II 

110TH CONGRESS 

1ST SESSION S. 1158 

To amend the Clean Air Act to increase the use of renewable and alternative 

fuel, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 19, 2007 

Mr. INHOFE 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 increase the use of renewable 

and alternative fuel, 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 ‘‘Alternative Fuel 

5 Standard Act of 2007’’. 

6 SEC. 2. RENEWABLE AND ALTERNATIVE FUEL PROGRAM. 

7 Section 211(o) of the Clean Air Act (42 U.S.C. 

8 7545(o)) is amended— 

9 (1) in the subsection heading, by inserting 

10 ‘‘AND ALTERNATIVE’’ after ‘‘RENEWABLE’’; 

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1 (2) in paragraph (1)— 

2 (A) by redesignating subparagraphs (A), 

3 (B), (C), and (D) as subparagraphs (B), (I), 

4 (G), and (H), respectively; 

5 (B) by moving subparagraph (I) (as redes6 ignated by subparagraph (A)) to the end of the 

7 paragraph; 

8 (C) by inserting before subparagraph (B) 

9 (as so redesignated) the following: 

10 ‘‘(A) ALTERNATIVE FUEL.— 

11 ‘‘(i) IN GENERAL.—The term ‘alter12 native fuel’ means the portion of any 

13 motor vehicle or nonroad fuel, as measured 

14 by volume, that consists of— 

15 ‘‘(I) methanol, denatured eth16 anol, butanol, and other alcohols; 

17 ‘‘(II) natural gas, including liquid 

18 fuels domestically produced from nat19 ural gas; 

20 ‘‘(III) liquefied petroleum gas; 

21 ‘‘(IV) hydrogen; 

22 ‘‘(V) coal-derived liquid fuels; 

23 ‘‘(VI) fuels (not including a fuel 

24 that consists of alcohol) derived from 

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1 biological materials (including bio2 diesel); 

3 ‘‘(VII) electricity; and 

4 ‘‘(VIII) any other fuel that the 

5 Administrator determines, by rule, is 

6 not derived from crude oil and would 

7 yield energy security benefits or envi8 ronmental benefits. 

9 ‘‘(ii) INCLUSION.—The term ‘alter10 native fuel’ includes any portion of a 

11 blending component that is derived from 

12 an alternative fuel.’’; 

13 (D) in subparagraph (B) (as so redesig14 nated), by striking the second sentence; 

15 (E) by inserting after subparagraph (B) 

16 (as so redesignated) the following: 

17 ‘‘(C) NONROAD ENGINE.—The term 

18 ‘nonroad engine’ means an internal combustion 

19 engine (including the fuel system of the internal 

20 combustion engine) that is not— 

21 ‘‘(i) used— 

22 ‘‘(I) to power a motor vehicle; or 

23 ‘‘(II) in a vehicle used solely for 

24 competition; and 

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1 ‘‘(ii) subject to standards of perform2 ance for stationary sources of air pollution. 

3 ‘‘(D) NONROAD FUEL.—The term 

4 ‘nonroad fuel’ means fuel required for— 

5 ‘‘(i) a nonroad engine; or 

6 ‘‘(ii) a nonroad vehicle. 

7 ‘‘(E) NONROAD VEHICLE.—The term 

8 ‘nonroad vehicle’ means a vehicle or a piece of 

9 equipment that is— 

10 ‘‘(i) powered by a nonroad engine; and 

11 ‘‘(ii) not a motor vehicle or a vehicle 

12 used solely for competition. 

13 ‘‘(F) PROGRAM.—The term ‘program’ 

14 means the renewable and alternative fuel pro15 gram established under paragraph (2).’’; 

16 (3) by striking paragraphs (2) and (3) and in17 serting the following: 

18 ‘‘(2) PROGRAM.— 

19 ‘‘(A) IN GENERAL.—The Administrator 

20 shall, by regulation, establish an alternative fuel 

21 program to ensure that motor vehicle and 

22 nonroad fuel sold or introduced into commerce 

23 in the United States (except in territories of the 

24 United States), on an annual average basis, 

25 contains the applicable volume of alternative 

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1 fuel determined in accordance with subpara2 graph (C). 

3 ‘‘(B) PROVISIONS.—Regulations promul4 gated under subparagraph (A)— 

5 ‘‘(i) shall— 

6 ‘‘(I) contain compliance provi7 sions applicable to refineries, blenders, 

8 distributors, and importers, as appro9 priate, to ensure that the require10 ments of this section are met; 

11 ‘‘(II) establish applicable percent12 ages under subparagraph (D); 

13 ‘‘(III) establish compliance values 

14 for alternative fuels under subpara15 graph (E); 

16 ‘‘(IV) provide for the generation, 

17 banking, trading, and use of identi18 fication numbers under subparagraph 

19 (F); 

20 ‘‘(V) require the taking of any 

21 other action that is necessary for the 

22 implementation of the alternative fuels 

23 program, as determined by the Ad24 ministrator; and 

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1 ‘‘(VI) to the maximum extent 

2 practicable, incorporate the program 

3 structure, compliance, calculation of 

4 applicable volume, registration, rec5 ordkeeping, and reporting require6 ments described in regulations pro7 mulgated under subparagraph (A) to 

8 implement this section; and 

9 ‘‘(ii) shall not— 

10 ‘‘(I) restrict the geographic area 

11 in which alternative fuel may be used; 

12 or 

13 ‘‘(II) impose any per-gallon obli14 gation for the use of alternative fuel. 

15 ‘‘(C) APPLICABLE VOLUME.— 

16 ‘‘(i) CALENDAR YEARS 2010 THROUGH

17 2017.—For the purpose of subparagraph 

18 (A), the applicable volume of alternative 

19 fuel for each of calendar years 2010 

20 through 2017 shall be determined in ac21 cordance with the following table: 

‘‘Applicable volume of alternative fuel 

Calendar year: (in billions of gallons): 

2010 10.0 

2011 11.0 

2012 12.0 

2013 14.0 

2014 17.0 

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‘‘Applicable volume of alternative fuel—Continued 

Calendar year: (in billions of gallons): 

2015 22.0 

2016 28.0 

2017 35.0 

1 ‘‘(ii) CALENDAR YEAR 2018 AND

2 THEREAFTER.— 

3 ‘‘(I) IN GENERAL.—Subject to 

4 clauses (iii) and (iv), for the purpose 

5 of subparagraph (A), the applicable 

6 volume for calendar year 2018 and 

7 each calendar year thereafter shall be 

8 determined by the Administrator 

9 based on a review containing the in10 formation described in subclause (II). 

11 ‘‘(II) CONTENTS OF REVIEW.— 

12 The review described in subclause (I) 

13 shall contain a evaluation of the im14 plementation of the program during 

15 calendar years 2010 through 2016, 

16 including an evaluation of— 

17 ‘‘(aa) the impact of the use 

18 of alternative fuels on— 

19 ‘‘(AA) public health; 

20 ‘‘(BB) air quality; 

21 ‘‘(CC) water quality; 

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1 ‘‘(DD) job creation; 

2 ‘‘(EE) rural economic 

3 development; 

4 ‘‘(FF) the expected an5 nual rate of future produc6 tion of alternative fuels; 

7 ‘‘(GG) the reduction of 

8 the use of fuels derived from 

9 crude oil in the United 

10 States; 

11 ‘‘(HH) the energy secu12 rity of the United States; 

13 and 

14 ‘‘(II) costs to con15 sumers. 

16 ‘‘(iii) MINIMUM QUANTITY DERIVED

17 FROM CELLULOSIC BIOMASS.— 

18 ‘‘(I) CALENDAR YEARS 2010

19 THROUGH 2012.—For each of calendar 

20 years 2010 through 2012— 

21 ‘‘(aa) the compliance value 

22 for cellulosic ethanol contained in 

23 subparagraph (E) shall not 

24 apply; and 

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1 ‘‘(bb) a compliance value of 

2 2.5 shall apply in the same man3 ner as if included on the table 

4 contained in subparagraph (E). 

5 ‘‘(II) CALENDAR YEARS 2013 AND

6 THEREAFTER.—For calendar year 

7 2013, and each calendar year there8 after, the applicable volume described 

9 in clause (ii) shall contain a minimum 

10 of 250,000,000 gallons that are de11 rived from cellulosic biomass. 

12 ‘‘(iv) WASTE-DERIVED ETHANOL

13 CREDIT.—For each of calendar years 2010 

14 through 2012, the compliance value for 

15 waste-derived ethanol shall— 

16 ‘‘(I) be 2.5; and 

17 ‘‘(II) apply in the same manner 

18 as if included in the table in subpara19 graph (E). 

20 ‘‘(v) MINIMUM APPLICABLE VOL21 UME.—For the purpose of subparagraph 

22 (A), the applicable volume for calendar 

23 year 2018 and each calendar year there24 after shall, at a minimum, be equal to the 

25 product obtained by multiplying— 

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1 ‘‘(I) the number of gallons of 

2 gasoline that the Administrator of the 

3 Energy Information Administration 

4 estimates will be sold or introduced 

5 into commerce in the calendar year; 

6 and 

7 ‘‘(II) the ratio that— 

8 ‘‘(aa) 35,000,000,000 gal9 lons; bears to 

10 ‘‘(bb) the number of gallons 

11 of gasoline projected to be sold or 

12 introduced into commerce in cal13 endar year 2017. 

14 ‘‘(D) APPLICABLE PERCENTAGES.— 

15 ‘‘(i) PROVISION OF ESTIMATE OF VOL16 UMES OF GASOLINE SALES.—Not later 

17 than October 31, 2009, and annually 

18 thereafter, the Administrator of the En19 ergy Information Administration shall pro20 vide to the Administrator an estimate re21 lating to the volume of gasoline projected 

22 by Administrator of the Energy Informa23 tion Administration to be sold or intro24 duced into commerce in the United States 

25 during the following calendar year. 

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1 ‘‘(ii) DETERMINATION OF APPLICABLE

2 PERCENTAGES.— 

3 ‘‘(I) IN GENERAL.—Not later 

4 than November 30, 2009, and annu5 ally thereafter, based on the estimate 

6 provided under clause (i), the Admin7 istrator shall determine and notify 

8 any obligated party, with respect to 

9 the following calendar year, of the al10 ternative fuel obligation determined by 

11 the Administrator to ensure that the 

12 requirements of subparagraph (C) will 

13 be met. 

14 ‘‘(II) REQUIRED ELEMENTS.— 

15 The alternative fuel obligation deter16 mined for a calendar year under 

17 clause (ii) shall— 

18 ‘‘(aa) be applicable to refin19 ers, blenders, and importers of 

20 gasoline, as appropriate; 

21 ‘‘(bb) be used in motor vehi22 cle or nonroad applications in the 

23 United States; 

24 ‘‘(cc) be expressed in terms 

25 of a volume percentage of gasomstockstill on PROD1PC66 with BILLS

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1 line sold or introduced into com2 merce in the United States; and 

3 ‘‘(dd) subject to clause (iii), 

4 consist of a single applicable per5 centage that applies to an obli6 gated party who is a refiner, 

7 blender, or importer of gasoline 

8 used in motor vehicle and 

9 nonroad applications in the 

10 United States. 

11 ‘‘(iii) ADJUSTMENTS.—In determining 

12 the applicable percentage for a calendar 

13 year, the Administrator shall make adjust14 ments to prevent the imposition of redun15 dant obligations on any individual or entity 

16 described in clause (ii). 

17 ‘‘(E) COMPLIANCE VALUE.— 

18 ‘‘(i) TABLE.—Subject to clauses (ii) 

19 and (iii), the Administrator shall assign a 

20 compliance value for each alternative fuel 

21 to satisfy the alternative fuel volume under 

22 subparagraph (C), in accordance with the 

23 following table: 

Fuel Type Compliance Value 

Ethanol (non-Cellulosic) 1.0 

Ethanol (Cellulosic) 1.0 

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Fuel Type Compliance Value 

Biodiesel 1.4 

Gas-to-Liquid Diesel Fuel 1.5 

Coal-to-Liquid Diesel Fuel 1.5 

Compressed Natural Gas (78 standard cubic 

feet) 

1.0 

Liquefied Natural Gas 1.0 

Liquefied Petroleum Gas 1.1 

Electricity (6.4 kilowatt-hours) 1.0 

Gaseous Hydrogen (132 standard cubic feet) 1.0 

Liquid Hydrogen 1.0 

Methanol 0.8 

Butanol 1.3 

Bio-Butanol 1.3 

1 All values in terms of gallons unless other2 wise specified. 

3 ‘‘(ii) AUTHORITY OF THE ADMINIS4 TRATOR.— 

5 ‘‘(I) IN GENERAL.—In accord6 ance with the requirements described 

7 in subclause (II), the Administrator 

8 may— 

9 ‘‘(aa) add fuel types to the 

10 table contained in clause (i); 

11 ‘‘(bb) revise any fuel type 

12 and assign a different compliance 

13 value to any fuel type described 

14 in the table contained in clause 

15 (i); and 

16 ‘‘(cc) assign each new or re17 vised category or subcategory of 

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1 an alternative fuel type an appro2 priate compliance value. 

3 ‘‘(II) USE OF INFORMATION.— 

4 ‘‘(aa) IN GENERAL.—In car5 rying out a modification or revi6 sion of any fuel type or compli7 ance value under subclause (I), 

8 the Administrator shall use ap9 propriate scientific and technical 

10 information relating to the en11 ergy content of alternative fuels. 

12 ‘‘(bb) REQUIREMENT RE13 LATING TO COMPLIANCE VAL14 UES.—In carrying out a modi15 fication or revision of any compli16 ance value under subclause (I), 

17 the Administrator may revise the 

18 compliance value to the extent 

19 that the revision is predominantly 

20 supported by scientific and tech21 nical information. 

22 ‘‘(iii) USE OF COMPLIANCE VALUE.— 

23 The compliance value described in the 

24 table contained in clause (i) shall be used 

25 as a multiplier to determine the extent to 

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1 which each gallon of the alternative fuel 

2 would satisfy the alternative fuel volume 

3 obligation under subparagraph (C). 

4 ‘‘(F) GENERATION, BANKING, TRADING, 

5 AND USE OF IDENTIFICATION NUMBERS.— 

6 ‘‘(i) IN GENERAL.—Regulations pro7 mulgated under subparagraph (A) shall 

8 provide that— 

9 ‘‘(I) unique identification num10 bers shall be generated and assigned 

11 to each batch or other quantifiable 

12 unit of production, as determined by 

13 the Administrator, of alternative fuel 

14 by— 

15 ‘‘(aa) the producer of any 

16 facility located in the United 

17 States; and 

18 ‘‘(bb) the importer of alter19 native fuel imported into the 

20 United States; 

21 ‘‘(II) identification numbers shall 

22 be based on the volume of the alter23 native fuel and the compliance values 

24 established under subparagraph (E); 

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1 ‘‘(III) identification numbers may 

2 be used to demonstrate compliance 

3 with the alternative fuel volume obli4 gation under subparagraph (A); 

5 ‘‘(IV) identification numbers may 

6 be held by any individual or entity; 

7 ‘‘(V) identification numbers may 

8 be transferred by any individual or 

9 entity to any other individual or enti10 ty; 

11 ‘‘(VI) identification numbers 

12 shall be valid for use in achieving 

13 compliance for the calendar year in 

14 which the numbers are generated, and 

15 each calendar year thereafter, regard16 less of the calendar year in which the 

17 alternative fuel that the numbers rep18 resent is used; and 

19 ‘‘(VII) any obligated party that is 

20 unable to acquire sufficient identifica21 tion numbers to meet the require22 ments for any calendar year under 

23 this section shall be allowed to carry 

24 forward a deficit on the condition that 

25 the obligated party, in the calendar 

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1 year following the calendar year in 

2 which the deficit was created, achieves 

3 compliance with the obligation for— 

4 ‘‘(aa) the calendar year fol5 lowing the calendar year in which 

6 the deficit was created; and 

7 ‘‘(bb) the calendar year in 

8 which the deficit was created. 

9 ‘‘(G) EVALUATION AND ADJUSTMENT OF

10 REQUIRED VOLUMES.— 

11 ‘‘(i) IN GENERAL.—The Administrator 

12 shall annually evaluate the domestic pro13 duction and import capabilities relating to 

14 the required volumes of the alternative fuel 

15 standard for each year for which there 

16 have been specified volumes pursuant to 

17 clauses (i) and (ii) of subparagraph (C). 

18 ‘‘(ii) ADJUSTMENT OF VOLUME OF

19 ALTERNATIVE FUELS.— 

20 ‘‘(I) IN GENERAL.—If any condi21 tion affects the production or importa22 tion of alternative fuel (including 

23 drought, environmental degradation, 

24 technological difficulties, economic in25 feasibility, national security interests, 

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1 or any other factor may substantially 

2 affect the availability of an alternative 

3 fuel in a quantity necessary to meet 

4 the requirements of this section) the 

5 Administrator may, to account for the 

6 impact of the condition, not later than 

7 October 31 of each calendar year, ad8 just the applicable volume of any al9 ternative fuel for the following cal10 endar year, or any calendar year 

11 thereafter, described in the table con12 tained in subparagraph (C)(i). 

13 ‘‘(II) CORRESPONDING ADJUST14 MENT OF APPLICABLE PERCENT15 AGES.—In making an adjustment to 

16 the applicable volume of an alternative 

17 fuel under subclause (I), the Adminis18 trator shall make a corresponding ad19 justment to the determination of the 

20 alternative fuel obligation of an obli21 gated party under subparagraph (D). 

22 ‘‘(III) TERMINATION OF ADJUST23 MENT.— 

24 ‘‘(aa) IN GENERAL.—Sub25 ject to item (bb), an adjustment 

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1 made by the Administrator to the 

2 applicable volume of an alter3 native fuel under subclause (I) 

4 shall terminate 1 year after the 

5 date on which the adjustment is 

6 made. 

7 ‘‘(bb) AUTHORITY TO

8 RENEW ADJUSTMENT.—The Ad9 ministrator may renew the ad10 justment made in accordance 

11 with subclause (I) not later than 

12 October 31 of the calendar year 

13 preceding the calendar year in 

14 which the adjustment made by 

15 the Administrator to the applica16 ble volume of an alternative fuel 

17 under subclause (I) would apply. 

18 ‘‘(H) SALE OF IDENTIFICATION NUM19 BERS.— 

20 ‘‘(i) IN GENERAL.—The Administrator 

21 shall make available for sale to any obli22 gated party additional identification num23 bers at a price of $1.00 per gallon of gaso24 line equivalent. 

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1 ‘‘(ii) USE OF IDENTIFICATION NUM2 BERS.—An additional identification num3 ber sold by the Administrator under clause 

4 (i) may be used by an obligated party to 

5 comply with any alternative fuel obligation 

6 requirement under subsection (C) relating 

7 to the year in which the identification 

8 number was purchased. 

9 ‘‘(iii) DISPOSITION OF FUNDS.—For 

10 each of fiscal years 2010 through 2017, 

11 any funds generated by the sale of addi12 tional identification numbers by the Ad13 ministrator to obligated parties shall be 

14 transferred by the Administrator to the 

15 Secretary of the Treasury and deposited in 

16 the Treasury of the United States.’’; 

17 (4) by striking paragraph (8); 

18 (5) by redesignating paragraphs (4) through 

19 (7) as paragraphs (3) through (6), respectively; 

20 (6) by redesignating paragraphs (9) and (10) 

21 as paragraphs (7) and (8), respectively; 

22 (7) in paragraph (4)(A)(iii) (as redesignated by 

23 paragraph (5)), by striking ‘‘paragraph (9)(C)’’ and 

24 inserting ‘‘paragraph (7)(C)’’; 

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1 (8) by striking paragraph (6) (as redesignated 

2 by paragraph (5)) and inserting the following: 

3 ‘‘(6) WAIVER.— 

4 ‘‘(A) IN GENERAL.—The Administrator 

5 may issue a temporary waiver for any require6 ment of paragraph (2) if the Administrator de7 termines that— 

8 ‘‘(i) an extreme or unusual fuel supply 

9 circumstance has affected the United 

10 States, or a region of the United States, 

11 that— 

12 ‘‘(I) prevents the distribution of 

13 an adequate supply of 1 or more al14 ternative fuels or the feedstock used 

15 to produce 1 or more alternative fuels; 

16 and 

17 ‘‘(II) is of sufficient magnitude 

18 to prevent compliance by 1 or more 

19 obligated parties with the applicable 

20 volume of any alternative fuel de21 scribed in the table contained in para22 graph (2)(C), as determined by the 

23 Administrator; 

24 ‘‘(ii) the extreme or unusual fuel sup25 ply circumstance will cause a severe inmstockstill on PROD1PC66 with BILLS

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1 crease in the price of 1 or more alternative 

2 fuels or of the feedstock used to produce 1 

3 or more alternative fuels; and 

4 ‘‘(iii) the extreme or unusual fuel sup5 ply circumstance was caused by— 

6 ‘‘(I) a natural disaster; 

7 ‘‘(II) an act of God; 

8 ‘‘(III) a pipeline or refinery 

9 equipment failure; 

10 ‘‘(IV) the national security inter11 ests of the United States; or 

12 ‘‘(V) a circumstance that could 

13 not have been reasonably foreseen or 

14 prevented, or prepared for by prudent 

15 planning of a supplier of alternative 

16 fuel to the United States. 

17 ‘‘(B) EFFECT OF WAIVER.—A temporary 

18 waiver issued by the Administrator under sub19 paragraph (A) shall— 

20 ‘‘(i) apply to— 

21 ‘‘(I) any obligated party affected 

22 by the extreme or unusual fuel supply 

23 circumstance; and 

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1 ‘‘(II) the smallest appropriate ge2 ographic area, as determined by the 

3 Administrator; 

4 ‘‘(ii) be effective for— 

5 ‘‘(I) a period that begins on the 

6 date on which the Administrator 

7 issues the temporary waiver under 

8 subparagraph (A) and ends 20 cal9 endar days after the date on which 

10 the Administrator issued the tem11 porary waiver; or 

12 ‘‘(II) the shortest appropriate pe13 riod of time, as determined by the Ad14 ministrator; 

15 ‘‘(iii) preempt, for the duration of the 

16 waiver, any State or local laws (including 

17 regulations) relating to the renewable or 

18 alternative content of motor fuel and 

19 nonroad fuel that are inconsistent with any 

20 adjustment of the volume of an alternative 

21 fuel under paragraph (2)(G)(ii)(I); and 

22 ‘‘(iv) be renewed for 1 or more addi23 tional 20 calendar day periods if the Ad24 ministrator determines that any extreme or 

25 unusual fuel supply circumstance on which 

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1 the initial determination was made under 

2 subparagraph (A) continues to warrant a 

3 waiver under that subparagraph.’’; and 

4 (9) in paragraph (7) (as redesignated by para5 graph (6))— 

6 (A) in subparagraph (A)(ii)(I), by striking 

7 ‘‘2008’’ and inserting ‘‘2009’’; and 

8 (B) in subparagraph (C), by striking 

9 ‘‘paragraph (5)’’ and inserting ‘‘paragraph 

10 (4)’’. 

Æ 

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