A bill to conserve gasoline by directing the Secretary of Transportation to establish and enforce mandatory fuel economy performance standards for new automobiles and light-duty trucks, to establish a research and development program leading to advanced automobile prototypes.

(Measure passed Senate, amended, roll call #285 (65-21))

=Title I: Automobile Fuel Economy= - Automobile Fuel Economy Act - Adds a new title to the Motor Vehicle Information and Cost Savings Act. Declares it to be the purpose of this title to: (1) assure, to the maximum extent practicable, that manufacturers of automobiles and light duty trucks reduce the amount of fuel consumed by new automobiles and light duty trucks per mile traveled without reducing standards for safety, damageability, or environmental quality; and (2) increase the industrywide average fuel economy for new automobiles.

Directs the Secretary of Transportation to establish yearly minimum national fuel economy standards, applicable to each maufacturer's average production of new automobiles or new light duty trucks, as appropriate. States that the standards would apply to model years 1977 through 1985. Requires such standards for automobiles to achieve at least a 50 percent improvement in the industrywide new car fuel economy average by model year 1980 relative to 1974 models, and at least a 100 percent improvement by model year 1985.

Provides that, within 120 days after the date of enactment of this title, the Administrator of the Environmental Protection Agency shall promulgate procedures by rule for evaluating and confirming fuel economy representations of retrofit devices.

Establishes, within the Environmental Protection Agency, a program to demonstrate the potential for fuel savings when existing motor vehicles are equipped with retrofit devices.

Authorizes appropriations to carry out such provisions relating to retrofit devices.

Authorizes the Secretary to modify such goals if he finds that they cannot reasonably be attained. Provides that such modified goals would take effect 60 days after notification of the Congress, subject only to a resolution of disapproval by either House.

Exempts light duty trucks from the 50 and 100 percent improvement goals, but provides that they would be subject to minimum average fuel economy performance standards set for each model year at the maximum feasible level by the Secretary.

Requires each manufacturer and importer to produce automobiles or light duty trucks, as appropriate, which on the average conform to or exceed the applicable fuel economy standard specified for each model year.

Provides that, beginning not later than 180 days after the date of enactment of this title, each manufacturer shall cause to be affixed to, and each dealer shall cause to be maintained on, each new automobile and new light duty truck, in a prominent place, a Motor Vehicle Energy Guide prepared and issued by such manufacturer; and that such Motor Vehicle Energy Guide shall set forth, in clear and understandable language and form, detailed information with respect to: (1) the fuel economy for such automobile or light duty truck, as appropriate, as determined pursuant to this title; and (2) the estimated annual fuel cost associated with the operation of such automobile or light duty truck.

Requires the Federal Trade Commission to identify the categories and types of advertisements for new automobiles and new light duty trucks which it shall direct to contain the information which is required under this title. Provides that in accordance with rules to be established by the Commission, if any such advertisement displays the purchase price or fuel economy characteristics of a new automobile or light duty truck, the Commission may require such advertisement to include a statement as to the estimated annual fuel cost or the fuel economy of such automobile or light duty truck, whichever is appropriate.

Makes it unlawful for any dealer to sell, or offer for sale in commerce, any new automobile or new light duty truck, unless the estimated annual fuel cost of such automobile or light duty truck, is disclosed by such dealer prior to any such sale.

Provides that if a manufacturer fails to meet the required average fuel economy standard, the manufacturer is liable for civil penalties of from $50 to $100 per automobile or light duty truck, as appropriate, for each mile per gallon, or fraction thereof, by which the average fuel economy of automobiles or light duty trucks manufactured or imported falls short of the applicable standard.

Requires each manufacturer to affix in a prominent place on each new automobile or new light duty truck, as appropriate, a sticker indicating the fuel economy which a purchaser can expect from such automobile or light duty truck, and the estimated average fuel costs associated with the operation of such vehicle.

Requires such information to also appear in advertisements in a manner directed by the Federal Trade Commission. Prohibits States and political subdivisions from adopting standards for fuel economy or fuel economy labeling and advertising which are inconsistent with this Act.

Directs the Secretary to prepare a report on the 55 mph speed limit now in effect and to include in such report an examination of the extent of compliance, potential gasoline savings, and the feasibility of requiring the installation of speed-limiting devices on all new automobiles, new light duty trucks, and other new motor vehicles.

Requires the Secretary to report within 180 days on his recommendations regarding speed limiting devices known as governors.

Directs the Secretary to prepare and submit to the Congress and the President a comprehensive report setting forth findings and containing conclusions and recommendations with respect to whether or not electric vehicles and other vehicles not consuming fuel (as defined in this title) should be covered by this title.

Authorizes appropriations through fiscal year 1978 to carry out the provisions of this title.

=Title II: Research and Development= - Automotive Transport Research and Development Act - Adds a new title to the Motor Vehicle Information and Cost Savings Act. Authorizes and directs the Secretary of Transportation to make contracts and grants and support through obligation guarantees for research and development leading to production prototypes of advanced automobiles within 4 years from the date of enactment of this title, or within the shortest practicable time consistent with appropriate research and development techniques.

Requires the Secretary to preserve, enhance, and facilitate competition in research, development, and production of existing and alternative automobiles and automobile components.

Authorizes to be appropriated to carry out the purposes of this title not to exceed $55,000,000 for fiscal year 1976, not to exceed $20,000,000 for the transitional quarter ending September 30, 1976, and not to exceed $100,000,000 for fiscal year 1977.

=Title III: Amendments to Title III of Motor Vehicle Information and Cost Savings Act= - Directs the Secretary to establish one (and no more than three) new special motor vehicle diagnostic inspection demonstration project to assist in the research, rapid development, and evaluation of advanced inspection, analysis, and diagnostic equipment suitable for use by the States in high volume inspection facilities designed to assess the safety, noise, emissions, and fuel efficiency of motor vehicles.

Requires the Secretary to evaluate the existing diagnostic analysis and test equipment available for use in the small automotive repair establishments and report to the Congress, within 18 months after enactment of this Act, as to the scope of research and development required to make this equipment compatible with the most costly and complex State vehicle inspection and diagnostic equipment.

Requires the Secretary to prepare and submit, within 18 months after the date of enactment of this Act, to the Congress and the President a comprehensive report setting forth findings and containing conclusions and recommendations with respect to an inspection and other possible programs designed to maintain and improve the fuel economy of motor vehicles throughout their useful life.

Authorizes appropriations to carry out the provisions of this Act through fiscal year 1978.