S.Amdt. 4726

1. Adds SEC. 6. DEPLOYMENT OF NEW TECHNOLOGIES TO REDUCE OIL USE IN TRANSPORTATION at the end of the bill

   Adds a section

   In S. 3711 · Placed on Calendar Senate

   (B) any remainder of the qualified outer Continental Shelf revenues shall revert to the general fund of the Treasury.

   Inserted: SEC. 6. DEPLOYMENT OF NEW TECHNOLOGIES TO REDUCE OIL USE IN TRANSPORTATION.

   Inserted: (a) Fuel From Cellulosic Biomass.--

   Inserted: (1) In general.--The Secretary of Energy shall provide deployment incentives under this subsection to encourage a variety of projects to produce transportation fuel from cellulosic biomass, relying on different feedstocks in different regions of the United States.

   Inserted: (2) Project eligibility.--Incentives under this subsection shall be provided on a competitive basis to projects that produce fuel that--

   Inserted: (A) meet United States fuel and emission specifications;

   Inserted: (B) help diversify domestic transportation energy supplies; and

   Inserted: (C) improve or maintain air, water, soil, and habitat quality.

   Inserted: (3) Incentives.--Incentives under this subsection may consist of--

   Inserted: (A) loan guarantees under section 1510 of the Energy Policy Act of 2005 (42 U.S.C. 16501), subject to section 1702 of that Act (22 U.S.C. 16512), for the construction of production facilities and supporting infrastructure; or

   Inserted: (B) production payments through a reverse auction in accordance with paragraph (4).

   Inserted: (4) Reverse auction.--

   Inserted: (A) In general.--In providing incentives under this subsection, the Secretary of Energy shall--

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   Inserted: (i) issue regulations under which producers of fuel from cellulosic biomass may bid for production payments under paragraph (3)(B); and

   Inserted: (ii) solicit bids from producers of different classes of transportation fuel, as the Secretary of Energy determines to be appropriate.

   Inserted: (B) Requirement.--The rules under subparagraph (A) shall require that incentives be provided to the producers that submit the lowest bid (in terms of cents per gallon) for each class of transportation fuel from which the Secretary of Energy solicits a bid.

   Inserted: (b) Advanced Technology Vehicles Manufacturing Incentive Program.--

   Inserted: (1) Definitions.--In this subsection:

   Inserted: (A) Adjusted fuel economy.--The term "adjusted fuel economy" means the average fuel economy of a manufacturer for all light duty motor vehicles produced by the manufacturer, adjusted such that the fuel economy of each vehicle that qualifies for a credit shall be considered to be equal to the average fuel economy for the weight class of the vehicle for model year 2002.

   Inserted: (B) Advanced lean burn technology motor vehicle.--The term "advanced lean burn technology motor vehicle" means a passenger automobile or a light truck with an internal combustion engine that--

   Inserted: (i) is designed to operate primarily using more air than is necessary for complete combustion of the fuel;

   Inserted: (ii) incorporates direct injection; and

   Inserted: (iii) achieves at least 125 percent of the city fuel economy of vehicles in the same size class as the vehicle for model year 2002.

   Inserted: (C) Advanced technology vehicle.--The term "advanced technology vehicle" means a light duty motor vehicle that--

   Inserted: (i) is a hybrid motor vehicle or an advanced lean burn technology motor vehicle; and

   Inserted: (ii) meets--

   Inserted: (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 (42 U.S.C. 7521(i)), or a lower-numbered Bin emission standard;

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

   Inserted: (III) at least 125 percent of the base year city fuel economy for the weight class of the vehicle.

   Inserted: (D) Engineering integration costs.--The term "engineering integration costs" includes the cost of engineering tasks relating to--

   Inserted: (i) incorporating qualifying components into the design of advanced technology vehicles; and

   Inserted: (ii) designing new tooling and equipment for production facilities that produce qualifying components or advanced technology vehicles.

   Inserted: (E) Hybrid motor vehicle.--The term "hybrid motor vehicle" means a motor vehicle that draws propulsion energy from onboard sources of stored energy that are--

   Inserted: (i) an internal combustion or heat engine using combustible fuel; and

   Inserted: (ii) a rechargeable energy storage system.

   Inserted: (F) Qualifying components.--The term "qualifying components" means components that the Secretary of Energy determines to be--

   Inserted: (i) specially designed for advanced technology vehicles; and

   Inserted: (ii) installed for the purpose of meeting the performance requirements of advanced technology vehicles.

   Inserted: (2) Manufacturer facility conversion awards.--The Secretary of Energy shall provide facility conversion funding awards under this subsection to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of--

   Inserted: (A) reequipping or expanding an existing manufacturing facility in the United States to produce--

   Inserted: (i) qualifying advanced technology vehicles; or

   Inserted: (ii) qualifying components; and

   Inserted: (B) engineering integration performed in the United States of qualifying vehicles and qualifying components.

   Inserted: (3) Period of availability.--An award under paragraph (2) shall apply to--

   Inserted: (A) facilities and equipment placed in service before December 30, 2017; and

   Inserted: (B) engineering integration costs incurred during the period beginning on the date of enactment of this Act and ending on December 30, 2017.

   Inserted: (4) Improvement.--The Secretary of Energy shall issue regulations that require that, in order for an automobile manufacturer to be eligible for an award under this subsection during a particular year, the adjusted average fuel economy of the manufacturer for light duty vehicles produced by the manufacturer during the most recent year for which data are available shall be not less than the average fuel economy for all light duty motor vehicles of the manufacturer for model year 2002.

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