49 U.S.C. § 32905 — Manufacturing incentives for alternative

Page 969 TITLE 49—TRANSPORTATION § 32905 49:32904(b)(1)(A) made by section 371(b)(1) of the North American Free Trade Implementation Act (Public Law 103–182, 107 Stat. 2128). The words ‘‘(except as provided in paragraph (3))’’ are substituted for ‘‘Except as pro- vided in subparagraph (G)’’ because of the restatement of 15:2003(b)(2)(G) as 49:32904(b)(3). In subsection (b)(3)(A), the words ‘‘is imported . . . more than 30 days after’’ are substituted for ‘‘is not im- ported . . . prior to the expiration of 30 days following’’ for clarity and consistency with title 49, United States Code. In subsection (b)(3)(C), the words ‘‘and the EPA Ad- ministrator may prescribe rules for purposes of car- rying out this subparagraph’’ are omitted as surplus be- cause of the authority of the Administrator to pre- scribe regulations under 49:32910(d). The amendment made by section 371(b)(2) of the North American Free Trade Implementation Act (Public Law 103–182, 107 Stat. 2128) is not given effect because the last sentence of section 503(b)(2)(E) of the Motor Vehicle and Cost Savings Act (Public Law 92–513, 86 Stat. 947) was omit- ted in the restatement of title 49 because of the author- ity of the Administrator to prescribe regulations under 49:32910(d). The text of subsection (b)(4) is the text of 49:32904(b)(1)(B), as enacted by section 1 of the Act of July 5, 1994 (Public Law 103–272, 108 Stat. 1063). PUB. L. 103–429, § 6(36)(C), (D) This makes conforming amendments necessary be- cause of the restatement of 15:2003(b)(2)(G) as 49:32904(b)(3) by section 6(36)(B) of the bill. Editorial Notes AMENDMENTS 2007—Subsec. (b)(1)(B). Pub. L. 110–140, § 104(b)(2), in- serted ‘‘, except for the purposes of section 32903’’ be- fore period at end. Subsec. (b)(6) to (8). Pub. L. 110–140, § 113(a), struck out pars. (6) to (8) which related to exemption from sep- arate calculations requirement, judicial review of de- nial of petition, and unavailability of section 32903(a) and (b)(2) credits during model year when exemption is effective, respectively. 1996—Subsec. (b)(6)(C). Pub. L. 104–287 substituted ‘‘Committee on Commerce’’ for ‘‘Committee on Energy and Commerce’’. 1994—Subsec. (b)(1). Pub. L. 103–429, § 6(36)(B), added par. (1) and struck out former par. (1) which read as fol- lows: ‘‘In this subsection— ‘‘(A) a passenger automobile is deemed to be manu- factured domestically in a model year if at least 75 percent of the cost to the manufacturer is attrib- utable to value added in the United States or Canada, unless the assembly of the automobile is completed in Canada and the automobile is imported into the United States more than 30 days after the end of the model year; and ‘‘(B) the fuel economy of a passenger automobile that is not manufactured domestically is deemed to be equal to the average fuel economy of all passenger automobiles manufactured by the same manufacturer that are not manufactured domestically.’’ Subsec. (b)(2). Pub. L. 103–429, § 6(36)(B), added par. (2) and struck out former par. (2) which read as follows: ‘‘(2)(A) Except as provided in paragraphs (4) and (5) of this subsection, the Administrator shall make separate calculations under subsection (a)(1)(B) of this section for— ‘‘(i) passenger automobiles manufactured domesti- cally by a manufacturer (or included in this category under paragraph (3) of this subsection); and ‘‘(ii) passenger automobiles not manufactured do- mestically by that manufacturer (or excluded from this category under paragraph (3) of this subsection). ‘‘(B) Passenger automobiles described in subpara- graph (A)(i) and (ii) of this paragraph are deemed to be manufactured by separate manufacturers under this chapter.’’ Subsec. (b)(3), (4). Pub. L. 103–429, § 6(36)(B), added pars. (3) and (4). Former pars. (3) and (4) redesignated (5) and (6), respectively. Subsec. (b)(5). Pub. L. 103–429, § 6(36)(A), redesignated par. (3) as (5). Former par. (5) redesignated (7). Subsec. (b)(5)(B). Pub. L. 103–429, § 6(36)(C), sub- stituted ‘‘paragraph (1)(A)(i) and exclude under para- graph (1)(A)(ii)’’ for ‘‘paragraph (2)(A)(i) and exclude under paragraph (2)(A)(ii)’’ in introductory provisions. Subsec. (b)(6). Pub. L. 103–429, § 6(36)(A), redesignated par. (4) as (6). Former par. (6) redesignated (8). Subsec. (b)(6)(A). Pub. L. 103–429, § 6(36)(D), sub- stituted ‘‘paragraph (1)(A)’’ for ‘‘paragraph (2)(A)’’ in introductory provisions. Subsec. (b)(7), (8). Pub. L. 103–429, § 6(36)(A), redesig- nated pars. (5) and (6) as (7) and (8), respectively. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2007 AMENDMENT Amendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an Effective Date note under sec- tion 1824 of Title 2, The Congress. EFFECT OF REPEAL ON EXISTING EXEMPTIONS Pub. L. 110–140, title I, § 113(b), (c), Dec. 19, 2007, 121 Stat. 1508, provided that: ‘‘(b) EFFECT OF REPEAL ON EXISTING EXEMPTIONS.— Any exemption granted under section 32904(b)(6) of title 49, United States Code, prior to the date of the enact- ment of this Act [Dec. 19, 2007] shall remain in effect subject to its terms through model year 2013. ‘‘(c) ACCRUAL AND USE OF CREDITS.—Any manufac- turer holding an exemption under section 32904(b)(6) of title 49, United States Code, prior to the date of the en- actment of this Act may accrue and use credits under sections 32903 and 32905 of such title beginning with model year 2011.’’ § 32905. Manufacturing incentives for alternative fuel automobiles (a) DEDICATED AUTOMOBILES.—Except as pro- vided in subsection (c) of this section or section 32904(a)(2) of this title, for any model of dedi- cated automobile manufactured by a manufac- turer after model year 1992, the fuel economy measured for that model shall be based on the fuel content of the alternative fuel used to oper- ate the automobile. A gallon of a liquid alter- native fuel used to operate a dedicated auto- mobile is deemed to contain .15 gallon of fuel. (b) DUAL FUELED AUTOMOBILES.—Except as provided in subsection (d) of this section or sec- tion 32904(a)(2) of this title, for any model of dual fueled automobile manufactured by a man- ufacturer in model years 1993 through 2019, the Administrator of the Environmental Protection Agency shall measure the fuel economy for that model by dividing 1.0 by the sum of— (1) .5 divided by the fuel economy measured under section 32904(c) of this title when oper- ating the model on gasoline or diesel fuel; and (2) .5 divided by the fuel economy— (A) measured under subsection (a) when operating the model on alternative fuel; or (B) measured based on the fuel content of B20 when operating the model on B20, which is deemed to contain 0.15 gallon of fuel. (c) GASEOUS FUEL DEDICATED AUTOMOBILES.— For any model of gaseous fuel dedicated auto- mobile manufactured by a manufacturer after model year 1992, the Administrator shall meas- ure the fuel economy for that model based on Page 970 TITLE 49—TRANSPORTATION § 32905 the fuel content of the gaseous fuel used to oper- ate the automobile. One hundred cubic feet of natural gas is deemed to contain .823 gallon equivalent of natural gas. The Secretary of Transportation shall determine the appropriate gallon equivalent of other gaseous fuels. A gal- lon equivalent of gaseous fuel is deemed to have a fuel content of .15 gallon of fuel. (d) GASEOUS FUEL DUAL FUELED AUTO- MOBILES.—For any model of gaseous fuel dual fueled automobile manufactured by a manufac- turer in model years 1993 through 2019, the Ad- ministrator shall measure the fuel economy for that model by dividing 1.0 by the sum of— (1) .5 divided by the fuel economy measured under section 32904(c) of this title when oper- ating the model on gasoline or diesel fuel; and (2) .5 divided by the fuel economy measured under subsection (c) of this section when oper- ating the model on gaseous fuel. (e) ELECTRIC DUAL FUELED AUTOMOBILES.— (1) IN GENERAL.—At the request of the manu- facturer, the Administrator may measure the fuel economy for any model of dual fueled automobile manufactured after model year 2015 that is capable of operating on electricity in addition to gasoline or diesel fuel, obtains its electricity from a source external to the vehicle, and meets the minimum driving range requirements established by the Secretary for dual fueled electric automobiles, by dividing 1.0 by the sum of— (A) the percentage utilization of the model on gasoline or diesel fuel, as determined by a formula based on the model’s alternative fuel range, divided by the fuel economy measured under section 32904(c); and (B) the percentage utilization of the model on electricity, as determined by a formula based on the model’s alternative fuel range, divided by the fuel economy measured under section 32904(a)(2). (2) ALTERNATIVE CALCULATION.—If the manu- facturer does not request that the Adminis- trator calculate the manufacturing incentive for its electric dual fueled automobiles in ac- cordance with paragraph (1), the Adminis- trator shall calculate such incentive for such automobiles manufactured by such manufac- turer after model year 2015 in accordance with subsection (b). (f) FUEL ECONOMY CALCULATIONS.—The Admin- istrator shall calculate the manufacturer’s aver- age fuel economy under section 32904(a)(1) of this title for each model described under sub- sections (a)–(d) of this section by using as the denominator the fuel economy measured for each model under subsections (a)–(d). (g) FUEL ECONOMY INCENTIVE REQUIREMENTS.— In order for any model of dual fueled automobile to be eligible to receive the fuel economy incen- tives included in section 32906(a) and (b), a label shall be attached to the fuel compartment of each dual fueled automobile of that model, noti- fying that the vehicle can be operated on an al- ternative fuel and on gasoline or diesel, with the form of alternative fuel stated on the notice. This requirement applies to dual fueled auto- mobiles manufactured on or after September 1, 2006. (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1065; Pub. L. 104–287, § 5(63), Oct. 11, 1996, 110 Stat. 3395; Pub. L. 109–58, title VII, §§ 759, 772(a), Aug. 8, 2005, 119 Stat. 833, 834; Pub. L. 110–140, title I, § 109(b), (c), Dec. 19, 2007, 121 Stat. 1506; Pub. L. 113–291, div. A, title III, § 318(c), Dec. 19, 2014, 128 Stat. 3341.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 32905(a) ...... 15:2013(a), (f)(1). Oct. 20, 1972, Pub. L. 92–513, 86 Stat. 947, § 513(a)–(f); added Oct. 14, 1988, Pub. L. 100–494, § 6(a), 102 Stat. 2448; Oct. 24, 1992, Pub. L. 102–486, § 403(5)(A)–(F), 106 Stat. 2876. 32905(b) ...... 15:2013(b), (f)(1). 32905(c) ...... 15:2013(c), (f)(1). 32905(d) ...... 15:2013(d), (f)(1). 32905(e) ...... 15:2013(e). 32905(f) ....... 15:2013(f)(2)(B). 32905(g) ...... 15:2013(f)(2)(A). In subsections (a) and (c), the words ‘‘after model year 1992’’ are substituted for ‘‘Subsections (a) and (c) shall apply only to automobiles manufactured after model year 1992’’ because of the restatement. In subsections (b) and (d), before each clause (1), the words ‘‘in model years 1993–2004’’ are substituted for ‘‘Except as otherwise provided in this subsection, sub- sections (b) and (d) shall apply only to automobiles manufactured in model year 1993 through model year 2004’’ to eliminate unnecessary words and because of the restatement. In subsection (c), the words ‘‘For purposes of this sec- tion’’ and ‘‘than natural gas’’ are omitted as unneces- sary because of the restatement. The words ‘‘a gallon equivalent of natural gas’’ are omitted as being in- cluded in ‘‘A gallon equivalent of any gaseous fuel’’. In subsection (e), the words ‘‘subject to the provisions of this section’’ are omitted as unnecessary because of the restatement. The words ‘‘for each model described under subsections (a)–(d) of this section’’ are sub- stituted for ‘‘for each model type of dedicated auto- mobile or dual fueled automobile’’ to eliminate unnec- essary words. The words ‘‘by using as the denominator’’ are substituted for ‘‘by including as the denominator of the term’’ for clarity. Editorial Notes AMENDMENTS 2014—Subsecs. (e) to (g). Pub. L. 113–291 added subsec. (e) and redesignated former subsecs. (e) and (f) as (f) and (g), respectively. 2007—Subsec. (b). Pub. L. 110–140, § 109(b)(1), sub- stituted ‘‘1993 through 2019’’ for ‘‘1993–2010’’ in introduc- tory provisions. Subsec. (b)(2). Pub. L. 110–140, § 109(c), amended par. (2) generally. Prior to amendment, par. (2) read as fol- lows: ‘‘.5 divided by the fuel economy measured under subsection (a) of this section when operating the model on alternative fuel.’’ Subsec. (d). Pub. L. 110–140, § 109(b)(2), substituted ‘‘1993 through 2019’’ for ‘‘1993–2010’’ in introductory pro- visions. Subsecs. (f) to (h). Pub. L. 110–140, § 109(b)(3), (4), re- designated subsec. (h) as (f) and struck out former sub- secs. (f) and (g) which related to temporary extension of application of subsecs. (b) and (d) and study and report on success of the policy of subsecs. (b) and (d), respec- tively. 2005—Subsecs. (b), (d). Pub. L. 109–58, § 772(a)(1), sub- stituted ‘‘1993–2010’’ for ‘‘1993–2004’’ in introductory pro- visions. Subsec. (f). Pub. L. 109–58, § 772(a)(2), substituted ‘‘2007’’ for ‘‘2001’’ in introductory provisions. Subsec. (f)(1). Pub. L. 109–58, § 772(a)(3), substituted ‘‘2010’’ for ‘‘2004’’. Page 971 TITLE 49—TRANSPORTATION § 32907 Subsec. (h). Pub. L. 109–58, § 759, added subsec. (h). 1996—Subsec. (g). Pub. L. 104–287 substituted ‘‘Com- mittee on Commerce’’ for ‘‘Committee on Energy and Commerce’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2007 AMENDMENT Amendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an Effective Date note under sec- tion 1824 of Title 2, The Congress. § 32906. Maximum fuel economy increase for al- ternative fuel automobiles (a) IN GENERAL.—For each of model years 1993 through 2019 for each category of automobile (except an electric automobile or, beginning with model year 2016, an alternative fueled auto- mobile that uses a fuel described in subpara- graph (E) of section 32901(a)(1)), the maximum increase in average fuel economy for a manufac- turer attributable to dual fueled automobiles is— (1) 1.2 miles a gallon for each of model years 1993 through 2014; (2) 1.0 miles per gallon for model year 2015; (3) 0.8 miles per gallon for model year 2016; (4) 0.6 miles per gallon for model year 2017; (5) 0.4 miles per gallon for model year 2018; (6) 0.2 miles per gallon for model year 2019; and (7) 0 miles per gallon for model years after 2019. (b) CALCULATION.—In applying subsection (a), the Administrator of the Environmental Protec- tion Agency shall determine the increase in a manufacturer’s average fuel economy attrib- utable to dual fueled automobiles by subtracting from the manufacturer’s average fuel economy calculated under section 32905(f) the number equal to what the manufacturer’s average fuel economy would be if it were calculated by the formula under section 32904(a)(1) by including as the denominator for each model of dual fueled automobiles the fuel economy when the auto- mobiles are operated on gasoline or diesel fuel. (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1067; Pub. L. 109–58, title VII, § 772(b), Aug. 8, 2005, 119 Stat. 834; Pub. L. 110–140, title I, § 109(a), Dec. 19, 2007, 121 Stat. 1505; Pub. L. 113–291, div. A, title III, § 318(a), (d), Dec. 19, 2014, 128 Stat. 3341, 3342.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 32906(a) ...... 15:2013(g)(1). Oct. 20, 1972, Pub. L. 92–513, 86 Stat. 947, § 513(g)(1), (2)(A); added Oct. 14, 1988, Pub. L. 100–494, § 6(a), 102 Stat. 2449; Oct. 24, 1992, Pub. L. 102–486, § 403(5) (G)(i), (ii)(I), 106 Stat. 2877. 32906(b) ...... 15:2013(g)(2)(A). Editorial Notes AMENDMENTS 2014—Subsec. (a). Pub. L. 113–291, § 318(a), substituted ‘‘(except an electric automobile or, beginning with model year 2016, an alternative fueled automobile that uses a fuel described in subparagraph (E) of section 32901(a)(1))’’ for ‘‘(except an electric automobile)’’ in in- troductory provisions. Subsec. (b). Pub. L. 113–291, § 318(d), substituted ‘‘sec- tion 32905(f)’’ for ‘‘section 32905(e)’’. 2007—Pub. L. 110–140 amended section generally, sub- stituting provisions relating to maximum increase in average fuel economy for each of model years 1993 through 2019 and calculation of each such increase for provisions relating to maximum increase for each of model years 1993 through 2010 and authorizing offsets if the Secretary of Transportation reduced the average fuel economy standard for passenger automobiles for any model year below 27.5 miles per gallon. 2005—Subsec. (a)(1)(A). Pub. L. 109–58, § 772(b)(1), sub- stituted ‘‘model years 1993–2010’’ for ‘‘the model years 1993–2004’’. Subsec. (a)(1)(B). Pub. L. 109–58, § 772(b)(2), substituted ‘‘model years 2011–2014’’ for ‘‘the model years 2005–2008’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2007 AMENDMENT Amendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an Effective Date note under sec- tion 1824 of Title 2, The Congress. § 32907. Reports and tests of manufacturers (a) MANUFACTURER REPORTS.—(1) A manufac- turer shall report to the Secretary of Transpor- tation on— (A) whether the manufacturer will comply with an applicable average fuel economy standard under section 32902 of this title for the model year for which the report is made; (B) the actions the manufacturer has taken or intends to take to comply with the stand- ard; and (C) other information the Secretary requires by regulation. (2) A manufacturer shall submit a report under paragraph (1) of this subsection during the 30 days— (A) before the beginning of each model year; and (B) beginning on the 180th day of the model year. (3) When a manufacturer decides that actions reported under paragraph (1)(B) of this sub- section are not sufficient to ensure compliance with that standard, the manufacturer shall re- port to the Secretary additional actions the manufacturer intends to take to comply with the standard and include a statement about whether those actions are sufficient to ensure compliance. (4) This subsection does not apply to a manu- facturer for a model year for which the manu- facturer is subject to an alternative average fuel economy standard under section 32902(d) of this title. (b) RECORDS, REPORTS, TESTS, INFORMATION, AND INSPECTION.—(1) Under regulations pre- scribed by the Secretary or the Administrator of the Environmental Protection Agency to carry out this chapter, a manufacturer shall keep records, make reports, conduct tests, and pro- vide items and information. On request and dis- play of proper credentials, an officer or em- ployee designated by the Secretary or Adminis- trator may inspect automobiles and records of