II 

109TH CONGRESS 

2D SESSION S. 2817 

To promote renewable fuel and energy security of the United States, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 16, 2006 

Mr. HARKIN (for himself, Mr. LUGAR, Mr. JOHNSON, Mr. DORGAN, and Mr. 

BIDEN) introduced the following bill; which was read twice and referred 

to the Committee on Commerce, Science, and Transportation 

A BILL 

To promote renewable fuel and energy security of the United 

States, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Biofuels Security Act of 2006’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—RENEWABLE FUELS 

Sec. 101. Renewable fuel program. 


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Sec. 102. Installation of E–85 fuel pumps by major oil companies at owned stations and branded stations. 

Sec. 103. Minimum Federal fleet requirement. 

Sec. 104. Application of Gasohol Competition Act of 1980. 

TITLE II—DUAL FUELED AUTOMOBILES 

Sec. 201. Requirement to manufacture dual fueled automobiles. 

Sec. 202. Manufacturing incentives for dual fueled automobiles. 

1 TITLE I—RENEWABLE FUELS 

2 SEC. 101. RENEWABLE FUEL PROGRAM. 

3 Section 211(o)(2) of the Clean Air Act (42 U.S.C. 

4 7545(o)(2)) is amended by striking subparagraph (B) and 

5 inserting the following: 

6 ‘‘(B) APPLICABLE VOLUME.— 

7 ‘‘(i) IN GENERAL.—For the purpose 

8 of subparagraph (A), the applicable volume 

9 for calendar year 2010 and each calendar 

10 year thereafter shall be determined, by 

11 rule, by the Administrator, in consultation 

12 with the Secretary of Agriculture and the 

13 Secretary of Energy, in a manner that en14 sures that— 

15 ‘‘(I) the requirements described 

16 in clause (ii) for specified calendar 

17 years are met; and 

18 ‘‘(II) the applicable volume for 

19 each calendar year not specified in 

20 clause (ii) is determined on an annual 

21 basis. 


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1 ‘‘(ii) REQUIREMENTS.—The require2 ments referred to in clause (i) are— 

3 ‘‘(I) for calendar year 2010, at 

4 least 10,000,000,000 gallons of re5 newable fuel; 

6 ‘‘(II) for calendar year 2020, at 

7 least 30,000,000,000 gallons of re8 newable fuel; and 

9 ‘‘(III) for calendar year 2030, at 

10 least 60,000,000,000 gallons of re11 newable fuel.’’. 

12 SEC. 102. INSTALLATION OF E–85 FUEL PUMPS BY MAJOR 

13 OIL COMPANIES AT OWNED STATIONS AND 

14 BRANDED STATIONS. 

15 Section 211(o) of the Clean Air Act (42 U.S.C. 

16 7545(o)) is amended by adding at the end the following: 

17 ‘‘(11) INSTALLATION OF E–85 FUEL PUMPS BY

18 MAJOR OIL COMPANIES AT OWNED STATIONS AND

19 BRANDED STATIONS.— 

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

21 ‘‘(i) E–85 FUEL.—The term ‘E–85 

22 fuel’ means a blend of gasoline approxi23 mately 85 percent of the content of which 

24 is derived from ethanol produced in the 

25 United States. 


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1 ‘‘(ii) MAJOR OIL COMPANY.—The 

2 term ‘major oil company’ means any per3 son that, individually or together with any 

4 other person with respect to which the per5 son has an affiliate relationship or signifi6 cant ownership interest, has not less than 

7 4,500 retail station outlets according to 

8 the latest publication of the Petroleum 

9 News Annual Factbook. 

10 ‘‘(iii) SECRETARY.—The term ‘Sec11 retary’ means the Secretary of Energy, 

12 acting in consultation with the Adminis13 trator of the Environmental Protection 

14 Agency and the Secretary of Agriculture. 

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

16 promulgate regulations to ensure that each 

17 major oil company that sells or introduces gaso18 line into commerce in the United States 

19 through wholly-owned stations or branded sta20 tions installs or otherwise makes available 1 or 

21 more pumps that dispense E–85 fuel (including 

22 any other equipment necessary, such as includ23 ing tanks, to ensure that the pumps function 

24 properly) at not less than the applicable per25 centage of the wholly-owned stations and the 


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1 branded stations of the major oil company spec2 ified in subparagraph (C). 

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

4 purpose of subparagraph (B), the applicable 

5 percentage of the wholly-owned stations and the 

6 branded stations shall be determined in accord7 ance with the following table: 

Applicable percentage of 

wholly-owned stations 

and branded stations 

‘‘Calendar year: (percent): 

2007 ......................................................................................... 5

2008 ......................................................................................... 10

2009 ......................................................................................... 15

2010 ......................................................................................... 20

2011 ......................................................................................... 25

2012 ......................................................................................... 30

2013 ......................................................................................... 35

2014 ......................................................................................... 40

2015 ......................................................................................... 45

2016 and each calendar year thereafter .................................. 50. 

8 ‘‘(D) GEOGRAPHIC DISTRIBUTION.— 

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

10 (ii), in promulgating regulations under 

11 subparagraph (B), the Secretary shall en12 sure that each major oil company described 

13 in subparagraph (B) installs or otherwise 

14 makes available 1 or more pumps that dis15 pense E–85 fuel at not less than a min16 imum percentage (specified in the regula17 tions) of the wholly-owned stations and the 

18 branded stations of the major oil company 

19 in each State. 


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1 ‘‘(ii) REQUIREMENT.—In specifying 

2 the minimum percentage under clause (i), 

3 the Secretary shall ensure that each major 

4 oil company installs or otherwise makes 

5 available 1 or more pumps described in 

6 that clause in each State in which the 

7 major oil company operates. 

8 ‘‘(E) FINANCIAL RESPONSIBILITY.—In 

9 promulgating regulations under subparagraph 

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

11 oil company described in that subparagraph as12 sumes full financial responsibility for the costs 

13 of installing or otherwise making available the 

14 pumps described in that subparagraph and any 

15 other equipment necessary (including tanks) to 

16 ensure that the pumps function properly. 

17 ‘‘(F) PRODUCTION CREDITS FOR EXCEED18 ING E–85 FUEL PUMPS INSTALLATION REQUIRE19 MENT.— 

20 ‘‘(i) EARNING AND PERIOD FOR AP21 PLYING CREDITS.—If the percentage of the 

22 wholly-owned stations and the branded sta23 tions of a major oil company at which the 

24 major oil company installs E–85 fuel 

25 pumps in a particular calendar year exVerDate Aug 31 2005 00:01 May 23, 2006 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2817.IS S2817

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1 ceeds the percentage required under sub2 paragraph (C), the major oil company 

3 earns credits under this paragraph, which 

4 may be applied to any of the 3 consecutive 

5 calendar years immediately after the cal6 endar year for which the credits are 

7 earned. 

8 ‘‘(ii) TRADING CREDITS.—Subject to 

9 clause (iii), a major oil company that has 

10 earned credits under clause (i) may sell 

11 credits to another major oil company to en12 able the purchaser to meet the requirement 

13 under subparagraph (C). 

14 ‘‘(iii) EXCEPTION.—A major oil com15 pany may not use credits purchased under 

16 clause (ii) to fulfill the geographic distribu17 tion requirement in subparagraph (D).’’. 

18 SEC. 103. MINIMUM FEDERAL FLEET REQUIREMENT. 

19 Section 303(b)(1) of the Energy Policy Act of 1992 

20 (42 U.S.C. 13212(b)(1)) is amended— 

21 (1) in subparagraph (C), by striking ‘‘and’’ 

22 after the semicolon; 

23 (2) in subparagraph (D), by striking ‘‘fiscal 

24 year 1999 and thereafter’’ and inserting ‘‘each of 

25 fiscal years 1999 through 2006; and’’; and 


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1 (3) by inserting after subparagraph (D) the fol2 lowing: 

3 ‘‘(E) 100 percent in fiscal year 2007 and 

4 thereafter,’’. 

5 SEC. 104. APPLICATION OF GASOHOL COMPETITION ACT OF 

6 1980. 

7 Section 26 of the Clayton Act (15 U.S.C. 26a) is 

8 amended— 

9 (1) by redesignating subsection (c) as sub10 section (d); 

11 (2) by inserting after subsection (b) the fol12 lowing: 

13 ‘‘(c) For purposes of subsection (a), restricting the 

14 right of a franchisee to install on the premises of that 

15 franchisee a renewable fuel pump, such as one that dis16 penses E–85, shall be considered an unlawful restriction.’’; 

17 and 

18 (3) in subsection (d) (as redesignated by para19 graph (1))— 

20 (A) by striking ‘‘section,’’ and inserting the 

21 following: ‘‘section— 

22 ‘‘(1) the term’’; 

23 (B) by striking the period at the end and 

24 inserting ‘‘; and’’; and 

25 (C) by adding at the end the following: 


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1 ‘‘(2) the term ‘gasohol’ includes any blend of 

2 ethanol and gasoline such as E–85.’’. 

3 TITLE II—DUAL FUELED 

4 AUTOMOBILES 

5 SEC. 201. REQUIREMENT TO MANUFACTURE DUAL FUELED 

6 AUTOMOBILES. 

7 (a) REQUIREMENT.— 

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

9 United States Code, is amended by inserting after 

10 section 32902 the following: 

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

12 automobiles 

13 ‘‘(a) REQUIREMENT.—Each manufacturer of new 

14 automobiles that are capable of operating on gasoline or 

15 diesel fuel shall ensure that the percentage of such auto16 mobiles, manufactured in any model year after model year 

17 2006 and distributed in commerce for sale in the United 

18 States, which are dual fueled automobiles is equal to not 

19 less than the applicable percentage set forth in the fol20 lowing table: 

The percentage of dual 

fueled automobiles 

For each of the following model manufactured shall 

years: be not less than: 

2007 ......................................................................................... 10

2008 ......................................................................................... 20

2009 ......................................................................................... 30

2010 ......................................................................................... 40

2011 ......................................................................................... 50

2012 ......................................................................................... 60

2013 ......................................................................................... 70

2014 ......................................................................................... 80


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The percentage of dual 

fueled automobiles 

For each of the following model manufactured shall 

years: be not less than: 

2015 ......................................................................................... 90

2016 and beyond ...................................................................... 100. 

1 ‘‘(b) PRODUCTION CREDITS FOR EXCEEDING FLEXI2 BLE FUEL AUTOMOBILE PRODUCTION REQUIREMENT.— 

3 ‘‘(1) EARNING AND PERIOD FOR APPLYING

4 CREDITS.—If the number of dual fueled automobiles 

5 manufactured by a manufacturer in a particular 

6 model year exceeds the number required under sub7 section (a), the manufacturer earns credits under 

8 this section, which may be applied to any of the 3 

9 consecutive model years immediately after the model 

10 year for which the credits are earned. 

11 ‘‘(2) TRADING CREDITS.—A manufacturer that 

12 has earned credits under paragraph (1) may sell 

13 credits to another manufacturer to enable the pur14 chaser to meet the requirement under subsection 

15 (a).’’. 

16 (2) TECHNICAL AMENDMENT.—The table of 

17 sections for chapter 329 of title 49, United States 

18 Code, is amended by inserting after the item relating 

19 to section 32902 the following: 

‘‘32902A. Requirement to manufacture dual fueled automobiles.’’. 

20 (b) ACTIVITIES TO PROMOTE THE USE OF CERTAIN

21 ALTERNATIVE FUELS.—The Secretary of Transportation 


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1 shall carry out activities to promote the use of fuel mix2 tures containing gasoline or diesel fuel and 1 or more al3 ternative fuels, including a mixture containing at least 85 

4 percent of methanol, denatured ethanol, and other alcohols 

5 by volume with gasoline or other fuels, to power auto6 mobiles in the United States. 

7 SEC. 202. MANUFACTURING INCENTIVES FOR DUAL 

8 FUELED AUTOMOBILES. 

9 Section 32905(b) of title 49, United States Code, is 

10 amended— 

11 (1) by redesignating paragraphs (1) and (2) as 

12 subparagraphs (A) and (B), respectively; 

13 (2) by inserting ‘‘(1)’’ before ‘‘Except’’; 

14 (3) by striking ‘‘model years 1993–2010’’ and 

15 inserting ‘‘model year 1993 through the first model 

16 year beginning not less than 18 months after the 

17 date of enactment of the Biofuels Security Act of 

18 2006’’; and 

19 (4) by adding at the end the following: 

20 ‘‘(2) Except as provided in paragraph (5) of 

21 this subsection, subsection (d) of this section, or sec22 tion 32904(a)(2) of this title, the Administrator 

23 shall measure the fuel economy for each model of 

24 dual fueled automobiles manufactured by a manufac25 turer in the first model year beginning not less than 


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1 30 months after the date of enactment of the 

2 Biofuels Security Act of 2006 by dividing 1.0 by the 

3 sum of— 

4 ‘‘(A) 0.7 divided by the fuel economy 

5 measured under section 32904(c) of this title 

6 when operating the model on gasoline or diesel 

7 fuel; and 

8 ‘‘(B) 0.3 divided by the fuel economy 

9 measured under subsection (a) when operating 

10 the model on alternative fuel. 

11 ‘‘(3) Except as provided in paragraph (5) of 

12 this subsection, subsection (d) of this section, or sec13 tion 32904(a)(2) of this title, the Administrator 

14 shall measure the fuel economy for each model of 

15 dual fueled automobiles manufactured by a manufac16 turer in the first model year beginning not less than 

17 42 months after the date of enactment of the 

18 Biofuels Security Act of 2006 by dividing 1.0 by the 

19 sum of— 

20 ‘‘(A) 0.9 divided by the fuel economy 

21 measured under section 32904(c) of this title 

22 when operating the model on gasoline or diesel 

23 fuel; and 


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1 ‘‘(B) 0.1 divided by the fuel economy 

2 measured under subsection (a) when operating 

3 the model on alternative fuel. 

4 ‘‘(4) Except as provided in subsection (d) of 

5 this section, or section 32904(a)(2) of this title, the 

6 Administrator shall measure the fuel economy for 

7 each model of dual fueled automobiles manufactured 

8 by a manufacturer in each model year beginning not 

9 less than 54 months after the date of enactment of 

10 the Biofuels Security Act of 2006 in accordance with 

11 section 32904(c) of this title. 

12 ‘‘(5) Notwithstanding paragraphs (2) through 

13 (4) of this subsection, the fuel economy for all dual 

14 fueled automobiles manufactured to comply with the 

15 requirements under section 32902A(a) of this title, 

16 including automobiles for which dual fueled auto17 mobile credits have been used or traded under sec18 tion 32902A(b) of this title, shall be measured in ac19 cordance with section 32904(c) of this title.’’. 

Æ 


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