[Senate Report 112-72]
[From the U.S. Government Publishing Office]
Calendar No. 152
112th Congress Report
SENATE
1st Session 112-72
======================================================================
ALTERNATIVE FUELED VEHICLES COMPETITIVENESS AND ENERGY SECURITY ACT
_______
September 6, 2011.--Ordered to be printed
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1001]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1001) to reduce oil consumption and
improve energy security, and for other purposes, having
considered the same, reports favorably thereon with an
amendment and recommends that the bill, as amended, do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Alternative Fueled
Vehicles Competitiveness and Energy Security Act of 2011''.
(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. Loan guarantees for alternative fuel infrastructure.
Sec. 4. Advanced technology vehicles manufacturing incentive program.
Sec. 5. Conventional fuel replacement calculation and assessment.
Sec. 6. Technical assistance and coordination.
Sec. 7. Workforce training.
Sec. 8. Reduction of engine idling and conventional fuel consumption.
Sec. 9. Electric, hydrogen, and natural gas utility and oil pipeline
participation.
Sec. 10. HOV lane access extension.
SEC. 2. DEFINITIONS.
In this Act:
(1) Alternative fuel.--The term ``alternative fuel'' has the
meaning given the term in section 301 of the Energy Policy Act
of 1992 (42 U.S.C. 13211).
(2) Alternative fueled vehicle.--The term ``alternative
fueled vehicle'' has the meaning given the term in section 301
of the Energy Policy Act of 1992 (42 U.S.C. 13211).
(3) Community college.--The term ``community college'' has
the meaning given the term ``junior or community college'' in
section 312 of the Higher Education Act of 1965 (20 U.S.C.
1058).
(4) Department.--The term ``Department'' means the Department
of Energy.
(5) Nonroad vehicle.--
(A) In general.--The term ``nonroad vehicle'' means a
vehicle that is not licensed for onroad use.
(B) Inclusions.--The term ``nonroad vehicle''
includes a vehicle described in subparagraph (A) that
is used principally--
(i) for industrial, farming, or commercial
use;
(ii) for rail transportation;
(iii) at an airport; or
(iv) for marine purposes.
(6) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
SEC. 3. LOAN GUARANTEES FOR ALTERNATIVE FUEL INFRASTRUCTURE.
Section 1703(a) of the Energy Policy Act of 2005 (42 U.S.C. 16513(a))
is amended by adding at the end the following:
``(11) Infrastructure for provision and distribution of
alternative fuels.''.
SEC. 4. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.
Section 136 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17013) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by redesignating subparagraphs (A)
through (C) as clauses (i) through (iii),
respectively, and indenting appropriately;
(ii) in the matter preceding clause (i) (as
redesignated by clause (i)), by striking
``means an ultra efficient vehicle or a light
duty vehicle that meets--'' and inserting
``means--
``(A) an ultra efficient vehicle or a light duty
vehicle that meets--'';
(iii) in clause (iii) (as redesignated by
clause (i)), by striking the period at the end
and inserting a semicolon; and
(iv) by adding at the end the following:
``(B) a vehicle (such as a medium-duty or heavy-duty
work truck, bus, or rail transit vehicle) that--
``(i) is used on a public street, road,
highway, or transitway;
``(ii) meets each applicable emission
standard that is established as of the date of
the application; and
``(iii) will reduce consumption of
conventional motor fuel by 25 percent or more,
as compared to existing surface transportation
technologies that perform a similar function,
unless the Secretary determines that--
``(I) the percentage is not
achievable for a vehicle type or class;
and
``(II) an alternative percentage for
that vehicle type or class will result
in substantial reductions in motor fuel
consumption within the United
States.'';
(B) in paragraph (3)(B)--
(i) by striking ``equipment and'' and
inserting ``equipment,''; and
(ii) by inserting ``, and manufacturing
process equipment'' after ``suppliers''; and
(C) by striking paragraph (4) and inserting the
following:
``(4) Qualifying components.--The term `qualifying
components' means components, systems, or groups of subsystems
that the Secretary determines--
``(A) to be designed to improve fuel economy or
otherwise substantially reduce consumption of
conventional motor fuel; or
``(B) to contribute measurably to the overall
improved fuel use of an advanced technology vehicle,
including idle reduction technologies.'';
(2) in subsection (b), in the matter preceding paragraph (1),
by striking ``to automobile'' and inserting ``to advanced
technology vehicle'';
(3) in subsection (d)(1), in the first sentence, by striking
``a total of not more than $25,000,000,000 in'';
(4) in subsection (h)--
(A) in the subsection heading, by striking
``Automobile'' and inserting ``Advanced Technology
Vehicle''; and
(B) in paragraph (1)(B), by striking ``automobiles''
each place it appears and inserting ``advanced
technology vehicles''; and
(5) in subsection (i), by striking ``2012'' and inserting
``2016''.
SEC. 5. CONVENTIONAL FUEL REPLACEMENT CALCULATION AND ASSESSMENT.
(a) Methodology.--Not later than 180 days after the date of enactment
of this Act, the Secretary shall, by rule, develop a methodology for
calculating the equivalent volumes of conventional fuel displaced by
use of each alternative fuel to assess the effectiveness of alternative
fuel and alternative fueled vehicles in reducing oil imports.
(b) National Assessment.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall--
(1) conduct a national assessment (using the methodology
developed under subsection (a)) of the effectiveness of
alternative fuel and alternative fueled vehicles in reducing
oil imports into the United States, including as assessment
of--
(A) market penetration of alternative fuel and
alternative fueled vehicles in the United States;
(B) successes and barriers to deployment identified
by the programs established under this Act; and
(C) the maximum feasible deployment of alternative
fuel and alternative fueled vehicles by 2020 and 2030;
and
(2) report to Congress the results of the assessment.
SEC. 6. TECHNICAL ASSISTANCE AND COORDINATION.
(a) Technical Assistance to State, Local, and Tribal Governments.--
(1) In general.--In carrying out this title, the Secretary
shall provide, at the request of the Governor, mayor, county
executive, public utility commissioner, or other appropriate
official or designee, technical assistance to State, local, and
tribal governments or to a public-private partnership described
in paragraph (2) to assist with the deployment of alternative
fuel and alternative fueled vehicles and infrastructure.
(2) Public-private partnership.--Technical assistance under
this section may be awarded to a public-private partnership,
comprised of State, local or tribal governments and
nongovernmental entities, including--
(A) electric or natural gas utilities or other
alternative fuel distributors;
(B) vehicle manufacturers;
(C) alternative fueled vehicle or alternative fuel
technology providers;
(D) vehicle fleet owners;
(E) transportation and freight service providers; or
(F) other appropriate non-Federal entities, as
determined by the Secretary.
(3) Assistance.--The technical assistance described in
paragraph (1) may include--
(A) coordination in the selection, location, and
timing of alternative fuel recharging and refueling
equipment and distribution infrastructure, including
the identification of transportation corridors and
specific alternative fuels that would be made
available;
(B) development of protocols and communication
standards that facilitate vehicle refueling and
recharging into electric, natural gas, and other
alternative fuel distribution systems;
(C) development of codes and standards for the
installation of alternative fuel distribution and
recharging and refueling equipment;
(D) education and outreach for the deployment of
alternative fuel and alternative fueled vehicles; and
(E) utility rate design and integration of
alternative fueled vehicles into electric and natural
gas utility distribution systems.
(b) Cost Sharing.--Cost sharing for assistance awarded under this
section shall be consistent with section 988 of the Energy Policy Act
of 2005 (42 U.S.C. 16352).
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for each of fiscal
years 2012 through 2016.
SEC. 7. WORKFORCE TRAINING.
(a) In General.--The Secretary, in consultation with the Secretary of
Labor, shall award grants to community colleges, other institutions of
higher education, and other qualified training and education
institutions for the establishment or expansion of programs to provide
training and education for vocational workforce development for--
(1) the manufacture and maintenance of alternative fueled
vehicles; and
(2) the manufacture, installation, support, and inspection of
alternative fuel recharging, refueling, and distribution
infrastructure.
(b) Purpose.--Training funded under this section shall be intended to
ensure that the workforce has the necessary skills needed to
manufacture, install, and maintain alternative fuel infrastructure and
alternative fueled vehicles.
(c) Scope.--Training funded under this section shall include training
for--
(1) electricians, plumbers, pipefitters, and other trades and
contractors who will be installing, maintaining, or providing
safety support for alternative fuel recharging, refueling, and
distribution infrastructure;
(2) building code inspection officials;
(3) vehicle, engine, and powertrain dealers and mechanics;
and
(4) others positions as the Secretary determines necessary to
successfully deploy alternative fuels and vehicles.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for each of fiscal
years 2012 through 2016.
SEC. 8. REDUCTION OF ENGINE IDLING AND CONVENTIONAL FUEL CONSUMPTION.
(a) Definition of Idle Reduction Technology.--Section 756(a)(5) of
the Energy Policy Act of 2005 (42 U.S.C. 16104(a)(5)) is amended--
(1) in subparagraph (A), by striking ``and'' after the
semicolon at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(C) uses an alternative fuel to reduce consumption
of conventional fuel and environmental emissions.''.
(b) Funding.--Section 756(b)(4)(B) of the Energy Policy Act of 2005
(42 U.S.C. 16104(b)(4)(B)) is amended in clauses (i) and (ii) by
striking ``fiscal year 2008'' each place it appears and inserting
``each of fiscal years 2008 through 2016''.
SEC. 9. ELECTRIC, HYDROGEN, AND NATURAL GAS UTILITY AND OIL PIPELINE
PARTICIPATION.
(a) In General.--The Secretary shall identify barriers and remedies
in existing electric and natural gas and oil pipeline transmission and
distribution systems to the distribution of alternative fuels and the
deployment of alternative fuel recharging and refueling capability, at
economically competitive costs of alternative fuel for consumers,
including--
(1) model regulatory rate design and billing for recharging
and refueling alternative fueled vehicles;
(2) electric grid load management and applications that will
allow batteries in plug-in electric drive vehicles to be used
for grid storage, ancillary services provision, and backup
power;
(3) integration of plug-in electric drive vehicles with smart
grid technology, including protocols and standards, necessary
equipment, and information technology systems;
(4) technical and economic barriers to transshipment of
biofuels by oil pipelines, or distribution of hydrogen; and
(5) any other barriers to installing sufficient and
appropriate alternative fuel recharging and refueling
infrastructure.
(b) Consultation.--The Secretary shall carry out this section in
consultation with--
(1) the Federal Energy Regulatory Commission;
(2) State public utility commissions;
(3) State consumer advocates;
(4) electric and natural gas utility and transmission owners
and operators;
(5) oil pipeline owners and operators;
(6) hydrogen suppliers; and
(7) other affected entities.
(c) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary shall submit to Congress a report describing
actions taken to carry out this section.
SEC. 10. HOV LANE ACCESS EXTENSION.
Section 166(b)(5) of title 23, United States Code, is amended--
(1) in subparagraph (A), by striking ``Before September 30,
2009, the State'' and inserting ``The State''; and
(2) in subparagraph (B), by striking ``Before September 30,
2009, the State'' and inserting ``The State''.
Purpose of the Measure
The purpose of S. 1001 is to build upon existing programs
to promote alternative fuel vehicles, including support of
infrastructure and other mechanisms to enable their widespread
deployment.
Background and Need
In previous energy laws, such as the Energy Independence
and Security Act of 2007, Congress has set out incentive
programs for the deployment of alternative fuels, alternative
fueling infrastructure, and vehicles that use alternative fuels
or otherwise reduce the use of petroleum-derived fuels.
Although past measures have generated progress in all of these
areas, there remain structural impediments, both within the
federal programs and in local government and the private
sector, that may be hindering the speed of deployment. S. 1001
makes adjustments to the federal framework to try and address
some of those barriers and make existing programs more
effective.
Legislative History
Senator Wyden introduced S. 1001, with Senator Stabenow as
an original cosponsor, on May 16, 2011. The full Committee held
a hearing on the bill on June 9, 2011.
The Committee marked up the bill in open business meeting
on July 14, 2011, and ordered S. 1001 favorably reported with
an amendment in the nature of a substitute.
Committee Recommendation and Tabulation of Votes
The Senate Committee on Energy and Natural Resources, in
open business session on July 14, by a majority vote of a
quorum present, recommends that the Senate pass S. 1001, if
amended as described herein.
The rollcall vote on reporting the measure was 12 yeas, 10
nays as follows:
YEAS NAYS
Mr. Bingaman Ms. Murkowski
Mr. Wyden Mr. Barrasso
Mr. Johnson* Mr. Risch*
Ms. Landrieu Mr. Lee*
Ms. Cantwell Mr. Paul*
Mr. Sanders Mr. Coats
Ms. Stabenow* Mr. Portman
Mr. Udall Mr. Hoeven
Mrs. Shaheen Mr. Heller
Mr. Franken* Mr. Corker*
Mr. Manchin
Mr. Coons*
*Indicates vote by proxy.
Committee Amendments
The Committee adopted an amendment in the nature of a
substitute, which: (1) replaced tax code definitions with
definitions from the Energy Policy Act of 1992 (42 U.S.C.
13211); (2) removed ``advanced biofuels'' from the category of
projects proposed to be made eligible for loan guarantees under
section 1703 of the Energy Policy Act of 2005; (3) added
distribution of hydrogen to the matters to be studied under
section 9; (4) deleted the research and development section
(section 109 of S. 1001 as introduced), as it was deemed to be
substantially redundant to the provisions in S. 734, previously
acted upon by the Committee; and (5) removed the title related
to the Strategic Petroleum Reserve.
Section-by-Section Analysis
Section 1 contains the short title.
Section 2 defines terms used in the bill.
Section 3 adds infrastructure for provision and
distribution of alternative fuels as a new category of project
that may receive loan guarantees under title 17 of the Energy
Policy Act of 2005.
Section 4 expands the Department of Energy's existing
Advanced Technology Vehicle Manufacturing (ATVM) loan program
so that efficient medium and heavy trucks, buses, and rail
transit vehicles are eligible (currently, only light duty
vehicles are eligible) and allows the Secretary of Energy to
reduce the efficiency gains required for each selected project
below 25 percent upon a determination it is not achievable. The
section further strikes the existing $25 billion cap on loan
volume, adds production of alternative fuel vehicles as another
category of manufacturing eligible for loans, and clarifies the
availability of loans to component manufacturers. Finally, it
extends the appropriations authorization by 4 years (from 2012
to 2016).
Section 5 directs the Secretary to develop a methodology to
quantify the amount of oil displaced by alternative fuels, and
within 3 years report to Congress with an assessment of
alternative fuel deployment, deployment potential, and barriers
to market entry.
Section 6 directs the Secretary to provide technical
assistance to state, local, tribal governments, and public-
private partnerships with those governments to assist with
deployment of alternative fuels, vehicles, and infrastructure,
with costs shared. It also authorizes $50 million per year for
5 years for this activity.
Section 7 directs the Secretary, in consultation with the
Secretary of Labor, to provide grants for workforce training to
community colleges and other institutions of higher education
to develop training programs for manufacturing, maintaining,
and installing alternative fuel vehicles and refueling
infrastructure. It also authorizes $50 million per year for 5
years for this activity.
Section 8 addresses an alternative fuel to reduce
consumption of conventional fuel and environmental emissions to
definition of idle reduction technology in section 756(a)(5) of
the Energy Policy Act of 2005. It also reauthorizes the program
at the 2008 level ($45 million and $20 million for clauses (i)
and (ii), respectively) through 2016.
Section 9 directs the Secretary to work with the Federal
Energy Regulatory Commission, utilities, state utility
commissions, and other stakeholders to identify barriers to
alternative fuel deployment in existing electric, hydrogen,
natural gas, and oil transmission and distribution systems, and
report back to Congress within 2 years.
Section 10 extends state authority to allow energy-
efficient vehicles in HOV lanes by deleting the existing 2009
deadline for state action.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
S. 1001--Alternative Fueled Vehicles Competitiveness and Energy
Security Act of 2011
Summary: S. 1001 would authorize appropriations for a
variety of activities aimed at promoting the development and
deployment of alternative fueled vehicles. Current law defines
such vehicles as those that consume fuel other than petroleum
or that use technologies that consume significantly less
petroleum than conventional vehicles. The bill also would
expand eligibility requirements for two existing loan programs
administered by the Department of Energy (DOE) to include
projects related to such vehicles.
CBO estimates that implementing S. 1001 would have a
discretionary cost of $595 million over the 2012-2016 period,
assuming appropriation of the necessary amounts. We also
estimate that expanding DOE's loan programs would increase
direct spending by $350 million over the next 10 years;
therefore, pay-as-you-go procedures apply. Enacting S. 1001
would not affect revenues.
S. 1001 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1001 is shown in the following table.
The costs of this legislation fall within budget function 270
(energy) and 300 (natural resources and environment).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2012 2013 2014 2015 2016 2012-2016
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................... 167 188 188 188 189 920
Estimated Outlays....................................... 48 108 131 147 161 595
CHANGES IN DIRECT SPENDING1
Estimated Budget Authority.............................. 0 0 0 0 0 0
Estimated Outlays....................................... 30 50 100 100 40 320
----------------------------------------------------------------------------------------------------------------
1CBO estimates that S. 1001 would increase direct spending by $350 million over the 2012-2021 period.
Basis of estimate: CBO estimates that implementing S. 1001
would have a discretionary cost of $595 million over the 2012-
2016 period. We also estimate that the bill would increase
direct spending by $350 million over the 2012-2021 period. For
this estimate, CBO assumes that S. 1001 will be enacted near
the start of fiscal year 2012 and that necessary funds will be
provided each year.
Spending subject to appropriation
S. 1001 would specifically authorize appropriations
totaling $825 million over the 2012-2016 period for DOE and the
Environmental Protection Agency (EPA) to carry out a variety of
activities to improve the energy efficiency of vehicles and
promote the deployment of alternative fueled vehicles and
infrastructure. That specified amount includes:
$325 million for EPA to support the deployment
of technologies to reduce energy consumed by heavy-duty
vehicles and locomotives when idling;
$250 million for DOE to provide technical
assistance to state, local, and tribal governments to
develop infrastructure, systems, and education programs
related to facilities to recharge and refuel
alternative fueled vehicles; and,
$250 million for grants to institutions of
higher learning and vocational training to expand
programs to train individuals to work in industries
related to alternative fueled vehicles.
In addition, CBO estimates that implementing other
provisions of S. 1001 would require appropriations totaling $95
million over the 2012-2016 period. That amount includes $90
million for DOE to continue to administer the Advanced
Technology Vehicle Manufacturing (ATVM) Loan Program and $5
million to complete various studies and reports. In total,
assuming the appropriation of amounts specified and estimated
to be necessary, CBO estimates that implementing S. 1001 would
cost $595 million over the 2012-2016 period, with additional
outlays occurring in later years. That estimate is based on
historical spending patterns for activities similar to those
authorized under S. 1001.
Direct spending
S. 1001 would broaden eligibility criteria for two of DOE's
existing credit programs--the ATVM program, which provides
direct loans to support the cost of retrofitting facilities
intended to produce energy-efficient light-duty vehicles and
components for such vehicles, and the program established under
title 17 of the Energy Policy Act of 2005, which provides loan
guarantees for projects that involve certain types of
innovative energy technologies. Broadly speaking, S. 1001 would
expand both programs to allow DOE to increase credit support
for projects related to alternative fueled vehicles and
infrastructure. In particular, changes to the ATVM program
would make it easier for manufacturers of vehicle components to
qualify for loans and permit DOE to make loans to manufacturers
of energy-efficient medium- and heavy-duty vehicles and transit
vehicles. S. 1001 would add infrastructure to provide and
distribute alternative fuels to the list of projects eligible
for loan guarantees under the title 17 program.
Under current law, DOE has budget authority and specified
limits on loan volumes for both programs that CBO estimates
will not be fully utilized over the next 10 years. As a result,
we expect that executing new loans or loan guarantees under S.
1001 would require no new budget authority or increased loan
limitations over the next several years, and that DOE could
meet the demand for such credit support within its existing
budget authority and loan authority. Because increasing the
amount of spending from that existing authority would require
no further Congressional action, enacting S. 1001 would result
in an increase in direct spending.
CBO cannot predict the specific types of projects likely to
proceed under S. 1001, but based on information from the Energy
Information Administration and industry sources about the
anticipated timeframe involved in deploying alternative fueled
vehicles and related infrastructure, we expect that DOE would
use its existing authority to provide credit support to a few
projects over the next 10 years. Taken as a whole, CBO
estimates that enacting S. 1001 would increase direct spending
by $350 million for those activities over the 2012-2021
period--that amount is equivalent to roughly 10 percent of the
amount that DOE has obligated to date for loans to support the
deployment of advanced technology vehicles.
The above estimate is driven primarily by increased
spending of existing balances for the ATVM program. The
Congress appropriated $7.5 billion for that program in 2009.
According to DOE, as of August 2011, the agency has obligated
roughly $3.5 billion to support six loans totaling $9.1 billion
at an average subsidy rate of about 38 percent. Under current
law, CBO expects that a significant portion of DOE's remaining
$4 billion in unobligated balances will not be spent over the
next 10 years. As a result, CBO estimates that S. 1001 would
increase direct spending of those balances. In particular, CBO
expects that easing eligibility requirements for manufacturers
of vehicle components would permit DOE to proceed with pending
applications for loans to support projects that would not
otherwise qualify under current law. In addition, CBO expects
that at least some loans would be made to manufacturers of
energy-efficient medium- and heavy-duty vehicles and transit
vehicles.
Finally, CBO expects that any added spending for title 17
loan guarantees to support investments in recharging and
refueling infrastructure for advanced vehicles would most
likely be issued toward the end of the 2012-2021 period and
would be largely offset by fees paid by borrowers, resulting in
an insignificant net budgetary impact.
Pay-as-you-go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
Those changes result from provisions of S. 1001 that would
expand eligibility requirements for two existing loan programs
and increase DOE's use of previously enacted authority to issue
direct loans and guarantees for projects related to alternative
fueled vehicles and infrastructure.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 1001 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES ON JULY 14, 2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2016 2012-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact.............................. 30 50 100 100 40 10 5 5 5 5 320 350
--------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: S. 1001
contains no intergovernmental or private-sector mandates as
defined in UMRA. The bill would authorize grants to
institutions of higher education and technical assistance to
state, local, and tribal governments for activities related to
the deployment of alternative-fuel vehicles. Any costs to those
entities would be incurred voluntarily as a condition of
federal assistance.
Estimate prepared by: Federal costs: Megan Carroll and
Kathleen Gramp; Impact on State, local, and Tribal Governments:
Ryan Miller; Impact on the private sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 1001.
The bill is not a regulatory measure in the sense of
imposing Government established standards or significant
economic responsibilities on private individuals and
businesses, but rather providing direct loans, loan guarantees,
and grants to private industry that may be voluntarily applied
for.
No personal information would be collected in administering
programs authorized under the bill. Therefore, there would be
no impact on personal privacy.
While an applicant to the loan, loan guarantee, and grant
programs authorized in the measure will have to submit
paperwork through the application process, little if any
additional paperwork would be required of any entity or person
that is not an applicant to a program.
Congressionally Directed Spending
The bill, as reported, does not contain any congressionally
directed spending items, limited tax benefits, or limited
tariff benefits as defined in rule XLIV of the Standing Rules
of the Senate.
Executive Communications
The testimony provided by the Department of Energy on June
9, 2011 follows:
Statement of Kathleen Hogan, Deputy Assistant Secretary for Energy
Efficiency, Office of Energy Efficiency and Renewable Energy,
Department of Energy
Chairman Bingaman, Ranking Member Murkowski and Members of
the Committee, thank you for the opportunity to discuss the
Department of Energy's (DOE's) energy efficiency and Advanced
Vehicles Technology Programs. The Administration is still
reviewing the Reducing Federal Energy Dollars Act of 2011 (S.
963), the Energy Savings and Industrial Competitiveness Act of
2011 (S. 1000), and the Alternative Fuel Vehicles
Competitiveness and Energy Security Act of 2011 (S. 1001).
While the Administration does not take a position at this time,
my statement will provide you with information on work DOE is
already doing to create jobs, build a new clean energy economy,
and help save consumers and businesses money through improved
energy efficiency.
At EERE, we work to remove the barriers to the rapid
conversion of innovative research into commercial products,
manufacturing, and jobs. And we work with other federal, state,
and local governments to speed the adoption of these American
innovations. The new businesses in clean energy production,
installation, and operation are playing a key role driving
economic growth and job creation.
The market for clean energy technology is growing quickly
and many countries have mounted aggressive national efforts to
capture market share. China, for example, has moved quickly to
dominate the development of next generation clean energy
products through low-cost production and investments in
research infrastructure. As the President said, ``this is our
generation's Sputnik moment.'' To show his clear commitment to
our future, he has asked for a significant increase in funding
for energy efficiency and renewable energy in the FY12 budget
proposal, even in a budget which moves overall domestic
discretionary spending to the lowest levels in a generation.
To win the future, we have to be a nation that makes,
creates, and innovates. Across the country, we are seeing
strong evidence that the out-build and out-innovate pillars the
Administration has put forward are paying off. In October of
last year, for example, manufacturing posted its first twelve-
month gain in more than ten years, and has added close to
250,000 jobs since the December 2009 low. The Administration
continues to be optimistic about the prospects for
manufacturing in the recovery.
Manufacturing remains one of the most globally competitive
economic sectors we have. It also is one of the most visible
economic sectors we have, with middle-class Americans clearly
understanding the impact that strengthened manufacturing has on
their lives and their communities.
The challenges we face mean that we need to move with
unprecedented speed and scale. Success is measured by private
innovation and investment but can begin with well-crafted
federal programs that will help achieve a number of important
goals:
A vigorous and profitable residential and
commercial building retrofit industry, cost-effectively saving
30-50 percent of the energy used in existing buildings;
Solar energy, offshore wind energy, and geothermal
plants fully competitive with conventional sources of
electricity;
Fuels that can be drop-in replacements for
gasoline, diesel fuel, or jet fuel priced competitively with
products produced from petroleum;
Large fleets of electric and hybrid cars supported
by a network of charging stations to support them; and
Trucks with over 50% improvement in fuel economy.
Small federal investments have led to major breakthroughs
like the invention of the internet and Global Positioning
Systems or ``GPS'' found in most cellular devices today.
Similarly, EERE investments past, present, and future are
critical to achieving these goals. As one example, in 2009, the
U.S. had only two, relatively small, factories manufacturing
advanced vehicle batteries, and produced less than two percent
of the world's hybrid vehicle batteries.\1\ But over the next
few years, thanks to investments from the American Recovery and
Reinvestment Act of 2009 (Recovery Act) in battery and electric
drive component manufacturing, and electric drive demonstration
and infrastructure, the U.S. will be able to produce enough
batteries and components to support 500,000 plug-in and
electric vehicles per year. High volume manufacturing, coupled
with battery technology advances, design optimization, and
material cost reductions, could lead to a drop in battery costs
of 50 percent by 2013 compared to 2009, which will lower the
cost of electric vehicles, making them accessible to more
consumers.
---------------------------------------------------------------------------
\1\http://www.whitehouse.gov/sites/default/files/
blueprint_secure_energy_future.pdf.
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These kinds of breakthroughs are especially important in
the transportation sector, which alone accounts for
approximately two-thirds of the United States' oil consumption
and contributes to one-third of the Nation's greenhouse gas
(GHG) emissions.\2\ After housing, transportation is the second
biggest monthly expense for most American families.\3\ As the
President said in his recent energy speech, ``In an economy
that relies so heavily on oil, rising prices at the pump affect
everybody.'' Emphasizing that ``there are no quick fixes,'' the
President outlined a portfolio of actions which, taken
together, could cut U.S. oil imports by a third by 2025.
---------------------------------------------------------------------------
\2\http://www1.eere.energy.gov/vehiclesandfuels/pdfs/
vehicles_fs.pdf.
\3\http://www.bels.gov/news.release/cesan.nr0.htm.
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The draft legislation being addressed today focuses on
three areas:
Clean energy in the Federal sector
Energy efficiency in the industrial sector
and building codes
Alternative fuel vehicles
General comments are provided on each of these three areas,
but the Department has no comments on the specific content of
the legislation, as these bills are currently under review by
the Administration.
clean energy in the federal sector
Constructing and operating Federal facilities in a
sustainable manner has numerous well-documented benefits,
including:
Saving taxpayer dollars through optimized
life-cycle cost-effective actions;
Enhancing employee productivity through the
provision of safe, healthy and environmentally
appealing workplaces;
Reducing environmental impacts through
decreased energy, water, and materials use; and
Moving the overall market conditions toward
higher performance, through the Federal demand for
sustainable facilities.
These benefits are sizable, in part, due to the size of the
Federal Government. The Federal Government is estimated to use
about 1.6 percent of the Nation's total energy, occupy nearly
500,000 buildings, operate more than 600,000 vehicles, and
purchase more than $500 billion per year in goods and services.
The Federal government is making substantial progress
toward its sustainability goals mandated in EPAct 2005, EISA
2007, and Executive Order 13514, signed by President Obama in
October, 2009. For example, in FY 2010, the Federal Government
reported a 15 percent decrease in site-delivered Btu per square
foot compared with baseline year 2003. This meets the EISA
statutory reduction goal for FY 2010.
FY 2010 was also the highest level year to date for the use
of Energy Savings Performance Contracting with these contacts
totaling more than $560 million in investment in Federal
facilities. This type of performance-based contracting is
extremely important to meeting the Federal sustainability goals
due to the pressures on Federal appropriations and increasing
goals for reduced energy intensity, energy savings goals that
increase to 30% by 2015.
In FY 2010, Federal agencies also reported purchasing or
producing renewable electric energy representing 5.2 percent of
the Federal Government's electricity use, achieving the EPAct
2005 goal of five percent. This more than doubled renewable
energy use as a percentage of total facility electricity use
since 2003. The five percent goal remains in place until FY
2013, when it will increase to 7.5 percent under current
statute. Not counted in this metric is the significant amount
of non-electric renewable energy produced and purchased by the
Government that displaces the need for additional electric
generation. This includes thermal energy, such as solar hot
water and space heating, geothermal energy, steam from biomass,
and landfill methane.
DOE is also making progress to improve the transparency of
Federal building energy efficiency, as required under EISA
2007, Section 432. DOE expects to have a web-based system that
provides information on the energy efficiency of metered
buildings and on the cost-effective improvement opportunities
that exist in Federal facilities publicly available by Fall
2011.
energy efficiency in the industrial sector and building codes
The Energy Savings and Industrial Competitiveness Act (S.
1000) outlines new provisions for building codes, appliance
standards, and industrial energy efficiency among other areas.
Energy-conserving appliance standards are one of the
significant steps the Administration has taken to save energy
in homes and businesses nationwide, and pave the way toward a
clean energy future for our country.\4\ Since January 2009, the
Department of Energy has finalized new efficiency standards for
more than twenty household and commercial products, which are
projected to cumulatively save consumers between $250 billion
and $300 billion over the next 20 years.\5\ These standards can
provide an immediate and economically responsible way to
increase the nation's energy security while protecting the
environment. Improvements in energy efficiency can be made
today to yield significant near-term and long-term economic and
environmental benefits for the nation.\6\
---------------------------------------------------------------------------
\4\http://www.whitehouse.gov/issues/energy-and-environment.
\5\http://www.energy.gov/news/9582.htm
\6\See, for example: McKinsey and Company (2007). Reducing U.S.
Greenhouse Gas Emissions: How Much at What Cost? (http://www.epa.gov/
cleanenergy/documents/suca/cost-effectiveness.pdf) and Lazard
Associates. Feb. 2009. Levelized Cost of Energy Analysis Version 3.0.
---------------------------------------------------------------------------
In 2007, Congress recognized the importance of negotiated
consensus standards, amending the Energy Policy and
Conservation Act (EPCA) to allow for an expedited rulemaking
process in the event a representative group of stakeholders
could reach agreement. Several DOE rules currently under
development and review overlap with the proposed consensus
standards. Although the agency cannot presuppose the level of
the final standards, it is seriously considering these
consensus recommendations. The agency's preliminary analyses
accompanying the proposed rules for these standards suggest
that the potential net benefits from these recommended levels
could yield tens of billions of dollars in fuel savings and
lower greenhouse gas emissions.
U.S. industry accounts for about one-third of U.S. energy
use while contributing to about 12% of U.S. Gross Domestic
Product.\7\ Improving industrial energy efficiency will result
in saving money and enhancing U.S. competitiveness in the
world's manufacturing sector. By partnering with the private
sector, DOE has already managed to save more than 9.3
quadrillion Btu of energy and reduced carbon emissions by over
206 million metric tons.
---------------------------------------------------------------------------
\7\http://www1.eere.energy.gov/industry/about/pdfs/
itp_program_fact_sheet.pdf.
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Supply chain energy efforts can make an important
contribution to overall industrial efficiency and the
competitive position of domestic suppliers. Analysis suggests
that a large part of the carbon footprint for many consumer
products can be attributed to the supply chain--from raw
materials, transport, and packaging to the energy consumed in
manufacturing processes--on the order of 40 to 60 percent. DOE
and the Environmental Protection Agency (EPA) both have
existing initiatives that address supply chain efficiency, such
as Save Energy Now' at DOE and ENERGY STAR. For
example, through its national Save Energy Now'
initiative, DOE encourages manufacturing companies to engage
their supply chains in energy and carbon management, while at
EPA, ENERGY STAR has engaged whole industries to support their
customers and supply chains in building effective energy
management programs. Specifically, DOE and EPA develop
processes and resources to assist companies in promoting energy
management to their industrial suppliers and customers. Save
Energy Now' LEADER Companies make a voluntary
commitment to reduce their energy intensity by 25 percent in 10
years. Many of these companies are interested in improving the
efficiency of their supply chains as well. ENERGY STAR boasts a
growing group of corporations that have used ENERGY STAR to
influence key suppliers to effectively manage energy.
DOE is also working with Superior Energy Performance (SEP),
a voluntary certification program helping to provide industrial
facilities with a roadmap for achieving continual improvement
in energy efficiency while maintaining competitiveness. A
central element of SEP is implementation of the International
Organization for Standardization (ISO) 50001 energy management
standard, with additional requirements to achieve and document
energy intensity improvements. DOE is working through SEP to
bring ISO 50001 to the U.S. Upon its publication this American
National Standards Institute-accredited program is anticipated
to provide companies with a framework for fostering energy
efficiency at the plant level and a consistent methodology for
measuring and validating energy efficiency and intensity
improvements. This new framework has the opportunity to be an
important tool to integrate into supply chain efforts.
alternative fuel vehicles
Few technologies hold greater promise for reducing our
dependence on oil than alternative fuel vehicles. The
Administration has set a goal to have the United States become
the first country with a million electric vehicles on the road.
Meeting this goal will help the United States become a leader
in the clean energy economy, while capitalizing on the
ingenuity of American industry. Manufacturing products needed
for the clean energy economy will generate long term economic
strength in the U.S., creating jobs across the country while
reducing air pollution and greenhouse gas emissions. The
Administration supports the goal of utilizing alternative fuel
technologies to break our dependence on oil and to move toward
a clean energy future. The DOE looks forward to working with
Congress to achieve these objectives.
DOE's Vehicle Technologies Program is helping the Nation
lead the way in alternative fuel vehicle innovation. DOE has
helped reduce the cost of PHEV Lithium Ion batteries to $650
per kilowatt-hour, a 35% reduction from the 2008 baseline of
$1,000 per kilowatt-hour. This is making oil alternatives
competitive in general while specifically increasing U.S.
competitiveness in the global market.
conclusion
In conclusion, the Department of Energy thanks the
Subcommittee for the opportunity to comment on these proposed
initiatives. We look forward to working with Congress to
develop strong, effective clean energy policy to ensure U.S.
leadership on these global issues and in the clean energy
economy. I am happy to answer any questions Committee Members
may have.
----------
Statement of Jonathan Silver, Executive Director of the Loan Programs
Office, Department of Energy
introduction
Chairman Bingaman, Ranking Member Murkowski, and members of
the Committee, thank you for the opportunity to testify today.
My name is Jonathan Silver, and I am the Executive Director of
the Department of Energy's (DOE) Loan Programs Office (LPO).
DOE's loan programs provide critical support for the nation's
commercial deployment of clean energy technologies, and the
jobs and economic growth that come with them. I welcome the
opportunity to discuss the Advanced Technology Vehicles
Manufacturing (ATVM) Loan Program with you and to highlight our
significant accomplishments.
background of the atvm loan program
As you know, the Loan Programs Office administers three
separate programs: the ATVM Loan Program and the Title XVII
Section 1703 and Section 1705 loan guarantee programs. The ATVM
Loan Program was established by Section 136 of the Energy
Independence and Security Act of 2007, and provides direct
loans to support the manufacturing of advanced technology
vehicles and qualifying components in the United States. As
noted by GAO in their most recent report, although the
authorizing statute does not specifically identify goals for
the Program, ATVM Program staff have established clear goals
and performance metrics to measure the program's success. In
achieving these goals, the Program helps create next-generation
jobs in the automotive and component manufacturing industries.
The Program provides loans to automobile and automobile
parts manufacturers for the cost of reequipping, expanding, or
establishing manufacturing facilities in the United States to
produce advanced technology vehicles or qualified components,
and for associated engineering integration costs. In 2010,
Section 136 was amended to include ultra-efficient vehicles
within the definition of advanced technology vehicles.
The FY 2009 Continuing Resolution (CR), which was enacted
on September 30, 2008, appropriated $7.5 billion in credit
subsidy to support up to $25 billion in loans under the ATVM
Loan program. The FY 2009 CR also provided DOE with $10 million
to administer the Program. On November 5, 2008, DOE issued the
Interim Final Rule for the Program. DOE accomplished this
effort in approximately half of the 60-day timeframe mandated
by Congress. The program began receiving applications on
December 2, 2008.
The ATVM Program has received numerous applications from
both automobile original equipment manufacturers (OEMs) and
component manufacturers.
value of atvm loan program
ATVM funding has played a critical role in the development
of plug-in hybrid and electric vehicles by providing long-term
capital when private financing was not available. It is
important to remember that the ATVM Loan Program is not a grant
program; loans must be repaid. We review projects on a
competitive basis, and we do not fund every eligible project.
We ensure that the loans we support meet our statutory
requirement of having a reasonable prospect of repayment. Every
project that receives financing must first go through a
rigorous financial, legal and technical review process--similar
to, and in some ways more comprehensive than, what a private
sector lender would conduct--before a single dollar of taxpayer
money is put to work.
Moreover, the programs can efficiently and effectively
leverage government resources to spur private-sector
investment. The financing provided by the loan programs is
``additive.'' It is intended to finance projects that--because
they would have difficulty accessing conventional debt
markets--might otherwise not get built. A relatively small
amount of appropriated credit subsidy can support large amounts
of new private sector investment. When a loan is fully repaid,
the nation will have benefited from the incentivized private
sector investment at relatively little cost to taxpayers.
The potential benefits of the Program are great. In
addition to improvements in fuel economy, ATVM Loan Program
projects promote economic growth and job creation. They create
construction and permanent operating jobs in manufacturing
communities where job growth has long been stagnant. In
addition, these projects contribute to the build-out of the
domestic supply chain and manufacturing base that we will need
to ``win'' the clean energy future.
To date, DOE has issued five ATVM loans totaling $8.3
billion. These funds will support advanced vehicle projects in
nine states and the companies supported estimate these projects
will preserve or create almost 38,000 manufacturing or
permanent jobs. The Program also provides substantial support
to the US automotive supply chain. According to information
received from the companies, more than 65 percent of the parts
for Fisker's Karma vehicle are expected to come from US
manufacturers, and the VPG facility alone is estimated to
support approximately 800 sales, service, parts and supplier
professionals. In an economic downturn that threatened the
entire domestic auto industry, the Program helped re-establish
US leadership across multiple automotive technologies including
plug-in, high-efficiency gasoline, and natural gas vehicles.
ATVM loans support three of the world's first electric car
factories in Delaware, Tennessee and California, as well as the
only factory-built light-duty vehicle to date that meets or
exceeds accessibility guidelines of the Americans with
Disabilities Act. In total, our projects will save
approximately 282 million gallons of gasoline annually--roughly
the same as removing 545,000 passenger vehicles from the roads.
s. 1000 and s. 1001
The Administration is continuing to review these bills and
does not have a position on them at this time. My comments will
be limited to Section 202 of S. 1000 and Sections 101 and 102
of S. 1001 as they address issues that would fall under the
Loan Program Office at the Department of Energy.
S. 1000 would expand Title XVII to finance energy
efficiency upgrades to existing buildings. The new program
would target certain building types, including commercial,
industrial, municipal, university, school, and hospital
facilities. The President's 2012 budget requests $100 million
for loan guarantee subsidy costs to support up to $2 billion in
loan guarantees for energy efficiency retrofits of
universities, schools, and hospitals. However, as noted above
the Administration is continuing to review the specifics of
this bill.
S. 1001 would add two new categories of vehicles to those
now eligible for a loan under the ATVM Program. Vehicles
currently eligible for ATVM loans include certain light duty
and ultra-efficient vehicles. The proposed bill would add
medium and heavy-duty trucks, bus and rail vehicles, as well as
alternative fuel vehicles. These vehicles would need to satisfy
certain loan eligibility requirements set out in the proposed
bill, including reducing the consumption of conventional motor
fuel. The proposed bill would also expand the scope of
components that are eligible for a loan under the ATVM program.
The bill would also amend the Title XVII loan guarantee
program to include, as part of the 1703 program's mandate, the
reduction of oil imports through alternative fuel projects. It
would also make projects that produce and distribute
alternative fuel and advanced biofuels eligible for 1703 loan
guarantees.
addressing the gao findings
As you are aware, the U.S. Government Accountability Office
(GAO) completed its audit of the ATVM Loan Program in February
of this year. The stated objectives of the audit were to (1)
identify the steps DOE has taken to implement the ATVM loan
program, (2) examine the ATVM program's progress in awarding
loans, (3) assess how the program is overseeing the loans, and
(4) evaluate the extent to which DOE can assess its progress
toward meeting program goals. The auditors made only two
recommendations: (i) that the Program accelerate its efforts to
engage the engineering expertise needed for effective technical
oversight of loan recipients, and (ii) that the Program develop
sufficient, quantifiable performance measures for its three
program goals.
The GAO report noted that DOE had taken numerous steps to
successfully implement the ATVM Program. In addition to setting
out Program goals for increasing U.S. fuel economy as a whole,
advancing U.S. automotive technology, and protecting taxpayers'
financial interests, the Program also established rigorous
technical, financial, and environmental eligibility
requirements for applicants.
The GAO also acknowledged that the Program has successfully
set procedures for overseeing the financial and technical
performance of borrowers, but asserted that it did not engage
engineering expertise in a timely matter for certain projects
that need additional technical oversight. First, because of
their technical expertise, the Program leverages staff in DOE's
Office of Energy Efficiency and Renewable Energy (EERE) to
determine whether applicants and proposed projects meet the
Program's technical eligibility criteria. EERE performs most of
the technical eligibility analysis for the ATVM Loan Program,
and uses a model from the Argonne National Laboratory to
analyze certain applicant-provided technical data. Second, as
we related in our response to the GAO report, the ATVM Loan
Program--consistent with its procedures--has regularly engaged
both internal and external expertise to help oversee borrowers'
compliance with the loans' technical requirements. In addition
to experienced engineers on staff, we have--contracted with the
country's leading independent engineering firms to ensure that
the projects are being delivered as agreed. These large,
private sector firms have decades of experience in monitoring
and overseeing complex vehicle and technology projects--and
thousands of specialized experts.
We also disagree with GAO's recommendations on the
appropriate phase to begin close technical scrutiny of certain
large projects. GAO suggested, for example, a detailed review
of the engineering integration stage, which is typically
software-based design, scheduling, and logistics. A formal
engineering assessment at this very preliminary stage would
increase transaction costs but would not yield insights that
would increase effectiveness of the ATVM program.
For every project supported by ATVM loans, DOE utilizes
engineering expertise on a regular basis during vehicle
assembly and component manufacturing facility construction.
Given the wide variation in ATVM projects, however, it is
neither possible nor prudent to subject them all to an
identical engineering review. The Program tailors the review
for each project to deploy engineering expertise when and where
it is most needed in order to achieve the highest confidence in
the quality of the project and its ability to repay the loan.
Additionally, the Loan Program's Portfolio Management
Division continuously monitors both a borrower's adherence to
the technical specifications in its approved business plan, and
its financial performance relative to the terms and conditions
of the loan agreement. Program engineers attend quarterly
progress meetings with the borrowers and participate in on-site
inspections of assembly plants and construction sites.
Financial covenants are specifically crafted to provide timely
warnings to DOE prior to a borrower developing financial issues
that may impact the project. This level of attention gives DOE
the ability to closely monitor both the technical performance
and financial health of each borrower for the life of the loan.
The Department also disagrees with GAO's second stated
concern, that the Program has not developed sufficiently robust
performance metrics. To support this position, GAO expressed
concern that external auditors reported instances in which
three of the four borrowers did not spend funds as required.
The Program has been successful in verifying that loan funds
are spent by the borrowers as intended by the ATVM Loan
Program. As GAO reported, the ATVM program uses external
auditors to oversee borrowers' financial performance. Out of
$3.5 billion in loan disbursements over fifteen months, DOE's
auditors have identified less than $1 million in total funds
that were problematic. The largest of the overages, in dollars,
represented less than 1/100th of one percent of the relevant
loan. Each problem that has been identified was corrected
immediately, and procedures were quickly put in place to ensure
that the errors did not occur again.
GAO also recommended that the ATVM Loan Program develop
quantifiable performance measures for ATVM Program goals. DOE
believes that the ATVM Loan Program has established clear
performance measures and operated in a manner consistent with
its authorizing statute and implementing regulations. DOE
believes the analyses suggested by GAO go well beyond the
statutory requirement set out under Section 136.
conclusion
In the past two years, the ATVM loan program has shown
great success. We are making a meaningful contribution to our
national clean energy goals while creating new and permanent
jobs. We will continue to administer all of the DOE loan
programs, including the ATVM program, in the most effective and
efficient way possible--while appropriately protecting taxpayer
funds.
Thank you again for inviting me here today. I look forward
to responding to your questions.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill S. 1001, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
ENERGY POLICY ACT OF 2005
Public Law 109-58, as amended
AN ACT To ensure jobs for our future with secure, affordable, and
reliable energy.
* * * * * * *
TITLE VII--VEHICLES AND FUEL
* * * * * * *
Subtitle D--Miscellaneous
* * * * * * *
SEC. 756. REDUCTION OF ENGINE IDLING.
(a) Definitions.--In this section:
* * * * * * *
(5) Idle reduction technology.--The term ``idle
reduction technology'' means an advanced truck stop
electrification system, auxiliary power unit, or other
technology that--
(A) is used to reduce long-duration idling;
[and]
(B) allows for the main drive engine or
auxiliary refrigeration engine to be shut
down[.] and;
(C) uses an alternative fuel to reduce
consumption of conventional fuel and
environmental emissions.
* * * * * * *
(b) Idle Reduction Technology Benefits, Programs, and
Studies.--
* * * * * * *
(4) Idle reduction and energy conservation deployment
program.--
(A) Establishment.--
(i) In general.--Not later than 90
days after the date of enactment of
this Act, the Administrator, in
consultation with the Secretary of
Transportation shall, through the
Environmental Protection Agency's
SmartWay Transport Partnership,
establish a program to support
deployment of idle reduction and energy
conservation technologies.
(ii) Priority.--The Administrator
shall give priority to the deployment
of idle reduction and energy
conservation technologies based on the
costs and beneficial effects on air
quality and ability to lessen the
emission of criteria air pollutants.
(B) Funding.--
(i) Authorization of
appropriations.--There are authorized
to be appropriated to the Administrator
to carry out subparagraph (A) for the
purpose of reducing extended idling
from heavy-duty vehicles $19,500,000
for fiscal year 2006, $30,000,000 for
fiscal year 2007, and $45,000,000 for
[fiscal year 2008] each of fiscal years
2008 through 2016.
(ii) Locomotives.--There are
authorized to be appropriated to the
administrator to carry out subparagraph
(A) for the purpose of reducing
extended idling from locomotives
$10,000,000 for fiscal year 2006,
$15,000,000 for fiscal year 2007, and
$20,000,000 for [fiscal year 2008] each
of fiscal years 2008 through 2016.
* * * * * * *
TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES
* * * * * * *
SEC. 1703. ELIGIBLE PROJECTS.
(a) In General.--The Secretary may make guarantees under
this section only for projects that--
(1) avoid, reduce, or sequester air pollutants or
anthropogenic emissions of greenhouse gases; and
(2) employ new or significantly improved technologies
as compared to commercial technologies in service in
the United States at the time the guarantee is issued.
* * * * * * *
(11) Infrastructure for provision and distribution of
alternative fuels.
* * * * * * *
ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
Public Law 110-140, as amended
AN ACT To move the United States toward greater energy independence and
security, to increase the production of clean renewable fuels, to
protect consumers, to increase the efficiency of products, buildings,
and vehicles, to promote research on and deploy greenhouse gas capture
and storage options, and to improve the energy performance of the
Federal Government, and for other purposes.
* * * * * * *
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
* * * * * * *
Subtitle B--Improved Vehicle Technology
* * * * * * *
SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.
(a) Definitions.--In this section:
(1) Advanced technology vehicle.--The term ``advanced
technology vehicle'' [means an ultra efficient vehicle
or a light duty vehicle that meets--] means--
(A) an ultra efficient vehicle or a light
duty vehicle that meets--
[(A)] (i) 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 (42U.S.C. 7521(i)), or a lower-numbered Bin
emission standard;
[(B)] (ii) 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)] (iii) at least 125 percent of the
average base year combined fuel economy for
vehicles with substantially similar attributes
[.];
(B) a vehicle (such as a medium-duty or
heavy-duty work truck, bus, or rail transit
vehicle) that--
(i) is used on a public street, road,
highway, or transitway;
(ii) meets each applicable emission
standard that is established as of the
date of the application; and
(iii) will reduce consumption of
conventional motor fuel by 25 percent
or more, as compared to existing
surface transportation technologies
that perform a similar function, unless
the Secretary determines that--
(I) the percentage is not
achievable for a vehicle type
or class; and
(II) an alternative
percentage for that vehicle
type or class will result in
substantial reductions in motor
fuel consumption within the
United States.
* * * * * * *
(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]
equipment developing manufacturing processes
and material suppliers and manufacturing
process equipment 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.]
(4) Qualifying components.--The term ``qualifying
components'' means components, systems, or groups of
subsystems that the Secretary determines--
(A) to be designed to improve fuel economy or
otherwise substantially reduce consumption of
conventional motor fuel; or
(B) to contribute measurably to the overall
improved fuel use of an advanced technology
vehicle, including idle reduction technologies.
* * * * * * *
(b) Advanced Vehicles Manufacturing Facility.--The
Secretary shall provide facility funding awards under this
section [to automobile] to advanced technology vehicle
manufacturers, ultra efficient vehicle 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--
* * * * * * *
(d) Direct Loan Program.--
(1) In general.--Not later than 1 year after December 19,
2007, 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) of this section. The
loans shall be made through the Federal Financing Bank, with
the full faith and credit of the United States Government on
the principal and interest. The full credit subsidy shall be
paid by the Secretary using appropriated funds.
* * * * * * *
(h) Set Aside for Small [Automobile] Advanced Technology
Vehicle 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 ultra efficient vehicles,
[automobiles] advanced technology vehicles, or
components of advanced technology vehicles
[automobiles].
(2) Set aside.--Of the amount of funds that are used
to provide awards for each fiscal year under subsection
(b) of this section, 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] 2016.
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TITLE 23--HIGHWAYS
CHAPTER 1--FEDERAL-AID HIGHWAYS
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SEC. 166. HOV FACILITIES.
(b) Exceptions.--
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(5) Low emission and energy-efficient vehicles.--
(A) Inherently low emission vehicle.--[Before
September 30, 2009, the State] The State agency
may allow vehicles that are certified as
inherently low-emission vehicles pursuant to
section 88.311-93 of title 40, Code of Federal
Regulations (or successor regulations), and are
labeled in accordance with section 88.312-93 of
such title (or successor regulations), to use
the HOV facility if the agency establishes
procedures for enforcing the restrictions on
the use of the facility by the vehicles.
(B) Other low emission and energy-efficient
vehicles.--[Before September 30, 2009, the
State] The State agency may allow vehicles
certified as low emission and energy-efficient
vehicles under subsection (e), and labeled in
accordance with subsection (e), to use the HOV
facility if the operators of the vehicles pay a
toll charged by the agency for use of the
facility and the agency--
(i) establishes a program that
addresses the selection of vehicles
under this paragraph; and
(ii) establishes procedures for
enforcing the restrictions on the use
of the facility by the vehicles.
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