I 

111TH CONGRESS 

1ST SESSION H. R. 1847 

To require the inclusion of coal-derived fuel at certain volumes in aviation 

fuel, motor vehicle fuel, home heating oil, and boiler fuel. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2009 

Mrs. CAPITO (for herself and Mr. SHIMKUS) introduced the following bill; 

which was referred to the Committee on Energy and Commerce 

A BILL 

To require the inclusion of coal-derived fuel at certain volumes in aviation fuel, motor vehicle fuel, home heating 

oil, and boiler fuel. 

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 ‘‘Clean Coal-Derived 

5 Fuels for Energy Security Act of 2009’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) CLEAN COAL-DERIVED FUEL.— 


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1 (A) IN GENERAL.—The term ‘‘clean coal2 derived fuel’’ means aviation fuel, motor vehicle 

3 fuel, home heating oil, or boiler fuel that is— 

4 (i) substantially derived from the coal 

5 resources of the United States; and 

6 (ii) refined or otherwise processed at a 

7 facility located in the United States that 

8 captures up to 100 percent of the carbon 

9 dioxide emissions that would otherwise be 

10 released at the facility. 

11 (B) INCLUSIONS.—The term ‘‘clean coal12 derived fuel’’ may include any other resource 

13 that is extracted, grown, produced, or recovered 

14 in the United States. 

15 (2) COVERED FUEL.—The term ‘‘covered fuel’’ 

16 means— 

17 (A) aviation fuel; 

18 (B) motor vehicle fuel; 

19 (C) home heating oil; and 

20 (D) boiler fuel. 

21 (3) SMALL REFINERY.—The term ‘‘small refin22 ery’’ means a refinery for which the average aggre23 gate daily crude oil throughput for a calendar year 

24 (as determined by dividing the aggregate throughput 


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1 for the calendar year by the number of days in the 

2 calendar year) does not exceed 75,000 barrels. 

3 SEC. 3. CLEAN COAL-DERIVED FUEL PROGRAM. 

4 (a) PROGRAM.— 

5 (1) IN GENERAL.—Not later than 1 year after 

6 the date of enactment of this Act, the President 

7 shall promulgate regulations to ensure that covered 

8 fuel sold or introduced into commerce in the United 

9 States (except in noncontiguous States or terri10 tories), on an annual average basis, contains the ap11 plicable volume of clean coal-derived fuel determined 

12 in accordance with paragraph (4). 

13 (2) PROVISIONS OF REGULATIONS.—Regardless 

14 of the date of promulgation, the regulations promul15 gated under paragraph (1)— 

16 (A) shall contain compliance provisions ap17 plicable to refineries, blenders, distributors, and 

18 importers, as appropriate, to ensure that— 

19 (i) the requirements of this subsection 

20 are met; and 

21 (ii) clean coal-derived fuels produced 

22 from facilities for the purpose of compli23 ance with this Act result in life cycle 

24 greenhouse gas emissions that are not 

25 greater than gasoline; and 


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1 (B) shall not— 

2 (i) restrict geographic areas in the 

3 contiguous United States in which clean 

4 coal-derived fuel may be used; or 

5 (ii) impose any per-gallon obligation 

6 for the use of clean coal-derived fuel. 

7 (3) RELATIONSHIP TO OTHER REGULATIONS.— 

8 Regulations promulgated under this paragraph shall, 

9 to the maximum extent practicable, incorporate the 

10 program structure, compliance and reporting re11 quirements established under the final regulations 

12 promulgated to implement the renewable fuel pro13 gram established by the amendment made by section 

14 1501(a)(2) of the Energy Policy Act of 2005 (Public 

15 Law 109–58; 119 Stat. 1067). 

16 (4) APPLICABLE VOLUME.— 

17 (A) CALENDAR YEARS 2015 THROUGH

18 2022.—For the purpose of this subsection, the 

19 applicable volume for any of calendar years 

20 2015 through 2022 shall be determined in ac21 cordance with the following table: 

Applicable volume of 

clean coal-derived fuel 

Calendar year: (in billions of gallons): 

2015 ................................................................................................... 0.75

2016 ................................................................................................... 1.5

2017 ................................................................................................... 2.25

2018 ................................................................................................... 3.00

2019 ................................................................................................... 3.75

2020 ................................................................................................... 4.5


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Applicable volume of 

clean coal-derived fuel 

Calendar year: (in billions of gallons): 

2021 ................................................................................................... 5.25

2022 ................................................................................................... 6.0. 

1 (B) CALENDAR YEAR 2023 AND THERE2 AFTER.—Subject to subparagraph (C), for the 

3 purposes of this subsection, the applicable vol4 ume for calendar year 2023 and each calendar 

5 year thereafter shall be determined by the 

6 President, in coordination with the Secretary 

7 and the Administrator of the Environmental 

8 Protection Agency, based on a review of the im9 plementation of the program during calendar 

10 years 2015 through 2022, including a review 

11 of— 

12 (i) the impact of clean coal-derived 

13 fuels on the energy security of the United 

14 States; 

15 (ii) the expected annual rate of future 

16 production of clean coal-derived fuels; and 

17 (iii) the impact of the use of clean 

18 coal-derived fuels on other factors, includ19 ing job creation, rural economic develop20 ment, and the environment. 

21 (C) MINIMUM APPLICABLE VOLUME.—For 

22 the purpose of this subsection, the applicable 

23 volume for calendar year 2023 and each calVerDate Nov 24 2008 00:03 Apr 03, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1847.IH H1847

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1 endar year thereafter shall be equal to the prod2 uct obtained by multiplying— 

3 (i) the number of gallons of covered 

4 fuel that the President estimates will be 

5 sold or introduced into commerce in the 

6 calendar year; and 

7 (ii) the ratio that— 

8 (I) 6,000,000,000 gallons of 

9 clean coal-derived fuel; bears to 

10 (II) the number of gallons of cov11 ered fuel sold or introduced into com12 merce in calendar year 2022. 

13 (b) APPLICABLE PERCENTAGES.— 

14 (1) PROVISION OF ESTIMATE OF VOLUMES OF

15 CERTAIN FUEL SALES.—Not later than October 31 

16 of each of calendar years 2015 through 2021, the 

17 Administrator of the Energy Information Adminis18 tration shall provide to the President an estimate, 

19 with respect to the following calendar year, of the 

20 volumes of covered fuel projected to be sold or intro21 duced into commerce in the United States. 

22 (2) DETERMINATION OF APPLICABLE PERCENT23 AGES.— 

24 (A) IN GENERAL.—Not later than Novem25 ber 30 of each of calendar years 2015 through 


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1 2022, based on the estimate provided under 

2 paragraph (1), the President shall determine 

3 and publish in the Federal Register, with re4 spect to the following calendar year, the clean 

5 coal-derived fuel obligation that ensures that 

6 the requirements of subsection (a) are met. 

7 (B) REQUIRED ELEMENTS.—The clean 

8 coal-derived fuel obligation determined for a 

9 calendar year under subparagraph (A) shall— 

10 (i) be applicable to refineries, blend11 ers, and importers, as appropriate; 

12 (ii) be expressed in terms of a volume 

13 percentage of covered fuel sold or intro14 duced into commerce in the United States; 

15 and 

16 (iii) subject to paragraph (3)(A), con17 sist of a single applicable percentage that 

18 applies to all categories of persons speci19 fied in clause (i). 

20 (3) ADJUSTMENTS.—In determining the appli21 cable percentage for a calendar year, the President 

22 shall make adjustments— 

23 (A) to prevent the imposition of redundant 

24 obligations on any person specified in para25 graph (2)(B)(i); and 


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1 (B) to account for the use of clean coal-de2 rived fuel during the previous calendar year by 

3 small refineries that are exempt under sub4 section (f). 

5 (c) VOLUME CONVERSION FACTORS FOR CLEAN

6 COAL-DERIVED FUELS BASED ON ENERGY CONTENT.— 

7 (1) IN GENERAL.—For the purpose of sub8 section (a), the President shall assign values to spe9 cific types of clean coal-derived fuel for the purpose 

10 of satisfying the fuel volume requirements of sub11 section (a)(4) in accordance with this subsection. 

12 (2) ENERGY CONTENT RELATIVE TO DIESEL

13 FUEL.—For clean coal-derived fuels, 1 gallon of the 

14 clean coal-derived fuel shall be considered to be the 

15 equivalent of 1 gallon of diesel fuel multiplied by the 

16 ratio that— 

17 (A) the number of British thermal units of 

18 energy produced by the combustion of 1 gallon 

19 of the clean coal-derived fuel (as measured 

20 under conditions determined by the Secretary); 

21 bears to 

22 (B) the number of British thermal units of 

23 energy produced by the combustion of 1 gallon 

24 of diesel fuel (as measured under conditions deVerDate Nov 24 2008 00:03 Apr 03, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1847.IH H1847

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1 termined by the Secretary to be comparable to 

2 conditions described in subparagraph (A)). 

3 (d) CREDIT PROGRAM.— 

4 (1) IN GENERAL.—The President, in consulta5 tion with the Secretary and the clean coal-derived 

6 fuel requirement of this section. 

7 (2) MARKET TRANSPARENCY.—In carrying out 

8 the credit program under this subsection, the Presi9 dent shall facilitate price transparency in markets 

10 for the sale and trade of credits, with due regard for 

11 the public interest, the integrity of those markets, 

12 fair competition, and the protection of consumers. 

13 (e) WAIVERS.— 

14 (1) IN GENERAL.—The President, in consulta15 tion with the Secretary and the Administrator of the 

16 Environmental Protection Agency, may waive the re17 quirements of subsection (a) in whole or in part on 

18 petition by 1 or more States by reducing the na19 tional quantity of clean coal-derived fuel required 

20 under subsection (a), based on a determination by 

21 the President (after public notice and opportunity 

22 for comment), that— 

23 (A) implementation of the requirement 

24 would severely harm the economy or environVerDate Nov 24 2008 00:03 Apr 03, 2009 Jkt 079200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1847.IH H1847

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1 ment of a State, a region, or the United States; 

2 or 

3 (B) extreme and unusual circumstances 

4 exist that prevent distribution of an adequate 

5 supply of domestically produced clean coal-de6 rived fuel to consumers in the United States. 

7 (2) PETITIONS FOR WAIVERS.—The President, 

8 in consultation with the Secretary and the Adminis9 trator of the Environmental Protection Agency, shall 

10 approve or disapprove a State petition for a waiver 

11 of the requirements of subsection (a) within 90 days 

12 after the date on which the petition is received by 

13 the President. 

14 (3) TERMINATION OF WAIVERS.—A waiver 

15 granted under paragraph (1) shall terminate after 1 

16 year, but may be renewed by the President after 

17 consultation with the Secretary and the Adminis18 trator of the Environmental Protection Agency. 

19 (f) SMALL REFINERIES.— 

20 (1) TEMPORARY EXEMPTION.— 

21 (A) IN GENERAL.—The requirements of 

22 subsection (a) shall not apply to small refineries 

23 until calendar year 2018. 

24 (B) EXTENSION OF EXEMPTION.— 


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1 (i) STUDY BY SECRETARY.—Not later 

2 than December 31, 2013, the Secretary 

3 shall submit to the President and Congress 

4 a report describing the results of a study 

5 to determine whether compliance with the 

6 requirements of subsection (a) would im7 pose a disproportionate economic hardship 

8 on small refineries. 

9 (ii) EXTENSION OF EXEMPTION.—In 

10 the case of a small refinery that the Sec11 retary determines under clause (i) would 

12 be subject to a disproportionate economic 

13 hardship if required to comply with sub14 section (a), the President shall extend the 

15 exemption under subparagraph (A) for the 

16 small refinery for a period of not less than 

17 2 additional years. 

18 (2) PETITIONS BASED ON DISPROPORTIONATE

19 ECONOMIC HARDSHIP.— 

20 (A) EXTENSION OF EXEMPTION.—A small 

21 refinery may at any time petition the President 

22 for an extension of the exemption under para23 graph (1) for the reason of disproportionate 

24 economic hardship. 


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1 (B) EVALUATION OF PETITIONS.—In eval2 uating a petition under subparagraph (A), the 

3 President, in consultation with the Secretary, 

4 shall consider the findings of the study under 

5 paragraph (1)(B) and other economic factors. 

6 (C) DEADLINE FOR ACTION ON PETI7 TIONS.—The President shall act on any petition 

8 submitted by a small refinery for a hardship ex9 emption not later than 90 days after the date 

10 of receipt of the petition. 

11 (3) OPT-IN FOR SMALL REFINERIES.—A small 

12 refinery shall be subject to the requirements of sub13 section (a) if the small refinery notifies the Presi14 dent that the small refinery waives the exemption 

15 under paragraph (1). 

16 (g) PENALTIES AND ENFORCEMENT.— 

17 (1) CIVIL PENALTIES.— 

18 (A) IN GENERAL.—Any person that vio19 lates a regulation promulgated under subsection 

20 (a), or that fails to furnish any information re21 quired under such a regulation, shall be liable 

22 to the United States for a civil penalty of not 

23 more than the total of— 

24 (i) $25,000 for each day of the viola25 tion; and 


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1 (ii) the amount of economic benefit or 

2 savings received by the person resulting 

3 from the violation, as determined by the 

4 President. 

5 (B) COLLECTION.—Civil penalties under 

6 subparagraph (A) shall be assessed by, and col7 lected in a civil action brought by, the Secretary 

8 or such other officer of the United States as is 

9 designated by the President. 

10 (2) INJUNCTIVE AUTHORITY.— 

11 (A) IN GENERAL.—The district courts of 

12 the United States shall have jurisdiction to— 

13 (i) restrain a violation of a regulation 

14 promulgated under subsection (a); 

15 (ii) award other appropriate relief; 

16 and 

17 (iii) compel the furnishing of informa18 tion required under the regulation. 

19 (B) ACTIONS.—An action to restrain such 

20 violations and compel such actions shall be 

21 brought by and in the name of the United 

22 States. 

23 (C) SUBPOENAS.—In the action, a sub24 poena for a witness who is required to attend 


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1 a district court in any district may apply in any 

2 other district. 

3 (h) EFFECTIVE DATE.—Except as otherwise specifi4 cally provided in this section, this section takes effect on 

5 January 1, 2015. 

Æ 


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