II
109th CONGRESS
1st Session
S. 1772
IN THE SENATE OF THE UNITED STATES
September 26, 2005
Mr. Inhofe (for himself, Mr. DeMint, Ms. Murkowski, Mr. Voinovich, Mr. Isakson, Mr. Thune, and Mr. Bond) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works
A BILL
To streamline the refinery permitting process, and for other purposes.
Short title
Short title
This Act may be cited as the Gas Petroleum Refiner Improvement and Community
Empowerment Act
or the Gas PRICE
Act
.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Definitions.
TITLE I—Economic development assistance to encourage petroleum-based refinery activity on BRAC property
Sec. 101. Economic development assistance to encourage petroleum-based refinery activity on BRAC property.
TITLE II—Refinery permitting process
Sec. 201. Streamlining of refinery permitting process.
Sec. 202. Authorization of appropriations.
TITLE III—Efficiency
Sec. 301. Efficiency.
TITLE IV—Fuel emergency waivers and boutique fuel reductions
Sec. 401. Fuel emergency waivers.
Sec. 402. Boutique fuel reductions.
TITLE V—Future fuels
Sec. 501. Future fuels.
Definitions
In this Act:
Administrator
The term Administrator means the Administrator of the Environmental Protection Agency.
Indian tribe
The term Indian tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).
Permit
The term permit means any permit, license, approval, variance, or other form of authorization that a refiner is required to obtain under any Federal, State, or Indian tribal law.
Refiner
The term refiner means a person that—
owns or operates a refinery; or
seeks to become an owner or operator of a refinery.
Refinery
In general
The term refinery means a facility at which crude oil is refined into transportation fuel or other petroleum products.
Inclusion
The term refinery includes a refinery expansion.
Refinery expansion
The term refinery expansion means a physical change in a refinery that results in an increase in the capacity of the refinery.
Refinery permitting agreement
The term refinery permitting agreement means an agreement entered into between the Administrator and a State or Indian tribe under section 201.
Refinery project
The term refinery project means a project for—
acquisition or development of a base realignment and closure site for use for a petroleum refinery; or
acquisition, development, rehabilitation, expansion, or improvement of petroleum refining operations on a base realignment and closure site or in a community affected by a base realignment and closure site.
Secretary
The term Secretary means the Secretary of Commerce.
State
The term State means—
a State;
the District of Columbia;
the Commonwealth of Puerto Rico; and
any other territory or possession of the United States.
Economic development assistance to encourage petroleum-based refinery activity on BRAC property
Economic development assistance to encourage petroleum-based refinery activity on BRAC property
Priority
Notwithstanding section 206 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3146), in awarding funds made available to carry out section 209(c)(1) of that Act (42 U.S.C. 3149(c)(1)) pursuant to section 702 of that Act (42 U.S.C. 3232), the Secretary and the Economic Development Administration shall give priority to refinery projects.
Federal share
Except as provided in subsection (c)(3)(B) and notwithstanding the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.), the Federal share of a refinery project shall be 80 percent of the project cost.
Additional award
In general
The Secretary shall make an additional award in connection with a grant made to a recipient for a refinery project.
Amount
The amount of an additional award shall be 10 percent of the amount of the grant for the refinery project.
Use
An additional award under this subsection shall be used—
to carry out any eligible purpose under the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.);
notwithstanding section 204 of that Act (42 U.S.C. 3144), to pay up to 100 percent of the cost of an eligible project or activity under that Act; or
to meet the non-Federal share requirements of that Act or any other Act.
Non-Federal source
For the purpose of paragraph (3)(C), an additional award shall be treated as funds from a non-Federal source.
Funding
The Secretary shall use to carry out this subsection any amounts made available for economic development assistance programs or under section 702 of that Act (42 U.S.C. 3232).
Refinery permitting process
Streamlining of refinery permitting process
In General
At the request of the Governor of a State or the governing body of an Indian tribe, the Administrator shall enter into a refinery permitting agreement with the State or Indian tribe under which the process for obtaining all permits necessary for the construction and operation of a refinery shall be streamlined using a systematic interdisciplinary multimedia approach as provided in this title.
Authority of Administrator
Under a refinery permitting agreement—
the Administrator shall have authority, as applicable and necessary, to—
accept from a refiner a consolidated application for all permits that the refiner is required to obtain to construct and operate a refinery;
establish a schedule under which each Federal, State, or Indian tribal government agency that is required to make any determination to authorize the issuance of a permit shall—
concurrently consider, to the maximum extent practicable, each determination to be made; and
complete each step in the permitting process; and
issue a consolidated permit that combines all permits that the refiner is required to obtain; and
the Administrator shall provide to State and Indian tribal government agencies—
financial assistance in such amounts as the agencies reasonably require to hire such additional personnel as are necessary to enable the government agencies to comply with the applicable schedule established under paragraph (1)(B); and
technical, legal, and other assistance in complying with the refinery permitting agreement.
Agreement by the State
Under a refinery permitting agreement, a State or governing body of an Indian tribe shall agree that—
the Administrator shall have each of the authorities described in subsection (b); and
each State or Indian tribal government agency shall—
make such structural and operational changes in the agencies as are necessary to enable the agencies to carry out consolidated project-wide permit reviews concurrently and in coordination with the Environmental Protection Agency and other Federal agencies; and
comply, to the maximum extent practicable, with the applicable schedule established under subsection (b)(1)(B).
Interdisciplinary approach
In general
The Administrator and a State or governing body of an Indian tribe shall incorporate an interdisciplinary approach, to the maximum extent practicable, in the development, review, and approval of refinery permits subject to this title.
Options
Among other options, the interdisciplinary approach may include use of—
environmental management practices; and
third party contractors.
Deadlines
New refineries
In the case of a consolidated permit for the construction of a new refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than—
270 days after the date of the receipt of the application for the consolidated permit; or
on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 90 days after the expiration of the deadline established under subparagraph (A).
Expansion of existing refineries
In the case of a consolidated permit for the expansion of an existing refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than—
90 days after the date of the receipt of the application for the consolidated permit; or
on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 30 days after the expiration of the deadline established under subparagraph (A).
Federal agencies
Each Federal agency that is required to make any determination to authorize the issuance of a permit shall comply with the applicable schedule established under subsection (b)(1)(B).
Judicial review
Any civil action for review of any determination of any Federal, State, or Indian tribal government agency in a permitting process conducted under a refinery permitting agreement brought by any person or entity shall be brought exclusively in the United States district court for the district in which the refinery is located or proposed to be located.
Efficient permit review
In order to reduce the duplication of procedures, the Administrator shall use State permitting and monitoring procedures to satisfy substantially similar Federal requirements under this title.
Severability
If 1 or more permits that are required for the construction or operation of a refinery are not approved on or before any deadline established under subsection (e), the Administrator may issue a consolidated permit that combines all other permits that the refiner is required to obtain other than any permits that are not approved.
Savings
Nothing in this section affects the operation or implementation of otherwise applicable law regarding permits necessary for the construction and operation of a refinery.
Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this title.
Efficiency
Efficiency
Methane reduction projects
In general
Not later than 180 days after the date of enactment of this Act, the Administrator shall solicit applications from eligible entities, as determined by the Administrator, for grants under the Natural Gas STAR Program under the Environmental Protection Agency to pay the Federal share of the cost of projects relating to the reduction of methane emissions in the oil and gas industries.
Project inclusions
To receive a grant under paragraph (1), the application of the eligible entity shall include—
an identification of 1 or more technologies used to achieve a reduction in the emission of methane; and
an analysis of the cost-effectiveness of a technology described in subparagraph (A).
Limitation
A grant to an eligible entity under this subsection shall not exceed $50,000.
Federal share
The Federal share of the cost of a project under this subsection shall not exceed 50 percent.
Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $1,000,000 for the period of fiscal years 2006 through 2010.
Efficiency promotion workshops
In general
The Administrator, in conjunction with the Interstate Oil and Gas Compact Commission, shall conduct a series of technical workshops to provide information to officials in oil- and gas-producing States relating to methane emission reduction techniques.
Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $1,000,000 for the period of fiscal years 2006 through 2010.
Fuel emergency waivers and boutique fuel reductions
Fuel emergency waivers
Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) (as amended by section 1541 of the Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 1106)) is amended—
by redesignating the first clause (v) as clause (vi);
by redesignating the second clause (v) as clause (vii); and
by inserting after clause (iv) the following:
A State shall be held harmless and not be required to revise its State implementation plan under section 110 to account for the emissions from a waiver granted by the Administrator under clause (ii).
.
Boutique fuel reductions
Section 211(c)(4)(C)(vii) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)(vii)) (as redesignated by section 401(2)) is amended by striking subclauses (III) and (IV) and inserting the following:
The Administrator shall remove a fuel from the list published under subclause (II) if a fuel ceases to be included in a State implementation plan or if a fuel in a State implementation plan is identical to a Federal fuel formulation implemented by the Administrator and shall reduce the total number of fuels permitted to be included in a State implementation plan or revision on the list published under subclause (II) accordingly.
Subclause (I) shall not limit the authority of the Administrator to approve a control or prohibition respecting any new fuel under this paragraph in a State implementation plan or revision to a State implementation plan if the new fuel completely replaces a fuel on the list published under subclause (II).
.
Future fuels
Future fuels
EPA evaluation of Fischer-Tropsch diesel and jet fuel as an emission control strategy
In general
In cooperation with the Secretary of Energy, the Secretary of Defense, the Administrator of the Federal Aviation Administration, Secretary of Health and Human Services, and Fischer-Tropsch industry representatives, the Administrator shall—
conduct a research and demonstration program to evaluate the air quality benefits of ultra-clean Fischer-Tropsch transportation fuel, including diesel and jet fuel;
evaluate the use of ultra-clean Fischer-Tropsch transportation fuel as a mechanism for reducing engine exhaust emissions; and
submit recommendations to Congress on the most effective use and associated benefits of these ultra-clean fuel for reducing public exposure to exhaust emissions.
Guidance and technical support
The Administrator shall, to the extent necessary, issue any guidance or technical support documents that would facilitate the effective use and associated benefit of Fischer-Tropsch fuel and blends.
Requirements
The program described in paragraph (1) shall consider—
the use of neat (100 percent) Fischer-Tropsch fuel and blends with conventional crude oil-derived fuel for heavy-duty and light-duty diesel engines and the aviation sector; and
the production costs associated with domestic production of those ultra clean fuel and prices for consumers.
Reports
The Administrator shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce of the House of Representatives—
not later than October 1, 2006, an interim report on actions taken to carry out this subsection; and
not later than December 1, 2007, a final report on actions taken to carry out this subsection.
Commercial products from coal and petroleum coke-based Fischer-Tropsch process loan guarantee program
In general
Funds made available under paragraph (7) may be provided for the cost (as defined in the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)) of loan guarantees to carry out domestic coal and petroleum coke-based Fischer-Tropsch commercial demonstration projects for the production of diesel and jet transportation fuel.
Demonstration projects
In general
Subject to paragraph (5), the Administrator, in consultation with the Secretary of the Treasury and Secretary of Energy, shall issue loan guarantees under this subsection to carry out not more than 2 projects to commercially demonstrate the feasibility and viability of converting coal and petroleum coke, a refinery byproduct, into ultra-clean Fischer-Tropsch diesel or jet fuel, including—
1 project to convert coal into ultra-clean Fischer-Tropsch transportation fuel; and
1 project to convert a blend of coal and petroleum coke into ultra-clean Fischer-Tropsch transportation fuel.
Design capacity
Each project shall have a design capacity to produce at least 100,000,000 gallons of Fischer-Tropsch diesel or jet fuel each year.
Applicant assurances
An applicant for a loan guarantee under this subsection shall provide assurances, satisfactory to the Administrator, that—
the recipient has demonstrated the Fischer-Tropsch process of the applicant through the operation of a domestic continuous process facility with a cumulative output of at least 50,000 gallons of diesel or jet fuel;
the demonstration project—
has been subject to a full technical review;
is covered by adequate production volume guarantees; and
with the loan guarantee, is economically viable within the project life; and
there is a reasonable assurance of repayment of the guaranteed loan.
Limitations
Maximum guarantee
Except as provided in subparagraph (B), a loan guarantee under this subsection may be issued for up to 80 percent of the estimated cost of a project, but may not exceed $750,000,000 for a project.
Additional guarantees
In general
The Administrator may issue additional loan guarantees for a project to cover up to 80 percent of the excess of actual project cost over estimated project cost but not to exceed 15 percent of the amount of the original guarantee.
Principal and interest
Subject to subparagraph (A), the Administrator shall guarantee 100 percent of the principal and interest of a loan guarantee made under subparagraph (A).
Insufficient amounts
If the amount made available to carry out this subsection is insufficient to allow the Administrator to make loan guarantees for the 2 projects described in paragraph (2), the Administrator shall issue loan guarantees for 1 qualifying project under this subsection based on the criteria established under paragraph (3), with the priority given to a coal-based project.
Approval
An application for a loan guarantee under this subsection shall be approved or disapproved by the Administrator not later than 90 days after the application is received by the Administrator.
Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this subsection.