[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3238 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3238

 To promote the development of renewable fuels infrastructure, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2007

  Mr. Boucher (for himself and Mr. Dingell) introduced the following 
 bill; which was referred to the Committee on Energy and Commerce, and 
in addition to the Committees on Science and Technology, Transportation 
 and Infrastructure, and Oversight and Government Reform, 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 concerned

_______________________________________________________________________

                                 A BILL


 
 To promote the development of renewable fuels infrastructure, 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 for this Act is as follows:

Sec. 1. Table of contents.
                 TITLE I--RENEWABLE FUEL INFRASTRUCTURE

Sec. 101. Renewable fuel infrastructure development.
Sec. 102. Prohibition on franchise agreement restrictions related to 
                            renewable fuel infrastructure.
Sec. 103. Renewable fuel dispenser requirements.
Sec. 104. Pipeline feasibility study.
Sec. 105. Study of ethanol-blended gasoline with greater levels of 
                            ethanol.
Sec. 106. Study of the adequacy of railroad transportation of 
                            domestically-produced renewable fuel.
Sec. 107. Standard specifications for biodiesel.
Sec. 108. Grants for cellulosic ethanol production.
Sec. 109. Consumer education campaign relating to flexible-fuel 
                            vehicles.
Sec. 110. Review of new renewable fuels or new renewable fuel 
                            additives.
Sec. 111. Domestic manufacturing conversion grant program.
Sec. 112. Cellulosic ethanol and biofuels research.
Sec. 113. Federal fleet fueling centers.
Sec. 114. Study of impact of increased renewable fuel use.
Sec. 115. Grants for renewable fuel production research and development 
                            in certain States.
Sec. 116. Study of effect of oil prices.
Sec. 117. Biodiesel as alternative fuel for CAFE purposes.
           TITLE II--UNITED STATES-ISRAEL ENERGY COOPERATION

Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Grant program.
Sec. 204. International Energy Advisory Board.
Sec. 205. Definitions.
Sec. 206. Termination.
Sec. 207. Authorization of appropriations.
Sec. 208. Constitutional authority.

                 TITLE I--RENEWABLE FUEL INFRASTRUCTURE

SEC. 101. RENEWABLE FUEL INFRASTRUCTURE DEVELOPMENT.

    (a) Definition.--For purposes of this Act--
            (1) the term ``renewable fuel'' means E85 biofuel, or B20;
            (2) the term ``biofuel'' means fuel produced entirely from 
        biological material and determined by the Department of Energy 
        and the Environmental Protection Agency to be commercially 
        viable;
            (3) the term ``B20'' means a mixture of biodiesel and 
        diesel fuel meeting the standard established by the American 
        Society for Testing and Materials or under section 211(u) of 
        the Clean Air Act for fuel containing 20 percent biodiesel;
            (4) the term ``E85'' means a fuel blend containing 85 
        percent denatured ethanol and 15 percent gasoline by volume;
            (5) the term ``flexible-fuel vehicle'' means any motor 
        vehicle warranted by the manufacturer of the vehicle as capable 
        of operating on gasoline or diesel fuel and on--
                    (A) E85; or
                    (B) B20; and
            (6) the term ``motor vehicle'' means, as defined in 
        regulations promulgated by the Administrator of the 
        Environmental Protection Agency that are in effect on the date 
        of enactment of this Act--
                    (A) a light-duty truck;
                    (B) a light-duty vehicle; or
                    (C) medium-duty passenger vehicle,
        that is designed to be propelled by gasoline or diesel fuel.
    (b) Infrastructure Development Grants.--The Secretary of Energy 
shall establish a program for making grants for providing assistance to 
retail and wholesale motor fuel dealers or other entities for the 
installation, replacement, or conversion of motor fuel storage and 
dispensing infrastructure to be used exclusively to store and dispense 
renewable fuel. Such infrastructure may include equipment used in the 
blending, distribution, and transport of such fuels.
    (c) Retail Technical and Marketing Assistance.--The Secretary of 
Energy shall enter into contracts with entities with demonstrated 
experience in assisting retail fueling stations in installing refueling 
systems and marketing renewable fuels nationally, for the provision of 
technical and marketing assistance to recipients of grants under this 
section. Such assistance shall include--
            (1) technical advice for compliance with applicable Federal 
        and State environmental requirements;
            (2) help in identifying supply sources and securing long-
        term contracts; and
            (3) provision of public outreach, education, and labeling 
        materials.
    (d) Allocation.--The Secretary of Energy may reserve funds 
appropriated for carrying out this section to support renewable fuels 
infrastructure development projects with a cost of greater than 
$1,000,000, that are of national significance. The Secretary shall 
reserve funds appropriated for the renewable fuels infrastructure 
development grant program for technical and marketing assistance 
described in subsection (c).
    (e) Selection Criteria.--Not later than 12 months after the date of 
enactment of this Act, the Secretary shall establish criteria for 
evaluating applications for grants under this section that will 
maximize the availability and use of renewable fuel, and that will 
ensure that renewable fuel is available across the country. Such 
criteria shall provide for--
            (1) consideration of the public demand for each renewable 
        fuel in a particular geographic area based on State 
        registration records showing the number of flexible-fuel 
        vehicles;
            (2) consideration of the opportunity to create or expand 
        corridors of renewable fuel stations along interstate or State 
        highways;
            (3) consideration of the experience of each applicant with 
        previous, similar projects;
            (4) consideration of population, number of flexible-fuel 
        vehicles, number of retail fuel outlets, and saturation of 
        flexible-fuel vehicles; and
            (5) priority consideration to applications that--
                    (A) are most likely to maximize displacement of 
                petroleum consumption, measured as a total quantity and 
                a percentage;
                    (B) are best able to incorporate existing 
                infrastructure while maximizing, to the extent 
                practicable, the use of renewable fuels; and
                    (C) demonstrate the greatest commitment on the part 
                of the applicant to ensure funding for the proposed 
                project and the greatest likelihood that the project 
                will be maintained or expanded after Federal assistance 
                under this section is completed.
    (f) Combined Applications.--States and local government entities 
and nonprofit entities may apply for assistance under this section on 
behalf of a group of retailers within a certain geographic area, or to 
carry out regional or multistate deployment projects. Any such 
application shall certify the availability and details of a program to 
match the Federal grant as required under subsection (g) and list the 
retail locations that would receive the funds.
    (g) Limitations.--Assistance provided under this section shall not 
exceed--
            (1) 33 percent of the estimated cost of the installation, 
        replacement, or conversion of motor fuel storage and dispensing 
        infrastructure; or
            (2) $180,000 for a combination of equipment at any one 
        retail outlet location.
    (h) Operation of Renewable Fuel Stations.--The Secretary shall 
establish rules that set forth requirements for grant recipients under 
this section that include providing to the public the renewable fuel, 
establishing a marketing plan that informs consumers of the price and 
availability of the renewable fuel, clearly labeling the dispensers and 
related equipment, and providing periodic reports on the status of the 
renewable fuel sales, the type and amount of the renewable fuel 
dispensed at each location, and the average price of such fuel.
    (i) Notification Requirements.--Not later than the date on which 
each renewable fuel station begins to offer renewable fuel to the 
public, the grant recipient that used grant funds to construct or 
upgrade such station shall notify the Secretary of Energy of such 
opening. The Secretary of Energy shall add each new renewable fuel 
station to the renewable fuel station locator on its Website when it 
receives notification under this subsection.
    (j) Ineligibility.--No person may receive assistance under this 
section and receive a credit under section 30C of the Internal Revenue 
Code of 1986.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
$200,000,000 for each of the fiscal years 2008 through 2014.
    (l) Restriction.--No grant shall be provided under this section to 
a large, vertically integrated oil company.

SEC. 102. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS RELATED TO 
              RENEWABLE FUEL INFRASTRUCTURE.

    (a) In General.--Title I of the Petroleum Marketing Practices Act 
(15 U.S.C. 2801 et seq.) is amended by adding at the end the following:

``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF RENEWABLE 
              FUEL PUMPS.

    ``(a) Definition.--In this section:
            ``(1) Renewable fuel.--The term `renewable fuel' means any 
        fuel--
                    ``(A) at least 85 percent of the volume of which 
                consists of ethanol; or
                    ``(B) any mixture of biodiesel and diesel or 
                renewable diesel (as defined in regulations adopted 
                pursuant to section 211(o) of the Clean Air Act (40 
                C.F.R., Part 80)), determined without regard to any use 
                of kerosene and containing at least 20 percent 
                biodiesel or renewable diesel.
            ``(2) Franchise-related document.--The term `franchise-
        related document' means--
                    ``(A) a franchise under this Act; and
                    ``(B) any other contract or directive of a 
                franchisor relating to terms or conditions of the sale 
                of fuel by a franchisee.
    ``(b) Prohibitions.--
            ``(1) In general.--No franchise-related document entered 
        into or renewed on or after the date of enactment of this 
        section shall contain any provision allowing a franchisor to 
        restrict the franchisee or any affiliate of the franchisee 
        from--
                    ``(A) installing on the marketing premises of the 
                franchisee a renewable fuel pump or tank, except that 
                the franchisee's franchisor may restrict the 
                installation of a tank on leased marketing premises of 
                such franchisor;
                    ``(B) converting an existing tank or pump on the 
                marketing premises of the franchisee for renewable fuel 
                use, so long as such tank or pump and the piping 
                connecting them are either warranted by the 
                manufacturer or certified by a recognized standards 
                setting organization to be suitable for use with such 
                renewable fuel;
                    ``(C) advertising (including through the use of 
                signage) the sale of any renewable fuel;
                    ``(D) selling renewable fuel in any specified area 
                on the marketing premises of the franchisee (including 
                any area in which a name or logo of a franchisor or any 
                other entity appears);
                    ``(E) purchasing renewable fuel from sources other 
                than the franchisor if the franchisor does not offer 
                its own renewable fuel for sale by the franchisee;
                    ``(F) listing renewable fuel availability or 
                prices, including on service station signs, fuel 
                dispensers, or light poles; or
                    ``(G) allowing for payment of renewable fuel with a 
                credit card,
        so long as such activities described in subparagraphs (A) 
        through (G) do not constitute mislabeling, misbranding, willful 
        adulteration, or other trademark violations by the franchisee.
            ``(2) Effect of provision.--Nothing in this section shall 
        be construed to preclude a franchisor from requiring the 
        franchisee to obtain reasonable indemnification and insurance 
        policies.
    ``(c) Exception to 3-Grade Requirement.--No franchise-related 
document that requires that 3 grades of gasoline be sold by the 
applicable franchisee shall prevent the franchisee from selling an 
renewable fuel in lieu of 1, and only 1, grade of gasoline.''.
    (b) Enforcement.--Section 105 of the Petroleum Marketing Practices 
Act (15 U.S.C. 2805) is amended by striking ``102 or 103'' each place 
it appears and inserting ``102, 103, or 107''.
    (c) Conforming Amendments.--
            (1) In general.--Section 101(13) of the Petroleum Marketing 
        Practices Act (15 U.S.C. 2801(13)) is amended by aligning the 
        margin of subparagraph (C) with subparagraph (B).
            (2) Table of contents.--The table of contents of the 
        Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is 
        amended--
                    (A) by inserting after the item relating to section 
                106 the following:

``Sec. 107. Prohibition on restriction of installation of renewable 
                            fuel pumps.'';
                and
                    (B) by striking the item relating to section 202 
                and inserting the following:

``Sec. 202. Automotive fuel rating testing and disclosure 
                            requirements.''.

SEC. 103. RENEWABLE FUEL DISPENSER REQUIREMENTS.

    (a) Market Penetration Reports.--The Secretary of Energy, in 
consultation with the Secretary of Transportation, shall determine and 
report to Congress annually on the market penetration for flexible-fuel 
vehicles in use within geographic regions to be established by the 
Secretary of Energy.
    (b) Dispenser Feasibility Study.--Not later than 24 months after 
the date of enactment of this Act, the Secretary of Energy, in 
consultation with the Department of Transportation, shall report to the 
Congress on the feasibility of requiring motor fuel retailers to 
install E-85 compatible dispensers and related systems at retail fuel 
facilities in regions where flexible-fuel vehicle market penetration 
has reached 15 percent of motor vehicles. In conducting such study, the 
Secretary shall consider and report on the following factors:
            (1) The commercial availability of E-85 fuel and the number 
        of competing E-85 wholesale suppliers in a given region.
            (2) The level of financial assistance provided on an annual 
        basis by the Federal Government, State governments, and 
        nonprofit entities for the installation of E-85 compatible 
        infrastructure.
            (3) The number of retailers whose retail locations are 
        unable to support more than 2 underground storage tank 
        dispensers.
            (4) The expense incurred by retailers in the installation 
        and sale of E-85 compatible dispensers and related systems and 
        any potential effects on the price of motor vehicle fuel.

SEC. 104. PIPELINE FEASIBILITY STUDY.

    (a) In General.--The Secretary of Energy, in consultation with the 
Secretary of Transportation, shall conduct a study of the feasibility 
of the construction of dedicated ethanol pipelines.
    (b) Factors.--In conducting the study, the Secretary shall 
consider--
            (1) the quantity of ethanol production that would make 
        dedicated pipelines economically viable;
            (2) existing or potential barriers to dedicated ethanol 
        pipelines, including technical, siting, financing, and 
        regulatory barriers;
            (3) market risk (including throughput risk) and means of 
        mitigating the risk;
            (4) regulatory, financing, and siting options that would 
        mitigate risk in those areas and help ensure the construction 
        of 1 or more dedicated ethanol pipelines;
            (5) financial incentives that may be necessary for the 
        construction of dedicated ethanol pipelines, including the 
        return on equity that sponsors of the initial dedicated ethanol 
        pipelines will require to invest in the pipelines;
            (6) technical factors that may compromise the safe 
        transportation of ethanol in pipelines, identifying remedial 
        and preventative measures to ensure pipeline integrity; and
            (7) such other factors as the Secretary considers 
        appropriate.
    (c) Report.--Not later than 15 months after the date of enactment 
of this Act, the Secretary shall submit to Congress a report describing 
the results of the study conducted under this section.

SEC. 105. STUDY OF ETHANOL-BLENDED GASOLINE WITH GREATER LEVELS OF 
              ETHANOL.

    (a) In General.--The Administrator of the Environmental Protection 
Agency, in cooperation with the Secretary of Energy and the Secretary 
of Transportation, and after providing notice and an opportunity for 
public comment, shall conduct a study of the feasibility of widespread 
utilization in the United States of ethanol blended gasoline with 
levels of ethanol greater than 10 percent.
    (b) Study.--The study under subsection (a) shall include--
            (1) a review of production and infrastructure constraints 
        on increasing the consumption of ethanol;
            (2) an evaluation of the economic, market, and energy 
        impacts of State and regional differences in ethanol blends;
            (3) an evaluation of the economic, market, and energy 
        impacts on gasoline retailers and consumers of separate and 
        distinctly labeled fuel storage facilities and dispensers;
            (4) an evaluation of the environmental impacts of mid-level 
        ethanol blends on evaporative and exhaust emissions from on-
        road, off-road and marine engines, recreational boats, 
        vehicles, and equipment;
            (5) an evaluation of the impacts of mid-level ethanol 
        blends on the operation, durability, and performance of on-
        road, off-road, and marine engines, recreational boats, 
        vehicles, and equipment; and
            (6) an evaluation of the safety impacts of mid-level 
        ethanol blends on consumers that own and operate off-road and 
        marine engines, recreational boats, vehicles, or equipment.
    (c) Report.--Not later than 24 months after the date of enactment 
of this Act, the Administrator shall submit to the Committee on Energy 
and Commerce of the House of Representatives and the Committee on 
Environment and Public Works of the Senate a report describing the 
results of the study conducted under this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator such sums as may be necessary for the 
completion of the study required under this section.

SEC. 106. STUDY OF THE ADEQUACY OF RAILROAD TRANSPORTATION OF 
              DOMESTICALLY-PRODUCED RENEWABLE FUEL.

    (a) Study.--
            (1) In general.--The Secretary of Energy, in consultation 
        with the Secretary of Transportation, shall conduct a study of 
        the adequacy of railroad transportation of domestically-
        produced renewable fuel.
            (2) Components.--In conducting the study under paragraph 
        (1), the Secretary shall consider--
                    (A) the adequacy of, and appropriate location for, 
                tracks that have sufficient capacity, and are in the 
                appropriate condition, to move the necessary quantities 
                of domestically-produced renewable fuel;
                    (B) the adequacy of the supply of railroad tank 
                cars, locomotives, and rail crews to move the necessary 
                quantities of domestically-produced renewable fuel in a 
                timely fashion;
                    (C)(i) the projected costs of moving the 
                domestically-produced renewable fuel using railroad 
                transportation; and
                    (ii) the impact of the projected costs on the 
                marketability of the domestically-produced renewable 
                fuel;
                    (D) whether there is adequate railroad competition 
                to ensure--
                            (i) a fair price for the railroad 
                        transportation of domestically-produced 
                        renewable fuel; and
                            (ii) acceptable levels of service for 
                        railroad transportation of domestically-
                        produced renewable fuel;
                    (E) any rail infrastructure capital costs that the 
                railroads indicate should be paid by the producers or 
                distributors of domestically-produced renewable fuel;
                    (F) whether Federal agencies have adequate legal 
                authority to ensure a fair and reasonable 
                transportation price and acceptable levels of service 
                in cases in which the domestically-produced renewable 
                fuel source does not have access to competitive rail 
                service;
                    (G) whether Federal agencies have adequate legal 
                authority to address railroad service problems that may 
                be resulting in inadequate supplies of domestically-
                produced renewable fuel in any area of the United 
                States; and
                    (H) any recommendations for any additional legal 
                authorities for Federal agencies to ensure the reliable 
                railroad transportation of adequate supplies of 
                domestically-produced renewable fuel at reasonable 
                prices.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report that describes the 
results of the study conducted under subsection (a).

SEC. 107. STANDARD SPECIFICATIONS FOR BIODIESEL.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
redesignating subsection (s) as subsection (t), redesignating 
subsection (r) (relating to conversion assistance for cellulosic 
biomass, waste-derived ethanol, approved renewable fuels) as subsection 
(s) and by adding the following new subsection at the end thereof:
    ``(u) Standard Specifications for Biodiesel.--Unless the American 
Society for Testing and Materials has adopted a standard for diesel 
fuel containing 20 percent biodiesel, not later than 1 year after the 
date of enactment of this subsection, the Administrator shall initiate 
a rulemaking establishing a series of uniform per gallon fuel standards 
for categories of fuels that contain biodiesel, including one standard 
for fuel containing 20 percent biodiesel, and designate an 
identification number for fuel meeting each standard in each such 
category so that vehicle manufacturers are able to design engines to 
use fuel meeting one or more of such standards. The Administrator shall 
finalize the standards under this subsection 18 months after the date 
of the enactment of this subsection.''.

SEC. 108. GRANTS FOR CELLULOSIC ETHANOL PRODUCTION.

    Subsection (s) of section 211 of the Clean Air Act (as added by 
section 1512 of the Energy Policy Act of 2005) (and as redesignated by 
section 107 of this Act), relating to conversion assistance for 
cellulosic biomass, waste-derived ethanol, and approved renewable 
fuels, is amended as follows:
            (1) By adding the following new subparagraphs at the end of 
        paragraph (3):
                    ``(D) $500,000,000 for fiscal year 2009.
                    ``(E) $500,000,000 for fiscal year 2010.''.
            (2) By adding the following new paragraph at the end 
        thereof:
            ``(5) Criteria.--In awarding grants under this section, the 
        Secretary shall give priority to applications that promote 
        feedstock diversity and the geographic dispersion of production 
        facilities.''.

SEC. 109. CONSUMER EDUCATION CAMPAIGN RELATING TO FLEXIBLE-FUEL 
              VEHICLES.

    The Secretary of Transportation, in consultation with the Secretary 
of Energy, shall carry out an education program to inform consumers 
about which motor vehicles are flexible-fuel vehicles and how to 
exercise their opportunity to choose E85 or B20. As part of such 
program, the Secretary of Transportation may coordinate with motor 
vehicle manufacturers to notify owners of flexible-fuel vehicles of 
locations where E85 and B20 are sold in their area.

SEC. 110. REVIEW OF NEW RENEWABLE FUELS OR NEW RENEWABLE FUEL 
              ADDITIVES.

    Notwithstanding any other provision of law, a waiver under section 
211(f)(4) of the Clean Air Act for any renewable fuel or renewable fuel 
additive shall not be considered granted unless the Administrator of 
the Environment Protection Agency, following a public notice and 
comment period, takes final action granting the application for a 
waiver based on an application of the section 211(f)(4) standards and 
criteria with respect to emissions control devices or systems and 
vehicle emissions standards to on-road and non-road engines and 
vehicles. The Administrator shall take final action on an application 
for a waiver no later than 270 days after the Administrator receives 
the application.

SEC. 111. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

    Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``, flexible-fuel,'' after 
                ``production of efficient hybrid''; and
                    (B) by adding at the end the following: ``Priority 
                shall be given to the refurbishment or retooling of 
                manufacturing facilities that have recently ceased 
                operation or will cease operation in the near 
                future.''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Coordination With State and Local Programs.--The Secretary 
may coordinate implementation of this section with State and local 
programs designed to accomplish similar goals, including the retention 
and retraining of skilled workers from the such manufacturing 
facilities, including by establishing matching grant arrangements.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.''.

SEC. 112. CELLULOSIC ETHANOL AND BIOFUELS RESEARCH.

    There are authorized to be appropriated to the Secretary of Energy 
$50,000,000 for fiscal year 2008, to remain available until expended, 
for cellulosic ethanol and biofuels research and development grants to 
10 entities from among 1890 land grant colleges, Historically Black 
Colleges or Universities, Tribal serving institutions, or Hispanic 
serving institutions, selected by the Secretary of Energy to receive a 
grant under this section through a peer-reviewed competitive process. 
The selected entities shall then collaborate with one of the Department 
of Energy's Office of Science Bioenergy Research Centers.

SEC. 113. FEDERAL FLEET FUELING CENTERS.

    (a) In General.--Not later than January 1, 2010, the head of each 
Federal agency shall install at least 1 renewable fuel pump at each 
Federal fleet fueling center in the United States under the 
jurisdiction of the head of the Federal agency.
    (b) Report.--Not later than October 31 of the first calendar year 
beginning after the date of the enactment of this Act, and each October 
31 thereafter, the President shall submit to Congress a report that 
describes the progress toward complying with subsection (a), including 
identifying--
            (1) the number of Federal fleet fueling centers that 
        contain at least 1 renewable fuel pump; and
            (2) the number of Federal fleet fueling centers that do not 
        contain any renewable fuel pumps.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 114. STUDY OF IMPACT OF INCREASED RENEWABLE FUEL USE.

    (a) In General.--The Secretary of Energy shall, after consultation 
with the Administrator of the Environmental Protection Agency, the 
Administrator of the Energy Information Administration, and the 
Secretary of Agriculture, conduct a study to assess the impact of 
increased use of renewable fuels on the United States economy. The 
Secretary shall enter into an arrangement with the National Academy of 
Sciences to provide peer review of the study.
    (b) Study Elements.--The study shall analyze, in terms of renewable 
fuels, the following:
            (1) The impact of the use of renewable fuels on the energy 
        security of the United States.
            (2) The impact of the use of renewable fuels on public 
        health and the environment, including air and water quality.
            (3) The impact of renewable fuels on the infrastructure of 
        the United States, including the deliverability of materials, 
        goods, and products other than alternative fuels.
            (4) The impact of the use of renewable fuels on job 
        creation, the price and supply of agricultural commodities, and 
        rural economic development.
    (c) Participation.--In conducting the study under this section, the 
Secretary and other agencies shall seek the participation, and consider 
the input, of the following:
            (1) Producers of feed grains.
            (2) Producers of livestock, poultry, and pork products.
            (3) Producers of energy.
            (4) Individuals and entities interested in issues relating 
        to conservation, the environment, and nutrition, and users of 
        renewable fuels.
    (d) Report.--The Secretary shall submit a report to the Congress 
containing the initial results of the study under this section not 
later than 2 years after enactment of this Act and subsequently 
supplement and update such report every 3 years thereafter.

SEC. 115. GRANTS FOR RENEWABLE FUEL PRODUCTION RESEARCH AND DEVELOPMENT 
              IN CERTAIN STATES.

    (a) In General.--The Secretary shall provide grants to eligible 
entities to conduct research into, and develop and implement, renewable 
fuel production technologies in States with low rates of ethanol 
production, including low rates of production of cellulosic biomass 
ethanol, as determined by the Secretary.
    (b) Eligibility.--To be eligible to receive a grant under the 
section, an entity shall--
            (1)(A) be an institution of higher education (as defined in 
        section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)) 
        located in a State described in subsection (a);
            (B) be an institution--
                    (i) referred to in section 532 of the Equity in 
                Educational Land-Grant Status Act of 1994 (Public Law 
                103-382; 7 U.S.C. 301 note);
                    (ii) that is eligible for a grant under the 
                Tribally Controlled College or University Assistance 
                Act of 1978 (25 U.S.C. 1801 et seq.), including Dine 
                College; or
                    (iii) that is eligible for a grant under the Navajo 
                Community College Act (25 U.S.C. 640a et seq.); or
            (C) be a consortium of such institutions of higher 
        education, industry, State agencies, Indian tribal agencies, or 
        local government agencies located in the State; and
            (2) have proven experience and capabilities with relevant 
        technologies.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 2008 through 2010.

SEC. 116. STUDY OF EFFECT OF OIL PRICES.

    The Secretary of Energy shall conduct a study to review the 
anticipated effects on renewable fuels production if oil were priced no 
lower than $40 per barrel. The Secretary shall report the findings of 
such study to Congress by December 31, 2008.

SEC. 117. BIODIESEL AS ALTERNATIVE FUEL FOR CAFE PURPOSES.

    Section 32901(a) of title 49, United States Code, is amended--
            (1) in paragraph (1), by redesignating subparagraphs (J) 
        and (K) as subparagraphs (K) and (L), respectively, and 
        inserting after subparagraph (I) the following:
                    ``(J) B20 biodiesel blend;''; and
            (2) by redesignating paragraphs (7) through (16) as 
        paragraphs (9) through (18), respectively, and insert after 
        paragraph (6) the following:
            ``(7) `biodiesel' means the monoalkyl esters of long chain 
        fatty acids derived from plant or animal matter which meet--
                    ``(A) 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); and
                    ``(B) the requirements of the American Society of 
                Testing and Materials D6751.
            ``(8) `B20 biodiesel blend' means a mixture of biodiesel 
        and diesel fuel approximately 20 percent of the content of 
        which is biodiesel, and commonly known as `B20'.''.

           TITLE II--UNITED STATES-ISRAEL ENERGY COOPERATION

SEC. 201. SHORT TITLE.

    This title may be cited as the ``United States-Israel Energy 
Cooperation Act''.

SEC. 202. FINDINGS.

    Congress finds that--
            (1) it is in the highest national security interests of the 
        United States to ensure secure access to reliable energy 
        sources;
            (2) the United States relies heavily on the foreign supply 
        of crude oil to meet the energy needs of the United States, 
        currently importing 58 percent of the total oil requirements of 
        the United States, of which 45 percent comes from member states 
        of the Organization of Petroleum Exporting Countries (OPEC);
            (3) revenues from the sale of oil by some of these 
        countries directly or indirectly provide funding for terrorism 
        and propaganda hostile to the values of the United States and 
        the West;
            (4) in the past, these countries have manipulated the 
        dependence of the United States on the oil supplies of these 
        countries to exert undue influence on United States policy, as 
        during the embargo of OPEC during 1973 on the sale of oil to 
        the United States, which became a major factor in the ensuing 
        recession;
            (5) research by the Energy Information Administration of 
        the Department of Energy has shown that the dependence of the 
        United States on foreign oil will increase by 33 percent over 
        the next 20 years;
            (6) a rise in the price of imported oil sufficient to 
        increase gasoline prices by 10 cents per gallon at the pump 
        would result in an additional outflow of $18,000,000,000 from 
        the United States to oil-exporting nations;
            (7) for economic and national security reasons, the United 
        States should reduce, as soon as practicable, the dependence of 
        the United States on nations that do not share the interests 
        and values of the United States;
            (8) the State of Israel has been a steadfast ally and a 
        close friend of the United States since the creation of Israel 
        in 1948;
            (9) like the United States, Israel is a democracy that 
        holds civil rights and liberties in the highest regard and is a 
        proponent of the democratic values of peace, freedom, and 
        justice;
            (10) cooperation between the United States and Israel on 
        such projects as the development of the Arrow Missile has 
        resulted in mutual benefits to United States and Israeli 
        security;
            (11) the special relationship between Israel and the United 
        States has been and continues to be manifested in a variety of 
        jointly-funded cooperative programs in the field of scientific 
        research and development, such as--
                    (A) the United States-Israel Binational Science 
                Foundation (BSF);
                    (B) the Israel-United States Binational 
                Agricultural Research and Development Fund (BARD); and
                    (C) the Israel-United States Binational Industrial 
                Research and Development (BIRD) Foundation;
            (12) these programs, supported by the matching 
        contributions from the Government of Israel and the Government 
        of the United States and directed by key scientists and 
        academics from both countries, have made possible many 
        scientific breakthroughs in the fields of life sciences, 
        medicine, bioengineering, agriculture, biotechnology, 
        communications, and others;
            (13) on February 1, 1996, United States Secretary of Energy 
        Hazel R. O'Leary and Israeli Minister of Energy and 
        Infrastructure Gonen Segev signed the Agreement Between the 
        Department of Energy of the United States of America and the 
        Ministry of Energy and Infrastructure of Israel Concerning 
        Energy Cooperation, to establish a framework for collaboration 
        between the United States and Israel in energy research and 
        development activities;
            (14) the United States and Israeli governments should 
        promote cooperation in a broad range of projects designed to 
        enhance supplies of nonpetroleum energy for both countries, and 
        to provide for cutting edge research in each country;
            (15) Israeli scientists and researchers have long been at 
        the forefront of research and development in the field of 
        alternative renewable energy sources;
            (16) many of the top corporations of the world have 
        recognized the technological and scientific expertise of Israel 
        by locating important research and development facilities in 
        Israel;
            (17) among the technological breakthroughs made by Israeli 
        scientists and researchers in the field of alternative, 
        renewable energy sources are--
                    (A) the development of a cathode that uses 
                hexavalent iron salts that accept 3 electrons per ion 
                and enable rechargeable batteries to provide 3 times as 
                much electricity as existing rechargeable batteries;
                    (B) the development of a technique that vastly 
                increases the efficiency of using solar energy to 
                generate hydrogen for use in energy cells; and
                    (C) the development of a novel membrane used in new 
                and powerful direct-oxidant fuel cells that is capable 
                of competing favorably with hydrogen fuel cells and 
                traditional internal combustion engines; and
            (18) cooperation between the United States and Israel in 
        the field of research and development of alternative renewable 
        energy sources would be in the interests of both countries, and 
        both countries stand to gain much from such cooperation.

SEC. 203. GRANT PROGRAM.

    (a) Authority.--Pursuant to the responsibilities described in 
section 102(10), (14), and (17) of the Department of Energy 
Organization Act (42 U.S.C. 7112(10), (14), and (17)) and section 
103(9) of the Energy Reorganization Act of 1974 (42 U.S.C. 5813(9)), 
the Secretary, in consultation with the BIRD or BSF, shall award grants 
to eligible entities.
    (b) Application.--
            (1) Submission of applications.--To receive a grant under 
        this section, an eligible entity shall submit an application to 
        the Secretary containing such information and assurances as the 
        Secretary, in consultation with the BIRD or BSF, may require.
            (2) Selection of eligible entities.--The Secretary, in 
        consultation with the Directors of the BIRD and BSF, may review 
        any application submitted by any eligible entity and select any 
        eligible entity meeting criteria established by the Secretary, 
        in consultation with the Advisory Board, for a grant under this 
        section.
    (c) Amount of Grant.--The amount of each grant awarded for a fiscal 
year under this section shall be determined by the Secretary, in 
consultation with the BIRD or BSF.
    (d) Recoupment.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall establish procedures 
        and criteria for recoupment in connection with any eligible 
        project carried out by an eligible entity that receives a grant 
        under this section, which has led to the development of a 
        product or process which is marketed or used.
            (2) Amount required.--
                    (A) Except as provided in subparagraph (B), such 
                recoupment shall be required as a condition for award 
                and be proportional to the Federal share of the costs 
                of such project, and shall be derived from the proceeds 
                of royalties or licensing fees received in connection 
                with such product or process.
                    (B) In the case where a product or process is used 
                by the recipient of a grant under this section for the 
                production and sale of its own products or processes, 
                the recoupment shall consist of a payment equivalent to 
                the payment which would be made under subparagraph (A).
            (3) Waiver.--The Secretary may at any time waive or defer 
        all or some of the recoupment requirements of this subsection 
        as necessary, depending on--
                    (A) the commercial competitiveness of the entity or 
                entities developing or using the product or process;
                    (B) the profitability of the project; and
                    (C) the commercial viability of the product or 
                process utilized.
    (e) Private Funds.--The Secretary may accept contributions of funds 
from private sources to carry out this title.
    (f) Office of Energy Efficiency and Renewable Energy.--The 
Secretary shall carry out this section through the existing programs at 
the Office of Energy Efficiency and Renewable Energy.
    (g) Report.--Not later than 180 days after receiving a grant under 
this section, each recipient shall submit a report to the Secretary--
            (1) documenting how the recipient used the grant funds; and
            (2) evaluating the level of success of each project funded 
        by the grant.

SEC. 204. INTERNATIONAL ENERGY ADVISORY BOARD.

    (a) Establishment.--There is established in the Department of 
Energy an International Energy Advisory Board.
    (b) Duties.--The Advisory Board shall advise the Secretary on--
            (1) criteria for the recipients of grants awarded under 
        section 203(a);
            (2) the total amount of grant money to be awarded to all 
        grantees selected by the Secretary, in consultation with the 
        BIRD; and
            (3) the total amount of grant money to be awarded to all 
        grantees selected by the Secretary, in consultation with the 
        BSF, for each fiscal year.
    (c) Membership.--
            (1) Composition.--The Advisory Board shall be composed of--
                    (A) 1 member appointed by the Secretary of 
                Commerce;
                    (B) 1 member appointed by the Secretary of Energy; 
                and
                    (C) 2 members who shall be Israeli citizens, 
                appointed by the Secretary of Energy after consultation 
                with appropriate officials in the Israeli Government.
            (2) Deadline for appointments.--The initial appointments 
        under paragraph (1) shall be made not later than 60 days after 
        the date of enactment of this Act.
            (3) Term.--Each member of the Advisory Board shall be 
        appointed for a term of 4 years.
            (4) Vacancies.--A vacancy on the Advisory Board shall be 
        filled in the manner in which the original appointment was 
        made.
            (5) Basic pay.--
                    (A) Compensation.--A member of the Advisory Board 
                shall serve without pay.
                    (B) Travel expenses.--Each member of the Advisory 
                Board shall receive travel expenses, including per diem 
                in lieu of subsistence, in accordance with applicable 
                provisions of subchapter I of chapter 57 of title 5, 
                United States Code.
            (6) Quorum.--Three members of the Advisory Board shall 
        constitute a quorum.
            (7) Chairperson.--The Chairperson of the Advisory Board 
        shall be designated by the Secretary of Energy at the time of 
        the appointment.
            (8) Meetings.--The Advisory Board shall meet at least once 
        annually at the call of the Chairperson.
    (d) Termination.--Section 14(a)(2)(B) of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the Advisory Board.

SEC. 205. DEFINITIONS.

    In this title:
            (1) Advisory board.--The term ``Advisory Board'' means the 
        International Energy Advisory Board established by section 
        204(a).
            (2) BIRD.--The term ``BIRD'' means the Israel-United States 
        Binational Industrial Research and Development Foundation.
            (3) BSF.--The term ``BSF'' means the United States-Israel 
        Binational Science Foundation.
            (4) Eligible entity.--The term ``eligible entity'' means a 
        joint venture comprised of both Israeli and United States 
        private business entities or a joint venture comprised of both 
        Israeli academic persons (who reside and work in Israel) and 
        United States academic persons, that--
                    (A) carries out an eligible project; and
                    (B) is selected by the Secretary, in consultation 
                with the BIRD or BSF, using the criteria established by 
                the Secretary, in consultation with the Advisory Board.
            (5) Eligible project.--The term ``eligible project'' means 
        a project to encourage cooperation between the United States 
        and Israel on research, development, or commercialization of 
        alternative energy, improved energy efficiency, or renewable 
        energy sources.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy, acting through the Assistant Secretary of Energy for 
        Energy Efficiency and Renewable Energy.

SEC. 206. TERMINATION.

    The grant program authorized under section 203 and the Advisory 
Board shall terminate upon the expiration of the 7-year period which 
begins on the date of the enactment of this Act.

SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

    The Secretary is authorized to expend not more than $20,000,000 to 
carry out this title for each of fiscal years 2008 through 2014 from 
funds previously authorized to the Office of Energy Efficiency and 
Renewable Energy.

SEC. 208. CONSTITUTIONAL AUTHORITY.

    The Constitutional authority on which this title rests is the power 
of Congress to regulate commerce with foreign nations as enumerated in 
article I, section 8 of the United States Constitution.
                                 <all>