Low vehicle energy performance fee

(a) In general Section 4064 is amended to read as follows: 4064. Low vehicle energy performance fee (a) Imposition of tax There is hereby imposed on the sale by the manufacturer of each low energy performance vehicle a tax equal to the product of $5,000, multiplied by the quotient of— (1) the excess of— (A) the median vehicle energy performance for the model year immediately preceding the model year of such vehicle, over (B) the vehicle energy performance of such vehicle, divided by (2) the excess of— (A) the best vehicle energy performance for the model year immediately preceding the model year of such vehicle, over (B) the median vehicle energy performance for the model year immediately preceding the model year of such vehicle. (b) Low energy performance vehicle For purposes of this section— (1) In general The term low energy performance vehicle means a passenger automobile or light truck— (A) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, (B) which achieves vehicle energy performance that is lower than the median vehicle energy performance, and (C) which is made by a manufacturer beginning with model year 2029. (2) Exception for certain vehicles The term low energy performance vehicle does not include any vehicle— (A) which— (i) has a gross vehicle weight rating of more than 8,500 pounds, and (ii) is determined by the Secretary to be a vehicle which is designed for commercial use, or (B) sold for use and used— (i) as an ambulance or combination ambulance-hearse, (ii) by the United States or by a State or local government for police or other law enforcement purposes, or (iii) for other emergency uses prescribed by the Secretary by regulations. (c) Other Definitions For purposes of this section: (1) Vehicle energy performance The term vehicle energy performance means, with respect to any vehicle, the combined fuel-economy rating determined for the model and model year of such vehicle. (2) Median vehicle energy performance The term median vehicle energy performance means, with respect to any model year, the median combined fuel-economy rating for all new motor vehicles of such model year sold in the United States. (3) Best vehicle energy performance The term best vehicle energy performance means, with respect to any model year, the highest combined fuel-economy rating of any model of motor vehicle of such model year sold the United States. (4) Combined fuel-economy rating The term combined fuel-economy rating means the combined fuel-economy rating determined in accordance with section 32908 of title 49, United States Code, and expressed in miles per gallon of gasoline equivalent. (5) Model year The term model year has the meaning given such term under section 32901(a) of such title 49. (6) Motor vehicle The term motor vehicle means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. (7) Other terms The terms automobile, passenger automobile, light truck, and manufacturer have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.). (d) Inflation adjustment In the case of any model year beginning in a calendar year after 2029, each dollar amount in subsection (a)(2) shall be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the model year begins, determined by substituting 2028 for 2016 in subparagraph (A)(ii) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100.. (b) Conforming amendments (1) The heading for part I of subchapter A of chapter 32 is amended by striking Gas and inserting Fuel. (2) The table of parts for subchapter A of chapter 32 is amended by striking Gas in the item relating to part I and inserting Fuel. (3) The table of sections for part I of subchapter A of chapter 32 is amended by striking Gas in the item relating to section 4064 and inserting Fuel. (4) The heading for subsection (d) of section 1016 is amended by striking gas guzzler tax and inserting low vehicle energy performance fee. (5) The heading for subsection (e) of section 4217 is amended by striking gas guzzler tax and inserting low vehicle energy performance fee. (6) The heading for subparagraph (B) of section 4217(e)(3) is amended by striking gas guzzler tax and inserting low vehicle energy performance fee. (7) Section 4217(e) is amended by striking gas guzzler tax each place it appears and inserting low vehicle energy performance fee.