((a)) ** Definitions** In this section:

((1)) ** Advanced technology vehicle** The term “advanced technology vehicle” means—

((A)) an ultra efficient vehicle or a light duty vehicle that meets—

((i)) the Bin 5 Tier II emission standard established in regulations issued by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act (), or a lower-numbered Bin emission standard;

((ii)) any new emission standard in effect for fine particulate matter prescribed by the Administrator under that Act ( et seq.); 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 a heavy duty vehicle that exceeds 125 percent of the greenhouse gas emissions and fuel efficiency standards established by the final rule of the Environmental Protection Agency entitled “Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles—Phase 2” (81 Fed. Reg. 73478 ());

((C)) a train or locomotive;

((D)) a maritime vessel;

((E)) an aircraft; and

((F)) hyperloop technology.

((2)) ** Combined fuel economy** The term “combined fuel economy” means—

((A)) the combined city/highway miles per gallon values, as reported in accordance with ; and

((B)) in the case of an electric drive vehicle with the ability to recharge from an off-board source, the reported mileage, as determined in a manner consistent with the Society of Automotive Engineers recommended practice for that configuration or a similar practice recommended by the Secretary.

((3)) ** Engineering integration costs** The term “engineering integration costs” includes the cost of engineering tasks relating to—

((A)) incorporating qualifying components into the design of advanced technology vehicles; and

((B)) designing tooling and equipment and developing manufacturing processes and material suppliers for production facilities that produce qualifying components or advanced technology vehicles.

((4)) ** Qualifying components** The term “qualifying components” means components that the Secretary determines to be—

((A)) designed for advanced technology vehicles; and

((B)) installed for the purpose of meeting the performance requirements of advanced technology vehicles.

((5)) ** Ultra efficient vehicle** The term “ultra efficient vehicle” means a fully closed compartment vehicle designed to carry at least 2 adult passengers that achieves—

((A)) at least 75 miles per gallon while operating on gasoline or diesel fuel;

((B)) at least 75 miles per gallon equivalent while operating as a hybrid electric-gasoline or electric-diesel vehicle; or

((C)) at least 75 miles per gallon equivalent while operating as a fully electric vehicle.

((b)) ** Advanced vehicles manufacturing facility** The Secretary shall provide facility funding awards under this section to automobile manufacturers, ultra efficient vehicle manufacturers, advanced technology vehicle manufacturers, and component suppliers to pay not more than 30 percent of the cost of—

((1)) reequipping, expanding, or establishing a manufacturing facility in the United States to produce—

((A)) qualifying advanced technology vehicles;

((B)) qualifying components; or

((C)) ultra efficient vehicles; and

((2)) engineering integration performed in the United States of qualifying vehicles, ultra efficient vehicles, and qualifying components.

((c)) ** Period of availability** An award under subsection (b) shall apply to—

((1)) facilities and equipment placed in service before ; and

((2)) engineering integration costs incurred during the period beginning on , and ending on .

((d)) ** Direct loan program**

((1)) ** In general** Not later than 1 year after , and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide loans to eligible individuals and entities (as determined by the Secretary) for the costs of activities described in subsection (b). The loans shall be made through the Federal Financing Bank, with the full faith and credit of the United States Government on the principal and interest. The full credit subsidy shall be paid by the Secretary using appropriated funds.December 19, 20072007-12-19

((2)) ** Application** An applicant for a loan under this subsection shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a written assurance that—

((A)) all laborers and mechanics employed by contractors or subcontractors during construction, alteration, or repair that is financed, in whole or in part, by a loan under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with sections 3141–3144, 3146, and 3147 of title 40; and

((B)) the Secretary of Labor shall, with respect to the labor standards described in this paragraph, have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and .

((3)) ** Selection of eligible projects**

((A)) ** In general** The Secretary shall select eligible projects to receive loans under this subsection if the Secretary determines that—

((i)) the loan recipient—

((I)) has a reasonable prospect of repaying the principal and interest on the loan;

((II)) will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; and

((III)) has met such other criteria as may be established and published by the Secretary; and

((ii)) the amount of the loan (when combined with amounts available to the loan recipient from other sources) will be sufficient to carry out the project.

((B)) ** Reasonable prospect of repayment** The Secretary shall base a determination of whether there is a reasonable prospect of repayment of the principal and interest on a loan under subparagraph (A)(i)(I) on a comprehensive evaluation of whether the loan recipient has a reasonable prospect of repaying the principal and interest, including, as applicable, an evaluation of—

((i)) the strength of the contractual terms of the eligible project (if commercially reasonably available);

((ii)) the forecast of noncontractual cash flows supported by market projections from reputable sources, as determined by the Secretary;

((iii)) cash sweeps and other structure enhancements;

((iv)) the projected financial strength of the loan recipient—

((I)) at the time of loan close; and

((II)) throughout the loan term after the project is completed;

((v)) the financial strength of the investors and strategic partners of the loan recipient, if applicable; and

((vi)) other financial metrics and analyses that are relied on by the private lending community and nationally recognized credit rating agencies, as determined appropriate by the Secretary.

((4)) ** Rates, terms, and repayment of loans** A loan provided under this subsection—

((A)) shall have an interest rate that, as of the date on which the loan is made, is equal to the cost of funds to the Department of the Treasury for obligations of comparable maturity;

((B)) shall have a term equal to the lesser of—

((i)) the projected life, in years, of the eligible project to be carried out using funds from the loan, as determined by the Secretary; and

((ii)) 25 years;

((C)) may be subject to a deferral in repayment for not more than 5 years after the date on which the eligible project carried out using funds from the loan first begins operations, as determined by the Secretary;

((D)) shall be made by the Federal Financing Bank; and

((E)) shall be subject to the condition that the loan is not subordinate to other financing.

((5)) ** Conflicts of interest** For each eligible project selected to receive a loan under this subsection, the Secretary shall certify that political influence did not impact the selection of the eligible project.

((e)) ** Improvement** Not later than 60 days after , the Secretary shall promulgate an interim final rule establishing regulations that the Secretary deems necessary to administer this section and any loans made by the Secretary pursuant to this section. Such interim final rule shall require that, in order for an automobile manufacturer to be eligible for an award or loan under this section during a particular year, the adjusted average fuel economy of the manufacturer for light duty vehicles produced by the manufacturer during the most recent year for which data are available shall be not less than the average fuel economy for all light duty vehicles of the manufacturer for model year 2005. In order to determine fuel economy baselines for eligibility of a new manufacturer or a manufacturer that has not produced previously produced equivalent vehicles, the Secretary may substitute industry averages.September 30, 20082008-09-30

((f)) ** Fees** Administrative costs shall be no more than $100,000 or 10 basis point  of the loan.2

((g)) ** Priority** The Secretary shall, in making awards or loans to those manufacturers that have existing facilities, give priority to those facilities that are oldest or have been in existence for at least 20 years or are utilized primarily for the manufacture of ultra efficient vehicles. Such facilities can currently be sitting idle.

((h)) ** Set aside for small advanced technology vehicle manufacturers and component suppliers**

((1)) ** Definition of covered firm** In this subsection, the term “covered firm” means a firm that—

((A)) employs less than 500 individuals; and

((B)) manufactures ultra efficient vehicles, advanced technology vehicles, or components of advanced technology vehicles.

((2)) ** Set aside** Of the amount of funds that are used to provide awards for each fiscal year under subsection (b), the Secretary shall use not less than 10 percent to provide awards to covered firms or consortia led by a covered firm.

((i)) ** Appointment and pay of personnel**

((1)) The Secretary may use direct hiring authority pursuant to to appoint such professional and administrative personnel as the Secretary deems necessary to the discharge of the Secretary’s functions under this section.

((2)) The rate of pay for a person appointed pursuant to paragraph (1) shall not exceed the maximum rate payable for GS-15 of the General Schedule under chapter 53 such  title 5.

((3)) The Secretary may retain such consultants as the Secretary deems necessary to the discharge of the functions required by this section, pursuant to .

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

((k)) ** Outreach** In carrying out this section, the Secretary shall—

((1)) provide assistance with the completion of applications for awards or loans under this section; and

((2)) conduct outreach, including through conferences and online programs, to disseminate information on awards and loans under this section to potential applicants.

((l)) ** Repealed. , , **

((m)) ** Report** Not later than 2 years after , and every 3 years thereafter, the Secretary shall submit to Congress a report on the status of projects supported by a loan under this section, including—

((1)) a list of projects receiving a loan under this section, including the loan amount and construction status of each project;

((2)) the status of the loan repayment for each project, including future repayment projections;

((3)) data regarding the number of direct and indirect jobs retained, restored, or created by financed projects;

((4)) the number of new projects projected to receive a loan under this section in the next 2 years, including the projected aggregate loan amount over the next 2 years;

((5)) evaluation of ongoing compliance with the assurances and commitments, and of the predictions, made by applicants pursuant to paragraphs (2) and (3) of subsection (d);

((6)) the total number of applications received by the Department each year; and

((7)) any other metrics the Secretary determines appropriate.