< Back to S. 357 (110th Congress, 2007–2009)

Text of the Ten-in-Ten Fuel Economy Act

This bill was introduced on May 8, 2007, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 7, 2008 (Reported by Senate Committee).

Source: GPO

S 357 RS

Calendar No. 630

110th CONGRESS

2d Session

S. 357

[Report No. 110-278]

To improve passenger automobile fuel economy and safety, reduce greenhouse gas emissions, reduce dependence on foreign oil, and for other purposes.

IN THE SENATE OF THE UNITED STATES

January 22, 2007

Mrs. FEINSTEIN (for herself, Ms. SNOWE, Mr. INOUYE, Mr. DURBIN, Mr. KERRY, Mrs. BOXER, Mr. NELSON of Florida, Ms. CANTWELL, Mr. LAUTENBERG, Mr. LIEBERMAN, Mr. MENENDEZ, Ms. COLLINS, Mr. REED, Mr. LEAHY, Mr. SANDERS, Mr. DODD, Mr. AKAKA, and Mr. CARDIN) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

April 7, 2008

Reported by Mr. INOUYE, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]


A BILL

To improve passenger automobile fuel economy and safety, reduce greenhouse gas emissions, reduce dependence on foreign oil, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

[Struck out->] SECTION 1. SHORT TITLE; TABLE OF CONTENTS. [<-Struck out]

    [Struck out->] (a) Short Title- This Act may be cited as the `Ten-in-Ten Fuel Economy Act'. [<-Struck out]

    [Struck out->] (b) Table of Contents- The table of contents for this Act is as follows: [<-Struck out]

      [Struck out->] Sec. 1. Short title; table of contents. [<-Struck out]

      [Struck out->] Sec. 2. Average fuel economy standards for passenger automobiles and light trucks. [<-Struck out]

      [Struck out->] Sec. 3. Passenger car program reform. [<-Struck out]

      [Struck out->] Sec. 4. Definition of work truck. [<-Struck out]

      [Struck out->] Sec. 5. Definition of light truck. [<-Struck out]

      [Struck out->] Sec. 6. Ensuring safety of passenger automobiles and light trucks. [<-Struck out]

      [Struck out->] Sec. 7. Onboard fuel economy indicators and devices. [<-Struck out]

      [Struck out->] Sec. 8. Secretary of Transportation to certify benefits. [<-Struck out]

      [Struck out->] Sec. 9. Credit trading program. [<-Struck out]

      [Struck out->] Sec. 10. Report to Congress. [<-Struck out]

      [Struck out->] Sec. 11. Labels for fuel economy and greenhouse gas emissions. [<-Struck out]

[Struck out->] SEC. 2. AVERAGE FUEL ECONOMY STANDARDS FOR PASSENGER AUTOMOBILES AND LIGHT TRUCKS. [<-Struck out]

    [Struck out->] (a) Increased Standards- Section 32902 of title 49, United States Code, is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) by striking `Non-Passenger Automobiles- ' and inserting `Prescription of Standards by Regulation- '; and [<-Struck out]

        [Struck out->] (B) by striking `(except passenger automobiles)' and inserting `(except passenger automobiles and light trucks)'; and [<-Struck out]

      [Struck out->] (2) by amending subsection (b) to read as follows: [<-Struck out]

    [Struck out->]

    `(b) Standards for Passenger Automobiles and Light Trucks- [<-Struck out]

      [Struck out->]

      `(1) IN GENERAL- The Secretary of Transportation, after consultation with the Administrator of the Environmental Protection Agency, shall prescribe average fuel economy standards for passenger automobiles and light trucks manufactured by a manufacturer in each model year beginning with model year 2010 in order to achieve a combined average fuel economy standard for passenger automobiles and light trucks for model year 2019 of at least 35 miles per gallon (or such other number of miles per gallon as the Secretary may prescribe under subsection (c)). [<-Struck out]

      [Struck out->]

      `(2) ELIMINATION OF SUV LOOPHOLE- Beginning not later than model year 2013, the regulations prescribed under this section may not make any distinction between passenger automobiles and light trucks. [<-Struck out]

      [Struck out->]

      `(3) PROGRESS TOWARD STANDARD REQUIRED- In prescribing average fuel economy standards under paragraph (1), the Secretary shall prescribe appropriate annual fuel economy standard increases for passenger automobiles and light trucks that-- [<-Struck out]

        [Struck out->]

        `(A) increase the applicable average fuel economy standard ratably beginning with model year 2010 and ending with model year 2019; [<-Struck out]

        [Struck out->]

        `(B) require that each manufacturer achieve-- [<-Struck out]

          [Struck out->]

          `(i) a fuel economy standard for passenger automobiles manufactured by that manufacturer of at least 29.5 miles per gallon not later than model year 2010; and [<-Struck out]

          [Struck out->]

          `(ii) a fuel economy standard for light trucks manufactured by that manufacturer of at least 23.5 miles per gallon not later than model year 2010. [<-Struck out]

      [Struck out->]

      `(4) FUEL ECONOMY BASELINE FOR PASSENGER AUTOMOBILES- Notwithstanding the maximum feasible average fuel economy level established by regulations prescribed under subsection (c), the minimum fleetwide average fuel economy standard for passenger automobiles manufactured by a manufacturer in a model year for that manufacturer's domestic fleet and foreign fleet, as calculated under section 32904 as in effect before the date of the enactment of the Ten-in-Ten Fuel Economy Act, shall be the greater of-- [<-Struck out]

        [Struck out->]

        `(A) 27.5 miles per gallon; or [<-Struck out]

        [Struck out->]

        `(B) 92 percent of the average fuel economy projected by the Secretary for the combined domestic and foreign fleets manufactured by all manufacturers in that model year. [<-Struck out]

      [Struck out->]

      `(5) DEADLINE FOR REGULATIONS- The Secretary shall promulgate the regulations required by paragraphs (1) and (2) in final form not later than 18 months after the date of the enactment of the Ten-in-Ten Fuel Economy Act.'. [<-Struck out]

[Struck out->] SEC. 3. PASSENGER CAR PROGRAM REFORM. [<-Struck out]

    [Struck out->] Section 32902(c) of title 49, United States Code, is amended to read as follows: [<-Struck out]

    [Struck out->]

    `(c) Amending Passenger Automobile Standards- Not later than 18 months before the beginning of each model year, the Secretary of Transportation may prescribe regulations amending a standard prescribed under subsection (b) for a model year to a level that the Secretary determines to be the maximum feasible average fuel economy level for that model year. Section 553 of title 5 applies to a proceeding to amend any standard prescribed under subsection (b). Any interested person may make an oral presentation and a transcript shall be taken of that presentation. The Secretary may prescribe separate standards for different classes of passenger automobiles.'. [<-Struck out]

[Struck out->] SEC. 4. DEFINITION OF WORK TRUCK. [<-Struck out]

    [Struck out->] (a) Definition of Work Truck- Section 32901(a) of title 49 is amended by adding at the end the following: [<-Struck out]

      [Struck out->]

      `(17) `work truck' means an automobile that the Secretary determines by regulation-- [<-Struck out]

        [Struck out->]

        `(A) is rated at between 8,500 and 10,000 pounds gross vehicle weight; and [<-Struck out]

        [Struck out->]

        `(B) is not a medium-duty passenger vehicle (as defined in section 86.1803-01 of title 40, Code of Federal Regulations).'. [<-Struck out]

    [Struck out->] (b) Deadline for Regulations- The Secretary of Transportation-- [<-Struck out]

      [Struck out->] (1) shall issue proposed regulations implementing the amendment made by subsection (a) not later than 1 year after the date of the enactment of this Act; and [<-Struck out]

      [Struck out->] (2) shall issue final regulations implementing the amendment not later than 18 months after the date of the enactment of this Act. [<-Struck out]

    [Struck out->] (c) Fuel Economy Standards for Work Trucks- The Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, shall prescribe standards to achieve the maximum feasible fuel economy for work trucks (as defined in section 32901(a)(17) of title 49, United States Code) manufactured by a manufacturer in each model year beginning with model year 2013. [<-Struck out]

[Struck out->] SEC. 5. DEFINITION OF LIGHT TRUCK. [<-Struck out]

    [Struck out->] (a) Definition of Light Truck- [<-Struck out]

      [Struck out->] (1) IN GENERAL- Section 32901(a) of title 49, United States Code, is amended by inserting after paragraph (11) the following: [<-Struck out]

      [Struck out->]

      `(11) `light truck' means an automobile that the Secretary determines by regulation-- [<-Struck out]

        [Struck out->]

        `(A) is manufactured primarily for transporting not more than 10 individuals; [<-Struck out]

        [Struck out->]

        `(B) is rated at not more than 10,000 pounds gross vehicle weight; [<-Struck out]

        [Struck out->]

        `(C) is not a passenger automobile; and [<-Struck out]

        [Struck out->]

        `(D) is not a work truck.'. [<-Struck out]

      [Struck out->] (2) DEADLINE FOR REGULATIONS- The Secretary of Transportation-- [<-Struck out]

        [Struck out->] (A) shall issue proposed regulations implementing the amendment made by paragraph (1) not later than 1 year after the date of the enactment of this Act; and [<-Struck out]

        [Struck out->] (B) shall issue final regulations implementing the amendment not later than 18 months after the date of the enactment of this Act. [<-Struck out]

      [Struck out->] (3) EFFECTIVE DATE- Regulations prescribed under paragraph (1) shall apply beginning with model year 2010. [<-Struck out]

    [Struck out->] (b) Applicability of Existing Standards- This section does not affect the application of section 32902 of title 49, United States Code, to passenger automobiles or non-passenger automobiles manufactured before model year 2010. [<-Struck out]

    [Struck out->] (c) Authorization of Appropriations- There are authorized to be appropriated to the Secretary of Transportation $25,000,000 for each of fiscal years 2009 through 2021 to carry out the provisions of chapter 329 of title 49, United States Code. [<-Struck out]

[Struck out->] SEC. 6. ENSURING SAFETY OF PASSENGER AUTOMOBILES AND LIGHT TRUCKS. [<-Struck out]

    [Struck out->] (a) In General- The Secretary of Transportation shall exercise such authority under Federal law as the Secretary may have to ensure that-- [<-Struck out]

      [Struck out->] (1) passenger automobiles and light trucks (as such terms are defined in section 32901 of title 49, United States Code) are safe; [<-Struck out]

      [Struck out->] (2) progress is made in improving the overall safety of passenger automobiles and light trucks; and [<-Struck out]

      [Struck out->] (3) progress is made in maximizing United States employment. [<-Struck out]

    [Struck out->] (b) Vehicle Safety- Subchapter II of chapter 301 of title 49, United States Code, is amended by adding at the end the following: [<-Struck out]

[Struck out->]
`Sec. 30129. Vehicle compatibility and aggressivity reduction standard [<-Struck out]

    [Struck out->]

    `(a) Standards- The Secretary of Transportation shall issue a motor vehicle safety standard to reduce vehicle incompatibility and aggressivity between passenger vehicles and non-passenger vehicles. The standard shall address characteristics necessary to ensure better management of crash forces in multiple vehicle frontal and side impact crashes between different types, sizes, and weights of vehicles with a gross vehicle weight of 10,000 pounds or less in order to decrease occupant deaths and injuries. [<-Struck out]

    [Struck out->]

    `(b) Consumer Information- The Secretary shall develop and implement a public information side and frontal compatibility crash test program with vehicle ratings based on risks to occupants, risks to other motorists, and combined risks by vehicle make and model.'. [<-Struck out]

    [Struck out->] (c) Rulemaking Deadlines- [<-Struck out]

      [Struck out->] (1) RULEMAKING- The Secretary of Transportation shall issue-- [<-Struck out]

        [Struck out->] (A) a notice of a proposed rulemaking under section 30129 of title 49, United States Code, not later than January 1, 2010; and [<-Struck out]

        [Struck out->] (B) a final rule under such section not later than December 31, 2011. [<-Struck out]

      [Struck out->] (2) EFFECTIVE DATE OF REQUIREMENTS- Any requirement imposed under the final rule issued under paragraph (1) shall become fully effective not later than September 1, 2013. [<-Struck out]

    [Struck out->] (d) Conforming Amendment- The chapter analysis for chapter 301 is amended by inserting after the item relating to section 30128 the following: [<-Struck out]

      [Struck out->]

      `30129. Vehicle compatibility and aggressivity reduction standard.'. [<-Struck out]

[Struck out->] SEC. 7. ONBOARD FUEL ECONOMY INDICATORS AND DEVICES. [<-Struck out]

    [Struck out->] (a) In General- Chapter 329 of title 49, United States Code, is amended by adding at the end the following: [<-Struck out]

[Struck out->]
`Sec. 32920. Fuel economy indicators and devices [<-Struck out]

    [Struck out->]

    `(a) In General- The Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, shall prescribe a fuel economy standard for passenger automobiles and light trucks manufactured by a manufacturer in each model year beginning with model year 2014 that requires each such automobile and light truck to be equipped with-- [<-Struck out]

      [Struck out->]

      `(1) an onboard electronic instrument that provides real-time and cumulative fuel economy data; [<-Struck out]

      [Struck out->]

      `(2) an onboard electronic instrument that signals a driver when inadequate tire pressure may be affecting fuel economy; and [<-Struck out]

      [Struck out->]

      `(3) a device that will allow drivers to place the automobile or light truck in a mode that will automatically produce greater fuel economy. [<-Struck out]

    [Struck out->]

    `(b) Exception- Subsection (a) shall not apply to any vehicle that is not subject to an average fuel economy standard under section 32902(b). [<-Struck out]

    [Struck out->]

    `(c) Enforcement- Subchapter IV of chapter 301 of this title shall apply to a fuel economy standard prescribed under subsection (a) to the same extent and in the same manner as if that standard were a motor vehicle safety standard under chapter 301.'. [<-Struck out]

    [Struck out->] (b) Conforming Amendment- The chapter analysis for chapter 329 of title 49, United States Code, is amended by inserting after the item relating to section 32919 the following: [<-Struck out]

      [Struck out->]

      `32920. Fuel economy indicators and devices.'. [<-Struck out]

[Struck out->] SEC. 8. SECRETARY OF TRANSPORTATION TO CERTIFY BENEFITS. [<-Struck out]

    [Struck out->] Beginning with model year 2010, the Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, shall annually determine and certify to Congress the reduction in United States consumption of gasoline and petroleum distillates used for vehicle fuel and the reduction in greenhouse gas emissions during the most recent year that are properly attributable to the implementation of the average fuel economy standards imposed under section 32902 of title 49, United States Code, as a result of the amendments made by this Act. [<-Struck out]

[Struck out->] SEC. 9. CREDIT TRADING PROGRAM. [<-Struck out]

    [Struck out->] Section 32903 of title 49, United States Code, is amended-- [<-Struck out]

      [Struck out->] (1) by striking `passenger' each place it appears; [<-Struck out]

      [Struck out->] (2) by striking `section 32902(b)-(d) of this title' each place it appears and inserting `subsection (a), (c), or (d) of section 32902'; [<-Struck out]

      [Struck out->] (3) in subsection (a)(2), by striking `clause (1) of this subsection' and inserting `paragraph (1)'; and [<-Struck out]

      [Struck out->] (4) by amending subsection (e) to read as follows: [<-Struck out]

    [Struck out->]

    `(e) Credit Trading Among Manufacturers- The Secretary of Transportation may establish, by regulation, a corporate average fuel economy credit trading program to allow manufacturers whose automobiles exceed the average fuel economy standards prescribed under section 32902 to earn credits to be sold to manufacturers whose automobiles fail to achieve the prescribed standards.'. [<-Struck out]

[Struck out->] SEC. 10. REPORT TO CONGRESS. [<-Struck out]

    [Struck out->] Not later than December 31, 2014, the Secretary of Transportation shall submit to Congress a report on the progress made by the automobile manufacturing industry towards meeting the 35 miles per gallon average fuel economy standard required under section 32902(b)(1) of title 49, United States Code. [<-Struck out]

[Struck out->] SEC. 11. LABELS FOR FUEL ECONOMY AND GREENHOUSE GAS EMISSIONS. [<-Struck out]

    [Struck out->] Section 32908 of title 49, United States Code, is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)(1), by striking `of this title' and inserting `and a light truck manufactured by a manufacturer in a model year after model year 2010; and'; [<-Struck out]

      [Struck out->] (2) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) in paragraph (1)-- [<-Struck out]

          [Struck out->] (i) by redesignating subparagraph (F) as subparagraph (H); and [<-Struck out]

          [Struck out->] (ii) by inserting after subparagraph (E) the following: [<-Struck out]

      [Struck out->]

      `(F) a label (or a logo imprinted on a label required by this paragraph) that-- [<-Struck out]

        [Struck out->]

        `(i) reflects an automobile's performance on the basis of criteria developed by the Administrator to reflect the fuel economy and greenhouse gas and other emissions consequences of operating the automobile over its likely useful life; [<-Struck out]

        [Struck out->]

        `(ii) permits consumers to compare performance results under clause (i) among all passenger automobiles and light duty trucks; and [<-Struck out]

        [Struck out->]

        `(iii) is designed to encourage the manufacture and sale of passenger automobiles and light trucks that meet or exceed applicable fuel economy standards under section 32902. [<-Struck out]

      [Struck out->]

      `(G) a fuelstar under paragraph (5).'; and [<-Struck out]

        [Struck out->] (B) by adding at the end the following: [<-Struck out]

    [Struck out->]

    `(4) Green Label Program- [<-Struck out]

      [Struck out->]

      `(A) MARKETING ANALYSIS- Not later than 2 years after the date of the enactment of the Ten-in-Ten Fuel Economy Act, the Administrator shall complete a study of social marketing strategies with the goal of maximizing consumer understanding of point-of-sale labels or logos described in paragraph (1)(F). [<-Struck out]

      [Struck out->]

      `(B) ELIGIBILITY- Not later than 3 years after the date described in subparagraph (A), the Administrator shall issue requirements for the label or logo required under paragraph (1)(F) to ensure that a passenger automobile or light truck is not eligible for the label or logo unless it-- [<-Struck out]

        [Struck out->]

        `(i) meets or exceeds the applicable fuel economy standard; or [<-Struck out]

        [Struck out->]

        `(ii) will have the lowest greenhouse gas emissions over the useful life of the vehicle of all vehicles in the vehicle class to which it belongs in that model year. [<-Struck out]

      [Struck out->]

      `(C) CRITERIA- In developing criteria for the label or logo, the Administrator shall also consider, among others as appropriate, the following factors: [<-Struck out]

        [Struck out->]

        `(i) The recyclability of the automobile. [<-Struck out]

        [Struck out->]

        `(ii) Any other pollutants or harmful byproducts related to the automobile, which may include those generated during manufacture of the automobile, those issued during use of the automobile, or those generated after the automobile ceases to be operated. [<-Struck out]

    [Struck out->]

    `(5) Fuelstar Program- [<-Struck out]

      [Struck out->]

      `(A) IN GENERAL- The Secretary shall establish a program, to be known as the `Fuelstar Program', under which stars shall be imprinted on or attached to the label required by paragraph (1). [<-Struck out]

      [Struck out->]

      `(B) GREEN STARS- Under the Fuelstar Program, a manufacturer may include on the label maintained on an automobile under paragraph (1)-- [<-Struck out]

        [Struck out->]

        `(i) 1 green star for any automobile that meets the average fuel economy standard for the model year under section 32902; and [<-Struck out]

        [Struck out->]

        `(ii) 1 additional green star for each 2 miles per gallon by which the automobile exceeds such standard. [<-Struck out]

      [Struck out->]

      `(C) GOLD STARS- Under the Fuelstar Program, a manufacturer may include a gold star on the label maintained on an automobile under paragraph (1) if-- [<-Struck out]

        [Struck out->]

        `(i) in the case of a passenger automobile, the automobile attains a fuel economy of at least 50 miles per gallon; and [<-Struck out]

        [Struck out->]

        `(ii) in the case of a light truck, the truck attains a fuel economy of at least 37 miles per gallon.'. [<-Struck out]

TITLE I--CORPORATE AVERAGE FUEL ECONOMY STANDARDS

SEC. 101. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title- This title may be cited as the `Ten-in-Ten Fuel Economy Act'.

    (b) Table of Contents- The table of contents for this title is as follows:

TITLE I--CORPORATE AVERAGE FUEL ECONOMY STANDARDS

      Sec. 101. Short title; table of contents.

      Sec. 102. Average fuel economy standards for automobiles, medium-duty trucks, and heavy duty trucks.

      Sec. 103. Amending fuel economy standards.

      Sec. 104. Definitions.

      Sec. 105. Ensuring safety of automobiles.

      Sec. 106. Credit trading program.

      Sec. 107. Labels for fuel economy and greenhouse gas emissions.

      Sec. 108. Continued applicability of existing standards.

      Sec. 109. National Academy of Sciences studies.

      Sec. 110. Standards for executive agency automobiles.

      Sec. 111. Ensuring availability of flexible fuel vehicles.

      Sec. 112. Increasing consumer awareness of flexible fuel vehicles.

      Sec. 113. Periodic review of accuracy of fuel economy labeling procedures.

      Sec. 114. Tire fuel efficiency consumer information.

      Sec. 115. Advanced battery initiative.

      Sec. 116. Biodiesel standards.

      Sec. 117. Use of civil penalties for research and development.

      Sec. 118. Energy security fund and alternative fuel grant program.

      Sec. 119. Authorization of appropriations.

SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES, MEDIUM-DUTY TRUCKS, AND HEAVY DUTY TRUCKS.

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

      (1) by striking `Non-Passenger Automobiles- ' in subsection (a) and inserting `Prescription of Standards by Regulation- ';

      (2) by striking `automobiles (except passenger automobiles)' in subsection (a) and inserting `automobiles, medium-duty trucks, and heavy-duty trucks'; and

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

    `(b) Standards for Automobiles, Medium-Duty Trucks, and Heavy-Duty Trucks-

      `(1) IN GENERAL- The Secretary of Transportation, after consultation with the Administrator of the Environmental Protection Agency, shall prescribe average fuel economy standards for automobiles, medium-duty trucks, and heavy-duty trucks manufactured by a manufacturer in each model year beginning with model year 2011 in accordance with subsection (c).

      `(2) Annual increases in fuel economy standards-

        `(A) BASELINE AVERAGE FUEL ECONOMY STANDARDS FOR MEDIUM- AND HEAVY-DUTY TRUCKS- For the first 2 model years beginning after the submission to Congress of the initial report by the National Academy of Sciences required by section 10 of the Ten-in-Ten Act, the average fuel economy required to be attained for each attribute class of medium-duty trucks and heavy-duty trucks shall be the average combined highway and city miles-per-gallon performance of all vehicles within that class in the model year immediately preceding the first of those 2 model years (rounded to the nearest 1/10 mile per gallon).

        `(B) MEDIUM- AND HEAVY-DUTY TRUCK FUEL ECONOMY AVERAGE AFTER BASELINE MODEL YEAR- For each model year beginning after the 2 model years specified in subparagraph (A), the average fuel economy required to be attained by the fleet of medium-duty trucks and heavy-duty trucks manufactured in the United States shall be at least 4 percent greater than the average fuel economy required to be attained for the fleet in the previous model year (rounded to the nearest 1/10 mile per gallon). Standards shall be issued for medium-duty trucks and heavy-duty trucks for 20 model years.

      `(3) Fuel economy target for automobiles-

        `(A) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2011 THROUGH 2020- The Secretary shall prescribe average fuel economy standards for automobiles in each model year beginning with model year 2011 to achieve a combined fuel economy standard for model year 2020 of at least 35 miles per gallon for the fleet of automobiles manufactured or sold in the United States. The average fuel economy standards prescribed by the Secretary shall be the maximum feasible average fuel economy standards for model years 2011 through 2019.

        `(B) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2021 THROUGH 2030- For model years 2021 through 2030, the average fuel economy required to be attained by the fleet of automobiles manufactured or sold in the United States shall be at least 4 percent greater than the average fuel economy standard required to be attained for the fleet in the previous model year (rounded to the nearest 1/10 mile per gallon).'.

    (b) AUTHORITY OF SECRETARY- Section 32902 of title 49, United States Code, is amended by adding at the end thereof the following:

    `(k) Authority of the Secretary-

      `(1) VEHICLE ATTRIBUTES- The authority of the Secretary to prescribe by regulation average fuel economy standards for automobiles, medium-duty trucks, and heavy-duty trucks under this section includes the authority--

        `(A) to prescribe standards based on vehicle attributes and to express the standards in the form of a mathematical function; and

        `(B) to issue regulations under this title prescribing average fuel economy standards for 1 or more model years.

      `(2) PROHIBITION OF UNIFORM PERCENTAGE INCREASE- When the Secretary prescribes a standard, or prescribes an amendment under this section that changes a standard, the standard may not be expressed as a uniform percentage increase from the fuel-economy performance of attribute classes or categories already achieved in a model year by a manufacturer.'.

SEC. 103. AMENDING FUEL ECONOMY STANDARDS.

    (a) IN GENERAL- Section 32902(c) of title 49, United States Code, is amended to read as follows:

    `(c) Amending Fuel Economy Standards-

      `(1) IN GENERAL- Notwithstanding subsections (a) and (b), the Secretary of Transportation--

        `(A) may prescribe a standard higher than that required under subsection (b); or

        `(B) may prescribe an average fuel economy standard for a class of automobiles, medium-duty trucks, or heavy-duty trucks that is the maximum feasible level for the model year, despite being lower than the standard required under subsection (b), if the Secretary determines, based on clear and convincing evidence, that the average fuel economy standard prescribed in accordance with subsections (a) and (b) for that class of vehicles in that model year is shown not to be cost-effective.

      `(2) REQUIREMENTS FOR LOWER STANDARD- Before adopting an average fuel economy standard for a class of automobiles, medium-duty trucks, or heavy-duty trucks in a model year under paragraph (1)(B), the Secretary of Transportation shall do the following:

        `(A) NOTICE OF PROPOSED RULE- Except for standards to be promulgated by 2011, at least 30 months before the model year for which the standard is to apply, the Secretary shall post a notice of proposed rulemaking for the proposed standard. The notice shall include a detailed analysis of the basis for the Secretary's determination under paragraph (1)(B).

        `(B) FINAL RULE- At least 18 months before the model year for which the standard is to apply, the Secretary shall promulgate a final rule establishing the standard.

        `(C) REPORT- The Secretary shall submit a report to Congress that outlines the steps that need to be taken to avoid further reductions in average fuel economy standards.

      `(3) MAXIMUM FEASIBLE STANDARD- An average fuel economy standard prescribed for a class of automobiles, medium-duty trucks, or heavy-duty trucks in a model year under paragraph (1) shall be the maximum feasible standard.'.

    (b) FEASIBILITY CRITERIA- Section 32902(f) of title 49, United States Code, is amended to read as follows:

    `(f) Decisions on Maximum Feasible Average Fuel Economy-

      `(1) IN GENERAL- When deciding maximum feasible average fuel economy under this section, the Secretary shall consider--

        `(A) economic practicability;

        `(B) the effect of other motor vehicle standards of the Government on fuel economy;

        `(C) environmental impacts; and

        `(D) the need of the United States to conserve energy.

      `(2) LIMITATIONS- In setting any standard under subsection (b), (c), or (d), the Secretary shall ensure that each standard is the highest standard that--

        `(A) is technologically achievable;

        `(B) can be achieved without materially reducing the overall safety of automobiles, medium-duty trucks, and heavy-duty trucks manufactured or sold in the United States;

        `(C) is not less than the standard for that class of vehicles from any prior year; and

        `(D) is cost-effective.

      `(3) Determining cost-effectiveness-

        `(A) IN GENERAL- In determining cost effectiveness under paragraph (2)(D), the Secretary shall take into account the total value to the United States of reduced fuel use, including the monetary value of the reduced fuel use over the life of the vehicle.

        `(B) ADDITIONAL FACTORS FOR CONSIDERATION BY SECRETARY- The Secretary shall consider in the analysis the following factors:

          `(i) Economic security.

          `(ii) The impact of the oil or energy intensity of the United States economy on the sensitivity of the economy to oil and other fuel price changes, including the magnitude of gross domestic product losses in response to short term price shocks or long term price increases.

          `(iii) National security, including the impact of United States payments for oil and other fuel imports on political, economic, and military developments in unstable or unfriendly oil-exporting countries.

          `(iv) The uninternalized costs of pipeline and storage oil seepage, and for risk of oil spills from production, handling, and transport, and related landscape damage.

          `(v) The emissions of pollutants including greenhouse gases over the lifecycle of the fuel and the resulting costs to human health, the economy, and the environment.

          `(vi) Such additional factors as the Secretary deems relevant.

      `(4) MINIMUM VALUATION- When considering the value to consumers of a gallon of gasoline saved, the Secretary of Transportation shall use as a minimum value the value of the gasoline prices projected by the Energy Information Administration for the period covered by the standard beginning in the year following the year in which the standards are established.

      `(5) COST-EFFECTIVE DEFINED- In this subsection, the term `cost-effective' means that the total value to the United States of reduced fuel use from a proposed fuel economy standard is greater than or equal to the total cost to the United States of such standard. Notwithstanding this definition, the Secretary shall not base the level of any standard on any technology whose cost to the United States is substantially more than the value to the United States of the reduction in fuel use attributable to that technology.'.

    (c) CONSULTATION REQUIREMENT- Section 32902(i) of title 49, United States Code, is amended by inserting `and the Administrator of the Environmental Protection Agency' after `Energy'.

    (d) COMMENTS- Section 32902(j) of title 49, United States Code, is amended--

      (1) by striking paragraph (1) and inserting `(1) Before issuing a notice proposing to prescribe or amend an average fuel economy standard under subsection (b), (c), or (g) of this section, the Secretary of Transportation shall give the Secretary of Energy and Administrator of the Environmental Protection Agency at least 10 days after the receipt of the notice during which the Secretary of Energy and Administrator may, if the Secretary of Energy or Administrator concludes that the proposed standard would adversely affect the conservation goals of the Secretary of Energy or environmental protection goals of the Administrator, provide written comments to the Secretary of Transportation about the impact of the standard on those goals. To the extent the Secretary of Transportation does not revise a proposed standard to take into account comments of the Secretary of Energy or Administrator on any adverse impact of the standard, the Secretary of Transportation shall include those comments in the notice.'; and

      (2) by inserting `and the Administrator' after `Energy' each place it appears in paragraph (2).

    (e) Technical and Conforming Amendments-

      (1) Section 32902(d) of title 49, United States Code, is amended by striking `passenger' each place it appears.

      (2) Section 32902(g) of title 49, United States Code, is amended--

        (A) by striking `subsection (a) or (d)' each place it appears in paragraph (1) and inserting `subsection (b), (c), or (d)'; and

        (B) striking `(and submit the amendment to Congress when required under subsection (c)(2) of this section)' in paragraph (2).

SEC. 104. 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 (except a vehicle operated only on a rail line), and rated at not more than 10,000 pounds gross vehicle weight.';

      (2) by inserting after paragraph (10) the following:

      `(10A) `heavy-duty truck' means a truck (as defined in section 30127) with a gross vehicle weight in excess of 26,000 pounds.';

      (3) by inserting after paragraph (13) the following:

      `(13A) `medium-duty truck' means a truck (as defined in section 30127) with a gross vehicle weight of at least 10,000 pounds but not more than 26,000 pounds.'; and

      (4) by striking paragraph (16).

    (b) DEADLINE FOR REGULATIONS- The Secretary of Transportation--

      (1) shall issue proposed regulations implementing the amendments made by subsection (a) not later than 1 year after the date of the enactment of this Act; and

      (2) shall issue final regulations implementing the amendments not later than 18 months after the date of the enactment of this Act.

    (c) EFFECTIVE DATE- Regulations prescribed under subsection (b) shall apply beginning with model year 2010.

SEC. 105. ENSURING SAFETY OF AUTOMOBILES.

    (a) In General- The Secretary of Transportation shall exercise such authority under Federal law as the Secretary may have to ensure that automobiles (as defined in section 32901 of title 49, United States Code) are safe.

    (b) Vehicle Safety- Subchapter II of chapter 301 of title 49, United States Code, is amended by adding at the end the following:

`Sec. 30129. Vehicle compatibility and aggressivity reduction standard

    `(a) Standards- The Secretary of Transportation shall issue a motor vehicle safety standard to reduce automobile incompatibility and aggressivity. The standard shall address characteristics necessary to ensure better management of crash forces in multiple vehicle frontal and side impact crashes between different types, sizes, and weights of automobiles with a gross vehicle weight of 10,000 pounds or less in order to decrease occupant deaths and injuries.

    `(b) Consumer Information- The Secretary shall develop and implement a public information side and frontal compatibility crash test program with vehicle ratings based on risks to occupants, risks to other motorists, and combined risks by vehicle make and model.'.

    (c) Rulemaking Deadlines-

      (1) RULEMAKING- The Secretary of Transportation shall issue--

        (A) a notice of a proposed rulemaking under section 30129 of title 49, United States Code, not later than January 1, 2010; and

        (B) a final rule under such section not later than December 31, 2012.

      (2) EFFECTIVE DATE OF REQUIREMENTS- Any requirement imposed under the final rule issued under paragraph (1) shall become fully effective not later than September 1, 2013.

    (d) Conforming Amendment- The chapter analysis for chapter 301 is amended by inserting after the item relating to section 30128 the following:

      `30129. Vehicle compatibility and aggressivity reduction standard.'.

SEC. 106. CREDIT TRADING PROGRAM.

    Section 32903 of title 49, United States Code, is amended--

      (1) by striking `passenger' each place it appears;

      (2) by striking `section 32902(b)-(d) of this title' each place it appears and inserting `subsection (a), (c), or (d) of section 32902';

      (3) by striking `3 consecutive model years' in subsections (a)(1) and (a)(2) and inserting `5 consecutive model years';

      (4) in subsection (a)(2), by striking `clause (1) of this subsection,' and inserting `paragraph (1)'; and

      (5) by striking `3 model years' in subsection (b)(2) and inserting `5 model years'; and

      (6) by striking subsection (e) and inserting the following:

    `(e) Credit Trading Among Manufacturers- The Secretary of Transportation may establish, by regulation, a corporate average fuel economy credit trading program to allow manufacturers whose automobiles exceed the average fuel economy standards prescribed under section 32902 to earn credits to be sold to manufacturers whose automobiles fail to achieve the prescribed standards.'.

SEC. 107. LABELS FOR FUEL ECONOMY AND GREENHOUSE GAS EMISSIONS.

    Section 32908 of title 49, United States Code, is amended--

      (1) by redesignating subparagraph (F) of subsection (b)(1) as subparagraph (H) and inserting after subparagraph (E) the following:

      `(F) a label (or a logo imprinted on a label required by this paragraph) that--

        `(i) reflects an automobile's performance on the basis of criteria developed by the Administrator to reflect the fuel economy and greenhouse gas and other emissions consequences of operating the automobile over its likely useful life;

        `(ii) permits consumers to compare performance results under clause (i) among all automobiles; and

        `(iii) is designed to encourage the manufacture and sale of automobiles that meet or exceed applicable fuel economy standards under section 32902.

      `(G) a fuelstar under paragraph (5).'; and

      (2) by adding at the end of subsection (b) the following:

    `(4) Green label program-

      `(A) MARKETING ANALYSIS- Not later than 2 years after the date of the enactment of the Ten-in-Ten Fuel Economy Act, the Administrator shall implement a consumer education program and execute marketing strategies to improve consumer understanding of automobile performance described in paragraph (1)(F).

      `(B) ELIGIBILITY- Not later than 3 years after the date described in subparagraph (A), the Administrator shall issue requirements for the label or logo required under paragraph (1)(F) to ensure that an automobile is not eligible for the label or logo unless it--

        `(i) meets or exceeds the applicable fuel economy standard; or

        `(ii) will have the lowest greenhouse gas emissions over the useful life of the vehicle of all vehicles in the vehicle attribute class to which it belongs in that model year.

    `(5) Fuelstar program-

      `(A) IN GENERAL- The Secretary shall establish a program, to be known as the `Fuelstar Program', under which stars shall be imprinted on or attached to the label required by paragraph (1).

      `(B) GREEN STARS- Under the Fuelstar Program, a manufacturer may include on the label maintained on an automobile under paragraph (1)--

        `(i) 1 green star for any automobile that meets the average fuel economy standard for the model year under section 32902; and

        `(ii) 1 additional green star for each 2 miles per gallon by which the automobile exceeds such standard.

      `(C) GOLD STARS- Under the Fuelstar Program, a manufacturer may include a gold star on the label maintained on an automobile under paragraph (1) if the automobile attains a fuel economy of at least 50 miles per gallon.'.

SEC. 108. CONTINUED APPLICABILITY OF EXISTING STANDARDS.

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

SEC. 109. 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, medium-duty truck, or heavy-duty truck fuel economy;

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

      (4) an assessment of how such technologies may be used to meet the new fuel economy standards under chapter 329 of title 49, United States Code, as amended by this title.

    (b) QUINQUENNIAL UPDATES- After submitting the initial report, the Academy shall update the report at 5 year intervals thereafter through 2025.

    (c) REPORT- The Academy shall submit the report to the Secretary, the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce, with its findings and recommendations no later than 18 months after the date on which the Secretary executes the agreement with the Academy.

SEC. 110. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.

    (a) IN GENERAL- Section 32917 of title 49, United States Code, is amended to read as follows:

`Sec. 32917. Standards for executive agency automobiles

    `(a) FUEL EFFICIENCY- The head of an Executive agency shall ensure that each new automobile procured by the Executive agency is as fuel efficient as practicable.

    `(b) DEFINITIONS- In this section:

      `(1) EXECUTIVE AGENCY- The term `Executive agency' has the meaning given that term in section 105 of title 5.

      `(2) NEW AUTOMOBILE- The term `new automobile', with respect to the fleet of automobiles of an executive agency, means an automobile that is leased for at least 60 consecutive days or bought, by or for the Executive agency, after September 30, 2008. The term does not include any vehicle designed for combat-related missions, law enforcement work, or emergency rescue work.'.

    (b) REPORT- The Administrator of the General Services Administration shall develop a report describing and evaluating the efforts of the heads of the Executive agencies to comply with section 32917 of title 49, United States Code, for fiscal year 2009. The Administrator shall submit the report to Congress no later than December 31, 2009.

SEC. 111. ENSURING AVAILABILITY OF FLEXIBLE FUEL AUTOMOBILES.

    (a) Amendment-

      (1) IN GENERAL- Chapter 329 of title 49, United States Code, is amended by inserting after section 32902 the following:

`Sec. 32902A. Requirement to manufacture flexible fuel automobiles

    `(a) In General- For each model year, each manufacturer of new automobiles described in subsection (b) shall ensure that the percentage of such automobiles manufactured in a particular model year that are flexible fuel vehicles shall be not less than the percentage set forth for that model year in the following table:

The percentage of flexible fuel

`If the model year is:

automobiles shall be:

2012

50 percent

2013

60 percent

2014

70 percent

2015

80 percent.

    `(b) Automobiles to Which Section Applies- An automobile is described in this subsection if it--

      `(1) is capable of operating on gasoline or diesel fuel;

      `(2) is distributed in interstate commerce for sale in the United States; and

      `(3) does not contain certain engines that the Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Energy, may temporarily exclude from the definition because it is technologically infeasible for the engines to have flexible fuel capability at any time during a period that the Secretaries and the Administrator are engaged in an active research program with the vehicle manufacturers to develop that capability for the engines.'.

      (2) DEFINITION OF FLEXIBLE FUEL AUTOMOBILE- Section 32901(a) of title 49, United States Code, is amended by inserting after paragraph (8), the following:

      `(8A) `flexible fuel automobile' means an automobile described in paragraph (8)(A).'.

      (3) CLERICAL AMENDMENT- The table of sections for chapter 329 of title 49, United States Code, is amended by inserting after the item relating to section 32902 the following:

      `Sec. 32902A. Requirement to manufacture flexible fuel automobiles.'.

    (b) Rulemaking-

      (1) IN GENERAL- Not later than 1 year after the date of the enactment of this Act, the Secretary of Transportation shall issue regulations to carry out the amendments made by subsection (a).

      (2) HARDSHIP EXEMPTION- The regulations issued pursuant to paragraph (1) shall include a process by which a manufacturer may be exempted from the requirement under section 32902A(a) upon demonstrating that such requirement would create a substantial economic hardship for the manufacturer.

SEC. 112. INCREASING CONSUMER AWARENESS OF FLEXIBLE FUEL AUTOMOBILES.

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

    `(g) Increasing Consumer Awareness of Flexible Fuel Automobiles- (1) The Secretary of Transportation shall prescribe regulations that require the manufacturer of automobiles distributed in interstate commerce for sale in the United States--

      `(A) to prominently display a permanent badge or emblem on the quarter panel or tailgate of each such automobile that indicates such vehicle is capable of operating on alternative fuel; and

      `(B) to include information in the owner's manual of each such automobile information that describes--

        `(i) the capability of the automobile to operate using alternative fuel;

        `(ii) the benefits of using alternative fuel, including the renewable nature, and the environmental benefits of using alternative fuel; and

      `(C) to contain a fuel tank cap that is clearly labeled to inform consumers that the automobile is capable of operating on alternative fuel.

    `(2) The Secretary of Transportation shall collaborate with autombile retailers to develop voluntary methods for providing prospective purchasers of automobiles with information regarding the benefits of using alternative fuel in automobiles, including--

      `(A) the renewable nature of alternative fuel; and

      `(B) the environmental benefits of using alternative fuel.'.

SEC. 113. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING PROCEDURES.

    Beginning in December, 2009, and not less often than every 5 years thereafter, the Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, shall--

      (1) reevaluate the fuel economy labeling procedures described in the final rule published in the Federal Register on December 27, 2006 (71 Fed. Reg. 77,872; 40 C.F.R. parts 86 and 600) to determine whether changes in the factors used to establish the labeling procedures warrant a revision of that process; and

      (2) submit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce that describes the results of the reevaluation process.

SEC. 114. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.

    (a) IN GENERAL- Chapter 301 of title 49, United States Code, is amended by inserting after section 30123 the following new section:

`Sec. 30123A. Tire fuel efficiency consumer information

    `(a) Rulemaking-

      `(1) IN GENERAL- Not later than 18 months after the date of enactment of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation shall, after notice and opportunity for comment, promulgate rules establishing a national tire fuel efficiency consumer information program for tires designed for use on motor vehicles to educate consumers about the effect of tires on automobile fuel efficiency.

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

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

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

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

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

      `(3) APPLICABILITY- This section shall not apply to tires excluded from coverage under section 575.104(c)(2) of title 49, Code of Federal Regulations, as in effect on date of enactment of the Ten-in-Ten Fuel Economy Act.

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

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

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

    `(e) PREEMPTION- When a requirement under this section is in effect, a State or political subdivision of a State may adopt or enforce a law or regulation on tire fuel efficiency consumer information only if the law or regulation is identical to that requirement. Nothing in this section shall be construed to preempt a State or political subdivision of a State from regulating the fuel efficiency of tires not otherwise preempted under this chapter.'.

    (b) ENFORCEMENT- Section 30165(a) of title 49, United States Code, is amended by adding at the end the following:

      `(4) SECTION 30123A- Any person who fails to comply with the national tire fuel efficiency consumer information program under section 30123A is liable to the United States Government for a civil penalty of not more than $50,000 for each violation.'.

    (c) Conforming Amendment- The chapter analysis for chapter 301 of title 49, United States Code, is amended by inserting after the item relating to section 30123 the folllowing:

      `30123A. Tire fuel efficiency consumer information.'.

SEC. 115. ADVANCED BATTERY INITIATIVE.

    (a) IN GENERAL- The Secretary of Transportation shall establish and carry out an Advanced Battery Initiative in accordance with this section to support research, development, demonstration, and commercial application of battery technologies.

    (b) INDUSTRY ALLIANCE- Not later than 180 days after the date of enactment of this Act, the Secretary shall competitively select an Industry Alliance to represent participants who are private, for-profit firms headquartered in the United States, the primary business of which is the manufacturing of batteries.

    (c) RESEARCH-

      (1) GRANTS- The Secretary shall carry out research activities of the Initiative through competitively-awarded grants to--

        (A) researchers, including Industry Alliance participants;

        (B) small businesses;

        (C) National Laboratories; and

        (D) institutions of higher education.

      (2) INDUSTRY ALLIANCE- The Secretary shall annually solicit from the Industry Alliance--

        (A) comments to identify advanced battery technology needs relevant to electric drive technology;

        (B) an assessment of the progress of research activities of the Initiative; and

        (C) assistance in annually updating advanced battery technology roadmaps.

    (d) AVAILABILITY TO THE PUBLIC- The information and roadmaps developed under this section shall be available to the public.

    (e) PREFERENCE- In making awards under this subsection, the Secretary shall give preference to participants in the Industry Alliance.

    (f) Cost Sharing- In carrying out this section, the Secretary shall require cost sharing in accordance with section 120(b) of title 23, United States Code.

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

SEC. 116. BIODIESEL STANDARDS.

    (a) IN GENERAL- Not later than 180 days after the date of enactment of this Act, the President, in consultation with the Secretary of Transportation, the Secretary of Energy, and the Administrator of the Environmental Protection Administration, shall promulgate standards for biodiesel blend sold or introduced into commerce in the United States.

    (b) DEFINITIONS- In this section:

      (1) BIODIESEL-

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

          (i) the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U.S.C. 7545); and

          (ii) the requirements of the American Society of Testing and Materials D6751.

        (B) INCLUSIONS- The term `biodiesel' includes esters described in subparagraph (A) derived from--

          (i) animal waste, including poultry fat, poultry waste, and other waste material; and

          (ii) municipal solid waste, sludge, and oil derived from wastewater or the treatment of wastewater.

      (2) BIODIESEL BLEND- The term `biodiesel blend' means a mixture of biodiesel and diesel fuel, including--

        (A) a blend of biodiesel and diesel fuel approximately 5 percent of the content of which is biodiesel (commonly known as `B5'); and

        (B) a blend of biodiesel and diesel fuel approximately 20 percent of the content of which is biodiesel (commonly known as `B20').

SEC. 117. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.

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

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

      `(1) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which shall be used by the Secretary to carry out a program of research and development into fuel saving automotive technologies and to support rulemaking under this chapter; and

      `(2) transfer 50 percent of such total amount to the Energy Security Fund established by section 118(a) of the Ten-in-Ten Fuel Economy Act.

SEC. 118. ENERGY SECURITY FUND AND ALTERNATIVE FUEL GRANT PROGRAM.

    (a) ESTABLISHMENT OF FUND-

      (1) IN GENERAL- There is established in the Treasury a fund, to be known as the `Energy Security Fund' (referred to in this section as the `Fund'), consisting of--

        (A) amounts transferred to the Fund under section 32912(e)(2) of title 49, United States Code; and

        (B) amounts credited to the Fund under paragraph (2)(C).

      (2) INVESTMENT OF AMOUNTS-

        (A) IN GENERAL- The Secretary of the Treasury shall invest in interest-bearing obligations of the United States such portion of the Fund as is not, in the judgment of the Secretary of the Treasury, required to meet current withdrawals.

        (B) SALE OF OBLIGATIONS- Any obligation acquired by the Fund may be sold by the Secretary of the Treasury at the market price.

        (C) CREDITS TO FUND- The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to, and form a part of, the Fund in accordance with section 9602 of the Internal Revenue Code of 1986.

      (3) USE OF AMOUNTS IN FUND- Amounts in the Fund shall be made available to the Secretary of Energy, subject to the availability of appropriations, to carry out the grant program under subsection (b).

    (b) ALTERNATIVE FUELS GRANT PROGRAM-

      (1) IN GENERAL- Not later than 90 days after the date of enactment of this Act, the Secretary of Energy, acting through the Clean Cities Program of the Department of Energy, shall establish and carry out a program under which the Secretary shall provide grants to expand the availability to consumers of alternative fuels (as defined in section 32901(a) of title 49, United States Code).

      (2) ELIGIBILITY-

        (A) IN GENERAL- Except as provided in subparagraph (B), any entity that is eligible to receive assistance under the Clean Cities Program shall be eligible to receive a grant under this subsection.

        (B) EXCEPTIONS-

          (i) CERTAIN OIL COMPANIES- A large, vertically-integrated oil company shall not be eligible to receive a grant under this subsection.

          (ii) PROHIBITION OF DUAL BENEFITS- An entity that receives any other Federal funds for the construction or expansion of alternative refueling infrastructure shall not be eligible to receive a grant under this subsection for the construction or expansion of the same alternative refueling infrastructure.

        (C) ENSURING COMPLIANCE- Not later than 30 days after the date of enactment of this Act, the Secretary of Energy shall promulgate regulations to ensure that, before receiving a grant under this subsection, an eligible entity meets applicable standards relating to the installation, construction, and expansion of infrastructure necessary to increase the availability to consumers of alternative fuels (as defined in section 32901(a) of title 49, United States Code).

      (3) MAXIMUM AMOUNT-

        (A) GRANTS- The amount of a grant provided under this subsection shall not exceed $30,000.

        (B) AMOUNT PER STATION- An eligible entity shall receive not more than $90,000 under this subsection for any station of the eligible entity during a fiscal year.

      (4) USE OF FUNDS-

        (A) IN GENERAL- A grant provided under this subsection shall be used for the construction or expansion of alternative fueling infrastructure.

        (B) ADMINISTRATIVE EXPENSES- Not more than 3 percent of the amount of a grant provided under this subsection shall be used for administrative expenses.

SEC. 119. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary of Transportation $25,000,000 for each of fiscal years 2009 through 2021 to carry out the provisions of chapter 329 of title 49, United States Code.

TITLE II--PRICE GOUGING

SEC. 201. SHORT TITLE; TABLE OF CONTENTS.

    (a) SHORT TITLE- This title may be cited as the `Petroleum Consumer Price Gouging Protection Act'.

    (b) TABLE OF CONTENTS- The table of contents for this title is as follows:

      Sec. 201. Short title; table of contents.

      Sec. 202. Definitions.

      Sec. 203. Prohibition on price gouging during energy emergencies.

      Sec. 204. Prohibition on market manipulation.

      Sec. 205. Prohibition on false information.

      Sec. 206. Presidential declaration of energy emergency.

      Sec. 207. Enforcement by the Federal Trade Commission.

      Sec. 208. Enforcement by State Attorneys General.

      Sec. 209. Penalties.

      Sec. 210. Effect on other laws.

SEC. 202. DEFINITIONS.

    In this title:

      (1) AFFECTED AREA- The term `affected area' means an area covered by a Presidential declaration of energy emergency.

      (2) SUPPLIER- The term `supplier' means any person engaged in the trade or business of selling or reselling, at retail or wholesale, or distributing crude oil, gasoline, or petroleum distillates.

      (3) PRICE GOUGING- The term `price gouging' means the charging of an unconscionably excessive price by a supplier in an affected area.

      (4) UNCONSCIONABLY EXCESSIVE PRICE- The term `unconscionably excessive price' means a price charged in an affected area for crude oil, gasoline, or petroleum distillates that--

        (A)(i) represents a gross disparity between the price at which it was offered for sale in the usual course of the supplier's business immediately prior to the President's declaration of an energy emergency;

        (ii) grossly exceeds the price at which the same or similar crude oil, gasoline, or petroleum distillate was readily obtainable by other purchasers in the affected area; or

        (iii) represents an exercise of unfair leverage or unconscionable means on the part of the supplier, during a period of declared energy emergency; and

        (B) is not attributable to increased wholesale or operational costs outside the control of the supplier, incurred in connection with the sale of crude oil, gasoline, or petroleum distillates.

      (5) COMMISSION- The term `Commission' means the Federal Trade Commission.

SEC. 203. PROHIBITION ON PRICE GOUGING DURING ENERGY EMERGENCIES.

    (a) IN GENERAL- During any energy emergency declared by the President under section 206 of this title, it is unlawful for any supplier to sell, or offer to sell, crude oil, gasoline, or petroleum distillates in, or for use in, the area to which that declaration applies at an unconscionably excessive price.

    (b) FACTORS CONSIDERED- In determining whether a violation of subsection (a) has occurred, there shall be taken into account, among other factors, the price that would reasonably equate supply and demand in a competitive and freely functioning market.

SEC. 204. PROHIBITION ON MARKET MANIPULATION.

    It is unlawful for any person, directly or indirectly, to use or employ, in connection with the purchase or sale of crude oil, gasoline, or petroleum distillates at wholesale, any manipulative or deceptive device or contrivance, in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of United States citizens.

SEC. 205. PROHIBITION ON FALSE INFORMATION.

    (a) IN GENERAL- It is unlawful for any person to report information related to the wholesale price of crude oil, gasoline, or petroleum distillates to the Commission if--

      (1) that person knew, or reasonably should have known, the information to be false or misleading;

      (2) the information was required by law to be reported; and

      (3) the person intended the false or misleading data to affect data compiled by the Commission for statistical or analytical purposes with respect to the market for crude oil, gasoline, or petroleum distillates.

SEC. 206. PRESIDENTIAL DECLARATION OF ENERGY EMERGENCY.

    (a) IN GENERAL- If the President finds that the health, safety, welfare, or economic well-being of the citizens of the United States is at risk because of a shortage or imminent shortage of adequate supplies of crude oil, gasoline, or petroleum distillates due to a disruption in the national distribution system for crude oil, gasoline, or petroleum distillates (including such a shortage related to a major disaster (as defined in section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2))), or significant pricing anomalies in national energy markets for crude oil, gasoline, or petroleum distillates, the President may declare that a Federal energy emergency exists.

    (b) SCOPE AND DURATION- The emergency declaration shall specify--

      (1) the period, not to exceed 30 days, for which the declaration applies;

      (2) the circumstance or condition necessitating the declaration; and

      (3) the area or region to which it applies, which, for the 48 contiguous states may not be limited to a single State.

    (c) EXTENSIONS- The President may--

      (1) extend a declaration under subsection (a) for a period of not more than 30 days; and

      (2) extend such a declaration more than once.

SEC. 207. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) ENFORCEMENT- This title shall be enforced by the Federal Trade Commission. In enforcing section 203 of this title, the Commission shall give priority to enforcement actions concerning companies with total United States wholesale or retail sales of crude oil, gasoline, and petroleum distillates in excess of $500,000,000 per year but shall not exclude enforcement actions against companies with total United States wholesale sales of $500,000,000 or less per year.

    (b) VIOLATION IS UNFAIR OR DECEPTIVE ACT OR PRACTICE- The violation of any provision of this title shall be treated as an unfair or deceptive act or practice proscribed under a rule issued under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).

    (c) COMMISSION ACTIONS- Following the declaration of an energy emergency by the President under section 206 of this title, the Commission shall--

      (1) establish within the Commission--

        (A) a toll-free hotline that a consumer may call to report an incident of price gouging in the affected area; and

        (B) a program to develop and distribute to the public informational materials to assist residents of the affected area in detecting and avoiding price gouging;

      (2) consult with the Attorney General, the United States Attorney for the districts in which a disaster occurred (if the declaration is related to a major disaster), and State and local law enforcement officials to determine whether any supplier in the affected area is charging or has charged an unconscionably excessive price for crude oil, gasoline, or petroleum distillates in the affected area; and

      (3) conduct an investigation to determine whether any supplier in the affected area has violated section 203 of this title, and upon such finding, take any action the Commission determines to be appropriate to remedy the violation.

SEC. 208. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

    (a) IN GENERAL- A State, as parens patriae, may bring a civil action on behalf of its residents in an appropriate district court of the United States to enforce the provisions of section 203 of this title, or to impose the civil penalties authorized by section 209 for violations of section 203, whenever the attorney general of the State has reason to believe that the interests of the residents of the State have been or are being threatened or adversely affected by a supplier engaged in the sale or resale, at retail or wholesale, or distribution of crude oil, gasoline, or petroleum distillates in violation of section 203 of this title.

    (b) NOTICE- The State shall serve written notice to the Commission of any civil action under subsection (a) prior to initiating the action. The notice shall include a copy of the complaint to be filed to initiate the civil action, except that if it is not feasible for the State to provide such prior notice, the State shall provide such notice immediately upon instituting the civil action.

    (c) AUTHORITY TO INTERVENE- Upon receiving the notice required by subsection (b), the Commission may intervene in the civil action and, upon intervening--

      (1) may be heard on all matters arising in such civil action; and

      (2) may file petitions for appeal of a decision in such civil action.

    (d) CONSTRUCTION- For purposes of bringing any civil action under subsection (a), nothing in this section shall prevent the attorney general of a State from exercising the powers conferred on the Attorney General by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.

    (e) VENUE; SERVICE OF PROCESS- In a civil action brought under subsection (a)--

      (1) the venue shall be a judicial district in which--

        (A) the defendant operates;

        (B) the defendant was authorized to do business; or

        (C) where the defendant in the civil action is found;

      (2) process may be served without regard to the territorial limits of the district or of the State in which the civil action is instituted; and

      (3) a person who participated with the defendant in an alleged violation that is being litigated in the civil action may be joined in the civil action without regard to the residence of the person.

    (f) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION IS PENDING- If the Commission has instituted a civil action or an administrative action for violation of this title, a State attorney general, or official or agency of a State, may not bring an action under this section during the pendency of that action against any defendant named in the complaint of the Commission or the other agency for any violation of this title alleged in the Commission's civil or administrative action.

    (g) NO PREEMPTION- Nothing contained in this section shall prohibit an authorized State official from proceeding in State court to enforce a civil or criminal statute of that State.

SEC. 209. PENALTIES.

    (a) Civil Penalty-

      (1) IN GENERAL- In addition to any penalty applicable under the Federal Trade Commission Act, any supplier--

        (A) that violates section 204 or section 205 of this title is punishable by a civil penalty of not more than $1,000,000; and

        (B) that violates section 203 of this title is punishable by a civil penalty of--

          (i) not more than $500,000, in the case of an independent small business marketer of gasoline (within the meaning of section 324(c) of the Clean Air Act (42 U.S.C. 7625(c))); and

          (ii) not more than $5,000,000 in the case of any other supplier.

      (2) METHOD OF ASSESSMENT- The penalties provided by paragraph (1) shall be assessed in the same manner as civil penalties imposed under section 5 of the Federal Trade Commission Act (15 U.S.C. 45).

      (3) MULTIPLE OFFENSES; MITIGATING FACTORS- In assessing the penalty provided by subsection (a)--

        (A) each day of a continuing violation shall be considered a separate violation; and

        (B) the Commission shall take into consideration the seriousness of the violation and the efforts of the person committing the violation to remedy the harm caused by the violation in a timely manner.

    (b) CRIMINAL PENALTY- Violation of section 203 of this title is punishable by a fine of not more than $5,000,000, imprisonment for not more than 5 years, or both.

SEC. 210. EFFECT ON OTHER LAWS.

    (a) OTHER AUTHORITY OF THE COMMISSION- Nothing in this title shall be construed to limit or affect in any way the Commission's authority to bring enforcement actions or take any other measure under the Federal Trade Commission Act (15 U.S.C. 41 et seq.) or any other provision of law.

    (b) STATE LAW- Nothing in this title preempts any State law.

Calendar No. 630

110th CONGRESS

2d Session

S. 357

[Report No. 110-278]

A BILL

To improve passenger automobile fuel economy and safety, reduce greenhouse gas emissions, reduce dependence on foreign oil, and for other purposes.


April 7, 2008

Reported with an amendment