I 

111TH CONGRESS 

1ST SESSION H. R. 1787 

To amend the Clean Air Act regarding transportation fuels and establishment 

of a low carbon fuel standard. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 30, 2009 

Mr. INSLEE introduced the following bill; which was referred to the Committee 

on Energy and Commerce 

A BILL 

To amend the Clean Air Act regarding transportation fuels 

and establishment of a low carbon fuel standard. 

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 ‘‘Low Carbon Fuel 

5 Standard Act of 2009’’. 

6 SEC. 2. LOW CARBON FUEL STANDARD. 

7 At the end of title II of the Clean Air Act (42 U.S.C. 

8 7521 et seq.) is amended by adding at the end the fol9 lowing: 


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1 ‘‘SEC. 841. LOW CARBON FUEL STANDARD. 

2 ‘‘(a) DEFINITIONS.—For purposes of this section: 

3 ‘‘(1) FUEL EMISSION BASELINE.—The term 

4 ‘fuel emission baseline’ means the average lifecycle 

5 greenhouse gas emissions per unit of energy, as de6 termined by the Administrator, of all transportation 

7 fuels sold or introduced into commerce in any of the 

8 50 States or the District of Columbia in calendar 

9 year 2005. 

10 ‘‘(2) TRANSPORTATION FUEL.—The term 

11 ‘transportation fuel’ means fuel for use in motor ve12 hicles, motor vehicle engines, nonroad vehicles, 

13 nonroad engines, and aircraft. The Administrator 

14 may, at his discretion, include fuel for use in ocean15 going vessels and adjust the fuel emission baseline 

16 as appropriate to reflect the inclusion of such fuel. 

17 ‘‘(3) TRANSPORTATION FUEL PROVIDER.—The 

18 term ‘transportation fuel provider’ includes any indi19 vidual or entity that produces, refines, blends, or im20 ports any transportation fuel. 

21 ‘‘(b) REGULATIONS.— 

22 ‘‘(1) STANDARD.—Not later than 3 years after 

23 enactment of this section, the Administrator shall 

24 promulgate regulations under section 211(c) and 

25 this section that— 


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1 ‘‘(A) determine the lifecycle greenhouse 

2 gas emissions of all transportation fuels; 

3 ‘‘(B) determine the fuel emission baseline; 

4 ‘‘(C) apply to refineries, blenders, and im5 porters, as appropriate, and to such other 

6 transportation fuel providers as determined by 

7 the Administrator; 

8 ‘‘(D) ensure that, for each year from 2014 

9 through 2022, the annual average lifecycle 

10 greenhouse gas emissions, per unit of energy as 

11 determined by the Administrator, of transpor12 tation fuel, excluding renewable fuel used to 

13 meet the obligations of section 211(o), sold or 

14 introduced into commerce by such transpor15 tation fuel providers in any of the 50 States or 

16 the District of Columbia, does not exceed the 

17 fuel emission baseline; and 

18 ‘‘(E) ensure that, for 2023 and each year 

19 thereafter, such transportation fuel providers 

20 reduce the annual average lifecycle greenhouse 

21 gas emissions, per unit of energy as determined 

22 by the Administrator, for transportation fuel 

23 that is sold or introduced into commerce in any 

24 of the 50 States or the District of Columbia, to 

25 the maximum extent practicable, taking into 


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1 consideration cost, energy, and other environ2 mental factors, and that— 

3 ‘‘(i) for calendar year 2023 and later, 

4 the annual average lifecycle greenhouse gas 

5 emissions is at least 5 percent below the 

6 fuel emission baseline; and 

7 ‘‘(ii) for calendar year 2030 and later, 

8 the annual average lifecycle greenhouse gas 

9 emissions is at least 10 percent below the 

10 fuel emission baseline. 

11 ‘‘(2) REVIEW.—The Administrator shall from 

12 time to time, but no less than every 5 years begin13 ning in 2020, review and revise as appropriate the 

14 annual average lifecycle greenhouse gas emission re15 quirements of the regulations issued under this sub16 section. 

17 ‘‘(3) PROVISIONS.—The regulations issued 

18 under this subsection— 

19 ‘‘(A) shall contain compliance provisions 

20 applicable to transportation fuel providers and 

21 other persons, as appropriate, to ensure that 

22 the requirements of this subsection are met; 

23 ‘‘(B) shall not impose any per-gallon obli24 gation regarding the amount of lifecycle greenVerDate Nov 24 2008 21:27 Mar 31, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1787.IH H1787

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1 house gas emissions per unit of energy as deter2 mined by the Administrator; and 

3 ‘‘(C) shall set the lifecycle greenhouse gas 

4 emissions of biofuels derived from biomass 

5 other than renewable biomass at a level no 

6 higher than the fuel emission baseline. 

7 ‘‘(4) ELECTION TO PARTICIPATE.— 

8 ‘‘(A) PARTICIPATION.—For any transpor9 tation fuel provider which the Administrator 

10 has not yet determined to be subject to the reg11 ulations under this subsection, and for any pro12 vider of a non-transportation fuel, the Adminis13 trator, at his discretion, may allow the fuel pro14 vider to elect to participate in the program 

15 under this subsection, subject to requirements 

16 established by the regulation. 

17 ‘‘(B) REGULATORY PROVISIONS.—Regula18 tions implementing this paragraph shall in19 clude— 

20 ‘‘(i) provisions for tracking of the fuel 

21 used for transportation purposes separately 

22 from fuel used for other purposes; and 

23 ‘‘(ii) any other provisions determined 

24 appropriate by the Administrator to carry 

25 out this paragraph. 


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1 ‘‘(c) CREDITS.— 

2 ‘‘(1) IN GENERAL.—The regulations under sub3 section (b) shall permit transportation fuel providers 

4 to generate credits for achieving, during a calendar 

5 year, greater reductions for the fuel produced or im6 ported by the fuel provider than are required by 

7 such regulations. The Administrator shall determine 

8 the appropriate amount of credits and appropriate 

9 conditions, if any, on the duration, trading, and use 

10 of credits. The Administrator shall, with appropriate 

11 conditions, allow the use of credits or renewable 

12 identification numbers generated under section 

13 211(o). 

14 ‘‘(2) ELECTRICITY.—The Administrator may, 

15 at his discretion, issue regulations providing for— 

16 ‘‘(A) the generation of credits for elec17 tricity used as a transportation fuel and gen18 erated by a source other than the vehicle; and 

19 ‘‘(B) the assignment of those credits to the 

20 manufacturers or importers of such vehicles or 

21 to other persons as deemed appropriate by the 

22 Administrator. 

23 ‘‘(3) COMPLIANCE.—Each transportation fuel 

24 provider subject to the regulations promulgated 

25 under this section shall demonstrate compliance, inVerDate Nov 24 2008 21:27 Mar 31, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1787.IH H1787

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1 cluding, as necessary, through the use of credits 

2 generated, banked or purchased. 

3 ‘‘(4) INABILITY TO GENERATE OR PURCHASE

4 SUFFICIENT CREDITS.—A transportation fuel pro5 vider that is unable to generate or purchase suffi6 cient credits to meet the requirements of the regula7 tions under subsection (b) may carry the compliance 

8 deficit forward, subject to the condition that the fuel 

9 provider, for the calendar year following the year for 

10 which the deficit is created— 

11 ‘‘(A) achieves compliance; and 

12 ‘‘(B) generates or purchases additional 

13 credits to offset the deficit from the preceding 

14 calendar year. 

15 ‘‘(d) WAIVERS.—The Administrator, in consultation 

16 with the Secretary of Agriculture and the Secretary of En17 ergy, may waive the requirements of the regulations under 

18 subsection (b) in whole or in part on petition by one or 

19 more States, by any person subject to the requirements 

20 of this section, or by the Administrator on his own motion 

21 by revising the average lifecycle greenhouse gas emissions 

22 reduction required through regulations under subsection 

23 (b) based on a determination by the Administrator, after 

24 public notice and opportunity for comment, that— 


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1 ‘‘(1) implementation of the requirement would 

2 severely harm the economy or environment of a 

3 State, a region, or the United States; or 

4 ‘‘(2) there is an inadequate domestic supply of 

5 fuels to meet the requirements of this section. 

6 ‘‘(e) ENVIRONMENTAL AND RESOURCE CONSERVA7 TION IMPACTS.—Not later than 2 years after the promul8 gation of regulations under subsection (b), the Adminis9 trator shall complete a study to determine the environ10 mental and resource conservation impacts of the require11 ments of such regulations, including impacts on air and 

12 water quality. 

13 ‘‘(f) ENERGY SECURITY AND LEAKAGE.—Not later 

14 than 18 months after the promulgation of regulations 

15 under subsection (b), the Administrator shall complete a 

16 study to determine the effect of the requirements of such 

17 regulations on energy security. The study shall also assess 

18 the potential shifting of fuel feedstocks and fuel products 

19 internationally as a result of such requirements and shall 

20 determine the environmental and energy security implica21 tions of such leakage. 

22 ‘‘(g) TRANSITION.—Section 211(o) shall not apply to 

23 fuel sold or introduced into commerce after December 31, 

24 2022. Notwithstanding the preceding sentence, the definiVerDate Nov 24 2008 21:27 Mar 31, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1787.IH H1787

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1 tions in section 211(o) shall continue to apply except as 

2 otherwise noted.’’. 

Æ 


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