[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 828 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 828

 To amend the Energy Policy Act of 2005 to provide loan guarantees for 
projects to construct renewable fuel pipelines, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 3 (legislative day, April 2), 2009

  Mr. Harkin (for himself, Mr. Thune, and Mr. Johnson) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To amend the Energy Policy Act of 2005 to provide loan guarantees for 
projects to construct renewable fuel pipelines, and for other purposes.

    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 ``Renewable Fuels Pipelines Act of 
2009''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) creating the appropriate infrastructure to move 
        renewable fuels is a necessary energy and transportation 
        objective for the United States;
            (2) as of the date of enactment of this Act, 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 in 2009 to deliver large 
        volumes of liquid fuels;
            (4) as of the date of enactment of this Act, renewable 
        fuels are transported by truck, barge, and rail, and the volume 
        requirements of the Energy Independence and Security Act of 
        2007 (42 U.S.C. 17001 et seq.), and the amendments made by that 
        Act, will require an expansion of the renewable fuels 
        infrastructure;
            (5) the transportation of renewable fuels through a 
        pipeline will facilitate the meeting of the volume requirements 
        of the Energy Independence and Security Act of 2007 (42 U.S.C. 
        17001 et seq.) and the amendments made by that Act; and
            (6) 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 those fuels.

SEC. 3. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT RENEWABLE FUEL 
              PIPELINES.

    (a) Definitions.--Section 1701 of the Energy Policy Act of 2005 (42 
U.S.C. 16511) is amended by adding at the end the following:
            ``(6) Renewable fuel.--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)), as in effect on January 1, 2009, 
        except that the term includes ethanol and biodiesel.
            ``(7) Renewable fuel pipeline.--The term `renewable fuel 
        pipeline' means a common carrier pipeline for transporting 
        renewable fuel in accordance with this title.''.
    (b) Specific Appropriation or Contribution.--Section 1702(b) of the 
Energy Policy Act of 2005 (42 U.S.C. 16512(b)) is amended by striking 
``No'' and inserting ``Except with respect to a project described in 
section 1703(f), no''.
    (c) Amount.--Section 1702(c) of the Energy Policy Act of 2005 (42 
U.S.C. 16512(c)) is amended--
            (1) by striking ``(c) Amount.--Unless'' and inserting the 
        following:
    ``(c) Amount.--
            ``(1) In general.--Unless''; and
            (2) by adding at the end the following:
            ``(2) Renewable fuel pipelines.--With respect to a project 
        described in section 1703(f)--
                    ``(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 1 guarantee 
                for the project, to the extent that the sum of all 
                guarantees for the project does not exceed an amount 
                equal to 90 percent of the project cost of the 
                renewable fuel pipeline that is the subject of the 
                guarantees, as estimated any time after the original 
                guarantee is issued.''.
    (d) Eligible Projects.--Section 1703 of the Energy Policy Act of 
2005 (42 U.S.C. 16513) is amended by adding at the end the following:
    ``(f) Renewable Fuel Pipelines.--
            ``(1) In general.--The Secretary may make guarantees under 
        this title for projects to construct renewable fuel pipelines 
        without regard to any limitation imposed by this section other 
        than a limitation imposed by this subsection.
            ``(2) Guarantee determinations.--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 to 
                construct a renewable fuel pipeline.
                    ``(F) The history and experience working with 
                renewable fuel of the entity carrying out the proposed 
                project to construct a renewable fuel pipeline.
                    ``(G) The ability of the entity carrying out the 
                proposed project to construct a renewable fuel pipeline 
                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 construct a renewable fuel pipeline 
                to complete such proposed project in a timely manner.
                    ``(I) The ability of the entity carrying out the 
                proposed project to construct a renewable fuel pipeline 
                to secure property rights-of-way.
                    ``(J) Other criteria the Secretary determines 
                appropriate for consideration.
            ``(3) Loan guarantee for preliminary stage.--
                    ``(A) In general.--The Secretary--
                            ``(i) shall evaluate a project to assemble 
                        a renewable fuel pipeline under this title as a 
                        complete project; but
                            ``(ii) as a result of the size and nature 
                        of the project, the Secretary may make a 
                        guarantee under this title for an initial loan 
                        to assemble the renewable fuel pipeline at a 
                        preliminary stage in the loan approval process 
                        for the complete project.
                    ``(B) Amount.--The amount of a loan that is 
                guaranteed at the preliminary stage of a renewable fuel 
                pipeline project under this paragraph--
                            ``(i) shall not exceed 2 percent of the 
                        total amount of loan guarantees made for the 
                        complete project; and
                            ``(ii) shall be incorporated into the total 
                        amount of loan guarantees made for the complete 
                        project.
                    ``(C) Required information.--To be eligible to 
                obtain a loan guarantee at the preliminary stage of a 
                renewable fuel pipeline project under this paragraph, 
                the applicant shall provide to the Secretary--
                            ``(i) a route description for the project, 
                        including a centerline map of the proposed 
                        pipeline route subject to field verification 
                        and right-of-way acquisition (with a margin of 
                        error of 10 miles);
                            ``(ii) a construction cost estimate and 
                        schedule for completion of the project;
                            ``(iii) an environmental review of the 
                        impact of the project on sensitive areas, 
                        including likely mitigation strategies and a 
                        plan for conducting the necessary environmental 
                        impact statements; and
                            ``(iv) a business plan that includes--
                                    ``(I) a market assessment;
                                    ``(II) an economic analysis; and
                                    ``(III) an analysis of any required 
                                pipeline connections to biorefineries, 
                                terminal locations, and other terminal 
                                connections.
                    ``(D) Supporting information.--In making a loan 
                guarantee at the preliminary stage of a renewable fuel 
                pipeline project under this paragraph, the Secretary 
                shall consider whether an applicant provides to the 
                Secretary--
                            ``(i) a comprehensive project plan that 
                        includes a full work plan;
                            ``(ii) a full engineering summary;
                            ``(iii) a detailed assessment of the 
                        ability of the applicant to complete the 
                        project in a timely manner;
                            ``(iv) a right of way acquisition plan;
                            ``(v) appropriate environmental studies; 
                        and
                            ``(vi) a plan for acquiring necessary 
                        permits.
            ``(4) Eminent domain.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary may provide to the owner of a renewable fuel 
                pipeline under this title the same rights of eminent 
                domain that the Federal Energy Regulatory Commission is 
                authorized to provide to a natural gas company under 
                section 7(h) of the Natural Gas Act (15 U.S.C. 
                717f(h)).
                    ``(B) Certificate of public convenience and 
                necessity.--An owner of a renewable fuel pipeline under 
                this title shall not be required to hold a certificate 
                of public convenience and necessity, or any comparable 
                certificate, to exercise the rights of eminent domain 
                under this title.
            ``(5) Renewable fuel pipeline ratemaking methodology.--
        Consistent with the ratemaking methodology used for a natural 
        gas company under the Natural Gas Act (15 U.S.C. 717 et seq.), 
        the Federal Energy Regulatory Commission shall have 
        jurisdiction over the ratemaking methodology used for renewable 
        fuel transported by pipeline.''.
    (e) Authorization of Appropriations.--Section 1704 of the Energy 
Policy Act of 2005 (42 U.S.C. 16514) is amended by adding at the end 
the following:
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as are necessary to provide up to $5,000,000,000 
in loan guarantees under this title for projects described in section 
1703(f).''.
    (f) Temporary Program for Rapid Deployment of Renewable Energy and 
Electric Power Transmission Projects.--Section 1705(a) of the Energy 
Policy Act of 2005 (42 U.S.C. 16516(a)) is amended by adding at the end 
the following:
            ``(4) Renewable fuel pipelines.''.

SEC. 4. FINAL RULE.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Energy shall--
            (1) 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 (22 U.S.C. 16511 et seq.) in accordance with the 
        amendments made by this Act; or
            (2) modify rules and regulations applicable as of the date 
        of enactment of this Act to the guarantee program under that 
        title in accordance with the amendments made by this Act.
                                 <all>