[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2830 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 2830
To amend the automobile fuel economy provisions of title 49, United
States Code, to reform the setting and calculation of fuel economy
standards for passenger automobiles, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 18, 2006
Mr. Lott (for himself and Mr. Pryor) introduced the following bill;
which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To amend the automobile fuel economy provisions of title 49, United
States Code, to reform the setting and calculation of fuel economy
standards for passenger automobiles, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Corporate Average Fuel Economy
Reform Act of 2006''.
SEC. 2. CAFE STANDARDS FOR PASSENGER AUTOMOBILES.
(a) Average Fuel Economy Standards for Automobiles.--Section 32902
of title 49, United States Code, is amended--
(1) by striking subsections (b) and (c) and inserting the
following:
``(b) Passenger Automobiles.--
``(1) In general.--At least 18 months before the beginning
of each model year, the Secretary of Transportation shall
prescribe by regulation average fuel economy standards for
passenger automobiles manufactured by a manufacturer in that
model year. Each standard shall be the maximum feasible average
fuel economy level that the Secretary decides the manufacturers
can achieve in that model year. The Secretary may prescribe
separate standards for different classes of passenger
automobiles.
``(2) Minimum standard.--In prescribing a standard under
paragraph (1), the Secretary shall ensure that no
manufacturer's standard for a particular model year is less
than the greater of--
``(A) the standard in effect on the date of
enactment of the Corporate Average Fuel Economy Reform
Act of 2006; or
``(B) a standard established in accordance with the
requirement of section 5(c)(2) of that Act.
``(c) Flexibility of Authority.--
``(1) In general.--The authority of the Secretary to
prescribe by regulation average fuel economy standards for
automobiles under this section includes the authority to
prescribe standards based on one or more vehicle attributes
that relate to fuel economy, and to express the standards in
the form of a mathematical function. The Secretary may issue a
regulation prescribing standards for one or more model years.
``(2) Required lead-time.--When the Secretary prescribes an
amendment to a standard under this section that makes an
average fuel economy standard more stringent, the Secretary
shall prescribe the amendment at least 18 months before the
beginning of the model year to which the amendment applies.
``(3) No across-the-board increases.--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 automobile classes or categories already
achieved in a model year by a manufacturer.'';
(2) by inserting ``motor vehicle safety, emissions,'' in
subsection (f) after ``economy,'';
(3) by striking ``energy.'' in subsection (f) and inserting
``energy and reduce its dependence on oil for
transportation.'';
(4) by striking subsection (j) and inserting the following:
``(j) Comments From DOE and EPA.--
``(1) Notice of proposed rulemaking.--Before issuing a
notice proposing to prescribe or amend an average fuel economy
standard under subsection (a), (b), or (g), the Secretary of
Transportation shall give the Secretary of Energy and the
Administrator of the Environmental Protection Agency at least
10 days to comment on the proposed standard or amendment. If
the Secretary of Energy or the Administrator concludes that the
proposed standard or amendment would adversely affect the
conservation goals of the Department of Energy or the
environmental protection goals of the Environmental Protection
Agency, respectively, the Secretary or the Administrator may
provide written comments to the Secretary of Transportation
about the impact of the proposed standard or amendment on those
goals. To the extent that the Secretary of Transportation does
not revise a proposed standard or amendment to take into
account the comments, if any, the Secretary shall include the
comments in the notice.
``(2) Notice of final rule.--Before taking final action on
a standard or an exemption from a standard under this section,
the Secretary of Transportation shall notify the Secretary of
Energy and the Administrator of the Environmental Protection
Agency and provide them a reasonable time to comment on the
standard or exemption.''; and
(5) by adding at the end thereof the following:
``(k) Costs-Benefits.--The Secretary of Transportation may not
prescribe an average fuel economy standard under this section that
imposes marginal costs that exceed marginal benefits, as determined at
the time any change in the standard is promulgated.''.
(b) Exemption Criteria.--The first sentence of section
32904(b)(6)(B) of title 49, United States Code, is amended--
(1) by striking ``exemption would result in reduced'' and
inserting ``manufacturer requesting the exemption will
transfer'';
(2) by striking ``in the United States'' and inserting
``from the United States''; and
(3) by inserting ``because of the grant of the exemption''
after ``manufacturing''.
(c) Conforming Amendments.--
(1) Section 32902 of title 49, United States Code, is
amended--
(A) by striking ``or (c)'' in subsection (d)(1);
(B) by striking ``(c),'' in subsection (e)(2);
(C) by striking ``subsection (a) or (d)'' each
place it appears in subsection (g)(1) and inserting
``subsection (a), (b), or (d)'';
(D) by striking ``(1) The'' in subsection (g)(1)
and inserting ``The'';
(E) by striking subsection (g)(2); and
(F) by striking ``(c),'' in subsection (h) and
inserting ``(b),''.
(2) Section 32903 of such title is amended by striking
``section 32902(b)-(d)'' each place it appears and inserting
``subsection (b) or (d) of section 32902''.
(3) Section 32904(a)(1)(B) of such title is amended by
striking ``section 32902(b)-(d)'' and inserting ``subsection
(b) or (d) of section 32902''.
(4) The first sentence of section 32909(b) of such title is
amended to read ``The petition must be filed not later than 59
days after the regulation is prescribed.''.
(5) Section 32917(b)(1)(B) of such title is amended by
striking ``or (c)''.
SEC. 3. USE OF EARNED CREDITS.
Section 32903 of title 49, United States Code, is amended--
(1) by striking ``3 consecutive model years'' in subsection
(a)(1) and subsection (a)(2) and inserting ``5 consecutive
model years'';
(2) by striking ``3 model years'' in subsection (b)(2) and
inserting ``5 model years'';
(3) by redesignating subsection (f) as subsection (g); and
(4) by inserting after subsection (e) the following:
``(f) Credit Transfers.--The Secretary of Transportation may permit
by regulation, on such terms and conditions as the Secretary may
specify, a manufacturer of automobiles that earns credits to transfer
such credits attributable to one of the following production segments
in a model year to apply those credits in that model year to the other
production segment:
``(1) Passenger-automobile production.
``(2) Non-passenger-automobile production.
In promulgating such a regulation, the Secretary shall take into
consideration the potential effect of such transfers on creating
incentives for manufacturers to produce more efficient vehicles and
domestic automotive employment.''.
SEC. 4. 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) Research and Development and Use of Civil Penalties.--
``(1) All civil penalties assessed by the Secretary or by a
Court shall be credited to an account at the Department of
Transportation and shall be available to the Secretary to carry
out the research program described in paragraph (2).
``(2) The Secretary shall carry out a program of research
and development into fuel saving automotive technologies and to
support rulemaking related to the corporate average fuel
economy program.''.
SEC. 5. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), this Act,
and the amendments made by this Act, take effect on the date of
enactment of this Act.
(b) Transition for Passenger Automobile Standard.--Notwithstanding
subsection (a), and except as provided in subsection (c)(2), until the
effective date of a standard for passenger automobiles that is issued
under the authority of section 32902(b) of title 49, United States
Code, as amended by this Act, the standard or standards in place for
passenger automobiles under the authority of section 32902 of that
title, as that section was in effect on the day before the date of
enactment of this Act, shall remain in effect.
(c) Rulemaking.--
(1) Initiation of rulemaking under amended law.--Within 60
days after the date of enactment of this Act, the Secretary of
Transportation shall initiate a rulemaking for passenger
automobiles under section 32902(b) of title 49, United States
Code, as amended by this Act.
(2) Amendment of existing standard.--Until the Secretary
issues a final rule pursuant to the rulemaking initiated in
accordance with paragraph (1), the Secretary shall amend the
average fuel economy standard prescribed pursuant to section
32092(b) of title 49, United States Code, with respect to
passenger automobiles in model years to which the standard
adopted by such final rule does not apply.D23/
<all>