§ 17013.
Advanced technology vehicles manufacturing incentive program
(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 (
42 U.S.C. 7521(i)), 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 (
42 U.S.C. 7401 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 (October 25, 2016));
(C)
a train or locomotive;
(F)
hyperloop technology.
(2)
Combined fuel economy
The term “combined fuel economy” means—
(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 December 30, 2020; and
(2)
engineering integration costs incurred during the period beginning on December 19, 2007, and ending on December 30, 2020.
(d)
Direct loan program
(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
section 3145 of title 40.
(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
1
So in original. Probably should be “or”.
(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
(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.
(i)
Appointment and pay of personnel
(1)
The Secretary may use direct hiring authority pursuant to
section 3304(a)(3) of title 5 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
3
So in original. Probably should be “of 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
section 1901 of title 41.
(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. [Pub. L. 117–328, div. D, title III, § 308], Dec. 29, 2022, [136 Stat. 4645]
(m)
Report
Not later than 2 years after November 15, 2021, 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.
([Pub. L. 110–140, title I, § 136], Dec. 19, 2007, [121 Stat. 1514]; [Pub. L. 110–329, div. A, § 129(c)], Sept. 30, 2008, [122 Stat. 3578]; [Pub. L. 111–85, title III, § 312(a)], Oct. 28, 2009, [123 Stat. 2874]; [Pub. L. 117–58, div. D, title IV, § 40401(b)], Nov. 15, 2021, [135 Stat. 1034]; [Pub. L. 117–169, title V, § 50142(c)], Aug. 16, 2022, [136 Stat. 2044]; [Pub. L. 117–328, div. D, title III, § 308], Dec. 29, 2022, [136 Stat. 4645].)