[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1563 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1563

          To provide for the expansion of the biofuels market.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 30, 2013

Mr. Harkin (for himself, Mr. Franken, Mr. Johnson of South Dakota, and 
Ms. Klobuchar) introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
          To provide for the expansion of the biofuels market.

    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 ``Biofuels Market Expansion Act of 
2013''.

SEC. 2. PROHIBITION ON RESTRICTION OF INSTALLATION OF RENEWABLE FUEL 
              PUMPS.

    Section 107(a)(1) of the Petroleum Marketing Practices Act (15 
U.S.C. 2807(a)(1)) is amended by striking subparagraph (A) and 
inserting the following:
                    ``(A) which is not less than 10 percent ethanol by 
                volume; or''.

SEC. 3. 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 2015 and 2016....................       50 percent 
        Model year 2017 and each subsequent model           90 percent.
            year.
    ``(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 Act, the Secretary of Transportation shall prescribe 
regulations to carry out the amendments made by this Act.

SEC. 4. 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) Major fuel distributor.--
                            (i) In general.--The term ``major fuel 
                        distributor'' means any person that owns a 
                        refinery or directly markets the output of a 
                        refinery.
                            (ii) Exclusion.--The term ``major fuel 
                        distributor'' does not include any person that 
                        directly markets through less than 50 retail 
                        fueling stations.
                    (E) 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 for the direct 
                retail sale of ethanol fuel blends (including E-85 
                fuel), including blender pumps and storage tanks; 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) Limitation.--A major fuel distributor shall not be 
        eligible for a grant or subgrant under this subsection.
            (4) Federal share.--The Federal share of the cost of a 
        project carried out under this subsection shall be up to 50 
        percent of the total cost of the project.
            (5) Reversion.--If an eligible facility or retailer that 
        receives a grant or subgrant under this subsection does not 
        offer ethanol fuel blends for sale for at least 2 years during 
        the 4-year period beginning on the date of installation of the 
        blender pump, the eligible facility or retailer shall be 
        required to repay to the Secretary an amount determined to be 
        appropriate by the Secretary, but not more than the amount of 
        the grant provided to the eligible facility or retailer under 
        this subsection.
            (6) 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 2014;
                    (B) $100,000,000 for fiscal year 2015;
                    (C) $200,000,000 for fiscal year 2016;
                    (D) $300,000,000 for fiscal year 2017; and
                    (E) $350,000,000 for fiscal year 2018.
    (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 or directly markets the 
                                output of a refinery.
                                    ``(II) Exclusion.--The term `major 
                                fuel distributor' does not include any 
                                person that directly markets through 
                                less than 50 retail fueling stations.
                            ``(iv) Secretary.--The term `Secretary' 
                        means the Secretary of Energy, acting in 
                        consultation with the Administrator of the 
                        Environmental Protection Agency 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 
                one 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:
        2016...............................................         10 
        2018...............................................         20 
        2020...............................................         35 
        2022 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 one 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 one 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).''.

SEC. 5. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT RENEWABLE FUEL 
              PIPELINES.

    (a) Definitions.--Section 1701 of the Energy Policy Act of 2005 (42 
U.S.C. 16511) is amended by adding at the end the following:
            ``(6) Renewable fuel.--The term `renewable fuel' has the 
        meaning given the term in section 211(o)(1) of the Clean Air 
        Act (42 U.S.C. 7545(o)(1)), except that the term includes all 
        types of ethanol and biodiesel.
            ``(7) Renewable fuel pipeline.--The term `renewable fuel 
        pipeline' means a pipeline for transporting renewable fuel.''.
    (b) Amount.--Section 1702(c) of the Energy Policy Act of 2005 (42 
U.S.C. 16512(c)) is amended--
            (1) by striking ``(c) Amount.--Unless'' and inserting the 
        following:
    ``(c) Amount.--
            ``(1) In general.--Unless''; and
            (2) by adding at the end the following:
            ``(2) Renewable fuel pipelines.--A guarantee for a project 
        described in section 1703(b)(11) shall be in an amount equal to 
        80 percent of the project cost of the facility that is the 
        subject of the guarantee, as estimated at the time at which the 
        guarantee is issued.''.
    (c) Renewable Fuel Pipeline Eligibility.--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) Renewable fuel pipelines.''.
    (d) Rapid Deployment of Renewable Fuel Pipelines.--Section 1705 of 
the Energy Policy Act of 2005 (42 U.S.C. 16516) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``, or, in the case of projects described in 
                paragraph (4), September 30, 2012'' before the colon at 
                the end; and
                    (B) by adding at the end the following:
            ``(4) Installation of sufficient infrastructure to allow 
        for the cost-effective deployment of clean energy technologies 
        appropriate to each region of the United States, including the 
        deployment of renewable fuel pipelines through loan guarantees 
        in an amount equal to 80 percent of the cost.''; and
            (2) in subsection (e), by inserting ``, or, in the case of 
        projects described in subsection (a)(4), September 30, 2012'' 
        before the period at the end.
    (e) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Secretary of Energy shall promulgate such 
regulations as are necessary to carry out the amendments made by this 
section.
                                 <all>