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                                                 Calendar No. 186

116th Congress}                                          { Report
                                 SENATE
 1st Session  }                                          { 116-83

======================================================================
 
                     VEHICLE INNOVATION ACT OF 2019

                                _______
                                

               September 10, 2019.--Ordered to be printed

                                _______
                                

  Ms. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1085]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1085) to support research, development, 
and other activities to develop innovative vehicle 
technologies, and for other purposes, having considered the 
same, reports favorably thereon without amendment and 
recommends that the bill do pass.

                                Purpose

    The purpose of S. 1085 is to support research, development, 
and other activities to develop innovative vehicle 
technologies.

                          Background and Need

    The International Energy Agency's Global Electric Vehicle 
(EV) Outlook 2019 projects that in 2030 the world-wide light-
duty EV stock could reach 129 million vehicles, up from 5.4 
million in 2018, constituting a 24-fold increase in 12 years. 
The growth in electric vehicles has been propelled by a 
combination of falling lithium ion battery prices and EV 
subsidies and mandates around the world.
    Other changes include the rapid growth in ride-sharing and 
car-sharing companies such as Uber and Lyft, and increasing 
interest in the development of autonomous technologies for 
vehicles. These significant changes require an update to 
authorizations around vehicle technology research to reflect 
modern transportation needs.

                          Legislative History

    S. 1085 was introduced by Senators Peters, Alexander, and 
Stabenow on April 9, 2019.
    Similar legislation, H.R. 2170, was introduced in the House 
of Representatives by Representatives Dingell and Stevens on 
April 9, 2019, and referred to the Science, Space and 
Technology Committee and the Energy and Commerce Committee.
    In the 115th Congress, Senator Peters (for himself and 
Senators Alexander, Stabenow, and Portman) introduced similar 
legislation, S. 1225, on May 24, 2017. Representative Dingell 
introduced companion legislation, H.R. 4050, in the House of 
Representatives on May 24, 2017, which was referred to the 
Science, Space and Technology Committee and the Energy and 
Commerce Committee.
    In the 114th Congress, Senator Peters introduced similar 
legislation, S. 1408, on May 20, 2015. ENR conducted a 
legislative hearing on S. 1408 on June 9, 2015 (S. Hrg. 114-
344). Representative Dingell introduced nearly identical 
legislation, H.R. 4106, in the House of Representatives on 
November 19, 2015, which was referred to the Science, Space and 
Technology Committee.
    The Senate Committee on Energy and Natural Resources met in 
open business session on July 16, 2019, and ordered S. 1085 
favorably reported.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 16, 2019, by a majority voice 
vote of a quorum present, recommends that the Senate pass S. 
1085. Senators Barrasso, Risch, and Lee asked to be recorded as 
voting no.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 provides a short title.

Sec. 2. Definitions

    Section 2 provides key definitions.

Sec. 3. Objectives

    Section 3 lays out the objectives of the bill.

Sec. 4. Coordination and nonduplication

    Section 4 requires the Secretary of Energy (Secretary) to 
ensure, to the maximum extent practicable, that the activities 
authorized by S. 1085 are not duplicative of other programs.

Sec. 5. Authorization of appropriations

    Section 5 authorizes appropriations through fiscal year 
2024 (FY) for the Department of Energy's vehicle technologies 
program.

Sec. 6. Reporting

    Section 6 requires the Secretary to submit a report to 
Congress within 18 months after the date of enactment on 
technologies developed as a result of activities authorized by 
this bill, and annually thereafter through FY 2024. The 
Secretary is further required to report to relevant 
Congressional committees at the end of each FY, through FY 
2024, on additional matters, including the status of public-
private partnerships and a strategic plan for funding of 
activities across agencies.

Sec. 7. Vehicle research and development

    Subsection (a) directs the Secretary to conduct a program 
of basic and applied research, development, engineering, 
demonstration, and commercial application activities for 
materials, technologies, and processes that could reduce 
petroleum use in passenger and commercial vehicles. This 
subsection further (1) specifies areas of activities; (2) 
ensures the continued support of transformation technologies; 
(3) directs industry participation; (4) requires interagency 
and intraagency coordination; (5) makes information available 
to Federal agency procurement programs; (6) requires 
intergovernmental coordination; (7) provides grant award 
criteria; and (8) requires secondary use applications.
    Subsection (b) directs the Secretary to carry out a program 
of research, development, engineering, demonstration, and 
commercial application for advanced vehicle manufacturing 
technologies and practices and specifies innovative processes 
to include.

Sec. 8. Medium- and heavy-duty commercial and transit vehicles

    Section 8 directs the Secretary to carry out a program of 
cooperative research, development, demonstration, and 
commercial application activities on advanced technologies for 
medium- to heavy-duty commercial, vocational, recreational, and 
transit vehicles.

Sec. 9. Class 8 truck and trailer systems demonstration

    Section 9 directs the Secretary to conduct a competitive 
grant program to demonstrate the integration of multiple 
advanced technologies on Class 8 truck and trailer platforms.

Sec. 10. Technology testing and metrics

    Section 10 directs the Secretary to coordinate with the 
interagency research program partners to develop standard 
testing procedures for evaluating the performance of advanced 
heavy vehicle technologies. This section also authorizes the 
construction of heavy duty truck and bus testing facilities.

Sec. 11. Nonroad systems pilot program

    Section 11 directs the Secretary to undertake a pilot 
program of research, development, demonstration, and commercial 
application for technologies to improve total machine or system 
efficiency for nonroad mobile equipment.

Sec. 12. Repeal of existing authorities

    Section 12 repeals a number of provisions within the Energy 
Policy Act of 2005 (Public Law 109-58) and makes technical and 
conforming changes.

                   Cost and Budgetary Considerations

    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    S. 1085 would authorize the appropriation of $1,698 million 
over the 2020-2024 period for the Department of Energy to 
conduct research and development (R&D) on advanced energy 
technologies for vehicles. Under the bill, those R&D programs 
would focus on technologies that could reduce vehicle emissions 
and reliance on fossil fuels, including measures that may 
increase energy efficiency and support the use of alternative 
fuels, such as electricity, natural gas, and hydrogen. It also 
would authorize R&D on advanced manufacturing methods and 
practices for the production of batteries, fuel cells, 
materials, and storage systems.
    Based on historical spending patterns for similar 
activities, and assuming appropriation of the authorized 
amounts, CBO estimates that implementing S. 1085 would cost 
$1,102 million over the 2019-2024 period. The costs of the 
legislation (detailed in Table 1) fall within budget function 
270 (energy).

                TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 1085
----------------------------------------------------------------------------------------------------------------
                                                        By fiscal year, millions of dollars--
                                    ----------------------------------------------------------------------------
                                        2019       2020       2021       2022       2023       2024    2019-2024
----------------------------------------------------------------------------------------------------------------
Authorization......................          0        314        326        339        353        367      1,698
Estimated Outlays..................          0         63        159        244        301        335      1,102
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.

    The CBO staff contact for this estimate is Kathleen Gramp. 
The estimate was reviewed by Theresa A. Gullo, Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 1085. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 1085, as ordered reported.

                   Congressionally Directed Spending

    S. 1085, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The Committee did not request executive views on S. 1085.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1085, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is presented in roman):

                     THE ENERGY POLICY ACT OF 2005


                     Public Law 109-58, as Amended


   AN ACT To ensure jobs for our future with secure, affordable, and 
reliable energy

           *       *       *       *       *       *       *


                     TITLE VII--VEHICLES AND FUELS


Subtitle A--Existing Programs

           *       *       *       *       *       *       *



[SEC. 706. JOINT FLEXIBLE FUEL/HYBRID VEHICLE COMMERCIALIZATION 
                    INITIATIVE.

    [(a) Definitions.--In this section:
          [(1) Eligible entity.--The term ``eligible entity'' 
        means--
                  [(A) a for-profit corporation;
                  [(B) a nonprofit corporation; or
                  [(C) an institution of higher education.
          [(2) Program.--The term ``program'' means a program 
        established under subsection (b).
    [(b) Establishment.--The Secretary shall establish a 
program to improve technologies for the commercialization of--
          [(1) a combination hybrid/flexible fuel vehicle; or
          [(2) a plug-in hybrid/flexible fuel vehicle.
    [(c) Grants.--In carrying out the program, the Secretary 
shall provide grants that give preference to proposals that--
          [(1) achieve the greatest reduction in miles per 
        gallon of petroleum fuel consumption;
          [(2) achieve not less than 250 miles per gallon of 
        petroleum fuel consumption; and
          [(3) have the greatest potential of commercialization 
        to the general public within 5 years.
    [(d) Verification.--Not later than 90 days after August 8, 
2005, the Secretary shall publish in the Federal Register 
procedures to verify--
          [(1) the hybrid/flexible fuel vehicle technologies to 
        be demonstrated; and
          [(2) that grants are administered in accordance with 
        this section.
    [(e) Report.--Not later than 260 days after August 8, 2005, 
and annually thereafter, the Secretary shall submit to Congress 
a report that--
          [(1) identifies the grant recipients;
          [(2) describes the technologies to be funded under 
        the program;
          [(3) assesses the feasibility of the technologies 
        described in paragraph (2) in meeting the goals 
        described in subsection (c);
          [(4) identifies applications submitted for the 
        program that were not funded; and
          [(5) makes recommendations for Federal legislation to 
        achieve commercialization of the technology 
        demonstrated.
    [(f) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section, to remain 
available until expended--
          (1) $3,000,000 for fiscal year 2006;
          (2) $7,000,000 for fiscal year 2007;
          (3) $10,000,000 for fiscal year 2008; and
          (4) $20,000,000 for fiscal year 2009.]

           *       *       *       *       *       *       *


  Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses


                        Part 1--Hybrid Vehicles


[SEC. 711. HYBRID VEHICLES.

    [The Secretary shall accelerate efforts directed toward the 
improvement of batteries and other rechargeable energy storage 
systems, power electronics, hybrid systems integration, and 
other technologies for use in hybrid vehicles.]

[SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

    [(a) Program.--
          [(1) In general.--The Secretary shall establish a 
        program to encourage domestic production and sales of 
        efficient hybrid and advanced diesel vehicles and 
        components of those vehicles.
          [(2) Inclusions.--The program shall include grants 
        and loan guarantees undersection 16513 of this titleto 
        automobile manufacturers and suppliers and hybrid 
        component manufacturers to encourage domestic 
        production of efficient hybrid, plug-in electric 
        hybrid, plug-in electric drive, and advanced diesel 
        vehicles.
          [(3) Priority.--Priority shall be given to the 
        refurbishment or retooling of manufacturing facilities 
        that have recently ceased operation or will cease 
        operation in the near future.
    [(b) Coordination With State and Local Programs.--The 
Secretary may coordinate implementation of this section with 
State and local programs designed to accomplish similar goals, 
including the retention and retraining of skilled workers from 
the manufacturing facilities, including by establishing 
matching grant arrangements.
    [(c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary such sums as may be 
necessary to carry out this section.]

           *       *       *       *       *       *       *


TITLE IX--RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *



                     Subtitle A--Energy Efficiency


SEC. 911 ENERGY EFFICIENCY.

    (a) In general
          (1) Objectives.--The Secretary shall conduct programs 
        of energy efficiency research, development, 
        demonstration, and commercial application, including 
        activities described in this part. Such programs shall 
        take into consideration the following objectives:
                  (A) Increasing the energy efficiency of 
                buildings[vehicles, buildings,] and industrial 
                processes.
                  (B) Reducing the demand of the United States 
                for energy, especially energy from foreign 
                sources.
                  (C) Reducing the cost of energy and making 
                the economy more efficient and competitive.
                  (D) Improving the energy security of the 
                United States.
                  (E) Reducing the environmental impact of 
                energy-related activities.
          (2) Programs.--Programs under this part shall include 
        research, development, demonstration, and commercial 
        application of--
                  [(A) advanced, cost-effective technologies to 
                improve the energy efficiency and environmental 
                performance of vehicles, including--
                          [(i) hybrid and electric propulsion 
                        systems;
                          [(ii) plug-in hybrid systems;
                          [(iii) advanced combustion engines;
                          [(iv) weight and drag reduction 
                        technologies;
                          [(v) whole-vehicle design 
                        optimization; and
                          [(vi) advanced drive trains;]
                  (A)[(B)] cost-effective technologies, for new 
                construction and retrofit, to improve the 
                energy efficiency and environmental performance 
                of buildings, using a whole-buildings approach, 
                including onsite renewable energy generation;
                  (B)[(C)] advanced technologies to improve the 
                energy efficiency, environmental performance, 
                and process efficiency of energy-intensive and 
                waste-intensive industries;
                  (C)[(D)] advanced control devices to improve 
                the energy efficiency of electric motors, 
                including those used in industrial processes, 
                heating, ventilation, and cooling; and
                  (D)[(E)] technologies to improve the energy 
                efficiency of appliances and mechanical systems 
                for buildings in cold climates, including 
                combined heat and power units and increased use 
                of renewable resources, including fuel.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out energy 
efficiency and conservation research, development, 
demonstration, and commercial application activities, including 
activities authorized under this part--
          (1) $783,000,000 for fiscal year 2007;
          (2) $865,000,000 for fiscal year 2008; and
          (3) $952,000,000 for fiscal year 2009.
    (c) Allocations.--From amounts authorized under subsection 
(b), the following sums are authorized:
          (1) For activities undersection 16192 of this title, 
        $50,000,000 for each of fiscal years 2007 through 2009.
          (2) For activities undersection 16195 of this title, 
        $7,000,000 for each of fiscal years 2007 through 2009.
          [(3) For activities under subsection (a)(2)(A)--
                  [(A) $200,000,000 for fiscal year 2007;
                  [(B) $270,000,000 for fiscal year 2008; and
                  [(C) $310,000,000 for fiscal year 2009.]
          (3)[(4)] For activities under subsection 
        (a)(2)(C)[(D)], $2,000,000 for each of fiscal years 
        2007 and 2008.
    (d) Extended Authorization.--There are authorized to be 
appropriated to the Secretary to carry outsection 16192 of this 
title $50,000,000 for each of fiscal years 2010 through 2013.
    (e) Limitations.--None of the funds authorized to be 
appropriated under this section may be used for--
          (1) the issuance or implementation of energy 
        efficiency regulations;
          (2) the weatherization program established under part 
        A of title IV of the Energy Conservation and Production 
        Act (42 U.S.C. 6861 et seq.);
          (3) a State energy conservation plan established 
        under part D of title III of the Energy Policy and 
        Conservation Act (42 U.S.C. 6321 et seq.); or
          (4) a Federal energy management measure carried out 
        under part 3 of title V of the National Energy 
        Conservation Policy Act (42 U.S.C. 8251 et seq.).

           *       *       *       *       *       *       *


Subtitle C--Renewable Energy

           *       *       *       *       *       *       *



[SEC. 933. LOW COST RENEWABLE HYDROGEN AND INFRASTRUCTURE FOR VEHICLE 
                    PROPULSION.

    The Secretary shall--
          [(1) establish a research, development, and 
        demonstration program to determine the feasibility of 
        using hydrogen propulsion in light-weight vehicles and 
        the integration of the associated hydrogen production 
        infrastructure using off-the-shelf components; and
          [(2) identify universities and institutions that
                  [(A) have expertise in researching and 
                testing vehicles fueled by hydrogen, methane, 
                and other fuels;
                  [(B) have expertise in integrating off-the-
                shelf components to minimize cost; and
                  [(C) within 2 years can test a vehicle based 
                on an existing commercially available platform 
                with a curb weight of not less than 2,000 
                pounds before modifications, that
                          [(i) operates solely on hydrogen;
                          [(ii) qualifies as a light-duty 
                        passenger vehicle; and
                          [(iii) uses hydrogen produced from 
                        water using only solar energy.]

           *       *       *       *       *       *       *


                                  [all]