[Congressional Record Volume 153, Number 55 (Thursday, March 29, 2007)]
[Senate]
[Pages S4210-S4212]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself, Ms. Collins, and Ms. Snowe):
  S. 1073. A bill to amend the Clear Air Act to promote the use of 
fuels with low lifecycle greenhouse gas emissions, to establish a 
greenhouse gas performance standard for motor vehicle fuels, to require 
a significant decrease in greenhouse gas emissions from motor vehicles, 
and for other purposes; to the Committee on Environment and Public 
Works.
  Mrs. FEINSTEIN. Mr. President, I rise today with Senators Collins and 
Snowe to introduce legislation that will significantly reduce the 
amount of greenhouse gases emitted from our Nation's transportation 
sector.
  This bill would reduce carbon dioxide emissions from passenger 
vehicles and motor vehicle fuels by 22 percent below projected levels 
under business as usual by 2030. This reduction is equivalent to the 
removal of 662 million metric tons of carbon dioxide from the 
atmosphere or taking over 108 million cars off the road for a year. 
This would save 3.6 million barrels of oil per day by 2030.
  It would achieve these reductions by requiring a: 3 percent reduction 
in emissions from the motor vehicle fuel pool by 2015, with an 
additional 3 percent reduction every 5 years, and 30 percent reduction 
in vehicle tailpipe emissions by 2016, with additional reductions every 
5 years.
  Highway vehicles are responsible for 32 percent of annual U.S. 
emissions of carbon dioxide (CO2), the primary global-
warming gas. And, motor vehicle emissions will continue to increase as 
more and more Americans purchase vehicles and the number of miles 
driven grows.
  With more than 240 million motor vehicles on the road, producing 2 
billion metric tons of carbon dioxide emissions per year, increasing 
our use of low carbon fuels is an essential part of a climate-safe 
transportation strategy.
  So, the signs could not be clearer: It's time to sound the death-
knell for the era of gas-guzzling motor vehicles. It is time to utilize 
improved vehicle technology and to increase access to cleaner, 
renewable fuels at the pump.
  First, this bill will achieve this goal by increasing the 
availability of low carbon emitting fuels for motor vehicles.
  We must start considering fuel emissions not only in terms of 
emissions produced at the tailpipe, but also in terms of the emissions 
generated by the production and transportation of fuels. The total 
emissions of a fuel,

[[Page S4211]]

from production to end-use, are known as the ``lifecycle emissions'' of 
a fuel.
  Not all fuels are created equal in terms of emissions; in fact, not 
all fuels within a give fuel category are created equal.
  For example, ethanol produced from corn emits only about 10 to 20 
percent less greenhouse gas emissions per unit of energy delivered 
compared to petroleum-based gasoline. In contrast, ethanol produced 
from cellulosic biomass achieves an 80 to 90 percent reduction in 
greenhouse gas emissions per unit of energy.
  Electricity would also qualify as an alternative fuel under this 
bill. The lifecycle emissions of electricity produced by traditional 
coal-fired power plants will be far greater than that produced by wind 
or other zero-carbon electricity generation technologies.
  By 2009, this bill would require the Environmental Protection Agency 
(EPA) to quantify the total lifecycle emissions of all motor vehicle 
fuels. The bill would also require EPA to develop a fuel labeling 
process to provide this information to consumers at the pump.
  Armed with this information about the lifecycle emissions of 
different fuels, oil refiners and importers would be required to reduce 
the greenhouse gas emissions of their entire fuel pool by 3 percent 
below projected levels by 2015. And, every 5 years thereafter, 
emissions would be cut by an additional 3 percent.
  To help fuel providers meet the mandated emissions reductions in a 
cost-effective manner, the bill would establish a carbon-credit trading 
market.
  This would reduce emissions from motor vehicle fuels by 10 percent 
below projected levels by 2030 and would increase the supply of low-
carbon fuels such as biodiesel, E-85, hydrogen, electricity, and 
others.
  Second, the bill would achieve reductions in transportation sector 
emissions by federalizing California's landmark tailpipe emissions 
standard. California passed a landmark law in 2002 that required a 
reduction in tailpipe emissions and was the first State in the country 
to do so. This would require automakers to reduce tailpipe emissions, 
such as carbon dioxide, by 30 percent by 2016. It will also require EPA 
to tighten the reductions every 5 years.
  Combined, these provisions would achieve a 22 percent reduction in 
transportation sector emissions below projected levels by 2030.
  Additional provisions in the bill mandate: auto manufacturers to 
optimize dual-fueled vehicles to improve their fuel economy when 
running on alternative fuels, and alternative fuel vehicles, and only 
alternative fuel vehicles, come with a green fuel cap. This would alert 
consumers that these vehicles can accept other fuels besides 
traditional gasoline.
  Just as it is necessary to reduce emissions in the electricity and 
industrial sectors, it is equally necessary to reduce emissions from 
the transportation sector. This bill makes significant, yet feasible, 
strides to reduce emissions through upgrades in vehicle technology and 
the incorporation of lower lifecycle emission fuels into the motor 
vehicle fuel pool. I urge my colleagues to join me in supporting this 
bill.
  I ask unanimous consent that the text of the legislation 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. 1073

       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 ``Clean Fuels and Vehicles Act 
     of 2007''.

     SEC. 2. FUEL WITH LOW LIFECYCLE GREENHOUSE GAS EMISSIONS; 
                   GREENHOUSE GAS EMISSION REDUCTIONS.

       Title II of the Clean Air Act (42 U.S.C. 7581 et seq.) is 
     amended by adding at the end the following:

``PART D--FUEL WITH LOW LIFECYCLE GREENHOUSE GAS EMISSIONS; GREENHOUSE 
                        GAS EMISSION REDUCTIONS

     ``SEC. 251. DEFINITIONS.

       ``In this part:
       ``(1) Greenhouse gas.--The term `greenhouse gas' means--
       ``(A) carbon dioxide;
       ``(B) methane;
       ``(C) nitrous oxide;
       ``(D) hydrofluorocarbons;
       ``(E) perfluorocarbons; and
       ``(F) sulfur hexafluoride.
       ``(2) Lifecycle greenhouse gas emissions.--The term 
     `lifecycle greenhouse gas emissions' means the aggregate 
     quantity of greenhouse gases emitted per unit of fuel from 
     production to use (including feedstock production or 
     extraction and distribution).
       ``(3) Major oil company.--The term `major oil company' has 
     the meaning given the term in section 105(b) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6213(b)).
       ``(4) Motor vehicle.--The term `motor vehicle' has the 
     meaning given the term in section 216.

     ``SEC. 252. GREENHOUSE GAS EMISSION REDUCTIONS FROM FUELS 
                   AVAILABLE FOR MOTOR VEHICLES.

       ``(a) Determination Process; Fuel Emissions Baseline.--
       ``(1) In general.--Not later than January 1, 2010, the 
     Administrator shall, by regulation--
       ``(A) establish a determination process for use in 
     determining the lifecycle greenhouse gas emissions of a fuel; 
     and
       ``(B) based on the aggregate quantity and variety of fuels 
     available for motor vehicles used in the United States during 
     calendar year 2007, determine the average quantity of 
     lifecycle greenhouse gas emissions per unit of energy 
     delivered to a motor vehicle (referred to in this section as 
     the `fuel emissions baseline').
       ``(2) Considerations.--For purposes of determining the 
     lifecycle greenhouse gas emissions of a fuel under paragraph 
     (1), the Administrator shall consider--
       ``(A) greenhouse gas emissions resulting from--
       ``(i) production, extraction, distribution, transportation, 
     and end use of the fuel;
       ``(ii) issues relating to the end use efficiency of the 
     fuel;
       ``(iii) changes in land use and land cover resulting from 
     an activity described in clause (i) with respect to the fuel; 
     and
       ``(iv) net climate impacts affecting the energy and 
     agricultural sectors resulting from an activity described in 
     clause (i) with respect to the fuel; and
       ``(B) any other appropriate matters, as determined by the 
     Administrator.
       ``(3) Requirements.--The Administrator shall include in 
     regulations promulgated to carry out paragraph (1) procedures 
     by which the Administrator shall--
       ``(A) determine the lifecycle greenhouse gas emissions of a 
     fuel and the fuel emissions baseline;
       ``(B) make each determination described in subparagraph 
     (A), and information used in making the determinations, 
     available to consumers;
       ``(C) label fuels with low lifecycle greenhouse gas 
     emissions; and
       ``(D) provide information about adverse impacts of the fuel 
     on--
       ``(i) land use and land cover;
       ``(ii) water, soil, and air quality; and
       ``(iii) public health.
       ``(b) Subsequent Average Lifecycle Greenhouse Gas 
     Emissions.--Not later than June 1, 2013, and annually 
     thereafter, based on the aggregate quantity and variety of 
     fuel available for motor vehicles used in the United States 
     during the preceding calendar year, the Administrator shall 
     determine, in accordance with the regulations promulgated 
     under subsection (a), the average quantity of lifecycle 
     greenhouse gas emissions per unit of energy delivered to a 
     motor vehicle through the use of a unit of fuel for motor 
     vehicles for the preceding calendar year.
       ``(c) Required Reductions in Lifecycle Greenhouse Gas 
     Emissions.--
       ``(1) Regulations.--The Administrator shall promulgate 
     regulations to establish a credit trading program to address 
     the lifecycle greenhouse gas emissions from fuels available 
     for use in motor vehicles.
       ``(2) Required emission reductions.--The Administrator 
     shall, by regulation, require each major oil company, 
     refiner, or fuel importer that produces, sells, or introduces 
     gasoline or other fuels available for use in motor vehicles 
     into commerce in the United States to reduce the average 
     lifecycle greenhouse gas emissions per unit of energy 
     delivered to a motor vehicle through fuel to a level that 
     is--
       ``(A) for calendar year 2015, 3 percent below the fuel 
     emissions baseline; and
       ``(B) not later than every fifth calendar year thereafter, 
     3 percent below the average quantity of lifecycle greenhouse 
     gas emissions per unit of energy delivered to a vehicle 
     allowed pursuant to this section during the required fuel 
     emissions level for the preceding calendar year, as 
     determined by the Administrator under subsection (b).
       ``(3) Use of credits.--
       ``(A) In general.--For the purpose of complying with the 
     required reductions in lifecycle greenhouse gas emissions 
     under this section, each major oil company, fuel refiner, or 
     fuel importer shall demonstrate, on an annual basis, that the 
     fuel mix provided to the market by the company, refiner, or 
     importer meets the lifecycle greenhouse gas emission level 
     specified in subparagraphs (A) and (B) of paragraph (2), 
     including if necessary, by using credits previously banked or 
     purchased.
       ``(B) Credits for additional reductions.--The regulations 
     promulgated to carry out this section shall permit a provider 
     of a fuel that achieves a greater reduction in lifecycle 
     greenhouse gas emissions than is required under subparagraph 
     (A) or (B) of

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     paragraph (2) for a particular compliance period to generate 
     credits, based on--
       ``(i) the quantity of fuel provided; and
       ``(ii) the difference between--

       ``(I) the greater reduction in lifecycle greenhouse gas 
     emissions of the fuel under subparagraph (A) or (B) of 
     paragraph (2); and
       ``(II) the minimum required reduction in lifecycle 
     greenhouse gas emissions of the fuel under that subparagraph.

       ``(d) Statement of Congressional Intent.--It is the intent 
     of Congress that, through implementation of this section--
       ``(1) an incentive will be created for the use, in lieu of 
     gasoline, of fuels having lower lifecycle greenhouse gas 
     emissions; and
       ``(2) fuels with the lowest lifecycle greenhouse gas 
     emissions will continue over time--
       ``(A) to be improved;
       ``(B) to become widely-available and competitive in the 
     marketplace; and
       ``(C) to contribute to an overall reduction in greenhouse 
     gas emissions.

     ``SEC. 253. GREENHOUSE GAS EMISSION REDUCTIONS FROM 
                   AUTOMOBILES.

       ``(a) Vehicle Emissions Baseline.--Not later than January 
     1, 2009, based on the aggregate quantity and variety of new 
     automobiles sold in the United States during model year 2002 
     and the average greenhouse gas emissions from those new 
     automobiles, the Administrator shall determine the average 
     quantity of greenhouse gas emissions per vehicle mile 
     (referred to in this section as the `new vehicle emissions 
     baseline').
       ``(b) Subsequent Average Emissions From New Automobiles.--
     Not later than June 1, 2015, and annually thereafter, based 
     on the aggregate quantity and variety of new automobiles sold 
     in the United States during the preceding model year and the 
     average greenhouse gas emissions from those new automobiles 
     during the preceding model year, the Administrator shall 
     determine the average quantity of greenhouse gas emissions 
     per vehicle mile for the model year.
       ``(c) Required Reductions in Greenhouse Gas Emissions From 
     Automobiles.--
       ``(1) In general.--The Administrator shall, by regulation, 
     require each manufacturer of automobiles for sale in the 
     United States to reduce the average quantity of greenhouse 
     gas emissions per vehicle mile of the aggregate quantity and 
     variety of automobiles manufactured by the manufacturer to a 
     level that is--
       ``(A) for automobiles manufactured in model year 2016, 30 
     percent less than the new vehicle emissions baseline; and
       ``(B) not later than every fifth model year thereafter, 
     such percent as shall be specified by the Administrator that 
     is less than the average quantity of greenhouse gas emissions 
     per vehicle mile required for the model year preceding that 
     fifth model year, as determined by the Administrator under 
     subsection (b).''.

     SEC. 3. OPTIMIZED DUAL FUELED VEHICLES.

       (a) Optimized Dual Fueled Automobiles.--Section 32901(a) of 
     title 49, United States Code, is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) `alternative fueled automobile' means an automobile 
     that is--
       ``(A) a dedicated automobile;
       ``(B) a dual fueled automobile; or
       ``(C) an optimized dual fueled automobile.''; and
       (2) by adding at the end the following:
       ``(17) `optimized dual fueled automobile' means an 
     automobile that--
       ``(A) is capable of operating on alternative fuel and on 
     gasoline or diesel fuel;
       ``(B) can satisfactorily operate throughout a Federal 
     testing procedure exclusively on alternative fuel, when 
     fueled with the maximum alternative fuel capacity, as 
     determined by the Administrator of the Environmental 
     Protection Agency; and
       ``(C) when operated on alternative fuel, achieves an 
     average fuel economy that is not less than 20 percent 
     greater, on a gallon of gasoline-equivalent energy basis, 
     than the fuel economy of the same automobile operated on 
     gasoline or diesel fuel.''.
       (b) Fuel Economy Calculation for Optimized Dual Fuel 
     Automobiles.--Section 32905 of title 49, United States Code, 
     is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting the 
     subparagraphs appropriately;
       (B) by striking ``title, for any'' and inserting ``title--
       ``(1) for any'';
       (C) in paragraph (1)(B) (as designated and redesignated by 
     subparagraphs (A) and (B)), by striking ``fuel.'' and 
     inserting ``fuel; and''; and
       (D) by adding at the end the following:
       ``(2) for any model of dual fueled automobile manufactured 
     by a manufacturer in any of model years 2011 through 2015, 
     the Administrator of the Environmental Protection Agency 
     shall measure the fuel economy for that model by dividing 1.0 
     by the sum obtained by adding--
       ``(A) for optimized dual fueled automobiles, the sum 
     obtained by adding--
       ``(i) .5 divided by the fuel economy measured under section 
     32904(c), when operating the model on gasoline and diesel 
     fuel; and
       ``(ii) .5 divided by the fuel economy measured under 
     subsection (a), when operating the model on alternative fuel; 
     and
       ``(B) for dual fueled automobiles other than optimized dual 
     fueled automobiles, values that reflect the actual use of 
     gasoline and diesel fuel relative to alternative fuel in the 
     models based on a determination made by the Administrator, 
     taking into account alternative fuel sales and total number 
     of models of dual fueled vehicles other than optimized dual 
     fueled automobiles.''; and
       (2) by striking subsection (f).
       (c) Year Modification.--Section 32906(a) of title 49, 
     United States Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``(1)(A) For'' and inserting ``(1) For'';
       (B) by striking ``2010'' and inserting ``2015''; and
       (C) by striking subparagraph (B); and
       (2) in paragraph (2), by striking ``described--'' and all 
     that follows through subparagraph (B) and inserting 
     ``described in paragraph (1) is more than 1.2 miles per 
     gallon, the limitation in that paragraph shall apply.''.
       (d) Increasing Consumer Awareness of Alternative Fuel 
     Vehicles.--Section 32908 of title 49, United States Code, is 
     amended by adding at the end the following:
       ``(g) Increasing Consumer Awareness of Flexible Fuel 
     Vehicles.--The Secretary of Transportation shall promulgate 
     regulations that--
       ``(1) require each manufacturer that manufactures 
     alternative fuel vehicles that run on fuels with low 
     lifecycle greenhouse gas emissions to install a green-colored 
     fuel cap on each alternative fuel vehicle to distinguish the 
     vehicle from vehicles that do not use low lifecycle 
     greenhouse gas-emitting alternative fuels; and
       ``(2) prohibit a manufacturer from installing a green-
     colored fuel cap on an automobile manufactured by the 
     manufacturer that does not run on a low lifecycle greenhouse 
     gas-emitting alternative fuel.''.
                                 ______