I
111th CONGRESS
2d Session
H. R. 5757
IN THE HOUSE OF REPRESENTATIVES
July 15, 2010
Mr. Fortenberry introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to extend and modify the credits for alcohol used as a fuel, and for other purposes.
Short title
This Act may be cited as the
Renewable Fuels for America’s Future
Act of 2010
.
Reduction in credit for fuel required to meet renewable fuel obligation
In general
Subsection (d) of section 40 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Alcohol required to meet renewable fuel obligation not taken into account
In general
Alcohol used to meet the renewable fuel obligation applicable to the taxpayer shall not be taken into account for purposes of determining a credit under this section.
Renewable fuel obligation
For purposes of subparagraph (A), the term renewable fuel obligation means the renewable fuel obligation determined under section 211(o)(3) of the Clean Air Act (42 U.S.C. 7545(o)(3)).
Use of RINs
Determinations for purposes of subparagraph (A) shall be made through the use of renewable identification numbers received from the taxpayer by the Administrator of the Environmental Protection Agency pursuant to regulations issued under section 211(o) of such Act.
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Excise tax credit
Subsection (b) of section 6426 of such Code, as amended by section 4 of this Act, is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:
Alcohol required to meet renewable fuel obligation not taken into account
In general
Alcohol used to meet the renewable fuel obligation applicable to the taxpayer shall not be taken into account for purposes of determining a credit under this subsection.
Renewable fuel obligation
For purposes of subparagraph (A), the term renewable fuel obligation means the renewable fuel obligation determined under section 211(o)(3) of the Clean Air Act (42 U.S.C. 7545(o)(3)).
Use of RINs
Determinations for purposes of subparagraph (A) shall be made through the use of renewable identification numbers received from the taxpayer by the Administrator of the Environmental Protection Agency pursuant to regulations issued under section 211(o) of such Act.
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Effective date
The amendments made by this section shall apply to fuel produced or sold after December 31, 2010.
Extension of income tax credit for alcohol used as fuel
In general
Paragraph (1) of section 40(e) of the Internal Revenue Code of 1986 is amended—
by striking
December 31, 2010
in subparagraph (A) and inserting
December 31, 2015
, and
by striking
January 1, 2013
in subparagraph (B) and inserting January
1, 2016
.
Cellulosic biofuel
Subparagraph (H) of section 40(b)(6) of such Code is
amended by striking January 1, 2013
and inserting January
1, 2016
.
Reduced amount for ethanol blenders
Paragraph (2) of section 40(h) of such Code
is amended by striking 2010
and inserting
2015
.
Effective date
The amendments made by this section shall take effect on the date of the enactment of this Act.
Extension of excise tax credit for alcohol used as fuel
In general
Paragraph (6) of
section 6426(b) of the Internal Revenue Code of 1986 is amended by striking
December 31, 2010
and inserting December 31,
2015
.
Effective date
The amendment made by this section shall take effect on the date of the enactment of this Act.
Extension of additional duties on ethanol
Headings 9901.00.50 and 9901.00.52 of the
Harmonized Tariff Schedule of the United States are each amended in the
effective period column by striking 1/1/2011
and inserting
1/1/2016
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Ensuring the availability of dual fueled automobiles and light duty trucks
In general
Chapter 329 of title 49, United States Code, is amended by inserting after section 32902 the following:
Requirement to manufacture dual fueled automobiles and light duty trucks
In general
For each model year listed in the following table, each manufacturer shall ensure that the percentage of automobiles and light duty trucks manufactured by the manufacturer for sale in the United States that are dual fueled automobiles and light duty trucks is not less than the percentage set forth for that model year in the following table:
| Model Year | Percentage |
| Model years 2012 and 2013 | 50 percent |
| Model year 2014 and each subsequent model year | 90 percent. |
Exception
Subsection (a) shall not apply to automobiles or light duty trucks that operate only on electricity.
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Clerical 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:
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Rulemaking
Not later than 1 year after the date of the enactment of this section, the Secretary of Transportation shall prescribe regulations to carry out the amendments made by this section.
Blender pump promotion
Blender Pump grant program
Definitions
In this subsection:
Blender pump
The term blender pump means an automotive fuel dispensing pump capable of dispensing at least 3 different blends of gasoline and ethanol, as selected by the pump operator, including blends ranging from 0 percent ethanol to 85 percent denatured ethanol, as determined by the Secretary.
E–85 fuel
The term E–85 fuel means a blend of gasoline approximately 85 percent of the content of which is ethanol.
Ethanol fuel blend
The term ethanol fuel blend means a blend of gasoline and ethanol, with a minimum of 0 percent and maximum of 85 percent of the content of which is denatured ethanol.
Secretary
The term Secretary means the Secretary of Energy.
Grants
The Secretary shall make grants under this subsection to eligible facilities (as determined by the Secretary) to pay the Federal share of—
installing blender pump fuel infrastructure, including infrastructure necessary—
for the direct retail sale of ethanol fuel blends (including E–85 fuel), including blender pumps and storage tanks; and
to directly market ethanol fuel blends (including E–85 fuel) to gas retailers, including inline blending equipment, pumps, storage tanks, and loadout equipment; and
providing subgrants to direct retailers of ethanol fuel blends (including E–85 fuel) for the purpose of installing fuel infrastructure for the direct retail sale of ethanol fuel blends (including E–85 fuel), including blender pumps and storage tanks.
Federal share
The Federal share of the cost of a project carried out under this subsection shall be 50 percent of the total cost of the project.
Authorization of appropriations
There are authorized to be appropriated to the Secretary to carry out this subsection, to remain available until expended—
$50,000,000 for fiscal year 2011;
$100,000,000 for fiscal year 2012;
$200,000,000 for fiscal year 2013;
$300,000,000 for fiscal year 2014; and
$350,000,000 for fiscal year 2015.
Installation of blender pumps by major fuel distributors 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:
Installation of blender pumps by major fuel distributors at owned stations and branded stations
Definitions
In this paragraph:
E–85 fuel
The term E–85 fuel means a blend of gasoline approximately 85 percent of the content of which is ethanol.
Ethanol fuel blend
The term ethanol fuel blend means a blend of gasoline and ethanol, with a minimum of 0 percent and maximum of 85 percent of the content of which is denatured ethanol.
Major fuel distributor
In general
The term major fuel distributor means any person that owns a refinery and directly markets the output of a refinery.
Exclusion
The term major fuel distributor does not include any person that owns less than 50 retail fueling stations.
Secretary
The term Secretary means the Secretary of Energy, acting in consultation with the Administrator and the Secretary of Agriculture.
Regulations
The Secretary shall promulgate regulations to ensure that each major fuel distributor that sells or introduces gasoline into commerce in the United States through majority-owned stations or branded stations installs or otherwise makes available 1 or more blender pumps that dispense E–85 fuel and ethanol fuel blends (including any other equipment necessary, such as tanks, to ensure that the pumps function properly) for a period of not less than 5 years at not less than the applicable percentage of the majority-owned stations and the branded stations of the major fuel distributor specified in subparagraph (C).
Applicable percentage
For the purpose of subparagraph (B), the applicable percentage of the majority-owned stations and the branded stations shall be determined in accordance with the following table:
| Applicable percentage of majority-owned stations and branded stations | |
| Calendar year: | Percent: |
| 2011 | 10 |
| 2013 | 20 |
| 2015 | 35 |
| 2017 and each calendar year thereafter | 50. |
Geographic distribution
In general
Subject to clause (ii), in promulgating regulations under subparagraph (B), the Secretary shall ensure that each major fuel distributor described in that subparagraph installs or otherwise makes available 1 or more blender pumps that dispense E–85 fuel and ethanol fuel blends at not less than a minimum percentage (specified in the regulations) of the majority-owned stations and the branded stations of the major fuel distributors in each State.
Requirement
In specifying the minimum percentage under clause (i), the Secretary shall ensure that each major fuel distributor installs or otherwise makes available 1 or more blender pumps described in that clause in each State in which the major fuel distributor operates.
Financial responsibility
In promulgating regulations under subparagraph (B), the Secretary shall ensure that each major fuel distributor described in that subparagraph assumes full financial responsibility for the costs of installing or otherwise making available the blender pumps described in that subparagraph and any other equipment necessary (including tanks) to ensure that the pumps function properly.
Production credits for exceeding blender pumps installation requirement
Earning and period for applying credits
If the percentage of the majority-owned stations and the branded stations of a major fuel distributor at which the major fuel distributor installs blender pumps in a particular calendar year exceeds the percentage required under subparagraph (C), the major fuel distributor shall earn 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.
Trading credits
Subject to clause (iii), a major fuel distributor that has earned credits under clause (i) may sell the credits to another major fuel distributor to enable the purchaser to meet the requirement under subparagraph (C).
Exception
A major fuel distributor may not use credits purchased under clause (ii) to fulfill the geographic distribution requirement in subparagraph (D).
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