I 

112TH CONGRESS 

1ST SESSION H. R. 1868 

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 

MAY 12, 2011 

Mrs. CAPITO (for herself, Mr. CRITZ, Mr. BUCSHON, Mr. TERRY, Mr. RAHALL, and Mr. HOLDEN) 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 2011’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) CLEAN COAL-DERIVED FUEL.— 


tjames on DSKG8SOYB1PROD with BILLS
2 

•HR 1868 IH

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 fuel derived from 

13 any other resource that is extracted, grown, 

14 produced, or recovered 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) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of Energy. 

23 (4) SMALL REFINERY.—The term ‘‘small refin24 ery’’ means a refinery for which the average aggre25 gate daily throughput for a calendar year (as deterVerDate Mar 15 2010 04:44 May 21, 2011 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1868.IH H1868

tjames on DSKG8SOYB1PROD with BILLS
3 

•HR 1868 IH

1 mined by dividing the aggregate throughput for the 

2 calendar year by the number of days in the calendar 

3 year) does not exceed 75,000 barrels. 

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

5 (a) PROGRAM.— 

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

7 the date of enactment of this Act, the President 

8 shall promulgate regulations to ensure that covered 

9 fuel sold or introduced into commerce in the United 

10 States (except in noncontiguous States or terri11 tories), on an annual average basis, contains the ap12 plicable volume of clean coal-derived fuel determined 

13 in accordance with paragraph (4). 

14 (2) PROVISIONS OF REGULATIONS.—The regu15 lations promulgated 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 lifecycle green24 house gas emissions that are not greater 

25 than gasoline; and 


tjames on DSKG8SOYB1PROD with BILLS
4 

•HR 1868 IH

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 subsection shall, 

9 to the extent practicable, incorporate the program 

10 structure and compliance and reporting require11 ments established under the final regulations pro12 mulgated to implement the renewable fuel program 

13 under section 211(o) of the Clean Air Act (42 

14 U.S.C. 7545(o)). 

15 (4) APPLICABLE VOLUME.— 

16 (A) CALENDAR YEARS 2017 THROUGH

17 2024.—For the purpose of this subsection, the 

18 applicable volume for any of calendar years 

19 2017 through 2024 shall be determined in ac20 cordance with the following table: 

Applicable volume of 

clean coal-derived fuel 

Calendar year: (in billions of gallons): 

2017 ................................................................................................... 0.75

2018 ................................................................................................... 1.5

2019 ................................................................................................... 2.25

2020 ................................................................................................... 3.00

2021 ................................................................................................... 3.75

2022 ................................................................................................... 4.5

2023 ................................................................................................... 5.25

2024 ................................................................................................... 6.0. 


tjames on DSKG8SOYB1PROD with BILLS
5 

•HR 1868 IH

1 (B) CALENDAR YEAR 2025 AND THERE2 AFTER.—Subject to subparagraph (C), for the 

3 purposes of this subsection, the applicable vol4 ume for calendar year 2025 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 2017 through 2024, 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 minimum 

23 applicable volume for calendar year 2025 and 

24 each calendar year thereafter shall be equal to 

25 the product obtained by multiplying— 


tjames on DSKG8SOYB1PROD with BILLS
6 

•HR 1868 IH

1 (i) the number of gallons of covered 

2 fuel that the President estimates will be 

3 sold or introduced into commerce in the 

4 calendar year; and 

5 (ii) the ratio that— 

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

7 clean coal-derived fuel; bears to 

8 (II) the number of gallons of cov9 ered fuel sold or introduced into com10 merce in calendar year 2024. 

11 (b) APPLICABLE PERCENTAGES.— 

12 (1) PROVISION OF ESTIMATE OF VOLUMES OF

13 CERTAIN FUEL SALES.—Not later than October 31 

14 of each of calendar years 2017 through 2023, the 

15 Administrator of the Energy Information Adminis16 tration shall provide to the President an estimate, 

17 with respect to the following calendar year, of the 

18 volumes of covered fuel projected to be sold or intro19 duced into commerce in the United States. 

20 (2) DETERMINATION OF APPLICABLE PERCENT21 AGES.— 

22 (A) IN GENERAL.—Not later than Novem23 ber 30 of each of calendar years 2017 through 

24 2024, based on the estimate provided under 

25 paragraph (1), the President shall determine 


tjames on DSKG8SOYB1PROD with BILLS
7 

•HR 1868 IH

1 and publish in the Federal Register, with re2 spect to the following calendar year, the clean 

3 coal-derived fuel obligation that ensures that 

4 the requirements of subsection (a) are met. 

5 (B) REQUIRED ELEMENTS.—The clean 

6 coal-derived fuel obligation determined for a 

7 calendar year under subparagraph (A) shall— 

8 (i) be applicable to refineries, blend9 ers, and importers, as appropriate; 

10 (ii) be expressed in terms of a volume 

11 percentage of covered fuel sold or intro12 duced into commerce in the United States; 

13 and 

14 (iii) subject to paragraph (3)(A), con15 sist of a single applicable percentage that 

16 applies to all categories of persons speci17 fied in clause (i). 

18 (3) ADJUSTMENTS.—In determining the appli19 cable percentage for a calendar year, the President 

20 shall make adjustments— 

21 (A) to prevent the imposition of redundant 

22 obligations on any person specified in para23 graph (2)(B)(i); and 

24 (B) to account for the use of clean coal-de25 rived fuel during the previous calendar year by 


tjames on DSKG8SOYB1PROD with BILLS
8 

•HR 1868 IH

1 small refineries that are exempt under sub2 section (f). 

3 (c) VOLUME CONVERSION FACTORS FOR CLEAN

4 COAL-DERIVED FUELS BASED ON ENERGY CONTENT.— 

5 (1) IN GENERAL.—For the purpose of sub6 section (a), the President shall assign values to spe7 cific types of clean coal-derived fuel for the purpose 

8 of satisfying the fuel volume requirements of sub9 section (a)(4) in accordance with this subsection. 

10 (2) ENERGY CONTENT RELATIVE TO APPLICA11 BLE COVERED FUEL.—For each type of clean coal12 derived fuel, 1 gallon of the clean coal-derived fuel 

13 shall be considered to be the equivalent of 1 gallon 

14 of the applicable covered fuel multiplied by the ratio 

15 that— 

16 (A) the number of British thermal units of 

17 energy produced by the combustion of 1 gallon 

18 of the clean coal-derived fuel (as measured 

19 under conditions determined by the Secretary); 

20 bears to 

21 (B) the number of British thermal units of 

22 energy produced by the combustion of 1 gallon 

23 of the applicable covered fuel (as measured 

24 under conditions determined by the Secretary to 


tjames on DSKG8SOYB1PROD with BILLS
9 

•HR 1868 IH

1 be comparable to conditions described in sub2 paragraph (A)). 

3 (d) CREDIT PROGRAM.— 

4 (1) IN GENERAL.—The President, in consulta5 tion with the Secretary and in accordance with the 

6 clean coal-derived fuel requirements of this section, 

7 may implement a program for the sale and trade of 

8 clean coal-derived fuel production credits. 

9 (2) MARKET TRANSPARENCY.—In carrying out 

10 the credit program under this subsection, the Presi11 dent shall facilitate price transparency in markets 

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

13 the public interest, the integrity of those markets, 

14 fair competition, and the protection of consumers. 

15 (e) WAIVERS.— 

16 (1) IN GENERAL.—The President, in consulta17 tion with the Secretary and the Administrator of the 

18 Environmental Protection Agency, may waive the re19 quirements of subsection (a) in whole or in part on 

20 petition by 1 or more States by reducing the na21 tional quantity of clean coal-derived fuel required 

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

23 the President (after public notice and opportunity 

24 for comment), that— 


tjames on DSKG8SOYB1PROD with BILLS
10 

•HR 1868 IH

1 (A) implementation of the requirement 

2 would severely harm the economy or environ3 ment of a State, a region, or the United States; 

4 or 

5 (B) extreme and unusual circumstances 

6 exist that prevent distribution of an adequate 

7 supply of domestically produced clean coal-de8 rived fuel to consumers in the United States. 

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

10 in consultation with the Secretary and the Adminis11 trator of the Environmental Protection Agency, shall 

12 approve or disapprove a State petition for a waiver 

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

14 after the date on which the petition is received by 

15 the President. 

16 (3) TERMINATION OF WAIVERS.—A waiver 

17 granted under paragraph (1) shall terminate after 1 

18 year, but may be renewed by the President after 

19 consultation with the Secretary and the Adminis20 trator of the Environmental Protection Agency. 

21 (f) SMALL REFINERIES.— 

22 (1) TEMPORARY EXEMPTION.— 

23 (A) IN GENERAL.—The requirements of 

24 subsection (a) shall not apply to small refineries 

25 until calendar year 2020. 


tjames on DSKG8SOYB1PROD with BILLS
11 

•HR 1868 IH

1 (B) EXTENSION OF EXEMPTION.— 

2 (i) STUDY BY SECRETARY.—Not later 

3 than December 31, 2015, the Secretary 

4 shall submit to the President and Congress 

5 a report describing the results of a study 

6 to determine whether compliance with the 

7 requirements of subsection (a) would im8 pose a disproportionate economic hardship 

9 on small refineries. 

10 (ii) EXTENSION OF EXEMPTION.—In 

11 the case of a small refinery that the Sec12 retary determines under clause (i) would 

13 be subject to a disproportionate economic 

14 hardship if required to comply with sub15 section (a), the President shall extend the 

16 exemption under subparagraph (A) for the 

17 small refinery for a period of not less than 

18 2 additional years. 

19 (2) PETITIONS BASED ON DISPROPORTIONATE

20 ECONOMIC HARDSHIP.— 

21 (A) EXTENSION OF EXEMPTION.—A small 

22 refinery may at any time petition the President 

23 for an extension of the exemption under para24 graph (1) for the reason of disproportionate 

25 economic hardship. 


tjames on DSKG8SOYB1PROD with BILLS
12 

•HR 1868 IH

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 


tjames on DSKG8SOYB1PROD with BILLS
13 

•HR 1868 IH

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 any action to re24 strain a violation of a regulation promulgated 

25 under subsection (a), a subpoena for a witness 


tjames on DSKG8SOYB1PROD with BILLS
14 

•HR 1868 IH

1 who is required to attend a district court in any 

2 district may apply in any other district. 

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

5 January 1, 2017. 

Æ 


tjames on DSKG8SOYB1PROD with BILLS