II 112th CONGRESS 1st Session S. 937 IN THE SENATE OF THE UNITED STATES May 10, 2011 Mr. Barrasso (for himself, Mr. Blunt, Mr. Manchin, Ms. Murkowski, Mr. Enzi, and Mr. Coats) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To repeal certain barriers to domestic fuel production, and for other purposes.

1.

Short title

This Act may be cited as the American Alternative Fuels Act of 2011.

2.

Findings

Congress finds that— (1)the United States needs short- and long-term policies designed— (A)to eliminate the reliance of the United States on foreign energy sources; (B)to create jobs in the United States; and (C)to harness all of the energy resources of the United States; (2)promoting the energy security of the United States can be achieved by leveraging all domestic energy resources, including— (A)traditional fossil fuels; (B)alternative energy resources; and (C)renewable energy; and (3)the United States needs to adopt policies that would foster a more sustainable domestic energy supply that would— (A)decrease risks to national security; (B)lower domestic energy prices; (C)reduce trade deficits; and (D)create jobs in the United States.

3.

Repeal of unnecessary barriers to domestic fuel production

(a)

In general

Section 526 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17142) is repealed. (b)

Conforming amendment

Section 1112 of the National Aeronautics and Space Administration Authorization Act of 2008 (42 U.S.C. 17827) is repealed.

4.

Transparency for delayed loan guarantee applications

Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by adding at the end the following: (l)

Reporting requirement

(1)

In general

If the Secretary fails to make a final decision by the date that is 270 days after the date on which the Secretary selects an application to proceed to negotiations of terms and conditions for issuance of a conditional commitment for a loan guarantee application under this title for a substitute natural gas, chemical feedstock, or liquid transportation fuel project, not later than 7 days after that date, and for every 90-day period thereafter, the Secretary shall— (A)prepare a status report for the period covered by the report; and (B)submit the status report to— (i)the Committee on Energy and Natural Resources of the Senate; and (ii)the Committee on Energy and Commerce of the House of Representatives. (2)

Contents

The status report described in paragraph (1) shall contain— (A)a description of each reason for the delay of the application; (B)the name and office of the official who, for the period covering the status report, has reviewed the application; and (C)a detailed schedule for completion of the application review. .

5.

Algae-based fuel incentives

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)

Algae-based fuel incentives

For purposes of calculating the applicable volume of renewable fuel under clauses (i) and (ii) for each calendar year, the Administrator shall consider each gallon of renewable biomass produced from algae to be equal to 3 gallons of renewable fuel if the algae-based fuel was produced using carbon dioxide that was captured in a manner that prevented the uncontrolled release of carbon dioxide into the atmosphere during a separate energy production process. .

6.

Loan guarantees

Section 1703(b) of the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by adding at the end the following: (11)Substitute natural gas production facilities, if the gas is produced— (A)from a solid feedstock through a gasification process; and (B)in a manner that captures at least 90 percent of the carbon produced through the gasification process. .

7.

Multiyear contract authority for department of defense for procurement of alternative fuels

(a)

Multiyear contracts for the procurement of alternative fuels authorized

(1)

In general

Chapter 141 of title 10, United States Code, is amended by adding at the end the following:

2410r.

Multiyear contract authority: purchase of alternative fuels

(a)

In general

The head of an agency (as defined in section 2302) may enter into contracts for a period not to exceed 20 years for the purchase of alternative fuels. (b)

Required provisions

A contract entered into under subsection (a) shall include the following provisions: (1)A statement that the obligation of the United States to make payments under the contract in any fiscal year is subject to appropriations being provided specifically for that fiscal year and specifically for alternative fuels. (2)A commitment to obligate the necessary amount for each fiscal year covered by the contract when and to the extent that funds are appropriated for that purpose for that fiscal year. (3)A statement that a commitment given under the authority of this section does not constitute an obligation of the United States.

. (2)

Clerical amendment

The table of sections of chapter 141 of title 10, United States Code, is amended by adding at the end the following: 2410r. Multiyear contract authority: purchase of alternative fuels. . (b)

Regulations

Not later than 120 days after the date of enactment of this Act, the Secretary of Defense shall issue regulations providing that the head of an agency may enter into a multiyear contract as authorized by section 2410r of title 10, United States Code (as added by subsection (a)), only if the head of the agency has determined in writing that— (1)there is a reasonable expectation that, throughout the contemplated contract period, the head of the agency will request funding for the contract at the level required to avoid contract cancellation; (2)the technical risks associated with the technologies for the production of alternative fuel under the contract are not excessive; (3)the contract will contain appropriate pricing mechanisms to minimize risk to the Federal Government from significant changes in market prices for energy; and (4)the contract will not be used by the Department of Defense to finance new facilities intended to produce fuel for consumption by the Federal Government. (c)

Limitation on use of authority

No contract may be entered into under section 2410r of title 10, United States Code (as so added), until the regulations required by subsection (b) are issued.

8.

Electric vehicle impact on electricity demand

Section 169(3) of the Clean Air Act (42 U.S.C. 7479(3)) is amended— (1)by striking (3) The term and inserting the following: (3)

Best available control technology

(A)

Definition

(i)

In general

The term ; (2)in the second sentence, by striking In no event and inserting the following: (B)

Emission limitations

(i)

In general

In no event ; (3)in the third sentence, by striking Emissions and inserting the following: (ii)

Prohibition on certain increases

Emissions ; and (4)by adding at the end the following: (C)

Additional considerations

For purposes of establishing the best available control technology for a major emitting facility that is an electric generating facility located in a region in which demand for electricity has increased significantly due to the volume of electric vehicles, the permitting authority shall take into account the extent to which the emissions of a pollutant have been reduced as a result of the increased use of electric vehicles. .