II 110th CONGRESS 1st Session S. 1073 IN THE SENATE OF THE UNITED STATES March 29, 2007 Mrs. Feinstein (for herself, Ms. Collins, and Ms. Snowe) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To amend the Clean Air Act to promote the use of fuels with low lifecycle greenhouse gas emissions, to establish a greenhouse gas performance standard for motor vehicle fuels, to require a significant decrease in greenhouse gas emissions from motor vehicles, and for other purposes.

1.

Short title

This Act may be cited as the Clean Fuels and Vehicles Act of 2007.

2.

Fuel with low lifecycle greenhouse gas emissions; greenhouse gas emission reductions

Title II of the Clean Air Act (42 U.S.C. 7581 et seq.) is amended by adding at the end the following: D

Fuel with low lifecycle greenhouse gas emissions; greenhouse gas emission reductions

251.

Definitions

In this part: (1)

Greenhouse gas

The term greenhouse gas means— (A)carbon dioxide; (B)methane; (C)nitrous oxide; (D)hydrofluorocarbons; (E)perfluorocarbons; and (F)sulfur hexafluoride. (2)

Lifecycle greenhouse gas emissions

The term lifecycle greenhouse gas emissions means the aggregate quantity of greenhouse gases emitted per unit of fuel from production to use (including feedstock production or extraction and distribution). (3)

Major oil company

The term major oil company has the meaning given the term in section 105(b) of the Energy Policy and Conservation Act (42 U.S.C. 6213(b)). (4)

Motor vehicle

The term motor vehicle has the meaning given the term in section 216.

252.

Greenhouse gas emission reductions from fuels available for motor vehicles

(a)

Determination process; fuel emissions baseline

(1)

In general

Not later than January 1, 2010, the Administrator shall, by regulation— (A)establish a determination process for use in determining the lifecycle greenhouse gas emissions of a fuel; and (B)based on the aggregate quantity and variety of fuels available for motor vehicles used in the United States during calendar year 2007, determine the average quantity of lifecycle greenhouse gas emissions per unit of energy delivered to a motor vehicle (referred to in this section as the fuel emissions baseline). (2)

Considerations

For purposes of determining the lifecycle greenhouse gas emissions of a fuel under paragraph (1), the Administrator shall consider— (A)greenhouse gas emissions resulting from— (i)production, extraction, distribution, transportation, and end use of the fuel; (ii)issues relating to the end use efficiency of the fuel; (iii)changes in land use and land cover resulting from an activity described in clause (i) with respect to the fuel; and (iv)net climate impacts affecting the energy and agricultural sectors resulting from an activity described in clause (i) with respect to the fuel; and (B)any other appropriate matters, as determined by the Administrator. (3)

Requirements

The Administrator shall include in regulations promulgated to carry out paragraph (1) procedures by which the Administrator shall— (A)determine the lifecycle greenhouse gas emissions of a fuel and the fuel emissions baseline; (B)make each determination described in subparagraph (A), and information used in making the determinations, available to consumers; (C)label fuels with low lifecycle greenhouse gas emissions; and (D)provide information about adverse impacts of the fuel on— (i)land use and land cover; (ii)water, soil, and air quality; and (iii)public health. (b)

Subsequent average lifecycle greenhouse gas emissions

Not later than June 1, 2013, and annually thereafter, based on the aggregate quantity and variety of fuel available for motor vehicles used in the United States during the preceding calendar year, the Administrator shall determine, in accordance with the regulations promulgated under subsection (a), the average quantity of lifecycle greenhouse gas emissions per unit of energy delivered to a motor vehicle through the use of a unit of fuel for motor vehicles for the preceding calendar year. (c)

Required reductions in lifecycle greenhouse gas emissions

(1)

Regulations

The Administrator shall promulgate regulations to establish a credit trading program to address the lifecycle greenhouse gas emissions from fuels available for use in motor vehicles. (2)

Required emission reductions

The Administrator shall, by regulation, require each major oil company, refiner, or fuel importer that produces, sells, or introduces gasoline or other fuels available for use in motor vehicles into commerce in the United States to reduce the average lifecycle greenhouse gas emissions per unit of energy delivered to a motor vehicle through fuel to a level that is— (A)for calendar year 2015, 3 percent below the fuel emissions baseline; and (B)not later than every fifth calendar year thereafter, 3 percent below the average quantity of lifecycle greenhouse gas emissions per unit of energy delivered to a vehicle allowed pursuant to this section during the required fuel emissions level for the preceding calendar year, as determined by the Administrator under subsection (b). (3)

Use of credits

(A)

In general

For the purpose of complying with the required reductions in lifecycle greenhouse gas emissions under this section, each major oil company, fuel refiner, or fuel importer shall demonstrate, on an annual basis, that the fuel mix provided to the market by the company, refiner, or importer meets the lifecycle greenhouse gas emission level specified in subparagraphs (A) and (B) of paragraph (2), including if necessary, by using credits previously banked or purchased. (B)

Credits for additional reductions

The regulations promulgated to carry out this section shall permit a provider of a fuel that achieves a greater reduction in lifecycle greenhouse gas emissions than is required under subparagraph (A) or (B) of paragraph (2) for a particular compliance period to generate credits, based on— (i)the quantity of fuel provided; and (ii)the difference between— (I)the greater reduction in lifecycle greenhouse gas emissions of the fuel under subparagraph (A) or (B) of paragraph (2); and (II)the minimum required reduction in lifecycle greenhouse gas emissions of the fuel under that subparagraph. (d)

Statement of congressional intent

It is the intent of Congress that, through implementation of this section— (1)an incentive will be created for the use, in lieu of gasoline, of fuels having lower lifecycle greenhouse gas emissions; and (2)fuels with the lowest lifecycle greenhouse gas emissions will continue over time— (A)to be improved; (B)to become widely-available and competitive in the marketplace; and (C)to contribute to an overall reduction in greenhouse gas emissions.

253.

Greenhouse gas emission reductions from automobiles

(a)

Vehicle emissions baseline

Not later than January 1, 2009, based on the aggregate quantity and variety of new automobiles sold in the United States during model year 2002 and the average greenhouse gas emissions from those new automobiles, the Administrator shall determine the average quantity of greenhouse gas emissions per vehicle mile (referred to in this section as the new vehicle emissions baseline). (b)

Subsequent average emissions from new automobiles

Not later than June 1, 2015, and annually thereafter, based on the aggregate quantity and variety of new automobiles sold in the United States during the preceding model year and the average greenhouse gas emissions from those new automobiles during the preceding model year, the Administrator shall determine the average quantity of greenhouse gas emissions per vehicle mile for the model year. (c)

Required reductions in greenhouse gas emissions from automobiles

(1)

In general

The Administrator shall, by regulation, require each manufacturer of automobiles for sale in the United States to reduce the average quantity of greenhouse gas emissions per vehicle mile of the aggregate quantity and variety of automobiles manufactured by the manufacturer to a level that is— (A)for automobiles manufactured in model year 2016, 30 percent less than the new vehicle emissions baseline; and (B)not later than every fifth model year thereafter, such percent as shall be specified by the Administrator that is less than the average quantity of greenhouse gas emissions per vehicle mile required for the model year preceding that fifth model year, as determined by the Administrator under subsection (b).

.

3.

Optimized dual fueled vehicles

(a)

Optimized dual fueled automobiles

Section 32901(a) of title 49, United States Code, is amended— (1)by striking paragraph (2) and inserting the following: (2)alternative fueled automobile means an automobile that is— (A)a dedicated automobile; (B)a dual fueled automobile; or (C)an optimized dual fueled automobile. ; and (2)by adding at the end the following: (17)optimized dual fueled automobile means an automobile that— (A)is capable of operating on alternative fuel and on gasoline or diesel fuel; (B)can satisfactorily operate throughout a Federal testing procedure exclusively on alternative fuel, when fueled with the maximum alternative fuel capacity, as determined by the Administrator of the Environmental Protection Agency; and (C)when operated on alternative fuel, achieves an average fuel economy that is not less than 20 percent greater, on a gallon of gasoline-equivalent energy basis, than the fuel economy of the same automobile operated on gasoline or diesel fuel. . (b)

Fuel economy calculation for optimized dual fuel automobiles

Section 32905 of title 49, United States Code, is amended— (1)in subsection (b)— (A)by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting the subparagraphs appropriately; (B)by striking title, for any and inserting “title— (1)for any ; (C)in paragraph (1)(B) (as designated and redesignated by subparagraphs (A) and (B)), by striking fuel. and inserting fuel; and; and (D)by adding at the end the following: (2)for any model of dual fueled automobile manufactured by a manufacturer in any of model years 2011 through 2015, the Administrator of the Environmental Protection Agency shall measure the fuel economy for that model by dividing 1.0 by the sum obtained by adding— (A)for optimized dual fueled automobiles, the sum obtained by adding— (i).5 divided by the fuel economy measured under section 32904(c), when operating the model on gasoline and diesel fuel; and (ii).5 divided by the fuel economy measured under subsection (a), when operating the model on alternative fuel; and (B)for dual fueled automobiles other than optimized dual fueled automobiles, values that reflect the actual use of gasoline and diesel fuel relative to alternative fuel in the models based on a determination made by the Administrator, taking into account alternative fuel sales and total number of models of dual fueled vehicles other than optimized dual fueled automobiles. ; and (2)by striking subsection (f). (c)

Year modification

Section 32906(a) of title 49, United States Code, is amended— (1)in paragraph (1)— (A)by striking (1)(A) For and inserting (1) For; (B)by striking 2010 and inserting 2015; and (C)by striking subparagraph (B); and (2)in paragraph (2), by striking described— and all that follows through subparagraph (B) and inserting described in paragraph (1) is more than 1.2 miles per gallon, the limitation in that paragraph shall apply.. (d)

Increasing consumer awareness of Alternative fuel vehicles

Section 32908 of title 49, United States Code, is amended by adding at the end the following: (g)

Increasing consumer awareness of flexible fuel vehicles

The Secretary of Transportation shall promulgate regulations that— (1)require each manufacturer that manufactures alternative fuel vehicles that run on fuels with low lifecycle greenhouse gas emissions to install a green-colored fuel cap on each alternative fuel vehicle to distinguish the vehicle from vehicles that do not use low lifecycle greenhouse gas-emitting alternative fuels; and (2)prohibit a manufacturer from installing a green-colored fuel cap on an automobile manufactured by the manufacturer that does not run on a low lifecycle greenhouse gas-emitting alternative fuel. .