A bill to increase the production and use of biofuels and diversify biofuel feedstock as key elements to achieving energy independence for the United States.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``20/20 Biofuels Challenge Act of 
2005''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Alternative fuel.--The term ``alternative fuel'' has 
        the meaning given the term in section 301 of the Energy Policy 
        Act of 1992 (42 U.S.C. 13211).
            (3) Cellulosic biomass ethanol.--
                    (A) In general.--Subject to subparagraph (B), the 
                term ``cellulosic biomass ethanol'' means alternative 
                fuels and blending components for alternative fuels 
                that are derived from cellulosic biomass feedstocks and 
                remain substantially in the liquid phase at room 
                temperature and atmospheric pressure.
                    (B) Exception.--If a liquid alternative fuel 
                contains components that are not derived from 
                cellulosic biomass feedstocks, only the portion of any 
                such fuels or fuel blending components that is derived 
                from cellulosic biomass feedstocks shall be considered 
                applicable.
            (4) Cellulosic biomass feedstock.--The term ``cellulosic 
        biomass feedstock'' means fuel derived from--
                    (A) any lignocellulosic or hemicellulosic matter 
                that is derived from organic material of a plant that 
                is planted for the purpose of producing energy (except 
                a plant produced on land enrolled in the conservation 
                reserve program established under subchapter B of 
                chapter 1 of subtitle D of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3831 et seq.), if 
                harvesting the plant would be inconsistent with the 
                purposes of the program); or
                    (B) nonhazardous lignocellulosic or hemicellulosic 
                matter that is segregated from other waste materials 
                and is derived from--
                            (i) trees and other plant matter removed 
                        from the immediate vicinity of homes, other 
                        occupied structures, or essential community 
                        infrastructure;
                            (ii) precommercial thinning, slash, or 
                        brush (except thinning, slash, or brush from 
                        old growth forests or publicly-owned roadless 
                        areas);
                            (iii) an agricultural crop, a crop 
                        byproduct, or a residue resource (except a 
                        plant produced on land enrolled in the 
                        conservation reserve program, if harvesting the 
                        plant would be inconsistent with the purposes 
                        of the program); or
                            (iv) miscellaneous waste (such as landscape 
                        or right-of-way tree trimmings), not 
                        including--
                                    (I) recyclable postconsumer waste 
                                paper, including such paper in 
                                municipal solid waste;
                                    (II) painted, treated, or 
                                pressurized wood; or
                                    (III) wood that is contaminated by 
                                plastic or metal.
            (5) Renewable fuel.--
                    (A) In general.--The term ``renewable fuel'' means 
                motor vehicle fuel that--
                            (i)(I) is produced from grain, starch, 
                        oilseeds, or other biomass; or
                            (II) 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.
                    (B) Inclusion.--The term ``renewable fuel'' 
                includes--
                            (i) biodiesel, as defined in section 312(f) 
                        of the Energy Policy Act of 1992 (42 U.S.C. 
                        13220(f));
                            (ii) cellulosic biomass ethanol;
                            (iii) waste derived ethanol; and
                            (iv) any blending components derived from 
                        renewable fuel, except that only the renewable 
                        fuel portion of any such blending component 
                        shall be considered part of the applicable 
                        volume under the renewable fuel program 
                        established by this Act.
            (6) Waste derived ethanol.--The term ``waste derived 
        ethanol'' means ethanol derived from--
                    (A) animal wastes, including poultry fats and 
                poultry wastes, and other waste materials; or
                    (B) municipal solid waste.

SEC. 3. RENEWABLE FUEL STANDARD.

    (a) Renewable Fuel Program.--
            (1) In general.--
                    (A) Regulations.--Not later than 1 year after the 
                date of enactment of this Act, the Administrator shall 
                promulgate regulations ensuring that motor vehicle fuel 
                sold or dispensed to consumers in the contiguous United 
                States, on an annual average basis, contains the 
                applicable volume of renewable fuel specified in 
                subsection (b).
                    (B) Compliance.--Regardless of the date of 
                promulgation, the regulations shall contain compliance 
                provisions for refiners, blenders, and importers, as 
                appropriate, to ensure that the requirements of this 
                subsection are met, unless the Administrator determines 
                compliance will violate the Clean Air Act (42 U.S.C. 
                7401 et seq.).
    (b) Applicable Volume.--
            (1) Calendar years 2006 through 2020.--For the purpose of 
        subsection (a), the applicable volume for each of calendar 
        years 2006 through 2020 shall be determined in accordance with 
        the following table:

 
 
 
Calendar year:                      (In billions of gallons):
  2006............................  4
  2008............................  5
  2010............................  7
  2010............................  9
  2014............................  12
  2016............................  15
  2018............................  18
  2020............................  20.

            (2) Calendar years 2020 and thereafter.--For the purpose of 
        subsection (a), the applicable volume for calendar year 2020 
        and each calendar year thereafter shall be no less than 
        20,000,000,000 gallons annually.
            (3) Equivalency.--For the purpose of paragraph (2), 1 
        gallon of either cellulosic biomass ethanol shall be considered 
        to be the equivalent of 3.5 gallons of renewable fuel.

SEC. 4. STIMULATION OF BIODIESEL PRODUCTION.

    Sections 40A(e), 6426(c)(6), and 6427(e)(4)(B) of the Internal 
Revenue Code of 1986 (as amended by section 1344 of the Energy Policy 
Act of 2005(a)) are each amended by striking ``2008'' and inserting 
``2010''.

SEC. 5. FULL FUEL FLEXIBILITY REQUIREMENT.

    (a) In General.--Chapter 329 of title 49, United States Code, is 
amended by inserting after section 32902 the following:

``SEC. 32902A. REQUIREMENT TO EQUIP GASOLINE AND DIESEL POWERED 
              VEHICLES TO USE ALTERNATIVE BIOFUELS.

    ``(a) Definitions.--In this section:
            ``(1) Flexible fuel mixture.--The term `flexible fuel 
        mixture' means--
                    ``(A) any mixture of ethanol with gasoline for a 
                gasoline powered vehicle; or
                    ``(B) any mixture of biodiesel by volume with 
                fossil-based diesel fuel for a diesel powered vehicle.
            ``(2) Vehicle.--The term `vehicle' includes--
                    ``(A) a passenger automobile;
                    ``(B) an automobile capable of off-highway 
                operation as defined in section 523.5 of title 49, Code 
                of Federal Regulations (or any successor regulation);
                    ``(C) a light truck, as defined in section 523.5 of 
                title 49, Code of Federal Regulations (or any successor 
                regulation);
                    ``(D) a heavy vehicle, including trucks used for 
                shipping; and
                    ``(E) a large farm implement that operates on 
                either gasoline or diesel fuels.
            ``(3) Water transportation.--
                    ``(A) In general.--The term `water transportation' 
                includes those vehicles used primarily in the 
                transportation of people, goods, and services over 
                significant distances and includes--
                            ``(i) public and commercial waterborne 
                        ferrys; and
                            ``(ii) barges whose primary use is the 
                        transport of goods and services related to 
                        interstate and international commerce.
                    ``(B) Exclusion.--The term `water transportation' 
                does not include watercraft the primary use of which is 
                for personal recreational benefit.
    ``(b) Requirement.--Personal and commercial land and water 
transportation and shipping vehicles and vessels and large farm 
equipment manufactured after model year 2010 and capable of operating 
on either gasoline or diesel fuel shall also be capable of operating on 
a flexible fuel mixture.
    ``(c) Consumer Information.--The Secretary of Transportation shall 
prescribe regulations that require the vehicle or vessel manufacturer--
            ``(1) to prominently display a permanent badge or emblem on 
        the vehicle indicating the vehicle is capable of operating on a 
        flexible fuel mixture; and
            ``(2) to include in the owner's manual of each vehicle 
        information describing--
                    ``(A) the capability of the engine to operate using 
                a flexible fuel mixture; and
                    ``(B) the benefits of using a flexible fuel 
                mixture, including the renewable nature, the increased 
                fuel efficiency, and the environmental benefits of 
                using flexible fuels.''.
    (b) Conforming Amendment.--The chapter analysis 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 equip gasoline and diesel powered vehicles to 
                            use alternative biofuels.''.

SEC. 6. FEEDSTOCK DIVERSIFICATION.

    (a) Crop Diversification.--
            (1) In general.--The Secretary of Agriculture shall support 
        development of cellulosic feedstock by directing that erosion 
        preventing, renewable fuel producing crops (including 
        switchgrass and short rotation woody crops) be grown, where 
        possible, on the 35,000,000 acres of arable land in the 
        conservation reserve program established under subchapter B of 
        chapter 1 of subtitle D of title XII of the Food Security Act 
        of 1985 (16 U.S.C. 3831 et seq.).
            (2) Study.--The Secretary of Agriculture shall conduct a 
        study to determine the impact of producing crops necessary for 
        annual biofuel production levels of 20,000,000,000 gallons on 
        land and on the cost and production of food, forest products, 
        and livestock feed.
    (b) Research and Development.--
            (1) Department of agriculture.--
                    (A) Cellulosic-based ethanol feedstock.--
                            (i) In general.--The Secretary of 
                        Agriculture (referred to in this paragraph as 
                        the ``Secretary'') shall carry out an 
                        integrated 10-year research program to improve 
                        crop productivity and cost for cellulosic-based 
                        ethanol feedstock.
                            (ii) Plan.--Not later than September 30, 
                        2006, the Secretary shall submit to Congress a 
                        10-year technology roadmap and comprehensive 5-
                        year research and development plan that 
                        includes--
                                    (I) a description of ongoing work 
                                within the Department of Agriculture 
                                and other Federal agencies;
                                    (II) recommendations for 
                                acceleration of current work considered 
                                to support the plan; and
                                    (III) a description of new work 
                                necessary to accomplish plan goals and 
                                objectives.
                            (iii) Annual report.--Beginning on 
                        September 30, 2008, and not later than 
                        September 30 of each subsequent year, the 
                        Secretary shall submit to Congress a report 
                        that--
                                    (I) summarizes accomplishments and 
                                progress made in the 5-year plan; and
                                    (II) describes any revisions to the 
                                plan or the technology roadmap.
                    (B) Biodiesel feedstock.--
                            (i) In general.--The Secretary shall carry 
                        out an integrated 10-year research program to 
                        improve crop diversity, productivity, and cost 
                        for biodiesel feedstock.
                            (ii) Plan.--Not later than September 30, 
                        2006, the Secretary shall submit to Congress a 
                        10-year technology roadmap and comprehensive 5-
                        year research and development plan that 
                        includes--
                                    (I) a description of regional 
                                feedstocks enabling near market 
                                production of biodiesel;
                                    (II) a description of ongoing work 
                                within the Department of Agriculture 
                                and other Federal agencies;
                                    (III) recommendations for 
                                acceleration of current work considered 
                                to support the plan; and
                                    (IV) a description of new work 
                                necessary to accomplish plan goals and 
                                objectives.
                            (iii) Annual report.--Beginning on 
                        September 30, 2008, and not later than 
                        September 30 of each subsequent year, the 
                        Secretary shall submit to Congress a report 
                        that--
                                    (I) summarizes accomplishments and 
                                progress made in the 5-year plan; and
                                    (II) describes any revisions to the 
                                plan or the technology roadmap.
            (2) Department of energy.--
                    (A) Cellulosic feedstock.--
                            (i) In general.--The Secretary of Energy 
                        (referred to in this paragraph as the 
                        ``Secretary'') shall carry out an 8-year 
                        research and development plan to significantly 
                        improve processes for converting cellulosic 
                        feedstock into ethanol production.
                            (ii) Plan.--Not later than September 30, 
                        2006, the Secretary shall submit to Congress a 
                        report describing the plan.
                            (iii) Annual report.--Beginning on 
                        September 30, 2008, and not later than 
                        September 30 of each subsequent year, the 
                        Secretary shall submit to Congress a report 
                        that--
                                    (I) summarizes accomplishments and 
                                progress made in the 8-year plan; and
                                    (II) describes any revisions to the 
                                plan or the technology roadmap.
                    (B) Biodiesel feedstock.--
                            (i) In general.--The Secretary shall carry 
                        out an 8-year research and development plan to 
                        significantly improve processes for converting 
                        biodiesel feedstock into biodiesel fuel.
                            (ii) Plan.--Not later than September 30, 
                        2006, the Secretary shall submit to Congress a 
                        report describing the plan.
                            (iii) Annual report.--Beginning on 
                        September 30, 2008, and not later than 
                        September 30 of each subsequent year, the 
                        Secretary shall submit to Congress a report 
                        that--
                                    (I) summarizes accomplishments and 
                                progress made in the 8-year plan; and
                                    (II) describes any revisions to the 
                                plan or the technology roadmap.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out each of subparagraphs (A) and 
        (B) of paragraph (1) and each of subparagraphs (A) and (B) of 
        paragraph (2) $50,000,000 for each of fiscal years 2006 through 
        2010.

Summary: Biofuels Challenge Act of 2005 - Directs the Administrator of the Environmental Protection Agency to promulgate regulations ensuring that motor vehicle fuel sold or dispensed to consumers in the contiguous United States, on an annual average basis, contains specified volumes of renewable fuel for calendar years 2006-2020. Amends federal transportation law to require that personal and commercial land and water transportation and shipping vehicles and vessels, as well as large farm equipment manufactured after model year 2010, and capable of operating on either gasoline or diesel fuel, also be capable of operating on a flexible fuel mixture. Directs the Secretary of Transportation to prescribe regulations requiring a vehicle or vessel manufacturer to include certain consumer information concerning a vehicle's capability of operating on a flexible fuel mixture . Directs the Secretary of Agriculture to: (1) support development of cellulosic feedstock by directing that erosion-preventing, renewable fuel-producing crops be grown on certain arable land in a specified conservation reserve program established under the Food Security Act of 1985. And (2) implement an integrated 10-year research program to improve crop productivity and cost for cellulosic-based ethanol and biodiesel feedstock. Instructs the Secretary of Energy to implement an eight-year research and development plan to improve significantly processes for converting: (1) cellulosic feedstock into ethanol production, and (2) biodiesel feedstock into biodiesel fuel.