Renewable Diesel Standard Act of 2005 - Amends the Clean Air Act to require the Administrator of the Environmental Protection Agency (EPA) to issue regulations to ensure that the U.S. diesel fuel supply contains a specified annual volume (in gallons) of renewable fuel in 2008 through 2015. (Requires the percentage of renewable fuel in the U.S. diesel motor pool to be .006 for 2008 if the Administrator fails to promulgate such regulations.) Directs the Administrator to set the standard for renewable fuel content for 2016 and thereafter in consultation with the Secretaries of Agriculture and Energy, according to a specified formula, taking into consideration certain economic and environmental factors.
Establishes a program of credits for diesel fuel producers who exceed the renewable fuel standards established by this Act.
Authorizes the Administrator, upon the petition of one or more states, to waive renewable fuel content requirements for economic, environmental, or supply reasons.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1920 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 1920
To amend the Clean Air Act to establish a renewable diesel standard,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 25, 2005
Mr. Obama introduced the following bill; which was read twice and
referred to the Committee on Environment and Public Works
_______________________________________________________________________
A BILL
To amend the Clean Air Act to establish a renewable diesel standard,
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 Diesel Standard Act of
2005''.
SEC. 2. FINDINGS.
Congress finds that--
(1) section 211(o) of the Clean Air Act (42 U.S.C. 7535(o))
(as amended by section 1501 of the Energy Policy Act of 2005
(Public Law 109-58)) established a renewable fuel program under
which entities in the petroleum sector are required to blend
renewable fuels into motor vehicle fuel based on the gasoline
motor pool;
(2) the need for energy diversification is greater as of
the date of enactment of this Act than it was only months
before the date of enactment of the Energy Policy Act (Public
Law 109-58; 119 Stat. 594);
(3)(A) the renewable fuel program under section 211(o) of
the Clean Air Act requires a small percentage of the gasoline
motor pool, totaling nearly 140,000,000,000 gallons, to contain
a renewable fuel; and
(B) the small percentage requirement described in
subparagraph (A) does not include the 40,000,000,000-gallon
diesel motor pool; and
(4) beginning in 2008, the diesel motor pool should contain
no less than 1 percent of renewable fuels by volume.
SEC. 3. RENEWABLE CONTENT OF DIESEL MOTOR POOL.
(a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545)
is amended by inserting after subsection (o) the following:
``(p) Renewable Fuel Program for the Diesel Motor Pool.--
``(1) Definition of renewable fuel.--
``(A) In general.--In this subsection, the term
`renewable fuel' has the meaning given the term in
subsection (o)(1)(C).
``(B) Inclusions.--The term `renewable fuel'
includes a diesel fuel substitute produced from--
``(i) animal fat;
``(ii) vegetable oil;
``(iii) recycled yellow grease;
``(iv) thermal depolymerization;
``(v) thermochemical conversion;
``(vi) the coal-to-liquid process
(including the Fischer-Tropsch process); or
``(vii) a diesel-ethanol blend.
``(2) Renewable fuel program.--
``(A) Regulations.--
``(i) In general.--Not later than 1 year
after the date of enactment of this subsection,
the Administrator shall promulgate regulations
to ensure that diesel 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 renewable fuel determined in
accordance with subparagraph (B).
``(ii) Provisions of regulations.--
Regardless of the date of promulgation, the
regulations promulgated under clause (i)--
``(I) shall contain compliance
provisions applicable to refineries,
blenders, distributors, and importers,
as appropriate, to ensure that the
requirements of this paragraph are met;
but
``(II) shall not--
``(aa) restrict geographic
areas in which renewable fuel
may be used; or
``(bb) impose any per-
gallon obligation for the use
of renewable fuel.
``(iii) Requirement in case of failure to
promulgate regulations.--If the Administrator
fails to promulgate regulations under clause
(i), the percentage of renewable fuel in the
diesel motor pool sold or dispensed to
consumers in the United States, on a volume
basis, shall be .006 percent for calendar year
2008.
``(B) Applicable volume.--
``(i) Calendar years 2008 through 2015.--
For the purpose of subparagraph (A), the
applicable volume for any of calendar years
2008 through 2015 shall be determined in
accordance with the following table:
``Applicable volume of renewable
fuel in diesel motor pool
(in millions of gallons): Calendar year:
250.................................................... 2008
500.................................................... 2009
750.................................................... 2010
1,000.................................................. 2011
1,250.................................................. 2012
1,500.................................................. 2013
1,750.................................................. 2014
2,000.................................................. 2015.
``(ii) Calendar year 2016 and thereafter.--
The applicable volume for calendar year 2016
and each calendar year thereafter shall be
determined by the Administrator, in
coordination with the Secretary of Agriculture
and the Secretary of Energy, based on a review
of the implementation of the program during
calendar years 2008 through 2015, including a
review of--
``(I) the impact of the use of
renewable fuels on the environment, air
quality, energy security, job creation,
and rural economic development; and
``(II) the expected annual rate of
future production of renewable fuels to
be used as a blend component or
replacement to the diesel motor pool.
``(iii) Minimum applicable volume.--For the
purpose of subparagraph (A), the applicable
volume for calendar year 2016 and each calendar
year thereafter shall be equal to the product
obtained by multiplying--
``(I) the number of gallons of
diesel that the Administrator estimates
will be sold or introduced into
commerce during the calendar year; and
``(II) the ratio that--
``(aa) 2,000,000,000
gallons of renewable fuel;
bears to
``(bb) the number of
gallons of diesel sold or
introduced into commerce during
calendar year 2015.
``(3) Applicable percentages.--
``(A) Provision of estimate of volumes of diesel
sales.--Not later than October 31 of each of calendar
years 2007 through 2015, the Administrator of the
Energy Information Administration shall provide to the
Administrator an estimate, with respect to the
following calendar year, of the volumes of diesel
projected to be sold or introduced into commerce in the
United States.
``(B) Determination of applicable percentages.--
``(i) In general.--Not later than November
30 of each of calendar years 2008 through 2015,
based on the estimate provided under
subparagraph (A), the Administrator shall
determine and publish in the Federal Register,
with respect to the following calendar year,
the renewable fuel obligation that ensures that
the requirements of paragraph (2) are met.
``(ii) Required elements.--The renewable
fuel obligation determined for a calendar year
under clause (i) shall--
``(I) be applicable to refineries,
blenders, and importers, as
appropriate;
``(II) be expressed in terms of a
volume percentage of diesel sold or
introduced into commerce in the United
States; and
``(III) subject to subparagraph
(C), consist of a single applicable
percentage that applies to all
categories of persons described in
subclause (I).
``(C) Adjustments.--In determining the applicable
percentage for a calendar year, the Administrator shall
make adjustments to prevent the imposition of redundant
obligations on any person described in subparagraph
(B)(ii)(I).
``(4) Credit program.--
``(A) In general.--The regulations promulgated
pursuant to paragraph (2)(A) shall provide for the
generation of an appropriate amount of credits by any
person that refines, blends, or imports diesel that
contains a quantity of renewable fuel that is greater
than the quantity required under paragraph (2).
``(B) Use of credits.--A person that generates a
credit under subparagraph (A) may use the credit, or
transfer all or a portion of the credit to another
person, for the purpose of complying with regulations
promulgated pursuant to paragraph (2).
``(C) Duration of credits.--A credit generated
under this paragraph shall be valid during the 1-year
period beginning on the date on which the credit is
generated.
``(D) Inability to generate or purchase sufficient
credits.--The regulations promulgated pursuant to
paragraph (2)(A) shall include provisions allowing any
person that is unable to generate or purchase
sufficient credits under subparagraph (A) to meet the
requirements of paragraph (2) by carrying forward a
credit generated during a previous year on the
condition that the person, during the calendar year
following the year in which the renewable fuel deficit
is created--
``(i) achieves compliance with the
renewable fuel requirement under paragraph (2);
and
``(ii) generates or purchases additional
credits under subparagraph (A) to offset the
deficit of the previous year.
``(5) Waivers.--
``(A) In general.--The Administrator, in
consultation with the Secretary of Agriculture and the
Secretary of Energy, may waive the requirements of
paragraph (2) in whole or in part on receipt of a
petition of 1 or more States by reducing the national
quantity of renewable fuel for the diesel motor pool
required under paragraph (2) based on a determination
by the Administrator, after public notice and
opportunity for comment, that--
``(i) implementation of the requirement
would severely harm the economy or environment
of a State, a region, or the United States; or
``(ii) there is an inadequate domestic
supply of renewable fuel.
``(B) Petitions for waivers.--Not later than 90
days after the date on which the Administrator receives
a petition under subparagraph (A), the Administrator,
in consultation with the Secretary of Agriculture and
the Secretary of Energy, shall approve or disapprove
the petition.
``(C) Termination of waivers.--
``(i) In general.--Except as provided in
clause (ii), a waiver under subparagraph (A)
shall terminate on the date that is 1 year
after the date on which the waiver is provided.
``(ii) Exception.--The Administrator, in
consultation with the Secretary of Agriculture
and the Secretary of Energy, may extend a
waiver under subparagraph (A), as the
Administrator determines to be appropriate.''.
(b) Penalties and Enforcement.--Section 211(d) of the Clean Air Act
(42 U.S.C. 7545(d)) is amended--
(1) in paragraph (1), by striking ``or (o)'' each place it
appears and inserting ``(o), or (p)''; and
(2) in paragraph (2), by striking ``and (o)'' each place it
appears and inserting ``(o), and (p)''.
(c) Technical Amendments.--Section 211 of the Clean Air Act (42
U.S.C. 7545) is amended--
(1) in subsection (c)(4)(C), by redesignating the second
clause (v) as clause (vi);
(2) in subsection (i)(4), by striking ``section 324'' each
place it appears and inserting ``section 325'';
(3) in subsection (k)(10), by indenting subparagraphs (E)
and (F) appropriately;
(4) in subsection (n), by striking ``section 219(2)'' and
inserting ``section 216(2)'';
(5) by redesignating the second subsection (r) and
subsection (s) as subsections (s) and (t), respectively; and
(6) in subsection (t)(1) (as redesignated by paragraph
(5)), by striking ``this subtitle'' and inserting ``this
part''.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S11826-11827)
Read twice and referred to the Committee on Environment and Public Works.
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