II 

112TH CONGRESS 

1ST SESSION S. 187 

To provide for the expansion of the biofuels market. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 25 (legislative day, JANUARY 5), 2011 

Mr. HARKIN (for himself, Mr. JOHNSON of South Dakota, Ms. KLOBUCHAR, 

and Mr. FRANKEN) introduced the following bill; which was read twice 

and referred to the Committee on Energy and Natural Resources 

A BILL 

To provide for the expansion of the biofuels market. 

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 ‘‘Biofuels Market Ex5 pansion Act of 2011’’. 

6 SEC. 2. 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: 


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1 ‘‘§ 32902A. Requirement to manufacture dual fueled 

2 automobiles and light duty trucks 

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

4 following table, each manufacturer shall ensure that the 

5 percentage of automobiles and light duty trucks manufac6 tured by the manufacturer for sale in the United States 

7 that are dual fueled automobiles and light duty trucks is 

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

9 in the following table: 

‘‘Model Year Percentage 

Model years 2014 and 2015 ........................................................ 50 percent

Model year 2016 and each subsequent model year ..................... 90 percent. 

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

11 automobiles or light duty trucks that operate only on elec12 tricity.’’. 

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

14 for chapter 329 of title 49, United States Code, is amend15 ed by inserting after the item relating to section 32902 

16 the following: 

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

trucks.’’. 

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

18 date of the enactment of this Act, the Secretary of Trans19 portation shall prescribe regulations to carry out the 

20 amendments made by this Act. 

21 SEC. 3. BLENDER PUMP PROMOTION. 

22 (a) BLENDER PUMP GRANT PROGRAM.— 


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1 (1) DEFINITIONS.—In this subsection: 

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

3 pump’’ means an automotive fuel dispensing 

4 pump capable of dispensing at least 3 different 

5 blends of gasoline and ethanol, as selected by 

6 the pump operator, including blends ranging 

7 from 0 percent ethanol to 85 percent denatured 

8 ethanol, as determined by the Secretary. 

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

10 means a blend of gasoline approximately 85 

11 percent of the content of which is ethanol. 

12 (C) ETHANOL FUEL BLEND.—The term 

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

14 and ethanol, with a minimum of 0 percent and 

15 maximum of 85 percent of the content of which 

16 is denatured ethanol. 

17 (D) MAJOR FUEL DISTRIBUTOR.— 

18 (i) IN GENERAL.—The term ‘‘major 

19 fuel distributor’’ means any person that 

20 owns a refinery or directly markets the 

21 output of a refinery. 

22 (ii) EXCLUSION.—The term ‘‘major 

23 fuel distributor’’ does not include any per24 son that directly markets through less than 

25 50 retail fueling stations. 


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1 (E) 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 for 

9 the direct retail sale of ethanol fuel blends (in10 cluding E–85 fuel), including blender pumps 

11 and storage tanks; and 

12 (B) providing subgrants to direct retailers 

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

14 the purpose of installing fuel infrastructure for 

15 the direct retail sale of ethanol fuel blends (in16 cluding E–85 fuel), including blender pumps 

17 and storage tanks. 

18 (3) LIMITATION.—A major fuel distributor shall 

19 not be eligible for a grant or subgrant under this 

20 subsection. 

21 (4) FEDERAL SHARE.—The Federal share of 

22 the cost of a project carried out under this sub23 section shall be up to 50 percent of the total cost of 

24 the project. 


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1 (5) REVERSION.—If an eligible facility or re2 tailer that receives a grant or subgrant under this 

3 subsection does not offer ethanol fuel blends for sale 

4 for at least 2 years during the 4-year period begin5 ning on the date of installation of the blender pump, 

6 the eligible facility or retailer shall be required to 

7 repay to the Secretary an amount determined to be 

8 appropriate by the Secretary, but not more than the 

9 amount of the grant provided to the eligible facility 

10 or retailer under this subsection. 

11 (6) AUTHORIZATION OF APPROPRIATIONS.— 

12 There are authorized to be appropriated to the Sec13 retary to carry out this subsection, to remain avail14 able until expended— 

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

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

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

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

19 and 

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

21 (b) INSTALLATION OF BLENDER PUMPS BY MAJOR

22 FUEL DISTRIBUTORS AT OWNED STATIONS AND BRAND23 ED STATIONS.—Section 211(o) of the Clean Air Act (42 

24 U.S.C. 7545(o)) is amended by adding at the end the fol25 lowing: 


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1 ‘‘(13) INSTALLATION OF BLENDER PUMPS BY

2 MAJOR FUEL DISTRIBUTORS AT OWNED STATIONS

3 AND BRANDED STATIONS.— 

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

5 ‘‘(i) E–85 FUEL.—The term ‘E–85 

6 fuel’ means a blend of gasoline approxi7 mately 85 percent of the content of which 

8 is ethanol. 

9 ‘‘(ii) ETHANOL FUEL BLEND.—The 

10 term ‘ethanol fuel blend’ means a blend of 

11 gasoline and ethanol, with a minimum of 0 

12 percent and maximum of 85 percent of the 

13 content of which is denatured ethanol. 

14 ‘‘(iii) MAJOR FUEL DISTRIBUTOR.— 

15 ‘‘(I) IN GENERAL.—The term 

16 ‘major fuel distributor’ means any 

17 person that owns a refinery or directly 

18 markets the output of a refinery. 

19 ‘‘(II) EXCLUSION.—The term 

20 ‘major fuel distributor’ does not in21 clude any person that directly markets 

22 through less than 50 retail fueling 

23 stations. 

24 ‘‘(iv) SECRETARY.—The term ‘Sec25 retary’ means the Secretary of Energy, 


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1 acting in consultation with the Adminis2 trator of the Environmental Protection 

3 Agency and the Secretary of Agriculture. 

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

5 promulgate regulations to ensure that each 

6 major fuel distributor that sells or introduces 

7 gasoline into commerce in the United States 

8 through majority-owned stations or branded 

9 stations installs or otherwise makes available 1 

10 or more blender pumps that dispense E–85 fuel 

11 and ethanol fuel blends (including any other 

12 equipment necessary, such as tanks, to ensure 

13 that the pumps function properly) for a period 

14 of not less than 5 years at not less than the ap15 plicable percentage of the majority-owned sta16 tions and the branded stations of the major fuel 

17 distributor specified in subparagraph (C). 

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

19 purpose of subparagraph (B), the applicable 

20 percentage of the majority-owned stations and 

21 the branded stations shall be determined in ac22 cordance with the following table: 


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‘‘Applicable percentage of 

majority-owned stations 

and branded stations 

Calendar year: Percent: 

2014 ............................................................................................. 10

2016 ............................................................................................. 20

2018 ............................................................................................. 35

2020 and each calendar year thereafter ...................................... 50. 

1 ‘‘(D) GEOGRAPHIC DISTRIBUTION.— 

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

3 (ii), in promulgating regulations under 

4 subparagraph (B), the Secretary shall en5 sure that each major fuel distributor de6 scribed in that subparagraph installs or 

7 otherwise makes available 1 or more blend8 er pumps that dispense E–85 fuel and eth9 anol fuel blends at not less than a min10 imum percentage (specified in the regula11 tions) of the majority-owned stations and 

12 the branded stations of the major fuel dis13 tributors in each State. 

14 ‘‘(ii) REQUIREMENT.—In specifying 

15 the minimum percentage under clause (i), 

16 the Secretary shall ensure that each major 

17 fuel distributor installs or otherwise makes 

18 available 1 or more blender pumps de19 scribed in that clause in each State in 

20 which the major fuel distributor operates. 


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1 ‘‘(E) FINANCIAL RESPONSIBILITY.—In 

2 promulgating regulations under subparagraph 

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

4 fuel distributor described in that subparagraph 

5 assumes full financial responsibility for the 

6 costs of installing or otherwise making available 

7 the blender pumps described in that subpara8 graph and any other equipment necessary (in9 cluding tanks) to ensure that the pumps func10 tion properly. 

11 ‘‘(F) PRODUCTION CREDITS FOR EXCEED12 ING BLENDER PUMPS INSTALLATION REQUIRE13 MENT.— 

14 ‘‘(i) EARNING AND PERIOD FOR AP15 PLYING CREDITS.—If the percentage of the 

16 majority-owned stations and the branded 

17 stations of a major fuel distributor at 

18 which the major fuel distributor installs 

19 blender pumps in a particular calendar 

20 year exceeds the percentage required under 

21 subparagraph (C), the major fuel dis22 tributor shall earn credits under this para23 graph, which may be applied to any of the 

24 3 consecutive calendar years immediately 


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1 after the calendar year for which the cred2 its are earned. 

3 ‘‘(ii) TRADING CREDITS.—Subject to 

4 clause (iii), a major fuel distributor that 

5 has earned credits under clause (i) may 

6 sell the credits to another major fuel dis7 tributor to enable the purchaser to meet 

8 the requirement under subparagraph (C). 

9 ‘‘(iii) EXCEPTION.—A major fuel dis10 tributor may not use credits purchased 

11 under clause (ii) to fulfill the geographic 

12 distribution requirement in subparagraph 

13 (D).’’. 

14 SEC. 4. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT 

15 RENEWABLE FUEL PIPELINES. 

16 (a) DEFINITIONS.—Section 1701 of the Energy Pol17 icy Act of 2005 (42 U.S.C. 16511) is amended by adding 

18 at the end the following: 

19 ‘‘(6) RENEWABLE FUEL.—The term ‘renewable 

20 fuel’ has the meaning given the term in section 

21 211(o)(1) of the Clean Air Act (42 U.S.C. 

22 7545(o)(1)), except that the term includes all types 

23 of ethanol and biodiesel. 


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1 ‘‘(7) RENEWABLE FUEL PIPELINE.—The term 

2 ‘renewable fuel pipeline’ means a pipeline for trans3 porting renewable fuel.’’. 

4 (b) AMOUNT.—Section 1702(c) of the Energy Policy 

5 Act of 2005 (42 U.S.C. 16512(c)) is amended— 

6 (1) by striking ‘‘(c) AMOUNT.—Unless’’ and in7 serting the following: 

8 ‘‘(c) AMOUNT.— 

9 ‘‘(1) IN GENERAL.—Unless’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(2) RENEWABLE FUEL PIPELINES.—A guar12 antee for a project described in section 1703(b)(11) 

13 shall be in an amount equal to 80 percent of the 

14 project cost of the facility that is the subject of the 

15 guarantee, as estimated at the time at which the 

16 guarantee is issued.’’. 

17 (c) RENEWABLE FUEL PIPELINE ELIGIBILITY.— 

18 Section 1703(b) of the Energy Policy Act of 2005 (42 

19 U.S.C. 16513(b)) is amended by adding at the end the 

20 following: 

21 ‘‘(11) Renewable fuel pipelines.’’. 

22 (d) RAPID DEPLOYMENT OF RENEWABLE FUEL

23 PIPELINES.—Section 1705 of the Energy Policy Act of 

24 2005 (42 U.S.C. 16516) is amended— 

25 (1) in subsection (a)— 


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1 (A) in the matter preceding paragraph (1), 

2 by inserting ‘‘, or, in the case of projects de3 scribed in paragraph (4), September 30, 2012’’ 

4 before the colon at the end; and 

5 (B) by adding at the end the following: 

6 ‘‘(4) Installation of sufficient infrastructure to 

7 allow for the cost-effective deployment of clean en8 ergy technologies appropriate to each region of the 

9 United States, including the deployment of renew10 able fuel pipelines through loan guarantees in an 

11 amount equal to 80 percent of the cost.’’; and 

12 (2) in subsection (e), by inserting ‘‘, or, in the 

13 case of projects described in subsection (a)(4), Sep14 tember 30, 2012’’ before the period at the end. 

15 (e) REGULATIONS.—Not later than 90 days after the 

16 date of enactment of this Act, the Secretary of Energy 

17 shall promulgate such regulations as are necessary to 

18 carry out the amendments made by this section. 

Æ 


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