I 

111TH CONGRESS 

1ST SESSION H. R. 864 

To amend the Energy Policy Act of 2005 to provide loan guarantees for 

projects to construct renewable fuel pipelines, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 4, 2009 

Mr. BOSWELL (for himself, Mr. TERRY, Mr. BRALEY of Iowa, Mr. LATHAM, 

Mr. PETERSON, Mr. LOEBSACK, and Mr. KING of Iowa) introduced the 

following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Energy Policy Act of 2005 to provide loan 

guarantees for projects to construct renewable fuel pipelines, 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 Fuel Pipe5 lines Act of 2009’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) Creating the appropriate infrastructure to 

2 move renewable fuels is a necessary energy and 

3 transportation objective for the United States. 

4 (2) Currently more than 70 percent of the gaso5 line supply of the United States is delivered to local 

6 terminals through pipelines. 

7 (3) Pipelines are the most cost-effective, effi8 cient, and safe transportation mode in use today to 

9 deliver large volumes of liquid fuels. 

10 (4) Renewable fuels are currently transported 

11 by truck, barge, and rail, and the volume require12 ments of the Energy Independence and Security Act 

13 of 2007 may overwhelm the renewable fuels infra14 structure, a problem that would be alleviated by the 

15 transportation of renewable fuels through pipelines. 

16 (5) The production and use of renewable fuels 

17 is supported by Federal policy and a corresponding 

18 Federal policy is necessary to support the construc19 tion of an appropriate infrastructure to transport 

20 such fuels. 

21 SEC. 3. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT 

22 RENEWABLE FUEL PIPELINES. 

23 (a) DEFINITIONS.—Section 1701 of the Energy Pol24 icy Act of 2005 (42 U.S.C. 16511) is amended by adding 

25 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 shall include all 

5 ethanol and biodiesel. 

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

7 ‘renewable fuel pipeline’ means a common carrier 

8 pipeline for transporting renewable fuel.’’. 

9 (b) TERMS AND CONDITIONS.— 

10 (1) SPECIFIC APPROPRIATION OR CONTRIBU11 TION.—Subsection (b) of section 1702 of the Energy 

12 Policy Act of 2005 (42 U.S.C. 16512) is amended— 

13 (A) by redesignating paragraphs (1) and 

14 (2) as subparagraphs (A) and (B), respectively, 

15 and by moving such subparagraphs 2 ems to 

16 the right; 

17 (B) by striking ‘‘(b) SPECIFIC APPROPRIA18 TION OR CONTRIBUTION.—No guarantee’’ and 

19 inserting the following: 

20 ‘‘(b) SPECIFIC APPROPRIATION OR CONTRIBU21 TION.— 

22 ‘‘(1) IN GENERAL.—No guarantee’’; and 

23 (C) by adding at the end the following: 

24 ‘‘(2) RENEWABLE FUEL PIPELINES.—The Sec25 retary may waive the application of paragraph (1) 


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1 with respect to a guarantee for a project described 

2 in section 1703(f)(1).’’. 

3 (2) AMOUNT.—Subsection (c) of such section is 

4 amended— 

5 (A) by striking ‘‘(c) AMOUNT.—Unless’’ 

6 and inserting the following: 

7 ‘‘(c) AMOUNT.— 

8 ‘‘(1) IN GENERAL.—Unless’’; and 

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

10 ‘‘(2) RENEWABLE FUEL PIPELINES.—With re11 spect to a project described in section 1703(f)(1)— 

12 ‘‘(A) a guarantee by the Secretary shall 

13 not exceed an amount equal to 90 percent of 

14 the project cost of the renewable fuel pipeline 

15 that is the subject of the guarantee, as esti16 mated at the time at which the guarantee is 

17 issued; and 

18 ‘‘(B) the Secretary may make more than 

19 one guarantee for such project, to the extent 

20 that the sum of all guarantees for such project 

21 does not exceed an amount equal to 90 percent 

22 of the project cost of the renewable fuel pipeline 

23 that is the subject of such guarantees, as esti24 mated any time after the original guarantee is 

25 issued.’’. 


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1 (c) ELIGIBLE PROJECTS.—Section 1703 of the En2 ergy Policy Act of 2005 (42 U.S.C. 16513) is amended 

3 by adding at the end the following: 

4 ‘‘(f) RENEWABLE FUEL PIPELINES.— 

5 ‘‘(1) IN GENERAL.—The Secretary may make 

6 guarantees under this title for projects to construct 

7 renewable fuel pipelines without regard to any limi8 tation under this section other than a limitation 

9 under this subsection. 

10 ‘‘(2) GUARANTEE DETERMINATIONS.—In deter11 mining whether to make a guarantee for a project 

12 described in paragraph (1), the Secretary shall con13 sider the following: 

14 ‘‘(A) The volume of renewable fuel to be 

15 moved by the renewable fuel pipeline. 

16 ‘‘(B) The size of the markets to be served 

17 by the renewable fuel pipeline. 

18 ‘‘(C) The existence of sufficient storage to 

19 facilitate access to the markets to be served by 

20 the renewable fuel pipeline. 

21 ‘‘(D) The proximity of the renewable fuel 

22 pipeline to renewable fuel production facilities. 

23 ‘‘(E) The investment in terminal infra24 structure of the entity carrying out the pro25 posed project. 


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1 ‘‘(F) The history and experience working 

2 with renewable fuel of the entity carrying out 

3 the proposed project. 

4 ‘‘(G) The ability of the entity carrying out 

5 the proposed project to ensure and maintain the 

6 quality of the renewable fuel through the ter7 minal system of the entity and through the 

8 dedicated pipeline system. 

9 ‘‘(H) The ability of the entity carrying out 

10 the proposed project to complete such proposed 

11 project in a timely manner. 

12 ‘‘(I) The ability of the entity carrying out 

13 the proposed project to secure property rights14 of-way. 

15 ‘‘(J) Other criteria the Secretary deter16 mines appropriate for consideration. 

17 ‘‘(3) EMINENT DOMAIN AUTHORITY.—When 

18 any entity in the carrying out of a project described 

19 in paragraph (1) for which a guarantee is made 

20 under this title cannot acquire by contract, or is un21 able to agree with the owner of property to the com22 pensation to be paid for, the necessary right-of-way 

23 to construct, operate, and maintain a pipeline or 

24 pipelines for the transportation of renewable fuel, 

25 and the necessary land or other property, in addition 


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1 to right-of-way, for the location of pump stations, 

2 pressure apparatus, or other facilities or equipment 

3 necessary to the proper operation of such pipeline or 

4 pipelines, it may acquire the same by the exercise of 

5 the right of eminent domain in the district court of 

6 the United States for the district in which such 

7 property may be located, or in the State courts, if 

8 such exercise is first determined by the Secretary to 

9 be necessary or desirable in the public interest. The 

10 practice and procedure in any action or proceeding 

11 for that purpose in the district court of the United 

12 States shall conform as nearly as may be with the 

13 practice and procedure in a similar action or pro14 ceeding in the courts of the State where the property 

15 is situated. The United States district courts shall 

16 only have jurisdiction of cases when the amount 

17 claimed by the owner of the property to be con18 demned exceeds $3,000.’’. 

19 SEC. 4. FINAL RULE. 

20 Not later than 90 days after the date of the enact21 ment of this Act, the Secretary of Energy shall publish 

22 in the Federal Register a final rule for carrying out a 

23 guarantee program for the construction of renewable fuel 

24 pipelines under title XVII of the Energy Policy Act of 

25 2005 in accordance with the amendments made by this 


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1 Act or shall modify rules and regulations currently appli2 cable to the guarantee program under such title in accord3 ance with the amendments made by this Act. 

4 SEC. 5. GRANT PROGRAM FOR PREPARATION OF PROJECTS 

5 TO CONSTRUCT RENEWABLE FUEL PIPE6 LINES. 

7 (a) IN GENERAL.—The Secretary may provide grants 

8 for projects described in section 1703(f)(1) of the Energy 

9 Policy Act of 2005, as added by section 3(c) of this Act, 

10 to assist in carrying out permit acquisition, planning, and 

11 other preparatory activities for such projects in advance 

12 of participation in the guarantee program under title XVII 

13 of the Energy Policy Act of 2005. 

14 (b) NO IMPACT ON ELIGIBILITY FOR A GUAR15 ANTEE.—In determining whether to make a guarantee for 

16 a project under title XVII of the Energy Policy Act of 

17 2005, the Secretary shall not take into consideration 

18 whether a grant was provided for such project under this 

19 section. 

20 (c) IMPACT ON GUARANTEE AMOUNT.—In the case 

21 of a project for which a grant is provided under this sec22 tion and a loan guarantee is made under title XVII of 

23 the Energy Policy Act of 2005, the sum with respect to 

24 such project of grants provided under this section and 

25 amounts guaranteed under title XVII of the Energy Policy 


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1 Act of 2005 may not exceed 90 percent of the project cost 

2 of such project as estimated at the time at which a guar3 antee is issued. 

4 (d) DEFINITION OF SECRETARY.—In this section, the 

5 term ‘‘Secretary’’ means the Secretary of Energy. 

6 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated to the Secretary to carry 

8 out this section $50,000,000, to remain available until ex9 pended. 

Æ 


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