1. U.S. Code
  2. title 49
  3. subtitle VI
  4. part C
  5. chapter 329
  6. § 32902

Collapse to view only § 32902. Average fuel economy standards

§ 32901. Definitions
(a)General.—In this chapter—
(1) “alternative fuel” means—
(A) methanol;
(B) denatured ethanol;
(C) other alcohols;
(D) except as provided in subsection (b) of this section, a mixture containing at least 85 percent of methanol, denatured ethanol, and other alcohols by volume with gasoline or other fuels;
(E) natural gas;
(F) liquefied petroleum gas;
(G) hydrogen;
(H) coal derived liquid fuels;
(I) fuels (except alcohol) derived from biological materials;
(J) electricity (including electricity from solar energy); and
(K) any other fuel the Secretary of Transportation prescribes by regulation that is not substantially petroleum and that would yield substantial energy security and environmental benefits.
(2) “alternative fueled automobile” means an automobile that is a—
(A) dedicated automobile; or
(B) dual fueled automobile.
(3) except as provided in section 32908 of this title, “automobile” means a 4-wheeled vehicle that is propelled by fuel, or by alternative fuel, manufactured primarily for use on public streets, roads, and highways and rated at less than 10,000 pounds gross vehicle weight, except—
(A) a vehicle operated only on a rail line;
(B) a vehicle manufactured in different stages by 2 or more manufacturers, if no intermediate or final-stage manufacturer of that vehicle manufactures more than 10,000 multi-stage vehicles per year; or
(C) a work truck.
(4) “automobile manufactured by a manufacturer” includes every automobile manufactured by a person that controls, is controlled by, or is under common control with the manufacturer, but does not include an automobile manufactured by the person that is exported not later than 30 days after the end of the model year in which the automobile is manufactured.
(5) “average fuel economy” means average fuel economy determined under section 32904 of this title.
(6) “average fuel economy standard” means a performance standard specifying a minimum level of average fuel economy applicable to a manufacturer in a model year.
(7) “commercial medium- and heavy-duty on-highway vehicle” means an on-highway vehicle with a gross vehicle weight rating of 10,000 pounds or more.
(8) “dedicated automobile” means an automobile that operates only on alternative fuel.
(9) “dual fueled automobile” means an automobile that—
(A) is capable of operating on alternative fuel or a mixture of biodiesel and diesel fuel meeting the standard established by the American Society for Testing and Materials or under section 211(u) of the Clean Air Act (42 U.S.C. 7545(u)) for fuel containing 20 percent biodiesel (commonly known as “B20”) and on gasoline or diesel fuel;
(B) provides equal or superior energy efficiency, as calculated for the applicable model year during fuel economy testing for the United States Government, when operating on alternative fuel as when operating on gasoline or diesel fuel;
(C) for model years 1993–1995 for an automobile capable of operating on a mixture of an alternative fuel and gasoline or diesel fuel and if the Administrator of the Environmental Protection Agency decides to extend the application of this subclause, for an additional period ending not later than the end of the last model year to which section 32905(b) and (d) of this title applies, provides equal or superior energy efficiency, as calculated for the applicable model year during fuel economy testing for the Government, when operating on a mixture of alternative fuel and gasoline or diesel fuel containing exactly 50 percent gasoline or diesel fuel as when operating on gasoline or diesel fuel; and
(D) for a passenger automobile, meets or exceeds the minimum driving range prescribed under subsection (c) of this section.
(10) “fuel” means—
(A) gasoline;
(B) diesel oil; or
(C) other liquid or gaseous fuel that the Secretary decides by regulation to include in this definition as consistent with the need of the United States to conserve energy.
(11) “fuel economy” means the average number of miles traveled by an automobile for each gallon of gasoline (or equivalent amount of other fuel) used, as determined by the Administrator under section 32904(c) of this title.
(12) “import” means to import into the customs territory of the United States.
(13) “manufacture” (except under section 32902(d) of this title) means to produce or assemble in the customs territory of the United States or to import.
(14) “manufacturer” means—
(A) a person engaged in the business of manufacturing automobiles, including a predecessor or successor of the person to the extent provided under regulations prescribed by the Secretary; and
(B) if more than one person is the manufacturer of an automobile, the person specified under regulations prescribed by the Secretary.
(15) “model” means a class of automobiles as decided by regulation by the Administrator after consulting and coordinating with the Secretary.
(16) “model year”, when referring to a specific calendar year, means—
(A) the annual production period of a manufacturer, as decided by the Administrator, that includes January 1 of that calendar year; or
(B) that calendar year if the manufacturer does not have an annual production period.
(17) “non-passenger automobile” means an automobile that is not a passenger automobile or a work truck.
(18) “passenger automobile” means an automobile that the Secretary decides by regulation is manufactured primarily for transporting not more than 10 individuals, but does not include an automobile capable of off-highway operation that the Secretary decides by regulation—
(A) has a significant feature (except 4-wheel drive) designed for off-highway operation; and
(B) is a 4-wheel drive automobile or is rated at more than 6,000 pounds gross vehicle weight.
(19) “work truck” means a vehicle that—
(A) is rated at between 8,500 and 10,000 pounds gross vehicle weight; and
(B) is not a medium-duty passenger vehicle (as defined in section 86.1803–01 of title 40, Code of Federal Regulations, as in effect on the date of the enactment of the Ten-in-Ten Fuel Economy Act).
(b)Authority To Change Percentage.—The Secretary may prescribe regulations changing the percentage referred to in subsection (a)(1)(D) of this section to not less than 70 percent because of requirements relating to cold start, safety, or vehicle functions.
(c)Minimum Driving Ranges for Dual Fueled Passenger Automobiles.—
(1) The Secretary shall prescribe by regulation the minimum driving range that dual fueled automobiles that are passenger automobiles must meet when operating on alternative fuel to be dual fueled automobiles under sections 32905 and 32906 of this title. A determination whether a dual fueled automobile meets the minimum driving range requirement under this paragraph shall be based on the combined Agency city/highway fuel economy as determined for average fuel economy purposes for those automobiles.
(2)
(A) The Secretary may prescribe a lower range for a specific model than that prescribed under paragraph (1) of this subsection. A manufacturer may petition for a lower range than that prescribed under paragraph (1) for a specific model.
(B) The minimum driving range prescribed for dual fueled automobiles (except electric automobiles) under subparagraph (A) of this paragraph or paragraph (1) of this subsection must be at least 200 miles, except that beginning with model year 2016, alternative fueled automobiles that use a fuel described in subparagraph (E) of subsection (a)(1) shall have a minimum driving range of 150 miles.
(C) If the Secretary prescribes a minimum driving range of 200 miles for dual fueled automobiles (except electric automobiles) under paragraph (1) of this subsection, subparagraph (A) of this paragraph does not apply to dual fueled automobiles (except electric automobiles). Beginning with model year 2016, if the Secretary prescribes a minimum driving range of 150 miles for alternative fueled automobiles that use a fuel described in subparagraph (E) of subsection (a)(1), subparagraph (A) shall not apply to dual fueled automobiles (except electric automobiles).
(3) In prescribing a minimum driving range under paragraph (1) of this subsection and in taking an action under paragraph (2) of this subsection, the Secretary shall consider the purpose set forth in section 3 of the Alternative Motor Fuels Act of 1988 (Public Law 100–494, 102 Stat. 2442), consumer acceptability, economic practicability, technology, environmental impact, safety, drivability, performance, and other factors the Secretary considers relevant.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1056; Pub. L. 110–140, title I, § 103(a), Dec. 19, 2007, 121 Stat. 1501; Pub. L. 113–291, div. A, title III, § 318(b), Dec. 19, 2014, 128 Stat. 3341.)

CITE AS: 49 USC 32901

§ 32902. Average fuel economy standards
(a)Prescription of Standards by Regulation.—At least 18 months before the beginning of each model year, the Secretary of Transportation shall prescribe by regulation average fuel economy standards for automobiles manufactured by a manufacturer in that model year. Each standard shall be the maximum feasible average fuel economy level that the Secretary decides the manufacturers can achieve in that model year.
(b)Standards for Automobiles and Certain Other Vehicles.—
(1)In general.—The Secretary of Transportation, after consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall prescribe separate average fuel economy standards for—
(A) passenger automobiles manufactured by manufacturers in each model year beginning with model year 2011 in accordance with this subsection;
(B) non-passenger automobiles manufactured by manufacturers in each model year beginning with model year 2011 in accordance with this subsection; and
(C) work trucks and commercial medium-duty or heavy-duty on-highway vehicles in accordance with subsection (k).
(2)Fuel economy standards for automobiles.—
(A)Automobile fuel economy average for model years 2011 through 2020.—The Secretary shall prescribe a separate average fuel economy standard for passenger automobiles and a separate average fuel economy standard for non-passenger automobiles for each model year beginning with model year 2011 to achieve a combined fuel economy average for model year 2020 of at least 35 miles per gallon for the total fleet of passenger and non-passenger automobiles manufactured for sale in the United States for that model year.
(B)Automobile fuel economy average for model years 2021 through 2030.—For model years 2021 through 2030, the average fuel economy required to be attained by each fleet of passenger and non-passenger automobiles manufactured for sale in the United States shall be the maximum feasible average fuel economy standard for each fleet for that model year.
(C)Progress toward standard required.—In prescribing average fuel economy standards under subparagraph (A), the Secretary shall prescribe annual fuel economy standard increases that increase the applicable average fuel economy standard ratably beginning with model year 2011 and ending with model year 2020.
(3)The Secretary shall—
(A) prescribe by regulation separate average fuel economy standards for passenger and non-passenger automobiles based on 1 or more vehicle attributes related to fuel economy and express each standard in the form of a mathematical function; and
(B) issue regulations under this title prescribing average fuel economy standards for at least 1, but not more than 5, model years.
(4)Minimum standard.—In addition to any standard prescribed pursuant to paragraph (3), each manufacturer shall also meet the minimum standard for domestically manufactured passenger automobiles, which shall be the greater of—
(A) 27.5 miles per gallon; or
(B) 92 percent of the average fuel economy projected by the Secretary for the combined domestic and non-domestic passenger automobile fleets manufactured for sale in the United States by all manufacturers in the model year, which projection shall be published in the Federal Register when the standard for that model year is promulgated in accordance with this section.
(c)Amending Passenger Automobile Standards.—The Secretary of Transportation may prescribe regulations amending the standard under subsection (b) of this section for a model year to a level that the Secretary decides is the maximum feasible average fuel economy level for that model year. Section 553 of title 5 applies to a proceeding to amend the standard. However, any interested person may make an oral presentation and a transcript shall be taken of that presentation.
(d)Exemptions.—
(1) Except as provided in paragraph (3) of this subsection, on application of a manufacturer that manufactured (whether in the United States or not) fewer than 10,000 passenger automobiles in the model year 2 years before the model year for which the application is made, the Secretary of Transportation may exempt by regulation the manufacturer from a standard under subsection (b) or (c) of this section. An exemption for a model year applies only if the manufacturer manufactures (whether in the United States or not) fewer than 10,000 passenger automobiles in the model year. The Secretary may exempt a manufacturer only if the Secretary—
(A) finds that the applicable standard under those subsections is more stringent than the maximum feasible average fuel economy level that the manufacturer can achieve; and
(B) prescribes by regulation an alternative average fuel economy standard for the passenger automobiles manufactured by the exempted manufacturer that the Secretary decides is the maximum feasible average fuel economy level for the manufacturers to which the alternative standard applies.
(2) An alternative average fuel economy standard the Secretary of Transportation prescribes under paragraph (1)(B) of this subsection may apply to an individually exempted manufacturer, to all automobiles to which this subsection applies, or to classes of passenger automobiles, as defined under regulations of the Secretary, manufactured by exempted manufacturers.
(3) Notwithstanding paragraph (1) of this subsection, an importer registered under section 30141(c) of this title may not be exempted as a manufacturer under paragraph (1) for a motor vehicle that the importer—
(A) imports; or
(B) brings into compliance with applicable motor vehicle safety standards prescribed under chapter 301 of this title for an individual under section 30142 of this title.
(4) The Secretary of Transportation may prescribe the contents of an application for an exemption.
(e)Emergency Vehicles.—
(1) In this subsection, “emergency vehicle” means an automobile manufactured primarily for use—
(A) as an ambulance or combination ambulance-hearse;
(B) by the United States Government or a State or local government for law enforcement; or
(C) for other emergency uses prescribed by regulation by the Secretary of Transportation.
(2) A manufacturer may elect to have the fuel economy of an emergency vehicle excluded in applying a fuel economy standard under subsection (a), (b), (c), or (d) of this section. The election is made by providing written notice to the Secretary of Transportation and to the Administrator of the Environmental Protection Agency.
(f)Considerations on Decisions on Maximum Feasible Average Fuel Economy.—When deciding maximum feasible average fuel economy under this section, the Secretary of Transportation shall consider technological feasibility, economic practicability, the effect of other motor vehicle standards of the Government on fuel economy, and the need of the United States to conserve energy.
(g)Requirements for Other Amendments.—
(1) The Secretary of Transportation may prescribe regulations amending an average fuel economy standard prescribed under subsection (a) or (d) of this section if the amended standard meets the requirements of subsection (a) or (d), as appropriate.
(2) When the Secretary of Transportation prescribes an amendment under this section that makes an average fuel economy standard more stringent, the Secretary shall prescribe the amendment (and submit the amendment to Congress when required under subsection (c)(2) of this section) at least 18 months before the beginning of the model year to which the amendment applies.
(h)Limitations.—In carrying out subsections (c), (f), and (g) of this section, the Secretary of Transportation—
(1) may not consider the fuel economy of dedicated automobiles;
(2) shall consider dual fueled automobiles to be operated only on gasoline or diesel fuel; and
(3) may not consider, when prescribing a fuel economy standard, the trading, transferring, or availability of credits under section 32903.
(i)Consultation.—The Secretary of Transportation shall consult with the Secretary of Energy in carrying out this section and section 32903 of this title.
(j)Secretary of Energy Comments.—
(1) Before issuing a notice proposing to prescribe or amend an average fuel economy standard under subsection (a), (c), or (g) of this section, the Secretary of Transportation shall give the Secretary of Energy at least 10 days from the receipt of the notice during which the Secretary of Energy may, if the Secretary of Energy concludes that the proposed standard would adversely affect the conservation goals of the Secretary of Energy, provide written comments to the Secretary of Transportation about the impact of the standard on those goals. To the extent the Secretary of Transportation does not revise a proposed standard to take into account comments of the Secretary of Energy on any adverse impact of the standard, the Secretary of Transportation shall include those comments in the notice.
(2) Before taking final action on a standard or an exemption from a standard under this section, the Secretary of Transportation shall notify the Secretary of Energy and provide the Secretary of Energy a reasonable time to comment.
(k)Commercial Medium- and Heavy-Duty On-Highway Vehicles and Work Trucks.—
(1)Study.—Not later than 1 year after the National Academy of Sciences publishes the results of its study under section 108 of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall examine the fuel efficiency of commercial medium- and heavy-duty on-highway vehicles and work trucks and determine—
(A) the appropriate test procedures and methodologies for measuring the fuel efficiency of such vehicles and work trucks;
(B) the appropriate metric for measuring and expressing commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency performance, taking into consideration, among other things, the work performed by such on-highway vehicles and work trucks and types of operations in which they are used;
(C) the range of factors, including, without limitation, design, functionality, use, duty cycle, infrastructure, and total overall energy consumption and operating costs that affect commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency; and
(D) such other factors and conditions that could have an impact on a program to improve commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency.
(2)Rulemaking.—Not later than 24 months after completion of the study required under paragraph (1), the Secretary, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, by regulation, shall determine in a rulemaking proceeding how to implement a commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency improvement program designed to achieve the maximum feasible improvement, and shall adopt and implement appropriate test methods, measurement metrics, fuel economy standards, and compliance and enforcement protocols that are appropriate, cost-effective, and technologically feasible for commercial medium- and heavy-duty on-highway vehicles and work trucks. The Secretary may prescribe separate standards for different classes of vehicles under this subsection.
(3)Lead-time; regulatory stability.—The commercial medium- and heavy-duty on-highway vehicle and work truck fuel economy standard adopted pursuant to this subsection shall provide not less than—
(A) 4 full model years of regulatory lead-time; and
(B) 3 full model years of regulatory stability.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1059; Pub. L. 110–140, title I, §§ 102, 104(b)(1), Dec. 19, 2007, 121 Stat. 1498, 1503.)

CITE AS: 49 USC 32902

§ 32903. Credits for exceeding average fuel economy standards
(a)Earning and Period for Applying Credits.—When the average fuel economy of passenger automobiles manufactured by a manufacturer in a particular model year exceeds an applicable average fuel economy standard under subsections (a) through (d) of section 32902 (determined by the Secretary of Transportation without regard to credits under this section), the manufacturer earns credits. The credits may be applied to—
(1) any of the 3 consecutive model years immediately before the model year for which the credits are earned; and
(2) to the extent not used under paragraph (1) 1
1 So in original. Probably should be followed by a comma.
any of the 5 consecutive model years immediately after the model year for which the credits are earned.
(b)Period of Availability and Plan for Future Credits.—
(1) Except as provided in paragraph (2) of this subsection, credits under this section are available to a manufacturer at the end of the model year in which earned.
(2)
(A) Before the end of a model year, if a manufacturer has reason to believe that its average fuel economy for passenger automobiles will be less than the applicable standard for that model year, the manufacturer may submit a plan to the Secretary of Transportation demonstrating that the manufacturer will earn sufficient credits under this section within the next 3 model years to allow the manufacturer to meet that standard for the model year involved. Unless the Secretary finds that the manufacturer is unlikely to earn sufficient credits under the plan, the Secretary shall approve the plan. Those credits are available for the model year involved if—
(i) the Secretary approves the plan; and
(ii) the manufacturer earns those credits as provided by the plan.
(B) If the average fuel economy of a manufacturer is less than the applicable standard under subsections (a) through (d) of section 32902 after applying credits under subsection (a)(1) of this section, the Secretary of Transportation shall notify the manufacturer and give the manufacturer a reasonable time (of at least 60 days) to submit a plan.
(c)Determining Number of Credits.—The number of credits a manufacturer earns under this section equals the product of—
(1) the number of tenths of a mile a gallon by which the average fuel economy of the passenger automobiles manufactured by the manufacturer in the model year in which the credits are earned exceeds the applicable average fuel economy standard under subsections (a) through (d) of section 32902; times
(2) the number of passenger automobiles manufactured by the manufacturer during that model year.
(d)Applying Credits for Passenger Automobiles.—The Secretary of Transportation shall apply credits to a model year on the basis of the number of tenths of a mile a gallon by which the manufacturer involved was below the applicable average fuel economy standard for that model year and the number of passenger automobiles manufactured that model year by the manufacturer. Credits applied to a model year are no longer available for another model year. Before applying credits, the Secretary shall give the manufacturer written notice and reasonable opportunity to comment.
(e)Applying Credits for Non-Passenger Automobiles.—Credits for a manufacturer of automobiles that are not passenger automobiles are earned and applied to a model year in which the average fuel economy of that class of automobiles is below the applicable average fuel economy standard under section 32902(a) of this title, to the same extent and in the same way as provided in this section for passenger automobiles.
(f)Credit Trading Among Manufacturers.—
(1)In general.—The Secretary of Transportation may establish, by regulation, a fuel economy credit trading program to allow manufacturers whose automobiles exceed the average fuel economy standards prescribed under section 32902 to earn credits to be sold to manufacturers whose automobiles fail to achieve the prescribed standards such that the total oil savings associated with manufacturers that exceed the prescribed standards are preserved when trading credits to manufacturers that fail to achieve the prescribed standards.
(2)Limitation.—The trading of credits by a manufacturer to the category of passenger automobiles manufactured domestically is limited to the extent that the fuel economy level of such automobiles shall comply with the requirements of section 32902(b)(4), without regard to any trading of credits from other manufacturers.
(g)Credit Transferring Within a Manufacturer’s Fleet.—
(1)In general.—The Secretary of Transportation shall establish by regulation a fuel economy credit transferring program to allow any manufacturer whose automobiles exceed any of the average fuel economy standards prescribed under section 32902 to transfer the credits earned under this section and to apply such credits within that manufacturer’s fleet to a compliance category of automobiles that fails to achieve the prescribed standards.
(2)Years for which used.—Credits transferred under this subsection are available to be used in the same model years that the manufacturer could have applied such credits under subsections (a), (b), (d), and (e), as well as for the model year in which the manufacturer earned such credits.
(3)Maximum increase.—The maximum increase in any compliance category attributable to transferred credits is—
(A) for model years 2011 through 2013, 1.0 mile per gallon;
(B) for model years 2014 through 2017, 1.5 miles per gallon; and
(C) for model year 2018 and subsequent model years, 2.0 miles per gallon.
(4)Limitation.—The transfer of credits by a manufacturer to the category of passenger automobiles manufactured domestically is limited to the extent that the fuel economy level of such automobiles shall comply with the requirements under section 32904(b)(4), without regard to any transfer of credits from other categories of automobiles described in paragraph (6)(B).
(5)Years available.—A credit may be transferred under this subsection only if it is earned after model year 2010.
(6)Definitions.—In this subsection:
(A)Fleet.—The term “fleet” means all automobiles manufactured by a manufacturer in a particular model year.
(B)Compliance category of automobiles.—The term “compliance category of automobiles” means any of the following 3 categories of automobiles for which compliance is separately calculated under this chapter:
(i) Passenger automobiles manufactured domestically.
(ii) Passenger automobiles not manufactured domestically.
(iii) Non-passenger automobiles.
(h)Refund of Collected Penalty.—When a civil penalty has been collected under this chapter from a manufacturer that has earned credits under this section, the Secretary of the Treasury shall refund to the manufacturer the amount of the penalty to the extent the penalty is attributable to credits available under this section.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1061; Pub. L. 110–140, title I, § 104(a), Dec. 19, 2007, 121 Stat. 1501.)

CITE AS: 49 USC 32903

§ 32904. Calculation of average fuel economy
(a)Method of Calculation.—
(1) The Administrator of the Environmental Protection Agency shall calculate the average fuel economy of a manufacturer subject to—
(A)section 32902(a) of this title in a way prescribed by the Administrator; and
(B) section 32902(b)–(d) of this title by dividing—
(i) the number of passenger automobiles manufactured by the manufacturer in a model year; by
(ii) the sum of the fractions obtained by dividing the number of passenger automobiles of each model manufactured by the manufacturer in that model year by the fuel economy measured for that model.
(2)
(A) In this paragraph, “electric vehicle” means a vehicle powered primarily by an electric motor drawing electrical current from a portable source.
(B) If a manufacturer manufactures an electric vehicle, the Administrator shall include in the calculation of average fuel economy under paragraph (1) of this subsection equivalent petroleum based fuel economy values determined by the Secretary of Energy for various classes of electric vehicles. The Secretary shall review those values each year and determine and propose necessary revisions based on the following factors:
(i) the approximate electrical energy efficiency of the vehicle, considering the kind of vehicle and the mission and weight of the vehicle.
(ii) the national average electrical generation and transmission efficiencies.
(iii) the need of the United States to conserve all forms of energy and the relative scarcity and value to the United States of all fuel used to generate electricity.
(iv) the specific patterns of use of electric vehicles compared to petroleum-fueled vehicles.
(b)Separate Calculations for Passenger Automobiles Manufactured Domestically and Not Domestically.—
(1)
(A) Except as provided in paragraphs (6) and (7) of this subsection, the Administrator shall make separate calculations under subsection (a)(1)(B) of this section for—
(i) passenger automobiles manufactured domestically by a manufacturer (or included in this category under paragraph (5) of this subsection); and
(ii) passenger automobiles not manufactured domestically by that manufacturer (or excluded from this category under paragraph (5) of this subsection).
(B) Passenger automobiles described in subparagraph (A)(i) and (ii) of this paragraph are deemed to be manufactured by separate manufacturers under this chapter, except for the purposes of section 32903.
(2) In this subsection (except as provided in paragraph (3)), a passenger automobile is deemed to be manufactured domestically in a model year if at least 75 percent of the cost to the manufacturer is attributable 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.
(3)
(A) In this subsection, a passenger automobile is deemed to be manufactured domestically in a model year, as provided in subparagraph (B) of this paragraph, if at least 75 percent of the cost to the manufacturer is attributable to value added in the United States, Canada, or Mexico, unless the assembly of the automobile is completed in Canada or Mexico and the automobile is imported into the United States more than 30 days after the end of the model year.
(B) Subparagraph (A) of this paragraph applies to automobiles manufactured by a manufacturer and sold in the United States, regardless of the place of assembly, as follows:
(i) A manufacturer that began assembling automobiles in Mexico before model year 1992 may elect, during the period from January 1, 1997, through January 1, 2004, to have subparagraph (A) of this paragraph apply to all automobiles manufactured by that manufacturer beginning with the model year that begins after the date of the election.
(ii) For a manufacturer that began assembling automobiles in Mexico after model year 1991, subparagraph (A) of this paragraph applies to all automobiles manufactured by that manufacturer beginning with the model year that begins after January 1, 1994, or the model year beginning after the date the manufacturer begins assembling automobiles in Mexico, whichever is later.
(iii) A manufacturer not described in clause (i) or (ii) of this subparagraph that assembles automobiles in the United States or Canada, but not in Mexico, may elect, during the period from January 1, 1997, through January 1, 2004, to have subparagraph (A) of this paragraph apply to all automobiles manufactured by that manufacturer beginning with the model year that begins after the date of the election. However, if the manufacturer begins assembling automobiles in Mexico before making an election under this subparagraph, this clause does not apply, and the manufacturer is subject to clause (ii) of this subparagraph.
(iv) For a manufacturer that does not assemble automobiles in the United States, Canada, or Mexico, subparagraph (A) of this paragraph applies to all automobiles manufactured by that manufacturer beginning with the model year that begins after January 1, 1994.
(v) For a manufacturer described in clause (i) or (iii) of this subparagraph that does not make an election within the specified period, subparagraph (A) of this paragraph applies to all automobiles manufactured by that manufacturer beginning with the model year that begins after January 1, 2004.
(C) The Secretary of Transportation shall prescribe reasonable procedures for elections under subparagraph (B) of this paragraph.
(4) In this subsection, 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.
(5)
(A) A manufacturer may submit to the Secretary of Transportation for approval a plan, including supporting material, stating the actions and the deadlines for taking the actions, that will ensure that the model or models referred to in subparagraph (B) of this paragraph will be manufactured domestically before the end of the 4th model year covered by the plan. The Secretary promptly shall consider and act on the plan. The Secretary shall approve the plan unless—
(i) the Secretary finds that the plan is inadequate to meet the requirements of this paragraph; or
(ii) the manufacturer previously has submitted a plan approved by the Secretary under this paragraph.
(B) If the plan is approved, the Administrator shall include under paragraph (1)(A)(i) and exclude under paragraph (1)(A)(ii) of this subsection, for each of the 4 model years covered by the plan, not more than 150,000 passenger automobiles manufactured by that manufacturer but not qualifying as domestically manufactured if—
(i) the model or models involved previously have not been manufactured domestically;
(ii) at least 50 percent of the cost to the manufacturer of each of the automobiles is attributable to value added in the United States or Canada;
(iii) the automobiles, if their assembly was completed in Canada, are imported into the United States not later than 30 days after the end of the model year; and
(iv) the model or models are manufactured domestically before the end of the 4th model year covered by the plan.
(c)Testing and Calculation Procedures.—The Administrator shall measure fuel economy for each model and calculate average fuel economy for a manufacturer under testing and calculation procedures prescribed by the Administrator. However, except under section 32908 of this title, the Administrator shall use the same procedures for passenger automobiles the Administrator used for model year 1975 (weighted 55 percent urban cycle and 45 percent highway cycle), or procedures that give comparable results. A measurement of fuel economy or a calculation of average fuel economy (except under section 32908) shall be rounded off to the nearest .1 of a mile a gallon. The Administrator shall decide on the quantity of other fuel that is equivalent to one gallon of gasoline. To the extent practicable, fuel economy tests shall be carried out with emissions tests under section 206 of the Clean Air Act (42 U.S.C. 7525).
(d)Effective Date of Procedure or Amendment.—The Administrator shall prescribe a procedure under this section, or an amendment (except a technical or clerical amendment) in a procedure, at least 12 months before the beginning of the model year to which the procedure or amendment applies.
(e)Reports and Consultation.—The Administrator shall report measurements and calculations under this section to the Secretary of Transportation and shall consult and coordinate with the Secretary in carrying out this section.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1062; Pub. L. 103–429, § 6(36), Oct. 31, 1994, 108 Stat. 4380; Pub. L. 104–287, § 5(63), Oct. 11, 1996, 110 Stat. 3395; Pub. L. 110–140, title I, §§ 104(b)(2), 113(a), Dec. 19, 2007, 121 Stat. 1503, 1508.)

CITE AS: 49 USC 32904

§ 32905. Manufacturing incentives for alternative fuel automobiles
(a)Dedicated Automobiles.—Except as provided in subsection (c) of this section or section 32904(a)(2) of this title, for any model of dedicated automobile manufactured by a manufacturer after model year 1992, the fuel economy measured for that model shall be based on the fuel span of the alternative fuel used to operate the automobile. A gallon of a liquid alternative fuel used to operate a dedicated automobile is deemed to contain .15 gallon of fuel.
(b)Dual Fueled Automobiles.—Except as provided in subsection (d) of this section or section 32904(a)(2) of this title, for any model of dual fueled automobile manufactured by a manufacturer 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 operating 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 span 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 automobile manufactured by a manufacturer after model year 1992, the Administrator shall measure the fuel economy for that model based on the fuel span of the gaseous fuel used to operate 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 gallon equivalent of gaseous fuel is deemed to have a fuel span of .15 gallon of fuel. of gaseous fuel is deemed to have a fuel span of .15 gallon of fuel.
(d)Gaseous Fuel Dual Fueled Automobiles.—For any model of gaseous fuel dual fueled automobile manufactured by a manufacturer in model years 1993 through 2019, the Administrator 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 operating the model on gasoline or diesel fuel; and
(2) .5 divided by the fuel economy measured under subsection (c) of this section when operating the model on gaseous fuel.
(e)Electric Dual Fueled Automobiles.—
(1)In general.—At the request of the manufacturer, 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 manufacturer does not request that the Administrator calculate the manufacturing incentive for its electric dual fueled automobiles in accordance with paragraph (1), the Administrator shall calculate such incentive for such automobiles manufactured by such manufacturer after model year 2015 in accordance with subsection (b).
(f)Fuel Economy Calculations.—The Administrator shall calculate the manufacturer’s average fuel economy under section 32904(a)(1) of this title for each model described under subsections (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 incentives included in section 32906(a) and (b), a label shall be attached to the fuel compartment of each dual fueled automobile of that model, notifying that the vehicle can be operated on an alternative fuel and on gasoline or diesel, with the form of alternative fuel stated on the notice. This requirement applies to dual fueled automobiles 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.)

CITE AS: 49 USC 32905

§ 32906. Maximum fuel economy increase for alternative 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 automobile that uses a fuel described in subparagraph (E) of section 32901(a)(1)), the maximum increase in average fuel economy for a manufacturer 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 Protection Agency shall determine the increase in a manufacturer’s average fuel economy attributable 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 automobiles 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.)

CITE AS: 49 USC 32906

§ 32907. Reports and tests of manufacturers
(a)Manufacturer Reports.—
(1) A manufacturer shall report to the Secretary of Transportation 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 standard; 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 subsection are not sufficient to ensure compliance with that standard, the manufacturer shall report 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 manufacturer for a model year for which the manufacturer 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 prescribed 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 provide items and information. On request and display of proper credentials, an officer or employee designated by the Secretary or Administrator may inspect automobiles and records of the manufacturer. An inspection shall be made at a reasonable time and in a reasonable way.
(2) The district courts of the United States may—
(A) issue an order enforcing a requirement or request under paragraph (1) of this subsection; and
(B) punish a failure to obey the order as a contempt of court.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1067.)

CITE AS: 49 USC 32907

§ 32908. Fuel economy information
(a)Definitions.—In this section—
(1) “automobile” includes an automobile rated at not more than 8,500 pounds gross vehicle weight regardless of whether the Secretary of Transportation has applied this chapter to the automobile under section 32901(a)(3)(B) of this title.
(2) “dealer” means a person residing or located in a State, the District of Columbia, or a territory or possession of the United States, and engaged in the sale or distribution of new automobiles to the first person (except a dealer buying as a dealer) that buys the automobile in good faith other than for resale.
(b)Labeling Requirements and Contents.—
(1) Under regulations of the Administrator of the Environmental Protection Agency, a manufacturer of automobiles shall attach a label to a prominent place on each automobile manufactured in a model year. The dealer shall maintain the label on the automobile. The label shall contain the following information:
(A) the fuel economy of the automobile.
(B) the estimated annual fuel cost of operating the automobile.
(C) the range of fuel economy of comparable automobiles of all manufacturers.
(D) a statement that a booklet is available from the dealer to assist in making a comparison of fuel economy of other automobiles manufactured by all manufacturers in that model year.
(E) the amount of the automobile fuel efficiency tax imposed on the sale of the automobile under section 4064 of the Internal Revenue Code of 1986 (26 U.S.C. 4064).
(F) other information required or authorized by the Administrator that is related to the information required by clauses (A)–(D) of this paragraph.
(2) The Administrator may allow a manufacturer to comply with this subsection by—
(A) disclosing the information on the label required under section 3 of the Automobile Information Disclosure Act (15 U.S.C. 1232); and
(B) including the statement required by paragraph (1)(E) of this subsection at a time and in a way that takes into account special circumstances or characteristics.
(3) For dedicated automobiles manufactured after model year 1992, the fuel economy of those automobiles under paragraph (1)(A) of this subsection is the fuel economy for those automobiles when operated on alternative fuel, measured under section 32905(a) or (c) of this title, multiplied by .15. Each label required under paragraph (1) of this subsection for dual fueled automobiles shall—
(A) indicate the fuel economy of the automobile when operated on gasoline or diesel fuel;
(B) clearly identify the automobile as a dual fueled automobile;
(C) clearly identify the fuels on which the automobile may be operated; and
(D) contain a statement informing the consumer that the additional information required by subsection (c)(2) of this section is published and distributed by the Secretary of Energy.
(c)Fuel Economy Information Booklet.—
(1) The Administrator shall prepare the booklet referred to in subsection (b)(1)(D) of this section. The booklet—
(A) shall be simple and readily understandable;
(B) shall contain information on fuel economy and estimated annual fuel costs of operating automobiles manufactured in each model year; and
(C) may contain information on geographical or other differences in estimated annual fuel costs.
(2)
(A) For dual fueled automobiles manufactured after model year 1992, the booklet published under paragraph (1) shall contain additional information on—
(i) the energy efficiency and cost of operation of those automobiles when operated on gasoline or diesel fuel as compared to those automobiles when operated on alternative fuel; and
(ii) the driving range of those automobiles when operated on gasoline or diesel fuel as compared to those automobiles when operated on alternative fuel.
(B) For dual fueled automobiles, the booklet published under paragraph (1) also shall contain—
(i) information on the miles a gallon achieved by the automobiles when operated on alternative fuel; and
(ii) a statement explaining how the information made available under this paragraph can be expected to change when the automobile is operated on mixtures of alternative fuel and gasoline or diesel fuel.
(3) The Secretary of Energy shall publish and distribute the booklet. The Administrator shall prescribe regulations requiring dealers to make the booklet available to prospective buyers.
(d)Disclosure.—A disclosure about fuel economy or estimated annual fuel costs under this section does not establish a warranty under a law of the United States or a State.
(e)Violations.—A violation of subsection (b) of this section is—
(1) a violation of section 3 of the Automobile Information Disclosure Act (15 U.S.C. 1232); and
(2) an unfair or deceptive act or practice in or affecting commerce under the Federal Trade Commission Act (15 U.S.C. 41 et seq.), except sections 5(m) and 18 (15 U.S.C. 45(m), 57a).
(f)Consultation.—The Administrator shall consult with the Federal Trade Commission and the Secretaries of Transportation and Energy in carrying out this section.
(g)Consumer Information.—
(1)Program.—The Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and implement by rule a program to require manufacturers—
(A) to label new automobiles sold in the United States with—
(i) information reflecting an automobile’s performance on the basis of criteria that the Administrator shall develop, not later than 18 months after the date of the enactment of the Ten-in-Ten Fuel Economy Act, to reflect fuel economy and greenhouse gas and other emissions over the useful life of the automobile;
(ii) a rating system that would make it easy for consumers to compare the fuel economy and greenhouse gas and other emissions of automobiles at the point of purchase, including a designation of automobiles—(I) with the lowest greenhouse gas emissions over the useful life of the vehicles; and(II) the highest fuel economy; and
(iii) a permanent and prominent display that an automobile is capable of operating on an alternative fuel; and
(B) to include in the owner’s manual for vehicles capable of operating on alternative fuels information that describes that capability and the benefits of using alternative fuels, including the renewable nature and environmental benefits of using alternative fuels.
(2)Consumer education.—
(A)In general.—The Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and implement by rule a consumer education program to improve consumer understanding of automobile performance described in paragraph (1)(A)(i) and to inform consumers of the benefits of using alternative fuel in automobiles and the location of stations with alternative fuel capacity.
(B)Fuel savings education campaign.—The Secretary of Transportation shall establish a consumer education campaign on the fuel savings that would be recognized from the purchase of vehicles equipped with thermal management technologies, including energy efficient air conditioning systems and glass.
(3)Fuel tank labels for alternative fuel automobiles.—The Secretary of Transportation shall by rule require a label to be attached to the fuel compartment of vehicles capable of operating on alternative fuels, with the form of alternative fuel stated on the label. A label attached in compliance with the requirements of section 32905(h) 1
1 See References in Text note below.
is deemed to meet the requirements of this paragraph.
(4)Rulemaking deadline.—The Secretary of Transportation shall issue a final rule under this subsection not later than 42 months after the date of the enactment of the Ten-in-Ten Fuel Economy Act.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1068; Pub. L. 103–429, § 6(37), Oct. 31, 1994, 108 Stat. 4382; Pub. L. 110–140, title I, § 105, Dec. 19, 2007, 121 Stat. 1503.)

CITE AS: 49 USC 32908

§ 32909. Judicial review of regulations
(a)Filing and Venue.—
(1) A person that may be adversely affected by a regulation prescribed in carrying out any of sections 32901–32904 or 32908 of this title may apply for review of the regulation by filing a petition for review in the United States Court of Appeals for the District of Columbia Circuit or in the court of appeals of the United States for the circuit in which the person resides or has its principal place of business.
(2) A person adversely affected by a regulation prescribed under section 32912(c)(1) of this title may apply for review of the regulation by filing a petition for review in the court of appeals of the United States for the circuit in which the person resides or has its principal place of business.
(b)Time for Filing and Judicial Procedures.—The petition must be filed not later than 59 days after the regulation is prescribed, except that a petition for review of a regulation prescribing an amendment of a standard submitted to Congress under section 32902(c)(2) of this title must be filed not later than 59 days after the end of the 60-day period referred to in section 32902(c)(2). The clerk of the court shall send immediately a copy of the petition to the Secretary of Transportation or the Administrator of the Environmental Protection Agency, whoever prescribed the regulation. The Secretary or the Administrator shall file with the court a record of the proceeding in which the regulation was prescribed.
(c)Additional Proceedings.—
(1) When reviewing a regulation under subsection (a)(1) of this section, the court, on request of the petitioner, may order the Secretary or the Administrator to receive additional submissions if the court is satisfied the additional submissions are material and there were reasonable grounds for not presenting the submissions in the proceeding before the Secretary or Administrator.
(2) The Secretary or the Administrator may amend or set aside the regulation, or prescribe a new regulation because of the additional submissions presented. The Secretary or Administrator shall file an amended or new regulation and the additional submissions with the court. The court shall review a changed or new regulation.
(d)Supreme Court Review and Additional Remedies.—A judgment of a court under this section may be reviewed only by the Supreme Court under section 1254 of title 28. A remedy under subsections (a)(1) and (c) of this section is in addition to any other remedies provided by law.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1070; Pub. L. 103–429, § 6(38), Oct. 31, 1994, 108 Stat. 4382.)

CITE AS: 49 USC 32909

§ 32910. Administrative
(a)General Powers.—
(1) In carrying out this chapter, the Secretary of Transportation or the Administrator of the Environmental Protection Agency may—
(A) inspect and copy records of any person at reasonable times;
(B) order a person to file written reports or answers to specific questions, including reports or answers under oath; and
(C) conduct hearings, administer oaths, take testimony, and subpena witnesses and records the Secretary or Administrator considers advisable.
(2) A witness summoned under paragraph (1)(C) of this subsection is entitled to the same fee and mileage the witness would have been paid in a court of the United States.
(b)Civil Actions To Enforce.—A civil action to enforce a subpena or order of the Secretary or Administrator under subsection (a) of this section may be brought in the district court of the United States for any judicial district in which the proceeding by the Secretary or Administrator is conducted. The court may punish a failure to obey an order of the court to comply with the subpena or order of the Secretary or Administrator as a contempt of court.
(c)Disclosure of Information.—The Secretary and the Administrator each shall disclose information obtained under this chapter (except information obtained under
(d)Regulations.—The Administrator may prescribe regulations to carry out duties of the Administrator under this chapter.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1070; Pub. L. 103–429, § 6(39), Oct. 31, 1994, 108 Stat. 4382.)

CITE AS: 49 USC 32910

§ 32911. Compliance
(a)General.—A person commits a violation if the person fails to comply with this chapter and regulations and standards prescribed and orders issued under this chapter (except sections 32902, 32903, 32908(b), 32917(b), and 32918 and regulations and standards prescribed and orders issued under those sections). The Secretary of Transportation shall conduct a proceeding, with an opportunity for a hearing on the record, to decide whether a person has committed a violation. Any interested person may participate in a proceeding under this subsection.
(b)Automobile Manufacturers.—A manufacturer of automobiles commits a violation if the manufacturer fails to comply with an applicable average fuel economy standard under section 32902 of this title. Compliance is determined after considering credits available to the manufacturer under section 32903 of this title. If average fuel economy calculations under section 32904(c) of this title indicate that a manufacturer has violated this subsection, the Secretary shall conduct a proceeding, with an opportunity for a hearing on the record, to decide whether a violation has been committed. The Secretary may not conduct the proceeding if further measurements of fuel economy, further calculations of average fuel economy, or other information indicates a violation has not been committed. The results of the measurements and calculations and the information shall be published in the Federal Register. Any interested person may participate in a proceeding under this subsection.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1071; Pub. L. 103–429, § 6(40), Oct. 31, 1994, 108 Stat. 4382.)

CITE AS: 49 USC 32911

§ 32912. Civil penalties
(a)General Penalty.—A person that violates section 32911(a) of this title is liable to the United States Government for a civil penalty of not more than $10,000 for each violation. A separate violation occurs for each day the violation continues.
(b)Penalty for Manufacturer Violations of Fuel Economy Standards.—Except as provided in subsection (c) of this section, a manufacturer that violates a standard prescribed for a model year under section 32902 of this title is liable to the Government for a civil penalty of $5 multiplied by each .1 of a mile a gallon by which the applicable average fuel economy standard under that section exceeds the average fuel economy—
(1) calculated under section 32904(a)(1)(A) or (B) of this title for automobiles to which the standard applies manufactured by the manufacturer during the model year;
(2) multiplied by the number of those automobiles; and
(3) reduced by the credits available to the manufacturer under section 32903 of this title for the model year.
(c)Higher Penalty Amounts.—
(1)
(A) The Secretary of Transportation shall prescribe by regulation a higher amount for each .1 of a mile a gallon to be used in calculating a civil penalty under subsection (b) of this section, if the Secretary decides that the increase in the penalty—
(i) will result in, or substantially further, substantial energy conservation for automobiles in model years in which the increased penalty may be imposed; and
(ii) will not have a substantial deleterious impact on the economy of the United States, a State, or a region of a State.
(B) The amount prescribed under subparagraph (A) of this paragraph may not be more than $10 for each .1 of a mile a gallon.
(C) The Secretary may make a decision under subparagraph (A)(ii) of this paragraph only when the Secretary decides that it is likely that the increase in the penalty will not—
(i) cause a significant increase in unemployment in a State or a region of a State;
(ii) adversely affect competition; or
(iii) cause a significant increase in automobile imports.
(D) A higher amount prescribed under subparagraph (A) of this paragraph is effective for the model year beginning at least 18 months after the regulation stating the higher amount becomes final.
(2) The Secretary shall publish in the Federal Register a proposed regulation under this subsection and a statement of the basis for the regulation and provide each manufacturer of automobiles a copy of the proposed regulation and the statement. The Secretary shall provide a period of at least 45 days for written public comments on the proposed regulation. The Secretary shall submit a copy of the proposed regulation to the Federal Trade Commission and request the Commission to comment on the proposed regulation within that period. After that period, the Secretary shall give interested persons and the Commission an opportunity at a public hearing to present oral information, views, and arguments and to direct questions about disputed issues of material fact to—
(A) other interested persons making oral presentations;
(B) employees and contractors of the Government that made written comments or an oral presentation or participated in the development or consideration of the proposed regulation; and
(C) experts and consultants that provided information to a person that the person includes, or refers to, in an oral presentation.
(3) The Secretary may restrict the questions of an interested person and the Commission when the Secretary decides that the questions are duplicative or not likely to result in a timely and effective resolution of the issues. A transcript shall be kept of a public hearing under this subsection. A copy of the transcript and written comments shall be available to the public at the cost of reproduction.
(4) The Secretary shall publish a regulation prescribed under this subsection in the Federal Register with the decisions required under paragraph (1) of this subsection.
(5) An officer or employee of a department, agency, or instrumentality of the Government violates section 1905 of title 18 by disclosing, except in an in camera proceeding by the Secretary or a court, information—
(A) provided to the Secretary or the court during consideration or review of a regulation prescribed under this subsection; and
(B) decided by the Secretary to be confidential under section 11(d) of the Energy Supply and Environmental Coordination Act of 1974 (15 U.S.C. 796(d)).
(d)Written Notice Requirement.—The Secretary shall impose a penalty under this section by written notice.
(e)Use of Civil Penalties.—For fiscal year 2008 and each fiscal year thereafter, from the total amount deposited in the general fund of the Treasury during the preceding fiscal year from fines, penalties, and other funds obtained through enforcement actions conducted pursuant to this section (including funds obtained under consent decrees), the Secretary of the Treasury, subject to the availability of appropriations, shall—
(1) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which shall be used by the Secretary to support rulemaking under this chapter; and
(2) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which shall be used by the Secretary to carry out a program to make grants to manufacturers for retooling, reequipping, or expanding existing manufacturing facilities in the United States to produce advanced technology vehicles and components.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1072; Pub. L. 110–140, title I, § 112, Dec. 19, 2007, 121 Stat. 1508.)

CITE AS: 49 USC 32912

§ 32913. Compromising and remitting civil penalties
(a)General Authority and Limitations.—The Secretary of Transportation may compromise or remit the amount of a civil penalty imposed under section 32912(a) or (b) of this title. However, the amount of a penalty imposed under section 32912(b) may be compromised or remitted only to the extent—
(1) necessary to prevent the insolvency or bankruptcy of the manufacturer of automobiles;
(2) the manufacturer shows that the violation was caused by an act of God, a strike, or a fire; or
(3) the Federal Trade Commission certifies under subsection (b)(1) of this section that a reduction in the penalty is necessary to prevent a substantial lessening of competition.
(b)Certification by Commission.—
(1) A manufacturer liable for a civil penalty under section 32912(b) of this title may apply to the Commission for a certification that a reduction in the penalty is necessary to prevent a substantial lessening of competition in the segment of the motor vehicle industry subject to the standard that was violated. The Commission shall make the certification when it finds that reduction is necessary to prevent the lessening. The Commission shall state in the certification the maximum amount by which the penalty may be reduced.
(2) An application under this subsection must be made not later than 30 days after the Secretary decides that the manufacturer has violated section 32911(b) of this title. To the maximum extent practicable, the Commission shall make a decision on an application by the 90th day after the application is filed. A proceeding under this subsection may not delay the manufacturer’s liability for the penalty for more than 90 days after the application is filed.
(3) When a civil penalty is collected in a civil action under this chapter before a decision of the Commission under this subsection is final, the payment shall be paid to the court in which the action was brought. The court shall deposit the payment in the general fund of the Treasury on the 90th day after the decision of the Commission becomes final. When the court is holding payment of a penalty reduced under subsection (a)(3) of this section, the Secretary shall direct the court to remit the appropriate amount of the penalty to the manufacturer.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1073; Pub. L. 103–429, § 6(41), Oct. 31, 1994, 108 Stat. 4382; Pub. L. 104–287, § 6(d)(1)(A), Oct. 11, 1996, 110 Stat. 3399.)

CITE AS: 49 USC 32913

§ 32914. Collecting civil penalties
(a)Civil Actions.—If a person does not pay a civil penalty after it becomes a final order of the Secretary of Transportation or a judgment of a court of appeals of the United States for a circuit, the Attorney General shall bring a civil action in an appropriate district court of the United States to collect the penalty. The validity and appropriateness of the final order imposing the penalty is not reviewable in the action.
(b)Priority of Claims.—A claim of a creditor against a bankrupt or insolvent manufacturer of automobiles has priority over a claim of the United States Government against the manufacturer for a civil penalty under section 32912(b) of this title when the creditor’s claim is for credit extended before a final judgment (without regard to section 32913(b)(1) and (2) of this title) in an action to collect under subsection (a) of this section.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1074.)

CITE AS: 49 USC 32914

§ 32915. Appealing civil penalties

Any interested person may appeal a decision of the Secretary of Transportation to impose a civil penalty under section 32912(a) or (b) of this title, or of the Federal Trade Commission under section 32913(b)(1) of this title, in the United States Court of Appeals for the District of Columbia Circuit or in the court of appeals of the United States for the circuit in which the person resides or has its principal place of business. A person appealing a decision must file a notice of appeal with the court not later than 30 days after the decision and, at the same time, send a copy of the notice by certified mail to the Secretary or the Commission. The Secretary or the Commission promptly shall file with the court a certified copy of the record of the proceeding in which the decision was made.

(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1074.)

CITE AS: 49 USC 32915

§ 32916. Reports to Congress
(a)Annual Report.—Not later than January 15 of each year, the Secretary of Transportation shall submit to each House of Congress, and publish in the Federal Register, a report on the review by the Secretary of average fuel economy standards prescribed under this chapter.
(b)Joint Examinations After Granting Exemptions.—
(1) After an exemption has been granted under section 32904(b)(6) 1
1 See References in Text note below.
of this title, the Secretaries of Transportation and Labor shall conduct annually a joint examination of the extent to which section 32904(b)(6)—1
(A) achieves the purposes of this chapter;
(B) improves fuel efficiency (thereby facilitating conservation of petroleum and reducing petroleum imports);
(C) has promoted employment in the United States related to automobile manufacturing;
(D) has not caused unreasonable harm to the automobile manufacturing sector in the United States; and
(E) has permitted manufacturers that have assembled passenger automobiles deemed to be manufactured domestically under section 32904(b)(2) of this title thereafter to assemble in the United States passenger automobiles of the same model that have less than 75 percent of their value added in the United States or Canada, together with the reasons.
(2) The Secretary of Transportation shall include the results of the examination under paragraph (1) of this subsection in each report submitted under subsection (a) of this section more than 180 days after an exemption has been granted under section 32904(b)(6) of this title, or submit the results of the examination directly to Congress before the report is submitted when circumstances warrant.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1074; Pub. L. 103–429, § 6(42), Oct. 31, 1994, 108 Stat. 4382.)

CITE AS: 49 USC 32916

§ 32917. Standards for executive agency automobiles
(a)Definition.—In this section, “executive agency” has the same meaning given that term in section 105 of title 5.
(b)Fleet Average Fuel Economy.—
(1) The President shall prescribe regulations that require passenger automobiles leased for at least 60 consecutive days or bought by executive agencies in a fiscal year to achieve a fleet average fuel economy (determined under paragraph (2) of this subsection) for that year of at least the greater of—
(A) 18 miles a gallon; or
(B) the applicable average fuel economy standard under section 32902(b) or (c) of this title for the model year that includes January 1 of that fiscal year.
(2) Fleet average fuel economy is—
(A) the total number of passenger automobiles leased for at least 60 consecutive days or bought by executive agencies in a fiscal year (except automobiles designed for combat-related missions, law enforcement work, or emergency rescue work); divided by
(B) the sum of the fractions obtained by dividing the number of automobiles of each model leased or bought by the fuel economy of that model.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1075.)

CITE AS: 49 USC 32917

§ 32918. Retrofit devices
(a)Definition.—In this section, the term “retrofit device” means any component, equipment, or other device—
(1) that is designed to be installed in or on an automobile (as an addition to, as a replacement for, or through alteration or modification of, any original component, equipment, or other device); and
(2) that any manufacturer, dealer, or distributor of the device represents will provide higher fuel economy than would have resulted with the automobile as originally equipped,
as determined under regulations of the Administrator of the Environmental Protection Agency. The term also includes a fuel additive for use in an automobile.
(b)Examination of Fuel Economy Representations.—The Federal Trade Commission shall establish a program for systematically examining fuel economy representations made with respect to retrofit devices. Whenever the Commission has reason to believe that any representation may be inaccurate, the Commission shall request the Administrator to evaluate, in accordance with subsection (c) of this section, the retrofit device with respect to which the representation was made.
(c)Evaluation of Retrofit Devices.—
(1) On application of any manufacturer of a retrofit device (or prototype of a retrofit device), on request of the Commission under subsection (b) of this section, or on the motion of the Administrator, the Administrator shall evaluate, in accordance with regulations prescribed under subsection (e) of this section, any retrofit device to determine whether the retrofit device increases fuel economy and to determine whether the representations, if any, made with respect to the retrofit device are accurate.
(2) If under paragraph (1) of this subsection, the Administrator tests, or causes to be tested, any retrofit device on the application of a manufacturer of the device, the manufacturer shall supply, at the manufacturer’s expense, one or more samples of the device to the Administrator and shall be liable for the costs of testing incurred by the Administrator. The procedures for testing retrofit devices so supplied may include a requirement for preliminary testing by a qualified independent testing laboratory, at the expense of the manufacturer of the device.
(d)Results of Tests and Publication in Federal Register.—
(1) The Administrator shall publish in the Federal Register a summary of the results of all tests conducted under this section, together with the Administrator’s conclusions as to—
(A) the effect of any retrofit device on fuel economy;
(B) the effect of the device on emissions of air pollutants; and
(C) any other information the Administrator determines to be relevant in evaluating the device.
(2) The summary and conclusions shall also be submitted to the Secretary of Transportation and the Commission.
(e)Regulations Establishing Tests and Procedures for Evaluation of Retrofit Devices.—The Administrator shall prescribe regulations establishing—
(1) testing and other procedures for evaluating the extent to which retrofit devices affect fuel economy and emissions of air pollutants; and
(2) criteria for evaluating the accuracy of fuel economy representations made with respect to retrofit devices.
(Pub. L. 103–429, § 6(43)(B), Oct. 31, 1994, 108 Stat. 4382.)

CITE AS: 49 USC 32918

§ 32919. Preemption
(a)General.—When an average fuel economy standard prescribed under this chapter is in effect, a State or a political subdivision of a State may not adopt or enforce a law or regulation related to fuel economy standards or average fuel economy standards for automobiles covered by an average fuel economy standard under this chapter.
(b)Requirements Must Be Identical.—When a requirement under section 32908 of this title is in effect, a State or a political subdivision of a State may adopt or enforce a law or regulation on disclosure of fuel economy or fuel operating costs for an automobile covered by section 32908 only if the law or regulation is identical to that requirement.
(c)State and Political Subdivision Automobiles.—A State or a political subdivision of a State may prescribe requirements for fuel economy for automobiles obtained for its own use.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1075, § 32918; renumbered § 32919, Pub. L. 103–429, § 6(43)(A), Oct. 31, 1994, 108 Stat. 4382.)

CITE AS: 49 USC 32919