HR 404 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 404CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to extend and modify the credits for alcohol used as a fuel, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

January 24, 2011CommentsClose CommentsPermalink

Mr. FORTENBERRY introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to extend and modify the credits for alcohol used as a 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 ‘Renewable Fuels for America’s Future Act of 2011’.CommentsClose CommentsPermalink

SEC. 2. REDUCTION IN CREDIT FOR FUEL REQUIRED TO MEET RENEWABLE FUEL OBLIGATION.

(a) In General- Subsection (d) of section 40 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(8) ALCOHOL REQUIRED TO MEET RENEWABLE FUEL OBLIGATION NOT TAKEN INTO ACCOUNT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Alcohol used to meet the renewable fuel obligation applicable to the taxpayer shall not be taken into account for purposes of determining a credit under this section.CommentsClose CommentsPermalink





‘(B) RENEWABLE FUEL OBLIGATION- For purposes of subparagraph (A), the term ‘renewable fuel obligation’ means the renewable fuel obligation determined under section 211(o)(3) of the Clean Air Act (42 U.S.C. 7545(o)(3)).CommentsClose CommentsPermalink





‘(C) USE OF RINS- Determinations for purposes of subparagraph (A) shall be made through the use of renewable identification numbers received from the taxpayer by the Administrator of the Environmental Protection Agency pursuant to regulations issued under section 211(o) of such Act.’.CommentsClose CommentsPermalink





(b) Excise Tax Credit and Payment-CommentsClose CommentsPermalink





(1) EXCISE TAX- Subsection (b) of section 6426 of such Code, as amended by section 4 of this Act, is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:CommentsClose CommentsPermalink





‘(6) ALCOHOL REQUIRED TO MEET RENEWABLE FUEL OBLIGATION NOT TAKEN INTO ACCOUNT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Alcohol used to meet the renewable fuel obligation applicable to the taxpayer shall not be taken into account for purposes of determining a credit under this subsection.CommentsClose CommentsPermalink





‘(B) RENEWABLE FUEL OBLIGATION- For purposes of subparagraph (A), the term ‘renewable fuel obligation’ means the renewable fuel obligation determined under section 211(o)(3) of the Clean Air Act (42 U.S.C. 7545(o)(3)).CommentsClose CommentsPermalink





‘(C) USE OF RINS- Determinations for purposes of subparagraph (A) shall be made through the use of renewable identification numbers received from the taxpayer by the Administrator of the Environmental Protection Agency pursuant to regulations issued under section 211(o) of such Act.’.CommentsClose CommentsPermalink





(2) PAYMENT- Paragraph (2) of section 6427(e) of such Code is amended by adding at the end the following: ‘For purposes of this subsection, alternative fuel shall not include any alcohol used to meet the renewable fuel obligation (as defined in section 6426(e)(6)) applicable to the taxpayer’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to fuel produced or sold after December 31, 2010.CommentsClose CommentsPermalink

SEC. 3. EXTENSION OF INCOME TAX CREDIT FOR ALCOHOL USED AS FUEL.

(a) In General- Paragraph (1) of section 40(e) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(1) by striking ‘December 31, 2011’ in subparagraph (A) and inserting ‘December 31, 2016’, andCommentsClose CommentsPermalink





(2) by striking ‘January 1, 2012’ in subparagraph (B) and inserting ‘January 1, 2017’.CommentsClose CommentsPermalink





(b) Cellulosic Biofuel- Subparagraph (H) of section 40(b)(6) of such Code is amended by striking ‘January 1, 2013’ and inserting ‘January 1, 2017’.CommentsClose CommentsPermalink





(c) Reduced Amount for Ethanol Blenders- Paragraph (2) of section 40(h) of such Code is amended by striking ‘2011’ both places it appears and inserting ‘2016’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 4. EXTENSION OF EXCISE TAX CREDIT FOR ALCOHOL USED AS FUEL.

(a) In General- Paragraph (6) of section 6426(b) of the Internal Revenue Code of 1986 is amended by striking ‘December 31, 2011’ and inserting ‘December 31, 2016’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 5. EXTENSION OF PAYMENT FOR ALCOHOL FUEL MIXTURE.

(a) In General- Subparagraph (A) of section 6427(e)(6) of the Internal Revenue Code of 1986 is amended by striking ‘December 31, 2011’ and inserting ‘December 31, 2016’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this subsection shall apply to sales and uses after December 31, 2010.CommentsClose CommentsPermalink

SEC. 6. EXTENSION OF ADDITIONAL DUTIES ON ETHANOL.

Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff Schedule of the United States are each amended in the effective period column by striking ‘1/1/2012’ and inserting ‘1/1/2017’.CommentsClose CommentsPermalink

SEC. 7. ENSURING THE AVAILABILITY OF DUAL FUELED AUTOMOBILES AND LIGHT DUTY TRUCKS.

(a) In General- Chapter 329 of title 49, United States Code, is amended by inserting after section 32902 the following:CommentsClose CommentsPermalink

‘Sec. 32902A. Requirement to manufacture dual fueled automobiles and light duty trucks

‘(a) In General- For each model year listed in the following table, each manufacturer shall ensure that the percentage of automobiles and light duty trucks manufactured by the manufacturer for sale in the United States that are dual fueled automobiles and light duty trucks is not less than the percentage set forth for that model year in the following table:CommentsClose CommentsPermalink

‘Model YearCommentsClose CommentsPermalink

PercentageCommentsClose CommentsPermalink

Model years 2013 and 2014CommentsClose CommentsPermalink

--50 percentCommentsClose CommentsPermalink

Model year 2015 and each subsequent model yearCommentsClose CommentsPermalink

--90 percent.CommentsClose CommentsPermalink

‘(b) Exception- Subsection (a) shall not apply to automobiles or light duty trucks that operate only on electricity.’.CommentsClose CommentsPermalink





(b) Clerical Amendment- The table of sections for chapter 329 of title 49, United States Code, is amended by inserting after the item relating to section 32902 the following:CommentsClose CommentsPermalink





‘32902A. Requirement to manufacture dual fueled automobiles and light duty trucks.’.CommentsClose CommentsPermalink





(c) Rulemaking- Not later than 1 year after the date of the enactment of this section, the Secretary of Transportation shall prescribe regulations to carry out the amendments made by this section.CommentsClose CommentsPermalink

SEC. 8. BLENDER PUMP PROMOTION.

(a) Blender Pump Grant Program-CommentsClose CommentsPermalink





(1) DEFINITIONS- In this subsection:CommentsClose CommentsPermalink





(A) BLENDER PUMP- The term ‘blender pump’ means an automotive fuel dispensing pump capable of dispensing at least 3 different blends of gasoline and ethanol, as selected by the pump operator, including blends ranging from 0 percent ethanol to 85 percent denatured ethanol, as determined by the Secretary.CommentsClose CommentsPermalink





(B) E-85 FUEL- The term ‘E-85 fuel’ means a blend of gasoline approximately 85 percent of the content of which is ethanol.CommentsClose CommentsPermalink





(C) ETHANOL FUEL BLEND- The term ‘ethanol fuel blend’ means a blend of gasoline and ethanol, with a minimum of 0 percent and maximum of 85 percent of the content of which is denatured ethanol.CommentsClose CommentsPermalink





(D) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink





(2) GRANTS- The Secretary shall make grants under this subsection to eligible facilities (as determined by the Secretary) to pay the Federal share of--CommentsClose CommentsPermalink





(A) installing blender pump fuel infrastructure, including infrastructure necessary--CommentsClose CommentsPermalink





(i) for the direct retail sale of ethanol fuel blends (including E-85 fuel), including blender pumps and storage tanks; andCommentsClose CommentsPermalink





(ii) to directly market ethanol fuel blends (including E-85 fuel) to gas retailers, including inline blending equipment, pumps, storage tanks, and loadout equipment; andCommentsClose CommentsPermalink





(B) providing subgrants to direct retailers of ethanol fuel blends (including E-85 fuel) for the purpose of installing fuel infrastructure for the direct retail sale of ethanol fuel blends (including E-85 fuel), including blender pumps and storage tanks.CommentsClose CommentsPermalink





(3) FEDERAL SHARE- The Federal share of the cost of a project carried out under this subsection shall be 50 percent of the total cost of the project.CommentsClose CommentsPermalink





(4) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary to carry out this subsection, to remain available until expended--CommentsClose CommentsPermalink





(A) $50,000,000 for fiscal year 2012;CommentsClose CommentsPermalink





(B) $100,000,000 for fiscal year 2013;CommentsClose CommentsPermalink





(C) $200,000,000 for fiscal year 2014;CommentsClose CommentsPermalink





(D) $300,000,000 for fiscal year 2015; andCommentsClose CommentsPermalink





(E) $350,000,000 for fiscal year 2016.CommentsClose CommentsPermalink





(b) Installation of Blender Pumps by Major Fuel Distributors at Owned Stations and Branded Stations- Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(13) INSTALLATION OF BLENDER PUMPS BY MAJOR FUEL DISTRIBUTORS AT OWNED STATIONS AND BRANDED STATIONS-CommentsClose CommentsPermalink





‘(A) DEFINITIONS- In this paragraph:CommentsClose CommentsPermalink





‘(i) E-85 FUEL- The term ‘E-85 fuel’ means a blend of gasoline approximately 85 percent of the content of which is ethanol.CommentsClose CommentsPermalink





‘(ii) ETHANOL FUEL BLEND- The term ‘ethanol fuel blend’ means a blend of gasoline and ethanol, with a minimum of 0 percent and maximum of 85 percent of the content of which is denatured ethanol.CommentsClose CommentsPermalink





‘(iii) MAJOR FUEL DISTRIBUTOR-CommentsClose CommentsPermalink





‘(I) IN GENERAL- The term ‘major fuel distributor’ means any person that owns a refinery and directly markets the output of a refinery.CommentsClose CommentsPermalink





‘(II) EXCLUSION- The term ‘major fuel distributor’ does not include any person that owns less than 50 retail fueling stations.CommentsClose CommentsPermalink





‘(iv) SECRETARY- The term ‘Secretary’ means the Secretary of Energy, acting in consultation with the Administrator and the Secretary of Agriculture.CommentsClose CommentsPermalink





‘(B) REGULATIONS- The Secretary shall promulgate regulations to ensure that each major fuel distributor that sells or introduces gasoline into commerce in the United States through majority-owned stations or branded stations installs or otherwise makes available 1 or more blender pumps that dispense E-85 fuel and ethanol fuel blends (including any other equipment necessary, such as tanks, to ensure that the pumps function properly) for a period of not less than 5 years at not less than the applicable percentage of the majority-owned stations and the branded stations of the major fuel distributor specified in subparagraph (C).CommentsClose CommentsPermalink





‘(C) APPLICABLE PERCENTAGE- For the purpose of subparagraph (B), the applicable percentage of the majority-owned stations and the branded stations shall be determined in accordance with the following table:CommentsClose CommentsPermalink

‘Applicable percentage of majority-owned stations and branded stationsCommentsClose CommentsPermalink

Calendar year:CommentsClose CommentsPermalink

Percent:CommentsClose CommentsPermalink

2012CommentsClose CommentsPermalink

--10CommentsClose CommentsPermalink

2014CommentsClose CommentsPermalink

--20CommentsClose CommentsPermalink

2016CommentsClose CommentsPermalink

--35CommentsClose CommentsPermalink

2018 and each calendar year thereafterCommentsClose CommentsPermalink

--50.CommentsClose CommentsPermalink

‘(D) GEOGRAPHIC DISTRIBUTION-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Subject to clause (ii), in promulgating regulations under subparagraph (B), the Secretary shall ensure that each major fuel distributor described in that subparagraph installs or otherwise makes available 1 or more blender pumps that dispense E-85 fuel and ethanol fuel blends at not less than a minimum percentage (specified in the regulations) of the majority-owned stations and the branded stations of the major fuel distributors in each State.CommentsClose CommentsPermalink





‘(ii) REQUIREMENT- In specifying the minimum percentage under clause (i), the Secretary shall ensure that each major fuel distributor installs or otherwise makes available 1 or more blender pumps described in that clause in each State in which the major fuel distributor operates.CommentsClose CommentsPermalink





‘(E) FINANCIAL RESPONSIBILITY- In promulgating regulations under subparagraph (B), the Secretary shall ensure that each major fuel distributor described in that subparagraph assumes full financial responsibility for the costs of installing or otherwise making available the blender pumps described in that subparagraph and any other equipment necessary (including tanks) to ensure that the pumps function properly.CommentsClose CommentsPermalink





‘(F) PRODUCTION CREDITS FOR EXCEEDING BLENDER PUMPS INSTALLATION REQUIREMENT-CommentsClose CommentsPermalink





‘(i) EARNING AND PERIOD FOR APPLYING CREDITS- If the percentage of the majority-owned stations and the branded stations of a major fuel distributor at which the major fuel distributor installs blender pumps in a particular calendar year exceeds the percentage required under subparagraph (C), the major fuel distributor shall earn credits under this paragraph, which may be applied to any of the 3 consecutive calendar years immediately after the calendar year for which the credits are earned.CommentsClose CommentsPermalink





‘(ii) TRADING CREDITS- Subject to clause (iii), a major fuel distributor that has earned credits under clause (i) may sell the credits to another major fuel distributor to enable the purchaser to meet the requirement under subparagraph (C).CommentsClose CommentsPermalink





‘(iii) EXCEPTION- A major fuel distributor may not use credits purchased under clause (ii) to fulfill the geographic distribution requirement in subparagraph (D).’.CommentsClose CommentsPermalink