I 
109TH CONGRESS 
1ST SESSION H. R. 1398 
To amend the Clean Air Act to require that, after the year 2010, all gasoline 
sold in the United States for motor vehicles contain not less than 10 
percent ethanol and that all diesel fuel sold in the United States for 
motor vehicles contain not less than 5 percent biodiesel, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 17, 2005 
Ms. KAPTUR introduced the following bill; which was referred to the 
Committee on Energy and Commerce 
A BILL 
To amend the Clean Air Act to require that, after the year 
2010, all gasoline sold in the United States for motor 
vehicles contain not less than 10 percent ethanol and 
that all diesel fuel sold in the United States for motor 
vehicles contain not less than 5 percent biodiesel, 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. FINDINGS. 
The Congress finds as follows: 
(1) The over reliance of the United States on 
imported petroleum creates a major strategic vulner-
ability for the Nation, with nearly half of the energy 
supply of the United States dependent on foreign 
sources. 
(2) From the economically damaging Arab oil 
embargoes of 1973–74 and 1979 to the recession 
precipitated by rising oil prices which began in 1999, 
to the stock market’s instability in early 2005 due 
to the cost of imported oil at near record highs of 
$55 per barrel, the economic stability of the United 
States has too often been shaken by economic forces 
outside its borders. 
(3) Increasing fuel prices have been a particular 
hardship on small, independent businesses particu-
larly truckers and farmers, who have no choice but 
to pay ever-increasing fuel bills while absorbing 
these higher costs in today’s economic environment. 
(4) This Act would help shift America’s depend-
ence away from foreign petroleum as an energy 
source toward alternative, renewable, domestic agri-
cultural sources. Its aim is to convert the current 
petroleum trade deficit to a trade balance by replac-
ing foreign sources of supply with steady increases 
of biobased fuels through domestic production. 
(5) Today, there are nearly 140,000,000 cars 
and 85,000,000 trucks on our highways. Of this
amount, approximately 3,300,000 cars and trucks 
already on our highways will run on 85 percent eth-
anol (E–85), and this number is increasing. For the 
2005 model year, there are 20 different models of 
vehicles capable of running on E–85. Yet given this 
market, the alternative fuel is used less than 1 per-
cent of the time given that of the more than 
187,000 retail locations selling motor fuel in the 
United States, only 400 stations across 38 States 
sell E–85. 
(6) Biodiesel production is also dramatically in-
creasing, going from 5,000,000 gallons in 2001 to 
nearly 25,000,000 gallons in 2003. Daimler-Chrysler 
has also announced its intentions to initially fuel the 
Diesel Jeep Liberty with a 5 percent biodiesel blend, 
the first time a vehicle has been explicitly fueled 
with an alternative fuel as it rolls off the production 
line. 
(7) Currently the United States annually con-
sumes about 7,171,885,000 barrels of petroleum. 
(164,000,000,000 gallons of vehicle fuels and 
5,600,00,000 gallons of heating oil.) In 2002, 62 
percent of these fuels were imported, part of a total 
$358,200,000,000 trade deficit with the rest of the 
world. Since 1983, the United States importation of
petroleum and its derivatives has more than tripled, 
rising from 1,215,225,000 barrels in 1983 to 
4,476,501,000 barrels in 2003. 
(8) Further Strategic Petroleum Reserve policy 
should encourage domestic production to the great-
est extent possible. Currently, the Strategic Petro-
leum Reserve holds 670,700,000 barrels (out of a 
potential 727,000,000 barrels), sufficient to cushion 
the United States from wild price swings for a pe-
riod of 53 days. None of the fuel in this Reserve is 
bio-based. In fact, 92.2 percent of the Strategic Pe-
troleum Reserve has been purchased from foreign 
sources—41.9 percent from Mexico, 24 percent from 
the United Kingdom, and over 20 percent from 
OPEC nations. 
(9) Strategic Petroleum Reserve policy also 
should encourage the development of alternatives to 
the Nation’s reliance on petroleum such as biomass 
fuels. 
(10) As a first step in diversification, the Stra-
tegic Petroleum Reserve should exchange 2,100,000 
barrels from our current reserves for 32,000,000 
gallons of ethanol and biodiesel, which could com-
prise less than 2 percent of the United States mar-
ket, but yield a doubling of ethanol products.
(11) The benefits of biofuels are as follows: 
(A) ENERGY SECURITY.— 
(i) Biofuels hold potential to address 
our dependence on foreign energy sources 
immediately. With agricultural surpluses, 
commodity prices have reached record 
lows; concurrently world petroleum prices 
have reached record highs and are ex-
pected to continue rising as global petro-
leum reserves are drawn down over the 
next 25 years. It also is clear that eco-
nomic conditions are favorable to utilize 
domestic surpluses of biobased oils to en-
hance the Nation’s energy security. 
(ii) In the short term, biofuels can 
supply at least one-fifth of current United 
States fuel demand using existing tech-
nologies and capabilities. Additional plant 
research, newer processing and distribution 
technologies, and placing additional acres 
under cultivation can yield even greater re-
sults. 
(iii) Biofuels can be used with existing 
petroleum infrastructure and conventional 
equipment.
(B) ECONOMIC SECURITY.— 
(i) Continued dependence upon im-
ported sources of oil means our Nation is 
strategically vulnerable to disruptions in 
our oil supply. 
(ii) Renewable biofuels domestically 
produced directly replace imported oil. 
(iii) 
Increased 
use 
of 
renewable 
biofuels would result in significant eco-
nomic benefits to rural and urban areas 
and also reduce the trade deficit. 
(iv) According to the Department of 
Agriculture, a sustained annual market of 
100,000,000 gallons of biodiesel alone 
would result in $170,000,000 in increased 
income to farmers. 
(v) Farmer-owned biofuels production 
has already resulted in improved income 
for farmers, as evidenced by the experience 
with State-supported rural development ef-
forts in Minnesota where prices to corn 
producers have been increased by $1.00 
per bushel. With the Department of Agri-
culture having forecast prices of $2.10 per 
bushel of corn for the 2004–2005 mar-
keting year, the portion of the corn crop 
that goes for ethanol has a farm value of 
$2,100,000,000. 
(C) ENVIRONMENTAL SECURITY.— 
(i) The use of grain-based ethanol re-
duces greenhouse gas emissions from 35 to 
46 percent compared with conventional 
gasoline. Biomass ethanol provides an even 
greater reduction. 
(ii) The American Lung Association 
of Metropolitan Chicago credits ethanol- 
blended reformulated gasoline with reduc-
ing smog-forming emissions by 25 percent 
since 1990. 
(iii) Ethanol reduces tailpipe carbon 
monoxide emissions by as much as 30 per-
cent. 
(iv) Ethanol reduces exhaust volatile 
organic compounds emissions by 12 per-
cent. 
(v) Ethanol reduces toxic emissions by 
30 percent. 
(vi) Ethanol reduces particulate emis-
sions, especially fine-particulates that pose
a health threat to children, senior citizens, 
and those with respiratory ailments. 
(vii) Biodiesel contains no sulfur or 
aromatics associated with air pollution. 
(viii) The use of biodiesel provides a 
78.5 percent reduction in CO2 emissions 
compared to petroleum diesel and when 
burned in a conventional engine provides a 
substantial reduction of unburned hydro-
carbons, carbon monoxide, and particulate 
matter. 
SEC. 2. ETHANOL AND BIODIESEL FUEL REQUIREMENTS. 
Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended as follows: 
(1) By redesignating subsection (o) as sub-
section (q). 
(2) By inserting after subsection (n) the fol-
lowing: 
‘‘(o) Renewable Fuel Program— 
‘‘(1) DEFINITIONS.—In this section: 
‘‘(A) 
ETHANOL.—The 
term 
‘ethanol’ 
means ethanol derived from any lignocellulosic 
or hemicellulosic matter that is available on a 
renewable or recurring basis, including dedi-
cated energy crops and trees, wood and wood
residues, plants, grasses, agricultural residues, 
and fibers. The term includes ethanol derived 
from animal wastes, including poultry fats and 
poultry wastes, and other waste materials, or 
municipal solid waste. 
‘‘(B) BIODIESEL.—The term ‘biodiesel’has 
the same meaning as when used in section 
312(f) of the Energy Policy Act of 1992 (42 
U.S.C. 13220(f)). 
‘‘(2) RENEWABLE FUEL PROGRAM.—Not later 
than 1 year after the enactment of this subsection, 
the Administrator shall promulgate regulations en-
suring that, after December 31, 2010, all gasoline or 
diesel motor vehicle fuel sold or dispensed to con-
sumers in the contiguous United States, on an an-
nual average basis, contains not less than 10 percent 
ethanol, in the case of gasoline, and not less than 5 
percent biodiesel, in the case of diesel fuel.’’. 
Æ