S. 1148

Renewable Fuel Standard Improvement Act

Latest

II

111th CONGRESS

1st Session

S. 1148

IN THE SENATE OF THE UNITED STATES

May 21, 2009

Mr. Grassley (for himself, Mrs. McCaskill, Mr. Bond, and Mr. Thune) 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 modify a provision relating to the renewable fuel program.

1.

Short title

This Act may be cited as the Renewable Fuel Standard Improvement Act.

2.

Renewable fuel standard improvement

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

(1)

in paragraph (1)—

(A)

in subparagraph (B)(i), by striking the Administrator and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(B)

in subparagraph (C)—

(i)

by striking The term and inserting the following:

(i)

In general

The term

;

(ii)

in clause (i) (as designated by clause (i))—

(I)

by striking the Administrator and inserting the Secretary of Energy; and

(II)

by striking in 2005 and inserting during calendar year 2008; and

(iii)

by adding at the end the following:

(ii)

Updates

For purposes of clause (i), the Secretary of Energy shall update, for calendar year 2011 and every 3 calendar years thereafter, the baseline lifecycle greenhouse gas emissions using the date that is 3 years after the baseline date used for the preceding 3-year period.

;

(C)

by striking subparagraph (D) and inserting the following:

(D)

Biomass-based diesel

(i)

In general

The term biomass-based diesel means renewable fuel that is biodiesel (as defined in section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 13220(f))).

(ii)

Inclusion of certain fuel

The term biomass-based diesel includes renewable fuel produced by a facility that commenced construction after December 19, 2007, only if the renewable fuel has lifecycle greenhouse gas emissions, as determined by the Secretary of Agriculture and the Secretary of Energy, after notice and opportunity for comment, that are at least 50 percent less than the baseline lifecycle greenhouse gas emissions.

(iii)

Advanced biofuel

Notwithstanding clauses (i) and (ii), a renewable fuel derived from coprocessing biomass with a petroleum feedstock shall be considered to be an advanced biofuel if the renewable fuel—

(I)

meets the requirements of subparagraph (B); but

(II)

is not biomass-based diesel.

;

(D)

in subparagraph (E), by striking the Administrator and inserting the Secretary of Agriculture and the Secretary of Energy;

(E)

in subparagraph (G), by striking the second sentence; and

(F)

by striking subparagraphs (H) and (I) and inserting the following:

(H)

Lifecycle greenhouse gas emissions

(i)

In general

The term lifecycle greenhouse gas emissions means the aggregate quantity of direct greenhouse gas emissions relating to the full fuel lifecycle, as determined by the Secretary of Agriculture and the Secretary of Energy based on—

(I)

measurements taken using the most recent observable data; and

(II)

consideration of regional differences of renewable fuel production.

(ii)

Inclusions

The term lifecycle greenhouse gas emissions includes greenhouse gas emissions from all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for the relative global warming potential of the greenhouse gases.

(iii)

Peer review and model

The Secretary of Agriculture and the Secretary of Energy shall—

(I)

carry out a peer review of any model used in measuring lifecycle greenhouse gas emissions; and

(II)

make the results of the peer review and model publicly available before any public comment period provided in connection with the determination made under this subparagraph.

(I)

Renewable biomass

The term renewable biomass means—

(i)

materials, precommercial thinnings, or invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)) that—

(I)

are byproducts of preventive treatments that are removed—

(aa)

to reduce hazardous fuels;

(bb)

to reduce or contain disease or insect infestation; or

(cc)

to restore ecosystem health;

(II)

would not otherwise be used for higher-value products; and

(III)

are harvested in accordance with—

(aa)

applicable law and land management plans; and

(bb)

the requirements for—

(AA)

old-growth maintenance, restoration, and management direction of paragraphs (2), (3), and (4) of subsection (e) of section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512); and

(BB)

large-tree retention of subsection (f) of that section; and

(ii)

any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including—

(I)

renewable plant material, including—

(aa)

feed grains;

(bb)

other agricultural commodities;

(cc)

other plants and trees; and

(dd)

algae; and

(II)

waste material, including—

(aa)

crop residue;

(bb)

other vegetative waste material (including wood waste and wood residues);

(cc)

animal waste and byproducts (including fats, oils, greases, and manure); and

(dd)

food waste and yard waste.

;

(2)

in paragraph (2)—

(A)

in subparagraph (A)—

(i)

by striking the Administrator each place it appears and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(ii)

in clause (ii)(I), by striking promulgates and inserting promulgate; and

(iii)

in clause (iv), by striking does not promulgate and inserting fail to promulgate; and

(B)

in subparagraph (B)—

(i)

in clause (ii)—

(I)

by striking the Administrator, in coordination with the Secretary of Energy and the Secretary of Agriculture and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator; and

(II)

in the matter following subclause (VI), by striking The Administrator and inserting The Secretary of Agriculture, the Secretary of Energy, and the Administrator; and

(ii)

in clause (iv), by striking the Administrator each place it appears and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(3)

in paragraph (3)—

(A)

in subparagraphs (A) and (B), by striking the Administrator of the Environmental Protection Agency each place it appears and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator of the Environmental Protection Agency; and

(B)

in subparagraph (C), by striking the Administrator and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator of the Environmental Protection Agency;

(4)

in paragraph (4)—

(A)

by striking Administrator each place it appears and inserting Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(B)

by striking subparagraphs (D) and (E) and inserting the following:

(D)

5-year review

Not later than 5 years after the date on which the Secretary of Agriculture, the Secretary of Energy, and the Administrator make an adjustment under this paragraph, the Secretary of Agriculture, the Secretary of Energy, and the Administrator shall review and revise (based on the same criteria and standards as required for the initial adjustment) the regulations establishing the adjusted level.

(E)

Subsequent adjustments

(i)

In general

Except as provided in subparagraph (D), after the Secretary of Agriculture, the Secretary of Energy, and the Administrator have promulgated a final rule under the last sentence of paragraph (2)(A)(i) with respect to the method of determining lifecycle greenhouse gas emissions, the Secretary of Agriculture, the Secretary of Energy, and the Administrator may adjust the percent greenhouse gas reduction levels only if the Secretary of Agriculture, the Secretary of Energy, and the Administrator determine that there has been a significant change in the analytical methodology used for determining the lifecycle greenhouse gas emissions.

(ii)

Effect of determination

If the Secretary of Agriculture, the Secretary of Energy, and the Administrator make a determination described in clause (i), the Secretary of Agriculture, the Secretary of Energy, and the Administrator may adjust the 20-, 50-, or 60-percent reduction levels pursuant to a rulemaking using the criteria and standards described in this paragraph.

;

(C)

in subparagraph (F), by striking revises and inserting revise; and

(D)

in subparagraph (G)—

(i)

by striking adjusts, or revises, a percent level referred to in this paragraph or makes and inserting adjust or revise a percent level referred to in this paragraph, or make; and

(ii)

by striking effective date of such adjustment, revision, or change and inserting date of enactment of the Energy Independence and Security Act of 2007 (Public Law 110–140; 121 Stat. 1492);

(5)

in paragraph (5)(E), by striking Administrator each place it appears and inserting Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(6)

in paragraph (6)(B), by striking the Administrator of the Environmental Protection Agency and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator of the Environmental Protection Agency;

(7)

in paragraph (7)—

(A)

in subparagraph (A)—

(i)

in the matter preceding clause (i)—

(I)

by striking Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, and inserting Secretary of Agriculture, the Secretary of Energy, and the Administrator; and

(II)

by striking the Administrator on his own motion and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator on a joint motion; and

(ii)

in clauses (i) and (ii), by striking the Administrator each place it appears and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(B)

in subparagraph (B)—

(i)

by striking Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, and inserting Secretary of Agriculture, the Secretary of Energy, and the Administrator; and

(ii)

by striking the Administrator and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(C)

in subparagraph (D)—

(i)

by striking the Administrator each place it appears and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(ii)

in clause (i), in the second sentence, by striking makes such a reduction and inserting make such a reduction;

(iii)

in clause (ii), by striking reduces and inserting reduce; and

(iv)

in clause (iii), in the fourth sentence—

(I)

by striking deems and inserting determine to be; and

(II)

by striking determines and inserting determine;

(D)

in subparagraph (E)—

(i)

by striking Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, each place it appears and inserting Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(ii)

in clause (ii)—

(I)

in the first sentence, by striking the Administrator determines and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator determine; and

(II)

in the second sentence, by striking the Administrator makes and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator make; and

(iii)

in clause (iii), by striking the Administrator determines and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator determine; and

(E)

in subparagraph (F)—

(i)

in the matter preceding clause (i), by striking the Administrator waives and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator waive; and

(ii)

in the matter following clause (ii), by striking the Administrator each place it appears and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(8)

in paragraph (8)—

(A)

in subparagraph (A), by striking the Secretary of Energy shall conduct for the Administrator and inserting the Secretary of Agriculture and the Secretary of Energy shall conduct;

(B)

in subparagraph (C), by striking the Secretary of Energy shall make specific recommendations to the Administrator and inserting the Secretary of Agriculture and the Secretary of Energy shall make specific recommendations; and

(C)

in subparagraph (D)—

(i)

by striking the Administrator each place it appears and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator; and

(ii)

in clause (i), by striking by the Secretary of Energy;

(9)

in paragraph (9)—

(A)

in subparagraph (A), by striking clause (ii) and inserting the following:

(ii)

Extension of exemption

(I)

Study

Not later than December 31, 2008, the Secretary of Agriculture and the Secretary of Energy shall conduct a study to determine whether compliance with the requirements of paragraph (2) would impose a disproportionate economic hardship on small refineries.

(II)

Extension of exemption

In the case of a small refinery that the Secretary of Agriculture and the Secretary of Energy determine under subclause (I) would be subject to a disproportionate economic hardship if required to comply with paragraph (2), the Secretary of Agriculture, the Secretary of Energy, and the Administrator shall extend the exemption under clause (i) for the small refinery for a period of not less than 2 additional years.

;

(B)

in subparagraph (B)—

(i)

in clause (i), by striking the Administrator and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(ii)

in clause (ii), by striking the Administrator, in consultation with the Secretary of Energy, and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator; and

(iii)

in clause (iii), by striking The Administrator and inserting The Secretary of Agriculture, the Secretary of Energy, and the Administrator; and

(C)

in subparagraphs (C) and (D), by striking the Administrator each place it appears and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator;

(10)

in paragraph (10)(B), by striking the Administrator and inserting the President ; and

(11)

in paragraph (11), in the matter preceding subparagraph (A), by striking the Administrator and inserting the Secretary of Agriculture, the Secretary of Energy, and the Administrator.