[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4306 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4306

  To amend the Clean Air Act and the Internal Revenue Code of 1986 to 
  increase the use of ethanol and bio-diesel, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 6, 2007

Mr. King of Iowa (for himself and Mr. Latham) introduced the following 
 bill; which was referred to the Committee on Energy and Commerce, and 
in addition to the Committees on Ways and Means and the Judiciary, 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 amend the Clean Air Act and the Internal Revenue Code of 1986 to 
  increase the use of ethanol and bio-diesel, and for other purposes.

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

                 TITLE I--USE OF ETHANOL AND BIO-DIESEL

SEC. 101. DEFINITIONS.

    Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)) is 
amended to read as follows:
            ``(1) Definitions.--In this section:
                    ``(A) Renewable fuel.--The term `renewable fuel' 
                means ethanol produced from renewable biomass.
                    ``(B) Bio-diesel.--The term `bio-diesel' means bio-
                diesel as defined in section 312(f) of the Energy 
                Policy Act of 1992 (42 U.S.C. 13220(f)), but only if 
                such fuel contains methyl or ethyl esters.
                    ``(C) Renewable biomass.--The term `renewable 
                biomass' means each of the following:
                            ``(i) Planted crops and crop residue 
                        harvested--
                                    ``(I) from agricultural land 
                                cleared or cultivated at any time prior 
                                to the enactment of this sentence that 
                                is either actively managed or fallow 
                                and nonforested; and
                                    ``(II) in compliance with a 
                                conservation plan that meets the 
                                standards, guidelines and restrictions 
                                provided for by Subtitles B and C of 
                                title XII of the Food Security Act of 
                                1985.
                            ``(ii) Planted trees and tree residue from 
                        actively managed tree plantations on non-
                        federal land cleared at any time prior to 
                        enactment of this sentence.
                            ``(iii) Animal waste material and animal 
                        byproducts.
                            ``(iv) Slash and pre-commercial thinnings 
                        from Federal and non-federal forestlands other 
                        than ecological communities with a global or 
                        state ranking of critically imperiled, 
                        imperiled, or rare pursuant to a State Natural 
                        Heritage Program, old growth forest, or late 
                        successional forest.
                            ``(v) Biomass obtained from the immediate 
                        vicinity of buildings and other areas regularly 
                        occupied by people, or of public 
                        infrastructure, at risk from wildfire.
                            ``(vi) Algae.
                            ``(vii) Separated food waste or yard waste.
                    ``(D) Small refinery.--The term `small refinery' 
                means a refinery for which the average aggregate daily 
                crude oil throughput for a calendar year (as determined 
                by dividing the aggregate throughput for the calendar 
                year by the number of days in the calendar year) does 
                not exceed 75,000 barrels.''.

SEC. 102. ETHANOL AND BIO-DIESEL STANDARDS.

    (a) Renewable Fuel Program.--Paragraph (2) of section 211(o) (42 
U.S.C. 7545(o)(2)) of the Clean Air Act is amended as follows:
            (1) Regulations.--Clause (i) of subparagraph (A) is amended 
        to read as follows: ``Not later than 1 year after the date of 
        enactment of this sentence, the Administrator shall promulgate 
        regulations under this paragraph to ensure that fuel sold or 
        introduced into commerce in the United States (except in 
        noncontiguous States or territories) for use in motor vehicles, 
        on an annual average basis, contains at least the applicable 
        volume of renewable fuel and bio-diesel, determined in 
        accordance with subparagraph (B).''
            (2) Applicable volumes.--Subparagraph (B) is amended by 
        striking out clause (iv) and by amending so much of 
        subparagraph (B) as precedes clause (iii) to read as follows:
                    ``(B) Applicable volumes.--
                            ``(i) Calendar years after 2005.--
                                    ``(I) Renewable fuel.--For the 
                                purpose of subparagraph (A), the 
                                applicable volume of renewable fuel for 
                                the calendar years 2006 through 2022 
                                shall be determined in accordance with 
                                the following table:

                                    Applicable volume of renewable fuel
``Calendar year:                              (in billions of gallons):
        2006...................................................     4.0
        2007...................................................     4.7
        2008...................................................     9.5
        2009...................................................      11
        2010...................................................    12.0
        2011...................................................    12.6
        2012...................................................    13.2
        2013...................................................    13.8
        2014...................................................    14.4
        2015...................................................    15.0
        2016...................................................    18.0
        2017...................................................    21.0
        2018...................................................    24.0
        2019...................................................    27.0
        2020...................................................    30.0
        2021...................................................    33.0
        2022...................................................    36.0
                                    ``(II) Biomass-based diesel.--For 
                                the purpose of subparagraph (A), the 
                                applicable volume of bio-diesel for the 
                                calendar years 2008 through 2012 shall 
                                be determined in accordance with the 
                                following table:

                                                   Applicable volume of
                                                             bio-diesel
``Calendar year:                              (in millions of gallons):
        2008...................................................     450
        2009...................................................     650
        2010...................................................     875
        2011...................................................   1,125
        2012...................................................   1,300
                            ``(ii) Other calendar years.--For the 
                        purposes of subparagraph (A), the applicable 
                        volumes of each fuel specified in the tables in 
                        clause (i) for calendar years after the 
                        calendar years specified in the tables shall be 
                        determined by the Administrator, in 
                        coordination with the Secretary of Energy and 
                        the Secretary of Agriculture, with a review of 
                        the implementation of the program during 
                        calendar years specified in the tables, and an 
                        analysis of--
                                    ``(I) the impact of the production 
                                and use of renewable fuels on the 
                                environment, air quality, biomass-based 
                                diesel, job creation, and rural 
                                economic development; and
                                    ``(II) the expected annual rate of 
                                future production of renewable fuels 
                                and biomass-based diesel);''.
    (b) Applicable Percentages.--Paragraph (3) of section 211(o) of the 
Clean Air Act (42 U.S.C. 7545(o)(3)) is amended as follows:
            (1) In subparagraph (A), strike ``2011'' and insert 
        ``2022''.
            (2) In subparagraph (A), strike ``gasoline'' and insert 
        ``fuel for motor vehicles''.
            (3) In subparagraph (B), strike ``2012'' and insert 
        ``2023'' and insert ``distributors'' after ``refineries'' in 
        clause (ii)(I).
            (4) In subparagraph (B), strike ``gasoline'' and insert 
        ``fuel for motor vehicles'' in clause (ii)(II).

SEC. 103. EFFECTIVE DATE.

    This title takes effect January 1, 2008.

        TITLE II--AVAILABILITY OF ETHANOL BLENDS AND BIO-DIESEL

SEC. 201. ETHANOL-BLEND FUEL INFRASTRUCTURE.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended 
by adding at the end the following:
            ``(11) Installation of ethanol-blend and bio-diesel fuel 
        pumps by covered owners at stations.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Covered owner.--The term `covered 
                        owner' 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, owns 1 or 
                        more retail station outlets, as determined by 
                        the Secretary.
                            ``(ii) Ethanol-blend fuel.--The term 
                        `ethanol-blend fuel' means a blend of gasoline 
                        at least 30 percent of the content of which is 
                        derived from renewable fuel.
                            ``(iii) Bio-diesel blend fuel.--The term 
                        `bio-diesel blend fuel' means a blend of diesel 
                        at least 5 percent of the content of which is 
                        derived from bio-diesel.
                            ``(iv) Secretary.--The term `Secretary' 
                        means the Secretary of Energy, acting in 
                        consultation with the Administrator and the 
                        Secretary of Agriculture.
                    ``(B) Regulations.--The Secretary shall promulgate 
                regulations to ensure that by 2009 each covered owner 
                installs or otherwise makes available 1 or more pumps 
                that dispense ethanol-blend fuel and one or more pumps 
                that dispense bio-diesel blend fuel (including any 
                other equipment necessary, such as tanks, to ensure 
                that the pumps function properly) at retail station 
                outlets of the covered owner.
                    ``(C) Financial responsibility.--In promulgating 
                regulations under subparagraph (C), the Secretary shall 
                ensure that each covered owner 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.''.

SEC. 202. FREEDOM FOR FUEL FRANCHISERS.

    (a) Prohibition on Restriction of Installation of Alternative Fuel 
Pumps.--
            (1) 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 ETHANOL BLEND 
              AND BIO-DIESEL FUEL PUMPS.

    ``(a) Definition.--In this section:
            ``(1) Alternative fuel.--The term `alternative blend fuel' 
        means any fuel--
                    ``(A) at least 30 percent of the volume of which 
                consists of ethanol; or
                    ``(B) any mixture of bio-diesel (as defined in 
                section 40A(d)(1) of the Internal Revenue Code of 1986) 
                and diesel fuel (as defined in section 4083(a)(3) of 
                the Internal Revenue Code of 1986), determined without 
                regard to any use of kerosene and containing at least 5 
                percent bio-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.--Notwithstanding any provision of a 
        franchise-related document in effect on the date of enactment 
        of this section, no franchisee or affiliate of a franchisee 
        shall be restricted from--
                    ``(A) installing on the marketing premises of the 
                franchisee an alternative blend fuel pump;
                    ``(B) converting an existing tank and pump on the 
                marketing premises of the franchisee for alternative 
                blend fuel use;
                    ``(C) advertising (including through the use of 
                signage or logos) the sale of any alternative blend 
                fuel; or
                    ``(D) selling alternative blend 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).
            ``(2) Enforcement.--Any restriction described in paragraph 
        (1) that is contained in a franchise-related document and in 
        effect on the date of enactment of this section--
                    ``(A) shall be considered to be null and void as of 
                that date; and
                    ``(B) shall not be enforced under section 105.
    ``(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 
alternative blend fuel in lieu of 1 grade of gasoline.''.
            (2) Conforming amendments.--
                    (A) In general.--Section 101(13) of the Petroleum 
                Marketing Practices Act (15 U.S.C. 2801(13)) is amended 
                by adjusting the indentation of subparagraph (C) 
                appropriately.
                    (B) Table of contents.--The table of contents of 
                the Petroleum Marketing Practices Act (15 U.S.C. 2801 
                note) is amended--
                            (i) by inserting after the item relating to 
                        section 106 the following:

``Sec. 107. Prohibition on restriction of installation of ethanol blend 
                            and bio-diesel fuel pumps.'';
                        and
                            (ii) by striking the item relating to 
                        section 202 and inserting the following:

``Sec. 202. Automotive fuel rating testing and disclosure 
                            requirements.''.
    (b) Application of Gasohol Competition Act of 1980.--Section 26 of 
the Clayton Act (15 U.S.C. 26a) is amended--
            (1) by redesignating subsection (c) as subsection (d);
            (2) by inserting after subsection (b) the following:
    ``(c) Restriction Prohibited.--For purposes of subsection (a), 
restricting the right of a franchisee to install on the premises of 
that franchisee ethanol blend or bio-diesel blend fuel pumps (within 
the meaning of section 107 of the Petroleum Marketing Practices Act (15 
U.S.C. 2801 et seq.)) shall be considered an unlawful restriction.''; 
and
            (3) in subsection (d) (as redesignated by paragraph (1))--
                    (A) by striking ``(d) As used in this section,'' 
                and inserting the following: ``section--
            ``(1) the term'';
                    (B) by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following:
            ``(2) the term `gasohol' includes any blend of ethanol and 
        gasoline.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2009.

SEC. 203. CERTIFICATION OF ETHANOL AND BIO-DIESEL BLEND FUELS.

    The Administrator of the Environmental Protection Agency shall, as 
promptly as practicable but not later than January 1, 2009, promulgate 
such regulations and take such other actions as may be necessary under 
section 211of the Clean Air Act to provide for the certification of 
motor vehicle fuels containing at least 30 percent ethanol and motor 
vehicle fuels containing at least 5 percent bio-diesel, notwithstanding 
section 221(f) or (h) of such Act or any other provision of law.

                       TITLE III--TAX PROVISIONS

SEC. 301. EXTENSION OF CREDIT FOR ALCOHOL USED AS FUEL.

    (a) In General.--
            (1) Credit against income tax.--
                    (A) Termination generally.--Paragraph (1) of 
                section 40(e) of the Internal Revenue Code of 1986 
                (relating to termination) is amended--
                            (i) by striking ``December 31, 2010'' in 
                        subparagraph (A) and inserting ``December 31, 
                        2012'', and
                            (ii) by striking ``January 1, 2011'' in 
                        subparagraph (B) and inserting ``January 1, 
                        2013''.
                    (B) Reduced rate for ethanol blenders.--Subsection 
                (h) of section 40 of such Code (relating to reduced 
                credit for ethanol blenders) is amended--
                            (i) by striking ``2010'' in paragraph (1) 
                        and inserting ``2012'', and
                            (ii) by striking ``2010'' in the table in 
                        paragraph (2) and inserting ``2012''.
            (2) Credit against excise tax.--Paragraph (5) of section 
        6426(b) of such Code (relating to termination) is amended by 
        striking ``December 31, 2010'' and inserting ``December 31, 
        2012''.
            (3) Payments for fuel used in trade or business.--
        Subparagraph (A) of section 6427(e)(5) of such Code (relating 
        to termination) is amended by striking ``December 31, 2010'' 
        and inserting ``December 31, 2012''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 302. EXTENSION OF BIO-DIESEL AND RENEWABLE DIESEL CREDIT.

    (a) In General.--
            (1) Credit against income tax.--Subsection (g) of section 
        40A of the Internal Revenue Code of 1986 (relating to 
        termination) is amended by striking ``December 31, 2008'' and 
        inserting ``December 31, 2012''.
            (2) Credit against excise tax.--Paragraph (6) of section 
        6426(c) of such Code is amended by striking ``December 31, 
        2010'' and inserting ``December 31, 2012''.
            (3) Payments for fuel used in trade or business.--
        Subparagraph (B) of section 6427(e)(5) of such Code is amended 
        by striking ``December 31, 2008'' and inserting ``December 31, 
        2012''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.
                                 <all>