S. 1324Senate110th Congress (2007-2009)In Committee

National Low-Carbon Fuel Standard Act of 2007

A bill to amend the Clean Air Act to reduce greenhouse gas emissions from transportation fuel sold in the United States.

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Environment and Public Works.

Environment and Public Works Committee

May 7, 2007

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SenateIntro Referral

Introduced in Senate

May 7, 2007

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S5660)

May 7, 2007

SenateIntro Referral

Read twice and referred to the Committee on Environment and Public Works.

Environment and Public Works Committee

May 7, 2007

Floor Debate

4 members

What members said about S. 1324 on the floor

4 Democrats

Sen. Daniel K. AkakaD-HI · May 7, 2007

Mr. President, today I introduce the Disabled Veterans Insurance Improvement Act of 2007. The purpose of this legislation is to make certain improvements in the insurance programs available to…

Mr. President, today I introduce the Disabled Veterans Insurance Improvement Act of 2007.

The purpose of this legislation is to make certain improvements in the insurance programs available to service-connected disabled veterans. It has two main components.

First, this legislation would increase the maximum amount of Veterans Mortgage Life Insurance, VMLI, that a service-connected disabled veteran may purchase from the current maximum of $90,000 to $200,000. The VMLI program was established in 1971 and is available to those service-connected disabled veterans who have received specially adapted housing grants from VA. In the event of the veteran's death, the veteran's family is protected because the Department of Veterans Affairs will pay the balance of the mortgage owed up to the maximum amount of insurance purchased.

The need for this increase is obvious in today's housing market where, during February, the median sale price of a home in the United States was estimated by the Bureau of Census to be $250,000. My legislation would ensure that this important benefit, which helps secure the financial future of many veterans and their families, keeps pace with changes in the economy.

My bill would also establish a new program of insurance for service- connected disabled veterans that would provide up to a maximum of $50,000 in level premium term life insurance coverage. This new program would be available to service-connected disabled veterans who are less than 65 years of age at the time of application.

Under the new program, eligible service-connected veterans would be able to purchase, in increments of $10,000, up to a maximum amount of $50,000 in insurance. Importantly, unlike existing life insurance programs, the premium rates for this program would be based on the 2001 Commissioners Standard Ordinary Basic Table of Mortality rather than the 1941 mortality table that the Service-Disabled Veterans Insurance, S-DVI, program is based upon.

When an insured veteran reaches age 70, two things would occur under this new program of insurance. First, the amount of insurance would be reduced to 20 percent of the amount of insurance in force prior to the veteran's 70th birthday. Second, the veteran would cease making premium payments. This means that during those years where the family's financial obligations would be commensurately higher because of children, mortgages, and the potential impact of any loss of income, the veteran's family would be able to purchase the maximum amount of term life insurance. At age 70, when resources are likely to be most restricted and the need for substantial insurance to take care of a family's needs after the veteran's death have lessened, the veteran would no longer have an obligation to continue to pay any insurance premiums.

My proposal provides that application for this insurance would need to be submitted by an eligible veteran within 2 years from the date on which VA establishes a service-connected disability to exist but not later than 10 years after a veteran's release from active duty. It would further provide that during the first year of the program, any eligible veteran who is presently insured under the S-DVI program could convert that insurance to a policy under this new program.

Both of the proposals contained in the legislation I am introducing today are compatible with the provisions of S. 643, the proposed Disabled Veterans Insurance Act of 2007, which I introduced on February 15 of this year.

I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, I rise today with my colleague from Hawaii, Senator Daniel Inouye, to introduce legislation to convert a temporary judgeship for the U.S. District Court for the District of Hawaii to a permanent position.

There are currently 3 permanent Federal judgeships and one temporary Federal judgeship in the U.S. District Court, District of Hawaii. The Judicial Improvement Act of 1990, P.L. 101-650 created the temporary position and mandates that the first vacancy occurring in Hawaii after October 2004 cannot be filled. The District of Hawaii will be left with only 3 Federal judge positions upon a judge vacating his or her position. The loss of a judgeship will severely impact Hawaii's judicial system.

In March 2007, the Judicial Conference recommended that Congress convert 5 temporary judgeships, one of which is in the District of Hawaii, to permanent status. Their recommendation is largely based on the significant increase in weighted filings that would occur if a judgeship is lost. The Conference projects that the current weighted filing of 380 per judgeship would climb to 507 per judgeship, which is 18 percent above the Conference standard, should the District of Hawaii lose a judgeship.

In addition, the Conference reported that the median time from filing to disposition for criminal cases in Hawaii has continued to increase from 1999 to 2005, making Hawaii's case processing times the second slowest in the nation. Since 2001, the District Court of Hawaii has completed an average of 50 trials per year, significantly less than the national average. Although Hawaii has 4 judgeships, 2 are senior judges

who only handle a small number of civil cases. The limited assistance provided by these senior judges is likely to decline further in the near future. These judges are not able to retire due to the constraints put forth by the loss of the temporary judgeship seat, should one of the current judges decide to leave. Furthermore, receiving assistance from visiting judges is made difficult by the high cost of travel to Hawaii. For these, and many other reasons, the Judicial Council of the Ninth Circuit supports the Judicial Conference's recommendation to convert this temporary judgeship to a permanent position.

I share the concern of many in Hawaii's legal community that the lack of a fourth permanent position will delay the timely issuance of justice in matters pending before the U.S. District Court, District of Hawaii. This is a disservice to all. The economic impact of extending trials and prolonging time spent in jail will burden Hawaii's taxpayers. Moreover, the lack of timely judicial review will have negative social impacts by prolonging the disruption in individuals' families and lives. The bill we introduce today would ensure 4 Federal judgeships remain active in Hawaii to address the needs of the District Court of Hawaii and the people of Hawaii.

Sen. Dianne FeinsteinD-CA · May 7, 2007

Mr. President, today I am pleased to join with Senators Durbin and Kennedy in introducing the Firearms by Foreign Convicts Clarification Act. This bill would close a loophole that exists in current law, by stating that people convicted of foreign felonies and domestic violence, just like people convicted of similar American crimes, cannot possess firearms in the United States.

I imagine that most Americans may be surprised, as I was, to learn that foreign felons actually have greater gun rights than American citizens who have been convicted of felonies and domestic violence in our own courts. Our country has been trying to keep guns out of the hands of criminals for at least the last 40 years, since the landmark Gun Control Act of 1968. Unfortunately, in 2005 the Supreme Court created a gaping loophole in this longstanding felon-in-possession law.

That happened in the case of Small v. United States, where a majority of the Court essentially held that foreign convictions don't count for the purpose of being a felon in possession of a firearm. This was not because the Justices somehow thought that exempting foreign convictions from our felon-in-possession laws was wise public policy. In fact, as Justice Thomas noted in his dissent, ``the majority's interpretation permits those convicted overseas of murder, rape, assault, kidnapping, terrorism and other dangerous crimes to possess firearms freely in the United States.''

The problem in Small was that a majority of the Court felt that our 1968 law had not been written clearly enough. Although Congress had said that a person convicted of a felony ``in any court'' could not possess a firearm, the majority said that this phrase, ``any court,'' might have been meant to apply only to ``any American court'' rather than what the legislation actually said--``any court.''

The Federal felon-in-possession law had already been applied to foreign felons in several prosecutions since 1968, but the Court found unpersuasive both this history and the statute's express language. Dissenting Justices Thomas, Scalia and Kennedy accused the majority of creating a novel canon of legal construction that will ``wreak havoc'' with established rules of extraterritorial construction. But whatever we may think of the Court's analysis, there is no doubt that the Small decision is now the law of the land. And if we want to close this legal loophole, it is clear that we need to pass some clarifying legislation. The bill I introduce today would do just that.

Under this bill, section 921 of Title 18, the definitions section, would be amended to state clearly that ``[t]he term `any court' includes any Federal, State, or foreign court.'' Similar changes would be made in other sections of the Gun Control Act, where there are references to ``state offenses'' or ``offenses under state law, the bill would expand these terms to include convictions of foreign offenses and offenses under foreign law.

In other words, the bill would make clear that if someone is convicted in a foreign court of an offense that would have disqualified him from possessing a gun if that conviction had been handed

down in the U.S., the same laws relating to gun possession will be applied. The only exception will be if there is reason to think the conviction entered by the foreign jurisdiction is somehow invalid.

In that situation, this bill would create an exemption, allowing a person convicted in a foreign jurisdiction to challenge its validity. Under the bill, a foreign conviction will not constitute a ``conviction'' for purposes of the felon-in-possession laws, if the foreign conviction either (1) resulted from a denial of fundamental fairness that would violate due process if committed in the United States, or (2) if the conduct on which the foreign conviction was based would be legal if committed in the United States.

I expect that these circumstances will be fairly rare, but the bill does take them into account and will provide a complete defense to anyone with an invalid foreign conviction. And in any event, it is clear that we should not keep in place a policy in which the tail wags the dog. The current state of the law is that we essentially treat every foreign conviction as invalid. And that is simply illogical.

An example of why we need to fix this law occurred in 2001, when U.S. agents with bulletproof vests raided the New York hotel room of suspect Rohan Ingram. Ingram was found with 13 firearms and had an extensive criminal background, including at least 18 convictions for crimes such as assault and use of firearms during crimes. Law enforcement had flagged him as ``armed and dangerous.'' But because all of his convictions had occurred in foreign courts, his felon-in-possession charge was eventually thrown out of court. That is simply not a tolerable state of affairs in a post- 9/11 world.

Particularly in these times, America cannot continue to give foreign- convicted murderers, rapists and even terrorists an unlimited right to buy firearms in the United States, including even assault weapons that they might try to send to colleagues abroad, or use to develop a cache of weapons to use to kill our citizens within the United States. American citizens convicted of identical crimes at home are denied the ability to buy and possess such firearms, and the time has come to fix this loophole so that foreign convicts are placed in the same category.

I urge my colleagues to support this legislation. I ask unanimous consent that the text of the bill be printed in the Record.

Sen. Barack ObamaD-IL · May 7, 2007

Mr. President, we heard from a panel of top climate change experts from around the world earlier this year that global warming is a certainty and that most of the temperature increase is very likely due to rising greenhouse gas concentrations. Reducing America's dependence on oil should be one of our top priorities, but any policy that affects our production and consumption of fuel must also address the pressing problem of global warming. Because the oil used in the U.S. transportation sector accounts for about one-third of our nation's emissions of greenhouse gases, we must adopt a policy that curtails these emissions in an effective manner.

Today, along with Senator Harkin, I am introducing the National Low- Carbon Fuel Standard Act of 2007, which calls for a reduction in the lifecycle greenhouse gas emissions of the transportation fuels sold in the U.S. of 5 percent in 2015 and 10 percent in 2020. These reductions can play an important role in stemming the dangerous transformation of our climate.

According to one estimate, the National Low-Carbon Fuel Standard, NLCFS, would reduce annual greenhouse gas emissions by about 180 million metric tons in 2020. This is the equivalent of taking over 30 million cars off the road. If enacted in conjunction with the bill I introduced earlier this year to raise fuel efficiency standards, the NLCFS would reduce greenhouse gas emissions by about 530 million metric tons in 2020, the equivalent of taking over 50 million cars off the road.

The effect on our oil imports would also be dramatic. By making greater use of home-grown, renewable fuels, the NLCFS could reduce the annual consumption of gasoline derived from foreign oil imports by about 30 billion gallons in 2020.

The NLCFS will greatly expand the market for domestic renewable fuels such as corn-based ethanol, cellulosic ethanol, and biodiesel. By one estimate, the NLCFS will create a market for over 40 billion gallons of biofuels by 2020. To provide near-term demand certainty for renewable fuel producers, the bill expands the Renewable Fuel Standard established in the Energy Policy Act of 2005 to require 15 billion gallons of renewable fuel by 2012.

The bill also contains a minimum requirement for fuels with lifecycle greenhouse gas emissions that are 50 and 75 percent lower than gasoline. This requirement signals to investors that there will be a market for advanced fuels with ultra-low carbon emissions, but still allows significant leeway for fuel blenders to choose the optimal mix of fuels to meet their overall greenhouse gas emissions targets.

Because the NLCFS will encourage a rapid expansion of our domestic renewable fuels production capacity, the bill contains provisions that protect sensitive areas like national wildlife refuges, national parks, old-growth forests, national grasslands, and national forests. The bill calls for an assessment of the impacts of the expansion compared to the business-as-usual scenario of continued reliance on petroleum-based transportation fuels, and the development of standards by 2012 to protect air, land, and water quality. This approach strikes a balance between the need to rapidly expand our domestic renewable fuel production capacity and the need to ensure sustainability and environmental protection. I urge my colleagues to support the National Low-Carbon Fuel Standard Act.

Sen. Barack ObamaD-IL · May 7, 2007

Sen. Daniel K. InouyeD-HI · May 7, 2007

Mr. President, I rise today to support this bill addressing the need for a fourth permanent judgeship for the District of Hawaii. Hawaii currently has four active District Court judges. However, if…

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Introduced in SenateIssued May 7, 2007

110th CONGRESS

1st Session

S.1324

IN THE SENATE OF THE UNITED STATES

May 7, 2007

Mr. Reid (for Mr. Obama (for himself and Mr. Harkin)) 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 reduce greenhouse gas emissions from transportation fuel sold in the United States.

Short title

This Act may be cited as the National Low-Carbon Fuel Standard Act of 2007.

Findings

Congress finds that—

(1)

the dependence of the United States on imported oil imposes tremendous burdens on the economy, foreign policy, and military of the United States;

(2)

according to the Energy Information Administration, 60 percent of the crude oil and petroleum products consumed in the United States are imported;

(3)

at a cost of approximately $75 per barrel of oil, people in the United States remit more than $600,000 per minute to other countries for crude oil and petroleum imports;

(4)

a significant percentage of those imports originate in countries controlled by regimes that are unstable or openly hostile to the interests of the United States;

(5)

dependence on oil production from those countries contributes to the volatility of domestic and global markets and corresponding increase in oil prices paid by consumers in the United States (commonly known as a risk premium);

(6)

the Energy Information Administration projects that the total petroleum demand in the United States will increase by 23 percent between 2006 and 2026, while domestic crude oil production is expected to decrease by 11 percent, resulting in an anticipated 28-percent increase in petroleum imports;

(7)

absent significant action, the United States will become more vulnerable to oil price increases and more dependent on foreign oil;

(8)

2/3 of all domestic oil use occurs in the transportation sector, which is 97 percent reliant on petroleum-based fuels;

(9)

passenger vehicles, including light trucks under 10,000 pounds gross vehicle weight, represent more than 60 percent of the oil used in the transportation sector;

(10)

the oil used in the transportation sector accounts for approximately 1/3 of the emissions in the United States of the greenhouse gases that cause global warming;

(11)

to avoid catastrophic global warming, the United States should take decisive action, in conjunction with other countries, to reduce greenhouse gas emissions by 60 to 80 percent from 1990 levels by 2050;

(12)

transitioning the transportation sector in the United States to a more efficient use of low-carbon petroleum alternatives is essential both to increasing domestic energy security and reducing global warming pollution, but that transition must be accomplished while avoiding adverse impacts on the environment; and

(13)

it is urgent, essential, and feasible to reduce emissions of greenhouse gases, enhance national security by reducing dependence on oil, and promote economic well-being without sacrificing land, water, and air quality by enacting energy policies that motivate environmental performance.

Renewable fuel standard

The table contained in section 211(o)(2)(B)(i) of the Clean Air Act (42 U.S.C. 7545(o)(2)(B)(i)) is amended—

(1)

in the row expressing applicable volume of renewable fuel (in billions of gallons) for calendar year 2009, by striking 6.1 and inserting 12.0;

(2)

in the row expressing applicable volume of renewable fuel (in billions of gallons) for calendar year 2010, by striking 6.8 and inserting 13.0;

(3)

in the row expressing applicable volume of renewable fuel (in billions of gallons) for calendar year 2011, by striking 7.4 and inserting 14.0; and

(4)

in the row expressing applicable volume of renewable fuel (in billions of gallons) for calendar year 2012, by striking 7.5 and inserting 15.0.

National Low-carbon fuel standard

(a)

Definitions

Section 241 of the Clean Air Act (42 U.S.C. 7581) is amended—

(1)

by striking For purposes of this part— and inserting In this part:;

(2)

by redesignating paragraphs (1), (2), (3), (4), (5), (6), and (7) as paragraphs (12), (2), (10), (1), (4), (5), and (3), respectively, and moving those paragraphs so as to appear in numerical order;

(3)

by inserting after paragraph (5) (as redesignated by paragraph (2)) the following:

(6)

Fuel emission baseline

The term fuel emission baseline means the average lifecycle greenhouse gas emissions per unit of energy of the average of conventional transportation fuels in commerce in the United States during the period of calendar years 2005 through 2007.

(7)

Greenhouse gas

The term greenhouse gas means any of—

(A)

carbon dioxide;

(B)

methane;

(C)

nitrous oxide;

(D)

hydrofluorocarbons;

(E)

perfluorocarbons; and

(F)

sulfur hexafluoride.

(8)

Lifecycle greenhouse gas emissions

The term lifecycle greenhouse gas emissions means, with respect to a fuel, the aggregate quantity of greenhouse gases emitted during production, feedstock extraction, distribution, and use of the fuel, as determined by the Administrator.

(9)

Low-carbon fuel

(A)

In general

The term low-carbon fuel means fuel produced, to the maximum extent practicable, in the United States—

(i)

that meets the requirements of an appropriate American Society for Testing and Materials standard; and

(ii)

the lifecycle greenhouse gas emissions of which are lower than the fuel emission baseline, as determined by the Administrator.

(B)

Exclusions

The term low-carbon fuel does not include fuel produced from biomass derived from—

(i)

designated national interest land (such as land included in a national wildlife refuge, national park, national monument, national forest, or national grassland); or

(ii)

any—

(I)

old-growth forest;

(II)

roadless area within a national forest;

(III)

wilderness study area;

(IV)

protected native grassland; or

(V)

lawfully designated intact, rare, threatened, or endangered ecosystem.

; and

(4)

by inserting after paragraph (10) (as redesignated by paragraph (2)) the following:

(11)

Obligated party

(A)

In general

The term obligated party means an obligated party as described in section 80.1106 of title 40, Code of Federal Regulations (or a successor regulation).

(B)

Related term

The term any and all of the products, when used with respect to an obligated party, means diesel and aviation fuel to be included in the volume used to calculate the requirements applicable to the obligated party under section 250.

(b)

National low-carbon fuel standard

Part C of title II of the Clean Air Act (42 U.S.C. 7581 et seq.) is amended—

(1)

by redesignating section 250 (42 U.S.C. 7590) as section 251; and

(2)

by inserting after section 249 (42 U.S.C. 7589) the following:

250.

National low-carbon fuel standard

(a)

In general

Not later than January 1, 2009, the Administrator shall, by regulation—

(1)

establish a fuel emission baseline based on the average lifecycle greenhouse gas emissions per unit of energy of the average of conventional transportation fuels in commerce in the United States during the period of calendar years 2005 through 2007;

(2)

identify qualifying low-carbon transportation fuels based on—

(A)

whether the lifecycle greenhouse gas emissions of a fuel are lower, per unit of energy delivered by use of a specific quantity of the fuel, than the fuel emission baseline, including the percentage greenhouse gas emission reduction provided by the fuel to the fuel emission baseline;

(B)

whether a fuel—

(i)

achieves a substantial reduction in petroleum content over the lifecycle of the fuel; and

(ii)

otherwise contributes to the energy security of the United States; and

(C)

with respect to calculation of the lifecycle greenhouse gas emissions of the fuels used in vehicles that run on electricity or a hydrogen fuel, the quantity of energy delivered by use of the fuel, which shall be determined by calculating the product obtained by multiplying—

(i)

a unit of energy delivered by use of the electricity or hydrogen fuel; and

(ii)

an adjustment factor determined by the Administrator to reflect the substantial lifecycle greenhouse gas benefits of using the electricity or hydrogen fuel, on a per-mile basis, resulting from reasonably anticipated energy efficiency of an average—

(I)

battery electric vehicle;

(II)

plug-in hybrid electric vehicle; or

(III)

hydrogen fuel cell vehicle; and

(3)

establish a low-carbon fuel certification and marketing process—

(A)

to certify fuels that qualify as low-carbon fuels under this section;

(B)

to make those certifications available to consumers; and

(C)

to label and market low-carbon fuels.

(b)

Environmental sustainability standards

Not later than January 1, 2012, the Administrator shall also identify qualifying low-carbon transportation fuels based on environmental sustainability standards established under section 211(t)(2)(B).

(c)

Requirements applicable to obligated parties

(1)

Requirements

(A)

Calendar years 2010 through 2024

Not later than January 1, 2010, the Administrator shall, by regulation, require each obligated party to reduce, through the use of low-carbon fuels and improvements in the production of conventional fuels, the average lifecycle greenhouse gas emissions per unit of energy of the aggregate quantity of fuels introduced into commerce by the obligated party to a level that is, as determined by the Administrator, to the maximum extent practicable—

(i)

by calendar year 2011, substantially equivalent to the fuel emission baseline;

(ii)

by calendar year 2015, substantially equivalent to at least 5 percent below the fuel emission baseline; and

(iii)

by calendar year 2020, substantially equivalent to at least 10 percent below the fuel emission baseline.

(B)

Calendar year 2025 and thereafter

For calendar year 2025, and by not later than each fifth calendar year thereafter, the Administrator shall, by regulation, require each obligated party to reduce the average lifecycle greenhouse gas emissions per unit of energy of the aggregate quantity of fuels introduced into commerce by the obligated party to a level that is, as determined by the Administrator, at least 13 percent below the fuel emission baseline (with respect to calendar year 2025), and at least 2 percent below the most recent percentage reduction (with respect to each fifth calendar year thereafter), unless the Administrator, in coordination with the Secretary of Agriculture and the Secretary of Energy, establishes an alternative required percentage reduction based on—

(i)

a review of the implementation of this paragraph during the period of calendar years 2010 through 2020;

(ii)

the expected annual rate of future production of low-carbon fuel, and Category I ultra-low carbon fuel and Category II ultra-low carbon fuel (as those terms are defined in subsection (p)); and

(iii)

the practicability of complying with environmental sustainability standards referred to in subsection (b).

(2)

Failure to promulgate regulations

If the Administrator does not promulgate regulations in accordance with this subsection, the average lifecycle greenhouse gas emissions of the aggregate quantity of fuel introduced by an obligated party for calendar year 2012 shall be at least 3 percent below the average lifecycle greenhouse gas emissions of gasoline in commerce in the United States during calendar year 2007.

(3)

Temporary suspension

An obligated party may apply to the Administrator to receive a temporary suspension of the requirement to comply with this subsection if the obligated party demonstrates to the satisfaction of the Administrator that events outside of the control of the obligated party could lead or have led to supply disruptions in the transportation fuel supply of the United States.

(4)

Enforcement; penalties

In carrying out this subsection, the Administrator—

(A)

shall enforce this subsection in accordance with the authority of the Administrator to enforce this Act; and

(B)

may commence a civil action and assess and collect penalties in accordance with the amounts and under the authority described in section 205.

(d)

Credits

(1)

In general

The regulations promulgated to carry out this section shall permit obligated parties to receive credits for achieving, during a calendar year, greater reductions in lifecycle greenhouse gas emissions of the fuel produced, distributed, or imported by the obligated party than are required under subsection (c).

(2)

Method of calculation

The number of credits received by an obligated party described in paragraph (1) for a calendar year shall be calculated by multiplying—

(A)

the aggregate quantity of fuel produced, distributed, or imported by the obligated party in the calendar year; and

(B)

the difference between—

(i)

the lifecycle greenhouse gas emissions of that quantity of fuel; and

(ii)

the maximum lifecycle greenhouse gas emissions of that quantity of fuel permitted for the calendar year under subsection (c).

Ultra-low carbon fuel standard

(a)

In general

Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended—

(1)

by redesignating the first subsection (r) (relating to fuel and fuel additive importers and importation) as subsection (v) and moving that subsection so as to appear at the end of the section; and

(2)

by inserting after subsection (o) the following:

(p)

Ultra-low carbon fuel standard

(1)

Definitions

In this subsection and subsection (t):

(A)

Category I ultra-low carbon fuels

(i)

In general

The term Category I ultra-low carbon fuel means fuel produced in the United States—

(I)

that meets the requirements of an appropriate American Society for Testing and Materials standard; and

(II)

the lifecycle greenhouse gas emissions of which are at least 50 percent lower than the average lifecycle greenhouse gas emissions of conventional transportation fuel, as determined by the Administrator.

(ii)

Exclusions

The term Category I ultra-low carbon fuel does not include fuel produced from biomass derived from—

(I)

designated national interest land (such as land included in a national wildlife refuge, national park, national monument, national forest, or national grassland); or

(II)

any—

(aa)

old-growth forest;

(bb)

roadless area within a national forest;

(cc)

wilderness study area;

(dd)

protected native grassland; or

(ee)

lawfully-designated intact, rare, threatened, or endangered ecosystem.

(B)

Category II ultra-low carbon fuel

(i)

In general

The term Category II ultra-low carbon fuel means any fuel produced in the United States—

(I)

that meets the requirements of an appropriate American Society for Testing and Materials standard; and

(II)

the average lifecycle greenhouse gas emissions of which are at least 75 percent lower than the average lifecycle greenhouse gas emissions of conventional transportation fuel, as determined by the Administrator.

(ii)

Exclusions

The term Category II ultra-low carbon fuel does not include fuel produced from biomass derived from—

(I)

designated national interest land (such as land included in a national wildlife refuge, national park, national monument, national forest, or national grassland); or

(II)

any—

(aa)

old-growth forest;

(bb)

roadless area within a national forest;

(cc)

wilderness study area;

(dd)

protected native grassland; or

(ee)

lawfully designated intact, rare, threatened, or endangered ecosystem.

(C)

Conventional transportation fuel

The term conventional transportation fuel means any fossil-fuel based transportation fuel used in the United States as of the date of enactment of this subsection.

(D)

Low-carbon fuel

The term low-carbon fuel has the meaning given the term in section 241.

(2)

Ultra-low carbon fuel

(A)

Regulations

(i)

In general

Not later than 3 years after the date of enactment of this subsection, the Administrator shall promulgate regulations to ensure that fuel sold or introduced into commerce in the United States (except in noncontiguous States or territories), on an annual average basis, contains at least the applicable volume of ultra-low carbon 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 obligated parties, as appropriate, to ensure that the requirements of this paragraph are met; but

(II)

shall not—

(aa)

restrict geographic areas in which low-carbon transportation fuel and ultra-low carbon fuel may be used; or

(bb)

impose any per-gallon obligation for the use of those fuels.

(B)

Applicable volume

(i)

Calendar years 2012 through 2025

For the purpose of subparagraph (A), the applicable volume of Category I ultra-low carbon fuel and Category II ultra-low carbon fuel for any of calendar years 2012 through 2025 shall be determined in accordance with the following table:

Calendar Year	Total applicable volume of Category I ultra-low carbon fuel (billions of gallons)	Total applicable volume of Category II ultra-low carbon fuel (billions of gallons)
2012	0.5	0.25
2014	1.5	0.75
2016	3.0	1.5
2018	5.0	2.5
2020	8.0	4.0
2022	11.0	6.0
2025	13.0	8.0

(ii)

Calendar year 2026 and thereafter

Subject to clause (iii), the applicable volume for calendar year 2026 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 under this subsection during the period of calendar years 2012 through 2025, including a review of—

(I)

the impact of the use of Category I ultra-low carbon fuel and Category II ultra-low carbon fuel on—

(aa)

environmental sustainability standards established under subsection (t)(2)(B);

(bb)

energy security; and

(cc)

job creation; and

(II)

the expected annual rate of future production of those fuels for use as blending components or replacements for a certain quantity of conventional fuel in the United States.

(iii)

Minimum applicable volume

For the purpose of subparagraph (A), the applicable volume for calendar year 2026 and each calendar year thereafter shall be equal to the product obtained by multiplying—

(I)

the number of gallons of conventional transportation fuel that the Administrator estimates will be sold or introduced into commerce during the calendar year; and

(II)

the ratio that—

(aa)

for the applicable volume of Category I ultra-low carbon fuel, 13,000,000,000 gallons of that fuel bears to the total number of gallons of conventional transportation fuel sold or introduced into commerce in the United States in calendar year 2025; and

(bb)

for the applicable volume of Category II ultra-low carbon fuel, 8,000,000,000 gallons of that fuel bears to the total number of gallons of conventional transportation fuel sold or introduced into commerce in the United States in calendar year 2025.

(3)

Applicable percentages

(A)

Provision of estimate of volumes of conventional fuels sales

Not later than October 31 of each of calendar years 2011 through 2025, 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 conventional fuels 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 2012 through 2025, 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 fuel obligations that would meet the requirements of paragraph (2).

(ii)

Required elements

The fuel obligations determined for a calendar year under clause (i) shall—

(I)

subject to subparagraph (C), be applicable to obligated parties, as appropriate; and

(II)

be expressed in terms of a volume percentage of conventional fuels sold or introduced into commerce in the United States.

(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 obligated party.

(4)

Credit program

(A)

In general

The regulations promulgated pursuant to paragraph (2)(A) shall provide for the generation of an appropriate quantity of credits by obligated parties that includes a quantity of Category I ultra-low carbon fuel or Category II ultra-low carbon fuel that is greater than the applicable 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)(A).

(C)

Duration of credits

A credit generated under this paragraph shall be valid—

(i)

during the calendar year in which the credit was generated; and

(ii)

for the 2-year period following that calendar year.

(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 ultra-low carbon fuel deficit is created—

(i)

achieves compliance with the fuel requirements 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 Category I ultra-low carbon fuel or Category II ultra-low carbon fuel in the conventional transportation fuel 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 the applicable ultra-low carbon 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)

Credit for cellulosic ethanol

Section 211(o)(4) of the Clean Air Act (42 U.S.C. 7545(o)(4)) is amended by inserting through calendar year 2017, before 1 gallon.

(c)

Performance standards

Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by inserting after subsection (s) the following:

(t)

Performance standards

(1)

Intensity and index numbers

Not later than 2 years after the date of enactment of this subsection, the Administrator shall establish, for fuels blended with low-carbon fuel, and Category I ultra-low carbon fuel and Category II ultra-low carbon fuel, as part of the renewable identification number program of the Environmental Protection Agency—

(A)

a carbon intensity number measured in the quantity of lifecycle greenhouse gas emissions per unit of energy provided by use of the fuel; and

(B)

a green index number representing the percentage reduction of greenhouse gas emissions achieved by the fuel as compared to the fuel emission baseline (as defined in section 241).

(2)

Environmental sustainability study

(A)

In general

Not later than 3 years after the date of enactment of this subsection, the Administrator, in conjunction with the Secretary of Agriculture and the Secretary of Energy, and based on recommendations issued by the National Academy of Sciences, the Food and Agricultural Policy Research Institute, and not more than 2 other appropriate independent research institutes, as determined by the Administrator, shall establish a methodology to assess and quantify environmental changes associated with an increase in the volume of fuels required by this section, as compared with the effects of an increase in conventional transportation fuels otherwise displaced by this section, as applicable, for the purpose of negating overall adverse environmental impacts, particularly with respect to the effects on or changes in—

(i)

land, air, and water quality, and quality of other resources, including changes resulting from production, handling, and transportation of fuel (and associated effects on public health and safety);

(ii)

land use patterns;

(iii)

the rate of deforestation, in the United States and globally;

(iv)

areas containing significant concentrations of biodiversity values (including endemism, endangered species, high species richness, and refugia), including habitats in which any alteration of the habitat would render the habitat unable to support most characteristic native species and ecological processes;

(v)

land enrolled in the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) or the wetlands reserve program established under subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.);

(vi)

the long-term capacity of the United States to produce biomass feedstocks;

(vii)

the impact on areas at risk of wildfire, including the vicinity of buildings and other areas regularly occupied by people, or of infrastructure;

(viii)

the effects on materials produced, acquired, transported, or processed that would require an exemption from otherwise applicable Federal law (including regulations);

(ix)

the conversion of nonrenewable biomass into biofuel;

(x)

the conversion of biowaste and other wastes into fuels (as compared with use of those wastes for other beneficial purposes (such as recycling postconsumer waste paper), and any potential for the generation of toxic byproducts resulting from that conversion (such as painted, treated, or pressurized wood, or wood contaminated with plastic or metals);

(xi)

designated national interest land (including land that is within the National Wildlife Refuge System, the National Park System, a National Monument, the National Wilderness Preservation System, the National Landscape Conservation System, or the National Forest System, or that is otherwise under the administrative jurisdiction of the Secretary of the Interior or Secretary of Agriculture or protected by Federal law); and

(xii)

such other matters or activities as are identified by the Administrator.

(B)

Environmental sustainability standards

Not later than January 1, 2012, the Administrator, in conjunction with the Secretary of Agriculture and the Secretary of Energy, shall, based on the methodology established under subparagraph (A), promulgate regulations to establish a set of standards to minimize, to the maximum extent practicable, the negative environmental impacts and ensure long term resource sustainability from the sourcing and production of low-carbon fuels.

(u)

State authority

If the Administrator determines that a State law (including a regulation) provides for equivalent or greater greenhouse gas emission reductions than any provision in section 250 or subsection (p) or (t) of this section, the State law shall apply in the State in lieu of the provision.

(d)

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).

(e)

Technical amendments

Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended—

(1)

in subsection (i)(4), by striking section 324 each place it appears and inserting section 325;

(2)

in subsection (k)(10), by indenting subparagraphs (E) and (F) appropriately;

(3)

in subsection (n), by striking section 219(2) and inserting section 216(2); and

(4)

in subsection (s)(1), by striking this subtitle and inserting this part.