[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1868 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1868

  To require the inclusion of coal-derived fuel at certain volumes in 
 aviation fuel, motor vehicle fuel, home heating oil, and boiler fuel.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 2011

   Mrs. Capito (for herself, Mr. Critz, Mr. Bucshon, Mr. Terry, Mr. 
   Rahall, and Mr. Holden) introduced the following bill; which was 
            referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
  To require the inclusion of coal-derived fuel at certain volumes in 
 aviation fuel, motor vehicle fuel, home heating oil, and boiler fuel.

    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 ``Clean Coal-Derived Fuels for Energy 
Security Act of 2011''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Clean coal-derived fuel.--
                    (A) In general.--The term ``clean coal-derived 
                fuel'' means aviation fuel, motor vehicle fuel, home 
                heating oil, or boiler fuel that is--
                            (i) substantially derived from the coal 
                        resources of the United States; and
                            (ii) refined or otherwise processed at a 
                        facility located in the United States that 
                        captures up to 100 percent of the carbon 
                        dioxide emissions that would otherwise be 
                        released at the facility.
                    (B) Inclusions.--The term ``clean coal-derived 
                fuel'' may include any fuel derived from any other 
                resource that is extracted, grown, produced, or 
                recovered in the United States.
            (2) Covered fuel.--The term ``covered fuel'' means--
                    (A) aviation fuel;
                    (B) motor vehicle fuel;
                    (C) home heating oil; and
                    (D) boiler fuel.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (4) Small refinery.--The term ``small refinery'' means a 
        refinery for which the average aggregate daily throughput for a 
        calendar year (as determined by dividing the aggregate 
        throughput for the calendar year by the number of days in the 
        calendar year) does not exceed 75,000 barrels.

SEC. 3. CLEAN COAL-DERIVED FUEL PROGRAM.

    (a) Program.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the President shall promulgate 
        regulations to ensure that covered fuel sold or introduced into 
        commerce in the United States (except in noncontiguous States 
        or territories), on an annual average basis, contains the 
        applicable volume of clean coal-derived fuel determined in 
        accordance with paragraph (4).
            (2) Provisions of regulations.--The regulations promulgated 
        under paragraph (1)--
                    (A) shall contain compliance provisions applicable 
                to refineries, blenders, distributors, and importers, 
                as appropriate, to ensure that--
                            (i) the requirements of this subsection are 
                        met; and
                            (ii) clean coal-derived fuels produced from 
                        facilities for the purpose of compliance with 
                        this Act result in lifecycle greenhouse gas 
                        emissions that are not greater than gasoline; 
                        and
                    (B) shall not--
                            (i) restrict geographic areas in the 
                        contiguous United States in which clean coal-
                        derived fuel may be used; or
                            (ii) impose any per-gallon obligation for 
                        the use of clean coal-derived fuel.
            (3) Relationship to other regulations.--Regulations 
        promulgated under this subsection shall, to the extent 
        practicable, incorporate the program structure and compliance 
        and reporting requirements established under the final 
        regulations promulgated to implement the renewable fuel program 
        under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)).
            (4) Applicable volume.--
                    (A) Calendar years 2017 through 2024.--For the 
                purpose of this subsection, the applicable volume for 
                any of calendar years 2017 through 2024 shall be 
                determined in accordance with the following table:

                                                   Applicable volume of
                                                clean coal-derived fuel
Calendar year:                                (in billions of gallons):
        2017...................................................   0.75 
        2018...................................................    1.5 
        2019...................................................   2.25 
        2020...................................................   3.00 
        2021...................................................   3.75 
        2022...................................................    4.5 
        2023...................................................   5.25 
        2024...................................................    6.0.
                    (B) Calendar year 2025 and thereafter.--Subject to 
                subparagraph (C), for the purposes of this subsection, 
                the applicable volume for calendar year 2025 and each 
                calendar year thereafter shall be determined by the 
                President, in coordination with the Secretary and the 
                Administrator of the Environmental Protection Agency, 
                based on a review of the implementation of the program 
                during calendar years 2017 through 2024, including a 
                review of--
                            (i) the impact of clean coal-derived fuels 
                        on the energy security of the United States;
                            (ii) the expected annual rate of future 
                        production of clean coal-derived fuels; and
                            (iii) the impact of the use of clean coal-
                        derived fuels on other factors, including job 
                        creation, rural economic development, and the 
                        environment.
                    (C) Minimum applicable volume.--For the purpose of 
                this subsection, the minimum applicable volume for 
                calendar year 2025 and each calendar year thereafter 
                shall be equal to the product obtained by multiplying--
                            (i) the number of gallons of covered fuel 
                        that the President estimates will be sold or 
                        introduced into commerce in the calendar year; 
                        and
                            (ii) the ratio that--
                                    (I) 6,000,000,000 gallons of clean 
                                coal-derived fuel; bears to
                                    (II) the number of gallons of 
                                covered fuel sold or introduced into 
                                commerce in calendar year 2024.
    (b) Applicable Percentages.--
            (1) Provision of estimate of volumes of certain fuel 
        sales.--Not later than October 31 of each of calendar years 
        2017 through 2023, the Administrator of the Energy Information 
        Administration shall provide to the President an estimate, with 
        respect to the following calendar year, of the volumes of 
        covered fuel projected to be sold or introduced into commerce 
        in the United States.
            (2) Determination of applicable percentages.--
                    (A) In general.--Not later than November 30 of each 
                of calendar years 2017 through 2024, based on the 
                estimate provided under paragraph (1), the President 
                shall determine and publish in the Federal Register, 
                with respect to the following calendar year, the clean 
                coal-derived fuel obligation that ensures that the 
                requirements of subsection (a) are met.
                    (B) Required elements.--The clean coal-derived fuel 
                obligation determined for a calendar year under 
                subparagraph (A) shall--
                            (i) be applicable to refineries, blenders, 
                        and importers, as appropriate;
                            (ii) be expressed in terms of a volume 
                        percentage of covered fuel sold or introduced 
                        into commerce in the United States; and
                            (iii) subject to paragraph (3)(A), consist 
                        of a single applicable percentage that applies 
                        to all categories of persons specified in 
                        clause (i).
            (3) Adjustments.--In determining the applicable percentage 
        for a calendar year, the President shall make adjustments--
                    (A) to prevent the imposition of redundant 
                obligations on any person specified in paragraph 
                (2)(B)(i); and
                    (B) to account for the use of clean coal-derived 
                fuel during the previous calendar year by small 
                refineries that are exempt under subsection (f).
    (c) Volume Conversion Factors for Clean Coal-Derived Fuels Based on 
Energy Content.--
            (1) In general.--For the purpose of subsection (a), the 
        President shall assign values to specific types of clean coal-
        derived fuel for the purpose of satisfying the fuel volume 
        requirements of subsection (a)(4) in accordance with this 
        subsection.
            (2) Energy content relative to applicable covered fuel.--
        For each type of clean coal-derived fuel, 1 gallon of the clean 
        coal-derived fuel shall be considered to be the equivalent of 1 
        gallon of the applicable covered fuel multiplied by the ratio 
        that--
                    (A) the number of British thermal units of energy 
                produced by the combustion of 1 gallon of the clean 
                coal-derived fuel (as measured under conditions 
                determined by the Secretary); bears to
                    (B) the number of British thermal units of energy 
                produced by the combustion of 1 gallon of the 
                applicable covered fuel (as measured under conditions 
                determined by the Secretary to be comparable to 
                conditions described in subparagraph (A)).
    (d) Credit Program.--
            (1) In general.--The President, in consultation with the 
        Secretary and in accordance with the clean coal-derived fuel 
        requirements of this section, may implement a program for the 
        sale and trade of clean coal-derived fuel production credits.
            (2) Market transparency.--In carrying out the credit 
        program under this subsection, the President shall facilitate 
        price transparency in markets for the sale and trade of 
        credits, with due regard for the public interest, the integrity 
        of those markets, fair competition, and the protection of 
        consumers.
    (e) Waivers.--
            (1) In general.--The President, in consultation with the 
        Secretary and the Administrator of the Environmental Protection 
        Agency, may waive the requirements of subsection (a) in whole 
        or in part on petition by 1 or more States by reducing the 
        national quantity of clean coal-derived fuel required under 
        subsection (a), based on a determination by the President 
        (after public notice and opportunity for comment), that--
                    (A) implementation of the requirement would 
                severely harm the economy or environment of a State, a 
                region, or the United States; or
                    (B) extreme and unusual circumstances exist that 
                prevent distribution of an adequate supply of 
                domestically produced clean coal-derived fuel to 
                consumers in the United States.
            (2) Petitions for waivers.--The President, in consultation 
        with the Secretary and the Administrator of the Environmental 
        Protection Agency, shall approve or disapprove a State petition 
        for a waiver of the requirements of subsection (a) within 90 
        days after the date on which the petition is received by the 
        President.
            (3) Termination of waivers.--A waiver granted under 
        paragraph (1) shall terminate after 1 year, but may be renewed 
        by the President after consultation with the Secretary and the 
        Administrator of the Environmental Protection Agency.
    (f) Small Refineries.--
            (1) Temporary exemption.--
                    (A) In general.--The requirements of subsection (a) 
                shall not apply to small refineries until calendar year 
                2020.
                    (B) Extension of exemption.--
                            (i) Study by secretary.--Not later than 
                        December 31, 2015, the Secretary shall submit 
                        to the President and Congress a report 
                        describing the results of a study to determine 
                        whether compliance with the requirements of 
                        subsection (a) would impose a disproportionate 
                        economic hardship on small refineries.
                            (ii) Extension of exemption.--In the case 
                        of a small refinery that the Secretary 
                        determines under clause (i) would be subject to 
                        a disproportionate economic hardship if 
                        required to comply with subsection (a), the 
                        President shall extend the exemption under 
                        subparagraph (A) for the small refinery for a 
                        period of not less than 2 additional years.
            (2) Petitions based on disproportionate economic 
        hardship.--
                    (A) Extension of exemption.--A small refinery may 
                at any time petition the President for an extension of 
                the exemption under paragraph (1) for the reason of 
                disproportionate economic hardship.
                    (B) Evaluation of petitions.--In evaluating a 
                petition under subparagraph (A), the President, in 
                consultation with the Secretary, shall consider the 
                findings of the study under paragraph (1)(B) and other 
                economic factors.
                    (C) Deadline for action on petitions.--The 
                President shall act on any petition submitted by a 
                small refinery for a hardship exemption not later than 
                90 days after the date of receipt of the petition.
            (3) Opt-in for small refineries.--A small refinery shall be 
        subject to the requirements of subsection (a) if the small 
        refinery notifies the President that the small refinery waives 
        the exemption under paragraph (1).
    (g) Penalties and Enforcement.--
            (1) Civil penalties.--
                    (A) In general.--Any person that violates a 
                regulation promulgated under subsection (a), or that 
                fails to furnish any information required under such a 
                regulation, shall be liable to the United States for a 
                civil penalty of not more than the total of--
                            (i) $25,000 for each day of the violation; 
                        and
                            (ii) the amount of economic benefit or 
                        savings received by the person resulting from 
                        the violation, as determined by the President.
                    (B) Collection.--Civil penalties under subparagraph 
                (A) shall be assessed by, and collected in a civil 
                action brought by, the Secretary or such other officer 
                of the United States as is designated by the President.
            (2) Injunctive authority.--
                    (A) In general.--The district courts of the United 
                States shall have jurisdiction to--
                            (i) restrain a violation of a regulation 
                        promulgated under subsection (a);
                            (ii) award other appropriate relief; and
                            (iii) compel the furnishing of information 
                        required under the regulation.
                    (B) Actions.--An action to restrain such violations 
                and compel such actions shall be brought by and in the 
                name of the United States.
                    (C) Subpoenas.--In any action to restrain a 
                violation of a regulation promulgated under subsection 
                (a), a subpoena for a witness who is required to attend 
                a district court in any district may apply in any other 
                district.
    (h) Effective Date.--Except as otherwise specifically provided in 
this section, this section takes effect on January 1, 2017.
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