporate average fuel economy standards was conducted;
(2) an analysis of existing and potential technologies that may be used practically to improve automobile 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 title.
(b) Quinquennial Updates.--After submitting the initial report, the Academy shall update the report at 5 year intervals thereafter through 2025.
(c) Report.--The Academy shall submit the report to the Secretary, the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce, with its findings and recommendations no later than 18 months after the date on which the Secretary executes the agreement with the Academy.
SEC. 510. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.
(a) In General.--Section 32917 of title 49, United States Code, is amended to read as follows:``§32917. Standards for Executive agency automobiles
``(a) Fuel Efficiency.--The head of an Executive agency shall ensure that each new automobile procured by the Executive agency is as fuel efficient as practicable.
``(b) Definitions.--In this section:
``(1) EXECUTIVE AGENCY.--The term `Executive agency' has the meaning given that term in section 105 of title 5.
``(2) NEW AUTOMOBILE.--The term `new automobile', with respect to the fleet of automobiles of an executive agency, means an automobile that is leased for at least 60 consecutive days or bought, by or for the Executive agency, after September 30, 2008. The term does not include any vehicle designed for combat-related missions, law enforcement work, or emergency rescue work.''.
(b) Report.--The Administrator of the General Services Administration shall develop a report describing and evaluating the efforts of the heads of the Executive agencies to comply with section 32917 of title 49, United States Code, for fiscal year 2009. The Administrator shall submit the report to Congress no later than December 31, 2009.
SEC. 511. INCREASING CONSUMER AWARENESS OF FLEXIBLE FUEL AUTOMOBILES.
Section 32908 of title 49, United States Code, is amended by adding at the end the following:
``(g) Increasing Consumer Awareness of Flexible Fuel Automobiles.--(1) The Secretary of Energy, in consultation with the
[Page: S8184]
Secretary of Transportation, shall prescribe regulations that require the manufacturer of automobiles distributed in interstate commerce for sale in the United States--
``(A) to prominently display a permanent badge or emblem on the quarter panel or tailgate of each such automobile that indicates such vehicle is capable of operating on alternative fuel; and
``(B) to include information in the owner's manual of each such automobile information that describes--
``(i) the capability of the automobile to operate using alternative fuel;
``(ii) the benefits of using alternative fuel, including the renewable nature, and the environmental benefits of using alternative fuel; and
``(C) to contain a fuel tank cap that is clearly labeled to inform consumers that the automobile is capable of operating on alternative fuel.
``(2) The Secretary of Transportation shall collaborate with automobile retailers to develop voluntary methods for providing prospective purchasers of automobiles with information regarding the benefits of using alternative fuel in automobiles, including--
``(A) the renewable nature of alternative fuel; and
``(B) the environmental benefits of using alternative fuel.''.
SEC. 512. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING PROCEDURES.
Beginning in 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 C.F.R. parts 86 and 600) to determine whether changes in the factors used to establish the labeling procedures warrant a revision of that process; and
(2) submit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce that describes the results of the reevaluation process.
SEC. 513. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.
(a) In General.--Chapter 301 of title 49, United States Code, is amended by inserting after section 30123 the following new section:``§30123A. Tire fuel efficiency consumer information
``(a) Rulemaking.--
``(1) IN GENERAL.--Not later than 18 months after the date of enactment of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation shall, after notice and opportunity for comment, promulgate rules establishing a national tire fuel efficiency consumer information program for tires designed for use on motor vehicles to educate consumers about the effect of tires on automobile fuel efficiency.
``(2) ITEMS INCLUDED IN RULE.--The rulemaking shall include--
``(A) a national tire fuel efficiency rating system for motor vehicle tires to assist consumers in making more educated tire purchasing decisions;
``(B) requirements for providing information to consumers, including information at the point of sale and other potential information dissemination methods, including the Internet;
``(C) specifications for test methods for manufacturers to use in assessing and rating tires to avoid variation among test equipment and manufacturers; and
``(D) a national tire maintenance consumer education program including, information on tire inflation pressure, alignment, rotation, and tread wear to maximize fuel efficiency.
``(3) APPLICABILITY.--This section shall not apply to tires excluded from coverage under section 575.104(c)(2) of title 49, Code of Federal Regulations, as in effect on date of enactment of the Ten-in-Ten Fuel Economy Act.
``(b) Consultation.--The Secretary shall consult with the Secretary of Energy and the Administrator of the Environmental Protection Agency on the means of conveying tire fuel efficiency consumer information.
``(c) Report to Congress.--The Secretary shall conduct periodic assessments of the rules promulgated under this section to determine the utility of such rules to consumers, the level of cooperation by industry, and the contribution to national goals pertaining to energy consumption. The Secretary shall transmit periodic reports detailing the findings of such assessments to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce.
``(d) Tire Marking.--The Secretary shall not require permanent labeling of any kind on a tire for the purpose of tire fuel efficiency information.
``(e) Preemption.--When a requirement under this section is in effect, a State or political subdivision of a State may adopt or enforce a law or regulation on tire fuel efficiency consumer information only if the law or regulation is identical to that requirement. Nothing in this section shall be construed to preempt a State or political subdivision of a State from regulating the fuel efficiency of tires not otherwise preempted under this chapter.''.
(b) Enforcement.--Section 30165(a) of title 49, United States Code, is amended by adding at the end the following:
``(4) SECTION 30123a.--Any person who fails to comply with the national tire fuel efficiency consumer information program under section 30123A is liable to the United States Government for a civil penalty of not more than $50,000 for each violation.''.
(c) Conforming Amendment.--The chapter analysis for chapter 301 of title 49, United States Code, is amended by inserting after the item relating to section 30123 the following:
``30123A. Tire fuel efficiency consumer information''.
SEC. 514. ADVANCED BATTERY INITIATIVE.
(a) In General.--The Secretary of Energy, in consultation with the Secretary of Transportation, shall establish and carry out an Advanced Battery Initiative in accordance with this section to support research, development, demonstration, and commercial application of battery technologies.
(b) Industry Alliance.--Not later than 180 days after the date of enactment of this Act, the Secretary shall competitively select an Industry Alliance to represent participants who are private, for-profit firms headquartered in the United States, the primary business of which is the manufacturing of batteries.
(c) Research.--
(1) GRANTS.--The Secretary shall carry out research activities of the Initiative through competitively-awarded grants to--
(A) researchers, including Industry Alliance participants;
(B) small businesses;
(C) National Laboratories; and
(D) institutions of higher education.
(2) INDUSTRY ALLIANCE.--The Secretary shall annually solicit from the Industry Alliance--
(A) comments to identify advanced battery technology and battery systems needs relevant to--
(i) electric drive technology; and
(ii) other applications the Secretary deems appropriate;
(B) an assessment of the progress of research activities of the Initiative; and
(C) assistance in annually updating advanced battery technology and battery systems roadmaps.
(d) Availability to the Public.--The information and roadmaps developed under this section shall be available to the public.
(e) Preference.--In making awards under this subsection, the Secretary shall give preference to participants in the Industry Alliance.
(f) Cost Sharing.--In carrying out this section, the Secretary shall require cost sharing in accordance with section 120(b) of title 23, United States Code.
(g) Authorization of Appropriations.--There are authorized to be appropriated to carry out this section such sums as may be necessary for each of fiscal years 2008 through 2012.
SEC. 515. BIODIESEL STANDARDS.
(a) In General.--Not later than 180 days after the date of enactment of this Act, the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Transportation and the Secretary of Energy, shall promulgate regulations to ensure that all diesel-equivalent fuels derived from renewable biomass that are introduced into interstate commerce are tested and certified to comply with appropriate American Society for Testing and Materials standards.
(b) Definitions.--In this section:
(1) BIODIESEL.--
(A) IN GENERAL.--The term ``biodiesel'' means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet--
(i) the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U.S.C. 7545); and
(ii) the requirements of the American Society of Testing and Materials D6751.
(B) INCLUSIONS.--The term ``biodiesel'' includes esters described in subparagraph (A) derived from--
(i) animal waste, including poultry fat, poultry waste, and other waste material; and
(ii) municipal solid waste, sludge, and oil derived from wastewater or the treatment of wastewater.
(2) BIODIESEL BLEND.--The term ``biodiesel blend'' means a mixture of biodiesel and diesel fuel, including--
(A) a blend of biodiesel and diesel fuel approximately 5 percent of the content of which is biodiesel (commonly known as ``B5''); and
(B) a blend of biodiesel and diesel fuel approximately 20 percent of the content of which is biodiesel (commonly known as ``B20'').
SEC. 516. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.
Section 32912 of title 49, United States Code, is amended by adding at the end thereof the following:
``(e) Use of Civil Penalties.--For fiscal year 2008 and each fiscal year thereafter, from the total amount deposited in the general fund of the Treasury during the preceding fiscal year from fines, penalties, and other funds obtained through enforcement actions conducted pursuant to this section (including funds obtained under consent decrees), the Secretary of the Treasury, subject to the availability of appropriations, shall--
``(1) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which
[Page: S8185]
Amendments Adopted
Stevens Modified Amendment No. 1792 (to Amendment No. 1502), to provide for corporate average fuel economy (CAFEAE6) standards.
Pages S8181-S8206
Reid Amendment No. 1502, in the nature of a substitute.
Page S8166
Bingaman Amendment No. 1639 (to Amendment No.1502), to make certain technical edits to title III.
Page S8206
Bingaman Amendment No. 1677 (to Amendment No.1502), to improve the bill.
Pages S8206-07
Bingaman Amendment No. 1798 (to Amendment No.1502), to make technical amendments.
Pages S8207-08
Bingaman (for Cantwell) Amendment No. 1698 (to Amendment No.1502), to modify the definition of renewable biomass.
Page S8208
Bingaman Modified Amendment No. 1568 (to Amendment No. 1502), to prevent supply disruptions from planned refinery outages.
Page S8208
Bingaman (for Domenici) Amendment No. 1569 (to Amendment No.1502), to provide an alternate sulfur dioxide removal measurement for certain coal gasification project goals.
Pages S8208-09
Bingaman (for Inouye) Modified Amendment No. 1597 (to Amendment No.1502), to propose a study of the adequacy of transportation of domestically-produced renewable fuel by railroads and other modes of transportation.
Page S8209
Bingaman (for Dole/Carper) Amendment No. 1624 (to Amendment No.1502), to expand the scope of the applied research program on energy storage systems to include flow batteries.
Page S8209
Bingaman (for Akaka) Modified Amendment No. 1764 (to Amendment No.1502), to promote the development and use of marine and hydrokinetic renewable energy technologies.
Page S8209
Bingaman (for Boxer) Amendment No. 1799 (to Amendment No.1502), to reduce emissions of carbon dioxide from the Capitol power plant.
Pages S8209-10
Bingaman (for Inhofe) Amendment No. 1602 (to Amendment No.1502), to provide transitional assistance for farmers who plant dedicated energy crops for a local cellulosic refinery.
Page S8210
Bingaman (for Inhofe/Clinton) Amendment No. 1660 (to Amendment No.1502), to modify sections to provide for the use of geothermal heat pumps.
Pages S8210-12
[Page: D872] GPO's PDF
Bingaman (for Murkowski/Stevens) Modified Amendment No. 1513 (to Amendment No.1502), to amend the Alaska Natural Gas Pipeline Act to allow the Federal Coordinator for Alaska Natural Gas Transportation Projects to hire employees more efficiently.
Page S8212
Bingaman (for Voinovich) Amendment No. 1683 (to Amendment No.1502), to implement the Convention on Supplementary Compensation for Nuclear Damage.
Pages S8212-14
Bingaman Modified Amendment No. 1729 (to Amendment No.1502), to provide for the treatment of certain applications and requests.
Page S8214
Bingaman (for Menendez) Amendment No. 1675 (to Amendment No. 1502), to provide for a study on the effect of laws limiting the siting of privately owned electric distribution wires on the development of combined heat and power facilities.
Page S8214
Bingaman (for Burr) Modified Amendment No. 1687 (to Amendment No. 1502), to express the sense of Congress that the Department of Energy should be the lead United States Government agency in charge of formulating and coordinating the national energy security policy of the United States.
Page S8214
Bingaman (for Burr) Amendment No. 1688 (to Amendment No. 1502), to require the President to submit to Congress an annual national energy security strategy report.
Pages S8214-15
Bingaman (for Burr) Amendment No. 1689 (to Amendment No. 1502), to amend the National Security Act of 1947 to add the Secretary of Energy to the National Security Council in recognition of the role energy and energy security issues play in the United States national security.
Page S8215
Bingaman (for Sanders) Modified Amendment No. 1525 (to Amendment No. 1502), to require that not less than 30 percent of the hot water demand for certain new or substantially modified Federal buildings be met through the installation and use of solar hot water heaters.
Page S8215
Bingaman/Domenici Modified Amendment No. 1567 (to Amendment No. 1502), to require the Secretary of Energy to establish a program to evaluate the cost-effectiveness of installing advanced insulation into commercial refrigerated trailers, refrigerators, freezers, and refrigerator-freezers.
Page S8215
Bingaman (for Carper) Amendment No. 1717 (to Amendment No. 1502), to require the Secretary of the Interior, acting through the Director of Minerals Management Service, to conduct a study to assess each offshore wind resource located in the region of the eastern outer Continental Shelf.
Page S8215
Bingaman (for Feingold) Amendment No. 1710 (to Amendment No. 1502), to clarify the purposes of the energy and environmental block grant program.
Page S8215
Bingaman (for Wyden) Modified Amendment No. 1759 (to Amendment No. 1502), to provide for a national assessment of carbon sequestration and methane and nitrous oxide emissions from terrestrial ecosystems.
Pages S8215-16
Bingaman (for Cantwell) Modified Amendment No. 1797 (to Amendment No. 1502), to modernize the electricity grid of the United States by catalyzing the production, use, and integration of technologies capable of communicating and recording valuable information relating to conditions of supply, consumer loads, and system performance.
Pages S8216-17
Bingaman (for Kohl) Modified Amendment No. 1595 (to Amendment No. 1502 ), to provide a set-aside for small automobile manufacturers and component suppliers for awards under the advanced technology vehicles manufacturing incentive program.
Page S8219
Bingaman (for Brown) Modified Amendment No. 1676 (to Amendment No. 1502), to establish a renewable energy innovation partnership program to support the development, demonstration, and deployment of systems and projects relating to renewable energy.
Page S8219
Bingaman (for Hutchison/Cornyn) Modified Amendment No.1679 (to Amendment No. 1502), to require the Secretary of Energy to enter into an arrangement with the National Academy of Sciences to assess the impact of the renewable fuel standard.
Page S8219
Bingaman (for Collins) Modified Amendment No. 1615 (to Amendment No. 1502 ), to provide for the development and coordination of a comprehensive and integrated United States research program that assists the people of the United States and the world to understand, assess, and predict human-induced and natural processes of abrupt climate change.
Page S8219
Bingaman (for Cardin) Modified Amendment No. 1520 (to Amendment No. 1502), to promote the energy independence of the United States.
Pages S8219-20
Bingaman (for Collins) Modified Amendment No. 1700 (to Amendment No. 1502), to provide for research support to facilitate the development of sustainable markets and technologies to produce and use woody biomass and other low-carbon fuels.
Page S8220
Bingaman (for Enzi) Amendment No. 1724 (to Amendment No. 1502), to modify the deadline by which the President is required to approve or disapprove a certain State petition.
Page S8220
[Page: D873] GPO's PDF
Bingaman (for Snowe/Kerry) Amendment No. 1702 (to Amendment No. 1502), to authorize loans for renewable energy systems and energy efficiency projects under the Express Loan Program of the Small Business Administration.
Page S8217
Bingaman (for Kerry/Snowe) Modified Amendment No. 1706 (to Amendment No. 1502), to establish a small business energy efficiency program.
Pages S8217-19
During consideration of this measure today, the Senate also took the following action:
By 38 yeas to 55 nays (Vote No. 222), three-fifths of those Senators duly chosen and sworn, not having voted in the affirmative, Senate rejected the motion to waive section 201 of S. Con. Res. 21, FY08 Congressional Budget Resolution, with respect to Kyl/Lott Modified Amendment No. 1733 (to Amendment No. 1704), to provide a condition precedent for the effective date of the revenue raisers. Subsequently, the pay-as-you-go point of order that the amendment would cause or increase an on-budget deficit for either of the applicable time periods set out in S. Con. Res. 21, was sustained, and the amendment thus fell.
Pages S8166-75
By 57 yeas to 36 nays (Vote No. 223), three-fifths of those Senators duly chosen and sworn, not having voted in the affirmative, Senate rejected the motion to close further debate on Baucus Amendment No. 1704 (to Amendment No. 1502), to amend the Internal Revenue Code of 1986 to provide or energy advancement and investment.
Pages S8175-76
By 61 yeas to 32 nays (Vote No. 224), three-fifths of those Senators duly chosen and sworn, having voted in the affirmative, Senate agreed to the motion to close further debate on Reid Amendment No. 1502, in the nature of a substitute.
Page S8177
By 62 yeas to 32 nays (Vote No. 225), three-fifths of those Senators duly chosen and sworn, having voted in the affirmative, Senate agreed to the motion to close further debate on the bill.
Pages S8220-21
Chair sustained a point of order under Rule XXII, that the following amendments were not germane or were drafted improperly, and the amendments thus fell:
Reid (for Bingaman) Amendment No. 1537 (to Amendment No. 1502), to provide for a renewable portfolio standard.
Page S8166
Klobuchar (for Bingaman) Amendment No. 1573 (to Amendment No. 1537), to provide for a renewable portfolio standard.
Page S8166
Bingaman (for Klobuchar) Amendment No. 1557 (to Amendment No. 1502), to establish a national greenhouse gas registry.
Page S8166
Corker Amendment No. 1608 (to Amendment No. 1502), to allow clean fuels to meet the renewable fuel standard.
Page S8166
Cardin Modified Amendment No. 1520 (to Amendment No. 1502), to promote the energy independence of the United States.
Page S8166
Collins Amendment No. 1615 (to Amendment No. 1502), to provide for the development and coordination of a comprehensive and integrated United States research program that assists the people of the United States and the world to understand, assess, and predict human-induced and natural processes of abrupt climate change.
Page S8166
Baucus Amendment No. 1704 (to Amendment No. 1502), to amend the Internal Revenue Code of 1986 to provide or energy advancement and investment.
Page S8166
Statement of Administration Position on H.R. 6
...
Corporate Average Fuel Economy (CAFE) Standards: As part of the “Twenty in Ten” plan, the
President called for reforming and increasing fuel economy standards for passenger automobiles,
and for making further increases in standards for light trucks that will reduce projected annual
gasoline use by up to 8.5 billion gallons within 10 years. The Administration has several goals:
increased fuel economy, safety, sound economics, and protection of consumer choice. The
Administration appreciates the work of the Commerce Committee on CAFE in pursuit of these
goals. In particular, the Administration appreciates the flexibility provided by the committee,
especially the ability to establish an attribute-based standard, as we have already successfully
done in the context of light trucks and sport utility vehicles.
The Administration believes, however, that numeric fuel economy standards should not be set
arbitrarily by statute, as is done in H.R. 6. Such arbitrary fuel economy targets are inconsistent
with making determinations based on expert analysis, the most current data, safety, and sound
science. The language in H.R. 6 is also overly prescriptive in requiring DOT to consider an
array of difficult-to-quantify benefits in its analysis of cost effectiveness. Such a requirement
adds regulatory uncertainty and would likely subject DOT rulemakings to increased litigation.
The Administration also strongly opposes mandatory standards for medium-duty and heavy-duty
trucks and earmarking of civil penalties for unrelated spending purposes.
...
