1.This Act may be cited as the
Renewable Fuel Pipelines Act of
2009
.
2.Congress finds the following:
(1)Creating the
appropriate infrastructure to move renewable fuels is a necessary energy and
transportation objective for the United States.
(2)Currently more
than 70 percent of the gasoline supply of the United States is delivered to
local terminals through pipelines.
(3)Pipelines are the
most cost-effective, efficient, and safe transportation mode in use today to
deliver large volumes of liquid fuels.
(4)Renewable fuels
are currently transported by truck, barge, and rail, and the volume
requirements of the Energy Independence and Security Act of 2007 may overwhelm
the renewable fuels infrastructure, a problem that would be alleviated by the
transportation of renewable fuels through pipelines.
(5)The production and
use of renewable fuels is supported by Federal policy and a corresponding
Federal policy is necessary to support the construction of an appropriate
infrastructure to transport such fuels.
3.Loan guarantees for
projects to construct renewable fuel pipelines
(a)Section 1701 of the Energy Policy Act of
2005 (42 U.S.C. 16511) is amended by adding at the end the following:
(6)The term renewable
fuel has the meaning given the term in section 211(o)(1) of the Clean
Air Act (42 U.S.C. 7545(o)(1)), except that the term shall include all ethanol
and biodiesel.
(7)The term renewable fuel pipeline means a
common carrier pipeline for transporting renewable
fuel.
.
(b)
(1)Specific
appropriation or contributionSubsection (b) of section 1702 of
the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended—
(A)by redesignating
paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and by
moving such subparagraphs 2 ems to the right;
(B)by striking
(b) Specific
Appropriation or Contribution.—No guarantee
and
inserting the following:
(b)Specific
appropriation or contribution
(1)No
guarantee
;
and
(C)by adding at the
end the following:
(2)The Secretary may
waive the application of paragraph (1) with respect to a guarantee for a
project described in section
1703(f)(1).
.
(2)Subsection (c) of such section is
amended—
(A)by striking
(c) Amount.—Unless
and inserting the
following:
(c)
(1)Unless
;
and
(B)by adding at the
end the following:
(2)With respect to a
project described in section 1703(f)(1)—
(A)a guarantee by the
Secretary shall not exceed an amount equal to 90 percent of the project cost of
the renewable fuel pipeline that is the subject of the guarantee, as estimated
at the time at which the guarantee is issued; and
(B)the Secretary may
make more than one guarantee for such project, to the extent that the sum of
all guarantees for such project does not exceed an amount equal to 90 percent
of the project cost of the renewable fuel pipeline that is the subject of such
guarantees, as estimated any time after the original guarantee is
issued.
.
(c)Section 1703 of the Energy Policy Act of 2005 (42 U.S.C.
16513) is amended by adding at the end the following:
(f)
(1)The Secretary may make guarantees under this title for
projects to construct renewable fuel pipelines without regard to any limitation
under this section other than a limitation under this subsection.
(2)In determining whether to make a guarantee for a
project described in paragraph (1), the Secretary shall consider the
following:
(A)The volume of renewable fuel to be moved by
the renewable fuel pipeline.
(B)The size of the
markets to be served by the renewable fuel pipeline.
(C)The existence of
sufficient storage to facilitate access to the markets to be served by the
renewable fuel pipeline.
(D)The proximity of
the renewable fuel pipeline to renewable fuel production facilities.
(E)The investment in
terminal infrastructure of the entity carrying out the proposed project.
(F)The history and experience working with
renewable fuel of the entity carrying out the proposed project.
(G)The ability of the entity carrying out the
proposed project to ensure and maintain the quality of the renewable fuel
through the terminal system of the entity and through the dedicated pipeline
system.
(H)The ability of the entity carrying out the
proposed project to complete such proposed project in a timely manner.
(I)The ability of the entity carrying out the
proposed project to secure property rights-of-way.
(J)Other criteria the
Secretary determines appropriate for consideration.
(3)When any entity in the carrying out of a project
described in paragraph (1) for which a guarantee is made under this title
cannot acquire by contract, or is unable to agree with the owner of property to
the compensation to be paid for, the necessary right-of-way to construct,
operate, and maintain a pipeline or pipelines for the transportation of
renewable fuel, and the necessary land or other property, in addition to
right-of-way, for the location of pump stations, pressure apparatus, or other
facilities or equipment necessary to the proper operation of such pipeline or
pipelines, it may acquire the same by the exercise of the right of eminent
domain in the district court of the United States for the district in which
such property may be located, or in the State courts, if such exercise is first
determined by the Secretary to be necessary or desirable in the public
interest. The practice and procedure in any action or proceeding for that
purpose in the district court of the United States shall conform as nearly as
may be with the practice and procedure in a similar action or proceeding in the
courts of the State where the property is situated. The United States district
courts shall only have jurisdiction of cases when the amount claimed by the
owner of the property to be condemned exceeds
$3,000.
.
4.Not later than 90 days
after the date of the enactment of this Act, the Secretary of Energy shall
publish in the Federal Register a final rule for carrying out a guarantee
program for the construction of renewable fuel pipelines under title XVII of
the Energy Policy Act of 2005 in accordance with the amendments made by this
Act or shall modify rules and regulations currently applicable to the guarantee
program under such title in accordance with the amendments made by this
Act.
5.Grant program for
preparation of projects to construct renewable fuel pipelines
(a)The Secretary may
provide grants for projects described in section 1703(f)(1) of the Energy
Policy Act of 2005, as added by section 3(c) of this Act, to assist in carrying
out permit acquisition, planning, and other preparatory activities for such
projects in advance of participation in the guarantee program under title XVII
of the Energy Policy Act of 2005.
(b)No impact on
eligibility for a guaranteeIn determining whether to make a guarantee
for a project under title XVII of the Energy Policy Act of 2005, the Secretary
shall not take into consideration whether a grant was provided for such project
under this section.
(c)Impact on
guarantee amountIn the case
of a project for which a grant is provided under this section and a loan
guarantee is made under title XVII of the Energy Policy Act of 2005, the sum
with respect to such project of grants provided under this section and amounts
guaranteed under title XVII of the Energy Policy Act of 2005 may not exceed 90
percent of the project cost of such project as estimated at the time at which a
guarantee is issued.
(d)In this section, the term Secretary means
the Secretary of Energy.
(e)Authorization of
appropriationsThere is
authorized to be appropriated to the Secretary to carry out this section
$50,000,000, to remain available until expended.