II 111th CONGRESS 2d Session S. 3807 IN THE SENATE OF THE UNITED STATES September 20, 2010 Mr. Baucus (for himself and Mr. Tester) introduced the following bill; which was read twice and referred to the Committee on Armed Services A BILL To amend title 10, United States Code, to authorize long-term contracts for the purchase of liquid synthetic or biomass-derived aviation or aviation blend fuels for the Department of Defense, and for other purposes.

1.

Short title

This Act may be cited as the American Security and Freedom Fuels Act of 2010.

2.

Authority for long-term contracts for the purchase of certain liquid fuels for the Department of Defense

(a)

Authority

Subchapter II of chapter 173 of title 10, United States Code, is amended by adding at the end the following new section:

2922h.

Liquid fuels: contracts for procurement of synthetic or biomass-derived aviation or aviation blend fuels

(a)

Authority To contract

The Secretary of Defense may enter into one or more contracts for the procurement of fuels described in subsection (b) for the Department of Defense. (b)

Covered fuels

A fuel described in this subsection is a liquid fuel that is suitable for use as an aviation fuel or aviation fuel blend and that— (1)is domestically produced; (2)is a synthetic fuel or derived from biomass; (3)is produced in a manner that does not primarily compete with food stocks; and (4)meets the regulatory standards set forth by the Environmental Protection Agency for renewable fuels standards pursuant to section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)). (c)

Period of contract

The period of a contract entered into under subsection (a) may not exceed 20 years. (d)

Prohibition on options

A contract under subsection (a) may not include any options. (e)

Reports on contracts

Not later than three years after entering into a contract under subsection (a), the Secretary shall submit to Congress a report on the contract. The report shall include the following: (1)A description of the performance of the contract, including whether the contract is yielding savings to the Department of Defense when compared with the procurement of fuels that meet the specifications set forth in subsection (c) but are not procured under the authority in subsection (a). (2)In consultation with the Secretary of Commerce, an assessment whether the contract has stimulated the development of domestic energy infrastructure. (3)An assessment whether the expanded use of contracts such as the contract could reduce the vulnerability of the Department to disruptions in the global oil supply.

. (b)

Clerical amendment

The table of sections at the beginning of subchapter II of chapter 173 of such title is amended by adding at the end the following new item: 2922h. Liquid fuels: contracts for procurement of synthetic or biomass-derived aviation or aviation blend fuels .