H.R. 5757

Renewable Fuels for America's Future Act of 2010

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Contents

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.

1.

Short title

This Act may be cited as the Renewable Fuels for America’s Future Act of 2010.

2.

Reduction in credit for fuel required to meet renewable fuel obligation

(a)

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:

(8)

Alcohol required to meet renewable fuel obligation not taken into account

(A)

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.

(B)

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)).

(C)

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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(b)

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:

(6)

Alcohol required to meet renewable fuel obligation not taken into account

(A)

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.

(B)

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)).

(C)

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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(c)

Effective date

The amendments made by this section shall apply to fuel produced or sold after December 31, 2010.

3.

Extension of income tax credit for alcohol used as fuel

(a)

In general

Paragraph (1) of section 40(e) of the Internal Revenue Code of 1986 is amended—

(1)

by striking December 31, 2010 in subparagraph (A) and inserting December 31, 2015, and

(2)

by striking January 1, 2013 in subparagraph (B) and inserting January 1, 2016.

(b)

Cellulosic biofuel

Subparagraph (H) of section 40(b)(6) of such Code is amended by striking January 1, 2013 and inserting January 1, 2016.

(c)

Reduced amount for ethanol blenders

Paragraph (2) of section 40(h) of such Code is amended by striking 2010 and inserting 2015.

(d)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.

4.

Extension of excise tax credit for alcohol used as fuel

(a)

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.

(b)

Effective date

The amendment made by this section shall take effect on the date of the enactment of this Act.

5.

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.

6.

Ensuring the availability of dual fueled automobiles and light duty trucks

(a)

In general

Chapter 329 of title 49, United States Code, is amended by inserting after section 32902 the following:

32902A.

Requirement to manufacture dual fueled automobiles and light duty trucks

(a)

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 YearPercentage
Model years 2012 and 201350 percent
Model year 2014 and each subsequent model year90 percent.
(b)

Exception

Subsection (a) shall not apply to automobiles or light duty trucks that operate only on electricity.

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(b)

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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(c)

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.

7.

Blender pump promotion

(a)

Blender Pump grant program

(1)

Definitions

In this subsection:

(A)

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.

(B)

E–85 fuel

The term E–85 fuel means a blend of gasoline approximately 85 percent of the content of which is ethanol.

(C)

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.

(D)

Secretary

The term Secretary means the Secretary of Energy.

(2)

Grants

The Secretary shall make grants under this subsection to eligible facilities (as determined by the Secretary) to pay the Federal share of—

(A)

installing blender pump fuel infrastructure, including infrastructure necessary—

(i)

for the direct retail sale of ethanol fuel blends (including E–85 fuel), including blender pumps and storage tanks; and

(ii)

to directly market ethanol fuel blends (including E–85 fuel) to gas retailers, including inline blending equipment, pumps, storage tanks, and loadout equipment; and

(B)

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.

(3)

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.

(4)

Authorization of appropriations

There are authorized to be appropriated to the Secretary to carry out this subsection, to remain available until expended—

(A)

$50,000,000 for fiscal year 2011;

(B)

$100,000,000 for fiscal year 2012;

(C)

$200,000,000 for fiscal year 2013;

(D)

$300,000,000 for fiscal year 2014; and

(E)

$350,000,000 for fiscal year 2015.

(b)

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:

(13)

Installation of blender pumps by major fuel distributors at owned stations and branded stations

(A)

Definitions

In this paragraph:

(i)

E–85 fuel

The term E–85 fuel means a blend of gasoline approximately 85 percent of the content of which is ethanol.

(ii)

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.

(iii)

Major fuel distributor

(I)

In general

The term major fuel distributor means any person that owns a refinery and directly markets the output of a refinery.

(II)

Exclusion

The term major fuel distributor does not include any person that owns less than 50 retail fueling stations.

(iv)

Secretary

The term Secretary means the Secretary of Energy, acting in consultation with the Administrator and the Secretary of Agriculture.

(B)

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).

(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:
201110
201320
201535
2017 and each calendar year thereafter50.
(D)

Geographic distribution

(i)

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.

(ii)

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.

(E)

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.

(F)

Production credits for exceeding blender pumps installation requirement

(i)

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.

(ii)

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).

(iii)

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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