[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 154 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 154

To provide emergency disaster assistance to agricultural producers, to 
     impose tariff-rate quotas on certain casein and milk protein 
concentrates, and to amend the Internal Revenue Code of 1986 to provide 
 tax relief for farmers and the producers of biodiesel, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 14, 2003

  Mr. Dayton introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide emergency disaster assistance to agricultural producers, to 
     impose tariff-rate quotas on certain casein and milk protein 
concentrates, and to amend the Internal Revenue Code of 1986 to provide 
 tax relief for farmers and the producers of biodiesel, and for other 
                               purposes.

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

SECTION 1. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Table of contents.
          TITLE I--EMERGENCY AGRICULTURAL DISASTER ASSISTANCE

Sec. 101. Short title.
Sec. 102. Crop disaster assistance.
Sec. 103. Livestock assistance program.
Sec. 104. Funding.
Sec. 105. Regulations.
Sec. 106. Emergency designation.
Sec. 107. Budgetary treatment.
             TITLE II--CASEIN AND MILK PROTEIN CONCENTRATES

Sec. 201. Imposition of tariff-rate quotas on certain casein and milk 
                            concentrates.
Sec. 202. Compensation authority.
                  TITLE III--BIODIESEL RENEWABLE FUEL

Sec. 301. Short title; etc.
Sec. 302. Credit for biodiesel used as fuel.
Sec. 303. Reduction of motor fuel excise taxes on biodiesel mixtures.
Sec. 304. Highway Trust Fund held harmless.
Sec. 305. Federal agency ethanol-blended gasoline and biodiesel 
                            purchasing requirement.

          TITLE I--EMERGENCY AGRICULTURAL DISASTER ASSISTANCE

SECTION 101. SHORT TITLE.

    This title may be cited as the ``Emergency Agricultural Disaster 
Assistance Act of 2003''.

SEC. 102. CROP DISASTER ASSISTANCE.

    (a) In General.--The Secretary of Agriculture (referred to in this 
title as the ``Secretary'') shall use such sums as are necessary of 
funds of the Commodity Credit Corporation to make emergency financial 
assistance authorized under this section available to producers on a 
farm that have incurred qualifying crop losses for the 2001 or 2002 
crop, or both, due to damaging weather or related condition, as 
determined by the Secretary.
    (b) Administration.--The Secretary shall make assistance available 
under this section in the same manner as provided under section 815 of 
the Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2001 (Public Law 106-387; 114 
Stat. 1549A-55), including using the same loss thresholds for the 
quantity and quality losses as were used in administering that section.
    (c) Crop Insurance.--In carrying out this section, the Secretary 
shall not discriminate against or penalize producers on a farm that 
have purchased crop insurance under the Federal Crop Insurance Act (7 
U.S.C. 1501 et seq.).

SEC. 103. LIVESTOCK ASSISTANCE PROGRAM.

    (a) In General.--The Secretary shall use such sums as are necessary 
of funds of the Commodity Credit Corporation as are necessary to make 
and administer payments for livestock losses to producers for 2001 or 
2002 losses, or both, in a county that has received a corresponding 
emergency designation by the President or the Secretary, of which an 
amount determined by the Secretary shall be made available for the 
American Indian livestock program under section 806 of the Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2001 (Public Law 106-387; 114 Stat. 1549, 1549A-
51).
    (b) Administration.--The Secretary shall make assistance available 
under this section in the same manner as provided under section 806 of 
the Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2001 (Public Law 106-387; 114 
Stat. 1549, 1549A-51).

SEC. 104. FUNDING.

    Of the funds of the Commodity Credit Corporation, the Secretary 
shall use such sums as are necessary to carry out this title, to remain 
available until expended.

SEC. 105. REGULATIONS.

    (a) In General.--The Secretary may promulgate such regulations as 
are necessary to implement this title.
    (b) Procedure.--The promulgation of the regulations and 
administration of this title shall be made without regard to--
            (1) the notice and comment provisions of section 553 of 
        title 5, United States Code;
            (2) the Statement of Policy of the Secretary of Agriculture 
        effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
        notices of proposed rulemaking and public participation in 
        rulemaking; and
            (3) chapter 35 of title 44, United States Code (commonly 
        known as the ``Paperwork Reduction Act'').
    (c) Congressional Review of Agency Rulemaking.--In carrying out 
this section, the Secretary shall use the authority provided under 
section 808 of title 5, United States Code.

SEC. 106. EMERGENCY DESIGNATION.

    (a) In General.--The entire amount made available under this title 
shall be available only to the extent that the President submits to 
Congress an official budget request for a specific dollar amount that 
includes designation of the entire amount of the request as an 
emergency requirement for the purposes of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.).
    (b) Designation.--The entire amount made available under this 
section is designated by Congress as an emergency requirement under 
sections 251(b)(2)(A) and 252(e) of that Act (2 U.S.C. 901(b)(2)(A), 
902(e)).

SEC. 107. BUDGETARY TREATMENT.

    Notwithstanding Rule 3 of the Budget Scorekeeping Guidelines set 
forth in the Joint Explanatory Statement of the Committee of Conference 
accompanying Conference Report No. 105-217, the provisions of this 
title that would have been estimated by the Office of Management and 
Budget as changing direct spending or receipts under section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
902) were it included in an Act other than an appropriation Act shall 
be treated  as direct spending or receipts legislation, as appropriate, 
under section 252 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 902).

             TITLE II--CASEIN AND MILK PROTEIN CONCENTRATES

SEC. 201. IMPOSITION OF TARIFF-RATE QUOTAS ON CERTAIN CASEIN AND MILK 
              CONCENTRATES.

    (a) Casein and Casein Products.--
            (1) In general.--The Additional U.S. notes to chapter 35 of 
        the Harmonized Tariff Schedule of the United States are 
        amended--
                    (A) in note 1, by striking ``subheading 
                3501.10.10'' and inserting ``subheadings 3501.10.05, 
                3501.10.15, and 3501.10.20''; and
                    (B) by adding at the end the following new note:
    ``2. The aggregate quantity of casein, caseinates, milk protein 
concentrate, and other casein derivatives entered under subheadings 
3501.10.15, 3501.10.65, and 3501.90.65 in any calendar year shall not 
exceed 54,051,000 kilograms. Articles the product of Mexico shall not 
be permitted or included under this quantitative limitation and no such 
article shall be classifiable therein.''.
            (2) Rates for certain caseins, caseinates, and other 
        derivatives and glues.--Chapter 35 of the Harmonized Tariff 
        Schedule of the United States is amended by striking 
        subheadings 3501.10 through 3501.90.60, inclusive, and 
        inserting the following new subheadings with article 
        descriptions for subheadings 3501.10 and 3501.90 having the 
        same degree of indentation as the article description for 
        subheading 3502.20.00:
      

``         3501.10                Casein:
           .................       Milk protein
                                    concentrate:
           3501.10.05               Described in     0.37 cents/kg   Free (A*, CA, E, IL, J,  12 cents/kg
                                     general note                     MX)
                                     15 of the
                                     tariff
                                     schedule and
                                     entered
                                     pursuant to
                                     its provisions
           3501.10.15               Described in     0.37 cents/kg   Free (A*, CA, E, IL, J)  12 cents/kg
                                     additional
                                     U.S. note 2 to
                                     this chapter
                                     and entered
                                     according to
                                     its provisions
           3501.10.20               Other..........  $2.16/kg        Free (MX)                $2.81/kg
           .................       Other:
           3501.10.55               For industrial   Free            Free (A*, CA, E, IL, J,  Free
                                     uses other                       MX)
                                     than the
                                     manufacture of
                                     food for
                                     humans or
                                     other animals
                                     or as
                                     ingredients in
                                     such food.....
           .................        Other:
           3501.10.60                Described in    Free            Free (A*, CA, E, IL, J,  12 cents/kg
                                      general note                    MX)
                                      15 of the
                                      tariff
                                      schedule and
                                      entered
                                      pursuant to
                                      its
                                      provisions...
           3501.10.65                Described in    0.37 cents/kg   Free (A*, CA, E, IL, J)  12 cents/kg
                                      additional
                                      U.S. note 2
                                      to this
                                      chapter and
                                      entered
                                      according to
                                      its
                                      provisions...
           3501.10.70                Other.........  $2.16/kg        Free (MX)                $2.81/kg
           3501.90                Other:
           3501.90.05              Casein glues....  6%              Free (A*, CA, E, IL, J,  30%
                                                                      MX)
           .................       Other:
           3501.90.30               For industrial   6%              Free (A*, CA, E, IL, J,  30%
                                     uses other                       MX)
                                     than the
                                     manufacture of
                                     food for
                                     humans or
                                     other animals
                                     or as
                                     ingredients in
                                     such food.....
           .................        Other:
           3501.90.55                Described in    0.37 cents/kg   Free (A*, CA, E, IL, J,  12.1 cents/kg
                                      general note                    MX)
                                      15 of the
                                      tariff
                                      schedule and
                                      entered
                                      pursuant to
                                      its
                                      provisions...
           3501.90.65                Described in    0.37 cents/kg   Free (A*, CA, E, IL, J)  12.1 cents/kg
                                      additional
                                      U.S. note 2
                                      to this
                                      chapter and
                                      entered
                                      according to
                                      its
                                      provisions...
           3501.90.70                Other.........  $2.16/kg        Free (MX)                $2.81/kg
                                                                                                              ''

    (b) Milk Protein Concentrates.--
            (1) In general.--The Additional U.S. notes to chapter 4 of 
        the Harmonized Tariff Schedule of the United States are 
        amended--
                    (A) in note 13, by striking ``subheading 
                0404.90.10'' and inserting ``subheadings 0404.90.05, 
                0404.90.15, and 0404.90.20''; and
                    (B) by adding at the end the following new note:
    ``27. The aggregate quantity of milk protein concentrates entered 
under subheading 0404.90.15 in any calendar year shall not exceed 
15,818,000 kilograms. Articles the product of Mexico shall not be 
permitted or included under this quantitative limitation and no such 
article shall be classifiable therein.''.
            (2) Rates for certain milk protein concentrates.--Chapter 4 
        of the Harmonized Tariff Schedule of the United States is 
        amended by striking subheading 0404.90 through 0404.90.10, 
        inclusive, and inserting the following new subheadings with the 
        article description for subheading 0404.90 having the same 
        degree of indentation as the article description for subheading 
        0405.10 and the article description for subheadings 0404.90.05, 
        0404.90.15, and 0404.90.20 having the same degree of 
        indentation as the article description for subheading 
        0405.20.40:
      

``         0404.90                Other:
           .................       Milk protein
                                    concentrates:
           0404.90.05               Described in     0.37 cents/kg   Free (A*, CA, E, IL, J,  12 cents/kg
                                     general note                     MX)
                                     15 of the
                                     tariff
                                     schedule and
                                     entered
                                     pursuant to
                                     its provisions
           0404.90.15               Described in     0.37 cents/kg   Free (A*, CA, E, IL, J)  12 cents/kg
                                     additional
                                     U.S. note 27
                                     to this
                                     chapter and
                                     entered
                                     pursuant to
                                     its provisions
           0404.90.20               Other..........  $1.56/kg        Free (MX)                $2.02/kg
                                                                                                              ''

    (c) Effective Date.--The amendments made by this section apply to 
goods entered, or withdrawn from warehouse for consumption, on or after 
the first day of the first month after the date that is 15 days after 
the date of enactment of this Act.

SEC. 202. COMPENSATION AUTHORITY.

    (a) In General.--If the provisions of section 1 require, the 
President--
            (1) may enter into a trade agreement with any foreign 
        country or instrumentality for the purpose of granting new 
        concessions as compensation in order to maintain the general 
        level of reciprocal and mutually advantageous concessions; and
            (2) may proclaim such modification or continuance of any 
        existing duty, or such continuance of existing duty-free or 
        excise treatment, as the President determines to be required or 
        appropriate to carry out any such agreement.
    (b) Limitations.--
            (1) In general.--No proclamation shall be made pursuant to 
        subsection (a) decreasing any rate of duty to a rate which is 
        less than 70 percent of the existing rate of duty.
            (2) Special rule for certain duty reductions.--If the rate 
        of duty in effect at any time is an intermediate stage under 
        section 2103(a) of the Bipartisan Trade Promotion Authority Act 
        of 2002, the proclamation made pursuant to subsection (a) may 
        provide for the reduction of each rate of duty at each such 
        stage proclaimed under section 2103(a) by not more than 30 
        percent of such rate of duty, and may provide for a final rate 
        of duty which is not less than the 70 percent of the rate of 
        duty proclaimed as the final stage under section 2103(a).
            (3) Rounding.--If the President determines that such action 
        will simplify the computation of the amount of duty computed 
        with respect to an article, the President may exceed the 
        limitations provided in paragraphs (1) and (2) by not more than 
        the lesser of--
                    (A) the difference between such limitation and the 
                next lower whole number, or
                    (B) one-half of one percent ad valorem.

                  TITLE III--BIODIESEL RENEWABLE FUEL

SEC. 301. SHORT TITLE; ETC.

    (a) Short Title.--This TITLE may be cited as the ``Biodiesel 
Renewable Fuels Act''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is expressed in 
terms of an amendment to or a repeal of a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 302. CREDIT FOR BIODIESEL USED AS FUEL.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business related credits) is amended by inserting after 
section 40 the following new section:

``SEC. 40A. BIODIESEL USED AS FUEL.

    ``(a) General Rule.--For purposes of section 38, the biodiesel 
fuels credit determined under this section for the taxable year is an 
amount equal to the biodiesel mixture credit.
    ``(b) Definition of Biodiesel Mixture Credit.--For purposes of this 
section--
            ``(1) Biodiesel mixture credit.--
                    ``(A) In general.--The biodiesel mixture credit of 
                any taxpayer for any taxable year is the sum of the 
                products of the biodiesel mixture rate for each blend 
                of qualified biodiesel mixture and the number of 
                gallons of the blend of the taxpayer for the taxable 
                year.
                    ``(B) Biodiesel mixture rate.--For purposes of 
                subparagraph (A), the biodiesel mixture rate shall be--
                            ``(i) the applicable amount for a B-1 
                        blend,
                            ``(ii) 3.0 cents for a B-2 blend, and
                            ``(iii) 20.0 cents for a B-20 blend.
                    ``(C) Blends.--For purposes of this paragraph--
                            ``(i) B-1 blend.--The term `B-1 blend' 
                        means a qualified biodiesel mixture if at least 
                        0.5 percent but less than 2.0 percent of the 
                        mixture is biodiesel.
                            ``(ii) B-2 blend.--The term `B-2 blend' 
                        means a qualified biodiesel mixture if at least 
                        2.0 percent but less than 20 percent of the 
                        mixture is biodiesel.
                            ``(iii) B-20 blend.--The term `B-20 blend' 
                        means a qualified biodiesel mixture if at least 
                        20 percent of the mixture is biodiesel.
                    ``(D) Applicable amount.--For purposes of this 
                paragraph, the term `applicable amount' means, in the 
                case of a B-1 blend, the amount equal to 1.5 cents 
                multiplied by a fraction the numerator of which is the 
                percentage of biodiesel in the B-1 blend and the 
                denominator of which is 1 percent.
            ``(2) Qualified biodiesel mixture.--
                    ``(A) In general.--The term `qualified biodiesel 
                mixture' means a mixture of diesel and biodiesel 
                which--
                            ``(i) is sold by the taxpayer producing 
                        such mixture to any person for use as a fuel; 
                        or
                            ``(ii) is used as a fuel by the taxpayer 
                        producing such mixture.
                    ``(B) Sale or use must be in trade or business, 
                etc.--Biodiesel used in the production of a qualified 
                biodiesel mixture shall be taken into account--
                            ``(i) only if the sale or use described in 
                        subparagraph (A) is in a trade or business of 
                        the taxpayer; and
                            ``(ii) for the taxable year in which such 
                        sale or use occurs.
                    ``(C) Casual off-farm production not eligible.--No 
                credit shall be allowed under this section with respect 
                to any casual off-farm production of a qualified 
                biodiesel mixture.
    ``(c) Coordination With Exemption From Excise Tax.--The amount of 
the credit determined under this section with respect to any biodiesel 
shall, under regulations prescribed by the Secretary, be properly 
reduced to take into account any benefit provided with respect to such 
biodiesel solely by reason of the application of section 4041(n) or 
section 4081(f).
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Biodiesel defined.--
                    ``(A) In general.--The term `biodiesel' means the 
                monoalkyl esters of long chain fatty acids derived from 
                vegetable oils for use in compressional-ignition 
                (diesel) engines. Such term shall include esters 
                derived from vegetable oils from corn, soybeans, 
                sunflower seeds, cottonseeds, canola, crambe, 
                rapeseeds, safflowers, flaxseeds, and mustard seeds.
                    ``(B) Registration requirements.--Such term shall 
                only include a biodiesel which meets the registration 
                requirements for fuels and fuel additives established 
                by the Environmental Protection Agency under section 
                211 of the Clean Air Act (42 U.S.C. 7545).
            ``(2) Biodiesel mixture not used as a fuel, etc.--
                    ``(A) Imposition of tax.--If--
                            ``(i) any credit was determined under this 
                        section with respect to biodiesel used in the 
                        production of any qualified biodiesel mixture, 
                        and
                            ``(ii) any person--
                                    ``(I) separates the biodiesel from 
                                the mixture, or
                                    ``(II) without separation, uses the 
                                mixture other than as a fuel,
                        then there is hereby imposed on such person a 
                        tax equal to the product of the biodiesel 
                        mixture rate applicable under subsection 
                        (b)(1)(B) and the number of gallons of the 
                        mixture.
                    ``(B) Applicable laws.--All provisions of law, 
                including penalties, shall, insofar as applicable and 
                not inconsistent with this section, apply in respect of 
                any tax imposed under subparagraph (A) as if such tax 
                were imposed by section 4081 and not by this chapter.
            ``(3) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
    ``(e) Election To Have Biodiesel Fuels Credit Not Apply.--
            ``(1) In general.--A taxpayer may elect to have this 
        section not apply for any taxable year.
            ``(2) Time for making election.--An election under 
        paragraph (1) for any taxable year may be made (or revoked) at 
        any time before the expiration of the 3-year period beginning 
        on the last date prescribed by law for filing the return for 
        such taxable year (determined without regard to extensions).
            ``(3) Manner of making election.--An election under 
        paragraph (1) (or revocation thereof) shall be made in such 
        manner as the Secretary may by regulations prescribe.''.
    (b) Credit Treated as Part of General Business Credit.--Section 
38(b) is amended by striking ``plus'' at the end of paragraph (14), by 
striking the period at the end of paragraph (15) and inserting ``, 
plus'', and by adding at the end the following:
            ``(16) the biodiesel fuels credit determined under section 
        40A.''.
    (c) Conforming Amendments.--
            (1) Section 39(d) is amended by adding at the end the 
        following:
            ``(11) No carryback of biodiesel fuels credit before 
        january 1, 2003.--No portion of the unused business credit for 
        any taxable year which is attributable to the biodiesel fuels 
        credit determined under section 40A may be carried back to a 
        taxable year beginning before January 1, 2003.''.
            (2) Section 196(c) is amended by striking ``and'' at the 
        end of paragraph (9), by striking the period at the end of 
        paragraph (10) and inserting ``, and'', and by adding at the 
        end the following:
            ``(11) the biodiesel fuels credit determined under section 
        40A.''.
            (3) Section 6501(m) is amended by inserting ``40A(e),'' 
        after ``40(f),''.
            (4) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 is amended by adding after the item 
        relating to section 40 the following new item:

                              ``Sec. 40A. Biodiesel used as fuel.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.

SEC. 303. REDUCTION OF MOTOR FUEL EXCISE TAXES ON BIODIESEL MIXTURES.

    (a) In General.--Section 4081 (relating to manufacturers tax on 
petroleum products) is amended by adding at the end the following new 
subsection:
    ``(f) Biodiesel Mixtures.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--In the case of the removal or entry of a 
        qualified biodiesel mixture, the rate of tax under subsection 
        (a) shall be the otherwise applicable rate reduced by the 
        biodiesel mixture rate (if any) applicable to the mixture.
            ``(2) Tax prior to mixing.--
                    ``(A) In general.--In the case of the removal or 
                entry of diesel fuel for use in producing at the time 
                of such removal or entry a qualified biodiesel mixture, 
                the rate of tax under subsection (a) shall be the 
                otherwise applicable rate, reduced by the amount 
                determined under subparagraph (B).
                    ``(B) Applicable reduction.--For purposes of 
                subparagraph (A), the amount determined under this 
                subparagraph is an amount equal to the biodiesel 
                mixture rate for the qualified biodiesel mixture to be 
                produced from the diesel fuel, divided by a percentage 
                equal to 100 percent minus the percentage of biodiesel 
                which will be in the mixture.
            ``(3) Definitions.--For purposes of this subsection, any 
        term used in this subsection which is also used in section 40A 
        shall have the meaning given such term by section 40A.
            ``(4) Certain rules to apply.--Rules similar to the rules 
        of paragraphs (6) and (7) of subsection (c) shall apply for 
        purposes of this subsection.''.
    (b) Conforming Amendments.--
            (1) Section 4041 is amended by adding at the end the 
        following new subsection:
    ``(n) Biodiesel Mixtures.--Under regulations prescribed by the 
Secretary, in the case of the sale or use of a qualified biodiesel 
mixture (as defined in section 40A(b)(2)), the rates under paragraphs 
(1) and (2) of subsection (a) shall be the otherwise applicable rates, 
reduced by any applicable biodiesel mixture rate (as defined in section 
40A(b)(1)(B)).''.
            (2) Section 6427 is amended by redesignating subsection (p) 
        as subsection (q) and by inserting after subsection (o) the 
        following new subsection:
    ``(p) Biodiesel Mixtures.--Except as provided in subsection (k), if 
any diesel fuel on which tax was imposed by section 4081 at a rate not 
determined under section 4081(f) is used by any person in producing a 
qualified biodiesel mixture (as defined in section 40A(b)(2)) which is 
sold or used in such person's trade or business, the Secretary shall 
pay (without interest) to such person an amount equal to the per gallon 
applicable biodiesel mixture rate (as defined in section 40A(b)(1)(B)) 
with respect to such fuel.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2003.

SEC. 304. HIGHWAY TRUST FUND HELD HARMLESS.

    There are hereby transferred (from time to time) from the funds of 
the Commodity Credit Corporation amounts equivalent to the reductions 
that would occur (but for this section) in the receipts of the Highway 
Trust Fund by reason of the amendments made by this title. Such 
transfers shall be made on the basis of estimates made by the Secretary 
of the Treasury and adjustments shall be made to subsequent transfers 
to reflect any errors in the estimates.

SEC. 305. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL 
              PURCHASING REQUIREMENT.

    Title III of the Energy Policy Act of 1992 is amended by striking 
section 306 (42 U.S.C. 13215) and inserting the following:

``SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL 
              PURCHASING REQUIREMENT.

    ``(a) Ethanol-Blended Gasoline.--The head of each Federal agency 
(except the Secretary of Defense) shall ensure that, in areas in which 
ethanol-blended gasoline is available, the Federal agency purchases 
ethanol-blended gasoline containing at least 10 percent ethanol (or the 
highest available percentage of ethanol), rather than nonethanol-
blended gasoline, for use in vehicles used by the agency.
    ``(b) Biodiesel.--
            ``(1) Definition of biodiesel.--In this subsection, the 
        term `biodiesel' has the meaning given the term in section 
        312(f).
            ``(2) Requirement.--The head of each Federal agency (except 
        the Secretary of Defense) shall ensure that the Federal agency 
        purchases, for use in fueling fleet vehicles used by the 
        Federal agency at the location at which fleet vehicles of the 
        Federal agency are centrally fueled--
                    ``(A) as of the date that is 5 years after the date 
                of enactment of this paragraph, biodiesel-blended 
                diesel fuel that contains at least 2 percent biodiesel, 
                rather than nonbiodiesel-blended diesel fuel; and
                    ``(B) as of the date that is 10 years after the 
                date of enactment of this paragraph, biodiesel-blended 
                diesel fuel that contains at least 20 percent 
                biodiesel, rather than nonbiodiesel-blended diesel 
                fuel.''.
                                 <all>