110th CONGRESS
1st Session
S. 23
To promote renewable fuel and energy security of the United States,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
January 4, 2007
Mr. HARKIN (for himself, Mr. LUGAR, Mr. DORGAN, Mr. BIDEN, and Mr. OBAMA)
introduced the following bill; which was read twice and referred to the
Committee on Commerce, Science, and Transportation
A BILL
To promote renewable fuel and energy security of the United States,
and for other purposes.
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:
`(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--
(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--
(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.
(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:
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`For each of the following model years: The percentage of dual fueled automobiles manufactured shall 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.
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`(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).'.
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