Home > 105th Congressional Bills > S. 792 (is) To amend the Internal Revenue Code of 1986 to provide that certain cash rentals of farmland will not cause recapture of special estate tax valuation. ...

S. 792 (is) To amend the Internal Revenue Code of 1986 to provide that certain cash rentals of farmland will not cause recapture of special estate tax valuation. ...


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108th CONGRESS
  1st Session
                                 S. 791

  To amend the Clean Air Act to eliminate methyl tertiary butyl ether 
 from the United States fuel supply, to increase production and use of 
 renewable fuel, and to increase the Nation's energy independence, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 3, 2003

Mr. Inhofe (for himself, Mr. Voinovich, and Mr. Talent) 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 eliminate methyl tertiary butyl ether 
 from the United States fuel supply, to increase production and use of 
 renewable fuel, and to increase the Nation's energy independence, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Reliable Fuels 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Renewable content of gasoline.
Sec. 102. Survey of renewable fuels consumption.
                  TITLE II--FEDERAL REFORMULATED FUELS

Sec. 201. Short title.
Sec. 202. Leaking underground storage tanks.
Sec. 203. Restrictions on the use of MTBE.
Sec. 204. Elimination of oxygen content requirement for reformulated 
                            gasoline.
Sec. 205. Public health and environmental impacts of fuels and fuel 
                            additives.
Sec. 206. Analyses of motor vehicle fuel changes.
Sec. 207. Additional opt-in areas under reformulated gasoline program.
Sec. 208. Federal enforcement of State fuels requirements.
Sec. 209. Fuel system requirements harmonization study.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. RENEWABLE CONTENT OF GASOLINE.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended--
            (1) by redesignating subsection (o) as subsection (r); and
            (2) by inserting after subsection (n) the following:
    ``(o) Renewable Fuel Program.--
            ``(1) Definitions.--In this section:
                    ``(A) Cellulosic biomass ethanol.--The term 
                `cellulosic biomass ethanol' means ethanol derived from 
                any lignocellulosic or hemicellulosic matter that is 
                available on a renewable or recurring basis, 
                including--
                            ``(i) dedicated energy crops and trees;
                            ``(ii) wood and wood residues;
                            ``(iii) plants;
                            ``(iv) grasses;
                            ``(v) agricultural residues;
                            ``(vi) fibers;
                            ``(vii) animal wastes and other waste 
                        materials; and
                            ``(viii) municipal solid waste.
                    ``(B) Renewable fuel.--
                            ``(i) In general.--The term `renewable 
                        fuel' means motor vehicle fuel that--
                                    ``(I)(aa) is produced from grain, 
                                starch, oilseeds, or other biomass; or
                                    ``(bb) is natural gas produced from 
                                a biogas source, including a landfill, 
                                sewage waste treatment plant, feedlot, 
                                or other place where decaying organic 
                                material is found; and
                                    ``(II) is used to replace or reduce 
                                the quantity of fossil fuel present in 
                                a fuel mixture used to operate a motor 
                                vehicle.
                            ``(ii) Inclusion.--The term `renewable 
                        fuel' includes--
                                    ``(I) cellulosic biomass ethanol; 
                                and
                                    ``(II) biodiesel (as defined in 
                                section 312(f) of the Energy Policy Act 
                                of 1992 (42 U.S.C. 13220(f))).
                    ``(C) Small refinery.--The term `small refinery' 
                means a refinery for which the average aggregate daily 
                crude oil throughput for a calendar year (as determined 
                by dividing the aggregate throughput for the calendar 
                year by the number of days in the calendar year) does 
                not exceed 75,000 barrels.
            ``(2) Renewable fuel program.--
                    ``(A) Regulations.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of enactment of this paragraph, 
                        the Administrator shall promulgate regulations 
                        to ensure that gasoline sold or introduced into 
                        commerce in the United States, on an annual 
                        average basis, contains the applicable volume 
                        of renewable 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 refineries, 
                                blenders, distributors, and importers, 
                                as appropriate, to ensure that the 
                                requirements of this paragraph are met; 
                                but
                                    ``(II) shall not--
                                            ``(aa) restrict cases in 
                                        which renewable fuel may be 
                                        used; or
                                            ``(bb) impose any per-
                                        gallon obligation for the use 
                                        of renewable fuel.
                            ``(iii) Requirement in case of failure to 
                        promulgate regulations.--If the Administrator 
                        does not promulgate regulations under clause 
                        (i), the percentage of renewable fuel in 
                        gasoline sold or dispensed to consumers in the 
                        United States, on a volume basis, shall be 1.8 
                        percent for calendar year 2005.
                    ``(B) Applicable volume.--
                            ``(i) Calendar years 2004 through 2012.--
                        For the purpose of subparagraph (A), the 
                        applicable volume for any of calendar years 
                        2005 through 2012 shall be determined in 
                        accordance with the following table:

                                                   Applicable volume of
``Calendar year:                                         renewable fuel
                                              (in billions of gallons):
    2005..........................................                 2.6 
    2006..........................................                 2.9 
    2007..........................................                 3.2 
    2008..........................................                 3.5 
    2009..........................................                 3.9 
    2010..........................................                 4.3 
    2011..........................................                 4.7 
    2012..........................................                 5.0.
                            ``(ii) Calendar year 2013 and thereafter.--
                        For the purpose of subparagraph (A), the 
                        applicable volume for calendar year 2013 and 
                        each calendar year thereafter shall be equal to 
                        the product obtained by multiplying--
                                    ``(I) the number of gallons of 
                                gasoline that the Administrator 
                                estimates will be sold or introduced 
                                into commerce in the calendar year; and
                                    ``(II) the ratio that--
                                            ``(aa) 5,000,000,000 
                                        gallons of renewable fuel; 
                                        bears to
                                            ``(bb) the number of 
                                        gallons of gasoline sold or 
                                        introduced into commerce in 
                                        calendar year 2012.
            ``(3) Applicable percentages.--
                    ``(A) Provision of estimate of volumes of gasoline 
                sales.--Not later than October 31 of each of calendar 
                years 2003 through 2011, the Administrator of the 
                Energy Information Administration shall provide to the 
                Administrator of the Environmental Protection Agency an 
                estimate of the volumes of gasoline sold or introduced 
                into commerce in the United States during the following 
                calendar year.
                    ``(B) Determination of applicable percentages.--
                            ``(i) In general.--Not later than November 
                        30 of each of calendar years 2004 through 2011, 
                        based on the estimate provided under 
                        subparagraph (A), the Administrator of the 
                        Environmental Protection Agency shall determine 
                        and publish in the Federal Register, with 
                        respect to the following calendar year, the 
                        renewable fuel obligation that ensures that the 
                        requirements of paragraph (2) are met.
                            ``(ii) Required elements.--The renewable 
                        fuel obligation determined for a calendar year 
                        under clause (i) shall--
                                    ``(I) be applicable to refineries, 
                                blenders, and importers, as 
                                appropriate;
                                    ``(II) be expressed in terms of a 
                                volume percentage of gasoline; and
                                    ``(III) subject to subparagraph 
                                (C)(i), consist of a single applicable 
                                percentage that applies to all 
                                categories of persons specified in 
                                subclause (I).
                    ``(C) Adjustments.--In determining the applicable 
                percentage for a calendar year, the Administrator shall 
                make adjustments--
                            ``(i) to prevent the imposition of 
                        redundant obligations on any person specified 
                        in subparagraph (B)(ii)(I); and
                            ``(ii) to account for the use of renewable 
                        fuel during the previous calendar year by small 
                        refineries that are exempt under paragraph (9).
            ``(4) Cellulosic biomass ethanol.--For the purpose of 
        paragraph (2), 1 gallon of cellulosic biomass ethanol shall be 
        considered to be the equivalent of 1.5 gallons of renewable 
        fuel.
            ``(5) Credit program.--
                    ``(A) In general.--The regulations promulgated 
                under paragraph (2)(A) shall provide--
                            ``(i) for the generation of an appropriate 
                        amount of credits by any person that refines, 
                        blends, or imports gasoline that contains a 
                        quantity of renewable fuel that is greater than 
                        the quantity required under paragraph (2);
                            ``(ii) for the generation of an appropriate 
                        amount of credits for biodiesel; and
                            ``(iii) for the generation of credits by 
                        small refineries in accordance with paragraph 
                        (9)(C).
                    ``(B) Use of credits.--A person that generates 
                credits under subparagraph (A) may use the credits, or 
                transfer all or a portion of the credits to another 
                person, for the purpose of complying with paragraph 
                (2).
                    ``(C) Duration of credits.--A credit generated 
                under this paragraph shall be valid to show 
                compliance--
                            ``(i) subject to clause (ii), for the 
                        calendar year in which the credit was generated 
                        or the following calendar year; or
                            ``(ii) if the Administrator promulgates 
                        regulations under paragraph (6), for the 
                        calendar year in which the credit was generated 
                        or any of the following 2 calendar years.
                    ``(D) Inability to generate or purchase sufficient 
                credits.--The regulations promulgated under paragraph 
                (2)(A) shall include provisions allowing any person 
                that is unable to generate or purchase sufficient 
                credits to meet the requirements of paragraph (2) to 
                carry forward a renewable fuel deficit on condition 
                that the person, in the calendar year following the 
                year in which the renewable fuel deficit is created--
                            ``(i) achieves compliance with the 
                        renewable fuel requirement under paragraph (2); 
                        and
                            ``(ii) generates or purchases additional 
                        renewable fuel credits to offset the renewable 
                        fuel deficit of the previous year.
            ``(6) Seasonal variations in renewable fuel use.--
                    ``(A) Study.--For each of calendar years 2005 
                through 2012, the Administrator of the Energy 
                Information Administration shall conduct a study of 
                renewable fuel blending to determine whether there are 
                excessive seasonal variations in the use of renewable 
                fuel.
                    ``(B) Regulation of excessive seasonal 
                variations.--If, for any calendar year, the 
                Administrator of the Energy Information Administration, 
                based on the study under subparagraph (A), makes the 
                determinations specified in subparagraph (C), the 
                Administrator of the Environmental Protection Agency 
                shall promulgate regulations to ensure that 35 percent 
                or more of the quantity of renewable fuel necessary to 
                meet the requirements of paragraph (2) is used during 
                each of the 2 periods specified in subparagraph (D) of 
                each subsequent calendar year.
                    ``(C) Determinations.--The determinations referred 
                to in subparagraph (B) are that--
                            ``(i) less than 35 percent of the quantity 
                        of renewable fuel necessary to meet the 
                        requirements of paragraph (2) has been used 
                        during 1 of the 2 periods specified 
in subparagraph (D) of the calendar year; and
                            ``(ii) a pattern of excessive seasonal 

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