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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2426 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                H. R. 2426

    To require the Secretary of Energy to award funds to study the 
  feasibility of constructing dedicated ethanol pipelines, to address 
 technical factors that prevent transportation of ethanol in existing 
  pipelines, and to increase the energy, economic, and environmental 
         security of the United States, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2007

    Mr. Boswell (for himself, Mr. Moran of Kansas, and Mr. Salazar) 
 introduced the following bill; which was referred to the Committee on 
                   Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL

 
    To require the Secretary of Energy to award funds to study the 
  feasibility of constructing dedicated ethanol pipelines, to address 
 technical factors that prevent transportation of ethanol in existing 
  pipelines, and to increase the energy, economic, and environmental 
         security of the United States, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ethanol Infrastructure Expansion Act 
of 2007''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) it is in the national interest to make greater use of 
        ethanol in transportation fuels;
            (2) ethanol is a clean, renewable fuel that provides public 
        health benefits in the form of reduced emissions, including 
        reduced greenhouse gas emissions that cause climate change;
            (3) ethanol use provides economic gains to agricultural 
        producers, biofuels producers, and rural areas;
            (4) ethanol use benefits the national security of the 
        United States by displacing the use of petroleum, much of which 
        is imported from foreign countries that are hostile to the 
        United States;
            (5) ethanol can reduce prices at the pump for motoring 
        consumers by extending fuel supplies due to the competitive 
        cost of ethanol relative to conventional gasoline;
            (6) ethanol faces shipping challenges in pipelines that 
        transport other liquid transportation fuels;
            (7) additional research and development can provide 
        solutions to overcome the barriers of shipping ethanol in 
        pipelines that transport other liquid transportation fuels;
            (8) currently ethanol is shipped by rail tanker cars, 
        barges, and trucks, all of which could, as ethanol production 
        expands, encounter capacity limits due to competing use demands 
        for the rail tanker cars, barges, and trucks;
            (9) as the United States ethanol market expands in the 
        coming years there is a need to evaluate the feasibility and 
        value for new construction of dedicated ethanol pipelines to 
        transport ethanol from the Midwest, where ethanol generally is 
        produced, to the Eastern and Western United States;
            (10) as of the date of enactment of this Act, dedicated 
        ethanol pipelines do not exist in the United States and will be 
        challenging to construct, at least initially;
            (11) ascertaining solutions to the technical barriers of 
        transporting ethanol in the existing pipeline system is 
        important because of the safety, reliability, and cost savings 
        pipeline transportation provides to the public; and
            (12) having an ethanol pipeline study completed in the very 
        near term is important because the construction of 1 or more 
        dedicated ethanol pipelines would take at least several years 
        to complete.

SEC. 3. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of Energy.

SEC. 4. FEASIBILITY STUDIES.

    (a) In General.--The Secretary, in coordination with the Secretary 
of Transportation, shall spend up to $1,000,000 to fund feasibility 
studies for the construction of dedicated ethanol pipelines.
    (b) Conduct of Studies.--
            (1) In general.--The Secretary shall--
                    (A) through a competitive solicitation process, 
                select 1 or more firms having capabilities in the 
                planning, development, and construction of dedicated 
                ethanol pipelines to carry out the feasibility studies 
                described in subsection (a); or
                    (B) carry out the feasibility studies in 
                conjunction with such firms.
            (2) Timing.--
                    (A) In general.--If the Secretary elects to select 
                1 or more firms under paragraph (1)(A), the Secretary 
                shall award funding under this section not later than 
                120 days after the date of enactment of this Act.
                    (B) Studies.--As a condition of receiving funds 
                under this section, a recipient of funding shall agree 
                to submit to the Secretary a completed feasibility 
                study not later than 360 days after the date of 
                enactment of this Act.
    (c) Study Factors.--Feasibility studies funded under this Act shall 
include consideration of--
            (1) existing or potential barriers to dedicated ethanol 
        pipelines, including technical, siting, financing, and 
        regulatory barriers;
            (2) potential evolutionary pathways for the development of 
        an ethanol pipeline transport system, such as starting with 
        localized gathering networks as compared to major interstate 
        ethanol pipelines to carry larger volumes from the Midwest to 
        the East or West coast;
            (3) market risk, including throughput risk, and ways of 
        mitigating the risk;
            (4) regulatory, financing, and siting options that would 
        mitigate risk in these areas and help ensure the construction 
        of dedicated ethanol pipelines;
            (5) financial incentives that may be necessary for the 
        construction of dedicated ethanol pipelines, including the 
        return on equity that sponsors of the first dedicated ethanol 
        pipelines will require to invest in the pipelines;
            (6) the quantity of ethanol production that would make 
        dedicated pipelines economically feasible;
            (7) technical factors that may compromise the safe 
        transportation of ethanol in pipelines;
            (8) identifying remedial and preventative measures to 
        ensure pipeline integrity; and
            (9) such other factors as the Secretary considers to be 
        appropriate.
    (d) Confidentiality.--If a recipient of funding under this section 
requests confidential treatment for critical energy infrastructure 
information or commercially-sensitive data contained in a feasibility 
study submitted by the recipient under subsection (b)(2)(B), the 
Secretary shall offer to enter into a confidentiality agreement with 
the recipient to maintain the confidentiality of the submitted 
information.
    (e) Review; Report.--The Secretary shall--
            (1) review the feasibility studies submitted under 
        subsection (b)(2)(B) or carried out under subsection (b)(1)(B); 
        and
            (2) not later than 15 months after the date of enactment of 
        this Act, submit to Congress a report that includes--
                    (A) information about the potential benefits of 
                constructing dedicated ethanol pipelines; and
                    (B) recommendations for legislation that could help 
                provide for the construction of dedicated ethanol 
                pipelines.

SEC. 5. EXISTING PIPELINE TECHNICAL AND SAFETY RESEARCH AND 
              DEVELOPMENT.

    (a) In General.--The Secretary, in coordination with the Secretary 
of Transportation, shall expend up to $1,000,000 to carry out a program 
of research, development, and demonstration to address technical 
factors that prevent the transportation of ethanol and biodiesel in 
existing hazardous liquid interstate transmission pipelines.
    (b) Conduct of Studies.--
            (1) In general.--The Secretary shall--
                    (A) through a competitive solicitation process, 
                select 1 or more firms having capabilities in the 
                planning, development, construction, and modification 
                of existing hazardous liquids interstate pipelines to 
                carry out the program described in subsection (a); or
                    (B) carry out the program in conjunction with such 
                firms.
            (2) Timing.--
                    (A) In general.--If the Secretary elects to select 
                1 or more firms under paragraph (1)(A), the Secretary 
                shall award funding under this section not later than 
                120 days after the date of enactment of this Act.
                    (B) Studies.--As a condition of receiving funds 
                under this section, a recipient of funding shall agree 
                to submit to the Secretary a completed report on the 
                recipient's findings not later than 360 days after the 
                date of enactment of this Act.
    (c) Program Elements.--The program shall include research, 
development, and demonstration activities related to--
            (1) identifying and preventing conditions that lead to 
        stress corrosion cracking or that might otherwise compromise 
        the integrity of the pipeline system;
            (2) product quality assurance during pipeline 
        transportation; and
            (3) other technical factors for the transportation of 
        ethanol and biodiesel that might compromise the integrity of 
        the pipeline system.
    (d) Confidentiality.--If a recipient of funding under this section 
requests confidential treatment for critical energy infrastructure 
information or commercially-sensitive data contained in a report 
submitted by the recipient under subsection (b)(2)(B), the Secretary 
shall offer to enter into a confidentiality agreement with the 
recipient to maintain the confidentiality of the submitted information.
    (e) Review; Report.--The Secretary shall--
            (1) review the report submitted under subsection (b)(2)(B) 
        or carried out under subsection (b)(1)(B); and
            (2) not later than 15 months after the date of enactment of 
        this Act, submit to Congress a report that includes--
                    (A) information about the potential benefits of 
                modifying existing hazardous liquid interstate 
                transmission pipelines to allow the transportation of 
                ethanol and biodiesel; and
                    (B) recommendations for legislation that could help 
                provide for the modification of existing hazardous 
                liquid interstate transmission pipelines to allow the 
                transportation of ethanol and biodiesel.

SEC. 6. FUNDING.

    (a) There are authorized to be appropriated to the Secretary to 
carry out section 4 of this Act $1,000,000 for fiscal year 2008, to 
remain available until expended.
    (b) There are authorized to be appropriated to the Secretary to 
carry out section 5 of this Act $1,000,000 for fiscal year 2008, to 
remain available until expended.
                                 <all>
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