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   SA 3850. Mr. REID proposed an amendment to the bill H.R. 6, to move the United States toward greater energy independence and security, to increase the production of clean renewable fuels, to protect consumers, to increase the efficiency of products, buildings, and vehicles, to promote research on and deploy greenhouse gas capture and storage options, and to improve the energy performance of the Federal Government, and for other purposes; as follows:

   In lieu of the matter proposed to be inserted by the amendment of the House to the amendment of the Senate to the text of the bill H.R. 6, insert the following:

   SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy Independence and Security Act of 2007''.

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    (b) Table of Contents.--The table of contents of this Act is as follows:

   Sec..1..Short title; table of contents.

   Sec..2..Definitions.

   Sec..3..Relationship to other law.

   TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY

   Subtitle A--Increased Corporate Average Fuel Economy Standards

   Sec..101..Short title.

   Sec..102..Average fuel economy standards for automobiles and certain other vehicles.

   Sec..103..Definitions.

   Sec..104..Credit trading program.

   Sec..105..Consumer information.

   Sec..106..Continued applicability of existing standards.

   Sec..107..National Academy of Sciences studies.

   Sec..108..National Academy of Sciences study of medium-duty and heavy-duty truck fuel economy.

   Sec..109..Extension of flexible fuel vehicle credit program.

   Sec..110..Periodic review of accuracy of fuel economy labeling procedures.

   Sec..111..Consumer tire information.

   Sec..112..Use of civil penalties for research and development.

   Sec..113..Exemption from separate calculation requirement.

   Subtitle B--Improved Vehicle Technology

   Sec..131..Transportation electrification.

   Sec..132..Domestic manufacturing conversion grant program.

   Sec..133..Inclusion of electric drive in Energy Policy Act of 1992.

   Sec..134..Loan guarantees for fuel-efficient automobile parts manufacturers.

   Sec..135..Advanced battery loan guarantee program.

   Sec..136..Advanced technology vehicles manufacturing incentive program.

   Subtitle C--Federal Vehicle Fleets

   Sec..141..Federal vehicle fleets.

   Sec..142..Federal fleet conservation requirements.

   TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS

   Subtitle A--Renewable Fuel Standard

   Sec..201..Definitions.

   Sec..202..Renewable fuel standard.

   Sec..203..Study of impact of Renewable Fuel Standard.

   Sec..204..Environmental and resource conservation impacts.

   Sec..205..Biomass based diesel and biodiesel labeling.

   Sec..206..Study of credits for use of renewable electricity in electric vehicles.

   Sec..207..Grants for production of advanced biofuels.

   Sec..208..Integrated consideration of water quality in determinations on fuels and fuel additives.

   Sec..209..Anti-backsliding.

   Sec..210..Effective date, savings provision, and transition rules.

   Subtitle B--Biofuels Research and Development

   Sec..221..Biodiesel.

   Sec..222..Biogas.

   Sec..223..Grants for biofuel production research and development in certain States.

   Sec..224..Biorefinery energy efficiency.

   Sec..225..Study of optimization of flexible fueled vehicles to use E-85 fuel.

   Sec..226..Study of engine durability and performance associated with the use of biodiesel.

   Sec..227..Study of optimization of biogas used in natural gas vehicles.

   Sec..228..Algal biomass.

   Sec..229..Biofuels and biorefinery information center.

   Sec..230..Cellulosic ethanol and biofuels research.

   Sec..231..Bioenergy research and development, authorization of appropriation.

   Sec..232..Environmental research and development.

   Sec..233..Bioenergy research centers.

   Sec..234..University based research and development grant program.

   Subtitle C--Biofuels Infrastructure

   Sec..241..Prohibition on franchise agreement restrictions related to renewable fuel infrastructure.

   Sec..242..Renewable fuel dispenser requirements.

   Sec..243..Ethanol pipeline feasibility study.

   Sec..244..Renewable fuel infrastructure grants.

   Sec..245..Study of the adequacy of transportation of domestically-produced renewable fuel by railroads and other modes of transportation.

   Sec..246..Federal fleet fueling centers.

   Sec..247..Standard specifications for biodiesel.

   Sec..248..Biofuels distribution and advanced biofuels infrastructure.

   Subtitle D--Environmental Safeguards

   Sec..251..Waiver for fuel or fuel additives.

   TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND LIGHTING

   Subtitle A--Appliance Energy Efficiency

   Sec..301..External power supply efficiency standards.

   Sec..302..Updating appliance test procedures.

   Sec..303..Residential boilers.

   Sec..304..Furnace fan standard process.

   Sec..305..Improving schedule for standards updating and clarifying State authority.

   Sec..306..Regional standards for furnaces, central air conditioners, and heat pumps.

   Sec..307..Procedure for prescribing new or amended standards.

   Sec..308..Expedited rulemakings.

   Sec..309..Battery chargers.

   Sec..310..Standby mode.

   Sec..311..Energy standards for home appliances.

   Sec..312..Walk-in coolers and walk-in freezers.

   Sec..313..Electric motor efficiency standards.

   Sec..314..Standards for single package vertical air conditioners and heat pumps.

   Sec..315..Improved energy efficiency for appliances and buildings in cold climates.

   Sec..316..Technical corrections.

   Subtitle B--Lighting Energy Efficiency

   Sec..321..Efficient light bulbs.

   Sec..322..Incandescent reflector lamp efficiency standards.

   Sec..323..Public building energy efficient and renewable energy systems.

   Sec..324..Metal halide lamp fixtures.

   Sec..325..Energy efficiency labeling for consumer electronic products.

   TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

   Sec..401..Definitions.

   Subtitle A--Residential Building Efficiency

   Sec..411..Reauthorization of weatherization assistance program.

   Sec..412..Study of renewable energy rebate programs.

   Sec..413..Energy code improvements applicable to manufactured housing.

   Subtitle B--High-Performance Commercial Buildings

   Sec..421..Commercial high-performance green buildings.

   Sec..422..Zero Net Energy Commercial Buildings Initiative.

   Sec..423..Public outreach.

   Subtitle C--High-Performance Federal Buildings

   Sec..431..Energy reduction goals for Federal buildings.

   Sec..432..Management of energy and water efficiency in Federal buildings.

   Sec..433..Federal building energy efficiency performance standards.

   Sec..434..Management of Federal building efficiency .

   Sec..435..Leasing.

   Sec..436..High-performance green Federal buildings.

   Sec..437..Federal green building performance.

   Sec..438..Storm water runoff requirements for Federal development projects.

   Sec..439..Cost-effective technology acceleration program.

   Sec..440..Authorization of appropriations.

   Sec..441..Public building life-cycle costs.

   Subtitle D--Industrial Energy Efficiency

   Sec..451..Industrial energy efficiency.

   Sec..452..Energy-intensive industries program.

   Sec..453..Energy efficiency for data center buildings.

   Subtitle E--Healthy High-Performance Schools

   Sec..461..Healthy high-performance schools.

   Sec..462..Study on indoor environmental quality in schools.

   Subtitle F--Institutional Entities

   Sec..471..Energy sustainability and efficiency grants and loans for institutions.

   Subtitle G--Public and Assisted Housing

   Sec..481..Application of International Energy Conservation Code to public and assisted housing.

   Subtitle H--General Provisions

   Sec..491..Demonstration project.

   Sec..492..Research and development.

   Sec..493..Environmental Protection Agency demonstration grant program for local governments.

   Sec..494..Green Building Advisory Committee.

   Sec..495..Advisory Committee on Energy Efficiency Finance.

   TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

   Subtitle A--United States Capitol Complex

   Sec..501..Capitol complex photovoltaic roof feasibility studies.

   Sec..502..Capitol complex E-85 refueling station.

   Sec..503..Energy and environmental measures in Capitol complex master plan.

   Sec..504..Promoting maximum efficiency in operation of Capitol power plant.

   Sec..505..Capitol power plant carbon dioxide emissions feasibility study and demonstration projects.

   Subtitle B--Energy Savings Performance Contracting

   Sec..511..Authority to enter into contracts; reports.

   Sec..512..Financing flexibility.

   Sec..513..Promoting long-term energy savings performance contracts and verifying savings.

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   Sec..514..Permanent reauthorization.

   Sec..515..Definition of energy savings.

   Sec..516..Retention of savings.

   Sec..517..Training Federal contracting officers to negotiate energy efficiency contracts.

   Sec..518..Study of energy and cost savings in nonbuilding applications.

   Subtitle C--Energy Efficiency in Federal Agencies

   Sec..521..Installation of photovoltaic system at Department of Energy headquarters building.

   Sec..522..Prohibition on incandescent lamps by Coast Guard.

   Sec..523..Standard relating to solar hot water heaters.

   Sec..524..Federally-procured appliances with standby power.

   Sec..525..Federal procurement of energy efficient products.

   Sec..526..Procurement and acquisition of alternative fuels.

   Sec..527..Government efficiency status reports.

   Sec..528..OMB government efficiency reports and scorecards.

   Sec..529..Electricity sector demand response.

   Subtitle D--Energy Efficiency of Public Institutions

   Sec..531..Reauthorization of State energy programs.

   Sec..532..Utility energy efficiency programs.

   Subtitle E--Energy Efficiency and Conservation Block Grants

   Sec..541..Definitions.

   Sec..542..Energy Efficiency and Conservation Block Grant Program.

   Sec..543..Allocation of funds.

   Sec..544..Use of funds.

   Sec..545..Requirements for eligible entities.

   Sec..546..Competitive grants.

   Sec..547..Review and evaluation.

   Sec..548..Funding.

   TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

   Subtitle A--Solar Energy

   Sec..601..Short title.

   Sec..602..Thermal energy storage research and development program.

   Sec..603..Concentrating solar power commercial application studies.

   Sec..604..Solar energy curriculum development and certification grants.

   Sec..605..Daylighting systems and direct solar light pipe technology.

   Sec..606..Solar Air Conditioning Research and Development Program.

   Sec..607..Photovoltaic demonstration program.

   Subtitle B--Geothermal Energy

   Sec..611..Short title.

   Sec..612..Definitions.

   Sec..613..Hydrothermal research and development.

   Sec..614..General geothermal systems research and development.

   Sec..615..Enhanced geothermal systems research and development.

   Sec..616..Geothermal energy production from oil and gas fields and recovery and production of geopressured gas resources.

   Sec..617..Cost sharing and proposal evaluation.

   Sec..618..Center for geothermal technology transfer.

   Sec..619..GeoPowering America.

   Sec..620..Educational pilot program.

   Sec..621..Reports.

   Sec..622..Applicability of other laws.

   Sec..623..Authorization of appropriations.

   Sec..624..International geothermal energy development.

   Sec..625..High cost region geothermal energy grant program.

   Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies

   Sec..631..Short title.

   Sec..632..Definition.

   Sec..633..Marine and hydrokinetic renewable energy research and development.

   Sec..634..National Marine Renewable Energy Research, Development, and Demonstration Centers.

   Sec..635..Applicability of other laws.

   Sec..636..Authorization of appropriations.

   Subtitle D--Energy Storage for Transportation and Electric Power

   Sec..641..Energy storage competitiveness.

   Subtitle E--Miscellaneous Provisions

   Sec..651..Lightweight materials research and development.

   Sec..652..Commercial insulation demonstration program.

   Sec..653..Technical criteria for clean coal power Initiative.

   Sec..654..H-Prize.

   Sec..655..Bright Tomorrow Lighting Prizes.

   Sec..656..Renewable Energy innovation manufacturing partnership.

   TITLE VII--CARBON CAPTURE AND SEQUESTRATION

   Subtitle A--Carbon Capture and Sequestration Research, Development, and Demonstration

   Sec..701..Short title.

   Sec..702..Carbon capture and sequestration research, development, and demonstration program.

   Sec..703..Carbon capture.

   Sec..704..Review of large-scale programs.

   Sec..705..Geologic sequestration training and research.

   Sec..706..Relation to Safe Drinking Water Act.

   Sec..707..Safety research.

   Sec..708..University based research and development grant program.

   Subtitle B--Carbon Capture and Sequestration Assessment and Framework

   Sec..711..Carbon dioxide sequestration capacity assessment.

   Sec..712..Assessment of carbon sequestration and methane and nitrous oxide emissions from ecosystems.

   Sec..713..Carbon dioxide sequestration inventory.

   Sec..714..Framework for geological carbon sequestration on public land.

   TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY

   Subtitle A--Management Improvements

   Sec..801..National media campaign.

   Sec..802..Alaska Natural Gas Pipeline administration.

   Sec..803..Renewable energy deployment.

   Sec..804..Coordination of planned refinery outages.

   Sec..805..Assessment of resources.

   Sec..806..Sense of Congress relating to the use of renewable resources to generate energy.

   Sec..807..Geothermal assessment, exploration information, and priority activities.

   Subtitle B--Prohibitions on Market Manipulation and False Information

   Sec..811..Prohibition on market manipulation.

   Sec..812..Prohibition on false information.

   Sec..813..Enforcement by the Federal Trade Commission.

   Sec..814..Penalties.

   Sec..815..Effect on other laws.

   TITLE IX--INTERNATIONAL ENERGY PROGRAMS

   Sec..901..Definitions.

   Subtitle A--Assistance to Promote Clean and Efficient Energy Technologies in Foreign Countries

   Sec..911..United States assistance for developing countries.

   Sec..912..United States exports and outreach programs for India, China, and other countries.

   Sec..913..United States trade missions to encourage private sector trade and investment.

   Sec..914..Actions by Overseas Private Investment Corporation.

   Sec..915..Actions by United States Trade and Development Agency.

   Sec..916..Deployment of international clean and efficient energy technologies and investment in global energy markets.

   Sec..917..United States-Israel energy cooperation.

   Subtitle B--International Clean Energy Foundation

   Sec..921..Definitions.

   Sec..922..Establishment and management of Foundation.

   Sec..923..Duties of Foundation.

   Sec..924..Annual report.

   Sec..925..Powers of the Foundation; related provisions.

   Sec..926..General personnel authorities.

   Sec..927..Authorization of appropriations.

   Subtitle C--Miscellaneous Provisions

   Sec..931..Energy diplomacy and security within the Department of State.

   Sec..932..National Security Council reorganization.

   Sec..933..Annual national energy security strategy report.

   Sec..934..Convention on Supplementary Compensation for Nuclear Damage contingent cost allocation.

   Sec..935..Transparency in extractive industries resource payments.

   TITLE X--GREEN JOBS

   Sec..1001..Short title.

   Sec..1002..Energy efficiency and renewable energy worker training program.

   TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE

   Subtitle A--Department of Transportation

   Sec..1101..Office of Climate Change and Environment.

   Subtitle B--Railroads

   Sec..1111..Advanced technology locomotive grant pilot program.

   Sec..1112..Capital grants for class II and class III railroads.

   Subtitle C--Marine Transportation

   Sec..1121..Short sea transportation initiative.

   Sec..1122..Short sea shipping eligibility for capital construction fund.

   Sec..1123..Short sea transportation report.

   Subtitle D--Highways

   Sec..1131..Increased Federal share for CMAQ projects.

   Sec..1132..Distribution of rescissions.

   Sec..1133..Sense of Congress regarding use of complete streets design techniques.

   TITLE XII--SMALL BUSINESS ENERGY PROGRAMS

   Sec..1201..Express loans for renewable energy and energy efficiency.

   Sec..1202..Pilot program for reduced 7(a) fees for purchase of energy efficient technologies.

   Sec..1203..Small business energy efficiency.

   Sec..1204..Larger 504 loan limits to help business develop energy efficient technologies and purchases.

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   Sec..1205..Energy saving debentures.

   Sec..1206..Investments in energy saving small businesses.

   Sec..1207..Renewable fuel capital investment company.

   Sec..1208..Study and report.

   TITLE XIII--SMART GRID

   Sec..1301..Statement of policy on modernization of electricity grid.

   Sec..1302..Smart grid system report.

   Sec..1303..Smart grid advisory committee and smart grid task force.

   Sec..1304..Smart grid technology research, development, and demonstration.

   Sec..1305..Smart grid interoperability framework.

   Sec..1306..Federal matching fund for smart grid investment costs.

   Sec..1307..State consideration of smart grid.

   Sec..1308..Study of the effect of private wire laws on the development of combined heat and power facilities.

   Sec..1309..DOE study of security attributes of smart grid systems.

   TITLE XIV--POOL AND SPA SAFETY

   Sec..1401..Short title.

   Sec..1402..Findings.

   Sec..1403..Definitions.

   Sec..1404..Federal swimming pool and spa drain cover standard.

   Sec..1405..State swimming pool safety grant program.

   Sec..1406..Minimum State law requirements.

   Sec..1407..Education program.

   Sec..1408..CPSC report.

   TITLE XV--REVENUE PROVISIONS

   Sec..1500..Amendment of 1986 Code.

   Sec..1501..Extension of additional 0.2 percent FUTA surtax.

   Sec..1502..7-year amortization of geological and geophysical expenditures for certain major integrated oil companies.

   TITLE XVI--EFFECTIVE DATE

   Sec..1601..Effective date.

   SEC. 2. DEFINITIONS.

    In this Act:

    (1) DEPARTMENT.--The term ``Department'' means the Department of Energy.

    (2) INSTITUTION OF HIGHER EDUCATION.--The term ``institution of higher education'' has the meaning given the term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).

    (3) SECRETARY.--The term ``Secretary'' means the Secretary of Energy.

   SEC. 3. RELATIONSHIP TO OTHER LAW.

    Except to the extent expressly provided in this Act or an amendment made by this Act, nothing in this Act or an amendment made by this Act supersedes, limits the authority provided or responsibility conferred by, or authorizes any violation of any provision of law (including a regulation), including any energy or environmental law or regulation.

   SEC. 101. SHORT TITLE.

    This subtitle may be cited as the ``Ten-in-Ten Fuel Economy Act''.

   SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND CERTAIN OTHER VEHICLES.

    (a) Increased Standards.--Section 32902 of title 49, United States Code, is amended--

    (1) in subsection (a)--

    (A) by striking ``Non-Passenger Automobiles.--'' and inserting ``Prescription of Standards by Regulation.--'';

    (B) by striking ``(except passenger automobiles)'' in subsection (a); and

    (C) by striking the last sentence;

    (2) by striking subsection (b) and inserting the following:

    ``(b) Standards for Automobiles and Certain Other Vehicles.--

    ``(1) IN GENERAL.--The Secretary of Transportation, after consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall prescribe separate average fuel economy standards for--

    ``(A) passenger automobiles manufactured by manufacturers in each model year beginning with model year 2011 in accordance with this subsection;

    ``(B) non-passenger automobiles manufactured by manufacturers in each model year beginning with model year 2011 in accordance with this subsection; and

    ``(C) work trucks and commercial medium-duty or heavy-duty on-highway vehicles in accordance with subsection (k).

    ``(2) FUEL ECONOMY STANDARDS FOR AUTOMOBILES.--

    ``(A) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2011 THROUGH 2020.--The Secretary shall prescribe a separate average fuel economy standard for passenger automobiles and a separate average fuel economy standard for non-passenger automobiles for each model year beginning with model year 2011 to achieve a combined fuel economy average for model year 2020 of at least 35 miles per gallon for the total fleet of passenger and non-passenger automobiles manufactured for sale in the United States for that model year.

    ``(B) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2021 THROUGH 2030.--For model years 2021 through 2030, the average fuel economy required to be attained by each fleet of passenger and non-passenger automobiles manufactured for sale in the United States shall be the maximum feasible average fuel economy standard for each fleet for that model year.

    ``(C) PROGRESS TOWARD STANDARD REQUIRED.--In prescribing average fuel economy standards under subparagraph (A), the Secretary shall prescribe annual fuel economy standard increases that increase the applicable average fuel economy standard ratably beginning with model year 2011 and ending with model year 2020.

    ``(3) AUTHORITY OF THE SECRETARY.--The Secretary shall--

    ``(A) prescribe by regulation separate average fuel economy standards for passenger and non-passenger automobiles based on 1 or more vehicle attributes related to fuel economy and express each standard in the form of a mathematical function; and

    ``(B) issue regulations under this title prescribing average fuel economy standards for at least 1, but not more than 5, model years.

    ``(4) MINIMUM STANDARD.--In addition to any standard prescribed pursuant to paragraph (3), each manufacturer shall also meet the minimum standard for domestically manufactured passenger automobiles, which shall be the greater of--

    ``(A) 27.5 miles per gallon; or

    ``(B) 92 percent of the average fuel economy projected by the Secretary for the combined domestic and non-domestic passenger automobile fleets manufactured for sale in the United States by all manufacturers in the model year, which projection shall be published in the Federal Register when the standard for that model year is promulgated in accordance with this section.''; and

    (3) in subsection (c)--

    (A) by striking ``(1) Subject to paragraph (2) of this subsection, the'' and inserting ``The''; and

    (B) by striking paragraph (2).

    (b) Fuel Economy Standard for Commercial Medium-Duty and Heavy-Duty On-Highway Vehicles and Work Trucks.--Section 32902 of title 49, United States Code, is amended by adding at the end the following:

    ``(k) Commercial Medium- and Heavy-Duty On-Highway Vehicles and Work Trucks.--

    ``(1) STUDY.--Not later than 1 year after the National Academy of Sciences publishes the results of its study under section 108 of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall examine the fuel efficiency of commercial medium- and heavy-duty on-highway vehicles and work trucks and determine--

    ``(A) the appropriate test procedures and methodologies for measuring the fuel efficiency of such vehicles and work trucks;

    ``(B) the appropriate metric for measuring and expressing commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency performance, taking into consideration, among other things, the work performed by such on-highway vehicles and work trucks and types of operations in which they are used;

    ``(C) the range of factors, including, without limitation, design, functionality, use, duty cycle, infrastructure, and total overall energy consumption and operating costs that affect commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency; and

    ``(D) such other factors and conditions that could have an impact on a program to improve commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency.

    ``(2) RULEMAKING.--Not later than 24 months after completion of the study required under paragraph (1), the Secretary, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, by regulation, shall determine in a rulemaking proceeding how to implement a commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency improvement program designed to achieve the maximum feasible improvement, and shall adopt and implement appropriate test methods, measurement metrics, fuel economy standards, and compliance and enforcement protocols that are appropriate, cost-effective, and technologically feasible for commercial medium- and heavy-duty on-highway vehicles and work trucks. The Secretary may prescribe separate standards for different classes of vehicles under this subsection.

    ``(3) LEAD-TIME; REGULATORY STABILITY.--The commercial medium- and heavy-duty on-highway vehicle and work truck fuel economy standard adopted pursuant to this subsection shall provide not less than--

    ``(A) 4 full model years of regulatory lead-time; and

    ``(B) 3 full model years of regulatory stability.''.

   SEC. 103. DEFINITIONS.

    (a) In General.--Section 32901(a) of title 49, United States Code, is amended--

    (1) by striking paragraph (3) and inserting the following:

    ``(3) except as provided in section 32908 of this title, `automobile' means a 4-wheeled vehicle that is propelled by fuel, or by alternative fuel, manufactured primarily for use on public streets, roads, and highways and rated at less than 10,000 pounds gross vehicle weight, except--

    ``(A) a vehicle operated only on a rail line;

    ``(B) a vehicle manufactured in different stages by 2 or more manufacturers, if no intermediate or final-stage manufacturer of that vehicle manufactures more than 10,000 multi-stage vehicles per year; or

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    ``(C) a work truck.'';

    (2) by redesignating paragraphs (7) through (16) as paragraphs (8) through (17), respectively;

    (3) by inserting after paragraph (6) the following:

    ``(7) `commercial medium- and heavy-duty on-highway vehicle' means an on-highway vehicle with a gross vehicle weight rating of 10,000 pounds or more.'';

    (4) in paragraph (9)(A), as redesignated, by inserting ``or a mixture of biodiesel and diesel fuel meeting the standard established by the American Society for Testing and Materials or under section 211(u) of the Clean Air Act (42 U.S.C. 7545(u)) for fuel containing 20 percent biodiesel (commonly known as `B20')'' after ``alternative fuel'';

    (5) by redesignating paragraph (17), as redesignated, as paragraph (18);

    (6) by inserting after paragraph (16), as redesignated, the following:

    ``(17) `non-passenger automobile' means an automobile that is not a passenger automobile or a work truck.''; and

    (7) by adding at the end the following:

    ``(19) `work truck' means a vehicle that--

    ``(A) is rated at between 8,500 and 10,000 pounds gross vehicle weight; and

    ``(B) is not a medium-duty passenger vehicle (as defined in section 86.1803-01 of title 40, Code of Federal Regulations, as in effect on the date of the enactment of the Ten-in-Ten Fuel Economy Act).''.

   SEC. 104. CREDIT TRADING PROGRAM.

    (a) In General.--Section 32903 of title 49, United States Code, is amended--

    (1) by striking ``section 32902(b)-(d) of this title'' each place it appears and inserting ``subsections (a) through (d) of section 32902'';

    (2) in subsection (a)(2)--

    (A) by striking ``3 consecutive model years'' and inserting ``5 consecutive model years'';

    (B) by striking ``clause (1) of this subsection,'' and inserting ``paragraph (1)'';

    (3) by redesignating subsection (f) as subsection (h); and

    (4) by inserting after subsection (e) the following:

    ``(f) Credit Trading Among Manufacturers.--

    ``(1) IN GENERAL.--The Secretary of Transportation may establish, by regulation, a fuel economy credit trading program to allow manufacturers whose automobiles exceed the average fuel economy standards prescribed under section 32902 to earn credits to be sold to manufacturers whose automobiles fail to achieve the prescribed standards such that the total oil savings associated with manufacturers that exceed the prescribed standards are preserved when trading credits to manufacturers that fail to achieve the prescribed standards.

    ``(2) LIMITATION.--The trading of credits by a manufacturer to the category of passenger automobiles manufactured domestically is limited to the extent that the fuel economy level of such automobiles shall comply with the requirements of section 32902(b)(4), without regard to any trading of credits from other manufacturers.

    ``(g) Credit Transferring Within a Manufacturer'

    ``(1) IN GENERAL.--The Secretary of Transportation shall establish by regulation a fuel economy credit transferring program to allow any manufacturer whose automobiles exceed any of the average fuel economy standards prescribed under section 32902 to transfer the credits earned under this section and to apply such credits within that manufacturer's fleet to a compliance category of automobiles that fails to achieve the prescribed standards.

    ``(2) YEARS FOR WHICH USED.--Credits transferred under this subsection are available to be used in the same model years that the manufacturer could have applied such credits under subsections (a), (b), (d), and (e), as well as for the model year in which the manufacturer earned such credits.

    ``(3) MAXIMUM INCREASE.--The maximum increase in any compliance category attributable to transferred credits is--

    ``(A) for model years 2011 through 2013, 1.0 mile per gallon;

    ``(B) for model years 2014 through 2017, 1.5 miles per gallon; and

    ``(C) for model year 2018 and subsequent model years, 2.0 miles per gallon.

    ``(4) LIMITATION.--The transfer of credits by a manufacturer to the category of passenger automobiles manufactured domestically is limited to the extent that the fuel economy level of such automobiles shall comply with the requirements under section 32904(b)(4), without regard to any transfer of credits from other categories of automobiles described in paragraph (6)(B).

    ``(5) YEARS AVAILABLE.--A credit may be transferred under this subsection only if it is earned after model year 2010.

    ``(6) DEFINITIONS.--In this subsection:

    ``(A) FLEET.--The term `fleet' means all automobiles manufactured by a manufacturer in a particular model year.

    ``(B) COMPLIANCE CATEGORY OF AUTOMOBILES.--The term `compliance category of automobiles' means any of the following 3 categories of automobiles for which compliance is separately calculated under this chapter:

    ``(i) Passenger automobiles manufactured domestically.

    ``(ii) Passenger automobiles not manufactured domestically.

    ``(iii) Non-passenger automobiles.''.

    (b) Conforming Amendments.--

    (1) LIMITATIONS.--Section 32902(h) of title 49, United States Code, is amended--

    (A) in paragraph (1), by striking ``and'' at the end;

    (B) in paragraph (2), by striking the period at the end and inserting ``; and''; and

    (C) by adding at the end the following:

    ``(3) may not consider, when prescribing a fuel economy standard, the trading, transferring, or availability of credits under section 32903.''.

    (2) SEPARATE CALCULATIONS.--Section 32904(b)(1)(B) is amended by striking ``chapter.'' and inserting ``chapter, except for the purposes of section 32903.''.

   SEC. 105. CONSUMER INFORMATION.

    Section 32908 of title 49, United States Code, is amended by adding at the end the following:

    ``(g) Consumer Information.--

    ``(1) PROGRAM.--The Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and implement by rule a program to require manufacturers--

    ``(A) to label new automobiles sold in the United States with--

    ``(i) information reflecting an automobile's performance on the basis of criteria that the Administrator shall develop, not later than 18 months after the date of the enactment of the Ten-in-Ten Fuel Economy Act, to reflect fuel economy and greenhouse gas and other emissions over the useful life of the automobile;

    ``(ii) a rating system that would make it easy for consumers to compare the fuel economy and greenhouse gas and other emissions of automobiles at the point of purchase, including a designation of automobiles--

    ``(I) with the lowest greenhouse gas emissions over the useful life of the vehicles; and

    ``(II) the highest fuel economy; and

    ``(iii) a permanent and prominent display that an automobile is capable of operating on an alternative fuel; and

    ``(B) to include in the owner's manual for vehicles capable of operating on alternative fuels information that describes that capability and the benefits of using alternative fuels, including the renewable nature and environmental benefits of using alternative fuels.

    ``(2) CONSUMER EDUCATION.--

    ``(A) IN GENERAL.--The Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and implement by rule a consumer education program to improve consumer understanding of automobile performance described in paragraph (1)(A)(i) and to inform consumers of the benefits of using alternative fuel in automobiles and the location of stations with alternative fuel capacity.

    ``(B) FUEL SAVINGS EDUCATION CAMPAIGN.--The Secretary of Transportation shall establish a consumer education campaign on the fuel savings that would be recognized from the purchase of vehicles equipped with thermal management technologies, including energy efficient air conditioning systems and glass.

    ``(3) FUEL TANK LABELS FOR ALTERNATIVE FUEL AUTOMOBILES.--The Secretary of Transportation shall by rule require a label to be attached to the fuel compartment of vehicles capable of operating on alternative fuels, with the form of alternative fuel stated on the label. A label attached in compliance with the requirements of section 32905(h) is deemed to meet the requirements of this paragraph.

    ``(4) RULEMAKING DEADLINE.--The Secretary of Transportation shall issue a final rule under this subsection not later than 42 months after the date of the enactment of the Ten-in-Ten Fuel Economy Act.''.

   SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS.

    Nothing in this subtitle, or the amendments made by this subtitle, shall be construed to affect the application of section 32902 of title 49, United States Code, to passenger automobiles or non-passenger automobiles manufactured before model year 2011.

   SEC. 107. 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 subtitle.

    (b) Report.--The Academy shall submit the report to the Secretary, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Energy and Commerce of the House of Representatives, with its findings and recommendations

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    (c) Quinquennial Updates.--After submitting the initial report, the Academy shall update the report at 5 year intervals thereafter through 2025.

   SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY AND HEAVY-DUTY TRUCK FUEL ECONOMY.

    (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 medium-duty and heavy-duty truck fuel economy standards, including--

    (1) an assessment of technologies and costs to evaluate fuel economy for medium-duty and heavy-duty trucks;

    (2) an analysis of existing and potential technologies that may be used practically to improve medium-duty and heavy-duty truck fuel economy;

    (3) an analysis of how such technologies may be practically integrated into the medium-duty and heavy-duty truck manufacturing process;

    (4) an assessment of how such technologies may be used to meet fuel economy standards to be prescribed under section 32902(k) of title 49, United States Code, as amended by this subtitle; and

    (5) associated costs and other impacts on the operation of medium-duty and heavy-duty trucks, including congestion.

    (b) Report.--The Academy shall submit the report to the Secretary, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Energy and Commerce of the House of Representatives, with its findings and recommendations not later than 1 year after the date on which the Secretary executes the agreement with the Academy.

   SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.

    (a) In General.--Section 32906 of title 49, United States Code, is amended to read as follows:``§32906. Maximum fuel economy increase for alternative fuel automobiles

    ``(a) In General.--For each of model years 1993 through 2019 for each category of automobile (except an electric automobile), the maximum increase in average fuel economy for a manufacturer attributable to dual fueled automobiles is--

    ``(1) 1.2 miles a gallon for each of model years 1993 through 2014;

    ``(2) 1.0 miles per gallon for model year 2015;

    ``(3) 0.8 miles per gallon for model year 2016;

    ``(4) 0.6 miles per gallon for model year 2017;

    ``(5) 0.4 miles per gallon for model year 2018;

    ``(6) 0.2 miles per gallon for model year 2019; and

    ``(7) 0 miles per gallon for model years after 2019.

    ``(b) Calculation.--In applying subsection (a), the Administrator of the Environmental Protection Agency shall determine the increase in a manufacturer's average fuel economy attributable to dual fueled automobiles by subtracting from the manufacturer's average fuel economy calculated under section 32905(e) the number equal to what the manufacturer's average fuel economy would be if it were calculated by the formula under section 32904(a)(1) by including as the denominator for each model of dual fueled automobiles the fuel economy when the automobiles are operated on gasoline or diesel fuel.''.

    (b) Conforming Amendments.--Section 32905 of title 49, United States Code, is amended--

    (1) in subsection (b), by striking ``1993-2010,'' and inserting ``1993 through 2019,'';

    (2) in subsection (d), by striking ``1993-2010,'' and inserting ``1993 through 2019,'';

    (3) by striking subsections (f) and (g); and

    (4) by redesignating subsection (h) as subsection (f).

    (c) B20 Biodiesel Flexible Fuel Credit.--Section 32905(b)(2) of title 49, United States Code, is amended to read as follows:

    ``(2) .5 divided by the fuel economy--

    ``(A) measured under subsection (a) when operating the model on alternative fuel; or

    ``(B) measured based on the fuel content of B20 when operating the model on B20, which is deemed to contain 0.15 gallon of fuel.''.

   SEC. 110. 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 Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives that describes the results of the reevaluation process.

   SEC. 111. CONSUMER TIRE INFORMATION.

    (a) In General.--Chapter 323 of title 49, United States Code, is amended by inserting after section 32304 the following:``§32304A. Consumer tire information

    ``(a) Rulemaking.--

    ``(1) IN GENERAL.--Not later than 24 months after the date of enactment of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation shall, after notice and opportunity for comment, promulgate rules establishing a national tire fuel efficiency consumer information program for replacement tires designed for use on motor vehicles to educate consumers about the effect of tires on automobile fuel efficiency, safety, and durability.

    ``(2) ITEMS INCLUDED IN RULE.--The rulemaking shall include--

    ``(A) a national tire fuel efficiency rating system for motor vehicle replacement tires to assist consumers in making more educated tire purchasing decisions;

    ``(B) requirements for providing information to consumers, including information at the point of sale and other potential information dissemination methods, including the Internet;

    ``(C) specifications for test methods for manufacturers to use in assessing and rating tires to avoid variation among test equipment and manufacturers; and

    ``(D) a national tire maintenance consumer education program including, information on tire inflation pressure, alignment, rotation, and tread wear to maximize fuel efficiency, safety, and durability of replacement tires.

    ``(3) APPLICABILITY.--This section shall apply only to replacement tires covered under section 575.104(c) of title 49, Code of Federal Regulations, in effect on the date of the enactment of the Ten-in-Ten Fuel Economy Act.

    ``(b) Consultation.--The Secretary shall consult with the Secretary of Energy and the Administrator of the Environmental Protection Agency on the means of conveying tire fuel efficiency consumer information.

    ``(c) Report to Congress.--The Secretary shall conduct periodic assessments of the rules promulgated under this section to determine the utility of such rules to consumers, the level of cooperation by industry, and the contribution to national goals pertaining to energy consumption. The Secretary shall transmit periodic reports detailing the findings of such assessments to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce.

    ``(d) Tire Marking.--The Secretary shall not require permanent labeling of any kind on a tire for the purpose of tire fuel efficiency information.

    ``(e) Application With State and Local Laws and Regulations.--Nothing in this section prohibits a State or political subdivision thereof from enforcing a law or regulation on tire fuel efficiency consumer information that was in effect on January 1, 2006. After a requirement promulgated under this section is in effect, a State or political subdivision thereof may adopt or enforce a law or regulation on tire fuel efficiency consumer information enacted or promulgated after January 1, 2006, if the requirements of that law or regulation are identical to the requirement promulgated under this section. Nothing in this section shall be construed to preempt a State or political subdivision thereof from regulating the fuel efficiency of tires (including establishing testing methods for determining compliance with such standards) not otherwise preempted under this chapter.''.

    (b) Enforcement.--Section 32308 of title 49, United States Code, is amended--

    (1) by redesignating subsections (c) and (d) as subsections (d)and (e), respectively; and

    (2) by inserting after subsection (b) the following:

    ``(c) Section 32304A.--Any person who fails to comply with the national tire fuel efficiency information program under section 32304A is liable to the United States Government for a civil penalty of not more than $50,000 for each violation.''.

    (c) Conforming Amendment.--The chapter analysis for chapter 323 of title 49, United States Code, is amended by inserting after the item relating to section 32304 the following:

   ``32304A. Consumer tire information''.

   SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.

    Section 32912 of title 49, United States Code, is amended by adding at the end the following:

    ``(e) Use of Civil Penalties.--For fiscal year 2008 and each fiscal year thereafter, from the total amount deposited in the general fund of the Treasury during the preceding fiscal year from fines, penalties, and other funds obtained through enforcement actions conducted pursuant to this section (including funds obtained under consent decrees), the Secretary of the Treasury, subject to the availability of appropriations, shall--

    ``(1) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which shall be used by the Secretary to support rulemaking under this chapter; and

    ``(2) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which shall be used by the Secretary to carry out a program to make grants to manufacturers for retooling, reequipping, or expanding existing manufacturing facilities in the United States to produce advanced technology vehicles and components.''.

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   SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.

    (a) Repeal.--Paragraphs (6), (7), and (8) of section 32904(b) of title 49, United States Code, are repealed.

    (b) Effect of Repeal on Existing Exemptions.--Any exemption granted under section 32904(b)(6) of title 49, United States Code, prior to the date of the enactment of this Act shall remain in effect subject to its terms through model year 2013.

    (c) Accrual and Use of Credits.--Any manufacturer holding an exemption under section 32904(b)(6) of title 49, United States Code, prior to the date of the enactment of this Act may accrue and use credits under sections 32903 and 32905 of such title begining with model year 2011.

   SEC. 131. TRANSPORTATION ELECTRIFICATION.

    (a) Definitions.--In this section:

    (1) ADMINISTRATOR.--The term ``Administrator'' means the Administrator of the Environmental Protection Agency.

    (2) BATTERY.--The term ``battery'' means an electrochemical energy storage system powered directly by electrical current.

    (3) ELECTRIC TRANSPORTATION TECHNOLOGY.--The term ``electric transportation technology'' means--

    (A) technology used in vehicles that use an electric motor for all or part of the motive power of the vehicles, including battery electric, hybrid electric, plug-in hybrid electric, fuel cell, and plug-in fuel cell vehicles, or rail transportation; or

    (B) equipment relating to transportation or mobile sources of air pollution that use an electric motor to replace an internal combustion engine for all or part of the work of the equipment, including--

    (i) corded electric equipment linked to transportation or mobile sources of air pollution; and

    (ii) electrification technologies at airports, ports, truck stops, and material-handling facilities.

    (4) NONROAD VEHICLE.--The term ``nonroad vehicle'' means a vehicle--

    (A) powered--

    (i) by a nonroad engine, as that term is defined in section 216 of the Clean Air Act (42 U.S.C. 7550); or

    (ii) fully or partially by an electric motor powered by a fuel cell, a battery, or an off-board source of electricity; and

    (B) that is not a motor vehicle or a vehicle used solely for competition.

    (5) PLUG-IN ELECTRIC DRIVE VEHICLE.--The term ``plug-in electric drive vehicle'' means a vehicle that--

    (A) draws motive power from a battery with a capacity of at least 4 kilowatt-hours;

    (B) can be recharged from an external source of electricity for motive power; and

    (C) is a light-, medium-, or heavy-duty motor vehicle or nonroad vehicle (as those terms are defined in section 216 of the Clean Air Act (42 U.S.C. 7550)).

    (6) QUALIFIED ELECTRIC TRANSPORTATION PROJECT.--The term ``qualified electric transportation project'' means an electric transportation technology project that would significantly reduce emissions of criteria pollutants, greenhouse gas emissions, and petroleum, including--

    (A) shipside or shoreside electrification for vessels;

    (B) truck-stop electrification;

    (C) electric truck refrigeration units;

    (D) battery powered auxiliary power units for trucks;

    (E) electric airport ground support equipment;

    (F) electric material and cargo handling equipment;

    (G) electric or dual-mode electric rail;

    (H) any distribution upgrades needed to supply electricity to the project; and

    (I) any ancillary infrastructure, including panel upgrades, battery chargers, in-situ transformers, and trenching.

    (b) Plug-in Electric Drive Vehicle Program.--

    (1) ESTABLISHMENT.--The Secretary shall establish a competitive program to provide grants on a cost-shared basis to State governments, local governments, metropolitan transportation authorities, air pollution control districts, private or nonprofit entities, or combinations of those governments, authorities, districts, and entities, to carry out 1 or more projects to encourage the use of plug-in electric drive vehicles or other emerging electric vehicle technologies, as determined by the Secretary.

    (2) ADMINISTRATION.--The Secretary shall, in consultation with the Secretary of Transportation and the Administrator, establish requirements for applications for grants under this section, including reporting of data to be summarized for dissemination to grantees and the public, including safety, vehicle, and component performance, and vehicle and component life cycle costs.

    (3) PRIORITY.--In making awards under this subsection, the Secretary shall--

    (A) give priority consideration to applications that--

    (i) encourage early widespread use of vehicles described in paragraph (1); and

    (ii) are likely to make a significant contribution to the advancement of the production of the vehicles in the United States; and

    (B) ensure, to the maximum extent practicable, that the program established under this subsection includes a variety of applications, manufacturers, and end-uses.

    (4) REPORTING.--The Secretary shall require a grant recipient under this subsection to submit to the Secretary, on an annual basis, data relating to safety, vehicle performance, life cycle costs, and emissions of vehicles demonstrated under the grant, including emissions of greenhouse gases.

    (5) COST SHARING.--Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a grant made under this subsection.

    (6) AUTHORIZATION OF APPROPRIATIONS.--There is authorized to be appropriated to carry out this subsection $90,000,000 for each of fiscal years 2008 through 2012, of which not less than 1/3 of the total amount appropriated shall be available each fiscal year to make grants to local and municipal governments.

    (c) Near-Term Transportation Sector Electrification Program.--

    (1) IN GENERAL.--Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the Secretary of Transportation and the Administrator, shall establish a program to provide grants for the conduct of qualified electric transportation projects.

    (2) PRIORITY.--In providing grants under this subsection, the Secretary shall give priority to large-scale projects and large-scale aggregators of projects.

    (3) COST SHARING.--Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a grant made under this subsection.

    (4) AUTHORIZATION OF APPROPRIATIONS.--There is authorized to be appropriated to carry out this subsection $95,000,000 for each of fiscal years 2008 through 2013.

    (d) Education Program.--

    (1) IN GENERAL.--The Secretary shall develop a nationwide electric drive transportation technology education program under which the Secretary shall provide--

    (A) teaching materials to secondary schools and high schools; and

    (B) assistance for programs relating to electric drive system and component engineering to institutions of higher education.

    (2) ELECTRIC VEHICLE COMPETITION.--The program established under paragraph (1) shall include a plug-in hybrid electric vehicle competition for institutions of higher education, which shall be known as the ``Dr. Andrew Frank Plug-In Electric Vehicle Competition''.

    (3) ENGINEERS.--In carrying out the program established under paragraph (1), the Secretary shall provide financial assistance to institutions of higher education to create new, or support existing, degree programs to ensure the availability of trained electrical and mechanical engineers with the skills necessary for the advancement of--

    (A) plug-in electric drive vehicles; and

    (B) other forms of electric drive transportation technology vehicles.

    (4) AUTHORIZATION OF APPROPRIATIONS.--There are authorized to be appropriated such sums as may be necessary to carry out this subsection.

   SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

    Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is amended to read as follows:

   ``SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

    ``(a) Program.--

    ``(1) IN GENERAL.--The Secretary shall establish a program to encourage domestic production and sales of efficient hybrid and advanced diesel vehicles and components of those vehicles.

    ``(2) INCLUSIONS.--The program shall include grants to automobile manufacturers and suppliers and hybrid component manufacturers to encourage domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and advanced diesel vehicles.

    ``(3) PRIORITY.--Priority shall be given to the refurbishment or retooling of manufacturing facilities that have recently ceased operation or will cease operation in the near future.

    ``(b) Coordination With State and Local Programs.--The Secretary may coordinate implementation of this section with State and local programs designed to accomplish similar goals, including the retention and retraining of skilled workers from the manufacturing facilities, including by establishing matching grant arrangements.

    ``(c) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary such sums as may be necessary to carry out this section.''.

   SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is amended--

    (1) by redesignating subsections (a) through (d) as subsections (b) through (e), respectively;

    (2) by inserting before subsection (b) the following:

    ``(a) Definitions.--In this section:

    ``(1) FUEL CELL ELECTRIC VEHICLE.--The term `fuel cell electric vehicle' means an on-road or nonroad vehicle that uses a fuel cell (as defined in section 803 of the Spark M. Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152)).

    ``(2) HYBRID ELECTRIC VEHICLE.--The term `hybrid electric vehicle' means a new qualified hybrid motor vehicle (as defined in section 30B(d)(3) of the Internal Revenue Code of 1986).

    ``(3) MEDIUM- OR HEAVY-DUTY ELECTRIC VEHICLE.--The term `medium- or heavy-duty electric vehicle' means an electric, hybrid electric, or plug-in hybrid electric vehicle with a gross vehicle weight of more than 8,501 pounds.

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    ``(4) NEIGHBORHOOD ELECTRIC VEHICLE.--The term `neighborhood electric vehicle' means a 4-wheeled on-road or nonroad vehicle that--

    ``(A) has a top attainable speed in 1 mile of more than 20 mph and not more than 25 mph on a paved level surface; and

    ``(B) is propelled by an electric motor and on-board, rechargeable energy storage system that is rechargeable using an off-board source of electricity.

    ``(5) PLUG-IN ELECTRIC DRIVE VEHICLE.--The term `plug-in electric drive vehicle' means a vehicle that--

    ``(A) draws motive power from a battery with a capacity of at least 4 kilowatt-hours;

    ``(B) can be recharged from an external source of electricity for motive power; and

    ``(C) is a light-, medium-, or heavy duty motor vehicle or nonroad vehicle (as those terms are defined in section 216 of the Clean Air Act (42 U.S.C. 7550).'';

    (3) in subsection (b) (as redesignated by paragraph (1))--

    (A) by striking ``The Secretary'' and inserting the following:

    ``(1) ALLOCATION.--The Secretary''; and

    (B) by adding at the end the following:

    ``(2) ELECTRIC VEHICLES.--Not later than January 31, 2009, the Secretary shall--

    ``(A) allocate credit in an amount to be determined by the Secretary for--

    ``(i) acquisition of--

    ``(I) a hybrid electric vehicle;

    ``(II) a plug-in electric drive vehicle;

    ``(III) a fuel cell electric vehicle;

    ``(IV) a neighborhood electric vehicle; or

    ``(V) a medium- or heavy-duty electric vehicle; and

    ``(ii) investment in qualified alternative fuel infrastructure or nonroad equipment, as determined by the Secretary; and

    ``(B) allocate more than 1, but not to exceed 5, credits for investment in an emerging technology relating to any vehicle described in subparagraph (A) to encourage--

    ``(i) a reduction in petroleum demand;

    ``(ii) technological advancement; and

    ``(iii) a reduction in vehicle emissions.'';

    (4) in subsection (c) (as redesignated by paragraph (1)), by striking ``subsection (a)'' and inserting ``subsection (b)''; and

    (5) by adding at the end the following:

    ``(f) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2013.''.

   SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS MANUFACTURERS.

    (a) In General.--Section 712(a)(2) of the Energy Policy Act of 2005 (42 U.S.C. 16062(a)(2)) (as amended by section 132) is amended by inserting ``and loan guarantees under section 1703'' after ``grants''.

    (b) Conforming Amendment.--Section 1703(b) of the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by striking paragraph (8) and inserting the following:

    ``(8) Production facilities for the manufacture of fuel efficient vehicles or parts of those vehicles, including electric drive vehicles and advanced diesel vehicles.''.

   SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.

    (a) Establishment of Program.--The Secretary shall establish a program to provide guarantees of loans by private institutions for the construction of facilities for the manufacture of advanced vehicle batteries and battery systems that are developed and produced in the United States, including advanced lithium ion batteries and hybrid electrical system and component manufacturers and software designers.

    (b) Requirements.--The Secretary may provide a loan guarantee under subsection (a) to an applicant if--

    (1) without a loan guarantee, credit is not available to the applicant under reasonable terms or conditions sufficient to finance the construction of a facility described in subsection (a);

    (2) the prospective earning power of the applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed in accordance with the terms of the loan; and

    (3) the loan bears interest at a rate determined by the Secretary to be reasonable, taking into account the current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan.

    (c) Criteria.--In selecting recipients of loan guarantees from among applicants, the Secretary shall give preference to proposals that--

    (1) meet all applicable Federal and State permitting requirements;

    (2) are most likely to be successful; and

    (3) are located in local markets that have the greatest need for the facility.

    (d) Maturity.--A loan guaranteed under subsection (a) shall have a maturity of not more than 20 years.

    (e) Terms and Conditions.--The loan agreement for a loan guaranteed under subsection (a) shall provide that no provision of the loan agreement may be amended or waived without the consent of the Secretary.

    (f) Assurance of Repayment.--The Secretary shall require that an applicant for a loan guarantee under subsection (a) provide an assurance of repayment in the form of a performance bond, insurance, collateral, or other means acceptable to the Secretary in an amount equal to not less than 20 percent of the amount of the loan.

    (g) Guarantee Fee.--The recipient of a loan guarantee under subsection (a) shall pay the Secretary an amount determined by the Secretary to be sufficient to cover the administrative costs of the Secretary relating to the loan guarantee.

    (h) Full Faith and Credit.--The full faith and credit of the United States is pledged to the payment of all guarantees made under this section. Any such guarantee made by the Secretary shall be conclusive evidence of the eligibility of the loan for the guarantee with respect to principal and interest. The validity of the guarantee shall be incontestable in the hands of a holder of the guaranteed loan.

    (i) Reports.--Until each guaranteed loan under this section has been repaid in full, the Secretary shall annually submit to Congress a report on the activities of the Secretary under this section.

    (j) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section.

    (k) Termination of Authority.--The authority of the Secretary to issue a loan guarantee under subsection (a) terminates on the date that is 10 years after the date of enactment of this Act.

   SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.

    (a) Definitions.--In this section:

    (1) ADVANCED TECHNOLOGY VEHICLE.--The term ``advanced technology vehicle'' means a light duty vehicle that meets--

    (A) the Bin 5 Tier II emission standard established in regulations issued by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)), or a lower-numbered Bin emission standard;

    (B) any new emission standard in effect for fine particulate matter prescribed by the Administrator under that Act (42 U.S.C. 7401 et seq.); and

    (C) at least 125 percent of the average base year combined fuel economy for vehicles with substantially similar attributes.

    (2) COMBINED FUEL ECONOMY.--The term ``combined fuel economy'' means--

    (A) the combined city/highway miles per gallon values, as reported in accordance with section 32904 of title 49, United States Code; and

    (B) in the case of an electric drive vehicle with the ability to recharge from an off-board source, the reported mileage, as determined in a manner consistent with the Society of Automotive Engineers recommended practice for that configuration or a similar practice recommended by the Secretary.

    (3) ENGINEERING INTEGRATION COSTS.--The term ``engineering integration costs'' includes the cost of engineering tasks relating to--

    (A) incorporating qualifying components into the design of advanced technology vehicles; and

    (B) designing tooling and equipment and developing manufacturing processes and material suppliers for production facilities that produce qualifying components or advanced technology vehicles.

    (4) QUALIFYING COMPONENTS.--The term ``qualifying components'' means components that the Secretary determines to be--

    (A) designed for advanced technology vehicles; and

    (B) installed for the purpose of meeting the performance requirements of advanced technology vehicles.

    (b) Advanced Vehicles Manufacturing Facility.--The Secretary shall provide facility funding awards under this section to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of--

    (1) reequipping, expanding, or establishing a manufacturing facility in the United States to produce--

    (A) qualifying advanced technology vehicles; or

    (B) qualifying components; and

    (2) engineering integration performed in the United States of qualifying vehicles and qualifying components.

    (c) Period of Availability.--An award under subsection (b) shall apply to--

    (1) facilities and equipment placed in service before December 30, 2020; and

    (2) engineering integration costs incurred during the period beginning on the date of enactment of this Act and ending on December 30, 2020.

    (d) Direct Loan Program.--

    (1) IN GENERAL.--Not later than 1 year after the date of enactment of this Act, and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide a total of not more than $25,000,000,000 in loans to eligible individuals and entities (as determined by the Secretary) for the costs of activities described in subsection (b).

    (2) APPLICATION.--An applicant for a loan under this subsection shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a written assurance that--

    (A) all laborers and mechanics employed by contractors or subcontractors during construction, alteration, or repair that is financed, in whole or in part, by a loan under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with sections 3141-3144, 3146, and 3147 of title 40, United States Code; and

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    (B) the Secretary of Labor shall, with respect to the labor standards described in this paragraph, have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and section 3145 of title 40, United States Code.

    (3) SELECTION OF ELIGIBLE PROJECTS.--The Secretary shall select eligible projects to receive loans under this subsection in cases in which, as determined by the Secretary, the award recipient--

    (A) is financially viable without the receipt of additional Federal funding associated with the proposed project;

    (B) will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; and

    (C) has met such other criteria as may be established and published by the Secretary.

    (4) RATES, TERMS, AND REPAYMENT OF LOANS.--A loan provided under this subsection--

    (A) shall have an interest rate that, as of the date on which the loan is made, is equal to the cost of funds to the Department of the Treasury for obligations of comparable maturity;

    (B) shall have a term equal to the lesser of--

    (i) the projected life, in years, of the eligible project to be carried out using funds from the loan, as determined by the Secretary; and

    (ii) 25 years;

    (C) may be subject to a deferral in repayment for not more than 5 years after the date on which the eligible project carried out using funds from the loan first begins operations, as determined by the Secretary; and

    (D) shall be made by the Federal Financing Bank.

    (e) Improvement.--The Secretary shall issue regulations that require that, in order for an automobile manufacturer to be eligible for an award or loan under this section during a particular year, the adjusted average fuel economy of the manufacturer for light duty vehicles produced by the manufacturer during the most recent year for which data are available shall be not less than the average fuel economy for all light duty vehicles of the manufacturer for model year 2005. In order to determine fuel economy baselines for eligibility of a new manufacturer or a manufacturer that has not produced previously produced equivalent vehicles, the Secretary may substitute industry averages.

    (f) Fees.--Administrative costs shall be no more than $100,000 or 10 basis point of the loan.

    (g) Priority.--The Secretary shall, in making awards or loans to those manufacturers that have existing facilities, give priority to those facilities that are oldest or have been in existence for at least 20 years. Such facilities can currently be sitting idle.

    (h) Set Aside for Small Automobile Manufacturers and Component Suppliers.--

    (1) DEFINITION OF COVERED FIRM.--In this subsection, the term ``covered firm'' means a firm that--

    (A) employs less than 500 individuals; and

    (B) manufactures automobiles or components of automobiles.

    (2) SET ASIDE.--Of the amount of funds that are used to provide awards for each fiscal year under subsection (b), the Secretary shall use not less than 10 percent to provide awards to covered firms or consortia led by a covered firm.

    (i) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2012.

   SEC. 141. FEDERAL VEHICLE FLEETS.

    Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is amended--

    (1) by redesignating subsection (f) as subsection (g); and

    (2) by inserting after subsection (e) the following new subsection:

    ``(f) Vehicle Emission Requirements.--

    ``(1) DEFINITIONS.--In this subsection:

    ``(A) FEDERAL AGENCY.--The term `Federal agency' does not include any office of the legislative branch, except that it does include the House of Representatives with respect to an acquisition described in paragraph (2)(C).

    ``(B) MEDIUM DUTY PASSENGER VEHICLE.--The term `medium duty passenger vehicle' has the meaning given that term section 523.2 of title 49 of the Code of Federal Regulations, as in effect on the date of enactment of this paragraph.

    ``(C) Member's REPRESENTATIONAL ALLOWANCE.--The term `Member's Representational Allowance' means the allowance described in section 101(a) of the House of Representatives Administrative Reform Technical Corrections Act (2 U.S.C. 57b(a)).

    ``(2) PROHIBITION.--

    ``(A) IN GENERAL.--Except as provided in subparagraph (B), no Federal agency shall acquire a light duty motor vehicle or medium duty passenger vehicle that is not a low greenhouse gas emitting vehicle.

    ``(B) EXCEPTION.--The prohibition in subparagraph (A) shall not apply to acquisition of a vehicle if the head of the agency certifies in writing, in a separate certification for each individual vehicle purchased, either--

    ``(i) that no low greenhouse gas emitting vehicle is available to meet the functional needs of the agency and details in writing the functional needs that could not be met with a low greenhouse gas emitting vehicle; or

    ``(ii) that the agency has taken specific alternative more cost-effective measures to reduce petroleum consumption that--

    ``(I) have reduced a measured and verified quantity of greenhouse gas emissions equal to or greater than the quantity of greenhouse gas reductions that would have been achieved through acquisition of a low greenhouse gas emitting vehicle over the lifetime of the vehicle; or

    ``(II) will reduce each year a measured and verified quantity of greenhouse gas emissions equal to or greater than the quantity of greenhouse gas reductions that would have been achieved each year through acquisition of a low greenhouse gas emitting vehicle.

    ``(C) SPECIAL RULE FOR VEHICLES PROVIDED BY FUNDS CONTAINED IN MEMBERS'

    ``(3) GUIDANCE.--

    ``(A) IN GENERAL.--Each year, the Administrator of the Environmental Protection Agency shall issue guidance identifying the makes and model numbers of vehicles that are low greenhouse gas emitting vehicles.

    ``(B) CONSIDERATION.--In identifying vehicles under subparagraph (A), the Administrator shall take into account the most stringent standards for vehicle greenhouse gas emissions applicable to and enforceable against motor vehicle manufacturers for vehicles sold anywhere in the United States.

    ``(C) REQUIREMENT.--The Administrator shall not identify any vehicle as a low greenhouse gas emitting vehicle if the vehicle emits greenhouse gases at a higher rate than such standards allow for the manufacturer's fleet average grams per mile of carbon dioxide-equivalent emissions for that class of vehicle, taking into account any emissions allowances and adjustment factors such standards provide.''.

   SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.

    Part J of title III of the Energy Policy and Conservation Act (42 U.S.C. 6374 et seq.) is amended by adding at the end the following:

   ``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.

    ``(a) Mandatory Reduction in Petroleum Consumption.--

    ``(1) IN GENERAL.--Not later than 18 months after the date of enactment of this section, the Secretary shall issue regulations for Federal fleets subject to section 400AA to require that, beginning in fiscal year 2010, each Federal agency shall reduce petroleum consumption and increase alternative fuel consumption each year by an amount necessary to meet the goals described in paragraph (2).

    ``(2) GOALS.--The goals of the requirements under paragraph (1) are that not later than October 1, 2015, and for each year thereafter, each Federal agency shall achieve at least a 20 percent reduction in annual petroleum consumption and a 10 percent increase in annual alternative fuel consumption, as calculated from the baseline established by the Secretary for fiscal year 2005.

    ``(3) MILESTONES.--The Secretary shall include in the regulations described in paragraph (1)--

    ``(A) interim numeric milestones to assess annual agency progress towards accomplishing the goals described in that paragraph; and

    ``(B) a requirement that agencies annually report on progress towards meeting each of the milestones and the 2015 goals.

    ``(b) Plan.--

    ``(1) REQUIREMENT.--

    ``(A) IN GENERAL.--The regulations under subsection (a) shall require each Federal agency to develop a plan, and implement the measures specified in the plan by dates specified in the plan, to meet the required petroleum reduction levels and the alternative fuel consumption increases, including the milestones specified by the Secretary.

    ``(B) INCLUSIONS.--The plan shall--

    ``(i) identify the specific measures the agency will use to meet the requirements of subsection (a)(2); and

    ``(ii) quantify the reductions in petroleum consumption or increases in alternative fuel consumption projected to be achieved by each measure each year.

    ``(2) MEASURES.--The plan may allow an agency to meet the required petroleum reduction level through--

    ``(A) the use of alternative fuels;

    ``(B) the acquisition of vehicles with higher fuel economy, including hybrid vehicles, neighborhood electric vehicles, electric vehicles, and plug-in hybrid vehicles if the vehicles are commercially available;

    ``(C) the substitution of cars for light trucks;

    ``(D) an increase in vehicle load factors;

    ``(E) a decrease in vehicle miles traveled;

    ``(F) a decrease in fleet size; and

    ``(G) other measures.''.

   SEC. 201. DEFINITIONS.

    Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is amended to read as follows:

    ``(1) DEFINITIONS.--In this section:

    ``(A) ADDITIONAL RENEWABLE FUEL.--The term `additional renewable fuel' means fuel that is produced from renewable biomass and

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    ``(B) ADVANCED BIOFUEL.--

    ``(i) IN GENERAL.--The term `advanced biofuel' means renewable fuel, other than ethanol derived from corn starch, that has lifecycle greenhouse gas emissions, as determined by the Administrator, after notice and opportunity for comment, that are at least 50 percent less than baseline lifecycle greenhouse gas emissions.

    ``(ii) INCLUSIONS.--The types of fuels eligible for consideration as `advanced biofuel' may include any of the following:

    ``(I) Ethanol derived from cellulose, hemicellulose, or lignin.

    ``(II) Ethanol derived from sugar or starch (other than corn starch).

    ``(III) Ethanol derived from waste material, including crop residue, other vegetative waste material, animal waste, and food waste and yard waste.

    ``(IV) Biomass-based diesel.

    ``(V) Biogas (including landfill gas and sewage waste treatment gas) produced through the conversion of organic matter from renewable biomass.

    ``(VI) Butanol or other alcohols produced through the conversion of organic matter from renewable biomass.

    ``(VII) Other fuel derived from cellulosic biomass.

    ``(C) BASELINE LIFECYCLE GREENHOUSE GAS EMISSIONS.--The term `baseline lifecycle greenhouse gas emissions' means the average lifecycle greenhouse gas emissions, as determined by the Administrator, after notice and opportunity for comment, for gasoline or diesel (whichever is being replaced by the renewable fuel) sold or distributed as transportation fuel in 2005.

    ``(D) BIOMASS-BASED DIESEL.--The term `biomass-based diesel' means renewable fuel that is biodiesel as defined in section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 13220(f)) and that has lifecycle greenhouse gas emissions, as determined by the Administrator, after notice and opportunity for comment, that are at least 50 percent less than the baseline lifecycle greenhouse gas emissions. Notwithstanding the preceding sentence, renewable fuel derived from co-processing biomass with a petroleum feedstock shall be advanced biofuel if it meets the requirements of subparagraph (B), but is not biomass-based diesel.

    ``(E) CELLULOSIC BIOFUEL.--The term `cellulosic biofuel' means renewable fuel derived from any cellulose, hemicellulose, or lignin that is derived from renewable biomass and that has lifecycle greenhouse gas emissions, as determined by the Administrator, that are at least 60 percent less than the baseline lifecycle greenhouse gas emissions.

    ``(F) CONVENTIONAL BIOFUEL.--The term `conventional biofuel' means renewable fuel that is ethanol derived from corn starch

    ``(G) GREENHOUSE GAS.--The term `greenhouse gas' means carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, sulfur hexafluoride. The Administrator may include any other anthropogenically-emitted gas that is determined by the Administrator, after notice and comment, to contribute to global warming.

    ``(H) LIFECYCLE GREENHOUSE GAS EMISSIONS.--The term `lifecycle greenhouse gas emissions' means the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions such as significant emissions from land use changes), as determined by the Administrator, related to the full fuel lifecycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential.

    ``(I) RENEWABLE BIOMASS.--The term `renewable biomass' means each of the following:

    ``(i) Planted crops and crop residue harvested from agricultural land cleared or cultivated at any time prior to the enactment of this sentence that is either actively managed or fallow, and nonforested.

    ``(ii) Planted trees and tree residue from actively managed tree plantations on non-federal land cleared at any time prior to enactment of this sentence, including land belonging to an Indian tribe or an Indian individual, that is held in trust by the United States or subject to a restriction against alienation imposed by the United States.

    ``(iii) Animal waste material and animal byproducts.

    ``(iv) Slash and pre-commercial thinnings that are from non-federal forestlands, including forestlands belonging to an Indian tribe or an Indian individual, that are held in trust by the United States or subject to a restriction against alienation imposed by the United States, but not forests or forestlands that are ecological communities with a global or State ranking of critically imperiled, imperiled, or rare pursuant to a State Natural Heritage Program, old growth forest, or late successional forest.

    ``(v) Biomass obtained from the immediate vicinity of buildings and other areas regularly occupied by people, or of public infrastructure, at risk from wildfire.

    ``(vi) Algae.

    ``(vii) Separated yard waste or food waste, including recycled cooking and trap grease.

    ``(J) RENEWABLE FUEL.--The term `renewable fuel' means fuel that is produced from renewable biomass and that is used to replace or reduce the quantity of fossil fuel present in a transportation fuel.

    ``(K) SMALL REFINERY.--The term `small refinery' means a refinery for which the average aggregate daily crude oil throughput for a calendar year (as determined by dividing the aggregate throughput for the calendar year by the number of days in the calendar year) does not exceed 75,000 barrels.

    ``(L) TRANSPORTATION FUEL.--The term `transportation fuel' means fuel for use in motor vehicles, motor vehicle engines, nonroad vehicles, or nonroad engines (except for ocean-going vessels).''.

   SEC. 202. RENEWABLE FUEL STANDARD.

    (a) Renewable Fuel Program.--Paragraph (2) of section 211(o) (42 U.S.C. 7545(o)(2)) of the Clean Air Act is amended as follows:

    (1) REGULATIONS.--Clause (i) of subparagraph (A) is amended by adding the following at the end thereof: ``Not later than 1 year after the date of enactment of this sentence, the Administrator shall revise the regulations under this paragraph to ensure that transportation fuel sold or introduced into commerce in the United States (except in noncontiguous States or territories), on an annual average basis, contains at least the applicable volume of renewable fuel, advanced biofuel, cellulosic biofuel, and biomass-based diesel, determined in accordance with subparagraph (B) and, in the case of any such renewable fuel produced from new facilities that commence construction after the date of enactment of this sentence, achieves at least a 20 percent reduction in lifecycle greenhouse gas emissions compared to baseline lifecycle greenhouse gas emissions.''

    (2) APPLICABLE VOLUMES OF RENEWABLE FUEL.--Subparagraph (B) is amended to read as follows:

    ``(B) APPLICABLE VOLUMES.--

    ``(i) CALENDAR YEARS AFTER 2005.--

    ``(I) RENEWABLE FUEL.--For the purpose of subparagraph (A), the applicable volume of renewable fuel for the calendar years 2006 through 2022 shall be determined in accordance with the following table:

   Applicable volume of renewable fuel

   ``Calendar year:

   (in billions of gallons):
2006

   4.0
2007

   4.7
2008

   9.0
2009

   11.1
2010

   12.95
2011

   13.95
2012

   15.2
2013

   16.55
2014

   18.15
2015

   20.5
2016

   22.25
2017

   24.0
2018

   26.0
2019

   28.0
2020

   30.0
2021

   33.0
2022

   36.0

    ``(II) ADVANCED BIOFUEL.--For the purpose of subparagraph (A), of the volume of renewable fuel required under subclause (I), the applicable volume of advanced biofuel for the calendar years 2009 through 2022 shall be determined in accordance with the following table:

   Applicable volume of advanced biofuel

   ``Calendar year:

   (in billions of gallons):
2009

   0.6
2010

   0.95
2011

   1.35
2012

   2.0
2013

   2.75
2014

   3.75
2015

   5.5
2016

   7.25
2017

   9.0
2018

   11.0
2019

   13.0
2020

   15.0
2021

   18.0
2022

   21.0

    ``(III) CELLULOSIC BIOFUEL.--For the purpose of subparagraph (A), of the volume of advanced biofuel required under subclause (II), the applicable volume of cellulosic biofuel for the calendar years 2010 through 2022 shall be determined in accordance with the following table:

   Applicable volume of cellulosic biofuel

   ``Calendar year:

   (in billions of gallons):
2010

   0.1
2011

   0.25
2012

   0.5
2013

   1.0
2014

   1.75
2015

   3.0
2016

   4.25
2017

   5.5
2018

   7.0
2019

   8.5
2020

   10.5
2021

   13.5
2022

   16.0

    ``(IV) BIOMASS-BASED DIESEL.--For the purpose of subparagraph (A), of the volume of advanced biofuel required under subclause (II), the applicable volume of biomass-based diesel for the calendar years 2009 through 2012 shall be determined in accordance with the following table:

   Applicable volume of biomass-based diesel

   ``Calendar year:

   (in billions of gallons):
2009

   0.5

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   0.65
2011

   0.80
2012

   1.0

    ``(ii) OTHER CALENDAR YEARS.--For the purposes of subparagraph (A), the applicable volumes of each fuel specified in the tables in clause (i) for calendar years after the calendar years specified in the tables shall be determined by the Administrator, in coordination with the Secretary of Energy and the Secretary of Agriculture, based on a review of the implementation of the program during calendar years specified in the tables, and an analysis of--

    ``(I) the impact of the production and use of renewable fuels on the environment, including on air quality, climate change, conversion of wet lands, eco-systems, wildlife habitat, water quality, and water supply;

    ``(II) the impact of renewable fuels on the energy security of the United States;

    ``(III) the expected annual rate of future commercial production of renewable fuels, including advanced biofuels in each category (cellulosic biofuel and biomass-based diesel);

    ``(IV) the impact of renewable fuels on the infrastructure of the United States, including deliverability of materials, goods, and products other than renewable fuel, and the sufficiency of infrastructure to deliver and use renewable fuel;

    ``(V) the impact of the use of renewable fuels on the cost to consumers of transportation fuel and on the cost to transport goods; and

    ``(VI) the impact of the use of renewable fuels on other factors, including job creation, the price and supply of agricultural commodities, rural economic development, and food prices.

   The Administrator shall promulgate rules establishing the applicable volumes under this clause no later than 14 months before the first year for which such applicable volume will apply.

    ``(iii) APPLICABLE VOLUME OF ADVANCED BIOFUEL.--For the purpose of making the determinations in clause (ii), for each calendar year, the applicable volume of advanced biofuel shall be at least the same percentage of the applicable volume of renewable fuel as in calendar year 2022.

    ``(iv) APPLICABLE VOLUME OF CELLULOSIC BIOFUEL.--For the purpose of making the determinations in clause (ii), for each calendar year, the applicable volume of cellulosic biofuel established by the Administrator shall be based on the assumption that the Administrator will not need to issue a waiver for such years under paragraph (7)(D).

    ``(v) MINIMUM APPLICABLE VOLUME OF BIOMASS-BASED DIESEL.--For the purpose of making the determinations in clause (ii), the applicable volume of biomass-based diesel shall not be less than the applicable volume listed in clause (i)(IV) for calendar year 2012.''.

    (b) Applicable Percentages.--Paragraph (3) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(3)) is amended as follows:

    (1) In subparagraph (A), by striking ``2011'' and inserting ``2021''.

    (2) In subparagraph (A), by striking ``gasoline'' and inserting ``transportation fuel, biomass-based diesel, and cellulosic biofuel''.

    (3) In subparagraph (B), by striking ``2012'' and inserting ``2021'' in clause (i).

    (4) In subparagraph (B), by striking ``gasoline'' and inserting ``transportation fuel'' in clause (ii)(II).

    (c) Modification of Greenhouse Gas Percentages.--Paragraph (4) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(4)) is amended to read as follows:

    ``(4) MODIFICATION OF GREENHOUSE GAS REDUCTION PERCENTAGES.--

    ``(A) IN GENERAL.--The Administrator may, in the regulations under the last sentence of paragraph (2)(A)(i), adjust the 20 percent, 50 percent, and 60 percent reductions in lifecycle greenhouse gas emissions specified in paragraphs (2)(A)(i)(relating to renewable fuel), (1)(D) (relating to biomass-based diesel), (1)(B)(i)(relating to advanced biofuel), and (1)(E) (relating to cellulosic biofuel) to a lower percentage. For the 50 and 60 percent reductions, the Administrator may make such an adjustment only if he determines that generally such reduction is not commercially feasible for fuels made using a variety of feedstocks, technologies, and processes to meet the applicable reduction.

    ``(B) AMOUNT OF ADJUSTMENT.--In promulgating regulations under this paragraph, the specified 50 percent reduction in greenhouse gas emissions from advanced biofuel and in biomass-based diesel may not be reduced below 40 percent. The specified 20 percent reduction in greenhouse gas emissions from renewable fuel may not be reduced below 10 percent, and the specified 60 percent reduction in greenhouse gas emissions from cellulosic biofuel may not be reduced below 50 percent.

    ``(C) ADJUSTED REDUCTION LEVELS.--An adjustment under this paragraph to a percent less than the specified 20 percent greenhouse gas reduction for renewable fuel shall be the minimum possible adjustment, and the adjusted greenhouse gas reduction shall be established by the Administrator at the maximum achievable level, taking cost in consideration, for natural gas fired corn-based ethanol plants, allowing for the use of a variety of technologies and processes. An adjustment in the 50 or 60 percent greenhouse gas levels shall be the minimum possible adjustment for the fuel or fuels concerned, and the adjusted greenhouse gas reduction shall be established at the maximum achievable level, taking cost in consideration, allowing for the use of a variety of feedstocks, technologies, and processes.

    ``(D) 5-year REVIEW.--Whenever the Administrator makes any adjustment under this paragraph, not later than 5 years thereafter he shall review and revise (based upon the same criteria and standards as required for the initial adjustment) the regulations establishing the adjusted level.

    ``(E) SUBSEQUENT ADJUSTMENTS.--After the Administrator has promulgated a final rule under the last sentence of paragraph (2)(A)(i) with respect to the method of determining lifecycle greenhouse gas emissions, except as provided in subparagraph (D), the Administrator may not adjust the percent greenhouse gas reduction levels unless he determines that there has been a significant change in the analytical methodology used for determining the lifecycle greenhouse gas emissions. If he makes such determination, he may adjust the 20, 50, or 60 percent reduction levels through rulemaking using the criteria and standards set forth in this paragraph.

    ``(F) LIMIT ON UPWARD ADJUSTMENTS.--If, under subparagraph (D) or (E), the Administrator revises a percent level adjusted as provided in subparagraph (A), (B), and (C) to a higher percent, such higher percent may not exceed the applicable percent specified in paragraph (2)(A)(i), (1)(D),(1)(B)(i), or (1)(E).

    ``(G) APPLICABILITY OF ADJUSTMENTS.--If the Administrator adjusts, or revises, a percent level referred to in this paragraph or makes a change in the analytical methodology used for determining the lifecycle greenhouse gas emissions, such adjustment, revision, or change (or any combination thereof) shall only apply to renewable fuel from new facilities that commence construction after the effective date of such adjustment, revision, or change.''.

    (d) Credits for Additional Renewable Fuel.--Paragraph (5) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is amended by adding the following new subparagraph at the end thereof:

    ``(E) CREDITS FOR ADDITIONAL RENEWABLE FUEL.--The Administrator may issue regulations providing (i) for the generation of an appropriate amount of credits by any person that refines, blends, or imports additional renewable fuels specified by the Administrator and (ii) for the use of such credits by the generator, or the transfer of all or a portion of the credits to another person, for the purpose of complying with paragraph (2).''.

    (e) Waivers.--

    (1) IN GENERAL.--Paragraph (7)(A) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is amended by inserting ``, by any person subject to the requirements of this subsection, or by the Administrator on his own motion'' after ``one or more States'' in subparagraph (A) and by striking out ``State'' in subparagraph (B).

    (2) CELLULOSIC BIOFUEL.--Paragraph (7) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding the following at the end thereof:

    ``(D) CELLULOSIC BIOFUEL.--(i) For any calendar year for which the projected volume of cellulosic biofuel production is less than the minimum applicable volume established under paragraph (2)(B), as determined by the Administrator based on the estimate provided under paragraph (3)(A), not later than November 30 of the preceding calendar year, the Administrator shall reduce the applicable volume of cellulosic biofuel required under paragraph (2)(B) to the projected volume available during that calendar year. For any calendar year in which the Administrator makes such a reduction, the Administrator may also reduce the applicable volume of renewable fuel and advanced biofuels requirement established under paragraph (2)(B) by the same or a lesser volume.

    ``(ii) Whenever the Administrator reduces the minimum cellulosic biofuel volume under this subparagraph, the Administrator shall make available for sale cellulosic biofuel credits at the higher of $0.25 per gallon or the amount by which $3.00 per gallon exceeds the average wholesale price of a gallon of gasoline in the United States. Such amounts shall be adjusted for inflation by the Administrator for years after 2008.

    ``(iii) 18 months after date of enactment of this subparagraph, the Administrator shall promulgate regulations to govern the issuance of credits under this subparagraph. The regulations shall set forth the method for determining the exact price of credits in the event of a waiver. The price of such credits shall not be changed more frequently than once each quarter. These regulations shall include such provisions, including limiting the credits' uses and useful life, as the Administrator deems appropriate to assist market liquidity and transparency, to provide appropriate certainty for regulated entities and renewable fuel producers, and to limit any potential misuse of cellulosic biofuel credits to reduce the use of other renewable fuels, and for such other purposes as the Administrator determines will help achieve the goals of this subsection. The regulations shall limit the number of cellulosic biofuel credits for any calendar year to the minimum applicable volume (as reduced under this subparagraph) of cellulosic biofuel for that year.''.

    (3) BIOMASS-BASED DIESEL.--Paragraph (7) of section 211(o) of the Clean Air Act (42

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    ``(E) BIOMASS-BASED DIESEL.--

    ``(i) MARKET EVALUATION.--The Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, shall periodically evaluate the impact of the biomass-based diesel requirements established under this paragraph on the price of diesel fuel.

    ``(ii) WAIVER.--If the Administrator determines that there is a significant renewable feedstock disruption or other market circumstances that would make the price of biomass-based diesel fuel increase significantly, the Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, shall issue an order to reduce, for up to a 60-day period, the quantity of biomass-based diesel required under subparagraph (A) by an appropriate quantity that does not exceed 15 percent of the applicable annual requirement for biomass-based diesel. For any calendar year in which the Administrator makes a reduction under this subparagraph, the Administrator may also reduce the applicable volume of renewable fuel and advanced biofuels requirement established under paragraph (2)(B) by the same or a lesser volume.

    ``(iii) EXTENSIONS.--If the Administrator determines that the feedstock disruption or circumstances described in clause (ii) is continuing beyond the 60-day period described in clause (ii) or this clause, the Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, may issue an order to reduce, for up to an additional 60-day period, the quantity of biomass-based diesel required under subparagraph (A) by an appropriate quantity that does not exceed an additional 15 percent of the applicable annual requirement for biomass-based diesel.

    ``(F) MODIFICATION OF APPLICABLE VOLUMES.--For any of the tables in paragraph (2)(B), if the Administrator waives--

    ``(i) at least 20 percent of the applicable volume requirement set forth in any such table for 2 consecutive years; or

    ``(ii) at least 50 percent of such volume requirement for a single year,

   the Administrator shall promulgate a rule (within one year after issuing such waiver) that modifies the applicable volumes set forth in the table concerned for all years following the final year to which the waiver applies, except that no such modification in applicable volumes shall be made for any year before 2016. In promulgating such a rule, the Administrator shall comply with the processes, criteria, and standards set forth in paragraph (2)(B)(ii).''.

   SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STANDARD.

    (a) In General.--The Secretary of Energy, in consultation with the Secretary of Agriculture and the Administrator of the Environmental Protection Agency, shall enter into an arrangement with the National Academy of Sciences under which the Academy shall conduct a study to assess the impact of the requirements described in section 211(o) of the Clean Air Act on each industry relating to the production of feed grains, livestock, food, forest products, and energy.

    (b) Participation.--In conducting the study under this section, the National Academy of Sciences shall seek the participation, and consider the input, of--

    (1) producers of feed grains;

    (2) producers of livestock, poultry, and pork products;

    (3) producers of food and food products;

    (4) producers of energy;

    (5) individuals and entities interested in issues relating to conservation, the environment, and nutrition;

    (6) users and consumer of renewable fuels;

    (7) producers and users of biomass feedstocks; and

    (8) land grant universities.

    (c) Considerations.--In conducting the study, the National Academy of Sciences shall consider--

    (1) the likely impact on domestic animal agriculture feedstocks that, in any crop year, are significantly below current projections;

    (2) policy options to alleviate the impact on domestic animal agriculture feedstocks that are significantly below current projections; and

    (3) policy options to maintain regional agricultural and silvicultural capability.

    (d) Components.--The study shall include--

    (1) a description of the conditions under which the requirements described in section 211(o) of the Clean Air Act should be suspended or reduced to prevent adverse impacts to domestic animal agriculture feedstocks described in subsection (c)(2) or regional agricultural and silvicultural capability described in subsection (c)(3); and

    (2) recommendations for the means by which the Federal Government could prevent or minimize adverse economic hardships and impacts.

    (e) Deadline for Completion of Study.--Not later than 18 months after the date of enactment of this Act, the Secretary shall submit to Congress a report that describes the results of the study under this section.

    (f) Periodic Reviews.--Section 211(o) of the Clean Air Act is amended by adding the following at the end thereof:

    ``(11) PERIODIC REVIEWS.--To allow for the appropriate adjustment of the requirements described in subparagraph (B) of paragraph (2), the Administrator shall conduct periodic reviews of--

    ``(A) existing technologies;

    ``(B) the feasibility of achieving compliance with the requirements; and

    ``(C) the impacts of the requirements described in subsection (a)(2) on each individual and entity described in paragraph (2).''.

   SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVATION IMPACTS.

    (a) In General.--Not later than 3 years after the enactment of this section and every 3 years thereafter, the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Agriculture and the Secretary of Energy, shall assess and report to Congress on the impacts to date and likely future impacts of the requirements of section 211(o) of the Clean Air Act on the following:

    (1) Environmental issues, including air quality, effects on hypoxia, pesticides, sediment, nutrient and pathogen levels in waters, acreage and function of waters, and soil environmental quality.

    (2) Resource conservation issues, including soil conservation, water availability, and ecosystem health and biodiversity, including impacts on forests, grasslands, and wetlands.

    (3) The growth and use of cultivated invasive or noxious plants and their impacts on the environment and agriculture.

   In advance of preparing the report required by this subsection, the Administrator may seek the views of the National Academy of Sciences or another appropriate independent research institute. The report shall include the annual volume of imported renewable fuels and feedstocks for renewable fuels, and the environmental impacts outside the United States of producing such fuels and feedstocks. The report required by this subsection shall include recommendations for actions to address any adverse impacts found.

    (b) Effect on Air Quality and Other Environmental Requirements.--Except as provided in section 211(o)(13) of the Clean Air Act, nothing in the amendments made by this title to section 211(o) of the Clean Air Act shall be construed as superseding, or limiting, any more environmentally protective requirement under the Clean Air Act, or under any other provision of State or Federal law or regulation, including any environmental law or regulation.

   SEC. 205. BIOMASS BASED DIESEL AND BIODIESEL LABELING.

    (a) In General.--Each retail diesel fuel pump shall be labeled in a manner that informs consumers of the percent of biomass-based diesel or biodiesel that is contained in the biomass-based diesel blend or biodiesel blend that is offered for sale, as determined by the Federal Trade Commission.

    (b) Labeling Requirements.--Not later than 180 days after the date of enactment of this section, the Federal Trade Commission shall promulgate biodiesel labeling requirements as follows:

    (1) Biomass-based diesel blends or biodiesel blends that contain less than or equal to 5 percent biomass-based diesel or biodiesel by volume and that meet ASTM D975 diesel specifications shall not require any additional labels.

    (2) Biomass based diesel blends or biodiesel blends that contain more than 5 percent biomass-based diesel or biodiesel by volume but not more than 20 percent by volume shall be labeled ``contains biomass-based diesel or biodiesel in quantities between 5 percent and 20 percent''.

    (3) Biomass-based diesel or biodiesel blends that contain more than 20 percent biomass based or biodiesel by volume shall be labeled ``contains more than 20 percent biomass-based diesel or biodiesel''.

    (c) Definitions.--In this section:

    (1) ASTM.--The term ``ASTM'' means the American Society of Testing and Materials.

    (2) BIOMASS-BASED DIESEL.--The term ``biomass-based diesel'' means biodiesel as defined in section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 13220(f)).

    (3) BIODIESEL.--The term ``biodiesel'' means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet--

    (A) the registration requirements for fuels and fuel additives under this section; and

    (B) the requirements of ASTM standard D6751.

    (4) BIOMASS-BASED DIESEL AND BIODIESEL BLENDS.--The terms ``biomass-based diesel blend'' and ``biodiesel blend'' means a blend of ``biomass-based diesel'' or ``biodiesel'' fuel that is blended with petroleum based diesel fuel.

   SEC. 206. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY IN ELECTRIC VEHICLES.

    (a) Definition of Electric Vehicle.--In this section, the term ``electric vehicle'' means an electric motor vehicle (as defined in section 601 of the Energy Policy Act of 1992 (42 U.S.C. 13271)) for which the rechargeable storage battery--

    (1) receives a charge directly from a source of electric current that is external to the vehicle; and

    (2) provides a minimum of 80 percent of the motive power of the vehicle.

    (b) Study.--The Administrator of the Environmental Protection Agency shall conduct a study on the feasibility of issuing credits under the program established under section 211(o) of the Clean Air Act to electric vehicles powered by electricity produced from renewable energy sources.

    (c) Report.--Not later than 18 months after the date of enactment of this Act, the Administrator shall submit to the Committee on Energy and Natural Resources of the United States Senate and the Committee

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    (1) existing programs and studies on the use of renewable electricity as a means of powering electric vehicles; and

    (2) alternatives for--

    (A) designing a pilot program to determine the feasibility of using renewable electricity to power electric vehicles as an adjunct to a renewable fuels mandate;

    (B) allowing the use, under the pilot program designed under subparagraph (A), of electricity generated from nuclear energy as an additional source of supply;

    (C) identifying the source of electricity used to power electric vehicles; and

    (D) equating specific quantities of electricity to quantities of renewable fuel under section 211(o) of the Clean Air Act.

   SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.

    (a) In General.--The Secretary of Energy shall establish a grant program to encourage the production of advanced biofuels.

    (b) Requirements and Priority.--In making grants under this section, the Secretary--

    (1) shall make awards to the proposals for advanced biofuels with the greatest reduction in lifecycle greenhouse gas emissions compared to the comparable motor vehicle fuel lifecycle emissions during calendar year 2005; and

    (2) shall not make an award to a project that does not achieve at least a 80 percent reduction in such lifecycle greenhouse gas emissions.

    (c) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $500,000,000 for the period of fiscal years 2008 through 2015.

   SEC. 208. INTEGRATED CONSIDERATION OF WATER QUALITY IN DETERMINATIONS ON FUELS AND FUEL ADDITIVES.

    Section 211(c)(1) of the Clean Air Act (42 U.S.C. 7545(c)(1)) is amended as follows:

    (1) By striking ``nonro