[Congressional Record Volume 155, Number 122 (Thursday, August 6, 2009)]
[Senate]
[Pages S9023-S9025]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN:
  S. 1627. A bill to improve choices for consumers for vehicles and 
fuel, and for other purposes; to the Committee on Commerce, Science, 
and Transportation.
  Mr. HARKIN. Mr. President, our national energy situation continues to 
deteriorate. Volatile petroleum and gasoline prices threaten our 
economy, and our oil imports are responsible for an incredibly large 
wealth transfer

[[Page S9024]]

from America to global oil producers. Our most immediate and visible 
energy challenge is our dependence on petroleum-derived fuels for 
transportation, but we also face the need to reduce the greenhouse 
gases that result principally from fossil fuel production and use. 
Because our global warming challenge is fundamentally linked to our 
energy systems, their resolution has a common strategy--to transform 
our energy sector to one far less dependent on fossil fuels and far 
more reliant on energy efficiency and domestic renewable energy 
supplies. This energy transformation strategy also represents a crucial 
economic recovery and development opportunity because millions of jobs 
will be created as we carry out this strategy.
  Americans recognize the magnitude and the urgency of our energy 
challenges. They rightfully expect us to adopt policies to move this 
energy transition forward. In particular, we need to reduce dependence 
on oil in transportation, and we have broad agreement on two 
fundamental approaches--increasing efficiency of vehicles and 
increasing use of alternative fuels. We mandated more efficient 
vehicles by passing the Energy Independence and Security Act of 2007, 
EISA. That bill also mandates a brisk expansion of biofuels production 
under the renewable fuels standard. However, we also need to expand the 
number of vehicles that can use these alternative fuels and the number 
of filling stations selling these biofuels.
  Today I am joined by my esteemed colleague, Senator Lugar of Indiana, 
in introducing the Consumer Fuels and Vehicles Choice Act of 2009. This 
bill will expand the number of alternative fuel automobiles at a rapid 
pace while not imposing undue production cost challenges for our auto 
manufacturers. It calls for 50 percent of all automobiles manufactured 
for sale in the United States to be dual-fuel automobiles by 2011. It 
increases that to 90 percent of all automobiles manufactured for U.S. 
sales by 2013. These requirements are reasonable because it is known 
that gasoline automobiles require relatively minor changes in fuel 
system designs to be able to use blends of gasoline and ethanol which 
qualify them for dual fuel designation.
  This bill also requires that major fuel distributors install blender 
pumps in increasing numbers of the retail fueling stations carrying 
their brand name. These blender pumps will be capable of dispensing 
ethanol and gasoline blends ranging from 0 percent ethanol to 85 
percent ethanol. This flexibility in blend choice is expected to be 
attractive to consumers, including those who want to use regular 
gasoline for non-automotive engines. This bill also authorizes grants 
of up to 50 percent of the cost for installing blender pumps and tanks 
and other infrastructure needed for selling ethanol fuel blends.
  Mr. President, the requirements established and assistance authorized 
in this bill will ensure that the number of dual fuel automobiles and 
the availability of ethanol fuel blends are expanding apace with the 
expansion of ethanol production and use in our national fuel supply 
over the next 15 years and beyond. Taken together, our increasing 
production of biofuels, our incentives for installation of alternative 
fuel infrastructure, and this automobile requirement will provide 
Americans the option of choosing clean, domestically produced fuels for 
their personal transportation needs in the future. These steps 
represent critical components in the transition of our energy systems 
away from fossil and imported fuels toward the benefits of greater 
reliance on sustainable domestic fuel sources.
  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 urge their support for this bill and its rapid 
enactment.
  Mr. President, 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. 1627

       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 ``Consumer Fuels and Vehicle 
     Choice Act of 2009''.

     SEC. 2. 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 2011 and 2012..............  50 percent
  Model year 2013 and each subsequent      90 percent
   model 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. 3. 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) 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--
       (i) for the direct retail sale of ethanol fuel blends 
     (including E-85 fuel), including blender pumps and storage 
     tanks; and
       (ii) to directly market ethanol fuel blends (including E-85 
     fuel) to gas retailers, including inline blending equipment, 
     pumps, storage tanks, and loadout equipment; 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) Federal share.--The Federal share of the cost of a 
     project carried out under this subsection shall be 50 percent 
     of the total cost of the project.
       (4) 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 2010;
       (B) $100,000,000 for fiscal year 2011;
       (C) $200,000,000 for fiscal year 2012;
       (D) $300,000,000 for fiscal year 2013; and
       (E) $350,000,000 for fiscal year 2014.
       (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 and directly markets the 
     output of a refinery.
       ``(II) Exclusion.--The term `major fuel distributor' does 
     not include any person that owns 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 1 or more blender pumps 
     that dispense E-85 fuel and ethanol fuel blends (including 
     any other equipment necessary, such

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     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 statio  
Calendar year:                                                 Percent:
  2011..............................................................10 
  2013..............................................................20 
  2015..............................................................35 
  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 fuel distributor described in that 
     subparagraph installs or otherwise makes available 1 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 1 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).''.
                                 ______