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§ 2506. —  Demonstrations.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 15USC2506]

 
                      TITLE 15--COMMERCE AND TRADE
 
   CHAPTER 52--ELECTRIC AND HYBRID VEHICLE RESEARCH, DEVELOPMENT, AND 
                              DEMONSTRATION
 
Sec. 2506. Demonstrations


(a) Data development; baseline data; acquisition of vehicles

    Within 12 months after September 17, 1976, the Secretary of Energy 
shall develop data characterizing the present state-of-the-art with 
respect to electric and hybrid vehicles. The data so developed shall 
serve as baseline data to be utilized in order (1) to compare 
improvements in electric and hybrid vehicle technologies; (2) to assist 
in establishing the performance standards under subsection (b)(1) of 
this section; and (3) to otherwise assist in carrying out the purposes 
of this section. In developing any such data, the Secretary of Energy 
shall purchase or lease a reasonable number of such vehicles or enter 
into such other arrangements as the Secretary of Energy deems necessary 
to carry out the purposes of this subsection.

(b) Performance standards; factors considered; vehicle uses; revision; 
        transmission of standards to Congress

    (1) Within 15 months after September 17, 1976, the Secretary of 
Energy shall promulgate rules establishing performance standards for 
electric and hybrid vehicles to be purchased or leased pursuant to 
subsection (c)(1) of this section. The standards so developed shall take 
into account the factors of energy conservation, urban traffic 
characteristics, patterns of use for ``second'' vehicles, consumer 
preferences, maintenance needs, battery recharging characteristics, 
agricultural requirements, materials demand and their ability to be 
recycled, vehicle safety and insurability, cost, and other relevant 
considerations, as such factors and considerations particularly apply to 
or affect vehicles with electric or hybrid propulsion systems. Such 
standards are to be developed taking into account (A) the best current 
state-of-the-art, and (B) reasonable estimates as to the future state-
of-the-art, based on projections of results from the research and 
development conducted under section 2505 of this title. In developing 
such standards, the Secretary of Energy shall consult with appropriate 
experts concerning design needs for electric and hybrid vehicles which 
are compatible with long-range urban planning, traffic management, and 
vehicle safety.
    (2) Separate performance standards shall be established under 
subsection (b)(1) of this section with respect to (A) electric or hybrid 
vehicles for personal use, and (B) commercial electric or hybrid 
vehicles. Such performance standards shall represent the minimum level 
of performance which is required with respect to any vehicles purchased 
or leased pursuant to subsection (c) of this section. Initial 
performance standards under subsection (b)(1) of this section shall be 
set at such levels as the Secretary of Energy determines are necessary 
to promote the acquisition and use of such vehicles for transportation 
purposes which are within the capability (as determined by the Secretary 
of Energy) of electric and hybrid vehicles.
    (3) Such performance standards shall be revised, by rule, 
periodically as the state-of-the-art improves.
    (4) The Secretary of Energy shall transmit to the Speaker of the 
House of Representatives and the President of the Senate, and to the 
Committee on Science, Space, and Technology of the House of 
Representatives and the Committee on Energy and Natural Resources of the 
Senate, the performance standards developed under paragraph (1) and all 
revised performance standards established in connection with the 
demonstrations specified in subsection (c)(2) of this section.

(c) Contracts for vehicle purchase or lease; delivery requirements; 
        demonstration criteria and duration; availability of information 
        for leasing and procurements

    (1) The Secretary of Energy shall, within 6 months after the date of 
promulgation of performance standards pursuant to subsection (b)(1) of 
this section, institute the first contracts for the purchase or lease of 
electric or hybrid vehicles which satisfy the performance standards set 
forth under subsection (b)(1) of this section. The delivery of such 
vehicles shall be completed according to the expedited best effort of 
the administering agency and the selected manufacturer. To the extent 
practicable, vehicles purchased or leased under such contracts shall 
represent a cross-section of the available technologies and of actual or 
potential vehicle use.
    (2) Thereafter, according to a planned schedule, the Secretary of 
Energy shall contract for the purchase or lease of additional electric 
or hybrid vehicles which satisfy amended performance standards and 
represent continuing improvements in state-of-the-art. In conducting 
demonstrations, the Secretary of Energy shall consider--
        (A) the need and intent of the Congress to stimulate and 
    encourage private sector production as well as public knowledge, 
    acceptance, and use of electric and hybrid vehicles; and
        (B) demonstration of varying degrees of vehicle operations, 
    management, and control for maximum widespread effectiveness and 
    exposure to public use.

    (3) The demonstration period shall extend through the fiscal year 
1986, with purchase or leasing continuing through the fiscal year 1984. 
During the demonstration period the Secretary of Energy shall 
demonstrate 7,500 to 10,000 electric and hybrid vehicles. No more than 
400 vehicles may be procured for this purpose during fiscal year 1978. 
In order to allow industry time for advanced planning, the size and 
nature of projected electric and hybrid vehicle leasing and procurements 
will be made public by the administering agency. Publications under the 
preceding sentence (each covering a period of two years) shall be 
released annually starting at an appropriate time in the fiscal year 
1978.

(d) Arrangements for the demonstration of vehicles

    The Secretary of Energy, in supervising the demonstration of 
vehicles acquired under subsection (c) of this section, shall make such 
arrangements as may be necessary or appropriate--
        (1)(A) to make such vehicles available to Federal agencies and 
    to State or local governments and other persons for individual or 
    business use (including farms). The individuals and businesses 
    involved shall be selected by an equitable process which assures 
    that the Secretary of Energy will receive accurate and adequate data 
    on vehicle performance, including representative geographical and 
    climatological information and data on user reaction to the 
    utilization of electric and hybrid vehicles. Such individuals and 
    businesses shall be given the option of purchasing or leasing such 
    vehicles under terms and conditions which will promote their 
    widespread use;
        (B) to pay the differential operating costs of such vehicles to 
    the extent necessary to assure the adequate demonstration of such 
    vehicles;
        (2) for demonstration maintenance projects, including 
    maintenance organization and equipment needs and model training 
    projects for maintenance procedures; and
        (3) for the dissemination of data on electric and hybrid vehicle 
    safety and operating characteristics (including nontechnical 
    descriptive data which shall be made available by the Government 
    Printing Office) (A) to Federal, State, and local consumer affairs 
    agencies and groups; (B) to Federal, State, and local agricultural 
    and rural agencies and groups; and (C) to the public.

(e) Displacement of private procurement; reports to congressional 
        committees; reduction of number purchased

    (1) At least 60 days prior to entering into any contract for the 
purchase or lease of any electric or hybrid vehicle under subsection 
(c)(1) of this section or any advanced electric or hybrid vehicle under 
subsection (c)(2) of this section, the Secretary of Energy shall 
determine (A) if the purchase or lease of the number of such vehicles 
specified in such subsection (c)(1) or (c)(2) of this section will, with 
high probability, displace the normal level of private procurement of 
such vehicles which would conform to the applicable performance 
standards promulgated pursuant to subsection (b) of this section and 
which would be used in the United States, and (B) if such displacement 
will occur, the necessary extent of such displacement in order to carry 
out the purposes of this chapter.
    (2) The Secretary of Energy shall reduce the number of vehicles for 
which he shall contract for the purchase or lease under subsection 
(c)(1) or (c)(2) of this section by the number determined under 
subsection (e)(1)(A) of this section as modified by subsection (e)(1)(B) 
of this section, except in no event shall he contract for the purchase 
or lease pursuant to subsection (c)(1) of this section of less than 
1,000 electric or hybrid vehicles, and in no event shall he contract for 
the purchase or lease pursuant to subsection (c)(2) of this section of 
less than 2,500 advanced electric or hybrid vehicles unless he 
determines on the basis of responses to the solicitations for proposals 
for such contracts, under the provisions of subsections (c)(1) and 
(c)(2) of this section that lesser numbers of such vehicles which 
satisfy the applicable performance standards will be available within 
the delivery periods. All other provisions of subsection (c) of this 
section shall apply.

(Pub. L. 94-413, Sec. 7, Sept. 17, 1976, 90 Stat. 1263; Pub. L. 95-91, 
title III, Sec. 301(a), Aug. 4, 1977, 91 Stat. 577; Pub. L. 95-238, 
title VI, Sec. 601, Feb. 25, 1978, 92 Stat. 91; Pub. L. 96-470, title I, 
Sec. 105, Oct. 19, 1980, 94 Stat. 2238; Pub. L. 97-375, title I, 
Sec. 106(b), Dec. 21, 1982, 96 Stat. 1820; Pub. L. 103-437, 
Sec. 5(d)(1), Nov. 2, 1994, 108 Stat. 4582.)


                               Amendments

    1994--Subsec. (b)(4). Pub. L. 103-437 substituted ``Committee on 
Science, Space, and Technology'' for ``Committee on Science and 
Technology''.
    1982--Subsec. (e)(1). Pub. L. 97-375 struck out provision that at 
the time any determination on the displacement of private procurement of 
hybrid vehicles was made, that Secretary of Energy transmit such 
determination, with relevant supporting information, to the Committee on 
Science and Technology of the House and the Committee on Commerce, 
Science, and Transportation of the Senate.
    1980--Subsec. (c)(4). Pub. L. 96-470 struck out par. (4) which 
provided that if the Administrator determines on the basis of his annual 
review of the program that at least 200 vehicles cannot be added to the 
project during fiscal year 1978, at least 600 during fiscal year 1979, 
at least 1,700 during fiscal year 1980, and at least 7,500 in the 
aggregate during the fiscal years 1981 through 1984, he immediately 
forward a detailed explanation to Congress.
    1978--Subsec. (b)(3). Pub. L. 95-238, Sec. 601(a), struck out 
requirement that rules promulgated under par. (1) be amended not later 
than 6 months prior to the date for contracts specified in subsec. 
(c)(2) of this section.
    Subsec. (b)(4). Pub. L. 95-238, Sec. 601(b), substituted provisions 
relating to transmission of standards developed under par. (1) and all 
revised standards established in connection with the demonstrations 
specified in subsec. (c)(2) of this section, for provisions relating to 
transmission of standards developed under par. (1) as revised and 
currently in effect prior to contracts for the production of vehicles 
under subsec. (c)(2) of this section.
    Subsec. (c). Pub. L. 95-238, Sec. 601(c), in par. (1) substituted 
provisions relating to the first contracts for purchase or lease of 
vehicles and delivery of such vehicles, for provisions relating to 
contracts for the purchase or lease of 2,500 vehicles and delivery of 
such vehicles within 39 months after Sept. 17, 1976, in par. (2) 
substituted provisions relating to contracts for the purchase or lease 
of additional vehicles which satisfy amended performance standards and 
are improvements in the state-of-the-art and criteria for 
demonstrations, for provisions relating to contracts for the purchase or 
lease of 5,000 advanced vehicles and delivery of such vehicles within 72 
months after Sept. 17, 1976, with an extention of the delivery period 
for 6 additional months, and added pars. (3) and (4).

                         Change of Name

    Committee on Science, Space, and Technology of House of 
Representatives treated as referring to Committee on Science of House of 
Representatives by section 1(a) of Pub. L. 104-14, set out as a note 
preceding section 21 of Title 2, The Congress.

                          Transfer of Functions

    ``Secretary of Energy'' substituted for ``Administrator'' in 
subsecs. (a), (b)(1), (2), (d), and (e) pursuant to section 301(a) of 
Pub. L. 95-91, see Codification note set out under section 2502 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2507, 2510, 2512 of this 
title; title 42 section 2473.



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