Biofuels Security Act of 2006 - Amends the Clean Air Act to replace provisions prescribing the volume of renewable fuel that gasoline sold in the United States must contain with provisions that require the Administrator of the Environmental Protection Agency (EPA) to determine the applicable volume for 2010 and beyond. Requires such volume to be at least 10 billion gallons in 2010, 30 billion gallons in 2020, and 60 billion gallons in 2030.
Requires the Secretary of Energy to promulgate regulations to ensure that each major oil company that sells gasoline in the United States through wholly-owned or branded stations provides pumps that dispense E-85 fuel (a blend approximately 85% of the content of which is derived from ethanol produced in the United States) at not less than: (1) a specified percentage of all of its stations (increasing from 5% in 2007 to 50% in 2016); and (2) a minimum percentage of its stations in each state. Allows a company to earn and sell production credits when it exceeds the percentage required. Prohibits companies from using credits purchased to fulfill geographic distribution requirements.
Amends the Energy Policy Act of 1992 to increase to 100% the proportion of vehicles acquired by a federal fleet in and after 2007 that must be light duty alternative fueled vehicles.
Amends the Clayton Act to: (1) prohibit restricting the right of a franchisee to install a renewable fuel pump; and (2) define "gasohol" as any blend of ethanol and gasoline.
Requires makers of new automobiles capable of operating on gasoline or diesel fuel to ensure that a specified percentage of automobiles manufactured in any model year after 2006 for sale in the United States (increasing from 10% in 2007 to 100% in 2016) are dual fueled automobiles. Allows the manufacturer to earn and sell production credits if it exceeds the number required.
Requires the Secretary of Transportation to promote the use of fuel mixtures containing gasoline or diesel fuel and one or more alternative fuels.
Prescribes formulas to be used by the Administrator to measure the fuel economy of dual fueled automobiles manufactured in model years beginning 18, 30, 42, and 54 months after enactment of this Act.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2817 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 2817
To promote renewable fuel and energy security of the United States, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 16, 2006
Mr. Harkin (for himself, Mr. Lugar, Mr. Johnson, Mr. Dorgan, and Mr.
Biden) 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 2006''.
(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:
``(B) Applicable volume.--
``(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):
2007.......................................... 5
2008.......................................... 10
2009.......................................... 15
2010.......................................... 20
2011.......................................... 25
2012.......................................... 30
2013.......................................... 35
2014.......................................... 40
2015.......................................... 45
2016 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
2006; and''; and
(3) by inserting after subparagraph (D) the following:
``(E) 100 percent in fiscal year 2007 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 E-85, 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--
``(1) the term'';
(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.
(a) Requirement.--
(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 2006 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:
The percentage of dual
fueled automobiles
For each of the following model manufactured shall
years: be not less than:
2007.......................................... 10
2008.......................................... 20
2009.......................................... 30
2010.......................................... 40
2011.......................................... 50
2012.......................................... 60
2013.......................................... 70
2014.......................................... 80
2015.......................................... 90
2016 and beyond............................... 100.
``(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 2006''; and
(4) by adding at the end the following:
``(2) Except as provided in paragraph (5) of this
subsection, subsection (d) of this section, or section
32904(a)(2) of this title, 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 2006 by dividing 1.0 by the sum
of--
``(A) 0.7 divided by the fuel economy measured
under section 32904(c) of this title 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) of this
subsection, subsection (d) of this section, or section
32904(a)(2) of this title, 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 2006 by dividing 1.0 by the sum
of--
``(A) 0.9 divided by the fuel economy measured
under section 32904(c) of this title 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) of this section,
or section 32904(a)(2) of this title, 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 2006 in accordance with section
32904(c) of this title.
``(5) Notwithstanding paragraphs (2) through (4) of this
subsection, the fuel economy for all dual fueled automobiles
manufactured to comply with the requirements under section
32902A(a) of this title, including automobiles for which dual
fueled automobile credits have been used or traded under
section 32902A(b) of this title, shall be measured in
accordance with section 32904(c) of this title.''.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S4625-4626)
Read twice and referred to the Committee on Commerce, Science, and Transportation.
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