II 112th CONGRESS 1st Session S. 212 IN THE SENATE OF THE UNITED STATES January 27, 2011 Mr. Baucus (for himself and Mr. Tester) introduced the following bill; which was read twice and referred to the Committee on Armed Services A BILL To amend title 10, United States Code, to authorize long-term contracts for the procurement of certain liquid transportation fuels for the Department of Defense.

1.

Short title

This Act may be cited as the Freedom Fuels Act of 2011.

2.

Authority for long-term contracts for procurement of certain liquid transportation fuels for the Department of Defense

(a)

Authority

Subchapter II of chapter 173 of title 10, United States Code, is amended by adding at the end the following new section:

2922h.

Liquid fuels: contracts for procurement of certain transportation fuels

(a)

Authority To contract

The Secretary of Defense may enter into one or more contracts for the procurement of fuels described in subsection (b) for the Department of Defense. (b)

Covered fuels

A fuel described in this subsection is a liquid transportation fuel, including jet fuel, that— (1)meets the requirements of section 526 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17142); (2)uses a feedstock that is produced within a State; and (3)is refined, manufactured, or produced in a State. (c)

Period of contract

The period of a contract entered into under subsection (a) may not exceed 10 years. (d)

Prohibition on options

A contract under subsection (a) may not include any options that would extend the overall period of the contract beyond 10 years. (e)

Reports on contracts

Not later than three years after entering into a contract under subsection (a), the Secretary of Defense shall submit to Congress a report on the contract. The report shall include the following: (1)A description of the performance of the contract, including an assessment whether the contract is yielding savings to the Department when compared with the procurement of fuels that meet the requirements referred to in subsection (b) but are not procured under the authority in subsection (a). (2)In consultation with the Secretary of Energy, an assessment whether the contract has stimulated the development of domestic energy infrastructure, and an assessment whether lengthening the maximum authorized period of contract in subsection (c) would further stimulate the development of domestic energy infrastructure. (3)An assessment whether the expanded use of contracts as authorized by subsection (a) have reduced, or can reduce, the vulnerability of the Department to disruptions in the global oil supply, and an assessment whether lengthening the maximum authorized period of contract in subsection (c), could further reduce the vulnerability of the Department to such disruptions. (f)

State defined

In this section, the term State— (1)means each of the several States; and (2)includes any land under the jurisdiction of an Indian tribe located in any of the several States.

. (b)

Clerical amendment

The table of sections at the beginning of subchapter II of chapter 173 of such title is amended by adding at the end the following new item: 2922h. Liquid fuels: contracts for procurement of certain transportation fuels. .