SUBCHAPTER I—IMPROVED VEHICLE TECHNOLOGY
§17011. Transportation electrification
(a) Definitions
In this section:
(1) Administrator
The term "Administrator" means the Administrator of the Environmental Protection Agency.
(2) Battery
The term "battery" means an electrochemical energy storage system powered directly by electrical current.
(3) Electric transportation technology
The term "electric transportation technology" means—
(A) technology used in vehicles that use an electric motor for all or part of the motive power of the vehicles, including battery electric, hybrid electric, plug-in hybrid electric, fuel cell, and plug-in fuel cell vehicles, or rail transportation; or
(B) equipment relating to transportation or mobile sources of air pollution that use an electric motor to replace an internal combustion engine for all or part of the work of the equipment, including—
(i) corded electric equipment linked to transportation or mobile sources of air pollution; and
(ii) electrification technologies at airports, ports, truck stops, and material-handling facilities.
(4) Nonroad vehicle
The term "nonroad vehicle" means a vehicle—
(A) powered—
(i) by a nonroad engine, as that term is defined in
(ii) fully or partially by an electric motor powered by a fuel cell, a battery, or an off-board source of electricity; and
(B) that is not a motor vehicle or a vehicle used solely for competition.
(5) Plug-in electric drive vehicle
The term "plug-in electric drive vehicle" means a vehicle that—
(A) draws motive power from a battery with a capacity of at least 4 kilowatt-hours;
(B) can be recharged from an external source of electricity for motive power; and
(C) is a light-, medium-, or heavy-duty motor vehicle or nonroad vehicle (as those terms are defined in
(6) Qualified electric transportation project
The term "qualified electric transportation project" means an electric transportation technology project that would significantly reduce emissions of criteria pollutants, greenhouse gas emissions, and petroleum, including—
(A) shipside or shoreside electrification for vessels;
(B) truck-stop electrification;
(C) electric truck refrigeration units;
(D) battery-powered auxiliary power units for trucks;
(E) electric airport ground support equipment;
(F) electric material and cargo handling equipment;
(G) electric or dual-mode electric rail;
(H) any distribution upgrades needed to supply electricity to the project; and
(I) any ancillary infrastructure, including panel upgrades, battery chargers, in-situ transformers, and trenching.
(b) Plug-in electric drive vehicle program
(1) Establishment
The Secretary shall establish a competitive program to provide grants on a cost-shared basis to State governments, local governments, metropolitan transportation authorities, air pollution control districts, private or nonprofit entities, or combinations of those governments, authorities, districts, and entities, to carry out one or more projects to encourage the use of plug-in electric drive vehicles or other emerging electric vehicle technologies, as determined by the Secretary.
(2) Administration
The Secretary shall, in consultation with the Secretary of Transportation and the Administrator, establish requirements for applications for grants under this section, including reporting of data to be summarized for dissemination to grantees and the public, including safety, vehicle, and component performance, and vehicle and component life cycle costs.
(3) Priority
In making awards under this subsection, the Secretary shall—
(A) give priority consideration to applications that—
(i) encourage early widespread use of vehicles described in paragraph (1); and
(ii) are likely to make a significant contribution to the advancement of the production of the vehicles in the United States; and
(B) ensure, to the maximum extent practicable, that the program established under this subsection includes a variety of applications, manufacturers, and end-uses.
(4) Reporting
The Secretary shall require a grant recipient under this subsection to submit to the Secretary, on an annual basis, data relating to safety, vehicle performance, life cycle costs, and emissions of vehicles demonstrated under the grant, including emissions of greenhouse gases.
(5) Cost sharing
(6) Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $90,000,000 for each of fiscal years 2008 through 2012, of which not less than 1/3 of the total amount appropriated shall be available each fiscal year to make grants to local and municipal governments.
(c) Near-term transportation sector electrification program
(1) In general
Not later than 1 year after December 19, 2007, the Secretary, in consultation with the Secretary of Transportation and the Administrator, shall establish a program to provide grants for the conduct of qualified electric transportation projects.
(2) Priority
In providing grants under this subsection, the Secretary shall give priority to large-scale projects and large-scale aggregators of projects.
(3) Cost sharing
(4) Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $95,000,000 for each of fiscal years 2008 through 2013.
(d) Education program
(1) In general
The Secretary shall develop a nationwide electric drive transportation technology education program under which the Secretary shall provide—
(A) teaching materials to secondary schools and high schools; and
(B) assistance for programs relating to electric drive system and component engineering to institutions of higher education.
(2) Electric vehicle competition
The program established under paragraph (1) shall include a plug-in hybrid electric vehicle competition for institutions of higher education, which shall be known as the "Dr. Andrew Frank Plug-In Electric Vehicle Competition".
(3) Engineers
In carrying out the program established under paragraph (1), the Secretary shall provide financial assistance to institutions of higher education to create new, or support existing, degree programs to ensure the availability of trained electrical and mechanical engineers with the skills necessary for the advancement of—
(A) plug-in electric drive vehicles; and
(B) other forms of electric drive transportation technology vehicles.
(4) Authorization of appropriations
There are authorized to be appropriated such sums as may be necessary to carry out this subsection.
(
Statutory Notes and Related Subsidiaries
Effective Date
Section effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of
§17012. Advanced battery loan guarantee program
(a) Establishment of program
The Secretary shall establish a program to provide guarantees of loans by private institutions for the construction of facilities for the manufacture of advanced vehicle batteries and battery systems that are developed and produced in the United States, including advanced lithium ion batteries and hybrid electrical system and component manufacturers and software designers.
(b) Requirements
The Secretary may provide a loan guarantee under subsection (a) to an applicant if—
(1) without a loan guarantee, credit is not available to the applicant under reasonable terms or conditions sufficient to finance the construction of a facility described in subsection (a);
(2) the prospective earning power of the applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed in accordance with the terms of the loan; and
(3) the loan bears interest at a rate determined by the Secretary to be reasonable, taking into account the current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan.
(c) Criteria
In selecting recipients of loan guarantees from among applicants, the Secretary shall give preference to proposals that—
(1) meet all applicable Federal and State permitting requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest need for the facility.
(d) Maturity
A loan guaranteed under subsection (a) shall have a maturity of not more than 20 years.
(e) Terms and conditions
The loan agreement for a loan guaranteed under subsection (a) shall provide that no provision of the loan agreement may be amended or waived without the consent of the Secretary.
(f) Assurance of repayment
The Secretary shall require that an applicant for a loan guarantee under subsection (a) provide an assurance of repayment in the form of a performance bond, insurance, collateral, or other means acceptable to the Secretary in an amount equal to not less than 20 percent of the amount of the loan.
(g) Guarantee fee
The recipient of a loan guarantee under subsection (a) shall pay the Secretary an amount determined by the Secretary to be sufficient to cover the administrative costs of the Secretary relating to the loan guarantee.
(h) Full faith and credit
The full faith and credit of the United States is pledged to the payment of all guarantees made under this section. Any such guarantee made by the Secretary shall be conclusive evidence of the eligibility of the loan for the guarantee with respect to principal and interest. The validity of the guarantee shall be incontestable in the hands of a holder of the guaranteed loan.
(i) Reports
Until each guaranteed loan under this section has been repaid in full, the Secretary shall annually submit to Congress a report on the activities of the Secretary under this section.
(j) Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this section.
(k) Termination of authority
The authority of the Secretary to issue a loan guarantee under subsection (a) terminates on the date that is 10 years after December 19, 2007.
(
Statutory Notes and Related Subsidiaries
Effective Date
Section effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of
§17013. Advanced technology vehicles manufacturing incentive program
(a) Definitions
In this section:
(1) Advanced technology vehicle
The term "advanced technology vehicle" means—
(A) an ultra efficient vehicle or a light duty vehicle that meets—
(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 (
(ii) any new emission standard in effect for fine particulate matter prescribed by the Administrator under that Act (
(iii) at least 125 percent of the average base year combined fuel economy for vehicles with substantially similar attributes;
(B) a medium duty vehicle or a heavy duty vehicle that exceeds 125 percent of the greenhouse gas emissions and fuel efficiency standards established by the final rule of the Environmental Protection Agency entitled "Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles—Phase 2" (81 Fed. Reg. 73478 (October 25, 2016));
(C) a train or locomotive;
(D) a maritime vessel;
(E) an aircraft; and
(F) hyperloop technology.
(2) Combined fuel economy
The term "combined fuel economy" means—
(A) the combined city/highway miles per gallon values, as reported in accordance with
(B) in the case of an electric drive vehicle with the ability to recharge from an off-board 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 manufacturers, ultra efficient vehicle manufacturers, advanced technology 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 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
(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
(3) Selection of eligible projects
(A) In general
The Secretary shall select eligible projects to receive loans under this subsection if the Secretary determines that—
(i) the loan recipient—
(I) has a reasonable prospect of repaying the principal and interest on the loan;
(II) will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; and
(III) has met such other criteria as may be established and published by the Secretary; and
(ii) the amount of the loan (when combined with amounts available to the loan recipient from other sources) will be sufficient to carry out the project.
(B) Reasonable prospect of repayment
The Secretary shall base a determination of whether there is a reasonable prospect of repayment of the principal and interest on a loan under subparagraph (A)(i)(I) on a comprehensive evaluation of whether the loan recipient has a reasonable prospect of repaying the principal and interest, including, as applicable, an evaluation of—
(i) the strength of the contractual terms of the eligible project (if commercially reasonably available);
(ii) the forecast of noncontractual cash flows supported by market projections from reputable sources, as determined by the Secretary;
(iii) cash sweeps and other structure enhancements;
(iv) the projected financial strength of the loan recipient—
(I) at the time of loan close; and
(II) throughout the loan term after the project is completed;
(v) the financial strength of the investors and strategic partners of the loan recipient, if applicable; and
(vi) other financial metrics and analyses that are relied on by the private lending community and nationally recognized credit rating agencies, as determined appropriate 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;
(D) shall be made by the Federal Financing Bank; and
(E) shall be subject to the condition that the loan is not subordinate to other financing.
(5) Conflicts of interest
For each eligible project selected to receive a loan under this subsection, the Secretary shall certify that political influence did not impact the selection of the eligible project.
(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 advanced technology vehicle 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, advanced technology vehicles, or components of advanced technology vehicles.
(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) Appointment and pay of personnel
(1) The Secretary may use direct hiring authority pursuant to
(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
(3) The Secretary may retain such consultants as the Secretary deems necessary to the discharge of the functions required by this section, pursuant to
(j) Coordination
In carrying out this section, the Secretary shall coordinate with relevant vehicle, bioenergy, and hydrogen and fuel cell demonstration project activities supported by the Department.
(k) Outreach
In carrying out this section, the Secretary shall—
(1) provide assistance with the completion of applications for awards or loans under this section; and
(2) conduct outreach, including through conferences and online programs, to disseminate information on awards and loans under this section to potential applicants.
(l) Repealed. Pub. L. 117–328, div. D, title III, §308, Dec. 29, 2022, 136 Stat. 4645
(m) Report
Not later than 2 years after November 15, 2021, and every 3 years thereafter, the Secretary shall submit to Congress a report on the status of projects supported by a loan under this section, including—
(1) a list of projects receiving a loan under this section, including the loan amount and construction status of each project;
(2) the status of the loan repayment for each project, including future repayment projections;
(3) data regarding the number of direct and indirect jobs retained, restored, or created by financed projects;
(4) the number of new projects projected to receive a loan under this section in the next 2 years, including the projected aggregate loan amount over the next 2 years;
(5) evaluation of ongoing compliance with the assurances and commitments, and of the predictions, made by applicants pursuant to paragraphs (2) and (3) of subsection (d);
(6) the total number of applications received by the Department each year; and
(7) any other metrics the Secretary determines appropriate.
(
Editorial Notes
References in Text
The Clean Air Act, referred to in subsec. (a)(1)(A), is act July 14, 1955, ch. 360,
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. (i)(3), "
Amendments
2022—Subsec. (d)(1).
Subsec. (l).
2021—Subsec. (a)(1).
Subsec. (b).
Subsec. (d)(3).
"(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
"(C) has met such other criteria as may be established and published by the Secretary."
Subsec. (d)(4)(E).
Subsec. (d)(5).
Subsec. (h).
Subsec. (h)(1)(B).
Subsecs. (i) to (m).
2009—Subsec. (a)(1).
Subsec. (a)(5).
Subsec. (b).
Subsec. (b)(1)(C).
Subsec. (b)(2).
Subsec. (g).
Subsec. (h)(1)(B).
2008—Subsec. (d)(1).
Subsec. (e).
Subsec. (j).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of
Wage Rate Requirements
For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of
Reconsideration of Prior Applications
"(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."
1 So in original. Probably should be "or".
2 So in original. Probably should be "points".
3 So in original. Probably should be "of such".
§17014. Research and development into integrating electric vehicles onto the electric grid
(a) In general
The Secretary shall establish a research, development, and demonstration program to advance the integration of electric vehicles, including plug-in hybrid electric vehicles, onto the electric grid.
(b) Vehicles-to-grid integration assessment report
Not later than 1 year after December 27, 2020, the Secretary shall submit to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on the results of a study that examines the research, development, and demonstration opportunities, challenges, and standards needed for integrating electric vehicles onto the electric grid.
(1) Report requirements
The report shall include—
(A) an evaluation of the use of electric vehicles to maintain the reliability of the electric grid, including—
(i) the use of electric vehicles for demand response, load shaping, emergency power, and frequency regulation; and
(ii) the potential for the reuse of spent electric vehicle batteries for stationary grid storage;
(B) the impact of grid integration on electric vehicles, including—
(i) the impact of bi-directional electricity flow on battery degradation; and
(ii) the implications of the use of electric vehicles for grid services on original equipment manufacturer warranties;
(C) the impacts to the electric grid of increased penetration of electric vehicles, including—
(i) the distribution grid infrastructure needed to support an increase in charging capacity;
(ii) strategies for integrating electric vehicles onto the distribution grid while limiting infrastructure upgrades;
(iii) the changes in electricity demand over a 24-hour cycle due to electric vehicle charging behavior;
(iv) the load increases expected from electrifying the transportation sector;
(v) the potential for customer incentives and other managed charging stations strategies to shift charging off-peak;
(vi) the technology needed to achieve bi-directional power flow on the distribution grid; and
(vii) the implementation of smart charging techniques;
(D) research on the standards needed to integrate electric vehicles with the grid, including communications systems, protocols, and charging stations, in collaboration with the National Institute for Standards and Technology;
(E) the cybersecurity challenges and needs associated with electrifying the transportation sector; and
(F) an assessment of the feasibility of adopting technologies developed under the program established under subsection (a) at Department facilities.
(2) Recommendations
As part of the Vehicles-to-Grid Integration Assessment Report, the Secretary shall develop a 10-year roadmap to guide the research, development, and demonstration program to integrate electric vehicles onto the electric grid.
(3) Consultation
In developing this report, the Secretary shall consult with relevant stakeholders, including—
(A) electric vehicle manufacturers;
(B) electric utilities;
(C) public utility commissions;
(D) vehicle battery manufacturers;
(E) electric vehicle supply equipment manufacturers;
(F) charging infrastructure manufacturers;
(G) the National Laboratories; and
(H) other Federal agencies, as the Secretary determines appropriate.
(4) Updates
The Secretary shall update the report required under this section every 3 years for the duration of the program under section 1 (a) and shall submit the updated report to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate.
(c) Program implementation
In carrying out the research, development, demonstration, and commercial application aims of section,2 the Secretary shall—
(1) implement the recommendations set forth in the report in subsection (b); and
(2) coordinate across all relevant program offices at the Department to achieve the goals established in this section, including the Office of Electricity.
(d) Testing capabilities
The Secretary shall coordinate with the National Laboratories to develop testing capabilities for the evaluation, rapid prototyping, and optimization of technologies enabling integration of electric vehicles onto the electric grid.
(