II 

109TH CONGRESS 

1ST SESSION S. 1920 

To amend the Clean Air Act to establish a renewable diesel standard, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 25, 2005 

Mr. OBAMA introduced the following bill; which was read twice and referred 

to the Committee on Environment and Public Works 

A BILL 

To amend the Clean Air Act to establish a renewable diesel 

standard, 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. 

4 This Act may be cited as the ‘‘Renewable Diesel 

5 Standard Act of 2005’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 

8 (1) section 211(o) of the Clean Air Act (42 

9 U.S.C. 7535(o)) (as amended by section 1501 of the 

10 Energy Policy Act of 2005 (Public Law 109–58)) 
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1 established a renewable fuel program under which 

2 entities in the petroleum sector are required to blend 

3 renewable fuels into motor vehicle fuel based on the 

4 gasoline motor pool; 

5 (2) the need for energy diversification is greater 

6 as of the date of enactment of this Act than it was 

7 only months before the date of enactment of the En8 ergy Policy Act (Public Law 109–58; 119 Stat. 

9 594); 

10 (3)(A) the renewable fuel program under sec11 tion 211(o) of the Clean Air Act requires a small 

12 percentage of the gasoline motor pool, totaling near13 ly 140,000,000,000 gallons, to contain a renewable 

14 fuel; and 

15 (B) the small percentage requirement described 

16 in subparagraph (A) does not include the 

17 40,000,000,000-gallon diesel motor pool; and 

18 (4) beginning in 2008, the diesel motor pool 

19 should contain no less than 1 percent of renewable 

20 fuels by volume. 

21 SEC. 3. RENEWABLE CONTENT OF DIESEL MOTOR POOL. 

22 (a) IN GENERAL.—Section 211 of the Clean Air Act 

23 (42 U.S.C. 7545) is amended by inserting after subsection 

24 (o) the following: 
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1 ‘‘(p) RENEWABLE FUEL PROGRAM FOR THE DIESEL

2 MOTOR POOL.— 

3 ‘‘(1) DEFINITION OF RENEWABLE FUEL.— 

4 ‘‘(A) IN GENERAL.—In this subsection, the 

5 term ‘renewable fuel’ has the meaning given the 

6 term in subsection (o)(1)(C). 

7 ‘‘(B) INCLUSIONS.—The term ‘renewable 

8 fuel’ includes a diesel fuel substitute produced 

9 from— 

10 ‘‘(i) animal fat; 

11 ‘‘(ii) vegetable oil; 

12 ‘‘(iii) recycled yellow grease; 

13 ‘‘(iv) thermal depolymerization; 

14 ‘‘(v) thermochemical conversion; 

15 ‘‘(vi) the coal-to-liquid process (includ16 ing the Fischer-Tropsch process); or 

17 ‘‘(vii) a diesel-ethanol blend. 

18 ‘‘(2) RENEWABLE FUEL PROGRAM.— 

19 ‘‘(A) REGULATIONS.— 

20 ‘‘(i) IN GENERAL.—Not later than 1 

21 year after the date of enactment of this 

22 subsection, the Administrator shall promul23 gate regulations to ensure that diesel sold 

24 or introduced into commerce in the United 

25 States (except in noncontiguous States or 
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1 territories), on an annual average basis, 

2 contains the applicable volume of renew3 able fuel determined in accordance with 

4 subparagraph (B). 

5 ‘‘(ii) PROVISIONS OF REGULATIONS.— 

6 Regardless of the date of promulgation, 

7 the regulations promulgated under clause 

8 (i)— 

9 ‘‘(I) shall contain compliance pro10 visions applicable to refineries, blend11 ers, distributors, and importers, as 

12 appropriate, to ensure that the re13 quirements of this paragraph are met; 

14 but 

15 ‘‘(II) shall not— 

16 ‘‘(aa) restrict geographic 

17 areas in which renewable fuel 

18 may be used; or 

19 ‘‘(bb) impose any per-gallon 

20 obligation for the use of renew21 able fuel. 

22 ‘‘(iii) REQUIREMENT IN CASE OF

23 FAILURE TO PROMULGATE REGULA24 TIONS.—If the Administrator fails to pro25 mulgate regulations under clause (i), the 
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1 percentage of renewable fuel in the diesel 

2 motor pool sold or dispensed to consumers 

3 in the United States, on a volume basis, 

4 shall be .006 percent for calendar year 

5 2008. 

6 ‘‘(B) APPLICABLE VOLUME.— 

7 ‘‘(i) CALENDAR YEARS 2008 THROUGH

8 2015.—For the purpose of subparagraph 

9 (A), the applicable volume for any of cal10 endar years 2008 through 2015 shall be 

11 determined in accordance with the fol12 lowing table: 

‘‘Applicable volume of renewable 

fuel in diesel motor pool 

(in millions of gallons): Calendar year: 

250 ..................................................................................................... 2008

500 ..................................................................................................... 2009

750 ..................................................................................................... 2010

1,000 .................................................................................................. 2011

1,250 .................................................................................................. 2012

1,500 .................................................................................................. 2013

1,750 .................................................................................................. 2014

2,000 .................................................................................................. 2015. 

13 ‘‘(ii) CALENDAR YEAR 2016 AND

14 THEREAFTER.—The applicable volume for 

15 calendar year 2016 and each calendar year 

16 thereafter shall be determined by the Ad17 ministrator, in coordination with the Sec18 retary of Agriculture and the Secretary of 

19 Energy, based on a review of the imple20 mentation of the program during calendar 
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1 years 2008 through 2015, including a re2 view of— 

3 ‘‘(I) the impact of the use of re4 newable fuels on the environment, air 

5 quality, energy security, job creation, 

6 and rural economic development; and 

7 ‘‘(II) the expected annual rate of 

8 future production of renewable fuels 

9 to be used as a blend component or 

10 replacement to the diesel motor pool. 

11 ‘‘(iii) MINIMUM APPLICABLE VOL12 UME.—For the purpose of subparagraph 

13 (A), the applicable volume for calendar 

14 year 2016 and each calendar year there15 after shall be equal to the product obtained 

16 by multiplying— 

17 ‘‘(I) the number of gallons of die18 sel that the Administrator estimates 

19 will be sold or introduced into com20 merce during the calendar year; and 

21 ‘‘(II) the ratio that— 

22 ‘‘(aa) 2,000,000,000 gallons 

23 of renewable fuel; bears to 

24 ‘‘(bb) the number of gallons 

25 of diesel sold or introduced into 
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1 commerce during calendar year 

2 2015. 

3 ‘‘(3) APPLICABLE PERCENTAGES.— 

4 ‘‘(A) PROVISION OF ESTIMATE OF VOL5 UMES OF DIESEL SALES.—Not later than Octo6 ber 31 of each of calendar years 2007 through 

7 2015, the Administrator of the Energy Infor8 mation Administration shall provide to the Ad9 ministrator an estimate, with respect to the fol10 lowing calendar year, of the volumes of diesel 

11 projected to be sold or introduced into com12 merce in the United States. 

13 ‘‘(B) DETERMINATION OF APPLICABLE

14 PERCENTAGES.— 

15 ‘‘(i) IN GENERAL.—Not later than 

16 November 30 of each of calendar years 

17 2008 through 2015, based on the estimate 

18 provided under subparagraph (A), the Ad19 ministrator shall determine and publish in 

20 the Federal Register, with respect to the 

21 following calendar year, the renewable fuel 

22 obligation that ensures that the require23 ments of paragraph (2) are met. 
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1 ‘‘(ii) REQUIRED ELEMENTS.—The re2 newable fuel obligation determined for a 

3 calendar year under clause (i) shall— 

4 ‘‘(I) be applicable to refineries, 

5 blenders, and importers, as appro6 priate; 

7 ‘‘(II) be expressed in terms of a 

8 volume percentage of diesel sold or in9 troduced into commerce in the United 

10 States; and 

11 ‘‘(III) subject to subparagraph 

12 (C), consist of a single applicable per13 centage that applies to all categories 

14 of persons described in subclause (I). 

15 ‘‘(C) ADJUSTMENTS.—In determining the 

16 applicable percentage for a calendar year, the 

17 Administrator shall make adjustments to pre18 vent the imposition of redundant obligations on 

19 any person described in subparagraph 

20 (B)(ii)(I). 

21 ‘‘(4) CREDIT PROGRAM.— 

22 ‘‘(A) IN GENERAL.—The regulations pro23 mulgated pursuant to paragraph (2)(A) shall 

24 provide for the generation of an appropriate 

25 amount of credits by any person that refines, 
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1 blends, or imports diesel that contains a quan2 tity of renewable fuel that is greater than the 

3 quantity required under paragraph (2). 

4 ‘‘(B) USE OF CREDITS.—A person that 

5 generates a credit under subparagraph (A) may 

6 use the credit, or transfer all or a portion of the 

7 credit to another person, for the purpose of 

8 complying with regulations promulgated pursu9 ant to paragraph (2). 

10 ‘‘(C) DURATION OF CREDITS.—A credit 

11 generated under this paragraph shall be valid 

12 during the 1-year period beginning on the date 

13 on which the credit is generated. 

14 ‘‘(D) INABILITY TO GENERATE OR PUR15 CHASE SUFFICIENT CREDITS.—The regulations 

16 promulgated pursuant to paragraph (2)(A) 

17 shall include provisions allowing any person 

18 that is unable to generate or purchase sufficient 

19 credits under subparagraph (A) to meet the re20 quirements of paragraph (2) by carrying for21 ward a credit generated during a previous year 

22 on the condition that the person, during the cal23 endar year following the year in which the re24 newable fuel deficit is created— 
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1 ‘‘(i) achieves compliance with the re2 newable fuel requirement under paragraph 

3 (2); and 

4 ‘‘(ii) generates or purchases additional 

5 credits under subparagraph (A) to offset 

6 the deficit of the previous year. 

7 ‘‘(5) WAIVERS.— 

8 ‘‘(A) IN GENERAL.—The Administrator, in 

9 consultation with the Secretary of Agriculture 

10 and the Secretary of Energy, may waive the re11 quirements of paragraph (2) in whole or in part 

12 on receipt of a petition of 1 or more States by 

13 reducing the national quantity of renewable fuel 

14 for the diesel motor pool required under para15 graph (2) based on a determination by the Ad16 ministrator, after public notice and opportunity 

17 for comment, that— 

18 ‘‘(i) implementation of the require19 ment would severely harm the economy or 

20 environment of a State, a region, or the 

21 United States; or 

22 ‘‘(ii) there is an inadequate domestic 

23 supply of renewable fuel. 

24 ‘‘(B) PETITIONS FOR WAIVERS.—Not later 

25 than 90 days after the date on which the Ad-
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1 ministrator receives a petition under subpara2 graph (A), the Administrator, in consultation 

3 with the Secretary of Agriculture and the Sec4 retary of Energy, shall approve or disapprove 

5 the petition. 

6 ‘‘(C) TERMINATION OF WAIVERS.— 

7 ‘‘(i) IN GENERAL.—Except as pro8 vided in clause (ii), a waiver under sub9 paragraph (A) shall terminate on the date 

10 that is 1 year after the date on which the 

11 waiver is provided. 

12 ‘‘(ii) EXCEPTION.—The Adminis13 trator, in consultation with the Secretary 

14 of Agriculture and the Secretary of En15 ergy, may extend a waiver under subpara16 graph (A), as the Administrator deter17 mines to be appropriate.’’. 

18 (b) PENALTIES AND ENFORCEMENT.—Section 

19 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is 

20 amended— 

21 (1) in paragraph (1), by striking ‘‘or (o)’’ each 

22 place it appears and inserting ‘‘(o), or (p)’’; and 

23 (2) in paragraph (2), by striking ‘‘and (o)’’ 

24 each place it appears and inserting ‘‘(o), and (p)’’. 
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1 (c) TECHNICAL AMENDMENTS.—Section 211 of the 

2 Clean Air Act (42 U.S.C. 7545) is amended— 

3 (1) in subsection (c)(4)(C), by redesignating the 

4 second clause (v) as clause (vi); 

5 (2) in subsection (i)(4), by striking ‘‘section 

6 324’’ each place it appears and inserting ‘‘section 

7 325’’; 

8 (3) in subsection (k)(10), by indenting subpara9 graphs (E) and (F) appropriately; 

10 (4) in subsection (n), by striking ‘‘section 

11 219(2)’’ and inserting ‘‘section 216(2)’’; 

12 (5) by redesignating the second subsection (r) 

13 and subsection (s) as subsections (s) and (t), respec14 tively; and 

15 (6) in subsection (t)(1) (as redesignated by 

16 paragraph (5)), by striking ‘‘this subtitle’’ and in17 serting ‘‘this part’’. 

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