HR 1868
112th CONGRESS
1st Session
H. R. 1868
To require the inclusion of coal-derived fuel at certain volumes
in aviation fuel, motor vehicle fuel, home heating oil, and boiler fuel.
IN THE HOUSE OF REPRESENTATIVES
May 12, 2011
Mrs. CAPITO (for herself, Mr. CRITZ, Mr. BUCSHON, Mr. TERRY, Mr. RAHALL,
and Mr. HOLDEN) introduced the following bill; which was referred to the Committee
on Energy and Commerce
A BILL
To require the inclusion of coal-derived fuel at certain volumes
in aviation fuel, motor vehicle fuel, home heating oil, and boiler fuel.
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 Coal-Derived Fuels for Energy Security
Act of 2011'.
SEC. 2. DEFINITIONS.
(1) CLEAN COAL-DERIVED FUEL-
(A) IN GENERAL- The term `clean coal-derived fuel' means aviation fuel,
motor vehicle fuel, home heating oil, or boiler fuel that is--
(i) substantially derived from the coal resources of the United States;
and
(ii) refined or otherwise processed at a facility located in the United
States that captures up to 100 percent of the carbon dioxide emissions
that would otherwise be released at the facility.
(B) INCLUSIONS- The term `clean coal-derived fuel' may include any fuel
derived from any other resource that is extracted, grown, produced, or
recovered in the United States.
(2) COVERED FUEL- The term `covered fuel' means--
(C) home heating oil; and
(3) SECRETARY- The term `Secretary' means the Secretary of Energy.
(4) SMALL REFINERY- The term `small refinery' means a refinery for which
the average aggregate daily throughput for a calendar year (as determined
by dividing the aggregate throughput for the calendar year by the number
of days in the calendar year) does not exceed 75,000 barrels.
SEC. 3. CLEAN COAL-DERIVED FUEL PROGRAM.
(1) IN GENERAL- Not later than 1 year after the date of enactment of this
Act, the President shall promulgate regulations to ensure that covered fuel
sold or introduced into commerce in the United States (except in noncontiguous
States or territories), on an annual average basis, contains the applicable
volume of clean coal-derived fuel determined in accordance with paragraph
(4).
(2) PROVISIONS OF REGULATIONS- The regulations promulgated under paragraph
(1)--
(A) shall contain compliance provisions applicable to refineries, blenders,
distributors, and importers, as appropriate, to ensure that--
(i) the requirements of this subsection are met; and
(ii) clean coal-derived fuels produced from facilities for the purpose
of compliance with this Act result in lifecycle greenhouse gas emissions
that are not greater than gasoline; and
(i) restrict geographic areas in the contiguous United States in which
clean coal-derived fuel may be used; or
(ii) impose any per-gallon obligation for the use of clean coal-derived
fuel.
(3) RELATIONSHIP TO OTHER REGULATIONS- Regulations promulgated under this
subsection shall, to the extent practicable, incorporate the program structure
and compliance and reporting requirements established under the final regulations
promulgated to implement the renewable fuel program under section 211(o)
of the Clean Air Act (42 U.S.C. 7545(o)).
(A) CALENDAR YEARS 2017 THROUGH 2024- For the purpose of this subsection,
the applicable volume for any of calendar years 2017 through 2024 shall
be determined in accordance with the following table:
Applicable volume of clean coal-derived fuel
Calendar year:
(in billions of gallons):
2017
--0.75
2018
--1.5
2019
--2.25
2020
--3.00
2021
--3.75
2022
--4.5
2023
--5.25
2024
--6.0.
(B) CALENDAR YEAR 2025 AND THEREAFTER- Subject to subparagraph (C), for
the purposes of this subsection, the applicable volume for calendar year
2025 and each calendar year thereafter shall be determined by the President,
in coordination with the Secretary and the Administrator of the Environmental
Protection Agency, based on a review of the implementation of the program
during calendar years 2017 through 2024, including a review of--
(i) the impact of clean coal-derived fuels on the energy security of
the United States;
(ii) the expected annual rate of future production of clean coal-derived
fuels; and
(iii) the impact of the use of clean coal-derived fuels on other factors,
including job creation, rural economic development, and the environment.
(C) MINIMUM APPLICABLE VOLUME- For the purpose of this subsection, the
minimum applicable volume for calendar year 2025 and each calendar year
thereafter shall be equal to the product obtained by multiplying--
(i) the number of gallons of covered fuel that the President estimates
will be sold or introduced into commerce in the calendar year; and
(I) 6,000,000,000 gallons of clean coal-derived fuel; bears to
(II) the number of gallons of covered fuel sold or introduced into
commerce in calendar year 2024.
(b) Applicable Percentages-
(1) PROVISION OF ESTIMATE OF VOLUMES OF CERTAIN FUEL SALES- Not later than
October 31 of each of calendar years 2017 through 2023, the Administrator
of the Energy Information Administration shall provide to the President
an estimate, with respect to the following calendar year, of the volumes
of covered fuel projected to be sold or introduced into commerce in the
United States.
(2) DETERMINATION OF APPLICABLE PERCENTAGES-
(A) IN GENERAL- Not later than November 30 of each of calendar years 2017
through 2024, based on the estimate provided under paragraph (1), the
President shall determine and publish in the Federal Register, with respect
to the following calendar year, the clean coal-derived fuel obligation
that ensures that the requirements of subsection (a) are met.
(B) REQUIRED ELEMENTS- The clean coal-derived fuel obligation determined
for a calendar year under subparagraph (A) shall--
(i) be applicable to refineries, blenders, and importers, as appropriate;
(ii) be expressed in terms of a volume percentage of covered fuel sold
or introduced into commerce in the United States; and
(iii) subject to paragraph (3)(A), consist of a single applicable percentage
that applies to all categories of persons specified in clause (i).
(3) ADJUSTMENTS- In determining the applicable percentage for a calendar
year, the President shall make adjustments--
(A) to prevent the imposition of redundant obligations on any person specified
in paragraph (2)(B)(i); and
(B) to account for the use of clean coal-derived fuel during the previous
calendar year by small refineries that are exempt under subsection (f).
(c) Volume Conversion Factors for Clean Coal-Derived Fuels Based on Energy
Content-
(1) IN GENERAL- For the purpose of subsection (a), the President shall assign
values to specific types of clean coal-derived fuel for the purpose of satisfying
the fuel volume requirements of subsection (a)(4) in accordance with this
subsection.
(2) ENERGY CONTENT RELATIVE TO APPLICABLE COVERED FUEL- For each type of
clean coal-derived fuel, 1 gallon of the clean coal-derived fuel shall be
considered to be the equivalent of 1 gallon of the applicable covered fuel
multiplied by the ratio that--
(A) the number of British thermal units of energy produced by the combustion
of 1 gallon of the clean coal-derived fuel (as measured under conditions
determined by the Secretary); bears to
(B) the number of British thermal units of energy produced by the combustion
of 1 gallon of the applicable covered fuel (as measured under conditions
determined by the Secretary to be comparable to conditions described in
subparagraph (A)).
(1) IN GENERAL- The President, in consultation with the Secretary and in
accordance with the clean coal-derived fuel requirements of this section,
may implement a program for the sale and trade of clean coal-derived fuel
production credits.
(2) MARKET TRANSPARENCY- In carrying out the credit program under this subsection,
the President shall facilitate price transparency in markets for the sale
and trade of credits, with due regard for the public interest, the integrity
of those markets, fair competition, and the protection of consumers.
(1) IN GENERAL- The President, in consultation with the Secretary and the
Administrator of the Environmental Protection Agency, may waive the requirements
of subsection (a) in whole or in part on petition by 1 or more States by
reducing the national quantity of clean coal-derived fuel required under
subsection (a), based on a determination by the President (after public
notice and opportunity for comment), that--
(A) implementation of the requirement would severely harm the economy
or environment of a State, a region, or the United States; or
(B) extreme and unusual circumstances exist that prevent distribution
of an adequate supply of domestically produced clean coal-derived fuel
to consumers in the United States.
(2) PETITIONS FOR WAIVERS- The President, in consultation with the Secretary
and the Administrator of the Environmental Protection Agency, shall approve
or disapprove a State petition for a waiver of the requirements of subsection
(a) within 90 days after the date on which the petition is received by the
President.
(3) TERMINATION OF WAIVERS- A waiver granted under paragraph (1) shall terminate
after 1 year, but may be renewed by the President after consultation with
the Secretary and the Administrator of the Environmental Protection Agency.
(A) IN GENERAL- The requirements of subsection (a) shall not apply to
small refineries until calendar year 2020.
(B) EXTENSION OF EXEMPTION-
(i) STUDY BY SECRETARY- Not later than December 31, 2015, the Secretary
shall submit to the President and Congress a report describing the results
of a study to determine whether compliance with the requirements of
subsection (a) would impose a disproportionate economic hardship on
small refineries.
(ii) EXTENSION OF EXEMPTION- In the case of a small refinery that the
Secretary determines under clause (i) would be subject to a disproportionate
economic hardship if required to comply with subsection (a), the President
shall extend the exemption under subparagraph (A) for the small refinery
for a period of not less than 2 additional years.
(2) PETITIONS BASED ON DISPROPORTIONATE ECONOMIC HARDSHIP-
(A) EXTENSION OF EXEMPTION- A small refinery may at any time petition
the President for an extension of the exemption under paragraph (1) for
the reason of disproportionate economic hardship.
(B) EVALUATION OF PETITIONS- In evaluating a petition under subparagraph
(A), the President, in consultation with the Secretary, shall consider
the findings of the study under paragraph (1)(B) and other economic factors.
(C) DEADLINE FOR ACTION ON PETITIONS- The President shall act on any petition
submitted by a small refinery for a hardship exemption not later than
90 days after the date of receipt of the petition.
(3) OPT-IN FOR SMALL REFINERIES- A small refinery shall be subject to the
requirements of subsection (a) if the small refinery notifies the President
that the small refinery waives the exemption under paragraph (1).
(g) Penalties and Enforcement-
(A) IN GENERAL- Any person that violates a regulation promulgated under
subsection (a), or that fails to furnish any information required under
such a regulation, shall be liable to the United States for a civil penalty
of not more than the total of--
(i) $25,000 for each day of the violation; and
(ii) the amount of economic benefit or savings received by the person
resulting from the violation, as determined by the President.
(B) COLLECTION- Civil penalties under subparagraph (A) shall be assessed
by, and collected in a civil action brought by, the Secretary or such
other officer of the United States as is designated by the President.
(2) INJUNCTIVE AUTHORITY-
(A) IN GENERAL- The district courts of the United States shall have jurisdiction
to--
(i) restrain a violation of a regulation promulgated under subsection
(a);
(ii) award other appropriate relief; and
(iii) compel the furnishing of information required under the regulation.
(B) ACTIONS- An action to restrain such violations and compel such actions
shall be brought by and in the name of the United States.
(C) SUBPOENAS- In any action to restrain a violation of a regulation promulgated
under subsection (a), a subpoena for a witness who is required to attend
a district court in any district may apply in any other district.
(h) Effective Date- Except as otherwise specifically provided in this section,
this section takes effect on January 1, 2017.
END
