Advanced technology vehicles manufacturing incentive program

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§ 17013. 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—
(A) 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;
(B) 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) at least 125 percent of the average base
year combined fuel economy for vehicles
with substantially similar attributes.
(2) Combined fuel economy
The term ‘‘combined fuel economy’’ means—
(A) the combined city/highway miles per
gallon values, as reported in accordance
with section 32904 of title 49; and
(B) in the case of an electric drive vehicle
with the ability to recharge from an offboard source, the reported mileage, as determined in a manner consistent with the Society of Automotive Engineers recommended
practice for that configuration or a similar
practice recommended by the Secretary.
(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
developing manufacturing processes and material suppliers 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.
(5) Ultra efficient vehicle
The term ‘‘ultra efficient vehicle’’ means a
fully closed compartment vehicle designed to
carry at least 2 adult passengers that
achieves—
(A) at least 75 miles per gallon while operating on gasoline or diesel fuel;
(B) at least 75 miles per gallon equivalent
while operating as a hybrid electric-gasoline
or electric-diesel vehicle; or
(C) at least 75 miles per gallon equivalent
while operating as a fully electric vehicle.
(b) Advanced vehicles manufacturing facility
The Secretary shall provide facility funding
awards under this section to automobile manu-

§ 17013

facturers, 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—
(A) qualifying advanced technology vehicles;
(B) qualifying components; or
(C) ultra efficient vehicles; and
(2) engineering integration performed in the
United States of qualifying vehicles, ultra efficient vehicles, and qualifying components.
(c) Period of availability
An award under subsection (b) shall apply to—
(1) facilities and equipment placed in service
before December 30, 2020; and
(2) engineering integration costs incurred
during the period beginning on December 19,
2007, and ending on December 30, 2020.
(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). 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.
(2) Application
An applicant for a loan under this subsection
shall submit to the Secretary an application
at such time, in such manner, and containing
such information as the Secretary may require, including a written assurance that—
(A) all laborers and mechanics employed
by contractors or subcontractors during construction, alteration, or repair that is financed, in whole or in part, by a loan under
this section shall be paid wages at rates not
less than those prevailing on similar construction in the locality, as determined by
the Secretary of Labor in accordance with
sections 3141–3144, 3146, and 3147 of title 40;
and
(B) the Secretary of Labor shall, with respect to the labor standards described in this
paragraph, have the authority and functions
set forth in Reorganization Plan Numbered
14 of 1950 (5 U.S.C. App.) and section 3145 of
title 40.
(3) Selection of eligible projects
The Secretary shall select eligible projects
to receive loans under this subsection in cases
in which, as determined by the Secretary, the
award recipient—
(A) is financially viable without the receipt of additional Federal funding associated with the proposed project;
(B) will provide sufficient information to
the Secretary for the Secretary to ensure
that the qualified investment is expended efficiently and effectively; and

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(C) has met such other criteria as may be
established and published by the Secretary.
(4) Rates, terms, and repayment of loans
A loan provided under this subsection—
(A) shall have an interest rate that, as of
the date on which the loan is made, is equal
to the cost of funds to the Department of the
Treasury for obligations of comparable maturity;
(B) shall have a term equal to the lesser
of—
(i) the projected life, in years, of the eligible project to be carried out using funds
from the loan, as determined by the Secretary; and 1
(ii) 25 years;
(C) may be subject to a deferral in repayment for not more than 5 years after the
date on which the eligible project carried
out using funds from the loan first begins
operations, as determined by the Secretary;
and
(D) shall be made by the Federal Financing Bank.
(e) Improvement
Not later than 60 days after September 30,
2008, the Secretary shall promulgate an interim
final rule establishing regulations that the Secretary deems necessary to administer this section and any loans made by the Secretary pursuant to this section. Such interim final rule shall
require that, in order for an automobile manufacturer to be eligible for an award or loan
under this section 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 vehicles of the manufacturer for model year 2005. In
order to determine fuel economy baselines for
eligibility of a new manufacturer or a manufacturer that has not produced previously produced
equivalent vehicles, the Secretary may substitute industry averages.
(f) Fees
Administrative costs shall be no more than
$100,000 or 10 basis point 2 of the loan.
(g) Priority
The Secretary shall, in making awards or
loans to those manufacturers that have existing
facilities, give priority to those facilities that
are oldest or have been in existence for at least
20 years or are utilized primarily for the manufacture of ultra efficient vehicles. Such facilities
can currently be sitting idle.
(h) Set aside for small automobile 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, or components of automobiles.
1 So
2 So

in original. Probably should be ‘‘or’’.
in original. Probably should be ‘‘points’’.

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(2) Set aside
Of the amount of funds that are used to provide awards for each fiscal year under subsection (b), 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.
(j) Appointment and pay of personnel
(1) The Secretary may use direct hiring authority pursuant to section 3304(a)(3) of title 5 to
appoint such professional and administrative
personnel as the Secretary deems necessary to
the discharge of the Secretary’s functions under
this section.
(2) The rate of pay for a person appointed pursuant to paragraph (1) shall not exceed the maximum rate payable for GS-15 of the General
Schedule under chapter 53 such 3 title 5.
(3) The Secretary may retain such consultants
as the Secretary deems necessary to the discharge of the functions required by this section,
pursuant to section 1901 of title 41.
(Pub. L. 110–140, title I, § 136, Dec. 19, 2007, 121
Stat. 1514; Pub. L. 110–329, div. A, § 129(c), Sept.
30, 2008, 122 Stat. 3578; Pub. L. 111–85, title III,
§ 312(a), Oct. 28, 2009, 123 Stat. 2874.)
REFERENCES IN TEXT
The Clean Air Act, referred to in subsec. (a)(1)(B), is
act July 14, 1955, ch. 360, 69 Stat. 322, which is classified
generally to chapter 85 (§ 7401 et seq.) of this title. For
complete classification of this Act to the Code, see
Short Title note set out under section 7401 of this title
and Tables.
Reorganization Plan Numbered 14 of 1950, referred to
in subsec. (d)(2)(B), is set out in the Appendix to Title
5, Government Organization and Employees.
CODIFICATION
In subsec. (j)(3), ‘‘section 1901 of title 41’’ substituted
for ‘‘section 31 of the Office of Federal Procurement
Policy Act (41 U.S.C. 427)’’ on authority of Pub. L.
111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
AMENDMENTS
2009—Subsec. (a)(1). Pub. L. 111–85, § 312(a)(1)(A), inserted ‘‘an ultra efficient vehicle or’’ after ‘‘means’’ in
introductory provisions.
Subsec. (a)(5). Pub. L. 111–85, § 312(a)(1)(B), added par.
(5).
Subsec. (b). Pub. L. 111–85, § 312(a)(2)(A), inserted
‘‘, ultra efficient vehicle manufacturers,’’ after ‘‘automobile manufacturers’’ in introductory provisions.
Subsec. (b)(1)(C). Pub. L. 111–85, § 312(a)(2)(B), added
subpar. (C).
Subsec. (b)(2). Pub. L. 111–85, § 312(a)(2)(C), inserted
‘‘, ultra efficient vehicles,’’ after ‘‘qualifying vehicles’’.
Subsec. (g). Pub. L. 111–85, § 312(a)(3), inserted ‘‘or are
utilized primarily for the manufacture of ultra efficient
vehicles’’ after ‘‘20 years’’.
Subsec. (h)(1)(B). Pub. L. 111–85, § 312(a)(4), substituted ‘‘ultra efficient vehicles, automobiles,’’ for
‘‘automobiles’’.
2008—Subsec. (d)(1). Pub. L. 110–329, § 129(c)(1), inserted at end ‘‘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
3 So

in original. Probably should be ‘‘of such’’.

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interest. The full credit subsidy shall be paid by the
Secretary using appropriated funds.’’
Subsec. (e). Pub. L. 110–329, § 129(c)(2), substituted
‘‘Not later than 60 days after September 30, 2008, the
Secretary shall promulgate an interim final rule establishing regulations that the Secretary deems necessary
to administer this section and any loans made by the
Secretary pursuant to this section. Such interim final
rule shall require that,’’ for ‘‘The Secretary shall issue
regulations that require that,’’.
Subsec. (j). Pub. L. 110–329, § 129(c)(3), added subsec.
(j).
RECONSIDERATION OF PRIOR APPLICATIONS
Pub. L. 111–85, title III, § 312(b), Oct. 28, 2009, 123 Stat.
2875, provided that: ‘‘The Secretary of Energy shall reconsider applications for assistance under section 136 of
the Energy Independence and Security Act of 2007 (42
U.S.C. 17013) that were—
‘‘(1) timely filed under that section before January
1, 2009;
‘‘(2) rejected on the basis that the vehicles to which
the proposal related were not advanced technology
vehicles; and
‘‘(3) related to ultra efficient vehicles.’’

SUBCHAPTER
II—ENERGY
SECURITY
THROUGH INCREASED PRODUCTION OF
BIOFUELS
PART A—RENEWABLE FUEL STANDARD
§ 17021. Biomass-based diesel and biodiesel labeling
(a) In general
Each retail diesel fuel pump shall be labeled in
a manner that informs consumers of the percent
of biomass-based diesel or biodiesel that is contained in the biomass-based diesel blend or biodiesel blend that is offered for sale, as determined by the Federal Trade Commission.
(b) Labeling requirements
Not later than 180 days after December 19,
2007, the Federal Trade Commission shall promulgate biodiesel labeling requirements as follows:
(1) Biomass-based diesel blends or biodiesel
blends that contain less than or equal to 5 percent biomass-based diesel or biodiesel by volume and that meet ASTM D975 diesel specifications shall not require any additional labels.
(2) Biomass-based diesel blends or biodiesel
blends that contain more than 5 percent biomass-based diesel or biodiesel by volume but
not more than 20 percent by volume shall be
labeled ‘‘contains biomass-based diesel or biodiesel in quantities between 5 percent and 20
percent’’.
(3) Biomass-based diesel or biodiesel blends
that contain more than 20 percent biomass
based or biodiesel by volume shall be labeled
‘‘contains more than 20 percent biomass-based
diesel or biodiesel’’.
(c) Definitions
In this section:
(1) ASTM
The term ‘‘ASTM’’ means the American Society of Testing and Materials.
(2) Biomass-based diesel
The term ‘‘biomass-based diesel’’ means biodiesel as defined in section 13220(f) of this
title.

(3) Biodiesel
The term ‘‘biodiesel’’ means the monoalkyl
esters of long chain fatty acids derived from
plant or animal matter that meet—
(A) the registration requirements for fuels
and fuel additives under this section; and
(B) the requirements of ASTM standard
D6751.
(4) Biomass-based diesel and biodiesel blends
The terms ‘‘biomass-based diesel blend’’ and
‘‘biodiesel blend’’ means a blend of ‘‘biomassbased diesel’’ or ‘‘biodiesel’’ fuel that is blended with petroleum-based diesel fuel.
(Pub. L. 110–140, title II, § 205, Dec. 19, 2007, 121
Stat. 1529.)
§ 17022. Grants
biofuels

for

production

of

advanced

(a) In general
The Secretary of Energy shall establish a
grant program to encourage the production of
advanced biofuels.
(b) Requirements and priority
In making grants under this section, the Secretary—
(1) shall make awards to the proposals for
advanced biofuels with the greatest reduction
in lifecycle greenhouse gas emissions compared to the comparable motor vehicle fuel
lifecycle emissions during calendar year 2005;
and
(2) shall not make an award to a project that
does not achieve at least an 80 percent reduction in such lifecycle greenhouse gas emissions.
(c) Authorization of appropriations
There is authorized to be appropriated to
carry out this section $500,000,000 for the period
of fiscal years 2008 through 2015.
(Pub. L. 110–140, title II, § 207, Dec. 19, 2007, 121
Stat. 1531.)
PART B—BIOFUELS RESEARCH AND
DEVELOPMENT
§ 17031. Biodiesel
(a) Biodiesel study
Not later than 180 days after December 19,
2007, the Secretary, in consultation with the Administrator of the Environmental Protection
Agency, shall submit to Congress a report on
any research and development challenges inherent in increasing the proportion of diesel fuel
sold in the United States that is biodiesel.
(b) Material for the establishment of standards
The Director of the National Institute of
Standards and Technology, in consultation with
the Secretary, shall make publicly available the
physical property data and characterization of
biodiesel and other biofuels as appropriate.
(Pub. L. 110–140, title II, § 221, Dec. 19, 2007, 121
Stat. 1533.)
§ 17032. Grants for biofuel production research
and development in certain States
(a) In general
The Secretary shall provide grants to eligible
entities for research, development, demonstra-