Summary of Transportation Provisions in EISA 2007
Title 1: Energy Security Through Improved Vehicle Fuel Economy
Subtitle A- Increase Corporate Average Fuel Economy Standards
Section 101: Short Title
This section designates Subtitle A as the ‘Ten-in-Ten Fuel Economy Act’.
Section 102-103: Average Fuel Economy Standards for Automobiles and Certain Other Vehicles
This section directs DOT to set the maximum feasible CAFE standards for cars and separate standards for light trucks for 2011-2030, achieving a total fleet average fuel economy of at least 35 mpg by 2020. There also is a backstop standard for domestic cars of each manufacturer of 27.5 mpg and 92% of industry average fuel economy.
Standards are to be set as a function of vehicle attributes (such as size) and include passenger vehicles (not heavier trucks) up to 10,000 lbs.
Section 104: Credit Trading Program
This section allows DOT to establish a CAFÉ credit trading program between manufacturers, and allows manufacturers to carry forward earned credits for 5 rather than 3 years. In addition, automakers would have the ability to borrow against their future fuel economy gains for up to three years
Also allows a credit trading program between fleets of the same manufacturer within certain limits. The maximum increase in transferred credits is 1 mpg for model years 2011-13, 1.5 mpg for model years 2014-17, and 2 mpg for model year 2018 and subsequent model years.
Section 105: Consumer Information
This section directs DOT to modify vehicle labels with a rating based on fuel economy and emissions, and to designate vehicles that can run on alternative fuel.
Section 106: Continued Applicability of Existing Standards
This section makes clear that no amendments to this subtitle will affect the application of current average fuel economy standards for automobiles manufactured prior to model year 2011.
Section 107: National Academy of Sciences Studies
This section directs the Secretary of Transportation to work with the National Academy of Sciences to develop a report that evaluates vehicle fuel economy standards through assessing the automotive technologies and costs to reflect developments since the Academy’s 2002 report; the report shall contain an analysis of existing and potential technologies that may be practicable; an analysis of how these technologies can be integrated; and an assessment of how these technologies can be used to meet the new fuel economy standards. Directs the Academy to update the report every five years beginning in 2025.
Section 108: National Academy of Sciences Study of Medium-Duty and Heavy-Duty Truck Fuel Economy
This section directs the Secretary of Transportation to work with the National Academy of Sciences to develop a report that evaluates vehicle fuel economy standards for medium-duty and heavy-duty trucks.
Section 109: Extension of Flexible Fuel Vehicle Credit Program
This section extends the flexible fuel vehicle credit program up to 1.2 mpg for flexible fuel vehicles, with a slow phase out from 2015-2020.
Section 110: Periodic Review of Accuracy of Fuel Economy Labeling Procedures
This section directs EPA to reevaluate the fuel economy tests used for labels and public information every 5 years.
Section 111: Consumer Tire Information
This section directs DOT to establish a tire fuel efficiency rating system, test method, and consumer information program
Section 112: Use of Civil Penalties for Research and Development
This section stipulates that fines, penalties, and other funds obtained through CAFÉ enforcement actions be used by DOT half for rulemaking and half for grants for the upgrading existing manufacturing plants to produce advanced vehicles.
Section 113: Exemption From Separate Calculation Requirement
This section repeals law that allowed manufacturers to file a petition for exemption from the requirement of separate calculations through EPA. Exemptions provided under this law will remain in effect through model year 2013 and allows any manufacturer holding an exemption to accrue and use credits for exceeding average fuel economy standards.
Subtitle B- Improved Vehicle Technology
Section 131: Transportation Electrification
This section authorizes $90 million per year in 2008-2012 for DOE grants for plug-in electric drive vehicles, $95 million per year in 2008-12 for electric transportation grants and education program.
Section 132: Domestic Manufacturing Conversion Grant Program
This section modifies a grant program authorized in the Energy Policy Act of 2005 to include production of parts for hybrid and advanced diesel vehicles.
Section 133: Inclusion of Electric Drive In Energy Policy Act of 1992
This section allows alternative fuel providers and state fleets to use hybrid electric vehicles and other oil-saving technologies to comply with Energy Policy Act of 1992 alternative fuel vehicle fleet requirements.
Section 134: Loan Guarantees for Fuel-Efficient Automobile Parts Manufacturers
This section makes facilities who manufacture fuel-efficiency vehicles or parts, including electric drive and advanced diesel, eligible for loan guarantees under Title XVII of Energy Policy Act of 2005.
Section 135: Advanced Battery Loan Guarantee Program
This section authorizes DOE to establish a program to provide loan guarantees for manufacturing facilities that manufacture advanced vehicle batteries and battery systems, including advanced lithium ion batteries and hybrid electrical system and component manufacturers and software designers.
Section 136: Advanced Technology Vehicles Manufacturing Incentive Program
This section authorizes DOE awards of up to 30% of costs for manufacturing facilities of clean and efficient vehicles and their parts. Automakers are eligible only if their average fuel economy is no worse than in 2005.
Subtitle C- Federal Vehicle Fleets
Section 141- Federal Vehicle Fleets
This section requires federal agencies and Congress to purchase light- and medium-duty vehicles with low greenhouse gas emissions, based on EPA guidance and state standards. Allows for exceptions if no vehicle meets the needs of the agency of if the agency can reduce its oil consumption in a more cost-effective way.
Section 142- Federal Fleet Conservation Requirements
This section directs DOE to issue regulations requiring federal fleets to reduce oil use by 20% and increase alternative fuel use by 10% from a 2005 baseline by October 1, 2015, and to include a requirement to purchase energy-efficient replacement tires.
Title 2: Energy Security Through Increased Production of Biofuels
Subtitle A- Renewable Fuel Standard
Section 201-202- Renewable Fuel Standard
This section would expand the renewable fuels standard to 9 billion gallons in 2008, with an increase of up to 36 billion gallons by 2022. Also promotes the development of cellulose ethanol by requiring 21 billion gallons of advanced biofuels by 2022.
Section 203- Study of Impact on Renewable Fuel Standard
This section directs the Secretary of Energy, with the Secretary of Agriculture, and the Administrator of the EPA, to arrange with the National Academy of Sciences to conduct a study to assess the impact Clean Air Act requirements on industry related to the production of feed grains, livestock, food, forest products, and energy. This study shall include participation from industry representatives.
Section 204- Environmental and Resource Conservation Impacts
This section requires that after 3 years and every 3 years after, the EPA Administrator, the Secretary of Agriculture, and the Secretary of Energy shall report to Congress on the impact of the Clean Air Act requirements related to environmental issues, resource conservation issues, and the growth and use of cultivated invasive and noxious plants.
Section 205- Biomass Based Diesel and Biodiesel Labeling
This section requires that diesel fuel pumps be labeled in a manner that informs consumers of the percent of biomass-based diesel or biodiesel that is contained in the blend offered for sale.
Section 206- Study of Credits for Use of Renewable Electricity in Electric Vehicles
This section requires the EPA to conduct a study on the feasibility of issuing credits to electric vehicles powered by electricity produced from renewable energy sources.
Section 207- Grants for Production of Advanced Biofuels
This section authorizes $500 million for DOE to establish a grant program to encourage the production of advanced biofuels. These grants are to be awarded for proposals for advanced biofuels with the greatest reduction in lifecycle greenhouse gas emissions compared to 2005 emissions, and grants are not allowed for projects that do not achieve at least an 80 percent reduction in such lifecycle greenhouse gas emissions.
Section 208- Integrated Consideration of Water Quality in Determinations on Fuels and Fuel Additives
This section modifies provisions of the Clean Air Act to include water pollution by which the Administrator may regulate control or prohibit the manufacturing of any fuel or fuel additive for use that may contribute or cause danger to the public health or welfare.
Section 209- Anti-Backsliding
This section requires the EPA, within 3 years, to promulgate fuel regulations to implement appropriate measures to mitigate, to the greatest extent achievable, any adverse impacts on air quality. These measures are dependant upon the results of an EPA study required by this section.
Section 210- Effective Date, Savings Provision, and Transition Rules
This section stipulates that for 2008, transportation fuel sold in the United States and produced from facilities that begin construction after enactment shall be treated as renewable fuel within the Clean Air Act, only if it achieves at least 20 percent reduction in lifecycle greenhouse gas emissions compared to baseline lifecycle greenhouse gas emissions.
For 2008-2009, any ethanol plant that is fired with natural gas, biomass, or any combination is also deemed to be in compliance with the 20 percent reduction requirement.
Subtitle B- Biofuels Research and Development
Section 221- Biodiesel
This section requires DOE, with the EPA to submit a report to Congress on any research and development challenges inherent in increasing the proportion of diesel fuel sold in United States that is biodiesel.
Section 222- Biogas
This section requires DOE, with the EPA to submit a report to Congress on any research and development challenges inherent in increasing the amount of transportation fuels sold in United States that are fueled with biogas or a blend of biogas and natural gas.
Section 223- Grants for Biofuel Production Research and Development in Certain States
This section authorizes $25 million every year for FY08-FY10 for the DOE to provide grants to eligible entities for research, development, demonstration, and commercial application of biofuel production technologies in States with low rates of ethanol production, including low rates of production of cellulose biomass ethanol.
Section 224- Biorefinery Energy Efficiency
This section requires DOE to establish a program of research, development, demonstration, and commercial application for increasing energy efficiency and reducing energy consumption in the operation of biorefinery facilities and technologies and processes to enable biorefineries that exclusively use corn grain or corn starch as a feedstock to produce ethanol to be retrofitted to accept a range of biomass.
Section 225- Study of Optimization of flexible Fuel Vehicles to use E-85 Fuel
This section requires the DOE, along with DOT and EPA to study whether optimizing flexible fueled vehicles to operate using E-85 fuel would increase the fuel efficiency of flexible fueled vehicles.
Section 226- Study of Engine Durability and Performance Associated with the Use of Biodiesel
This section requires DOE, in consultation with EPA, to study the effects on the use of biodiesel on the performance and durability of engines and engine systems, including an assessment of whether the use of biodiesel lessens the durability and performance of conventional diesel engines and engine systems and an assessment of the affects with respect to biodiesel blends at varying concentrations.
Section 227- Study of Optimization of Biogas Used in Natural Gas Vehicles
This section requires DOE, with DOT and EPA to study methods of increasing the fuel efficiency of vehicles using biogas by optimizing natural gas vehicle systems that can operate on biogas, including the advancement of vehicle fuel systems and the combination of hybrid-electric and plug-in hybrid electric drive platforms with natural gas vehicle systems using biogas.
Section 228- Algal Biomass
This section requires DOE to report to Congress on the research and development that is being conducted on the use of algae as a feedstock for the production of biofuels.
Section 229- Biofuels and Biorefinery Information Center
This section requires DOE, with the Secretary of Agriculture, to establish a biorefinery information center.
Section 230- Cellulosic Ethanol and Biofuels Research
This section authorizes $50 million for FY08 for DOE to make grants for cellulosic ethanol and biofuels research and development to 10 eligible entities.
Section 231- Bioenergy R&D, Authorization of Appropriation
This section authorizes $963 million for FY2010 for renewable energy research, development, demonstration, and commercial application activities.
Increases FY08 funding for bioenergy to $377 million, FY09 funding to $398 million, and adds $419 million for FY10.
Section 232- Environmental Research and Development
Section 233- Bioenergy Research Centers
This section requires DOE to establish 7 bioenergy research centers.
Section 234- University Based R&D Grant Program
This section establishes a grant program through DOE for projects submitted by universities, up to $2 million, to conduct research and development of renewable energy technologies.
Subtitle C- Biofuels Infrastructure
Section 241- Prohibition on Franchise Agreement Restrictions Related to Renewable Fuel Infrastructure
This section prohibits any franchise agreement to contain any provision that restricts installing a renewable fuel pump or tank, converting an existing tank or pump for renewable fuel use, advertising the sale of any renewable fuel, selling renewable fuel on the premises, purchasing renewable fuel, listing renewable fuel availability prices, and allowing for payment of renewable fuel with a credit card.
Section 242- Renewable Fuel Dispenser Requirements
This section directs the DOE and DOT to determine and report to Congress every year on the market penetration for flexible-fuel vehicles in use.
Section 243- Ethanol Pipeline Feasibility Study
This section instructs and authorizes $1 million for FY08-FY09 for DOE and DOT to study the feasibility of the construction of pipelines dedicated to the transportation of ethanol.
Section 244- Renewable Fuel Infrastructure Grants
This section authorizes $200 million for FY08-FY14 for DOE to establish a grant program to provide assistance to retail and wholesale motor fuel dealers or others for the installation, replacement, or conversion of motor fuel storage and dispensing infrastructure to be used exclusively to store and dispense renewable fuel blends.
Section 245- Study of the Adequacy of Transportation of Domestically-Produced Renewable Fuel by Railroads and other Modes of Transportation
This section requires the DOE and DOT to jointly conduct a study on the adequacy of transportation of domestically-produced renewable fuels by railroads and other modes of transportation determined by DOE and DOT.
Section 246- Federal Fleet Fueling Centers
Requires the head of each federal agency to install at least 1 renewable fuel pump at each federal fleet fueling center. In addition, requires the President to report to Congress on the progress toward this goal.
Section 247- Standard Specifications for Biodiesel
This section amends the Clean Air Act, related to conversion assistance for cellulosic biomass, waste-derived ethanol, approved renewable fuels by giving the EPA rulemaking authority, under certain conditions, to establish a uniform per gallon fuel standard for such fuel and designated an identification number so that vehicle manufacturers are able to design engines to use fuel meeting such standard.
Section 248- Biofuels Distribution and Advanced Biofuels Infrastructure
This section directs DOE and DOT to carry out a program of research, development, and demonstration relating to existing transportation fuel distribution infrastructure and new alternative distribution infrastructure.
Subtitle D- Environmental Safeguards
Section 251- Waiver for Fuel or Fuel Additives
This section amends the Clean Air Act to allow the EPA to waive the prohibition that a manufacturer introduce a fuel or fuel additive that is not substantially similar to any fuel or fuel additive utilized, unless the EPA determines it will not cause or contribute to the failure of any emission control device or system to achieve compliance by the vehicle’s certified emission standards.
