[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1772 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1772

 To streamline the refinery permitting process, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 26, 2005

Mr. Inhofe (for himself, Mr. DeMint, Ms. Murkowski, Mr. Voinovich, Mr. 
Isakson, Mr. Thune, and Mr. Bond) introduced the following bill; which 
was read twice and referred to the Committee on Environment and Public 
                                 Works

_______________________________________________________________________

                                 A BILL


 
 To streamline the refinery permitting process, 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. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Gas Petroleum 
Refiner Improvement and Community Empowerment Act'' or the ``Gas PRICE 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Definitions.
 TITLE I--ECONOMIC DEVELOPMENT ASSISTANCE TO ENCOURAGE PETROLEUM-BASED 
                   REFINERY ACTIVITY ON BRAC PROPERTY

Sec. 101. Economic development assistance to encourage petroleum-based 
                            refinery activity on BRAC property.
                 TITLE II--REFINERY PERMITTING PROCESS

Sec. 201. Streamlining of refinery permitting process.
Sec. 202. Authorization of appropriations.
                         TITLE III--EFFICIENCY

Sec. 301. Efficiency.
     TITLE IV--FUEL EMERGENCY WAIVERS AND BOUTIQUE FUEL REDUCTIONS

Sec. 401. Fuel emergency waivers.
Sec. 402. Boutique fuel reductions.
                         TITLE V--FUTURE FUELS

Sec. 501. Future fuels.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (3) Permit.--The term ``permit'' means any permit, license, 
        approval, variance, or other form of authorization that a 
        refiner is required to obtain under any Federal, State, or 
        Indian tribal law.
            (4) Refiner.--The term ``refiner'' means a person that--
                    (A) owns or operates a refinery; or
                    (B) seeks to become an owner or operator of a 
                refinery.
            (5) Refinery.--
                    (A) In general.--The term ``refinery'' means a 
                facility at which crude oil is refined into 
                transportation fuel or other petroleum products.
                    (B) Inclusion.--The term ``refinery'' includes a 
                refinery expansion.
            (6) Refinery expansion.--The term ``refinery expansion'' 
        means a physical change in a refinery that results in an 
        increase in the capacity of the refinery.
            (7) Refinery permitting agreement.--The term ``refinery 
        permitting agreement'' means an agreement entered into between 
        the Administrator and a State or Indian tribe under section 
        201.
            (8) Refinery project.--The term ``refinery project'' means 
        a project for--
                    (A) acquisition or development of a base 
                realignment and closure site for use for a petroleum 
                refinery; or
                    (B) acquisition, development, rehabilitation, 
                expansion, or improvement of petroleum refining 
                operations on a base realignment and closure site or in 
                a community affected by a base realignment and closure 
                site.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (10) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.

 TITLE I--ECONOMIC DEVELOPMENT ASSISTANCE TO ENCOURAGE PETROLEUM-BASED 
                   REFINERY ACTIVITY ON BRAC PROPERTY

SEC. 101. ECONOMIC DEVELOPMENT ASSISTANCE TO ENCOURAGE PETROLEUM-BASED 
              REFINERY ACTIVITY ON BRAC PROPERTY.

    (a) Priority.--Notwithstanding section 206 of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3146), in awarding funds 
made available to carry out section 209(c)(1) of that Act (42 U.S.C. 
3149(c)(1)) pursuant to section 702 of that Act (42 U.S.C. 3232), the 
Secretary and the Economic Development Administration shall give 
priority to refinery projects.
    (b) Federal Share.--Except as provided in subsection (c)(3)(B) and 
notwithstanding the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3121 et seq.), the Federal share of a refinery project shall 
be 80 percent of the project cost.
    (c) Additional Award.--
            (1) In general.--The Secretary shall make an additional 
        award in connection with a grant made to a recipient for a 
        refinery project.
            (2) Amount.--The amount of an additional award shall be 10 
        percent of the amount of the grant for the refinery project.
            (3) Use.--An additional award under this subsection shall 
        be used--
                    (A) to carry out any eligible purpose under the 
                Public Works and Economic Development Act of 1965 (42 
                U.S.C. 3121 et seq.);
                    (B) notwithstanding section 204 of that Act (42 
                U.S.C. 3144), to pay up to 100 percent of the cost of 
                an eligible project or activity under that Act; or
                    (C) to meet the non-Federal share requirements of 
                that Act or any other Act.
            (4) Non-federal source.--For the purpose of paragraph 
        (3)(C), an additional award shall be treated as funds from a 
        non-Federal source.
            (5) Funding.--The Secretary shall use to carry out this 
        subsection any amounts made available for economic development 
        assistance programs or under section 702 of that Act (42 U.S.C. 
        3232).

                 TITLE II--REFINERY PERMITTING PROCESS

SEC. 201. STREAMLINING OF REFINERY PERMITTING PROCESS.

    (a) In General.--At the request of the Governor of a State or the 
governing body of an Indian tribe, the Administrator shall enter into a 
refinery permitting agreement with the State or Indian tribe under 
which the process for obtaining all permits necessary for the 
construction and operation of a refinery shall be streamlined using a 
systematic interdisciplinary multimedia approach as provided in this 
title.
    (b) Authority of Administrator.--Under a refinery permitting 
agreement--
            (1) the Administrator shall have authority, as applicable 
        and necessary, to--
                    (A) accept from a refiner a consolidated 
                application for all permits that the refiner is 
                required to obtain to construct and operate a refinery;
                    (B) establish a schedule under which each Federal, 
                State, or Indian tribal government agency that is 
                required to make any determination to authorize the 
                issuance of a permit shall--
                            (i) concurrently consider, to the maximum 
                        extent practicable, each determination to be 
                        made; and
                            (ii) complete each step in the permitting 
                        process; and
                    (C) issue a consolidated permit that combines all 
                permits that the refiner is required to obtain; and
            (2) the Administrator shall provide to State and Indian 
        tribal government agencies--
                    (A) financial assistance in such amounts as the 
                agencies reasonably require to hire such additional 
                personnel as are necessary to enable the government 
                agencies to comply with the applicable schedule 
                established under paragraph (1)(B); and
                    (B) technical, legal, and other assistance in 
                complying with the refinery permitting agreement.
    (c) Agreement by the State.--Under a refinery permitting agreement, 
a State or governing body of an Indian tribe shall agree that--
            (1) the Administrator shall have each of the authorities 
        described in subsection (b); and
            (2) each State or Indian tribal government agency shall--
                    (A) make such structural and operational changes in 
                the agencies as are necessary to enable the agencies to 
                carry out consolidated project-wide permit reviews 
                concurrently and in coordination with the Environmental 
                Protection Agency and other Federal agencies; and
                    (B) comply, to the maximum extent practicable, with 
                the applicable schedule established under subsection 
                (b)(1)(B).
    (d) Interdisciplinary Approach.--
            (1) In general.--The Administrator and a State or governing 
        body of an Indian tribe shall incorporate an interdisciplinary 
        approach, to the maximum extent practicable, in the 
        development, review, and approval of refinery permits subject 
        to this title.
            (2) Options.--Among other options, the interdisciplinary 
        approach may include use of--
                    (A) environmental management practices; and
                    (B) third party contractors.
    (e) Deadlines.--
            (1) New refineries.--In the case of a consolidated permit 
        for the construction of a new refinery, the Administrator and 
        the State or governing body of an Indian tribe shall approve or 
        disapprove the consolidated permit not later than--
                    (A) 270 days after the date of the receipt of the 
                application for the consolidated permit; or
                    (B) on agreement of the applicant, the 
                Administrator, and the State or governing body of the 
                Indian tribe, 90 days after the expiration of the 
                deadline established under subparagraph (A).
            (2) Expansion of existing refineries.--In the case of a 
        consolidated permit for the expansion of an existing refinery, 
        the Administrator and the State or governing body of an Indian 
        tribe shall approve or disapprove the consolidated permit not 
        later than--
                    (A) 90 days after the date of the receipt of the 
                application for the consolidated permit; or
                    (B) on agreement of the applicant, the 
                Administrator, and the State or governing body of the 
                Indian tribe, 30 days after the expiration of the 
                deadline established under subparagraph (A).
    (f) Federal Agencies.--Each Federal agency that is required to make 
any determination to authorize the issuance of a permit shall comply 
with the applicable schedule established under subsection (b)(1)(B).
    (g) Judicial Review.--Any civil action for review of any 
determination of any Federal, State, or Indian tribal government agency 
in a permitting process conducted under a refinery permitting agreement 
brought by any person or entity shall be brought exclusively in the 
United States district court for the district in which the refinery is 
located or proposed to be located.
    (h) Efficient Permit Review.--In order to reduce the duplication of 
procedures, the Administrator shall use State permitting and monitoring 
procedures to satisfy substantially similar Federal requirements under 
this title.
    (i) Severability.--If 1 or more permits that are required for the 
construction or operation of a refinery are not approved on or before 
any deadline established under subsection (e), the Administrator may 
issue a consolidated permit that combines all other permits that the 
refiner is required to obtain other than any permits that are not 
approved.
    (j) Savings.--Nothing in this section affects the operation or 
implementation of otherwise applicable law regarding permits necessary 
for the construction and operation of a refinery.

SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this title.

                         TITLE III--EFFICIENCY

SEC. 301. EFFICIENCY.

    (a) Methane Reduction Projects.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator shall solicit 
        applications from eligible entities, as determined by the 
        Administrator, for grants under the Natural Gas STAR Program 
        under the Environmental Protection Agency to pay the Federal 
        share of the cost of projects relating to the reduction of 
        methane emissions in the oil and gas industries.
            (2) Project inclusions.--To receive a grant under paragraph 
        (1), the application of the eligible entity shall include--
                    (A) an identification of 1 or more technologies 
                used to achieve a reduction in the emission of methane; 
                and
                    (B) an analysis of the cost-effectiveness of a 
                technology described in subparagraph (A).
            (3) Limitation.--A grant to an eligible entity under this 
        subsection shall not exceed $50,000.
            (4) Federal share.--The Federal share of the cost of a 
        project under this subsection shall not exceed 50 percent.
            (5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $1,000,000 for 
        the period of fiscal years 2006 through 2010.
    (b) Efficiency Promotion Workshops.--
            (1) In general.--The Administrator, in conjunction with the 
        Interstate Oil and Gas Compact Commission, shall conduct a 
        series of technical workshops to provide information to 
        officials in oil- and gas-producing States relating to methane 
        emission reduction techniques.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $1,000,000 for 
        the period of fiscal years 2006 through 2010.

     TITLE IV--FUEL EMERGENCY WAIVERS AND BOUTIQUE FUEL REDUCTIONS

SEC. 401. FUEL EMERGENCY WAIVERS.

    Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) 
(as amended by section 1541 of the Energy Policy Act of 2005 (Public 
Law 109-58; 119 Stat. 1106)) is amended--
            (1) by redesignating the first clause (v) as clause (vi);
            (2) by redesignating the second clause (v) as clause (vii); 
        and
            (3) by inserting after clause (iv) the following:
    ``(v) A State shall be held harmless and not be required to revise 
its State implementation plan under section 110 to account for the 
emissions from a waiver granted by the Administrator under clause 
(ii).''.

SEC. 402. BOUTIQUE FUEL REDUCTIONS.

    Section 211(c)(4)(C)(vii) of the Clean Air Act (42 U.S.C. 
7545(c)(4)(C)(vii)) (as redesignated by section 401(2)) is amended by 
striking subclauses (III) and (IV) and inserting the following:
    ``(III) The Administrator shall remove a fuel from the list 
published under subclause (II) if a fuel ceases to be included in a 
State implementation plan or if a fuel in a State implementation plan 
is identical to a Federal fuel formulation implemented by the 
Administrator and shall reduce the total number of fuels permitted to 
be included in a State implementation plan or revision on the list 
published under subclause (II) accordingly.
    ``(IV) Subclause (I) shall not limit the authority of the 
Administrator to approve a control or prohibition respecting any new 
fuel under this paragraph in a State implementation plan or revision to 
a State implementation plan if the new fuel completely replaces a fuel 
on the list published under subclause (II).''.

                         TITLE V--FUTURE FUELS

SEC. 501. FUTURE FUELS.

    (a) EPA Evaluation of Fischer-Tropsch Diesel and Jet Fuel as an 
Emission Control Strategy.--
            (1) In general.--In cooperation with the Secretary of 
        Energy, the Secretary of Defense, the Administrator of the 
        Federal Aviation Administration, Secretary of Health and Human 
        Services, and Fischer-Tropsch industry representatives, the 
        Administrator shall--
                    (A) conduct a research and demonstration program to 
                evaluate the air quality benefits of ultra-clean 
                Fischer-Tropsch transportation fuel, including diesel 
                and jet fuel;
                    (B) evaluate the use of ultra-clean Fischer-Tropsch 
                transportation fuel as a mechanism for reducing engine 
                exhaust emissions; and
                    (C) submit recommendations to Congress on the most 
                effective use and associated benefits of these ultra-
                clean fuel for reducing public exposure to exhaust 
                emissions.
            (2) Guidance and technical support.--The Administrator 
        shall, to the extent necessary, issue any guidance or technical 
        support documents that would facilitate the effective use and 
        associated benefit of Fischer-Tropsch fuel and blends.
            (3) Requirements.--The program described in paragraph (1) 
        shall consider--
                    (A) the use of neat (100 percent) Fischer-Tropsch 
                fuel and blends with conventional crude oil-derived 
                fuel for heavy-duty and light-duty diesel engines and 
                the aviation sector; and
                    (B) the production costs associated with domestic 
                production of those ultra clean fuel and prices for 
                consumers.
            (4) Reports.--The Administrator shall submit to the 
        Committee on Environment and Public Works of the Senate and the 
        Committee on Energy and Commerce of the House of 
        Representatives--
                    (A) not later than October 1, 2006, an interim 
                report on actions taken to carry out this subsection; 
                and
                    (B) not later than December 1, 2007, a final report 
                on actions taken to carry out this subsection.
    (b) Commercial Products From Coal and Petroleum Coke-Based Fischer-
Tropsch Process Loan Guarantee Program.--
            (1) In general.--Funds made available under paragraph (7) 
        may be provided for the cost (as defined in the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661 et seq.)) of loan guarantees 
        to carry out domestic coal and petroleum coke-based Fischer-
        Tropsch commercial demonstration projects for the production of 
        diesel and jet transportation fuel.
            (2) Demonstration projects.--
                    (A) In general.--Subject to paragraph (5), the 
                Administrator, in consultation with the Secretary of 
                the Treasury and Secretary of Energy, shall issue loan 
                guarantees under this subsection to carry out not more 
                than 2 projects to commercially demonstrate the 
                feasibility and viability of converting coal and 
                petroleum coke, a refinery byproduct, into ultra-clean 
                Fischer-Tropsch diesel or jet fuel, including--
                            (i) 1 project to convert coal into ultra-
                        clean Fischer-Tropsch transportation fuel; and
                            (ii) 1 project to convert a blend of coal 
                        and petroleum coke into ultra-clean Fischer-
                        Tropsch transportation fuel.
                    (B) Design capacity.--Each project shall have a 
                design capacity to produce at least 100,000,000 gallons 
                of Fischer-Tropsch diesel or jet fuel each year.
            (3) Applicant assurances.--An applicant for a loan 
        guarantee under this subsection shall provide assurances, 
        satisfactory to the Administrator, that--
                    (A) the recipient has demonstrated the Fischer-
                Tropsch process of the applicant through the operation 
                of a domestic continuous process facility with a 
                cumulative output of at least 50,000 gallons of diesel 
                or jet fuel;
                    (B) the demonstration project--
                            (i) has been subject to a full technical 
                        review;
                            (ii) is covered by adequate production 
                        volume guarantees; and
                            (iii) with the loan guarantee, is 
                        economically viable within the project life; 
                        and
                    (C) there is a reasonable assurance of repayment of 
                the guaranteed loan.
            (4) Limitations.--
                    (A) Maximum guarantee.--Except as provided in 
                subparagraph (B), a loan guarantee under this 
                subsection may be issued for up to 80 percent of the 
                estimated cost of a project, but may not exceed 
                $750,000,000 for a project.
                    (B) Additional guarantees.--
                            (i) In general.--The Administrator may 
                        issue additional loan guarantees for a project 
                        to cover up to 80 percent of the excess of 
                        actual project cost over estimated project cost 
                        but not to exceed 15 percent of the amount of 
                        the original guarantee.
                            (ii) Principal and interest.--Subject to 
                        subparagraph (A), the Administrator shall 
                        guarantee 100 percent of the principal and 
                        interest of a loan guarantee made under 
                        subparagraph (A).
            (5) Insufficient amounts.--If the amount made available to 
        carry out this subsection is insufficient to allow the 
        Administrator to make loan guarantees for the 2 projects 
        described in paragraph (2), the Administrator shall issue loan 
        guarantees for 1 qualifying project under this subsection based 
        on the criteria established under paragraph (3), with the 
        priority given to a coal-based project.
            (6) Approval.--An application for a loan guarantee under 
        this subsection shall be approved or disapproved by the 
        Administrator not later than 90 days after the application is 
        received by the Administrator.
            (7) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to carry out this 
        subsection.
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