[Congressional Record Volume 157, Number 10 (Tuesday, January 25, 2011)]
[Senate]
[Pages S239-S241]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN (for himself, Mr. Johnson of South Dakota, Ms. 
        Klobuchar, and Mr. Franken):
  S. 187. A bill to provide for the expansion of the biofuels market; 
to the Committee on Energy and Natural Resources.
  Mr. HARKIN. Mr. President, I rise today to discuss the great 
importance of expanding the production and availability of biofuels, 
and the significant impact that biofuels continue to have on reducing 
our overall consumption of petroleum in the United States.
  Our national energy situation continues to deteriorate. Because we 
import 60 percent of the petroleum we consume, our economy faces a 
constant threat from volatile petroleum prices as well as significant 
amounts of American wealth being transferred to foreign producers. 
Because more than two-thirds of our petroleum supply is consumed by our 
transportation sector, we can improve this situation by expanding the 
production and use of alternatives to petroleum-derived fuels. Domestic 
biofuels have been by far our most successful alternative. Biofuels 
already displace close to 10 percent of our gasoline supplies, and they 
have the potential to make significantly larger contributions in the 
years ahead. Expanding domestic biofuels production and use also will 
support economic recovery by creating jobs in the areas of feedstock 
production and delivery, fuels processing in bio refineries, and 
biofuels marketing.
  The American people understand the need to reduce our dependence on 
foreign petroleum supplies. Congress has expressed 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 mandates a brisk expansion of biofuels production under 
the Renewable Fuels Standard. However, biofuels currently are facing 
critical market barriers. The most common form of biofuel, ethanol, can 
only be used as a 10 percent blend with gasoline in most highway 
vehicles. To enable much larger production and use levels, we need to 
expand the number of flex-fuel vehicles that can use higher blends, and 
we need to expand the number of filling stations selling those higher 
blends. We also need to enable safer and more economical transport of 
higher volumes by supporting development of biofuel pipelines.
  To these ends, I am proud today to introduce the Biofuels Market 
Expansion Act of 2011. This measure would require that at least 90 
percent of new auto sales in the United States be flex fuel vehicles by 
2016. It would also require major fuel distributers, those owning or 
branding more than 50 gasoline filling stations, to install increasing 
numbers of blender pumps at their retail filling stations, and it would 
authorize funding to support blender pump installations by smaller 
filling station operators. Finally, this measure would authorize 
guarantees for loans covering 80 percent of renewable fuel pipeline 
project costs.
  The requirements and assistance authorized in this bill will ensure 
that the number of flex-fuel automobiles and the availability of 
alternative fuels are expanding in tandem with the production and use 
of biofuels in our national fuel supply over the next 8 years and 
beyond. This is a job-creating bill that reduces American dependence on 
foreign petroleum by giving 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 Senators' support for this bill and its rapid 
enactment.
  Mr. President, I ask unanimous consent that 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. 187

       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 2011''.

     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

[[Page S240]]

     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 2014 and 2015..................................           50
Model year 2016 and each subsequent model year.............           90
------------------------------------------------------------------------

       ``(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) 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 2012;
       (B) $100,000,000 for fiscal year 2013;
       (C) $200,000,000 for fiscal year 2014;
       (D) $300,000,000 for fiscal year 2015; and
       (E) $350,000,000 for fiscal year 2016.
       (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 1 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 statio  
Calendar year:                                                 Percent:
2014.................................................................10
2016.................................................................20
2018.................................................................35
2020 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).''.

     SEC. 4. 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

[[Page S241]]

       (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.

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