I 111th CONGRESS 1st Session H. R. 1787 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.

1.

Short title

This Act may be cited as the Low Carbon Fuel Standard Act of 2009.

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:

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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