A bill to improve choices for consumers for vehicles and fuel, and for other purposes.

Summary: Consumer Fuels and Vehicle Choice Act of 2009 - Requires each manufacturer to ensure that at least 50% of 2011 and 2012 model year automobiles and light duty trucks manufactured for sale in the United States are dual fueled. Increases the minimum to 90% for later model years. (Excludes automobiles and light duty trucks that operate only on electricity.)

Requires the Secretary of Energy to make grants to major fuel distributors to pay the federal share of costs to install blender pump fuel infrastructure at majority-owned stations and branded stations: (1) for the direct retail sale of ethanol fuel blends (including E-85 fuel), including blender pumps and storage tanks; and (2) to directly market such fuels to gas retailers, including in-line blending equipment, pumps, storage tanks, and loadout equipment.

Provides for infrastructure installation subgrants to direct retailers of ethanol fuel blends (including E-85 fuel) as well as blender pumps and storage tanks.

Amends the Clean Air Act to define: (1) "E-85 fuel" as a blend of gasoline at least 85% derived from ethanol; and (2) "ethanol fuel blend" as a blend of gasoline and ethanol, with a minimum of 0% and maximum of 85% derived from denatured ethanol.

Requires the Secretary to promulgate regulations to ensure that each major fuel distributor installs one or more blender pumps that dispense E-85 fuel and ethanol fuel blends at specified minimum percentages of majority-owned stations and branded stations for specified years in each state. Allows major fuel distributors to earn and sell credits if they exceed the percentage of blender pump installations at majority-owned stations and branded stations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Fuels and Vehicle Choice 
Act of 2009''.

SEC. 2. 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:
``Sec. 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 Year                                              Percentage
 
  Model years 2011 and 2012.......................  50 percent
  Model year 2013 and each subsequent model year..  90 percent.
 

    ``(b) Exception.--Subsection (a) shall not apply to automobiles or 
light duty trucks that operate only on electricity.''.
    (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:

``32902A. Requirement to manufacture dual fueled automobiles and light 
                            duty trucks.''.
    (c) Rulemaking.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Transportation shall prescribe 
regulations to carry out the amendments made by this Act.

SEC. 3. 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 2010;
                    (B) $100,000,000 for fiscal year 2011;
                    (C) $200,000,000 for fiscal year 2012;
                    (D) $300,000,000 for fiscal year 2013; and
                    (E) $350,000,000 for fiscal year 2014.
    (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 of the 
                        Environmental Protection Agency 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:
        2011...............................................         10 
        2013...............................................         20 
        2015...............................................         35 
        2017 and each calendar year thereafter.............         50.
                    ``(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).''.