HR 6170 IHCommentsClose CommentsPermalink

To require the inclusion of coal-derived fuel at certain volumes in aviation fuel, motor vehicle fuel, home heating oil, and boiler fuel.CommentsClose CommentsPermalink

June 3, 2008

Mrs. CAPITO (for herself and Mr. SHIMKUS) introduced the following bill; which was referred to the Committee on Energy and CommerceCommentsClose CommentsPermalink

To require the inclusion of coal-derived fuel at certain volumes in aviation fuel, motor vehicle fuel, home heating oil, and boiler fuel.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `Clean Coal-Derived Fuels for Energy Security Act of 2008'.CommentsClose CommentsPermalink

SEC. 2. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) CLEAN COAL-DERIVED FUEL-CommentsClose CommentsPermalink





(A) IN GENERAL- The term `clean coal-derived fuel' means aviation fuel, motor vehicle fuel, home heating oil, or boiler fuel that is--CommentsClose CommentsPermalink





(i) substantially derived from the coal resources of the United States; andCommentsClose CommentsPermalink





(ii) refined or otherwise processed at a facility located in the United States that captures up to 100 percent of the carbon dioxide emissions that would otherwise be released at the facility.CommentsClose CommentsPermalink





(B) INCLUSIONS- The term `clean coal-derived fuel' may include any other resource that is extracted, grown, produced, or recovered in the United States.CommentsClose CommentsPermalink





(2) COVERED FUEL- The term `covered fuel' means--CommentsClose CommentsPermalink





(A) aviation fuel;CommentsClose CommentsPermalink





(B) motor vehicle fuel;CommentsClose CommentsPermalink





(C) home heating oil; andCommentsClose CommentsPermalink





(D) boiler fuel.CommentsClose CommentsPermalink





(3) SMALL REFINERY- The term `small refinery' means a refinery for which the average aggregate daily crude oil throughput for a calendar year (as determined by dividing the aggregate throughput for the calendar year by the number of days in the calendar year) does not exceed 75,000 barrels.CommentsClose CommentsPermalink

SEC. 3. CLEAN COAL-DERIVED FUEL PROGRAM.

(a) Program-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the President shall promulgate regulations to ensure that covered fuel sold or introduced into commerce in the United States (except in noncontiguous States or territories), on an annual average basis, contains the applicable volume of clean coal-derived fuel determined in accordance with paragraph (4).CommentsClose CommentsPermalink





(2) PROVISIONS OF REGULATIONS- Regardless of the date of promulgation, the regulations promulgated under paragraph (1)--CommentsClose CommentsPermalink





(A) shall contain compliance provisions applicable to refineries, blenders, distributors, and importers, as appropriate, to ensure that--CommentsClose CommentsPermalink





(i) the requirements of this subsection are met; andCommentsClose CommentsPermalink





(ii) clean coal-derived fuels produced from facilities for the purpose of compliance with this Act result in life cycle greenhouse gas emissions that are not greater than gasoline; andCommentsClose CommentsPermalink





(B) shall not--CommentsClose CommentsPermalink





(i) restrict geographic areas in the contiguous United States in which clean coal-derived fuel may be used; orCommentsClose CommentsPermalink





(ii) impose any per-gallon obligation for the use of clean coal-derived fuel.CommentsClose CommentsPermalink





(3) RELATIONSHIP TO OTHER REGULATIONS- Regulations promulgated under this paragraph shall, to the maximum extent practicable, incorporate the program structure, compliance and reporting requirements established under the final regulations promulgated to implement the renewable fuel program established by the amendment made by section 1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 1067).CommentsClose CommentsPermalink





(4) APPLICABLE VOLUME-CommentsClose CommentsPermalink





(A) CALENDAR YEARS 2015 THROUGH 2022- For the purpose of this subsection, the applicable volume for any of calendar years 2015 through 2022 shall be determined in accordance with the following table:CommentsClose CommentsPermalink

2015CommentsClose CommentsPermalink

--0.75CommentsClose CommentsPermalink

2016CommentsClose CommentsPermalink

--1.5CommentsClose CommentsPermalink

2017CommentsClose CommentsPermalink

--2.25CommentsClose CommentsPermalink

2018CommentsClose CommentsPermalink

--3.00CommentsClose CommentsPermalink

2019CommentsClose CommentsPermalink

--3.75CommentsClose CommentsPermalink

2020CommentsClose CommentsPermalink

--4.5CommentsClose CommentsPermalink

2021CommentsClose CommentsPermalink

--5.25CommentsClose CommentsPermalink

2022CommentsClose CommentsPermalink

--6.0.CommentsClose CommentsPermalink

(B) CALENDAR YEAR 2023 AND THEREAFTER- Subject to subparagraph (C), for the purposes of this subsection, the applicable volume for calendar year 2023 and each calendar year thereafter shall be determined by the President, in coordination with the Secretary and the Administrator of the Environmental Protection Agency, based on a review of the implementation of the program during calendar years 2015 through 2022, including a review of--CommentsClose CommentsPermalink





(i) the impact of clean coal-derived fuels on the energy security of the United States;CommentsClose CommentsPermalink





(ii) the expected annual rate of future production of clean coal-derived fuels; andCommentsClose CommentsPermalink





(iii) the impact of the use of clean coal-derived fuels on other factors, including job creation, rural economic development, and the environment.CommentsClose CommentsPermalink





(C) MINIMUM APPLICABLE VOLUME- For the purpose of this subsection, the applicable volume for calendar year 2023 and each calendar year thereafter shall be equal to the product obtained by multiplying--CommentsClose CommentsPermalink





(i) the number of gallons of covered fuel that the President estimates will be sold or introduced into commerce in the calendar year; andCommentsClose CommentsPermalink





(ii) the ratio that--CommentsClose CommentsPermalink





(I) 6,000,000,000 gallons of clean coal-derived fuel; bears toCommentsClose CommentsPermalink





(II) the number of gallons of covered fuel sold or introduced into commerce in calendar year 2022.CommentsClose CommentsPermalink





(b) Applicable Percentages-CommentsClose CommentsPermalink





(1) PROVISION OF ESTIMATE OF VOLUMES OF CERTAIN FUEL SALES- Not later than October 31 of each of calendar years 2015 through 2021, the Administrator of the Energy Information Administration shall provide to the President an estimate, with respect to the following calendar year, of the volumes of covered fuel projected to be sold or introduced into commerce in the United States.CommentsClose CommentsPermalink





(2) DETERMINATION OF APPLICABLE PERCENTAGES-CommentsClose CommentsPermalink





(A) IN GENERAL- Not later than November 30 of each of calendar years 2015 through 2022, based on the estimate provided under paragraph (1), the President shall determine and publish in the Federal Register, with respect to the following calendar year, the clean coal-derived fuel obligation that ensures that the requirements of subsection (a) are met.CommentsClose CommentsPermalink





(B) REQUIRED ELEMENTS- The clean coal-derived fuel obligation determined for a calendar year under subparagraph (A) shall--CommentsClose CommentsPermalink





(i) be applicable to refineries, blenders, and importers, as appropriate;CommentsClose CommentsPermalink





(ii) be expressed in terms of a volume percentage of covered fuel sold or introduced into commerce in the United States; andCommentsClose CommentsPermalink





(iii) subject to paragraph (3)(A), consist of a single applicable percentage that applies to all categories of persons specified in clause (i).CommentsClose CommentsPermalink





(3) ADJUSTMENTS- In determining the applicable percentage for a calendar year, the President shall make adjustments--CommentsClose CommentsPermalink





(A) to prevent the imposition of redundant obligations on any person specified in paragraph (2)(B)(i); andCommentsClose CommentsPermalink





(B) to account for the use of clean coal-derived fuel during the previous calendar year by small refineries that are exempt under subsection (f).CommentsClose CommentsPermalink





(c) Volume Conversion Factors for Clean Coal-Derived Fuels Based on Energy Content-CommentsClose CommentsPermalink





(1) IN GENERAL- For the purpose of subsection (a), the President shall assign values to specific types of clean coal-derived fuel for the purpose of satisfying the fuel volume requirements of subsection (a)(4) in accordance with this subsection.CommentsClose CommentsPermalink





(2) ENERGY CONTENT RELATIVE TO DIESEL FUEL- For clean coal-derived fuels, 1 gallon of the clean coal-derived fuel shall be considered to be the equivalent of 1 gallon of diesel fuel multiplied by the ratio that--CommentsClose CommentsPermalink





(A) the number of British thermal units of energy produced by the combustion of 1 gallon of the clean coal-derived fuel (as measured under conditions determined by the Secretary); bears toCommentsClose CommentsPermalink





(B) the number of British thermal units of energy produced by the combustion of 1 gallon of diesel fuel (as measured under conditions determined by the Secretary to be comparable to conditions described in subparagraph (A)).CommentsClose CommentsPermalink





(d) Credit Program-CommentsClose CommentsPermalink





(1) IN GENERAL- The President, in consultation with the Secretary and the clean coal-derived fuel requirement of this section.CommentsClose CommentsPermalink





(2) MARKET TRANSPARENCY- In carrying out the credit program under this subsection, the President shall facilitate price transparency in markets for the sale and trade of credits, with due regard for the public interest, the integrity of those markets, fair competition, and the protection of consumers.CommentsClose CommentsPermalink





(e) Waivers-CommentsClose CommentsPermalink





(1) IN GENERAL- The President, in consultation with the Secretary and the Administrator of the Environmental Protection Agency, may waive the requirements of subsection (a) in whole or in part on petition by 1 or more States by reducing the national quantity of clean coal-derived fuel required under subsection (a), based on a determination by the President (after public notice and opportunity for comment), that--CommentsClose CommentsPermalink





(A) implementation of the requirement would severely harm the economy or environment of a State, a region, or the United States; orCommentsClose CommentsPermalink





(B) extreme and unusual circumstances exist that prevent distribution of an adequate supply of domestically produced clean coal-derived fuel to consumers in the United States.CommentsClose CommentsPermalink





(2) PETITIONS FOR WAIVERS- The President, in consultation with the Secretary and the Administrator of the Environmental Protection Agency, shall approve or disapprove a State petition for a waiver of the requirements of subsection (a) within 90 days after the date on which the petition is received by the President.CommentsClose CommentsPermalink





(3) TERMINATION OF WAIVERS- A waiver granted under paragraph (1) shall terminate after 1 year, but may be renewed by the President after consultation with the Secretary and the Administrator of the Environmental Protection Agency.CommentsClose CommentsPermalink





(f) Small Refineries-CommentsClose CommentsPermalink





(1) TEMPORARY EXEMPTION-CommentsClose CommentsPermalink





(A) IN GENERAL- The requirements of subsection (a) shall not apply to small refineries until calendar year 2018.CommentsClose CommentsPermalink





(B) EXTENSION OF EXEMPTION-CommentsClose CommentsPermalink





(i) STUDY BY SECRETARY- Not later than December 31, 2013, the Secretary shall submit to the President and Congress a report describing the results of a study to determine whether compliance with the requirements of subsection (a) would impose a disproportionate economic hardship on small refineries.CommentsClose CommentsPermalink





(ii) EXTENSION OF EXEMPTION- In the case of a small refinery that the Secretary determines under clause (i) would be subject to a disproportionate economic hardship if required to comply with subsection (a), the President shall extend the exemption under subparagraph (A) for the small refinery for a period of not less than 2 additional years.CommentsClose CommentsPermalink





(2) PETITIONS BASED ON DISPROPORTIONATE ECONOMIC HARDSHIP-CommentsClose CommentsPermalink





(A) EXTENSION OF EXEMPTION- A small refinery may at any time petition the President for an extension of the exemption under paragraph (1) for the reason of disproportionate economic hardship.CommentsClose CommentsPermalink





(B) EVALUATION OF PETITIONS- In evaluating a petition under subparagraph (A), the President, in consultation with the Secretary, shall consider the findings of the study under paragraph (1)(B) and other economic factors.CommentsClose CommentsPermalink





(C) DEADLINE FOR ACTION ON PETITIONS- The President shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the date of receipt of the petition.CommentsClose CommentsPermalink





(3) OPT-IN FOR SMALL REFINERIES- A small refinery shall be subject to the requirements of subsection (a) if the small refinery notifies the President that the small refinery waives the exemption under paragraph (1).CommentsClose CommentsPermalink





(g) Penalties and Enforcement-CommentsClose CommentsPermalink





(1) CIVIL PENALTIES-CommentsClose CommentsPermalink





(A) IN GENERAL- Any person that violates a regulation promulgated under subsection (a), or that fails to furnish any information required under such a regulation, shall be liable to the United States for a civil penalty of not more than the total of--CommentsClose CommentsPermalink





(i) $25,000 for each day of the violation; andCommentsClose CommentsPermalink





(ii) the amount of economic benefit or savings received by the person resulting from the violation, as determined by the President.CommentsClose CommentsPermalink





(B) COLLECTION- Civil penalties under subparagraph (A) shall be assessed by, and collected in a civil action brought by, the Secretary or such other officer of the United States as is designated by the President.CommentsClose CommentsPermalink





(2) INJUNCTIVE AUTHORITY-CommentsClose CommentsPermalink





(A) IN GENERAL- The district courts of the United States shall have jurisdiction to--CommentsClose CommentsPermalink





(i) restrain a violation of a regulation promulgated under subsection (a);CommentsClose CommentsPermalink





(ii) award other appropriate relief; andCommentsClose CommentsPermalink





(iii) compel the furnishing of information required under the regulation.CommentsClose CommentsPermalink





(B) ACTIONS- An action to restrain such violations and compel such actions shall be brought by and in the name of the United States.CommentsClose CommentsPermalink





(C) SUBPOENAS- In the action, a subpoena for a witness who is required to attend a district court in any district may apply in any other district.CommentsClose CommentsPermalink





(h) Effective Date- Except as otherwise specifically provided in this section, this section takes effect on January 1, 2016.CommentsClose CommentsPermalink