42 U.S.C. § 17013 — Advanced technology vehicles manufacturing incentive program

(a) Definitions. In this section:
(1) Advanced technology vehicle. “Advanced technology vehicle” means (A) an “ultra efficient vehicle” or a light duty vehicle that meets (i) the Bin 5 Tier II emission standard established in Environmental Protection Agency regulations under section 202(i) of the Clean Air Act, or a lower-numbered Bin standard; (ii) any new fine-particulate-matter emission standard prescribed by the Administrator^* under that Act; and (iii) at least 125 percent of the average base-year combined fuel economy for vehicles with substantially similar attributes; (B) a medium duty vehicle or heavy duty vehicle that exceeds 125 percent of the greenhouse-gas-emissions and fuel-efficiency standards established by the Environmental Protection Agency’s final rule titled “Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles—Phase 2” (81 Fed. Reg. 73478, October 25, 2016); (C) a train or locomotive; (D) a maritime vessel; (E) an aircraft; or (F) hyperloop technology.
(2) Combined fuel economy. “Combined fuel economy” means (A) the combined city/highway miles-per-gallon values reported under section 32904 of title 49; and (B), for an electric-drive vehicle that can recharge from an off-board source, the reported mileage determined consistently with the Society of Automotive Engineers’ recommended practice for that configuration or with a similar practice recommended by the Secretary^*.
(3) Engineering integration costs. “Engineering integration costs” includes the costs of engineering tasks involving (A) incorporating qualifying components into the design of advanced technology vehicles; and (B) designing tooling and equipment and developing manufacturing processes and material suppliers for production facilities that produce qualifying components or advanced technology vehicles.
(4) Qualifying components. “Qualifying components” means components the Secretary determines are (A) designed for advanced technology vehicles and (B) installed to meet the performance requirements of advanced technology vehicles.
(5) Ultra efficient vehicle. “Ultra efficient vehicle” means a fully closed-compartment vehicle designed to carry at least two adult passengers that achieves (A) at least 75 miles per gallon while using gasoline or diesel fuel; (B) at least 75 miles-per-gallon equivalent while operating as a hybrid electric-gasoline or electric-diesel vehicle; or (C) at least 75 miles-per-gallon equivalent while operating as a fully electric vehicle.

(b) Advanced vehicles manufacturing facility. The Secretary must provide facility funding awards under this section to automobile manufacturers, ultra efficient vehicle manufacturers, advanced technology vehicle manufacturers, and component suppliers. An award may pay no more than 30 percent of the cost of (1) reequipping, expanding, or establishing a manufacturing facility in the United States to produce (A) qualifying advanced technology vehicles, (B) qualifying components, or (C) ultra efficient vehicles; and (2) engineering integration performed in the United States of qualifying vehicles, ultra efficient vehicles, and qualifying components.

(c) Period of availability. An award under subsection (b) applies to (1) facilities and equipment placed in service before December 30, 2020; and (2) engineering integration costs incurred from December 19, 2007, through December 30, 2020.

(d) Direct loan program.
(1) In general. No later than one year after December 19, 2007, and subject to the availability of appropriated funds, the Secretary must carry out a program providing loans to eligible individuals and entities, as determined by the Secretary, for the costs of activities described in subsection (b). The loans must be made through the Federal Financing Bank, with the full faith and credit of the United States Government backing principal and interest. The Secretary must pay the full credit subsidy with appropriated funds.
(2) Application. An applicant must submit an application at the time, in the manner, and with the information the Secretary requires. The application must include a written assurance that (A) all laborers and mechanics employed by contractors or subcontractors during construction, alteration, or repair financed in whole or in part by the loan will be paid at least the prevailing wages for similar construction in the locality, as the Secretary of Labor determines under sections 3141–3144, 3146, and 3147 of title 40; and (B) the Secretary of Labor will have, for those labor standards, the authority and functions provided in Reorganization Plan Numbered 14 of 1950 and section 3145 of title 40.
(3) Selection of eligible projects. (A) The Secretary must select eligible projects for loans if the Secretary determines that (i) the loan recipient (I) has a reasonable prospect of repaying principal and interest, (II) will provide enough information for the Secretary to ensure that the “qualified investment,” a term this section does not define, is spent efficiently and effectively, and (III) meets other criteria the Secretary establishes and publishes; and (ii) the loan amount, combined with amounts available from other sources, will be enough to carry out the project^*. (B) The Secretary must base the reasonable-repayment determination on a comprehensive evaluation, including as applicable: (i) the strength of the eligible project’s contractual terms, if commercially reasonably available; (ii) forecasts of noncontractual cash flows supported by market projections from reputable sources, as the Secretary determines; (iii) cash sweeps and other structural enhancements; (iv) the recipient’s projected financial strength (I) when the loan closes and (II) throughout the loan term after the project is completed; (v) the financial strength of the recipient’s investors and strategic partners, if applicable; and (vi) other financial metrics and analyses used by private lenders and nationally recognized credit-rating agencies, as the Secretary considers appropriate.
(4) Rates, terms, and repayment of loans. A loan under this subsection (A) must have an interest rate equal, on the date the loan is made, to the Treasury Department’s cost of funds for obligations of comparable maturity; (B) must have a term equal to the shorter of (i) the Secretary’s projected life, in years, of the eligible project funded by the loan or (ii) 25 years; (C) may defer repayment for no more than five years after the eligible project first begins operating, as the Secretary determines; (D) must be made by the Federal Financing Bank; and (E) must not be subordinate to other financing.
(5) Conflicts of interest. For each project selected for a loan, the Secretary must certify that political influence did not affect the selection.

(e) Improvement. No later than 60 days after September 30, 2008, the Secretary must issue an interim final rule containing regulations the Secretary considers necessary to administer this section and its loans. For an automobile manufacturer to qualify for an award or loan in a particular year, the rule must require that the manufacturer’s adjusted average fuel economy for light duty vehicles produced during the most recent year for which data are available be at least as high as the average fuel economy for all of the manufacturer’s light duty vehicles for model year 2005. For a new manufacturer, or one that has not previously produced equivalent vehicles, the Secretary may use industry averages to determine fuel-economy baselines.

(f) Fees. Administrative costs may be no more than $100,000 or 10 basis points (0.1 percent) of the loan.

(g) Priority. When making awards or loans to manufacturers with existing facilities, the Secretary must prioritize facilities that are oldest, have existed for at least 20 years, or are used mainly to manufacture ultra efficient vehicles. These facilities may currently be idle.

(h) Set aside for small advanced technology vehicle manufacturers and component suppliers.
(1) Covered firm. A “covered firm” is a firm that (A) employs fewer than 500 people and (B) manufactures ultra efficient vehicles, advanced technology vehicles, or components of advanced technology vehicles.
(2) Set aside. Of the funds used to make awards under subsection (b) for each fiscal year, the Secretary must use at least 10 percent to make awards to covered firms or consortia led by a covered firm.

(i) Appointment and pay of personnel.
(1) The Secretary may use direct hiring authority under section 3304(b)(3) of title 5 to appoint the professional and administrative personnel the Secretary considers necessary to perform the Secretary’s functions under this section.
(2) A person appointed under paragraph (1) may not be paid more than the maximum rate payable for GS-15 of the General Schedule under chapter 53 of title 5.
(3) The Secretary may retain consultants the Secretary considers necessary to perform the required functions, under section 1901 of title 41.

(j) Coordination. In carrying out this section, the Secretary must coordinate with relevant vehicle, bioenergy, and hydrogen and fuel-cell demonstration-project activities supported by the Department.

(k) Outreach. In carrying out this section, the Secretary must (1) help applicants complete applications for awards or loans under this section and (2) conduct outreach, including conferences and online programs, to distribute information about awards and loans to potential applicants.

(l) Repealed. Congress repealed this subsection in Pub. L. 117–328, division D, title III, section 308, on December 29, 2022 (136 Stat. 4645).

(m) Report. No later than two years after November 15, 2021, and every three years afterward, the Secretary must submit to Congress a report on projects supported by loans under this section. The report must include (1) a list of the projects, the loan amount for each, and each project’s construction status; (2) each project’s loan-repayment status, including projected future repayments; (3) data on the number of direct and indirect jobs that financed projects retained, restored, or created; (4) the number of new projects expected to receive loans during the next two years, including the projected total loan amount for that period; (5) an evaluation of continuing compliance with the assurances and commitments, and with the predictions, that applicants made under paragraphs (2) and (3) of subsection (d); (6) the total number of applications the Department receives each year; and (7) any other measures the Secretary considers appropriate.