[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 404 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 404

  To amend the Internal Revenue Code of 1986 to extend and modify the 
      credits for alcohol used as a fuel, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 24, 2011

 Mr. Fortenberry introduced the following bill; which was referred to 
 the Committee on Ways and Means, and in addition to the Committees on 
Energy and Commerce and Transportation and Infrastructure, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to extend and modify the 
      credits for alcohol used as a fuel, 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 for America's Future 
Act of 2011''.

SEC. 2. REDUCTION IN CREDIT FOR FUEL REQUIRED TO MEET RENEWABLE FUEL 
              OBLIGATION.

    (a) In General.--Subsection (d) of section 40 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(8) Alcohol required to meet renewable fuel obligation 
        not taken into account.--
                    ``(A) In general.--Alcohol used to meet the 
                renewable fuel obligation applicable to the taxpayer 
                shall not be taken into account for purposes of 
                determining a credit under this section.
                    ``(B) Renewable fuel obligation.--For purposes of 
                subparagraph (A), the term `renewable fuel obligation' 
                means the renewable fuel obligation determined under 
                section 211(o)(3) of the Clean Air Act (42 U.S.C. 
                7545(o)(3)).
                    ``(C) Use of rins.--Determinations for purposes of 
                subparagraph (A) shall be made through the use of 
                renewable identification numbers received from the 
                taxpayer by the Administrator of the Environmental 
                Protection Agency pursuant to regulations issued under 
                section 211(o) of such Act.''.
    (b) Excise Tax Credit and Payment.--
            (1) Excise tax.--Subsection (b) of section 6426 of such 
        Code, as amended by section 4 of this Act, is amended by 
        redesignating paragraph (6) as paragraph (7) and by inserting 
        after paragraph (5) the following new paragraph:
            ``(6) Alcohol required to meet renewable fuel obligation 
        not taken into account.--
                    ``(A) In general.--Alcohol used to meet the 
                renewable fuel obligation applicable to the taxpayer 
                shall not be taken into account for purposes of 
                determining a credit under this subsection.
                    ``(B) Renewable fuel obligation.--For purposes of 
                subparagraph (A), the term `renewable fuel obligation' 
                means the renewable fuel obligation determined under 
                section 211(o)(3) of the Clean Air Act (42 U.S.C. 
                7545(o)(3)).
                    ``(C) Use of rins.--Determinations for purposes of 
                subparagraph (A) shall be made through the use of 
                renewable identification numbers received from the 
                taxpayer by the Administrator of the Environmental 
                Protection Agency pursuant to regulations issued under 
                section 211(o) of such Act.''.
            (2) Payment.--Paragraph (2) of section 6427(e) of such Code 
        is amended by adding at the end the following: ``For purposes 
        of this subsection, alternative fuel shall not include any 
        alcohol used to meet the renewable fuel obligation (as defined 
        in section 6426(e)(6)) applicable to the taxpayer''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel produced or sold after December 31, 2010.

SEC. 3. EXTENSION OF INCOME TAX CREDIT FOR ALCOHOL USED AS FUEL.

    (a) In General.--Paragraph (1) of section 40(e) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``December 31, 2011'' in subparagraph (A) 
        and inserting ``December 31, 2016'', and
            (2) by striking ``January 1, 2012'' in subparagraph (B) and 
        inserting ``January 1, 2017''.
    (b) Cellulosic Biofuel.--Subparagraph (H) of section 40(b)(6) of 
such Code is amended by striking ``January 1, 2013'' and inserting 
``January 1, 2017''.
    (c) Reduced Amount for Ethanol Blenders.--Paragraph (2) of section 
40(h) of such Code is amended by striking ``2011'' both places it 
appears and inserting ``2016''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 4. EXTENSION OF EXCISE TAX CREDIT FOR ALCOHOL USED AS FUEL.

    (a) In General.--Paragraph (6) of section 6426(b) of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2011'' and 
inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 5. EXTENSION OF PAYMENT FOR ALCOHOL FUEL MIXTURE.

    (a) In General.--Subparagraph (A) of section 6427(e)(6) of the 
Internal Revenue Code of 1986 is amended by striking ``December 31, 
2011'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this subsection shall 
apply to sales and uses after December 31, 2010.

SEC. 6. EXTENSION OF ADDITIONAL DUTIES ON ETHANOL.

    Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff 
Schedule of the United States are each amended in the effective period 
column by striking ``1/1/2012'' and inserting ``1/1/2017''.

SEC. 7. 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:
``Sec. 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 Year                                                 Percentage
        Model years 2013 and 2014.......................... 50 percent 
        Model year 2015 and each subsequent model year..... 90 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 section, the Secretary of Transportation shall 
prescribe regulations to carry out the amendments made by this section.

SEC. 8. 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 2012;
                    (B) $100,000,000 for fiscal year 2013;
                    (C) $200,000,000 for fiscal year 2014;
                    (D) $300,000,000 for fiscal year 2015; and
                    (E) $350,000,000 for fiscal year 2016.
    (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 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:
        2012...............................................         10 
        2014...............................................         20 
        2016...............................................         35 
        2018 and each calendar year thereafter.............         50.
                    ``(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).''.
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