To provide for the energy security of the United States and promote environmental quality by enhancing the use of motor vehicle fuels from renewable sources, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Renewable Fuels for Energy Security 
Act of 2001''.

SEC. 2. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

    (a) Definitions.--In this section:
            (1) Biodiesel.--The term ``biodiesel'' means mono alkyl 
        esters of long chain fatty acids derived from renewable liquid 
        sources such as vegetable oils or animal fats, for use in 
        compression-ignition (diesel) engines.
            (2) Biogas.--The term ``biogas'' means gas produced from a 
        biogas source.
            (3) Biogas source.--The term ``biogas source'' means--
                    (A) a landfill;
                    (B) a sewage waste treatment plant;
                    (C) a feedlot; and
                    (D) any other accumulation of decaying organic 
                material.
            (4) Biomass.--
                    (A) In general.--The term ``biomass'' means 
                lignocellulosic or hemicellulosic matter that is 
                available on a renewable basis.
                    (B) Inclusions.--The term ``biomass'' includes--
                            (i) dedicated energy crops and trees;
                            (ii) wood and wood residues;
                            (iii) plants;
                            (iv) grasses;
                            (v) agricultural commodities and residues;
                            (vi) fibers; and
                            (vii) animal waste, municipal solid waste, 
                        and other waste.
            (5) Biomass ethanol.--The term ``biomass ethanol'' means 
        ethanol derived from biomass.
            (6) Renewable fuel.--The term ``renewable fuel'' means fuel 
        that--
                    (A) is--
                            (i) biodiesel;
                            (ii) ethanol or any other liquid fuel 
                        produced from biomass; or
                            (iii) biogas; and
                    (B) is used to reduce the quantity of fossil fuel 
                present in a fuel mixture used to operate a motor 
                vehicle.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Renewable Fuel Program.--
            (1) Program requirements.--The motor vehicle fuel sold or 
        introduced into commerce in the United States in calendar year 
        2002 or any calendar year thereafter by a refiner, blender, or 
        importer shall, on a 6-month average basis, be comprised of a 
        quantity of renewable fuel, measured in gasoline-equivalent 
        gallons (as determined by the Secretary), that is not less than 
        the applicable percentage by volume for the 6-month period.
            (2) Applicable percentage.--
                    (A) In general.--For the purposes of paragraph (1), 
                the applicable percentage for a 6-month period of a 
                calendar year shall be determined in accordance with 
                the following table, unless modified under subparagraph 
                (B):


Calendar year:                      Applicable percentage of renewable 
                                                                  fuel:
    2002..........................................                  .8 
    2003..........................................                  .9 
    2004..........................................                 1.1 
    2005..........................................                 1.3 
    2006..........................................                 1.5 
    2007..........................................                 1.7 
    2008..........................................                 2.0 
    2009..........................................                 2.3 
    2010..........................................                 2.6 
    2011..........................................                 3.0 
    2012..........................................                3.42 
    2013..........................................                3.84 
    2014..........................................                4.24 
    2015..........................................                4.63 
    2016 and thereafter...........................                5.00.
                    (B) Adjustments to applicable percentage.--On 
                petition by a State, the Secretary, in consultation 
                with the Secretary of Agriculture, may lower the 
                applicable percentage specified in subparagraph (A) for 
                a period of 1 calendar year with respect to motor 
                vehicle fuel sold or introduced into commerce in the 
                State, based on a determination by the Secretary, after 
public notice and opportunity for comment, that during the calendar 
year there is likely to be an inadequate domestic supply or 
distribution capacity in the State to meet the applicable percentage 
specified in subparagraph (A) for the calendar year.
                    (C) Petitions for adjustment.--
                            (i) Submission.--A State shall submit a 
                        petition under subparagraph (B) not later than 
                        September 1 of the year preceding the calendar 
                        year for which the adjustment is sought.
                            (ii) Action on petitions.--The Secretary, 
                        in consultation with the Secretary of 
                        Agriculture, shall approve or deny a State 
                        petition before the beginning of the calendar 
                        year.
    (c) Credit Program.--
            (1) In general.--Not later than 270 days after the date of 
        enactment of this Act, the Secretary shall promulgate 
        regulations providing for the generation of an appropriate 
        amount of credits by a person that refines, blends, or imports 
        motor vehicle fuel that contains, on a 6-month average basis, a 
        quantity of renewable fuel that is greater than the quantity 
        required for that 6-month period under subsection (b).
            (2) Use of credits.--A person that generates credits under 
        paragraph (1) may use the credits, hold the credits for later 
        use, or transfer all or a portion of the credits to another 
        person, for the purpose of complying with subsection (b).
            (3) Expiration of credits.--A credit generated under this 
        subsection shall expire 2 years after the date on which the 
        credit was generated.
            (4) Inability to purchase sufficient credits.--The 
        regulations under paragraph (1) shall include provisions 
        allowing a refiner, blender, or importer that is unable to 
        purchase sufficient credits to meet the requirements of 
        subsection (b) to enter into an enforceable agreement to 
        generate or purchase sufficient credits to make up for any 
        deficiency within a period of time specified in the agreement.
            (5) Testing; reports.--The regulations under paragraph (1) 
        may include provisions requiring a refiner, blender, or 
        importer--
                    (A) to conduct tests to ascertain the composition 
                of fuels for the purpose of compliance with subsection 
                (b); and
                    (B) to submit to the Secretary periodic reports on 
                the composition of the fuels refined, blended, or 
                imported.
    (d) Civil Penalties and Enforcement.--
            (1) Civil penalties.--
                    (A) In general.--The Secretary may impose against a 
                person that fails to comply with subsection (b) or with 
                a regulation under subsection (c) a civil penalty in 
                the amount of--
                            (i) not more than $25,000 for each day of 
                        the failure to comply; plus
                            (ii) the amount of economic benefit 
                        realized by the person as a result of the 
                        failure to comply.
                    (B) Averaging period.--Any failure to comply with 
                respect to a regulation under subsection (c) that 
                establishes a regulatory requirement based on an 
                averaging period shall constitute a separate day of 
                failure of compliance for each day of the averaging 
                period.
            (2) Enforcement.--The Secretary may bring a civil action in 
        United States district court for--
                    (A) an order enjoining a failure to comply with 
                subsection (b) or with a regulation under subsection 
                (c); and
                    (B) other appropriate relief.

Summary: Renewable Fuels for Energy Security Act of 2001 - Mandates that motor vehicle fuel introduced into commerce in calendar year 2002 and beyond be composed of specified percentages of renewable fuel. Prescribes procedural guidelines for: (1) adjustments to such percentages if the Secretary of Energy determines that an inadequate domestic supply or distribution capacity exists. And (2) a renewable fuel credit program. Empowers the Secretary to impose civil penalties and bring a civil action in Federal district court for non-compliance with this Act.