No Fuel Credits for Batteries Act of 2023

Subjects: Energy


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1741 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1741

   To amend the Clean Air Act to prohibit electric vehicle original 
   equipment manufacturers from participating in the renewable fuel 
                    program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 18, 2023

  Mr. Grassley (for himself and Mr. Cornyn) 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 prohibit electric vehicle original 
   equipment manufacturers from participating in the renewable fuel 
                    program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Fuel Credits for Batteries Act of 
2023''.

SEC. 2. REVISIONS TO CREDIT PROGRAM.

    (a) Amendments.--Section 211(o)(5) of the Clean Air Act (42 U.S.C. 
7545(o)(5)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (ii), by striking ``and'' at the end;
                    (B) in clause (iii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iv) for the prohibition of generation of 
                        credits by electric vehicle original equipment 
                        manufacturers (as defined in section 3(a) of 
                        the No Fuel Credits for Batteries Act of 
                        2023).'';
            (2) in subparagraph (B)--
                    (A) by striking ``A person'' and inserting the 
                following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), a person''; and
                    (B) by adding at the end the following:
                            ``(ii) Exception.--A person that is an 
                        electric vehicle original equipment 
                        manufacturer (as defined in section 3(a) of the 
                        No Fuel Credits for Batteries Act of 2023) may 
                        not, for the purpose of complying with 
                        paragraph (2), use or transfer all or a portion 
                        of the credits to another person.''; and
            (3) in subparagraph (E)--
                    (A) by striking the period at the end and inserting 
                ``; and'';
                    (B) by striking ``Administrator; and (ii) for the 
                use'' and inserting the following: ``Administrator;
                            ``(ii) for the use'';
                    (C) by striking ``regulations providing: (i) for 
                the generation'' and inserting the following: 
                ``regulations providing--
                            ``(i) for the generation''; and
                    (D) by adding at the end the following:
                            ``(iii) for the prohibition of the 
                        generation, use, or transfer of the appropriate 
                        amount of credits by electric vehicle original 
                        equipment manufacturers (as defined in section 
                        3(a) of the No Fuel Credits for Batteries Act 
                        of 2023) for additional renewable fuel.''.
    (b) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall promulgate a final rule to carry out the 
amendments made by subsection (a).
    (c) Effective Date.--The amendments made by subsection (a) take 
effect on January 1, 2024.

SEC. 3. INELIGIBILITY FOR RENEWABLE FUEL STANDARD.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Electric vehicle original equipment manufacturer.--The 
        term ``electric vehicle original equipment manufacturer'' means 
        the original equipment manufacturer of--
                    (A) an electric light-duty vehicle; or
                    (B) an electric light-duty truck.
            (3) Proposed erin program.--The term ``proposed eRIN 
        program'' means the program governing the generation of 
        renewable identification numbers representing renewable 
        electricity by electric vehicle original equipment 
        manufacturers, as described in--
                    (A) the proposed rule of the Environmental 
                Protection Agency entitled ``Renewable Fuel Standard 
                (RFS) Program: Standards for 2023-2025 and Other 
                Changes'' (87 Fed. Reg. 80582 (December 30, 2022)) (or 
                any successor or substantially related proposal);
                    (B) the regulatory impact analysis of the 
                Assessment and Standards Division of the Office of 
                Transportation and Air Quality of the Environmental 
                Protection Agency entitled ``Draft Regulatory Impact 
                Analysis: RFS Standards for 2023-2025 and Other 
                Changes'', with docket number EPA-HQ-OAR-2021-0427-
                0267, and dated November 2022; and
                    (C) the memorandum of the Office of Transportation 
                and Air Quality of the Environmental Protection Agency 
                entitled ``Examples of RIN generation under the 
                proposed RFS eRIN provisions'', with docket number EPA-
                HQ-OAR-2021-0427-0032, and dated November 22, 2022.
            (4) Renewable fuel.--The term ``renewable fuel'' has the 
        meaning given the term in section 211(o)(1) of the Clean Air 
        Act (42 U.S.C. 7545(o)(1)).
            (5) Renewable fuel program.--The term ``renewable fuel 
        program'' means the renewable fuel program under section 211(o) 
        of the Clean Air Act (42 U.S.C. 7545(o)).
            (6) Renewable identification number.--The term ``renewable 
        identification number'' has the meaning given the term 
        ``Renewable Identification Number (RIN)'' in section 80.1401 of 
        title 40, Code of Federal Regulations (or a successor 
        regulation).
    (b) Rule Required.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall promulgate a final rule 
revising the regulations for carrying out the renewable fuel program 
that--
            (1) in accordance with the amendments made by section 2(a), 
        makes electric vehicle original equipment manufacturers 
        ineligible for the generation, use, or transfer of renewable 
        electricity renewable identification numbers for compliance 
        with, or any other purpose under, the renewable fuel program;
            (2) withdraws the proposed eRIN program;
            (3) maintains the current equivalence value for renewable 
        electricity as described in section 80.1415 of title 40, Code 
        of Federal Regulations (as in effect on the date of enactment 
        of this Act); and
            (4) eliminates the provisions of the proposed rule 
        described in subsection (a)(3)(A) affiliated with the proposed 
        eRIN program.
    (c) Effective Date of Regulations.--The final rule required under 
subsection (b) shall take effect on January 1, 2024.

SEC. 4. SAVINGS PROVISION.

    Nothing in this Act or an amendment made by this Act limits the 
authority of the Administrator of the Environmental Protection Agency 
to approve new fuel pathways or review existing fuel pathways under the 
renewable fuel program under section 211(o) of the Clean Air Act (42 
U.S.C. 7545(o)).
                                 &lt;all&gt;
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