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credit as the acquisition of 1 alternative fueled vehicle
1
that the fleet or covered person is required to acquire
2
under this title.
3
‘‘(5) L
IMITATION
.—Per vehicle credits acquired
4
under this subsection shall not exceed the per vehicle
5
credits allowed under this section to a fleet for quali-
6
fying vehicles in each of the weight categories (light,
7
medium, or heavy duty).
8
‘‘(r) C
REDIT FOR
S
UBSTANTIAL
I
NVESTMENT IN
A
L
-
9
TERNATIVE
F
UEL
I
NFRASTRUCTURE
.—
10
‘‘(1) D
EFINITIONS
.—In this section, the term
11
‘qualifying infrastructure’ means—
12
‘‘(A) equipment required to refuel or re-
13
charge alternative fueled vehicles;
14
‘‘(B) facilities or equipment required to
15
maintain, repair, or operate alternative fueled
16
vehicles;
17
‘‘(C) training programs, educational mate-
18
rials, or other activities necessary to provide in-
19
formation regarding the operation, maintenance,
20
or benefits associated with alternative fueled ve-
21
hicles; and
22
‘‘(D) such other activities the Secretary con-
23
siders to constitute an appropriate expenditure
24
in support of the operation, maintenance, or fur-
25
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ther widespread adoption of or utilization of al-
1
ternative fueled vehicles.
2
‘‘(2) I
SSUANCE
OF
CREDITS
.—The Secretary
3
shall issue a credit to a fleet or covered person under
4
this title for investment in qualifying infrastructure
5
if the qualifying infrastructure is open to the general
6
public during regular business hours.
7
‘‘(3) A
MOUNT
.—For the purposes of credits
8
under this subsection—
9
‘‘(A) 1 credit shall be equal to a minimum
10
investment of $25,000 in cash or in kind serv-
11
ices, as determined by the Secretary; and
12
‘‘(B) except in the case of a Federal or State
13
fleet, no part of the investment may be provided
14
by Federal or State funds.
15
‘‘(4) U
SE OF CREDITS
.—At the request of a fleet
16
or covered person allocated a credit under this sub-
17
section, the Secretary shall, for the year in which the
18
investment is made, treat that credit as the acquisi-
19
tion of 1 alternative fueled vehicle that the fleet or
20
covered person is required to acquire under this
21
title.’’.
22
SEC. 820. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.
23
(a) I
N
G
ENERAL
.—Section 211 of the Clean Air Act
24
(42 U.S.C. 7545) is amended—
25
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(1) by redesignating subsection (o) as subsection
1
(q); and
2
(2) by inserting after subsection (n) the fol-
3
lowing:
4
‘‘(o) R
ENEWABLE
F
UEL
P
PROGRAM
.—
5
‘‘(1) D
EFINITIONS
.—In this section:
6
‘‘(A) C
ELLULOSIC BIOMASS ETHANOL
.—The
7
term ‘cellulosic biomass ethanol’ means ethanol
8
derived from any lignocellulosic or hemicellulosic
9
matter that is available on a renewable or recur-
10
ring basis, including—
11
‘‘(i) dedicated energy crops and trees;
12
‘‘(ii) wood and wood residues;
13
‘‘(iii) plants;
14
‘‘(iv) grasses;
15
‘‘(v) agricultural residues;
16
‘‘(vi) fibers;
17
‘‘(vii) animal wastes and other waste
18
materials; and
19
‘‘(viii) municipal solid waste.
20
‘‘(B) R
ENEWABLE FUEL
.—
21
‘‘(i) I
N GENERAL
.—The term ‘renew-
22
able fuel’ means motor vehicle fuel that—
23
‘‘(I)(aa) is produced from grain,
24
starch, oilseeds, or other biomass; or
25
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‘‘(bb) is natural gas produced
1
from a biogas source, including a land-
2
fill, sewage waste treatment plant,
3
feedlot, or other place where decaying
4
organic material is found; and
5
‘‘(II) is used to replace or reduce
6
the quantity of fossil fuel present in a
7
fuel mixture used to operate a motor
8
vehicle.
9
‘‘(ii) I
NCLUSION
.—The term ‘renewable
10
fuel’ includes cellulosic biomass ethanol and
11
biodiesel (as defined in section 312(f) of the
12
Energy Policy Act of 1992 (42 U.S.C.
13
13220(f)).
14
‘‘(C) S
MALL REFINERY
.—The term ‘small
15
refinery’ means a refinery for which average ag-
16
gregate daily crude oil throughput for the cal-
17
endar year (as determined by dividing the aggre-
18
gate throughput for the calendar year by the
19
number of days in the calendar year) does not
20
exceed 75,000 barrels.
21
‘‘(2) R
ENEWABLE FUEL PROGRAM
.—
22
‘‘(A) I
N GENERAL
.—Not later than 1 year
23
from enactment of this provision, the Adminis-
24
trator shall promulgate regulations ensuring that
25
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gasoline sold or dispensed to consumers in the
1
United States, on an annual average basis, con-
2
tains the applicable volume of renewable fuel as
3
specified in subparagraph (B). Regardless of the
4
date of promulgation, such regulations shall con-
5
tain compliance provisions for refiners, blenders,
6
and importers, as appropriate, to ensure that the
7
requirements of this section are met, but shall
8
not restrict where renewables can be used, or im-
9
pose any per-gallon obligation for the use of re-
10
newables. If the Administrator does not promul-
11
gate such regulations, the applicable percentage,
12
on a volume percentage of gasoline basis, shall be
13
1.62 in 2004.
14
‘‘(B) A
PPLICABLE VOLUME
.—
15
(i) C
ALENDAR YEARS 2004 THROUGH
16
2012
.—For the purpose of subparagraph (A),
17
the applicable volume for any of calendar
18
years 2004 through 2012 shall be deter-
19
mined in accordance with the following
20
table:
21
Applicable volume of renewable fuel
‘‘Calendar year:
(In billions of gallons)
2004 ............................................................................................
2.3
2005 ............................................................................................
2.6
2006 ............................................................................................
2.9
2007 ............................................................................................
3.2
2008 ............................................................................................
3.5
2009 ............................................................................................
3.9
2010 ............................................................................................
4.3
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‘‘Calendar year:
(In billions of gallons)
2011 ............................................................................................
4.7
2012 ............................................................................................
5.0.
‘‘(ii)
C
ALENDAR
YEAR
2013
AND
1
THEREAFTER
.—For the purpose of subpara-
2
graph (A), the applicable volume for cal-
3
endar year 2013 and each calendar year
4
thereafter shall be equal to the product ob-
5
tained by multiplying—
6
‘‘(I) the number of gallons of gaso-
7
line that the Administrator estimates
8
will be sold or introduced into com-
9
merce in the calendar year; and
10
‘‘(II) the ratio that—
11
‘‘(aa) 5.0 billion gallons of
12
renewable fuels; bears to
13
‘‘(bb) the number of gallons
14
of gasoline sold or introduced into
15
commerce in calendar year 2012.
16
‘‘(3) A
PPLICABLE
PERCENTAGES
.—Not later
17
than October 31 of each calendar year, through 2011,
18
the Administrator of the Energy Information Admin-
19
istration shall provide the Administrator an estimate
20
of the volumes of gasoline sales in the United States
21
for the coming calendar year. Based on such esti-
22
mates, the Administrator shall by November 30 of
23
each calendar year, through 2011, determine and pub-
24
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HR 6 EAS1S/PP
lish in the Federal Register, the renewable fuel obliga-
1
tion, on a volume percentage of gasoline basis, appli-
2
cable to refiners, blenders, distributors and importers,
3
as appropriate, for the coming calendar year, to en-
4
sure that the requirements of paragraph (2) are met.
5
For each calendar year, the Administrator shall es-
6
tablish a single applicable percentage that applies to
7
all parties, and make provision to avoid redundant
8
obligations. In determining the applicable percent-
9
ages, the Administrator shall make adjustments to ac-
10
count for the use of renewable fuels by exempt small
11
refineries during the previous year.
12
‘‘(4) C
ELLULOSIC BIOMASS ETHANOL
.—For the
13
purpose of paragraph (2), 1 gallon of cellulosic bio-
14
mass ethanol shall be considered to be the equivalent
15
of 1.5 gallon of renewable fuel.
16
‘‘(5) C
REDIT PROGRAM
.—
17
‘‘(A) I
N
GENERAL
.—The regulations pro-
18
mulgated to carry out this subsection shall pro-
19
vide for the generation of an appropriate
20
amount of credits by any person that refines,
21
blends, or imports gasoline that contains a quan-
22
tity of renewable fuel that is greater than the
23
quantity required under paragraph (2). Such
24
regulations shall provide for the generation of an
25
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appropriate amount of credits for biodiesel fuel.
1
If a small refinery notifies the Administrator
2
that it waives the exemption provided by this
3
Act, the regulations shall provide for the genera-
4
tion of credits by the small refinery beginning in
5
the year following such notification.
6
‘‘(B) U
SE OF CREDITS
.—A person that gen-
7
erates credits under subparagraph (A) may use
8
the credits, or transfer all or a portion of the
9
credits to another person, for the purpose of com-
10
plying with paragraph (2).
11
‘‘(C) L
IFE OF CREDITS
.—A credit generated
12
under this paragraph shall be valid to show com-
13
pliance:
14
(i) in the calendar year in which the
15
credit was generated or the next calendar
16
year, or
17
(ii) in the calendar year in which the
18
credit was generated or next two consecutive
19
calendar years if the Administrator promul-
20
gates regulations under paragraph (6).
21
‘‘(D) I
NABILITY TO PURCHASE SUFFICIENT
22
CREDITS
.—The regulations promulgated to carry
23
out this subsection shall include provisions al-
24
lowing any person that is unable to generate or
25
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purchase sufficient credits to meet the require-
1
ments under paragraph (2) to carry forward a
2
renewables deficit provided that, in the calendar
3
year following the year in which the renewables
4
deficit is created, such person shall achieve com-
5
pliance with the renewables requirement under
6
paragraph (2), and shall generate or purchase
7
additional renewables credits to offset the renew-
8
ables deficit of the previous year.
9
‘‘(6) S
EASONAL
VARIATIONS
IN
RENEWABLE
10
FUEL USE
.—
11
‘‘(A) S
TUDY
.—For each of calendar years
12
2004 through 2012, the Administrator of the En-
13
ergy Information Administration, shall conduct
14
a study of renewable fuels blending to determine
15
whether there are excessive seasonal variations in
16
the use of renewable fuels.
17
‘‘(B) R
EGULATION OF EXCESSIVE SEASONAL
18
VARIATIONS
.—If, for any calendar year, the Ad-
19
ministrator of the Energy Information Adminis-
20
tration, based on the study under subparagraph
21
(A), makes the determinations specified in sub-
22
paragraph (C), the Administrator shall promul-
23
gate regulations to ensure that 35 percent or
24
more of the quantity of renewable fuels necessary
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HR 6 EAS1S/PP
to meet the requirement of paragraph (2) is used
1
during each of the periods specified in subpara-
2
graph (D) of each subsequent calendar year.
3
‘‘(C) D
ETERMINATIONS
.—The determina-
4
tions referred to in subparagraph (B) are that—
5
‘‘(i) less than 35 percent of the quan-
6
tity of renewable fuels necessary to meet the
7
requirement of paragraph (2) has been used
8
during one of the periods specified in sub-
9
paragraph (D) of the calendar year; and
10
‘‘(ii) a pattern of excessive seasonal
11
variation described in clause (i) will con-
12
tinue in subsequent calendar years.
13
‘‘(D) P
ERIODS
.—The two periods referred to
14
in this paragraph are—
15
‘‘(i) April through September; and
16
‘‘(ii) January through March and Oc-
17
tober through December.
18
‘‘(E) E
XCLUSIONS
.—Renewable fuels blend-
19
ed or consumed in 2004 in a state which has re-
20
ceived a waiver under section 209(b) shall not be
21
included in the study in subparagraph (A).
22
‘‘(7) W
AIVERS
.—
23
‘‘(A) I
N GENERAL
.—The Administrator, in
24
consultation with the Secretary of Agriculture
25
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and the Secretary of Energy, may waive the re-
1
quirement of paragraph (2) in whole or in part
2
on petition by one or more States by reducing
3
the national quantity of renewable fuel required
4
under this subsection—
5
‘‘(i) based on a determination by the
6
Administrator, after public notice and op-
7
portunity for comment, that implementa-
8
tion of the requirement would severely harm
9
the economy or environment of a State, a
10
region, or the United States; or
11
‘‘(ii) based on a determination by the
12
Administrator, after public notice and op-
13
portunity for comment, that there is an in-
14
adequate domestic supply or distribution
15
capacity to meet the requirement.
16
‘‘(B) P
ETITIONS FOR WAIVERS
.—The Ad-
17
ministrator, in consultation with the Secretary
18
of Agriculture and the Secretary of Energy, shall
19
approve or disapprove a State petition for a
20
waiver of the requirement of paragraph (2) with-
21
in 90 days after the date on which the petition
22
is received by the Administrator.
23
‘‘(C) T
ERMINATION OF WAIVERS
.—A waiver
24
granted under subparagraph (A) shall terminate
25
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