I 
112TH CONGRESS 
1ST SESSION H. R. 1868 
To require the inclusion of coal-derived fuel at certain volumes in aviation 
fuel, motor vehicle fuel, home heating oil, and boiler fuel. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 12, 2011 
Mrs. CAPITO (for herself, Mr. CRITZ, Mr. BUCSHON, Mr. TERRY, Mr. RA-
HALL, and Mr. HOLDEN) introduced the following bill; which was referred 
to the Committee on Energy and Commerce 
A BILL 
To require the inclusion of coal-derived fuel at certain vol-
umes in aviation fuel, motor vehicle fuel, home heating 
oil, and boiler fuel. 
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 ‘‘Clean Coal-Derived 
Fuels for Energy Security Act of 2011’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) CLEAN COAL-DERIVED FUEL.— 
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(A) IN GENERAL.—The term ‘‘clean coal- 
derived fuel’’ means aviation fuel, motor vehicle 
fuel, home heating oil, or boiler fuel that is— 
(i) substantially derived from the coal 
resources of the United States; and 
(ii) refined or otherwise processed at a 
facility located in the United States that 
captures up to 100 percent of the carbon 
dioxide emissions that would otherwise be 
released at the facility. 
(B) INCLUSIONS.—The term ‘‘clean coal- 
derived fuel’’ may include any fuel derived from 
any other resource that is extracted, grown, 
produced, or recovered in the United States. 
(2) COVERED FUEL.—The term ‘‘covered fuel’’ 
means— 
(A) aviation fuel; 
(B) motor vehicle fuel; 
(C) home heating oil; and 
(D) boiler fuel. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(4) SMALL REFINERY.—The term ‘‘small refin-
ery’’ means a refinery for which the average aggre-
gate daily throughput for a calendar year (as deter-
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mined by dividing the aggregate throughput for the 
calendar year by the number of days in the calendar 
year) does not exceed 75,000 barrels. 
SEC. 3. CLEAN COAL-DERIVED FUEL PROGRAM. 
(a) PROGRAM.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the President 
shall promulgate regulations to ensure that covered 
fuel sold or introduced into commerce in the United 
States (except in noncontiguous States or terri-
tories), on an annual average basis, contains the ap-
plicable volume of clean coal-derived fuel determined 
in accordance with paragraph (4). 
(2) PROVISIONS OF REGULATIONS.—The regu-
lations promulgated under paragraph (1)— 
(A) shall contain compliance provisions ap-
plicable to refineries, blenders, distributors, and 
importers, as appropriate, to ensure that— 
(i) the requirements of this subsection 
are met; and 
(ii) clean coal-derived fuels produced 
from facilities for the purpose of compli-
ance with this Act result in lifecycle green-
house gas emissions that are not greater 
than gasoline; and 
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(B) shall not— 
(i) restrict geographic areas in the 
contiguous United States in which clean 
coal-derived fuel may be used; or 
(ii) impose any per-gallon obligation 
for the use of clean coal-derived fuel. 
(3) RELATIONSHIP TO OTHER REGULATIONS.— 
Regulations promulgated under this subsection shall, 
to the extent practicable, incorporate the program 
structure and compliance and reporting require-
ments established under the final regulations pro-
mulgated to implement the renewable fuel program 
under section 211(o) of the Clean Air Act (42 
U.S.C. 7545(o)). 
(4) APPLICABLE VOLUME.— 
(A) CALENDAR
YEARS
2017
THROUGH 
2024.—For the purpose of this subsection, the 
applicable volume for any of calendar years 
2017 through 2024 shall be determined in ac-
cordance with the following table: 
Applicable volume of 
clean coal-derived fuel 
Calendar year: 
(in billions of gallons): 
2017 ...................................................................................................
0.75
2018 ...................................................................................................
1.5
2019 ...................................................................................................
2.25
2020 ...................................................................................................
3.00
2021 ...................................................................................................
3.75
2022 ...................................................................................................
4.5
2023 ...................................................................................................
5.25
2024 ...................................................................................................
6.0. 
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(B) CALENDAR
YEAR
2025
AND
THERE-
AFTER.—Subject to subparagraph (C), for the 
purposes of this subsection, the applicable vol-
ume for calendar year 2025 and each calendar 
year thereafter shall be determined by the 
President, in coordination with the Secretary 
and the Administrator of the Environmental 
Protection Agency, based on a review of the im-
plementation of the program during calendar 
years 2017 through 2024, including a review 
of— 
(i) the impact of clean coal-derived 
fuels on the energy security of the United 
States; 
(ii) the expected annual rate of future 
production of clean coal-derived fuels; and 
(iii) the impact of the use of clean 
coal-derived fuels on other factors, includ-
ing job creation, rural economic develop-
ment, and the environment. 
(C) MINIMUM APPLICABLE VOLUME.—For 
the purpose of this subsection, the minimum 
applicable volume for calendar year 2025 and 
each calendar year thereafter shall be equal to 
the product obtained by multiplying— 
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(i) the number of gallons of covered 
fuel that the President estimates will be 
sold or introduced into commerce in the 
calendar year; and 
(ii) the ratio that— 
(I) 
6,000,000,000 
gallons 
of 
clean coal-derived fuel; bears to 
(II) the number of gallons of cov-
ered fuel sold or introduced into com-
merce in calendar year 2024. 
(b) APPLICABLE PERCENTAGES.— 
(1) PROVISION OF ESTIMATE OF VOLUMES OF 
CERTAIN FUEL SALES.—Not later than October 31 
of each of calendar years 2017 through 2023, the 
Administrator of the Energy Information Adminis-
tration shall provide to the President an estimate, 
with respect to the following calendar year, of the 
volumes of covered fuel projected to be sold or intro-
duced into commerce in the United States. 
(2) DETERMINATION OF APPLICABLE PERCENT-
AGES.— 
(A) IN GENERAL.—Not later than Novem-
ber 30 of each of calendar years 2017 through 
2024, based on the estimate provided under 
paragraph (1), the President shall determine 
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and publish in the Federal Register, with re-
spect to the following calendar year, the clean 
coal-derived fuel obligation that ensures that 
the requirements of subsection (a) are met. 
(B) REQUIRED
ELEMENTS.—The clean 
coal-derived fuel obligation determined for a 
calendar year under subparagraph (A) shall— 
(i) be applicable to refineries, blend-
ers, and importers, as appropriate; 
(ii) be expressed in terms of a volume 
percentage of covered fuel sold or intro-
duced into commerce in the United States; 
and 
(iii) subject to paragraph (3)(A), con-
sist of a single applicable percentage that 
applies to all categories of persons speci-
fied in clause (i). 
(3) ADJUSTMENTS.—In determining the appli-
cable percentage for a calendar year, the President 
shall make adjustments— 
(A) to prevent the imposition of redundant 
obligations on any person specified in para-
graph (2)(B)(i); and 
(B) to account for the use of clean coal-de-
rived fuel during the previous calendar year by 
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small refineries that are exempt under sub-
section (f). 
(c) VOLUME CONVERSION FACTORS
FOR CLEAN 
COAL-DERIVED FUELS BASED ON ENERGY CONTENT.— 
(1) IN
GENERAL.—For the purpose of sub-
section (a), the President shall assign values to spe-
cific types of clean coal-derived fuel for the purpose 
of satisfying the fuel volume requirements of sub-
section (a)(4) in accordance with this subsection. 
(2) ENERGY CONTENT RELATIVE TO APPLICA-
BLE COVERED FUEL.—For each type of clean coal- 
derived fuel, 1 gallon of the clean coal-derived fuel 
shall be considered to be the equivalent of 1 gallon 
of the applicable covered fuel multiplied by the ratio 
that— 
(A) the number of British thermal units of 
energy produced by the combustion of 1 gallon 
of the clean coal-derived fuel (as measured 
under conditions determined by the Secretary); 
bears to 
(B) the number of British thermal units of 
energy produced by the combustion of 1 gallon 
of the applicable covered fuel (as measured 
under conditions determined by the Secretary to 
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be comparable to conditions described in sub-
paragraph (A)). 
(d) CREDIT PROGRAM.— 
(1) IN GENERAL.—The President, in consulta-
tion with the Secretary and in accordance with the 
clean coal-derived fuel requirements of this section, 
may implement a program for the sale and trade of 
clean coal-derived fuel production credits. 
(2) MARKET TRANSPARENCY.—In carrying out 
the credit program under this subsection, the Presi-
dent shall facilitate price transparency in markets 
for the sale and trade of credits, with due regard for 
the public interest, the integrity of those markets, 
fair competition, and the protection of consumers. 
(e) WAIVERS.— 
(1) IN GENERAL.—The President, in consulta-
tion with the Secretary and the Administrator of the 
Environmental Protection Agency, may waive the re-
quirements of subsection (a) in whole or in part on 
petition by 1 or more States by reducing the na-
tional quantity of clean coal-derived fuel required 
under subsection (a), based on a determination by 
the President (after public notice and opportunity 
for comment), that— 
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(A) implementation of the requirement 
would severely harm the economy or environ-
ment of a State, a region, or the United States; 
or 
(B) extreme and unusual circumstances 
exist that prevent distribution of an adequate 
supply of domestically produced clean coal-de-
rived fuel to consumers in the United States. 
(2) PETITIONS FOR WAIVERS.—The President, 
in consultation with the Secretary and the Adminis-
trator of the Environmental Protection Agency, shall 
approve or disapprove a State petition for a waiver 
of the requirements of subsection (a) within 90 days 
after the date on which the petition is received by 
the President. 
(3) TERMINATION
OF
WAIVERS.—A waiver 
granted under paragraph (1) shall terminate after 1 
year, but may be renewed by the President after 
consultation with the Secretary and the Adminis-
trator of the Environmental Protection Agency. 
(f) SMALL REFINERIES.— 
(1) TEMPORARY EXEMPTION.— 
(A) IN
GENERAL.—The requirements of 
subsection (a) shall not apply to small refineries 
until calendar year 2020. 
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(B) EXTENSION OF EXEMPTION.— 
(i) STUDY BY SECRETARY.—Not later 
than December 31, 2015, the Secretary 
shall submit to the President and Congress 
a report describing the results of a study 
to determine whether compliance with the 
requirements of subsection (a) would im-
pose a disproportionate economic hardship 
on small refineries. 
(ii) EXTENSION OF EXEMPTION.—In 
the case of a small refinery that the Sec-
retary determines under clause (i) would 
be subject to a disproportionate economic 
hardship if required to comply with sub-
section (a), the President shall extend the 
exemption under subparagraph (A) for the 
small refinery for a period of not less than 
2 additional years. 
(2) PETITIONS BASED ON DISPROPORTIONATE 
ECONOMIC HARDSHIP.— 
(A) EXTENSION OF EXEMPTION.—A small 
refinery may at any time petition the President 
for an extension of the exemption under para-
graph (1) for the reason of disproportionate 
economic hardship. 
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(B) EVALUATION OF PETITIONS.—In eval-
uating a petition under subparagraph (A), the 
President, in consultation with the Secretary, 
shall consider the findings of the study under 
paragraph (1)(B) and other economic factors. 
(C) DEADLINE
FOR
ACTION
ON
PETI-
TIONS.—The President shall act on any petition 
submitted by a small refinery for a hardship ex-
emption not later than 90 days after the date 
of receipt of the petition. 
(3) OPT-IN FOR SMALL REFINERIES.—A small 
refinery shall be subject to the requirements of sub-
section (a) if the small refinery notifies the Presi-
dent that the small refinery waives the exemption 
under paragraph (1). 
(g) PENALTIES AND ENFORCEMENT.— 
(1) CIVIL PENALTIES.— 
(A) IN GENERAL.—Any person that vio-
lates a regulation promulgated under subsection 
(a), or that fails to furnish any information re-
quired under such a regulation, shall be liable 
to the United States for a civil penalty of not 
more than the total of— 
(i) $25,000 for each day of the viola-
tion; and 
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(ii) the amount of economic benefit or 
savings received by the person resulting 
from the violation, as determined by the 
President. 
(B) COLLECTION.—Civil penalties under 
subparagraph (A) shall be assessed by, and col-
lected in a civil action brought by, the Secretary 
or such other officer of the United States as is 
designated by the President. 
(2) INJUNCTIVE AUTHORITY.— 
(A) IN GENERAL.—The district courts of 
the United States shall have jurisdiction to— 
(i) restrain a violation of a regulation 
promulgated under subsection (a); 
(ii) award other appropriate relief; 
and 
(iii) compel the furnishing of informa-
tion required under the regulation. 
(B) ACTIONS.—An action to restrain such 
violations and compel such actions shall be 
brought by and in the name of the United 
States. 
(C) SUBPOENAS.—In any action to re-
strain a violation of a regulation promulgated 
under subsection (a), a subpoena for a witness 
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who is required to attend a district court in any 
district may apply in any other district. 
(h) EFFECTIVE DATE.—Except as otherwise specifi-
cally provided in this section, this section takes effect on 
January 1, 2017. 
Æ 
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