‘‘(i) IN
GENERAL.—Not later than 
November 30 of each of calendar years 
2009 through 2016, based on the estimate 
provided under subparagraph (A), the Ad-
ministrator shall determine and publish in 
the Federal Register, with respect to the 
following calendar year, the alternative die-
sel fuel obligation that ensures that the re-
quirements of paragraph (2) are met. 
‘‘(ii) REQUIRED ELEMENTS.—The al-
ternative diesel fuel obligation determined 
for a calendar year under clause (i) shall— 
‘‘(I) be applicable to refineries, 
blenders, and importers, as appro-
priate; 
‘‘(II) be expressed in terms of a 
volume percentage of diesel sold or in-
troduced into commerce in the United 
States; and 
‘‘(III) subject to subparagraph 
(C), consist of a single applicable per-
centage that applies to all categories 
of persons described in subclause (I). 
‘‘(C) ADJUSTMENTS.—In determining the 
applicable percentage for a calendar year, the 
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Administrator shall make adjustments to pre-
vent the imposition of redundant obligations on 
any 
person 
described 
in 
subparagraph 
(B)(ii)(I). 
‘‘(4) CREDIT PROGRAM.— 
‘‘(A) IN GENERAL.—The regulations pro-
mulgated pursuant to paragraph (2)(A) shall 
provide for the generation of an appropriate 
amount of credits by any person that refines, 
blends, or imports diesel that contains a quan-
tity of alternative diesel fuel that is greater 
than the quantity required under paragraph 
(2). 
‘‘(B) USE
OF
CREDITS.—A person that 
generates a credit under subparagraph (A) may 
use the credit, or transfer all or a portion of the 
credit to another person, for the purpose of 
complying with regulations promulgated pursu-
ant to paragraph (2). 
‘‘(C) DURATION
OF
CREDITS.—A credit 
generated under this paragraph shall be valid 
during the 1-year period beginning on the date 
on which the credit is generated. 
‘‘(D) INABILITY
TO
GENERATE
OR
PUR-
CHASE SUFFICIENT CREDITS.—The regulations 
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promulgated pursuant to paragraph (2)(A) 
shall include provisions allowing any person 
that is unable to generate or purchase sufficient 
credits under subparagraph (A) to meet the re-
quirements of paragraph (2) by carrying for-
ward a credit generated during a previous year 
on the condition that the person, during the cal-
endar year following the year in which the al-
ternative diesel fuel deficit is created— 
‘‘(i) achieves compliance with the al-
ternative diesel fuel requirement under 
paragraph (2); and 
‘‘(ii) generates or purchases additional 
credits under subparagraph (A) to offset 
the deficit of the previous year. 
‘‘(5) WAIVERS.— 
‘‘(A) IN GENERAL.—The Administrator, in 
consultation with the Secretary of Agriculture 
and the Secretary of Energy, may waive the re-
quirements of paragraph (2) in whole or in part 
on receipt of a petition of 1 or more States by 
reducing the national quantity of alternative 
diesel fuel for the diesel motor pool required 
under paragraph (2) based on a determination 
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by the Administrator, after public notice and 
opportunity for comment, that— 
‘‘(i) implementation of the require-
ment would severely harm the economy or 
environment of a State, a region, or the 
United States; or 
‘‘(ii) there is an inadequate domestic 
supply of alternative diesel fuel. 
‘‘(B) PETITIONS FOR WAIVERS.—Not later 
than 90 days after the date on which the Ad-
ministrator receives a petition under subpara-
graph (A), the Administrator, in consultation 
with the Secretary of Agriculture and the Sec-
retary of Energy, shall approve or disapprove 
the petition. 
‘‘(C) TERMINATION OF WAIVERS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a waiver under sub-
paragraph (A) shall terminate on the date 
that is 1 year after the date on which the 
waiver is provided. 
‘‘(ii) 
EXCEPTION.—The 
Adminis-
trator, in consultation with the Secretary 
of Agriculture and the Secretary of En-
ergy, may extend a waiver under subpara-
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graph (A), as the Administrator deter-
mines to be appropriate.’’. 
(c) 
PENALTIES
AND
ENFORCEMENT.—Section 
211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is 
amended— 
(1) in paragraph (1), by striking ‘‘or (o)’’ each 
place it appears and inserting ‘‘(o), or (p)’’; and 
(2) in paragraph (2), by striking ‘‘and (o)’’ 
each place it appears and inserting ‘‘(o), and (p)’’. 
(d) TECHNICAL AMENDMENTS.—Section 211 of the 
Clean Air Act (42 U.S.C. 7545) is amended— 
(1) in subsection (i)(4), by striking ‘‘section 
324’’ each place it appears and inserting ‘‘section 
325’’; 
(2) in subsection (k)(10), by indenting subpara-
graphs (E) and (F) appropriately; 
(3) in subsection (n), by striking ‘‘section 
219(2)’’ and inserting ‘‘section 216(2)’’; 
(4) by redesignating the second subsection (r) 
and subsection (s) as subsections (s) and (t), respec-
tively; and 
(5) in subsection (t)(1) (as redesignated by 
paragraph (4)), by striking ‘‘this subtitle’’ and in-
serting ‘‘this part’’. 
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SEC. 7. EXCISE TAX CREDIT FOR PRODUCTION OF CEL-
LULOSIC BIOMASS ETHANOL. 
(a) ALLOWANCE OF EXCISE TAX CREDIT.— 
(1) IN GENERAL.—Section 6426 of the Internal 
Revenue Code of 1986 (relating to credit for alcohol 
fuel, biodiesel, and alternative fuel mixtures) is 
amended by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively, and by insert-
ing after subsection (e) the following new subsection: 
‘‘(f) CELLULOSIC BIOMASS ETHANOL CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, in the case of a cellulosic biomass ethanol pro-
ducer, the cellulosic biomass ethanol credit is the 
product of— 
‘‘(A) the product of 51 cents times the 
equivalent number of gallons of renewable fuel 
specified in section 211(o)(4) of the Clean Air 
Act, times 
‘‘(B) the number of gallons of qualified cel-
lulosic biomass ethanol fuel production of such 
producer. 
‘‘(2) DEFINITIONS.— 
‘‘(A) CELLULOSIC
BIOMASS
ETHANOL.— 
The term ‘cellulosic biomass ethanol’ has the 
meaning 
given 
such 
term 
under 
section 
211(o)(1)(A) of the Clean Air Act. 
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