II 112th CONGRESS 1st Session S. 1085 IN THE SENATE OF THE UNITED STATES May 26, 2011 Mr. Inhofe (for himself and Ms. Snowe) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To amend the Clean Air Act to define next generation biofuel, and to allow States the option of not participating in the corn ethanol portions of the renewable fuel standard due to conflicts with agricultural, economic, energy, or environmental goals.

1.

Next generation biofuel

(a)

Definitions

Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)) is amended— (1)by redesignating subparagraphs (E), (F), (G), and (H) as subparagraphs (H), (E), (F), (G), respectively, and moving subparagraph (H) (as so redesignated) to appear before subparagraph (I); and (2)in subparagraph (H) (as redesignated by paragraph (1)), by striking Cellulosic biofuel.— and all that follows through biomass and inserting Next generation biofuel.—The term next generation biofuel means renewable fuel that is derived from any cellulose, hemicellulose, lignin, or algae that is derived from renewable biomass or nonethanol renewable fuel that is derived from renewable biomass. (b)

Standard

Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended— (1)in paragraph (2)— (A)in subparagraph (A)(i), in the second sentence, by striking cellulosic and inserting next generation; and (B)in subparagraph (B)— (i)in clause (i)(III)— (I)in the subclause heading, by striking Cellulosic and inserting Next generation; (II)by striking cellulosic and inserting next generation; and (III)in the heading of the right column, by striking cellulosic and inserting next generation; (ii)in clause (ii)(III), by striking cellulosic and inserting next generation; and (iii)in clause (iv)— (I)in the clause heading, by striking cellulosic and inserting next generation; and (II)by striking cellulosic and inserting next generation; (2)in paragraphs (3)(A), (4)(A), and (4)(B), by striking cellulosic each place it appears and inserting next generation; and (3)in paragraph (7)(D)— (A)in the subparagraph heading, by striking Cellulosic and inserting next generation; and (B)by striking cellulosic each place it appears and inserting next generation.

2.

State option of non-participation in renewable fuel standard

Section 211(o)(2)(B) of the Clean Air Act (42 U.S.C. 7545(o)(2)(B)) is amended by adding at the end the following: (vi)

Election of non-participation by State government

(I)

In general

For purposes of subparagraph (A), the applicable volume of renewable fuel as determined under this subparagraph shall be adjusted in accordance with this clause. (II)

Requirements

On passage by a State legislature and signature by the Governor of the State of a law that elects to not participate in the applicable volume of renewable fuel in accordance with this clause, the Administrator shall allow a State to not participate in the applicable volume of renewable fuel determined under subclause (I) of clause (i), other than the applicable volumes of renewable fuel required under subclauses (II), (III), and (IV) of that clause. (III)

Reduction

On the election of a State under subclause (II), the Administrator shall reduce the applicable volume of renewable fuel determined under clause (i)(I) by the percentage that reflects the national gasoline consumption of the non-participating State that is attributable to that State. (IV)

Credits to hold fuel sales harmless

On the election of a State under subclause (II), the Administrator shall provide for the generation of credits for all gasoline (regardless of whether the gasoline is blended) provided through a fuel terminal in the State to be calculated as though the gasoline were blended with the maximum allowable ethanol content of gasoline allowed in that State to apply toward the applicable volume of renewable fuel determined under clause (i)(I). .