II 

113TH CONGRESS 

1ST SESSION S. 1563 

To provide for the expansion of the biofuels market. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 30, 2013 

Mr. HARKIN (for himself, Mr. FRANKEN, Mr. JOHNSON of South Dakota, and 

Ms. KLOBUCHAR) 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 2013’’. 

6 SEC. 2. PROHIBITION ON RESTRICTION OF INSTALLATION 

7 OF RENEWABLE FUEL PUMPS. 

8 Section 107(a)(1) of the Petroleum Marketing Prac9 tices Act (15 U.S.C. 2807(a)(1)) is amended by striking 

10 subparagraph (A) and inserting the following: 


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1 ‘‘(A) which is not less than 10 percent eth2 anol by volume; or’’. 

3 SEC. 3. ENSURING THE AVAILABILITY OF DUAL FUELED 

4 AUTOMOBILES AND LIGHT DUTY TRUCKS. 

5 (a) IN GENERAL.—Chapter 329 of title 49, United 

6 States Code, is amended by inserting after section 32902 

7 the following: 

8 ‘‘§ 32902A. Requirement to manufacture dual fueled 

9 automobiles and light duty trucks 

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

11 following table, each manufacturer shall ensure that the 

12 percentage of automobiles and light duty trucks manufac13 tured by the manufacturer for sale in the United States 

14 that are dual fueled automobiles and light duty trucks is 

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

16 in the following table: 

‘‘Model year Percentage 

Model years 2015 and 2016 ............................................. 50 percent

Model year 2017 and each subsequent model year .......... 90 percent. 

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

18 automobiles or light duty trucks that operate only on elec19 tricity.’’. 

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

21 for chapter 329 of title 49, United States Code, is amend22 ed by inserting after the item relating to section 32902 

23 the following: 


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

trucks.’’. 

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

2 date of the enactment of this Act, the Secretary of Trans3 portation shall prescribe regulations to carry out the 

4 amendments made by this Act. 

5 SEC. 4. BLENDER PUMP PROMOTION. 

6 (a) BLENDER PUMP GRANT PROGRAM.— 

7 (1) DEFINITIONS.—In this subsection: 

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

9 pump’’ means an automotive fuel dispensing 

10 pump capable of dispensing at least 3 different 

11 blends of gasoline and ethanol, as selected by 

12 the pump operator, including blends ranging 

13 from 0 percent ethanol to 85 percent denatured 

14 ethanol, as determined by the Secretary. 

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

16 means a blend of gasoline approximately 85 

17 percent of the content of which is ethanol. 

18 (C) ETHANOL FUEL BLEND.—The term 

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

20 and ethanol, with a minimum of 0 percent and 

21 maximum of 85 percent of the content of which 

22 is denatured ethanol. 

23 (D) MAJOR FUEL DISTRIBUTOR.— 


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1 (i) IN GENERAL.—The term ‘‘major 

2 fuel distributor’’ means any person that 

3 owns a refinery or directly markets the 

4 output of a refinery. 

5 (ii) EXCLUSION.—The term ‘‘major 

6 fuel distributor’’ does not include any per7 son that directly markets through less than 

8 50 retail fueling stations. 

9 (E) SECRETARY.—The term ‘‘Secretary’’ 

10 means the Secretary of Energy. 

11 (2) GRANTS.—The Secretary shall make grants 

12 under this subsection to eligible facilities (as deter13 mined by the Secretary) to pay the Federal share 

14 of— 

15 (A) installing blender pump fuel infra16 structure, including infrastructure necessary for 

17 the direct retail sale of ethanol fuel blends (in18 cluding E–85 fuel), including blender pumps 

19 and storage tanks; and 

20 (B) providing subgrants to direct retailers 

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

22 the purpose of installing fuel infrastructure for 

23 the direct retail sale of ethanol fuel blends (in24 cluding E–85 fuel), including blender pumps 

25 and storage tanks. 


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

2 not be eligible for a grant or subgrant under this 

3 subsection. 

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

5 the cost of a project carried out under this sub6 section shall be up to 50 percent of the total cost of 

7 the project. 

8 (5) REVERSION.—If an eligible facility or re9 tailer that receives a grant or subgrant under this 

10 subsection does not offer ethanol fuel blends for sale 

11 for at least 2 years during the 4-year period begin12 ning on the date of installation of the blender pump, 

13 the eligible facility or retailer shall be required to 

14 repay to the Secretary an amount determined to be 

15 appropriate by the Secretary, but not more than the 

16 amount of the grant provided to the eligible facility 

17 or retailer under this subsection. 

18 (6) AUTHORIZATION OF APPROPRIATIONS.— 

19 There are authorized to be appropriated to the Sec20 retary to carry out this subsection, to remain avail21 able until expended— 

22 (A) $50,000,000 for fiscal year 2014; 

23 (B) $100,000,000 for fiscal year 2015; 

24 (C) $200,000,000 for fiscal year 2016; 


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1 (D) $300,000,000 for fiscal year 2017; 

2 and 

3 (E) $350,000,000 for fiscal year 2018. 

4 (b) INSTALLATION OF BLENDER PUMPS BY MAJOR

5 FUEL DISTRIBUTORS AT OWNED STATIONS AND BRAND6 ED STATIONS.—Section 211(o) of the Clean Air Act (42 

7 U.S.C. 7545(o)) is amended by adding at the end the fol8 lowing: 

9 ‘‘(13) INSTALLATION OF BLENDER PUMPS BY

10 MAJOR FUEL DISTRIBUTORS AT OWNED STATIONS

11 AND BRANDED STATIONS.— 

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

13 ‘‘(i) E–85 FUEL.—The term ‘E–85 

14 fuel’ means a blend of gasoline approxi15 mately 85 percent of the content of which 

16 is ethanol. 

17 ‘‘(ii) ETHANOL FUEL BLEND.—The 

18 term ‘ethanol fuel blend’ means a blend of 

19 gasoline and ethanol, with a minimum of 0 

20 percent and maximum of 85 percent of the 

21 content of which is denatured ethanol. 

22 ‘‘(iii) MAJOR FUEL DISTRIBUTOR.— 

23 ‘‘(I) IN GENERAL.—The term 

24 ‘major fuel distributor’ means any 


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1 person that owns a refinery or directly 

2 markets the output of a refinery. 

3 ‘‘(II) EXCLUSION.—The term 

4 ‘major fuel distributor’ does not in5 clude any person that directly markets 

6 through less than 50 retail fueling 

7 stations. 

8 ‘‘(iv) SECRETARY.—The term ‘Sec9 retary’ means the Secretary of Energy, 

10 acting in consultation with the Adminis11 trator of the Environmental Protection 

12 Agency and the Secretary of Agriculture. 

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

14 promulgate regulations to ensure that each 

15 major fuel distributor that sells or introduces 

16 gasoline into commerce in the United States 

17 through majority-owned stations or branded 

18 stations installs or otherwise makes available 

19 one or more blender pumps that dispense E–85 

20 fuel and ethanol fuel blends (including any 

21 other equipment necessary, such as tanks, to 

22 ensure that the pumps function properly) for a 

23 period of not less than 5 years at not less than 

24 the applicable percentage of the majority-owned 


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1 stations and the branded stations of the major 

2 fuel distributor specified in subparagraph (C). 

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

4 purpose of subparagraph (B), the applicable 

5 percentage of the majority-owned stations and 

6 the branded stations shall be determined in ac7 cordance with the following table: 

‘‘Applicable percentage of 

majority-owned stations and 

branded stations 

Calendar year: Percent: 

2016 ............................................................................................. 10

2018 ............................................................................................. 20

2020 ............................................................................................. 35

2022 and each calendar year thereafter ...................................... 50. 

8 ‘‘(D) GEOGRAPHIC DISTRIBUTION.— 

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

10 (ii), in promulgating regulations under 

11 subparagraph (B), the Secretary shall en12 sure that each major fuel distributor de13 scribed in that subparagraph installs or 

14 otherwise makes available one or more 

15 blender pumps that dispense E–85 fuel 

16 and ethanol fuel blends at not less than a 

17 minimum percentage (specified in the reg18 ulations) of the majority-owned stations 

19 and the branded stations of the major fuel 

20 distributors in each State. 


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1 ‘‘(ii) REQUIREMENT.—In specifying 

2 the minimum percentage under clause (i), 

3 the Secretary shall ensure that each major 

4 fuel distributor installs or otherwise makes 

5 available one or more blender pumps de6 scribed in that clause in each State in 

7 which the major fuel distributor operates. 

8 ‘‘(E) FINANCIAL RESPONSIBILITY.—In 

9 promulgating regulations under subparagraph 

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

11 fuel distributor described in that subparagraph 

12 assumes full financial responsibility for the 

13 costs of installing or otherwise making available 

14 the blender pumps described in that subpara15 graph and any other equipment necessary (in16 cluding tanks) to ensure that the pumps func17 tion properly. 

18 ‘‘(F) PRODUCTION CREDITS FOR EXCEED19 ING BLENDER PUMPS INSTALLATION REQUIRE20 MENT.— 

21 ‘‘(i) EARNING AND PERIOD FOR AP22 PLYING CREDITS.—If the percentage of the 

23 majority-owned stations and the branded 

24 stations of a major fuel distributor at 

25 which the major fuel distributor installs 


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1 blender pumps in a particular calendar 

2 year exceeds the percentage required under 

3 subparagraph (C), the major fuel dis4 tributor shall earn credits under this para5 graph, which may be applied to any of the 

6 3 consecutive calendar years immediately 

7 after the calendar year for which the cred8 its are earned. 

9 ‘‘(ii) TRADING CREDITS.—Subject to 

10 clause (iii), a major fuel distributor that 

11 has earned credits under clause (i) may 

12 sell the credits to another major fuel dis13 tributor to enable the purchaser to meet 

14 the requirement under subparagraph (C). 

15 ‘‘(iii) EXCEPTION.—A major fuel dis16 tributor may not use credits purchased 

17 under clause (ii) to fulfill the geographic 

18 distribution requirement in subparagraph 

19 (D).’’. 

20 SEC. 5. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT 

21 RENEWABLE FUEL PIPELINES. 

22 (a) DEFINITIONS.—Section 1701 of the Energy Pol23 icy Act of 2005 (42 U.S.C. 16511) is amended by adding 

24 at the end the following: 


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

2 fuel’ has the meaning given the term in section 

3 211(o)(1) of the Clean Air Act (42 U.S.C. 

4 7545(o)(1)), except that the term includes all types 

5 of ethanol and biodiesel. 

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

7 ‘renewable fuel pipeline’ means a pipeline for trans8 porting renewable fuel.’’. 

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

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

11 (1) by striking ‘‘(c) AMOUNT.—Unless’’ and in12 serting the following: 

13 ‘‘(c) AMOUNT.— 

14 ‘‘(1) IN GENERAL.—Unless’’; and 

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

16 ‘‘(2) RENEWABLE FUEL PIPELINES.—A guar17 antee for a project described in section 1703(b)(11) 

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

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

20 guarantee, as estimated at the time at which the 

21 guarantee is issued.’’. 

22 (c) RENEWABLE FUEL PIPELINE ELIGIBILITY.— 

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

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

25 following: 


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

2 (d) RAPID DEPLOYMENT OF RENEWABLE FUEL

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

4 2005 (42 U.S.C. 16516) is amended— 

5 (1) in subsection (a)— 

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

7 by inserting ‘‘, or, in the case of projects de8 scribed in paragraph (4), September 30, 2012’’ 

9 before the colon at the end; and 

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

11 ‘‘(4) Installation of sufficient infrastructure to 

12 allow for the cost-effective deployment of clean en13 ergy technologies appropriate to each region of the 

14 United States, including the deployment of renew15 able fuel pipelines through loan guarantees in an 

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

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

18 case of projects described in subsection (a)(4), Sep19 tember 30, 2012’’ before the period at the end. 

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

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

22 shall promulgate such regulations as are necessary to 

23 carry out the amendments made by this section. 

Æ 


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