Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of contents. 
TITLE I—RENEWABLE FUEL INFRASTRUCTURE 
Sec. 101. Renewable fuel infrastructure development. 
Sec. 102. Prohibition on franchise agreement restrictions related to renewable 
fuel infrastructure. 
Sec. 103. Renewable fuel dispenser requirements. 
Sec. 104. Pipeline feasibility study. 
Sec. 105. Study of ethanol-blended gasoline with greater levels of ethanol. 
Sec. 106. Study of the adequacy of railroad transportation of domestically-pro-
duced renewable fuel. 
Sec. 107. Standard specifications for biodiesel. 
Sec. 108. Grants for cellulosic ethanol production. 
Sec. 109. Consumer education campaign relating to flexible-fuel vehicles. 
Sec. 110. Review of new renewable fuels or new renewable fuel additives. 
Sec. 111. Domestic manufacturing conversion grant program. 
Sec. 112. Cellulosic ethanol and biofuels research. 
Sec. 113. Federal fleet fueling centers. 
Sec. 114. Study of impact of increased renewable fuel use. 
Sec. 115. Grants for renewable fuel production research and development in 
certain States. 
Sec. 116. Study of effect of oil prices. 
Sec. 117. Biodiesel as alternative fuel for CAFE purposes. 
TITLE II—UNITED STATES-ISRAEL ENERGY COOPERATION 
Sec. 201. Short title. 
Sec. 202. Findings. 
Sec. 203. Grant program. 
Sec. 204. International Energy Advisory Board. 
Sec. 205. Definitions. 
Sec. 206. Termination. 
Sec. 207. Authorization of appropriations. 
Sec. 208. Constitutional authority. 
TITLE I—RENEWABLE FUEL 
INFRASTRUCTURE 
SEC. 101. RENEWABLE FUEL INFRASTRUCTURE DEVELOP-
MENT. 
(a) DEFINITION.—For purposes of this Act— 
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(1) the term ‘‘renewable fuel’’ means E85 
biofuel, or B20; 
(2) the term ‘‘biofuel’’ means fuel produced en-
tirely from biological material and determined by the 
Department of Energy and the Environmental Pro-
tection Agency to be commercially viable; 
(3) the term ‘‘B20’’ means a mixture of bio-
diesel and diesel fuel meeting the standard estab-
lished by the American Society for Testing and Ma-
terials or under section 211(u) of the Clean Air Act 
for fuel containing 20 percent biodiesel; 
(4) the term ‘‘E85’’ means a fuel blend con-
taining 85 percent denatured ethanol and 15 percent 
gasoline by volume; 
(5) the term ‘‘flexible-fuel vehicle’’ means any 
motor vehicle warranted by the manufacturer of the 
vehicle as capable of operating on gasoline or diesel 
fuel and on— 
(A) E85; or 
(B) B20; and 
(6) the term ‘‘motor vehicle’’ means, as defined 
in regulations promulgated by the Administrator of 
the Environmental Protection Agency that are in ef-
fect on the date of enactment of this Act— 
(A) a light-duty truck; 
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(B) a light-duty vehicle; or 
(C) medium-duty passenger vehicle, 
that is designed to be propelled by gasoline or diesel 
fuel. 
(b) INFRASTRUCTURE DEVELOPMENT GRANTS.— 
The Secretary of Energy shall establish a program for 
making grants for providing assistance to retail and 
wholesale motor fuel dealers or other entities for the in-
stallation, replacement, or conversion of motor fuel storage 
and dispensing infrastructure to be used exclusively to 
store and dispense renewable fuel. Such infrastructure 
may include equipment used in the blending, distribution, 
and transport of such fuels. 
(c) RETAIL TECHNICAL AND MARKETING ASSIST-
ANCE.—The Secretary of Energy shall enter into contracts 
with entities with demonstrated experience in assisting re-
tail fueling stations in installing refueling systems and 
marketing renewable fuels nationally, for the provision of 
technical and marketing assistance to recipients of grants 
under this section. Such assistance shall include— 
(1) technical advice for compliance with applica-
ble Federal and State environmental requirements; 
(2) help in identifying supply sources and se-
curing long-term contracts; and 
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(3) provision of public outreach, education, and 
labeling materials. 
(d) ALLOCATION.—The Secretary of Energy may re-
serve funds appropriated for carrying out this section to 
support renewable fuels infrastructure development 
projects with a cost of greater than $1,000,000, that are 
of national significance. The Secretary shall reserve funds 
appropriated for the renewable fuels infrastructure devel-
opment grant program for technical and marketing assist-
ance described in subsection (c). 
(e) SELECTION
CRITERIA.—Not later than 12 
months after the date of enactment of this Act, the Sec-
retary shall establish criteria for evaluating applications 
for grants under this section that will maximize the avail-
ability and use of renewable fuel, and that will ensure that 
renewable fuel is available across the country. Such cri-
teria shall provide for— 
(1) consideration of the public demand for each 
renewable fuel in a particular geographic area based 
on State registration records showing the number of 
flexible-fuel vehicles; 
(2) consideration of the opportunity to create or 
expand corridors of renewable fuel stations along 
interstate or State highways; 
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(3) consideration of the experience of each ap-
plicant with previous, similar projects; 
(4) consideration of population, number of flexi-
ble-fuel vehicles, number of retail fuel outlets, and 
saturation of flexible-fuel vehicles; and 
(5) priority consideration to applications that— 
(A) are most likely to maximize displace-
ment of petroleum consumption, measured as a 
total quantity and a percentage; 
(B) are best able to incorporate existing 
infrastructure while maximizing, to the extent 
practicable, the use of renewable fuels; and 
(C) demonstrate the greatest commitment 
on the part of the applicant to ensure funding 
for the proposed project and the greatest likeli-
hood that the project will be maintained or ex-
panded after Federal assistance under this sec-
tion is completed. 
(f) COMBINED APPLICATIONS.—States and local gov-
ernment entities and nonprofit entities may apply for as-
sistance under this section on behalf of a group of retailers 
within a certain geographic area, or to carry out regional 
or multistate deployment projects. Any such application 
shall certify the availability and details of a program to 
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station to the renewable fuel station locator on its Website 
when it receives notification under this subsection. 
(j) INELIGIBILITY.—No person may receive assist-
ance under this section and receive a credit under section 
30C of the Internal Revenue Code of 1986. 
(k) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy for carrying out this section $200,000,000 for each 
of the fiscal years 2008 through 2014. 
(l) RESTRICTION.—No grant shall be provided under 
this section to a large, vertically integrated oil company. 
SEC. 102. PROHIBITION ON FRANCHISE AGREEMENT RE-
STRICTIONS RELATED TO RENEWABLE FUEL 
INFRASTRUCTURE. 
(a) IN GENERAL.—Title I of the Petroleum Mar-
keting Practices Act (15 U.S.C. 2801 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLA-
TION OF RENEWABLE FUEL PUMPS. 
‘‘(a) DEFINITION.—In this section: 
‘‘(1) RENEWABLE FUEL.—The term ‘renewable 
fuel’ means any fuel— 
‘‘(A) at least 85 percent of the volume of 
which consists of ethanol; or 
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‘‘(B) any mixture of biodiesel and diesel or 
renewable diesel (as defined in regulations 
adopted pursuant to section 211(o) of the Clean 
Air Act (40 C.F.R., Part 80)), determined with-
out regard to any use of kerosene and con-
taining at least 20 percent biodiesel or renew-
able diesel. 
‘‘(2) FRANCHISE-RELATED
DOCUMENT.—The 
term ‘franchise-related document’ means— 
‘‘(A) a franchise under this Act; and 
‘‘(B) any other contract or directive of a 
franchisor relating to terms or conditions of the 
sale of fuel by a franchisee. 
‘‘(b) PROHIBITIONS.— 
‘‘(1) IN GENERAL.—No franchise-related docu-
ment entered into or renewed on or after the date 
of enactment of this section shall contain any provi-
sion allowing a franchisor to restrict the franchisee 
or any affiliate of the franchisee from— 
‘‘(A) installing on the marketing premises 
of the franchisee a renewable fuel pump or 
tank, except that the franchisee’s franchisor 
may restrict the installation of a tank on leased 
marketing premises of such franchisor; 
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‘‘(B) converting an existing tank or pump 
on the marketing premises of the franchisee for 
renewable fuel use, so long as such tank or 
pump and the piping connecting them are ei-
ther warranted by the manufacturer or certified 
by a recognized standards setting organization 
to be suitable for use with such renewable fuel; 
‘‘(C) advertising (including through the 
use of signage) the sale of any renewable fuel; 
‘‘(D) selling renewable fuel in any specified 
area on the marketing premises of the 
franchisee (including any area in which a name 
or logo of a franchisor or any other entity ap-
pears); 
‘‘(E) purchasing renewable fuel from 
sources other than the franchisor if the 
franchisor does not offer its own renewable fuel 
for sale by the franchisee; 
‘‘(F) listing renewable fuel availability or 
prices, including on service station signs, fuel 
dispensers, or light poles; or 
‘‘(G) allowing for payment of renewable 
fuel with a credit card, 
so long as such activities described in subparagraphs 
(A) through (G) do not constitute mislabeling, mis-
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branding, willful adulteration, or other trademark 
violations by the franchisee. 
‘‘(2) EFFECT OF PROVISION.—Nothing in this 
section shall be construed to preclude a franchisor 
from requiring the franchisee to obtain reasonable 
indemnification and insurance policies. 
‘‘(c) EXCEPTION TO 3-GRADE REQUIREMENT.—No 
franchise-related document that requires that 3 grades of 
gasoline be sold by the applicable franchisee shall prevent 
the franchisee from selling an renewable fuel in lieu of 
1, and only 1, grade of gasoline.’’. 
(b) ENFORCEMENT.—Section 105 of the Petroleum 
Marketing Practices Act (15 U.S.C. 2805) is amended by 
striking ‘‘102 or 103’’ each place it appears and inserting 
‘‘102, 103, or 107’’. 
(c) CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—Section 101(13) of the Pe-
troleum Marketing Practices Act (15 U.S.C. 
2801(13)) is amended by aligning the margin of 
subparagraph (C) with subparagraph (B). 
(2) TABLE OF CONTENTS.—The table of con-
tents of the Petroleum Marketing Practices Act (15 
U.S.C. 2801 note) is amended— 
(A) by inserting after the item relating to 
section 106 the following: 
‘‘Sec. 107. Prohibition on restriction of installation of renewable fuel pumps.’’; 
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and 
(B) by striking the item relating to section 
202 and inserting the following: 
‘‘Sec. 202. Automotive fuel rating testing and disclosure requirements.’’. 
SEC. 103. RENEWABLE FUEL DISPENSER REQUIREMENTS. 
(a) MARKET PENETRATION REPORTS.—The Sec-
retary of Energy, in consultation with the Secretary of 
Transportation, shall determine and report to Congress 
annually on the market penetration for flexible-fuel vehi-
cles in use within geographic regions to be established by 
the Secretary of Energy. 
(b) DISPENSER
FEASIBILITY
STUDY.—Not later 
than 24 months after the date of enactment of this Act, 
the Secretary of Energy, in consultation with the Depart-
ment of Transportation, shall report to the Congress on 
the feasibility of requiring motor fuel retailers to install 
E–85 compatible dispensers and related systems at retail 
fuel facilities in regions where flexible-fuel vehicle market 
penetration has reached 15 percent of motor vehicles. In 
conducting such study, the Secretary shall consider and 
report on the following factors: 
(1) The commercial availability of E–85 fuel 
and the number of competing E–85 wholesale sup-
pliers in a given region. 
(2) The level of financial assistance provided on 
an annual basis by the Federal Government, State 
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governments, and nonprofit entities for the installa-
tion of E–85 compatible infrastructure. 
(3) The number of retailers whose retail loca-
tions are unable to support more than 2 under-
ground storage tank dispensers. 
(4) The expense incurred by retailers in the in-
stallation and sale of E–85 compatible dispensers 
and related systems and any potential effects on the 
price of motor vehicle fuel. 
SEC. 104. PIPELINE FEASIBILITY STUDY. 
(a) IN GENERAL.—The Secretary of Energy, in con-
sultation with the Secretary of Transportation, shall con-
duct a study of the feasibility of the construction of dedi-
cated ethanol pipelines. 
(b) FACTORS.—In conducting the study, the Sec-
retary shall consider— 
(1) the quantity of ethanol production that 
would make dedicated pipelines economically viable; 
(2) existing or potential barriers to dedicated 
ethanol pipelines, including technical, siting, financ-
ing, and regulatory barriers; 
(3) market risk (including throughput risk) and 
means of mitigating the risk; 
(4) regulatory, financing, and siting options 
that would mitigate risk in those areas and help en-
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sure the construction of 1 or more dedicated ethanol 
pipelines; 
(5) financial incentives that may be necessary 
for the construction of dedicated ethanol pipelines, 
including the return on equity that sponsors of the 
initial dedicated ethanol pipelines will require to in-
vest in the pipelines; 
(6) technical factors that may compromise the 
safe transportation of ethanol in pipelines, identi-
fying remedial and preventative measures to ensure 
pipeline integrity; and 
(7) such other factors as the Secretary con-
siders appropriate. 
(c) REPORT.—Not later than 15 months after the 
date of enactment of this Act, the Secretary shall submit 
to Congress a report describing the results of the study 
conducted under this section. 
SEC. 105. STUDY OF ETHANOL-BLENDED GASOLINE WITH 
GREATER LEVELS OF ETHANOL. 
(a) IN GENERAL.—The Administrator of the Envi-
ronmental Protection Agency, in cooperation with the Sec-
retary of Energy and the Secretary of Transportation, and 
after providing notice and an opportunity for public com-
ment, shall conduct a study of the feasibility of widespread 
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utilization in the United States of ethanol blended gasoline 
with levels of ethanol greater than 10 percent. 
(b) STUDY.—The study under subsection (a) shall in-
clude— 
(1) a review of production and infrastructure 
constraints on increasing the consumption of eth-
anol; 
(2) an evaluation of the economic, market, and 
energy impacts of State and regional differences in 
ethanol blends; 
(3) an evaluation of the economic, market, and 
energy impacts on gasoline retailers and consumers 
of separate and distinctly labeled fuel storage facili-
ties and dispensers; 
(4) an evaluation of the environmental impacts 
of mid-level ethanol blends on evaporative and ex-
haust emissions from on-road, off-road and marine 
engines, recreational boats, vehicles, and equipment; 
(5) an evaluation of the impacts of mid-level 
ethanol blends on the operation, durability, and per-
formance of on-road, off-road, and marine engines, 
recreational boats, vehicles, and equipment; and 
(6) an evaluation of the safety impacts of mid- 
level ethanol blends on consumers that own and op-
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erate off-road and marine engines, recreational 
boats, vehicles, or equipment. 
(c) REPORT.—Not later than 24 months after the 
date of enactment of this Act, the Administrator shall sub-
mit to the Committee on Energy and Commerce of the 
House of Representatives and the Committee on Environ-
ment and Public Works of the Senate a report describing 
the results of the study conducted under this section. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator 
such sums as may be necessary for the completion of the 
study required under this section. 
SEC. 106. STUDY OF THE ADEQUACY OF RAILROAD TRANS-
PORTATION OF DOMESTICALLY-PRODUCED 
RENEWABLE FUEL. 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary of Energy, in 
consultation with the Secretary of Transportation, 
shall conduct a study of the adequacy of railroad 
transportation of domestically-produced renewable 
fuel. 
(2) COMPONENTS.—In conducting the study 
under paragraph (1), the Secretary shall consider— 
(A) the adequacy of, and appropriate loca-
tion for, tracks that have sufficient capacity, 
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and are in the appropriate condition, to move 
the necessary quantities of domestically-pro-
duced renewable fuel; 
(B) the adequacy of the supply of railroad 
tank cars, locomotives, and rail crews to move 
the necessary quantities of domestically-pro-
duced renewable fuel in a timely fashion; 
(C)(i) the projected costs of moving the do-
mestically-produced renewable fuel using rail-
road transportation; and 
(ii) the impact of the projected costs on 
the marketability of the domestically-produced 
renewable fuel; 
(D) whether there is adequate railroad 
competition to ensure— 
(i) a fair price for the railroad trans-
portation of domestically-produced renew-
able fuel; and 
(ii) acceptable levels of service for rail-
road transportation of domestically-pro-
duced renewable fuel; 
(E) any rail infrastructure capital costs 
that the railroads indicate should be paid by the 
producers or distributors of domestically-pro-
duced renewable fuel; 
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(F) whether Federal agencies have ade-
quate legal authority to ensure a fair and rea-
sonable transportation price and acceptable lev-
els of service in cases in which the domestically- 
produced renewable fuel source does not have 
access to competitive rail service; 
(G) whether Federal agencies have ade-
quate legal authority to address railroad service 
problems that may be resulting in inadequate 
supplies of domestically-produced renewable fuel 
in any area of the United States; and 
(H) any recommendations for any addi-
tional legal authorities for Federal agencies to 
ensure the reliable railroad transportation of 
adequate supplies of domestically-produced re-
newable fuel at reasonable prices. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary shall submit to 
the Committee on Energy and Natural Resources of the 
Senate and the Committee on Energy and Commerce of 
the House of Representatives a report that describes the 
results of the study conducted under subsection (a). 
SEC. 107. STANDARD SPECIFICATIONS FOR BIODIESEL. 
Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended by redesignating subsection (s) as subsection 
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SEC. 110. REVIEW OF NEW RENEWABLE FUELS OR NEW RE-
NEWABLE FUEL ADDITIVES. 
Notwithstanding any other provision of law, a waiver 
under section 211(f)(4) of the Clean Air Act for any re-
newable fuel or renewable fuel additive shall not be consid-
ered granted unless the Administrator of the Environment 
Protection Agency, following a public notice and comment 
period, takes final action granting the application for a 
waiver based on an application of the section 211(f)(4) 
standards and criteria with respect to emissions control 
devices or systems and vehicle emissions standards to on- 
road and non-road engines and vehicles. The Adminis-
trator shall take final action on an application for a waiver 
no later than 270 days after the Administrator receives 
the application. 
SEC. 
111. 
DOMESTIC 
MANUFACTURING 
CONVERSION 
GRANT PROGRAM. 
Section 712 of the Energy Policy Act of 2005 (42 
U.S.C. 16062) is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘, flexible-fuel,’’ after 
‘‘production of efficient hybrid’’; and 
(B) by adding at the end the following: 
‘‘Priority shall be given to the refurbishment or 
retooling of manufacturing facilities that have 
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recently ceased operation or will cease operation 
in the near future.’’; and 
(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) COORDINATION WITH STATE AND LOCAL PRO-
GRAMS.—The Secretary may coordinate implementation of 
this section with State and local programs designed to ac-
complish similar goals, including the retention and retrain-
ing of skilled workers from the such manufacturing facili-
ties, including by establishing matching grant arrange-
ments. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as may be necessary to carry out this section.’’. 
SEC. 112. CELLULOSIC ETHANOL AND BIOFUELS RE-
SEARCH. 
There are authorized to be appropriated to the Sec-
retary of Energy $50,000,000 for fiscal year 2008, to re-
main available until expended, for cellulosic ethanol and 
biofuels research and development grants to 10 entities 
from among 1890 land grant colleges, Historically Black 
Colleges or Universities, Tribal serving institutions, or 
Hispanic serving institutions, selected by the Secretary of 
Energy to receive a grant under this section through a 
peer-reviewed competitive process. The selected entities 
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shall then collaborate with one of the Department of Ener-
gy’s Office of Science Bioenergy Research Centers. 
SEC. 113. FEDERAL FLEET FUELING CENTERS. 
(a) IN GENERAL.—Not later than January 1, 2010, 
the head of each Federal agency shall install at least 1 
renewable fuel pump at each Federal fleet fueling center 
in the United States under the jurisdiction of the head 
of the Federal agency. 
(b) REPORT.—Not later than October 31 of the first 
calendar year beginning after the date of the enactment 
of this Act, and each October 31 thereafter, the President 
shall submit to Congress a report that describes the 
progress toward complying with subsection (a), including 
identifying— 
(1) the number of Federal fleet fueling centers 
that contain at least 1 renewable fuel pump; and 
(2) the number of Federal fleet fueling centers 
that do not contain any renewable fuel pumps. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
SEC. 114. STUDY OF IMPACT OF INCREASED RENEWABLE 
FUEL USE. 
(a) IN GENERAL.—The Secretary of Energy shall, 
after consultation with the Administrator of the Environ-
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mental Protection Agency, the Administrator of the En-
ergy Information Administration, and the Secretary of Ag-
riculture, conduct a study to assess the impact of in-
creased use of renewable fuels on the United States econ-
omy. The Secretary shall enter into an arrangement with 
the National Academy of Sciences to provide peer review 
of the study. 
(b) STUDY ELEMENTS.—The study shall analyze, in 
terms of renewable fuels, the following: 
(1) The impact of the use of renewable fuels on 
the energy security of the United States. 
(2) The impact of the use of renewable fuels on 
public health and the environment, including air and 
water quality. 
(3) The impact of renewable fuels on the infra-
structure of the United States, including the deliver-
ability of materials, goods, and products other than 
alternative fuels. 
(4) The impact of the use of renewable fuels on 
job creation, the price and supply of agricultural 
commodities, and rural economic development. 
(c) PARTICIPATION.—In conducting the study under 
this section, the Secretary and other agencies shall seek 
the participation, and consider the input, of the following: 
(1) Producers of feed grains. 
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(2) Producers of livestock, poultry, and pork 
products. 
(3) Producers of energy. 
(4) Individuals and entities interested in issues 
relating to conservation, the environment, and nutri-
tion, and users of renewable fuels. 
(d) REPORT.—The Secretary shall submit a report 
to the Congress containing the initial results of the study 
under this section not later than 2 years after enactment 
of this Act and subsequently supplement and update such 
report every 3 years thereafter. 
SEC. 115. GRANTS FOR RENEWABLE FUEL PRODUCTION RE-
SEARCH AND DEVELOPMENT IN CERTAIN 
STATES. 
(a) IN
GENERAL.—The Secretary shall provide 
grants to eligible entities to conduct research into, and de-
velop and implement, renewable fuel production tech-
nologies in States with low rates of ethanol production, 
including low rates of production of cellulosic biomass eth-
anol, as determined by the Secretary. 
(b) ELIGIBILITY.—To be eligible to receive a grant 
under the section, an entity shall— 
(1)(A) be an institution of higher education (as 
defined in section 2 of the Energy Policy Act of 
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Sfmt 6201
E:\BILLS\H3238.RH
H3238
mstockstill on PROD1PC66 with BILLS