To provide for the energy security of the United States and promote environmental quality by enhancing the use of motor vehicle fuels from renewable sources, and for other purposes.

June 28, 2001

Mr. THUNE (for himself, Mr. GUTKNECHT, Mr. OSBORNE, and Mr. GANSKE) introduced the following bill; which was referred to the Committee on Energy and Commerce

To provide for the energy security of the United States and promote environmental quality by enhancing the use of motor vehicle fuels from renewable sources, 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 Energy Security Act of 2001'.

SEC. 2. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

(a) DEFINITIONS- In this section:

(1) BIODIESEL- The term `biodiesel' means mono alkyl esters of long chain fatty acids derived from renewable liquid sources such as vegetable oils or animal fats, for use in compression-ignition (diesel) engines.

(2) BIOGAS- The term `biogas' means gas produced from a biogas source.

(3) BIOGAS SOURCE- The term `biogas source' means--

(A) a landfill;

(B) a sewage waste treatment plant;

(C) a feedlot; and

(D) any other accumulation of decaying organic material.

(4) BIOMASS-

(A) IN GENERAL- The term `biomass' means lignocellulosic or hemicellulosic matter that is available on a renewable basis.

(B) INCLUSIONS- The term `biomass' includes--

(i) dedicated energy crops and trees;

(ii) wood and wood residues;

(iii) plants;

(iv) grasses;

(v) agricultural commodities and residues;

(vi) fibers; and

(vii) animal waste, municipal solid waste, and other waste.

(5) BIOMASS ETHANOL- The term `biomass ethanol' means ethanol derived from biomass.

(6) RENEWABLE FUEL- The term `renewable fuel' means fuel that--

(A) is--

(i) biodiesel;

(ii) ethanol or any other liquid fuel produced from biomass; or

(iii) biogas; and

(B) is used to reduce the quantity of fossil fuel present in a fuel mixture used to operate a motor vehicle.

(7) SECRETARY- The term `Secretary' means the Secretary of Energy.

(b) RENEWABLE FUEL PROGRAM-

(1) PROGRAM REQUIREMENTS- The motor vehicle fuel sold or introduced into commerce in the United States in calendar year 2002 or any calendar year thereafter by a refiner, blender, or importer shall, on a 6-month average basis, be comprised of a quantity of renewable fuel, measured in gasoline-equivalent gallons (as determined by the Secretary), that is not less than the applicable percentage by volume for the 6-month period.

(2) APPLICABLE PERCENTAGE-

(A) IN GENERAL- For the purposes of paragraph (1), the applicable percentage for a 6-month period of a calendar year shall be determined in accordance with the following table, unless modified under subparagraph (B):

.8

.9

1.1

1.3

1.5

1.7

2.0

2.3

2.6

3.0

3.42

3.84

4.24

4.63

5.00.

(B) ADJUSTMENTS TO APPLICABLE PERCENTAGE- On petition by a State, the Secretary, in consultation with the Secretary of Agriculture, may lower the applicable percentage specified in subparagraph (A) for a period of 1 calendar year with respect to motor vehicle fuel sold or introduced into commerce in the State,

based on a determination by the Secretary, after public notice and opportunity for comment, that during the calendar year there is likely to be an inadequate domestic supply or distribution capacity in the State to meet the applicable percentage specified in subparagraph (A) for the calendar year.

(C) PETITIONS FOR ADJUSTMENT-

(i) SUBMISSION- A State shall submit a petition under subparagraph (B) not later than September 1 of the year preceding the calendar year for which the adjustment is sought.

(ii) ACTION ON PETITIONS- The Secretary, in consultation with the Secretary of Agriculture, shall approve or deny a State petition before the beginning of the calendar year.

(c) CREDIT PROGRAM-

(1) IN GENERAL- Not later than 270 days after the date of enactment of this Act, the Secretary shall promulgate regulations providing for the generation of an appropriate amount of credits by a person that refines, blends, or imports motor vehicle fuel that contains, on a 6-month average basis, a quantity of renewable fuel that is greater than the quantity required for that 6-month period under subsection (b).

(2) USE OF CREDITS- A person that generates credits under paragraph (1) may use the credits, hold the credits for later use, or transfer all or a portion of the credits to another person, for the purpose of complying with subsection (b).

(3) EXPIRATION OF CREDITS- A credit generated under this subsection shall expire 2 years after the date on which the credit was generated.

(4) INABILITY TO PURCHASE SUFFICIENT CREDITS- The regulations under paragraph (1) shall include provisions allowing a refiner, blender, or importer that is unable to purchase sufficient credits to meet the requirements of subsection (b) to enter into an enforceable agreement to generate or purchase sufficient credits to make up for any deficiency within a period of time specified in the agreement.

(5) TESTING; REPORTS- The regulations under paragraph (1) may include provisions requiring a refiner, blender, or importer--

(A) to conduct tests to ascertain the composition of fuels for the purpose of compliance with subsection (b); and

(B) to submit to the Secretary periodic reports on the composition of the fuels refined, blended, or imported.

(d) CIVIL PENALTIES AND ENFORCEMENT-

(1) CIVIL PENALTIES-

(A) IN GENERAL- The Secretary may impose against a person that fails to comply with subsection (b) or with a regulation under subsection (c) a civil penalty in the amount of--

(i) not more than $25,000 for each day of the failure to comply; plus

(ii) the amount of economic benefit realized by the person as a result of the failure to comply.

(B) AVERAGING PERIOD- Any failure to comply with respect to a regulation under subsection (c) that establishes a regulatory requirement based on an averaging period shall constitute a separate day of failure of compliance for each day of the averaging period.

(2) ENFORCEMENT- The Secretary may bring a civil action in United States district court for--

(A) an order enjoining a failure to comply with subsection (b) or with a regulation under subsection (c); and

(B) other appropriate relief.

END