S 828 ISCommentsClose CommentsPermalink

To amend the Energy Policy Act of 2005 to provide loan guarantees for projects to construct renewable fuel pipelines, and for other purposes.CommentsClose CommentsPermalink

April 3 (legislative day, April 2), 2009CommentsClose CommentsPermalink

Mr. HARKIN (for himself, Mr. THUNE, and Mr. JOHNSON) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural ResourcesCommentsClose CommentsPermalink

To amend the Energy Policy Act of 2005 to provide loan guarantees for projects to construct renewable fuel pipelines, 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 ‘Renewable Fuels Pipelines Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

Congress finds that--CommentsClose CommentsPermalink





(1) creating the appropriate infrastructure to move renewable fuels is a necessary energy and transportation objective for the United States;CommentsClose CommentsPermalink





(2) as of the date of enactment of this Act, more than 70 percent of the gasoline supply of the United States is delivered to local terminals through pipelines;CommentsClose CommentsPermalink





(3) pipelines are the most cost-effective, efficient, and safe transportation mode in use in 2009 to deliver large volumes of liquid fuels;CommentsClose CommentsPermalink





(4) as of the date of enactment of this Act, renewable fuels are transported by truck, barge, and rail, and the volume requirements of the Energy Independence and Security Act of 2007 (42 U.S.C. 17001 et seq.), and the amendments made by that Act, will require an expansion of the renewable fuels infrastructure;CommentsClose CommentsPermalink





(5) the transportation of renewable fuels through a pipeline will facilitate the meeting of the volume requirements of the Energy Independence and Security Act of 2007 (42 U.S.C. 17001 et seq.) and the amendments made by that Act; andCommentsClose CommentsPermalink





(6) the production and use of renewable fuels is supported by Federal policy and a corresponding Federal policy is necessary to support the construction of an appropriate infrastructure to transport those fuels.CommentsClose CommentsPermalink

SEC. 3. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT RENEWABLE FUEL PIPELINES.

(a) Definitions- Section 1701 of the Energy Policy Act of 2005 (42 U.S.C. 16511) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(6) RENEWABLE FUEL- The term ‘renewable fuel’ has the meaning given the term in section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)), as in effect on January 1, 2009, except that the term includes ethanol and biodiesel.CommentsClose CommentsPermalink





‘(7) RENEWABLE FUEL PIPELINE- The term ‘renewable fuel pipeline’ means a common carrier pipeline for transporting renewable fuel in accordance with this title.’.CommentsClose CommentsPermalink





(b) Specific Appropriation or Contribution- Section 1702(b) of the Energy Policy Act of 2005 (42 U.S.C. 16512(b)) is amended by striking ‘No’ and inserting ‘Except with respect to a project described in section 1703(f), no’.CommentsClose CommentsPermalink





(c) Amount- Section 1702(c) of the Energy Policy Act of 2005 (42 U.S.C. 16512(c)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘(c) Amount- Unless’ and inserting the following:CommentsClose CommentsPermalink





‘(c) Amount-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Unless’; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(2) RENEWABLE FUEL PIPELINES- With respect to a project described in section 1703(f)--CommentsClose CommentsPermalink





‘(A) a guarantee by the Secretary shall not exceed an amount equal to 90 percent of the project cost of the renewable fuel pipeline that is the subject of the guarantee, as estimated at the time at which the guarantee is issued; andCommentsClose CommentsPermalink





‘(B) the Secretary may make more than 1 guarantee for the project, to the extent that the sum of all guarantees for the project does not exceed an amount equal to 90 percent of the project cost of the renewable fuel pipeline that is the subject of the guarantees, as estimated any time after the original guarantee is issued.’.CommentsClose CommentsPermalink





(d) Eligible Projects- Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(f) Renewable Fuel Pipelines-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Secretary may make guarantees under this title for projects to construct renewable fuel pipelines without regard to any limitation imposed by this section other than a limitation imposed by this subsection.CommentsClose CommentsPermalink





‘(2) GUARANTEE DETERMINATIONS- In determining whether to make a guarantee for a project described in paragraph (1), the Secretary shall consider the following:CommentsClose CommentsPermalink





‘(A) The volume of renewable fuel to be moved by the renewable fuel pipeline.CommentsClose CommentsPermalink





‘(B) The size of the markets to be served by the renewable fuel pipeline.CommentsClose CommentsPermalink





‘(C) The existence of sufficient storage to facilitate access to the markets to be served by the renewable fuel pipeline.CommentsClose CommentsPermalink





‘(D) The proximity of the renewable fuel pipeline to renewable fuel production facilities.CommentsClose CommentsPermalink





‘(E) The investment in terminal infrastructure of the entity carrying out the proposed project to construct a renewable fuel pipeline.CommentsClose CommentsPermalink





‘(F) The history and experience working with renewable fuel of the entity carrying out the proposed project to construct a renewable fuel pipeline.CommentsClose CommentsPermalink





‘(G) The ability of the entity carrying out the proposed project to construct a renewable fuel pipeline to ensure and maintain the quality of the renewable fuel through the terminal system of the entity and through the dedicated pipeline system.CommentsClose CommentsPermalink





‘(H) The ability of the entity carrying out the proposed project to construct a renewable fuel pipeline to complete such proposed project in a timely manner.CommentsClose CommentsPermalink





‘(I) The ability of the entity carrying out the proposed project to construct a renewable fuel pipeline to secure property rights-of-way.CommentsClose CommentsPermalink





‘(J) Other criteria the Secretary determines appropriate for consideration.CommentsClose CommentsPermalink





‘(3) LOAN GUARANTEE FOR PRELIMINARY STAGE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary--CommentsClose CommentsPermalink





‘(i) shall evaluate a project to assemble a renewable fuel pipeline under this title as a complete project; butCommentsClose CommentsPermalink





‘(ii) as a result of the size and nature of the project, the Secretary may make a guarantee under this title for an initial loan to assemble the renewable fuel pipeline at a preliminary stage in the loan approval process for the complete project.CommentsClose CommentsPermalink





‘(B) AMOUNT- The amount of a loan that is guaranteed at the preliminary stage of a renewable fuel pipeline project under this paragraph--CommentsClose CommentsPermalink





‘(i) shall not exceed 2 percent of the total amount of loan guarantees made for the complete project; andCommentsClose CommentsPermalink





‘(ii) shall be incorporated into the total amount of loan guarantees made for the complete project.CommentsClose CommentsPermalink





‘(C) REQUIRED INFORMATION- To be eligible to obtain a loan guarantee at the preliminary stage of a renewable fuel pipeline project under this paragraph, the applicant shall provide to the Secretary--CommentsClose CommentsPermalink





‘(i) a route description for the project, including a centerline map of the proposed pipeline route subject to field verification and right-of-way acquisition (with a margin of error of 10 miles);CommentsClose CommentsPermalink





‘(ii) a construction cost estimate and schedule for completion of the project;CommentsClose CommentsPermalink





‘(iii) an environmental review of the impact of the project on sensitive areas, including likely mitigation strategies and a plan for conducting the necessary environmental impact statements; andCommentsClose CommentsPermalink





‘(iv) a business plan that includes--CommentsClose CommentsPermalink





‘(I) a market assessment;CommentsClose CommentsPermalink





‘(II) an economic analysis; andCommentsClose CommentsPermalink





‘(III) an analysis of any required pipeline connections to biorefineries, terminal locations, and other terminal connections.CommentsClose CommentsPermalink





‘(D) SUPPORTING INFORMATION- In making a loan guarantee at the preliminary stage of a renewable fuel pipeline project under this paragraph, the Secretary shall consider whether an applicant provides to the Secretary--CommentsClose CommentsPermalink





‘(i) a comprehensive project plan that includes a full work plan;CommentsClose CommentsPermalink





‘(ii) a full engineering summary;CommentsClose CommentsPermalink





‘(iii) a detailed assessment of the ability of the applicant to complete the project in a timely manner;CommentsClose CommentsPermalink





‘(iv) a right of way acquisition plan;CommentsClose CommentsPermalink





‘(v) appropriate environmental studies; andCommentsClose CommentsPermalink





‘(vi) a plan for acquiring necessary permits.CommentsClose CommentsPermalink





‘(4) EMINENT DOMAIN-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Subject to subparagraph (B), the Secretary may provide to the owner of a renewable fuel pipeline under this title the same rights of eminent domain that the Federal Energy Regulatory Commission is authorized to provide to a natural gas company under section 7(h) of the Natural Gas Act (15 U.S.C. 717f(h)).CommentsClose CommentsPermalink





‘(B) CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY- An owner of a renewable fuel pipeline under this title shall not be required to hold a certificate of public convenience and necessity, or any comparable certificate, to exercise the rights of eminent domain under this title.CommentsClose CommentsPermalink





‘(5) RENEWABLE FUEL PIPELINE RATEMAKING METHODOLOGY- Consistent with the ratemaking methodology used for a natural gas company under the Natural Gas Act (15 U.S.C. 717 et seq.), the Federal Energy Regulatory Commission shall have jurisdiction over the ratemaking methodology used for renewable fuel transported by pipeline.’.CommentsClose CommentsPermalink





(e) Authorization of Appropriations- Section 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(c) Authorization of Appropriations- There is authorized to be appropriated such sums as are necessary to provide up to $5,000,000,000 in loan guarantees under this title for projects described in section 1703(f).’.CommentsClose CommentsPermalink





(f) Temporary Program for Rapid Deployment of Renewable Energy and Electric Power Transmission Projects- Section 1705(a) of the Energy Policy Act of 2005 (42 U.S.C. 16516(a)) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(4) Renewable fuel pipelines.’.CommentsClose CommentsPermalink

SEC. 4. FINAL RULE.

Not later than 90 days after the date of the enactment of this Act, the Secretary of Energy shall--CommentsClose CommentsPermalink





(1) publish in the Federal Register a final rule for carrying out a guarantee program for the construction of renewable fuel pipelines under title XVII of the Energy Policy Act of 2005 (22 U.S.C. 16511 et seq.) in accordance with the amendments made by this Act; orCommentsClose CommentsPermalink





(2) modify rules and regulations applicable as of the date of enactment of this Act to the guarantee program under that title in accordance with the amendments made by this Act.CommentsClose CommentsPermalink