I
107TH CONGRESS
1ST SESSION
H. R. 2423
To provide for the energy security of the United States and promote environ-
mental quality by enhancing the use of motor vehicle fuels from renew-
able sources, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 28, 2001
Mr. THUNE (for himself, Mr. GUTKNECHT, Mr. OSBORNE, and Mr. GANSKE)
introduced the following bill; which was referred to the Committee on En-
ergy and Commerce
A BILL
To provide for the energy security of the United States
and promote environmental quality by enhancing the use
of motor vehicle fuels from renewable sources, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Renewable Fuels for
Energy Security Act of 2001’’.
SEC. 2. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.
(a) DEFINITIONS.—In this section:
(1) BIODIESEL.—The term ‘‘biodiesel’’ means
mono alkyl esters of long chain fatty acids derived
from renewable liquid sources such as vegetable oils
or animal fats, for use in compression-ignition (die-
sel) engines.
(2) BIOGAS.—The term ‘‘biogas’’ means gas
produced from a biogas source.
(3) 
BIOGAS
SOURCE.—The 
term 
‘‘biogas
source’’ means—
(A) a landfill;
(B) a sewage waste treatment plant;
(C) a feedlot; and
(D) any other accumulation of decaying or-
ganic material.
(4) BIOMASS.—
(A) IN
GENERAL.—The term ‘‘biomass’’
means lignocellulosic or hemicellulosic matter
that is available on a renewable basis.
(B) INCLUSIONS.—The term ‘‘biomass’’
includes—
(i) dedicated energy crops and trees;
(ii) wood and wood residues;
(iii) plants;
(iv) grasses;
(v) agricultural commodities and resi-
dues;
(vi) fibers; and
(vii) animal waste, municipal solid
waste, and other waste.
(5) BIOMASS
ETHANOL.—The term ‘‘biomass
ethanol’’ means ethanol derived from biomass.
(6) RENEWABLE FUEL.—The term ‘‘renewable
fuel’’ means fuel that—
(A) is—
(i) biodiesel;
(ii) ethanol or any other liquid fuel
produced from biomass; or
(iii) biogas; and
(B) is used to reduce the quantity of fossil
fuel present in a fuel mixture used to operate
a motor vehicle.
(7) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
(b) RENEWABLE FUEL PROGRAM.—
(1) PROGRAM REQUIREMENTS.—The motor ve-
hicle fuel sold or introduced into commerce in the
United States in calendar year 2002 or any calendar
year thereafter by a refiner, blender, or importer
shall, on a 6-month average basis, be comprised of
a quantity of renewable fuel, measured in gasoline-
equivalent gallons (as determined by the Secretary),
that is not less than the applicable percentage by
volume for the 6-month period.
(2) APPLICABLE PERCENTAGE.—
(A) IN
GENERAL.—For the purposes of
paragraph (1), the applicable percentage for a
6-month period of a calendar year shall be de-
termined in accordance with the following table,
unless modified under subparagraph (B):
Calendar year:
Applicable percentage of
renewable fuel:
2002 .........................................................................................
.8
2003 .........................................................................................
.9
2004 .........................................................................................
1.1
2005 .........................................................................................
1.3
2006 .........................................................................................
1.5
2007 .........................................................................................
1.7
2008 .........................................................................................
2.0
2009 .........................................................................................
2.3
2010 .........................................................................................
2.6
2011 .........................................................................................
3.0
2012 .........................................................................................
3.42
2013 .........................................................................................
3.84
2014 .........................................................................................
4.24
2015 .........................................................................................
4.63
2016 and thereafter .................................................................
5.00.
(B) ADJUSTMENTS TO APPLICABLE PER-
CENTAGE.—On petition by a State, the Sec-
retary, in consultation with the Secretary of Ag-
riculture, may lower the applicable percentage
specified in subparagraph (A) for a period of 1
calendar year with respect to motor vehicle fuel
sold or introduced into commerce in the State,
based on a determination by the Secretary,
after public notice and opportunity for com-
ment, that during the calendar year there is
likely to be an inadequate domestic supply or
distribution capacity in the State to meet the
applicable percentage specified in subparagraph
(A) for the calendar year.
(C) PETITIONS FOR ADJUSTMENT.—
(i) SUBMISSION.—A State shall sub-
mit a petition under subparagraph (B) not
later than September 1 of the year pre-
ceding the calendar year for which the ad-
justment is sought.
(ii) ACTION ON PETITIONS.—The Sec-
retary, in consultation with the Secretary
of Agriculture, shall approve or deny a
State petition before the beginning of the
calendar year.
(c) CREDIT PROGRAM.—
(1) IN
GENERAL.—Not later than 270 days
after the date of enactment of this Act, the Sec-
retary shall promulgate regulations providing for the
generation of an appropriate amount of credits by a
person that refines, blends, or imports motor vehicle
fuel that contains, on a 6-month average basis, a
quantity of renewable fuel that is greater than the
quantity required for that 6-month period under
subsection (b).
(2) USE OF CREDITS.—A person that generates
credits under paragraph (1) may use the credits,
hold the credits for later use, or transfer all or a
portion of the credits to another person, for the pur-
pose of complying with subsection (b).
(3) EXPIRATION OF CREDITS.—A credit gen-
erated under this subsection shall expire 2 years
after the date on which the credit was generated.
(4) INABILITY
TO
PURCHASE
SUFFICIENT
CREDITS.—The regulations under paragraph (1)
shall include provisions allowing a refiner, blender,
or importer that is unable to purchase sufficient
credits to meet the requirements of subsection (b) to
enter into an enforceable agreement to generate or
purchase sufficient credits to make up for any defi-
ciency within a period of time specified in the agree-
ment.
(5) TESTING; REPORTS.—The regulations under
paragraph (1) may include provisions requiring a re-
finer, blender, or importer—
(A) an order enjoining a failure to comply
with subsection (b) or with a regulation under
subsection (c); and
(B) other appropriate relief.
Æ