II 

117TH CONGRESS 

2D SESSION S. 3787 

To prohibit the importation of petroleum and petroleum products from the 

Russian Federation, to amend the Internal Revenue Code of 1986 to 

establish an income tax credit for the sale or blending of certain fuels 

containing ethanol and to extend tax incentives for biodiesel and renewable diesel, to amend the Clean Air Act with respect to the ethanol 

waiver for Reid vapor pressure limitations under that Act, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 8 (legislative day, MARCH 7), 2022 

Ms. ERNST (for herself, Ms. KLOBUCHAR, Mr. GRASSLEY, Ms. DUCKWORTH, 

Ms. BALDWIN, Mr. MARSHALL, and Mrs. FISCHER) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To prohibit the importation of petroleum and petroleum 

products from the Russian Federation, to amend the 

Internal Revenue Code of 1986 to establish an income 

tax credit for the sale or blending of certain fuels containing ethanol and to extend tax incentives for biodiesel 

and renewable diesel, to amend the Clean Air Act with 

respect to the ethanol waiver for Reid vapor pressure 

limitations under that Act, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Home Front Energy 

3 Independence Act’’. 

4 SEC. 2. PROHIBITION ON IMPORTATION OF PETROLEUM 

5 AND PETROLEUM PRODUCTS FROM THE RUS6 SIAN FEDERATION. 

7 (a) PROHIBITION.—The importation of petroleum 

8 and petroleum products from the Russian Federation is 

9 prohibited. 

10 (b) TERMINATION.—The prohibition under sub11 section (a) shall terminate on the date on which the Presi12 dent determines and reports to Congress that the Govern13 ment of the Russian Federation recognizes the sovereignty 

14 and territorial integrity of Ukraine within its internation15 ally recognized borders, extending to its territorial waters. 

16 (c) EFFECTIVE DATE.—The prohibition under sub17 section (a) applies with respect to articles entered, or with18 drawn from warehouse for consumption, on or after the 

19 date that is 15 days after the date of the enactment of 

20 this Act. 

21 SEC. 3. CREDIT FOR SALE OR BLENDING OF ETHANOL 

22 FUELS. 

23 (a) IN GENERAL.—Subpart D of part IV of sub24 chapter A of chapter 1 of the Internal Revenue Code of 

25 1986 is amended by adding at the end the following new 

26 section: 


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1 ‘‘SEC. 45U. CREDIT FOR SALE OR BLENDING OF ETHANOL 

2 FUELS. 

3 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

4 ethanol fuel credit determined under this section for any 

5 taxable year is an amount equal to— 

6 ‘‘(1) in the case of an applicable taxpayer which 

7 is described in subsection (b)(1)(A)— 

8 ‘‘(A) for each gallon of E15 blended by 

9 such taxpayer, 5 cents, and 

10 ‘‘(B) for each gallon of fuel blended by 

11 such taxpayer which contains more than 15 vol12 ume percent ethanol, 10 cents, and 

13 ‘‘(2) subject to subsection (c), in the case of an 

14 applicable taxpayer which is described in subsection 

15 (b)(1)(B)— 

16 ‘‘(A) for each gallon of E15 sold by such 

17 taxpayer, 5 cents, and 

18 ‘‘(B) for each gallon of fuel sold by such 

19 taxpayer which contains more than 15 volume 

20 percent ethanol, 10 cents. 

21 ‘‘(b) DEFINITIONS.—For purposes of this section— 

22 ‘‘(1) APPLICABLE TAXPAYER.—The term ‘appli23 cable taxpayer’ means— 

24 ‘‘(A) an oxygenate blender (as defined in 

25 section 1090.80 of title 40, Code of Federal 

26 Regulations), and 


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1 ‘‘(B) a retailer (as defined in paragraph 

2 (7) of section 101 of the Petroleum Marketing 

3 Practices Act (15 U.S.C. 2801)). 

4 ‘‘(2) E15.—The term ‘E15’ means gasoline 

5 that contains more than 13 and no more than 15 

6 volume percent ethanol. 

7 ‘‘(c) ELECTION.— 

8 ‘‘(1) IN GENERAL.— 

9 ‘‘(A) ELECTION BY OXYGENATE BLEND10 ER.—Subsection (a)(1) shall apply with respect 

11 to any gallon of fuel described in such sub12 section only if the applicable taxpayer described 

13 in subsection (b)(1)(A) elects to have such sub14 section apply with respect to such gallon of fuel. 

15 ‘‘(B) NOTIFICATION.—The applicable tax16 payer described in subparagraph (A) shall pro17 vide notice of their election with respect to any 

18 gallon of fuel described in such subparagraph to 

19 any applicable taxpayer described in subsection 

20 (b)(1)(B) to which such fuel is sold, with such 

21 notice to be provided on or before the date of 

22 such sale. 

23 ‘‘(2) CREDIT FOR RETAILER AVAILABLE ONLY

24 IF NOT CLAIMED BY OXYGENATE BLENDER.—Sub25 section (a)(2) shall apply with respect to any gallon 


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1 of fuel described in such subsection only if the appli2 cable taxpayer described in subsection (b)(1)(A) has 

3 not elected (pursuant to paragraph (1)) to apply 

4 subsection (a)(1) with respect to such gallon of fuel. 

5 ‘‘(d) REFUNDABLE CREDIT FOR SMALL RETAIL6 ERS.—For purposes of this title, in the case of a retailer 

7 with not greater than 5 retail locations at the close of the 

8 taxable year, the credit allowed under subsection (a)(2) 

9 for such taxable year shall be treated as a credit allowable 

10 under subpart C (and not allowable under this subpart) 

11 for such taxable year. 

12 ‘‘(e) TRANSFER OF CREDIT.— 

13 ‘‘(1) IN GENERAL.—Subject to such regulations 

14 or other guidance as the Secretary determines nec15 essary or appropriate, if, with respect to the credit 

16 allowed under subsection (a) for any taxable year, 

17 the applicable taxpayer elects the application of this 

18 subsection for such taxable year with respect to all 

19 (or any portion specified in such election) of such 

20 credit, the eligible entity specified in such election, 

21 and not the applicable taxpayer, shall be treated as 

22 the taxpayer for purposes of this title with respect 

23 to such credit (or such portion thereof). 

24 ‘‘(2) ELIGIBLE ENTITY.—For purposes of this 

25 subsection, the term ‘eligible entity’ means any perVerDate Sep 11 2014 03:51 Mar 09, 2022 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3787.IS S3787

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1 son within the supply chain for fuel described in 

2 such section (a).’’. 

3 (b) CREDIT TO BE PART OF GENERAL BUSINESS

4 CREDIT.—Subsection (b) of section 38 of the Internal 

5 Revenue Code of 1986 is amended by striking ‘‘plus’’ at 

6 the end of paragraph (32), by striking the period at the 

7 end of paragraph (33) and inserting ‘‘, plus’’, and by add8 ing at the end the following new paragraph: 

9 ‘‘(34) the credit for sale or blending of ethanol 

10 fuels under section 45U to which subsection (d) of 

11 such section does not apply.’’. 

12 (c) CONFORMING AMENDMENT.—The table of sec13 tions for subpart D of part IV of subchapter A of chapter 

14 1 of the Internal Revenue Code of 1986 is amended by 

15 adding at the end the following new item: 

‘‘Sec. 45U. Credit for sale or blending of ethanol fuels.’’. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to fuel blended or sold after De18 cember 31, 2021. 

19 SEC. 4. EXTENSION OF TAX INCENTIVES FOR BIODIESEL 

20 AND RENEWABLE DIESEL. 

21 (a) INCOME TAX CREDIT.— 

22 (1) IN GENERAL.—Section 40A(g) is amended 

23 by striking ‘‘December 31, 2022’’ and inserting 

24 ‘‘December 31, 2025’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall apply to fuel sold or used 

3 after December 31, 2022. 

4 (b) EXCISE TAX INCENTIVES.— 

5 (1) TERMINATION.— 

6 (A) IN GENERAL.—Section 6426(c)(6) is 

7 amended by striking ‘‘December 31, 2022’’ and 

8 inserting ‘‘December 31, 2025’’. 

9 (B) PAYMENTS.—Section 6427(e)(6)(B) is 

10 amended by striking ‘‘December 31, 2022’’ and 

11 inserting ‘‘December 31, 2025’’. 

12 (2) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to fuel sold or used 

14 after December 31, 2022. 

15 SEC. 5. ETHANOL REID VAPOR PRESSURE LIMITATIONS 

16 AND E15 LABELING. 

17 (a) ETHANOL WAIVER.— 

18 (1) REID VAPOR PRESSURE LIMITATION.—Sec19 tion 211(h) of the Clean Air Act (42 U.S.C. 

20 7545(h)) is amended— 

21 (A) in paragraph (4)— 

22 (i) in the matter preceding subpara23 graph (A), by inserting ‘‘or more’’ after 

24 ‘‘10 percent’’; and 


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1 (ii) in subparagraph (C), by striking 

2 ‘‘additional alcohol or’’; and 

3 (B) in paragraph (5)(A), by inserting ‘‘or 

4 more’’ after ‘‘10 percent’’. 

5 (2) EXISTING WAIVERS.—Section 211(f)(4) of 

6 the Clean Air Act (42 U.S.C. 7545(f)(4)) is amend7 ed— 

8 (A) by striking ‘‘The Administrator, upon’’ 

9 and inserting the following: 

10 ‘‘(A) The Administrator, upon’’; and 

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

12 ‘‘(B) A fuel or fuel additive that has been 

13 granted a waiver under subparagraph (A) prior 

14 to January 1, 2017, and meets all of the condi15 tions of that waiver, other than the waiver’s 

16 limits for Reid Vapor Pressure, may be intro17 duced into commerce if the fuel or fuel additive 

18 meets all other applicable Reid Vapor Pressure 

19 requirements.’’. 

20 (b) E15 LABELING REQUIREMENTS.—Section 211(c) 

21 of the Clean Air Act (42 U.S.C. 7545(c)) is amended by 

22 adding at the end the following: 

23 ‘‘(5) REVISIONS REQUIRED.— 


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1 ‘‘(A) IN GENERAL.—Not later than 6 

2 months after the date of enactment of this 

3 paragraph, the Administrator shall— 

4 ‘‘(i) revise the regulations of the Ad5 ministrator, and any other labeling re6 quirements or conditions that the Adminis7 trator has adopted pursuant to this sec8 tion, to prescribe that retailers shall label 

9 gasoline that contains more than 10 per10 cent, but not more than 15 percent, eth11 anol to have only the following language: 

12 ‘Contains no more than 15% ethanol.’; and 

13 ‘‘(ii) finalize the proposed rule of the 

14 Environmental Protection Agency entitled 

15 ‘E15 Fuel Dispenser Labeling and Com16 patibility With Underground Storage 

17 Tanks’ (86 Fed. Reg. 5094 (January 19, 

18 2021)). 

19 ‘‘(B) WAIVERS VALID.—Notwithstanding 

20 the change in labeling required by subpara21 graph (A)(i), any waiver granted to gasoline 

22 that contains more than 10 percent, but not 

23 more than 15 percent, ethanol under subsection 

24 (f)(4) before the date of enactment of this para25 graph shall remain valid.’’. 


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1 SEC. 6. GRANTS FOR EXPANDING DOMESTIC BIOFUEL CON2 SUMPTION. 

3 Title IX of the Farm Security and Rural Investment 

4 Act of 2002 (7 U.S.C. 8101 et seq.) is amended by adding 

5 at the end the following: 

6 ‘‘SEC. 9015. BIOFUEL INFRASTRUCTURE AND AGRICUL7 TURAL PRODUCT MARKET EXPANSION 

8 GRANT PROGRAM. 

9 ‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this sec10 tion, the term ‘eligible entity’ means— 

11 ‘‘(1) a State or unit of local government; 

12 ‘‘(2) a Tribal government; 

13 ‘‘(3) an authority, agency, partnership, or in14 strumentality of an entity described in paragraph 

15 (1) or (2); and 

16 ‘‘(4) a group of entities described in paragraphs 

17 (1) through (3). 

18 ‘‘(b) ESTABLISHMENT.—Not later than 1 year after 

19 the date of enactment of this section, the Secretary shall 

20 establish a grant program to award grants to eligible enti21 ties to carry out the activities described in subsection (f). 

22 ‘‘(c) PURPOSE.—The purposes of the grant program 

23 established under subsection (b) shall be— 

24 ‘‘(1) to increase the use of domestic agricultural 

25 crops by expanding or aiding in the expansion of do26 mestic biofuel markets; 


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1 ‘‘(2) to aid in the development of new and addi2 tional biofuel markets, marketing facilities, and uses 

3 for feedstock derived from agricultural crops and 

4 other biomass; 

5 ‘‘(3) to stabilize prices in agricultural markets 

6 by increasing demand for feedstock derived from ag7 ricultural crops; 

8 ‘‘(4) to boost domestic production and use of 

9 biofuels to promote rural economic development and 

10 job creation; and 

11 ‘‘(5) to support farm income by increasing de12 mand for feedstock use and production. 

13 ‘‘(d) APPLICATIONS.—An eligible entity desiring a 

14 grant under this section shall submit to the Secretary an 

15 application at the time, in the manner, and containing the 

16 information that the Secretary may require. 

17 ‘‘(e) ELIGIBILITY CRITERIA.—In selecting an eligible 

18 entity to receive a grant under this section, the Secretary 

19 shall consider the extent to which the application of the 

20 eligible entity proposes— 

21 ‘‘(1) to convert existing pump infrastructure to 

22 deliver ethanol blends with greater than 10 percent 

23 ethanol; 

24 ‘‘(2) to diversify the geographic area selling eth25 anol blends with greater than 10 percent ethanol; 


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1 ‘‘(3) to support existing or emerging biodiesel, 

2 bioheat, and sustainable aviation fuel markets that 

3 have existing incentives; 

4 ‘‘(4) to increase the use of existing fuel delivery 

5 infrastructure; 

6 ‘‘(5) to enable or accelerate the deployment of 

7 renewable fuel infrastructure that would be unlikely 

8 to be completed without Federal assistance; and 

9 ‘‘(6) to build and retrofit traditional and pipe10 line biodiesel terminal operations (including rail 

11 lines) and home heating oil distribution centers or 

12 equivalent entities— 

13 ‘‘(A) to blend biodiesel; and 

14 ‘‘(B) to carry ethanol and biodiesel. 

15 ‘‘(f) ELIGIBLE USE.—An eligible entity that receives 

16 a grant under this section may use the grant funds— 

17 ‘‘(1) to distribute to private or public entities 

18 for costs related to incentivizing deployment of re19 newable fuel infrastructure; 

20 ‘‘(2) to convert existing pump infrastructure to 

21 deliver ethanol blends greater than 10 percent and 

22 biodiesel blends greater than 20 percent; 

23 ‘‘(3) to install fuel pumps and related infra24 structure dedicated to the distribution of higher eth25 anol blends (including E15 and E85) and higher 


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1 biodiesel blends up to B100 at fueling locations, in2 cluding— 

3 ‘‘(A) local fueling stations; 

4 ‘‘(B) convenience stores; 

5 ‘‘(C) hypermarket fueling stations; and 

6 ‘‘(D) fleet facilities or similar entities; and 

7 ‘‘(4) to build and retrofit traditional and pipe8 line biodiesel terminal operations (including rail 

9 lines) and home heating oil distribution centers or 

10 equivalent entities— 

11 ‘‘(A) to blend biodiesel; and 

12 ‘‘(B) to carry ethanol and biodiesel. 

13 ‘‘(g) CERTIFICATION REQUIREMENT.—Any infra14 structure used or installed with grant funds provided 

15 under this section shall be certified by the Underwriters 

16 Laboratory as infrastructure that distributes blends with 

17 an ethanol content of 25 percent or greater. 

18 ‘‘(h) FUNDING.— 

19 ‘‘(1) FEDERAL SHARE.—The Federal share of 

20 the total cost of carrying out a project awarded a 

21 grant under this section shall not exceed 75 percent. 

22 ‘‘(2) MAXIMUM PERCENTAGE FOR CERTAIN AC23 TIVITIES.—An eligible entity receiving a grant under 

24 this section shall ensure that Federal funds do not 

25 exceed— 


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1 ‘‘(A) 75 percent of the per pump cost 

2 for— 

3 ‘‘(i) pumps that can dispense a range 

4 of ethanol blends of E85 or lower (new 

5 pumps or retrofit of existing pumps); and 

6 ‘‘(ii) dedicated E15 or E85 pumps 

7 (new pumps or retrofit of existing pumps); 

8 ‘‘(B) 50 percent of the terminal cost for 

9 terminals with B100 capabilities; or 

10 ‘‘(C) 40 percent of the per tank cost for 

11 new storage tanks and related equipment asso12 ciated with new facilities or additional capacity 

13 other than replacement of existing storage 

14 tanks and related equipment associated with ex15 isting facilities. 

16 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

17 authorized to be appropriated to the Secretary to carry 

18 out this section $100,000,000 for each of fiscal years 2022 

19 through 2031.’’. 

Æ 


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