I 

112TH CONGRESS 

1ST SESSION H. R. 404 

To amend the Internal Revenue Code of 1986 to extend and modify the 

credits for alcohol used as a fuel, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 24, 2011 

Mr. FORTENBERRY introduced the following bill; which was referred to the 

Committee on Ways and Means, and in addition to the Committees on 

Energy and Commerce and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

and modify the credits for alcohol used as a fuel, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Renewable Fuels for 

5 America’s Future Act of 2011’’. 


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1 SEC. 2. REDUCTION IN CREDIT FOR FUEL REQUIRED TO 

2 MEET RENEWABLE FUEL OBLIGATION. 

3 (a) IN GENERAL.—Subsection (d) of section 40 of the 

4 Internal Revenue Code of 1986 is amended by adding at 

5 the end the following new paragraph: 

6 ‘‘(8) ALCOHOL REQUIRED TO MEET RENEW7 ABLE FUEL OBLIGATION NOT TAKEN INTO AC8 COUNT.— 

9 ‘‘(A) IN GENERAL.—Alcohol used to meet 

10 the renewable fuel obligation applicable to the 

11 taxpayer shall not be taken into account for 

12 purposes of determining a credit under this sec13 tion. 

14 ‘‘(B) RENEWABLE FUEL OBLIGATION.— 

15 For purposes of subparagraph (A), the term 

16 ‘renewable fuel obligation’ means the renewable 

17 fuel obligation determined under section 

18 211(o)(3) of the Clean Air Act (42 U.S.C. 

19 7545(o)(3)). 

20 ‘‘(C) USE OF RINS.—Determinations for 

21 purposes of subparagraph (A) shall be made 

22 through the use of renewable identification 

23 numbers received from the taxpayer by the Ad24 ministrator of the Environmental Protection 

25 Agency pursuant to regulations issued under 

26 section 211(o) of such Act.’’. 


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1 (b) EXCISE TAX CREDIT AND PAYMENT.— 

2 (1) EXCISE TAX.—Subsection (b) of section 

3 6426 of such Code, as amended by section 4 of this 

4 Act, is amended by redesignating paragraph (6) as 

5 paragraph (7) and by inserting after paragraph (5) 

6 the following new paragraph: 

7 ‘‘(6) ALCOHOL REQUIRED TO MEET RENEW8 ABLE FUEL OBLIGATION NOT TAKEN INTO AC9 COUNT.— 

10 ‘‘(A) IN GENERAL.—Alcohol used to meet 

11 the renewable fuel obligation applicable to the 

12 taxpayer shall not be taken into account for 

13 purposes of determining a credit under this 

14 subsection. 

15 ‘‘(B) RENEWABLE FUEL OBLIGATION.— 

16 For purposes of subparagraph (A), the term 

17 ‘renewable fuel obligation’ means the renewable 

18 fuel obligation determined under section 

19 211(o)(3) of the Clean Air Act (42 U.S.C. 

20 7545(o)(3)). 

21 ‘‘(C) USE OF RINS.—Determinations for 

22 purposes of subparagraph (A) shall be made 

23 through the use of renewable identification 

24 numbers received from the taxpayer by the Ad25 ministrator of the Environmental Protection 


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1 Agency pursuant to regulations issued under 

2 section 211(o) of such Act.’’. 

3 (2) PAYMENT.—Paragraph (2) of section 

4 6427(e) of such Code is amended by adding at the 

5 end the following: ‘‘For purposes of this subsection, 

6 alternative fuel shall not include any alcohol used to 

7 meet the renewable fuel obligation (as defined in sec8 tion 6426(e)(6)) applicable to the taxpayer’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to fuel produced or sold after De11 cember 31, 2010. 

12 SEC. 3. EXTENSION OF INCOME TAX CREDIT FOR ALCOHOL 

13 USED AS FUEL. 

14 (a) IN GENERAL.—Paragraph (1) of section 40(e) of 

15 the Internal Revenue Code of 1986 is amended— 

16 (1) by striking ‘‘December 31, 2011’’ in sub17 paragraph (A) and inserting ‘‘December 31, 2016’’, 

18 and 

19 (2) by striking ‘‘January 1, 2012’’ in subpara20 graph (B) and inserting ‘‘January 1, 2017’’. 

21 (b) CELLULOSIC BIOFUEL.—Subparagraph (H) of 

22 section 40(b)(6) of such Code is amended by striking 

23 ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2017’’. 

24 (c) REDUCED AMOUNT FOR ETHANOL BLENDERS.— 

25 Paragraph (2) of section 40(h) of such Code is amended 


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1 by striking ‘‘2011’’ both places it appears and inserting 

2 ‘‘2016’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect on the date of the enactment 

5 of this Act. 

6 SEC. 4. EXTENSION OF EXCISE TAX CREDIT FOR ALCOHOL 

7 USED AS FUEL. 

8 (a) IN GENERAL.—Paragraph (6) of section 6426(b) 

9 of the Internal Revenue Code of 1986 is amended by strik10 ing ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

11 2016’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall take effect on the date of the enactment 

14 of this Act. 

15 SEC. 5. EXTENSION OF PAYMENT FOR ALCOHOL FUEL MIX16 TURE. 

17 (a) IN GENERAL.—Subparagraph (A) of section 

18 6427(e)(6) of the Internal Revenue Code of 1986 is 

19 amended by striking ‘‘December 31, 2011’’ and inserting 

20 ‘‘December 31, 2016’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this subsection shall apply to sales and uses after Decem23 ber 31, 2010. 


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1 SEC. 6. EXTENSION OF ADDITIONAL DUTIES ON ETHANOL. 

2 Headings 9901.00.50 and 9901.00.52 of the Har3 monized Tariff Schedule of the United States are each 

4 amended in the effective period column by striking ‘‘1/1/ 

5 2012’’ and inserting ‘‘1/1/2017’’. 

6 SEC. 7. ENSURING THE AVAILABILITY OF DUAL FUELED 

7 AUTOMOBILES AND LIGHT DUTY TRUCKS. 

8 (a) IN GENERAL.—Chapter 329 of title 49, United 

9 States Code, is amended by inserting after section 32902 

10 the following: 

11 ‘‘§ 32902A. Requirement to manufacture dual fueled 

12 automobiles and light duty trucks 

13 ‘‘(a) IN GENERAL.—For each model year listed in the 

14 following table, each manufacturer shall ensure that the 

15 percentage of automobiles and light duty trucks manufac16 tured by the manufacturer for sale in the United States 

17 that are dual fueled automobiles and light duty trucks is 

18 not less than the percentage set forth for that model year 

19 in the following table: 

‘‘Model Year Percentage 

Model years 2013 and 2014 ........................................................ 50 percent

Model year 2015 and each subsequent model year ..................... 90 percent. 

20 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply to 

21 automobiles or light duty trucks that operate only on elec22 tricity.’’. 

23 (b) CLERICAL AMENDMENT.—The table of sections 

24 for chapter 329 of title 49, United States Code, is amendVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H404.IH H404

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1 ed by inserting after the item relating to section 32902 

2 the following: 

‘‘32902A. Requirement to manufacture dual fueled automobiles and light duty 

trucks.’’. 

3 (c) RULEMAKING.—Not later than 1 year after the 

4 date of the enactment of this section, the Secretary of 

5 Transportation shall prescribe regulations to carry out the 

6 amendments made by this section. 

7 SEC. 8. BLENDER PUMP PROMOTION. 

8 (a) BLENDER PUMP GRANT PROGRAM.— 

9 (1) DEFINITIONS.—In this subsection: 

10 (A) BLENDER PUMP.—The term ‘‘blender 

11 pump’’ means an automotive fuel dispensing 

12 pump capable of dispensing at least 3 different 

13 blends of gasoline and ethanol, as selected by 

14 the pump operator, including blends ranging 

15 from 0 percent ethanol to 85 percent denatured 

16 ethanol, as determined by the Secretary. 

17 (B) E–85 FUEL.—The term ‘‘E–85 fuel’’ 

18 means a blend of gasoline approximately 85 

19 percent of the content of which is ethanol. 

20 (C) ETHANOL FUEL BLEND.—The term 

21 ‘‘ethanol fuel blend’’ means a blend of gasoline 

22 and ethanol, with a minimum of 0 percent and 

23 maximum of 85 percent of the content of which 

24 is denatured ethanol. 


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1 (D) SECRETARY.—The term ‘‘Secretary’’ 

2 means the Secretary of Energy. 

3 (2) GRANTS.—The Secretary shall make grants 

4 under this subsection to eligible facilities (as deter5 mined by the Secretary) to pay the Federal share 

6 of— 

7 (A) installing blender pump fuel infra8 structure, including infrastructure necessary— 

9 (i) for the direct retail sale of ethanol 

10 fuel blends (including E–85 fuel), includ11 ing blender pumps and storage tanks; and 

12 (ii) to directly market ethanol fuel 

13 blends (including E–85 fuel) to gas retail14 ers, including inline blending equipment, 

15 pumps, storage tanks, and loadout equip16 ment; and 

17 (B) providing subgrants to direct retailers 

18 of ethanol fuel blends (including E–85 fuel) for 

19 the purpose of installing fuel infrastructure for 

20 the direct retail sale of ethanol fuel blends (in21 cluding E–85 fuel), including blender pumps 

22 and storage tanks. 

23 (3) FEDERAL SHARE.—The Federal share of 

24 the cost of a project carried out under this subVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H404.IH H404

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1 section shall be 50 percent of the total cost of the 

2 project. 

3 (4) AUTHORIZATION OF APPROPRIATIONS.— 

4 There are authorized to be appropriated to the Sec5 retary to carry out this subsection, to remain avail6 able until expended— 

7 (A) $50,000,000 for fiscal year 2012; 

8 (B) $100,000,000 for fiscal year 2013; 

9 (C) $200,000,000 for fiscal year 2014; 

10 (D) $300,000,000 for fiscal year 2015; 

11 and 

12 (E) $350,000,000 for fiscal year 2016. 

13 (b) INSTALLATION OF BLENDER PUMPS BY MAJOR

14 FUEL DISTRIBUTORS AT OWNED STATIONS AND BRAND15 ED STATIONS.—Section 211(o) of the Clean Air Act (42 

16 U.S.C. 7545(o)) is amended by adding at the end the fol17 lowing: 

18 ‘‘(13) INSTALLATION OF BLENDER PUMPS BY

19 MAJOR FUEL DISTRIBUTORS AT OWNED STATIONS

20 AND BRANDED STATIONS.— 

21 ‘‘(A) DEFINITIONS.—In this paragraph: 

22 ‘‘(i) E–85 FUEL.—The term ‘E–85 

23 fuel’ means a blend of gasoline approxi24 mately 85 percent of the content of which 

25 is ethanol. 


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1 ‘‘(ii) ETHANOL FUEL BLEND.—The 

2 term ‘ethanol fuel blend’ means a blend of 

3 gasoline and ethanol, with a minimum of 0 

4 percent and maximum of 85 percent of the 

5 content of which is denatured ethanol. 

6 ‘‘(iii) MAJOR FUEL DISTRIBUTOR.— 

7 ‘‘(I) IN GENERAL.—The term 

8 ‘major fuel distributor’ means any 

9 person that owns a refinery and di10 rectly markets the output of a refin11 ery. 

12 ‘‘(II) EXCLUSION.—The term 

13 ‘major fuel distributor’ does not in14 clude any person that owns less than 

15 50 retail fueling stations. 

16 ‘‘(iv) SECRETARY.—The term ‘Sec17 retary’ means the Secretary of Energy, 

18 acting in consultation with the Adminis19 trator and the Secretary of Agriculture. 

20 ‘‘(B) REGULATIONS.—The Secretary shall 

21 promulgate regulations to ensure that each 

22 major fuel distributor that sells or introduces 

23 gasoline into commerce in the United States 

24 through majority-owned stations or branded 

25 stations installs or otherwise makes available 1 


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1 or more blender pumps that dispense E–85 fuel 

2 and ethanol fuel blends (including any other 

3 equipment necessary, such as tanks, to ensure 

4 that the pumps function properly) for a period 

5 of not less than 5 years at not less than the ap6 plicable percentage of the majority-owned sta7 tions and the branded stations of the major fuel 

8 distributor specified in subparagraph (C). 

9 ‘‘(C) APPLICABLE PERCENTAGE.—For the 

10 purpose of subparagraph (B), the applicable 

11 percentage of the majority-owned stations and 

12 the branded stations shall be determined in ac13 cordance with the following table: 

‘‘Applicable percentage of 

majority-owned stations 

and branded stations 

Calendar year: Percent: 

2012 ............................................................................................. 10

2014 ............................................................................................. 20

2016 ............................................................................................. 35

2018 and each calendar year thereafter ...................................... 50. 

14 ‘‘(D) GEOGRAPHIC DISTRIBUTION.— 

15 ‘‘(i) IN GENERAL.—Subject to clause 

16 (ii), in promulgating regulations under 

17 subparagraph (B), the Secretary shall en18 sure that each major fuel distributor de19 scribed in that subparagraph installs or 

20 otherwise makes available 1 or more blend21 er pumps that dispense E–85 fuel and ethVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H404.IH H404

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1 anol fuel blends at not less than a min2 imum percentage (specified in the regula3 tions) of the majority-owned stations and 

4 the branded stations of the major fuel dis5 tributors in each State. 

6 ‘‘(ii) REQUIREMENT.—In specifying 

7 the minimum percentage under clause (i), 

8 the Secretary shall ensure that each major 

9 fuel distributor installs or otherwise makes 

10 available 1 or more blender pumps de11 scribed in that clause in each State in 

12 which the major fuel distributor operates. 

13 ‘‘(E) FINANCIAL RESPONSIBILITY.—In 

14 promulgating regulations under subparagraph 

15 (B), the Secretary shall ensure that each major 

16 fuel distributor described in that subparagraph 

17 assumes full financial responsibility for the 

18 costs of installing or otherwise making available 

19 the blender pumps described in that subpara20 graph and any other equipment necessary (in21 cluding tanks) to ensure that the pumps func22 tion properly. 

23 ‘‘(F) PRODUCTION CREDITS FOR EXCEED24 ING BLENDER PUMPS INSTALLATION REQUIRE25 MENT.— 


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1 ‘‘(i) EARNING AND PERIOD FOR AP2 PLYING CREDITS.—If the percentage of the 

3 majority-owned stations and the branded 

4 stations of a major fuel distributor at 

5 which the major fuel distributor installs 

6 blender pumps in a particular calendar 

7 year exceeds the percentage required under 

8 subparagraph (C), the major fuel dis9 tributor shall earn credits under this para10 graph, which may be applied to any of the 

11 3 consecutive calendar years immediately 

12 after the calendar year for which the cred13 its are earned. 

14 ‘‘(ii) TRADING CREDITS.—Subject to 

15 clause (iii), a major fuel distributor that 

16 has earned credits under clause (i) may 

17 sell the credits to another major fuel dis18 tributor to enable the purchaser to meet 

19 the requirement under subparagraph (C). 

20 ‘‘(iii) EXCEPTION.—A major fuel dis21 tributor may not use credits purchased 

22 under clause (ii) to fulfill the geographic 

23 distribution requirement in subparagraph 

24 (D).’’. 

Æ 


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