II 111th CONGRESS 1st Session S. 1627 IN THE SENATE OF THE UNITED STATES August 6, 2009 Mr. Harkin introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To improve choices for consumers for vehicles and fuel, and for other purposes.

1.

Short title

This Act may be cited as the Consumer Fuels and Vehicle Choice Act of 2009.

2.

Ensuring the availability of dual fueled automobiles and light duty trucks

(a)

In general

Chapter 329 of title 49, United States Code, is amended by inserting after section 32902 the following:

32902A.

Requirement to manufacture dual fueled automobiles and light duty trucks

(a)

In general

For each model year listed in the following table, each manufacturer shall ensure that the percentage of automobiles and light duty trucks manufactured by the manufacturer for sale in the United States that are dual fueled automobiles and light duty trucks is not less than the percentage set forth for that model year in the following table: Model YearPercentage Model years 2011 and 201250 percent Model year 2013 and each subsequent model year90 percent. (b)

Exception

Subsection (a) shall not apply to automobiles or light duty trucks that operate only on electricity.

. (b)

Clerical amendment

The table of sections for chapter 329 of title 49, United States Code, is amended by inserting after the item relating to section 32902 the following: 32902A. Requirement to manufacture dual fueled automobiles and light duty trucks. . (c)

Rulemaking

Not later than 1 year after the date of the enactment of this Act, the Secretary of Transportation shall prescribe regulations to carry out the amendments made by this Act.

3.

Blender pump promotion

(a)

Blender Pump grant program

(1)

Definitions

In this subsection: (A)

Blender pump

The term blender pump means an automotive fuel dispensing pump capable of dispensing at least 3 different blends of gasoline and ethanol, as selected by the pump operator, including blends ranging from 0 percent ethanol to 85 percent denatured ethanol, as determined by the Secretary. (B)

E–85 fuel

The term E–85 fuel means a blend of gasoline approximately 85 percent of the content of which is ethanol. (C)

Ethanol fuel blend

The term ethanol fuel blend means a blend of gasoline and ethanol, with a minimum of 0 percent and maximum of 85 percent of the content of which is denatured ethanol. (D)

Secretary

The term Secretary means the Secretary of Energy. (2)

Grants

The Secretary shall make grants under this subsection to eligible facilities (as determined by the Secretary) to pay the Federal share of— (A)installing blender pump fuel infrastructure, including infrastructure necessary— (i)for the direct retail sale of ethanol fuel blends (including E–85 fuel), including blender pumps and storage tanks; and (ii)to directly market ethanol fuel blends (including E–85 fuel) to gas retailers, including inline blending equipment, pumps, storage tanks, and loadout equipment; and (B)providing subgrants to direct retailers of ethanol fuel blends (including E–85 fuel) for the purpose of installing fuel infrastructure for the direct retail sale of ethanol fuel blends (including E–85 fuel), including blender pumps and storage tanks. (3)

Federal share

The Federal share of the cost of a project carried out under this subsection shall be 50 percent of the total cost of the project. (4)

Authorization of appropriations

There are authorized to be appropriated to the Secretary to carry out this subsection, to remain available until expended— (A)$50,000,000 for fiscal year 2010; (B)$100,000,000 for fiscal year 2011; (C)$200,000,000 for fiscal year 2012; (D)$300,000,000 for fiscal year 2013; and (E)$350,000,000 for fiscal year 2014. (b)

Installation of blender pumps by major fuel distributors at owned stations and branded stations

Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended by adding at the end the following: (13)

Installation of blender pumps by major fuel distributors at owned stations and branded stations

(A)

Definitions

In this paragraph: (i)

E–85 fuel

The term E–85 fuel means a blend of gasoline approximately 85 percent of the content of which is ethanol. (ii)

Ethanol fuel blend

The term ethanol fuel blend means a blend of gasoline and ethanol, with a minimum of 0 percent and maximum of 85 percent of the content of which is denatured ethanol. (iii)

Major fuel distributor

(I)

In general

The term major fuel distributor means any person that owns a refinery and directly markets the output of a refinery. (II)

Exclusion

The term major fuel distributor does not include any person that owns less than 50 retail fueling stations. (iv)

Secretary

The term Secretary means the Secretary of Energy, acting in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Agriculture. (B)

Regulations

The Secretary shall promulgate regulations to ensure that each major fuel distributor that sells or introduces gasoline into commerce in the United States through majority-owned stations or branded stations installs or otherwise makes available 1 or more blender pumps that dispense E–85 fuel and ethanol fuel blends (including any other equipment necessary, such as tanks, to ensure that the pumps function properly) for a period of not less than 5 years at not less than the applicable percentage of the majority-owned stations and the branded stations of the major fuel distributor specified in subparagraph (C). (C)

Applicable percentage

For the purpose of subparagraph (B), the applicable percentage of the majority-owned stations and the branded stations shall be determined in accordance with the following table: Applicable percentage of majority-owned stations and branded stations Calendar year:Percent: 201110 201320 201535 2017 and each calendar year thereafter50. (D)

Geographic distribution

(i)

In general

Subject to clause (ii), in promulgating regulations under subparagraph (B), the Secretary shall ensure that each major fuel distributor described in that subparagraph installs or otherwise makes available 1 or more blender pumps that dispense E–85 fuel and ethanol fuel blends at not less than a minimum percentage (specified in the regulations) of the majority-owned stations and the branded stations of the major fuel distributors in each State. (ii)

Requirement

In specifying the minimum percentage under clause (i), the Secretary shall ensure that each major fuel distributor installs or otherwise makes available 1 or more blender pumps described in that clause in each State in which the major fuel distributor operates. (E)

Financial responsibility

In promulgating regulations under subparagraph (B), the Secretary shall ensure that each major fuel distributor described in that subparagraph assumes full financial responsibility for the costs of installing or otherwise making available the blender pumps described in that subparagraph and any other equipment necessary (including tanks) to ensure that the pumps function properly. (F)

Production credits for exceeding blender pumps installation requirement

(i)

Earning and period for applying credits

If the percentage of the majority-owned stations and the branded stations of a major fuel distributor at which the major fuel distributor installs blender pumps in a particular calendar year exceeds the percentage required under subparagraph (C), the major fuel distributor shall earn credits under this paragraph, which may be applied to any of the 3 consecutive calendar years immediately after the calendar year for which the credits are earned. (ii)

Trading credits

Subject to clause (iii), a major fuel distributor that has earned credits under clause (i) may sell the credits to another major fuel distributor to enable the purchaser to meet the requirement under subparagraph (C). (iii)

Exception

A major fuel distributor may not use credits purchased under clause (ii) to fulfill the geographic distribution requirement in subparagraph (D). .