HR 404
112th CONGRESS
1st Session
H. R. 404
To amend the Internal Revenue Code of 1986 to extend and modify the
credits for alcohol used as a fuel, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
January 24, 2011
Mr. FORTENBERRY introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on Energy and
Commerce and Transportation and Infrastructure, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to extend and modify the
credits for alcohol used as a fuel, 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.
This Act may be cited as the `Renewable Fuels for America's Future Act of
2011'.
SEC. 2. REDUCTION IN CREDIT FOR FUEL REQUIRED TO MEET RENEWABLE FUEL OBLIGATION.
(a) In General- Subsection (d) of section 40 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new paragraph:
`(8) ALCOHOL REQUIRED TO MEET RENEWABLE FUEL OBLIGATION NOT TAKEN INTO ACCOUNT-
`(A) IN GENERAL- Alcohol used to meet the renewable fuel obligation applicable
to the taxpayer shall not be taken into account for purposes of determining
a credit under this section.
`(B) RENEWABLE FUEL OBLIGATION- For purposes of subparagraph (A), the
term `renewable fuel obligation' means the renewable fuel obligation determined
under section 211(o)(3) of the Clean Air Act (42 U.S.C. 7545(o)(3)).
`(C) USE OF RINS- Determinations for purposes of subparagraph (A) shall
be made through the use of renewable identification numbers received from
the taxpayer by the Administrator of the Environmental Protection Agency
pursuant to regulations issued under section 211(o) of such Act.'.
(b) Excise Tax Credit and Payment-
(1) EXCISE TAX- Subsection (b) of section 6426 of such Code, as amended
by section 4 of this Act, is amended by redesignating paragraph (6) as paragraph
(7) and by inserting after paragraph (5) the following new paragraph:
`(6) ALCOHOL REQUIRED TO MEET RENEWABLE FUEL OBLIGATION NOT TAKEN INTO ACCOUNT-
`(A) IN GENERAL- Alcohol used to meet the renewable fuel obligation applicable
to the taxpayer shall not be taken into account for purposes of determining
a credit under this subsection.
`(B) RENEWABLE FUEL OBLIGATION- For purposes of subparagraph (A), the
term `renewable fuel obligation' means the renewable fuel obligation determined
under section 211(o)(3) of the Clean Air Act (42 U.S.C. 7545(o)(3)).
`(C) USE OF RINS- Determinations for purposes of subparagraph (A) shall
be made through the use of renewable identification numbers received from
the taxpayer by the Administrator of the Environmental Protection Agency
pursuant to regulations issued under section 211(o) of such Act.'.
(2) PAYMENT- Paragraph (2) of section 6427(e) of such Code is amended by
adding at the end the following: `For purposes of this subsection, alternative
fuel shall not include any alcohol used to meet the renewable fuel obligation
(as defined in section 6426(e)(6)) applicable to the taxpayer'.
(c) Effective Date- The amendments made by this section shall apply to fuel
produced or sold after December 31, 2010.
SEC. 3. EXTENSION OF INCOME TAX CREDIT FOR ALCOHOL USED AS FUEL.
(a) In General- Paragraph (1) of section 40(e) of the Internal Revenue Code
of 1986 is amended--
(1) by striking `December 31, 2011' in subparagraph (A) and inserting `December
31, 2016', and
(2) by striking `January 1, 2012' in subparagraph (B) and inserting `January
1, 2017'.
(b) Cellulosic Biofuel- Subparagraph (H) of section 40(b)(6) of such Code
is amended by striking `January 1, 2013' and inserting `January 1, 2017'.
(c) Reduced Amount for Ethanol Blenders- Paragraph (2) of section 40(h) of
such Code is amended by striking `2011' both places it appears and inserting
`2016'.
(d) Effective Date- The amendments made by this section shall take effect
on the date of the enactment of this Act.
SEC. 4. EXTENSION OF EXCISE TAX CREDIT FOR ALCOHOL USED AS FUEL.
(a) In General- Paragraph (6) of section 6426(b) of the Internal Revenue Code
of 1986 is amended by striking `December 31, 2011' and inserting `December
31, 2016'.
(b) Effective Date- The amendment made by this section shall take effect on
the date of the enactment of this Act.
SEC. 5. EXTENSION OF PAYMENT FOR ALCOHOL FUEL MIXTURE.
(a) In General- Subparagraph (A) of section 6427(e)(6) of the Internal Revenue
Code of 1986 is amended by striking `December 31, 2011' and inserting `December
31, 2016'.
(b) Effective Date- The amendment made by this subsection shall apply to sales
and uses after December 31, 2010.
SEC. 6. EXTENSION OF ADDITIONAL DUTIES ON ETHANOL.
Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff Schedule of the
United States are each amended in the effective period column by striking
`1/1/2012' and inserting `1/1/2017'.
SEC. 7. 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 2013 and 2014
--50 percent
Model year 2015 and each subsequent model year
--90 percent.
`(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
section, the Secretary of Transportation shall prescribe regulations to carry
out the amendments made by this section.
SEC. 8. 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 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 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 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 stations
Calendar year:
Percent:
2012
--10
2014
--20
2016
--35
2018 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).'.
END
