S 1158 ISCommentsClose CommentsPermalink

To amend the Clean Air Act to increase the use of renewable and alternative fuel, and for other purposes.CommentsClose CommentsPermalink

April 19, 2007

Mr. INHOFE introduced the following bill; which was read twice and referred to the Committee on Environment and Public WorksCommentsClose CommentsPermalink

To amend the Clean Air Act to increase the use of renewable and alternative fuel, and for other purposes.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 `Alternative Fuel Standard Act of 2007'.CommentsClose CommentsPermalink

SEC. 2. RENEWABLE AND ALTERNATIVE FUEL PROGRAM.

Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended--CommentsClose CommentsPermalink





(1) in the subsection heading, by inserting `and Alternative' after `Renewable';CommentsClose CommentsPermalink





(2) in paragraph (1)--CommentsClose CommentsPermalink





(A) by redesignating subparagraphs (A), (B), (C), and (D) as subparagraphs (B), (I), (G), and (H), respectively;CommentsClose CommentsPermalink





(B) by moving subparagraph (I) (as redesignated by subparagraph (A)) to the end of the paragraph;CommentsClose CommentsPermalink





(C) by inserting before subparagraph (B) (as so redesignated) the following:CommentsClose CommentsPermalink





`(A) ALTERNATIVE FUEL-CommentsClose CommentsPermalink





`(i) IN GENERAL- The term `alternative fuel' means the portion of any motor vehicle or nonroad fuel, as measured by volume, that consists of--CommentsClose CommentsPermalink





`(I) methanol, denatured ethanol, butanol, and other alcohols;CommentsClose CommentsPermalink





`(II) natural gas, including liquid fuels domestically produced from natural gas;CommentsClose CommentsPermalink





`(III) liquefied petroleum gas;CommentsClose CommentsPermalink





`(IV) hydrogen;CommentsClose CommentsPermalink





`(V) coal-derived liquid fuels;CommentsClose CommentsPermalink





`(VI) fuels (not including a fuel that consists of alcohol) derived from biological materials (including biodiesel);CommentsClose CommentsPermalink





`(VII) electricity; andCommentsClose CommentsPermalink





`(VIII) any other fuel that the Administrator determines, by rule, is not derived from crude oil and would yield energy security benefits or environmental benefits.CommentsClose CommentsPermalink





`(ii) INCLUSION- The term `alternative fuel' includes any portion of a blending component that is derived from an alternative fuel.';CommentsClose CommentsPermalink





(D) in subparagraph (B) (as so redesignated), by striking the second sentence;CommentsClose CommentsPermalink





(E) by inserting after subparagraph (B) (as so redesignated) the following:CommentsClose CommentsPermalink





`(C) NONROAD ENGINE- The term `nonroad engine' means an internal combustion engine (including the fuel system of the internal combustion engine) that is not--CommentsClose CommentsPermalink





`(i) used--CommentsClose CommentsPermalink





`(I) to power a motor vehicle; orCommentsClose CommentsPermalink





`(II) in a vehicle used solely for competition; andCommentsClose CommentsPermalink





`(ii) subject to standards of performance for stationary sources of air pollution.CommentsClose CommentsPermalink





`(D) NONROAD FUEL- The term `nonroad fuel' means fuel required for--CommentsClose CommentsPermalink





`(i) a nonroad engine; orCommentsClose CommentsPermalink





`(ii) a nonroad vehicle.CommentsClose CommentsPermalink





`(E) NONROAD VEHICLE- The term `nonroad vehicle' means a vehicle or a piece of equipment that is--CommentsClose CommentsPermalink





`(i) powered by a nonroad engine; andCommentsClose CommentsPermalink





`(ii) not a motor vehicle or a vehicle used solely for competition.CommentsClose CommentsPermalink





`(F) PROGRAM- The term `program' means the renewable and alternative fuel program established under paragraph (2).';CommentsClose CommentsPermalink





(3) by striking paragraphs (2) and (3) and inserting the following:CommentsClose CommentsPermalink





`(2) PROGRAM-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Administrator shall, by regulation, establish an alternative fuel program to ensure that motor vehicle and nonroad fuel sold or introduced into commerce in the United States (except in territories of the United States), on an annual average basis, contains the applicable volume of alternative fuel determined in accordance with subparagraph (C).CommentsClose CommentsPermalink





`(B) PROVISIONS- Regulations promulgated under subparagraph (A)--CommentsClose CommentsPermalink





`(i) shall--CommentsClose CommentsPermalink





`(I) contain compliance provisions applicable to refineries, blenders, distributors, and importers, as appropriate, to ensure that the requirements of this section are met;CommentsClose CommentsPermalink





`(II) establish applicable percentages under subparagraph (D);CommentsClose CommentsPermalink





`(III) establish compliance values for alternative fuels under subparagraph (E);CommentsClose CommentsPermalink





`(IV) provide for the generation, banking, trading, and use of identification numbers under subparagraph (F);CommentsClose CommentsPermalink





`(V) require the taking of any other action that is necessary for the implementation of the alternative fuels program, as determined by the Administrator; andCommentsClose CommentsPermalink





`(VI) to the maximum extent practicable, incorporate the program structure, compliance, calculation of applicable volume, registration, recordkeeping, and reporting requirements described in regulations promulgated under subparagraph (A) to implement this section; andCommentsClose CommentsPermalink





`(ii) shall not--CommentsClose CommentsPermalink





`(I) restrict the geographic area in which alternative fuel may be used; orCommentsClose CommentsPermalink





`(II) impose any per-gallon obligation for the use of alternative fuel.CommentsClose CommentsPermalink





`(C) APPLICABLE VOLUME-CommentsClose CommentsPermalink





`(i) CALENDAR YEARS 2010 THROUGH 2017- For the purpose of subparagraph (A), the applicable volume of alternative fuel for each of calendar years 2010 through 2017 shall be determined in accordance with the following table:CommentsClose CommentsPermalink

`Applicable volume of alternative fuelCommentsClose CommentsPermalink

-----------------------------------------CommentsClose CommentsPermalink

Calendar year: (in billions of gallons): CommentsClose CommentsPermalink

-----------------------------------------CommentsClose CommentsPermalink

          2010                      10.0 CommentsClose CommentsPermalink

          2011                      11.0 CommentsClose CommentsPermalink

          2012                      12.0 CommentsClose CommentsPermalink

          2013                      14.0 CommentsClose CommentsPermalink

          2014                      17.0 CommentsClose CommentsPermalink

          2015                      22.0 CommentsClose CommentsPermalink

          2016                      28.0 CommentsClose CommentsPermalink

          2017                      35.0 CommentsClose CommentsPermalink

-----------------------------------------CommentsClose CommentsPermalink

`(ii) CALENDAR YEAR 2018 AND THEREAFTER-CommentsClose CommentsPermalink





`(I) IN GENERAL- Subject to clauses (iii) and (iv), for the purpose of subparagraph (A), the applicable volume for calendar year 2018 and each calendar year thereafter shall be determined by the Administrator based on a review containing the information described in subclause (II).CommentsClose CommentsPermalink





`(II) CONTENTS OF REVIEW- The review described in subclause (I) shall contain a evaluation of the implementation of the program during calendar years 2010 through 2016, including an evaluation of--CommentsClose CommentsPermalink

`(aa) the impact of the use of alternative fuels on--CommentsClose CommentsPermalink

`(AA) public health;CommentsClose CommentsPermalink

`(BB) air quality;CommentsClose CommentsPermalink

`(CC) water quality;CommentsClose CommentsPermalink

`(DD) job creation;CommentsClose CommentsPermalink

`(EE) rural economic development;CommentsClose CommentsPermalink

`(FF) the expected annual rate of future production of alternative fuels;CommentsClose CommentsPermalink

`(GG) the reduction of the use of fuels derived from crude oil in the United States;CommentsClose CommentsPermalink

`(HH) the energy security of the United States; andCommentsClose CommentsPermalink

`(II) costs to consumers.CommentsClose CommentsPermalink

`(iii) MINIMUM QUANTITY DERIVED FROM CELLULOSIC BIOMASS-CommentsClose CommentsPermalink





`(I) CALENDAR YEARS 2010 THROUGH 2012- For each of calendar years 2010 through 2012--CommentsClose CommentsPermalink

`(aa) the compliance value for cellulosic ethanol contained in subparagraph (E) shall not apply; andCommentsClose CommentsPermalink

`(bb) a compliance value of 2.5 shall apply in the same manner as if included on the table contained in subparagraph (E).CommentsClose CommentsPermalink

`(II) CALENDAR YEARS 2013 AND THEREAFTER- For calendar year 2013, and each calendar year thereafter, the applicable volume described in clause (ii) shall contain a minimum of 250,000,000 gallons that are derived from cellulosic biomass.CommentsClose CommentsPermalink





`(iv) WASTE-DERIVED ETHANOL CREDIT- For each of calendar years 2010 through 2012, the compliance value for waste-derived ethanol shall--CommentsClose CommentsPermalink





`(I) be 2.5; andCommentsClose CommentsPermalink





`(II) apply in the same manner as if included in the table in subparagraph (E).CommentsClose CommentsPermalink





`(v) MINIMUM APPLICABLE VOLUME- For the purpose of subparagraph (A), the applicable volume for calendar year 2018 and each calendar year thereafter shall, at a minimum, be equal to the product obtained by multiplying--CommentsClose CommentsPermalink





`(I) the number of gallons of gasoline that the Administrator of the Energy Information Administration estimates will be sold or introduced into commerce in the calendar year; andCommentsClose CommentsPermalink





`(II) the ratio that--CommentsClose CommentsPermalink

`(aa) 35,000,000,000 gallons; bears toCommentsClose CommentsPermalink

`(bb) the number of gallons of gasoline projected to be sold or introduced into commerce in calendar year 2017.CommentsClose CommentsPermalink

`(D) APPLICABLE PERCENTAGES-CommentsClose CommentsPermalink





`(i) PROVISION OF ESTIMATE OF VOLUMES OF GASOLINE SALES- Not later than October 31, 2009, and annually thereafter, the Administrator of the Energy Information Administration shall provide to the Administrator an estimate relating to the volume of gasoline projected by Administrator of the Energy Information Administration to be sold or introduced into commerce in the United States during the following calendar year.CommentsClose CommentsPermalink





`(ii) DETERMINATION OF APPLICABLE PERCENTAGES-CommentsClose CommentsPermalink





`(I) IN GENERAL- Not later than November 30, 2009, and annually thereafter, based on the estimate provided under clause (i), the Administrator shall determine and notify any obligated party, with respect to the following calendar year, of the alternative fuel obligation determined by the Administrator to ensure that the requirements of subparagraph (C) will be met.CommentsClose CommentsPermalink





`(II) REQUIRED ELEMENTS- The alternative fuel obligation determined for a calendar year under clause (ii) shall--CommentsClose CommentsPermalink

`(aa) be applicable to refiners, blenders, and importers of gasoline, as appropriate;CommentsClose CommentsPermalink

`(bb) be used in motor vehicle or nonroad applications in the United States;CommentsClose CommentsPermalink

`(cc) be expressed in terms of a volume percentage of gasoline sold or introduced into commerce in the United States; andCommentsClose CommentsPermalink

`(dd) subject to clause (iii), consist of a single applicable percentage that applies to an obligated party who is a refiner, blender, or importer of gasoline used in motor vehicle and nonroad applications in the United States.CommentsClose CommentsPermalink

`(iii) ADJUSTMENTS- In determining the applicable percentage for a calendar year, the Administrator shall make adjustments to prevent the imposition of redundant obligations on any individual or entity described in clause (ii).CommentsClose CommentsPermalink





`(E) COMPLIANCE VALUE-CommentsClose CommentsPermalink





`(i) TABLE- Subject to clauses (ii) and (iii), the Administrator shall assign a compliance value for each alternative fuel to satisfy the alternative fuel volume under subparagraph (C), in accordance with the following table:CommentsClose CommentsPermalink

-----------------------------------------------------------------CommentsClose CommentsPermalink

                                      Fuel Type Compliance Value CommentsClose CommentsPermalink

-----------------------------------------------------------------CommentsClose CommentsPermalink

                       Ethanol (non-Cellulosic)              1.0 CommentsClose CommentsPermalink

                           Ethanol (Cellulosic)              1.0 CommentsClose CommentsPermalink

                                      Biodiesel              1.4 CommentsClose CommentsPermalink

                      Gas-to-Liquid Diesel Fuel              1.5 CommentsClose CommentsPermalink

                     Coal-to-Liquid Diesel Fuel              1.5 CommentsClose CommentsPermalink

Compressed Natural Gas (78 standard cubic feet)              1.0 CommentsClose CommentsPermalink

                          Liquefied Natural Gas              1.0 CommentsClose CommentsPermalink

                        Liquefied Petroleum Gas              1.1 CommentsClose CommentsPermalink

               Electricity (6.4 kilowatt-hours)              1.0 CommentsClose CommentsPermalink

     Gaseous Hydrogen (132 standard cubic feet)              1.0 CommentsClose CommentsPermalink

                                Liquid Hydrogen              1.0 CommentsClose CommentsPermalink

                                       Methanol              0.8 CommentsClose CommentsPermalink

                                        Butanol              1.3 CommentsClose CommentsPermalink

                                    Bio-Butanol              1.3 CommentsClose CommentsPermalink

-----------------------------------------------------------------CommentsClose CommentsPermalink

All values in terms of gallons unless otherwise specified.CommentsClose CommentsPermalink





`(ii) AUTHORITY OF THE ADMINISTRATOR-CommentsClose CommentsPermalink





`(I) IN GENERAL- In accordance with the requirements described in subclause (II), the Administrator may--CommentsClose CommentsPermalink

`(aa) add fuel types to the table contained in clause (i);CommentsClose CommentsPermalink

`(bb) revise any fuel type and assign a different compliance value to any fuel type described in the table contained in clause (i); andCommentsClose CommentsPermalink

`(cc) assign each new or revised category or subcategory of an alternative fuel type an appropriate compliance value.CommentsClose CommentsPermalink

`(II) USE OF INFORMATION-CommentsClose CommentsPermalink

`(aa) IN GENERAL- In carrying out a modification or revision of any fuel type or compliance value under subclause (I), the Administrator shall use appropriate scientific and technical information relating to the energy content of alternative fuels.CommentsClose CommentsPermalink

`(bb) REQUIREMENT RELATING TO COMPLIANCE VALUES- In carrying out a modification or revision of any compliance value under subclause (I), the Administrator may revise the compliance value to the extent that the revision is predominantly supported by scientific and technical information.CommentsClose CommentsPermalink

`(iii) USE OF COMPLIANCE VALUE- The compliance value described in the table contained in clause (i) shall be used as a multiplier to determine the extent to which each gallon of the alternative fuel would satisfy the alternative fuel volume obligation under subparagraph (C).CommentsClose CommentsPermalink





`(F) GENERATION, BANKING, TRADING, AND USE OF IDENTIFICATION NUMBERS-CommentsClose CommentsPermalink





`(i) IN GENERAL- Regulations promulgated under subparagraph (A) shall provide that--CommentsClose CommentsPermalink





`(I) unique identification numbers shall be generated and assigned to each batch or other quantifiable unit of production, as determined by the Administrator, of alternative fuel by--CommentsClose CommentsPermalink

`(aa) the producer of any facility located in the United States; andCommentsClose CommentsPermalink

`(bb) the importer of alternative fuel imported into the United States;CommentsClose CommentsPermalink

`(II) identification numbers shall be based on the volume of the alternative fuel and the compliance values established under subparagraph (E);CommentsClose CommentsPermalink





`(III) identification numbers may be used to demonstrate compliance with the alternative fuel volume obligation under subparagraph (A);CommentsClose CommentsPermalink





`(IV) identification numbers may be held by any individual or entity;CommentsClose CommentsPermalink





`(V) identification numbers may be transferred by any individual or entity to any other individual or entity;CommentsClose CommentsPermalink





`(VI) identification numbers shall be valid for use in achieving compliance for the calendar year in which the numbers are generated, and each calendar year thereafter, regardless of the calendar year in which the alternative fuel that the numbers represent is used; andCommentsClose CommentsPermalink





`(VII) any obligated party that is unable to acquire sufficient identification numbers to meet the requirements for any calendar year under this section shall be allowed to carry forward a deficit on the condition that the obligated party, in the calendar year following the calendar year in which the deficit was created, achieves compliance with the obligation for--CommentsClose CommentsPermalink

`(aa) the calendar year following the calendar year in which the deficit was created; andCommentsClose CommentsPermalink

`(bb) the calendar year in which the deficit was created.CommentsClose CommentsPermalink

`(G) EVALUATION AND ADJUSTMENT OF REQUIRED VOLUMES-CommentsClose CommentsPermalink





`(i) IN GENERAL- The Administrator shall annually evaluate the domestic production and import capabilities relating to the required volumes of the alternative fuel standard for each year for which there have been specified volumes pursuant to clauses (i) and (ii) of subparagraph (C).CommentsClose CommentsPermalink





`(ii) ADJUSTMENT OF VOLUME OF ALTERNATIVE FUELS-CommentsClose CommentsPermalink





`(I) IN GENERAL- If any condition affects the production or importation of alternative fuel (including drought, environmental degradation, technological difficulties, economic infeasibility, national security interests, or any other factor may substantially affect the availability of an alternative fuel in a quantity necessary to meet the requirements of this section) the Administrator may, to account for the impact of the condition, not later than October 31 of each calendar year, adjust the applicable volume of any alternative fuel for the following calendar year, or any calendar year thereafter, described in the table contained in subparagraph (C)(i).CommentsClose CommentsPermalink





`(II) CORRESPONDING ADJUSTMENT OF APPLICABLE PERCENTAGES- In making an adjustment to the applicable volume of an alternative fuel under subclause (I), the Administrator shall make a corresponding adjustment to the determination of the alternative fuel obligation of an obligated party under subparagraph (D).CommentsClose CommentsPermalink





`(III) TERMINATION OF ADJUSTMENT-CommentsClose CommentsPermalink

`(aa) IN GENERAL- Subject to item (bb), an adjustment made by the Administrator to the applicable volume of an alternative fuel under subclause (I) shall terminate 1 year after the date on which the adjustment is made.CommentsClose CommentsPermalink

`(bb) AUTHORITY TO RENEW ADJUSTMENT- The Administrator may renew the adjustment made in accordance with subclause (I) not later than October 31 of the calendar year preceding the calendar year in which the adjustment made by the Administrator to the applicable volume of an alternative fuel under subclause (I) would apply.CommentsClose CommentsPermalink

`(H) SALE OF IDENTIFICATION NUMBERS-CommentsClose CommentsPermalink





`(i) IN GENERAL- The Administrator shall make available for sale to any obligated party additional identification numbers at a price of $1.00 per gallon of gasoline equivalent.CommentsClose CommentsPermalink





`(ii) USE OF IDENTIFICATION NUMBERS- An additional identification number sold by the Administrator under clause (i) may be used by an obligated party to comply with any alternative fuel obligation requirement under subsection (C) relating to the year in which the identification number was purchased.CommentsClose CommentsPermalink





`(iii) DISPOSITION OF FUNDS- For each of fiscal years 2010 through 2017, any funds generated by the sale of additional identification numbers by the Administrator to obligated parties shall be transferred by the Administrator to the Secretary of the Treasury and deposited in the Treasury of the United States.';CommentsClose CommentsPermalink





(4) by striking paragraph (8);CommentsClose CommentsPermalink





(5) by redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively;CommentsClose CommentsPermalink





(6) by redesignating paragraphs (9) and (10) as paragraphs (7) and (8), respectively;CommentsClose CommentsPermalink





(7) in paragraph (4)(A)(iii) (as redesignated by paragraph (5)), by striking `paragraph (9)(C)' and inserting `paragraph (7)(C)';CommentsClose CommentsPermalink





(8) by striking paragraph (6) (as redesignated by paragraph (5)) and inserting the following:CommentsClose CommentsPermalink





`(6) WAIVER-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Administrator may issue a temporary waiver for any requirement of paragraph (2) if the Administrator determines that--CommentsClose CommentsPermalink





`(i) an extreme or unusual fuel supply circumstance has affected the United States, or a region of the United States, that--CommentsClose CommentsPermalink





`(I) prevents the distribution of an adequate supply of 1 or more alternative fuels or the feedstock used to produce 1 or more alternative fuels; andCommentsClose CommentsPermalink





`(II) is of sufficient magnitude to prevent compliance by 1 or more obligated parties with the applicable volume of any alternative fuel described in the table contained in paragraph (2)(C), as determined by the Administrator;CommentsClose CommentsPermalink





`(ii) the extreme or unusual fuel supply circumstance will cause a severe increase in the price of 1 or more alternative fuels or of the feedstock used to produce 1 or more alternative fuels; andCommentsClose CommentsPermalink





`(iii) the extreme or unusual fuel supply circumstance was caused by--CommentsClose CommentsPermalink





`(I) a natural disaster;CommentsClose CommentsPermalink





`(II) an act of God;CommentsClose CommentsPermalink





`(III) a pipeline or refinery equipment failure;CommentsClose CommentsPermalink





`(IV) the national security interests of the United States; orCommentsClose CommentsPermalink





`(V) a circumstance that could not have been reasonably foreseen or prevented, or prepared for by prudent planning of a supplier of alternative fuel to the United States.CommentsClose CommentsPermalink





`(B) EFFECT OF WAIVER- A temporary waiver issued by the Administrator under subparagraph (A) shall--CommentsClose CommentsPermalink





`(i) apply to--CommentsClose CommentsPermalink





`(I) any obligated party affected by the extreme or unusual fuel supply circumstance; andCommentsClose CommentsPermalink





`(II) the smallest appropriate geographic area, as determined by the Administrator;CommentsClose CommentsPermalink





`(ii) be effective for--CommentsClose CommentsPermalink





`(I) a period that begins on the date on which the Administrator issues the temporary waiver under subparagraph (A) and ends 20 calendar days after the date on which the Administrator issued the temporary waiver; orCommentsClose CommentsPermalink





`(II) the shortest appropriate period of time, as determined by the Administrator;CommentsClose CommentsPermalink





`(iii) preempt, for the duration of the waiver, any State or local laws (including regulations) relating to the renewable or alternative content of motor fuel and nonroad fuel that are inconsistent with any adjustment of the volume of an alternative fuel under paragraph (2)(G)(ii)(I); andCommentsClose CommentsPermalink





`(iv) be renewed for 1 or more additional 20 calendar day periods if the Administrator determines that any extreme or unusual fuel supply circumstance on which the initial determination was made under subparagraph (A) continues to warrant a waiver under that subparagraph.'; andCommentsClose CommentsPermalink





(9) in paragraph (7) (as redesignated by paragraph (6))--CommentsClose CommentsPermalink





(A) in subparagraph (A)(ii)(I), by striking `2008' and inserting `2009'; andCommentsClose CommentsPermalink





(B) in subparagraph (C), by striking `paragraph (5)' and inserting `paragraph (4)'.CommentsClose CommentsPermalink