[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1616 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1616

    To amend the Clean Air Act to promote and assure the quality of 
                biodiesel fuel, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 13, 2007

 Mr. Durbin (for himself, Mr. Grassley, Mr. Carper, Mr. Lugar, and Mr. 
Obama) 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 and assure the quality of 
                biodiesel fuel, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Biodiesel Promotion and Quality 
Assurance Act of 2007''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the promotion of the biodiesel industry of the United 
        States is a critical component of an energy policy that reduces 
        dependence on foreign sources of petroleum;
            (2) a strong biodiesel industry will--
                    (A) significantly enhance the energy security of 
                the United States; and
                    (B) promote economic development and job creation 
                (particularly in rural areas of the United States), 
                while providing environmental, health, and greenhouse 
                gas reduction benefits;
            (3) a federally-implemented biodiesel standard will result 
        in the most efficient pricing for biodiesel across the United 
        States; and
            (4) it is critical to ensure that only high quality 
        biodiesel is dispensed.

SEC. 3. BIODIESEL FUEL STANDARD.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended by inserting after subsection (o) the following:
    ``(p) Biodiesel Fuel.--
            ``(1) Definitions.--In this subsection:
                    ``(A) ASTM.--The term `ASTM' means the American 
                Society of Testing and Materials.
                    ``(B) Bio-based diesel replacement.--The term `bio-
                based diesel replacement' means any type of bio-based 
                renewable fuel derived from plant or animal matter 
                that--
                            ``(i) may be used as a substitute for 
                        standard diesel fuel; and
                            ``(ii) meets--
                                    ``(I) the registration requirements 
                                for fuels and fuel additives under this 
                                section; and
                                    ``(II) the requirements of 
                                applicable ASTM standards.
                    ``(C) Biodiesel.--
                            ``(i) In general.--The term `biodiesel' 
                        means the monoalkyl esters of long chain fatty 
                        acids derived from plant or animal matter that 
                        meet--
                                    ``(I) the registration requirements 
                                for fuels and fuel additives under this 
                                section; and
                                    ``(II) the requirements of ASTM 
                                standard D6751.
                            ``(ii) Inclusion.--For the purpose of 
                        measuring the applicable volume of the 
                        biodiesel fuel standard under paragraph (2), 
                        the term `biodiesel' includes any bio-based 
                        diesel replacement that meets--
                                    ``(I) applicable registration 
                                requirements for fuels and fuel 
                                additives under this section; or
                                    ``(II) applicable ASTM standards.
                    ``(D) Biodiesel blend.--The term `biodiesel blend' 
                means a blend of biodiesel fuel that meets the 
                requirements of ASTM standard D6751 with petroleum-
                based diesel fuel.
            ``(2) Biodiesel fuel standard.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection, the Administrator 
                shall promulgate regulations to ensure that diesel fuel 
                sold or introduced into commerce in the United States, 
                on an annual average basis, contains the applicable 
                volume of biodiesel determined in accordance with 
                subparagraphs (B) and (C).
                    ``(B) Calendar years 2008 through 2012.--For the 
                purpose of subparagraph (A), the applicable volume for 
                any of calendar years 2008 through 2012 shall be 
                determined in accordance with the following table:

                                        Applicable volume of biodiesel 
``Calendar year:                              (in millions of gallons):
        2008...................................................    450 
        2009...................................................    625 
        2010...................................................    800 
        2011...................................................  1,000 
        2012...................................................  1,250.
                    ``(C) Calendar year 2013 and thereafter.--For the 
                purpose of subparagraph (A), the applicable volume for 
                calendar year 2013 and each calendar year thereafter 
                shall be determined by the Administrator, in 
                consultation with the Secretary of Energy and the 
                Secretary of Agriculture, based on a review of the 
                implementation of the program during calendar years 
                2008 through 2012, including a review of--
                            ``(i) the impact of the use of renewable 
                        fuels on the environment, air quality, energy 
                        security, job creation, and rural economic 
                        development; and
                            ``(ii) the expected annual rate of future 
                        production of biodiesel.
                    ``(D) Minimum percentage of biodiesel.--For the 
                purpose of subparagraph (B), at least 80 percent of the 
                minimum applicable volume for each of calendar years 
                2008 through 2012 shall be biodiesel.
                    ``(E) Compliance.--The regulations promulgated 
                under subparagraph (A) shall contain compliance 
                provisions applicable to refineries, blenders, 
                distributors, and importers, as appropriate, to ensure 
                that the requirements of this paragraph are met, but 
                shall not--
                            ``(i) restrict geographic areas in which 
                        biodiesel may be used; or
                            ``(ii) impose any per-gallon obligation for 
                        the use of biodiesel.
                    ``(F) Waivers.--
                            ``(i) Market evaluation.--The 
                        Administrator, in consultation with the 
                        Secretary of Energy and the Secretary of 
                        Agriculture, shall continually evaluate the 
                        impact of the biodiesel requirements 
                        established under this paragraph on the price 
                        of diesel fuel.
                            ``(ii) Waiver.--If the Administrator 
                        determines that there is a significant 
                        biodiesel feedstock disruption or other market 
                        circumstances that would make the price of 
                        biodiesel fuel unreasonable, the Administrator, 
                        with the concurrence of the Secretary of Energy 
                        and the Secretary of Agriculture, shall issue 
                        an order to reduce, for a 60-day period, the 
                        quantity of biodiesel required under 
                        subparagraph (A) by an appropriate quantity 
                        that does not exceed 15 percent of the 
                        applicable annual requirement for biodiesel.
                            ``(iii) Factors.--In making determinations 
                        under this subparagraph, the Administrator 
                        shall consider--
                                    ``(I) the purposes of this Act;
                                    ``(II) the differential between the 
                                price of diesel fuel and the price of 
                                biodiesel; and
                                    ``(III) the impact the biodiesel 
                                mandate has on consumers.
                            ``(iv) Extensions.--If the Administrator 
                        determines that the feedstock disruption or 
                        circumstances described in clause (ii) is 
                        continuing beyond the 60-day period described 
                        in clause (ii) or this clause, the 
                        Administrator, with the concurrence of the 
                        Secretary of Energy and the Secretary of 
                        Agriculture, may issue an order to reduce, for 
                        an additional 60-day period, the quantity of 
                        biodiesel required under subparagraph (A) by an 
                        appropriate quantity that does not exceed an 
                        additional 15 percent of the applicable annual 
                        requirement for biodiesel.
                            ``(v) Restoration.--If the Administrator 
                        determines that the feedstock disruption or 
                        circumstances described in clause (ii) or (iv) 
                        has concluded and that it is practicable, the 
                        Administrator, with the concurrence of the 
                        Secretary of Energy and the Secretary of 
                        Agriculture, may issue an order to increase the 
                        quantity of biodiesel required under 
                        subparagraph (A) by an appropriate quantity to 
                        account for the gallons of biodiesel not used 
                        during the period a waiver or extension was in 
                        effect under this subparagraph.
                    ``(G) Preemption of state biodiesel mandates.--
                            ``(i) In general.--The standard established 
                        under subparagraph (A) shall not apply to any 
                        diesel fuel subject to a State biodiesel 
                        mandate that has been enacted as of January 1, 
                        2007.
                            ``(ii) Production and use of biodiesel and 
                        bio-based renewable diesel.--Subject to clause 
                        (iii), no State or unit of local government 
                        shall establish or continue to enforce a 
                        mandate that requires the level of production 
                        or use of biodiesel or bio-based diesel 
                        replacement to exceed the maximum level of 
                        production or use of biodiesel or bio-based 
                        diesel replacement described in any--
                                    ``(I) engine warranty; or
                                    ``(II) specification derived in 
                                accordance with the ASTM.
                            ``(iii) State and municipal vehicles.--
                        Nothing in this paragraph preempts the 
                        authority of a State or unit of local 
                        government--
                                    ``(I) to regulate the use of 
                                biodiesel in vehicles owned by the 
                                State or local government, 
                                respectively; or
                                    ``(II) to establish financial 
                                incentives to promote the use of 
                                biodiesel.
                            ``(iv) Financial incentives.--Nothing in 
                        this paragraph precludes States from 
                        establishing financial incentives to promote 
                        the voluntary use or production of 
                        biodiesel.''.
    (b) Conforming Amendments.--Section 211 of the Clean Air Act (42 
U.S.C. 7545) is amended--
            (1) in subsection (o)(1)(C)(ii)(II), by striking 
        ``biodiesel (as defined in section 312(f) of the Energy Policy 
        Act of 1992 (42 U.S.C. 13220(f))) and''; and
            (2) by redesignating the first subsection (r) (relating to 
        fuel and fuel additive importers and importation) as subsection 
        (u) and moving that subsection so as to appear at the end of 
        the section.

SEC. 4. BIODIESEL QUALITY.

    Subsection (p) of section 211 of the Clean Air Act (42 U.S.C. 7545) 
(as added by section 3(a)) is amended by adding at the end the 
following:
            ``(3) Biodiesel quality.--
                    ``(A) Quality regulations.--Not later than 180 days 
                after the date of enactment of this subsection, the 
                Administrator, in consultation with the Secretary of 
                Energy and the Secretary of Agriculture, shall 
                promulgate regulations to ensure that only high-quality 
                biodiesel that is consistent with appropriate ASTM 
                International standards for biodiesel and biodiesel 
                blends is introduced into commerce.
                    ``(B) Enforcement.--The Administrator shall 
                establish an inspection program to ensure that 
                biodiesel and biodiesel blends entering commerce meets 
                the standards established under subparagraph (A).
                    ``(C) Violations.--Regardless of whether the 
                Administrator promulgates regulations under 
                subparagraph (A), it shall be a violation of this Act 
                to produce or distribute--
                            ``(i) biodiesel or any bio-based diesel 
                        replacement that does not meet the requirements 
                        of ASTM standard D6751; or
                            ``(ii) a biodiesel blend that does not meet 
                        the equivalent ASTM standard, as determined by 
                        the Administrator.
                    ``(D) Funding.--There are authorized to be 
                appropriated to carry out this paragraph $3,000,000 for 
                each of fiscal years 2008 through 2010.''.

SEC. 5. BIODIESEL LABELING.

    Subsection (p) of section 211 of the Clean Air Act (42 U.S.C. 7545) 
(as amended by section 4) is amended by adding at the end the 
following:
            ``(4) Biodiesel labeling.--
                    ``(A) In general.--Each retail diesel fuel pump 
                shall be labeled in a manner that informs consumers of 
                the percent of biodiesel that is contained in the 
                biodiesel blend that is offered for sale, as determined 
                by the Administrator.
                    ``(B) Labeling requirements.--Not later than 180 
                days after the date of enactment of this subsection, 
                the Administrator shall promulgate biodiesel labeling 
                requirements as follows:
                            ``(i) Biodiesel blends that contain less 
                        than or equal to 5 percent biodiesel by volume 
                        and that meet ASTM D975 diesel specifications 
                        shall not require any additional labels.
                            ``(ii) Biodiesel blends that contain more 
                        than 5 percent biodiesel by volume but not more 
                        than 20 percent by volume shall be labeled 
                        `contains biodiesel in quantities between 5 
                        percent and 20 percent'.
                            ``(iii) Biodiesel blends that contain more 
                        than 20 percent biodiesel by volume shall be 
                        labeled `contains more than 20 percent 
                        biodiesel'.''.
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