[Congressional Record Volume 153, Number 1 (Thursday, January 4, 2007)]
[Senate]
[Pages S61-S63]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN (for himself, Mr. Lugar, Mr. Dorgan, Mr. Biden, and 
        Mr. Obama):
  S. 23. A bill to promote renewable fuel and energy security of the 
United States, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.
  Mr. HARKIN. Mr. President, over the past several years, our national 
energy security has deteriorated rapidly. Petroleum and natural gas 
prices have gone up and appear to be staying up. Almost daily, we hear 
projections of increases in electricity prices around the country. The 
environmental impacts of energy use, especially from autos and power 
plants, are still a major health concern. The evidence of climate 
change is absolutely clear and very ominous, especially in the 
disappearance of glaciers, the break up of polar ice sheets and the 
increasing intensity of storms. We know that combustion of fossil fuels 
is the primary contributor of the anthropogenic greenhouse gases 
emissions that drive this global warming. Despite these negative 
consequences, our dependence on petroleum is rising steadily, and we 
are importing over 60 percent of that petroleum from foreign sources, 
many of whom are politically unstable or unfriendly to the United 
States. In short, we need to initiate a major transition of our energy 
sector, to one that is far more efficient, is much less reliant on 
fossil fuels and imported oil, and is utilizing vastly more 
domestically produced renewable energy.
  We have seen waxing and waning concerns about our national energy 
economy now for over 30 years. Many of us have believed all along that 
we should be doing more to promote energy efficiency and to accelerate 
the development and use of clean, domestic renewable energy, but during 
most of that time, cheap energy supplies have lulled us into relatively 
minimal actions. Over the past three years, however, there has been an 
increasingly acute awareness of the dire nature of our overall energy 
situation. It is now clear that our energy situation is a serious 
threat not only to our economy but to our national security. We can no 
longer postpone action.
  Today I am joined by my esteemed colleagues, Senator Lugar of 
Indiana, Senator Dorgan of North Dakota, Senator Biden of Delaware, and 
Senator

[[Page S62]]

Obama of Illinois, in introducing the Biofuels Security Act of 2007. 
This bill directly addresses one of the most critical pieces of a sound 
national energy transition policy. It charts a clear path forward for 
significantly increasing our national use of renewable fuels over the 
next 24 years, reaching a total of 30 billion gallons per year by 2020, 
and 60 billion gallons per year by 2030. That latter figure represents 
about one-third of our nation's current annual fuel use for highway 
transportation. The production of the two most common forms of 
biofuels, ethanol and biodiesel, is expanding rapidly. We have reason 
to believe that this provision will provide strong impetus to 
increasing biofuels' production and use because it is an extension of 
the renewable fuels standard that I promoted in the Energy Policy Act 
of 2005. That standard mandates using a total of 7.5 billion gallons of 
renewable fuels by 2012, and already we are on a path to exceed that 
requirement by 2008. Thus, we can be very optimistic about the success 
of setting these longer term and more aggressive targets.
  This bill also will ensure that the vehicles to use these renewable 
fuels are readily available by requiring auto manufacturers over time 
to produce and sell increasing numbers of dual-fuel vehicles--that is, 
vehicles that can be fueled by gasoline or gasoline/ethanol blends. 
Because the turnover of vehicles on the highway takes many years, our 
bill requires the fraction of dual-fuel vehicles to increase from 10 
percent in 2008 up to 100 percent in 2017 and beyond. In order to 
assure availability of alternative fuels, our bill requires 
installation of increasing numbers of E-85 pumps by major oil companies 
at fueling stations that they own or license under their brand. These 
pumps will dispense E-85, a blend of 85 percent ethanol and 15 percent 
gasoline, which is a very popular renewable fuel because of its high 
ethanol content. The bill will require 50 percent of such owned and 
licensed stations to have pumps dispensing E-85 fuel by 2017. In 
addition, the bill includes a clause to ensure geographic distribution 
of such E-85 marketing stations.
  Today I urge my Senate colleagues to join us in taking action to 
boost the transition to a cleaner, more resilient, and more secure 
energy economy. I request support for this bill and its rapid 
enactment.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 23

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Biofuels 
     Security Act of 2007''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                        TITLE I--RENEWABLE FUELS

Sec. 101. Renewable fuel program.
Sec. 102. Installation of E-85 fuel pumps by major oil companies at 
              owned stations and branded stations.
Sec. 103. Minimum Federal fleet requirement.
Sec. 104. Application of Gasohol Competition Act of 1980.

                   TITLE II--DUAL FUELED AUTOMOBILES

Sec. 201. Requirement to manufacture dual fueled automobiles.
Sec. 202. Manufacturing incentives for dual fueled automobiles.

                        TITLE I--RENEWABLE FUELS

     SEC. 101. RENEWABLE FUEL PROGRAM.

       Section 211(o)(2) of the Clean Air Act (42 U.S.C. 
     7545(o)(2)) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) Applicable volume.--
       ``(i) In general.--For the purpose of subparagraph (A), the 
     applicable volume for calendar year 2010 and each calendar 
     year thereafter shall be determined, by rule, by the 
     Administrator, in consultation with the Secretary of 
     Agriculture and the Secretary of Energy, in a manner that 
     ensures that--

       ``(I) the requirements described in clause (ii) for 
     specified calendar years are met; and
       ``(II) the applicable volume for each calendar year not 
     specified in clause (ii) is determined on an annual basis.

       ``(ii) Requirements.--The requirements referred to in 
     clause (i) are--

       ``(I) for calendar year 2010, at least 10,000,000,000 
     gallons of renewable fuel;
       ``(II) for calendar year 2020, at least 30,000,000,000 
     gallons of renewable fuel; and
       ``(III) for calendar year 2030, at least 60,000,000,000 
     gallons of renewable fuel.''.

     SEC. 102. INSTALLATION OF E-85 FUEL PUMPS BY MAJOR OIL 
                   COMPANIES 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:
       ``(11) Installation of e-85 fuel pumps by major oil 
     companies 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 
     derived from ethanol produced in the United States.
       ``(ii) Major oil company.--The term `major oil company' 
     means any person that, individually or together with any 
     other person with respect to which the person has an 
     affiliate relationship or significant ownership interest, has 
     not less than 4,500 retail station outlets according to the 
     latest publication of the Petroleum News Annual Factbook.
       ``(iii) 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 oil company that sells 
     or introduces gasoline into commerce in the United States 
     through wholly-owned stations or branded stations installs or 
     otherwise makes available 1 or more pumps that dispense E-85 
     fuel (including any other equipment necessary, such as 
     including tanks, to ensure that the pumps function properly) 
     at not less than the applicable percentage of the wholly-
     owned stations and the branded stations of the major oil 
     company specified in subparagraph (C).
       ``(C) Applicable percentage.--For the purpose of 
     subparagraph (B), the applicable percentage of the wholly-
     owned stations and the branded stations shall be determined 
     in accordance with the following table:

 ``Applicable percentage of wholly-owned stations and branded stations 
Calendar year:                                              (percent): 
  2008...........................................................5 ....

  2009..........................................................10 ....

  2010..........................................................15 ....

  2011..........................................................20 ....

  2012..........................................................25 ....

  2013..........................................................30 ....

  2014..........................................................35 ....

  2015..........................................................40 ....

  2016..........................................................45 ....

  2017 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 oil company described in subparagraph 
     (B) installs or otherwise makes available 1 or more pumps 
     that dispense E-85 fuel at not less than a minimum percentage 
     (specified in the regulations) of the wholly-owned stations 
     and the branded stations of the major oil company in each 
     State.
       ``(ii) Requirement.--In specifying the minimum percentage 
     under clause (i), the Secretary shall ensure that each major 
     oil company installs or otherwise makes available 1 or more 
     pumps described in that clause in each State in which the 
     major oil company operates.
       ``(E) Financial responsibility.--In promulgating 
     regulations under subparagraph (B), the Secretary shall 
     ensure that each major oil company described in that 
     subparagraph assumes full financial responsibility for the 
     costs of installing or otherwise making available the pumps 
     described in that subparagraph and any other equipment 
     necessary (including tanks) to ensure that the pumps function 
     properly.
       ``(F) Production credits for exceeding e-85 fuel pumps 
     installation requirement.--
       ``(i) Earning and period for applying credits.--If the 
     percentage of the wholly-owned stations and the branded 
     stations of a major oil company at which the major oil 
     company installs E-85 fuel pumps in a particular calendar 
     year exceeds the percentage required under subparagraph (C), 
     the major oil company earns 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 
     oil company that has earned credits under clause (i) may sell 
     credits to another major oil company to enable the purchaser 
     to meet the requirement under subparagraph (C).
       ``(iii) Exception.--A major oil company may not use credits 
     purchased under clause (ii) to fulfill the geographic 
     distribution requirement in subparagraph (D).''.

     SEC. 103. MINIMUM FEDERAL FLEET REQUIREMENT.

       Section 303(b)(1) of the Energy Policy Act of 1992 (42 
     U.S.C. 13212(b)(1)) is amended--
       (1) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (D), by striking ``fiscal year 1999 and 
     thereafter,'' and inserting ``each of fiscal years 1999 
     through 2007; and''; and
       (3) by inserting after subparagraph (D) the following:
       ``(E) 100 percent in fiscal year 2008 and thereafter,''.

     SEC. 104. APPLICATION OF GASOHOL COMPETITION ACT OF 1980.

       Section 26 of the Clayton Act (15 U.S.C. 26a) is amended--

[[Page S63]]

       (1) by redesignating subsection (c) as subsection (d);
       (2) by inserting after subsection (b) the following:
       ``(c) For purposes of subsection (a), restricting the right 
     of a franchisee to install on the premises of that franchisee 
     a renewable fuel pump, such as one that dispenses E85, shall 
     be considered an unlawful restriction.''; and
       (3) in subsection (d) (as redesignated by paragraph (1))--
       (A) by striking ``section,'' and inserting the following: 
     ``section--
       ``(1) the term'';
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(2) the term `gasohol' includes any blend of ethanol and 
     gasoline such as E-85.''.

                   TITLE II--DUAL FUELED AUTOMOBILES

     SEC. 201. REQUIREMENT TO MANUFACTURE DUAL FUELED AUTOMOBILES.

       (a) Requirement.--
       (1) 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

       ``(a) Requirement.--Each manufacturer of new automobiles 
     that are capable of operating on gasoline or diesel fuel 
     shall ensure that the percentage of such automobiles, 
     manufactured in any model year after model year 2007 and 
     distributed in commerce for sale in the United States, which 
     are dual fueled automobiles is equal to not less than the 
     applicable percentage set forth in the following table:

           The percentage of dual fueled automobiles manufactured shall
``For each of the following model years:             be not less than: 
  2008..........................................................10 ....

  2009..........................................................20 ....

  2010..........................................................30 ....

  2011..........................................................40 ....

  2012..........................................................50 ....

  2013..........................................................60 ....

  2014..........................................................70 ....

  2015..........................................................80 ....

  2016..........................................................90 ....

  2017 and beyond..............................................100.....

       ``(b) Production Credits for Exceeding Flexible Fuel 
     Automobile Production Requirement.--
       ``(1) Earning and period for applying credits.--If the 
     number of dual fueled automobiles manufactured by a 
     manufacturer in a particular model year exceeds the number 
     required under subsection (a), the manufacturer earns credits 
     under this section, which may be applied to any of the 3 
     consecutive model years immediately after the model year for 
     which the credits are earned.
       ``(2) Trading credits.--A manufacturer that has earned 
     credits under paragraph (1) may sell credits to another 
     manufacturer to enable the purchaser to meet the requirement 
     under subsection (a).''.
       (2) Technical 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.''.
       (b) Activities to Promote the Use of Certain Alternative 
     Fuels.--The Secretary of Transportation shall carry out 
     activities to promote the use of fuel mixtures containing 
     gasoline or diesel fuel and 1 or more alternative fuels, 
     including a mixture containing at least 85 percent of 
     methanol, denatured ethanol, and other alcohols by volume 
     with gasoline or other fuels, to power automobiles in the 
     United States.

     SEC. 202. MANUFACTURING INCENTIVES FOR DUAL FUELED 
                   AUTOMOBILES.

       Section 32905(b) of title 49, United States Code, is 
     amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (2) by inserting ``(1)'' before ``Except'';
       (3) by striking ``model years 1993-2010'' and inserting 
     ``model year 1993 through the first model year beginning not 
     less than 18 months after the date of enactment of the 
     Biofuels Security Act of 2007''; and
       (4) by adding at the end the following:
       ``(2) Except as provided in paragraph (5), subsection (d), 
     or section 32904(a)(2), the Administrator shall measure the 
     fuel economy for each model of dual fueled automobiles 
     manufactured by a manufacturer in the first model year 
     beginning not less than 30 months after the date of enactment 
     of the Biofuels Security Act of 2007 by dividing 1.0 by the 
     sum of--
       ``(A) 0.7 divided by the fuel economy measured under 
     section 32904(c) when operating the model on gasoline or 
     diesel fuel; and
       ``(B) 0.3 divided by the fuel economy measured under 
     subsection (a) when operating the model on alternative fuel.
       ``(3) Except as provided in paragraph (5), subsection (d), 
     or section 32904(a)(2), the Administrator shall measure the 
     fuel economy for each model of dual fueled automobiles 
     manufactured by a manufacturer in the first model year 
     beginning not less than 42 months after the date of enactment 
     of the Biofuels Security Act of 2007 by dividing 1.0 by the 
     sum of--
       ``(A) 0.9 divided by the fuel economy measured under 
     section 32904(c) when operating the model on gasoline or 
     diesel fuel; and
       ``(B) 0.1 divided by the fuel economy measured under 
     subsection (a) when operating the model on alternative fuel.
       ``(4) Except as provided in subsection (d) or section 
     32904(a)(2), the Administrator shall measure the fuel economy 
     for each model of dual fueled automobiles manufactured by a 
     manufacturer in each model year beginning not less than 54 
     months after the date of enactment of the Biofuels Security 
     Act of 2007 in accordance with section 32904(c).
       ``(5) Notwithstanding paragraphs (2) through (4), the fuel 
     economy for all dual fueled automobiles manufactured to 
     comply with the requirements under section 32902A(a), 
     including automobiles for which dual fueled automobile 
     credits have been used or traded under section 32902A(b), 
     shall be measured in accordance with section 32904(c).''.
                                 ______