[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 183 Introduced in Senate (IS)]
1st Session
S. 183
To require the establishment of a corporate average fuel economy
standard for passenger automobiles of 40 miles per gallon by 2017, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 4, 2007
Mr. Stevens introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To require the establishment of a corporate average fuel economy
standard for passenger automobiles of 40 miles per gallon by 2017, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Improved Passenger
Automobile Fuel Economy Act of 2007''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--40 MPG STANDARD BY 2017
Sec. 101. Cafe standards for passenger automobiles.
Sec. 102. Fuel economy standard credits.
Sec. 103. Authorization of appropriations.
Sec. 104. Effective date.
TITLE II--MARKET-BASED INITIATIVES FOR GREENHOUSE GAS REDUCTION
Sec. 201. Market-based initiatives.
Sec. 202. Implementing panel.
Sec. 203. Definitions.
TITLE I--40 MPG STANDARD BY 2017
SEC. 101. 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.--Except as provided in paragraph
(3), 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 Improved Passenger Automobile Fuel
Economy Act of 2007; or
``(B) a standard established in accordance with the
requirement of section 104(c)(2) of that Act.
``(3) 40 miles per gallon standard for model year 2017.--
The Secretary shall prescribe an average fuel economy standard
for passenger automobiles manufactured by a manufacturer in
model year 2017 of 40 miles per gallon. If the Secretary
determines that more than 1 manufacturer is not reasonably
expected to achieve that standard, the Secretary shall notify
the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Energy and
Commerce of that determination.
``(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) 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. 102. FUEL ECONOMY STANDARD CREDITS.
(a) In General.--Section 32903 of title 49, United States Code, is
amended by striking the second sentence of subsection (a) and inserting
``The credits--
``(1) may be applied to any of the 3 model years
immediately following the model year for which the credits are
earned; or
``(2) transferred to the registry established under section
201 of the Improved Passenger Automobile Fuel Economy Act of
2007.''.
(b) Greenhouse Gas Credits Applied to CAFE Standards.--Section
32903 of title 49, United States Code, is amended by adding at the end
the following:
``(g) Greenhouse Gas Credits.--
``(1) In general.--A manufacturer may apply credits
purchased through the registry established by section 201 of
the Improved Passenger Automobile Fuel Economy Act of 2007
toward any model year after model year 2010 under subsection
(d), subsection (e), or both.
``(2) Limitation.--A manufacturer may not use credits
purchased through the registry to offset more than 10 percent
of the fuel economy standard applicable to any model year.''.
SEC. 103. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary of
Transportation such sums as may be necessary to carry out this title
and chapter 329 of title 49, United States Code, as amended by this
title.
SEC. 104. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), this title,
and the amendments made by this title, 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.
TITLE II--MARKET-BASED INITIATIVES FOR GREENHOUSE GAS REDUCTION
SEC. 201. MARKET-BASED INITIATIVES.
(a) Establishment of Registry for Voluntary Trading Systems.--The
Secretary of Commerce shall establish a national registry system for
greenhouse gas trading among industry under which emission reductions
from the applicable baseline are assigned unique identifying numerical
codes by the registry. Participation in the registry is voluntary. Any
entity conducting business in the United States may register its
emission results, including emissions generated outside of the United
States, on an entity-wide basis with the registry, and may utilize the
services of the registry.
(b) Purposes.--The purposes of the national registry are--
(1) to encourage voluntary actions to reduce greenhouse gas
emissions and increase energy efficiency, including increasing
the fuel economy of passenger automobiles and light trucks and
reducing the reliance by United States markets on petroleum
produced outside the United States used to provide vehicular
fuel;
(2) to enable participating entities to record voluntary
greenhouse gas emissions reductions; in a consistent format
that is supported by third party verification;
(3) to encourage participants involved in existing
partnerships to be able to trade emissions reductions among
partnerships;
(4) to further recognize, publicize, and promote
registrants making voluntary and mandatory reductions;
(5) to recruit more participants in the program; and
(6) to help various entities in the nation establish
emissions baselines.
(c) Functions.--The national registry shall carry out the following
functions:
(1) Referrals.--Provide referrals to approved providers for
advice on--
(A) designing programs to establish emissions
baselines and to monitor and track greenhouse gas
emissions; and
(B) establishing emissions reduction goals based on
international best practices for specific industries
and economic sectors.
(2) Uniform reporting format.--Adopt a uniform format for
reporting emissions baselines and reductions established
through--
(A) the Director of the National Institute of
Standards and Technology for greenhouse gas baselines
and reductions generally; and
(B) the Secretary of Transportation for credits
under section 32903 of title 49, United States Code.
(3) Record maintenance.--Maintain a record of all emission
baselines and reductions verified by qualified independent
auditors.
(4) Encourage participation.--Encourage organizations from
various sectors to monitor emissions, establish baselines and
reduction targets, and implement efficiency improvement and
renewable energy programs to achieve those targets.
(5) Public awareness.--Recognize, publicize, and promote
participants that--
(A) commit to monitor their emissions and set
reduction targets;
(B) establish emission baselines; and
(C) report on the amount of progress made on their
annual emissions.
(d) Transfer of Reductions.--The registry shall--
(1) allow for the transfer of ownership of any reductions
realized in accordance with the program; and
(2) require that the registry be notified of any such
transfer within 30 days after the transfer is effected.
(e) Future Considerations.--Any reductions achieved under this
program shall be credited against any future mandatory greenhouse gas
reductions required by the government. Final approval of the amount and
value of credits shall be determined by the agency responsible for the
implementation of the mandatory greenhouse gas emission reduction
program, except that credits under section 32903 of title 49, United
States Code, shall be determined by the Secretary of Transportation.
The Secretary of Commerce shall by rule establish an appeals process,
that may incorporate an arbitration option, for resolving any dispute
arising out of such a determination made by that agency.
(f) CAFE Standards Credits.--The Secretary of Transportation shall
work with the Secretary of Commerce and the implementing panel
established by section 202 to determine the equivalency of credits
earned under section 32903 of title 49, United States Code, for
inclusion in the registry. The Secretary shall by rule establish an
appeals process, that may incorporate an arbitration option, for
resolving any dispute arising out of such a determination.
SEC. 202. IMPLEMENTING PANEL.
(a) Establishment.--There is established within the Department of
Commerce an implementing panel.
(b) Composition.--The panel shall consist of--
(1) the Secretary of Commerce or the Secretary's designee,
who shall serve as Chairperson;
(2) the Secretary of Transportation or the Secretary's
designee; and
(3) 1 expert in the field of greenhouse gas emissions
reduction, certification, or trading from each of the following
agencies--
(A) the Department of Energy;
(B) the Environmental Protection Agency;
(C) the Department of Agriculture;
(D) the National Aeronautics and Space
Administration;
(E) the Department of Commerce; and
(F) the Department of Transportation.
(c) Experts and Consultants.--Any member of the panel may secure
the services of experts and consultants in accordance with the
provisions of section 3109 of title 5, United States Code, for
greenhouse gas reduction, certification, and trading experts in the
private and non-profit sectors and may also utilize any grant,
contract, cooperative agreement, or other arrangement authorized by law
to carry out its activities under this subsection.
(d) Duties.--The panel shall--
(1) implement and oversee the implementation of this
section;
(2) promulgate--
(A) standards for certification of registries and
operation of certified registries; and
(B) standards for measurement, verification, and
recording of greenhouse gas emissions and greenhouse
gas emission reductions by certified registries;
(3) maintain, and make available to the public, a list of
certified registries; and
(4) issue rulemakings on standards for measuring,
verifying, and recording greenhouse gas emissions and
greenhouse gas emission reductions proposed to the panel by
certified registries, through a standard process of issuing a
proposed rule, taking public comment for no less than 30 days,
then finalizing regulations to implement this act, which will
provide for recognizing new forms of acceptable greenhouse gas
reduction certification procedures.
(e) Certification and Operation Standards.--The standards
promulgated by the panel shall include--
(1) standards for ensuring that certified registries do not
have any conflicts of interest, including standards that
prohibit a certified registry from--
(A) owning greenhouse gas emission reductions
recorded in any certified registry; or
(B) receiving compensation in the form of a
commission where sources receive money for the total
number of tons certified;
(2) standards for authorizing certified registries to enter
into agreements with for-profit persons engaged in trading of
greenhouse gas emission reductions, subject to paragraph (1);
and
(3) such other standards for certification of registries
and operation of certified registries as the panel determines
to be appropriate.
(f) Measurement, Verification, and Recording Standards.--The
standards promulgated by the panel shall provide for, in the case of
certified registries--
(1) ensuring that certified registries accurately measure,
verify, and record