II 111th CONGRESS 1st Session S. 828 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.

1.

Short title

This Act may be cited as the Renewable Fuels Pipelines Act of 2009.

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.

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. .

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.