1.Short title; table of
contents
(a)This Act may be cited
as the Biofuels Security Act of
2006
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Renewable fuels
Sec. 101. Renewable fuel program.
Sec. 102. Installation of E–85
fuel pumps by major oil companies at owned stations and branded
stations.
Sec. 103. Minimum Federal fleet requirement.
Sec. 104. Application of Gasohol Competition Act of
1980.
TITLE II—Dual fueled automobiles
Sec. 201. Requirement to manufacture dual fueled
automobiles.
Sec. 202. Manufacturing incentives for dual fueled
automobiles.
<enum>I</enum><header>Renewable
fuels</header>
<section id="id7C974D686E5C427AAAFFC22528FB4A50"><enum>101.</enum><header>Renewable fuel
program</header><text display-inline="no-display-inline">Section 211(o)(2) of
the Clean Air Act (42 U.S.C. 7545(o)(2)) is amended by striking subparagraph
(B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idC7391C5AE4D041F2BB85090070073FCE" style="OLC">
<subparagraph id="id3836D53042F7487F87B906F07E926208"><enum>(B)</enum><header>Applicable
volume</header>
<clause id="id5D97EADE46024A7F915CCC3BE0E9AE2D"><enum>(i)</enum><header>In
general</header><text>For the purpose of subparagraph (A), the applicable
volume for calendar year 2010 and each calendar year thereafter shall be
determined, by rule, by the Administrator, in consultation with the Secretary
of Agriculture and the Secretary of Energy, in a manner that ensures
that—</text>
<subclause id="id63CEA23C646A4811BEEFE7BBC2C35345"><enum>(I)</enum><text>the requirements
described in clause (ii) for specified calendar years are met; and</text>
</subclause><subclause id="id769E8A2A36274337BB9BCB7090A69B55"><enum>(II)</enum><text>the applicable
volume for each calendar year not specified in clause (ii) is determined on an
annual basis.</text>
</subclause></clause><clause id="idCE0D537D66234BFA90FB189294399FE1"><enum>(ii)</enum><header>Requirements</header><text>The
requirements referred to in clause (i) are—</text>
<subclause id="id1EFF93E1D1C146BF807CCFDCDF884111"><enum>(I)</enum><text>for calendar year
2010, at least 10,000,000,000 gallons of renewable fuel;</text>
</subclause><subclause id="id56F8D73806DD4969B2F16BF588EC4010"><enum>(II)</enum><text>for calendar
year 2020, at least 30,000,000,000 gallons of renewable fuel; and</text>
</subclause><subclause id="id0F5B2288F5594CC5A2221D10996CBF22"><enum>(III)</enum><text>for calendar
year 2030, at least 60,000,000,000 gallons of renewable
fuel.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="S1" section-type="subsequent-section"><enum>102.</enum><header>Installation of E–85
fuel pumps by major oil companies at owned stations and branded
stations</header><text display-inline="no-display-inline">Section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idE31F1D83415744F7B5D6902ECC92FC06" style="OLC">
<paragraph id="id0795F86154B144178A5613896DAE4096"><enum>(11)</enum><header>Installation
of E–85 fuel pumps by major oil companies at owned stations and branded
stations</header>
<subparagraph id="id317C590E8C404264BD3B8194E6062DFE"><enum>(A)</enum><header>Definitions</header><text>In
this paragraph:</text>
<clause id="id6E24ADD0F3C24BCD96231D6AD0C09EFB"><enum>(i)</enum><header>E–<enum-in-header>85</enum-in-header>
fuel</header><text>The term <term>E–85 fuel</term> means a blend of gasoline
approximately 85 percent of the content of which is derived from ethanol
produced in the United States.</text>
</clause><clause id="idCE62C1D4FD5B4AC0AEF922B778B330F1"><enum>(ii)</enum><header>Major oil
company</header><text>The term <term>major oil company</term> means any person
that, individually or together with any other person with respect to which the
person has an affiliate relationship or significant ownership interest, has not
less than 4,500 retail station outlets according to the latest publication of
the Petroleum News Annual Factbook.</text>
</clause><clause id="id4C4C534DE00F4FA2AB889D9A61739381"><enum>(iii)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Energy, acting in
consultation with the Administrator of the Environmental Protection Agency and
the Secretary of Agriculture.</text>
</clause></subparagraph><subparagraph id="idB844713E50BE47369082C476F72F5B57"><enum>(B)</enum><header>Regulations</header><text>The
Secretary shall promulgate regulations to ensure that each major oil company
that sells or introduces gasoline into commerce in the United States through
wholly-owned stations or branded stations installs or otherwise makes available
1 or more pumps that dispense E–85 fuel (including any other equipment
necessary, such as including tanks, to ensure that the pumps function properly)
at not less than the applicable percentage of the wholly-owned stations and the
branded stations of the major oil company specified in subparagraph (C).</text>
</subparagraph><subparagraph id="IDB63724A5756943EA90607280AF14ED17"><enum>(C)</enum><header>Applicable
percentage</header><text>For the purpose of subparagraph (B), the applicable
percentage of the wholly-owned stations and the branded stations shall be
determined in accordance with the following table:</text>
<table line-rules="no-gen" table-type="subformat">
<tgroup cols="2">
<tbody>
<row><entry colname="I50">Applicable percentage of wholly-owned
stations and branded stations</entry>
</row>
<row><entry colname="I49">Calendar year:</entry><entry colname="I50">(percent):</entry>
</row>
<row><entry colname="I51">2007</entry><entry colname="I52">5</entry>
</row>
<row><entry colname="I51">2008</entry><entry colname="I52">10</entry>
</row>
<row><entry colname="I51">2009</entry><entry colname="I52">15</entry>
</row>
<row><entry colname="I51">2010</entry><entry colname="I52">20</entry>
</row>
<row><entry colname="I51">2011</entry><entry colname="I52">25</entry>
</row>
<row><entry colname="I51">2012</entry><entry colname="I52">30</entry>
</row>
<row><entry colname="I51">2013</entry><entry colname="I52">35</entry>
</row>
<row><entry colname="I51">2014</entry><entry colname="I52">40</entry>
</row>
<row><entry colname="I51">2015</entry><entry colname="I52">45</entry>
</row>
<row><entry colname="I51">2016 and each calendar year
thereafter</entry><entry colname="I52">50.</entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph><subparagraph id="IDBB8296075D0F4B008773707B14DB6962"><enum>(D)</enum><header>Geographic
distribution</header>
<clause id="idFE8C594C74D745F281AF0FB6E88E1DEC"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), in promulgating regulations under
subparagraph (B), the Secretary shall ensure that each major oil company
described in subparagraph (B) installs or otherwise makes available 1 or more
pumps that dispense E–85 fuel at not less than a minimum percentage (specified
in the regulations) of the wholly-owned stations and the branded stations of
the major oil company in each State.</text>
</clause><clause id="id7EFAFDC78B60408582B16FBDACD76D9E"><enum>(ii)</enum><header>Requirement</header><text>In
specifying the minimum percentage under clause (i), the Secretary shall ensure
that each major oil company installs or otherwise makes available 1 or more
pumps described in that clause in each State in which the major oil company
operates.</text>
</clause></subparagraph><subparagraph id="id0F11EAD9E51341C38253191BD94FC365"><enum>(E)</enum><header>Financial
responsibility</header><text>In promulgating regulations under subparagraph
(B), the Secretary shall ensure that each major oil company described in that
subparagraph assumes full financial responsibility for the costs of installing
or otherwise making available the pumps described in that subparagraph and any
other equipment necessary (including tanks) to ensure that the pumps function
properly.</text>
</subparagraph><subparagraph id="id34F91D7B83FC4085A381AD0E6D380A53"><enum>(F)</enum><header>Production
credits for exceeding E–85 fuel pumps installation requirement</header>
<clause id="idB4368B9437654FF5BEA47454453B87A4"><enum>(i)</enum><header>Earning and
period for applying credits</header><text>If the percentage of the wholly-owned
stations and the branded stations of a major oil company at which the major oil
company installs E–85 fuel pumps in a particular calendar year exceeds the
percentage required under subparagraph (C), the major oil company earns 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.</text>
</clause><clause id="idD3D00CBD869641899081B99FB5A57CAA"><enum>(ii)</enum><header>Trading
credits</header><text>Subject to clause (iii), a major oil company that has
earned credits under clause (i) may sell credits to another major oil company
to enable the purchaser to meet the requirement under subparagraph (C).</text>
</clause><clause id="id77902ECD76744882AC0AA1058F69BC4E"><enum>(iii)</enum><header>Exception</header><text>A
major oil company may not use credits purchased under clause (ii) to fulfill
the geographic distribution requirement in subparagraph
(D).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idFAA464E3F8D24B84AC5136F32BB48450"><enum>103.</enum><header>Minimum
Federal fleet requirement</header><text display-inline="no-display-inline">Section 303(b)(1) of the Energy Policy Act
of 1992 (42 U.S.C. 13212(b)(1)) is amended—</text>
<paragraph id="idBC9FAA0C9F6C45CDB354030EC7B044BF"><enum>(1)</enum><text>in subparagraph
(C), by striking <quote>and</quote> after the semicolon;</text>
</paragraph><paragraph id="idEBBF9F151BEE4702B8AB21929E8B9618"><enum>(2)</enum><text>in subparagraph
(D), by striking <quote>fiscal year 1999 and thereafter</quote> and inserting
<quote>each of fiscal years 1999 through 2006; and</quote>; and</text>
</paragraph><paragraph id="idBB7D5F51DA3F4ADC870E2E839C03D3F0"><enum>(3)</enum><text>by inserting
after subparagraph (D) the following:</text>
<quoted-block display-inline="no-display-inline" id="id3D0AC754F4184EAB92CAE4B2D4178E51" style="OLC">
<subparagraph id="id6201339AB4B54D249CE69A95F6CBFD75"><enum>(E)</enum><text>100 percent in
fiscal year 2007 and
thereafter,</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id66106B70115B4437A1701F6819B97151"><enum>104.</enum><header>Application of
Gasohol Competition Act of 1980</header><text display-inline="no-display-inline">Section 26 of the Clayton Act (15 U.S.C.
26a) is amended—</text>
<paragraph id="id27C800BDB61C44EFB5E181FD2281D4DC"><enum>(1)</enum><text>by redesignating
subsection (c) as subsection (d);</text>
</paragraph><paragraph id="id6611DB953F584B3B822E6CBCA17C810D"><enum>(2)</enum><text>by inserting
after subsection (b) the following:</text>
<quoted-block display-inline="no-display-inline" id="id84FE13CEE92D4290B014DCD1D8E4C399" style="OLC">
<subsection id="id447E1FB6E9C64F199B80691FA27D4B6B"><enum>(c)</enum><text>For purposes of
subsection (a), restricting the right of a franchisee to install on the
premises of that franchisee a renewable fuel pump, such as one that dispenses
E85, shall be considered an unlawful
restriction.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id4E36ED9F45B54EB9BFF301ED4D614ABB"><enum>(3)</enum><text>in subsection (d)
(as redesignated by paragraph (1))—</text>
<subparagraph id="id9A2A2D94B69E4A6FBC5BF101496027A0"><enum>(A)</enum><text>by striking
<quote>section,</quote> and inserting the
following:</text>
<quoted-block display-inline="yes-display-inline" id="idFC0C5993E6264ACBB7E82521966DB05A" style="OLC">
<text>section—</text><paragraph id="idD8B3ECABE4754FBD999FE25D1B119A63"><enum>(1)</enum><text>the
term</text>
</paragraph><after-quoted-block>; </after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id5BD3FCEEAB7E48F0811D79291B941A49"><enum>(B)</enum><text>by striking the
period at the end and inserting <quote>; and</quote>; and</text>
</subparagraph><subparagraph id="id811795FA80064378AE3B1C78E8609AB1"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC63E13BECC284DFBBED2D61ABAD31FCC" style="OLC">
<paragraph id="id940E6695CD3E41399510208D4073514E"><enum>(2)</enum><text>the term
<quote>gasohol</quote> includes any blend of ethanol and gasoline such as
E–85.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><enum>II</enum><header>Dual fueled
automobiles</header>
<section id="id84DEA51DDBF94974815B2A0BF030F1F4"><enum>201.</enum><header>Requirement to
manufacture dual fueled automobiles</header>
<subsection id="ID347035B2B3204CDE98B76C06D430F3BA"><enum>(a)</enum><header>Requirement</header>
<paragraph id="ID0360D3F29C384EB2B0616C6C60E70A00"><enum>(1)</enum><header>In
general</header><text>Chapter 329 of title 49, United States Code, is amended
by inserting after section 32902 the following:</text>
<quoted-block display-inline="no-display-inline" id="id1911F741B064481BAF4C66BFA6821C3D" style="USC">
<section id="ID29DD9405F81E4E4FB9CE1879BD24FBBE"><enum>32902A.</enum><header>Requirement
to manufacture dual fueled automobiles</header>
<subsection id="IDE5EC862878B344E09471A07E453EE592"><enum>(a)</enum><header>Requirement</header><text>Each
manufacturer of new automobiles that are capable of operating on gasoline or
diesel fuel shall ensure that the percentage of such automobiles, manufactured
in any model year after model year 2006 and distributed in commerce for sale in
the United States, which are dual fueled automobiles is equal to not less than
the applicable percentage set forth in the following table:</text>
<table align-to-level="paragraph" blank-lines-before="1" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" subformat="S6211" table-type="2-Entry">
<tgroup cols="2" fnote-size="0" grid-typeface="1.1" offset-from-left="48" thead-tbody-ldg-size="12.10.12" ttitle-size="0"><colspec align="left" coldef="txt" colname="col1" colsep="0" colwidth="139.50pt" min-data-value="75" rowsep="0"></colspec><colspec align="right" coldef="txt-no-spread" colname="col2" colsep="0" colwidth="186" min-data-value="120" rowsep="0"></colspec>
<tbody>
<row><entry rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"><bold>For each of the following model
years:</bold></entry><entry rowsep="0"><bold>The percentage of dual fueled
automobiles manufactured shall be not less than: </bold></entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2007</entry><entry align="right" colname="col2" leader-modify="clr-ldr" rowsep="0">10 </entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2008</entry><entry align="right" colname="col2" leader-modify="clr-ldr" rowsep="0">20 </entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2009</entry><entry align="right" colname="col2" leader-modify="clr-ldr" rowsep="0">30 </entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2010</entry><entry align="right" colname="col2" leader-modify="clr-ldr" rowsep="0">40 </entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2011</entry><entry align="right" colname="col2" leader-modify="clr-ldr" rowsep="0">50 </entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2012</entry><entry align="right" colname="col2" leader-modify="clr-ldr" rowsep="0">60 </entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2013</entry><entry align="right" colname="col2" leader-modify="clr-ldr" rowsep="0">70 </entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2014</entry><entry align="right" colname="col2" leader-modify="clr-ldr" rowsep="0">80 </entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2015</entry><entry align="right" colname="col2" leader-modify="clr-ldr" rowsep="0">90 </entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">2016 and
beyond</entry><entry align="right" colname="col2" leader-modify="clr-ldr" rowsep="0">100.</entry>
</row>
</tbody>
</tgroup>
</table>
</subsection><subsection id="id2D6A62C4F7A9488DB0AB7E09F0913F17"><enum>(b)</enum><header>Production
credits for exceeding flexible fuel automobile production requirement</header>
<paragraph id="idB9C819536CDC48F180E955C24BC63485"><enum>(1)</enum><header>Earning and
period for applying credits</header><text>If the number of dual fueled
automobiles manufactured by a manufacturer in a particular model year exceeds
the number required under subsection (a), the manufacturer earns credits under
this section, which may be applied to any of the 3 consecutive model years
immediately after the model year for which the credits are earned.</text>
</paragraph><paragraph id="id334EA4DD6428490A9C1E89742C5DEF4D"><enum>(2)</enum><header>Trading
credits</header><text>A manufacturer that has earned credits under paragraph
(1) may sell credits to another manufacturer to enable the purchaser to meet
the requirement under subsection
(a).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id126B554BB3AB450BA71EC8C0E9383364"><enum>(2)</enum><header>Technical
amendment</header><text>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:</text>
<quoted-block id="idc7a5806f-4be1-4fc9-a4ab-e2faad32c8f6" style="USC">
<toc>
<toc-entry idref="ID29DD9405F81E4E4FB9CE1879BD24FBBE" level="section">32902A. Requirement to manufacture dual fueled
automobiles.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID2FF81A80AF994479ACDB8E5D56E323DD"><enum>(b)</enum><header>Activities to
promote the use of certain alternative fuels</header><text>The Secretary of
Transportation shall carry out activities to promote the use of fuel mixtures
containing gasoline or diesel fuel and 1 or more alternative fuels, including a
mixture containing at least 85 percent of methanol, denatured ethanol, and
other alcohols by volume with gasoline or other fuels, to power automobiles in
the United States.</text>
</subsection></section><section id="H0AF348542C5A4154AC7DA0927BC360E1"><enum>202.</enum><header>Manufacturing
incentives for dual fueled automobiles</header><text display-inline="no-display-inline">Section 32905(b) of title 49, United States
Code, is amended—</text>
<paragraph id="id13A678EBFE2F42FB908594D3DAFE64CF"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;</text>
</paragraph><paragraph id="id33EDC0CAFB7B45219E5DA6CE9089C2AC"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>(1)</quote> before
<quote>Except</quote>;</text>
</paragraph><paragraph id="id1014F1E3863E497FAAE88736E45F2F91"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>model years
1993–2010</quote> and inserting <quote>model year 1993 through the first model
year beginning not less than 18 months after the date of enactment of the
<short-title>Biofuels Security Act of
2006</short-title></quote>; and</text>
</paragraph><paragraph id="id85BB5211FADB4CA0A19482A5C39030BB"><enum>(4)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id476033F680C14C298ADD4B0040564237" style="OLC">
<paragraph id="idD2BDD8FE5E594867AC308E474DC13D37"><enum>(2)</enum><text>Except as
provided in paragraph (5) of this subsection, subsection (d) of this section,
or section 32904(a)(2) of this title, the Administrator shall measure the fuel
economy for each model of dual fueled automobiles manufactured by a
manufacturer in the first model year beginning not less than 30 months after
the date of enactment of the <short-title>Biofuels
Security Act of 2006</short-title> by dividing 1.0 by the sum of—</text>
<subparagraph id="id95AFC633775742FEAB123C499C512FF0"><enum>(A)</enum><text>0.7 divided by
the fuel economy measured under section 32904(c) of this title when operating
the model on gasoline or diesel fuel; and</text>
</subparagraph><subparagraph id="id1AD84E65735745F4BC863B84FC02F6AA"><enum>(B)</enum><text>0.3 divided by
the fuel economy measured under subsection (a) when operating the model on
alternative fuel.</text>
</subparagraph></paragraph><paragraph id="id595174DB71CD4C599018FED0FCF8BDBC"><enum>(3)</enum><text>Except as
provided in paragraph (5) of this subsection, subsection (d) of this section,
or section 32904(a)(2) of this title, the Administrator shall measure the fuel
economy for each model of dual fueled automobiles manufactured by a
manufacturer in the first model year beginning not less than 42 months after
the date of enactment of the <short-title>Biofuels
Security Act of 2006</short-title> by dividing 1.0 by the sum of—</text>
<subparagraph id="idDD9E29DC01664E4A87966DBE80DF0BED"><enum>(A)</enum><text>0.9 divided by
the fuel economy measured under section 32904(c) of this title when operating
the model on gasoline or diesel fuel; and</text>
</subparagraph><subparagraph id="idD4F7994E8AF24AB7873AAD898861CBEC"><enum>(B)</enum><text>0.1 divided by
the fuel economy measured under subsection (a) when operating the model on
alternative fuel.</text>
</subparagraph></paragraph><paragraph id="id685C19A31F83401CA25228BC77E52995"><enum>(4)</enum><text>Except as
provided in subsection (d) of this section, or section 32904(a)(2) of this
title, the Administrator shall measure the fuel economy for each model of dual
fueled automobiles manufactured by a manufacturer in each model year beginning
not less than 54 months after the date of enactment of the
<short-title>Biofuels Security Act of 2006</short-title>
in accordance with section 32904(c) of this title.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8E446FE3CCDF4176BCEE64388D08FF18"><enum>(5)</enum><text>Notwithstanding
paragraphs (2) through (4) of this subsection, the fuel economy for all dual
fueled automobiles manufactured to comply with the requirements under section
32902A(a) of this title, including automobiles for which dual fueled automobile
credits have been used or traded under section 32902A(b) of this title, shall
be measured in accordance with section 32904(c) of this
title.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section>