[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1787 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1787

     To amend the Clean Air Act regarding transportation fuels and 
              establishment of a low carbon fuel standard.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 30, 2009

  Mr. Inslee introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
     To amend the Clean Air Act regarding transportation fuels and 
              establishment of a low carbon fuel standard.

    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 ``Low Carbon Fuel Standard Act of 
2009''.

SEC. 2. LOW CARBON FUEL STANDARD.

    At the end of title II of the Clean Air Act (42 U.S.C. 7521 et 
seq.) is amended by adding at the end the following:

``SEC. 841. LOW CARBON FUEL STANDARD.

    ``(a) Definitions.--For purposes of this section:
            ``(1) Fuel emission baseline.--The term `fuel emission 
        baseline' means the average lifecycle greenhouse gas emissions 
        per unit of energy, as determined by the Administrator, of all 
        transportation fuels sold or introduced into commerce in any of 
        the 50 States or the District of Columbia in calendar year 
        2005.
            ``(2) Transportation fuel.--The term `transportation fuel' 
        means fuel for use in motor vehicles, motor vehicle engines, 
        nonroad vehicles, nonroad engines, and aircraft. The 
        Administrator may, at his discretion, include fuel for use in 
        ocean-going vessels and adjust the fuel emission baseline as 
        appropriate to reflect the inclusion of such fuel.
            ``(3) Transportation fuel provider.--The term 
        `transportation fuel provider' includes any individual or 
        entity that produces, refines, blends, or imports any 
        transportation fuel.
    ``(b) Regulations.--
            ``(1) Standard.--Not later than 3 years after enactment of 
        this section, the Administrator shall promulgate regulations 
        under section 211(c) and this section that--
                    ``(A) determine the lifecycle greenhouse gas 
                emissions of all transportation fuels;
                    ``(B) determine the fuel emission baseline;
                    ``(C) apply to refineries, blenders, and importers, 
                as appropriate, and to such other transportation fuel 
                providers as determined by the Administrator;
                    ``(D) ensure that, for each year from 2014 through 
                2022, the annual average lifecycle greenhouse gas 
                emissions, per unit of energy as determined by the 
                Administrator, of transportation fuel, excluding 
                renewable fuel used to meet the obligations of section 
                211(o), sold or introduced into commerce by such 
                transportation fuel providers in any of the 50 States 
                or the District of Columbia, does not exceed the fuel 
                emission baseline; and
                    ``(E) ensure that, for 2023 and each year 
                thereafter, such transportation fuel providers reduce 
                the annual average lifecycle greenhouse gas emissions, 
                per unit of energy as determined by the Administrator, 
                for transportation fuel that is sold or introduced into 
                commerce in any of the 50 States or the District of 
                Columbia, to the maximum extent practicable, taking 
                into consideration cost, energy, and other 
                environmental factors, and that--
                            ``(i) for calendar year 2023 and later, the 
                        annual average lifecycle greenhouse gas 
                        emissions is at least 5 percent below the fuel 
                        emission baseline; and
                            ``(ii) for calendar year 2030 and later, 
                        the annual average lifecycle greenhouse gas 
                        emissions is at least 10 percent below the fuel 
                        emission baseline.
            ``(2) Review.--The Administrator shall from time to time, 
        but no less than every 5 years beginning in 2020, review and 
        revise as appropriate the annual average lifecycle greenhouse 
        gas emission requirements of the regulations issued under this 
        subsection.
            ``(3) Provisions.--The regulations issued under this 
        subsection--
                    ``(A) shall contain compliance provisions 
                applicable to transportation fuel providers and other 
                persons, as appropriate, to ensure that the 
                requirements of this subsection are met;
                    ``(B) shall not impose any per-gallon obligation 
                regarding the amount of lifecycle greenhouse gas 
                emissions per unit of energy as determined by the 
                Administrator; and
                    ``(C) shall set the lifecycle greenhouse gas 
                emissions of biofuels derived from biomass other than 
                renewable biomass at a level no higher than the fuel 
                emission baseline.
            ``(4) Election to participate.--
                    ``(A) Participation.--For any transportation fuel 
                provider which the Administrator has not yet determined 
                to be subject to the regulations under this subsection, 
                and for any provider of a non-transportation fuel, the 
                Administrator, at his discretion, may allow the fuel 
                provider to elect to participate in the program under 
                this subsection, subject to requirements established by 
                the regulation.
                    ``(B) Regulatory provisions.--Regulations 
                implementing this paragraph shall include--
                            ``(i) provisions for tracking of the fuel 
                        used for transportation purposes separately 
                        from fuel used for other purposes; and
                            ``(ii) any other provisions determined 
                        appropriate by the Administrator to carry out 
                        this paragraph.
    ``(c) Credits.--
            ``(1) In general.--The regulations under subsection (b) 
        shall permit transportation fuel providers to generate credits 
        for achieving, during a calendar year, greater reductions for 
        the fuel produced or imported by the fuel provider than are 
        required by such regulations. The Administrator shall determine 
        the appropriate amount of credits and appropriate conditions, 
        if any, on the duration, trading, and use of credits. The 
        Administrator shall, with appropriate conditions, allow the use 
        of credits or renewable identification numbers generated under 
        section 211(o).
            ``(2) Electricity.--The Administrator may, at his 
        discretion, issue regulations providing for--
                    ``(A) the generation of credits for electricity 
                used as a transportation fuel and generated by a source 
                other than the vehicle; and
                    ``(B) the assignment of those credits to the 
                manufacturers or importers of such vehicles or to other 
                persons as deemed appropriate by the Administrator.
            ``(3) Compliance.--Each transportation fuel provider 
        subject to the regulations promulgated under this section shall 
        demonstrate compliance, including, as necessary, through the 
        use of credits generated, banked or purchased.
            ``(4) Inability to generate or purchase sufficient 
        credits.--A transportation fuel provider that is unable to 
        generate or purchase sufficient credits to meet the 
        requirements of the regulations under subsection (b) may carry 
        the compliance deficit forward, subject to the condition that 
        the fuel provider, for the calendar year following the year for 
        which the deficit is created--
                    ``(A) achieves compliance; and
                    ``(B) generates or purchases additional credits to 
                offset the deficit from the preceding calendar year.
    ``(d) Waivers.--The Administrator, in consultation with the 
Secretary of Agriculture and the Secretary of Energy, may waive the 
requirements of the regulations under subsection (b) in whole or in 
part on petition by one or more States, by any person subject to the 
requirements of this section, or by the Administrator on his own motion 
by revising the average lifecycle greenhouse gas emissions reduction 
required through regulations under subsection (b) based on a 
determination by the Administrator, after public notice and opportunity 
for comment, that--
            ``(1) implementation of the requirement would severely harm 
        the economy or environment of a State, a region, or the United 
        States; or
            ``(2) there is an inadequate domestic supply of fuels to 
        meet the requirements of this section.
    ``(e) Environmental and Resource Conservation Impacts.--Not later 
than 2 years after the promulgation of regulations under subsection 
(b), the Administrator shall complete a study to determine the 
environmental and resource conservation impacts of the requirements of 
such regulations, including impacts on air and water quality.
    ``(f) Energy Security and Leakage.--Not later than 18 months after 
the promulgation of regulations under subsection (b), the Administrator 
shall complete a study to determine the effect of the requirements of 
such regulations on energy security. The study shall also assess the 
potential shifting of fuel feedstocks and fuel products internationally 
as a result of such requirements and shall determine the environmental 
and energy security implications of such leakage.
    ``(g) Transition.--Section 211(o) shall not apply to fuel sold or 
introduced into commerce after December 31, 2022. Notwithstanding the 
preceding sentence, the definitions in section 211(o) shall continue to 
apply except as otherwise noted.''.
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